Federal Reserve Bulletin, 1921-02

FEDERAL RESERVE BULLETIN (FINAL EDITION) THE FEDERAL RESERVE BOARD AT WASHINGTON FEBRUARY, 1921 WASHINGTON GOVERNMENT PRINTING OFFICE 1921 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

FEDERAL RESERVE BOARD. EX OFFICIO 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. 0. 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, j 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. I Chwf Division of Reports and Statistics. n Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

OFFICERS OF FEDERAL RESERVE BANKS. Federal Reserve Bank of— Chairman. Governor. Deputy governor. Cashier. | Boston Frederic H.Curtiss. Chas. A. Morss C. C. Bnllen W. Willett. W. W. Paddock ; New York., Pierre Jay Benj. Strong J. H. Case L. H. Hendricks.i L. F. Sailer J. D. Higgins.i G. L. Harrison A. W. Gill art.i E. R. Kenzel Leslie K. Rounds A J. W. Jones A Philadelphia. R. L. Austin George W. Norris. Wm. H. Hutt, jr W. A. Dyer. Cleveland E. R. Fancher M. J. Fleming H. G. Davis. L. B. Williams 2.. Frank J. Znrlinden. 1 Richmond. Caldwell Hardy George J. Seay C. A. Peple Geo. H. Keesee. R. H. Broaddus A. S. Johnstones JohnS. Walden*.... Atlanta Joseph A. McCord. M. B. Wellborn L. C. Adelson M. W. Bell. J. L. Campbell Chicago Win. A. Heath J. B. McDougal C. R. McKay W. C. Bachman.i .S. B. Cramer F. J. Carr.i K. C. Childs.i J. LI. Dillard.i D. A. Jones .i O. J. Netterstrom.i A. H. Vogt.i Clark Washburne.1 St. Louis Win. McC. Martin. .| P. C. Biggs O. M. Attebery.... J. W. White. Minneapolis. John H. Rich .i R. A. Young W S. . S B . C . G oo e k ery B Fr . a V nk . M C o . o D re u . nlop.1 Kansas City... ! Asa E. Ramsay J. Z. Miller, jr C. A. Worthington. J. W. Helm. Dallas Wm. F. Ramsey... R. L. Van Zandt., LTnn P. Talley Sam R. Lawder. San Francisco. John Perrin J. U. Calkins Wm. A. Pay W. N. Ambrose. Ira Clerk < i Controller. 2 Deputy chairman. 3 Assistant to governor. * Assistant deputy governor. MANAGERS OF BRANCHES OF FEDERAL RESERVE BANKS. Federal Reserve Bank of— Manager. Federal Reserve Bank of— Manager. New York: Minneapolis: Buffalo branch Ray M. Gidney. Helena branch 0. A. Carlson. Cleveland: Kansas Citv: Cncinnati branch L. W. Manning. Omaha branch L. IT. Earhart. t Pittsburgh branch Geo. De Camp. Denver branch C. A. Burkhardt. Richmond: Oklahoma City branch C. E. Daniel. Baltimore branch Morton M. Prentis. Dallas: Atlanta: El Paso branch W. C. Weiss. New Orleans branch Marcus Walker. Houston branch E. F. Gossett. Jacksonville branch Geo. R. Pe Saussure. San Francisco: Birmingham branch A. E. Walker. Los Ansieles branch C. J. Shepherd. Nashville branch J. B. McNamara. Portland branch Frederick Greenwood. Chicago; Salt Lake Citv branch R. B. Motherwell. Detroit branch R. B. Locke. Seattle branch C. R. Shaw. St. Louis: Spokane branch W. L. Partner. Louisville branch W. P. Kincheloe. Memphis branch J. J. Berlin. 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 this second edition the Board has fixed a subscription price of $4 per annum to cover the cost of paper and printing. Single copies will be sold at 40 cents. Foreign postage should be added when it will be required. Remittances should be made to the Federal Reserve Board. No complete sets of the BULLETIN for 1915, 1916, or 1917 are available. in Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

TABLE OF CONTENTS. Page. Review of the month 131 Business, industry, and finance, January, 1921 142 Condition of wholesale trade 151 Production of knit goods 151 Production of finished cotton fabrics 152 Earnings and expenses of the Federal Reserve Banks 153 Commercial letters of credit 158 British floating debt 173 French war finance 174 International credits 181 The world's shipping 183 Official: State banks and trust companies admitted to the system 188 Fiduciary powers granted to national banks 189 Banks granted authority to accept up to 100 per cent of capital and surplus 188 Charters granted to national banks 189 Rulings of the Federal Reserve Board 191 Miscellaneous: Acceptance liabilities of member banks 171 Countries in which banks may accept drafts to furnish dollar exchange 188 Commercial failures during the year 1920 189 Statistical: Retail trade index 192 Foreign trade index 194 Wholesale prices abroad 195 Wholesale prices in the United States 211 Discount and interest rates prevailing in various centers 215 Physical volume of trade 216 Bank debits during January 228 Discount and open-market operations of the Federal Reserve Banks 231 Operations of the Federal Reserve clearing system 244 Resources and liabilities of the Federal Reserve Banks 237 Federal Reserve note account 242 Interdistrict movement of Federal Reserve notes 243 Condition of member banks in leading cities 245 Imports and exports of gold and silver 252 Estimated stock of money in the United States 254 Abstract of condition reports of State bank and trust company members 255 Condition of principal European banks of issue, 1913-1920 260 Discount rates approved by the Federal Reserve Board 254 Diagrams: French war financing 180 Wholesale prices in the United States 212 IT Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

FEDERAL RESERVE BULLETIN VOL. 7 FEBRUARY, 1921. No. 2 REVIEW OF THE MONTH. pects of commercial and financial revival. Better conditions in business have been mani- The first month of the new year has, as usual, fested during the past month. They have been been one of heavy expenditures most obvious in the field of banking and finance. finance a s u r y in public finance. Total ordi- They have, however, also been of decided signary receipts were $217,328,- nificance in industrial lines. What is called a 249, while ordinary expenditures were $388,- "readjustment process" has been developing 179,272, the result being a deficit of $170,851,- during the past few weeks. By this is meant a 023. Borrowing operations during the month clearing up of commitments based upon centered around two issues of Treasury certifi- old price levels, the establishment of a more cates which were dated January 15, the one normal and permanent basis of relationship running for three months and maturing on between demand and supply, and generally April 15, bearing interest at 5| per cent a conversion of industry from a war footing to per annum; the other running for nine a peace basis. While this process of readmonths and maturing on October 15, bear- justment is not complete, it has proceeded ing interest at 5f per cent per annum. far enough in a number of branches of business Whereas the amount offered was $250,000,000, to prepare the way for new constructive work. the gross subscriptions received were There has been a moderate increase of activity $588,596,500, while the allotments amounted in some of the textile trades, a betterment of to $310,686,500. Nine of the several districts conditions in the shoe and leather industry, and oversubscribed their quota. Better market a resijmption of activity in the manufacture and investment conditions have contributed of automobiles and of several other products. to stimulate the demand for the Government's Prices also have shown a tendency during obligations, as illustrated in the oversub- the month to resume a more nearly even scription of these certificates. or uniform level, retailers undertaking to Government operations during the month transfer to their customers some part at have not been of a character to produce least of the benefit arising from reductions any important effect on banking conditions. in cost at the point of production. While Withdrawals of deposits have from time to the Board's index number of wholesale prices for December receded 19 points, it is thought time, it is thought, exerted some influence that the index for January will probably upon rates in the money market, but this has show a smaller decline. The relative slowfor the most part been of minor importance. ing down in wholesale price reductions and Gradual retirement of problems of public the acceleration of retail price changes must finance from the position of business!11™ "* ^rst( or commanding importance not be regarded as indicating a new price reduction movement, but rather as the consumwhich they have occupied durmation or completion of the price cycle begun ing and since the war tends to shift the fundamany months ago with recessions of wholesale mental interest of the industrial and financial prices. Economic observers and analysts have community to those questions which grow long recognized that business changes tend directly out of business and banking conditions to move in successive waves or cycles, a period as distinct from fiscal problems. This is likely of great activity and prosperity being folto be increasingly the case during coming lowed by a less active and often less prospermonths, the attention of the community at ous condition of affairs. Indications of imlarge being now closely focused upon the pros- 131 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

132 FEDERAL RESERVE BULLETIN. FEBRUARY^ 1921. provement in certain industries, whatever they pected, exhibited itself clearly in connection may be have not had time to reflect themselves with bonds as well as with stocks, there hav- ; thus far in the Board's index of production, ing been an advance in the average price of which as usual relates to a period approximately three selected issues of Liberty bonds amountone month earlier than the date of publication ing to 2.81 points between December 31 and of the BULLETIN. Gains in some directions January 29. Other bonds of the best grade are, moreover, offset by losses in others. The have naturally risen even more pronouncedly following table, showing the Board's produc- than Liberty bonds. Coupled with the higher tion indexes, does not, therefore, reflect the prices of investment securities of all classes most recent developments pointing to trade there was at least a temporary tendency to and industrial improvement, but even this lowered tension in the market, which affected comparative table of indexes shows decidedly not only call funds on the stock exchanges, less falling off in the activity of production but also the prices charged for time funds, for than had been expected by some: commercial paper, and generally for other kinds of obligations. This reduction is in part the reflection of the more liquid banking i May-Aug., Sept.-Dec., Sept .-Dec, 1920. 1920. 1919. condition to which reference has already been made, but it is also in some measure the rem T o fo o n r t t a h 4 l s. R tiv el e a . - m T o fo o n r t t a h 4 l s. R tiv el e a . - m T o fo o n r t t a h 4 l s. R tiv el e a . - sult of the readjustment of business which has set free a considerable amount of funds while at the same time decreasing the active Receipts of live stock i at 15 western mar- demand for them. In this connection, also, kets (in thousands ofhead) 19,876 73.5 j 21,450 79.3 j 27,033 I 100 should be noted the effect of the lessened Receipts of grain at 17 interior centers (in activity in foreign trade in releasing funds thousands of bushels). 289,057 78.2 357,412 96.7 I 369,587 100 Si^ht receipts of cotton which during the recent past have tended to (in thousands of I bales) i 1,297 18.2 5,593 78.4 1 7,133| 100 be absorbed in sustaining the sale of goods on Shipments of lumber ' reported by 3 asso- credit to foreign countries. ciations (in millions Bi o tu ff m ee i t n ) ous coal pro- j | 2,992 101.4 2,524 85.6 | 2,949 100 Statistics show that while business reverses duel ion (in thousands of short tons)... 177,375 111.6 205,409 129.2 158,945 I 100 in 1920 increased sharply in both number and Anthracite coal pro- ! duction (in tbou- | liabilities, they have not been extreme. Exsands of short tons)...; 32,416 101.0 28,489 88.8 i 32,098 100 Crude petroleum pro- clusive of banking and other fiduciary suspenduction (in thou- sands of barrels) | 150,707 J114.5 154,784 117.6 131,608 j 100 sions, defaults in the United States during 1920 Pig iron production (in \ thousands of long j numbered 8,881, and involved $295,000,000 of tons) I 12,244 130.6 12,061 1128.6 I 9,377 j 100 Steel ingot production indebtedness, as against 6,451 failures, involv- (in thousands of long tons) 11,667 10,995 ing $113,000,000 during the preceding year. Cotton consumption (In thousands of I Failures in 1919 were, however, the smallest bales) I 2,105 102.7 1,484 72.4 I 2,050 100 Wool consumption (in j for almost 40 years. The percentage of all thousands of pounds).' 156,551 70.8 220,999 100 failures to the total firms in business is much below the average. It has been a matter of The better outlook in business generally has congratulation that the year 1920 closed withbeen paralleled by a decided out commercial embarrassments on a larger Financial imimprovement in financial con- scale than turned out to be the case, notwithprovement. ditions. A variety of factors standing that many had believed that there had tended to influence the prices of investment was a danger of a considerable increase in busisecurities for the worse during the month of ness mortality. Recovery of normal conditions December, so that price tendencies during the in the field of prices and the restoration of depast month contrasted sharply with those that mand to a more settled basis may result, as is had been developed in the closing days of 1920. now recognized, in the reestablishment of more There was a decided upward movement dur- favorable conditions for not a few business ening January in practically all securities. The terprises and in the consequent restoration of improvement has, as might have been ex- some concerns which have been in danger to a Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

FEBRUARY, 1921. FEDERAL RESERVE BULLETIN. 133 position of greater safety and better prospect- several Federal Reserve Banks where the ive profitableness. strain has been greatest. Thus, for example, Better conditions are also manifest in bank- the Federal Reserve Bank of Minneapolis has ing. The month of January undergone a very material improvement in its dation l0an " has on the whole been a Period reserve ratio during the month of January in consequence of the lightening of the strain of steadily advancing liquidaupon it due to the fact that member banks tion of loans. While this has not been true were able to liquidate in some degree their the country over, it has been distinctly true obligations to it as a result of payments made in some sections where the withholding of by farmers and borrowers throughout the farm products has during recent weeks tended to retard progress. Changes in the ratio of northwestern region. The improving condireserve for the Federal Reserve System as a tion of credit in the Northwest is attributed whole have been steadily upward. The fol- locally in part to the action of the Bank of lowing table shows the growth of the reserve North Dakota and other State authorities in ratio during the month of January, the figure advising the marketing of farm products. This reached for the last day furnished being the is believed to have had an important influence highest for many months past: in stimulating the movement of grain and other products to market. Even without such Jan.7 46.4 Jan. 21 48.5 intervention on the part of the authorities, Jan. 14 48.1 Jan. 28 49.0 however, it is probable that the movement This increase in reserve ratio would be of would have proceeded steadily, since the time less significance were it Dot for the fact that it had come when agricultural interests were bearises from the changed condition of affairs ginning to realize that they were injuring within the banking system itself and not rather than helping themselves by a policy primarily from the deposit of gold and specie of withholding their crops. The liquidaarriving from outside sources. Gains of gold tion of "frozen credit" has not been as rapid during the month have been of relatively less or as effective in some other parts of the counimportance, and the improvement of ratios is try, notably in certain regions of the South, thus due largely to the reduction in liabilities where large advances had been made upon consequent on business liquidation. Of equal cotton, whose movement has been interfered significance is also the increasing proportion of with as a result of the very low prices that have liquid paper in bank portfolios. The changes been ruling. Nevertheless, the improvement which have thus occurred during the month has been sufficient to be noticeable in all parts may be illustrated by noting the following of the country, and taken in the aggregate it figures giving for each weekly report period has, as already observed, succeeded in restoring during the month the cash reserves, note a much more satisfactory reserve situation in circulation, and total outstanding deposits of the system as a whole and in most of the several the Federal Reserve Banks. Federal Reserve Banks. The fact that the banking system of the [In thousands of dollars.] United States has passed the Cash Note cir- Net "trouSh" of the depression of Date. reserves. culation. deposits. recent months has been pointed Jan.7 2,276,848 3,270,023 1,634,538 out by Governor Harding in two addresses Jan. 14 2,288,538 3,159,491 1,595,446 made in New York City, the first on January 5 jan 21 2,301,231 3,115,290 1,628,507 Jan. 28 2,319,974 3,090,748 1,643,221 and the second on January 17. In both of these addresses Governor Harding called atten- Even the figures thus cited do not, however, tion to the facts already cited, that there was when taken in the aggregate, fully illustrate the a distinct movement toward liquidation of importance of the change that has been in paper at commercial banks and that commoprogress. That can be fully realized only dities were beginning to move more freely to when a study is made of conditions at the market. He discussed the effect of this change Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

134 FEDERAL, RESERVE BULLETIN. FEBRUARY,, 1921. upon the general liquidating power of theit take its course. The Federal Reserve deals community and he also noted the influence of with general conditions. It deals with the banking situation as a whole, and the reserve it upon the condition of the Federal Reserve position—the inherent strength of the Federal Banks themselves. Speaking of the general Reserve Banks—has so much improved that ability of the banking system of the country to you need have no apprehension whatever that meet all reasonable demands upon it, Governor the Federal Reserve position can not take care Harding said in the address of January 17: of the banking situation in general. It can do so and will do so." "The banks of the country have, generally speaking, responded to the urgent needs of Complete figures now available for the those dependent upon them for credit accom- entire year 1920, as exhibited modation, and while exercising care and disro F s o r r e e s ig s n trade m• ,i report , s o < f ? t , h 1 e D -r, e par x tcretion in making new loans, have not resorted ment of Commerce and made to precipitate or drastic means of forcing collections. The member banks have received public on January 21, 1921, show that the ample accommodations at the Federal Re- forecasts of the operations for the year offered a serve Banks, which have in turn extended ac- month ago have been substantially fulfilled. commodation to each other. There has been For the year 1920 the entire export movement no deflation for the sake of deflation, but has been $8,228,000,000, while imports were expansion during the year just closed was checked.7' $5,279,000,000, a net outward movement on merchandise account alone ("favorable balance In the same address Governor Harding also of trade'7) of $2,949,000,000. Taking the year said, in referring to the reserve situation: as a whole, on the other hand, there has been a "Since November 5 the loans and note issues net inward movement of gold and silver aggreof the Federal Reserve Banks have been reduced in amounts which might be regarded as gating $81,000,000. The net balance in favor normal in ordinary circumstances, and theof the United States on behalf of merchandise reserves of the 12 banks combined are now 48 and specie account is thus to be considered per cent, as compared with 45 per cent a year approximately at $2,868,000,000. While it is ago. Our present banking system has been not possible to obtain an absolutely accurate put to the severest tests during the past four years and has met them all. It has shown its estimate of the foreign government and ability to extend credits in ever-increasing industrial securities of all kinds floated in the volume in order to meet the requirements of a United States during the year 1920, the total great producing country in time of war, and amount may be reliably put at approximately during the past year has shown its ability to $576,000,000, thus leaving in the aggregate an absorb the shock and prevent a money panic such as heretofore has always occurred in times apparent accumulation of balances on our after periods of undue or extraordinary expan- behalf abroad, as the result of 1920 trade, of sion/ ' $2,292,000,000. To this sum should be added In the earlier discussion of the situation the liquidation of $400,000,000 of the half already referred to, general assurance was billion dollar Anglo-French loan (the other given that business conditions in the main $100,000,000 having been refunded), interest were steadily improving. At that time Mr. paid and due to the United States, and a con- Harding said: siderable net balance owing this country for "I am thoroughly convinced that any dan- shipping services. On the other side of the fjer which may have existed of a general col- account, deductions must be made for investapse—and I have never thought that danger ments by Americans in the internal bonds of was as imminent as a great many people have foreign countries, other capital investments thought it was—but any such danger as that abroad in the form of real estate or industrial has passed. I think undoubtedly that the worst is over. And while the Federal Reserve ventures, American securities repurchased from System can not deal with individual cases, if foreign holders, immigrants' remittances, donathere are individuals who have become so tions for relief, tourists^ expenditures, and much overextended that they will have to several other items of lesser significance. A undergo a process of readjustment—that after careful consideration of all these elements all is merely an individual condition which will have to be taken care of. We will have to let entering into the trade balance of the United Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

FEBRUARY, 1921. FEDERAL. RESERVE BULLETIN. 135 States leads to the conclusion that during 1920 very great importance. During the past few there was added to our unfunded balance with months it has assumed a new importance, and the rest of the world a sum between $1,500,- recent developments have made it plain that 000,000 and $2,000,000,000. what has become popularly known as the il can- The following table is a summary of a de- cellation evil" has been growing. It became tailed tabulation made by the Guaranty evident during the months of November and Trust Co. of New York City for the Federal December that foreigners were in many cases Reserve Board: refusing to receive goods they had ordered— certainly unless substantial price concessions Summary, by countries, of foreign loans, including govern- were made, such price concessions being inment, municipal, and corporation issues, floated in the United States during 1920. tended to correspond to the levels of values which in the meantime had been attained in [000 omitted.} the American market. This situation con- Corporation. fronted American exporters with the serious State question whether they should have goods stored Country. Govern- and Total. ment. munici- Rail- Public Indus- at their own expense or whether they should pal. road. utility. trial. sell them for what they would bring at the Canada $79,922 $96,500 $10,700 $14,050 $201,172 port of arrival. That question has in some Cuba 1,700 29,200 30,900 Philippines... $16,000 16,000 instances been settled either one way or the Peru "*8*666" 8,000 Belgium 75,666 11,000 86,000 other, but in much the larger number of cases Denmark 25,000 25,000 France 100,000 3,250 103,250 still remains open. Meanwhile drafts which Great Britain. * "15*666" 15,000 Italy 25,666 25,000 were drawn against the goods have been Norway 20,000 9,666 29,000 Switzerland... 25,000 12,000 37,000 returning to the United States in a steady Total.... 286,000 100,922 101,450 10,700 77,250 576,322 stream, due to refusal on the part of the drawee to accept them. Such drafts have Although it had been expected by many that been charged off against the accounts of the there would be a slowing down of the growth of exporting houses and have correspondingly our export balance during the latter part of reduced their balances at the banks. This the year, such retardation as has occurred in situation should be taken into account when that connection has been small. The tenden- considering the "favorable" export balance. cies of foreign trade for the opening of the year How much of this favorable balance consists 1921 are such as to indicate that in not a few of goods which have been shipped to foreign directions foreigners feel the necessity of ob- countries upon more or less definite orders or taining American goods, so that it may be contracts, but which have there failed to be expected that there will be a steady growth of taken by the consignees, it is impossible to say. our balance with certain countries at any rate, In so far as such rejections have taken place due to the continuous shipments of staple it is clear that they are to be regarded as products to them. This appears to be con- constituting a deduction from actual favorable spicuously true of the European countries, and balances, since they represent practically the the problem of finding some means of financing worth of unsold goods which had merely been trade with them upon satisfactory lines is thus shipped to the foreign markets and had not important. been disposed of there. This is a considera- A modifying factor must, however, be care- tion which should be taken carefully into fully noted in connection with account in any effort to compute the true The cancella- the study of our balance in financial position of our foreign trade, since, tion evil. foreign trade. This is the re- without making allowance for it, it might duction which must be made in order to allow easily appear that the volume of goods reprefor the goods which have been affected by can- sented by bills of exchange and drafts maturing cellation of orders after shipments had reached or still to mature was very much larger than foreign ports. This item is always present in was actually the case. This condition is one foreign-trade analysis but it is not usually of which, moreover, tends to aggravate the foreign Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

136 FEDERAL RESERVE BULLETIN. FEBRUABY, 1921. exchange situation because of the fact that Foreign exchange rates from Dec. 31, 1920, to Jan. 1921. such merchandise is subject to sale in the foreign country to which it has been shipped Week ending Week ending Week ending and may thus give rise to unexpected claims Dec. 31,1920. Jan. 8,1921. Jan. 15,1921. at any given moment. On the other hand, High. Low. High. Low. High. Low. there is to-day in the United States an increasing amount of foreign merchandise which England 3.5338 3.4900 3.6600 i 3.5323 3.7675 3.6525 has been shipped to New York and other mar- I F t r a a l n y ce . . 0 0 5 3 9 4 4 6 . . 0 0 5 3 7 3 9 4 . .0 0 3 6 5 0 4 4 . . 0 0 5 3 6 3 5 8 . . 0 0 6 3 2 5 0 7 . .0 0 3 5 4 9 4 5 kets in the hope of realizing dollars upon it. A Sp rg am entina . . 1 3 3 3 4 8 5 8 . . 3 12 2 9 6 3 3 . . 3 1 4 3 1 4 4 5 . .3 1 3 3 5 0 6 5 . . 3 13 4 5 9 6 2 . .3 1 4 3 1 1 1 0 This has in some cases been shipped for the C C h h i i n n a a ( ( H Sh o a n n g g k h o a n i g ). ) . . . . ! . .7 5 5 7 0 5 0 0 . . 5 7 6 2 2 5 5 0 i | . . 5 7 8 7 0 5 0 0 . . 5 7 5 4 5 0 0 0 . . 5 7 7 6 0 0 0 0 . . 5 7 5 2 5 0 0 0 purpose of providing remittances at an econom- J G a e p r a m n an ( y Yokohama).. . . 0 4 1 8 3 7 8 5 . . 0 4 1 8 3 3 7 8 i j. . 4 0 8 1 3 3 8 9 . .0 4 1 8 3 3 2 8 . .0 4 1 8 5 3 0 8 . .0 4 1 8 3 2 9 5 ical rate, in other cases for the mere purpose S Sw w e it d z e e n rl an (S d t ockholm)i j . . 1 1 9 52 9 0 0 . . 1 1 5 9 1 7 4 5 | ! . . 2 1 1 5 1 5 0 0 . . 1 2 5 0 1 0 8 0 . . 2 1 1 5 5 7 5 2 . . 1 2 5 1 5 2 0 0 of finding a market which is lacking in coun- H Be o l l g la iu n m d I | . . 3 0 1 6 3 2 0 3 . . 0 3 6 1 1 2 2 0 ! i . . 3 0 2 6 0 3 6 1 . . 3 0 1 6 2 0 5 7 . .0 3 6 3 5 0 3 0 . . 3 0 2 6 1 2 3 5 tries which are suffering depression or are Canada ! .8543 I.8625 .8475 .8793 Bar silver in New unable to pay in cash for goods they receive. York .6663 .6425 .6863 .6563 .6725 .6513 The congestion in American markets intro- Week ending Week ending duces likewise a factor of error in our import Jan. 22,1921. Jan. 29,1921. statistics, so that both from the import and export sides the present study of trade balances High, j Low. High, j Low. is interfered with by considerations whose England 3.7750 3.7375 3.8900 3.7700 exact significance can not be ascertained. France .0695 .0615 .0746 .0682 Italy .0364 .0345 .0382 .0358 The disturbances in our foreign-trade balance Spam .1350 .1322 .1402 .1342 Argentina .3481 . 3438 .3563 .3470 which are thus indicated lend fresh force to the China (Hongkong) .5650 . 5550 .5600 .5263 China (Shanghai) .7500 .7400 .7475 .6788 familiar economic principle that during periods Japan (Yokonama) .4S25 .4825 .4838 .4838 Germ any .0168 .0155 .0183 .0168 of changing price levels the hazards of busi- Switzerland .1576 .1560 .1605 .1570 Sweden (Stockholm) .2165 .2132 .2205 .2150 ness are very materially increased. The state- Holland ,3313 .3282 .3413 .3304 Belgium | .0733 .0646 .0780 .0714 ment holds particularly true in connection Canada 8800 .8725 .9063 .8806 Bar silver in New York 6788 .6550 .6688 .6275 with foreign trade, because of differences in commercial practice, commercial law, and Factors influencing the course of foreign other elements which render business relationexchange during January have been anticipaships of an international sort less stable and tory or "psychological," rather than direct or definite than those which grow out of domesticactual. The adoption of legislation reviving transactions. the War Finance Corporation and the definite In these circumstances it is not strange that statement that the American Bankers Associaforeign exchange has continued tion committee, as well as some other organiza- Foreign ex- to undergo sharp fluctuations, tions of banking interests, had practically change fluctua tions. although the community has agreed upon the plans for the establishment noted with satisfaction that the of companies under the Edge Act for the general movement of exchange quotations purpose of financing foreign business, may have during January has been decidedly upward. had some effect in tending to maintain the In the following table are reviewed the quota- value of foreign currencies, although it has tions of some of the principal currencies, and been quite specifically stated from time to from these it will be apparent that both ster- time that these enterprises were intended to ling, francs, and lire were, on the whole, in a support future business rather than to absorb distinctly better position at the close of the the results of past operations. On the other month than they were at the outset. Exchange hand, the fact that the German reparations on South American countries and on the Orient, question was being given serious study and on the other hand, has continued in a depressed that apparently the final statement of the condition. terms upon which adjustment was to be Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

FEBRUARY, 1921. FEDERAL RESERVE BULLETIN. 137 made could not be very much longer de- also make loans to banks or trust comferred, probably tended to encourage Ameri- panies which have advanced funds to individcan owners of foreign balances in the belief ual borrowers for the purpose of facilitating that better conditions in the exchange market exportation, but such advances are not to might be expected to develop within a com- exceed the net amount which any such bank paratively short time. In eastern exchange or trust company has failed to collect from the practical suspension of the purchase of the borrower. Attention was also called to Australian and other bills has continued, the fact that advances made by the corporawhile conditions in Oriental markets are hardly tion are to be furnished upon promissory notes better than formerly. In the South American signed by the borrower, but "with full and market the further extension of the Cuban adequate security in each instance by indorsemoratorium and of similar suspensions in other ment, guaranty, or otherwise.'7 On January South American countries has served still 5 the directors of the War Finance Corporation further to postpone the restoration of a settled rescinded the former resolutions of May 10, basis of exchange between those countries and 1920, by which the consideration of further the United States. applications for export credits had been The House of Representatives on January suspended. In the statement of January 15, 4 having adopted the joint to which reference has already been made, the *" resolution providing for the managing director of the War Finance Corporarevival of the activities of the tion said: War Finance Corporation, previously adopted "Since January 5, the corporation has been prepared to consider applications for advances by the Senate on January 3, the measure that meet the terms of the law in the same became law. On January 15 the managing manner that it considered advances prior to director of the War Finance Corporation, in the suspension of its activities in May. In responding to various inquiries directed to submitting applications for loans, applicants im, issued a statement regarding the effect of should set forth in detail all facts relating to the action taken by Congress, in which he their financial condition, the purposes of the proposed advances, and full information to called attention to the provisions of section 21 enable the corporation to determine whether of the War Finance Corporation act in which the applicants are eligible under the law and the scope of its powers in advancing funds is can meet its terms and conditions. In so far clearly described. According to the section in as is necessary the corporation will give perquestion the corporation, in order to promote sonal hearings to prospective borrowers." commerce with foreign countries, may make The number of applications for actual adadvances for periods not exceeding five years vances under the terms of this announcement to any person or firm engaged in exporting to has, however, been comparatively small. foreign countries, provided that such borrower During the month progress has been reported is unable to obtain funds upon reasonable in the further organization of the corporation terms through banking channels. Such loans projected by the American Bankers Association are to be made only for the purpose of assisting for financing foreign trade, for which it is inin exportation and are limited in amount to tended to raise an initial capital of $100,000,000. not more than the contract price, including On January 28 the Board approved the insurance and transportation charges, while articles of association and the organization certhe rate of interest is to be not less than tificate of the new enterprise; under the name 1 per cent in excess of the rate of discount of the Foreign Trade Financing Corporation. for 90-day commercial paper prevailing at In a public statement in New York City, made the time of the loan at the Federal Reserve on January 19, the chairman of the board of Bank of the district in which the borrower is directors of the proposed new organization located. This would mean at the present made a tentative preliminary announcement of time a rate of about 8 per cent in certain Fed- the personnel of the enterprise and indicated eral Reserve districts. The corporation may that the plans had been perfected for obtaining Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

138 FEDEKAL KESERVE BULLETIN. 1921. subscriptions to the capital stock. In the them into long-term bonds or through the inmeantime one other corporation, organized crease of taxation, The definite settlement of under the terms of the Edge Act, has been the basis for reparations is, however, absolutely established in the South, with headquarters at fundamental to the full resumption of business New Orleans, its object being primarily to activity in any direction. Without such defifacilitate the exportation of cotton to foreign nite settlement it is impossible to arrive at a countries. Thus far none of the undertakings satisfactory adjustment of foreign-trade condiprojected has gotten under way or taken up tions in so far as these are affected by the future any business. of German industry, which in many lines Adjustment of the questions which are still played an important part in world trade before pending between the United the war and doubtless will do so again. ForconferPence.tiOnS States and the other countries eign countries, therefore, including the United States, are directly affected by the policy to be is dependent upon the satisfacadopted in adjusting this reparation question, tory working out of the questions relating to even though, as in the case of the United States, German reparations. These questions were they are not to share in the distribution of the taken under advisement at the conference of total amounts to be paid as reparations. Parallied premiers occurring during the month of ticularly does this statement of the situation January, the purpose being to determine a apply in the case of Germany herself, where the feasible basis for the settlement of the German resumption of business on a large scale is necesreparations payments, with a view to adjusting the payments to Germany's capacity and at the sarily retarded through inability to estimate same time endeavoring to obtain for the coun- properly the conditions under which business tries which are entitled to damages the maxi- will be carried on or the probable intensity of mum possible payments. On January 29 pre- taxation pending the time when the reparations liminary announcement was made of the terms plans become fully known. Foreign investors of the reparations payments. These included can not be induced to put their funds in any a sum of 232 billion marks (gold), of which 3 large measure into German enterprises unless billion marks was to be paid annually for 5 they can be assured of a considerably more years to come, 5 billion marks annually for a thorough knowledge concerning not only the second 5-year period, and 6 billion marks an- tax situation, but the other conditions which nually for the remaining period of 32 years. they may be called upon to meet. From many Associated with these annual payments was, standpoints, therefore, it would seem clear that moreover, to be the proceeds of a tax upon arrival at a positive agreement concerning the Germany's entire export trade amounting to German settlement was fundamental not only 12 per cent ad valorem. It is further provided to the restoration of sound budgetary condithat Germany shall undertake no credit opera- tions in France and probably in some other tions abroad without the consent of the allies. countries as well, but also essential to the rees- As yet it is too soon to state whether these tablishment of foreign trade upon a sound and terms will in the final analysis be adhered to. secure basis. That such is the case must be Meantime, however, the importance of arriving taken as unquestionably axiomatic—a fact at and beginning the application of a definite which was realized by the Brussels financial plan of adjustment is evident. This, so far as conference as well as in the discussion of inter- France is concerned, is indicated by the state- national financial affairs, which has been in ment that a very considerable part of her cur- progress since that time. rent extraordinary budget outlays has been A change in the cabinet of France has been made in the belief that they would be settled the occasion for making; known by the use of funds to be obtained from Ger- Foreign budg- •. , ., .,, many. In the absence of such means of settle- etary conditions. some details with reference to ment the only way of disposing of these obliga- the fiscal transactions of that tions would presumably be through converting country during the year 1920. From statements now made it appears that whereas bud- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

FEBRUARY, 1921. FEDERAL RESERVE BTJIX.ETIK. 139 get estimates of expenditures on behalf of tions relating to the treatment of the obligaordinary and extraordinary account during tions growing out of Great Britain's war inthe year 1920 amounted to 27,181 million debtedness to the United States represented francs, receipts from taxation during the year by bonds held in the Treasury at Washingamounted to about 20 billion francs. These tax ton, shows that the development of a final and revenues were, it is true, almost double those of permanent basis of understanding with this the preceding year, but fall far short of the country in regard both to past and possible actual current requirements of the nation. future loans is recognized as a problem of the For in addition to the expenditures noted first moment by those countries which are above, the 1920 budget provided for an ex- affected by it. penditure of 20,751 million francs on pensions Gold imports during the calendar year 1920 and the rehabilitation of the devastated re- Gold and sil- totaled 428.7 millions, comgions. This sum, it was hoped, would be re- ver movements, pared with 76.5 millions for covered from Germany. The budget during the calendar year 1919, while gold exports agthe year 1920 has been divided into three dis- gregated 322.1 millions, compared with 368.2 tinct sections, the first, including the ordinary millions exported in 1919. Gold imports are revenues and expenditures; the second, the shown inclusive of 111.5 millions of gold extraordinary; and the third, expenditures re- formerly held earmarked for account of the coverable from Germany. In the ordinary Federal Reserve Banks by the Bank of Engbudget has been included all of the revenues land and returned late in the year to this from taxes, while against them have been country. This amount does not affect the total charged the expenditures relating to regular gold reserves of the Federal Reserve Banks, and current obligations of the Government, since gold held by foreign agencies was counted by the Reserve Banks as part of their reserves. amounting in the aggregate to 21,761 million Practically no change for the year is shown francs. Under the heading of extraordinary in the gold reserves of the Reserve Banks. expenditures have been included those involved in the liquidation of war contracts Of the total gold imports for the year, 274.9 and the cost-of-living bonuses. This portion millions, or over 64 per cent, proceeded from of the budget amounts to 5,420 million francs. Great Britain; 48.7 millions, or over 11 per The third section covers outlays in connection cent, from France; 34.2 millions, or 8 per with reconstruction and pensions, which it was cent, from Canada; and 30.2 millions, or 7 per assumed were to be made out of the payments cent, from Hongkong, smaller, though still imto be received from the German Government portant, receipts of gold being credited to Coon reparations. As was mentioned above, this lombia, Mexico, the Dutch East Indies, and sum totals 20,751 million francs, of which more Peru. Nearly 60 per cent of the total gold than 15,000 million francs is to be spent in re- exports for the year were consigned to Asiatic construction in the devastated regions. As a countries and over 31 per cent of the total, or matter of fact, reparations, while proceeding 101.3 millions, to Japan alone, other important Asiatic destinations being Hongkong, China, satisfactorily in the matter of coal and some and the Dutch East Indies. Argentina is other items, have remained in an indetermishown to have taken about 90 millions, or nate condition. To meet these expenditures about 28 per cent, of the total gold shipped it was therefore necessary for the Governout of the country during the past year. ment to float loans both in the spring of 1920 Other countries to which large gold shipments and again recently. were made during the past year are Mexico, The designation by the British Government which received 18.2 millions, or 5.6 per cent, of a financial envoy, whose duty it should be to of the total, Uruguay (12.9 millions), and consider with the Treasury Department ques- Canada (5.6 millions). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

140 FEDBKAL RESERVE BULLETIN. FHERTJAEX, Net imports of gold since August 1, 1914, (In thousands of dollars.] were $891,268,000, as may be seen from the following exhibit: Excess of Dates. Imports. Exports. ex o p v o e r r ts [In thousands of dollars.] imports. } Excess of Aag. 1 to Dec. 31,1914 12,129 22,182 10,053 Jan. 1 to Dec. 31,1915 34,484 53,599 19,115 Dates. Imports. Exports, jj Jan. I to Dec. 31,1916 32,263 70,595 38,332 exports. Jan. 1 to Dec. 31,1917 53,340 84,131 30,791 Jan. 1 to Dec. 31,1918 71,376 252,846 181,470 Jan. 1 to Dec. 31,1919 89,410 239,021 149,611 Aug. 1 to Dec. 31,1914 ! 23,253 ! 104,972 181,719 J J a a n n . . 1 1 t t o o J D a e n c . . 1 3 0 1 , , 1 1 9 9 2 2 1 0 | 8 1 8 , , 2 0 3 6 1 0 11 3 3 , , 4 6 0 16 4 2 2 5 , , 1 5 7 5 3 6 Jan. 1 to Dec. 31,1915 ! 451,955 ! 31,426 420,529 J Ja a n n . . 1 1 t t o o D D e e c c . . 3 3 1 1, , 1 1 9 9 1 1 7 6 j 6 5 8 5 5 3, , 7 7 1 4 3 5 I j 3 1 7 5 2 5 , , 1 7 7 9 1 3 5 1 2 8 9 1 , , 9 5 5 4 2 2 Total 382,293 i 839,394 457,101 Jan. 1 to Dec. 31,1918 61,950 } 40,848 21,102 Jan. 1 to Dec. 31,1919 76,534 i 368,185 1291,651 Jan. 1 to Dec. 31,1920 \ 428,744 j 322,091 106,653 Mexico furnished $877,000, or about 70 per Jan. 1 to Jan. 10,1921 j 5,899 | 1,039 4,860 cent, of the $1,231,000 of silver imported dur- Total j 2,287,793 1,396,525 j 891,268 ing the 10-day period ending January 10, most 1 Excess of exports over imports. of the remainder coming from Peru and the Gold imports for the 10-day period ending Dutch East Indies. Of the silver exports, January 10 of the present year amounting to amounting to $3,404,000, over one-half, or $5,899,000 were received principally from $1,821,000, was consigned to Hongkong, $830,- England and France. Of the gold exports, 000 to China, and the remainder to Mexico, amounting to $1,039,000 during the first 10 Cuba, and Canada. days of the present year, $969,000 was con- Developments in the banking field during the signed to Mexico and the balance to Hong- last week in 1920 differed essenkong and Canada. situafion.an mg tigdry from those shown for the Silver imports during 1920 totaled 88.1 mil- first three weeks of the present lions, compared with 89.4 millions in 1919, year. The last week of the past year saw the while silver exports for the year were 113.6 mil- usual end of year resumption of borrowings, lions, compared with 239 millions exported and a consequent increase in individual deduring the preceding year. Net silver exports posits. Another factor responsible for the for the year were 25.6 millions, as against 149.6 large increase during that week—by over 350 millions in 1919. Over 60 per cent of the total millions—in net demand and time deposits was amount of silver brought to the United States the return flow of large amounts of currency came from Mexico, and 12 millions, or 13 per which, after being credited to customers7 decent, came from Peru. Substantial amounts posit accounts, were used by the member banks of silver are shown to have been imported dur- mainly to reduce their indebtedness to the ing the past year also from Canada, Chile, the Federal Reserve Banks. A peculiar feature of Dutch East Indies, and China. Of the total the week's development was also the increase by silver exports, over 84 per cent was consigned over 15 millions in the reporting banks' holdings to the Far East, exports to China constituting of United States bonds and Victory notes, apover one-half of the total amount of silver parently taken over from customers desirous shipped out of the country during the past to establish losses for income-tax purposes. year. British India, to which in 1919 over 45 During the subsequent three weeks liquidaper cent of the total silver exports were con- tion of loans and investments was practically signed, received but small amounts of silver continuous, affecting all specified classes of from this country during the last year. Silver loans and investments except Treasury certifiexports to Great Britain during 1920 totaled cates. United States bond and Victory note 4.9 millions. Over 7 millions were shipped to holdings show a reduction during the first three Canada and 3.2 millions to Mexico. weeks of present year of about 45 millions, while Net exports of silver since August 1, 1914,holdings of corporate securities show an increase were $457,101,000, as may be seen from the of about 13 millions during the two weeks since following exhibit: January 7. Treasury certificate holdings, on the Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

FHBEUART, FB0BRAL KESERVE BULLETIN. 141 other hand, show a continuous decline by about on hand fluctuated between 261.3 millions on 89 millions during the first three weeks of the December 30 and 289.7 millions on January 14, period under review, largely during the first when four Federal Reserve Banks held 28 milweek in January, when about 135 millions of lions of special certificates to cover advances to outstanding certificates matured, and an in- the Government pending collection of funds crease of 55 millions during the fourth week from depositary institutions. which witnessed the redemption of about 125 The volume of interreserve-bank discounting millions of certificates matured on January 15 showed a continuous decrease, the total of and the allotment on that date of about 310 paper held under rediscount for other Federal millions of new loan certificates. Loans secured Reserve Banks by the Boston, Philadelphia, by United States Government obligations, after and Cleveland banks declining from 115.3 milan increase by about 20 millions during the last lions on December 30, 1920, to about 41 millions week in 1920, declined by about 81 millions on the fourth Friday in January. The number during the subsequent three weeks, loans sup- of rediscounting Federal Reserve Banks on that ported by corporate securities show a similar date included only those of Atlanta, Dallas, and course and on January 21 were 44 millions Minneapolis, both the Richmond and Kansas less than four weeks before, while other loans City Reserve Banks having redeemed their outand investments, composed largely of com- standing rediscounted paper during the fourth mercial loans and discounts, show considerable week in January. On the other hand, the New net liquidation during the last tw^o weeks, with York bank, during the latter part of the period, the result that the January 21 total is about 84 increased considerably its sales of bank acceptmillions below the December 24 total. Total ances to other Federal Reserve Banks, bills thus loans and investments on January 21 stood at sold to and held on January 28 by the Boston, 16,439 millions, or about 253 millions below Cleveland, and San Francisco banks aggregating the total shown four weeks earlier. 51.8 millions, compared with 6.9 millions of such bills held by the San Francisco bank four Accommodation of the reporting banks at weeks earlier. the Federal Reserve Banks during the first three weeks under review declined from 2,174 to 1,894 Net deposits fluctuated between 1,643.2 milmillions, or from about 13 per cent to 11.5 per lions on January 28 and 1,595.4 millions on cent of the banks' total loans and investments. January 14. Federal Reserve note circulation For the week eliding January 21 the Federal shows a decline since December 30 of 254 mil- Reserve Banks show an increase by about 40 lions, as against a net reduction of 148 millions millions in bills held under discount for the during the corresponding period in 1920, and reporting institutions, the total held on that of 196.9 millions in 1919. Gold reserves, as the date, 1,934 millions, indicating a reduction durresult mainly of further purchases of imported ing the four weeks of about 240 millions, or only gold, show a continuous increase during the slightly less than the net liquidation during the period from 2,059.3 to 2,106.1 millions, while period of aggregate loans and investments of total cash reserves show a much larger gain the reporting banks. from 2,249.2 to 2,320 millions. Largely be- For the four weeks between December 30, cause of the gains in reserves and of the simul- 1920, and January 28 of the present year the taneous considerable reductions in note liabili- Federal Reserve Banks show a reduction of ties, the banks7 reserve ratio shows a continuous about 92 millions in their holdings of paper rise from 45.4 to 49 per cent. secured by United States Government obliga- The Helena (Mont.) branch of the Federal tions and of about 263 millions in their total Helena branch Reserve Bank of Minneapolis, holdings of discounted paper, this reduction opened. authorized by the Federal Rebeing continuous except for the week ending serve Board on June 19, 1919, was opened for January 21, during which the Federal Reserve business February 1. The Board has desig- Banks increased their discounts by 33.5 milnated Helena as a reserve city, in accordance lions. Holdings of acceptances purchased in with its established policy of classifying as open market show a continuous decline from reserve cities all cities in which branches of 255.7 to 165.1 millions. Treasury certificates Federal Reserve Banks are located. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

142 FEDERAL KESERVE BULLETIH. FBBEUAEY, 1921. BUSINESS, INDUSTRY, AND FINANCE, JANUARY, 1921. Business developments during the month Agriculture.—As is usual at this season of of January have shown a slight but unmis- the year, developments in the agricultural takable turn toward a better state of affairs. situation have been few and of little impor- At some plants where considerable numbers of tance. Prevailing temperatures throughout the men have been unemployed industrial opera- agricultural sections have been mild and comtions have been resumed in whole or in part. paratively uniform and very little damage has The Bureau of Labor, however, reports a total resulted from alternate freezing and thawing of 3,473,466 unemployed for the country to except in district No. 4 (Cleveland), where January 15. Prices in many lines have gone some damage has been done to the wheat crop no lower than the level which had been estab- due to the lack of a covering snow. Snows lished at the close of 1920. Banking con- have fallen in many sections and have been of ditions have materially improved, partly great benefit to the winter grain, but as yet through the steadier and more rapid movement there is still in general an insufficient amount of agricultural products to market and partly of moisture. In district No. 8 (St. Louis) it is through the more rapid liquidation of paper reported that "on the whole the condition of already held by member banks. As a result winter wheat is fair to good/7 and "thus far the reserve ratio of the Federal Reserve there have been fewer complaints than usual of system had risen to 49 per cent at the last damage from inclement weather/7 while disreporting date in the month (Jan. 28). Mem- trict No. 10 (Kansas City) states that "wheat ber bank conditions also show improvement generally is reported to have a fine green color in liquidity and increasing strength. Failures and excellent condition/7 The mild and unihave been relatively fewer. There are signs form weather which has prevailed on the whole of a distinct improvement in certain brancnes throughout the winter has been favorable for of the textile trades, while retailers are now out-door farm work, and in most sections good beginning to buy much more freely and progress has been made in plowing for spring actively than heretofore, due to the depletion crops. of the stocks on their shelves. Farm The close of the year found a considerable products, although fluctuating more or less amount of cotton still unpicked in district No. widely, have maintained themselves at prices 11 (Dallas), but it is generally believed that substantially equivalent to those established most of the unpicked crop will be saved. In during December. There has been little or district No. 10 (Kansas City) "the Oklahoma no gam in export trade conditions, but preparareport for the week ending January 4 said 20 tions for the placing of export financing upon a per cent or more of the cotton crop, all very more satisfactory basis were believed to lay the low-grade, was still in the fields/7 while disfoundation for a distinct improvement of the trict No. 8 (St. Louis) reports that "belated outlook. Changes in wholesale prices were picking has been stimulated by a temporary in the main due to an equalizing process market for weather-stained cotton.77 Some whereby certain products which had failed low-grade cotton has been left ungathered in to decline during the earlier period of reducdistrict No. 5 (Richmond) but " due to favorable tion were brought down closer to a point weather and a slight stiffening in prices, more at which they harmonized with the new level cotton has been picked during the last two established after the price shrinkages of the weeks.77 Little cotton was sold in that disautumn. Retail prices have also shown during trict during December, due to the unsatisthe month of January a much greater tendency factory prices, but around the opening of the to reflect the changes that had already new year prices showed an upward tendency. occurred in wholesale prices. While, there- There is still much evidence of the holding fore, it can not be said that very material movement among cotton producers in district alteration of fundamental conditions has oc- No. 11 (Dallas), but receipts at Galveston as curred, enough progress has been made to compared with ginnings in Texas to January give assurance of a steady movement toward 1 would indicate that the rate of marketing is sounder conditions in Jmsiness. There is a "not so far below normal.77 "Evidence conwide demand for American goods. The diffi- tinues to accumulate77 that crops will be more culties connected with marketing are found diversified in the district in 1921. A heavy in the question of prices and of terms to be increase in winter-grain acreage is reported, arranged with purchasers. and many farmers it is believed will raise a Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

FEBRUARY, 1921. FEDERAL RESERVE BULLETIN. 143 larger supply of their own necessities from vailed in district]JNo. 9 (Minneapolis) "with their land. Much talk of reduced acreage, but minor exceptions," and a narrower range both of cotton and tobacco, continues in was exhibited. Thus the high and low prices district No. 5 (Richmond). of No. 1 dark northern cash wheat in December Tobacco,—Conditions in the several tobacco were $1.87f and $1.52, as compared with $2.22 sections continue unsatisfactory. Farmers in and $1.81^ during November. * In early Janudistrict No. 8 (St. Louis) are unwilling to accept ary, however, increase was found in general in the the prices offered, claiming that they do not cover markets in many sections. From mid-Decemthe costs of production. It is stated, however, ber to mid-January the grain markets in district that "the best grades are selling at reasonably No. 8 (St. Louis) were subject to frequent and fair prices, while the inferior grades, of which broad fluctuations, the character of which rethe crop is largely composed, are bringing un- flected "unusually heavy speculative activity." usually low figures." Little tobacco was sold Cash hard winter wheat at Kansas City sold in district No. 5 (Richmond) during December, on January 14 at $1.81—$1.85, as compared and "many of the markets were closed a good with $1.69-81.70 around Christmas, part of the month or until after the holidays." Flour milling.—Milling operations in the In district No. 4 (Cleveland) many of the first part of January increased materially over markets closed shortly after the opening, due those during December, but were still conto the low price offered. A general sentiment siderably lower than a year ago. Kansas City in favor of a reduction in the tobacco acreage mills during the first week of January were apparently exists in all the sections. "Much operated at 67 per cent of capacity, during talk is heard of raising no burley crop in 1921" December at 58 per cent, and during the first in district No. 4, " numerous plans to enforce week of 1920 at 81 per cent. Interior mills, a reduction of acreage have been advanced" however, continue to operate at below 50 per in district No. 5, and farmers in district No. 8 cent of capacity. In district No. 9 (Minneapo- " are agitating to hold last year's crop and plant lis) present operations are at about 43 per cent, none this year." The above are all tobaccos of as compared with 65 per cent a year ago. the so-called manufacturing and export types. Production of mills representing 75 per cent of The quality of Pennsylvania cigar leaf is con- the total output of the district was 2,024,470 siderably lower than last year, and manufac- barrels during the four weeks ending Decemturers are reluctant to use this grade of leaf. ber 25, as compared with 2,460,495 barrels Except for brands for which there is an estab- during the four weeks ending November 27, lished trade, demand has decreased within the and 2,497,507 barrels during the four weeks past 60 days in the industry. The usual dull- ending December 27, 1919. In district No. 12 ness during the first week of January has con- (San Francisco) 78 millers were operating at tinued in district No. 3 (Philadelphia), and 26.7 per cent of capacity during December, as both dealer and buying public display a waiting compared with 34.7 percent during November attitude. and 88.9 per cent during December, 1919, while Until December 20 the movement of grain in the total December, 1920, output wasj : 399,692 district No. 9 (Minneapolis) was heavier than barrels. Mill operations |in district | No. 8 last year, but thereafter a decided slump (St. Louis) are only at about 50 per cent to occurred. Total December receipts of all 60 per cent of capacity. Bakers in Kansas City grams at Minneapolis and Duluth thus were were more active purchasers at the opening 24,078,849 bushels, as compared with 32,- of January than were jobbers. Prices in dis- 227,544 bushels during November and trict No. 8 (St. Louis) have fluctuated con- 21,714,154 bushels during December, 1919. siderably, but with an upward trend, prin- The December receipts at Duluth were over cipally in sympathy with the advance in wheat five times as large as a year ago, although the futures. Country mills are relatively busier Minneapolis receipts showed a decline of almost than the larger city plants in that district, due 10 per cent. Combined December corn receipts at to the fact that the former sell their product both centers were double those for November, locally, and thus do not feel the present lightwhile those of wheat, barley, and rye were ness of foreign buying. about two-thirds as large. "An improved Live stock.—In live-stock regions, the excepdemand for wheat and more liberal supplies tionally mild winter has made possible a large were outstanding features of the opening week amount of grazing, so that little feeding has of the new year" in district No. 10 (Kansas been necessary in many sections, and con- City). Receipts of wheat during the first 15 ditions have been beneficial to the stock. days of January were 20 per cent larger than Throughout district No. 10 (Kansas City), a year ago, and corn receipts were 30 per cent precipitation was very light during December, larger, but receipts of oats decreased 20 per and at the end of the month most of the range cent. During December price declines pre- country was in need of moisture. In New Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

144 FEDEKAL EESERVE BULLETIN. FEBRUARY, 1921. Mexico, also, stock water is becoming scarce in decrease in the demand for beef to be placed some sections, and the drought is beginning to in freezers. In district No. 12 (San Francisco), cause some apprehension on the part of cattle however, prices "were generally maintained at interests. District No. 12 (San Francisco), November levels," and in district No. 8 (St. however, reports that "range, feed, and mois- Louis) "the average shows very little change ture conditions continue favorable in practi- from the preceding month." cally all sections, and live stock is generally Lumber.—Lumber prices as yet show no tenreported as thriving." In California, green dency to advance. Indeed, in district No. 3 feed is abundant except in a few southern (Philadelphia) there has been a general drop counties, but in the intermountain country with the exception of the better grades of white a layer of winter snow over most of the winter pine, which advanced $5 per thousand. In feeding area made necessary a considerable district No. 6 (Atlanta) the average prices amount of feeding of hay. Hay, however, is realized from December sales were probably 15 plentiful, and the price low. The movement per cent less than in November and fully 50 per of live stock to market has been lighter. Re- cent less than for December of last year. Conceipts of cattle at 15 western markets during sumers demand further reductions from retail- December were 984,309 head, as compared ers, who have already received substantial with 1,781,261 head during November and reductions from the manufacturers. The latter 1,641,731 head during December, 1919, the claim that the present prices for lumber at the respective index numbers being 98, 177, and mills will not pay for the cost of production. 163. Receipts of sheep likewise decreased In view of the lack of demand, production of from 1,542,477 head in November to 942,858 lumber continues to decline. A large prohead in December, as compared with 1,588,661 portion of the southern pine mills located in head in December, 1919, the respective index district No. 6 (Atlanta) are running on part numbers being 113, 69, and 116. December time or shut down altogether, and production receipts of hogs, however, were 2,932,052 head, as reported by 125 mills belonging to the corresponding to an index number of 133, an Southern Pine Association showed for the week increase over the November figure of 2,624,185 ending Friday, January 7, an actual production head, corresponding to an index number of 51.5 per cent below normal. Orders were 57 119, but much less than the December, 1919, per cent below normal production. Twentyfigure of 3,708,409 head, corresponding to an four mills belonging to the Southern Pine index number of 169. Similar testimony Association located in district No. 11 (Dallas) comes from the individual Federal Reserve reported actual production 47 per cent below districts. Total receipts of live stock at South normal, while orders are 54 per cent below St. Paul during December were only about normal production. While some part of the one-half of those during November, and less general decline in production is partly due to than three-fourths of those a year ago. The closing for annual repairs, overhauling, and receipts of cattle and sheep in particular were inventories, it is due mainly to the reduction affected, amounting only to about one-fourth in orders caused by the general depression in of the November receipts, and cattle receipts business. In district No. 12 (San Francisco) were less than one-half of the December, 1919, production has receded gradually since May, figures. In district No. 10 (Kansas City), 1920, reaching the low point of the year in receipts of cattle during December were about December, when, according to the figures of 50 per cent of those during November and the four lumber associations, the output was during December, 1919, and receipts of hogs, 34 per cent less than in November. For the while showing a slight increase over the No- first time since July, 1920, the cut of the prinvember figures were about 35 per cent less than cipal producers in the district, the West Coast during December, 1919. Cattle receipts at Lumbermen's Association, was less than ship- Fort Worth were the smallest for any December ments and 61 per cent below normal. The in 13 years. In district No. 10 (Kansas City) San Francisco report says "both the orders the markets from mid-December to mid- received by and the shipments of the four January were irregular, and there was a nar- associations combined touched the low points rowing of the range of cattle prices. Prices of the year during December. The total volof hogs and sheep advanced after the opening ume of new business booked by all reporting of the year. Prices at Fort Worth were at mills was 37 per cent less than that of the prean exceptionally low level during December, ceding four weeks, and the shipments showed in spite of the small receipts. In district No. a decrease of 17 per cent/7 9 (Minneapolis) lower prices prevailed through- Coal.—Production of bituminous coal during out December, due, primarily, it is stated, to December was 52,560,000 tons, as compared the great reduction in demand for foreign with 51,012,000 tons in November and export, while there was also a substantial 36,612,000 tons in December, 1919, the re- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

FEBRUARY, 1921. FEDERAL RESERVE BULLETIN. 145 spective index numbers being 142, 138, and 99. cent during the past 30 days. In consequence, The average production per workday, however, average daily production in Kansas and Oklahas been steadily downward since mid-Decem- homa fell from 386,000 barrels during the week ber, and the present daily rate is lower than in ending December 24 to 347,000 barrels during the corresponding period during any of the the week ending January 14. Production in four previous years, except 1918, when a district No. 11 (Dallas) during December was severe storm caused railroad congestion and 12,833,574 barrels, as against 13,347,352 barthus affected production. Present curtailed rels during November, the heaviest decline production is attributed to lack of orders. The being reported in the Texas coastal fields. In characterization of the present situation in the both districts the decline in production is atsoft coal trade from district No. 3 (Philadel- tributed in part to the inadequacy of pipephia) is typical of the reports received from line and storage facilities. Some of the refiners other districts also. It states that business is and large users of crude oil are increasing 41comparatively dull, owing to smaller domestic their capacity for transportation of oil to mardemand incident to the curtailment of indus- ket centers in district No. 10, while new pipe trial operations, the decline in the export trade lines are being completed in central west Texas. and finally the elimination of speculation Drilling activities m Texas were sharply curwhich was so pronounced about two months tailed, while fewer wells were completed in ago." In consequence, prices have shown a December in Oklahoma and Kansas than in decline. Mining and shipping in district No. 4 November, although Wyoming showed an in- (Cleveland) have been affected, but there has crease. The prices of both crude petroleum been a very large movement. In district No. and various refined products have declined. 10 (Kansas City), however, after the usual Iron and steel.—New business in the iron slowing down during the holidays, operations and steel industry continues light, and, as during the first two weeks of January were a whole, it is stated from district No. 3 little, if any, below those for the first three (Philadelphia) that the industry continues weeks of December. Prices are "a shade in the " lethargic" state which has existed for easier" than one month ago, but up to the several months. This is in spite of " a marked present time no material changes in wages increase in the competition for new business" have been reported. Supplies of coal and coke which has closely accompanied the downward are "ample" in district "No. 8 (St. Louis), and trend in prices. The decline in prices in that surpluses are reported in a number of localities. district, however, is "at a slower rate than at Prices of coal to ultimate consumers have been any time since the recession started." Declines reduced slightly in St. Louis and other large are found both in the raw materials and fincities of the district. Reflecting the industrial ished products, and independent producers are situation, the production of beehive coke has reported to have shaded the general market continued to decline. Prices have been af- level in some lines, such as plates and sheets. fected correspondingly, the lowest point being Many independent companies in district No. 3 reached as a result of the holiday accumu- (Philadelphia) and district No. 4 (Cleveland) lations, and an increase was again shown as have reduced wages 15 per cent to 20 per cent, these were worked off. and a general reduction of 15 per cent will be Anthracite coal production during December put in effect February 1 in the Lake Superior was 8,469,000 tons, as compared with 7,519,000 ore district by those operators who have not tons during November and 8,089,000 tons taken this step already. The United States during December, 1919, the respective index Steel Corporation, however, has made no numbers being 114, 102, and 109. During changes in wages in its ore mines or plants. January, however, there has been continued The situation is reflected in the continued difrecovery from the holiday depression, and the ference in operating position between the weekly output is again approaching the independent companies and the United States 2,000,000-ton mark. A strong consumers7 Steel Corporation. The latter is reported to demand exists, it is stated from district No. 3 be operating at practically full capacity in the (Philadelphia), in spite of the exceptional Pittsburgh district and at over 80 per cent of mildness of the winter. Steam sizes, however, finishing capacity in the Chicago district. On are "draggy." Two large railroad company the other hand, in district No. 4 (Cleveland) producers have raised stove and nut sizes 15 "it is doubtful if the independent capacity is cents per ton. more than 30 to 40 per cent active/' and "at Crude petroleum.—The production of crude mid-January but 12 per cent of the independpetroleum has shown a decrease. In district ent steel capacity in the Mahoning Valley No. 10 (Kansas City) refiners reduced pur- was in commission/7 while in district No. 3 chases of crude oil from 30 per cent to 50 per (Philadelphia) "operations represent only 35 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

146 FEDERAL RESERVE BULLETIN. FEBRUARY,, 1921. per cent of capacity, as compared with 40 per but subsequently declined in sympathy with cent a month ago. Sharp inroads have been the London market. Consumers' demands made on unfilled orders, and those of the have been light. The zinc market has been United States Steel Corporation at the close very restricted, with demand light and prices of December had further decreased to 8,148,122 low. December copper production reported tons from 9,021,481 tons at the close of No- in district No. 9 (Minneapolis) amounted to vember, the respective index numbers being 20,608,819 pounds, as compared with 20,842,- 155 and 171. Only a few concerns in district 897 pounds in November, and 16,516,308 No. 3 "have more than enough orders to pounds in December, 1919, an increase of enable them to continue operations longer about 25 per cent over the last figure, due than two or three months. Several con- largely to the shutdown of one of the leading cerns which produce finished and semifinished Montana producers for a part of the month of products are now operating at full capacity in December, 1919. In district No. 12 (San order to restore depleted stocks. Cancella- Francisco), however, copper production was tions in the district, which were quite preva- substantially curtailed during December, sevlent a month ago, have tended to decrease in eral mines having shut down, while others number. Steel-ingot production during De- reduced their operations to 50 per cent of cember was 2,340,365 tons, corresponding to capacity. The average price of blende ores in an index number of 100, as compared with the Kansas City district was $31.51 during 2,638,670 tons during November, correspond- December, which was the lowest prevailing in ing to an index number of 113. Pig-iron pro- the zinc-ore market for many years. duction also showed a falling off from 2,934,- Cotton.—The Census Bureau reports consump- 908 tons during November to 2,703,855 tons tion of cotton by the mills of the country in the during December, the respective index num- period from August 1 to December 31 to be bers being 127 and 117. The blowing out of 1,967,000 bales, as compared with 2,554,000 merchant blast furnaces has continued in dis- bales for the corresponding period a year ago. trict No. 4 (Cleveland), until the smallest Only 294,800 bales were consumed in Decemnumber of this class in about two years now ber, 1920, as compared with 511,500 bales in is producing. Production of pig iron in Ala- December, 1919, and 332,000 bales during the bama is being held to a minimum. It is re- preceding month. A slight advance in prices ported that blast-furnace companies in their occurred after the opening of the new year, but inventories have marked down their iron ore was followed by declines. The total cotton on hand from 50 cents to $1.50 a ton, but the exports during December were 788,578 bales, ore-selling companies have not as yet announced as compared with 685,323 bales in November ore prices for 1921. The amount of fabri- and 876,852 bales in December, 1919. cated structural steel, for which contracts were There has been some improvement in the made during December, was 47,000 tons, or cotton textile industry of New England during 26 per cent of the country's capacity, as com- the past month, especially in the market for pared with 49,200 tons, or 27£ per cent dur- yarns, for which there has been an increased ing November. While both orders and ship- demand and a resultant increase in prices. ments of the Bridge Builders and Structural The report from district No. 1 (Boston) says: Society, representing 40 per cent of the total "As a whole a very real effort has been made fabricating capacity of the country, increased to place values on such a level that buyers for December over the Novemuer figures, will feel that the stabilization so necessary to work ahead decreased from 134,200 tons, or a attract a normal demand has been attained. little less than 2 months, at the close of No- Quotations upon standard cloths for the secvember to 112,525 tons, or a little over 1£ ond week in January indicate, in fact, that months, at the close of December. price reductions in manufactured goods have Nonferreous metals.—A somewhat better tone outrun the decline in the raw material. Upon to the nonferreous metal markets was reported comparable dates spot middling upland cotton at the opening of the month, and the markets had declined 54 per cent from its quotation of have been helped by the recovery in sterling a year ago, while 28-inch print cloths, 64 by exchange. Lead was most active and strong- 607s, were quoted at 6 cents as against 14| est, the open market level being a little over cents and 38£ inch, 64 by 60's, gray goods at the figure of 4.75 quoted by the leading in- 8f cents in comparison with 23 cents in Januterest, but toward the middle of the month ary, 1920. Reductions averaged over 60 per was again quieter. Foreign demand for cop- cent. In like manner brown sheetings, 4-yard, per was somewhat better than the domestic 56 by 60's, had fallen from 29 to Hi cents, demand. As the cheaper lots were elimi- and reductions of 58 per cent in tickings, 62 per nated prices again became firmer. Tin became cent in denims, and approximately 50 per cent decidedly firmer at the opening of the month in dress ginghams and standard prints indicate Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

FEBRUARY, 1921, FEDERAL RESERVE BULLETIN. 147 the breadth and severity of price readjustments ceive orders from jobbers for immediate demade by manufacturing interests." livery, with the result that prices of par- On the other hand, the situation in district ticular numbers advanced somewhat. Thirty No. 3 (Philadelphia) has remained virtually firms selling to the wholesale trade reported unchanged. The report states that "the production for December (selling price) to market for heavy cottons is exceptionally be 70.3 per cent below December, 1919, but dormant, and as a consequence every plant in 29.4 per cent greater than in the precedthe district making these fabrics is either com- ing month of November. Finished products pletely shut down or operating but two or on hand at the end of the month (selling three days a week at reduced capacity in order price) were also 15.8 per cent less than in to retain its working organization." Cotton- November, although 57.5 per cent greater yarn mills have further curtailed operations, than they were at the end of 1919. Unfilled and it is estimated that hardly 20 per cent of orders at the end of the month (selling price) capacity is being maintained in the district were 88.4 per cent below the totals tor last and even then the output is not being disposed December and 23.3 per cent less than at the of. During the third week in January there end of November. One of the largest hosiery was a slight increase in quoted prices. In manufacturers in the United States, in district North and South Carolina signs of recovery No. 5 (Richmond), states that in the first two were much more in evidence, and some of the weeks of January he secured more orders textile mills have resumed operations on than during the entire three months preceding. approximately full time. In a majority of In the underwear industry, likewise, some the southern mills wage reductions averaging increase in orders for both immediate delivery about 25 per cent have become effective. and for early spring shipment have been re- Wool.—There are some evidences of a ceived. The orders for spring delivery are slight improvement in the market for raw very limited, however, notwithstanding the wool. To be sure, it is estimated that over fact that the stocks held by retailers and job- 70 per cent of the wool clip of district No. 12 bers are small. Eighteen underwear firms (San Francisco) is still in the hands of the located in district No. 3 (Philadelphia) regrowers or held for them on consignment in port production in December (selling price) the eastern markets or at Portland, but the to be 42.6 per cent less than during the prelate December wool movement was reported ceding month and 74.7 per cent less than to be heavier than for many weeks, and it was during the same month a year ago. Finished significant that a disposition to make further products on hand at the end of the month, price concessions was then lacking. A slight although showing a slight decrease of 3.7 per increase in prices of raw wool was noted in cent from the preceding month, were 474.8 the Boston market at the end of December, per cent in excess of stocks held in December, where the Government auction of carpet wools 1919. Orders booked during the month, howbrought prices from 5 per cent to 10 per cent ever, had increased 38.8 per cent as compared above those immediately preceding. On the with November, but were 14.8 per cent below other hand, the English Government auctions the totals for December, 1919. Unfilled orders during the middle of January resulted in the on hand at the end of the month were 58.6 sale of only 25 per cent at open-market rates. per cent greater than in November, but 93.4 There has been an increased importation of per cent less than the amounts outstanding wool tops made in England which at current in December, 1919. exchange rates can be imported into the Carpet and rug mills in district No. 3 (Philacountry and sold in competition with the delphia) have so far experienced no revival of domestic product. There has been no par- demand. A very few mills are operating at ticular change in the goods market and no full capacity for stock; about one-third of new developments to report, as mills are still those reporting have retained their full workrunning much below capacity. District No. 1 ing force on part time; the rest are either (Boston) calls attention to the fact that the completely shut down or else maintaining a total amount of wool consumed by manufac- skeleton working organization but doing practurers in November was only 38.3 per cent of tically nothing. Salesmen sent out in Nothe amount used in January, 1920, the high vember and early December are reported to point of the period of activity. In district have been unable to secure orders. No. 3 (Philadelphia) woolen yarn mills are Silk.—There have been , practically no said to be operating at approximately 50 per changes in the raw silk markets during the cent of capacity, with about half the usual month, the price being stabilized around $6.20 number of employees. per pound as compared with $18 a year ago. About the middle of January hosiery mills Stocks in the warehouses in district No. 2 (New in district No. 3 (Philadelphia) began to re- York) decreased about 8 per cent during De- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

148 FEDEKAL RESERVE BULLETIN. FEBRUARY, 1921. cember, and on January 1 amounted to about the end of December. In the South and West, 44,536 bales. There is reported to be an in- furthermore, the situation has become more crease in the demand for silk piece goods from acute, while in district No. 12 (San Francisco), retailers andfrom dress and waist manufacturers, previously only slightly affected, unemploywith the result that piece-goods manufacturers ment is stated to be abnormally great for this have entered the raw-silk markets to fill imme- season. Wage reductions have likewise condiate needs. A few manufacturers have like- tinued to be announced and have spread to secwise increased the scale of their operations, but tions of the country where wage rates have there has been no resultant increase of activity hitherto been maintained at high levels. In in this field. In Paterson, N. J., silk looms are the New England district probably 100,000 now running at about 14 per cent of capacity operatives in the textile mills have been affected in terms of loom hours, as compared with 7 per by wage reductions, which on the average cent in December. It is said, however, that amount to about 22^ per cent. Although reduc- 10,000 of the 24,000 looms in the city are tions have not been quite so large in the boot entirely idle, while the rest are running at about and shoe industry, they have been extensive, 25 per cent of capacity. Elsewhere in New but so far the wage cuts have not stimulated Jersey reports from factories with about 4,600 employment to any marked degree. At the looms show operations to be at about 34 per end of December the Massachusetts Departcent of capacity. ment of Labor and Industries on the basis of Hides and leather.—The drastic declines in the returns from unions having a membership of prices of hides appear to have been arrested 199,022, reported over 57,000 persons, or 28.9 during the past month and calfskins have even per cent, without work. The returns from the advanced slightly. Shoe factories in district textile unions showed 48.2 per cent of the No. 1 (Boston) have been reopening, with the membership unemployed, while in the boot and result that the leather market has also regis- shoe industries 47.3 per cent of members of tered some price advances. The increase in reporting unions were unemployed. Public production both in December and in January employment offices in the State noted a slight was stated to be " perceptible/' although not increase in the demand for labor in January, large. Manufacturers in the district did not but the Boston office stated that the number of hold large stocks either of leather or of finished applicants was the greatest on record in the shoes. On the other hand, tanners' stocks of first days of January. leather were still large, and tanneries in the In district No. 2 (New York) unemployment district were being operated at only about 30 increased in January, and numbers of workers per cent capacity. In district No. 3 (Phila- employed were about 4 per cent below Decemdelphia) shoe manufacturers have received ber figures. The New York State Industrial more orders for immediate delivery and some Commission estimates that the factories of the for spring shipments, and the result has been State were employing 300,000 fewer wage earna slight increase in operation of plants already ers than last spring. Some textile mills have active, while some which had been closed down reopened and there has been greater activity have again resumed. Many tanneries in the in the men's clothing industry of Rochester, district have also opened, although the perbut, on the other hand, transportation comcentage of capacity being operated is much panies dropped a considerable number of emrestricted, in view of the large amounts of ployees in January; unemployment was likefinished stock on hand. Sales by shoe houses wise widespread among longshoremen, freight located in district No. 8 (St. Louis) in Decemhandlers, dock workers, and seamen, while ber were far below totals of the same month there were further reductions in iron and steel in 1919 and shipments had decreased anywhere plants. A survey made by the United States from 28 to 42 per cent. Since January 1, how- Department of Labor of the industries of New ever, two leading manufacturers reported slight York State most seriously affected showed for a increases. The percentage of plant capacity selected list of firms with 2,258,963 persons on in operation in this district was decidedly abovo their pay rolls January 1, 1920, a reduction to the average for the country at large being 1,611,920 persons employed January 1, 1921, estimated at 50 per cent. a drop of 32 per cent. In district No. 3 (Phila- Unemployment.—There has been no revival delphia) unemployment is prevalent as a result of industrial operations on a scale greatly to of the continuance of shutdowns of plants or reduce the widespread unemployment which curtailment of operation in many lines of inwas prevalent a month ago. It is probable, dustry. In January work was resumed in however, that the slight increase in activity in some of the textile mills of district No. 5 leading New England industries during the (Richmond), but in the building trades and in month has brought a measure of relief, but that the ranks of unskilled laborfthere is|a serious would not be reflected in the latest statistics at lack of employment. In District No. 6 (At- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

FEBRUARY, 1921. FEDEKAL RESERVE BULLETIN, 149 lanta) a large number of blast furnaces and reductions of 10 to 20 per cent have occurred some mines have closed down entirely, while in various parts of the district. others are operating only two to four days a Wh tlesaie trade.—The decrease in wholesale week. Mills and factories are also running trade activity continued throughout December. on a much reduced working basis, and the num- Sales' as measured in terms of values were ber of unemployed has increased decidedly. extremely light, and losses were reported both Idleness is most widespread in the ranks of the as compared with the preceding month and unskilled. In maDy lines wage reductions have with a year ago. Reduced activity was paralready been made or have been announced. ticularly marked in the southern and south- An attempt of building trades employers in western sections of the country. Retailers Atlanta to put a reduced wage scale into effect generally have placed few orders and have has met with union opposition, however, and a shown extreme caution, a policy reflected in projected reduction in wages of the Atlanta, the buying operations of wholesalers. In Birmingham & Atlantic Railroad equal to 50 wholesale grocery lines demand is very reper cent of increases granted employees since stricted, although there has been a halt in the 1917 has likewise been resisted. Conferences severity of price declines, and in some cases are being held between representatives of the minor advances have been noted. The 51 employees and company officials. Unemploy- reporting firms in district No. 3 (Philadelphia) ment has become more pronounced in district had average net sales during the month 13.1 No. 8 (St. Louis) during the past month, being per cent below November sales and 22.3 per especially felt in industries such as iron and cent less than during December, 1919. In steel, automobiles, shoes, furniture, clothing, other districts from which data were secured and lumber. So far wages have remained decreases as compared with December, 1919, fairly steady despite the decline in numbers ranged from 18.8 per cent for district No. 4 employed. A return flow of labor from cities (Cleveland) to 43 per cent for district No. 11 to the farms is especially noticeable in this (Dallas). In district No. 11 (Dallas) the drop district. was also especially pronounced as compared with the preceding month. Changes in whole- A recent survey by the Minneapolis Civic sale dry goods sales varied from totals 19.5 per and Commerce Association, covering 116 manucent below those for December, 1919, in disfacturers employing 26,703 workers a year ago, trict No. 7 (Chicago) to an average decrease of showed a reduction of 22J per cent in numbers 60 per cent in district No. 11 (Dallas), while the employed, decreases being greatest in the averages showed great diversity for the six wood-working and paper industries, which had reporting districts. All districts report a falling about 64 per cent of the number of men emoff in hardware sales as compared with the ployed a year ago. Iron and steel industries preceding month, but district No. 3 (Philahad retained 67 per cent of the working forces delphia) is unique in showing average sales of a year ago and clothing firms, 71 per cent. for* 25 reporting concerns substantially the In food and food products lines, however, the same as a year ago, whereas in the other reduction had only amounted to 9 per cent as districts declines have ranged from approxicompared with Januarj^, 1920. Elsewhere in mately 17 per cent to about 39 per cent. district No. 9 (Minneapolis) unemployment is Reporting shoe firms in districts No. 6 (Atalso increasing. No work is in progress at the lanta), No. 7 (Chicago), and No. 12 (San Duluth shipyards, and it is stated that reports Francisco) record declines in the neighborfrom a selected list of mining operators indihood of 40 per cent, or, to be more specific, cates that in Montana the number of men varying from 37.7 to 47.9 per cent. But employed was only 70 per cent of those emdistrict No. 5 (Richmond) reports a reduction ployed in December, 1919, while in Michigan of 78.8 per cent in sales as compared with the corresponding figure was 66 per cent. December, 1919. Among the lumber manufacturers reporting directly to the Federal Reserve Bank of Retail trade.—The general situation in retail Minneapolis the numbers were 66 per cent of trade has been characterized by considerable the totals of a year ago. In California, buying, but this has been of a careful and disapparently, employment conditions are not criminating nature. Thus it is stated from unfavorable, but elsewhere in district No. 12 district No. 8 (St. Louis) that " the public is as (San Francisco) numbers out of work are discriminating as heretofore, but is purchasing abnormally large. In Portland 11,000 were where prices seem to square with its idea of unemployed as compared with a normal figure cheapness.7' As would be expected in view of 5,000, in Spokane 2,500 (normal 1,500), and of the holiday season, December sales in general in Nevada 3,000 were unemployed in the have increased over those for November, mines as compared with a year ago. Wage although not to the same extent in all sections. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

150 FEDERAL RESERVE BULLETIN. FEBRUARY, 1921. In district No. 7 (Chicago) the December decrease was shown in practically every city volume of sales "seems to have held its own in district No. 5 (Richmond) when compared with that of last year," although many stores with the same month a year ago, the value attribute this to "a heavy mark down in being only about 40 per cent. In district prices." Retail trade in December "took an No. 6 (Atlanta) large decreases were noted in upward turn of substantial proportions" in the leading cities, while some increases were district No. 11 (Dallas), having increased noted in some of the smaller cities. It is 26.3 per cent, while in district No. 12 (San reported from district No. 8 (St. Louis) that Francisco) an increase of 54.1 per cent was "a heavy slump in number of building pershown. In both these districts, however, a mits and dollar values involved is shown in decrease from last year is shown, amounting reports of leading cities of the district for to 2.9 per cent in district No. 11 (Dallas) and December. Virtually nothing in the way of 4.3 per cent in district No. 12 (San Francisco), new construction is being undertaken at the but in district No. 7 (Chicago) there was an moment." In district No. 9 (Minneapolis) increase of 10.6 per cent. December sales of December building operations, when measured Boston stores increased 1.4 per cent over a by number of permits, decreased one-third year ago, but sales of outside stores decreased from the November figures, but the valuation 6.4 per cent. Many of the latter are located increased 21 per cent, due entirely to Duluth in "one industry" cities, and they promptly and Superior operations, which cities alone feel the effect of business depression in that showed an increase in valuation. Minnesota industry. Retail trade since Christmas on the alone showed an increase in the number of whole has been better in Boston than it was a permits issued. District No. 10 (Kansas City) year ago, although country stores generally states that " the showing made by the Decemreport a slight falling off in sales. In general ber reports on building was somewhat better throughout the country, however, merchants than anticipated." There was a decrease m have not restored depleted stocks. In prac- every leading city of district No. 11 (Dallas*, tically all districts stocks at the close of Decem- with the exception of Shreveport, La., as ber were considerably less than at the close of compared w^h the previous month. When November. The decrease in district No. 1 compared with the closing month of 1919 there (Boston) amounted to 18.3 per cent, in district was a decrease of 66.8 per cent for the nine No. 5 (Richmond) to 25.9 per cent, in district leading cities, Austin and Beaumont being No. 11 (Dallas) 28.8 per cent, and in district the only cities showing increases. District No. 12 (San Francisco) 14.3 per cent. No ten- No. 12 (San Francisco) reports that "building dency exists to place new orders for future deliv- activity in this district during December, 1920, ery. Further recessions of outstanding orders was 5.8 per Cent greater than that of Novemamounts to 2.5 per cent in district No. 5 ber. Each of the principal centers except (Richmond), 2.7 per cent in district No. 11 Los Angeles, where a decline of 39.3 per cent (Dallas), and 5.8 per cent in district No. 12 in the value of permits occurred, reported an (San Francisco). increase in value but a decrease in the number Building.—For the first time in some months of permits issued," an increase in the value of permits issued is Prices.—The Board's index number of wholeshown in some districts in December. The sale prices showed a furtner decline of 10 pernumber of permits issued, however with the cent during December. In early January, cerexception of scattered centers, has continued tain staples—notably grains, cotton, and other the decrease characteristic of preceding months. agricultural products—rose in price, but later The building contracts awarded in New York in the month declined again. At the same State and northern New Jersey, district No. 2 time other leading commodities, such as crude (New York), according to the reports of the and refined oils and bituminous coal, which had F. W. Dodge Co., were 616 projects at a cost not been greatly affected in earlier months, were of $17,000,000 for December, while in Novem- increasingly weak, while iron and steel prodber there were 694 projects at a cost of ucts and many less important commodities $29,500,000. In district No. 3 (Philadelphia) continued to decline. the decrease was largest, as there was a drop One of the striking features of the early pefrom $2,303,445 to $1,443,715. In district riod of the present price movement was the No. 4 (Cleveland) the number of permits difference in the degree to which individual issued decreased, but there was a very large commodities were affected. Textiles and leathincrease in value, amounting to $8,976,700 in ers were practically without a market at the December as against $5,901,026 in November. same time that steel products, gasoline, kero- The value of permits issued in Cleveland in- sene, etc., were in heavy demand. By Janucreased from $2,402,100 in November to ary, however, this situation had changed and $6,391,994 in December, During December a practically all industries—the unimportant as Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

FEBRUARY, 1921. FEDERAL RESEEVE BULLETIN. 151 well as the important—had begun to make a somewhat unexpected but nevertheless gratiprice revisions. In some cases, notably iron fying improvement in the values of nearly all and steel, copper, coke, and live stock, the re- foreign currency, sterling especially making a ductions in the course of the last three or four notable gain and reaching a level higher than months have been very heavy, while in others, any attained since July, 1920. such as anthracite coal, comparatively slight changes thus far have been made. In the wool and silk markets something more nearly ap- CONDITION OF WHOLESALE TRADE. proaching stabilization of values existed in January than in earlier months. Although there Percentage of increase (or decrease) in net sales in December, was thus established a more satisfactory trad- 1920, as compared vjitJi the preceding month. ing basis in these raw materials markets, the Boots and same was not the case as regards finished piece Groceries. Dry goods. Hardware. shoes. Furniture. goods. In these lines trading continued on a very limited scale. t D ri i c s t - . Per N b u e m r - Per N b u e m r - Per N b u e m r - Per ! N u b m er - Per N b u e m r - The Board's index number for December cent. fir o m f s. cent. fir o m f s. cent. fir o m f s. cent, fi o rm f s. cent. fir o m f s. shows wholesale prices nt that time 71 per cent above prewar, although 35 per cent below the No.3.. -13.1 51 -1.7 25 peak of last spring. A compilation of the Bu- No.5..-9.0 10-32.9 9-25.4 9-60.4 9-51.9 5 reau of Labor statistics shows an average reduc- N No o . . 6 1 . 0 . . — -1 5 3 .1 4 1 3 1—35 3 11- - 1 2 5 0 . . 0 8 9 3 28.4 9 -32.5 4 tion in the cost of living for the whole country of No. 11.-21.0 3-66.0! 2 about 7 per cent between June and December No. 12.-17.8 29-46.7 13-11.2 22-19.2; 15-16.7 18 of last year. This estimate is based upon a study of prices in 32 leading cities, the greatest Drugs. Stationery. im F pl a e r m m ents Auto tires. decline in any city amounting to 10 per cent, the least to 2£ per cent. Nevertheless, the District. Per N b u e m r - Per N b u e m r - Per N b u e m r - Per N b u e m r - December level of the cost of living in the cent. of cent. of cent. of cent. of firms. firms- firms. firms. country as a whole is still approximately twice as high as before the war. No. 10. —6.1 4 Financial.—Financially, the developments No. 11. —8 0! 4 I i 2 No. 12. -5.6 9+28.9 15 71.8 15 during the month have been encouraging. The improvement in the Federal Reserve ratio which brought the percentage up to about 49 Percentage of increase (or decrease) in net sales in December, 1920, as compared with December, 1919. at the close of January was due to steady liquidation of loans by member banks and to reduc- Groceries. Dry goods. Hardware. Shoes. Furniture. tion of discount accommodations at the Fedm er a al n d R f e o s r e c rv re e d it B r a e n s k u s lt . e d S i l n a c a k m en a i t n e g r ia i l n r e t d h u e c t d io e n - t D ri i c s t - . Per N b u e m r - Per i N b u e m r - Per N b u e m r - Per N b u e m r - Per N b u e m r in the total outstanding volume of Federal cent. fir o m f s. cent.i j fi o r f ms. cent. fir o m f s. cent. fir o m f s. cent. fir o m f s. Reserve note circulation, amounting in the month to about $254,000,000, while gold hold- No.3.. —22 3 51 i + 0.9 25 ings increased by about $47,000,000 net. No.4.. -18.8 13—20.01 4-16.9 6 i No.5.. -16.0 10-54.2 9—23.5 -78.8 9-60.2 5 In private finance the month has been a No.6.. —24 3 11-39.4 11-30.8 -47.9 9 period of improvement of value in most classes No. 7.. -2Q. 4 21-19.5! 10 : -37.7 5...... No. 10.—17 3 3 i, —38.9 3 —55.9 4 of securities. Various minor issues of foreign No. 11. -43.0 3-60.0j 2 No. 12. -19.6 29—27.8j 13—17.9 22-40.0 15-37.5 18 public bonds have been floated with success, and a number of relatively important private Drugs. Stationery. Farm Auto tires. issues have been sold to the public, although implements all of these sales have taken place at rates Eistrict Num- Num- Num- Numwhich indicate a continuation of high levels of Per ber Per ber Per ber Per ber interest. Although during the month the call cent, i f ir o m f s. cent. firm of s. cent. fir o m f s. cent. fir o m f s. money rate was for a short time as low as 6 per cent in the New York market, it promptly No.4 —17.0 4 reacted to 7 per cent, while time funds have No. 10 -8.2 4 No. 11 —9.0 4 -71.0| 2 been relatively scarce. The shrinkage in busi- No. 12 + 2.9! 9+13.0 15 -5.8 IS ness has been accompanied by a comparative 1 decline in the activity of the use of bank PRODUCTION OF KNIT GOODS. deposits. Demand for the best class of bankers7 acceptances has continued good, and while Owing to unforeseen delay it is necessary to export trade and paper growing out of it have defer publication of the January statistics of knit been in an uncertain condition, there has been goods until the March issue of the BULLETIN. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

152 FEDERAL RESERVE BULLETIN. FEBRUARY, 1921. FINISHED COTTON FABRICS. grey yardage of finishing orders received Reports received from 34 of the 58 members amounted to 32,882,000 yards in December, as belonging to the National Association of Fin- compared with 28,971,000 yards in November. ishers of Cotton Fabrics show a total number The total average work ahead at the end of the of finished yards billed during the month at month increased somewhat, and the average 39,594,000, as compared with 40,734,000 the for all districts was 4.2 days, as compared with preceding month. The total average percent- 3.9 days in the month of November. District age of capacity operated was 29 per cent during No. 1, however, reported only 2.9 days of work, the month of December, as compared with 25 as compared with 2.5 days for the preceding per cent during the preceding month. Total month. Production and shipmentsof finished cotton fabrics. November, 1920. December, 1920. W go h od it s e . g D o y o e d d s. P g r o in od te s d . Total. W go 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 5,326,612 6,915,463 4,104,044 17,560,068 5,322,818 7,660,855 4,587,901 18,926,886 2 4,906,934 1,002,986 2,885,407 11,248,069 4,244,452 541,777 2,007,457 9,136,678 3 3,623,192 2,662,713 6,632,263 3,672,383 3,430,103 7,526,931 5 . 3,461,194 24,028 3,485,222 2,571,262 46,526 2,617,788 6 28,041 344,978 373,019 39,430 292,833 332,263 8 1 335,530 1,054,102 Total 17,345,973 | 10,950,168 6,989,451 40,734,171 15,850,345 11,972,094 6,595,358 39,594,648 Total finishing charges billed during month: District 1 $114,998 $316,082 $236,209 $765,071 $128,208 $332,788 $269,634 $817,994 2 $109,032 $34,561 $165,609 $375,723 $93,131 $25,847 $127,937 $316,943 3 $135,680 $104; 079 $248,429 $159,356 $137,670 $308,401 5 $70,177 $158 $70,335 $50,757 $321 $51,078 6 $611 S14.648 $15,259 $820 $12,408 $13,228 8 $24,099 $13,438 Total . . $430,498 $469,528 $401,818 *1.498.916 $432,272 $509,034 $397,571 $1,521,082 Total average per cent of capacity operated: District 1. 25 19 20 21 29 26 20 24 2 31 11 34 21 46 10 22 26 3 56 24 38 64 29 44 5 47 47 50 50 6 17 27 s 51 42 I Average for all districts 35 19 22 25 41 24 21 29 Total gray yardage of finishing orders received: District 1 4,156,235 4,459,175 2,635,166 12,202,334 5,402,154 7,685,972 3,128,696 16,970,812 2 2,470,071 493,028 424,040 4,351,709 3,687,653 657,929 525,622 7,325,043 4,307,447 2,533,755 7,170,320 1,930,016 1,941,375 4,245,522 5 '."."."".'. 2,566,009 44,182 2,610,191 3,209,979 44,120 3,254,099 6 39,461 314,807 354,268 19,806 221,733 241,539 2,282,315 845,163 Total 13,539,223 7,844,947 3,059,206 28,971,137 14,249,608 10,551,129 3,654,318 32,882,178 Number of cases of finished goods shipped to customers (case equals approximately 3,000 yards): District 1 ... 1,977 2,007 1,150 9,133 2,412 2,060 1,365 10,740 2 2,287 25 3,930 3,313 254 5,222 3 .... 1,548 1,019 2,790 2,163 1,705 4,009 5 1,487 2,237 679 1,474 e.:::::::::.:.::::::::: :.:.: s 73 368 Total 7,299 3,051 1,150 18,163 8,567 4,019 1,365 21,813 Number of cases of finished goods held in storage at end of month: District 1 4,771 4,675 3,911 23,971 4,838 4,378 3,662 23,360 2 4,030 19 9,926 4,102 32 10,402 3 367 372 5.790 383 338 5,831 5 990 2; 614 1,483 3,028 6 8 1 415 1,579 Total 10,158 5,066 3,911 43,716 10,806 4,748 3,662 44,200 Total average work ahead at end of month ("expressed in days): District 1 3.0 1.5 2.5 2.3 4.1 2.2 2.6 2.9 o 13.2 .8 4.4 4.8 9.6 1.0 2.5 4.3 3 7.4 5.2 6.0 8.2 4.5 5.8 5 11.8 11.8 13.0 13.0 6 2.8 2.7 8 7.6 5.3 Average for all districts 7.0 2.2 2.8 3.9 7.2 2.5 2.6 4.2 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

FEBRUARY, 1921. FEDERAL RESERVE BUKLETHsT. 153 EARNINGS AND EXPENSES OF THE FED- cent for the Dallas bank, as may be seen from ERAL RESERVE BANKS FOR 1920. the following exhibit: Total earnings of the Federal Reserve Banks Ratio of current for the calendar year 1920 were $181,297,338, net earnings to- Average y $ t c h o 2 e e a m 9 r , p 8 p r 8 a 1 e 9 r 9 c e , 1 e 3 d 9 d 0 , i 7 w n , w g it h c h y i o l e e m $ a 1 r p t . 0 o a 2 r t , e a 3 C d l 8 u 0 c r w , u r 5 e r 8 i r n t 3 e h t n f e t o $ x r 2 e p 0 x e t , p n 3 h e s 4 e e n 1 s s , c 7 e a f s 9 o l 8 e r w n t d e f h o r a e e r r ( d s A p i c a o n a v a n l i e p l t d d a h r i s - a r t o i a s g o n u l ) e f . - ( d A s b r i a o e n a v n s l l e l t a e d a h r n r s a r v o c s g e o u ) e e . f - c ( s o b i r c a n e m a a n a s l p t n a d e b h i n r d i s t o v n a c u o e e l e d - f A p c a a v ( i p p e d r e i - a t r i a g n l e A b p r c e a a v a a s l i e p a n e d r i n r d - a t v i c a g n e e l e dollars). cent). combined year under review include besides $23,130,901 (per cent). of expenses of operation proper, $3,951,692, the cost, including shipping charges and other Boston 7,454 117,856 125,310 137.3 8.2 expenses incident to the issue and retirement New York 24,618 722,977 747,595 217.4 7.2 Philadelphia 8,278 104,486 112,764 116. b 8.6 of Federal Reserve notes and bank notes, Cleveland 10,070 141,992 152,062 119.0 7.9 Richmond 4,884 59,087 63,971 110.3 8.4 $1,055,336 taxes on Federal Reserve Bank Atlanta 3,759 51,779 55,538 162.0 11.0 Chicago 13,213 260,336 273,549 195.6 9.4 note circulation, $1,599,656 the cost of furni- St. Louis 4,229 65,914 70,143 124.3 7.5 Minneapolis 3,265 48,554 51,819 131.5 8.3 ture and equipment acquired during the year, Kansas City 4,295 83,319 87,614 129.3 6.3 Dallas 3,757 56,432 60,189 89.3 5.6 and $151,722 miscellaneous expenses on ac- San Francisco... 6,412 117,867 124,279 159.1 8.2 count of bank premises. Total 94,234 1,830,599 1,924,833 160.7 7.9 Total current expenses above shown are exclusive of expenses of the fiscal agency Additions to current net earnings, $873,382, department of the Federal Reserve Banks. include an item of $523,277, representing the These expenses are treated separately, being amounts deducted at the close of 1919 and on reimbursable by the Treasury. In 1920 they June 30, 1920, from current net earnings to detotaled $6,215,356, as against $16,626,016 for fray expenses of the Federal Reserve Board, the preceding year. There was also due to and $350,105, representing special reserves the Federal Reserve Banks from the Treasury previously deducted from current earnings on January 1, 1920, a total of $3,587,167 ex- and various miscellaneous items, such as pended by the banks prior to that date. difference accounts and amounts carried di- Reimbursements actually received from the rectly to profit and loss during the past year. Government during the year totaled $8,863,214, Deductions from current net earning totaled leaving thus a reimbursable balance at the end $2,986,639 and comprise the following items: of the year of $939,309. Depreciation charges of $1,914,484 on bank Current net earnings of the banks, i. e., the premises, additional reserves against depreciaexcess of earnings over current expenses, tion of United States bonds, $278,626, reserves totaled $151,408,031, compared with $82,038,- to cover contingencies and future depreciation, 785 for 1919. Calculated on an average paid- and sundry losses, $793,529, making the total in capital for the year of $94,234,000, the net net deductions from current net earnings earnings for 1920 constitute 160.7 per cent, $2,113,257. This leaves net earnings available compared with 98.2 per cent on the average for dividends, surplus, and franchise taxes paid-in capital in 1919. If net earnings are of $149,294,774. related to the average of paid-in capital and Dividends at the rate of 6 per cent paid reserve balances combined, i. e., to the total by the Federal Reserve Banks during the year amount contributed by the member banks, or amounted to $5,654,018. Under amended $1,924,833,000, the rate of current net earn- section 7 of the Federal Reserve Act, all net ings works out at 7.9 per cent for the system earnings of the Federal Reserve Banks after as a whole, a high rate of about 11 per cent for deduction of 6 per cent cumulative dividends the Federal Reserve Banks being shown for must be paid into a surplus fund, until this Atlanta, a yearly rate of 7.2 per cent for the fund shall have reached 100 per cent of the New York bank, and a low rate of 5.6 per total subscribed capital, and thereafter 10 per Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

154 FEDERAL RESERVE BULLETIN. FEBRUARY,, 1921. cent of such net earnings is to be carried to earnings is made up of net earnings on transsurplus (so-called super-surplus), while the fers, profits from silver shipments, sales of remainder is to go as a franchise tax to the foreign coin, collection charges, and sundry Government. In accordance with this pro- minor profits. vision, the Federal Reserve Banks carried Of the total expenses of operations of the $76,168,287 to normal surplus and in addition banks proper, exclusive of their fiscal agency nine banks whose normal surplus accounts had departments, $12,229,403, or 53 per cent, as reached 100 per cent of the banks' subscribed against 46 per cent in 1919, went as compencapital carried $6,747,727 to super-surplus sation to the clerical staff, while $1,872,963, account. At the opening of 1921 the total or 8 per cent, as against 9 per cent in 1919, surplus of the Federal Reserve Banks, after represents amount of salaries paid to bank the setting aside of $1,000,000 by the New York officers. Compensation of special officers, bank as a general reserve, stands at watchmen, and extra help, overtime pay, and $202,036,367, or 101.2 per cent of the banks7 supper money account for $1,281,169, or 5.5 total subscribed capital. For the several per cent of total expenses of operation, as Reserve Banks, the ratios of total surplus against 9 per cent the year before; printing to subscribed capital show the following and stationery account for $1,432,856, or 6.2 percentages: per cent, as against 5.5 per cent in 1919; postage Per cent. Per cent. and expressage for $1,028,030, or 4.4 per cent Boston 101.8 St. Louis 95.6 (about 6 per cent in 1919). Assessments of the New York 107.0 Minneapolis 100. 8 banks for the support of the Federal Reserve Philadelphia 100.2 Kansas City 102. 8 Board totaled $709,525, or over 3 per cent of Cleveland 94.9 Dallas 73. 6 Richmond 100.2 San Francisco 102. 5 the bank's operating expenses, compared with Atlanta 102.9 about 4 per cent in 1919. Rent paid by the Chicago 104.2 System 101.2 banks during the past year aggregated $785,600, Of the total earnings of the banks about compared with $613,988 in 1919, all the banks 82.2 per cent, as against 78.9 per cent in 1919, reporting substantial increases of this item for came from discounts. Bills purchased in open the year under review. market contributed 12.1 per cent of the total Monthly earnings were highest for October, yearly earnings, compared with 13.7 in 1919. when the largest average holdings of discounted United States securities, largely Treasury cer- paper are shown, and lowest during January, tificates, yielded 3.9 per cent, as against 5.6 which saw the adoption of the higher discount per cent the year before; penalties and interest rates. Higher operating expenses for March, on deficient reserves produced (net) about 0.9 June, September, and December are due per cent of the total earnings, compared with largely to quarterly bonuses paid to the clerical 0.7 per cent in 1919; while the balance of the staff. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Earnings and expenses of each Federal Reserve Bank during 1920. EARNINGS. Boston. : New York. d P el h p i h la i - a. Cleveland. I m R o ic n h d - . Atlanta, i Chicago. St. Louis. M ap i o n l n is e . - K C a i n ty sa . s Dallas. Fran S c an isco. Total. k Discounted bills S10,031,301 i$49,839,183 $10,420,161$10,570,827 !$5,920,893 $6,688,342 i$25,726,750 $6,382,357 $4,734,259 $6,441,476 ,044,612 $8,259,664 $149,059,825 Purchased bills 1,613,012 ] 8,323,050 574,074 3,064,409 477,557 337,991 ! 2,989,035 273,425 191,862 211,975 73,212 3,890,556 22,020,158 United States securities j 554,172 | 1,975,649 742,235 602,939 I 276,991 320,451 i 995,377 391,611 181,990 505,539 270,874 322,787 7,140,615 Transfers, net earnings i 99,391 ' i 374,000 77,245 11,750 350,969 87,707 987,562 Deficient reserve penalties (includ- ' inginterest) | 41,783 i 141,664 69,150 102,804 216,559 102,846 ! 174,470 104,164 92,744 238,425 158,569 130,157 1.573,335 Sundryprofits j 32,985 j 245,775 42,931 18,249 11,270 26,801 I 43,586 28,560 29,281 14,322 6,286 15,797 515,843 Total earnings j 12,273,253 ! 60,525,321 |11,848,551 14,458,619 ! 6,903,270 7,476,431 j 30,303,218 7,180,117 5,307,381 7,409,987 4,904,522 12,706,668 181,297,338 Debit. CURRENT EXPENSES. Expenses of operation: Assessments, account expenses of Federal Reserve Board $52,584 $221,868 $56,804 $63,246 $34,555 $27,882 $101,568 $26,618 $22,520 $34,221 $21,695 $45,964 $709.525 Federal Advisory Council (fees and traveling expenses) 408 1,200 378 1,047 546 1,092 1,046 1,200 330 400 1,417 9,957 Governors' conferences (including traveling expenses) 315 270 272 ! 237 401 j 504 474 277 452 626 651 1,272 5,751 Federal Reserve Agents' conferences (including traveling expenses) { 400 680 64 | 100 125 175 559 282 27 121 j 64 1,683 4,280 Salaries— j Bank officers | 116,600 383,760 123,338 I 143,171 105,945 ! 156,996 216,541 126,916 77,637 116,274 i 117,768 188,017 1,872,963 Clerical staff j 781,904 3,479,270 799,385 | 872,339 617,525 ! 433,196 1,672,550 747,312 363,724 794,286 I 649,100 1,018,812 12,229,403 Special officers and watch- I men ! 20,988 166,449 70,921 ! 35,149 15,066 I 15,631 94,494 22,984 10,766 25,275 20,177 33,150 531,050 Another | 7,207 199,213 80,412 j 112,492 34,749 | 24,502 123,324 30,693 23,686 35,694 39,456 38,691 750,119 Life insurance premiums (em- j i ployees' group insurance) | 480 19,296 7,391 6,267 4,008 2,576 7,712 6,984 3,661 8,043 j 6,395 9,789 82,602 Directors' fees, per diem allow- | ance, and traveling expenses..! 9,529 32,175 6,569 6,702 6,318 17,427 9,591 11,849 6,705 19,532 6,530 11,099 144,026 Officers' and clerks' traveling | expenses 9,046 23,151 9.885 15,046 26,248 15,495 39,667 25,525 ! 15,227 28,085 30,851 32,193 270,419 Legal fees 3,723 9,324 2,530 2,000 1,070 8,068 7,500 1,505 i 3,100 2,543 2,622 4,545 48,530 Rent 63,844 301,797 18,020 78,717 10,139 19,433 145,751 48,746 21,760 41,326 14,904 21,163 785,600 Taxes and fire insurance 1,180 3,328 20,063 3,183 9,699 10,774 4,535 3,220 1,186 4,217 3,476 8,222 73,083 Telephone 12,292 32,934 15,492 8,503 3,415 3,589 19,283 6.629 2,832 5,627 3,938 10,415 124,949 Telegraph 10,314 49,045 10,565 27,153 27,604 50,746 63,875 44,800 13,780 37,310 56,900 70,615 462,707 Postage 66,915 114,779 56,721 76,212 63,415 57,541 117,389 80,219 69,406 115,506 | 65,507 67,341 950,951 951 3,956 437 1,521 ] 948 1,466 8,381 1,319 11,938 2,144 I 36,365 7,653 77,079 Insurance and premiums on fidelity bonds 23,007 26,283 37,213 31,710 j 11,724 13,744 37,898 20,123 18,592 21,164 24,672 26,408 292,538 Light, heat, and power 14,443 3,077 22,651 5,376 | 7,460 6,095 18,199 7,139 5,720 6,896 9,246 106,302 Printing and stationery 63,667 270,383 113,644 120,652 ! 84,345 80,240 219,420 76,743 94,787 67,998 178,489 1,432,856 Repairs and alterations 288 55,623 26,988 38 149 i 12,395 9,340 136,292 38,159 18,147 13,797 70,296 441,997 Currency shipments to and from member and nonmember banks and between Federal Reserve Banks and their branches 93,127 111,522 j 81,370 48,710 ; 28,432 42,609 87,623 27,143 32,447 30,863 37,921 633,159 Currency shipments(other than Federal Reserve and Federal Reserve bank notes) to and from Washington or subtreasnries 1 26,898 87,956 ! 20,982 27,418 I 14,674 13,478 27,144 30,540 24,979 12,123 17,190 312,802 Another 65,609 184,865 ; 38,072 34,010 100,685 32,390 45,712 78,080 81,963 778,253 Total expenses of operation... 1,445,719 5,782,204 | 1,620,167 1,792,991 1,144,494 1,046,609 j 3,261,501 1,419,315 799,003 1,514,116 1,311,228 1,993,554 23,130,901 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Earnings and expenses of each Federal Reserve Bank during 1920—Continued. Oi Boston. New York. d P el h p i h la i - a. Cleveland. m Ri o c n h d - . Atlanta. Chicago. St. Louis. M ap i o n l n is e . - K C a i n ty sa . s Dallas. Fra S n a c n isco. Total. Federal Reserve currency (original cost, including shipping charges).. 345,151 648,392 292,540 334,679 170,101 126.009 550,291 238,051 62,627 97,477 86,514 219,398 3,171,230 Miscellaneous charges account note issues 112,162 159,767 77,508 63,519 45,749 72,808 102,672 32,988 15,959 33,905 22,825 40,600 780,462 Taxes on Federal Reserve bank note circulation 82,000 207,401 110,904 93,322 52,605 63,958 174,252 58,000 36,792 83,422 ! 46,397 46,283 1,055,336 F B u an rn k i t p u r r e e m a i n se d s equipment 2 28 4 , , 6 5 7 8 3 5 . 201,491 75,065 1 4 4 5 1 , , 1 0 6 0 6 8 103,126 76,057 28 7 9 5, , 4 0 6 6 0 4 176,102 100,817 12 2 6 , , 3 7 3 0 3 7 ! j 82,883 202,751 1,5 1 9 5 9 1 , , 6 7 5 2 6 2 Total current expenses. 2,038,290 6,999,255 2,176,274 2,470,685 1,516,075 1,385,441 4,453,240 1,924,456 1,015,198 1,857,960 | 1,549,847 | 2,502,586 29,889,307 Current net earnings 10,234,963 53,526,066 9,672,277 I 11,987,934 | 5,387,195 6,090,990 25,849,978 I 5,255,661 4,292,183 5,552,027 3,354,675 10,204,082 151,408,0,1 7 7 7 7 \ 7 1 7 7 > 7 \ ) } Profit and loss account of each Federal Reserve Bank for 1920. Boston. New York. Ph p i h la i d a. el- Cleveland. m R o ic n h d - . Atlanta. Chicago. St. Louis. M ap i o n l n is e . - K C a i n ty sa . s Dallas. Sa c n i s F co ra . n- Total. Earnings - $12,273,253 S60,525,321 11,848,551 $14,458,619 $6,903,270 $7,476,431 $30,303,218 $7,180,117 $5,307,381 $7,409,987 $4,904,522 $12,706,668 $181,297,338 Current exDenses 2,038,290 6,999,255 2,176, 274 2,470,685 1,516,075 1,385,441 4,453,240 1,924,456 1,015,198 1,857,960 1,549,847 2,502,586 29,889,307 Current net earnings 10,234,963 53,526,066 9,672, 277 11,987,934 5,387,195 6,090,990 25,849,978 6,255,661 4,292,183 5,552,027 3, 354,675 10,204,082 151,408,031 Additions to current net earnings on account of— Amounts previously deducted fromcurrent netearnings for— Assessment account expenses of Federal Reserve Board 38,666 168,682 41,828 63,246 25,531 20,302 66 764 1Q K90 16,607 16 167 A.H Qf\A 523,277 Special reserves 200,000 1 200,000 All other 29,248 6,050 164,3*66 522 5,859 17 2,543 1,040 43 417 150,105 Total additions 67,914 374,732 146,194 63, 768 31,390 20, 319 69,307 19,520 16,607 1,040 16, 210 46,381 873,382 Deductions from current net earnings on account of— Bank premises 285,677 646,620 129, 551 170,000 87,267 29,062 365,000 77,737 123,570 1,914,484 Assessment, account expenses of Federal Reserve Board 53,900 12,658 66,558 Reserve for depreciation— United States bonds 28,162 25,299 105,396 48,220 5,865 9,506 9,984 34,615 11,579 278,626 Special reserves 37 456,165 100 000 130 963 687,165 All other 2,114 5,527 1,339 4,214 4,212 4 490 807 11,691 5,412 39,806 Total deductions 30,313 772,668 753,355 231,671 180,079 100,985 43,536 399,615 177,737 12,386 142,654 141,640 2,986,639 Net deductions from current net earnings i 37,601 397,936 607,161 167,903 148,689 80,666 125,771 380,095 161,130 11,346 126,444 95,259 2,113,257 Net earnings available for dividends, surplus and franchise tax Dec. 31, 1920. .. . 10,272,564 53,128,130 9,065,116 11, 820,031 5,238, 506 6,010,324 25,875, 749 4,875,566 4,131,053 5,540,681 3,228,231 10,108, 823 149,294,774 Dividends paid 4477266" 1,477,096 496,679 604,194 293,052 225,571 792,769 253,711 195,871 257,672 225,424 384,713 5,654,018 Transferred to surplus fund 7,351, 799 212,332,523 8,204,775 11,215, 837 4, 740, 869 3,648,465 14,688,500 4,621,855 3,410,948 3,042,781 3,002, 807 6,654,855 82,916,014 Franchise tax paid United States G nvPTn m fin t 2,473,499 39,318,511 363,662 204,585 2,136,288 10,394,480 524,234 2,240,228 3,069,255 60,724,742 i Net additions. «Includes $1,000,000 deducted from super-surplus account and credited to general reserve account after closing of books Dec. 31,1920. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Fiscal agency department expenses of each Federal Reserve Bank, amounts reimbursed by the Treasury Department, and balances reimbursable at the end of 1920. Boston. New York. Ph p i h la i d a. el- Cleveland. m R o ic n h d - . Atlanta. Chicago. St. i^ouis. M ap i o n l n is e . - K C a i n ty sa . s Dallas. Sa c n i s F co ra . n- Total. Total expenses during 1920 $447,243 $1,516,455 $374,163 $465,662 $345,541 $233,985 $1,005,377 $318,396 $251,719 $472,737 $239,029 $545,049 $6,215,356 Amounts reimbursable Jan. 1,1920. 185,777 977,835 117,817 330,386 252,823 121,787 532,481 106,457 129,285 407,176 213,594 211,749 3,587,167 Total.. 633,020 2,494,290 491,980 796,048 598,364 355,772 1,537,858 424,853 381,004 879,913 452,623 756,798 9,802,523 Reimbursements received during 1920. 546,031 2,269,643 454,125 714,028 574,476 315, 852 1,453,615 354,436 326,697 767,880 428,965 657,466 8,863,214 Balance reimbursable Jan. 1, 1921 86,989 224,647 37,855 82,020 23,888 39,920 84,243 70,417 54,307 112,033 23; 658 99,332 939,309 Earnings and operating expenses of each Federal Reserve Bank, by months, during 1920. EARNINGS. I Boston. New York. Ph p i h la i d a. el- Cleveland. Atlanta. Chicago. St. Louis. M ap i o n l n is e . - K C a i n ty sa . s Dallas. Fra S nc a i n sco. Total. January $783,325 $3,999,906 $894,031 $912,535 $493,729 $463,201 $1,607,501 $465,699 $339,915 $515,580 $314,948 $879,796 $11,670,166 February.. 885,683 4,266,985 932,022 1,003,626 503,739 496,878 1,804,334 495,848 320,334 489,680 296,338 883,027 12,378,494 March , 963,600 4,791,127 1,031,375 1,151,285 576,205 582,599 2,251,441 352,255 569,608 349,842 928,564 14,134,762 April 907,418 4,433,053 1,007,745 1,126,698 535,380 553,332 2,381,120 572,925 387,158 595,980 378,544 1,042,771 13,922,124 May 922,195 4,858,822 1,060,427 1,151,006 555,193 629,890 2,480,203 608,925 421,323 639,643 401,237 1,112,401 14,841,265 June 1,026,665 4,986,885 1,010,555 1,084,439 555,272 608,773 2,527,330 555,500 433,187 616,775 438,140 14,831,541 July 1,053,302 5,395,165 995,902 1,190,454 594,708 631,650 2,801,369 631,356 495,252 669,000 446,614 1,049,521 15,954,292 August 1,073,137 5,487,127 969,708 1,261,308 604,395 657,682 2,764,758 632,905 503,594 617,789 424,148 1,114,482 16,111,031 September. 1,165,941 5,229,777 981,135 1,405,485 597,947 | 612,371 2,809,951 592,184 508,294 627,260 438,242 1,181,400 16,149,987 October 1,206,112 5,777,295 1,022,430 1,504,844 621,413 704,135 3,015,037 635,673 534,967 694,725 488,193 1,201,564 17,406,388 November. 1,134,228 5,567,154 989,069 1,363,652 625,924 I 771,583 2,851,031 713,188 495,351 675,344 479,819 1,125,294 16,791,637 d December.. 1,151,647 5,732,025 954,152 1,303,287 639,365 j 764,337 3,009,143 689,053 515,751 698,605 448,457 1,199,828 17,105,651 Total 12,273,253 60,525,321 11,848,551 14,458,619 6,903,270 7,476,431 30,303,218 7,180,117 5,307,381 7,409,987 4,904,522 12,706,668 181,297,338 OPERATING EXPENSES. I January $106,801 $413,039 $106,501 $98,847 $60,351 $66,506 I $219,718 $85,122 $43,399 $89,031 $90,803 $109,751 $1,489,869 February.. 99,261 394,795 121,034 112,047 62,044 74,799 I 218,823 92,181 49; 328 97,146 95,600 105,036 1,522,094 March , 114,340 598,167 128,326 156,118 81,269 85,249 298,814 100,384 49,517 123,081 99,424 147,211 1,981,900 April 106,454 425,657 110,721 113,957 74,760 72,695 237,872 95,210 51,369 107,071 96,000 130,800 1,622,566 May 105,118 423,353 132,258 137,002 70,814 73,518 I 247,694 101,694 49,943 107,788 91,415 131,172 1,671,769 June 151,925 604,099 192,735 169,423 139,915 131,179 332,928 109,126 91,144 116,277 139,746 248,225 2,426,722 July 133,110 415,407 119,154 132,589 86,306 71,946 238,549 111,641 61,081 104,008 99,303 143,041 1,716,135 August 96,389 410,180 119,339 144,779 88,367 80,592 257,560 120,040 61,079 149,054 100,820 150,320 1,778,519 September. 107,314 576,943 121,754 187,362 87,311 77,291 323,674 123,299 70,292 110,739 128,004 169,206 2,083,189 October 101,680 432,819 123,130 150,454 92,682 75,189 236,336 134,070 67,085 118,977 106,832 162,340 1,801,594 November.. 115,277 449,025 133,440 162,747 105,378 91,737 266,618 119,750 74,820 129,128 119,656 181,972 1,949,548 December.. 208,050 638,720 211, 775 227,666 195,297 145,908 382,915 226,798 129,946 261,816 143,625 314,480 3,086,996 Total 1,445,719 5,782,204 1,620,167 1,792,991 1,144,494 1,046,609 3,261,501 1,419,315 799,003 1,514,116 1,311,228 1,993,554 23,130,901 C7I Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

158 FEDERAL RESERVE BULLETIN. FEBRUARY, 1921. I COMMERCIAL LETTERS OF CREDIT.1 to rescind its engagement to honor drafts drawn by the beneficiary. If the credit-issuing Due to the general fall in prices of com- bank reserves the right to withdraw from modities, the question of the rights and liabili- the undertaking, the document is styled a ties of the various parties to commercial letters "revocable" letter of credit. The "irrevocaof credit has become a matter of vital interest. ble" letter of credit contains a definite engage- The following article contains preliminary re- ment on the part of the issuing bank to honor sults of a study undertaken to ascertain present drafts drawn by the beneficiary in accordance conditions in the financing of foreign trade. with the terms and conditions specified in the letter. This engagement may not be canceled (A) INTRODUCTION. by the issuing bank piior to the expiration date In the financing of an importation there are without the consent of the beneficiary. The several possible combinations of parties at in- " irrevocable " letter of credit may be strengthterest. Although a shipment is made direct by ened further by having the notifying bank in the exporter in a foreign country to the im- the same country as the exporter add its porter m the United States, the seller does not unqualified assurance that it will pay or accept usually rely upon the unsupported credit of the the bills drawn by him even if the foreign bank buyer abroad and generally requires a bank should refuse to nonor them. It is then called guaranty. The importer, therefore, calls upon a "confirmed" export letter of credit. Exhis bank to lend its credit to the transaction, pressing, therefore, both the definite underand thus the exporter is given the right to draw taking of the issuer and also of the notifier, upon a banking institution instead of a com- it is actually an " irrevocable-confirmed " letter mercial house. But even this added responsi- of credit. Where the notifying bank does not bility does not always satisfy the exporter, who add its guaranty, the credit is described as may prefer funds in his own country, and, in "unconfirmed," since the advising bank mainthis event, the American bank requests a cor- tains that it is merely transmitting the informarespondent foreign bank to notify the exporter tion of the credit to the beneficiary without that it will negotiate his drafts. He may, there- incurring liability for its continuance. Thus fore, sell his bills of exchange either to the noti- three classes of letters of credit may exist: fier or to his own local bank. Hence, a letter of (1) Irrevocable by the issuer and confirmed by credit may involve such different parties as the the adviser; (2) irrevocable by the issuer but importer, credit issuer, notifier, negotiator, any unconfirmed by the adviser; (3) revocable by indorser of the completed drafts, and lastly the the issuer and also unconfirmed by the adviser.2 exporter. This classification is a departure from the usual precept that the terms "confirmed" and "irrev- The legal relations between these parties are ocable" are synonymous as applied to comexpressed in a number of documents, but in mercial credits. However, while writings on this discussion only the import and export letthis subject accept the twofold grouping of ters of credit need be considered. The import confirmed or irrevocable as against unconfirmed letter of credit is the authorization addressed or revocable credits, actual banking practice to the beneficiary in one country by the creditoperates on the classification given above. issuing bank in another under which the former is given the right to draw drafts up to a specified sum and within a definite time, and the latter undertakes to honor the drafts when pre- (B) ANALYSIS OF BRITISH AUTHORITIES ON RIGHTS AND LIABILITIES ARISING OUT OF sented. The export letter of credit is the advice COMMERCIAL LETTERS OF CREDIT. from a bank to the beneficiary that a credit has been opened in his favor by a foreign bank and that the notifying bank agrees to honor American legal literature abounds with refdrafts drawn by the beneficiary. erences to letters of credit. The decisions of Letters of credit may be classified also accord- Marshall and Story, opinions of New York ing to their terms and conditions. If a bank justices, and the writings of eminent comagrees to honor drafts drawn by the exporter mentators all evidence the long use of the only when accompanied by satisfactory bills of letter of credit. The definition and classificaladmg, consular and commercial invoices, the tion generally accepted by these authorities is statement is called a documentary letter of summarized in a recent decision which reads credit. It is termed a clean or "open" credit as follows: "A letter requesting one person if such stipulations are not mentioned. A broaa basis of classification of letters of 2 For definitions and classifications of letters of credit see (British) Journal of the Institute of Bankers, vol. 35, p. 74, vol. 41, p. 55 (Feb., credit rests on the right of the issuing bank 1920), Thomson, Dictionary of Banking, p. 356; Trading with the Far East (Irving National Bank), p. 81; Handbook of Finance and Trade with South America (National City Bank)/ p. 7; Escher: Margraff, * Prepared under the direction of George W. Edwards, Division ofSpalding, "Foreign Exchange and Foreign Bills," ch. 15; Whitaker, Analysis and Research. " Foreign Exchange," p. 131 et seq. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

FEBRUARY, 1921. FEDERAL RESERVE BULLETIN. 159 to make advances to a third person on the Court of Law, New South Wales, in Standard credit of the writer is a letter of credit. These Bank of Canada v. Wildey.) letters are general or special. They are gen- Continental law views a letter of credit as a eral if directed to the writer's correspondents document which evidences the existence "of generally. They are special, as in the case at money had and reserved and held for the use bar, if they are addressed to some particular of the addressee." (See Hershey's exposition person."3 in the Harvard Law Review, November, 1918, One recognizes in this description the familiar p. 5.) This theory that the letter of credit is travelers' or tourists' letter of credit, and in a definite acknowledgment by the issuing bank the classification the usual circular and special that it holds in a trust fund a fixed sum of forms. These documents play no part in the money for the use of the beneficiary is frefinancing of foreign trade to-day and bear little quently maintained by exporters. The issue resemblance to the "commercial" letters of is clearly met in the case of Morgan v. Lacredit, which are "letters giving credit but not riviere (1875), Law Reports, vol. 7, House of requesting any third party to give credit." Lords, 423. During the war^ of 1870 Junius (Union Bank of Canada v. Cole (1877), 47 Law Spencer Morgan & Co., acting as financial Journal, Queen's Bench, 100.) It is therefore agents of the French Government in London, doubtful whether the mass of legal opinion based addressed to contractors of munitions a letter on a different instrument of trade is of weight in of credit which read as follows: deciding the perplexing issues surrounding the We are instructed to advise you that a special credit of modern commercial letter of credit. 40,000 pounds, equivalent to 1,000,000 francs, has been While American authorities have made but opened with us in your favor, and that it will be paid to little reference to the commercial letters of you rateably, as the goods are delivered, upon receipt of certificates of acceptance issued by the French ambassador. credit, British writings on the subject are more voluminous. The Journal of the Institute of This letter, it was claimed, was "a declara- Bankers, Thomson's Dictionary of Banking, tion that they (Morgan & Co.) had control over and banking texts all contain numerous refer- a fund of a certain specified amount approences. Most valuable, however, are the court priated for a specified purpose/7 and the court decisions which have been rendered within the was asked to administer it as a trust fund. The last half century, when Great Britain was court, however, held a contrary view, and extending her trade all over the world. In the denied that a letter of credit in any way condearth of American opinions on commercial stituted an equitable assignment of funds or a letters of credit, it seems desirable to review the trust in favor of the beneficiary. leading British and colonial cases which have This case also throws light upon the relations established the usage of foreign financing. between the issuer of a credit and the bene- These decisions will be cited so far as they ficiary. The credit was granted in December, elucidate the nature of the letter of credit and 1870, when the French forces were being hard the relations between such parties as issuer and pressed by the Prussians. Quick delivery of beneficiary, beneficiary and negotiator, negoti- the munitions was therefore necessary. Herein ator and issuer, and, finally, issuer and importer. the contractors failed, and in consequence they In the case of Orr & Barber v. Union Bank of were informed by Morgan & Co. that "as the Scotland (1854), 24 Law Times, Old Series, 1 time has already expired within which the a letter of credit is not regarded as a negotiable deliveries of the goods were to be made, and to instrument but this view is qualified else- pay for which this credit was opened, no furwhere, for the letter assumes the nature of a ther deliveries can be made under it, and we bill of exchange in section 32 of the stamp act are not to make any further payment in virtue of 1891, which requires that it be stamped. of it." This right of cancellation by the issuer (See also Waterston v. Edinburgh and Glasgow was upheld by the court on the ground that Bank (1858), 20 Dun. (Ct. of Sess., 642, Scot.). the beneficiary had failed to comply with the As the terms of the letter of credit are usually conditions specified in the credit. executed within the territories of two or more If, however, the addressee performs such countries, and as the parties involved are conditions, the grantor may not cancel an generally of different nationalities, doubt may irrevocable letter of credit. In the Bank of arise as to the jurisdiction in the event of liti- Toronto v. Ansell, 1875 (7 R. L. Q. B.), 262, gation. It has been held that a letter of credit the issuing bank claimed that it could withdraw must be construed according to the laws of the the credit, since no consideration had been place where it is issued. (Sovereign Bank v. received from the beneficiary. This plea was, Bellhouse (1911), Quebec Reports, 23, King's however, rejected by the court. Another Bench, 413.) (See also the recent decision of Canadian case resulted in the following ruling: * * * A person who induces a bank to give to him a a American Steel Co. t>. Irving National Bank (1920), 266 Fed., 41. letter of credit may by his subsequent conduct give the Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

160 FEDERAL RESERVE BULLETIN. FEBRUAEY, 1921. bank cause for canceling it, but not if the customer secured tended by the decision in Maitland v. Charthe letter of credit from the bank in favor of another person. tered Mercantile Bank of India, London, In that event the customer can not oblige the bank to and China (1869) (38 Law Journal, 363). The cancel it, for the contract is between the bank and some other person, not between the bank and its customer. A National Bank of Scotland had opened a credit bank can not cancel a letter of credit if it has been trans- on the guaranty of Maitland & Co., importers, ferred to a third party.4 (Cited in American Steel Co. v. in favor of Fletcher & Co., exporters. As it Irving National Bank, ibid.) was a clean letter of credit, no mention was The same principle had been established in made of any documents or other conditions an old Scottish case, Graham v. Mahony (Irish which had been specified in the sales contract Law Reports (1st series), 385), which was between the sellers and buyers. In direct viodecided against the bank on the ground that it lation of this contract the exporters drew had impaired the credit standing of the drafts and sold them to the Chartered Mercanbeneficiary by revoking the letter of credit. tile Bank, which then forwarded the bills to Between the beneficiary and the bank which Glyn & Co., the London accepting agency of negotiates or buys his drafts a consideration the Bank of Scotland. Thereupon Maitland of the relations between negotiator and issuer & Co. sought to restrain Glyn & Co. from acrests upon whether the letter of credit is clean cepting the drafts on the ground that they or documentary. In Agra & Masterman's were not drawn in compliance with the terms Bank, ex parte Asiatic Banking Corporation of the sales contract. The court, however, (1867) (36 Law Journal, Chancery, 222), the held that the negotiating bank was ill no posifollowing clean, irrevocable import letter was tion to have knowledge of any special agreeissued: ments between importer and exporter, since such conditions were not stated in the clean let- You are hereby authorized to draw upon this bank (Agra & Masterman's Bank) at six months' sight to the ter of credit, and therefore the drafts could not extent of £15,000. Such drafts I undertake duly to honor be dishonored. (See also Oriental Banking on presentation. This credit will remain in force for 12 Corporation v. Lippert & Co. (1875), Buchanmonths from this date, and parties negotiating bills under an's Reports, South Africa, p. 152.) Ip. this it are requested to indorse particulars on the back hereof. decision bankers may find support for their The beneficiary accordingly drew drafts and contention that they are bound only by the sold them to the Asiatic Banking Corporation, terms of the letter of credit and not by the conwho thereupon noted the particulars on the tracts made between the buyers and sellers of back of the letter of credit. Meantime the goods. (See Frey & Son v. Sherburne Co. and Agra & Masterman's Bank was taken over by National City Bank, 184 N. Y. Supp., 661. receivers, who refused to pay the drafts because Also, American Steel Co. v. Irving National of counter claims against the original drawers. Bank, 266 Fed., 41, which holds that a letter The court analyzed the above letter thus: of credit is " a complete and independent con- The first part of the letter is the authority which is given tract/7) to Dickson, Tatham & Co. (the drawers). The second part If, however, the letter of credit contains any of the letter is evidently, in substance, addressed to the persons who were to negotiate the bills. It is plain that of these conditions, they must be observed the letter was given by the bank with a view to its being carefully by banks which negotiate drafts of shown to persons who were to negotiate the bills and to exporters. The letter usually states that make the advances upon the faith of that letter; * * * drafts must be drawn only against goods bought that part of the letter was, in truth, addressed, though not in form, still in substance, to the persons by whom those or shipped by the exporter, and generally on bills were to be negotiated. presentation of such documents as bills of lad- The decision therefore held that— ing, marine insurance policy, commercial invoice, consular invoice, or certificates attesting * * * upon the offer in this letter being accepted and to the weight and quality of the merchandise. acted upon by the Asiatic Banking Corporation, there was constituted a valid and binding contract against the Agra The British & American Exchange Banking & Masterman's Bank in favor of the Asiatic Banking Corporation issued a letter of credit which Corporation.5 authorized the drawing of drafts against coffee The rights of the Asiatic Banking Corpora- to be shipped from Rio de Janeiro to New York, tion as negotiators were in no way affected by Philadelphia, or Baltimore. The actual shipthe claims of the Agra Bank against Tatham & ping documents, however, showed that the Co., drawers. coffee was shipped from Rio in a vessel " bound This obligation of an issuer to honor drafts to St. Thomas for orders for either New York, drawn under a clean letter of credit is ex- Philadelphia, or Baltimore/' Although the letter stated that the bills of lading (except one * Sovereign Bank v. Bellhouse. ibid. to be forwarded to the exchange bank in New & This case is discussed at length by Sykes in the Journal of the Institute of Bankers (vol. 35, p. 134). Also cited in Frey v. E, R. Sher- York and one retained by the captain of the burne Co. and the National City Bank of New York (Supreme Court vessel) were to be forwarded direct to the Appellate Division, Nov., 1920), 184 N. Y. Supp. 661). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

FEBRUARY, 1921. FEDERAL RESERVE BULLETIN. 161 London office of the banking corporation, cases have been brought against banks for which had granted the credit, only one bill of negotiating bills drawn against forged bills of lading was sent, and thus the credit-issuing lading, but the courts have uniformly held that bank did not have full possession of the mer- the banker was responsible not for the genuinechandise. Since the destination of the shipment ness of the bills of lading but merely for their was not as specified and as the bills of lading formal regularity. (Woods v. Thiedemann I. were incomplete in number, the court held that Hurlstone & Coltman, 478; Ulster Bank v. the conditions of the letter were unperformed. Synnott Irish Reports 5, Equity 595.) This As the bank negotiating the drafts had not view was reaffirmed in the case of the Guaranty insisted upon compliance with the terms re- Trust Co. of New York v. Hannay, one of the quired, it possessed no cause of action against hardest fought legal contests in recent years the credit-issuing bank. (Brazilian & Portu- (87 Law Journal, King's Bench, 1223). The guese Bank (Ltd.) v. British & American Ex- negotiating banker is also free from responsichange Banking Corporation, 18 Law Times, bility for the genuineness of any other docup. 823.) In Union Bank of Canada v. Cole ments besides the bill of lading. In shipping (47 Law Journal, Queen's Bench, p. 100) evi- raw materials it is frequently the custom to dence showed that the bank had held the letter insist upon a sworn statement from some disof credit as collateral for advances made to the interested party who attests that the cargo has beneficiary, and consequently possessed full been sampled and has met the standards prenotice of the conditions required by the issuer; scribed in the letter of credit. A British banktherefore it had no right to negotiate the drafts ing house had issued a credit authorizing the when they w^ere drawn in violation of these drawing of drafts against a shipment of cobalt stipulations. ore which was to contain not less than 5 per The same principle was applied in the case cent protoxide as evidenced in a certificate of of Chartered Bank of India, Australia & China analysis. The exporter, however, gave the v. Macfayden & Co. (64 Law Journal, Queen's negotiating bank a statement which was satis- Bench, p. 367). The defendant issued a letter factory on its face but really untrue, as the of credit which authorized the drawing of drafts cobalt was not of the specified quality. In "against produce bought and paid for" by the consequence the drafts were rejected by the exporter. Without actually purchasing the issuers of the credit. The court, however, commodities, he drew the drafts and sold them maintained that " the certificate on its face was to the Chartered Bank of India, Australia & regular and came within the meaning of the China. The bank then forwarded the drafts to mandate, and there was no duty on the bank Macfayden & Co., which dishonored them. to see to the sampling. The bank was entitled This rejection was sustained by the court, to assume that the analyst had acted skillfully which expressed the following opinion: in making the analysis.77 (Basse & Selve v. Bank of Australia (1904), 90 Law Times, 618.) This was not an open (clean") letter of credit intended to While the negotiator is thus responsible to be shown to all the world, and if the banks are shown and act upon the letter, then they must act upon it, as the the issuer for observing the conditions of the letter itself stated, in conformity with its terms and condi- credit, a similar obligation rests upon the issuer tions. There if* no contract whatever and no contractual in his dealings with the importer. As derelationship established between the bank and the defendscribed above, the relation between these two ant by this particular letter of credit. parties is expressed in an application addressed Although in this case an additional obligaby the importer of the merchandise to the giver tion was placed upon the negotiating banker, of the credit. In Borthwick v. Bank of New his responsibility was lessened in another direc- Zealand (1900) (17 Times Law Reports, 2) this tion. As the drafts had been drawn by the contract read as follows: exporter without the goods being actually bought, Macfayden & Co. sought to hold the I request that you will authorize your office at Dunedin to negotiate the drafts of the New Zealand Cooperative & negotiating bank responsible for the omission. Agency Co. (Ltd.) on me at 60 days' sight to the extent of This the court disallowed by stating that "the 10,000 pounds at any time within two months from this mere presentation of the bills by the plaintiffs date, and in consideration of you doing so, I hereby under- (the negotiating bankers) to the defendants take to accept such drafts on presentation and to pay them (the credit issuers) for acceptance did not in London at or before maturity. * * * The drafts are to be accompanied by shipping documents (i. e., bills amount to a warranty or representation by the of lading, invoice, and insurance policy) purporting to plaintiffs that produce had been bought and represent lamb * * * but you are not to be responpaid for." sible in the event of any misrepresentation as to quantity, quality, or value thereof. Not only is the banker who purchases the drafts thus absolved from anjr liability as to The New Zealand Co. shipped the goods and character of goods, but also he is free from any sold the drafts with documents to the local guaranty for validity of documents. Several branch of the Bank of New Zealand. The Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

162 FEDEKAL, BESERVE BULLETIN. FEBRUARY, 1921. goods received injury on board ship, but the RECENT AMERICAN CASES ON COMMERCIAL importer was unable to secure damages from LETTERS OF CREDIT. the insurance company as such losses were not covered by the policy. Borthwick then Three recent American cases, one decided by brought suit against the bank on the contention the United States Circuit Court of Appeals, that it was bound to receive an "all risks" Second Circuit, and two decided by New York insurance policy when it negotiated the drafts courts, have gone far toward establishing as a of the exporters. The court in giving judg- part of the law of this country the principles ment against the bank held that the contract laid down in the foregoing British decisions as described above— to the respective rights and liabilities of parties to commercial letters of credit. stated the terms on which the defendants (the bankers) were to negotiate and the plaintiff (the importer) was to The case of American Steel Co. v. Irving accept the drafts. When drafts were brought to the bank National Bank, 266 Fed., 41 (C. C. A., 2d Cirthe first consideration would be whether the drafts were cuit, Apr., 1920), holds that the beneficiary of such as the plaintiff would accept, and therefore the repan irrevocable letter of credit has an absolute resentative of the bank ought to have examined the documents attached to see if they were such as were stipu- right to have the drafts honored by the issuing lated for by the plaintiff. bank when drawn in accordance with the terms of the letter, and that the issuing bank can not The letter of credit stated expressly that in decline to honor drafts so drawn, even though certain circumstances the defendants were not requested to do so by its customer, because to be liable. That was a clear indication that the contract of sale between that customer they were to have some sort of responsibility and the beneficiary has become impossible and in the opinion of the court their responsiof performance. In that case the defendbility extended to everything not expressly ant national bank had issued an irrevocaexcepted. ble letter of credit to the plaintiff steel com- Such controversies over the observance of pany authorizing the plaintiff to draw at conditions can arise only from a documentary sight upon the national bank for account of the letter, for in the case of a clean credit the issuer defendant MacDonnell Chow Corporation for enters into an unqualified agreement to accept $43,000 covering the shipment of tin plate. bills, and if he refuses to meet them at maturity The plaintiff steel company had contracted to he is liable for damages on breach of contract sell the tin plate to the defendant MacDonnell to the party requesting the credit. (Prehn v. Chow Corporation f. o. b. Pittsburgh for export. Royal Bank of Liverpool (1870) Law Reports, The plaintiff shipped the tin plate and presented 5 Court of Exchequer, 92.) a sight draft to the defendant national bank From this review of British decisions on the with certain documents and the defendant commercial letter of credit the following national bank declined to honor the draft. principles may be deduced: The second defense alleged that by reason of 1. A letter of credit is not a negotiable the Federal prohibition against the export instrument. from the United States of tin plate the per- 2. It does not create a trust fund in favor formance of the contract between the plaintiff of the beneficiary. and the defendant MacDonnell Chow Cor- 3. An issuer oi a letter of credit may not disporation became impossible of execution. The honor drafts presented by a negotiating bank third defense alleged a resale by the plaintiff of under a clean irrevocable letter of credit if all the tin plate and claimed an offset of the the terms of the credit are fulfilled. amount realized on the resale. As to the second 4. An issuer may dishonor bills drawn in defense, Circuit Judge Rogers said: violation of the conditions specified in a documentary letter of credit. The second defense, that the contract became impossible 5. The negotiator is not liable for the genu- of execution, inasmuch as the MacDonnell Corporation was unable to obtain a license from the United States Governineness either of goods cr documents. ment permitting the export of the tin plate, is wholly in- 6. The issuer is responsible to the party consequential. The liability of the bank on the letter of requesting the credit for the observance of the credit as agreed upon between plaintiff and defendant was conditions by the beneficiary. absolute from the time it was issued, and it was quite immaterial whether the defendant could export the tin or not. 7. The contract between the issuer and the The law is that a bank issuing a letter of credit like the one beneficiary is entirely independent of the con- here involved can not justify its refusal to honor its oblitract of sale between the buyer and seller, and gations by reason of the contract relations existing between the issuer can not, because of the seller's the bank and its depositor. breach of the contract of sale, refuse to honor The opinion then cites with approval the drafts which comply with the terms of the case of Sovereign Bank of Canada v. Bellhouse, letter of credit. Dillon & Co. (Ltd.) (supra) upon the point Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

FEBBUABY,1921. FEDERAL RESERVE BULLETIN. 163 that the customer at whose instance a bank has have been or may be so drawn. In the opinion, issued an irrevocable letter of credit can not Mr. Justice Greenbaum says: compel the bank to cancel that letter, since the "From our view of the case it is not important to discuss letter constitutes a contract between the issuing the rights of the plaintiff under the contract with the bank and the beneficiary. The opinion con- defendant Sherburne Company. * * * cludes : "It is equally clear that the bank issuing the letter of credit is in no way concerned with any contract existing The defendant in effect seeks to read into the contract between the buyer and seller. The bank is only held a provision that the plaintiff's rights under the letter of liable in case of a violation of any of the terms of the letter of credit should be subject to the superior right of the Mac- credit. It therefore would follow that, if the bank issued Donnell Chow Corporation to modify the contract which any drafts violative of the terms of the letter, the buyer the bank had made with the plaintiff. We do not so would have recourse to the bank in an action for damages understand the law. for the breach of its contract. Similarly, if the defendant Sherburne Company violated its contract with the plain- The case of Frey & Son (Inc.) v. Sherburne tiff the latter has a remedy in an action at law for damages Co. and the National City Bank, 184 New York, aga K inst the defendant. It is not alleged in the complaint Supp. 661 (Appellate Division, N. Y. Supreme that the National City Bank is in financial difficulties. Court), expressly holds that the contract be- Nor is it alleged that the Sherburne Company is not financially able to respond to damages. Our attention tween the issuing bank and the beneficiary, as has been called to Higgins v. Steinhardter (106 Misc. Rep. evidenced by the letter of credit, is entirely 168; 175 N. Y. Supp. 279). We are of the opinion that independent of the contract of sale between the facts appearing in the opinion of that case did not the buyer at whose instance the letter of credit warrant the granting of an injunction. Interests of inwas issued and the seller who is the beneficiary nocent parties who may hold drafts upon the letter of credit should not be made to suffer by reason of rights under the letter of credit, and that the issuing that may exist between the parties to the contract of sale bank can not repudiate its contract with the in reference to which the letter of credit was issued. It beneficiary merely because of a breach of the would be a calamity to the business world engaged in contract of sale. The facts in that case were transactions of the kind mentioned in this complaint, if for every breach of a contract between buyer and seller a that the plaintiff had agreed to buy from the party may come into a court of equity and enjoin paydefendant Sherburne Co. 350 tons of sugar ment on drafts drawn upon a letter of credit issued by a to be shipped from Java; payment for the bank. The parties should be remitted to their claims for sugar to be made in New York on presenta- damages in an action at law." tion of warehouse receipt or delivery order and To the same effect is the case of El Reno the plaintiff to furnish an irrevocable letter of Grocery Co., etc. v. Lamborn, et al, reported credit for the full amount of the invoice. The in the New York Law Journal for December contract also provided that the plaintiff, the 15, 1920, in which Mr. Justice Cohalan of the buyer, should have the right to cancel the con- Supreme Court of New York said: tract in the event that the shipment was de- "There are before the court 24 motions for injunctions layed. At the instance of the plaintiff the de- pendente lite in equity cases brought for the cancellation fendant national bank issued a letter of credit of certain contracts for the sale of sugar which the plaintiffs have attempted to rescind. The decision on this to the Sherburne Co. authorizing that company application is decisive of the 23 other motions. To enjoin to draw sight drafts upon the bank accompa- the defendants from collecting upon a letter of credit nied by specified documents covering the ship- established in their favor, because the plaintiff alleges ments of sugar. The letter of credit also con- there is a dispute, default or breach by the defendants of the contract is for the court to make a new, different and tained a provision whereby the bank agreed distinct agreement between the parties herein. This the with bona fide holders that all drafts issued in court is not prepared to do. In my opinion the plaintiffs accordance with the letter would be honored have an adequate remedy at law and there are no subupon presentation. The letter did not, how- stantial reasons shown for invoking the extraordinary remedy of an injunction order. The plaintiff's motion is ever, refer to the plaintiff's right to cancel the denied and the injunction vacated." contract of sale if shipment was delayed. The plaintiff alleged that the shipment of (C) PRACTICE OF AMERICAN BANKS IN FI- 45 tons of the sugar had been delayed and NANCING FOREIGN TRADE UNDER LETTERS that he had elected to cancel his contract for OF CREDIT. the purchase of so much of the sugar and that The purpose of this study has been to aid notwithstanding this the defendant Sherburne the development of uniform instruments and Co. threatens to negotiate or present for standardized practice in financing foreign payment drafts drawn under the letter of trade. Considerable interest has been manicredit and that the defendant national bank fested ip. the subject by leading American banks threatens to pay such drafts if so presented or during recent months. The Division of Analynegotiated. The relief sought by the plaintiff sis and Research addressed to them a request was an injunction restraining Sherburne Co. for their forms and questionnaire concerning from drawing or negotiating drafts under the their practice. In the city of New York this letter of credit and enjoining defendant national material was gathered mainly by direct perbank from honoring or paying drafts which sonal interview, while throughout the remain- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

164 FEDERAL RESERVE BULLETIN. FEBRUARY, 1921. der of the country the information was secured by the Federal Reserve agents. The answers give expression to the combined thought of the large American banks on some of the current problems in the technique of foreign credits. These responses were contributed by 72 banks, of which 32 are located in the city of New York. As a number of banks outside of New York have entered only recently into the field of financing foreign trade, they were unable to answer certain questions especially relating to export credits, and this, in part, accounts for the fact that complete returns from all reporting banks could not always be tabulated. The replies were usually in the form of k 'yes " or k 'no/' but in many instances detailed comments were added. There is presented below each question in succession, accompanied in general by a numerical tabulation of the answers, quotations selected from the responses, and an analysis of the general practice as indicated by the replies. Questions 11, 18, 19, and 27 have been omitted in order to permit fuller treatment in a subsequent article on export letters of credit. I. GENERAL PHASES OF LETTERS OF CREDIT. 1. Question: (a) To what extent are your import credits: Irrevocable per cent (give general estimate); revocable per cent? (6) To what extent are your export credits: Confirmed per cent; unconfirmed per cent? (c) To what extent are your acceptance credits: Confirmed per cent; unconfirmed per cent? Answer: Number of banks showing specified percentages of import credits as irrevocable and revocable, and of export and acceptance credits as confirmed and unconfirmed: (a) Import (6) Export credits. credits. Per cent. Irrevo- Revo- Con- Unconcable. cable. firmed. firmed. 100 . 42 0 11 2 99 3 0 0 2 98.. 1 0 0 0 95 3 1 2 2 90. 7 0 3 1 85 0 0 0 0 80 1 1 3 4 75 2 0 2 4 70 0 o 0 1 65 0 0 0 60 0 1 1 55 0 o 0 50 1 1 11 45 0 0 0 40 1 o 2 35. o 0 0 30 0 0 1 25 o 2 4 20 . I 1 4 15 0 0 10 0 7 1 5 ... 1 3 2 2 0 1 0 1. 0 3 2 0 0 42 2 Total 63 63 51 oot o (c) Acceptance credits. Confirmed. 25 0 1 0 2 0 0 2 9, 11 0 1 0 0 2 3 § 2 0 0 11 51 OOt D The above table indicates that most import credits are irrevocable. Many banks adopt a policy of opening no revocable import credits, for cancellations, even though justified, will impair the credit standing of the issuers. This is especially true in a period of uncertain commodity prices and fluctuating foreign exchanges. While no generalization may be drawn regarding export credits it may be noted that they tend to be confirmed. Acceptance or time credits are ordinarily confirmed. The considerable number of banks not reporting export and acceptance credits is accounted for by the fact that inland banks have occasion to advise or confirm very few credits issued abroad to cover exports from this country. 2. Question: Do you count as your contingent liability: Irrevocable import credits opened by your bank? Revocable import credits opened by your bank? Confirmed export credits opened at the request of another bank? Unconfirmed export credits opened at the request of another bank? Answer: Irrevocable import credits, yes, 63; no, 3. Revocable import credits, yes, 32; no, 21. Confirmed export credits, yes, 51; no, 10. Unconfirmed export credits, yes, 17; no, 34. (a) " We do count as contingent liability, as a matter of fact, as deferred liability, irrevocable and confirmed credits opened by us and confirmed at the request of other banks." (6) "Revocable import credits are contingent liability until canceled." (c) "Revocable import credits are subject to cancellation at any time prior to actual negotiation of drafts drawn thereunder and, therefore, are not counted as a liability either contingent or direct." (d) "Unconfirmed export credits opened at the request of another bank are not a liability on our part, and are, therefore, not considered as a contingent liability." Uncon- These returns clarify several phases of firmed. bank accounting on which present practice 7 varies. Irrevocable import as well as con- 0 firmed export credits are generally regarded by o 0 banks as a full contingent liability. The 1 0 majority also consider revocable import credits 0 as a contingent liability until they have been 0 o canceled. Those who hold the opposite view 0 1 contend that revocable import credits are sub- o ject to cancellation at any time prior to the 2 2 0 0 actual negotiation of drafts drawn by virtue of 1 2 0 0 the credit, and hence such obligations should o o 2 be counted neither as a direct nor even as a 2 0 0 contingent liability (c). Unconfirmed export 0 ,0 2 credits, advised at the request of other banks, 0 0 0 1 are usually not regarded as a contingent 0 0 liability by American banks, since they act 7 25 only as agents negotiating drafts drawn by 45 45 the exporters (d). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

FEBRUARY,, 1921. FEDERAL RESERVE BULLETIN. 165 3. The larger banks, especially in New York, open import credits for customers of their Question: Is your original letter of credit returned to inland correspondents. These banks may be you when the last draft has been negotiated by the beneficiary of an— well known in their own locality but have no Import credit? standing abroad, and so drafts authorized by Export credit? them could be negotiated only with con- Answer: siderable difficulty. It is therefore customary Import credit, yes, 21; no, 39. Export credit, yes, 14; no, 40. for a smaller bank not to finance foreign trade (a) "It is optional with the beneficiary whether letters directly by issuing its own letter of credit, but of credit are returned to us or not." indirectly by instructing a metropolitan corre- (6) "Our original letter of credit is not invariably spondent with an international reputation to returned with the last draft negotiated, although if the last draft exhausts the credit it is returned. It frequently furnish the letter in favor of the beneficiary is the case that the last draft drawn under a credit does abroad. The New York bank protects itself not fully exhaust the credit." by having the country bank, singly or jointly (c) "It has become the custom recently to return with the local customer, sign a contract which original credits. However, in the past very few original credits were returned when exhausted. This holds good guarantees reimbursement (a). San Francisco both with import and export credits." banks in this manner finance most of the goods imported via the Pacific coast, by opening Original letters of credit are generally not credits at the request of banks in Denver, Chireturned to the issuing bank. In fact most cago, Pittsburgh, Buffalo, and other interior banks do not insist upon their return and leave points (6). this matter entirely to the volition of the beneficiary (a). This usage obtains because 6. in many cases the last draft drawn by the Question: Do you use the letter of credit in transactions exporter does not completely exhaust the between domestic buyers and sellers? credit (6). One bank notes that the present Answer: Yes, 56; no, 7. tendency is to return the original credit (c). (a) "Yes; but always in connection with foreign business; i. e., we at times issue letters of credit in favor of a manufacturer here for account of the American exporter." 4. (6) "The use of a letter of credit i** becoming more frequent and in many cases is now being required to prevent Question: Do you mark off negotiated drafts on the cancellation of orders." reverse side of— Import credits? It appears thus that the use of the letter of Export credits? credit is becoming more frequent in domestic Answer: transactions, and in many cases has been Import credits, yes, 47; no, 16. Export credits, yes, 48; no, 13. demanded by sellers of goods in order to pre- (a) "Import credits are marked off by negotiating vent buyers from cancelling orders. bankers in foreign countries." (b) "No; they are not attached to the documents and do 7. not have to be, because an export credit established here is payable only by ourselves." Question: Do you make any reference in your letter of American banks issuing import letters of credit to the sales contract between buyer and seller? Answer: Yes, 24; no, 39. credit uniformly require that foreign banks (a) "Banks are averse to making any reference in their indorse on the reverse side particulars of all letters of credit to sales contracts between buyer and drafts negotiated. This precaution is taken to seller; this is a matter which lies between those two prevent an unscrupulous foreign exporter from parties and does not concern the bank except indirectly." (b) "We only make reference to details of sale arranged presenting his letter and shipping documents between buyers and sellers if definitely requested to do simultaneously to several bankers and thus so by our customers, and then only in such cases where it overdrawing his credit. On the other hand appears absolutely necessary. We strongly disapprove of some banks do not insist upon the recording of details being incorporated in letters of credit, which can not be checked up by the negotiating bank and which drafts on export credits when these are payable are manifestly matters to be settled between the buyers only by themselves (b). and sellers independently of the bank financing the transaction." 5. (c) "At times this is to be avoided, as negotiating banks generally decline to have credit instruments burdened Question: Do you open letters of credit for your domestic with too many stipulations, more especially in foreign correspondent banks in behalf of their customers? countries; and once banks abroad decline negotiations Answer: Yes, 52; no, 12. the value of credit instruments is destroyed." (a) "We issue our own letters for customers of other (d) '' No reference is made to the sales contract between banks under joint obligation of customers and the banks." buyer and seller except such as the customer may direct, (6) "This applies more especially where goods are provided they are not so stringent that they interfere imported via Pacific coast and intended for interior points with the workability of the credit." like Chicago, Pittsburgh, Buffalo, etc., and banks at these (e) "Terms of credit should follow to a certain extent latter points wire us on behalf of their local customers and the terms of the contract. " instruct us to open credit, usually in favor of the seller on (/) "We have issued credits specifying particularly the the Pacific coast. grade, amount, and other specifications of the commodity, Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

166 FEDERAL RESERVE BUULETIN. FEBRUARY, 1921. but believe that the bank should not be responsible for drafts as may have been negotiated by it before receipt any qualifications of the shipments, as they only act as of the credit letter. A credit letter, the details of which guarantors for the local importer and hold his guarantee are not cabled, is handed to our customer for transmission to protect themselves, therefore any differences that may to the beneficiary." arise over the contract itself should be a matter to be The letter of credit is infrequently sent direct settled between the exporter and importer." (g) "We make it a point, if practicable, to mention in to the beneficiary, and then only when the our credits, the quality, quantity, and the price of the importer gives the issuing bank such instrucmerchandise to be shipped, as well as any special shipping tions. The importer at whose instance the instructions or other terms our clients may see fit to have credit is opened may choose to have the exporter inserted therein." (h) "We prefer not to make mention in our letters of informed by cable or mail (a, b). If by mail, credit of sales contracts between the buyer and seller. the bank hands the letter to the importer, who Rarely, however, we are forced to do so to protect our forwards it to the beneficiary. If by cable, own clients when our credits are supported by letters of the bank usually communicates with its correcredit issued in favor of our customers, in which mention is made of sales contracts." spondent nearest the point of shipment. When it is definitely known through which bank the Credit letters ordinarily do not allude to the exporter will negotiate his drafts, the letter is sales contract between buyer and seller, for the then sent to this institution. issuing bank has no direct concern in terms of this document or in any controversies which 9. may arise over the merchandise (a). Moreover, the banker negotiating the drafts under Question. When you open a letter of credit in favor of a foreign exporter do you deal directly with him and permit the letter would look with disfavor upon the him to negotiate his drafts with any local bank, or, indiinclusion of commercial details which he is rectly through a specified negotiating bank in the same unable to verify (b). In fact, a credit, burdened country as the beneficiary? with such stipulations, would prove of little Answer: value, as foreign banks generally would refuse Directly, yes, 46; no, 16. Indirectly, yes, 39; no, 23. to negotiate the drafts (c, d). On the other (a) "By preference we arrange in such a way that the hand, some banks feel obliged to protect the beneficiary may negotiate his drafts with any bank. This interests of their clients, and this explains the applies even though confirmation is provided through considerable number of institutions reporting some particular bank requested by our customer or the beneficiary." that they do refer to the sales contract in (b) "Our credit letters are available for negotiation by their letters of credit. Such mention is made any bank anywhere so long as drafts and documents to a varying degree. In some cases the terms eventually reach the drawee bank; that is, our correof the credit merely follow the stipulations of spondent in London in the case of a sterling credit, or ourselves in the case of a dollar credit. We never indicate the contract in a general way (e). Other either in our cables or in our credit letters themselves banks go to the extent of specifying the grade, that drafts must be negotiated with a specified bank." jantity, and price of the merchandise (/*, g, (c) "When the credit is opened available b\ drafts on us >). One bank protects itself by requesting u a we accept drafts, if properly negotiated, through any bank, but we advise through our correspondents and the declaration, furnished by the accredited party, drafts are therefore usually negotiated through their interthat the goods were shipped in accordance mediary; when available against drafts on a named foreign rdth the terms of the contract between the bank the credit can be used only through that bank." (d) "In opening credits abroad we generally permit the buyer and seller." beneficiary to negotiate his drafts with any bank, but with special credits and with credits to which we may have II. IMPORT LETTERS OF CREDIT. occasion to make future amendments, we direct drawings through our correspondent." (e) "Is optional with him in case he is given a dollar (a) Relations of issuing hank with beneficiary, letter of credit. We usually mark such credits:'This credit may also be negotiated with (here we mention our chief 8. correspondent in his country).' " The beneficiary thus is usually free to dispose Question: When you issue an import letter of credit do of his drafts with any bank willing to negotiate you send it to the beneficiary— Directly? them, but in special circumstances he is limited Through the importer? to specified negotiators. Banks follow both Through the negotiating bank? practices. Answer: 10. (a) Direct to beneficiary; yes, 22; no, 34. (b) Through importer; yes, 50; no, 8. Question: Do you issue the import letter of credit to the (c) Through negotiating bank; yes, 54; no, 14. beneficiary in duplicate or only as a single copy? (a) "If a negotiating bank is mentioned in the letter of Answer: credit, we send the original and one copy to it. When Duplicate, yes, 30; no, 32. no negotiating bank is mentioned, we request that our Single, yes, 39; no, 23. client forward the letter of credit to the beneficiary." (a) "Our import letter of credit is issued to the benefi- (6) "If the details of an import credit letter are cabled, ciary as a single copy only; an unsigned duplicate, howwe forward the letter itself to our correspondent bank, ever, is sent to a bank through whom a credit is cabled, for which transmits it to the beneficiary, after indorsing such their information." Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

FEBRUARY, 1921. FEDEKAI, BESERVE BULLETIN. 167 (b) "Import letters of credit, where intended for a 14. foreign beneficiary, are frequently issued in duplicate; in the case of our own bank we usually issue one original Question: Do you release goods to the importer before credit and two nonnegotiable copies." arrival of documents? Answer: Yes, 55; no, 8. It is customary to send only a single letter (a) '' It is advisable to release goods to the importer upon to the beneficiary, while nonnegotiable copies the arrival of the steamer, before the arrival of documents, are made for the files of the client requesting only when it is apparent that deterioration will occur by the credit, the bank notifying the beneficiary such delay in waiting, or when the bank is perfectly satisfied the beneficiary will be prepared to take the goods and the bank issuing the letter. Nevertheless, in accordance with the terms of the credit and agree to our quite a number send duplicate letters in the acceptance or payment thereunder." same manner that bills are sent as first and (b) "Yes, if necessary to avoid general order." second of exchange. Obviously the purpose of (c) "Yes, particularly in cases covering perishable forwarding two sets is to avoid delay in the goods." (d) "It is impossible to obtain goods on an import shipevent that one letter is lost in transit. Howment without the documents, unless the exporter desires ever, duplicate letters offer the opportunity of to give bond to the customs and steamship officials, or on presenting drafts and letter to one bank and a domestic shipment, to the railroad company. In such a repeating the same operation with a second case, if the drafts against the credit are time drafts, we would obtain a trust receipt, or if sight drafts, demand bank. To prevent a fraud of this nature, payment or obtain cover in some other manner." banks place negotiators on their guard by (e) "Yes, to obviate difficulties in storage, etc., but indicating clearly in the duplicate form that always with written understanding that by taking the an original is in existence. goods the importer can not turn down the documents even if they do not comply with the terms of the credit." (/) "Yes, against trust receipts and proper indemnity, (6) Relation of issuing bank with importer. but only when the goods are consigned to our order." (g) " The procedure depends entirely upon the standing of the customer." 12. Goods frequently arrive before the shipping Question: Do you use the same trust receipt for domestic documents which for some reason have been as for foreign transactions? delayed. In this event banks usually release Answer: Yes, 49; no, 12. the merchandise to prevent it from going into Questions 8, 9, and 10 have discussed the general order (a, i), which would give rise to a relations of the credit-issuing bank with the charge for warehousing goods not immediately beneficiary, while the questions which follow claimed. Also, when goods are perishable, it consider the dealings with the importer at is advisable to facilitate their sale (c). The whose instance the credit has been opened. importer is compelled to give customs and On the arrival of the goods, they are generally steamship officials a bond of indemnity before released to the importer on his signing a trust they will permit him to remove the goods receipt recognizing the bank as the owner of witnout producing the documents id). The the merchandise. From the answers tabu- bank protects its interest in the goods by lated above it appears that banks usually securing from its client a trust receipt and also employ the same form of trust receipt in their a statement that he will not reject the shipforeign as in domestic operations. ment even if irregular (e). A bank may further insist upon having the goods consigned 13. to its order. In general, banks grant this concession only to customers of good standing (g). Question: Do you use trust receipts for goods for— Delivery to purchaser? 15. Manufacture by importer? Answer: Question: Do you warehouse goods in the name of your Delivery to purchaser, yes, 56; no, 3. bank and arrange for deliveries as importer makes sales? Manufacture by importer, yes, 45; no, 12. Answer: Yes, 41; no, 21. (a) "Goods are frequently delivered by banks to the (a) "It is part of commercial bank's ordinary business customer for the purpose of his rebilling them in turn to to warehouse goods in its own name and arrange for delivhis purchaser, it being understood that such trust receipt eries as the importer makes sales. This would come under deliveries shall be paid for either in cash or within say the heading of 'consignment finance.' " seven days and the money accounted for to the bank." (b) "Only on rare occasions, however, because we as a Most banks will release goods on trust re- rule do not issue import credits to cover merchandise which is not sold." ceipts signed by the importer for the purpose (c) "Yes, when this seems desirable for our own control of delivering them to a bona fide purchaser (a). of the goods." A few banks decline to relinquish the merchan- (d) "Yes, but the actual warehousing is usually by the dise for manufacture by the importer himself, importer who handles the warehouse receipts." because of the difficulty in identifying the Under certain circumstances, banks would materials once they have been transformed warehouse goods in their own name and into finished goods. arrange for deliveries as sales are effected. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

168 FEDERAL RESERVE BULLETIN. FEBRUARY, 1921. However, they endeavor to avoid such action make prepayments, banks usually do not insist by opening credits as far as possible only to upon strict observance of this clause, but cover goods actually sold (6). instead regard it as a potential rather than an actual control over the funds arising from the 16. sale of the goods (c, d). Other banks, however, hold their clients to a close accounting when- Question: Do you insist upon prepayment of time drafts ever merchandise is delivered to bona fide by the importer as he effects sales or do you wait until purchasers (e, f). their maturity for payment? Answer: 17. Insist on prepayment, yes, 39; no, 20. Wait until maturity, yes, 41: no, 18. Question: How do you fix the rate of interest allowed for (a) "We expect all of our customers to live up to t/ie this prepayment? terms of the trust receipt and to the letter of credit agree- Answer: (a) '' The rate of interest allowed on anticipated ment calling for payment to us of drafts drawn thereunder payment of acceptances depends upon general standing when cash receipt is made by them. With some of our of customer, and his value to the bank as a client." customers we follow the deliveries closely, and expect (6) "We have determined upon a, rebate interest rate payment to us promptly as received by them." as follows: Under 10 days to run, no interest; 10 days to 30 (6) "If on account of the standing of our customer it days, 6 per cent; 30 days or over, the prevailing dealers' becomes necessary to warehouse goods in our name and selling rate for bankers' acceptances." make deliveries as sales are made, we insist upon prepay- (c) "The rate of interest allowed as rebate varies, and is ment of time drafts when releasing the merchandise, irre- based on the Federal Reserve Bank rediscount rate; spective of the maturity of such drafts, or if only part usually 1 per cent to 2 per cent under the latter rate." of the merchandise is released, payment is demanded (d) "In accordance with general practice we allow of same, or collateral sufficient to cover us on such deliv- 2 to 3 per cent less than the bill rate." eries." (e) "In accordance with market conditions here in case (c) "Under the trust receipt agreement signed by the of a credit payable in New York, or in case of a credit payimporter upon delivery of merchandise, it is understood able in London in accordance with conditions in London, that all moneys received by him for the sale of his mer- generally 1 per cent under the ruling rate for prime bills of chandise must be turned over to the bank financing the exchange." transaction immediately. However, it has become the (/) "Usually by sliding scale, which depends on the practice in many cases that the importer does not pay the amount involved and credit relations. We have no fixed bank until the maturity of the relative acceptances and rate." the banks have not insisted upon a strict account of all (g) "If drafts against the credits are drawn on our Lonmoneys thus received until maturity of the relative don correspondent and accepted by them, the rate of inacceptance, unless they have had good reason to believe terest allowed for this prepayment is one-half of 1 per cent that the importer in question was not in so favorable a above the advertised rate of London bankers for short definancial position as was the case when the credit was posits. If drafts are accepted by our French, Italian, Beloriginally opened.'' gian, or German correspondents, we use the minimum (d) l' We have never insisted by court action on prepay- rates of discount of the banks of those countries." ment of time drafts as sales are effected, but emphatically When the importer offers payment in anstate to the customer our demands; in other words, we ticipation of the maturity of the drafts, he exinsist, but have not resorted to court proceedings." (e) "Our clients are on notice that proceeds should be pects the bank to allow him a rebate of interest handed to us as soon as received." covering the unexpired time which the accept- (/) "We insist upon fulfillment of our trust receipt ances have still to run. The rate of this interest agreement, in which the importer engages himself to is not fixed, but is graduated according to such deposit with us proceeds of sales of merchandise delivered against trust receipt prior to the maturity of the draft." factors as credit standing of customer (a), Whan a bank permits an importer to ware- time of maturity (&), and prevailing value of house the merchandise he signs a trust receipt, money. Whether dollar, sterling, or foreign which usually contains the following agreement acceptances, the rebate is actually governed on his part: "To collect the proceeds of sale, by the rate of the central bank. It may be determined directly by placing the rebate at 1 and immediately deliver such proceeds to the or 2 per cent below the rediscount rate of the bank in whatever form collected, to be applied Federal Reserve Bank in the case of dollar acby them to the acceptances of the bank in my ceptances, or a little below the rate of the Bank account under the terms of the letter of credit of England for sterling bills (c). Another methissued for my account." The bank must now od is to allow a certain per cent below the mardecide whether to insist upon the application of ket rate for prime bankers7 bills (d, e). A third all funds derived from the sale of the goods way is to grant the customer the same rate of to the prepayment of time drafts which the interest allowed on deposit accounts (/, g). bank has accepted or to permit the importer to reimburse the bank for the retirement of the acceptances just before maturity. The tabu- III. EXPORT LETTERS OF CREDIT. lated answers above indicate that both prac- 20. tices are followed. The policy of the bank is determined in each case by the credit standing Question: Do you charge an additional commission for further confirming a letter of credit issued by a foreign of the individual (a, b). In general, while the bank? terms of the trust receipt bind importers to Answer: Yes, 42; no, 13. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

FEBRUARY, 1921. FEDERAL RESERVE BULLETIN". 169 (a) "This may depend a great deal upon the close con- id) "We regard it as an acknowledgment that we are nections of the foreign bank with ourselves, together with prepared to make payments to the beneficiary for the what amount of trouble we may be put to." account of our client but not that we are holding any (b) " Where an American bank is requested by its foreign particular fund for him." correspondent to specially confirm a credit issued by the (e) "We regard it as an advice that we will pay—from foreign bank it is customary to charge a commission, our own funds if necessary." usually one-eighth of 1 per cent.'' Quite a number of banks consider that their A commission is generally charged for con- confirmed letter of credit is an acknowledgfirming a letter issued by another bank. ment that funds are held for the use of the Under an unconfirmed credit the advising bank beneficiary in the sense that they are oblireceives a fee f®r examining the documents gated to meet his drafts (a, b). However, no presented by the shipper, and, in the case of a special funds are set aside as a special cover confirmed credit, the bank is permitted an ad- for their bills (d, e). ditional compensation for lending its credit to the transaction. 23. 21. Question: Do you permit a beneficiary to assign his Question: When you open a confirmed letter of credit credit (all rights) to another person and have the docuat the request of a foreign bank, do you set aside the ments presented in the beneficiary's name and not in the amount in a special account as cover? name of the party to whom the credit was transferred? Answer: Yes, 9; no, 43. Answer: Yes, 26; no, 30. (a) "Where a foreign bank requests us to open a con- (a) "Wlien it is desired to make a credit available for firmed letter of credit we do not usually set apart the one or more persons other than the beneficiary, it is amount in a special account as cover. The foreign bank's usually so opened. As bankers' letters of credit are guaranty is usually deemed sufficient." negotiable in character it is always possible for the bene- (b) "The few banks that we do this for are considered ficiary to assign to another person by drawing his draft or by us good enough, so that setting aside funds from their giving a sufficient power of attorney.'' account is deemed unnecessary.'' (b) "We do not permit a beneficiary to assign his credit (c) "We have not yet found it necessary to set aside to another person unless especially authorized to do so amounts in special account for the establishment of con- by the bank for whom the credit is opened." firmed letters of credit at the request of foreign banks." (c) "If the credit is assigned to another person it must be done in writing and the drafts must be drawn by the The legal theory of the Continent on the person to whom the credit is assigned, and must be in letter of credit affirms that the bank actually every way in accordance with the terms of the credit." holds funds in trust for the beneficiary of the id) "If transfer is agreed to, then all documents subsecredit. An opposite view is taken by British quently presented must be in the name of the new party." law, as seen in the case of Morgan v. Lariviere, The results of the above answers indicate discussed in the preceding article. From the that there is no definite usage regarding the tabulated answers above, it is clear that an assignment of credits to persons other than the American bank opening a confirmed letter of beneficiary named in the credit letter. Some credit in favor of an exporter does not set banks freely permit this practice (a), but it is aside any actual funds, for it is not a cash but customary to grant this privilege only with the purely a credit transaction (a, b, c). consent of the bank authorizing the credit (c). When documents are later presented to the 22. bank for payment, they are then surrendered in the name of the original beneficiary and not Question: When you issue a letter of credit to an ex- in the name of the new party (c, d). porter do you regard it as an acknowledgment that you are holding funds for the use of the beneficiary? Answer: Yes, 24; no, 32. 24. (a) "Yes, our credits being irrevocable and confirmed, we regard the issuance of a letter of credit to an exporter Question: On the original letter of credit do you issue doas an acknowledgment that we are holding funds for the mestic letters of credit to'subcontractors at the request of use of the beneficiary, provided drafts are drawn in con- the beneficiary? formity with the terms of the credit." Answer: Yes, 28; no, 29. (6) "When we confirm a credit to the exporter, it is (a) "These 'subcredits' are separate commitments at regarded as an acknowledgment that we are holding funds the beneficiary's risk; the original credit serves as an asfor his use. However, it not infrequently occurs that we surance that the transaction will be successfully liquiare requested to confirm credits for institutions who carry dated." no account with us, and we are in turn obliged to nego- (6) "It is always possible for a bank to make a domestic tiate drafts on them through the usual channel." letter of credit issued to a certain party available by some- (c) "Our unconfirmed export letter of credit form is one else if the beneficiary so desires; in that case the bank nothing more or less than a guide as to how documents which has issued the credit simply writes a supplementary are to be prepared, and is subject to cancellation at any letter modifying the terms of the original credit." time by us. It is not to be construed in any sense that (c) '' Such cases are rare, and in all probability we would we are holding funds for the use of the beneficiary. A not do so in the event that more than one sub contractor confirmed letter of credit, however, binds us to meet pay- were involved and the possibility existed that one of the ments, and is an acknowledgment that we are prepared to subcontractors would not be able to fulfill the terms of the pay the drafts drawn under the credit either from funds domestic credit within the time specified or in any other held or funds to be received." way prevent the using of the original credit, unless we were Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

170 FEDEBAL KESERVE BULLETIN. FEBRUARY, 1921. fully covered by the beneficiary against such eventuali- (e) "A revocable credit is subject to cancellation until ties." the drafts are actually paid abroad regardless of time of (d) " We have done this at times, although generally we negotiation." have not been approached to grant such an accommoda- It is a recognized principle that an uncontion." (e) "We do not encourage it." firmed credit may be canceled by an advising (/) "Do not like to do so, but circumstances might bank, but the maximum time limit within which warrant it." this right may be exercised is subject to various When a letter of credit is issued to a beneinterpretations. As shown by the above ficiary who does not himself manufacture the answers the exact time may be fixed as folgoods but merely assembles them, it is somelows: times the practice for the American bank in (a) Completion of manufacture, particularly turn to open domestic letters of credit in favor of special goods. of the actual suppliers of the merchandise, at (6) Delivery of goods to a carrier as evithe request of the original beneficiary. Banks denced by a bill of lading. engage in the practice with reluctance (c, d, e,f). (c) Presentation of documents to the bank. (d) Negotiation of drafts by the notifying' 25. bank. Question: Is it a practice for your bank to make an ad- (e) Payment of drafts by the credit-issuing vance or loan to an exporter on his depositing with you as bank abroad. security the letter of credit given him by a credit-issuing The more liberal policies expressed in bank? answers (a), (&), and (c) are followed by only Answer: Yes, 16; no, 44. (a) "No; letters of credit are generally not assignable a few banks, for the majority, claim the right and therefore do not afford security." to nullify the credit at anv time prior to the (b) "It is not a practice for us to do so, but we presume moment the drafts are paid (d). Some even that if occasion should arise we would not object to loan to insist that the entire credit may be rescinded an exporter in good standing for the purpose of enabling him to purchase merchandise which he will, in due course, up to the time of negotiation by the original export under a confirmed letter of credit." credit-issuing bank (e). A few contend that (c) "No; but we issue our own credits if goods are pur- they may avail themselves of the power to chased from third parties." cancel an unconfirmed credit at any time, Banks thus do not make a practice of making without even notifying the beneficiary of such advances to an exporter on the strength of action. See also answers to questions 1, 2, another bank's letter of credit, for it is not 9, and 22. acceptable collateral (6). 28. 26. Question: Do you permit an exporter usually to draw on full value of the merchandise shipped or only a percent- Question: When you are asked to cancel an unconfirmed age? credit, is the maximum time limit within which you may (The answers are not tabulated, as the benecancel set by— Delivery of goods at pier by exporter? ficiary is usually permitted to draw to the Drawing of drafts by exporter? full value of the exports.) Negotiation of drafts by your bank? Receiving of documents by your bank? 29. Answer: Delivery of goods, yes, 2; no, 41. Drawing of drafts, yes, 1; no, 41. Question: When you notify a beneficiary that a credit Negotiation of drafts, yes, 29; no, 15. has been opened in his favor (a) do you permit him to Receiving of documents, yes, 18; no, 25. negotiate his draft with another bank, or (6) do you insist (a) " If a seller had manufactured goods of a special kind upon negotiation at your bank? in good faith on the strength of the credit, we doubt Answer: (a) Yes, 49; no, 9. (6) yes, 10; no, 48. whether it could be canceled and we believe the same con- (a) "For all export credits established by us, the papers dition would apply if an importer had purchased special must be tendered to us for payment; of course, the drawer lines of merchandise for export." always has the right to disregard the letter of credit and (b) "All credits usually state conditions of expiration. have his own bank negotiate his drafts drawn directly on If authority provides that shipment must be made by date, the buyer, but it is to his interest to present it to the New we consider that a regular bill of lading of a public carrier York bank for payment. In cases where we simply evidences time of shipment." advise the beneficiary that a foreign bank has established (c) "We have always considered that we have the right a credit, the beneficiary is at liberty to negotiate his drafts to cancel an unconfirmed credit by giving notice to the through his own bank and not with us." beneficiary in writing at any time before presentation of (6) "In the case of an export letter of credit, it makes the documents to our bank." no difference to us who negotiates the drafts so long as they (d) "An unconfirmed or revocable credit can be can- eventually come to us." celed at any time by the party who has established it, (c) "We do not care where he negotiates his draft, but providing that such cancellation or revocation notice as most export credits provide for negotiation from the reaches the negotiating bank prior to the actual negotiation. opening bank's dollar account in the United States, if Once, however, a bank has negotiated in good faith a draft the beneficiary desires to get his money he is obliged to drawn under an unconfirmed credit, the bank which estab- present his drafts and documents to the bank advising lished the credit must protect the negotiating bank." him of the credit." 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FEBRUARY, 1921. FEDERAL, BESERVE BULLETIN. 171 (d) "We do not permit but can not prevent another to cancel credits opened in favor of exporters in the bank negotiating. We always insist upon our negotiation United States when there is a marked decrease in the but in extreme cases can not prevent beneficiary nego- price of the commodity shipped, by serving attachment tiating at other banks." papers through the courts." (e) "We might request the negotiation of drafts through (c) "In connection with letters of credit there seems to ourselves, but in no way can we control the beneficiary be a divergence of opinion as to what constitutes a refrom negotiating with whomever he pleased so long as vocable or irrevocable letter of credit, and the terms the bank were prepared to negotiate; in fact, negotiation 'confirmed' and 'unconfirmed' are often misused, and could be made with another bank without our being presumably misunderstood." aware of it." (d) "Another phase of banking practice, which we (/) "If a credit is opened by us available by drafts on believe requires some educational work, is for the bank us, they must be finally presented to this bank for pay- and its customer to see that the trust involved in the ment, but we have no objections to the beneficiary nego- release of goods is strictly lived up to. We find frequently tiating them through his own.bank." that business people regard the signiDg of a trust receipt A beneficiary thus is generally permitted to merely as the issuing of a note, and that they have no responsibility except to j)ay the relative acceptance at due negotiate his drafts with any bank and not date. This is a pernicious situation, and every effort necessarily with the bank which has advised should be exerted to remedy it." him of the credit. (e) "The business public, in most cases, do not understand the difference between letters of credit and bank 30. guaranties and very often this leads to controversies between the foreign importer and the domestic exporter." Question. Instead of a letter of credit, do you use a similar document such as the "authority to draw drafts" or the "authority to purchase drafts"? Answer. Yes, 1.6; no, 40. (a) "Authorities to purchase drafts (known as A/Ps) are Acceptance Liabilities of Member Banks. not used except by far eastern banks and their American correspondents. An A/P is usually equivalent to an un- Between November 17, 1919, and Novemconfirmed credit and can be revoked at any time, and the American agent of the foreign bank when notifying the ber 15, 1920, the date of the latest call for conbeneficiary that such an authority has been established is dition reports of all member banks, combined invariably careful to inform him that this is not a con- acceptance liabilities of these banks increased firmed credit and is, therefore, subject to cancellation at from 565.7 millions to 647.8 millions. The any time." (b) "We do not use the 'authority to purchase' drafts, peak figure of 673.9 millions was shown for but do negotiate drafts under such authorities for account May 4, 1920, while between that date and the of our foreign correspondents, debiting payments to their middle of November of the past year the total accounts with us immediately drafts have been negodeclined by 26.1 millions. This decline is tiated." (c) "We rarely issue documents similar to the letter of notable in view of increases in the acceptance credit such as the 'authority to draw drafts' or the liabilities of the national banks in New York 'authority to purchase drafts,' and then only in domestic City from 188.3 on May 4, 1920, to 201.9 miltransactions. The occasions for the use of the above lions on November 15 of that year, and in the drafts are so infrequent that when they do arise we merely draw them on our letterhead." acceptance liabilities of the New York • City (d) "We do not use 'authority to draw drafts* nor trust companies from 130.8 to 159.3 millions 'authority to purchase drafts,' though we are frequently during the same period. requested to negotiate thereunder by our oriental cor- As a matter of fact, substantial reductions respondents." between May and November of the past year The " authority to purchase" is seldom are shown in the aggregate acceptance liabiliissued outside of New York and San Francisco. ties of both national and other member banks The banks on the Pacific coast use this docuin most of the larger cities outside of New ment extensively in financing trade with the York. Thus, for example between May and Orient. November, combined acceptance liabilities of 31. national and other member banks of Boston declined from 85.8 to 69.4 millions; those of Question: In addition to the above, please indicate any other special Droblems along these lines which have arisen Philadelphia from 26.4 to 23.6 millions; those in your experience. of Chicago from 72.7 to 60.5 millions, and Answer, (a) * 'We should welcome it, if new statements those of San Francisco from27.8 to 17 millions. of general terms were prepared, one to contain the guiding On May 4, 1920, aggregate acceptance liabiliprinciples under which American banks open credits for foreign clients, and the second the terms and conditions ties of New York national banks and trust which should be introduced in the commercial letter of companies constituted 47 per cent of the total credit agreement between domestic banks and their cus- acceptance liabilities of all member banks. tomers for the opening of and handling of import letters On June 30 the proportion had increased to 51 of credit, so as to prevent the recurrence of attempts made either by foreign or domestic customers to evade the com- per cent, and on November 15 it stood at 55.8 mitments undertaken by them in connection with this per cent. In the following table are shown phase of our business." separately the aggregate acceptance liabilities (b) "The greatest problem that confronts us is the laws of the national and other member banks in the of various foreign countries that will allow importers there Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

172 FEDERAL RESERVE BULLETIN. FEBRUARY,, 1921. principal centers on all call dates between No- varied between 65 and 70 per cent of the total vember 17, 1919 and November 15, 1920: purchased acceptances held, which show a ; gradual decline from 372.5 millions on June 30 Acceptance liabilities of national and other member banks. to 258.9 millions at the close of the year. Discounted bank acceptances (nearly all member [In thousands of dollars.] bank paper) fluctuated between 25.2 millions on June 30 and slightly over 8 millions at the Class of c i b t a y n . ks and N 19 1 o 1 7 v 9 , . . D 1 3 9 e 1 1 c , 9 . . F 1 2 9 e 8 2 b , 0 . . M 19 4 a 2 , y " 0. J 1 u 9 3 n 2 C 0 e , . S 1 e 9 p 20 t. . N 19 1 o 5 2 v , 0 . . end of September, and aggregated 17.2 millions at the close of the year, as may be seen from the following exhibit: NATIONAL BANKS. New York 413 178617 192,23 i 188,297 200904 197,501201,854 Boston 449 62438 1,665 60,951 53,978 441,, 8~3~5" 49,518 Federal Reserve Bank holdings of bank acceptances. Philadelphia 683 21993 23!,896 25,028 '39 255,,619 22 Alb Pittsburgh 487 906 672 749 1,882 Cleveland 622 673 975 040 8,412 [In thousands of dollars.! Detroit 291 987 646 606 4,360 Cincinnati 904 996 014 592 I, 1,222 Indianapolis 135 013 924 320J 2, 2,919 Purchased in open market, accepted by- Richmond ij 594 330 739 823 1,864 Baltimore ,078 859 059 651 5,165 Atlanta ,160 702 200 300 650 New Orleans ,579 389 7491 388| 1,555 Non- Held C C M S h t h . i i n a c L r n a l o e g e u a o s p i t s o o n li , s S. C... , , , 8 9 9 0 2 6 4 9 5 9 9 2 3 8 6 2 : ' 6 3 0 23 2 8 7 4 7 2 0 8 2 9 3 3 7 2 5 3 2 5 4 ) 37 8 5 , , , 8 3 0 3 0 5 2 1 4 1 4 5 ! | 8 3 , , 3 4 9 4 1 , , , ; 7 9 7 5 0 2 0 9 2 0 5 0 Date. M b e a m nk b s e . r m a b n c e o d a m n u d k b n i s t e s r - b v a P n a ri t k - e s. b F r b o a a a n r n e n c d i k h g e n s ho T ld o i t n a g l s. c u o d n u i d s n e - t r .i D Sa a n ll a F s rancsico , ,8 1 7 3 3 5 1 1 1 7: 2 6 5 5 0 4 26 1 , ,3 74 7 4 0 1 ! 2 I 6 ! : 0 31 3 1 5 1 i 22, 1 2 5 , , 8 8 7 6 5 5 co ti r o p n o s r . a- agencies. Portland, Oreg 3 659 4,177 13,123] 2. 4,072 Seattle l',440J 3013 2,575j 1 1,013 Allother 31,937 37324! 32,570; 30'. 29,£67 1920. June 30 255,564 56,474 38,647 21,856 372,541 25,174 Total. 359,110 407,639 424,6691438,430J431,198=414,583406,525 July 31 234,368 47,112 36,087 22,079 339,646 9,830 Aug. 31 202, 868 44,130 31,225 21, 737 299,960 9,013 STATE BANK AND Sept. 30 200, 976 41,948 29,788 25,511 298,223 8,072 TRUST COMPANY Oct.31 194,90S 39,636 33,662 27,864 296,070 11,539 MEMBERS. Nov. 30 153,302 33,502 26,010 25,702 238,516 12,828 Dec.31 169,387 38,374 24,905 26,212 258, 878 17,218 New York... 132,563 146,226 130,798 143,335 Buffalo 1,110 1' ,1'8"7" 2,680 3,886 ... Boston 14,508 20,642 24,721 ... i Figures as of last Friday in the month. Providence.. 1,144 1,447 4,1781... Philadelphia. 750 500 1,385!... Pittsburgh.. 2,266 1,525 2,287! Of the total of 673.6 millions of member Cleveland 5,265 5,156 6,434 bank acceptances outstanding at the end of Detroit.... 550 1,075 1,394 Memphis.. 1,360 901|. June, 1920, about 281 millions, or a little Richmond. '220 135 50j. Baltimore. 75| over 40 per cent, are reported among the hold- Savannah. 709 233 674 ings of the Federal Reserve Banks (acquired Atlanta 67. 540 385) New Orleans 9,617 055 7,259 either through open-market purchase or dis- Chicago 23,227 30,926 696 28,790 St. Louis 6,865 8,144] 9,422 counted for member banks). During the latter San Francisco 55J 1,067 527 ".. part of the year the Federal Reserve Bank Portland, Oreg 996 783 ' 722| Sealtl 17c 100 401 , holdings of acceptances show a considerable Allother 3,48E 4,203 6,107 5,290 decline, holdings of bank acceptances alone Total. 206, 567 233,379 235,422 242,369!. .241,276 showing a decrease from 397.2 on June 30 to Total national 297 millions on November 12, the Friday banks 359,11 407,639 424,669 438,430 431,198 414,583 406,525 Total State bank nearest the call date. Federal Reserve Bank and trust com- figures of member bank acceptance holdings pany members.. J206,567 233,379 235,422242,369 241,276 are not available for November 15, nor for the Grand total.... 565,677 641,018 673,852 673,567 647,801 Friday preceding or following, but there is reason to think that the proportion of total Of the total acceptance holdings of the Fed- member bank acceptances outstanding that eral Reserve Banks at the close of each month was held by the Federal Reserve Banks on by far the larger portion is composed of paper November 15 probably was not in excess of 30 purchased in open market, including a moder- per cent, compared with about 40 per cent at ate amount of trade acceptances, though much the close of June, 1920, and about 50 per cent the greater share of the latter is reported at the close of June, 1919. among the holdings of discounted bills. On On November 12 the Federal Reserve Banks' the other hand, discounted bank acceptances holdings of member and nonmember bank constitute only a small percentage of the total acceptances were about 297 millions. Assumamounts of bank acceptances shown among the ing that this represents about 30 per cent of end-of-month holdings of the Federal Reserve the total bank acceptances outstanding on Banks. The share of member bank accept- that date, this total may be estimated to run ances held by the Federal Reserve Banks between 900 and 1,000 million dollars, a Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

FEBRUARY, i92i. FEDERAL RESERVE BULLETIN. 173 total only slightly different from the esti- [In millions of pounds sterling]. mated amount outstanding on May 4 of the past year. Dec. 31, Dec. 31, Nov. 9, 1920. 1919. 1918. As agiainst a decided upward tendency during the first half of 1920 market rates on bank Total debtl 7,832 8,079 7,120 acceptances (90-day maturities) for the second Funded debt. 6,424 6,730 5,628 Floating debt 1,408 1,349 1,492 half of the year, as compiled by the American Acceptance Council, show but little change, 1 Figures from the London Economist. continuing slightly below the corresponding London rates, as may be seen from the follow- For the year 1920 the floating debt shows an ing exhibit: increase of about 59 million pounds, while the funded debt was reduced by 306 millions, of which 51 millions represents England's share of New York the Anglo-French 500-million dollar loan obrates for prime London rates eligible bank for 3 months' tained in America, which fell due on October acceptances bankers' bills. (90 days). 15. The remainder includes bonds purchased by the Treasury in the open market out of the depreciation fund administered by the 1920. January National Debt Commissioners. February.. March Compared with its position at the time of the April May armistice, the total debt at the close of 1920 June shows an increase of about 712 million pounds. July August The floating debt decreased by 84 millions dur- September. October ing the period, while the funded debt in- November. creased by about 796 millions. This increase December.. 64in the funded debt represents, to a large extent, bonds of the 4 per cent funding loan and British Floating Debt. 4 per cent Victory bonds, both of which were floated since the armistice. Below is printed a table showing the position of the floating debt of the United Kingdom Position of the floating debt of the United Kingdom since for every week between November 9, 1918, the armistice. the time of the armistice, and the end of 1920. [In thousands of pounds.] Comparative figures for some previous dates are also included. Total For most of the period under consideration, Date. floating debt. the floating debt consists of two items, " treasury bills77 and "ways and means advances.;; Nov. 11,1916 1 1,102,829 56,896 1,187,635 Treasury bills are sold by the Government 10,1917 1,004,988 j 221,164 1,249,71S through the Bank of England, and are from 3 1918. to 12 months in maturity. Treasury bills, Nov. 2. 1,121 354,198 ,478,088 9. 1,123 366,198 ,491,961 outstanding fluctuated between about 1,050 and 16. 1,122 365,690 ,489,216 23. 1,122, 367,998 ,491,589 1,150 millions during the year and stood at 30. 1,113, 373,613 ,488,121 the end of the year at 1,102 million pounds. Dec. 7. 1,121 416,112 ,537,728 14. 1,120 422,112 ,542,678 Ways and means advances, although shown 21. 1,118 430,112 , 549,043 31. 1,094 455,180 ,549,920 in this table in one item, consist of two different kinds of liabilities—advances obtained from 1919. Jan. 4. 1,097,904 447,180 ,545,084 the Bank of England to supplement current 11. 1,108,532 417,180 ,525,712 18. 1,094,666 399,680 ,494,346 revenue, such advances running for not more 25. 1,078,848 384,680 ,463,528 than three months; and advances by public Feb. 1. 1,042,158 354,180 ,396,338 8. 1,008,253 378,180 ,386,433 departments. During the last six months of 15. 993,412 390,680 ,384,092 22. 978,600 405,180 ,383,780 1920, advances by the Bank of England ran as Mar. 1. 968,805 427,280 ,396,085 high as 87 millions, while advances by public 8. 961,694 446,770 ,408,464 15. 957,479 446,770 ,404,249 departments rose from 143 millions at the end 22. 948,536 456,988 ,405,524 31. 957,236 454,993 ,412,22§ of September to 219 millions at the close of the Apr. 5. 977,824 470,993 ,448,817 year. 12. 986,199 459,993 ,446,192 19. 978,672 470,493 ,449,165 The following statement shows the total 26. 985,941 474,492 ,460,434 debt and the funded and floating debt of the 1 In addition to the items shown, the total includes the following jnounts of war expenditure certificates (in thousands of pounds): United Kingdom at the time of the armistice tfov. 11, 1916, 27,910; Nov. 10, 1917, 23,561: Nov. 2, 1918, 2,243; Nov. 9, and at the end of the years 1919 and 1920: 1918, 1,172; Nov. 16,1918, 1,337; Nov. 23, 1918, 1,018; Nov. 30, 1918, 701; Dec. 7,1918, 483; Dec. 14,1918, 285; Dec. 21,1918, 213. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

174 FEDERAL RESERVE BULLETIN. FEBRUARY, 1921. Position of the floating debt of the United Kingdom since FRENCH WAR FINANCE.1 the armistice—Continued. [In thousands of pounds.] France entered the war in 1914 with an internal debt of 35 billion francs, with no foreign debt, Date. Tr b e i a l s ls u . ry W m ay e s a n a s nd f T lo o a t t a i l ng and with large investments abroad. She begins advances. debt. the year 1921 with debts in foreign countries and at home which amount to about 245 billion 1919. francs (calculating the foreign debts at par). May 3. 1,000,179 477,492 1,477,671 10. 1,013,135 470,992 1,484,127 A survey of the operations by which these 1 2 7 4 . . 1 1 , , 0 0 1 2 8 2 , , 7 0 8 9 9 7 4 4 7 5 0 9 , , 8 3 9 9 2 2 1 1 , , 4 48 8 9 1 , , 6 4 8 8 1 9 debts have been accumulated makes an inter- 31. 1,036,131 457,892 1,494,023 esting study in war finance. June 7. 960,219 581,892 1,542,111 14. 891,208 654,892 1,546,100 France used short-term government securi- 2 3 1 0 . . 8 7 5 9 1 6 , , 8 1 3 5 1 0 7 7 0 7 1 4 , , 8 2 9 3 2 7 1 1 , , 5 5 5 7 3 0 , , 7 3 2 8 3 7 ties as a means of obtaining war funds much July 5. 711,555 855,837 1,567,392 more than has been popularly supposed. Her 12. 628,209 930,468 1,558,677 19. 669,777 724,118 1,393,895 national defense bills correspond to the certi- Aug. 2 2 6 . . 7 7 4 1 9 4 , , 6 6 7 0 8 4 5 43 5 1 6 , , 5 6 7 6 8 8 1 1, , 1 2 8 7 1 1 , , 2 2 5 7 6 2 ficates of indebtedness used in the United 771,225 410,578 1,181,803 States, and to the Treasury bills of the United 16! 797,674 390,578 1,188,252 23. 800,447 381,578 1,182,025 Kingdom. In December, 1919, there were Sept. 3 6 0 . . 8 8 5 1 6 7 , , 8 7 6 2 1 5 3 3 8 6 7 7 , , 5 0 7 7 8 8 1 1, , 2 2 2 0 3 5 , , 9 3 3 0 9 3 national defense bills outstanding to the 13. 876,702 348,578 1,225,280 amount of 46 billion francs, and the latest 20. 870,833 348,078 1,218,911 30. 851,315 393,082 1,244,397 figure available (that of July 1, 1920) is 44 Oct. 4. 853,068 422,582 1,275,650 billion francs. Unfortunately it is impossible 11. 930,963 373,082 1,304,045 18. 976,621 317,082 1,293,703 to say how many of these bills are held by 25. 1,043,687 242,582 1,286,269 Nov. 1. 1,069,622 224,582 1,294,204 private investors and how many have found 8. 1,082,594 225,082 1,307,676 their way into the banks, as the statements of 15. 1,091,961 213,582 1,305,543 22. 1,092,059 202,082 1,294,141 the French private banks report national 29. 1,089,082 209,582 1,298,664 Dec. 6. 1,100,368 245,782 1,346,150 defense bills and commercial bills in one item. 2 1 0 3 . . 1 1, , 1 1 2 1 1 1 , , 6 0 2 2 0 2 2 22 3 4 0 , , 0 7 8 8 7 2 1 1, , 3 3 4 4 5 1 , , 7 8 0 0 7 4 One of the most striking features of 27. 1,105,946 243,174 1,349,120 French war finance is furnished by the 31. 1,105,946 243,174 1,349,120 advances of the Bank of France to the Govern- 1920. ment and the consequent increase in its note Jan. 10.. 1,144,881 209,074 1,353,955 17.. 1,130,951 215,074 1,346,025 circulation. It should be observed, however, 24.. 1,119,861 204,430 1,324,291 31.. 1,110,461 208,230 1,318,691 that at no time during the war did the advances Feb. 7.. 1,106,668 196,230 1,302,89$ of the Bank of France equal the amounts 14.. 1,101,168 185,330 1,286,498 21.. 1,102,331 218,830 1,321,161 realized from the sale of national defense bills. 28.. 1,070,085 187,830 1,257,915 Mar. 6.. 1,056,662 185,430 1,242,092 Athirdfeatureof Frenchwarborrowingwhich 1 2 3 0 . . . . 1 1, , 0 0 4 5 8 9 , , 7 2 7 2 2 8 1 1 6 7 8 8 , , 9 4 3 3 0 0 1 1 , , 2 2 2 2 8 7 , ,2 1 0 5 2 8 deserves especial attention is that which con- 31.. 1,107,318 204,887 1,312,205 cerns foreign countries. The report of France's Apr. 10.. 1,043,398 268,837 1,312,235 1,054,170 250,837 1,305,007 foreign debts given on the first of last July May 2 1 4* . ." . . . ; 1 1 , , 0 0 5 4 0 7 , , 6 6 3 4 4 8 2 2 4 4 5 9 , , 3 2 3 0 7 7 1 1 , , 2 29 9 5 6 , , 9 8 7 5 1 5 lists ten allied and neutral countries from which 8... 1,064,452 234,767 1,299,219 she received the loans by which she financed 15... 1,063,733 218,867 1,282,600 22... 1,062,834 210,367 1,273,201 her necessary imports. In most of these June 2 5 9 . . . .. . 1 1, , 0 0 7 6 0 2 , , 9 0 8 2 7 2 2 2 2 3 1 4 , , 6 8 1 6 7 7 1 1 , , 3 2 0 83 5 , , 6 8 3 5 9 4 countries the loans take the form of short-term 12... 1,077,203 223,817 1,301,020 credits and must be repaid or funded within a 19... 1,077,997 213,317 1,291,314 26... 1,069,626 218,324 1,287,950 year or so. In England and the United States 30... 1,050,090 243,691 1,293,781 July 10... 1,078,629 211,991 1,290,620 the greater part of the advances come from 1,066,090 213,141 1,279,231 the national treasuries, and may presumably 24*.".: 1,066,358 205,341 1,271,699 31... 1,058,348 203,841 1,262,189 be allowed to run for a longer period. 1,046,980 218,341 1,265,321 1,048,492 209,841 1,258,333 Other war borrowing in France took the form 21... 1,060,756 187,541 1,248,297 of five and ten year bonds and perpetual 28... 1,066,736 182,491 1,249,227 Sept. 4... 1,069,009 197,941 1,266,950 rentes. 11... 1,065,873 196,941 1,262,814 18... 1,083,099 175,441 1,258,540 No regular reports are published by the 30... 1,138,794 143,114 1,281,908 French Treasury, and official figures on French Oct. 9... 1,078,639 211,364 1,290,003 16... 1,072,804 247,614 1,320,418 war finance must be obtained largely from the 23... 1,076,004 242,264 1,318,268 30... 1,084,629 241,364 1,325,993 documents of the Senate and the Chamber of Nov. 6... 1,088,884 244,614 1,333,498 Deputies. At varying intervals there occur in 13... 1,089,054 242,714 1,331,768 20... 1,090,379 236,364 1,326,743 these documents statements of the Govern- 27... 1,096,594 211,114 1,327,708 Dec. 4... 1,126,729 268,414 1,395,143 ment's financial situation. The statements are 11.., 1,137,604 260,264 1,397,868 sometimes made by the Finance Minister and 18... 1,131,579 262,914 1,394,493 31... 1,102,109 305,972 1,408,081 i Prepared under the direction of F. M. Williams, Division of Analysis ana Research. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

FiBEUARY, l92l. FEDERAL RESERVE BULLETIN. 175 sometimes by the chairman of the Senate or Resources of the French Treasury, Aug. 1, 1914-July, 1920. Chamber of Deputies Finance Commission. [In billions of francs.] One of the most complete and satisfactory of Receipts from taxation 43 these reports is that prepared July, 1920, by Advances of the Bank of France 26 M. Downer, who has recently become Finance Loans obtained abroad 35 Minister in the Briand Cabinet. Treasury bills (including national defense bills) 46 Internal loans 72 The latest official account of France's fiscal operations since the beginning of the war was Total 2222 given by M. Paul Doumer in a report on the Specifically, seven different sources were budget made to the French Senate on July 20, utilized to provide funds for the French Govof last year. According to M. Doumer, ernment during the war. They are as follows: France's expenditures since the beginning of 1. Receipts from taxes. the war are best shown by the credits voted 2. Advances from the Bank of France and by the French Parliament. These have been the Bank of Algeria. as follows: 3. National defense bills (bons de la defense nationale, issued first for one year, six months, Credits voted by the French Parliament, August, 1914, three months, and later for one month also). through July, 1920. 4. National defense bonds (obligations de la defense nationale, five and ten year bonds). [In millions of francs.] 5. Consolidation loans. (These loans were 1914 (August through December) 6, 589all of the " perpetual rente" type, except that 1915. ' 22, 804 of the spring of 1920, which matures in 1980.) 1916 32,945 1917 41, 680 6. Treasury bills discounted abroad. 1918 54, 537 7. Other loans floated abroad. 1919 49,029 207, 584 TAX RECEIPTS. 1920 (January through July) 25, 714 It will be evident from the graph3 on Total 1233, 298 page 180 that at the beginning of the war French tax receipts were very small indeed. The Figures on the resources utilized by the mobilization of almost all France's male poptreasury for meeting the expenditures auulation of military age completely disorganthorized are available in comparable form for ized the collection of taxes. Revenue for the years 1914 through 1919, and the graph 1914 was 641 million francs less than the on page 180 shows how they were divided. budget estimate for that year. The collection of The figure on short-term loans includes nataxes improved in 1915, and various new tional defense bonds and short-term loans taxes of a minor nature were enacted, but no from foreign countries. very great tax increases took place until the year Approximately one-third of France's war following. In 1916, 1917, and 1918 war-profits resources (including in that term all funds taxes, increased inheritance and income taxes, received by the treasury from Aug. 1, 1914,and various indirect taxes were voted, and through July, 1920) came from internal loans, the receipts turned into the treasury increased a little more than one-fifth from the sale of correspondingly. In July, 1920, new taxes national defense and other treasury bills, were voted which have almost doubled tax slightly less than one-fifth from tax receipts, receipts. not quite one-sixth from loans obtained abroad, and about one-eighth from the advances of the 2 It will be noted that the figure for total resources is smaller by 11 Bank of France. M. Doumer gives the fol- billion francs than that for credits granted. The only explanation given for this is that the total credits were not utilized. lowing figures on the subject: 3 As indirect taxes and Government monopolies produce the greater part of French revenue, monthly tax receipts fluctuate greatly, and a three-months' moving average has been plotted in order to snow the * Documents Parlementaires, Se"nat, 1920, p. 344. general trend of tax receipts. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

176 FEDERAL RESERVE BULLETIN. FEBRUARY, 1921. The following table gives French tax receipts by months for the war period: French tax receipts.1 [In thousands of francs.] 1914 1915 1916 1917 1918 1919 1920 Indirect taxes and Government monopolies: January 258, 907 293,913 403,731 394,175 533,839 885,450 February 205, 941 246,532 351, 826 333,442 453,412 794,045 March 234, 043 264, 000 414,649 336, 564 542,495 859,192 April 298, 721 331,264 407,733 402,626 681,226 1,057,131 May 246,036 290,947 359,688 357,783 595,132 857, 095 June 241, 585 275,402 405,350 357,041 638,683 907,721 July 290,758 365,135 432,241 472,595 771,096 1,109,011 August 173,606 242,705 335,135 401,052 381,805 666,979 September 136,735 236,162 346,341 337,838 443,008 672,001 October i 223, 731 307,749 399, 034 454, 912 547,335 831,501 November I 189, 426 232, 246 339,365 355,298 434,224 737,825 December 211,379 289,630 398,442 402, 510 446,132 793,268 Total.. 2 934,877 3, 084,483 3, 885, 510 4, 726, 828 4, 906, 730 7,917,457 3 6,469,645 Direct taxes. 2 303,945 1,028, 949 755,302 1, 084,445 2,080,064 2,259 302 3 3,867,827 Grand total. * 1,238,822 4,113,432 4,640,812 5, 811,273 6,986,794 10,176,759 810,337,472 1 No monthly figureso n direct taxes in France are available. In the graph on page 180, direct taxes have been prorated throughout the year. The totals used here are those of M. Doumer's July budget report. See Documents Parlementaires—Senat, p. 344. a August through January only. * January through Julv only. At the present time the Government is ADVANCES OF THE BANK OF FRANCE. paying 1 per cent interest to the bank on The first extraordinary source to which the these advances, and 2 per cent to an amortiza- Government turned for financial aid in 1914 tion fund. As the use of checks is not at all was the Bank of France. According to the common in France, these advances to the agreement (renewed in 1911) by which the Government are not reflected predominantly bank is the only note-issuing body in France, it in deposit accounts. The following figures is required to advance the Government, until show the relation between the growth in the the expiration of the note-issuing privilege, 200 note circulation and the private deposits of the million francs without interest, and "in time Bank of France: of public emergency" to lend 2,900 million francs at 1 per cent. This was promptly done at the outbreak of the war. It was Bank of France. evident very shortly, however, that the [In millions of francs.] advances originally agreed upon would not be sufficient for the needs of the State and in Private Note September, 1914, the limit was raised to 6 deposits. circulation. billion francs. By the end of April, 1915, the advances of the bank had increased to 5,543 End of— million francs, and the maximum was again D D e e c c e e m m b b e e r r , , 1 1 9 9 1 1 4 3 . . . 2, 5 2 7 1 5 0 1 5 0 , , 7 0 1 4 4 3 raised in May. It has progressed since that December, 1915.. 2,033 13,201 December, 1916.. 2,260 16,679 time by successive steps, until it now stands at December, 1917.. 2,914 22,337 December, 1918. 2.366 30,250 27 billion francs. The only periods during December, 1919.. 3,127 37,275 the war when the advances of the bank December, 1920.. 3,518 37,902 decreased were at the time of the consolidation loans (in December, 1915; in November, The increase in the deposits of the French 1916; very slightly in December, 1917; inprivate banks has been even less than in those September, 1918), and at the time of the of the central bank. Because the use of armistice. The increase in the advances of deposit accounts is so relatively unimportant, the bank to the State in 1919 is very strik- it was inevitable that the advances to the ing. There was no great loan during that Government should cause a large increase in the year to fund the outstanding obligations of the note circulation of that bank. There is no legal Government, and expenditures piled up faster reserve ratio for the Bank of France, but the than tax receipts, although the latter were amount of its note issue is limited by act of Parlarger than they had ever been before. During liament. When the war broke out, this limit 1920 the advances of the bank were com- stood at 6,800 million francs, but it has since paratively slight and in the first weeks of 1921 been raised several times, and is now 43 billion they have been reduced by about 1 billion francs. francs. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

FEBRUARY, 1921. FEDERAL RESERVE BULLETIN. 177 The decrease in the ratio of gold to notes of ADVANCES OF THE BANK OF ALGERIA. the Bank of France is not quite so great as the Compared with advances from the Bank of increase in its note circulation would seem to France to the Government, those of the Bank imply, as its gold reserve has increased almost of Algeria appear relatively insignificant. Their 2 billion francs since 1914. In December, progress has been as follows: 1913, the gold reserve of the bank amounted to 3,517 million francs; in December, 1920, it Advances of the Bank of Algeria to the French Government had reached 5,500 million francs. Part of this for the purposes of the war. reserve was transferred abroad to secure loans [In millions of francs.] made to the French Government. The follow- December 31, 1915 75 ing table shows amounts of gold reported by December 31, 1916 25 the bank as held in other countries: December 31, 1917 95 December 31, 1918 210 Gold reserve of the Bank of France held abroad. December 31, 1919 231 November 30, 1920 43 [In millions of francs.] NATIONAL DEFENSE BILLS. 1916 1917 1918 1919 1920 The sale of treasury bills to bridge over the End of— gap between tax receipts had long been com- June.. 271 j 2,035 2,037 1 1,978 1,978 December 1,693 i 2,037 2,037 1,978 1,948 mon in France, and in the fall of 1914 the finance minister promptly employed these bills to Gold convertibility in France was abandoned provide emergency funds. The rate of interby an act of Parliament in August, 1914. est on one-year bills was made 5 per cent, pay- Bank notes were made legal tender, and issued able in advance. (It had been 1 per cent the in 5 and 20 franc denominations to take the year previous.) It was soon found necessary, place of the coin withdrawn from circulation. however, to increase the sale of the bills in The graph on page 180 shows the close France, and in August, in order to make them correspondence between the increases in more popular, they were renamed u national dethe note circulation of the bank and its fense bills/' and were issued for three months, advances to the Government. The advances six months, and one year. Every advantage plotted there include regular advances to the was granted to them. The Bank of France dis- Government and the Treasury bills discounted counted those having no more than three months for the advances of the State to foreign Gov- to run, and accepted them as guaranty for ernments. The difference between these advances up to 80 per cent of their value. In advances and the note circulation of the bank the first week of October, 1914, the more imwas 7 billion francs in December, 1920. The portant private banks allowed their depositors relation between these two items has been to withdraw funds for the purchase of national practically unchanged since 1914, and the defense bills or for payments on 3J per cent difference is only slightly more than the note rentes in excess of the amount stipulated by the circulation of the bank before the war. latest Government decree in regard to the mora- The following table gives a comparative torium on deposits. The bills were first issued survey of the advances of the bank and its in denominations of 100, 500, and 1,000 francs, note circulation during the war period: with interest at 5 per cent, payable in advance. Bank of France—Note circulation and advances to the State, August, lh±4~December, 1920. [In millions of francs.] 1914 1915 1916 1917 1918 1919 1920 v t S o a A t n a t d c h te e - e . s l c a N i t r i o c o t u e n - . v S t a A o t n a d c t t h e - e . e s c l N a ir t o c io t u e n - . v t S o a A t n a t d c h te - e e . s l c a N i t r i o c o t u n e - . v t S o a A t n a t d c t h e - e e . s l c a i t r i c o u n - . t S o t a t t h e e . " l c a N i t r i o c o t u n e - . | v t S o a A t a n t d t h c - e e e . s la c N t i o r io c te u n - . v S to a A t n a d t c t h - e e e s . l c a N i t r i o c o t u n e - . January 4,103 10,474 6,320 13,858 10,165 17,328 16,260 23,534 23,290 31,983 29,270 37,583 February 4,603 10,962 6,705 14,295 11,045 17,889 16,465 24,308 i 24,260 32,716 29,790 37,889 March 4,984 11,177 7,790 14,952 11,910 18,460 17,560 25,179 ! 25,380 33,772 30,310 37,569 April 5,543 11,584 8,355 15,278 12,385 19,010 19,235 26,395 ! 26,195 33, 978 29,320 37,688 May 5,888 11,828 8,725 15,435 13,160 19,479 20,415 27,303 26,720 34,061 30,095 37,915 June 6,433 12,105 9,240 15,806 13,410 19 823 22,085 28,550 27,090 34,442 30,065 37,544 July 205 6,683 6,813 12,593 9,710 16,091 13,645 20 202 22,540 29,148 1 27,160 35,025 29,630 37,696 August C1) 6,962 12,950 9,945 16,425 14,265 20 569 22,813 29,434 27,480 35,090 29,905 37,905 S O e c p to te b m er ber 2(,J1)00 "9," 299" 7 7, , 6 4 4 3 1 2 1 1 3 3 , , 4 8 5 6 8 8 1 1 0 0 , , 1 3 6 5 0 0 1 1 6 6 , , 7 5 1 8 4 9 1 1 5 4 , , 4 7 2 9 0 5 2 21 0 9 7 9 0 5 5 2 2 2 1;6 4 7 9 5 0 2 3 9 0 , , 9 7 2 8 2 2 2 2 8 9 , , 0 3 5 6 0 6 3 3 5 6 , , 7 9 8 7 7 4 3 30 0 , , 7 7 4 3 0 5 3 3 9 9 , , 0 2 8 0 4 8 November 8,176 14,278 8,355 16,119 15,925 22 691 20,710 29,072 29,785 37,424 30,765 38,807 December 3,900 10,043 5,931 13,201 9,400 16,679 15,920 22 337 20 876 30,250 29,455 37,275 30,780 37,902 1 The regular statements of the Bank of France were suspended during the first months of the war. 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178 FEDERAL RESERVE BULLETIN. FEBRUARY, 192i. However, on December 20, 1914, the rate of NATIONAL DEFENSE BONDS. discount for the three months' bills was reduced to 4 per cent. In February, 1915, the Minister of Finance Later in the war 5-franc and 20-franc 1-year issued two series of national defense bonds, one national defense bills were issued and sold at series to mature in 5 years and one in 10 the post offices, and in May, 1918, a 1-month years. There were two reasons for issuing national defense bill was created, with interest these bonds. The first was to convert the outpayable in advance at the rate of 3.60 per cent. standing national defense bills (which already If the 1-month bills were held for two months amounted to about 2,350 million francs) into the rate of interest rose to 3.90 per cent, and bonds which would mature after the war, and if they were held for three months it rose to the second was to hasten payments on the 3i 4 per cent; that is, to the rate on the regular- per cent redeemable rentes issued just before months bills. These 1-month bills were issued the outbreak of the war. Many of the subin denominations of 100, 500, and 1,000 francs. scribers to the loan, which on July 7, 1914, was As a large proportion of the national defense almost four times oversubscribed, had since bills purchased were for three months only, it the outbreak of the war been unable or unwillwas natural that the amount outstanding ing to pay up the amounts of their subscripshould fluctuate greatly. It never dimin- tions, and "unreleased" 3J per cent rentes ished, however, except at the time of consolida- were quoted on the Bourse at prices about 10 tion loans when, as may be seen from the or 15 centimes below those which had been graph on page 180, a great number were funded. released. Quotations for the latter had fallen The increase in the number of national to 82 (the price of issue was 91), when, about defense bills in circulation during 1919 was the middle of September, 1914, the Finance very striking. It has been stated above that Minister announced that they would be acthe Government was in great need of current cepted at their price of issue in exchange for the funds during that year, and in a speech before forthcoming short-term bonds and for all other the Chamber of Deputies on December 29, national loans until 1917. Quotations rose very 1919, M. Klotz, then Finance Minister, said shortly to 89, but dropped again to 80 in the that the Government realized about 24 billion second week in November. They recovered, francs from the sale of national defense bills however, before the end of the year to 86.15 and from January 1 to December 15, 1919. In in the last week in February, when the national other words, the national defense bills in circula- defense bonds were issued, had risen to 90.70. tion increased from 22 billion francs on Decem- There was no fixed subscription period for the ber 31,1918, to 46 billion on November 30,1919. national defense bonds, and they were sold During the first half of 1920 the amount in cir- continually until the issue of the 5 per cent culation decreased slightly, and on July 1 there consolidation loan of 1915. Their interest was were bills to the amount of 44 billion francs 5 per cent, that of the first year being payable outstanding. Later figures on this subject are in advance. not available. The following table shows the On October 31, 1915, the bonds outstanding fluctuations in the bills outstanding. represented a capital of 3,659 million francs, of which 2,739 million francs had been paid in National defense bills outstanding. cash or national defense bills. The bonds were [In millions of francs.] 1915—Jan. 10 1, 977 convertible into the 5 per cent loan, and by Mar. 5 3,188 January 1, 1916, only 632 million francs re- June 30 5, 593 mained in circulation. Oct. 31 8, 533 The national defense bonds were regularly Dec. 31 6 263 3 1916—Apr. 30 10,020 revived between consolidation loans through- July 31 13.167 out the period of the war, but at no time did Sept. 30 15i 075 their capital amount to more than 4 billion Oct. 31 11, 591 Dec. 31 12, 574 francs. On July 1, 1920, the 5-year bonds out- 1917—Mar. 31 15,353 standing totaled 166 million francs and the 10- Aug. 15 20,211 year bonds totaled 781 million francs, sums Nov. 15 22, 966 which seem relatively insignificant when com- Dec. 31 19, 521 1918—Oct. 31 30,000 pared with either the 44 billion francs of na- Dec. 31 22,335 tional defense bills in circulation at that date 1919—Mar. 31. 28, 401 or with the receipts from the consolidation June 30 33, 892 loans, which had reached 72 billion francs by Nov. 30 46, 500 1920—July 1 44, 200 July, 1920. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

FEBBUARY, 1921. FEDEKAL. KESERVE BULLETIN. 179 CONSOLIDATION LOANS. in January and to 90.95 in September, but in 1920 it has never risen above 89, and it closed Since the beginning of the war there have the year at 85.20. been six consolidation loans in France. They Quotations of the 4 per cent rentes of 1917 are as follows: rose in January, 1918, to 69.40, and stayed well above the price of issue until December, 1920. The 4 per cent 1918 series, however, Price of Nominal Real Date of issue. issue. yield. yield. Maturity. fluctuated from 74.90 to 69.25 in December, 1920. Per cent. Per cent. FOREIGN LOANS. November, 1915. 87.25 5 5.73 Perpetual. October, 1916.... 87.50 5 5.71 Perpetual. December, 1917.. 68.60 4 5.83 Perpetual.1 France began her foreign borrowing early in October, 1918.... 70.80 4 5.65 Perpetual. February, 1920.. 2100. 00 5 5 1980. the war. The invasion of her richest industrial November, 1920. 100. 00 6 6 Perpetual.3 and agricultural sections made it necessary for her to purchase a large proportion of her 1 Repayable in total or by series beginning Jan. 3,1943. 2 Repayable at 150. munitions and raw materials abroad, and hence s The Government promises not to convert or redeem this loan before to borrow money there. The following table '931. gives the most recent figures on French loans Three and one-half per cent rentes, national procured abroad. defense bills, and national defense bonds were accepted in payment for all these loans. Five French foreign debt as of July 1, 19SO.5 per cent rentes at 87.50 were received in pay- [In millions of francs.] ment for the third loan, and unpaid coupons Bills in England 31 issued or guaranteed by the Russian Government Bills issued in the United States 128 were accepted in part payment for subscriptions Bills issued to the British Treasury 12, 327 Bills issued to the Bank of England 81, 639 to the fourth loan. Four per cent and 5 per Bills issued to Japan 78 cent rentes were accepted in part payment for Short term credits in— the last loan. Spain.... 593 As the table presented above indicates, only Sweden 70 Norway 83 the last loan was issued, strictly speaking, at Argentina 145 par, for although interest on the 5 per cent loan Switzerland 140 of 1920 is paid only on the capital received, this Holland 115 loan must be repaid at 150 at its maturity. England 321 Uruguay 80 The difference between the amounts actually Anglo-French loan in the United States 61, 295 received in each loan and the amount upon Loan of the City of Paris 259 which interest is being paid is shown by the Loans of the cities of Lyon, Bordeaux, and Marfollowing table: seille 6 233 Advances of the American Treasury 14,428 Loan issued in Japan 258 Effective Bonds given to the American Government in ex- Nominal capital change for army stocks 2,072 Loans. capital (amounts (face value). paid in). Total7 ' 34, 296 It will be seen that the countries from which 5 per cent, 1915.. 15,205 13,308 5 per cent, 1916.. 11,514 10,082 France borrowed the most heavily are England 4 per cent, 1917.. 14,882 10,209 4 per cent, 1918.. 31,304 22,163 and the United States. 5 per cent, 1920.. 16,150 16,150 Borrowing in England began on October 15, 6 per cent, 1920.. 27,000 27,000 1914, when Kothschild & Son floated in London, Total.. 116,055 98,912 2 million pounds sterling of 1-year French Treasury bills. Shortly after that, another The graph on page 180 indicates the pro- issue of French Treasury bills for 10 million portion of the effective capital of each of these pounds was arranged by the Bank of England. loans paid in cash, in national defense bills, and The interest on each of these loans was payable in other securities. in advance at the rate of 5 per cent (which In November, 1917, when the third consoli- seemed at that time very high, as the first dation loan was authorized, it was voted that English war loans were marketed at 3 and 3£ the Finance Minister devote 120 million francs per cent). During the next year (that is, up a month to buying up consolidation loans upon to October 31, 1915) the product of the bills the Bourse. The quotation for 5 per cent sold in England rose from the 302 million francs rentes had fallen to 87.90 in November of that year. During 1918 the price fluctuated bes Documents Parlementaires—Sgnat, 1920, p. 346. tween 87 and 88.70, and in 1919 it rose to 93.25 6 Partially repaid since July 1. i Calculated at par. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

180 FEDERAL RESERVE BULLETIN. FEBRUARY, 1921. i BANK OF FRANCE NOTE CIRCULATION AND'ADVANCES TO THE FRENCH TAX RECEIPTS GOVERNMENT, 1914-1320. I3I4-J920 i i —•*•—NOTE CIRCULATION THREE-MONTHS MOWtiGAVEMOE. ADVANCES \ 3S 1.4 14 r' 35 30 A i Aft/" /£ 30 : / as 1.0 10 / ZS 20 / 1 0.8 0.8 / 2O /s r 0.6 0.6 t IS 10 04 04 /\ 10 t / s 0.2 02 j_ S 0 0 O 1314 13/5 1916 1317 1318 1313 1320 0 1314 191S 1316 131? 1316 1313 (320 PERCENTAGE OF FRENCH TOTAL RESOURCES OF g C0N50LIPATI0NLOANS RECEIVED THE FRENCH TRE4SURY, 1914-1319 S IN CASH, NATIONAL DEFENSE BILLS, ^ NATIONAL DEFENSE BILLS %* m ANP OTHER SECURITIES, ^™ AND OTHER FLOATING DEBT. ^ I9I5-I920. | SHORT TERM LOANS, , ADVANCES OFTHE BANK I OF FRANCE AND THE NATIONAL BANK0FALGER1A. DEFENSE TAXREC&PTS. BILLS. CONSOLIDATION OTNEft LOANS, SECURITIES. 10 o mm —a —i mm mm — o 0 -J"" ••• *M"1 ""— — W— rr 1314 131S 1316 1317 J31S 1313 I31S 1316 131? 1316 1313 1320 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

FEBRUARY, 1921. FEDERAL RESERVE BULLETIN. 181 yielded by the first two loans to 1,029 million of the St. Louis-San Francisco Railroad Co. as francs. By September 30, 1916 an arrange- collateral. By the terms of this loan the ment had been made with the British Treasury bankers who made it were allowed to buy up by which it agreed to discount, up to a fixed the railroad bonds which secured it if they so amount, French Treasury bills maturing tiiree wished.9 In the fall of 1916, four French years after the war. The product of these bills cities (Paris, Lyon, Marseilles, and Bordeaux) was to be used, except within certain specified floated loans in the United States which reallimits, for payments to be made within the ized 427,660,000 francs. This sum was placed United Kingdom. The Bank of England also at the disposal of the French Treasury, agreed to an arrangement wTith the Bank of although the cities concerned had a voice in its France whereby the latter sent gold to the disposal. amount of 24 million pounds sterling to Another operation of this sort was the so- England and received in return a credit of 72 called "French industrial credit" by which the million pounds, which should run until two years French Government assumed the responsiafter the war. This credit was transferred to bility for renewable bills drawn on a number the account of the French Government. The of French manufacturers. The credit following table shows the extent of these amounted to $50,000,000 and was guaranteed operations: by 18-month French Treasury bonds, and [In millions of francs.] by a deposit of 60,000,000 francs in neutral securities at the Bank of France. •! French Treasury bills On April 1, 1917, another $100,000,000 loan discounted by- was floated in New York, this time at h\ per cent. As it was sold at 97, its yield was only British i Bank of 497,927,000 francs. From that time on, until Treasury. ! England. the fall of 1919 the only loans procured by France in the United States were the advances September 30.1916 i 1,924 1,362 August2,1917 i 6,174! 1,816 made by the American Treasury. By May 31, December 31, 1918 ! 10,594 1,639 July 1,1920 ! 12,327 1,639 1917, these advances had reached $100,000,000 1 1 (518,000,000 francs) and they increased steadily from that time on. The loans placed in the United States were more diversified in character. They began with an issue of 5 per cent 1-year Treasury bills in the fall of 3914.8 In 1915 the Anglo- International Credits. French loan was placed here in order to imf>rove exchange rates and to provide for The December BULLETIN contains the resourther purchases. lutions proposed by the Commission on Public On May 4, 1916, the French Finance Minister Finance of the Brussels Conference, including requested all French holders of neutral secu- among other recommendations those of M. rities made out to "bearer" to lend them to Ter Meulen for an international commission to the Treasury in order that they might be used provide credit guarantees in international as the basis for loans in neutral countries. trade. The scheme proposed by M. Ter On May 24, 1916, a further decree was issued Meulen has since been revised by the Proapplying this request especially to United visional Economic and Financial Committee States securities. The owners of the borrowed of the League of Nations and approved in its securities received in exchange for them a revised form by the League. A comparison of negotiable instrument which might be bought the provisions of the scheme as originally recand sold on the Bourse, and, beside their ommended and as revised shows that the regular dividends, a bonus of 25 per cent of revision gives greater power to the commisthe annual revenue of the securities lent. As sion than was the case before, providing it a result of this borrowing of securities, the with the authority not only to decide upon French Government arranged a loan in NewT the value of the assets offered by the borrow- York in July, 1916, through the American ing country but also to administer those Foreign Securities Corporation. The amount assets if necessary. Provision is also made for of the loan was $100,000,000 (518,000,000 the commission to decide whether the proposed francs) and the interest *1\ per cent.9 In imports are essential to the borrowing govern- September of the same year a one-year 6-per- ment, and to regulate the bond issues. Furcent loan for $12,300,000 (63,714,000 francs) thermore, the committee recommends that the was procured in the United States, with bonds League of Nations not guarantee the participants in the scheme against financial loss, 8 Documents Parlementaires,, Senat, 1915, p. 275. although urging that every effort be made to » Documents Parlementaires Senat, 1917, p. 361. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

182 FEDERAL RESERVE BULLETIN. FEBRUARY, 1921. safeguard participants in it. The text of the 8. The revenue from the assigned assets scheme as revised follows: shall be applied as follows to the service of the 1. In order that impoverished nations which bonds: under present circumstances are unable to (1) Out of these revenues the commission obtain accommodation on reasonable terms in shall purchase and hold, or the participating the open market may be able to command the Government shall satisfy the commission that confidence necessary to attract funds for the it has purchased and holds, foreign currencies financing of their essential imports, an inter- sufficient to provide— national commission shall be constituted under (a) Cover for the coupons falling due in the the auspices of the League of Nations. next year of all bonds at any time outstanding 2. The commission snail consist of bankers in each of such currencies. and business men of international repute, ap- (b) A sinking fund calculated to redeem at pointed by the Council of the League of Na- maturity 10 per cent of the bonds outstanding tions, and shall have discretion to appoint in each of the different countries. agents and sub commissions and to devolve (t) A reserve in such foreign currency or upon them the exercise of its functions. currencies as the international commission may 3. The Governments of countries desiring determine for the redemption of any bonds to participate shall notify the commission sold in accordance with paragraph 16. what specific assets they are prepared to (2) Any surplus remaining after the proassign as security for commercial credits to be vision of these services shall be at the free granted by the nationals of exporting countries. disposal of the participating Government. 4. The commission, after examination of 9. The participating Government will be these assets, shall determine the gold value of free either to pledge its own bonds as collateral the credits which it would approve against the for credits for approved imports on its own security of these assets. account or to lend the bonds to its nationals 5. Tne participating Governments shall then as collateral for credits for approved imports be authorized to issue bonds to the gold value on private account, and for the latter purpose approved by the commission. The bonds shall will be free to fix such terms, including the sebe in such form, with such date of maturity curity, if any, to be given, as it may think fit. and rate of interest, as the commission may These terms shall be communicated to the decide, and shall, in particular, enumerate the commission. The bonds shall not be used for assets pledged against the bonds. The de- any other purpose than those specified in this nomination of each bond and the specific cur- clause. rency in which it is to be issued shall be deter- 10. Each bond shall before issue be countermined by the participating Government in signed by the commission in proof of regisagreement with the commission, in accordance tration. with the conditions applicable to the particular 11. The fundamental purpose of the scheme transactions in respect of which they are being to facilitate and expedite the import of issued. such raw materials and primary necessaries 6. The service of these bonds, which will be as will enable the borrowing countries to reobligations of the issuing Government, shall be establish production, especially for export, specifically secured out of the revenue of the bonds secured on the assigned assets shall assigned assets. not be utilized as collateral for credits for the 7. The assigned assets shall be administered import of other commodities, provided that by the participating Government or by the where the commission is satisfied that the international commission as (a majority of) the import of such other commodities will assist Council of the League of Nations may deter- in securing the above purpose it shall have the mine on the proposal of the international com- discretion to permit special exceptions to the mission. Nevertheless, in cases where the above rule subject to such conditions as it administration of the assigned assets is in the may think fit. hands of the participating Government, the 12. For each borrowing country the cominternational commission at any time may, mission will draw up, in consultation with the and in the event of default shall, require the participating Government, a schedule of apparticipating Government to transfer the proved imports which will be regarded as administration of the assets to itself. falling within the definition of raw materials The participating Government shall have and primary necessaries. the right to appeal to the Council of the League 13. Particulars of each transaction must be of Nations against this requirement, and the registered with the commission, which, before decision of the Council of the League of Nations countersigning a registered bond, will satisfy on those questions shall be binding. itself that the credit is for an approved import, Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

FEBRUARY, 1921. FEDEKAL RESERVE BULLETIN. 183 and that the period for which it is proposed SHIPPING BEFORE THE WAR. to be granted is a reasonable one. 14. The same conditions as govern the The merchant fleets of the world as they stood pledge of its bonds as the collateral for credits in 1914 were of comparatively recent growth. for imports on private account shall apply in The total tonnage in 1890 was 22,151,651 gross, cases where the participating Government but by June, 1914, it had risen to 49,089,552 pledges its own bonds as collateral for imports gross. Large as was this increase, it does not on Government account. begin to tell the story of the remarkable trans- 15. After having received bonds duly coun- formation that took place in the character of tersigned, the importer will pledge them with the fleets during that time. In 1890 over 40 the exporter. per cent of the world's merchant shipping con- 16. Pledged bonds shall be dealt with as sisted of sailing vessels, while by 1914 the follows: amount had dropped to an insignificant 8 per (a) In the absence of any failure by the cent of the total, so complete was the substituimporter to fulfill his contract with the ex- tion of steam in place of sails for motive power. porter, the coupons on their due date and the In bringing about this result steam tonnage bonds as they are released shall be returned was almost quadrupled during the same time to the importer, who shall return them to his from 12,985,372 tons to 45,403,877 tons. How Government forthwith. significant was the change from sail to steam may better be understood from the fact that (b) In the event of the importer not fulsteamers, on account of their greater speed and filling the terms of his contract, the exporter capacity, are estimated to have three times the (or his assigns) may either hold the bonds carrying efficiency of sailing vessels of the same until maturity, or if he prefers he may, at any tonnage. Coincident with the decline of sailtime, sell them in accordance with the laws ing ships, in which the United States had led and customs of his country, providing that the world for many years, our merchant mabefore the bonds are sold a reasonable opporrine, although showing an absolute growth, fell tunity shall be given to the issuing Governfrom 20 per cent of the world's total in 1890 to ment to repurchase them by paying to the less than 10 per cent of the total in 1914. exporter the amount of his claim. The pro- Along with this came the virtual elimination of ceeds of such sale shall be applied by the the United States as a factor in carrying her exporter toward covering his claims against own imports and exports, the proportion of the the importer. Any surplus not required for total sea-borne commerce carried in American this purpose shall be accounted for by the bottoms dropping from 65 per cent in 1860 to exporter to the participating Government. 12.9 per cent in 1890 and to 9.7 per cent in 1914. (c) Any coupons or bonds returned to the participating Government or purchased by The rapid expansion of world tonnage which such Government shall be forthwith canceled has just been referred to had settled down in in accordance with the regulations to be the years just prior to the war to a fairly steady prescribed by the international commission; rate. At that time the increase in tonnage canceled bonds may subsequently, with the amounted to about 5 per cent annually, while approval of the commission, be replaced by the launchings of new vessels were approxiother bonds either in the same or in a different mately 7 per cent of the tonnage afloat the currency, in accordance with the conditions previous year. The difference of 2 per cent governing the original issue of bonds. represents the proportion of the total tonnage that was lost or broken up each }^ear. The position of the world's merchant marine at the outbreak of the war is shown in Table 1, THE WORLD'S SHIPPING: A STATISTICAL which lists the various countries according to SURVEY. the amount of their steam tonnage. It will be ! seen that in 1914 the British Empire owned This is the first of a series of articles taking nearly half of the world's shipping, with Gerup in turn the various elements in the interna- many and the United States far behind in sectional trade balance of the United States. The ond place and third place, respectively. The present article is intended to lay the foundation other chief maritime nations, Norway, France, lor a succeeding article on the shipping earn- Japan, Holland, and Italy, in the order named, ings and payments of the United States, which followed with merchant fleets of not far from constitute part of our so-called invisible exports equal size, but all considerably behind the three and imports. It is believed that the shipping leaders. If we consider only seagoing steamposition of the United States will be more clearly ers, the United States was still in third place, apparent when considered in the light of the slightly ahead of Norway and France, yet widely world shipping situation. separated from Germany. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

184 FEDERAL RESERVE BULLETIN. FEBRUARY, 1921. TABLE 1.—Steam, tonnage (merchant ships of 100 tons and The figure of 7,753,311 gross tons reported over) owned by principal maritime countries in June, by Lloyd's Register for the United Kingdom 1914. closely corresponds with the official return just (Lloyd's Register of Shipping.) quoted. The losses of the United States, on the other R 1 a 91 n 4 k . , Country. N of u s m h b ip e s r . to G nn ro a s g s e. t P o o f e n r w n c a o e g r n l e d t . hand, were comparatively light. Our merchant marine was of course much smaller than Britain's, and until February, 1917, our ships were United Kingdom.. 8,587 18,892,089 41.6 British Dominions. 1,536 1,631,617 3.6 supposed to be immune from submarine attack. Germany 2,090 5,134,720 11.3 United States: TABLE 2.—Losses of merchant steamers during the World War. Seagoing 1,178 2,069,637 4.6 Great Lakes. 579 2,260,441 5.0 (Lloyd's Register of Shipping). Total, United States.. 1,757 4,330,078 9.6 N Fr o a r n w c a e y .. . 1 1 , , 6 0 5 2 6 5 1 1, , 9 9 2 5 2 7 , , 2 3 8 5 6 3 4 4. . 2 3 Flag. ! ( W gr a o r s s lo to ss n e s s ). | Ma ^ rin j e (gross T to o n ta s l ). P of e r w c o e r n ld t Japan 1,103 1,708,386 3.8 (gr0 s) loss. Holland. 709 1,471,710 i 3.2 Italy 637 1,430,475 I 3.1 Austria-Hungary. 433 1,052,346 j 2.3 American j 343,090 ' 187,948 : 531,038 3.7 10 Sweden 1,088 1,015,364 2.2 Belgian 85,842; 19,239! 105,081 .7 11 Spain 589 883,926 | 2.0 Brazilian ; 20,328 ' 10,951 31,279 .2 12 Russia 747 851,949 i 1.9 Danish : 210,880 34,422 245,302 1.7 13 Greece 407 1.8 Dutch 201,797 27,244 229,041 1.6 14 Denmark 576 770,430 1.7 French 722,939 84,138j 807,077 5.7 15 Belgium 173 341,025 .8 Greek 349,661 65,014 414,675 2.9 1 1 1 1 8 9 6 7 C B A T h u r r a g i r l z k e e i n e l y tina 2 3 1 9 4 4 9 5 4 2 1 3 1 1 ISR 9 0 1 OR 6 7 6 , , , , 6 3 4 So 1 0 7 Q\) 7 7 Z 3 9 . . ..2 7 3 A4 J N I S t a p a o p a l r a i n w a n i n e s e g h se i an i 7 9 1 1 4 7 1 5 5 6 9 7 , , , , 7 5 7 5 6 1 6 2 6 6 4 7 1 1 1 1 5 8 9 5 0 0 5 , , , , 6 2 3 2 6 3 6 4 9 5 9 4 ! ; ; ! 1, 2 2 8 1 7 3 6 7 0 1 7 1 , , , , 0 4 8 7 3 3 6 6 3 5 2 0 6 1 8 1 . . . . 1 2 7 9 20 China 73 93,095 .2 Swedish ! 180,415 83,586 i 264,001 1.9 2 2 1 2 C Po ub rt a ugal 1 5 0 3 5 9 5 2 8 , , 4 4 2 5 9 0 . . 2 1 U B n ri i t t i e s d h K D i o n m gd in o i m o ns... j i 7, 1 75 6 3 9 , , 3 7 1 1 1 2 1,032,779 I 8, 2 7 6 8 9 6 , , 5 0 7 9 8 0 6 1 1 . .8 9 23 Roumania 34 56,164 .1 24 Mexico 48 45,069 .1 Total J 12,037,548 2,186,704 14,224,252 100.0 2 2 5 6 U Pe ru ru g . uay 4 1 2 9 3 2 8 8 , , 8 7 3 7 7 1 . . 1 1 27 i O Si th a e m r countries. 7 1 4 1 5 1 4 2 , ,3 7 6 9 0 8 . . 0 1 By comparing the total tonnage given in Table 2 with the fleets of the same countries for Total (world). 24,444 45,403,877 100.0 1914 in Table 1, it is possible to compute the proportion of the 1914 merchant fleets lost by WAR LOSSES. the principal allies and neutrals during the World War (Table 3). Norway and Italy suf- The losses of merchant steamers of the allies fered relatively the most, each losing 60 per and neutrals during the war from August 4, cent of her 1914 tonnage. Then come Greece 1914, to November 11, 1918, as compiled by with 50 per cent, United Kingdom 46 per cent, Lloyd's Register, are given in Table 2. The and France 42 per cent. Of the seagoing steam total loss of over 14,000,000 gross tons is divided tonnage of the United States in 1914, 25 per between losses due to enemy action, 12,000,000 cent was destroyed during the war. tons, and losses due to marine risk, 2,000,000 tons. The nation hardest hit in aggregate TABLE 3.—Proportion of 1914 merchant fleets lost by printonnage lost was Great Britain, which suffered cipal allied and neutral nations during World War. the destruction of over 8,000,000 tons, more than all the other nations together. A report Fleet in Losses dur- Per cent submitted to the House of Commons by the June, 1914 ing World of 1914 British Ministry of Shipping gives the war (grosstons). Wa to r n (g s) r . oss fleet lost. losses of the British merchant marine in detail. They may be summarized thus: American (seagoing). 2,069,637 531,038 25.7 Belgian 341,025 105,081 30.8 Brazilian 307,607 31,279 10.2 Danish 770,430 245,302 31.8 o N f B um ri b ti e s r h to G nn ro a s g s e. D F G r u r e e t n e c c k h h 1 1, , 9 4 8 2 7 2 2 1 0 , , , 2 7 8 8 1 61 6 0 2 4 8 1 2 0 4 9 7 , , , 6 0 0 7 7 4 5 7 1 4 5 1 2 0 5 . . . 0 5 6 vessels. Italian 1,430,475 861,435 60.2 Japanese 1,708,386 270,033 15.8 Norwegian 1,957,353 1,171,760 59.9 Sunk by submarines... 2,099 6,635,059 Spanish 883,926 237,862 26.9 Sunk by mines 259 673,417 Swedish 1,015,364 264,001 26.0 Destroyed by cruisers.. 117 442,702 United Kingdom 18,892,089 8,786,090 46.5 Destroyed by air craft.. 4 7,912 British Dominions... 1,631,617 269,578 16.5 Total 2,479 7,759,090 Total. 35,222,766 14,224,252 40.4 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

FEBRUARY, 1921. FEDERAL RESERVE BULLETIN. 185 NEW VESSELS LAUNCHED. launching seagoing ships increased from 61 at the entry of the United States into the war in As an offset against war losses, there were 1917 to 341 just before the armistice. During launched in the four calendar years 1915 to the same time the number of launching ways 1918 a total of 11,274,948 gross tons of ship- had been increased from 235 to 1,284, repreping, of which only about 3 per cent were senting more than twice the number of ways sailing vessels. The end of the war, there- in the rest of the world. The Shipping Board's fore, saw a world's shortage of about 3,000,000 building program continued into 1919, so that tons, making no allowance for normal annual launchings in the United States totaled 1,051 increases nor for those worn-out vessels which ships of 4,075,385 gross tons for that year, during ordinary times would have been more than half of the worlds' production. Acscrapped but which were kept in service under cording to figures made public recently by stress of war necessity. Taking these and Lloyd's Register of Shipping, the world's outother considerations into account, Lloyd's put in 1920 was somewhat less than in 1919, Register of Shipping estimated in 1919 that due to a return toward a more normal level ''the world has lost through the war no less of production in the United States. This than 8,500,000 tons gross of shipping, which country, however, was still the leader in ship represents a deadweight carrying capacity of launchings with 42 per cent of the world's about 12,500,000 tons." total as against 35 per cent credited to the The output of shipyards throughout the United Kingdom. world has been so great since the armistice, A comparison of ship launchings in the however, that the shortage in ships has been United States and in the United Kingdom, largely reduced if it has not disappeared al- France, Holland, Italy, and Japan will be found together. Especially is this true of the twoin Table 4. chief shipbuilding nations, Great Britain and the United States. At the close of hostilities WORLD SHIPPING AT THE END OF THE WAR. this country was just getting into its stride as The position of the various nations in rea shipbuilder. From being an almost negligi- spect to shipping at the close of hostilities is ble factor in ship production before the war, shown in Table 5. For the sake of comparison launching some 200,000 tons a year, we be- with the prewar situation the tonnage as of came for a time the greatest shipbuilding na- June, 1914, is given, together with the increase tion of the world with a construction record of or decrease from that date. over 3,000,000 tons in 1918. The story of the It is strikingly shown that the United States standard fabricated ship, whose similar parts was the only country of the world (with the could be produced by the hundred in the steel exception of Brazil in lesser degree) to make mills of Pennsylvania, shipped by rail to yards important gains in her merchant marine duron the Atlantic, Gulf, and Pacific coasts, or ing the war. The loss that shipping as a whole the Great Lakes, and there assembled, need sustained is of course far greater than Table not be repeated here in detail. Under the 5 indicates, for the war put a stop to the vast construction program of the Emergency normal expansion and replacements of peace Fleet Corporation of the Shipping Board, the times. That the world shortage is fast being number of shipyards in this country capable of made up has already been indicated. TABLE 4.—Number and gross tonnage of ships (100 tons and over) launched in specified calendar years, by countries. (Lloyd's Register of Shipping.) United Other United States. Kingdom. France. land. Italy. Japan. countries.! Total. Year, j i Num- Gross i Num- Gross Num- Gross 'Num-j Gross 'Num- Gross Num-1 Gross Num- Gross Num-1 Gross ber. tonnage. ber. tonnage, ber. tonnage.! ber. tonnage.\ ber. tonnage. ber. j tonnage. ber. tonnage, ber, i tonnage 1892 2 73 * 62,588i 681 1,109,950 j 17,228 i 14,368 21 13,888 242 140,023 1,051 ! 1,358,045 1902 251 379,174 I 694 1,427,558 192,196 69,101 62 46,270 53 27,181 377 361,275 1,650 I 2,502,755 1912 174 284,223i 712 1, 738,514 110,734 99,439 27 25,196 168 57,755 446 585,908 1,719 ! 2,901,769 1913 205 276,448 688 1,932,153 176,095 104,296 38 50,356 152 64,664 483 728,870 | 1,750 I 3,332,882 1914 94 200;762 656 1,688,553 114,052 118,153 47 42,981 32 85,861 327 607,391 1,319 | 2,852,753 1915 84 177,460 327 650,919 25,402 , 113,075 30 22,132 26 49,408 151 163,242 743 1,201,63* 1916 211 504,247 306 608,235 42,752 180,197 10 56,654 55 145,624 172 150,371 ! 964! 1,688,080 1917 326 997,9191 286 1,162,896 18,828 148,779 11 38, 906 104 350,141 233 220,317 i 1,112 ; 2,937,786 1918 929 3,033,030 301 1,348,120 13,715 74,026 15 60, 791 198 489,924 346 427, 838 |1,866 I 5,447,444 1919. 1,051 4,075,385 612 1,620.442 32,633 137,086 32 82,713 133 611, 883 521 584,407 i 2,483 i 7,144,549 19203 1 ! 2,476,000 .- 2,055; 000 93,000 . 183,000 133,000 458,000 465,000 i .' 5,861,000 1 No returns from Austria and Germany after July, 1914. 3 Figures for 1920 approximate and subject to revision. * No returns from Great Lakes. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

186 FEDERAL RESERVE BULLETIN. FEBRUARY,, 1921. TABLE b—Steam tonnage (ships of 100 tons and over) of the TABLE 6.—Steam tonnage (merchant ships of 100 tons and principal allied and neutral countries at beginning and over) owned by principal maritime countries in June,, 1920, close of the World War. as compared with June, 1919. [Chamber of Shipping of the United Kingdom: Annual report, 1918-19.] [Lloyd's Register of Shipping.] Country. July, 1914 I Oc 1 t 9 o 1 b 8 er, In d c e r c e r a e s a e s e or Per cent (gross tons). (gross tons). (grosstons). of 1914. June, 1920. June, 1919. United States (sea- B B D e r e g a l n o g z m i i i n l u g a m r ) k ! j | 2,0 3 3 7 6 0 4 7 9 7 1 0 , , , , 6 6 0 4 3 0 2 3 7 7 5 0 5,1 1 5 6 1 1 8 0 6 2 9 8 , , , , 5 9 9 2 2 4 6 4 1 0 3 5 + - + - 3 ,0 2 1 1 4 0 5 5 6 0 1 7 , , , , 8 6 0 4 8 3 6 9 4 8 2 0 + - + - 1 6 2 4 4 5 7 0 4 . . . . 2 2 5 3 Country. | ! N b sh e u i r m p o s - f . to G nn ro a s g s e. c w e t P n o o e t n r r l - d of s N b h e u i r p m o s - f . to G nn ro a s g s e. c w t e P o o n e n r t r l - o d f Holland ! 1,471,710 1,030,137 - 441,573 - 30.0 nage. nage. France | 1,922,286 1,536,730 - 385,556 - 20.0 Greece j 820,861 259,174 - 561,687 - 68.4 Italy I 1,430,475 989,575 - 440,900 - 30.8 United King- j 8,11318,110,653 | 33.6 j 7,535 16,344,843 34.1 Japan j 1,708,386 2,039,794 + 331,408 + 19.4 dom. Norway i 1,957,353 1,414,927 - 542,426 - 27.7 British Domin-| Spain I 883,926 671,425 - 212,501 - 24.0 ions j 1,666)2,032,227 | 3.8 | 1,610 1,863,365 3.9 Sweden 1 1,015,364 810,489 - 204,875 - 20.2 United Kingdom ! 18,892,089 15,031,375 -3,860,714 - 20.4 United States.. 4,110 14,574,375 j 27.0 3,678 11,983,256 25.0 British Dominions.. - i 1,031,617 1,828,561 + 196,944 + 12.1 Seagoing 3,644 12,455,807 23.1 3,201 9,823,562 20.5 Great Lakes. 466 2,118,568 3.9 477 2,159,694 4.5 Japan 1,940 2,995,878 5.6 1,418 2,325,266 4.9 THE WORLDS FLEETS OF TO-DAY. France 1,40012,963,229 5.5 1,099 1,961,753 4.1 In order to show what progress has been I N ta o l r y way 1,5 7 9 8 6 9 | 1 l 2 ,9 ,1 7 1 9 8 , , 5 4 6 2 0 9 3 3 . . 7 9 1,4 5 3 2 3 3 1 1 , , 2 5 3 9 7 7 , , 8 2 4 9 4 9 2 3 . . 6 3 made toward repairing the war losses of ship- Holland 92211,773,392 3.3 870 1,573,720 3.3 Sweden 1,072! 996,423 1.8 1,033 916,627 1.9 ping, Table 6 has been compiled from Lloyd's Spain 601i 937,280 1.7 486 709,095 1.5 Register of Shipping, giving the steam tonnage 1 1 1 0 I ! D Ru e s n s m ia ark 5 52 2 4 2i i 7 5 1 0 9 9 , , 4 5 4 6 4 4 1 1 . . 0 3 4 52 4 4 6 6 51 3 4 1 , , 4 3 7 3 6 1 1 1 . . 3 1 owned by the principal maritime countries in 12 | B G r r a e z ec il e 2 3 9 4 4 8 | ! 4 4 9 7 6 5 , , 9 2 9 2 6 4 . . 9 9 3 2 7 0 7 5 2 4 9 9 0 2 , , 7 5 9 8 3 8 1 . . 6 0 June, 1920, and also in June, 1919. Compared III Germany 901i 419,438 1,543 3,247,253 with a gross steam tonnage in 1914 of 45,400,000, 15 B Po e r lg tu iu g m al . 2 1 0 4 8 3 : 2 4 3 1 5 0 , , 6 4 9 2 8 3 1 1 3 4 3 6 2 3 3 0 0 6 , , 2 3 2 7 6 9 .5 the total for 1919 was 47,900,000, while it had 16 China 102 142,834 98 130,972 .3 17 Argentina 150 130,118 160 133,333 .3 risen to 53,900,000 by June, 1920. At the 18 Chile 90 88,612 91 82,812 .2 latter date, therefore, the increase in the world's 2 1 0 9 F R i o n u la m n a d nia 1 3 2 8 1 8 74 2 , , 1 2 1 9 7 5 1 3 0 4 9 7 6 3 3 , , 5 36 9 0 3 . . 1 1 shipping since 1914 was about 19 per cent. 21 Peru 27 66,138 22 56,171 .1 22 Uruguay 34 51,457 32 33,059 .1 The net gain in world tonnage of 8,500,000 23 Cuba 40 45,324 39 39,636 .1 since 1914 has been brought about chieflv 24 Ex H - u A ng u a s r t i r a o n - . .{ ! 328 i 712,856 1.5 through the addition of 10,200,000 tons to Turkey | 102 98,817 .2 Other countries' 265 200,344 181 131,531 .3 United States shipping. Japan has 1,300,000 Not recorded.. | 497 1,275,216 131 j 115,153 .2 tons more than in 1914 and is now in third Total (world) 26,513 53,904,688 100.0 124,386 47,897,407 100.0 place, following the United Kingdom and the United States. France and Italy, by receiving Of those countries that have suffered net portions of the merchant fleets of the Central losses of shipping since 1914, Germany and Powers, show gains of 1,000,000 and 700,000, Austria are the most conspicuous examples. respectively. These gains in the steam ton- The latter's merchant fleet has been surrennage of the various countries and the losses dered to Italy since the armistice, while Gerpartially offsetting them may be more clearly many's ships have been divided among ^ the set forth as follows: allied powers. Under the armistice conditions [Gross tons.] and the peace treaty, Germany has been com- Rank, pelled to surrender all her merchant vessels of 1920. Country. Net gain. Net loss. 1,600 tons gross and over, one-half of her steamers between 1,000 and 1,600 tons, besides United Kingdom 800,000 British Dominions 400,000 one-quarter of her fishing fleet. In addition U Ja n p i a te n d States 1 1 0 , , 3 2 0 0 0 0, , 0 0 0 0 0 0 to this, Germany has agreed to build for the France 1,000,000 allies, subject to specifications to be furnished Italy 700,000 Norway by them, shipping of not to exceed 200,000 Holland 300,000 gross tons annually for five years. The opera- Sweden Spain 100,000 tion of these conditions reduces Germany's Denmark 100,000 Russia 300,000 participation in the world's carrying trade for Greece 300,000 the present to very small proportions, and then Brazil 200,000 Germany 4,700,000 mostly through chartering foreign vessels. A Be u l s g t i r u o m -Hungary and Turkey 100,000 "i,166,666 A comparison of Table 6 with Table 1 fur- All other countries and "not re- thermore discloses some interesting changes corded" 1,500,000 in the relative shipping position of the various Total ; 15,800,000 7,300,000 Net gain, 1920 ! 8,500,000 countries. Holland and Belgium are the only Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

187 FEBRUARY, 1921. FEDERAL RESERVE nations that in June, 1920, occupied approxi- fallen off since the third quarter of 1919, mately the same positions which they held foreshadowing a somewhat reduced output in before the war. The United Kingdom, it is true, 1920. As recently announced the total for last is still in first place as before; but her propor- year was a little under 5,900,000 gross tons tion of the world's steam tonnage has dropped (see Table 4). A detailed statement of the from 41.6 per cent to 33.6 per cent, while during shipping undier construction in the principal the same time that of the United States has risen shipbuilding countries at the end of each from 9.6 per cent to 27 per cent of the world's quarter from September 30, 1918, to date, will total. As a result the United States is now in be found in Table 7. For the sake of comparisecond place instead of Germany. France and son the quarter ending June 30, 1914, the last Italy, and especially Japan, are now in aperiod available before the war, is also given. position, so far as their merchant marines are The course of shipbuilding in the United concerned, to carry on a larger proportion of States has been somewhat different. The peak the world's trade than in 1914. On the other of our production came earlier, and the subsehand, such countries as Norway, Sweden, quent decline in our tonnage under construc- Denmark, Russia, Spain, and Greece are in a tion has been rapid. The reason, of course, less favorable position than they were prior lay in the withdrawal of the Government from to the war, in that their proportion oi thethe shipbuilding industry soon after the world's shipping has been much reduced, while armistice. On the completion of vessels con- Russia and Greece have also suffered a severe tracted for by the Shipping Board, many yards decline in absolute amount of steam tonnage. have been compelled to shut down for lack of orders from private steamship interests. The result has been that the United Kingdom, with CURRENT CONDITIONS. many orders from British steamship companies, Since the armistice the world's shipbuilding has been forging ahead steadily and passed has continued at an unprecedented rate. Theus at the end of 1919 in construction under way. high-water mark was reached in the quarter Britain's total on September 30, 1920, of ending September 30, 1919, when, according 3,731,098 tons, represented half of the shipto the shipbuilding returns of Lloyd's Register, building then going on in the world. the enormous total of 8,048,582 gross tons of One department of shipbuilding in which shipping was under construction in various the United States has been achieving especially parts of the world. The amount of shipping important results is the construction of oil under construction on a given date is of course tankers. In 1920 we far outranked all other reflected in the figures of actual output some countries, with nearly 90 per cent of the months later. The output of shipyards throughworld's production in that class. The figures out the world (as represented b}^ ships for 1920, as made public by Lloyd's Register launched) has already been given in Table 4. of Shipping, follow: The world's output of 3,300,000 tons in 1913, after dropping to low levels in the first years rr to? Tons. United States 567, 000 of the war, was increased to 5,400,000 in 1918 United Kingdom 65,400 and to 7,100,000 in 1919. The total tonnage Other countries 8, 000 under construction in the world has gradually Total 640, 400 TABLE 7.—Number and gross tonnage of ships (100 tons and over) under construction in various countries on specified dates (Lloyd's Register shipbuilding returns.) I United Other United States. Kingdom. France. Holland. Italy. Japan. countries.1 Total. Date. Num- Gross Num Gross j Num- Gross Num- GLOSS Num- Gross |Num- Gross Num- Gross Num GiOSS ber. tonnage. ber. tonnage. | ber tonnage. ber. tonnage ber. tonnage.j ber. tonnage. ber. tonnage. ber. tonnage. | 1914 June 30. 45 148,515 477 1,722,124 I 50 226,779 116,137 | 32 69,098 18 91,510 263 788,727 3,162,890 1918 Sept. 30. 1,020 3,382,709 383 1,746,933 I 39,700 105 204,530 56 132,770 127 260,875 446 603,871 2,144 6,371,388 Dec. 31. 997 3,645,919 424 1,979,952 i 51,690 113 212,512 56 133,010 116 278,140 471 620,766 2,189 6,921,989 1919 Mar. 31. 1,155 4,185,523 657 2,254,845 i 109,795 87 182,308 59 135,034 74 254,835 437 673,926 2,502 7,796,266 June 30. 994 3,874,143 782 2,524,050 i 109,615 88 219,332 96 271,620 63 282,060 465 736,947 2,526 8,017,767 Sept. 30. 767 3,470,748 781 2,816,773 i 174,736 113 288,042 108 285,928 64 299,600 431 712,755 2,328 8,048,582 Dec. 31. 647 2,966,515 757 2,994,249 216,775 126 328,338 125 314,547 309,474 354 731,465 2,138 7,861,363 1920 Mar. 31. 535 2,573,298 865 3,394,425 i 240,225 141 366,581 165 355,241 285,676 366 726,504 2,205 7,941,950 June 30. 414 2,105,956 941 3,578,153 ! 265,302 153 398,915 166 353,914 254,260 370 764,404 2,195 7,720,904 Sept. 30. 312 1,772,193 961 3,731,098 | 165 423,400 156 365,313 262,407 350 718,152 2,105 7,565,171 i No returns from Austria and Germany after 1914. 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188 FEDERAL RESERVE BULLETIN. FEBRUARY, 1921. The expansion of the shipbuilding industry State Banks and Trust Companies Admitted. which has been noted in Great Britain since The following list shows the State banks and trust the war seems to have taken hold of the imagcompanies which have been admitted to membership in ination of the other nations of the world. the Federal Reserve System during the month of Janu- Japan, which before the war was hardly a ary, 1921. factor at all, is now in the front rank as a ship- One thousand five hundred and one State institutions are now members of the system, having a total capital of builder. Holland has always been noted as a $536,117,019, total surplus of $516,877,144, and total reshipbuilding nation, but is now turning out sources of $10,344,901,733. new tonnage faster than ever before. In France during the war the shipyards were Total devoted to the production of munitions and Name of bank. Capital. Surplus. resources. war supplies, so that shipbuilding was at a standstill. The industry is already almost up District No.l. to prewar output, and the French Government Hub Trust Co., Boston, Mass $500,000 $60,000 II, 878,718 has declared itself in favor of materiallv aiding District No. 5. in further expansion. Italy likewise has laid Bank of Washington, Washingout a number of new shipyards, and the ton- ton, N.C 150,000 37,500 1,365,457 nage under construction is greater than ever District No. 6. before. Much the same condition applies to other nations, especially the Scandinavian On v v il i l l e l , e A B la ank & Trust Co., Orr- 25,000 26,500 202,612 group. In fact, the nations of the world, Roanoke Banking Co., Roanoke, Ala 200,000 200,000 1,515,512 most of them, seem to be making extraordinary Citizens State Bank, Marianna, efforts toward securing a definite and a larger Fla 30,000 10,000 407,542 The Bartow Bank, Bartow, Ga... 25,000 5,000 270,163 share in the world's carrying trade. This Citizens Bank & Trust Co., Bainbridge, Ga 100,000 20,000 693,672 condition has already been reflected in sweep- Bank of Candler County, Metter, ing cuts in ocean rates in the past few months. Ga 25,000 25,000 Bank of Portal, Portal, Ga 25,000 145,199 Signs are not wanting that a period of intense Walton County Bank, Social Circle, Ga 50,000 18,000 265, S57 competition is in prospect, and for a time an Citizens Bank, Hohenwald, Tenn. 35,000 153,578 excess of ships above the immediate needs of District No. 7. commerce. Already shipping interests are Lake View State Bank, Lake realizing that ship production has been over- View, Iowa 25,000 | 25,000 396,290 done for the present, and reports are beginning Ulch Bros. State Bank, Solon, Iowa 50,000 15,000 1,099,478 to come from abroad of the cancellation on a considerable scale of shipbuilding contracts in District No. 10. several countries. This would indicate that The Bank of Van Tassell, Van Tassell, Wyo 25,000 7,000 107,580 for the time being, at least, the peak of shipbuilding in foreign countries as well as in the District No. 11. United States has been passed. First State Bank, Mission, Tex... 50,000 6,750 553,021 District No. 12. First State Bank, Richfield, I Idaho I 25,000 4,000 200,209 State Bank of Garfield, Panguitch, Utah 50,000 50,000 549,973 Dollar Exchange. CHANGE OF NAME. Under the provisions of section 13 of the The Fidelity Trust Co., Newark, N. J., to Fidelity Union Trust Co. Federal Reserve Act, which provides that mem- The Central Bank, St. Paul, Minn., to Central Metropolitan Bank. ber banks, with the approval of the Federal WITHDRAWALS. Reserve Board, may accept drafts for the pur- Exchange State Bank, South St. Paul, Minn. The Bank of Goltry, Goltry, Okla. pose of furnishing dollar exchange, drawn upon CONSOLIDATION. them by banks or bankers located in foreign The assets of The Guaranty State Bank, Okmulgee, Okla., have been countries or dependencies or insular possessions taken over bv a nonmember bank. of the United States in which it is determined that the usages of trade require such accept- Acceptances to 100 Per Cent ance facilities, the Board has designated as such the following countries in addition to those Since the issuance of the January Bulletin the following listed in the November, 1920, issue of the bank has been authorized by the Federal Reserve Board to Bulletin: Australia, New Zealand, and other accept drafts and bills of exchange up to 100 per cent of its capital and surplus. Australasian dependencies. The Union Trust Co., Cleveland, Ohio. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

FBBBUARY, 1921. FEDERAL RESERVE BULLETIN. 189 Fiduciary Powers Granted to National Banks. New National Bank Charters. The applications of the following banks for permission The Comptroller of the Currency reports the following to act under section 11 (k) of the Federal Reserve Act increases and reductions in the number and capital of have been approved by the Board during the month of national banks during the period from January 1 to January, 1921: January 28, 1921, inclusive: DlSTEICT NO. 1. Trustee, executor, administrator, registrar of stocks and bonds, guar- Banks. Amount. dian of estates, assignee, receiver, and committee of estates of lunatics: The First National Bank of Biddeford, Me. The First National Bank of Greenfield, Mass. New charters issued to The Appleton National Bank of Lowell, Mass. With capital of I SI, 315,000 Increase of capital approved for i 60 With new capital of j " s,' 626* 666 DISTRICT NO. 2. Aggregate number of new charters and banks \ increasing capital \ 77 Trustee, executor, administrator, registrar of stocks and bonds, guar- With aggregate of new capital authorized j 6,335,000 dian of estates, assignee, receiver, and committee of estates of lunatics:Number of banks liquidating (other than those | The Bath National Bank, Bath, N. Y. consolidating with other national banks under j The First National Bank of Cuba, N. Y. the act of June 3,1864) I The Quassaick National Bank of Newburgh, N. Y. Capital of same banks , 6,725,000 Guardian of estates and committee of estates of lunatics: Number of banks reducing capital , The First National Bank of Paterson, N. J. Reduction of capital 6 Total number of banks going into liquidation or reducing capital (other than those con- DISTRICT NO. 3. solidating with other national banks under the act of June 3, 1864) Trustee, executor, administrator, registrar of stocks and bonds, guar- Aggregate capital reduction 6,725,000 dian of estates, assignee, receiver, and committee of estates of lunatics:Consolidation of national banks under the act The First National Bank of Bordentown, N. J. of Nov. 7, 1918 The First National Bank of Chester, Pa. Capital "i," 600,'666 The First National Bank of Gettysburg, Pa. Registrar of stocks and bonds, guardian of estates, assignee, receiver, The foregoing statement shows the aggregate of and committee of estates of lunatics: increased capital for the period of the banks ; The Conestoga National Bank of Lancaster, Pa. embraced in statement i 6,335,000 Against this there was a reduction of capital ] owing to liquidation (other than for consolida- j DISTRICT NO. 4. tion with other national banks under the act ' of June 3,1864) 6,725,000 Trustee, executor, administrator, registrar of stocks and bonds, guar dian of estates, assignee, receiver, and committee of estates of lunatics Net reduction. 390,000 The First National Bank of Blairsville, Pa. DISTRICT NO. 5. Commercial Failures Reported. Trustee, executor, adm nistrator, registrar of stocks and bonds, guardian of estates, assignee, receiver, and committee of estates of lunatics: The National Bank of Alamance of Graham, N. C. After four successive years of diminishing commercial The Farmers & Merchants National Bank of Winchester, Va. mortality, the business reverses of 1920, as shown by the records of R. G. Dun & Co., increased sharply in both num- DISTRICT NO. 6. ber and liabilities. Exclusive of banking and other fiduciary suspensions, the defaults in the United States during Trustee, executor, administrator, registrar of stocks and bonds, guardian of estates, assignee, receiver, and committee of estates of lunatics:the 12 months recently ended numbered 8,881 and sup- The First National Bank of Brooksville, Fla. plied $295,121,805 of indebtedness, as against only 6,451 failures, involving $113,291,237, in the immediately pre- DISTRICT NO. 7. ceding year. The insolvencies of 1919, it is important to note, were fewer in number than those of any year in almost Trustee, executor, administrator, registrar of stocks and bonds, guar- four decades, and the liabilities were the smallest since dian of estates, assignee, receiver, and committee of estates of lunatics: The First National Bank of Marengo, 111. 1905. When allowance is made for these facts and when it The First National Bank of Ruthven, Iowa. is also considered that the many new enterprises which Executor, administrator, registrar of stocks and bonds, guardian of were started last year enhanced the possibilities of financial estates, assignee, receiver, and committee of estates of lunatics: The City National Bank of Lansing, Mich. embarrassment, the failure record of 1920 appears less conspicuously unfavorable. While the unusual number of large reverses is an unsatisfactory feature, the percentage of DISTRICT NO. 9. all failures to total firms in business is much below the aver- Trustee, executor, administrator, registrar of stocks and bonds, guar- age, and this is also true of the ratio of defaulted indebteddian of estates, assignee, receiver, and committee of estates of lunatics:ness to solvent payments through the clearing houses. The First National Bank of Menominee, Mich. The Second National Bank of Minot, N. Dak. The increase of 2,430 in number of commercial insolvencies last year, as compared with those of 1919, is relatively much smaller than the expansion of $181,800,000 in the DISTRICT NO. 10. liabilities. Thus the rise in number is 37.7 per cent, Trustee, executor, administrator, and registrar of stocks and bonds: whereas the indebtedness is larger by 160.5 per cent. As The Columbia National Bank of Kansas City, Mo. a result of the latter change, the amount of money involved by last year's failures is greater than that of any year since DISTRICT NO. 12. 1915, and, with one other exception—1914—has not been exceeded in any year back to 1893. The number of defaults, Trustee, executor, administrator, registrar of stocks and bonds, guar- on the other hand, is less than in all years since 1882, aside dian of estates, assignee, receiver, and committee of estates of lunatics: The Marine National Bank of Seattle, Wash. from the abnormally low mortality of 1919. Comparing Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

190 MDE&AL RESERVE BTJLLJSTIK. FEBRUARY, with the high record of 22,156 reverses of 1915, when the twelve Federal Reserve districts, the number and amount economic unsettlement resulting from the outbreak of the of assets and liabilities in each district for 1920 compared World War was strikingly reflected in the insolvency sta- with the number and liabilities in 1919; also the record tistics, a numerical reduction of 59.5 per cent is disclosed. for each district for 1920 separated as to manufacturing, Separated according to occupation, the 1920 insolvency trading, and other commercial. statement reveals increases, both numerically and otherwise, in manufacturing, trading, and other commercial Failures in United States during 1920. branches, as compared with the returns of 1919. Number- TOTAL COMMERCIAL. ing 2,635 and involving $127,992,471 of liabilities, the manufacturing defaults are 4] .3 per cent larger in number and 148 per cent heavier in amount of indebtedness than the 1920 1919 1,865 similar reverses for $51,614,216 of 1919, while the 5,532 trading failures for $88,558,347 are 37.9 per cent more District. in number and 135.1 per cent greater in liabilities than the ber. Assets. Liabilities. ber. Liabilities. 4,013 insolvencies for $37,670,443 reported among traders during the earlier year. The class designated as "other commercial," which embraces defaults that can not prop- First 826 $8,111,364 $18,918,258 i 744 $11,884,238 Second 2,123 69,081,128 118,850,529 !1,185 32,413,538 erly be included in either manufacturing or trading, shows Third 419 10,189,729 !16,888,034 ! 360 6,863,575 714 reverses for $78,570,987, or a numerical increase of 24.6 Fourth 692 13,663,472 j14,327,557 ! 567 13,329,257 per cent and an expansion of 227.3 per cent in the indebted- Fifth 538 9,918,701 13,100,323 | 355 5,605,832 ness over the 573 such failures for $24,006,578 in 1919. It S Se ix v t e h nth 9 59 8 7 8 27 9 , , 4 3 2 4 3 9 , , 1 3 4 5 7 2 ! ! 3 1 9 1 , , 5 6 1 5 3 7 , , 6 4 4 2 7 5 I 4 7 5 7 5 0 1 5 2 , , 9 7 2 1 8 7 , , 2 6 2 2 0 8 thus appears that relatively the most unsatisfactory nu- Eighth 457 8,006,285 i 9,456,219 359 4,021,861 merical exhibit is made by the manufacturing division, Ninth 247 2,670,329 I 4,573,594 I 149 1,223,952 while the "other commercial" failures, although disclosing T E e le n v th enth 3 4 7 7 5 5 8 8, , 9 6 3 1 9 0 , , 5 1 3 0 7 2 ! I 1 1 0 1 , , 1 2 9 1 0 9 , , 3 0 7 1 0 0 2 3 7 2 1 2 3,287,855 the smallest rise in number, reveal much the larger in- Twelfth 1,144 18,540,968 !26,426,839 894 12,130,883 crease in liabilities. Total 8,881 J 194,504,114 295,121,805 ! 6,451 113,291,237 In 1919 the number of large failures had fallen to the lowest point in many years, but the number of such defaults during 1920 was the largest on record, and the CLASSIFIED FAILURES, 1920. liabilities were the heaviest since 1914. Numbering 453, the failures for $100,000 or more in each case last year Manufacturing. Trading. Other commersupplied $191,808,042 of aggregate indebtedness, as cial. against 191 such insolvencies in 1919, with liabilities of District. $55,986,543. In point of number, the closest approach to last year's unfavorable showing was in 1914, when Liabilities. Liabilities. ^^^Liabilities. 409 large defaults were reported, and the indebtedness of such reverses in that year was $210,700,000. By far the largest proportion of the reverses of unusual magni- S F e ir c s o t nd 2 8 8 3 3 5 4 $ 7 8 , , 0 6 7 3 5 9 , ,7 1 1 5 3 3 1,0 4 9 6 4 6 2 $ 4 6 , , 8 6 7 73 6 , , 4 8 5 8 7 2 1 7 9 7 4 j 4 $ 6 3 , , 8 6 9 0 8 5 , , 4 0 9 8 4 8 tude in 1920 occurred in manufacturing lines, where the Third 130 9,735,049 : 259 5,992,997 30 1,159,988 failures for $100,000 or more in each instance numbered Fourth 197 7,901,729 1 439 5,530,319 56 895,509 230 and involved $89,933,982 altogether, while there Fifth 109 4,656,984 i 384 6,737,963 45 1,705,376 Sixth 105 3,032,079 456 5,657,981 36 2,967,365 were 139 similar defaults among traders for $34,609,853. Seventh.. . 350 i 22,689,663 ! 577 7,695,420 61 9,128,564 The remaining 84 large insolvencies, with liabilities of Eighth 79 f 3,906,414 355 5,199,005 23 350, 800 $67,264,207, were of agents, brokers, and other concerns Ninth . 55 2,221,637 168 1,759,000 24 592,957 Tenth 78 5,401,143 271 3,838,703 26 950,524 that can not be properly included in either of the two Eleventh . 53 4,775,574 j 390 5,466,989 32 976,447 leading divisions. Twelfth 361 7,957,333 ! 673 9,129,631 110 9,339,875 In the following tables the figures as compiled from the Total 12,635 J127,992,471 |5,532 | 88,558,347 714 78,570,987 records of R. G. Dun & Co. are separated as to each of the Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

PBBECARY, 1921. PEDEEA1, KESEEVB BULLETIN. 191 RULINGS OF THE FEDERAL RESERVE BOARD. Motor trucks as permanent investments. ceptances growing out of export or import transactions, provides in part as follows: The Federal Reserve Board recently received an inquiry with reference to the eligibility for While it is not necessary that shipping documents coverrediscount by Federal Reserve Banks of notes, ing goods in the process of shipment be attached to drafts drawn for the purpose of financing the exportation or imissued by a corporation engaged in the business portation of goods, and while it is not essential, therefore, of furnishing motor transportation, to provide that each such draft cover specific goods actually in existfunds with which to purchase motor trucks. ence at the time of acceptance, nevertheless it is essential In the letter to the Board raising this ques- as a prerequisite to eligibility either (a) that shipping documents or a documentary export draft be attached at the tion it was stated that, according to the waiter's time the draft is presented for acceptance, or (6) if the goods information, the average life of a motor truck covered by the credit have not been actually shipped, that is less than that of a farm tractor, and, since there be in existence a specific and bona fide contract prothe Board has ruled that a farmer's note may viding for the exportation or importation of such goods at or within a specified and reasonable time, and that the be eligible when the farmer is to use the procustomer agree that the accepting bank will be furnished ceeds to purchase a farm tractor, it was sug- in due course with shipping documents covering such gested that a note the proceeds of which are to goods or with exchange arising out of the transaction being be used to purchase motor trucks should like- financed by the credit. wise be eligible. In the Board's opinion, how- The question has been raised as to the precise ever, there is a very real distinction between meaning of the term "shipping documents" the two cases. Farm tractors constitute only as used in this provision of the Board's regulaa small part of the entire equipment of a farm, tion, and the Board has ruled that the term whereas the motor trucks of a corporation en- includes an order bill of lading or a straight gaged in the business of furnishing motor trans- bill of lading, whichever is issued by the carrier portation necessarily constitute a very large in the particular case, but does not include part of the corporation's entire equipment. If freight receipts or mere copies of original bills the notes of such a corporation, the proceeds of of lading. The purpose of the requirement which are used to purchase motor trucks, were that the accepting bank shall be furnished declared eligible for rediscount by Federal Re- with shipping documents is not merely eviserve Banks, the result would be that paper dentiary, but is also to put the accepting bank representing in the aggregate a very large part in possession of the original documents, so of the corporation's capital investment would that it may protect itself by retaining such be eligible for rediscount, and it would not be documents until it is put in funds to meet the reasonable to assume that such notes could be acceptance. It is realized that this protecliquidated out of the corporation's current tion is not always absolute and that the prorevenues. tection afforded by possession of a straight bill of lading is not as great as that afforded by For this reason the Board believes that the possession of an order bill of lading. It is motor trucks of a corporation furnishing motor not the purpose of the Board, however, to pretransportation constitute permanent or fixed scribe the type of bill of lading to be issued investments within the meaning of the Board's in the particular case, but is only to require regulations. Consequently, under the terms of the accepting bank to be furnished with the the Board's Regulation A, the notes of such a best security which has been issued by the corporation, issued for the purpose of providing carrier in the particular transaction. funds to purchase motor trucks, are ineligible for rediscount by Federal Reserve Banks. The Board rules, therefore, that the customer A note given by such a corporation to the must furnish the original bills of lading and seller in payment for motor trucks purchased that the requirement of the regulation will not is, of course, commercial paper in the hands of be satisfied by the furnishing of freight receipts the seller, and is, therefore, eligible for redis- or nonnegotiable copies of the bills of lading. count after it has been discounted by the seller, This does not, however, mean that the bills of provided it complies in other respects with the lading must necessarily be sent to the accepting provisions of law and the Board's regulations. bank. The Board has ruled in connection with domestic acceptances that documents are legally in the possession of the accepting bank when they are held by its correspondent, or by Shipping documents to be furnished to banks accepting some other independent party, as its agent, drafts growing out of export or import transactions. and the principle of this ruling can be applied Subdivision (b) (1) of Section B of Regula- in dealing with the shipping documents to be tion A of the Board's Regulations, series of furnished to banks accepting drafts drawn in 1920, relating to the eligibility of banker's ac- foreign transactions. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

192 FEDERAL BESEBVE BUULETIK. FEBRUARY, 1921. RETAIL TRADE. weighted according to volume of business done during the calendar year 1919. For the month In the following tables is given a summary of December the tables are based on reports of the data obtained from representative de- from 24 stores in district No. 1, 19 in district partment stores in each Federal Reserve dis- No. 2, 41 in district No. 3, 14 in district No. 4, trict showing the activity of retail trade during 24 in district No. 5, 10 in district No. 6, 7 in the past several months. In districts Nos. 1, district No. 7, 7 in district No. 8, 5 in dis- 5, 9, 11, and 12 the data were received in (and trict No. 9, 11 in district No. 10, 13 in disaverages computed from) actual amounts trict No. 11, and 18 in district No. 12. The (dollars). In districts Nos. 2, 3, 4, 6, 7, 8, and number of stores varies somewhat, due to the 10 the material was received in the form of per- inclusion of new stores from time to time in centages, the averages for the cities and dis- the reporting list. tricts computed from such percentages being 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 Julyl,1920,to close of— District and city. close of— Apr., May, June, July, Aug., Sept., Oct., Nov., Dec, 1920. 1920. 1920. 1920. 1920. 1920. 1920. 1920. 1920. Apr., May, June, July, Aug., Sept., Oct., Nov., Dec, 1920. 1920. 1920. 1920. 1920. 1920. 1920. 1920. 1920. District No. 1: Boston 16.8 19.4 27.8 16.3 11.6 16.0 0.1 15.0 1.4 26.1 24.7 25.3 16.3 24.1 15.9 9.7 11.0 8.5 Outside 26.0 25.5 28.5 27.2 9.1 14.7 2.2 1.7 16.4 33.1 30.5 30.0 27.2 18.1 16.9 11.1 9.0 5.0 District 18.5 20.7 28.0 19.9 10.9 15.4 .6 11.4 i .4 27.5 25.8 26.2 19.9 15.1 15.2 10.1 10.4 7.7 District No. 2: N. Y. City and Brooklyn. 15.0 41.1 26.4 22.4 10.9 *3.2 1.7 7.6 i 3.6 35.0 35.3 32.7 22.4 13.0 3.6 5.2 3.0 3.2 Outside 22.4 22.8 32.3 26.9 26.4 16.9 15.4 18.9 5.9 33.6 30.1 31.7 26.9 27.1 23.4 19.6 22.8 14.3 District 15.8 35.4 28.4 24.4 15.9 3.6 6.2 11.6 11.6 34.9 33.7^ 33.8 24.4 17.5 10.2 10.0 10.0 5.5 District No. 3: Philadelphia 8.5 2.9 12.0 9.1 Outside 8.5 10.8 18.5 21.6 District 12.4 50.7 34.3 23.8 22.6 15.2 15.8 8.5 6.1 20.5 30.9 31.0 23.8 24.9 19.6 17.3 14.6 14.1 District No 4 18.4 31.3 31.5 29.9 25.7 24.6 20.8 26.1 14.7 33.6 32.1 34.6 29.9 27.3 25.9 23.9 24.8 22.0 District No 5 .9 11.0 21.4 15.7 20.9 7.5 12.4 13.1 4.9 8.8 9.3 11.4 15.7 21.1 14.1 13.6 13.5 10.4 District No 6 23.4 31.0 24.3 11.6 27.6 12.6 25.1 14.6 3.0 22.0 28.1 29.3 11.6 19.6 16.9 19.7 18.8 15.3 District No 7 33.3 49.7 59.6 41.2 33.2 28.6 8.3 17.6 9.6 43.5 49.6 58.7 41.2 29.6 35.5 32.6 24.2 18.1 District No. 8 20.8 11.8 10.5 10.8 5.3 18.0 16.8 16.5 13.8 13.3 District No. 9 "I7.~6" **4.*3* "ii.s""ii.6 8.8 .3 A 2.9 2.9 .5 19.8 5 6 12 6 ii.6 3.8 7 6 District No 10 19.6 10.9 12.9 14.1 9.9 7.8 11.9 9.2 15.1 24.9 21.2 17.9 14.1 14.2 11.1 5.2 12.9 .7 District No 11 25.9 25.6 12.4 16.0 12.7 i 2.9 25 9 25 2 20 9 21 6 17 9 10 5 District No. 12: Los An£?6l6S 43.6 38.2 39.0 35.1 48.9 29.1 19.3 31.2 13.7 56.1 52.2 49.8 35.1 42.4 37.9 33.9 33.7 28.5 San Francisco 28.5 40.9 23.6 21.0 18.6 10.4 11.5 9.9 13.8 36.6 37.6 35.3 21.0 19.6 17.3 15.4 11.7 8.7 Oakland 14.9 17.1 15.2 16.9 15.3 22.0 7.2 27.9 25.6 23.3 16.9 14.7 21.3 18.2 Sacramento 33.9 34.4 32.1 20.1 3.1 9.9 **2.'3* 47.5 39.4 38.3 20.1 13.3 16.1 '"i.'o Seattle 4.3 6.3 11.1 .2 18.0 "i'i'5 U4.6 i"i6.*4 U8.7 16.2 13.9 13.4 .2 14.4 i"4.*2* 17.3 *i"9."2* 111.1 Spokane - • - 10.9 48.8 62.8 22.7 12.7 4.6 5.6 11.5 23.1 29.1 35.7 22.7 16.8 9.4 8.4 8.6 Salt Lake City 7.1 26.4 18.3 20.6 11.6 8.9 14.7 9.1 12.8 16.4 14.7 20.6 16.1 14.0 12.2 14.6 District 13.8 31.2 27.8 21.2 21.7 14.5 8.2 11.3 14.3 36.9 34.7 33.2 21.2 21.4 19.8 16.8 14.8 5.0 Stocks at end of month compared with— District and city. Same month previous year. Previous month. Apr. May, June July, Aug. Sept. Oct., Nov. Dec, Apr., May, June July, Aug., Sept., Oct., Nov.,Dee., 1920. 1920. 1920. 1920. 1920. 1920. 1920. 1920. 1920. 1920. 1920. 1920. 1920. 1920. 1920. 1920. 1920. 1920. District No. 1: Boston 45.2 44.5 43.8 32.1 26.3 20.7 9.5 7.1 i 1.7 4.0 13.4 15.6 17.0 4.9 9.5 14.2 9.0 118.2 Outside 43.2 43.8 36.3 30.4 26.4 21.7 15.9 10.6 2.0 2.8 11.8 15.1 .2 3.2 9.7. 3.0 12.0 120.5 District 44.7 44.3 41.4 31.5 26.4 21.0 11.6 8.2 ».7 3.7 12.9 15.5 14.7 4.3 9.5 11.8 4.9 118.9 District No. 2: New York City and Brooklyn 53.8 47.9 45.5 46.2 30.7 18.0 17.2 5.1 12.3 1.3 16.6 15.4 14.3 7.3 5.7 1.0 M.8 120.4 Outside 51.6 51.7 38.4 30.9 26.3 20.2 15.6 3.8 112.7 11.4 11.7 17.7 4.6 5.6 9.3 1.4 17.0 124.0 District . . 53.6 49.1 43.2 39.5 29.3 18.7 16.7 4.6 14.5 1.4 15.0 16.1 1.5 6.8 6.9 .5 15.6 121.1 1 Decrease. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

FEBKUARY, 1921. FEDERAL, RESERVE BULLETIN. 193 Condition of retail trade in the twelve Federal Reserve districts—Continued. [Percentage of increase.] Stocks at end of month compared with- District and city. Same month previous year. Previous month. Apr., May, June, July, Ai lg-i Sept., Oct., Nov., Dec, Apr, May, June, July, Aug., 3ept., Oct., Nov., Dec, 1920. 1920. 1920. 1920. 19 20. 1920. 1920. 1920. 1920. 1920. 1920. 1920. 1920. 1920. 1920. 1920. 1920. 1920. District No. 3: Philadelphia 5.7 2.2 15.O 1 15.5 Outside 17.4 8.0 14.1 1 20.0 District 25.7 30.4 26.7 28.4 31.0 20.6 16.0 10.1 4.4 5.4 16.7 13.O 3.3 6.2 8.4 .9 14.7 1 17.3 District No. 4 63.9 57.0 53.3 48.3 40.4 34.0 34.9 22.5 11.6 7.3 1.9 1 1.0 11.4 9.4 9.2 4.8 16.4 120.0 District No. 5 59.5 67.1 57.2 44.6 29.6 1 15.1 5.3 14.2 i.l 2.3 19.2 2 5 2.3 10.2 .1 1 7.7 1 25.5 District No. 6 29.9 50.2 47.2 51.6 39.8 37 2 30.1 16.3 1.2 3.0 1.5 15.6 5.6 5.4 13.1 .8 16.7 130.8 District No. 7... 39.9 49.7 77.1 70.1 64 1 55 5 51.7 39.7 27.7 .0 2.1 .0 8.4 14.6 4.8 1.0 15.9 1 24.0 District No. 8 24 .2 35. 4 30.5 17.0 16.2 5.6 11.6 1.8 1 4.3 1 18.8 District No. 9. 27.6' i8.*7 30.7 17 7 22. 6 12.0 7.1 13.5 "*4.7* *"*.*8""*3.T 2.9 6.9 .5 14.2 1 18.7 District No. 10.. . 43.3 40.7 39.6 43.6 39 1 29.1 25.0 11.8 9.4 3.1 i 6.1 18.8 8.9 9.8 4.6 1 1.9 15.0 123.9 DistrictNo.il 69.5 59.5 52.8 42.3 31.5 8.8 8.3 22.3 6.6 13.0 1 9.3 1 28.8 District No. 12: Los Angeles 64.9 65.0 62.9 47.5 31.2 33.4 21.6 16.4 129.7 3.7 1.5 1.4 1.8 12.5 13.7 .2 14.2 1 45.4 San Francisco... 60.7 54.9 58.5 43.1 27.1 16.2 15.4 8.0 19.6 2.4 16.5 15.2 1.5 1.4 7.4 15.4 1.8 1 14.7 Oakland 34.4 29.7 33.9 27.7 22.5 8.3 3.8 1.5 1.6 12.6 12.9 2.3 .6 13.1 Sacramento.. 29.4 34.1 11.4 17.5 "i 1.5 .1 9.8 .3 1 23.1 Seattle 55.5 46.7 35.6 23.4 .4 3.9 .5 14.4 U2.3 16.7 18.7 14.2 6.3 2.8 1 2.9 122.5 Spokane 39.0 59.6 57.3 45.8 45.5 40.1 33.6 i 12.2 i4*o".2* 15.7 14.4 1.8 9^1 14.2 13.6 Salt Lake City.. 12.7 122.4 District 56.5 52.6 52.5 40.1 25.3 20.6 15.6 20.1 .3 14.7 13.0 1.8 .7 4.9 1.2 13.4 1 14.3 Percentage ofaverage stocks at end of each month to a\rerage Percentage of outstanding orders at end of month to total monthly sales for same period. purchases during previous calendar year. District and city. Feb. 1 1 of 9 — 20, to end July 1,1920, to end of— Apr., May, June, July, Aug.,Sept., Oct., Nov., Dec, 1920. 1920. 1920. 1920. 1920. 1920. 1920. 1920. 1920. Apr., May, June, July* Aug., Sept., Oct., Nov., Dec, 1920. 1920. 1920. 1920 1920. 1920. 1920. 1920. 1920. District No. 1: Boston . 389.8 348.4 339.2 419.2 447. 1 412.7 388.4 368.4 329.9 15.8 15.4 15.4 18.5 13.7 11.4 7.5 5.4 3.6 Outside 464.7 442.5 431.7 436.^ I 472.1 485.9 482.6 456.6 452.0 15.5 7.5 10.0 9.1 14.2 14.7 10.8 10.4 District 405.2 366.5 358.0 425. L 455.1 433.5 415.6 398.6 357.9 15.7 12.7 12.3 12.0 14.0 13.1 9.1 7.7 District No. 2: New York City and Brooklyn 403.1 392.4 379.9 390. () 489.3 613.7 479.4 464.1 361.1 17.6 15.5 16.8 15.7 16.8 14.7 9.2 6.9 5.3 Outside 392.8 415.7 349.5 485. 506.3 492.1 441.3 430.6 347.7 21.8 13.9 17.7 18.9 14.3 12.0 6.6 4.1 3.1 District 402.0 399.4 369.9 440. L 496.7 573.9 466.9 452.3 358.0 18.2 14.8 17.2 17.4 15.9 13.6 8.1 5.5 4.5 District No. 3: PhiladelDhia 360.4 322.6 4.7 4.9 Outside 520.5 458.6 2.9 4.1 District 347.0 382.6 357.5 399.8 471 2 500.3 437.2 418.0 371.1 23.5 17.6 19.3 19.8 14.2 10.1 5.9 4.0 4.6 District No 4... 439.0 362.8 362.3 403. f> 412 7 468.8 466.8 452.1 398.5 34.8 13.2 16.2 18.9 17.0 13.3 7.6 5.9 4.7 DistrictNo. 5 422.2 421.5 407.0 505. 560 7 512.9 489.0 454.5 386.6 12.1 9.9 9.7 16.1 14.8 8.4 7.1 3.0 2.7 District No. 6... 403.9 381.6 307.8 20.1 20.6 17.0 17.4 15.6 11.0 6.9 5.8 4.9 District No 7 . 332.5 305.8 328.3 432. 7 427 9 410.7 371.0 431.7 391.0 31.2 31.9 19.5 19.3 23.2 15.7 5.1 6.5 5.6 District No. 8 432 6 377.0 396.8 324.4 245.1 17.2 9.2 6.1 3.9 3.8 D Di i s s t t r r i i c c t t No N o 9 . 10 272.1 285.4 353.7 384.1 334.0 340.4 343.3 526.8 466.3 * 1 "9 8 .* .0 6*"i9 5 .* .4 5" 2 2 0 5 . . 6 3 ""i 1 3 5 .* .6 7* 9 9 . . 7 1 8.8 1 3 2 . . 1 4 11 1 . . 9 9 1 2 8 . . 3 7 District No. 11 425.5 523.9 454.0 416.7 383.7 18.6 12.7 10.0 4.1 3.2 2.7 District No. 12: Los Angeles 390.7 480.4 481.3 522.5 454.2 486.0 462.5 478.0 432.5 39.0 29.7 26.2 22.8 15.5 12.0 9.3 7.6 10.6 San Francisco.. 492.3 469.8 508.8 539.9 512.8 511.5 511.9 515.8 434.3 27.7 23.9 26.0 25.9 21.1 10.8 13.6 9.6 4.3 Oalrland 585 2 589 5 573 8 625 i 598 3 732.5 567.4 Saoram en to 533 4 531 3 423 3 387.4 490.5 Seattle 527.9 539.7 524.6 470. 2 532.7 508.0 502.5 454.5 413.7 17.2 14.2 16.3 16.3 12.2 8.6 6.4 7.0 1.6 Spokane. 528.8 605.4 579.4 652. fi 675,5 579.0 544.3 458.5 31.1 25.1 29.9 .1 Salt Lake City . 601.4 18.7 2.6 District 456.0 508.0 516.0 536. 5 489.6 504.0 467.3 488.5 490.7 21.6 23.2 23.1 22.3 14.2 9.5 9.8 7.0 5.8 1 Decrease. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

194 FEDERAL RESERVE BULLETIN. FEBRUARY, 1921. FOREIGN TRADE INDEX. There is^presentedjbelow a series of indexes commodities is given in the July BULLETIN.1 designed to reflect movements in foreign trade After a decline during November, total of the United States, with fluctuations due to exports showed a considerable increase for price changes eliminated. The commodities December. This increase was noticeable in chosen for these indexes are those for which every class of exports, but more particularly in prices are compiled by the Federal Reserve producers' goods. Total imports, after a slight Board in the preparation of its international rise during November, again continued the price index. The list includes 25 of the most downward trend which has been noticeable for important imports, the value of which in 1913 the past several months. Total exports for formed 47.7 per cent of the total import values, the year 1920 showed a small decrease from and 29 of the .most important exports, the total exports during the year 1919, while the value of which in 1913 formed 56.3 per cent imports for the two years were substantially of the total export values. The list of thethe same. Value of exports and imports of selected commodities at 1913 prices. [In thousands of dollars; i. e., 000 omitted.] [Monthly average values, 1913=100.] Exports. Imports. Raw materials Producers' Consumers' Grand total Raw materials Producers' Consumers' Grand total (12 commodi- goods (10 com- 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.. 126,836 148.1 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 60,904 321.0 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 89,890 242.8 24,861 188.8 196,025 195.0 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 77,401 209.1 29,492 224.0 193,336 192.3 August 81,250 94.9 19,574 168.8 49,194 161.6 150,018 117.5 85,571 169.9 42,132 113.8 20,953 159.1 1148,656 147.8 September.. 70,285 82.1 19,359 166.9 43,342 142.4 132,986 104.1 123,524 245.3 70,033 189.2 25,240 191.7 "218,797 217.6 October 70,322 82.1 17,182 148.1 45,844 150.6 133,348 104.4 99,114 196.8 74,736 201.9 20,386 154.8 1194,236 193.2 November.. 99,552 116.2 15,735 135.7 46,729 153.5 162,016 126.9 98,690 196.1 79,198 213.9 21,254 161.4 1199,142 198.1 December.. 89,584 104.6 13,208 113.9 43,571 143.1 146,363 114.6 79,965 158.9 71, 886 194.2 21,521 163.4 'i 173,372 172.4 Year.. 914,165 S8.9 215,357 154.7 688,362 188.5 1,817,884 118.6 951,495 157.5 857,504 193.0 254,975 161.4 2,063,974 171.1 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 84,134 227.2 14,887 113.1 163,198 162.3 June 55,200 64.5 14,663 126.4 46,113 151.5 115,976 90.8 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 93,910 253.7 24,562 186.5 179,414 178.4 August 67,225 78.5 15,708 135.4 28,594 94.0 111,527 87.3 61,321 121.8 94,866 256.2 22,624 171.8 178,811 177.8 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 October 101,708 118.7 17,649 152.2 37,859 124.4 157,216 123.1 44,866 89.1 48,683 131.5 17,613 133.8 111, 162 110.6 November.. 95,148 111.1 14,123 121.8 33,996 111.7 143,267 112.2 43,436 86.3 61,590 166.4 14,610 111.0 119,636 119.0 December.. 104,828 122.4 21,577 186.0 37,536 123.3 163,941 128.4 39,963 79.4 49,239 133.0 13,401 101.8 102,603 102.0 Year.. 947,506 92.2 198,474 142.6 503,647 137.9 1,649,627 107.7 816,827 135.2 1,009,784 227.3 245,489 155.4 2,072,100 171.7 1 An additional list of 11 commodities of imports is given in October BULLETIN. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

FBBKDAET, 1921. FEDERAL BESEEVE BULLETIN. 195 WHOLESALE PRICES ABROAD.1 Index numbers of wholesale prices (all commodities). B R t F U o S q io e e a u t n d s n a r o i e d t e s t t e r e ) r a ( v s . a d 9 - « ; e l 0 B t S ( a 3 U u S t L t 2 a i r t n o a 8 t e a i i b n a t s t q e o e s u t u s i ) d r c ; . o o « s - f ( U 4 S m t K d 5 i t n e o o a i i n c s m t d t o ) i g e i s ^ ; m d - - t - d G B ( t F 4 e i t m e u s r 5 i l a n e t l a o i l n c e s q e d o ) r S c t u i ^ a m e i - t e t n a ; e - - c B o t I a m P i t c e a r m h s o l ) i y f o ( . . ; b 4 d 0 i-( H 4 S t S t 7 i w a i d v o n q e e n n d d u n i s e n e o s ) l g n k . t s < a ; - -c T J B o a J o t m i p a a k e n n a s m y n k a ) o . o n « f o ( d o ; 5 f i r 6 - A c C t a B i o C w u o n s m u t s d m e e i t n r c m a r m e S s s a l o a u t t l ( o h u a i d 9 s n a - 2 i ; - - C m D t q L i a e o e u ( a n 2 p n n o b a 7 a t s t o d 2 a r ) o r a t ^ - f - ; C m S ( D 7 I a t t m i n 5 e e a l e c n d p t s o c i ) u t a i d s . o * a t t r i t o m i * ; t - a c - f , - s G (6 Z F e 7 t m f e i r r u e m i a o r c t s n t u o d ) e a k . n m i r n d - - g y - ; ties).'* 1913.. 100 100 100 100 100 2 100 100 100 1914.. 100 101 101 95 116 96 3 ioo 101 UOO 5 100 1915.. 101 126 137 133 145 97 141 110 1916.. 124 159 I 187 202 185 117 132 135 1917., 174 206 262 299 244 149 6 155 177 1918., 197 226 339 409 339 193 170 206 1919. 215 242 357 364 330 235 180 217 1919. December.. 226 238 276 423 455 317 288 197 238 1920. January 242 248 487 504 319 301 203 248 218 1,058 February.. 242 249 522 556 342 313 206 254 209 1,429 March 248 253 307 555 619 354 321 209 258 198 1,577 April 263 265 313 588 679 354 300 217 261 200 1,598 May 264 272 305 550 659 361 271 225 263 210 1,471 June 258 269 300 493 615 366 247 233 258 206 1,545 July 250 262 496 613 363 239 234 256 209 1,439 August 234 250 501 632 365 235 236 244 209 1,534 September. 226 242 292 526 660 362 230 230 241 208 1,556 October 208 225 282 502 662 346 226 215 234 206 1,545 November. 190 207 263 460 658 331 221 208 225 194 1,534 December.. 171 189 243 434 635 299 206 197 214 180 1,619 a Average for the month. & End of month. c Middle of month. d First of month. 1 The index numbers printed in this article are constructed by the various foreign statistical offices according to methods described in the BULLETIN for January. 1920. In all cases, except that of the United States, the original basis upon which the index numbers have been computed has been shifted to the 1913 base. The monthly and yearly index numbers are therefore only approximate. The latest figures are received by cable and are subject to correction. 2 July 1,1913, to June 30,1914=100. 3 July, 1914=100. < End of July, 1914=100. a Middle of 1914=100. e Last six months of 1917. Both as regards public finance and foreign ENGLAND. trade England's position is superior to that Too much emphasis can not be placed upon of the continental countries. Although within the fact that England's present economic prob- recent months the total volume of trade lem is essentially different from that of the has been on the decline, imports and exports Continent. Her last budget (that for the year have more nearly balanced than at any time ending Mar. 31, 1921) was made to balance since the armistice. Conditions in France in and in fact to give an actual surplus by the this regard have been improving very decidedly, placing of heavy taxes not only on ordinary but even so the situation neither there nor in income but also on excess profits. The esti- Italy is so satisfactory as in England. This, mate of expenditures for the current year in spite of the fact that French and Italian examounted to 1,176 million pounds, for receipts change rates have depreciated far more than to 1,418 million pounds, which would give a English, thus presumabfy serving as a greater surplus of 242 million pounds for debt reduc- stimulus to adjusting the trade balance. In tion. It is impossible to state how nearly the Germany, exports and imports have balanced estimates will be fulfilled but it would seem, in the months most recently reported, but this judging by the total receipts for the nine is largely because exports include payment to months ending December 31 (which amounted the allies under the terms of the treaty as well to 889 million pounds) that the Government as ordinary commercial sales. accounts will balance. Eight hundred and One factor which may temporarily have been eighty-nine million pounds is obviously not of material assistance to England in building 75 per cent of total anticipated revenue; but up her export trade is the unfavorable rate of since far more comes in during the last quarter her New York exchange. This has made it than during any other part of the year, it is to possible for her to export far more than she be expected that this sum will be greatly in- otherwise could have to the United States, creased before April 1. which has not only given her an outlet for her Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

196 FEDERAL RESERVE BULLETIN. FEBRUARY, 1921. goods but also furnished her a solvent pur- to English business men provided, however, chaser. More or less the same may be said of that tne English Government act as guarantor English trade with Canada and some of the of the assets to be offered by countries wanting South American States, as well as with credit. According to this scheme, as is well the Scandinavian countries and sections of known, countries desiring credit would issue the Far East. When such a situation has bonds on the basis of assigned assets whose existed in markets in which the British were value had been determined by a commission already established, this has had a most of the League of Nations, these bonds to be favorable result upon their export trade. offered by the country in question in payment With a large group of countries, notably the for goods. As the technical experts of the European States, the situation has been quite league recommended that it withhold guaranty the reverse, however. In these cases she has of the bonds, British business men doubt had the handicap of a favorable rate of ex- the usefulness of the scheme unless the British change, but in spite of this has exported more Government can be persuaded to use a portion to the continent than she has received from it. of the 26 million pounds set aside for export The explanation for this lies, of course, in the credits as a guarantee. fact that the continent has been in excessive During December prices in England conneed and has had to import on what under tinued to decline at approximately the same normal conditions would be prohibitive terms. rate as in November. In January, however, In carrying on this trade with the continent, improvement was apparent in certain lines, England was of course assuming a heavy risk. notably in the cotton, wool, and to a less extent This has been realized to an increasing degree leather industry. In the iron and steel indusof late when attempts have been made to try, however, prices continued to be reduced liquidate on credits placed there. steadily during the first weeks of January. Another factor which indicates the fortunate The demand for export coal had declined to position of England as compared with the such a point that stocks accumulated, and continent is the adjustment which has been prices were weaker than during earlier months. made between her internal and external prices. Largely on this account all regulations were One of the most serious maladjustments in removed from the export coal trade during continental countries is the difference between January. domestic and foreign prices. This condition is The scheme suggested by the Australian due to the policy, which is still quite general, of wool growers for handling the stocks of wool subsidizing with State money the prices of owned by the British Government was accepted commodities essential to the mass of the during December with the consent of the population. By this means prices within the British wool trade. According to this scheme country are kept far lower than those for the Australian wool growers will market not export, but entirely at the expense of the only the new clip but the carry-over from earlier national budget. In England all subsidies clips. To meet a change in market conditions, have been removed. Although the domestic the minimum price of wool offered at public price of coal is, out of all proportion, cheap auction in London was reduced about the midas compared with export coal, this industry dle of January. During the preceding weeks is not being subsidized with national funds. wool had been offered by the Government at a British exporters are urging the Government minimum price too high to attract buyers. to make more practical arrangements for assist- With the lowering of the upset price, buying ing them in financing foreign trade. More than improved. Although the raw material is apa year ago a law was passed setting aside parently in somewhat better demand, the in- 26 million pounds to provide aid for exporters, dustry continues to work on a very short-time but until a few months ago conditions were basis. such that no interest was taken in the scheme. In the cotton industry a slight improvement When depression set in, interest was revived, occurred during early January. Manufacturers and the provisions of the scheme were made continued to work on a 35-hour-a-week basis, somewhat more favorable to exporters. Al- but instead of agreeing to continue on this basis though applications are being made for funds during the coming month they have decided more freely since the change, it is generally upon the present arrangements for two weeks felt that a more comprehensive plan will have only. Demand seems to have improved in the to be developed before appreciable results will cheaper grades of cotton goods rather than in be obtained. The Ter Meulen scheme for the finer grades. international credits as revised at Geneva by The Statist index is published below, showtechnical experts seems to appeal most strongly ing the trend of prices during the year: Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

FBBEUARY, 1921. FEDERAL RESEKVE BULLETIN. 197 Statist index number of wholesale prices. that at the end of the previous half year, we find that the increase between the end of May and [1913=100.] the end of June was even greater. Due to the heavy demands made upon the Bank of Eng- Date. V ta e b g l e e - A m n a i l - c S o u f g fe a e r , , Food- Min- Tex- Sun- Mate- land, the reserve ratio was low during all of foods. foods. tea. stuffs. erals. tiles. dries. rials. December, reaching 7.3 per cent on December 29. During the first two weeks of January 1913 100 100 100 100 100 100 100 100 deposits were rapidly reduced, and as a result 1914 110 100 107 105 90 97 105 98 1915 155 125 130 137 109 111 131 119 the reserve ratio rose to 12.2 per cent on 1916 193 152 161 169 140 152 163 153 January 12. Meanwhile conditions demanded 1917 252 192 213 218 152 228 212 198 1918 248 210 238 229 167 265 243 225 a considerable increase in the issue of currency 1919.. 252 215 275 238 190 271 268 243 and bank notes. Between the end of November December.. 270 228 336 260 234 334 296 286 and December currency notes increased by 18 1920: January 274 230 356 265 256 343 312 302 million pounds and the bank notes by 4 million February.. 297 237 415 286 267 362 329 318 pounds. Due to this rapid expansion in cur- March 345 237 393 300 263 360 318 312 April 346 265 392 315 263 354 321 311 rency notes, they stood at the highest point of May 351 244 473 318 273 308 311 298 June 359 244 496 325 269 308 282 285 the year on December 22. The legal maximum J A u u l g y u .. s . t . 3 3 4 1 3 7 2 2 7 9 8 5 4 40 2 4 5 3 31 2 9 5 2 2 7 8 6 1 2 2 9 9 8 8 2 2 7 7 7 8 2 2 8 8 3 5 for the fiduciary issue of 1921 is thus fixed at 317.6 September. 319 291 334 308 283 286 279 282 million pounds—3 million lower than the limit October 334 290 257 302 276 261 268 266 November . 308 293 238 291 265 212 253 245 for the circulation in 1920, the latter amounting December.. 257 262 212 253 254 205 248 237 to 320.6 million pounds. The heavy loans of the Bank of England during this period were made As was expected, end of the year settlements for the most part on the basis of Government caused considerable financial strain in England. securities, the bank's holdings amounting to Between the end of November and the end of 108 million pounds on December 27, but being December, deposits with the Bank of Eng- reduced by January 12 to 59.2 million pounds. land increased very radically, from 123 million Coin and bullion neld by the bank increased pounds to 190 million pounds, most of this 4 million pounds during December, but no increase occurring in "other deposits." Com- further additions were made during the first paring the situation at the end of the year with two weeks of January. Deposit and note accounts. Government floating debt. Discount rates. Currency 1920 n B o a te n s k .1 c n o e o u rt t t i e s f s t i a c a n a n t d e d - s p D ub o ep l t i h o c e s a r i . t n s d , C bu o l in li o a n n . d 2 Tr b e i a l s ls u . ry T ad em va p n o c r e a s r . y T in o g ta 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 n b t i h ll s s ' . ing. End of— 000's. 000's. 000's. 000's. 000's. 000's. 000's. Per cei Per cent. January... £84,258 £329,554 £155,272 £128,434 £1,111,000 £208,000 £1,319,000 February. 92,426 324,994 190,147 138,946 1,070,000 188,000 1,258,000 March 99,371 335,372 137,170 140,672 1,107,000 205,000 1,312,000 April 101,284 337,377 140,381 141,018 1,048,000 249,000 1,297,000 May 103,614 348,316 117,784 140,955 1,062,000 221,000 1,283,000 June 106,658 357,356 191,715 146,382 1,050,000 244,000 1,294,000 July 106,869 361,911 133,796 151,734 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 October... 108,839 355,872 136,977 151,699 1,028,000 241,000 1,269,000 November. 109,218 349,284 123,304 152,613 1,097,000 231,000 1,328,000 December. 113,401 367,626 189,859 156,768 1,102,000 306,000 1,408,000 1 Less notes in currency notes account. 2 Held by the Bank of England and by the Treasury as note reserve. The decline in the value of exports during duction in the exports of cotton and wool the month of December is very considerable, manufactures, which combined were valued amounting in all to a value of 23 million at some 13 million pounds less in December pounds as compared with November. This than in November. At the same time coal leaves the total the second smallest for any and iron and steel exports were considerably month of 1920 and only a little larger than increased, although the total increase does that of December, 1919. Coming after a not half compensate for the loss in the textile period of seven months, during which the exports. Imports during December were at export trade has been on a very high level, it approximately the same level as during the is a significant index of the very rapid shift preceding month. Production in the iron and in England's foreign trade outlook. This is steel and coal industries was at a high level, accounted for largely by the very heavy re- the new Government provisions regulating Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

198 FEDEKAX. RESERVE BULLETIN. FEBRUARY, 1921. the wages and profits of workers in the coal Although considerable unemployment has industry according to output having apparently been reported in shipbuilding centers and had an excellent result on the volume of coal freight rates have been on the rapid decline, produced. In the iron and steel industry the British tonnage under construction during the December production was on a much larger last quarter of 1920 was only slightly under scale than that of October and November, when that of the third quarter, which marked the the strike of coal miners was in effect. high point of the year. Value of foreign trade. Production (metric tons) Ship IUUU tonnage under Date. Steel construc- Imports. Exports. Reexports. Coal Pig iron. ingots and tion (gross castings. tons). ! 000's. 000's. 000's. 000's 000's 000's. Monthly average, 1913 j £39,061 £43,771 £9,131 24,336 869 649 12,002,699 1920. January 183,498 105,880 25,464 *22,657 676 766 February... 170,514 85,964 22,604 19,435 656 811 March 176,648 103,699 27,031 19,505 710 854 3,394,425 April 167,154 106,252 20,407 17,131 655 779 May 166, 816 119,319 20,260 2 22,131 738 848 June 170,491 116,352 20,124 19,048 726 745 3, 578,000 July 163,342 137,452 17,848 ^22,920 750 800 August 153,255 114,903 13,368 16,970 752 709 September. 152,692 117,456 13,351 18,885 741 884 3,731,000 October 149,889 112,295 16,134 2 14,044 533 544 November. 144,260 119,365 13,115 15,920 404 504 December.. 142,785 95,631 12,699 *22,593 675 745 "3," 709! 666 1 Average of four quarterly estimates. Figures following are estimates taken at the end of each quarter. * Five weeks in the month. Cost of living figures for the first of January FRANCE. show a further decline, leaving the level at 165 The fiscal situation in France has been one per cent above that of 1914. Already wage of the most conspicuous of the country's scales adjusted according to the cost of living problems during 1920. The need for budgetary have been reduced in certain centers, although reorganization was hardly less necessary in the reduction in wages in England has appar- 1919, but it seems fair to say that it was not as ently not been carried out on the same scale clearly understood by the general public then, as in the United States. Large numbers of as it is now. There was no general budget of workers continued to be out of employment. receipts and expenses in 1919, and the Govern- Figures published by the Labour Gazette for ment's expenditures so far exceeded ordinary trade union unemployment showed 6. 1 per revenue that the floating debt increased 24 cent out of work at the end of December. billion francs and advances from the Bank of The situation on the whole as regards unem- France 5 billion francs in that year. ployment seems to be about as bad as in the In December, 1919, M. Klotz, then Finance winter of 1913-14, when a similar depression Minister, presented to the Chamber of Deputies was being felt. a proposal for a consolidated budget for the next year. Final action upon the subject was Per cent not taken, however, until the last of June, p A e v r e c r e a n g t e - of u n tr i a o d n e- 1920, when both the Senate and Chamber c a re g a e s i e n - in m u e n m e b m e - rs approved a budget of 47 billion francs. Twencost of ployed ty-one billion francs of this expenditure were living. 1 (membase, bership to be met by taxation and 26 billion by loans. J 1 u 9 l 14 y . , a 1 t , 6 e 3 n 6 d ,0 1 o 2 f Of this latter sum 15 billions were to be spent Septem- in the devastated regions. ber), Two loans were floated in 1920. The first, January 1920. 125 a 5 per cent redeemable rente, yielded about February... 130 7 billion francs in cash and 8 billion in national March 130 1.1 April 132 .9 defense bills. The second, a 6 per cent per- J M un a e y 1 14 5 1 0 1 1. . 2 1 petual rente, brought in, according to the latest July 352 1.4 reports, 9.1 billion francs in cash, and 5.4 August 155 1.6 September. 161 2.2 billion francs in national defense bills. The N Oc o t v o e b m er ber. . 1 17 5 6 4 3 5 . . 7 3 funds made available by these two loans December... 169 6.1 amount, therefore, to 29 ."5 billion francs, or 1921. enough to meet both the "special" and January.. 165 "extraordinary" budgets for 1920. 1 Food, rent, clothing, fuel, light, etc. Final figures are not yet available on total Figures applying to increase in cost of living are for the beginning of month and. those for trade-union unemployment are for end. of month. receipts from taxes in France this year, but Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

FEBRUARY, 1921. FEDERAL RESERVE BULLETIN. 199 preliminary reports state that they amount to public treasury. During the war, however, about 20 billion francs. This sum is less by all the roads were obliged to depend upon 1 billion francs than the expenditure contem- Government aid, and their total deficit at plated by the ordinary budget for 1920. The present amounts to about 5 billion francs. difference seems to have been met by the funds The agreement recently approved by the realized from the sale of war stocks. Chamber of Deputies cancels all claims of the The 1921 budget as presented to the Cham- Government against the railways and of the ber of Deputies in December called for an railways against the State. Henceforth they expenditure of 44 billion francs, of which 24 will be operated entirely without guarantees billion was to be met by taxation and 19 from the Government. billion by loans. The budget was returned to The plan provides for a central council for the Finance Minister for further reductions in the railways to be composed of representatives the middle of December, and final action was of the management and workers of each system postponed until February by voting provisional and presided over by the minister of public credits for the first two months of the year. works. Each company will guarantee a fixed The prolonged examination of the budget rate of interest to its stockholders, and it will had made it clear, however, that, if the heavy receive a bonus for its methods and improveexpenditures in the devastated regions con- ments. Any surplus accumulated by the tinue, France must go on increasing her public roads will be kept in a common fund through debt. Thirty-five billion francs have already which companies which do not pay may be been spent in the reconstruction of the devas- assisted. Before this bill becomes a law it tated regions, and the 1921 budget contem- must be approved by both the Senate and plates spending 16 billion more. Since tax the railways. receipts are only sufficient to meet the other Wholesale prices in France continued to necessary expenses of the Government, the decline throughout December. Textiles, iron only way that this work can be carried on and steel, nonferrous metals, coffee, cacao, without involving further loans will be by and meats shared in the downward tendency. means of large payments from Germany on Decreased hours of work were reported from reparations account. So far no payments in the textile centers of Lille and Lyon, as well cash have been made Differences of opinion as from the leather factories and metallurgical as to how the indemnity can best be obtained centers. caused the retirement of the Leygues ministry One of the most important of the recent early in January. At the present time the price changes is that announced by the coal amount of Germany's annual payments on controller early in January. As of January 1 reparations account for the next few years have the new price of metallurgical coke is fixed at not been decided, but it seems probable that 135 francs a ton for blast furnaces and 200 they will not exceed 3 billion marks gold a francs for other consumers. The price which year. As Belgium has priority on the first has been in force since October 1 was 175 to 2,500 million marks paid by Germany it is 250 francs for blast furnaces and 275 francs obvious that the amount which will be refor other consumers. Coal prices have been ceived by France next year will not be large reduced similarly. As this action has been enough to make a very great difference in demanded for some time by French manubalancing her budget. facturers, it may help to relieve the industrial On December 18 an important step was taken situation. toward reducing the ordinary expenditures of Because of the strong sentiment in France the Government, when the Chamber of Depu- for releasing the coal industry from Governties passed a bill authorizing the consolidation ment control, M. Briand has announced that it of the French railways and relieving the is his intention to bring about this change very Government of financial obligation in regard shortly. The step now seems feasible, as to them. According to agreements in force at France is better supplied with coal than she the beginning of the war, the Government has been since 1913. For the first 11 months advanced interest at a fixed rate on money of the year 45 billion tons of coal were availloaned by private investors to the railroads able for consumption, a supply which compares for the extension of their systems into regions very favorably with the monthly average of where the service would not be immediately 4,542 million tons consumed in 1913. profitable. Before the war some of the rail- The following table gives the group index roads had repaid the money thus advanced, numbers of the Bureau de la Statistique while others had made large demands on the Generale: Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

200 FEDEBAL, RESERVE BULLETIN. FEBRUARY, 1921. Group index numbers—France. G&nerale shows a decline of 2 points only in the cost of living in Paris. The figures are as [Bulletin de la Statistique G6n6rale.] follows: [1913=100.] Retail prices in Paris. July, 1914 100 Date. f A m o n o a d i l - . f t o a o b d l s e . S a u n g d ar, F ( o 2 o 0) d . s e M r i a n ls - .t T i e l x es - . d S r u i n es - . m R ri a a a t w l e s - 1 1 9 9 1 2 9 0 — (a J v a e n r u ag ar e y ) 2 2 9 6 0 0 cocoa. (25). February 297 March 339 1913 100 100 100 100 100 100 100 100 April 358 1914 103 103 106 104 98 109 99 101 May 378 1915 126 126 151 131 164 132 145 145 June 369 1916 162 170 164 167 232 180 199 ,206 1917 215 243 201 225 271 303 302 291 July 373 1918 286 298 231 281 283 460 420 387 August 373 1919 392 313 253 336 272 444 405 373 September 407 1919, end of— December 432 380 278 375 357 649 419 454 October 420 1920: November 426 January 452 432 419 440 413 787 465 525 December 424 February 484 474 436 474 444 503 561 March 500 516 439 498 460 548 600 April 522 511 429 506 498 953 587 646 The end-of-the-year statement of the Bank May 480 480 424 472 459 841 601 614 June ! 482 400 392 434 428 734 517 540 of France shows a slight decrease in gold July ! 501 370 405 432 469 746 500 548 reserve for the year and a net decline of the August | 515 359 399 432 475 737 524 558 September... j 531 412 544 487 468 715 540 558 note circulation of about 140 million francs. October 533 421 422 469 453 637 527 528 November. ..t 519 390 371 441 |424 510| 498 476 This decline in the note circulation seems to December 575 360 349 423 j402 475 ! 471 444 have been merely temporary, however. In the I first weeks of 1921 the advances of the bank to Retail prices seem to be following the down- the Government, which had remained stationward trend of wholesale prices very slowly. ary since last July, were reduced by payments The retail price index number of the Statistique from the Treasury by 1 billion francs. French financial situation. [In francs.) Bank of France. Situation of the Government. Advances to the (0 re 0 G s 0 e , o 0 r l 0 v d 0 e ' s s) (0 re 0 S s 0 i e l ,0 v rv 0 e 0 e r ' s s) D (0 e 0 p 0, o 0 s 0 i 0 ts 's 1 )(0 C 0 t i 0 r i , c o 0 u n 0 l 0 a ' - s) p m G u o r e o p f n v O t t e v h r f S e n o e - r s (0 r G m e 0 v o 0 e v e ,0 n n e 0 r t u 0 n 8 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 r e e i p n c r e e t c t e u e o . a n f l t war2 (000,000's) 1913, average 3,343 629 830 5,565 320 35,000 86.77 1920, end of— February « 3,603 251 3,277 37,889 25,800 794 57.60 March <3,606 247 4,039 37, 569 26,300 859 58.82 April * 3,608 244 3,469 37,688 25,300 1,057 57.40 May < 3,609 240 3,751 37,915 26,050 857 59.35 June « 3,610 241 3,653 37,544 26,000 908 57.25 July <3611 248 3,416 37,696 25,550 1,109 5 233,729 58.90 August < 3,612 255 3,267 37,905 25,800 882 56.30 September... 6 3,531 256 3,307 39,208 26,600 1,120 54.15 October 6 3,537 264 3,474 39,084 26,600 1,332 56.20 November... 6 3,543 265 3,927 38,807 26,600 1,088 55.40 December... « 3,552 266 3,575 37,902 26,600 1,168 245,129 57.95 1921, January 20 e 3,553 3,339 38,153 25,600 1 Includes Treasury and individual deposits. * Not including about 1,978 million francs held abroad 2 Under the laws of Aug. 5 and Dec. 26,1914, July 10,1915, and Feb. 16,1917. » Foreign debt calculated at, par. 3 From indirect taxation and Government monopolies. 6 Not including about 1,948 million francs held abroad. Cabled figures on French foreign trade in nesses producing luxuries. As it was claimed December show a distinct falling off in ex- that this tax raised the price of luxuries to such a ports, the month's total being much lower point that it was impossible to market them than that of any month since 1919 values abroad, the tax was finally removed in January. were adopted in making the computations. There was a distinct increase, on the other The greatest decline is in the export of manu- hand, in both the food and raw materials factured articles. The French attribute part imported. Imports of manufactured articles of this decrease to the 10 per cent tax levied were smaller than at any time since the new since July 1 on the total turnover of all busi- system of evaluation went into effect. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

FEBRUARY, 1921. FEDERAL RESERVE BULLETIN. 201 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 u c n l r e u e s - d . Total. Food. ma R te a r w ials. f a a M r c ti t a u c n l r e u e s d - . P p a o r s c t e . l Total. 1913 average2 1 151,465 412,144 138,169 701,778 154, 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 675,799 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 2,386,698 103,355 348,361 726,654 31,658 1,210,028 June4 558,951 1,302, 867 726,856 2, 588,674 216,849 421,735 1,100,931 69, 862 1, 809,377 July» August6 723,749 1,171,091 905,613 2,800,453 210, 888 440,482 1,631, 883 116,255 2,393,508 September 608,822 1,294,160 724,894 2,627, 876 229, 892 446,131 1,363,469 112,081 2,151, 573 October ! 667,709 1,243,294 684,442 2,595,445 262,808 337,464 1,597, 808 134,472 2,332, 552 November 549,834 1,389,928 732,416 2,672,178 200, 388 405, 858 1,136,356 140,996 1, 883, 598 December 7 689,689 1,583,117 675,451 2,948,257 240, 993 328, 546 910,004 181, 353 1,660, 896 1 Not including gold, silver, or the reexport trade. 2 Calculated in 1913 value units. * 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. 6 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. i Figures subject to revision. GERMANY. stance, remained at the abnormally low leve of 1919 until the summer of 1920, when they During 1920 the price situation in the United were increased by the Government, in the case States was puzzling, because of the difference of wheat as much as 178 per cent. Domestic in the degree to which commodities were coal, another commodity whose price was conaffected by the expansion and contraction of trolled, was advanced in May, 1920, and has trade. In Germany the trend was even more not been lowered since then. Iron and steel complex; in fact prices can scarcely be said to prices have been kept in rather closer harmony have had any general trend during the period. with foreign prices, rising until May, then A recent publication of a general price index declining, and finally remaining steady. The number by the Frankfurter Zeitung, the first index as a whole shows the influence of these comprehensive study of German prices since divergent price tendencies, but, contrary to before the war, bears out this conclusion, and the general impression, makes it apparent that also shows in striking fashion to what extent prices at the end of 1920 were higher than they German prices are out of harmony with those were at their peak last spring. To summarize of other leading countries of the world. This the fluctuations of the year, the following table situation is of course no more than was to be is excerpted from the Frankfurter Zeitung: expected in view of the constant and alarming inflation of bank credit which has been necessi- Index number of wholesale prices in Germany. tated by the ever widening difference between Government expenditures and receipts. Agricul- Textiles, All Earlier studies gave the impression that First of the month. pr t o u d r u a c l ts. lea e t t h c e . r, Minerals. Mi n s e c o e u l s la-com ti m es o . di- German prices had passed through two cycles, or four distinct movements, during the year; 1920. the rise in the spring, commonly referred to as January 100 100 100 100 100 February 119 154 143 125 135 the "catastrophe boom/' followed by the de- March 126 193 163 139 149 cline in the summer, this cycle followed in turn A M p a r y il 1 1 3 3 2 3 1 1 6 1 1 0 1 1 3 3 3 7 1 17 7 9 6 1 13 5 9 1 by another rise and fall. With the more June 148 110 116 212 146 July 145 86 113 211 136 reliable information now available, it seems August , 151 107 114 209 145 that this double cycle occurred only in the September.. 139 115 118 207 147 October 142 111 125 204 146 case of the nonferrous metals, cotton, and November.. 147 111 119 204 145 December... 160 133 118 200 153 leather industries, while prices of other groups moved in an entirely different fashion. The 1921. controlled agricultural commodities, for in- January. 156 95 121 184 139 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

202 FEDERAL RESERVE BULLETIN. FEBRUARY, 1921. A study of the figures for the all commodities tempt to compare present prices in Germany index show that the greatest increase occurred with those before the war, but begins with in February, 1920, when prices rose 36 per cent. January 1, 1920, since that is the period when The enormous increase in the prices of silk, Government control of prices began to be recotton products, leather, and metals accounts moved. Commodities in Germany at the for this increase. During March and April present time may be divided into three groups: prices continued to rise but in May declined, (1) Those whose prices are fixed in a bourse only to increase again in June. TKis see-saw or exchange, chiefly metals and cotton; (2) movement in the index number during the those whose prices are regulated by the Govsummer was caused by the fact that prices ernment or by syndicates, such as the bread, were quite out of harmony with one another grains, lard, sugar, coal, iron, potash, nitrobut were being arbitrarily raised or lowered, as gen, etc.; (3) those whose prices are deterthe case might be, by the Government. Prices mined by free competition. rose steadily from September to December, the The index which the Frankfurter Zeitung level on December 1 being over 50 per cent has made includes 70 commodities, divided above that of the preceding January. The in- into four groups. In the first group are index for the 1st of January shows a marked cluded 24 agricultural commodities: wheat, decline in the price level, however. The price rye, oats, barley, corn, potatoes, beans, peas, of more than a third of the commodities in the lentils, rice, eggs, meat, lard, margarine, butindex declined; the only ones showing distinct ter, milk, condensed milk, cacao, coffee, sugar, increases are tin, steel scrap, rye, barley, lignite, beer, tobacco, hay, and straw. In the second peat, benzine, and silver. This last decline group are textiles and leather: cotton, wool, was not caused by alternations in exchange silk, cotton yarn, cotton cloth, artificial silk, rates, as was the case in the spring, but was seem- flax, hides, leather, and shoes. The third ingly influenced by declines in world markets. group covers minerals: noncoking bituminous The disparity between prices in Germany coal, coking coal, foundry coke, lignite, peat, and those in the rest of the world during the iron ore, foundry iron 1, rolled plates, steel Sast year has been caused in large part by in- scrap, iron bars, copper, tin, zinc, lead, alumiation, which is still going on there. The num, nickel, and silver. The fourth group innote issue of the Eeichsbank increased 33 cludes miscellaneous commodities: machine billion marks in 1920 and 4 billion marks oil, petroleum, benzine, benzol, newsprint in December alone, and although the latest paper, cement, bricks, salts of potash, sulstatement of the bank shows a decrease of phate of ammonia, lime nitrogen, kainite, almost 1J billions in the note issue, the pres- dyestuff, alcohol, timber, firewood, saltpeter, ent policy of the Government does not make calcium carbide, and hops. it seem probable that this decrease will be The index is unweighted and is computed continued. However, almost 2 billion marks by finding the relative changes in the price of of the loan bank notes (the Darlehnskas- each commodity (using January 1, 1920, as senscheine, which have supplemented the 100) and averaging the relatives thus obnotes of the Reichsbank in Germany) were tained. On the whole, it would seem that withdrawn from circulation during 1920. the index number includes a wide enough range There has been a good deal of criticism of the of commodities to reflect the general movewhole idea of the loan banks in Germany ment of German prices. The Frankfurter Zeilately and this withdrawal of notes may be the tung has undoubtedly been hampered in its beginning of their entire abolition. choice of commodities by the quotations avail- In constructing a wholesale price index for able, for the manufactured articles included are Germany, the Frankfurter Zeitung has per- somewhat limited. The most conspicuous omisformed a useful service for all who are in- sion among the raw materials is that of rubber. terested in German economic conditions. Be- The following tables give a brief survey of cause of the lack of such a measure it has been the financial situation in Germany during* the impossible both during and since the war to last month. It will be noted that the note form an accurate opinion of the trend of circulation of the Reichsbank reached a new German prices. The new index makes no at- high level on December 31, 1920. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

FEBRUARY, 1921. FEDEBAL BESERVE BXJLLETIK. 203 German financial situation. Millions of marks. 1920—January 12,938 [In marks.] February 12, 721 March 13, 731 Keichsbank statistics. April 13,776 May 13, 567 June 13, 633 Reserve. July 13,328 August 13,266 Gold. D R a e u r i n l c e d h h s n - - l c a N i t r o i c o t u e n - . Deposits. S O e c p to te b m er b er 1 1 3 3 , ,0 3 2 4 4 8 skassen- November 12,370 scheine. December 12,033 000,000's. 000,000's. 000,000}s. 000,000's. Berlin exchange fluctuated throughout De- 1913 average 1,067.6 32 1,958 cember and the first week in January. During 1920, end of— April 1,092 15,193 47,940 16,499 the year 1920 the change in the situation of the May 1,092 15, 907 50,017 17,024 June 1,092 17,252 53,975 23,414 mark: has been as follows: July 1,092 17,874 55,969 17,282 August 1,092 18; 686 58, 401 15,772 September 1,092 19,861 61, 735 20,054 Berlin exchange. October... 1,092 21,3-11 63,566 17,945 November. 1,092 20,363 64,284 17,340 December] 1,092 23, 417 68,806 22,327 Par. J 1 a 9 n 2 . 0 2 . , De 1 c 9 . 20 2 . 9, Situation of the Government. Marks to the— Receipts Pound sterling. 20.40 187.75 257.45 from Dollar 4.20 46.95 73.92 t G ax m o e v e s e n a r t n n - d Fl d o e a b ti t n . g 3 i m p lo e p a r e n r c . i 1 e a n l t 5 p w er a r cent S F w re i n ss c h fr a f n ra c nc... 1 4 1 . . 5 3 4 5 1 4 1 . .1 2 4 8 monopolies. SWEDEN. 000,000's. 000,000's. 1913 average 265 75.90 1920 A , p e i n i d l of— 2,072 74.50 98.75 STOCKHOLM, December 27, 1920} May. 2,599 67.50 98.70 The rate of inflation in Sweden is represented J J u u n ly e 3 3 , , 2 7 2 3 7 9 1 14 4 8 1 , ,9 7 8 5 7 0 6 60 2 . . 6 9 4 0 9 9 8 8 . . 3 5 0 0 fairly well by the increase in the circulation of August 3,635 60.80 98.70 the notes of the central bank. For,, except September 4,126 "156*825" 62.25 99.90 October 5,121 161,920 66.25 99.00 small coins, these notes constituted practically N De o c v e e m m b b e e r r 6,130 165,918 6 7 5 2 . . 7 3 5 0 9 9 8 8 . . 9 8 0 0 the whole circulation of the country before the war and do so still. In order to get a good 1 Subject to revision. 2 Quotations of the Berlin Bourse. measure of the inflation it is, however, necessary to eliminate the influence of the monthly varia- The following table gives a survey of the tions of the circulation. Taking monthly means Loan Bank notes (Dariehnskassenscheine) in of the circulation for the four years 1910-1913, circulation since 1914. These notes are secured I have arrived at a typical series of monthly by war loan and other securities deposited variation of the circulation, and allowing for a, with the Darlehnskassen. normal yearly increase of this circulation by 0.75 per cent, corresponding broadly to the DarlehnsJcassenscheine in circulation. usual increase of the population, I have calcu- Millions of marks. lated the "normal circulation" for each month 1914—December 31 446 from 1914 up to the present time. Comparing 1915—December 31 972 now the actual circulation with this normal 1916—December 31 2,873 circulation I get an expression for i' the relative 1917—December 31 6,265 1918—December 31 10,242 increase of circulation." End of— The inflation of the Swedish money thus 1919—January 10,293 measured reached its highest point in Decem- February 10,556 March 11,028 ber, 1918, with the figure 350. During 1919 a April 11,169 reduction took place and a minimum of 307.7 May 10, 967 was reached in September. The inflation has June 12,027 since been increased by some few per cent, but July... 11,929 has on the whole been fairly constant during August 11,687 September 11,815 1920. The figure for November is 324.2. October 11,777 November 12,815 i This survey was contributed by Prof. Gustav Cassel, a known au- December 13,781 thority in the field of money and banking. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

204 PEDEKAL RESERVE BULLETIN. FEBRUARY, 1921. Now, it is of course interesting to compare Norway and Denmark, where wages have risen this measure of inflation with index numbers of still more and whose crowns command a prices. The index for wholesale prices, which correspondingly smaller value in the interis published by "Svensk Handelstidning," national market. shows for November the figure 331. The The export trade of Sweden has this year official unweighted index for food (including reached a record, the total value of exports fuel and light) shows for the same month the having during the period January-^September, figure 325. Thus the three different measures reached the value of 1,728 million kronor, give about the same result. This is natural against 1,089 million kronor in the same period enough; Sweden has not become richer than it in 1919. Imports have, however, been still was before the war. Its need of bank notes greater, with a value for the same period of 2,649 has, therefore, only increased in the same pro- million kronor, leaving us with an unfavorable portions as prices. trade balance of 921 million kronor for three- Comparing my figure for relative increase of quarters of the year. This balance is in reality circulation in Sweden for September (323.3) probably somewhat lower than shown statistiwith the official price index of the United States cally. In considerable part it is paid for by the (242), I come to a "purchasing power parity" Swedish shipping trade, but the rest represents of 1 dollar to 4.98 kronor (against 3.73 shrinkages in foreign credit balances. kronor as the old gold parity.)2 The actual mean of the New York exchange quoted in STATISTICAL SUMMARY. Stockholm during the month was 4.97 kronor, thus practically tie same. The very sharp fall The tables published below have been furof prices which has taken place in the United nished the Division of Analysis and Research States in October and November has, of course, by the Skandinaviska Kreditaktiebolaget of increased the domestic value of the dollar. Stockholm. Complete monthly figures for the And as the Swedish crown has practically seven years from 1914 to 1920 are published in remained unaltered, the value of the dollar order that the trend of these important items relative to the Swedish crown ought to have during the war period may be better underincreased approximately in the same degree. stood in this country. The Skandinaviska This increase has, however, only shown itself Kreditaktiebolaget has offered to furnish the to a limited degree in the actual exchanges. division with similar material by cable each The purchasing power parity of the dollar month. calculated as above is for October 5.38 kronor The first three tables apply to the Riksbank, and for November 5.84 kronor. The monthly and show the gold held by the bank, the note mean of the quotations of the dollar in Stock- circulation, and the discounts. As Sweden has holm is 5.09 kronor for October and 5.26 concentrated her metallic reserve in the Rikskronor for November. But it is only natural bank, the figures given cover practically all of that such a violent fall of prices as has taken the gold held within the country as well as place in the United States should require some abroad. The note circulation of the Riksbank time before it is reflected in the foreign ex- is likewise exclusive, no other kind of notes changes of the country. having been issued during the war. In spite of Great efforts are now being made in Sweden the very striking increase in gold holdings of in order to reduce the inflation. The minimum the bank during the war, the ratio of reserves discount rate of the central bank is 7.5 per cent, to notes has stood at approximately 35 per and loans against securities are mostly at 8.5 cent throughout recent months, as compared per cent. The expenditure of the State and of with 45 per cent in July, 1914. local bodies is being severely cut down. With Discounts with the Riksbank have increased these measures we can confidently hope to markedly during 1919 and 1920, standing at prevent further inflation. Actual deflation, the high point of 568 million kronor at the end however, seems in| Sweden to involve much of August, as compared with 139 million greater difficulties |than in the United States. kronor at the same time in 1919 and 69 million For in Sweden wages have risen nearly as kronor in 1918. On September 17 the dismuch as prices, whereas the rise of wages in count rate at the Riksbank was raised to the United States seems to have lagged con- 7£ per cent, with the result that during that siderably behind the rise of prices. To bring month and October there has been a falling down the general level of nominal wages will off in discounts with the central bank. A always, in a country like Sweden where labor similar reduction has not occurred, however, is very well organized, prove extremely difficult. in the loans and discounts of the joint stock In this respect the situation is still worse in banks, which have been steadily increasing since June. In discussing the policy of the 2 See " Memorandum on the World's Monetary Problems," by Gustav Riksbank in raising the rate the governor of Cassel, printed for the League of Nations, London, 1920, p. 15. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

FEBRUARY, 1921. FEDEBAL, RESEttVE BULLETIN. 205 the bank stated: "The raising of the dis- Loans and discounts of the joint stock banks. count rate is not to be looked upon as an indica- [MiUion kronor.] tion that credits for legitimate requirements will not be obtained, but as a renewed exhorta- End of— 1914 1915 1916 1917 1918 1919 1920 tion to exercise the greatest restraint and discretion in asking for and granting credits/7 January 2,327.9 2,422.9 2,562.7 2,954.5 3,880.0 5,326.2 5,843.4 February...2,355.2 2,449.2 2,596.1 3,052.6 4,021.1 5,387.4 5,914.4 Gold holdings of the Riksbank at home and abroad. A M p a r r i c l h 2 2 , , 3 3 4 5 5 8 . . 1 3 2 2, , 4 4 8 5 9 8 . . 0 1 2 2 , , 6 6 5 7 6 2 . . 5 3 3 3 , , 0 1 9 6 9 9 . . 7 4 4 4 , , 1 2 4 8 2 1 . . 9 3 5 5 , , 4 5 8 03 8 . . 7 2 5 5 , , 8 9 7 6 7 9 . . 4 4 May 2,347.2 2,503.9 2,717.4 3,215.4 4,322.3 5,563.9 5,998.6 [Million kronor.] June 2,355.6 2,503.4 2,746.8 3,324.4 4,469.1 5,639.3 5,982.9 July 2 360 22 495 1 2 781.6 3,322.9 4 666.9 5,680.7 6,028.9 August 2,325.5 2,496.3 2,800.7 3,381.1 4,799.6 5,736.4 6,007.4 End of— 1914 1915 1916 1917 1918 1919 1920 S O e c p to te b m er ber.. 2 2, , 3 3 8 5 7 8 . . 5 1 2 2 , , 4 4 9 8 6 8 . . 8 8 2 2 , , 8 8 2 5 4 2 . . 4 1 3 3 , , 4 5 6 7 7 6 . . 7 4 4 5 , , 9 0 0 1 5 4 . . 6 8 5 5 , , 7 7 3 4 2 6 . . 5 0 6 6 , , 0 0 6 7 8 9 . . 7 0 November.. 2,385.9 2,520.4 2,863.4 3,703.7 5,091.1 5,769.6 6,117.8 December.. 2,368.3 2,517.7 2,908.9 3,775.1 5,187.3 5,747.5 6,211.3 January 103.3 108.6 142.3 186.6 236.0 279.8 271.5 February 104.3 113.2 160.9 191.4 235.3 288.2 265.2 March 104.2 113.3 160.8 193.2 258.1 288.1 261.1 April 104.1 113.4 165.0 194.3 257.7 287.4 261.0 Wholesale prices reached their peak in June, May 104.9 113.4 166.3 202.9 258.7 290.0 261.0 June 105.4 113.4 166.1 202.7 258.0 288.9 261.1 1920, and at present are declining fairly July 104.0 113.4 165.9 204.6 257.4 288.3 261.3 rapidly. Retail prices, on the other hand, August 103.2 113.4 165.8 204.5 263.4 300.3 261.4 September 103.5 113.4 170.9 214.6 273.6 300.1 279.8 continued to increase until August, but since N O o ct v o e b m er ber 1 1 0 0 3 4 . . 9 4 1 1 1 1 3 3 . . 4 3 1 1 7 8 8 2 . . 0 4 2 2 2 2 3 6 . . 5 4 2 2 7 8 4 3 . . 5 4 2 3 9 0 9 0 . . 7 0 2 2 8 8 2 2 . . 4 4 then have been slowly decreasing. December 108.5 124.6 183.5 244.5 285.6 281.2 281.8 The index number of wholesale prices published below is that compiled by the Svensk Handelstidning. It is based upon 47 market Note circulation of the Riksbank. quotations of raw materials or goods in the [Million kronor.] first stages of manufacture. The quotations are taken as of the middle of each month, End of— 1914 1915 1916 1917 1918 1919 1920 except in the case of vegetable and animal foods which are averages of weekly quotations. January 2 2 1 0 3 5 . . 9 3 2 2 6 7 7 6 . . 5 9 2 3 9 0 3 3 . . 6 6 3 3 7 93 6 . . 5 1 5 5 2 6 4 0 . . 7 2 7 7 2 2 1 1 . . 0 6 6 6 7 8 3 5. . 5 3 The index number is based upon prices in March 233.6 292.4 331.6 438.8 630.7 750.7 741.6 July 1, 1913—June 30, 1914 = 100, and is April 219.2 278.4 322.4 434.3 614.9 722.2 718.3 May 226.6 275.5 328.8 433.3 625.0 702.6 708.3 weighted according to the value of the con- June 239.0 293.3 352.5 466.0 667.5 727.9 736.5 sumption of the goods during the year imme- July 228.4 276.2 324.8 442.4 645.2 683.1 724.8 August 279.6 282.1 345.5 467.1 688.7 694.2 742.2 diately preceding the war. To quote the news- September 294.6 309.5 386.9 521.0 761.7 751.1 779.8 October 284.0 308.7 376.0 522.6 761.0 732.8 772.8 paper: "It is understood that, in some cases, November 283.7 302.6 380.7 535.0 784.0 723.5 752.8 the estimation of the consumption is very December 304.1 327.9 417.5 572.7 813.5 747.6 759.9 approximate, even for the initial period, and that the conditions of production and con- Paper rediscounted with the Riksbank sumption in Sweden have changed very much in consequence of the abnormal perturbations [Million kronor.] of the war. As the price of coal and coke has risen to eleven times the prewar price, the End of— 1914 1915 1916 1917 1918 1919 1920 general rise in the wholesale prices, as indicated January 86.7 97.4 48.8 43.7 68.4 126.0 343.1 by our price index, is probably somewhat February 69.5 74.7 32.5 28.7 32.1 93.6 360.6 exaggerated." _ March 99.0 85.2 40.0 106.1 70.7 146.9 507.4 April 88.2 74.7 42.1 97.6 45.4 131.3 497.7 The official retail index number isjbased May 87.0 62.1 23.1 94.9 34.2 152.8 473.5 June 83.0 69.0 16.8 62.9 42.7 153.7 531.1 upon the prices of 51 (from 1920, 50) articles July 89.4 87.6 17.7 100.8 71.7 138.7 514.2 of food, fuel, and lighting in 44 (from 1920, 49) August 142.6 63.7 16.4 98.6 68.5 138.7 567.8 September 127.1 62.3 31.5 98.3 143.1 239.2 547.0 towns, weighted according to the budget of a October 103.0 65.0 37.7 59.5 124.6 240.9 503.4 November 115.4 56.6 44.4 57.4 150.7 269.6 447.2 working man's family which before the war December 158.6 96.1 94.5 111.2 200.1 412.8 451.3 had a yearly budget of 2,000 kronor. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

206 FEDERAL RESERVE BULLETIN. FEBBUAEY, 1921. Group index numbers—Sweden, Svensh Nandelstidning. [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 i w 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. Paper pulp. H le id a e th s e a r n . d Textiles. Oils. 1913-14 100 100 100 100 100 100 100 100 100 100 19H1 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 - - 261 409 340 804 258 286 308 211 1919. December 241 362 319 840 237 294 343 258 350 204 1920. January 248 328 317 864 248 295 388 258 353 204 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 Mav 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 Ausrust - . 271 307 310 1,117 286 388 756 191 328 322 September 273 312 308 1,085 273 388 753 180 310 340 October 258 306 309 1,026 256 390 740 166 250 340 Novomber 264 290 303 910 253 387 609 161 233 332 December 247 283 301 602 247 362 598 156 206 328 i Average for six months ending Dec. 31,1914. Official index number of retail prices of foodstuffs, fuel, and Valve of imports and exports. lighting, 1914-1920*. [Million kronor.} [July 1914=100.] Excess of Dairy Imports. Exports. im o p v o e r r ts prod- Bread, Other Fuel exports. Year. g ( u e m 1 a g c 0 r a g t i s r n a s - , , r e -t g ( f i 1 a l c r 1 o o n l e u a d a s t r r ) s - . , t ( M i 8 cl e e a a s r t - ). t ( i F c 9 i l s e a h s r ) - . t s ( i f c t o 6 u l o e f a d f s r s - ) - . t l ( i i a c i 7 g n n l h e g a d s t r - ) - . W in e d e i i d g ce h s t- . J F a e n b u r a u r a y r y 1920 , . 2 28 3 2 8 . . 1 0 1 10 2 6 6 . . 0 8 1 1 1 7 1 6 . . 2 1 ticles). March 301.1 150.5 150.5 April , 266.9 163.7 103.3 M^y , 314.2 227.1 87.1 1914—3d quarter.. 101 109 98 102 103 107 103 June , 283.3 223.6 59.8 4th quarter. 110 118 95 102 112 108 107 July 331.1 267.7 63.4 1915—1st quarter.. 112 124 106 103 128 112 113 August 307.6 229.8 77.8 2d quarter.. 114 135 122 102 135 119 121 September 324.5 232. 8 91.7 3d quarter.. 124 133 137 118 129 135 124 October , 299.3 217.8 81.5 4th quarter. 141 124 140 142 130 151 128 1916—1st quarter.. 143 124 144 150 137 159 130 2d quarter.. 146 125 157 152 138 167 134 3d quarter.. 152 126 182 176 150 187 142 AUSTRIA. 4th quarter. 170 131 193 196 168 192 152 1917—1st quarter. - 179 159 192 203 202 207 166 2d quarter.. 190 161 193 188 225 228 175 Since the disruption of the old Austrian mon- 3d quarter.. 203 158 190 202 228 264 181 archy not only have the finances of the new 4th quarter. 237 161 212 251 221 330 201 1918—1st quarter.. 275 173 285 286 241 347 227 Republic of Austria shown a chronic and stead- 2d quarter.. 283 188 445 323 237 352 255 3d quarter.. 304 189 506 377 234 372 277 ily growing deficit, but the budgetary provi- 4th quarter. 414 244 490 430 266 395 320 sions have never approached, even remotely, 1919—1st quarter.. 400 255 467 354 295 414 335 2d quarter.. 403 256 474 307 284 389 328 the actual requirements of the treasury. This 3d quarter.. 383 264 476 303 259 370 311 4th quarter. 383 274 407 294 240 393 308 was due, especially in the beginning, to the 1920—1st quarter.. 331 278 360 272 243 410 293 uncertainties regarding the boundaries of the 2d quarter.. 303 296 349 255 243 447 295 3d quarter.. 308 301 355 277 241 500 304 new state and the share it would have to bear July 296 303 354 272 239 492 297 August 315 302 356 279 240 503 308 of the obligations of the old monarchy. A more September . 314 299 354 279 245 504 307 important and persistent factor, however, has October 321 297 348 270 240 502 306 November.. 328 294 327 272 237 492 303 been the rapid pace at which the process of in- December . 294 flation has been progressing. As a result, every few months the budgetary estimates have had The volume of foreign trade is shown in the to be revised and new treasury loans authorized. accompanying table: The budget for the fiscal year ending June 30, Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

FEBRUARY, 1921. FEDERAL, RESERVE BULLETIN. 207 1920, had to be redrafted at least four times, in June, so that all estimates for food imports and the scale on which the successive revisions and for the public debt are now tremendously were effected may be seen from a comparison increased. Early in December the Minister of the estimates made in the first draft, in July, of Finance stated that if the exchange situation 1919, and those of the fourth draft, in May, that had prevailed for the last few months 1920: continued, the loss due to depreciation would [Millions of kronen.] be about 12 billions, instead of 3.9 billions, as originally estimated. Moreover, the budget July, 1919. May, 1920. did not include any charge for the cost of foodstuffs and raw materials to be imported from Receipts 3,454 6,294 abroad on the basis of the five-year credits Expenditures 8,442 16,873 Deficit 4,987 10,579 that have been granted Austria, although the anticipated proceeds from the sale of those products (over 800 million kronen) were in- At the conclusion of the fiscal year it was cluded in the estimate of revenues. Finally, stated that the actual deficit would greatly exsince last June, new increases in the salaries of ceed the latter estimate. civil servants have been granted, aggregating, When the budget was originally voted, the at the end of November, between 2 and 3 treasury was authorized to effect credit operabillion kronen. On the other hand, the tions to the amount of 2.5 billion kronen. This revenues from inheritance taxes, the income was followed by other authorizations, so that tax, and indirect taxes, have been less than the total increase of the public debt of the new estimated. In his speech at the National state for the year 1919-20 alone amounted to Assembly on December 3, Dr. Grimm, the 12.6 billions. The lottery loan floated last Minister of Finance, estimated the deficit for spring in order to meet maturing war obligathe year at about 25 billion kronen, or double tions yielded 1.2 billion kronen, but as this was the original estimate. Even this figure, howthe only loan obtained through public subscripever, is below the actual deficit, as the Minister tion the sale of short-term treasury certificates did not include the cost of foodstuffs imported was the main source of funds. These bills were on long-term credit or the charges on the pubtaken up by bankers, who immediately dislic-debt service accruing on that account. counted them at the Austro-Hungarian Bank, the result being a steady expansion of the note Since the beginning of the current fiscal circulation. year, and until the beginning of December, The budget for the fiscal year 1920-21, drafted credit operations to the total amount of 9 in June, 1920, gave the following estimates: billion kronen had been authorized and effected, but the proceeds had been totally [In millions of kronen.] exhausted by the end of November. On Receipts 20,665 December an authorization was given for an Expenditures 33,194 additional 3.5 billions, which the Minister of Deficit 12,529 Finance expected to be sufficient to meet the The anticipated revenues were thus more requirements of the Treasury until the end of than three times larger than those of the pre- the year. On December 16 the Minister asked ceding year. The increase in expenditures was for a new authorization for 8 billion; he stated chiefly due to two items, namely, food supply at the same time that of the 11.9 billions reand salaries and pensions. The net loss on ac- quired by the Treasury for the months of count of the food subsidy is estimated at 6,760 January and February, over 90 per cent would million kronen. Salaries and pensions, as a have to be obtained through loans. These result of successive increases and allowances credit operations, which did not include the granted last year, are estimated at 8,931 mil- foreign credits of 17,500 million kronen for lions, as compared with 4,569 millions in 1919- food imports have been effected chiefly by the 20. Another important item in the increase of sale of short-term Treasury certificates. The expenditures is the anticipated loss from the only exception seems to have been the issue, rise of exchange and the depreciation of the in October, 1920, of 6 per cent Treasury krone, which is estimated at 3.9 billions. The bonds, from which 617 million kronen had been public debt charge alone amounts to 5,031 mil- realized by the end of October. lion kronen. On June 30, 1920, Austria's public debt was These estimates, however, are of little value officially estimated at 59.8 billion kronen, of now as they were made up on the basis of which 14.9 billions represented the debt conexchange rates and prices in December, 1919, tracted by the new Eepublic, and 44.9 billions, and June, 1920. By the end of 1920 the rate its share of the debt of the old monarchy. The of exchange was about three times higher than debt has since been increased by the successive Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

20 FEDERAL RESERVE BULLETIN. FBBRUAET, 1921. issues of Treasury certificates and by the for- Of the 328 million kronen, which constituted eign import credits of 17.5 billions, so that it the reserve of the Austro-Hungarian Bank on was expected to attain by the end of the year November 23, 1920, Austria's share amounted the amount of nearly 100 billions. to 17 millions. This consisted almost exclu- The note circulation of the Austro-Hun- sively of foreign securities payable in gold, garian Bank increased from 54,481 million Austria's share of the 223 million kronen gold kronen on December 31, 1919, to 77,024 million reserve of the bank being negligible (51,000 on November 30, 1920. Beginning with De- kronen). cember, 1919, a separate account has been JAPAN. kept of new Austria's share in the assets and Following is a table showing the conditions liabilities of the bank. Her share in the note of the Bank of Japan during the year 1920. circulation was 12,134 million kronen on It is hoped that the material included in these December 31, 1919; and it had increased to tables may be published regularly each month. 17 billions on the last week of July, 1920. As The latest figures are subject to revision, as a result of the successive sales of Treasury they are furnished by cables to the Bank of certificates, the expansion became more rapid Japan agency in New York. On the whole in the new fiscal year, as is shown by the folthe latest statistics seem to show a further lowing table: trend toward the condition of affairs that existed before the war. fin billions of kronen.] 1920— The recent increase in the private deposits July 23 17. 7 and discount items of the Bank of Japan as August 31 20. 0 well as the advance in note circulation is September 30 20. 5 November 23 27. 0 probably due to end-of-year settlements. Bank of Japan. [In thousands of yen.] End of— d G e m o p v o e e s n r i t t n s - . d P e r p i o v s a i t t e s. Discounts. Loans. o A n d b v f i a o ll n r s e c . i e g s n No l t a e t io c n ir . cu- R c r o e a u d te n is . t - Per cent. January... 1,118,635 48, 557 249,425 55,295 324, 397 1,375,170 8.03 February. 1,119,635 26,088 276, 846 59,463 339, 988 1,360,457 8.03 March 1,143, 223 37,613 290,457 73,259 281,372 1,368,056 8.03 April 1,170, 574 90,131 381,281 51,107 316,727 1,366, 577 8.03 May 1,123,643 85,117 393,854 51, 316 322,414 1,327, 856 8.03 June 1, 077,872 86, 945 334, 881 45, 711 258, 924 1,349, 065 8.03 July 1, 061, 549 58,096 226, 245 46, 548 246,107 1,202,433 8.03 August 1,147, 922 53,619 230, 750 47,598 256,006 1,217, 076 8.03 September 1, 027,427 51,138 132, 309 47,915 1,170,144 8.03 October... 1,006,775 41,497 113,631 50, 592 126,136 1,192, 082 8.03 November 1,038,191 98,859 76,376 51,369 91,332 1,118,351 8.03 December. 940,956 98,581 109,233 48,814 73,478 1,311,234 8.03 In addition to the statistics above, showing Tokyo banks. the condition of the Bank of Japan, it has been considered advisable to publish statistics [In thousands of yen.] showing the conditions of other banks in Tokyo and the money rate. These figures indicate Tokyo Associated Banks. Tokyo that although in November and December bank clear- Average ings discount loans have been considerably reduced from End of— (total rate the large dimensions of the earlier part of the Total Total Cash on within (Tokyo deposits. loans. hand. the market). year, they are still at a very high point. Cash month). holdings of the Tokyo Associated Banks at the end of December were at the highest point Per cent. of the year, amounting to 223 million yen, as January 1,929,250 1,929,250 192,987 3,063,495 9.38 February 1,932,460 2,021,621 179,673 3,532,102 9.67 compared with the minimum of the year of March 1,956,987 1,982,134 201,543 4,135,258 10.15 121 million yen in August. The discount April 1,983,069 1,981,932 189,375 3,168,387 10.62 May 1,974,171 2.089,358 195,618 2,922,032 10.95 rate with the banks reached the highest point June 1,921,628 2,036,450 210,622 2,524,263 10.99 in June, amounting at that time to practically J A u u ly gust 1 1 , , 7 8 8 3 8 6 , , 5 6 4 1 4 2 2 2 , ,0 0 2 1 8 3 , , 5 8 6 7 5 1 1 1 6 2 2 1 , ,1 2 5 9 6 1 2 2, , 1 1 3 0 9 9 , , 1 4 3 3 2 1 1 1 0 0 . . 8 9 0 5 11 per cent; since then there has been a steady September 1, 823,548 2,075,903 152,849 2,032,421 10.59 October 1, 826,522 2,133,237 147,527 1,921, 862 10.48 although gradual decline, the rate now stand- November 1,689,000 1, 823,000 159,000 2,302,000 ing at approximately 10.5 per cent. December 1,769, 000 1, 866,000 223,000 2,841,000 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

FEBRUARY, 1921. FEDERAL RESERVE BULLETIN. 209 As has been frequently pointed out, the de- Foreign trade. cline in wholesale prices in Japan during the [In thousands of yen.] year has been more spectacular than in any other country in the world. A high point was End of— Imports. Exports. reached last March, when the index number showed prices to be 321 per cent of the 1913 January... 204,767 176,347 level. By December they had dropped to 206 M Fe a b rc ru h ary. 3 2 2 7 9 0 , , 0 6 2 4 7 2 1 1 7 9 4 3 , , 2 5 8 7 7 0 per cent of prices in 1913, indicating a steady April 296, 832 217,457 May 295,950 193,363 decline throughout the year. The volume of June 220,183 183,810 the foreign trade of the country steadily de- July 157,133 154 318 August 123,197 175,060 clined during the second half of 1920, reaching September 117,600 154,354 October... 105,746 133 389 its lowest level in December. November. 106,958 103 993 December. 105,000 87,000 Group index numbers—Italy. Prof. Bacni. [1913-100.] Date. C m a e e r n a e d a ts l . s s O f t o u t o f h f 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 . Date. C m a e e n r a e d a ts l . s s O f t o u t o f h f 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 . 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 381 418 962 996 489 1917 215 171 326 596 266 April 395 494 1,064 1,076 535 1918... . 315 229 475 750 391 May 441 499 840 1,088 525 1919 316 340 427 414 360 June 445 511 742 917 534 July 434 508 759 903 542 1919 \ ugust 445 510 794 957 540 December 338 373 658 584 405 September. 459 520 837 1,040 541 October 446 502 810 1,077 572 November .. 475 535 763 1,009 585 December 481 531 675 928 620 Group index numbers—Calcutta, India, Department of Statistics. [End of July, 1914=100.) Date. B m ri i u n a a i l t g l s e d . - - a M t r u t f i a a r c c n e l - u e d s - . Metals. s H k a i n i d n d e s s . C m tu f o a a r t n c e to - u s n . - co R t a to w n. m tu J f a a u r n c e te - u s. - O t t i e l t e h x s e - . r Oils. j H u a te w . se O ed il s. Tea. Sugar. Pulses.Cereals. O fo t o h d 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 89 96 95 179 1119 1920. January 118 225 226 253 356 214 181 153 159 125 200 96 377 207 167 204 February 158 217 215 233 364 185 164 158 155 123 190 92 363 191 158 199 March 127 218 222 211 351 179 150 159 135 118 166 87 321 160 151 192 \pril 114 201 219 209 357 158 170 161 116 119 163 90 377 159 156 185 May 128 215 248 160 365 135 142 164 123 120 169 90 511 150 157 183 Jime 131 233 244 116 364 144 147 164 . 119 83 171 73 482 149 156 180 July 139 235 249 100 364 132 151 168 119 89 169 74 503 159 151 188 August. 142 235 257 99 360 139 163 168 115 91 167 72 477 160 154 185 September 158 237 245 105 347 154 163 164 115 105 179 65 456 170 154 186 October 154 282 245 96 343 142 136 164 132 104 184 64 392 169 155 178 November 161 246 243 89 341 133 118 164 118 90 163 62 348 168 150 173 December 161 229 242 90 133 116 107 156 124 152 69 273 149 139 160 i Includes pulses. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

210 FEDERAL RESERVE BULLETIN. FBPRUARY, 1921. Group index numbers—Australian Commonwealth—Bureau of Census and Statistics. [July, 1914=100.] Date. Me c ta o l a s l a . nd T le e a e x t t t h c il . e e r s , , p A ro t g u d r r i u c a c u l t l s - . pr D od a u ir c y ts. G to r b a o a n c c e d c ri o e . s Meat. m B a u t i e l r d i 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.... 193 217 186 137 147 145 261 282 1919. 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 August .. 209 251 238 189 193 284 312 282 September 211 222 231 209 196 273 295 276 October 222 220 208 214 196 226 289 276 November 222 180 206 212 195 211 281 255 December 216 156 193 210 198 193 271 252 Group index numbers—Canadian Department of Labor.1 [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 v a a r b e n u g l d e i e t s - s . f O o t o h d e s r . Textiles. l H ea e i t d t h c e . e s r , , Metals. m Im e p n l t e s - . m B lu a u m t i e l r d 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 c h 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 226 199 192 206 222 285 213 173 228 171 201 205 1919. 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 301 207 189 358 275 323 215 213 237 294 257 203 302 206 183 338 274 314 186 207 238 295 279 206 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 254 202 202 190 261 296 169 207 259 273 296 217 October 229 194 207 177 249 292 156 203 259 265 211 211 November 201 184 209 203 236 273 153 195 259 265 270 205 December 190 179 221 189 222 251 141 178 259 252 269 201 1 Unimportant groups omitted. Group index numbers—United States, Bureau of Labor Statistics. [1913=100.] Date. I pr F od ar u m cts. F e o t o c d . , cl C o a l t o n h t d i h n s g. lig F a h n u ti d e n l g. pr M m o a d e e n u t t d a a c l l t s s. m b L u a u a i t m l n e d d r b i i n a e g r l. Ch d e a r m u n g d ic s a . ls fu H r g n o o i o s u d h s s i e n . g la M n i e s o ce u l s - . 1913 100 100 100 100 100 100 100 100 100 1914 103 102 98 96 88 98 101 99 98 1915 106 105 99 92 94 94 109 99 99 1916 119 124 123 114 142 100 157 115 117 1917 189 178 181 175 208 124 198 145 153 1918 219 191 240 163 181 152 221 195 192 1919 234 214 270 173 161 195 178 246 217 1919. November 240 219 325 179 164 236 176 299 220 December 244 234 335 181 169 253 179 303 220 1920. January 246 253 350 184 177 268 189 324 227 February 237 244 356 187 189 300 197 329 227 March 239 246 355 192 192 325 205 329 230 April 246 270 353 213 195 341 212 331 238 May 244 287 347 235 193 341 215 339 246 June 243 279 335 246 190 337 218 362 247 July 236 268 317 252 191 333 217 362 243 August 222 235 300 267 193 328 216 363 240 September 210 222 278 284 192 318 222 371 239 October 182 204 257 282 184 313 216 371 229 November 165 195 234 258 170 274 207 369 230 December 144 172 220 236 157 266 188 346 205 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

FEBKUAEY, 1921. FEDERAL RESERVE BULLETIN. 211 WHOLESALE PRICES IN THE UNITED 15 and 17 points, respectively, with the result STATES. that imports are only 12 per cent above 1913 prices and exports 46 per cent. The declines The Federal Reserve Board's all-commodi- in these two groups are due to the very marked ties index number stood at 171 in December as decrease in practically every commodity imcompared with 190 in November. This shows ported and in 50 per cent of the goods exa drop of 93 points since the high peak in May, ported. or a 35 per cent decrease. In comparing the indexes of the Federal Re- It is interesting to note that all groups, re- serve Board and the Bureau of Labor Statisgardless of stage of manufacture, were at prac- tics it will be seen that the decrease in Decemtically the same level in December. The drop ber was approximately the same in both cases. in raw materials and producers7 goods was in The fluctuations of the two indexes are in both cases 19 points, the drop in consumers' considerable harmony, although the index of goods 16 points. In the case of goods im- the Federal Reserve Board is at a lower level ported and exported there was a decrease of than that of the Bureau of Labor Statistics. Index numbers of wholesale prices in United States—Federal Reserve Board. [Average price for 1913=100.] Date. Go d o u d c s e p d r . o- Imported. Exported. Consumed. Raw ri a m l a s t . e- Pro g d o u o c d e s r . s'Con g s o u od m s e . rs' All. 1913. Average for the year , 100 100 100 100 100 100 100 100 1919. January 197 168 200 195 195 192 196 195 February 191 168 192 190 190 191 188 189 March 193 163 194 191 196 185 188 191 ^pril 198 165 194 196 201 181 197 196 **7 204 172 211 201 209 184 202 202 June 204 180 214 202 208 192 202 203 July 214 176 224 211 217 200 211 211 August , 221 174 219 218 217 206 224 218 September 215 170 212 212 211 203 216 211 October 215 174 226 211 213 207 214 212 November 222 179 242 217 220 213 219 219 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 October 213 142 181 211 211 209 203 208 November 195 127 163 193 192 190 187 190 December 175 112 146 174 171 171 171 171 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

212 FEDERAL RESERVE BULLETIN. FEBRUARY, 1921. 1NDEXNUMBERS0FWH0LESALE PRICES MPEXJWMBERSOFMOLESALE PRICES ItiTHEimiTED STATES-1919,1920. INTHE UNITED STATES-1919,1920. JilL Commodities JLawMajtericds. — ^Producers'Goods.— •••••••• doods exported- ••• tbnsumers'(7oods. •• 300 AVERAGE PRICE LEVEL 0F1913-I00. 300 300 AVERAGE PRICE LEVEL OF 1913 «• 100 300 280 280 260 260 240 240 220 220 200 7 200 ISO 180 V\ 160 /60 140 MO 120 120 100 100 1920 1919 1920 Index numbers of wholesale prices in the United Stales for principal classes of commodities—Bureau of Labor Statistics. [Average price for 1913=100.] Raw materials. All commodities Year and month. Producers' Consumers (Bureau of Farm Animal Forest Mineral Total raw goods. goods. Labor Staproducts. products. products. products. ! materials. tistics index number). July, 1914....... 102 106 97 91 j 99 93 103 100 December, 1914. 98 99 94 91 96 93 102 98 December, 1915. 110 97 93 104 I 102 116 107 106 December, 1916. 155 131 99 180 144 164 142 147 December, 1917. 235 178 130 162 ! 180 181 185 183 December, 1918. 237 210 150 185 ! 200 199 221 207 December, 1919. 288 209 259 186 233 228 245 238 January, 1920... 291 213 273 190 239 245 259 248 February, 1920.. 278 206 315 194 240 246 256 248 March, 1920 288 200 348 197 247 246 263 253 April, 1920 304 196 367 224 260 263 280 265 May, 1920 314 179 367 234 260 271 285 272 June, 1920 301 186 363 245 261 262 279 268 July, 1920 287 184 359 256 258 251 272 263 August, 1920 259 181 351 265 251 238 250 250 September, 1920 232 186 344 277 248 224 240 242 October, 1920... 191 172 339 272 230 209 224 225 November, 1920. 170 159 289 246 205 193 214 207 December, 1920. 155 132 283 224 187 175 196 189 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

FEBRUARY, 1921. FEDERAL RESERVE BULLETIN. 213 In order to give a more concrete illustration of actual 1920, to December, 1920, compared with like figures for price movements, there are also presented in the following December of previous years. The actual average monthl y 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 no W rth h e e r a n t, s N pr o i . n g 1 , , W re h d e a w t, i n N te o r . , 2, g C oo at d t l t e o , s c t h e o e i r c s e , , H h i e d a e v s y , p n a a c t k i e v r e s, Chicago. New Orleans. Minneapolis. Chicago. Chicago. steers, Chicago. Year and month. p A b ri v u c e s e h r a p e g l e . e r p R t r i e i v c l e a e - . p A p ri o v c e u e r n a p d g e . e r p R t r i e i v c l e a e - . p A b ri u v c s e e h r a p e g l e . e r p R t r i e i v c l e a e - . p A b ri v u c e s e r h a p e g e l. e r p R t r i e i v c l e a e - . A p p r v o i e c u 1 e 0 r n a 0 d p g s e e . r p R t r i e i v c l e a e - . p A p ri o v c u e e r n a p d g e . e r p R t r i e i v c l e a e - . July 1914 $0. 7044 114 $0.1331 105 SO.8971 103 SO.8210 83 $9.2188 108 $0.1938 105 December, 1914 . . - . . 6340 103 .0721 57 1.1921 136 1.2023 122 8.9125 105 .2250 122 December 1915 . 6794 110 .1185 93 1.1311 129 1.2322 125 8.4875 100 .2575 140 December, 1916 . 9125 148 .1757 138 1.7611 202 1.7275 175 10.2917 121 .3350 182 December, 1917 1.5875 258 .2894 228 2.1700 248 2.1700 220 13.2350 156 .3500 190 December, 1918 1.4290 232 .2958 233 2.2205 254 2.3088 234 18.3600 216 .2900 158 December, 1919 1.4485 235 .3990 314 3.0300 347 2.4490 248 17.0750 201 .4100 223 January, 1920 1.4750 240 .4035 318 2.9313 336 2.6338 267 15.9375 187 .4000 218 February 1920 1.4125 229 . 3944 311 2. 6875 308 2.4900 252 14.9688 176 .4025 219 March, 1920 1.5515 252 .4060 320 2. 7550 315 2.5000 253 14.4000 169 . 3640 198 April 1920 1.6913 275 .4144 326 3.0063 344 2.7725 281 13.9063 163 .3613 196 May 1920 1,9825 322 .4038 318 3.0750 352 2.9750 302 12.6000 148 . 3538 192 June 1920 1. 8390 299 .4030 317 2.9000 332 2.8950 294 15.0313 177 .3410 185 July 1920 1. 5388 250 .3950 311 2. 8313 324 2.8050 284 15.3813 181 .2944 160 August, 1920 1.5310 249 .3380 286 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 October, 1920 .8778 143 .2088 164 2.1063 241 2.2047 224 14.6875 173 .2550 139 November 1920 .8003 130 . 1780 140 1.7528 201 2.0570 209 14.5750 171 .2325 126 December, 1920 . 7341 119 .1444 114 1. 6809 192 2.0125 204 12.0938 142 .1900 103 H C og h s i , c a li g g o h , t, g "W ra o d o e l s , , O sc h o io u , r e | d - . | Hem Y lo o c r k k , . New Y N e f e l l l w o o o w r Y i n p o g i r n , k e . , s C to o v a t e i l d , , e a N w n e t a w h t r e Y a r c . o i r te k , , Co r a C u l n i , n b o c it i f u n m m na i i n t n i e . o , us, Year and month. p p A r o i v c u 1 e e 0 n r 0 a p d g e s e . r p R t r i e i v c l e a e - . p A p ri o v 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 ri v c 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 ri v c 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 i v c g e e r t a p o g e n e r . p R t r i e i v c l e a e - . p A r s i v t c h o e e o n r a r p . t g e e r p R t r i e i v c l e a e - . Julv 1914 $8.7563 104 $0.4444 94 $24. 5000 101 $42.0000 94 14.9726 98 $2.2000 100 December, 1914 7.1313 84 .4861 103 24.2500 100 41.0000 92 5.1796 102 2.2000 100 December 1915 6.2438 74 . 6429 136 21.2500 88 38.0000 85 5.1710 102 2.2000 100 December, 1916 9.7500 115 .7286 155 24.5000 101 41.0000 92 5.6801 112 4.5000 205 December 1917 16.7150 198 1.3571 288 30.5000 126 57.0000 128 6.4736 128 3.7500 170 December 1918 17.4400 206 1.4365 305 63.0000 141 7.9500 157 4.1000 186 December, 1919 13.6800 162 1. 2545 266 48.6666 198 112.0000 251 8.4098 166 4.1000 186 Tanuarv 1920 15.1250 179 1.2364 263 53.0000 219 112.0000 251 8.4291 167 4.1000 186 February 1620 14.9813 377 1.2384 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 October, 1920 14.7875 175 .7273 154 57.0000 235 152.0000 341 10.4732 207 7.1000 323 November 1920 . . . 12.1400 144 .6909 147 57.0000 235 124.5000 279 10.5417 208 7.1000 323 December 1920 9.6625 114 . 5455 116 57.0000 235 124.5000 279 10. 5179 208 7.1000 323 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

214 FEDERAL RESERVE BULLETIN. FEBRUARY, 1921. Average monthly wholesale prices of commodities—Continued. Coal, Pocahon- Coke, Connells- C e o l p ec p t e r r o , l i y n t g ic o , t, d L es e i a lv d e , r p iz ig e , d, Pe P t e ro n l n e s u y m lv , a c n r i u a d , e. Pig iron, basic. tas, Norfolk. ville. New York. New York. at wells. Year and month. Average Rela- Average Rela- Average Rela- Average Rela- Average Rela- Average Relaprice per tive price per tive price per tive price per tive price per tive price per tive long ton. price. short ton price. pound. price. pound. price. barrel. price. long ton. price. July, 1914 $3.0000 100 $1.8750 77 $0.1340 85 $0.0390 $1.7500 71 $13.0000 December, 1914.. 3.0000 100 1.6250 67 . 1275 81 . 0380- 1.4500 59 12.5000 85 December, 1915.. 2.8500 95 2.3000 94 .1975 126 . 0525 119 2. 0000 82 17.5000 119 December, 1916.. 6.0000 200 5.7500 236 . 3450 219 .0730 166 2.6000 106 30.0000 204 December, 1917.. 4.4120 147 6.0000 246 . 2350 149 .0650 148 3.5000 143 33. 0000 224 December, 1918.. 4.6320 154 6.0000 246 .2540 161 . 0667 152 4.0000 163 33.0000 224 December, 1919.. 4.6320 154 6.0500 248 . 1873 119 .0718 163 4.6000 188 34.6000 235 January, 1920.... 4.6320 154 6.0000 246 . 1931 123 . 0872 198 5.0625 207 37.7500 255 February, 1920.. 4.6320 154 6.0000 246 .1908 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 . 1916 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 October, 1920.... 7.2800 243 14. 3125 587 . 1675 108 . 0731 166 6.1000 249 43. 7500 298 November, 1920. 7.2800 243 8.8500 363 .1455 92 .0628 143 6.1000 249 36. 5000 248 December, 1920.. 5.6000 187 6.2375 256 .1369 87 .0478 109 6.1000 249 33.0000 224 n C o o rt t h to e 1 n r 0 n / 1 y c . a o r n n e s s , , h L em ea l t o h c e k r , N so o l . e 1 , . S P B t i e t e e t s s l s b b e u m il r l g e e r h t , s . , S ta te n b e k u l , r p g P l h a it t . t e s s - , o P S p i e t t e t n e s b l h u r e a r a i g r ls h th , . , W 2 o - r 3 s 2 b te ' r s d e c d r y . o a s r s n - s, Year and month. Average Rela- Average Rela- Average Rela- Average Rela- Average Rela- Average Relaprice per tive price per tive price per tive price per tive price per tive price per tive pound. price. pound. price, long ton. price. pound. price. long ton. price. pound. price July, 1914 $0.2150 97 $0.3050 108 I $19.0000 74 $0.0113 76 $30.0000 100 $0.6500 84 December, 1914. .1600 72 19.0000 74 0105 71 30.0000 100 .6200 80 December, 1915. .2100 95 . 3250 115 30.6000 119 0180 122 30.0000 100 .8800 115 December, 1916. .3850 174 .5700 202 57. 5000 223 0425 287 40.0000 133 1.2000 154 December, 1917. .4950 224 .5000 177 47. 5000 184 0325 220 40.0000 133 2.0000 257 December, 1918. .5500 249 .4900 174 45.1000 175 0310 209 57.0000 190 2.0000 258 December, 1919. .6986 316 .5700 202 46.4000 180 0265 179 47.0000 157 2.2000 283 January, 1920... .7271 329 .5600 199 48.0000 186 0274 185 50.7500 169 2.2500 290 February, 1920.. .7465 337 .5700 202 55. 2500 214 0350 236 54.5000 182 2.2500 290 March, 1920 .7549 341 .5700 202 60.0000 233 0365 247 54. 5000 182 2.2000 283 April, 1920 .7784 352 . 5700 202 60.0000 233 0375 253 54. 5000 182 2.2000 283 May, 1920 .7672 347 .5700 202 60.0000 233 0375 253 54. 5000 182 2. 0000 258 June, 1920 .7299 330 .5700 202 60.0000 233 0355 240 54. 5000 182 2.0000 258 July, 1920 .7009 317 .5700 202 62. 5000 242 0338 228 54. 5000 182 1.7500 225 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 October, 1920... .4343 196 .4900 174 55.0000 213 0309 209 54. 5000 182 1. 5000 193 November, 1920. .3695 167 .4700 167 49.7000 193 0281 190 54.5000 182 1. 3000 167 December, 1920. .3108 140 .4100 145 43. 5000 169 0265 179 50. 5000 168 1.1000 142 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 g e s o , . Coffee, Rio, No. 7. st ( a 19 n 1 d 8 a w , r s d a t r a ) p , n a d t a e r n d ts Ham C s h , i c s a m g o o k . ed, Ill 1 u N 5 m 0 e ° w i n f i a r Y e ti o n t r e g k s . o t, il, S N ug e a w l r a , Y t g e r o d 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 December, 1914. .1428 110 .0631 57 5.9500 130 .1633 98 .1200 97 .0483 113 December, 1915. . 1375 106 .0763 69 6.2250 136 .1556 94 .1300 105 .0592 139 December, 1916. .1375 106 .0925 83 8.6813 189 .1988 120 .1200 97 162 December, 1917. .1870 144 .0756 68 10.1313 221 .3016 181 .1400 114 188 December, 1918. .2450 189 .1725 155 10.2100 223 .3670 221 .1750 142 .0882 207 December, 1919. . 2350 181 .1518 136 14.0250 306 .2888 174 .2200 178 .1085 254 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 October, 1920... .2520 195 .0759 68 11.2063 244 .3575 215 .2900 235 .1078 252 November, 1920. .2400 185 .0746 67 9.2950 203 .3065 184 .2900 235 .0962 225 December, 1920. .2220 171 .0656 59 8.9438 195 .2575 155 .2900 235 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 prevail- As has been noted in the previous period, no marked changes in rates are ing during the 30-day period ending January 15, 1921, in the various cities in exhibited. There has been a decrease in certain centers in rates for bankers3 which the several Federal Reserve Banks and their branches are located. A acceptances, both indorsed and unindorsed; but for other types of paper such complete description of the several types of paper for which quotations are given increases and decreases as have occurred are approximately equal in number. will be found in the September, 1918, and October, 1918, FEDERAL RESERVE Present rates continue higher in almost all centers than rates during the same BULLETINS. Quotations for new types of paper will be added from time to time period last year. as deemed of interest. Discount and interest rates prevailing in various centers during 80-day period ending Jan. 15, 1920. Prime commercial paper. Ordinary loans to Dis- City. Customers'. Open market. Interbank Bank 6 e 0 r t s o ' a 9 c 0 c d e a p y ta s n . ces, Collater o a r l l o o t a h n e s r — cu st r o r c e k n t e . xchange Cattle S w e a c r u e r h e o d u b se y s c e u L c s u i t b r o e e m d rt e y b r y s trict. loans. loans. receipts, bonds and etc. certificates 30 to 90 m 4 o t n o t h 6 s. 3 d 0 a t y o s . 90 m 4 o t n o t h 6 s. Indorsed. ind U o n r - sed. Demand. 3 months. m 3 o n to t h 6 s. of e i d n n d e e s b s. ti H. L. C. H. L. C. H. L. a H. L. C. r. L. c. H. L. C. H. L. C. H. i. C. H. L. C. H. L. C. H. L. C. H. L. C. H. L. C. No.l Boston 8 6 7 8 6 7 8 71 7| 6 61 6*6 6 6i6f 6J 8 7 8 8 7 7i 8 7 71 7 61 No. 2 New York i... 8 6 7 8 6 7 51 7 7 5f 6-7 7J 5f 6-71 9 4 6-7 8 5 6-7 7 6 .... 7 6-7 Buffalo 7 6 7 7 6 7 8 8 8 6 6-7 6} 6| .... 7 6 .... 7 6 7 7 6 7 No. 3 Philadelphia... 6 6 6 6 6 8 7 8 8171 8 6 6 6 51 6 6 5| 6 6 6 6 6 No. 4 C Pi l t e t v s e b l u a r n g d h 7 6 6 6 7 6 7 6 6 6 8"'8""b" ; 6 6 6 6 5? 7 6 6 6 " 7 6 6 6 7 6 6 7 6 6 7 6 6 6 7 6 7 6 6 6 Cincinnati 7 6 6-61 7 6 7 61 61 7 6 61-7 6 6 717 7 7 7 7 7 71 61 7 61 6 No. 5 Richmond 6 6 6 6 6 6 6 6 6 6 6 6 6 6 6 6 Baltimore 6 6 6 6 6 6 6 6 6 6 6 6 6 6 6 No. 6 Atlanta 8 7 6 8 8 7 8 7 8 8 6 8 7 8 8 6 8 8 6 Birmingham.. 8 6 81 8 8 6 6-7 8 6 7 8 6 7 8 6 7 8 6 7-8 8 6 7-8 8 6 to J N a e c w k s O on rl v e i a ll n e s . . . . . 8 6 7A- 8 8 8 8 7 8"*7 7J 7J 6 6 1 7- 7 8 8 8 7 7 8 8 7 6 .. 7 .. 8 7 71- 7 8 8 8 6 7 71-8 8 8 8 7 7 71- 7 8 8 8 7 7 71- 8 8 8 6 7-8 c! Nashville 8 6 7 8 6 6 6 8 6 7 8 6 7 8 6 7 7 6 6 No. 7 Chicago 7 6 7 7 7 7 7 7 61 7 7 61 7 7 7 7 7 7 7 7 7 6 7 No. 8 S D t e . t L ro o i u t is 7 7 J6 6 i 1 7 7 7 7 6 61 8 7 7f 3 ? \ 6 6J 7 8 6 6 1 7 7 8 6 6 6 1 1 1 1 7 7 6 6 11 1 7 M Lo e u m is p v h il i l s e 2 8 6 6 8 6 8"Y 6 6 7 6 6 7 6 7 6 6 7 6 6 No. 9 M Li i t n tl n e e R ap o o c l k is .. .. . . . 8 8 7 8 J 8 71 81 8 7 8 17 7 7-7J 8 8 7 71 8 8 7 71 9 8 7 8 7 8 17 7 7 No. 10 Kansas City... 8 6 8 8 8 6 7 8 5 8 6 8 6 8 7 6 6-7 Omaha 9 7 9 7 10 7 8 8 8 9 7 9 7 9 7 7 Denver 8 6 8 6 8 7-J 8 8 6 7 8 6 8 6 8 6 8 61 7 No. 11 Dallas 8 61 8 61 8 8 8 8 6 8 6 8 6 8 6 8 7 8 7 8 6 8 El Paso .0 7 0 7 8 8 8 9 7 10 7 8 10 8 10 8 10 8 110 6 8 Houston 716 7 7 7 6 7 7 716 8 6 8 7 71 8 6 7 No. 12 San Francisco.. 7 6 7 6 8 7 6161 61 6J 7 6J 6J 61 7 61 7 61 7 61 61 Portland , 8 6 8 6 8{ 8 8J 8 7 6 6 8 6 8 6 8 6 7 Seattle 8 6} 8 8 8i 7f 8 61 8 61 8 6 8 7 8 61 8 Spokane 8 7 8 7 7 61 8 7 8 7 8 61 8 Salt Lake City. 8 7 8 7 8 7 6J 5f 8 7 9 7 9 8 7 8 Los Angeles 8 6 8 7 8 8 7 8 7 6 7 6J 7 6 7 6 7 6 7 6 7 1Rates for demand paper secured by prime bankers' acceptances, high 7, low 6, customary 6. 2 No report. to Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

216 FEDERAL RESERVE BULLETIN. FEBRUARY, 1921. PHYSICAL VOLUME OF TRADE. In continuation of tables in the January, 1921, FED- decrease was also noted in steel-ingot production, which was ERAL RESERVE BULLETIN there are presented in the fol- the smallest since May, 1919, excluding the strike months lowing tables certain data relative to the physical volume of that year. The unfilled orders of the United States of trade. The January, 1919, issue contains a description Steel Corporation during January, 1921, also showed a of the methods employed in the compilation of the data considerable decline both from last month and the same and the construction of the accompanying index numbers. month a year ago. In this issue, series are included covering cotton seed There were no signs evident of an increase in activity in received and crushed, and stocks on hand at the close of the textile industry. Cotton consumption reached a new the month; wheat-flour production; and structural steel low figure during December and was only a little more than orders and shipments. half the consumption during December, 1919, while the Receipts of live stock at 15 western markets, after a number of cotton spindles active during the month was continued rise since June, showed a considerable drop less than for any month during 1920, and considerably less during December and were considerably below the De- than during December, 1919. Wool consumption showed a cember, 1919, figure, while shipments again showed a decrease from the year's low figure as registered during decrease both when compared with last month and the November, and was less than half the amount consumed same month a year ago. Stocker and feeder shipments during December, 1919. The percentage of idle woolen from 34 markets showed a considerable decline and were machinery on January 1, 1921, showed a very consideraalso smaller than the shipments during December, 1919 ble increase in every case. Imports of raw silk again Receipts of grain at 17 interior centers during December decreased considerably during December and were only fell off slightly from last month and from December a year about one-fourth of imports during December, 1919. ago. Wheat and oats showed a falling off from last month, Receipts and shipments of lumber at Chicago and St. but the figure for wheat was considerably greater than for Louis during January, 1921, were considerably less than December, 1919. Receipts of flour showed a very large receipts and shipments during both November and decrease when compared with last month and a much January, 1920. Production of southern pine, Douglas fir, larger decrease when compared with December a year and western pine during December, 1920, showed a ago. Cotton sight receipts continued to reflect the gener- considerable decrease both when compared with last ally lighter movement to market of the 1920 crop as com- month and the same month a year ago. North Carolina pared with last season. The takings of the American pine production during December decreased considerably spinners during December remained at a verjr low figure both when compared with last month and same month and were only about half the amount taken during Decem- a year ago, while eastern white pine showed a slight ber, 1919. The port receipts, which have been smaller decrease from last month. Shipments of citrus fruits than a year ago, reflected the smaller amount exported this during December showed a considerable increase over season in comparison with last season. November and a slight increase over December, 1919, December fuel production showed some further increase while shipments of deciduous fruits showed a very large over the previous month. Bituminous coal production dur- decrease from November, but were more than twice the ing December showed an increase over November, 1920, amount shipped during the same month the year before. and a very large increase over December, 1919, but during Receipts and meltings of raw sugar at the North Atlantic the latter month the industry had not fully recovered from ports after a considerable rise in November fell off during the strike which had occurred in November. Anthracite December, but were considerably larger than the receipts coal production increased considerably both when com- and meltings during December, 1919. Stocks of raw pared with November, 1920, and December, 1919. Crude sugar at these ports at the close of December showed a petroleum production showed a very slight increase over slight decrease from the stocks held at the close of Novemlast month and a very large increase over December a year ber, but were considerably larger than the stocks at the ago. Pig-iron production during January, 1921, continued close of December, 1919. its decline and showed a considerable drop from the low Railroad net-ton mileage showed a considerable falling figure reached during December and a larger drop from the off during November, but was well above the figure for January, 1920, figure. The average daily production for Jan- November, 1919. The tonnage of vessels cleared during uary was 77,478 tons as against 87,222 tons for December. December fell off slightly from the November figure, but Parallel with this decline in pig-iron production, a large was considerably larger than the figure for December, 1919. Live-stock movements. [Buieau of Markets.] Receipts. Shipments. j c m C a a l a v t r t e k l s e e , t a s 5 . n 9 1 d m Ho a g rk s, e 5 ts 9 . S m h a e r e k p e , t 5 s 9 . H m m o u r a s l r e e k s s e , a t 4 s n 3 . d T k o i t n a d l, s . all C c m a a l a t v t r l e k e s e , a t 5 n s 4 . d H m o a g r s k , e 5 ts 4 . S m h a e r e k p e , t 5 s 4 . H m m o u r a s l r e e k s s e , a t 4 s n 3 . d T k o i t n a d l, s a . ll Head. Head. Head. Head. Head. Head. Head. Head. Head. Head. December, 1919 2,161,047 4,947,189 2,393,304 9,588,206 968,001 1,608,578 1,188,742 89,895 3,855,216 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 6,387,529 591,691 1,287,169 572,634 110,827 2,562,321 March 1,803,073 3,963, 245 1,255,490 82,584 7,104,392 570,323 1,399,485 483,550 87.896 2,541,254 April 1,542,150 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 4,234,022 1,421,009 40,901 7,462,326 771,865 1,374,902 769,718 40,021 2,956,506 June j 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 October 2,196,939 2,826,277 2,945,709 38,657 8,007,582 1,159,459 1,064,175 1,932,083 37,994 4,193,711 November 2,403,990 3,862,243 2,419,596 22,477 8,708,306 1,148, 861 1,394,347 1,474,299 22,963 4,040,470 December 1,382,995 4,186,261 1,546,876 16,118 7,132,250 647,801 1,516,893 704,760 17,030 2,886,484 1 St. Louis, Mo., no longer considered as having a public stockyard. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

FEBRUARY, 1921. FEDERAL RESERVE BULLETIN. 217 Receipts and shipments of live stock at 15 western markets. [Chicago, Kansas City, Oklahoma City, Omaha, East 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. December, 1919 1,641,731 163 3,708,409 169 1,588,661 116 53,173 115 6,991,974 151 1920. January 1,400,031 139 912,449 178 1,035,591 76 90,022 196 6,438,093 139 February 1,068,092 110 440,154 115 948,116 72 75,488 170 4,531,850 102 March 1,203,499 119 910,909 132 900,299 66 56, 880 124 5,071,587 110 April 1,040,903 103 150,281 98 928,191 68 31,235 68 4,150,610 90 May 1,209,656 120 128,249 142 796,160 58 24,889 54 5,158,954 112 June 1,290,265 128 746,390 125 1,006,528 74 21,056 46 5,064,239 110 July 1,188, 019 118 115,639 96 1,301,458 95 26,257 57 4,631,373 100 August 1,459, 565 145 818,245 83 1,688,719 124 55,371 120 5,021,900 109 September 1,736,009 172 597, 622 73 1,893,312 139 38,950 85 5,265,893 114 October 1,628,564 162 836,748 84 1, 865,330 136 24,716 54 5,355,358 116 November 1,781,261 177 624,185 119 1,542,477 113 12,149 26 5,960,072 129 December 984,309 932,052 133 942, 858 69 9,290 20 4,868,509 105 SHIPMENTS. December, 1919 687,166 169 1,003,968 207 687,579 137 55,551 135 2,434,264 170 1920. January 548,841 135 1,026,763 212 403,382 80 89,990 219 2,068,976 144 February 427,608 109 814,253 174 334,012 69 78,540 198 1,654,413 119 March 418,310 103 923,526 191 298,878 59 61,625 150 1,702,339 119 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 24,037 59 1,678,008 117 June 528,273 130 797,946 165 399,613 79 22,363 55 1,748,195 122 July 508,199 125 737,923 152 644,557 128 27,728 68 1,918,407 134 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 2,428,583 169 October 866,327 213 584,742 121 1,192,912 237 24,051 59 2,668,032 186 November 810,284 199 784,468 162 952,159 189 12,782 31 2,559,693 178 December 472,748 116 943,515 195 384,646 76 10,201 25 1,811,110 126 Shipments of stockers and feeders from 34 markets. Ca c t a t 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. T k o i t n al d , s a . ll December, 1919. 462,144 67,557 723,975 1,253,676 1920. June 267,084 41,697 226,626 535,407 1920. , July. 209,563 25,711 322,867 558,141 January 346,108 79,180 300,336 725,624 Jj August... 273,512 34,415 567,429 875,356 February 237,225 79,479 140,138 456,842 September 473,652 44,340 789,387 1,307,379 March 239,363 101,173 135,244 475,780 October. 571,025 59,123 1, 055,237 1,685,385 April 241,510 67,995 267,657 577,162 November. 545,802 52,699 855,545 1,454,046 May 288,920 65,488 252,194 606,602 December.. 277,053 36,827 258,599 572,479 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 k c l u e r d e , d. Bacon. Ha d m e s rs a , n c d u r s e h d o . ul- Lard. Pickled pork. Pounds. R ti e v l e a . - Pounds. R ti e v l e a . - Pounds. R tiv el e a . - Pounds. R tiv el e a . - Pounds. R tiv el e a . - Pounds. R tiv el e a . - Pounds. R tiv el e a . - December, 1919. 1,886,835 285 6,061,769 489 3,135,069 117 58,982,754 352 15,688,297 105 63,645,722 145 4,125,550 93 1920. January 1,081,643 163 22,872,223 1,844 1,670,500 63 77,501,002 463 13,905,923 93 38,823,902 88 4,251,187 96 February 735,132 115 13,010,793 1,085 1,631,457 63 75,891,195 469 24,217,706 168 36,644,906 86 3,710,308 87 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 5,412,388 301 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 October 207,503 31 522,251 42 1,995,039 75 49,838,768 298- 8,787,853 59 54,173,979 123 3,549,456 SO November 282,761 43 3,091,895 249 1,678,091 63 57,934,259 346 11,197,880 75 57,316,309 130 2,605,431 59 December 399,916 60 1,583,434 128 3,053,993 114 68,784,322 411 14,491,763 97 90,080,092 205 2,691,452 61 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

218 FEDERAL RESERVE BULLETIN. FEBRUARY, 1921. Receipts of grain and flour at 17 interior centers. [Chicago, Cleveland, Detroit, Duluth, Indianapolis, Kansas City, Little Rock, Louisville, Memphis, Milwaukee, Minneapolis, Omaha, Peoria, St. Louis, Spokane, Toledo, Wichita; receipts of flour not available for Cleveland, Detroit, Indianapolis, Louisville, Omaha, Spokane, Toledo, and Wichita.] [Compiled from reports of trade organizations at these cities.] [Monthly average, 1911-1913=100.] Total grain and Wheat. Corn. Oats. Rye. Barley. Total grain. Flour. flour.i Rela- Rela- Rela- Rela- Rela- Rela- Rela- Rela- Bushels. tive. Bushels. tive. Bushels. tive. Bushels. tive. Bushels. tive. Bushels. tive. Barrels. tive. Bushels. tive. December, 1919. 30,582,779 113 23,983,657 10115,592,282 77 2,876,636 260 3,769,859 53 76,805,213 992,371,262 12187,475,892 101 1920. January 25,074,624 93 24,139,094 108 20,925,941 104 4:,, 378,610 396 3,298,544 46 777,,8116,813 100 2,298,692 117 88,160,927 102 February 18,115,324 70 26,051,855 120 20,575,654 105 3i', 263,686 305 2,470,622 36 7'00,,4'77,141 94 2,059,421 109 79,744,536 95 March 18,007,798 67 24.306,196 108 19,149,624 95 31;,548,739 321 2,928,440 41 6177,!,940,797 8""711,617,544 83 "755:,219,745 87 April 15,260,236 57 n;326,509 50 122,,9'52,593 64 21!,914,553 263 2,245,881 31444,699,772 57 888,423 45 488;,697,676 56 May 20,510,063 76 12,107,950 54166,,'724,389 83 33!,758,507 340 2,690,076 38 5i55,790,985 7211,913,075 985 6644,399,823 74 June 21,020,640 78 27;251,166 121144,,:260,053 71 3~^, 177,770 287 2,721,367 38 6881,430,996 88 2,113,979 108 80,057,876 92 July 29,714,399 110 20,824,268 93 188,,7'34,180 93 3:!, 096,026 280 2,659,921 37 755,028,794 96 2,052,110 105 84,263,289 97 August 43,039,021 100 9,840,320 44 300,,7'28,748 152 33!,191,103 288 3,007,508 42 8199!,806,700 1151,949,339 8,578,726 114 September... 46,181,275 171 20.696,955 92 311,031,569 154 55;,571,428 503 6,630,056 99221 11110,111,283 1411,843,954 94 118,409,076 137 N Oc o t v o e b m er ber... 4 3 5 9 , , 4 2 0 7 3 2 , , 8 8 2 2 5 7 1 16 4 8 6 1 1 1 9 . ;4 0 0 6 7 4 , , 2 5 2 0 4 8 5 8 1 5 1 21 55 1, , 2 2 3 8 5 2 , , 1 6 6 5 2 1 1 7 0 6 5 4 33 4 ; , , , 7 4 0 5 6 5 , , 6 9 5 7 3 9 3 4 3 0 5 31 !6 5 , , 6 7 1 9 8 5 , , 3 0 6 2 2 8 8 9 " 2 1" 9 7 "5 66 5 :, , 2 9 8 5 7 4 , , 7 5 1 0 7 2 1 9 2 8 3 2 2 , . 0 1 5 3 4 7 , , 2 6 6 3 2 9 1 1 0 0 5 9 1 8 0 5 5 ,5 ,5 3 7 1 3 , , 8 8 9 7 6 8 1 9 2 9 2 December 33,348,773 124 19,390,714 86133^,777,300 68 33,,482,685 31515,058,808 7175,058,280 961,570,822 80 82,126,979 95 1 Flour reduced to its equivalent in wheat on basis of 4£ bushels to barrel. Shipments of grain and flour at 14 interior centers. [Chicago, Cleveland, Detroit, Duluth, Kansas City, little Rock, Louisville, Milwaukee, Minneapolis, Omaha, Peoria, St. Louis, Toledo, Wichita; shipments of flour not available for Cleveland, Detroit, Louisville, Omaha, Toledo, and Wichita.] Total grain and Wheat. Corn. Oats. Rye. Barley. Total grain. Flour. flour.1 Rela- Rela- Rela- Rela- Rela- Rela- Rela- Rela- Bushels. tive. Bushels. tive. Bushels. tive. Bushels. tive. Bushels. tive. Bushels. tive. Barrels. tive. Bushels. tive. Decem b e r, 1919. 17,383,075 113 11,510,244 12,435,091 82 2,255,139 319 2,624,626 67 46,208,175 94 4,470,327 132 66,324,647 103 1920. January 17,514,087 11412,326,051 87 15,822,099 104 3i:, 685,914 521 2,007,718 5151,355,869 104 4[, 140,314122 69.987,282 108 February 14,114,215 95 11,977,640 87 13,073,089 892,113,505 3091,306,340 35 42!, 584,789 89 31,156,962 96 56,791,118 91 March 11,027,336 7""1 11.1,165,894 7"91 414,2,143,957 94 33:,062,530 4"3"31,574,887 40 41,074,604 83 25,960,175 87 54395,392 84 April 11,058,643 72 5,371,811 38 8.,691,440 57 8",:,811,500 1,2451,651,509 42 351:,584,903 72i:,702,132 50 43;244,497 67 May 20,720,121 134 5,939,145 42 2J0O, , -444,288 135 6:,977,479 38 55:,569,420 112 2!",877,122 516,469 106 June 20,242,046 13110,088,237 7112,805,056 84 5i;, 428,886 767 1,905,225 49 501:,469,450 102 3t:, 725,330 91 67,'233,435 104 July 19,002,099 123 9,100,527 6411,345,429 75 4:, 476,238 632 2,092,672 54 461:,016,965 93 3!:, 767,678 111 62,971,516 97 August 24,934,816 162 6,260,144 44 12!:, 814,067 84 2!;, 880,003 407 2,231,851 57 49':,120,881 99 3!:, 605,105 106 65,343,854 101 September...28,700,593 186 6,284,075 44 12!:, 690,866 84 4,,339,057 613 3,556,180 9155;.,570,771 112 3!, 187,454 94 69,914,314 108 October 26,258,795 17010,336,378 7310:1,601,178 704,742,380 670 4,529,091 116 56.,,467,822 114 3!:,758,735 111 73,382,130 114 November...24,950,771 162 7,890,500 56 10,729,045 7122:,998,524 424 4,249,954 109 501,818,794 103 31:,949,699 117 68,592,440 106 December...22,253,030 144 7,898,979 56 9,964,743 66 3,171,616 448 3,083,249 79 46:,371,617 94 3!:, 141,524 93 60;508,475 94 1 Flour reduced to its equivalent in wheat on basis of 4J bushels to barrel. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

FEBRUARY, 1921. FEDERAL RESERVE BULLETIN. 219 Receipts of grain and flour at nine seaboard centers. [Boston, New York, Philadelphia, Baltimore, New Orleans, San Francisco, Portland (Oreg.), Seattle, Tacoma; receipts of flour not available for Seattle and Tacoma.] [Compiled from reports of trade organizations at these cities.] [Monthly average, 1911-1913=100.] Total grain ano Wheat. Corn. Oats. Rye. Barley. Total grain. Flour. flour.* Rela- Rela- Rela- Rela- Rela- Rela- Rela- Rcia Bushels. tive. Bushels. tive. Bushels. tive. Bushels. tive. Bushels. tive. Bushels. tive. Barrels. tive. Bushels. tive Decem ber, 1919 5,782,777 46 816,630 23 2,991,717 63 1,664,755 1,172 2,309,085 139 13,564,964 60 2,149,458 206 23,237,525 1920. January 5,711,009 45 1,491,759 42 2,663,274 56 2,643,611 1,8611,297,839 7813,807,492 611,561,693 150 20,835,111 7C February... 4,898,690 40 1,244,393 36 2,331,246 513,211,668 2,3381,315,291 8213,001,288 59 1,102,606 109 17,963,015 68 March 6,486,745 51 1,203,649 34 3,646,727 77 4,119,986 2,900 1,300,871 7816,757,978 741,752,860 168 24,645,848 90 April 5,441,434 43 1,317,555 37 1,546,590 33 3,440,350 2,421 685,054 4112,430,983 55 843,916 8116,228,605 59 May 10,621,723 84 767,332 22 2,382,271 50 5,117,806 3,602 556,764 3419,445,896 86 1,301,211 125 25,301,346 92 June 13,374,721 106 1,878,334 53 3,194,897 67 6,506,053 4,5791,191,767 72 26,145,772 1151,486,365 14232,834,415 120 July 18,710,633 149 3,305,542 93 3,499,101 74 5,048,019 3,553 2,098.083 126 32,661,378 1441,660,849 15940,135,198 146 August 28,098,022 223 1,576,842 44 2,671,365 56 3,407,799 2,398 2,289,791 138 38,043,819 1681,390,077 133 44,299,166 162 September..31,693,246 252 1,456,958 41 3,069,700 65 4,133,465 2,9091,815,227 109 42,168,596 1861,422,872 13648,571,520 177 October 29,028,202 230 1,844,753 52 1,828,515 38 5,436,354 3,826 2,558,276 154 40,696,100 1791,463,830 140 47,283,335 173 November..24,410,356 194 2,401,181 68 1,874,271 39 3,329,710 2,344 2,721,320 164 34,736,838 153 3,683,380 353 51,312,048 187 December...29,551,950 235 854,138 24 1,911,861 40 3,490,405 2,457 2,291,639 138 38,099,993 168 4,367,180 418|57,752,303 211 1 Flour reduced to its equivalent in wheat on basis of 4J bushels to barrel. Stocks of grain at eight seaboard centers at close of month. [Boston, New York, Philadelphia, Baltimore, New Orleans, Newport News, Galveston, San Francisco.] [Compiled from reports of trade organizations at these cities.] [Bushels.] Wheat. Corn. Oats. Rye. Barley. Total grain. December, 1919 13,053,280 279,451 2,435,455 709,276 3,007,379 19,484,841 1920. January 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 2,034,983 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 ,097,945 1,532,272 777,445 4,052,189 21,375,743 September 15,517,070 ,146,514 2,398,157 2,414,910 4,110,158 25,586,809 October 17,277,003 ,292,818 2,521,049 1,742,178 3,577,450 26,410,498 November 17,794,605 .,371,013 2,327, 249 1,906,527 3,097,922 26,497,316 December 18,263,476 510,142 2,205,936 2,196,380 3,322,050 26,497,984 NOTE.—Figures for San Francisco include also stocks at Port Costa and Stockton. Wheat flour production. [January, 1918, to June, 1920, U. S. Grain Corporation; July, 1920, on, estimated by Russell's Commercial News (Inc.)i New York.] [In barrels.] 1918. 1919. 1920- January 11,357,000 January 10,593,000 January 13,005,000 February 8,813,000 February 7,736,000 February 9,557,000 March 7,697,000 March 10,498,000 March 8,632,000 April 7,638,000 April 11,276,000 April 7,374,000 May 6,987,000 May 10,738,000 May 8,249,000 June 5,512,000 June 7,130,000 June 7,461,000 July -6,515,000 July 7,596,000 July 8,152,000 August 10,238,000 August 12,042,000 August 9,059,000 September 12,161,000 September 14,087,000 September 9,650,000 October 11,544,000 October 15,008,000 October 9,981,000 November 10,987,000 November 13,519,000 November 9,889,000 December 12,009,000 December 12,865,000 December 8,745,000 Total, 1918 111,458,000 Total, 1919 133,088,000 Total, 1920 109,754,000 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

220 FEDERAL RESERVE BULLETIN. FEBRUAKT, 1921. Cotton. [New Orleans Cotton Exchange.] [Crop years 1911-1913=100.] Sight receipts. Port receipts. Overl m an e d n t m . ove- Ameri t c a a k n i n s g p s i . nners' S i c t n l o o t c e s k r e s i o o a r f t m p to o o w r n t n s t s h a . 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. Aiigust 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 1,835,273 148 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 1,583,473 126 982,030 107 205,233 195 793,453 175 2,470,496 210 February 1,050,964 87 725,515 82 138,084 136 374,093 85 2,510,482 213 March 796,632 64 621,808 68 108,573 103 270,269 59 2,276,737 193 April . - 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 12,432,856 83 7,299,667 66 1,674,828 133 6,365,990 117 1,461,000 124 1920-21. August 308,262 25 159,586 17 25,322 24 251,841 55 1,365,397 116 September 771,590 62 443,149 48 17,324 16 254,460 56 1,607,602 136 October 1,466,874 117 971,334 106 87,215 83 395,165 87 2,101,839 178 November 1,804,135 144 1,075,803 117 117,139 111 425,089 94 2,597,820 220 December 1,550,505 124 797,350 87 105,209 100 643,231 142 2,815,934 239 Cotton seed. [Bureau of the Census.] [In tons.] R at e c m ei i v ll e s d . Crushed. O m of n i l m l h s a o ( n n c d l t o h s a ) e t . R at e c m e i i l v l e s d . Crushed. O m of n i l m h ls a o n ( n c d l t o h a s ) t e . 1918. 1919. January 589,605 8* August 27,354 20,058 31,021 February 249, 787 490,601 634', 052 September. 434,167 234,049 231,139 March 217, 814 443,490 408,376 October 1,097,422 719,659 608,559 April 105,987 310, 328 203, 846 November.. 917,072 742,880 782,751 May 68, 837 179,372 92,171 December.. 496,416 641,142 636,148 June 39,277 75,353 55,485 July 26, 579 41,626 40,438 Year 4,227,321 4,713,471 4,330,329 A N S D O e u o e c p c t g v o t e u e e b m m s m e t b r b b e e e r r r 9 5 1 7 7 5 9 6 4 5 8 9 4 9 2 , , , , , 9 2 6 8 0 8 9 6 7 7 1 2 4 5 4 2 6 5 5 6 4 9 4 7 7 7 2 1 3 , , , , , 9 4 1 9 4 0 2 2 7 0 1 4 5 2 3 1 1 1 , , , 1 0 1 6 1 4 3 3 3 4 7 9 8 8 4 , , , , , 1 1 9 5 8 6 2 1 9 6 8 5 7 5 0 J M A F a e p a n b r r u i c r l a u h r a y ry... 1920. 4 2 1 6 6 8 7 2 7 0 8 , , , , 2 0 7 1 6 4 4 5 7 9 5 1 4 3 6 1 0 1 2 7 3 6 5 3 , , , , 5 7 9 8 0 1 9 0 9 9 3 5 4 3 2 1 7 5 1 0 7 4 5 4 , , , , 4 8 3 1 7 7 3 2 2 8 4 0 Year 4, 300,133 4, 253, 200 6,417,899 J M u a n y e 2 2 5 7 , , 8 49 8 9 2 3 8 6 4 , , 9 7 1 5 5 6 4 3 7 6 , , 0 0 7 4 7 4 1919. = = = == July 7,259 13,219 30,084 January 410, 547 701, 804 846,142 August 24,979 20,317 36,760 February 257, 581 540,954 559, 587 September. 244,382 145, 519 135,623 March 167, 545 420,043 306,609 October 945,998 607,628 471,979 April 171,524 299, 084 173, 866 November.. 829,282 719,455 581, 806 May 159, 943 237, 779 92,625 December.. 557,787 546,086 593, 507 June 59, 708 113, 709 38,157 July 28, 042 42, 310 23, 725 Year j 3,651,280 3,693,921 3,084,684 California shipments of citrus and deciduous fruits. [October, 1920, on, California Fruit News and Bureau of Markets.] [1911-1913=100.] Total Lemons. Total citrus fruits. deciduous fruits. Carloads. Relative. Carloads. Relative, Carloads. Relative, Carloads. December, 1919 3,592 147 271 67 136 197 1920. January 2,457 100 630 156 3,087 108 123 February 114 852 218 3,535 128 139 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 2,822 115 664 164 3,486 122 3,179 August 1,707 70 751 185 2,458 86 7,239 September 1,409 58 464 115 1,873 66 9,021 October 752 31 925 228 1,677 59 11,880 November 1,602 66 377 93 1,979 69 2,792 December 3,774 154 368 91 14,167 146 368 1 Includes grapefruit. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

FEBRUARY, 1921. FEDERAL, RESERVE BULLETIN. 221 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 s f t o m ck o s n a t t h. Receipts. Meltings. c R lo a s w e o s f t o m ck o s n t a h t . Tons. R ti e v l e a . - Tons. R ti e v l e a . - Tons. R ti e v l e a . - Tons, R ti e v l e a . - Tons. R ti e v l e a . - Tons. R ti e v l e a . . December, 1919 96,342 52 126,765 69 10,432 1920. June 301,318 164 319,000 174 42,699 25 1920. July 386,328 210 325,000 177 104,027 60 January 208,554 113 181,000 99 37,986 August 308, 313 168 287,000 156 125,340 73 February 316,667 178 269,000 152 85,653 September 109,302 59 164,000 89 70,642 41 March 335,532 182 333,000 182 88,185 October 109, 335 59 118, 000 64 61,977 36 April 310, 580 169 307,000 167 91,765 November 186,274 101 179, 000 98 69, 251 40 May 254,616 138 286,000 156 60,381 35 j December 148, 464 81 154,000 84 63,715 37 Naval stores. [Data for Savannah, Jacksonville, and Pensacola.] [Compiled from reports of trade organizations at these cities.] [In barrels.] 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. December, 1919 17,109 30,924 76,792 200,333 1920. June 33,522 19,654 94,904 108,656 1920. July 39,158 117,088 135,979 January 8,300 24,910 47,874 165,927 August 33,997 27,963 111, 497 144,109 February 3,762 17,900 29,303 140,559 September.. 32,162 44,396 97,797 176,612 March 1,876 4,819 14,660 103,443 October 30,260 49, 885 195,837 April 7,644 27, 029 98, 517 November.. 23, 893 49,209 83,177 i 247,253 May 23,473 6,174 68,163 78,113 December... 21,174 53,356 76,848 i 300,315 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 t o i d on u . c- m S e h n ip ts - . N b m e u i r l m l o s f - . Pr t o io d n u . c- m S e h n ip ts - . b N m e u i r l m l o s f - . | Pr t o io d n u . c- m S e h n ip ts - . N b m e u i r l m o ls f - . Pr t o io d n u . c- Ship- ! b m N er i u l o l m s f . - Pr t o io d n u . c- Ship- December, 1919. 198 353,923 363,176 65,989 93,377 129 227,331 176,935 4,776 17,840 27 19,048 26,241 1920. January 202 386,481 404,706 69,895 144,180 128 327,568 344,568 38,007 63,614 24,678 26,283 February 203 383,239 369,047 85,583 147.180 124 332,511 295,934 32,551 59,687 15,534 15,202 March 205 436,944 424,775 130,425 156,211 123 342,948 329,012 43,771 61,620 29,633 29,896 April 205 438,056 359,461 167,165 133,114 126 359,651 274,597 46,222 61,757 13,659 10,613 May 205 430,271 347,404 183,621 132.181 124 424,687 383,346 12,731 26,323 15,992 18,657 June 204 385,293 287,487 197,461 125,770 127 343,801 271,815 25,771 41,557 14,259 10,481 July 207 385,842 331,273 177,262 103,500 127 242,612 225,666 37,459 49,668 20,756 15,217 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 16,043 October 206 344,427 329,751 146,424 69,936 120 355,614 299,704 40,724 30,928 19,487 14,877 November 203 315,343 320,756 107,846 60,259 123 263,452 212,226 20,294 19,751 14,617 12,929 December 199 264,504 281,326 45,578 46,112 119 188,905 187,874 19,056 10,587 8,091 14,716 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

222 FEDERAL, RESERVE BULLETIN. FEBRUARY, 1921. 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, 1920. 1920. January 403,604 87 219,783 87 September 375,456 81 242,857 96 February 421,692 94 224,286 91 October 398,333 220,116 87 March 500,230 108 296,047 117 November 342,971 190,282 75 April 236,975 51 131,933 52 December 351,695 192,072 76 May 313,447 67 195,965 77 June 393,738 85 212,339 84 1921. July 399.615 86 184,767 73 January 263,001 57 165,308 65 August 370,352 80 220,368 87 Coal and coke. [U. S. Geological Survey.] [Monthly average, 1911-1913=100.] Bituminous coal, esti- Anthracite coal, estimated monthly pro- mated monthly pro- Beehive coke, estimated duction. duction. monthly production. Short tons. Relative. Short tons. Relative. Short tons. Relative. December, 1919 36,612,000 8,089,000 109 1,690,000 65 1920. January 48,689,000 131 7,588,000 103 1,982,000 76 February 40,127,000 112 6,525,000 91 1,731,000 68 March 46,792,000 126 7,857,000 106 2,025,000 77 April 37,939,000 102 6,225,000 84 1,602,167 61 May 39,753,000 107 7,959,000 108 1,689,500 65 June 43,710,000 118 8,171,000 110 1,710,333 65 July 45,523,000 123 8,261,000 112 1,693,000 65 August 48,389,000 131 8,025,000 108 1,776,000 68 September 51,093,000 138 4,646,000 63 1,820,000 70 October 50,744,000 137 8,069,000 109 2,065,000 79 November 51,012,000 138 7,453,000 101 1,622,000 62 December 52,560,000 142 8,321,000 112 1,515,000 58 Crude petroleum. [U. S. Geological Survey.] [Barrels of 42 gallons each.] Produced. Produced. Stocks at end Stocks at end of month of month Barrels. Relative. (barrels). Barrels. Relative. (barrels). December, 1919... 32,508,000 170 127,867,000 1920. June 36,946,000 193 126,763,000 1920. July 38,203,000 199 128,168,000 January 33,774,000 176 127,164,000 August... 39,055,000 204 129,043,000 February 32,723,000 177 126,339,000 September 37; 532,000 196 128,788,000 March 35,831,000 187 125,597,000 October 39,592,000 207 129,451,000 April 35,583,000 186 124,991,000 November 38,699,000 202 131,325,000 May 36,503,000 190 124,689,000 December 38,961,000 203 133,690,000 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

FEBEUART, 1921. FEDERAL RESERVE BULLETIN. 223 Total output of oil refineries in United States. [Bureau of Mines.) I Crude oil run Gasoline Kerosene Gas and fuel Lubricating j (barrels). (gallons). (gallons). (gallons). | (gallons). November, 1919 | 32,213,754 338,667,570 214,829,925 663,309,514 75,962,212 1920. January... 30,815,160 336,719,157 195,956,392 617,555,156 75,878,631 February. 2t»,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 j 34,57 8,282 381,079,291 180,877,089 707,198,355 89,252,410 June. 34,900,078 415,158,911 173,581,000 689,878,061 94,964,222 July. 37,024,052 423,419,770 172,213,511 751,193,898 92,369,504 August i 39,757,770 444,141.422 189,010,459 834,322,503 91,078,569 September I 40,549,316 453,881,096 199,140,024 836,700,086 86,230,371 October I 40,687,250 465,787,745 213,742,156 823,114,603 93,229,723 November 39,458,945 452,642,125 214,804,177 822,638,305 91,180,007 STOCKS AT CLOSE OF MONTH. Nov. 30,1919 | 13,983,716 378,133,185 347,070,560 791,052,991 149,193,143 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 Sept. 30 ! 18,830,079 288,195,394 379,300,705 771,126,965 130,449,829 Oct. 31 S 19.237,730 301,283,731 383,828,239 799,024,084 136,194,914 Nov .30 21,373,945 354,835,764 398,991,592 808,802,516 142,180,775 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.] Iron-ore shipments f L ro a m ke s. the upper | Pig-iron production. Steel-in t g io ot n . produc- a S t t e c e lo l se C of o r m po o r n a t t h io . n Gross tons.Relative. Gross tons. Relative. Gross tons. ative. Gross tons.Relative. December, 1919. 2,633,268 114 8,265 366 157 1920. January 3,015,181 130 2,968,102 127 9,285,441 176 February... 2,978,879 133 2,865,124 127 9,502,081 180 March 3,375,907 146 3,299,049 141 9,892,075 188 April 230,854 2,739,797 118 2,638,305 113 10,359,747 197 May 6,976,085 115 2)985,682 129 2,883,164 123 10,940,466 208 June 9,233,566 152 3,043,540 131 2,980,690 127 10,978,817 208 July 9,638,606 159 3,067,043 132 2,802,818 120 11,118,468 211 August 9,270,763 153 3,147,402 136 3,000,432 128 10,805,038 205 September. 8,923,482 147 3,129,323 135 2,999,551 128 10,374,804 197 October 8,848,986 146 3,292,597 142 3,015,982 128 9,836,852 187 November.. 5,305,738 2,934,908 127 2,638,670 113 9,021,481 171 December.. 2,703,855 117 2,340,365 100 8,148,122 155 1921. January. 2,401,845 104 2,201,866 94 7,573,164 144 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

224 FEDERAL RESERVE BULLETIN. FEBRUARY, 1921. Structural steel orders mid shipments. [Bridge Builders and Structural Society.] Fabricated Structural steel orders and ship- Fabricated Structural steel orders and shipstructural steel ments of the membership of structural steel ments of the membership of contracted for Bridge Builders and Structural contracted for Bridge Builders and Structural throughout Society. throughout Society. country. country. Orders. Shipments. Orders. Shipments. Per Ton- Per Per Ton- cent Per Per nage. n T a o g n e - . c s c a h e p o n a p c t - n T a o g n e - . c s a c h p e o a n p c t - nage. c s a i h t p y o a . p c- n T a o g n e - . c s c a h e p o n a p c t - Ton- c s c a h p e o n a p c t ity. ity. ity. ity. I January 1918. 95,400 48,083 74.0 31,780 51.0 Ju 1 l 9 y 1 9—Continued. . 133,200 i 74.0 |44,474 70.0 34,389 54.0 February 99,900 32,184 52.5 38,580 63.0 August. 141,000 ' 78.5 47,542 75.0 38,535 61.0 March 84,600 33,105 54.0 39,457 64.5 September. 141,000 78.5 44,160 70.0 36,356 57.0 April 115,200 44,840 73.0 43,089 70.0 October 139,500 77.5 66,615 104.0 39, 513 62.0 May :. 108,000 61,007 99.0 51,604 84.0 November.. 124,200 69.0 46,520 73.0 36,208 56.5 June 100,800 44,897 72.5 52,646 85.0 December.. 153,000 85.0 54,902 85.0 41,022 63.5 July 209,700 119,694 199.0 53,220 89.0 August 102,000 45,666 75.0 54,031 89.0 1920. September... 108,000 50,908 83.5 49,166 81.0 January 135,000 75.0 67,158 102.0 38,512 58.5 October 77,400 25,421 42.0 53,017 87.0 February |171,000 95.0 96,150 132.0 37,896 52.0 November... 48,700 7,923 13.0 44,080 72.5 March 1150,400 83.5 50,598 69.0 49,434 67.5 December... 52,270 12,805 21.0 44,908 74.0 April |122,250 68.0 49,411 67.0 43,836 60.0 May 1110,700 61.5 41,759 58.0 45,317 63.0 1919. June 90,400 50.0 33,790 47.0 49,397 67.0 January 21,600 6,842 11.0 46,162 76.0 July 90,400 50.0 33,213 47.0 49,096 69.0 February... 22,500 7,128 12.0 39,354 65.0 August 72,000 40.0 36,843 50.0 51,381 70.0 March 32,300 7,369 12.0 37,921 62.0 September I 77,400 43.0 26,755 37.0 53,526 74.0 April 48,100 17,431 28.0 35,051 57.0 October. 45,600 25.5 14,161 20.0 47,200 66.0 May , 88,200 38,343 62.0 31,776 51.5 November. 49,200 27.5 11,531 16.0 41,268 57.5 June 1117,000 45,932 72.5 30,809 48.5 December.. 47,000 26.0 14,521 20.0 42,767 60.0 Imports of pig tin. [Department of Commerce.] [Monthly average, 1911-1913=100.] Pounds. Relative. Pounds. Relative. December, 1919 12,940,125 142 1920. June 11,232,325 124 1920. July | 17,584,167 193 January 8,772,953 97 August 11,195,937 123 February 13,925,843 158 September. 9,596,819 106 March 11,980,019 132 October 6,741.331 74 April 10,345,130 114 November.. 9,550,535 105 May 9,102,341 100 December.. 5,893,627 65 Raw stocks of hides and shins.1 [Bureau of Markets; July, 1920, on, Bureau of the Census.] [In pieces.] C hi a d t e tl s e . Calfskins. Kipskins. Go k a i t d a . nd Cabretta. Sh l e a e m p b a . nd Nov.30,1919 1 6,918,534 I 1,844,737 1,188,173 14,580,060 2,684,084 9,398,712 1920. Jan. 31 6,773,360 i 1,920,184 1,036,372 14,401,965 1,893.614 8,902,067 Feb. 29 1 6,559,337 j 1,859,697 1,141,620 17,146,852 2,197; 683 9,460,914 Mar. 31 6,558 300 1,930 218 966,850 16,436,848 2,047,519 9,227,252 Apr. 30 i 6,072,895 2,281,370 834,711 14,823,461 1,947,499 8,911,681 May 31 • 5,849,375 2,724,056 924,012 14,922,480 2,253,785 9,004,621 June 30 6,212,946 3,107,393 915,499 14,623,712 2,070,471 10,993,228 Sept. 30 5,926,708 3,542,388 1,083,193 13,408,277 2,197,149 11.235,417 Oct. 31 : 6,770,509 3,850,183 1,377,998 12,147,070 2,104 133 13,626,406 Nov. 30 7,158,751 I 3,492,653 1,422,608 11,231,086 2,234,027 12,705,767 i The number of firms reporting has increased as follows:—June, 1,120; Sept., 1,307; Oct., 1,915; Nov., 2,027. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

FEBRUARY, 1921. FEDERAL RESERVE BULLETIN. 225 Textiles. [Silk, Department of Commerce; cotton and idle wool machinery, Bureau of the Census; wool consumption, Bureau of Markets.] [Cotton, monthly average crop, years 1912-1914=100; silk, monthly average, 1911-1913=100] Percentage of idle woolen machinery on first of month | to total reported. Cotton consumption. i Imports of raw silk. Cotton spindles Wool con- Looms. | Spinning spindles, i active sumption during (pounds)* month. Wider Under Sets of Combs.1 Bales. Relative. than 50- 50-inch cards. inch reed reed space. space. December, 1919. 511,711 114 j 34,583,160 55,566,253 13.9 19.1 10.5 1920. January 591,921 132 j 34,739,579 63,059,862 14.5 18.5 8.8 7.2 9.1 10.2 4,855,989 237 February 515,699 119 34,655,677 55,247,652 12.2 17.6 7.6 6.9 7.1 7.9 3,696,121 187 March 575,789 128 ! 34,697,812 14.9 19.8 9.8 7.0 10.3 11.7 2,491,651 122 A M p a r y il 5 5 6 4 6 1 , , 9 3 1 7 4 7 1 1 2 20 6 I I 3 34 4 , , 0 3 6 5 9 8 , , 7 6 4 6 4 8 5 5 7 0 , , 8 64 8 9 7 , , 3 8 8 3 1 2 1 15 3 . . 2 1 1 18 6 . . 2 9 1 9 0 . . 6 6 6 7 . . 7 1 1 9 1 . . 5 5 7 7 . . 0 0 2 2, , 5 2 0 2 5 7 , , 7 8 9 5 8 7 1 12 0 2 9 June 555,155 123 i 34,457,464 40,679,920 26.8 22.4 21.1 15.9 23.1 14.2 3,221,177 157 July 525,489 117 34,666, 794 32,372,064 42.5 32.3 38.0 35.0 42.0 32.7 2, 581,920 126 August 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 i 34,040, 806 30,928,337 51.8 34.8 39.6 37.3 44.6 38.0 1,968,801 96 October 399,837 89 33,669, 804 33,703, 523 49.0 34.9 38.3 26.3 43.2 26.0 1,531, 850 75 November 332,057 74 31,654,126 24,150,141 46.9 37.7 39.5 32.8 42.8 34.8 1,319,995 65 December 294,851 29,879,402 51.2 44.8 50.3 41.4 51.7 42.7 972,011 48 January, 1921... 57.0 49.2 58.1 52.9 59.4 50.8 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 n s t. - Book. b P o a a p r e d r . W pi r n a g p . - Fine. December, 1919 306,617 122,781 88,779 174,649 62,288 31,014 1920. June 337,115 130,380 94,957 215,131 72,987 34.121 1920. July 312,334 129,853 95,526 218,771 73,487 34,078 January 1302,541 129,663 96,419 211,934 70,109 August 305, 965 128, 818 94,424 215,633 75,226 33.122 February 266,191 114,235 85, 532 176,855 61,574 29,202 September.. 293, 913 121,005 94,142 218,743 70,917 34.207 March 1327,143 127,847 95,851 207,863 68,403 33,671 October 319,877 124,818 93,849 196,604 73,100 34, 526 April 1350,194 128,269 95,251 199,395 75,347 33,493 November.. 326,041 122,993 89,564 133, 818 65, 920 31.208 May 363,815 129,230 92, 856 213,475 70,511 31,575 December... 302,527 124,857 76,093 105,227 54,308 27,233 Sale of revenue stamps for manufactures of tobacco in the United States (excluding Porto Rico and Philippine Islands). [Commissioner of Internal Revenue.] Cigars. Cigarettes. Cigarettes. Manu- Manufactured factured Large. Small. Small. tobacco. Large. ] Small. Small. tobacco. Number. Number. Number. Pounds. 1920. Number. Number. Number. Pounds. December, 1919 662,046,997 45,491,540 4,578,641,450 29,409,443 June 708,112,284 52,735,587 4,088,834,583 34,231,058 July 678,751,956 51,766,100 3,053,336,563 30,988,646 1920. August 672,020, 289 48,171,240 3,569,397,443 32,138,941 January 663,634,243 58,837,900 4,528,760,833 33,608,313 September. 678,640,116 50,175,580 3,557,482,503 32,094,569 February 593,832,200 43,358, 500 3,536,117,847 31,531,460 October 704,799,089 60,882,760 3,840,334,806 27,123,774 March 753,239,958 55,052,100 4,373,778,917 <*8,422,481 November. 668,060,015 57,026,500 3,529,200,006 18,513,654 April 1663,577,579 56,548,853 3,756,989,397 34,327,970 December.. 506,126,135 47,380,000 2,816,818,050 15,452,701 May 1676,227,828 59,943,280 3,953,345,380 34,875,839 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

226 FEDERAL RESERVE BULLETIN. FEBRUARY, 1921. 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 h o i t p m i p c e e s d - . F p c o le o re t m e ig d - n . Do •H m r» es- Foreign. Total. s D hi o p t m i p c e e s d - . F p c o le o re t m e ig - d n . Do ti m c. es- Foreign. Total. Number. Number. Number. Number. Number. 1920. Number. Number. Number. Number. Number. December, 1919— 103 42 4,506 2,428 6,934 June 99 72 2,780 731 3,511 July 122 54 2,731 434 3,165 1920. August 114 125 3,409 1,210 4,619 January 48 22 4,650 1,914 6,564 September. 126 69 3,955 1,203 5,058 February 43 85 3,960 1,066 5,026 October 198 106 6,309 684 6,993 March 45 59 3,053 2,040 5,093 November. 204 73 6,243 985 7,228 April 36 96 2,313 1,934 4,247 December.. 198 93 7,551 1,420 8,971 May 83 112 2,792 1,402 4,194 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. Number. to G n r n o a s g s e. Relative. December, 1919 149 294,064 1,217 ! 1920. June 198 267,076 1,105 1920. July 173 217,239 899 January 115 253,680 1,050 August 178 259,210 1,073 February | 140 267,231 1,144 September 135 261,962 1,084 March I 170 279,709 1,157 October 120 227,162 940 April i 164 251, 442 1,040 November 119 213, 966 885 May I 184 185,145 776 December 87 176, 903 732 Tonnage of vessels cleared in the foreign trade. [Department of Commerce.] [Monthly average, 1911-1913=100.] Net tonnage. Per- Net tonnage. Percent- cent- Rela- age Rela- Rela- age Relative. Ameri- tive. tive. Ameri- tive. American. Foreign. | Total. can to American. Foreign. Total. can to total. total. December, 1919. 2,043,675 1,733,923 j 3,777,598 97 54.1 214 1920. June.; 3,199,274 3,141,913 6,341,187 163 50.5 200 1920. July 3,302,538 3,616,052 6,918,590 178 47.7 189 January 1,933,385 1,949,798 3,883,183 100 49.8 197 August 3,616,267 3,929,602 7,545,869 194 47.9 190 February 1,702,407 1,628,212 3,330,619 89 51.1 202 September 3,421,531 3,513,599 6,935,130 178 49.3 195 March 2,040,031 2,040,538 4,080,569 105 50.0 198 October 3,500,312 3,756,512 7,256,824 187 48.2 191 April 2,504,038 1,960,634 4,464,672 115 56.1 222 November 3,302,367 2,868,294 6,170,661 159 53.5 212 May 2,729,790 2,436,247 5,166,037 133 52.8 209 December 2,785,615 2,949,416 5,735,031 147 192 Net ton-miles, revenue and nonrevenue. [United States Railroad Administration; March, 1920, on, Interstate Commerce Commission.] November, 1919 32,750,629,000 1920. | June I 38,157,869,000 1920. July 40,450,094,000 January 34,764,807,000 August 42,706,838,000 February 32,695,352,000 September 40,999,843,000 March 37,991,269,000 October 42,562,687,000 April 28,530,657,000 November 37,458,630,000 37,902,007,000 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

FEBRUARY, 1921. FEDERAL RESERVE BULLETIN. 227 Commerce of canals at Sault Ste. Marie. [Monthly average, May-November, 1911-1913=100.] EASTBOUND. Grain other than wheat. Wheat. Flour. Iron ore. Total. Rela- Rela- ! Rela- Rela- Rela- Bushels. tive. Bushels. tive. Barrels. tive. Short tons. tive. Short tons. tive. December, 1919 4,183,727 7,807,045 430,090 j 40,880 409,576 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 8,707,350 147 9,153,884 131 July 3,133,419 35 7,838,470 41 I 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 I 98 8,656,823 146 9,876,641 141 November.. 9,921,968 111 37,236,311 193 1,317,800 i 114 5,553,173 94 7,065,488 101 December.. 4,967,830 27,025,281 444,830 i. 137,564 1, 111, 527 WESTBOUND. Hard coal. Soft coal. Total. Total freight. Short tons. R ti e v l e a . - Short tons. R ti e v l e a . - Short tons. R t e iv la e - . Short tons. R ti e v l e a . - December, 1919 69,143 89,616 499,192 1920. April 10,000 50,831 82,483 537,209 May 202,000 65 531,375 28 937,374 38 8,421,210 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 November 329,845 106 1, 869,723 97 2,354,092 95 9,419,580 99 December 51,050 316,225 393,752 1,505,279 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

228 FEDERAL RESERVE BULLETIN. FEBRUARY, 1921. BANK DEBITS DURING JANUARY. Aggregate debits to individual account, as probably because that week included the reported for banks in 157 important clearing heavy transactions of December 31, whereas house centers for the four weeks ending Janu- the corresponding business week of the earlier uary 26, show a general downward tendency, year began on January 2. A downward the total for the week ending January 5 being tendency, with a temporary rise for the third 10,810 millions, and the total for the week week, is noted in the debits in 1920, as well m ending January 26 being 8,163 millions. The as in those for the present year. week ending January 19, however, saw a larger It should be mentioned that in the table volume of bank debits than either the pre- giving detailed figures for each center, two ceding or the following week, this being appar- lines are shown for Boston and for Louisville. ently due in part to the considerable volume of This is for the reason that a considerable num- Treasury transactions in the redemption and ber of banks which did not submit reports in issuance of certificates of indebtedness during 1920 in these cities have been furnishing reports the week. Aggregate debits reported for this year. The larger figures for these centers clearing-house banks in New York City show a include reports from all reporting banks, while movement parallel to that for debits from all the smaller figures include only those banks for reporting centers. which reports were received both in 1920 and A comparison with figures for the corre- in 1921. In compiling the summary, the sponding weeks of 1920 shows that the more smaller amounts, comparable for both years, recent figures are substantially lower for every were used, while in the detailed table the most week, except the week which ended on Janu- complete returns received for the current weeks ary 5, 1921, and on January 7, 1920. For are also shown. that week the more recent figures are larger, Debits to individual accounts at clearing-house banks. SUMMARY BY FEDERAL RESERVE DISTRICTS. [In thousands of dollars.] 1921 1920 Number Week ending- Week ending- Federal Reserve district. of centers included. Jan. 5. Jan. 12. Jan. 19. Jan. 26. Jan. 7. Jan. 14. Jan. 21. Jan. 28. Boston 525,091 406,754 443,020 363,566 535,474 523,278 532,245 465,363 New York.... 5,894,590 4,525,613 5,025,651 4,398,022 5,713,971 5,498,821 5,563,520 4,754,514 Philadelphia.. 482,101 402,231 399,501 376,915 460,951 440,109 457,177 415,840 Cleveland 792,635 596,067 581,836 539,268 642,055 577,974 579,466 549,772 Richmond 210,613 173,391 165,670 157,112 223,192 196,035 209,187 183,509 Atlanta 252,272 214,318 192,064 203,507 314,270 301,669 278,216 264,926 Chicago 1,152,805 1,023,666 1,054,411 951,056 1,157,325 1,175,035 1,261,432 1,035,864 St. Louis 257,755 * 206,859 205,238 187,830 272,625 278,247 243,349 Minneapolis... 170,229 150,598 148,774 126,092 173,558 189,522 177,414 158,702 Kansas City.. 313,026 285,057 277,075 248,762 320,735 343,874 358,331 307,627 Dallas 178,068 166,018 157,752 149,833 186,800 175,463 182,352 155,627 San Francisco. 580,803 543,849 527,152 461,506 543,841 550,514 574,738 493,800 Total... 157 10,809,988 8,694,421 I 9,178,144 8,163,469 10,570,812 10,244,979 10,452,325 9,028,893 NOTE.—Figures for the following centers, while shown in the body of the statement, are not included in the summary, complete data for these centers not being available for each week under review: Manchester, Reading, Greenville, Huntington, Washington, Wilmington (N. C), Moline, Quincy, and Springfield (Mo.). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

FEBRUARY, 1921. FEDERAL RESERVE BULLETIN. 229 Debits to individual accounts at clearing-house banks—Continued. DATA FOR EACH REPORTING CENTER. [In thousands of dollars.] 1920 Week ending— Week ending- Jan. 5. Jan. 12. Jan. 19. Jan. 26. Jan. 7. Jan. 14. Jan. 21. Jan. 28. District No. 1—Boston: Bangor 4,218 4,343 3,318 3,178 3,908 3,614 3,395 2,972 Boston 1 344,716 1 254,145 1289,022 i 232,856 346,266 350,074 355,216 306,189 Boston 449,523 334,026 374,862 308,967 Fall River 6,440 6,321 6,125 5,972 10,011 11,424 9,383 9,519 Hartford 33,404 23,888 24,473 19,347 34,702 23,413 24,654 20,603 Holyoke 3,875 3,413 3,692 3,685 4,118 4,467 4,198 4,927 Lowell 5,557 4,995 4,862 4,238 5,837 5,612 5,700 4,994 Manchester 5,954 4,495 3,991 3,643 New Bedford 6,184 5,409 5,768 5,066 9,959 8,994 9,045 8,059 New Haven 21,228 18,254 19,977 15,699 22,357 19,571 20,565 20,227 Portland 10,168 9,318 8,944 7,680 8,101 8,217 7,595 6,867 Providence 40,153 37, 737 36,132 31,462 45,836 44,842 45,842 40,248 Springfield 17,481 15,073 16,279 13,805 16,526 16,529 19,335 16,648 Waterbury 9,091 7,126 6,358 5,486 8,135 8,024 7,687 7,601 Worcester 22,576 16,732 18,070 15,092 19,718 18,497 19,630 16,509 District No. 2—New York: Albany i 26,276 25,243 28,699 23,725 24,507 16,217 17,832 22,781 Binghamton 4,620 4,637 3,980 3,443 4,482 4,608 4,082 3,830 Buffalo 79,077 71,474 66,270 56,326 74,716 75,031 76,336 62,684 New York 5,716,687 4,374,122 4,873,938 4,266,270 5,545,691 5,347,254 5,412,377 4,616,856 Passaic 5,491 4,978 5,197 4,353 5, 6,111 5,513 4,948 Rochester 41,336 28,903 31,031 31,240 36,705 31,706 31,333 30,160 Syracuse 21,103 16,256 16,536 12,665 22,190 17,894 16,047 13,255 District No. 3—Philadelphia: Altoona 3,360 3,540 3,828 3,233 2,805 3,689 2,715 3,370 Chester 5,088 4,705 5,579 5,389 5,356 5,120 5,497 4,363 Harrisburg 7,593 7,478 7,032 7,320 3,579 4,100 4,239 5,134 Johnstown 5,271 4,919 5,242 4,871 3,311 3,220 3,275 2,810 Lancaster 5,357 5,693 6,054 4,451 5,914 5,633 5,881 5,111 Philadelphia 390,989 317,875 320,858 300,092 385,293 361,896 387,236 343,180 Reading 6,459 5,901 Scranton 16,790 19,279 12,762 16,636 15,705 15,312 12,169 15,703 Trenton 13,500 11,434 12,597 10,642 11,764 11,599 11,183 10,410 Wilkes-Barre 10,421 8,549 8,743 8,832 8,130 8,765 8,188 8,187 Williamsport 5,818 4,786 4,546 4,450 3,632 3,860 3,806 3,961 Wilmington 13,374 9,874 8,527 7,206 11,143 12,905 8,942 10,102 York 4,540 4,099 3,733 3,793 4,319 4,010 4,046 3,509 District No. 4—Cleveland: Akron 19,325 14,551 13,747 12,449 25,760 26,774 28,832 18,632 Cincinnati 112,880 73,672 73,909 63,467 63,680 63,121 69,333 61,402 Cleveland 258,758 176,203 159,550 146,170 221,120 179,193 157,648 164,194 Columbus 37.126 32,100 29,087 27,544 32,285 30,973 33,013 27,228 Dayton 13,799 13,071 11,539 11,287 14,438 12,481 12,573 11,753 Erie 7,422 7,641 6,759 6,645 7,437 6,975 7,569 6,259 Greensburg 5,702 5,405 5,400 5.598 3,779 3,068 3,725 4,822 Lexington 5,203 5,799 4,363 4; 807 11,517 12,486 13,470 11,708 Oil City 3,929 3,886 3,950 3,173 3,202 2,942 2,874 2,315 Pittsburgh 257,685 202,688 216,622 206,973 193,928 180,701 190,525 181,501 Springfield 5,762 4,616 4,107 3,863 4,423 3,757 4,109 3,012 Toledo 34,615 28,908 27,942 23,539 31,868 30,141 33,009 29,432 Wheeling 10,340 9,580 9,544 8,515 9,920 8,290 8,714 9,855 Youngstown 20,109 17,947 15,317 15,238 18,698 17,072 14,072 17,659 District No. 5—Richmond: Baltimore 134,443 103,349 104,602 89,658 124,618 105,421 111,390 99,710 Charleston 6.900 6,655 6,642 7,084 11,782 12,796 11,744 11,648 Charlotte 8,173 6,744 4,783 4,999 11,769 11,485 11,326 9,259 Columbia 5,650 5,517 4,700 4,969 9,480 8,062 10,286 9,587 Greenville 2,941 3,349 Huntington 5,557 5,786 6,319 5,344 Norfolk. 18,5S0 17,497 14,965 16,367 24,795 20,429 22,899 20,114 Raleigh 4,900 4,100 4,100 3,900 6,900 6,700 5,900 5,500 Richmond 31,967 29,529 25,878 30,135 31,202 35,642 27,691 Washington 39,955 38,948 36,762 34,000 Wilmington 8,257 6,973 5,105 District No. 6—Atlanta: Atlanta 29,485 27.125 22,987 24,558 40,794 35,800 35,379 33,067 Augusta 6,330 6,792 4,895 5,893 13,365 15,921 13,255 12,923 Birmingham 27,049 14,495 14,815 19,312 21,577 16,857 16,347 15,393 Chattanooga 11,929 10.126 8,801 9,231 14,699 15,096 13,380 12,343 Jacksonville 13,572 13,143 11,253 12,842 15,045 14,048 14,048 16,562 Knoxville 9,214 6,736 5,313 6,180 8,578 7,139 7,377 6,659 Macon 5,818 4,790 4,498 4,383 8,891 10,224 9,314 10,019 Mobile 8,364 8,128 5,818 6,828 11,424 9,960 9,634 9,793 Montgomery 4,068 4,386 3,677 3,970 6,322 7,350 6,933 6,236 Nashville 22,852 24,856 18,702 22,386 29,572 29,164 25,885 27,915 New Orleans 89,548 72,523 72,423 67,612 109,342 102,289 91,781 83,504 Pensacola 2,164 1,561 1,508 1,666 3,112 2,500 2,809 2,197 Savannah 13,207 11,472 10,536 10,913 22,438 26,230 23,556 19,747 Tampa 6,568 6,241 5,204 6,103 6,434 6,540 5,926 6,378 Vicksburg 2,104 1,944 1,634 1,630 2,677 2,551 2,592 2,190 District No. 7—Chicago: Bay City 3,703 3,412 3,227 2,531 3,893 3,538 3,907 4,048 Bloomington 2,925 2,558 2,405 1,915 3,481 3,109 2,711 2,521 Cedar Rapids 11,649 13,732 11,084 10,495 9,847 7,305 8,505 9,691 Chicago 780,386 672,494 687,141 635,506 721,374 767,844 806,752 676,679 Davenport 9,725 7,382 6,999 6,757 10,545 7,189 6,852 6,978 Decatur 3,283 3,238 3,719 2,911 5,176 4,378 4,709 3,664 Des Moines 16,824 21,319 17,724 15,703 21,350 23,872 22,280 21,412 Detroit 114,936 110,040 126,283 101,014 164,688 146,076 181,862 127,735 Dubuque. 3,738 4,012 3,388 2,824 3,097 4,153 3,389 3,088 1 Debits of banks submitting reports in both 1920 and 1921. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

230 FEDERAL RESERVE BULLETIN. FEBRUARY, 1921. Debits to individual accounts at clearing-house banks—Continued. DATA FOR EACH REPORTING CENTER. [In thousands of dollars.] 1931 Week ending- Week ending— Jan. 5. Jan. 12. T Jan. 19. Jan. 26. Ian. 14. District No. 7—Chicago—Continued. Flint 4,524 4,756 4,051 8,000 5,700 Fort Wayne 7,191 7,515 6,991 6,806 7,539 Grand Rapids 20,330 19,686 19,761 ! 20,497 19,487 Indianapolis 35,953 34,858 30,992 35,602 40.733 Jackson 3,852 3,951 4.299 4,349 4,560 Kalamazoo 5,197 4,772 3.894 4,61S 4, Lansing 4,955 4,697 4,325 6,131 5.597 Milwaukee 59,534 | 71,532 60,379 79,946 72,744 Moline 2,030 2,348 1,820 Dist W R S P S S ri i e p o o c o a o r c u t u i t r k n e t x i N h f g r a o l f o C o r B i . e d o i e t 8 ld y n — , d 1 S 1 t 1 . Louis: 1 13 6 0 3 6 3 ' , , , , , , 4 2 4 9 1 6 6 5 9 2 2 8 1 7 6 8 0 1 1 9 6 4 3 2 3 , , , , , , 6 7 0 7 9 4 4 7 3 7 3 5 3 5 9 5 3 9 1 7 4 3 2 5 3 , , , , , , 9 4 2 5 3 2 9 3 2 0 1 3 3 3 9 4 0 9 I i 1 1 2 3 7 5 3 4 , , , . . , 7 9 1 7 6 0 0 * 9 8 1 0 4 4 2 1 1 3 4 3 7 0 6 , , , , , , 4 5 9 4 5 5 2 1 9 7 8 7 1 0 4 0 7 0 1 1 5 3 3 4 1 6 , , , , , , 7 5 1 2 9 8 1 3 6 1 3 7 6 5 8 3 0 0 1 Evansville 6,546 4,469 4,781 Little Rock 11,265 8,299 12,92S Louisville 126,220 125,596 123, Louisville 30,981 30,101 Memphis 33,353 24,225 27,1S2 Quincy 2,486 2,342 1,908 St. Louis 129,475 142,649 118,951 Springfield, Mo 3,257 3,367 2,977 District No. 9—Minneapolis: A B D i b u l e l l i u r n d t g e h s en 2 1 2 4 , , , 6 0 2 2 8 7 5 6 3 2 4 2 3 , , , 7 2 7 0 1 4 9 8 2 2 1 1 2 , . , 4 9 2 9 2 4 7 3 4 16 1 1 , , , 2 6 9 4 8 2 1 3 1 1 2 2 6 , , , 8 0 0 5 6 8 1 2 7 1 2 1 8 , , , 4 9 2 1 1 9 6 4 9 1 2 1 9 , , , 5 4 0 9 2 8 7 9 4 1 3 2 6 , , , 1 8 5 3 2 0 3 9 2 Fargo 2,372 2,475 2,139 1,822 3,328 3,021 3,116 2,549 Grand Forks 1,325 1,299 1.264 1,136 2,178 1.939 1,554 1,432 Great Falls 2,619 2,528 2,275 1,969 2,895 3; 214 2,693 2,675 Helena 3,465 3,849 2,559 2,082 3,096 2,639 2,403 2,615 Minneapolis 90,604 75,594 75,412 68,691 88,359 103,142 97,751 81,537 St. Paul 33,336 25,859 32,117 23,766 37,961 40,310 36,804 36,032 Sioux Falls 5,700 5,000 4,500 3,900 10,488 9,372 6,829 6,800 Superior 1,937 2,248 1,864 2,057 2,036 1,896 2,024 1,687 Winona 887 1,077 98D 824 2,217 1,360 1,130 911 District No. 10—Kansas City: A Ba tc r h tl i e s s o v n ille 4 1 , ,2 1 0 0 8 2 2 1, , 3 9 0 9 0 9 4 1 , ,6 0 0 9 0 7 2 1 , ,1 6 3 0 5 8 3, 6 2 8 9 4 0 2, 6 8 9 6 0 4 3,8 5 1 7 9 0 ! 3, 5 0 6 1 3 0 Cheyenne 2,997 2,145 2,334 1,592 2,579 2,063 2,132 I 1,641 Colorado Springs 3,773 2,973 2,807 2,060 3,739 3,333 3,054 j 3,155 D Jo e p n l v in er 5 2 2 , , 4 6 7 3 7 9 40 2 , ,9 4 8 44 9 2 2 9 , , 4 3 5 5 0 9 35 2 , ,1 4 2 8 5 0 5 3 2 , , 9 06 0 3 4 6 3 0 , , 9 6 0 4 7 6 5 3 8 , , 7 4 3 76 2 I i 4 3 4 , , 4 8 6 79 7 Kansas City, Kans 7,112 4,191 3,982 3,907 3,700 4,481 4,622 ! 3,915 M K O a k u n l s a k s h a o o s g m e C e a it y C , i t M y o 8 2 5 8 5 , , , 1 8 2 8 3 5 1 3 8 2 7 6 5 8 , , , 4 5 9 0 6 1 1 7 9 8 2 5 2 2 , , , 3 0 9 1 1 6 1 4 8 7 2 5 1 0 , , , 5 3 9 6 0 0 2 2 1 2 7 8 0 9 , , , 5 9 9 4 6 5 6 1 7 9 1 5 4 9 , , , 7 9 4 5 2 3 3 4 7 1 2 1 7 1 0 , , , 5 8 0 7 5 0 4 5 1 ! ! 9 1 5 4 7 , , , 5 7 1 6 6 6 7 2 2 O Pu m e a b h lo a Y.YYYYY. 44 6 , , 6 7 3 3 5 5 4 6 8 , , 5 4 0 3 1 3 4 3 5, , 6 8 1 5 6 2 4 3 2 , , 4 5 0 6 1 5 58 7, , 0 5 2 2 6 3 66 4, , 8 0 1 9 1 9 6 4 4 , , 0 5 9 6 4 9 6 4 0 , , 8 8 1 3 9 1 St. Joseph 19,391 17,012 22,911 18,911 22,544 24,249 25,856 21,265 Top * 4,445 4,597 4,251 4,130 7,363 5,995 5,989 5,067 Dist W ric i t c h N it o a . 11—Dallas: 3 1 1 2 , , 5 7 0 3 9 1 2 1 8 2 , , 3 1 8 9 7 9 3 1 1 1 , , 8 67 5 2 1 2 1 2 0 , , 5 5 0 7 5 8 2 1 8 7 , , 4 40 4 9 7 2 1 9 4 , , 7 84 8 1 1 2 13 8 , , 9 0 5 3 7 1 I i 2 1 5 1 , , 7 8 0 1 6 8 Dist A W A B T D H T S E S F G ri h a u e o l e c l u o a a a b n x r c a t r l l s u P c e l v u s t u a t N a s A o a v o i e q r m W t s n s e k s n o o u n o t p o a n , e o t o o o n n r 1 n r r n q a t 2 t t h i u — o e San Francisco: 4 2 2 3 2 3 5 8 8 3 4 7 2 4 8 7 1 , , , , , , , , , , , , , 5 0 6 8 4 9 5 0 8 4 0 0 5 6 2 9 2 4 6 1 3 8 5 9 0 5 0 8 9 8 3 3 7 0 9 8 9 4 0 3 2 2 2 4 4 1 8 9 9 8 4 2 4 7 1 9 , , , , , , , , , , , , , 9 0 5 6 0 7 2 3 3 1 3 6 9 1 7 5 9 5 0 5 0 8 8 3 4 0 6 9 1 8 4 7 9 0 9 3 3 1 8 3 2 2 2 2 3 4 7 7 9 4 1 8 4 9 1 3 , , , , , , , , , , , , , 4 0 4 8 4 4 4 7 0 0 7 0 9 8 8 4 3 0 9 6 3 0 0 8 4 7 9 3 7 6 7 0 0 0 7 5 0 0 * 3 2 3 1 2 4 7 1 6 7 4 5 4 1 1 1 9 , , , , , , , , , , , , , 7 8 8 9 2 3 0 0 1 9 7 8 9 1 7 5 9 8 2 1 1 9 8 6 9 2 2 8 2 0 7 0 7 8 0 0 8 9 2 2 5 3 1 1 2 4 4 9 9 5 7 9 9 0 0 2 1 , , , , , , , , , , , , , 3 1 9 9 5 0 0 6 0 1 6 9 3 0 1 5 5 0 9 2 8 5 4 6 8 3 3 6 1 3 0 0 5 3 9 4 0 4 2 1 5 2 1 $ 5 2 4 9 7 4 9 5 1 4 1 0 8 , , , , , , , , , , , , , 3 0 6 0 9 8 8 0 3 8 4 1 9 6 4 0 1 4 2 8 7 3 8 2 2 5 0 4 0 4 4 4 6 5 4 4 0 5 3 5 2 3 1 1 4 4 1 9 4 9 2 7 1 8 4 2 0 , , , , , , , , , , , , , 9 4 6 7 0 2 3 9 2 7 4 5 7 6 2 5 8 8 8 5 4 7 7 9 5 7 1 4 0 5 7 0 0 1 7 0 7 9 1 I I I I i ! ! 4 3 2 4 3 1 9 8 4 8 8 3 3 7 1 1 , , , , , , , , , , , , , 8 4 4 4 6 2 8 2 6 1 2 3 0 9 3 6 8 0 9 6 0 9 1 5 2 0 2 2 4 0 9 3 6 9 0 4 6 0 2 Y T S S S S S S S S R B P B O P L L O F p t a e a a a a a a o a r o o e e o o g a c a o n c n e n l k s n r r n i c s d k t o t r s k s a k t i k t o J g e l a l F D m m n A e L d a l e a a o n t m e r o n l o e n B i a n n s a a a e e n e n k e d e g d n y e g a n e e a c o l t c i e C o s h s c i t o y Y V . " Y [ " . . . ; '.. 2 1 3 1 1 3 3 4 2 1 0 1 2 6 1 5 7 5 0 2 9 3 5 3 3 3 3 9 0 6 8 1 , , ^ , , , , , , , , , , , , , , , , , 0 4 2 3 3 0 6 9 7 8 7 6 0 1 4 3 8 7 7 5 7 0 1 3 4 2 1 5 9 1 4 1 5 6 1 6 8 3 3 0 8 8 4 8 6 1 7 0 1 8 2 6 5 4 0 4 9 9 4 9 2 1 3 1 1 1 3 2 1 1 1 1 1 5 2 5 0 6 2 2 3 4 6 7 2 6 5 9 0 1 6 5 0 , , , , , , , , , , , , , , , , , , , , 0 6 7 4 1 7 9 0 8 3 1 1 7 0 0 1 0 0 8 6 5 8 8 5 4 1 4 0 4 5 3 5 6 2 9 6 0 4 4 2 3 8 7 4 4 4 7 5 6 4 9 4 3 9 0 7 2 2 4 7 2 1 3 1 2 3 1 1 1 1 0 4 8 2 4 5 8 2 5 5 2 3 6 3 9 8 4 2 0 0 9 , , , , , , , , , , , , . , , , , , , , 2 7 8 0 9 1 3 6 2 1 4 4 7 3 3 4 3 2 3 0 5 9 3 0 5 2 0 7 6 4 9 4 2 9 1 6 9 4 1 0 7 6 9 1 7 4 0 1 2 4 8 6 7 2 5 8 1 5 8 1 1 1 2 1 3 8 1 1 1 0 4 4 7 1 2 4 4 5 2 8 4 0 2 9 3 5 1 3 9 4 , , , , , , , , , , , , , , , , , , , , 9 9 3 1 1 4 8 8 8 2 1 7 7 3 4 3 1 6 6 6 7 1 4 4 1 9 2 1 2 7 1 6 5 3 0 2 2 2 5 7 4 6 9 7 1 4 0 7 7 8 2 7 6 0 6 5 3 8 4 2 1 1 9 5 2 4 1 9 1 1 1 3 3 6 0 3 5 5 3 7 1 6 7 9 0 4 4 8 9 9 3 , , , , , , , , , , , , , , , , , , , , 1 0 8 3 6 4 0 7 9 1 9 1 4 3 4 8 0 8 0 4 8 1 1 5 3 2 6 4 9 1 0 0 1 5 9 2 1 6 5 6 5 7 5 1 1 6 3 8 7 4 8 5 7 2 2 0 2 3 8 7 2 9 4 4 1 2 1 1 1 1 1 3 7 3 4 4 5 2 6 5 7 5 8 7 0 5 1 3 6 1 9 , , , , , , , , , , , ; , , , , , , . , 4 5 0 0 4 5 7 8 6 7 9 2 7 3 4 1 9 1 1 3 0 6 1 5 1 7 4 7 8 9 4 2 8 1 1 4 3 3 4 7 1 1 1 1 0 6 3 3 0 4 6 0 4 2 8 7 7 2 2 6 1 2 2 5 1 2 5 1 1 1 0 2 3 3 5 5 5 5 3 3 8 6 1 0 0 0 3 0 1 4 6 6 , . , , , , , , , , , , , , , , , , , , 0 1 4 5 6 3 0 5 3 2 2 7 2 5 1 8 4 1 0 9 1 0 7 7 2 0 7 4 5 3 9 0 8 9 1 9 3 8 1 0 8 6 5 0 0 2 1 6 8 5 9 5 8 2 3 6 7 7 7 3 • I I I i ! ! ; j i i ! i i 1 9 3 4 1 1 1 1 9 3 8 5 5 3 5 3 2 4 9 2 2 6 5 7 2 9 7 2 3 , , , , , , , , , , , , , , , , , , , 7 7 4 8 4 6 3 9 9 2 9 9 8 5 9 2 3 1 0 4 9 3 4 2 4 0 7 0 4 3 8 4 0 5 5 9 3 8 0 3 6 5 0 9 3 6 4 7 1 2 4 3 9 7 8 3 3 3 1 6 1 Debits of banks, submitting reports in both 1920 and 1921. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

FEBRUARY, 1921. FEDERAL RESERVE BULLETIN. 231 DISCOUNT AND OPEN-MARKET OPERATIONS OF THE FEDERAL RESERVE BANKS DURING DECEMBER, 1920. Discount and open-market operations of the Increased volume is shown both for discounts Federal Reserve Banks during December and of paper secured by Government war obliga- November, 1920 and 1919, are shown in sum- tions and of paper not so secured, the former mary form for the entire system in the table increasing from 4,350 to 5,030 millions, and below. Detailed figures ior each Federal the latter from 3,533 to 4,432 millions. ' Dis- Reserve Bank for the most recent month are counts of trade acceptances increased from 15 given on pages 232, 233, and 234. to 16 millions, while those of bankers' acceptances declined from 13 to 10 millions. All Summary of discount and open-market operations of Federal other discounts, composed of commercial paper Reserve Banks in December and November, 1920 and 1919. not otherwise specified and of agricultural and live stock paper, show by far the largest in- [In thousands of dollars.] crease, aggregating 4,406 millions, compared with 3,505 millions in November, 1920, and 1920 1919 1,003 millions in December of the year before. Average maturity of paper discounted in Decem- Novem- Decem- November. ber. ber. ber. December was 11.55 days, compared with 12.17 days the month before and 11.52 days Total discounts and open- in December, 1919, while the average rate of D m isc a o rk u e n t t s p , u to rc ta h l ases . 9 0 , , 4 6 6 57 1 , , 9 6 8 5 0 8 ' 7 8 , , 8 71 8 4 2 , , 0 9 5 3 5 3 8 7 , , 4 2 4 9 9 0 , , 9 8 4 7 6 3 7 7 ' ' , . , , 8 4 1 1 2 4 , , 0 4 8 9 1 8 discount shows a further slight increase from Secured by Government war 6.45 per cent in November to 6.48 per cent in obligations 5,029,595 4,349,752^, 202,198 6i,, 761,542 Otherwise secured and un- December, as compared with 4.67 per cent in sec C u o r m ed m , e to rc ta ia l l, n. e. s., 4,432,063 3,533,1811,088,675 652,956 December, 1919. agricultural and live Total bills purchased in December were 20 stock paper 4,406,180 3,504,703il, 002,962 628,979 Trade acceptances 16,240 15,200 23,467 21,924 millions more than in November, but 149 mil- Ave B ra a g n e k m er a s t ' u a r c it c y e p ( t i a n n d c a e y s— s). 9 1 , 1 6 . 4 55 3 1 1 3 2 ,2 .1 7 7 8 6 1 2 1 ,2 .5 4 2 6 2,053 lions less than in December of the year before. Average rate (365-day basis), 11.36 The somewhat larger amount of bills purchased per cent 6.48 6.45 4.67 Open-market operations: 4.53 by the Federal Reserve Banks during the most Bills B p a u n r k c e h r a s s ' ed, a c to ce ta p l tances, 252,069 231,840 400,708 340,696 recent month was due to a temporary falltotal 239,454 221,670 392,934 ing off of the demand for this class of bills by In the domestic trade 63,007 52,619 86,379 335,545 In the foreign trade. 176,447 169,051! 306,555 82,850 the investing public. Of the total of 252 mil- Trad In e t a h c e c e d p o t m an e c s e ti s c , t t r o a t d a e l. 1, 2 37 55 6 1, 2501 2 5 , , 0 08 0 1 7 25 3 2, , 6 6 9 8 5 7 lions of bills purchased in December, 239 In the foreign trade.. 1,121 7581 3,074 790 millions were bankers7 acceptances, 1 million Dollar exchange 11,240 9,162| 2,693 2,897 Average maturity (in days). 38.43 35.11 57.11 1,464 was trade acceptances, and 11 millions were Av p e e r r a g ce e n r t ate (365-day basis), 6.08 6.05 4.84 5 4 5 . . 4 5 7 5 dollar exchange. Of the bankers7 accept- United States securities pur- ances purchased, about 63 millions were chased: Bonds bills drawn in the domestic trade and 176 Certificates of indebtedness.. 944,253 599, 758,361 56,887 millions were bills drawn in the foreign trade, while of the trade acceptances, about four- Discount operations in December aggregated fifths were bills in the. foreign trade. The 9,462 millions, marking an increase of 1,779 average maturity of purchased bills was millions, or 16.6 per cent, over the total for 38.43 days, marking an increase from the 35.11 November and of 2,171 millions, or 22.9 per days shown for the month before and a decent, over the December, 1919, aggregate. cided reduction from the 57.11 days shown for While, for the system as a whole, discount December, 1919. The average rate charged operations were larger in December than in on purchased bills was 6.08 per cent in Decem- November, four of the Federal Reserve Banks, ber, compared with 6.05 per cent for the two those of Atlanta, St. Louis, Kansas City, and preceding months and 4.84 per cent for De- Dallas, report smaller figures for the most cember of the year before. recent month. It is in these four banks that During the month under review, 37 banks systems of graduated rates had been in opera- were added to the membership of the system, tion, although the Atlanta bank abandoned the total number of member banks increasing the plan on November 1. The fact that the from 9,591 at the end of November to 9,628 at volume of discounts in these southern and the end of December, while the number of middle western banks has declined somewhat banks accommodated through the discount of is indicative of a relaxation of the heavy credit paper increased from 5,275 in November to demand which wTas manifest in these districts 5,551 in December, and constituted 57.7 per earlier in the year. cent of the total membership, as against 55 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

232 FEDERAL RESERVE BULLETIN. FEBRUARY, 1921. per cent the month before. The number of Summary of discounted and purchased paper held by the member banks in each district at the end of Federal Reserve Banks at the end of December and of November, 1920 and 1919.1 November and of December and the number and percentage accommodated during each of [In thousands of dollars.] the two months are shown in the following 1920, end of— 1919, end of— statement: Decem- Novem- Decem- Novem- Member banks Member banks Percentage ber. ber. ber. ber. in district. accommodated. accommodated. Federal Reserve Discounted paper, total 2,719,134 2,735,400 2,194,878 2,214,139 Bank. Dec. 31.Nov. 30. D b ec e e r. m-No b v e e r m . - D b ec e e r. m-No b v e e r. m- S O e o t c h b u e l r r i e w g d a i t s i b e o y n s s G ec o u v r e e r d n m a e n n d t w un a - r 1,141,036 1,192,425 1,510,354 1,736,145 secured, total 1,578,098 1.,542,975 684,524 477,994 Commercial paper, n. e. s.1,292,513 1.,267,625 584,280 395,701 Boston 436 434 256 219 58.7 50.5 Agricultural paper 143,145 136,315 24,825 27,023 New York 783 781 345 316 44.1 40.5 Live-stock paper 103,795 105,246J 26,243 25,527 Philadelphia 698 700 341 325 48.9 46.4 Trade acceptances 21,427 20,9611 33,697 27,694 Cleveland 869 871 272 239 31.3 27.4 Bankers' acceptances 17,218 12,828 15,479 2,049 Richmond 610 612 373 343 61.1 56.0 Purchase paper, total 260,406 240,622 574,103 501,910 Atlanta.. ... 461 453 310 335 67.2 74.0 Bankers' acceptances, total... 258,878 238,516 566,369 495,330 Chicago 1,422 1,409 959 1,026 67.4 72.8 Member banks 169,387 153,302! 405,339 347,852 St. Louis 572 571 318 299 55.6 52.5 Nonmember trust com- Minneapolis 1,009 999 664 587 65.8 58.8 panies 1,626 l,167i 5,121 6,446 Kansas City 1,087 1,086 671 658 61.7 60.6 Nonmember State banks. 36,748 32,3351 60,213 48,798 Dallas.. 849 846 600 524 70.7 61.9 Private banks 24,905 26,010: 55,537 55,876 San Francisco.. . . 832 829 442 404 53.1 48.7 Branches and agencies of foreign banks 26,212 25,702i 40,159 36,358 Total 9,628 9,591 5,551 5,275 57.7 55.0 Trade acceptances, total 1,523 2,106; 7,734 6,580 Domestic 505 515! 2,540 1,646 Foreign 1,028 1,591! 5,194i 4,934 Federal Reserve Bank holdings of discounted and purchased paper, by classes, at the end of i For discounted paper the figures are for the last Friday of each month; November and December, 1920 and 1919, are for purchased paper for the last day of each month. shown in detail on page 236 and are summarized Holdings of bills purchased in the open for the system as a whole in the table opposite. market totaled 260 millions at the end of Among the principal changes between the December, compared with 241 millions at the end of November and the end of December in end of November, 1920, and 574 millions at holdings of discounted paper, the following are the end of December, 1919. Bankers' acceptto be noted: A further decrease of 51 millions ances on hand aggregated 259 millions, comin paper secured by Government war obliga- pared with 239 millions the month before. tions and an increase of 35 millions in other Of the most recent total 65.4 per cent were discounts held. Of the different classes of the acceptances of member banks, 14.8 per cent latter, all except live-stock paper show larger of nonmember State banks and trust comtotals for the most recent month, the increase panies, 9.7 per cent of private banks, 10.1 per for commercial paper not otherwise specified cent of foreign bank branches and agencies. being 25 millions, and that for agricultural Of the total of 1.5 millions of trade acceptances paper 7 millions. Holdings of discounted held at the end of December, comparable with trade acceptances increased by about one-half 2.1 millions held the month before, about twomillion and those of discounted bankers7 ac- thirds were acceptances in the foreign trade ceptances by about 4 millions, while live-stock and one-third acceptances in the domestic paper held decreased by nearly 2 millions. trade. Total discount and open-market operations of each Federal Reserve Bank during December, 1920. United States securities purchased. Total. Bills discounted Bills bought Federal Reserve Bank. for member in open banks. market. ^torT* Certificates ol December, December, Victory , ^^pht.prJnPss 1920. 1919. notes. Boston $549,407,990 $23,833,751 $84,257,000 $657,498,741 $570,574,325 New York 6,207,902,171 141,871,727 481,851,000 6,831,624,898 4,647,397,094 Philadelphia... 387,334,268 9,657,255 15,171,000 412,162,523 852,038,303 Cleveland 413,744,162 16,362,390 211,700,000 641,806,552 421,376,250 Richmond 291,232,384 3,797,431 500 295,030,365 382,096,080 Atlanta 232,855,955 2,679,700 1,007,000 236,542,655 157,168,599 Chicago 556,718,429 24,796,951 118,387,500 699,902,880 639,572,241 M St. i n L n o e u a i p s olis... 1 9 6 6 8 , , 2 3 9 0 9 0, , 0 9 5 4 0 6 2,3 6 1 7 6 0 ; , 2 1 5 5 2 9 7 4 , , 3 0 0 4 0 9, , 0 0 0 0 0 0 1 1 0 7 1 7 , , 0 9 1 16 9 , , 3 1 0 0 2 5 1 1 8 0 8 2 , , 6 8 2 3 2 9 , , 1 7 1 8 7 7 Kansas City... 139,185,857 1,973,450 $50 1,730,500 142,889,857 162,899,832 Dallas 110,809,696 71,673 3,000,000 113,881,369 64,117,451 San Francisco. 307,866,771 24,038,762 15,799,500 347,705,033 261,244,151 Total, December, 1920 9,461,657,679 252,069,551 50 944,253,000 10,657,980,280 Total, December, 1919 7,290,872,591 400,708,093 4,200 758,361,346 8,449,946,230 Total 12 months ending Dec. 31,1920 85,320,871,448 3,216,605,752 288,650 7,982,978,000 96,520," 597,850 Total 12 months ending Dec. 31,1919 79,173,969,730 2,825,177,002 1,756,575 4,736,162,846 •'86,"737,"667,'i5S 1 Includes $1,000 in municipal warrants. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

FEBRUARY, 1921. FEDERAL, RESERVE BULLETIN. 233 Average daily amount of earning assets held by each Federal Reserve Bank during December, 1920, earnings from each class of earning assets, and annual rates of earnings on basis of December, 1920, returns. Average daily holdings of— Dis b c i o l u ls n . ted Pu b r i c l h ls a . sed Un se it c e u d r it S i t e a s t . es Total. Boston $171,516,099 $19,976,749 $33,545,871 $225,038,719 New York 917,872,412 94,123,809 83,207,703 1,095,203,924 Philadelphia.. 166,911.387 13,486,948 33,022,300 213,420,635 Cleveland 195,513,189 27,068,325 35,420,070 258,001,584 Richmond 113,387,330 5,407,725 13,494,962 132,290,017 Atlanta 136,636,219 2,913,945 16,399,411 155,949,575 Chicago 466,071,756 24,842,589 49,139,310 540,053,655 St. Louis 116,889,310 1,429,733 17,707,739 136,026,782 Minneapolis... 82,807,000 1,363,000 8,727,000 92,897,000 Kansas City... 114,112,450 1,885,386 21,727,697 137,725,533 Dallas 73,472,449 223,442 12,376,024 86,071,915 San Francisco. 175,170,859 51,279,759 14,372,305 240,822,923 Total, December, 1920 1 2,730,360,460 244,001,410 339,140,392 3,313,502,262 Total, November, 1920 2,776,457,064 278,521,360 320,417,341 3,375,395,765 Total, December, 1919 2,157,021,323 549,959,117 327,244,041 3,034,224,481 Earnings from— Annual rates of earnings on- Dis b c i o l u ls n . ted Pur b c i h ll a s s . ed se U c S u n ta r it i t t e e i d s es. Total. Dis b c i o ll u s n . ted Pur b c i h ll a s s . ed se U c S u n ta r i i t t t e e i d s es. Total. Per cent. Per cent. Per cent. Per cent. Boston $954,476 $103,025 $83,085 $1,140,586 6.57 6.09 2.92 5.98 New York 5,035,635 475,154 183,614 5,694,403 6.48 5.96 2.61 6.14 Philadelphia 817,640 69,329 61,405 948,374 5.78 6.06 2.19 5.24 Cleveland 1,062,955 138,533 84,859 1,286,347 6.40 6.02 2.82 5.87 Richmond 566,901 28,076 22,983 617,960 5.90 6.13 2.01 5.52 Atlanta 706,639 16,911 27,970 751,520 6.11 6.85 2.01 5.69 Chicago 2,710,944 128,509 98,715 2,938,168 6.87 6.11 2.37 6.42 St. Louis 640,591 7,835 33,167 681,593 6.47 6.47 2.21 5.92 Minneapolis 469,129 7,044 14,879 491,052 6.67 6.09 2.01 6.22 Kansas City 620,147 11,749 39,044 670,940 6.41 7.04 2.12 5.75 Dallas 369,672 1,154 22,156 392,982 5.92 6.10 2.10 5.39 San Francisco 889,323 262,954 26,611 1,178,888 5.99 6.05 2.19 5.78 Total, December, 1920. 14,844,052 1,250,273 16,792,813 6.42 6.05 2.43 5.98 Total, November, 1920. 14,560,645 1,377,088 16,507,625 6.40 6.03 2.17 5.97 Total, December, 1919. 8,332,733 2,121,005 608,492 11,062,230 4.55 4.54 2.19 4.29 Bills discounted during December, 1920, distributed by classes; also average rates and maturities of bills discounted by each Federal Reserve Bank. Member banks' collateral Federal Reserve Bank. C m p c G u u a e s o r p n t e v o e t d r e m w r s b e n e a y r - - r s' G S o e v cu er re n d m e b n n y o t tes. Otherwise a T a c n r c c a e e d p s e t . - B a a a c n n c c k e e e p s r t . - s' n C . t l o i u e v m p r . e a a s m - l p . s , , e e t o a a r r c c . n g i k d r a i l - Total. m A i a a v t g t y e u e . r r - - A r v a e t r e a . ge obligations. war obliga- secured. tions. Days. Per cent. Boston $16,065,152 $411,074,400 $194,766 $77,220 $121,996,452 $549,407,990 13.12 6.60 New York 48,041,265 2,744,908,699 11,746,606 a 5,808,623 3,407,396,978 6,207,902,171 5.79 6.51 Philadelphia 18,349,302 249,937,452 $50,000 546,764 125,000 118,325,750 387,334,268 13.66 5.67 Cleveland 12,267,935 335,900,565 534,500 1,917,302 1,685,953 61,437,907 413,744,162 11.18 5.87 Richmond 2,445,064 239,567,072 1,104,627 1,336,682 46,778,939 291,232,384 14.74 5.99 Atlanta 8,676,451 125,625,495 992,500 1,409,571 136,265 96,015,673 232,855,955 25.73 6.46 Chicago 18,471,457 280,132,665 7,639,488 3,624,566 1,085,303 245,764,950 556,718,429 39.24 6.75 St. Louis 5,602,909 93,575,866 450,700 1,301,804 460,242 66,908,529 168,300,050 26.88 7.08 Minneapolis 1,332,837 40,848,526 18,772,433 220,401 35,125,749 96,299,946 33.33 6.77 Kansas City 4,034,492 82,496,928 958,000 1,295,200 11,792 50,389,445 139,185,857 39.39 7.15 Dallas 1,775,352 75,595,272 3,094,000 552,529 29,792,543 110,809,696 33.22 5.96 San Francisco 6,274,640 206,594,839 5,042,473 3 2,093,768 *252,"623 307,866,771 23.47 5.98 Total, December, 1920... 143,336,856 4,886,257,779 38,638,721 16,239,959 9,643,021 4,367,541,343 9,461,657,679 11.55 6.48 Total, December, 1919... 156,924,335 6,045,273,038 20,595,436 23,467,322 62,245,690 982,366,770 7,290,872,591 11.52 4.67 1 Includes $64,005 in the foreign trade. 2 Includes $200,000 in dollar exchange. 5 Includes $111,740 in the foreign trade. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

234 FEDERAL RESERVE BULLETIN. FEBRUARY, 1921. Bankers' and trade acceptances in the foreign and domestic trade and dollar exchange bills purchased during December, 1920; also average rates and maturities of total bills purchased by each Federal Reserve Bank. Bankers' acceptances. Trade acceptances. Aver- Average Federal Reserve Bank. Domestic. Foreign. Total. N Domestic. Foreign. Total. ex D b c o h il l a l l s n a . g r e p T u o r t c a h l a b s i e ll d s . tu a m r g i a t e y - . ( b 3 a 6 r s a 5 i - t s e d ) a . y Days. Per cent. Boston $8,034,836 $15,767,915 $23,802,751 $31,000 $23,833,751 27.64 6.09 New York.. 31,805,843 100,188,209 131,994,052 $255,000 $988,380 $1,243,380 8,634,295 141,871,727 30.65 5.99 Philadelphia 1,713,924 7,143,331 8,857,255 800,000 9,657,255 59.85 6.04 Cleveland 3,635,709 12,442,925 16,078,634 63,756 63,756 220,000 16,362,390 48.50 6.03 Richmond- 301,900 3,495,581 3,797,481 3,797,481 47.46 6.08 Atlanta 1,634,922 1,044,778 2,679,700 2,679,700 59.94 7.10 Chicago 7,872,334 16,258,617 24,130,951 666,000 24,796,951 57.46 6.17 St. Louis .. 2,066,252 2 066,252 250,000 2,316,252 27.63 6.26 MinneaBolis 205,033 465,126 670,159 670,159 67.84 6.12 Kansas City 219,200 1,754,250 1,973,450 1,973,450 53.88 7.10 Dallas 71,673 71,673 71,673 64.71 6.08 San Francisco 5,516,793 17,814,663 23,331,456 68,832 68,832 638,474 24,038,762 55.04 6.06 Total, December, 1920. 63,006,746 176,447,068 239,453,814 255,000 1,120, 968 1,375,968 11,239,769 252,069,551 38.43 6.08 Total, December, 1919. 86,378,589 306,555,328 392,933,917 2,007,085 3,073,839 5,080,924 2,693,252 400,708,093 57.11 4.84 Amount of bills discounted and acceptances bought by each Federal Reserve Bank during three months ending December 31, 1920, with totals for 1919, distributed by maturities. 15-day maturities. 30-day maturities. 60-day maturities. Federal Reserve Bank. Discounts. Acceptances. Total Discounts. Acceptances. Total. Discounts. Acceptances. Total Boston $1,123,511,447 $42,435,193 $1,165,946,640 $31,897,802 $15,386,218 $47,284,020 1109,791,735 $16,667,920 $126,459,655 New York 15,710,625,756 251,985,098 15,962,610,854 150,770,930 67,748,879 218,519,809 113,250,171 73,063,384 186,313,555 Philadelphia... 1,028,423,549 1,110,468 1,029,534,017 19,290,218 1,647,484 20,937,702 20,447,133 4,267,389 24,714,522 Cleveland 708,675,734 6,489,080 715,164,814 16,815,381 7,476,369 24,291,750 30,540,780 27,380,886 57,921,666 Richmond 651,458,583 710,699 652,167,282 25,053,026 % 036,978 30,090,004 48,163,106 2,569,833 50,732,939 Atlanta 549,815,758 193,010 550,008,768 21,038,141 2,894,655 23,932,796 41,852,756 1,587,591 43,440,348 Chicago 856,458,940 19,956,122 876,415,062 87,863,982 7,813,596 95,677,578 182,064,689 23,135,557 205,200,246 St. Louis 377,041,434 3,102,149 380,143,583 27,553,468 23,906 27,577,374 73,372,474 584,022 73,956,496 Minneapolis 138,992,296 138,992,296 15,919,739 72,500 15,992,239 40,993,771 230,000 41,223,771 Kansas City.... 275,264,980 155,625 275,420,605 19,281,664 553,095 19,834,759 44,480,588 3,385,834 47,866,422 Dallas 257,218,549 75,000 257,293,549 10,222,048 760,000 10,982,048 27,764,070 776,684 28,540,754 San Francisco.. 577231,654 4,252,020 581,483,674 24,250,163 15,500,822 39,750,985 50,421,311 38,870,201 89,291,512 Total 3 months ending— | Dec. 31,1920.. 122,254,716,680 330,464,464 22,585,181,144 449,956,562 124,914,502 574,871,064 783,142,584 192,519,301 975,661,885 Dec. 31,1919.. 21,366,630,682 220,512,353 21,587,143,035 213,078,261 135,289,985 348,368,246 410,612,596 253,418,700 664,031,290 90-day maturities. Over 90-day maturities. Total. Federal Reserve Bank. ^Discounts. Accept- Total. Discounts. Accept- Total. Discounts. A a c n c c e e p s t . - Total. Boston $77,728,194 $5,613,055 $83,341,249 $500 $500 $1,342,929,678 $80,102,386 $1,423,032,064 New York 235,911,783 37,357,355 273,269,138 5,840 5,840 16,210,564,480 430,154,716 16,640,719,196 Philadelphia 48,726,915 14,139,762 62,866,677 30,841 30,841 1,116,918,656 21,165,103 1,138,083,759 Cleveland 60,152,528 12,687,110 72,839,638 449,002 449,002 816,633,425 54,033,445 870,666,870 Richmond 47,729,435 2,612,647 50,342,082 959,722 959,722 773,361,872 10,930,157 784,292,029 Atlanta 81,178,652 2,674,941 83,853,593 5,150,939 5,150,939 699,036,246 7,350,197 706,386,443 Chicago 407,639,833 15,363,763 423,003,596 27,988,469 27,988,469 1,562,015,913 66,269,038 1,628,284,951 St. Louis 73,977,142 1,313,198 75,290.340 2,697,043 2,697,043 554,641,561 5,023,275 559,664,836 Minneapolis 59,883,258 1,388,332 61,271,590 6,230,044 6,230,044 262,019,108 1,690,832 263,709,940 Kansas City 69,180,134 927,119 70,107,253 35,519,848 35,519,848 443,727,214 5,021,673 448,748,887 Dallas 38,231,558 149,989 38,381,547 14,978,431 14,978,431 348,414,656 1,761,673 350,176,329 San Francisco 98,710,110 23,648,807 122,358,917 12,170,477 12,170,477 762,783,715 82,271,850 845,055,565 Total 3 months ending- Dec. 31,1920...1,299,049,542 117,876,078 1,416,925,620 106,181,156 106,181,156 24,893,046,524 765,774,345 25,658,820,869 Dec. 31,1919... 741,502,975 467,420,189 1,208,923,164 33,864,421 24,083 33,888,504 22,765,688,935 1,076,665,310 23,842,354,245 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

FEBRUARY, 1921. FEDERAL RESERVE BULLETIN. 235 Rediscounts and sales of discounted and purchased paper between Federal Reserve Banks from Oct. 1 to Dec. 31, 1920. [In thousands of dollars.] Rediscounted or sold by Federal Reserve Bank of— Discounted or purchased by Federal Re- New Fork. ]Richmond Atlanta. Chicago. serve Bank of— October. No b v e e r. m- October. No b v e e r. m- De b c e e r m . - October. No b v e e r. m- De b c e e r. m- October. De b c e e r. m- Boston 40,074 22,017 50,000 40,000 40,000 1,008 6,000 XTovir "VrwrV Philadelphia 15,072 15,012 15,000 800 13,100 Cleveland 20 000 30 000 38 488 51 239 3* 152 10 000 San Francisco 6,917 Total 75,146 73, 946 65,000 40,000 40,000 38,488 53, 047 54,252 10,000 9 Purchased bills 25,146 18,946 9 Discounted bills 50,000 55,000 65,000 40,000 40,000 38,488 53,047 54,252 10,000 Rediscounted or sold by Federal Reserve Bank of— Discounted or purchased by St. Louis. Minneapolis. Kansas City. Dallas. Federal Reserve Bank of— October. No b v e e r. m- October. No b v e e r. m- De b c e e r m . - October. No b v e e r. m- De b c e e r. m- October. No b v e e r. m- D b ec e e r. m- Boston 22,997 24,000 13,000 36,036 14,874 5,009 7,500 Philadelphia 8,000 4,000 2,000 2,666 11,000 23 102 2 500 Cleveland 14,500 12, 500 16,000 16,000 35, 580 42,141 38,079 66,500 50,500 64,000 San Francisco Total 45,497 4,000 38,500 31,000 27,000 71,616 57,015 66,190 74,000 53,000 64,000 Purchased bills Discounted bills 45,497 4,000 38, 500 31,000 27,000 71,616 57,015 66,190 74,000 53,000 64,000 Rediscounted or sold by all Federal Reserve Banks. Discounted or purchased by Federal Reserve Bank During October, November, and December, 1920. Total during year 1920. of October. No b v e e r. m- D b ec e e r. m- Total. ch P a u s r e - d co D u i n s t - ed Total. ch P a u s r e - d co D un is t - ed bills. bills. bills. bills. Boston 180,607 90,899 51,009 322, 515 22,091 300,424 1,000,557 30,673 969,884 490,648 11,067 479,581 Philadelphia 40,072 24,312 47,202 111,586 15,084 96, 502 179,728 35,149 144, 579 Cleveland 197, 568 189, .880 153,231 540,679 540,679 1,478,882 72, 710 1,406,172 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 143,000 143 000 San Francisco 6,917 6,917 6,917 71,222 47, 722 23,500 Total 418,247 312,008 251,451 981, 706 3,672, 792 Purchased bills 25,146 18,946 n 44,101 212 547 Discounted bills 393,101 293,062 251,442 "*937,"665* 3,460,245 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

236 FEDERAL RESERVE BULLETIN. FEBRUARY, 1921. Discounted bills, including member banks' collateral notes, held by each Federal Reserve Bank on the last Thursday in December, 1920, distributed by classes. [In thousands of dollars.] Member banks' collat- Custom- eral notes. ers' paper All other Agricul- Live- secured: by Trade Bankers' (commer- Federal Reserve Bank. tural stock Govern- Secured by accept- accept- cial paper Total. paper. paper. m o e b n l t i g w a- ar m G e o n v t e w rn a - r Otherwise ances. ances. n. e. s.). tions. obliga- secured. tions. Boston 23,996 54,745 128 54 99,620 178,543 New York 257 123,662 322,264 1,800 11,411 444,845 904,239 Philadelphia.. 388 39,597 76,080 50 229 150 57,069 173,563 Cleveland 735 158 8,094 87,330 242 3,522 1,508 97,744 199,333 Richmond 9,164 87 5,414 37,874 935 2,062 57,350 112,886 Atlanta 15,497 1,335 13,714 48,258 294 2,256 228 52,567 134,149 Chicago 52,695 24,998 117,625 4,704 4,534 270,377 475,869 St. Louis 3,259 1,637 7,517 37,190 45 1,518 62,169 114,218 Minneapolis... 14,527 39,370 5,709 12,297 8,272 217 1,277 81,669 Kansas City... 14,285 32,555 7,808 22,204 749 2,109 29 31,355 111,094 Dallas 14,632 16,619 3,029 12,008 764 268 59 21,506 San Francisco.. 17,706 12,034 41,635 1,852 2,784 1,960 78,727 164,686 Total, December, 1920 143,145 103,795 271,526 869,510 17,907 21,427 17,218 1,274,606 2,719,134 Total, December, 1919 24,825 26,243 352,589 1,157,765 8,255 33,697 15,479 576,025 2,194,878 Acceptances purchased by each Federal Reserve Bank and held on Dec. SI, 1920, distributed by classes of accepting institutions. [In thousands of dollars.] Bankers' acceptances. Trade acceptances. Federal Reserve Bank. M ba em nk b s e . r m p N t c a e r o n m u o 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 o a b f r g a a a f e n o n n n r c k d c e h i s i e g e . s s n Total. Domestic. Foreign. Total. G to r t a a n l d . Boston.. . . .. 17,736 1,512 453 977 20,678 20,678 New York 67,622 1,538 17,943 12,288 13,065 112,456 505 779 1,284 113,740 Philadelphia 8,320 2,406 1,572 391 12,689 12,689 Cleveland 14, 602 25 4,694 3,551 4,275 27,147 64 64 27,211 Richmond 5,048 5,048 5,048 Atlanta . . 3,557 14 3,571 3,571 Chicago 22,488 1,614 989 650 25,741 25, 741 St Louis 814 323 62 1,199 1,199 Minneapolis.. . . . 1,113 50 150 1,313 1,313 Kansas City 2,171 2,171 2,171 Dallas. 175 72 247 247 San Francisco 25, 741 63 8,192 5,990 6,632 46,618 180 180 46,798 Total, Dec. 31,1920.. 169,387 1,626 i 36,748 24,905 26,212 258,878 505 1,023 1,528 260,406 Total Nov. 30 1920 153,302 1,167 2 32,335 26,010 25,702 23$, 516 515 1,591 2,106 240,622 Total, Dec. 31,1919.. 405,339 5,121 60,213 55,537 40,159 566,369 2,540 5,194 7,734 574,103 Total Dec 31 1918 238,257 2,745 10,442 20,385 13,444 285,273 2,536 4,388 6,924 292,197 1 Includes $2,782,000 acceptances of corporations organized under Edge Act. 2 Includes $2,324,000 acceptances of corporations organized under Edge Act. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

FEBRUARY, 1921. FEDERAL BESERVE BULLETIN. 237 CHANGES IN CONDITION OF FEDERAL RESERVE BANKS. For the period between December 30, 1920, tions, show an increase of 33.5 millions. Flucand January 28 of the present year, the Federal tuations in the holdings of paper secured by Reserve Banks report a decrease of 92.2 millions Government obligations were in close accord in their holdings of paper secured by United with changes in the totals of discounted paper States Government obligations and of 262.6 held, and accordingly the ratio of war loan millions in their total holdings of discounted paper to total discounts on hand during the bills. Loan liquidation was continuous except period varied only between 42 and 43 per cent. for the week ending January 21, when in con- In the following exhibit is given a summary of nection with the flotation of about 310 millions the weekly changes in the principal asset and of Treasury certificates, member banks' total liability items of the Federal Reserve Banks for borrowings from the Federal Reserve Banks, the four weeks under review. largely on United States Government obliga- Principal asset and liability items of the twelve Federal Reserve Banks combined on Thursday, Dec. 80, and on Fridays, Jan. 7 to Jan. 28, 1921. [In millions of dollars.] Dec. 30. Jan. 7. Jan. 14. Jan. 21. Jan. 28. Reserves: Total 2,249.2 2,276.9 2,288. 5 2,301.3 2,320.0 Gold 2,059.3 2,080.3 2,085.5 2,095.8 2,106.1 Bills discounted: Total 2,719.1 2,607.3 2,449. 5 2,483. 0 2,458.5 Secured by Government war obligations. 1,141.0 1,104. 5 1,024.6 1,056.1 1,048.8 All other 1,578.1 1,502.8 1,424.9 1,426.9 1,407.7 Bills bought in open market 255.7 234. 8 203.4 168.0 165.1 Certificates of indebtedness 261.3 261.8 289.7 264.6 261.5 Total earning assets 3,263.0 3,130. 0 2,968.5 2,941.5 2,908.8 Government deposits 27.6 25.6 9.0 32.6 52.1 Members' reserve deposits 1,749.0 1,795.3 1,756.3 1,765. 2 1,731.8 Net deposits 1,604.2 1,634.5 1,595. 4 1,628.5 1,643.2 Federal Reserve notes in circulation 3,344.7 3,270.0 3,159. 5 3,115.3 3,090.7 Federal Reserve Bank notes in circulation 217.0 213.6 213.2 207.4 202.2 Reserve percentages 45.4 46.4 48.1 48.5 49.0 Of the total holdings of paper secured by to 165.1 millions, the open-market demand for Government obligations a slightly increasing this class of paper apparently being sufficient share (58 per cent on Jan. 28 as against 57 to fully absorb the entire supply of new bills per cent on Dec. 30, 1920) was composed offered, with the consequence that Federal of paper secured directly and indirectly by Reserve Bank acceptance holdings, not being United States bonds (largely Liberty bonds), replenished through new purchases, have been though the January 28 holdings of this class shrinking as the paper on hand reached matuof paper, 607.1 millions, were 41.2 millions less rity. Treasury certificates on hand fluctuated than at the close of the past year. Paper secured between 261.3 on December 30 and 289.7 milby Victory notes constituted between 26 and lions on January 14, when the Federal Reserve 28 per cent of the total of war paper held, the Banks of New York, Philadelphia, Richmond, January 28 holdings of 284 millions showing a and Chicago held a total of 28 millions of special decrease of 20.7 millions from the December 30, certificates to secure advances to the Govern- 1920, total. The largest fluctuations, viz, ment pending the collection of funds from between 188 millions on December 30 and 138.1 depositary institutions. millions on January 14, or between 13 and 16 Continued reduction in the volume of interper cent of the total discounts held, are shown bank discounting is noted, the total of paper for paper secured by Treasury certificates, the held under discount for other Federal Reserve January 28 holdings marking a decline of 30.3 Banks by the Boston, Philadelphia, and Clevemillions from the high figure shown four weeks land banks showing a decline from 115.3 to before. About 60 per cent of the total dis- about 41 millions. On January 28 the number counts held was composed of paper maturing of rediscounting banks had been reduced to within 15 days from the time of report on each three, viz, the Atlanta, Dallas, and Minneapolis Friday, and the shares of the longer maturities banks, those of Richmond and Kansas City likewise show but small changes during the having redeemed during that week all their period. outstanding rediscounted paper. On the other Holdings of acceptances purchased in open hand, the New York bank during the latter part market show a continuous decline from 255.7 of the period considerably increased its sales Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

238 FEDERAL, RESERVE BULLETIN. FEBRUARY, 1921. of bank acceptances to other Federal Reserve posits—1,643.2 millions on January 28—*coincid- Banks, the total amount of such bills held on ing in time with the low figure for reserve de- January 28 by the Boston, Cleveland, and San posits. Francisco banks being 51.8 millions, compared Federal Reserve note circulation shows a with 6.9 and 2.3 millions held by the San Fran- continuous decline of 254 millions for the pecisco bank on December 30, 1920, and on Janu- riod, as against a net reduction of 148 millions ary 14, respectively. Aggregate contingent for the corresponding period in 1920 and of liabilities on account of bank acceptances held 196.9 millions in 1919. Since December 30, for account of foreign correspondents show an 1920, there has also taken place a decrease by increase from 16.2 to 18.2 millions. 14.8 millions in Federal Reserve Bank note Government deposits fluctuated between circulation. Gold reserves, as the result mainly about 9 millions on January 14 and 52.1 mil- of purchases of imported gold by the New York lions two weeks later, while members7 reserve Reserve Bank, show a continuous increase durdeposits varied between a high of 1,795.3 mil- ing the period from 2,059.3 to 2,106.1 millions, lions on January 7 and a low of 1,731.8 millions while total cash reserves show a much larger on the last Friday of that month. Substantial increase from 2,249.2 to about 2,320 millions. fluctuations are also shown in the volume of Owing to these substantial gains in reserves the "float" carried by the Federal Reserve and to the simultaneous considerable reduction Banks. As a result, weekly changes in net de- in note liabilities, the banks' reserve ratio shows posits are far from coincident with those noted a continuous rise from 45.4 to 49 per cent. for reserve deposits, the high figure for net de- Resources and liabilities of each Federal Reserve Bank at close of business on Fridays, Jan. 7 to Jan. 28, inclusive. RESOURCES. [In thousands of dollars.] Boston. Y N o e r w k. d P e h lp il h a i - a .! C la le n v d e . - m R o ic n h d - . Atlanta. Chicago. Lo S u t. is. M ap i o n l n is e . - K C a i n ty sa . s Dallas. F c S i r s a a c n n o - . Total. Gold and gold cer- I tificates: Jan. 7 11,992 133,794 6,063 10,918 5,789 8,823 28,780 5,179 9,152 4,045 7,526 18,074 250,135 Jan. 14 11,478 136,019 5,417 10,213 5,012 8,628 27,838 4,810 8,941 3,629 7,251 18,129 247,365 Jan. 21 11,629 108,697 5,435 10,261 5,250 8,683 28,049 4,925 8,985 3,668 6,643 18,014 220,239 Jan. 28 10,714 96,353 4,706 8,145 5,083 7,363 27,150 4,514 8,766 3,259 6,114 17,702 G old settlement fund- Federal Reserve Board: Jan. 7 50,519 27,622 58,450 78,390 24,270 5,441 53,928 24,512 9,321 I 25,911 2,710 44,570 405,644 Jan. 14 57,551 17,678 40,091 98,839 21,976 3,216 61,616 23,698 8,561 23,902 3,777 32,268 393,173 Jan. 21 45,412 20,077 56,906 109,220 27,628 3,485 63,821 21,126 8,105 24,552 3,878 37,115 421,325 Jan. 28 39,627 45,025 47,523 106,918 26,713 6,751 88,644 25,232 8,579 22,301 6,759 37,451 461,523 Gold with foreign agencies: Jan. 7 241 1,211 264 270 162 119 393 155 89 ! 158 152 3,300 Jan. 14 241 1,211 264 270 162 119 393 155 158 152 3,300 Jan. 21 241 1,211 264 270 162 119 393 155 158 86 152 3,300 Jan. 28 241 1,211 264 270 162 119 393 155 158 152 3,300 Gold with Federal Reserve agents: Jan. 7 131,531 238,868 136,214 177,348 51,600 62,132 205,864 53,841 25,115 40,189 25,714 116,346 1,264,762 Jan. 14 131,896 238,083 143,516 176,964 47,885 60,419 192,351 53,619 25,362 40.395 23,951 131,137 1,265,558 Jan. 21 151,793 223,490 141,181 175,827 44,379 59,474 211,300 52,370 26,145 39,058 21,752 139,535 1,286,304 Jan. 28 161,009 208,046 150,502 182,504 48,791 60,«77 211,192 53,617 25,441 37,834 19,703 128,934 1,28S, 450 Gold redemption fund: Jan. 7 21,635 39,000 10,128 14,972 8,222 8,211 24,689 5,629 3,865 5,438 4,954 156,441 Jan. 14 20,655 39,000 13,030 13,878 10,994 8,952 36,801 6,493 3,649 4,866 6,036 11,704 176,058 Jan. 21 19,923 41,000 10,757 13,224 13,399 8,841 26,247 6,984 2,887 4,608 6,900 9,831 164,601 Jan. 28 20,034 41,000 8,696 11,097 7,830 24,418 5,307 4,254 8,620 11,710 152,995 Total gold reserves: Jan. 7 215,918 440,495 211,119 281,898 90,043 84,726 313,654 89,316 47,542 75,741 40,990 188,840 2,080,282 Jan. 14 221,821 431,971 202,318 300,164 86,029 81,334 318,999 88,775 46,602 72,950 41,101 193,390 12,085,454 Jan. 21 228,998 394,475 214,543 308,802 90,818 80,602 329,810 85,560 46,211 72,044 39,259 204,647 2,095,769 Jan. 28 231,625 391,635 211,691 308,934 88,579 81,809 351,797 88,825 46,205 67,806 41,282 195,949 2,106,137 Legal-tender notes, silver, etc.: Jan. 7 13,129 147,164 1,089 2,552 271 2,974 14,856 5,971 282 2,352 4,679 1,247 I 196,566 Jan. 14 14,692 150,128 878 2,805 126 3,249 15,927 6,312 300 2,348 4,932 1,387 203,084 Jan. 21 13,889 151,623 705 2,767 1,218 3,858 15,640 6,255 518 2,380 5,148 1,461 205,462 Jan. 28 12,738 153,304 1,125 2,593 6,882 4,171 15,790 6,226 975 2,643 5,567 1,823 i 213,837 Total reserves: Jan. 7 229,047 i587,659 212,208 284,450 90,314 87,700 328,510 95,287 47,824 78,093 45,669 190,087 12,276,848 Jan. 14 236,513 582,099 203,196 302,969 86,155 84,583 334,926 95,087 46,902 75,298 46,033 194,777 2,288,538 Jan. 21 242,887 |546,098 215,248 311,569 92,036 84,460 345,450 91,815 46,729 74,424 44,407 206,108 2,301,231 Jan. 28 244,363 544,939 212,816 311,527 95,461 85,980 367,587 95,051 47,180 70,449 46,849 197,772 2,319,974 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

FEBRUARY, 1921. FEDERAL RESERVE BULLETIN. 239 Resources and liabilities of each Federal Reserve Bank at close of business on Fridays, Jan. 7 to Jan. 28, inclusive—Con. RESOURCES—Continued, fin thousands of dollars.] I Boston. I Y N o e r w k. d P el h p i h la i - a. C la le n v d e . - m R o ic n h d - . Atlanta.) Chicago.j Dallas. F ci r s a c n o - . Total. Bills discounted:1 Secured by United | States Govern- ! ment obligations— Jan.7 68,746 433,962 ' 111,684 93,703 44,681 ' 59,904 135,868 39,597 15,766 33,919 :13,364 53,339 1,104,536 Jan. 14 61,996 393,522 | 110,233 71,535 45,002 | 58,468 133,550 37,256 16,600 35,151 i 13,512 47,782 1,024,607 Jan. 21 70,474 409,163 { 108,721 67,606 46,967 I 58,301 138,530 40,600 18,585 37,572 15,964 43,634 1,056,117 Jan. 28 , 56,135 414,012 ; 109,674 70,319 50,282 i 58,011 138,589 40,315 20,684 35,830 13,531 41,386 1,048,768 All other- Jan. 7 , 88,519 439,305 43,939 103,742 67,801 j 70,384 301,619 66,340 66,233 79,268 57,341 118,322 1,502,813 Jan. 14 1 81,437 413,052 43,146 101,682 65,288 69,168 283,292 64,397 62,508 i 73,463 56,217 111,283' 1,424,933 Jan.21 "~ 714 469,591 33,173 93,659 63,620 I 69,320 271,972 63,720 62,065 73,622 54,065 108,391 11,426,912 Jan.28 1 68,803 | 494,013 39,666 72,672 61,891 , 67,816 251,077 58,674 59,454 72,:— 55,413 104,465 11,407,707 Bills bought in open I market:2 j Jan. 7 j 16,615 102,903 11,997 24,683 5,103 ! 3,758 24,353 606 1,449 2,151 147 40,994 234,759 ran.l4 • 14,514 87,174 11,155 22,849 5,245 ! 3,630 21,654 585 1,448 I 1,503 147 33,508 203,412 Jan. 21 j 17,746 "6"5',"3"67- I 8,689 20,143 4,859 i 3,304 13,470 948 276 I 1,888 122 31,138 167,950 Jan. 28 j 21,881 28,436 9,883 43,362 4,955 i 3,241 11,083 1,014 51 1,357 97 39,698 165,058 United States Gov- i eminent bonds: i Jan.7 539 1,257 1,434 834 1,233 : 114 4,490 1,153 i 115 ! 8,867 3,979 2,087 26,102 Jan.14 ; 539 1,257 1,434 i 834 1,233 ; 114 4,490 1,153 ! 116 ! 8,867 3,979 1,872 25,888 Jan. 21 550 | 1,257 1,434 , 834 1,233 114 4,490 1,153 i 116 8,867 3,979 1,872 25,899 Jan. 28 550 ! 1,257 1,434 834 1,233 114 4,490 1,153 I 116 8; 867 3,979 1,822 25,849 United States Victory i notes: Jan.7 19 Jan. l'v 19 Jan.21 19 Jan-28 19 United States certificates of indebted- ! I ness: Jan.7 ....J 21,537 I 59,671 30,366 23,799 12,262 ; 16,665 39,612 15,958 8,480 12,820 8,300 12,315 I 261,785 Jan. 14 ; 21,451 74,756 33,339 23,799 17,262 I 16,665 44,643 15,968 8,480 12,820 8,300 12,202 289,685 .lan. 21 21,505 62,118 30,878 23,799 12,262 16,665 39,668 15,992 8,480 12,821 8,300 12,143 264,631 Jan. 28 ; 21,440 i 59,422 30,485 23,799 12,262 ; 16,665 39,704 15,964 8,480 12,820 , 12,111 261,452 Total earning assets: j Jan.7 | 195,961 1,037,098 199,420 246,771 131,083 | 150,828 505,942 123,654 92,043 137,026 I 83,131 227,057 3,130,014 Jan. 14 | 179,942 969,761 , 199 307 220,709 134,030 i 148,018 487,629 119,359 89,152 131,805 i 82,155 206,647 2,968,544 Jan. 21 ; 173,994 1,007,496 182,895 i 206,051 128,941 ! 147,707 468,130 122,413 89,522 134,771 ! 82,430 197,178 2,941,528 jan. 28 ; 168,814 998,040 191,142 \ 210,996 130,623 145,850 444,943 117,120 88,785 131,738 81,320 199,482 2,908,853 Bank premises: : Jan. 7 ! 2,790 4,092 500 1,527 1,296 541 2;534 542 590 1,047 1,647 253 17,359 Jan. 14 i 2,899 4,092 500 1,542 1,397 541 2534 542 590 1,282 1,647 17,955 Jan. 21 1 2,949 4,231 500 i 1,542 1,397 541 2,534 542 590 1,282 1,718 18,215 Jan. 28 j 2,956 4,237 500 I 1,542 1,397 541 2,534 542 590 1,282 1,718 389 18,228 Uncollected items and | other deductions from gross deposits: Jan.7 J 58,975 141,188 68,565 66,500 67,264 | 36,474 91,742 41115 20,662 57,304 | 47,131 47,880 744,800 Jan. 14 1 53,083 151,623 i 64,963 67,607 58,248 i 34,836 82,420 37,'560 18,524 53,324 I 39,657 44,920 706,765 Jan. 21 ! 41,344 151 582 : 62^397 | 60,643 58,677 ; 33,217 77,842 34,442 16,338 47,035 i 41,925 41,699 667,141 Jan. 28 | 36,974 134,242 | 55,890 | 53,350 50,276 ! 28,558 70,605 31,057 15,969 43,434 : 35,703 38,542 594,600 5 per cent redemption | fund against Federal j Reserve Bank notes:; Jan. 7 I 1,072 2,774 , 1,300 1,239 601 J 1,709 623 336 916 586 665 12,389 Jan. 14 j 1,072 2,780 : 1,300 1,239 601 520 j 1,913 623 584 916 586 665 12,799 Jan. 21 | 1,072 2,723 ' 1,300 1,239 601 | 596 1,963 623 396 916 586 665 12,680 Jan. 28 | 1,072 2,708 1,300 1,239 I 601 | 564 2,089 523 483 916 665 12,746 All other resources: ! Jan. 7 ! 306 1,724 76 102 I '221 | 296 480 367 131 216 380 4,998 Jan. 14 ! 355 1,894 94 106 421 186 618 383 138 250 1,173 494 6,112 Jan. 21 j 427 2,121 124 113 i 319 472 711 389 112 280 634 482 6,184 Jan. 28 ' 2,144 141 127 I 680 217 842 442 | 120 277 6,937 Total resources: j Jan. 7 | 488,151 11,774,535 482,069 600,589 290,779 276,407 930,917 261,588 i 161,586 274,602 178,863 466,322 6,186,408 Jan. 14 !473,864 |1,712,249; 469,360 594,172 280,852 268,714 910,040 253,554 155,890 262,875 171,251 447,892 6,000,713 Jan. 21 | 462,673 1,714,251 ' 462,464 j 581,157 281,971 266,993 896,630 250,224 153,687 258,708 171,700 446,521 5,946,979 Jan. 28 !j 454,647 1,686,310 461,789 I 578,781 279,038 261,710 j 888,600 244,735 153,127 248,096 167,162 437,343 15,861,338 i Includes bills discounted for other I Federal Reserve j Banks: Jan.7 11,873 12,100 72,535 . 96,508 Jan. 14 i 10,014 10,236 57,487 . 77,737 Jan. 21 ! 9,844 5,991 45,764 !. 61,599 Jan. 28 1 4,275 4,946 31,917 i. 41,138 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

240 FEDERAL RESERVE BULLETIN. FEBRUARY, 1921. Resources and liabilities of each Federal Reserve Bank at close of business on Fridays, Jan. 7 to Jan. 28, inclusive—Con. RESOURCE S—Continued. [In thousands of dollars.] Boston. Y N o e r w k. I id P el h p i h la i - a . j j C la le n v d e . - m R o ic n h d - . Atlanta.; Chicago.j St. M ap i o n l n i e s. - K C a i n ty sa . s ! ; Dallas. i F c S i r s a a c n n o - . Total 2 Includes bankers' acceptances bought from other Federal Reserve Banks without their indorsement: Jan. 7 4,273 4,273 Jan. 14 2.263 2,263 Jan. 21 ! 5,049 6'698 11,747 Jan. 28 j 10,672 25,093 16,063 51,82S LIABILITIES. Capital paid in: Jan.7 7,723 28,376 8,485 10,703 5,269 4,016 13,913 4, 366 3,461 4,457 4,098 6,941 99,808 Jan.14 7,723 26,339 8,494 10,703 5,272 4,034 13,917 4,367 3,461 4,457 4,099 6,949 99,815 Jan. 21 7,739 26,346 8,494 10,667 5,272 4,028 14,028 4,414 3,457 4,452 4.103 6,962 99,962 Jan. 28 7,743 26,345 8,494 10,757 5,278 4,036 14,032 4,417 3,479 4,456 \, 127 6,983 100,147 Surplus fund: Jan.7 15,711 58,414 17,010 20,305 10,561 8,343 28,980 8,346 6,980 9,159 6,033 14,194 202,036 Jan. 14 15,711 56,414 17,010 20,305 10,561 8,343 28,980 8,346 6,980 9,159 6,033 14,194 202,036 Jan. 21 15,711 56,414 17,010 20,305 10,561 8,343 28,980 8,346 6,980 9,159 6,033 14,194 202,036 Jan. 28 15,711 56,414 17,010 20,305 10,561 8,343 28,980 8,346 6,980 9,159 0,033 14,194 202,036 Government deposits: Jan. 7 1,244 10,217 1,401 2,053 1,141 1,275 286 1,660 1,496 1,464 1,574 1,771 25,592 Jan.14 '584 417 1,031 603 341 158 519 1,714 251 1,148 864 1,340 8,970 Jan. 21 736 12,343 1,527 2,330 2,557 961 2 961 1,855 1,289 2,055 1,718 2,271 32,603 Jan. 28 1,842 19,932 3,964 3,731 4,504 1,050 4,998 2,628 2,213 2, 089 1,743 3,466 52,138 Due to members—reserve account: Jan.7 117,890 695,942 112,334 148,106 59,306 49,916 249,989 67,144 45,312 83,097 48,550 119,757 ,795,343 J J a a n n. . 1 2 4 1 1 11 1 6 5 , , 7 3 6 8 6 5 6 6 7 8 7 1 , , 4 5 0 4 2 2 1 1 0 0 5 3 , , 7 7 1 9 9 9 1 1 5 5 0 2 , , 1 6 3 5 5 0 5 5 9 S , , 2 8 0 2 2 4 4 4 8 7 , ,7 2 5 7 9 8 2 2 5 4 2 5 , , 2 7 5 0 1 4 6 6 5 6 , , 0 0 4 3 3 8 4 43 3 , , 9 8 7 3 1 4 7 7 8 8 , , 6 9 0 4 9 4 4 4 8 8 , , 3 5 9 2 6 5 1 1 1 1 3 8 , , 9 7 9 8 1 3 r , 7 7 5 6 6 5 , , 3 2 2 2 5 5 Jan. 28 111,380 662,083 106,844 150,717 58,330 46,058 247,518 64,871 44,092 74,376 50,178 115,376 ,731,823 Deferred availability items: Jan.7 42,056 90,858 45,058 54,224 47,998 23,557 56,720 37,516 16,997 50,122 33,977 33,473 532,556 Jan.14 40,302 92,947 47,324 54,128 42,406 21,627 52,931 33,750 15,821 48,036 28, .184 33,996 509,452 Jan. 21 33,649 86,685 42,206 48,989 40,694 20,246 49,604 32,717 14,072 42,859 28,416 32,479 472,616 Jan.28 32,028 75,631 39,540 47,105 37,409 19,406 45,634 28, 892 13,748 39,298 24,415 26.700 429,800 Other depostis, including foreign Government credits: Jan.7 610 11,763 1,365 472 259 371 3,683 614 5S6 674 319 5,131 25,847 Jan. 14 655 12,803 1,287 491 250 302 1,913 725 540 860 322 7,316 27,464 Jan. 21 557 12,160 1,127 545 403 273 ' 2,071 613 392 388 364 6,311 25,204 Jan. 28 566 12,029 670 522 265 293 1,605 664 474 351 266 6,349 24,054 Total gross deposits: Jan. 7 161,800 808,780 160,158 204,865 108,704 75,119 310,678 106,934 64,391 135,357 82,420 160,132 2,379,338 Jan. 14 156,928 783,569 153,441 205,357 102,199 70,365 307,614 101,232 60,446 126,653 77,766 156,643 2,302,211 Jan. 21 151,708 792,730 150,579 204,514 102,478 69,239 300,340 101,223 59,724 124,243 79,023 159,844 2,295,648 Jan. 28 145,816 769,675 151,018 202,075 100,508 66,807 299,755 97,053 60,527 116,094 76,602 151,891 2,237,821 Federal Reserve nates in actual circulation: Jan.7 281,372 831,625 273,005 340,666 154,158 173,018 535,075 131,697 78,284 109,720 78,280 275,123 3,270,023 Jan. 14 272,193 800,121 288,856 333,859 150,865 16% 913 517,474 129,513 76,454 106,912 75,263 260,068 3,159,491 Jan. 21 266,770 793,026 263,141 322,181 151,774 169,209 512,012 126,408 75,020 105,388 74,397 255,304 3,115,290 Jan. 28 265, 277 787,746 262, 522 322, 562 151,371 166,570 508,053 125,448 73,717 103,288 72,363 253,831 3,090,748 Federal Reserve Bank nates in circulation— Net liability: Jan. 7...'. 20,333 36,831 22,457 22,787 11,408 15,081 38,314 9,319 7,613 14,050 0,969 8,390 213,552 Jan. 14 20,030 38,180 22,348 22,538 11,211 15,077 37,901 9,098 7,639 13,807 0,945 8,403 213,177 Jan. 21 19,361 36,965 21,901 21,936 11,023 15,024 36,141 8, 696 7,478 13,495 6,921 8,424 207,365 Jan. 28 18,760 38,630 21,257 21,353 10,388 14,697 35,103 8,325 7,359 13,136 6,765 8,503 202,276 All other liabilities: Jan. 7 1,212 6,509 954 1,263 679 830 3,957 926 857 1,859 1,063 1,542 21,651 Jan. 14 1,281 7,626 1,211 1,410 744 982 4,154 998 910 1,887 1,145 1,635 23,683 Jan. 21 1,384 8,770 1,339 1,554 863 1,150 4,529 1,077 1,028 1,968 1,223 1,793 26,678 Jan. 28 1,340 9,500 1,488 1,729 932 1,257 4, 677 1,146 1,065 1,963 1,272 1,941 28,310 Total liabilities: Jan.7 488,151 1,774,535 482,069 600,589 290,779 276,407 930,917 261,588 161,586 274,,602 178,863 466,322 ,186,408 Jan.14 473,864 1,71%249 469,360 594,172 280,852 268,714 910,040 253,554 155,890 262,,875 171,251 447,892 6,000, 713 Jan. 21 462,673 1,714,251 462,464 581,157 281,971 266,993 896,630 250,224 153,687 258.,708 """ TOO446,521 5,946,679 Jan. 28 454, 6471,688,310 461.789 578,781 279,038 261,710 888,600 244,735 153,127 248,,096 167,162 I 437.3435.861.338 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

FEBRUARY, 1921. FEDERAL RESERVE BULLETIN. 241 Resources and liabilities of each Federal Reserve Bank at close of business on Fridays, Jan. 7 to Jan. 28, inclusive—Con. LIABILITIES—Continued. [In thousands of dollars.] Boston. Y N o e r w k. d P el h p i h la i - a. C la le n v d e . - m R o ic n h d - . Atlanta. Chicago. Lo S u t. is. M ap i o n l n i e s. - K C a i n ty sa . s Dallas. c F i S r s a a c n n o - . Total. MEMORANDA. Ratio of total reserves to net deposi t and Federal Reserve note liabilities combined—per cent: Jan. 7 59.6 39.0 58.2 59.4 46.2 41.4 43.6 48.2 39.2 41.6 40.2 49.1 46.4 Jan. 14 62.9 40.7 57.2 64.2 44.2 41.2 45.1 49.2 39.6 41.8 40.6 52.4 48.1 Jan. 21 64.4 38.1 61.3 66.9 47.1 41.2 47.0 47.5 39.5 40.8 39.8 55.2 48.5 Jan. 28 65.3 38.3 59.5 66.1 47.4 42.0 50.0 49.6 39.9 40.0 41.4 53.9 49.0 Contingent liability as indorser on discounted paper rediscounted with other Federal Reserve Banks: Jan. 7. 5,000 29,083 12,254 22,982 27,189 96,508 Jan. 14 4,729 24,284 8,580 13,577 26,567 77,737 Jan. 21 5,000 22,060 5,792 5,553 23,194 61,599 Jan. 28 17,578 2,075 21,485 41,138 Bankers' acceptances sold to other Federal Reserve Banks without indorsement: Jan. 7. 4,273 4,273 Jan. 14 2,263 2,263 Jan. 21 11.747 11,747 Jan. 28 51,828 51,828 Contingent liability on bills purchased for foreign correspondents: Jan.7 1,168 6,082 1.280 1.372 784 576 1,904 752 432 768 416 736 16,210 Jan. 14 1,168 6,079 1,280 1,312 784 576 1,904 752 432 768 416 736 16,207 Jan. 21 1,168 8,100 1,280 1,312 784 576 1,904 752 432 768 416 736 18,228 Jan. 28 1,168 8,100 1,280 1,312 784 576 1,904 752 432 768 416 736 18,228 Maturities of bills discounted and bought, also of Treasury certificates of indebtedness held by the twelve Federal Reserve Banks combined. [In thousands of dollars.] 1 W 5 i d t a h y in s. 16 d a to y s 3 . 0 31 d a to y s 6 . 0 61 d a to y s. 90 O d v a e y r s 9 . 0 Total. Bills discounted: Jan.7 532,488 238,822 449,929 320,198 65,912 2,607,349 Jan. 14 409,471 232,971 458,936 288,159 60,003 2,449,540 Jan. 21 443,330 251,587 434,432 297,735 55,945 2,483,029 Jan.28 453,331 235,415 419,912 293,538 54,279 2,456,475 Bills bought: Jan.7 79,109 54,075 76,509 25,066 234,759 Jan. 14 68,742 46,649 72,236 15,785 203,412 Jan. 21 58,954 47,008 53,030 8,958 167,950 Jan. 28 66,424 41,456 48,117 9,061 165,058 United States certificates of indebtedness: Jan. 7 6,219 4,000 7,013 30,177 214,376 261,785 Jan. 14 30,305 1,500 8,839 8,920 240,121 289,685 Jan. 21 4,802 2,500 12,296 8,138 236,895 264,631 Jan.28 4,468 1,999 10,682 8,020 236,283 261,452 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

242 FEDERAL RESERVE BULLETIN. FEBRUARY, 1921. FEDERAL RESERVE NOTES. Federal Reserve Agents' accounts at close of business on Fridays, Jan. 7 to 28, 1921, inclusive. [In thousands of dollars.] Boston. Y N o e r w k. P p d h h e i i l l a - a . - C la le n v d e . - m R o ic n h d - . la A n t t - a. Chicago. Lo S u t. i s. M ap i o n l n i e s. - C K s i a a t n s y - . I ; ! Dallas. c F S i r s a a c n n o - . Total. RESOURCES. Federal reserve notes on hand: Jan. 7 125,680 162,000; 33,030 26,529 77,110 133,120 24,780| 10,165 4,420 13,640 31,320 686,674 Jan.14 131,080 168,000i 30,690 28,999 78,155 143,180 27,680J 11,060 5,510! 14,960 35,180 724,934 Jan. 21 130,580 168,000| 27,840 27,658 77,850 141,480 27,180) 11,660 5,510! 16,305 50,180 734,683 Jan. 28 126,080 179,000: 25,040 25,659 77,085 147,180 25,680j 11,855 5,510| 16,825 54,180 744,534 Federal Reserve notes outstanding: Jan.7 294,8381,,028,819! 281,271 362,605 162,625 180,101 616,980 153,3951 80,321 116,9461 84,473 315,650 3;,, 678,024 Jan.14 284,8031,025,5211 278,913 351,662 157,440 175,943 593,406 148,374| 78,673 114,062j 81,830 309,0813.l, 599,708 Jan. 21 280,2001,025,201 276,429 345,524 158,714 173,503 584,055 146,224! 76,356 112,725! 79,287 304,979 31!,563,197 Jan.28 278,9161,011,966 273,550 341,201 158,126 171,672 568,247 145,571: 75,457 111,500! 76,717 298,3783,511,301 Collateral security for Federal Reserve notes outstanding: Cx old and gold certificates— Jan.7 5,600 209,608;. 22,775 3,500 6,060: 13,052 6,331 266,926 Jan.14 5,600 209,607. 22,775 3,500 6,060| 13,052 5,891 266,485 Jan. 21 5,600 209,6081. 22,775 3,500 "»,960l 13,052 5,891 266,386 Jan. 28 5,600 169,608|. 23,775 3,500 5,960 13,052 — 227,387 Gold redemption fund— Jan. 7 • 15,931 9,2601 14,825 19,573 3,600 3,632 10,720 2,750! 863 2,829 5,148) 17,346 106,477 Jan. 14 21,296 8,4561 15,127 19,189 2,885 2,319 9,206 3,628i 1,110 3,035; 5,826! 15,319 107,396 Jan. 21 16,193 12,882; 14,792 18,052 2,379 2,474 10,155 2,979! 1,893 3,698! 4,627) 19,123 109,247 Jan.28 20,409; 12,438; 14,113 18,729 2,791 3,377 13,047 2,826 2,189 2,474! 4,577j 17,212 114,182 Gold settlement fund—Federal Reserve Board- Jan. 7 110,000 20,000: 121,389! 135,000 48,000, 55,000 195.144 45,031! 11,200 37,360 14,235i 99,000 891,359 Jan.14 105,000 20,000 128,389; 135,000 45,000 54,600 183.145 43,93l| 11,200 37,360 12,234) 115,818 891,677 Jan. 21 130,000 1,000; 126,389- 135,000 42,000 53,500 201,145; 43,431| 11,200 35,360 1L234J 120,412 910,671 Jan. 28 135,000 26,000. 136,389| 140,000 46,000 54,000 198,145! 44,831! 10,200 35,360' 9,234) 111,722 946,881 Eligible paper— Amount required— Jan. 7 163,307- 789,951 145,057 185,257 111, 025i 117,1 411,116; 99,554 55,206 76,757} 58,759 199,304 2,413,262 Jan. 14 152,907! 787,458 135,397 174,698 109,555; 115,524 401,055 94,755| 53,311 73,667! 57, 879 177,944 2,334,150 Jan. 21 128,407) 801,711 135,248 169,697 114,335! 114,029 372,755! 93,854! 50,211 73,667) 57,535 165,444)2,276,893 Jan. 28 117,907! 803,920! 123,048' 158,697 109,335! 110,795 357,055 91,954! 50,016 73,666| 57,014 169,444 2,222,851 Excess amount held— Jan. 7 10,573; 159,749! 4,727) 36,071! 4,641; 14,053 i 50,586: 6,790! 21,084 38,352! 12,093 1,063 359,782 Jan. 14 5,040! 78,494 2,991} 21,048| 3,553; 14,701! 36,876j 7,246: 12,963 36,207; 11,648 1,649 232,416 Jan. 21 23,527! 113,597 8,083! 11,388! 1,111| 15,849! 51,094! 11,399i 23,612 39,173! 12,452 9,776 321,061 Jan. 28 28,912! 106,717] 6,066! 26,970 5,3211 17,258! 43,594! 7,8291 27,721 36,118; 11,7211 6,456 324,683 Total resources: Jan. 7 451,365jl,417,666 338,360! 191,891 276,664) 194,679 663,683 8,402,504 Jan.14 7• *0*W5*, 71/2«• 6v •| *2* • ,T2-T 9• V7 |, 5wv3.*6* ji v5v9v/1i ,•5**0•»7• ! K~7J\S7\S4J ,*8w*1 2 UU3\J4 y7 ,.*4.«3»v2 444,7421,366,868 331,674 181,369 269,8411 190,268 "" -" 8,156,766 Jan. 21 714,507 2,331,9991 588,781! 752,876 346,197 440,7051,360,684 331,027! 187,984 270,133) 187,331 8,182,138 Jan. 28 712,824J2,309,649J 578,206! 759,812i 347,232 437,687,1,327,268 324,651 190,490 264,6281 181,980 657', 392 8,091,819 LIABILITIES. Net amount of Federal Reserve notes received from Comptroller of the Currency: Jan.7 420,51sil,190,819 314,301! 407,485 189,154) 257,211 750,100! 178,175 90,486 121,366 98,113 346,970 4,364,698 Jan. 14 415,883jl,193,521 309,603 402,102 186,439! 254,098 736,586) 176,054 89,733 119,572 96,790 344,2614,324,642 Jan. 21 410,78011,193,201 304,269 395,964 186,372 251,353 725,535; 173,404 88,016 118,235 95,592 355,159 4,297,880 Jan. 28 404,996!l,390,966 298,590 391,641 183,785 248,757 715,427! 171,251 87,312 117,010 93,542 352,558 4,255,835 Collateral received from Federal Reserve Bank: Gold- Jan. 7 131,531! 238,868 136,214^ 177,348 51,600! 62,132 205,864^ 53,841 25,115 40,189 25,714 116,3461,264,762 Jan. 14 , 131,896! 238,063 143,516| 176,964 47,885| 60,419 192,351! 53,619 25,362 40,395 23,951 131,1371,265,558 Jan. 21 , 151,7931 223,490 141,1811 175,827 44,3791 59,474 211,300! 52,370 26,145 39,058 21,752 139,535 1,286,304 Jan. 28 161,009! 208,046 150,502| 182,504 48,7911 60,877 211,192| 53,617 25,441 37,834 19,703 128,9341,288,450 Eligible paper— Jan. 7 173,880! 949,700 149,784! 221,328 115,666 132,022 461,7021 106,344 76,290 115,109 70,852 200,367 2,773,044 Jan. 14 157,947! 865,952 138,388 195,746 113,108 130,225 437,931) 102,001 66,274 109,874 69,527 179,593 2,566,566 Jan.21 151,934! 915,308 143,331 181,085 115,446 129,878 423,849; 105,253 73,823 112,840 69,987 175,220 2,597,954 Jan. 28 146,819! 910,63" 129,114 185,667 114,656 128,053 400,649 99,783 77,737 109,784 68,735 175,900 2,547,534 Total liabilities: Jan.7 , 725,92912,379,38: 600,299! 806,161 356,420!4ol, 365 1,417,666 338,360 191, 276,664 194,679 663,1,683 85,,402,504 Jan. 14 705,726-2,297,536 591,507! 774,812 347,432 444,742 1,366,868 331,674 181,369 269,841 190,268 654,L9918\, 156,766 Jan. 21 714,507 2,331,999 588,781! 752,876 346,197 440,7051,360,684, 331,027 187,984 270,133 187,331 669,914 8!,,1 18822;,138 Jan. 28 712,824J2,309,649 578,206) 759,812 347,232 437,687 1,327,268! 324,651 190,490 264,628 181,980 657""" !, 091,819 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

FEBRUARY, 1921. FEDEBAL RESERVE BULLETIN. 243 Inter district movement of Federal Reserve notes during 1920, with totals for three preceding years. [In thousands of dollars.] Boston. New York. Philadelphia. Cleveland. Federal Reserve Bank. Received. Returned. Received. Returned. Received. | Returned. Boston 6,453' 4,026; 2,298 New York 72,012 59, 550 71,720 63,405! 54, 278! 20,088 Philadelphia... 6,208 7,049 56,467 77, 548 14,117 11,229 Cleveland 2,777 3, 996 23, 655 54,227 14, 319; 14,6231. Richmond 3, 741 3,474 16, 953 29, 436 12; 144 11,809! 8, 946 6, 340 Atlanta 2,313 2,944 14,149 19,925 3, 218, 4,159 6. 271 3, 330 Chicago 5,581 6,609 28,409 58, 505! 6,331 7, 433 25^ 079 19,573 St. Louis 1,478 1,066 7,9631 2,008 1,551 9,269 2,468 Minneapolis... 505 807 !, 59S 5, 954! 501 639 1, 211 1,160 Kansas City... 803 1,126 4,963 7,046| 1,010 1,388 2, 377 1,873 Dallas.. 597 1,466 4,826 7,408! 903 1,527 1, 505 1,522 San Francisco. 2,2771 1,497i 12,048 17,908J 2,162 1,455 3, iS7 1,151 Total, 1920.. 98,292 89, 5841 231,891! 358,604; 121, 209 114,442 130, 566 71, 032 Total, 1919.. 62,719 90,291 i 235,408'! 282,083' 78,300 94, 525 96,675 64, 564 Total, 1918.. 21,660i 37,932! 118,050! 118,6291 39, 531 62, 355 40,366! 21, 249 Total, 1917.. 4,2791 12,013! 29, 997i 24,800 8,057 14,961 5,176! 2, 534 Richmond. Atlanta. Chicago. St. Louis. Federal Reserve Bank. Received. Returned. Received. Returned, i Received. j Returned. Received. ! Returned. Boston 3,690; 2,925 2, 220: 6,631 5,571 1,070 1,473 New York 16, 7681 19, 780 14,005' 58, 740 28, 264 8, 004 8,641 Philadelphia... 11, 12,487! 4,152 3,031 7,164 6,529 1,377 2,168 Cleveland 8. 818 3, 946 6,0501 21,777i 25, 263 3, 092 9,380 Richmond 13,037 8,184 6,530 4, 293 2, 229! 2,276 Atlanta 8,621 12,847 8,976 6,363 12,207i 9,451 Chicago 4, 333 6,387 6,408 8,280.. 14, 977' 37, 721 St. Louis 2,298 2,161 9,420 12, 320! 37,458! 14,926 . Minneapolis... 348 644 479| 759! 16,411! 21, 835 1,907 Kansas City... 998 2,444 •1, 843' 1,870 14, 836) 12, 367 8,109 11, 355 Dallas 825 3,052 4,890 5,401' 4, 760! 3, 832 4, 762 8,418 San Francisco. 1, 610 696 2, 835! 1,217; 14,288| 9,989 2, 834 2, 880 Total, 1920.. 71,4531 69, 994 69,715J 63, 337: 197,571) 139,230 59, 594 95,670 Total, 1919.. 70, 806| 72, 91ll 58, 397! 54,621' 149, 978 129,606 50, 470 75, 559 Total, 1918.. 31,114 26, 603! 21,108! 20,439i 49,708 51,456 15,020 37,558 Total, 1917.. 6.450 2,0S'v 6,2111 4, 650! 5,129 15,268 3, 345 7,980 Minneapolis. Kansas City. Dallas. San Francisco. Total, 1920. Federal Reserve Bank. Re- Re- Re- Re- Re- Re- Re- Re- Received. turned. ceived. turned. ceived. turned. ceived. turned. Received. turned. Boston 805 490 1,162 7961 1,467 1,579 2,460 89,256 98, 724 New York 5,954 2,605 7,040 4, 940 7,267 4,4241 17,799 12, 639 352, 168: 235, 329 Philadelphia... 634 504 1,392 1,021! 1,627 739; 1,338 2, 321 105, 831' 124,626 Cleveland 1,466 1,222 2,390 2, 407 1,696 1,393 1,3061 3, 616 81,431 130,995 Richmond 648 347 2,441 877 3,061 769 712 1,637 70, 442! 69,442 Atlanta 752 488 1,947 1, 873 5,290 4,671 1,247 2,872 64, 991 i 68,923 Chicago 21, 853 16,397 12,458 15,043 3, 847 4,431 10,341 14, 534! 139, (J17i 194,913 St. Louis 1,899 11,463 8,204 8,273 4, 559 2,878 2,879 95,053 59, 036 Minneapolis... 2, 362 3,205 404 591 3,849 5,001 29,601: 42, 501 Kansas City... 3,191 2,396 6,974 6,007 5,933 7,282 51,037; 55,154 Dallas 6341 439 6,741 7,101 . 5,645 4,351 44, 517 San Francisco. 4, 949) 3,447 7,247 5, 997 4,299 4,610 . 58, 036! 50, 847 Total, 1920.. 42, 785 29, 274 56,643 51, 465 44, 205 32, 783 52,627 59, 592 1,176,551 1,175,007 Total, 1919.. 39,607 29, 704 51,607 39,802 24, 765 18,174 42,3911 35,267 961,123; 987,107 Total, 1918.. 14, 296 9,115 33,604 6,321 11,084 11,855 15, 583! 5,095! 411,124 408,607 Total, 1917.. 5, 538 1, 351 7, 783 1,119 5,765 3,507 4, 35f>! 1, 843 92, 096! 92,106 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

244 FEDERAL RESERVE BULLETIN. FEBRUARY, 1921. OPERATIONS OF THE FEDERAL RESERVE CLEARING SYSTEM FROM DEC 16, 1920, TO JAN. 15, 1921. [Amounts in thousands of dollars.] Items drawn on banks in own district. Items drawn on Items forwarded to j Items forwarded B Fe a d n e k r a o l r R b e r s a e n r c v h e . Lo e B c r a a a t l n e k d i R n e a F se e n r d v d e - Lo F B c e a a d t n e e k d r a a l n d R o b e u r s t a e s n r i v d ch e e T U r n e i a t s e u d r e S r t ates. of Total. o s b e t r h r V a v e n ip e r c r h F B F e ep a s dr n . J e k pr s ran l a l RT n ? d e.P- i J j tt s o oo a r m p e a b r d r e i a n s n t t c r i h c b t a . n i k n branch cities. cities. Number. Amount. Number, j Amount. Number. Amount. Number. Boston 633,801 656,387 3,087,256; 430,777 150,080! 24,191 3,921,137 1,111,355 150,201 62,840; New York 171,683 2,095,263 4,433,019! 1,211,155 1,239,8981 157,397 6,844,600 3,463,815 971,603 529.3121 23,6851 6,612 Buffalo 175,3051 102,216 367,110| 51,0401 14,3061 1,396 550,721 154,652! 134,768 23,762i 31,903| 22,223 Philadelphia 583,694 850,189 2,070,573 262,047 206,657 29,473 3,860,924 1,141,709! 835,757 193,5201. Cleveland 318,260 242,320 1,167,8971 175,456 55,982 6,726 1,542,139 424,502! 51,889 33,934] 34,807 15,101 Cincinnati 163,087 143,370 774,460 87,058 52,7271 4,091 + 990,274 234,519! 18,902 20,381; 12,072 4,642 Pittsburgh 332,505 348,751 874,868 119,678 50,743! 6,785 1,258,116 475', 217! 65,342 47,929| 33,824 6,922 Richmond 101,233 148,989 2,180,806 319,527 .10,539i 6,775 2,332,578 475,291j 146,748 71,614! 52,380 16,683 Baltimore 219,338 172,112 669,751 82,650 52,200i 8; 368 941,289 263,130! 116,688 69,053! 84,106 12,036 Atlanta 104,775 65,266 289,819 49,246i 25,776! 6,562 420,370 121,074i 48,422 21,795! 47,179 8,628 Birmingham 45,770 20,312 133,153 10,837! 14,664i 1,156 193,587 32,305! 18,349 11,573| 26,735 44,757 Jacksonville 21,785 24,611 145,224 18,440 9,115! 840 176,124 43,891j 21.836 6,320! 4,316 1,650 Nashville 47,139 31,645 207,066 22,753 12,472 1,920 266,677 56,318! 29; 783 6,356 11,583 1,565 New Orleans 58,906 56,522 100,033 15,855 23,463 3,633 182,402 76,010! 45,619 11,887 6,867 974 Chicago 837,663 682,550 3,343,321 345,096 405,311 38,205 4,586,295 1,065,851 j 299,146 36,711 7,299 4,582 Detroit 232,763 177,599 373,724 42,178 32,463i 2,608 638,950 222.385| 10.154 11,175 6,372 2,349 St. Louis 257,215! 251,365 1,273,810 93,229 114,050} 12,069 1,645,075 24', 283 5,118 8,285! 1,391 Little Rock 43,392J 23,431 277,064 17,347 6,230 l,804| 326,686 42' 582j 7,502 • 1,5171 28,438 3,851 Louisville 85,645 60,472 365,375 25,181 26,003 4,7251 477,023 90,378! 8,737 l,426j 3,268 365 • Memphis 68,002 32,529 145,082 11,770 7.7831 2,268! 220,867 46,567| 1,942 636 2,727 643 Minneapolis 278,397; 138,844 1,611,046 103,499 52', 378! 6,146J 1,941,821 111,422 32,018 Kansas City 219,326| 278,3841 2,162,649 132,508 91,370! 7,86912,473,345 418*76l! 291,927 61,222| 96,439 19,422 Denver 83,191i 52,962 326,912 24,012 18,9511 2,005j 429,054 78,9791 75,507 21,258! 38,872 13,327 Oklahoma City -.. 57,782 62,687 931,344 93,160 I3,625i 992,751 156,237! 49.136! 9,894 19,099 14,319 Omaha 88,110 53,388 508,295 36,336 42,939 3,206! 639,344 92,930j 40,276; 7,420 18,147 6,440 Dallas 134,312 70,304 1,631,638 244,494 25,760; 3,750 1,791,7101 318,548| 85,959: 33,118! 48,147 7,947 El Paso 42'777 11,045 129,830 12,167 14,372 3,307! 186,979 20,5191 19,219; 8,048 13,700 2,218 Houston 64,597 42,404 314,914 43,178 98; 702| 1,865' 478,213: 87,447) 23,831; 18,062 8,177 2,231 San Francisco 152,053 110,097 404,100 35,850 69,009 107,585i 625,162! 253,532! 32,511| 4', 148! 44,939 7,195 Los Angeles 241,687 106,709 939,160 71,264 28;579 13,4711 1,209,426 i 191,4441 112,9381 14,478j 48.144 13,378 Portland 55,982 34,900 201,991 13,024 17,372 9,964i 275,3451 57,888! 3,856 1,4591 27;411 4,587 Salt Lake City.... 61.806 37,937 422,789 49,294 13,401 3,528 497,996 90,7591 12,476 19,547 10,262 8,576 Seattle 62,513 38,930 210,268 16,382 26,507 11,937 299,288 67,249 17,740 4,239 34,587 6,498 Spokane 34,258 19,762 182,273 16,718 10,183 1,049 226,714 37,529 9,352 2,201 18,443 5,645 Total: Dec. 16, 1920 to Jan. 15, 1921....8,128,752 4,283,206 32,256,620 4,283,206 3,063,610 497,064 43,448,982|l2,024,525J13,893,82l| 21,403,971 852,213 266,757 Nov. 16 to Dec. 15, 1920. 7,590,783J 7,174,087 31,491,522 4,430,848 2,675,292 486,043 41757,597(12,090,979! 2 3,987,632 31 538,909 858,333 278,625 Dec. 16, 1919, to Jan. 15, 1920 6,667,049! 8,083,97324,545,481 5,214,411 1,990,362 743,821 33,202,892 14,042,205 3 3,383,255! * 1,691,453 763,149 322,700 ! Number of incorporated Number of nonmember ! banks other than mutual banks on par list Jan. 15. I savings banks not on par Federal Reserve Bank. list Jan. 15. 1921 1920 1920 Boston 256 New York 328 Philadelphia- 441 Cleveland 1,080 Richmond.... 1,261 Atlanta 409 Chicago 4,259 St. Louis 2,523 Minneapolis.. 2,875 Kansas City.. 3,392 Dallas 1,254 San Francisco 1,023 Total... 19,101 16,985 1 Covers period of Jan. 3 to 15 only. 2 Includes 7,082 items, amounting to $1,776,000 forwarded direct to member banks in other Federal Reserve districts. 3 Includes 7,344 items, amounting to $2,100,000 forwarded direct to member banks in other Federal Reserve districts. 4 Includes 5,395 items, amounting to $2,451,000 forwarded direct to member banks in other Federal Reserve districts. NOTE.—The number of business days in period was 25 in all Federal Reserve Bank and branch cities except New Orleans, where the number was 24. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

FEBRUARY, 1921. FEDERAL RESERVE BULLETIN. 245 CONDITION OF MEMBER BANKS IN LEADING CITIES. For the four-week period, December 24- including Liberty bonds," under the general January 21, the reporting member banks show caption ''United States bonds"; item "Loans liquidation of 253 millions of total loans and secured by United States war obligations" investments, accompanied by a reduction of has been changed to "Loans secured by United 240 millions in borrowings from the Federal States Government obligations.'' More im- Reserve Banks. At the same time net de- portant is the subdivision of item "All other mand deposits increased by about 100 millions loans and investments" into "All other loans and time deposits by 129 millions, while Gov- and discounts" and "Other bonds, stocks, and ernment deposits declined by 134 millions. securities." This segregation makes it possible Principal resources and liabilities of the re- to show for the first time the total loans and porting member banks on each Friday from discounts of reporting member banks, also to December 24 to January 21 are shown in the approximate more closely the amount of following table: commercial paper held by these banks, while the item "Other bonds, stocks, and securities" gives a measure of the amount of corporate and Resources and liabilities of member banks in leading eifoes other securities owned by the reporting banks. on Fridays from Dec. 24, 1920, to Jan. 21, 1921. The following statement shows the absolute [In millions of dollars.] amount and the relative importance of the principal asset items as shown for the three Dec. 24. Dec. 31.; Jan. 7. : Jan. 14. Uaii.21. Fridays of 1921: Number of reporting banks... 824 821 829 830 829 Loans and discounts: Amount P l e o r ans c a en n t d d o is f c ou to n t ts a , l Loans secured by United (in millions). and investments. States Government obligations l 869 835 ! 828 Loans secured by stocks and bonds (other than Jan. 7.Jan.14. Jan.21.|Jan. 7J.an.14.Jan.21. United States securities) 3,127 j 3,176 3,108 3,067 3,083 All other loans and discounts1 9,326 9,234 j 9,175 Total loans and discounts, and investments 16,603 16,440 j 16,439 | 100.0100.0 100.0 Total loans and dis- Loans and discounts, counts1 13,303 13,136 j 13,086 total 13,303 13,136 113,086 ! S0.179.9 79.6 United States bonds 903 911 i 878 870 ! 871 Secured by United U U n n i i t t e e d d S S t t a a t t e e s s V c i e c r t t o if r i y c at n e o s te o s f .. 202 209 ! 206 201 204 m St e a n te t s o bl G ig o a v t e io rn n - s j | 835 ! 828 i 5.2 5.1 5.0 indebtedness 277 Secured by stocks I Other bonds, stocks, and 311 271 and bonds I 3,108 3,067 3,083 i 18.7 18.7 18.8 Ot s h e e c r u r l i o ti a e n s s and investments. 1 ( ,39 ) 88 I I 2,0 ( 131 ) 2,001 Inve A st l m lo e t n h t e s r , total. 9 3 , , 3 3 2 0 6 0 9 3 , , 2 30 3 4 4 9 3 , , 1 3 7 5 5 3 5 1 6 9 . . 2 9 2 5 0 6 . . 1 1 2 5 0 5 . . 4 8 11,260 11,274 United States ' Total loans and dis- bonds and Viccounts and invest- tory notes 1,084 1,071 | 1,075 6.5 6.5 6.5 ments *..: 16,692 16,750 ! 16,603 i 16,440 16,439 United States certificates of in- Reserve balance with Federal debtedness 222 277 1.4 1.4 1.7 Reserve Bank } l 334 1,358 ! 1,357 1,317 1,334 Other bonds, Cash in vault 356 355 | 389 369 ' 345 stocks, and se- Net demand deposits 10,654 10,942 10,938 10,919 10,754 curities 2,011 j 2,001 12.0 12.2 12.2 Time deposits I 2,789 2,852 2,909 2,933 , 2,918 Government deposits 344 262 119 78 210 Bills discounted and rediscounted with Federal Re- Of the banks' total earning assets, as measserve Bank, total ! 2,174 2,098 2,050 ! 1,894 ; 1,934 ured by their loans, discounts, and invest- Secured by United States ! ments, about 80 per cent are loans and about Government obligations! 878 i 843 766 800 All others I 1,220 1,207 ! 1,128 1,134 20 per cent are investments. Of the loans and discounts, by far the largest item is "All other * Including bills rediscounted with Federal Reserve Banks. loans and discounts," composed chiefly of 2 Comparable figures not available. 3 Subdivided into: "All other loans and discounts" and "other bonds, commercial paper. This item is in excess of stocks, and securities." 9 billions and constitutes more than 55 per cent of the banks' total earning assets. Loans Beginning with the first Friday of the new secured by stocks and bonds are over 3 billions, year, the reports from member banks are given or between 18 and 19 per cent of the total, in somewhat modified form, which, it is while loans secured by Government obligations believed, will enhance their usefulness. Item are about 5 per cent of total earning assets. "Bonds to secure circulation/7 which continues In the investment block, "Other bonds, stocks, practically without change from week to week and securities" amount to about 2 billions, at approximately 270 millions, has been con- compared with between about 1,300 and 1,400 solidated with item "'United States bonds. millions of Government securities. The 2 bil- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

246 FEDERAL RESERVE BULLETIN. FEBRUARY, 1921. lions of other stocks, bonds, and securities, by United States Government obligations, after held by reporting member banks on January 21 an increase by about 20 millions during the are to be compared with 3,168 millions of this last week in 1920, declined by about 81 millions class of investments held by all member banks during the subsequent three weeks; loans supon November 15, indicating roughly that about ported by corporate securities show a similar two-thirds of the stocks, bonds, and securities course, and at the close of the period were 44 held by member banks are among the assets millions less than four weeks before, while of the member banks in leading cities from other loans and discounts show considerable which weekly reports are received. net liquidation during the last two weeks, Turning to a more detailed discussion of with tne result that the January 21 total is developments during the four-week period about 151 millions below the January 7 total. under review, it appears that the changes for Total loans and investments at the close of the the last week of the past year were essentially period stood at 16,439 millions, or about 253 different from those for the first three weeks millions below the total shown four weeks of the present year. The week ending Decem- earlier. ber 31 saw an increase in all classes of loans, Accommodation of the reporting banks at due largely to the usual end-of-year resump- the Federal Reserve Banks during the first tion of borrowings, and a more than commen- three weeks under review declined from 2,174 surate increase in demand and time deposits, to 1,894 millions, or from about 13 to 11.5 per caused apparently by the return flow of cur- cent of the banks' total loans and investments. rency, which swelled the deposits of the banks7 For the week ending January 21 the Federal customers and was passed on by the member Reserve Banks show an increase by about 40 banks to the Federal Reserve Banks, thereby millions in bills held under discount for the reducing the outstanding amount of accommo- reporting institutions, the total held on that dation carried by the latter. For the same date, 1,934 millions, indicating a reduction week, there is noted an increase of about 15 during the four weeks of about 240 millions millions in the reporting banks' holdings of in borrowings from Federal Reserve Banks, a United States bonds and Victory notes, due reduction slightly smaller than the net liquidaapparently to purchases from customers de- tion during the period of aggregate loans and sirous to establish losses for income-tax pur- investments. poses. Reserve balances of reporting banks with During the subsequent three weeks liquida- the Federal Reserve Banks show compara tion of loans and investments was practically tively slight fluctuations, and stood at the end continuous, affecting all specified classes of as at the beginning of the four weeks at about loans and investments, except Treasury certifi- 1,334 millions. cates. United States bond and Victory note Cash in vault increased from 356 millions holdings show a reduction since December 31 on December 24 to 389 millions on January 7, of about 45 millions, while holdings of Treasury but declined to 345 millions on January 21. certificates show a continuous decline b}^ about The decrease in cash for the four weeks is 89 millions during the first three weeks of the thus about 11 millions, but much larger period under review, largely during the first amounts of cash, mainly Federal Reserve curweek in January, when about 135 millions of rency, passed through the reporting member outstanding certificates matured, and an in- banks on their way from the general public to crease of 55 millions during the fourth week the Federal Reserve Banks, which curtailed which witnessed the redemption of about 125 the cirulation of Federal Reserve notes and millions of certificates matured on January 15 Federal Reserve Bank notes by over 300 and the allotment on that date of about 310 millions during the period. millions of new loan certificates. Loans secured Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

FEBRUARY, 1921. FEDERAL RESERVE BULLETIN. 247 Principals/resources and liabilities of member banks in leading cities, including member banks located in Federal Reserve Bank cities and in Federal Reserve branch cities as at close of business on Fridays, from Dec. SI, 1920, to Jan. 21, 1921. 1. ALL REPORTING MEMBER BANKS. [In thousands of dollars.] Boston. Y N o e r w k. d P el h p i h la i - a. C la le n v d e . - m R o ic n h d - . la A n t- ta. 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. Number of reporting banks: Dec. 31 114 91 108 35 821 Jan.7 114 115 69 829 Jan. 14 114 115 69 830 Jan.21 114 115 69 Loans secured by United States Government obligations, including bills rediscounted with Federal Reserve Bank: Dec. 31 50,241 438,909 77,216 71, 879 28,403 29,555 97,040 26,: 15,285 10,268 34,663 908,908 •Ian. 7 48,067 414,617 76,385 69,461 28,576 25,872 90,655 27,623 16,112 26,955 10,788 34,048 869,159 Jan. 14 47,587 392,089 76,074 67,0S3 29,441 26,501 87,459 26,911 15,056 25,058 9,638 31,919 834,816 Jan.21 46,803 381,465 74,811 66.405 28, 390 26,338 94,997 26, 943 14,782 25,053 9,843 32,534 828,364 Loans secured by stocks and bonds (other than United States securities): Dec. 31 204,128 1,.377,299 202,862 338,87S 112,619 59,381 450,240 126,445 36,801 80,008 38,512 148,733 3,175,906 Jan.7 193,3331, 328,396198,042 335,313 113,141 59,973 451,379 121,947 37,238 77,079 39,165 152,879 3,107,885 Jan.14 193,463 i:,290,666 191,365 339,183 113,049 60,970 448,186 123,590 37,847 77,747 38,655 152, 9433,067,664 Jan.21 1S9,8781,311,082 196,059 343, 036 111,270 60,000 440,671 122,086 39,002 79,190 38,250 152,196 3,082,720 All other loans and discounts, including bills rediscounted with Federal Reserve Bank: Dec. 31 () C1) C1) C1) C1) C1) C1) C1) () C1) C1) C1) Jan.7 692,2!!80 3!,, 246,960407,412 706,003 345,900 366,82: 1,437,754 357,525 255,262 432,437 238,398 839,672 9,326,425 J J a a n n . . 1 2 4 1 6 6 8 7 1 2 , , 1 2 1-4 8 0 4 3 3\! , ! 2 , 2 4 2 , 3 2 6 3 , 4 2254 4 0 0 9 5 , , 2 8 8 4 7 1 7 7 1 0 7 8 , , 7 33 7 9 0 3 3 4 3 0 7 , , 5 3 8 8 5 5 3 3 5 5 5 5 , , 2 22 6 8,r 5 ~5 J1 :1, ,4 4 0 1 3 6 , ,4 6 5 7 4 2 3 3 5 6 7 2, , 3 9 6 2 6 7 2 2 4 4 7 4 , , 7 2 7 8 6 6 4 4 2 1 4 4 , , 0 8 8 9 9 1 2 23 3 3 6 , , 1 0 6 0 2 6 8 8 1 0 5 9 , , 1 2 1 6 4 7 9 9, , 1 2 7 3 4 4 , , 6 0 4 0 8 2 Total loans and discounts, including bills rediscounted with Federal Reserve Bank: Dec. 31 0)) () () () 0) C1) <) 0) C1) C1) C1) C1) C1) Unit J J J e a a a d n n n . . . S 2 7 1 t 1 a 4 tes bonds: 9 9 9 2 3 0 2 3 8 , ,, , , 6 1 9 8 9 6 0 0 5 4 4 4 , , , , ,9 9 1 1 9 6 8 8 , , 9 7 9 , 8 8 9 1 0 736 6 6 8 7 7 1 7 6 , , ,, , 2 1 88 5 30 7 9 1 1. 1, , , 1 1 1 1 1 2 4 0 7 , , , 6 7 2 0 7 1 5 7 1 4 4 4 8 8 7 7 3 7 , , , 6 0 0 1 7 4 7 5 5 4 4 4 4 4 5 2 1 2 , , ,'6 6 7 6 2 3 7 3 6 1 1 1 , , , 9 9 9 3 5 7 9 2 9 , , , 0 3 7 9 4 8 9 0 85 5 50 0 1 6 7 2 , , , 9 0 8 5 9 6 6 5 7 3 2 3 9 0 0 8 0 8 , , , 6 6 0 1 7 7 2 9 0 5 5 5 2 3 1 7 8 6 , , , 6 3 4 9 3 7 6 2 1 2 2 2 8 8 8 4 8 1 , , , 2 2 3 9 5 5 9 5 11., 9 9 9 9 0 9 3 2 ,, , 6 9 9 , 7 9 5 6 9 7 • 9 1 1 5 3 3 1, , , 3,3 1 0 50 3 8 3 6 5 , , , 4 4 7 6 8 3 2 2 9 Dec. 31 33,434 307,464 44,907 101,604 63,872 42,589 85,604 30,476 17,585 39,702 41,128 102,325 910,690 Jan.7 33,230 302, 065 45,283 100,727 60,924 41, 990 80,656 29,207 16,317 36,563 36,927 94,592 878,481 Jan.14 33,184 300,070 44,905 97,654 59,238 40,307 78,507 29,224 16,116 34, 591 36,360 99,739 869,895 Jan.21 32,434 297, 032 44,947 97,796 65,595 40,288 80,075 27,966 16,237 35,279 36, 774 96,681 871,104 United States Victory notes: Dec 31 5, 97,612 12,170 19,511 7,543 4,398 32,426 2,873 1,042 5,462 2,755 17,423 209,079 Jan.7 6,003 93,234 11,342 20,060 7,692 \4,r426 33,771 2,422 1,085 4,869 3,017 17,651 205,572 Jan. 14 6,005 90,547 11,189 20,199 7,681 33,991 2,352 1,360 4,999 2,927 15,629 201,241 Jan. 21 6,006 91,618 11,288 20,443 7,677 33,981 2,908 1,331 4,92f 2,942 17,025 204,433 United States certificates of indebtedness: Dec. 31 18,115 146,686 15,099 16,502 7,313 3,140 34,447 4,150 1,677 6,498 2,254 15,718 271,599 Jan.7 15,609 130,021 12,447 13,460 5,910 2,447 25,326 2,374 1,283 5,257 1,839 11,582 227,555 Jan. 14 13,692 128,271 11,810 11,835 57, 31~3 2,654 26,043 1,974 505 5,936 1,051 12,116 222,100 Jan. 21 19,860 148,072 18,477 17,949 2,481 33,991 4,295 3,017 6,240 2,049 13,564 277,091 Other bonds, stocks, and securities: Dec. 31 (0 C1) C1) C1) C1) C1) () C1) C1) J J J a a a n n n . . . 1 7 2 4 1 1 1 1 2 2 2 8 5 8 , , , 6 9 9 3 7 4 9 8 8 7 7 7 3 3 3 7 1 3 , , , 6 4 0 8 6 1 3 9 5 1 1 1 5 5 5 5 7 5 , , , 2 5 2 9 1 5 5 7 7 2 2 2 8 7 8 7 8 0 , , , 7 6 2 8 3 8 7 7 2 4 4 4 5 7 6 , , , 3 6 1 3 5 4 1 1 5 3 3 3 5 6 6 , , , 9 6 4 5 3 0 6 2 2 2 2 2 8 9 9 7 8 8 , , , 2 3 7 1 0 4 9 0 0 6 6 6 4 5 5 , , , 0 2 4 3 2 6 6 1 8 2 1 1 0 9 9 , , , 0 6 5 9 4 5 2 6 7 5 5 5 5 6 4 , , , 5 0 6 0 9 4 4 0 0 1 1 10 1 0 , , , 8 1 5 0 0 6 4 0 3 1 1 1 7 7 7 0 1 2 , , , 2 0 7 3 2 9 1 0 8 2 2 1 , , , 0 0 9 0 1 8 1 0 7 , , , 0 7 8 1 7 6 4 9 0 Total loans and discounts, and investments, including bills rediscounted with Federal Reserve Bank: Dec. 31 1,110,5116«, 340,035 7851., 547,840614,060 552,573 2,449,980 576,532 350,925 647,443 343, ., 302,855 16.,,750,488 Jan.7 1,114,5006,252,976 206 1.,523,811 607,474 537,486 2.406,841 605,134 347,389 639,250 341,2341,320, (,602,956 Jan. 14 l103~~ 6,169,337 7011,531,930 602,452 526,,446611 22,388,859 611,638 338,306 628,726 336"~ 1,300,25816!1,440,478 Jan.21 i; 096', 213 6,186,518 1261,543,681 604,064 525,,316 2,"-127 607,""" 338,212 619,413 333', 824 1,292,287 16i;, 439,374 Reserve balance with Federal Reserve Bank: Dec. 31 77,180 648,885 69,918 99,420 34,544 28,678 184,91S 42,235 20,689 45,570 24,465 81,167 1,357,66^ Jan.7 79,684 634,756 71,089 102,291 34,191 30,710 190,004 44,379 20,654 49,931 21,210 77,744 1,356,643 Jan.14 79,993 621,002 63,907 99,454 35,061 29,736 187,290 43,014 19,132 43,981 22,748 71,751 1,317,069 Jan. 21 81,085 626,600 66,335 103,379 34,196 29,280 182,930 43,718 19,397 46,040 22,620 78,346 1,333,926 Cash in vault: Dec. 31 23,975 115,352 19,549 35,525 17,373 14,675 62,048 8,20: 8,299 14,001 10,791 24,740 354,535 Jan.7 26,276 126,985 19,496 40,251 21,057 13,338 65,442 10,245 8,861 16,954 11,497 28,249 388,651 Jan. 14 24,595 125,025 18,405 36,380 17,491 13,402 60,838 9,903 8,637 14,819 11,505 28,141 369,141 Jan. 21 23,241 107,809 18,209 36,602 17,466 12,120 58,845 10,138 8,205 14,620 11,008 27,030 345,293 Net demand deposits: Dec. 31 782,719 4,,995,337 661,765 891,407 331,750 246,9991,309,934 310,887 185,745 393,621 215,259 616,424 10),, 941,847 Jan.7 784,417 4,.953,577 672,893 897,603 340,129 237,6911,321,867 325,494 187,307 398,574 212,591 606,22710,938,370 Jan. 14 783,568 4,895,677 661,756 908,435 332,965 243, 4"8"11',,340,235 332,698 187,780 400,281 213,907 618,27610,919,059 Jan. 21 777,235 4,803,478 659,871 906,050 330,654 237,0291,299,983 329,579 185,825 400,341 209,467 614,6081"01;,754,180 1 Comparable figures not available. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

248 FEDERAL, RESERVE BULLETIN. FEBRUARY, 1921. Principal resources and liabilities of member banks in leading cities, including member banks located in Federal Reserve Bank cities andin Federal Reserve branch cities as at close of business on Fridays, from Dec. 31, 1920, to Jan. 21, 1921—Con. 1. ALL REPORTING MEMBER BANKS-Continued. [In thousands of dollars.] Boston. Y N o e r w k. d P el h p i h la ia - . C la le n v d e . - m R o ic n h d - . la A n t t - a. Chicago. Lo S u t. is. M ap i o n l n is e . - K C a i n tv s . as Dallas. F c S i r s a a c n n o - . Total. Time deposits: Dec.31 160,446 441,378 37,029 403,930 108,192 147,260 651,555 130,927 70,880 100,462 58.229 541,969 2,852,257 Jan.7 170,751 470,704 36,976 403,957 108,531 147,604 663,609 137,553 69,814 98,388 59,257 541,771 2,908,915 Tan.14 172,871 477,141 37,003 403,134 113,009 146,684 662,310 147,760 70,007 110,708 59,712 533,091 2,933,430 Jan. 21 171,884 456,944 38,206 429,193 114,199 144,727 660,611 141,261 70,053 99,393 58,748 532,963 2,918,182 Government deposits: Dec. 31 21,317 130,621 20.659 36,020 5,960 2,159 21,381 5,047 3,445 4,148 1,3631 9,244 262,264 Jan.7 9,484 58,087 9,167 17,344 2,782 1,250 9,515 2,983 1,507 1,847 602 4,044 118,612 Jan. 14 6,451 39,588 6,227 11,394 1,806 735 6,118 1,508 874 629 396 2,729 78,455 Jan. 21 20,653 108,840 19,628 15,176 3,186 2,057 19,666 5,760 4,605 4,093 1,572 5,083 210,319 Bills payable with Federal Reserve Bank: Secured by United States Government obligations- Dec. 31 30,318 301,235 45,380 38,134 29,111 28, 787 71,155 20,840 7,759 21,087 1L829J 23,775 629,410 Jan.7 25,788 283,379 43,601 34,741 23,628 30,470 66,880 17,579 6,383 21,441 12,608 27,096 593,594 Jan. 14 19,525 255,136 46,255 25,699 24,150 29,841 66,573 16,515 6,408 16,326 10,686 22,489 539,603 Jan. 21 31,142 276,924 44,238 27,089 26,699 28,743 71,309 19,311 6,307 17,651 11,361 17,720 578,494 All other- Dec. 31 72 4,110 1,063 670 loo! 6,051 Jan.7 40 1,100 489 130 335j 2,190 Jan.14 85 1,208 10 75| 1,414 Jan.21 36 105 1,224 10 1,375 Bills rediscountedwith Federal Reserve Bank: Secured by United States Government obligations- Dec. 31 19,558 124,324 37,813 10,991 3,517 9,183 21,033 5. 736 1,969 6,582 1,678 6,466 248,850 Jan. 7 19,774 123,106 38,451 12,048 3,373 8,707 20,021 5,637 2,146 6,295 2,397 7,515 249.470 Jan. 14 19,558 110,337 33,845 3,835 8,540 19,117 5,261 1,283 5,559 1,934 6,200 226,501 Jan.21 16,907 105.300 34,799 11,! 657 2,642 8,968 20,286 5,802 1,288 4,930 1,629 6,965 221,173 All other- Dec. 31 79,659i 406,223 38,750 56,348 42,844 65,651 260,978! 51,067 45,271 66.421 21,124 79,406 1,213,742 Jan.7 75,011 429,540 27,984 63,135 43,546 60,302 233,858 51,093 45,872 64,697 27,420 82,155 1,204,613 Jan.14 70,493 403,843 30,332 62,879 40,577 53,234 217,976 50,684 38,690 57,177 26,757 74,306 1,126,948 Jan. 21 54,561 460,496 24,573 61,178 39,103 52,005 208,321 50,091 37,141 51,000 23,186 71,014 1,132,669 2. MEMBER BANKS IN FEDERAL RESERVE BANK CITIES. Number of reporting banks: Dec. 31 Jan.7 Jan. 14 286 Jan. 21 286 Loans secured by United States Government obligations, including bills rediscounted with Federal Reserve Bank: Dec. 31 42,488 412,504 74,327 19,964 7,271 5, 67,313 14,573 9,577 10,665 2,336 17,755 684,271 Jan.7 40,627 387,264 73,468 20,404 7,065 3, 65,628 14,631 9,565 9,158 2,595 16,474 650,777 Jan. 14 40, 202 365,225 73,222 19,059 7,056 3,959 60,848 14,201 9,414 8,205 1,953 14,482 617,826 Jan. 21 39, 830 354,463 71,925 19,232 6,805 4,099 67,080 14,016 9,248 8,300 2,341 14,719 612,058 Loans secured by stocks and bonds (other than United States securities): Dec. 31 159,074 1,222, 183,388 127,795 14,819 7,278 337,054 87,801 20,622 34,119 9,812 68,521 2,273,163 Jan.7 147,343 1:' 166, 744 178,941 123,421 16,845 10,016 328,483 87,717 21,279 31,858 9,717 69,399 2,191,763 Jan. 14 146, £ ., 131,969 172,374 121,992 16,844 10,145 326,223 88,873 21,713 31,960 9,378 71,229 2,149,283 Jan. 21 143,104 1,146,545 177,217 129,782 15,870 9,104 318,081 87,300 22,255 31,848 9,136 70,082 2,160,324 All other loans and discounts, including bills rediscounted with Federal Reserve Bank: Dec. 31 () 0) () () C1) () C1) C1) C1) () C1) 0) Tota J J J l a a a n n n lo . . . 2 a 1 7 n 1 4 s and discounts, 5 5 5 4 3 2 5 5 5 , , 4 6 ,5" 4 0 9" 3 1 2 2 2 \2 ; , 9 9 9 2 3 1 0 3 0 , , , 7 8 8 7 1 9 0 6 0 3 3 36 6 7 8 8 0 , , , 5 2 5 2 5 5 6 6 2 2 2 2 5 6 7 5 3 3 , , , 5 9 0 0 6 9 6 0 5 7 7 7 3 1 1 , , , 1 9 2 2 0 7 2 9 8 6 5 59 2 9 ' , , 3 0 8 2 7 4 5 8 8 8 8 8 8 8 7 1 7 9 , , , 8 3 0 4 6 4 1 4 0 2 2 2 3 3 3 0 3 3 , , , 2 8 5 6 9 1 3 1 0 1 1 1 1 1 2 7 6 0 , , , 6 0 6 6 7 5 5 8 8 1 1 1 4 5 4 8 6 6 , , , 2 3 8 1 1 7 5 0 2 6 6 6 7 4 6 , , , 2 7 1 5 5 4 2 2 8 4 4 3 0 1 9 1 5 8 , , , 2 8 8 4 7 0 4 4 6 6 6 6 , , , 0 1 0 7 1 4 3 9 5 , , , 0 8 5 4 0 4 1 6 3 including bills rediscounted with Federal Reserve Bank: Dec. 31 () C1) () () () C1) () C1) C1) () C1) C1) Unit J J J e a a a d n n n . . . S 2 7 1 t 1 a 4 . t .: es bonds: 7 7 7 2 3 0 2 3 8 , , , 3 4 5 8 1 2 6 3 6 4 4 4 , , , 4 1 4 1 1 8 7 1 7 , , , 9 8 8 5 6 9 4 4 8 6 6 6 2 1 1 0 6 7 , , , 6 1 6 0 5 6 5 8 8 3 4 4 9 0 2 9 4 2 , , , 1 5 7 4 2 8 6 0 5 9 9 9 7 5 3 , , , 0 8 9 3 0 5 2 9 3 7 7 7 3 3 5 , , ,9 0 4 99 5 2 92 1 9 2 1 1 1 , , , 2 2 2 7 8 6 1 1 4 , , , 4 9 2 5 1 2 2 1 5 3 3 3 3 3 3 6 6 1 , , , 2 5 5 3 8 7 9 4 9 1 1 1 5 4 4 1 8 7 , , , 5 7 5 8 9 0 1 2 2 1 1 1 9 8 8 7 8 7 , , , 2 4 0 3 7 2 1 5 0 7 7 7 9 7 6 , , , 5 4 2 6 7 2 4 9 9 4 5 4 8 0 8 7 1 3 , , , 5 1 6 1 7 1 7 5 7 8 8 8 , , , 9 8 8 6 4 1 2 0 7 , , , 3 1 9 4 5 2 6 0 5 • Dec: 31 9,096 263,912 33,312 7,231 4,578 21,284 15,504 4,828 14,725 11,132 59,733 452,722 Jan.7 9,630 260,103 33,370 8,336 7! 271 4,587 18,027 14,245 4,821 11,770 8,575 55,711 436,506 Jan.14 9,537 258,107 33,010 7,358 7,344 4,589 15,993 14,143 4,55Q 10,710 8,400 58,465 432,206 Jan.21 9,742 254,914 33,057 9,547 7,336 4,589 17,766 13,07B 4,657' 11,535 8,349 56,554 431,152 1 Comparable figures not available. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

FEBRUARY, 1921. FEDERAL RESERVE BULLETIN. 249 Principal resources and liabilities of member banks in leading cities, including member banks located in Federal Reserve Bonk cities and in Federal Reserve branch cities as at close of business on Fridays, from Dec. 81, 1920, to Jan. 21,1921—Con. 2. MEMBER BANKS IN FEDERAL RESERVE BANK CITIES—Continued. [In thousands of dollars.] San Boston. Y N o e r w k. j j d P el h p i h la ia - . C la le n v d e . - Lo S u t. is. M ap i o n l n is e . - K C a i n ty s . as Dallas. c F i r s a c n o - . Total. United States Victory notes: Dec. 31 380 88,347 i 9,143 1,194 400 137 I 13,280 714 j 238 2,983 8,024 125,709 Tan. 7 524 84,128! 8,241 2,293 182 135 i 12,941 335 ! 236 2,227 851 7,322 119,415 Jan. 14 526 81,113 8,041 2,273 182 65 i 12,899 314 ! 2,295 852 6,187 115,233 Jan. 21 525 82,088; 8,093 2,321 182 66 } 13,091 937 2,257 852 7,863 118,761 United States certificates of indebtedness: Dec.31 8,026 135,649 13,549 1,132 378 415 9,974 3,488 569 2,160 1,137 6.324 182,801 Jan.7 6,898 119,376 11,090 2,003 345 465 7,981 1,991 635 1,378 1,017 4. 223 157,402 Jan. 14 6,170 117,381 10,553 2,170 273 465 8,255 1,735 267 2,173 1,096 4', 653 155,191 Jan. 21 13,266 137,5131 16,851 1,704 386 415 10,774 3,949 2,049 2,458 1,229 5,406 196,000 Other bonds, stocks, and! securities: j Dec. 31 j C1) C1) I C1) C1) C1) C1) () 0) C1) 0) C1) C1) Tota J J J l a a a n n n l . . . o 7 1 a 2 n 4 1 s and discounts 1 i i i 5 5 5 1 1 2 , , , 6 7 1 1 6 5 1 6 8 5 5 5 7 6 5 1 2 9 , , , 7 3 2 0 2 8 4 4 3 1 1 1 1 1 1 2 2 2 4 5 7 , , , 8 3 4 1 2 6 5 8 5 6 7 8 0 , , 8 1 3 9 5 5 3 3 3 , , , 9 9 9 9 1 5 3 6 6 3 3 3 , , , 1 1 2 5 2 4 9 1 5 1 1 1 2 3 3 9 3 3 , , , 8 6 4 4 7 2 3 6 8 3 4 4 9 1 1 , , , 8 1 0 0 6 0 0 3 8 8 8 8 , , , 2 3 2 1 8 0 0 2 6 1 1 1 7 6 6 , , , 1 6 4 3 2 4 1 1 9 3 3 4 , , , 9 9 0 7 7 8 9 0 0 - 8 93 7 , , 5 7 5 8 9 7 1 1 1 , , , 1 1 1 1 1 15 1 2 , , , 3 4 0 1 9 2 1 6 8 andmvestments^ncluding i bills rediscounted with Federal Reserve Bank: j Dec. 31 !801,250 5,614, 7731805,155 480, 264 106,997 87,119 1,489,697378,223 169,122 ! 236,206 86,801 644,504 10,900, 111 Jan. 7 ! 802,076 5,523,2251798,181 481,252 108,826 84,300 1,450,777 392,610 165,576 ! 229,73793,977 656,160 10,786,697 Jan. 14 |790,385 5,433,848i795,227 486,142 107,521 81,793 1,441,986 393, 784 162,301 ! 220,102 91,806 650,381 10,655,276 Jan. 21 1784,217 5,448,7371800,997 506,072 105,813 81,280 1,439,499 390,704163,013 ! 219,891 90,739 648,187 10,679,149 Reserve balance with Fed- i eral Reserve Bank: ! Dec. 31 | 60,719 I 604,725 62,564 24,970 4,429 4,435 134,965 30,604 10,713 j 14,704 6,638 37,312 996,778 Jan. 7 1 63,992 ! 588,376 65,029 30,319 5,999 5,260 129,804 32,928 9,901 I 20,763 4,781 33,181 990,333 Jan. 14 ! 63,588 | 571,559 57,167 27,489 6,347 4,169 134,741 31,640 8,859 I 13,247 5,254 28,455 952,515 Jan .21 i 65,249 ! 581,935 59,899 29,830 6,297 4,381 131,761 32,356 9,474 I 15,857 5,660 34, 469 977,168 ("ash in vault: Dec. 31 ( 14,628 ! 101,442) 15,776 8,784 2,029 2,140 35,565 3,945 2,355 I 3,275 2,074 9,983 201,996 Jan. 7 ' 15,964 111,669 15,697 10,069 2,328 2,352 39,618 4,738 2,700 ! 4,761 2,022 11,400 223,318 Jan. 14 15,187 102,765 14,945 9,566 1,809 2,117 I 36,015 4,648 i 2,702 ] 3,703 2,034 11,190 206,681 Jan. 21 14,148 95,076 14,807 9,865 1,748 2,051 j 34,310 4,935 I 2,466 ! 3,473 2,086 10,650 195,615 Net demand deposits: Dec. 31 602,809 14,505,054 5731,,490 213, 295 51,290 36,641 j 916,187 2201,,095 i 86,181 i 136,668 59,153 287,517 7,688,380 Jan. 7 j604,974 4,452,621587',567 214,112 57,560 37,081 | 924,: 1,002 88,164 ! 142,964 57,062 281,648 7,676,477 Jan. 14 i605,919 i4,406,118 576i!, 772 217,654 57,469 37,116 935,885 2331!,514 88,508 i 142,555 59,319 290,326 7,651,155 Jan. 21 600,496 4,307,429 576i;, 148 214,102 54,573 36,694 !911,070 2281!,653 86,470 142 T" 56,607 289, 526 7,504,663 Time deposits: Dec.31 59,034 298,415 25,679 205,391 22,108 21,952 I310,961 78,255 28,676 11,141 6,586 253,017 1,321,215 Jan.7 68,753 309,322 25,418 207,658 23,087 21,559 '308,232 80,880 28,070 \ 11,161 6,825 255,925 1,346,890 Jan. 14 [ 69,720 312,794 25,314 205,137 22,945 21,507 308,663 80,843 | 28,219 I 11,064 6,952 247,783 1,340,941 Jan. 21 68,406 292,195 26,405 230,521 23,024 21,522 307,739 81,039 \ 28,174 • 11,101 7,091 248,134 1,345,351 Government deposits: Dec. 31 14,665 127,355 19,882 9,792 860 44 | 10,777 5,054 ! 2,673 I 3,153 1,265 7,776 203,296 Jan.7 6,526 56,400 8,824 4,673 383 40 ! 4,787 2,580 j 1,164 I 1,403 560 3,451 90,791 Jan. 14 4,438 38,469 5,995 3,037 233 25 i 3,146 1,230 j 807 I 478 380 2,346 60,584 Jan.21 20,324 105,139 19,378 394 371 70 ! 7,393 5,254 ! 3,118 i 3,712 1,458 4,654 171,265 Bills payable with Federal Reserve Bank: Secured by United States Government obligations- Dec. 31 25,745 268,794 41,602 2,640 6,333 1,141 15,805) 13,240 784 i 11,925 2,772 15,776 406,557 Jan.7 22,364 257,970 39,693 3,529 2,468 1,141 13,559 9,604 826 11,616 3,250 18,598 384,618 Jan.14 15,637 228,075 43,026 4,120 2,852 941 13,825 9,253 1,201 I 7,352 1,445 13,951 341,678 Jan. 21 28,355 252,127 41,238 3,770 4,932 941 15,143 12,449 1,348 I 7,416 1,700 9,564 378,983 All other- Dec. 31 4,110 4,110 Jan.7 1,100 1,110 Jan. 14 Jan. 21 Bills rediscounted with Federal Reserve Bank: Secured by United States Government obligations— Dec. 31 18,962 122,106 37,695 954 1,308 i 12,5341 1,659 1,619 j 3,097 i 25 4,626 204,585 .Jan.7 19,337 121,148 38,333 1,147 1,067 | 12,288 1,418 1,179 2,928 293 5,463 204,601 Jan. 14 , 19,090 108,326 33,727 1,035 923 S 12,296 1,156 1,007 2,242 I 234 4,620 184,656 Jan.21 , 16,505 103,244 34,681 2,123 854 i 12,512 1,624 992 2,090 I 247 5,280 180,152 All other- Dec. 31 77,302 375,022 35,816 41,442 9,076 11,811 186,874 33,597 31,735 31,957 5,148 45,403 885,183 Jan.7 , 73,623 408,433 25,178 46,908 10,949 11,139 157,357 32,024 30,459 31,371 11,129 48,159 886,729 Jan. 14 69,418 382,280 27,818 48,009 9,271 7,876 148,473 29,549 26,105 27,923 11,367 43,510 831,599 Jan.21 53,221 438,627 22,382 49,257 8,587 7,662 145,346 29,747 26,744 24,874 10,108 43,044 859,599 1 Comparable figures not available. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

250 FEDERAL RESERVE BULLETIN. FEBRUARY, 1921. Principal resources and liabilities of member banks in leading cities, including member banks locatedin Federal Reserve Bank cities andin Federal Reserve branch cities as at close of business on Fridays, from Dec. 81,1920, to Jan. 21,1921—Con. 3. MEMBERS BANKS IN FEDERAL RESERVE BRANCH CITIES. [In thousands of dollars.] ! di Y N st o e r r i w c k t .2 i \ d C i l s a l t e n r v i d c e t - . 3 j d m i R st o i r c n i h c d - t.4 d A is t t l r a i n c t t a .6 d C is h t i r c i a c g t. o 6 1 i d S i t s . t L ri o c u t. i * s d D ist a r l i l c a t s .9 S d a i n c s i t s F r c i r o c a t n s - Total. Number of reporting banks: Dec.31 11 40 i 12 j 18 208 Jan.7 11 40 I 13 i 19 211 Jan.14 11 40 ! 13 i 20 i 212 Jan.21 11 40 i 13 ! 20 211 Loans secured by United States Government obligations, including bills rediscounted with Federal Reserve Bank: ! Dec.31 10,487 38, 835 8,104 17,136 14,376 10, 988 | 11, 364 2,890 15,680 129, 860 Jan.7 10,344 ! 37, 522 7,815 15,301 10,291 11,648 ! 11,938 2,884 16,247 123, 990 Jan.14 10,300 8,164 15,670 12, 317 11,370 j 11,376 2,784 16,288 125, 037 Jan.21 i 10,486 35,980 7,571 15,465 13,263 11, 578 ! 11,151 2,757 16,699 124, 950 Loans secured by stocks and bonds i (other than United States securities): i Dec.31 55,925 ; 152, 597 ! 32, 278 40,158 57,646 I 35, 772 : 27,141 15, 958 72,867 490, 342 Jan.7 ! 56,115 152,856 ! 27,784 38,377 64,311 [ 31,523 j 27,143 15, 969 75,086 489,164 Jan.14 i 55,630 157,298 i 29,548 39,096 63,165 I 32,024 i 27,898 16,017 I 73, 375 494, 051 Jan.21 56,251 154,103 29,327 38, 517 62, 584 i 32,113 29,129 15,915 I 74,150 492, 089 All other loans and discounts,including bills rediscounted with Federal Reserve Bank: Dec.31 C1) C1) C1) 0) (*) C1) C1) () () ; () Jan.7 110,426 308, 064 100,088 222,128 230,671 111,556 I 162,298 j 68,609 389,491 I 1,703,331 Jan.14 110,311 303, 879 96, 523 214,389 217,593 116,842 t 161,191 67,499 378, 901 1,667,128 Jan.21 10«,770 301, 783 96,127 216, 865 212, 594 115,606 i 156,310 I 66, 886 375,964 ! 1,650,905 Total loans and discounts, including bills rediscounted with Federal Reserve Bank: Dec.31 0) i) : () C1) C1) 0) C1) () () i () J J J a a a n n n . . . 1 2 7 4 1 . ] 1 1 1 7 7 7 6 6 5 , , , 2 8 5 4 8 0 1 5 7 4 4 4 9 9 9 7 1 8 , , , 4 9 8 4 4 6 2 5 6 ; I | 1 1 1 3 3 3 4 3 5 , , , 6 0 2 8 2 3 7 5 5 2 2 27 7 6 0 5 9 , , , 8 1 8 0 5 4 6 5 7 2 2 3 9 8 0 8 3 5 , , , 4 2 0 4 7 7 1 3 5 ! i 1 1 1 6 5 5 0 4 9 , , , 2 7 2 3 2 9 6 7 7 i 2 2 19 0 0 6 1 0 , , , 3 4 5 7 6 9 9 5 0 8 8 8 7 6 5 , , , 4 3 5 6 0 5 2 0 8 4 4 4 6 8 6 6 0 8 , , , 8 8 5 1 2 6 3 4 4 ! i j 2 2 2 , , , 2 2 3 6 8 1 7 6 6 , , , 9 2 4 4 1 8 4 6 5 United States bonds: D ec. 31 14,890 69,683 I 14,935 29,329 28,292 : 13,121 14,022 13,139 35, 856 233,267 Jan.7 13,631 I 68,334 ! 14,721 29,602 26, 849 ; 13,058 14,006 12,971 32,201 225, 373 Jan.14 13,454 66, 517 | 14,645 28,246 26,711 13,176 12,929 12,891 34,366 222, 935 Jan.21 13,615 | 66,090 | 14,760 28,420 26,801 : 13,009 12,846 12,877 33,605 222,023 Victory notes: Dec. 31 1,883 15,363 i 2,972 2,853 13,501 i 2,051 1.143 i 773 8,737 49,276 Jan. 7 1,518 14,810 3,164 3,154 14,884 ! 2,037 1,150 I 822 9,667 51,206 Jan.14 1,506 14,802 3,164 3,081 15,025 i 1,988 ; 1,207 832 8,559 50,164 Jan. 21 1,605 14,956 j 3,165 2,820 14,927 | 1,919 1.144 j 831 8,284 49,651 United States certificates of indebtedness Dec.31 6,125 11,169 I 2,674 2,223 17,916 I 2,506 ! 790 8,824 52,716 Jan. 7 5,798 8,024 2,165 1,830 11,437 235 i 2,272 496 7,332 39,589 Jan. 14 6,151 6,534 j 1,766 2,039 11,207 94 2,262 ! 489 7,444 37,986 Jan. 21 5,897 13,360 j 2,227 1,760 15,544 ; 251 2,204 ! 489 8,140 49,872 Othe D r e b c o .3 n 1 d s, stocks, and securities: 0) C) w I 0) 0) () ; C) C) J J J a a a n n n . . . 2 7 1 1 4 ' 7 7 7 3 5 5 , , , 8 0 1 6 2 7 2 9 5 1 1 1 8 7 7 1 4 5 , , , 4 8 8 5 4 6 3 3 1 2 1 0 9 , , 6 4 2 6 1 3 I 2 2 2 8 8 9 , , , 2 7 8 1 0 3 2 2 2 1 1 1 2 2 1 0 0 1 , , , 2 1 9 2 7 3 7 6 4 ; I 2 2 2 1 1 1 , , , 0 0 0 1 7 3 1 5 2 ! i I 2 2 2 8 7 7 , , , 1 7 0 2 9 1 9 8 8 ! : 3 3 3 , , , 3 2 5 6 7 1 3 1 1 7 7 7 0 4 6 , , , 8 2 7 4 5 3 9 3 4 - 5 5 5 3 5 4 7 2 2 , , , 9 8 9 3 6 6 9 9 9 Total loans and discounts and invest- 20,343 ments, including bills rediscounted with Federal Reserve Bank: Dec. 31 278,164 788,393 j 177,274 348,667 472,254 i 175,437 246,711 j 110,041 606,306 3,203,247 Jan. 7 271,694 764,471 j175,200 339,094 470,419 |191,089 246,605 105,262 606,758 3,170,592 Jan. 14 272,527 767,241 174,431 331,353 466,152 !196,505 244,992 103,783 593,186 3,150,170 Jan.21 271,653 762,125 I 173,520 333,059 465,940! 195,551 239,802 103,118 587,691 3,132,459 Reserve balance with Federal Reserve Bank: Dec. 31 16,516 56,679 12,288 17,794 24,119; 10,406 i 16,309 8,656 I 40,139 ! 202,906 Jan. 7 16,574 54,602 11,206 19,020 29,288 I 10,589 { 17,351 7,589 I 40,969 I 207,188 Jan. 14 16,923 54,534 j 11,757 19,741 23,016 i 10,379 ! 17,227 7,511 | 39,448 ! 200,536 Jan.21 ! 16,873 55,171 ! 11,348 18,797 23,695 ! 10,500 ! 18,342 7,738 40,139 \ 202,603 Cash in vault: Dec. 31 3,202 15,659 5,697 ! 8,844 10,383 I 3,309 ! 6,594 | 2,871 | 13,095; 69,654 Jan. 7 3,290 18,205 6,034 ! 7,096 9,487 4,435 i 7,494 j 3,013 15^010 74,064 Jan. 14 2,873 16,024 5,459 j 7,681 8,823 4,208 I 6 924 3,235 ! 15,035 ! 70,262 Jan. 21 2,788 15,928 5,222 I 6,928 8,931 i 4,301 j 7,105 | 2,710 j 14,455 ; 68,368 Net demand deposits: Dec. 31 164,852 508,754 110,070 166,007 176,842 80,762 146,976 j 66,960 296,993 I1,718,216 Jan. 7 162,924 513,394 111,143 155,783 171,258 ! 87,765 146,264 65,360 i 292,519 1,706,410 Jan. 14 158,365 521,073 108,601 I 161,644 176,311 ! 89,718 146,906 64,813 I 295,227 1,722,658 Jan.21 155,346 520,350 10S,262 j 157,521 164,410 i 91,349 147,477 ! 64,224 292,928 1,701,867 Time deposits: Dec.31 70,382 116,951 86,966 218,030 42,986 62,769 | 23,583 I 273,322 ! 913,883 Jan.7 : 73,842 115,710 16,319 87,624 225,033 ! 47,046 I 61,381 | 24,091 ! 271,437 i 922,483 Jan. 14 i 75,361 115,422 18,733 86,954 223,520 57,194 j 61,867 ' 24,218 ! 271,322 i 934,591 Jan.21 75,719 115,466 18,825 85,706 222,803 50,512 I 61,997 24,484 ! 270,941 926,453 Government deposits: Dec.31 1,057 22,692 2,416 1,816 6,394 863 i 60 1,393 ; 36,780 Jan.7 669 10,964 1,069 1,060 2,840 390 I 28 38 ! 560 ! 17,618 Jan.14 : 393 7,251 676 589 1,931 274 10 16 361 i 11,501 Jan.21 1 2,134 14,231 1,229 i 1,816 6,375 506 I 209 i 77 ! 372 1 28,949 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

FEBRUARY, 1921. FEDERAL RESERVE BULLETIN. 251 Principal resources and liabilities of member banks in leading cities, including member banks locatedin Federal Reserve Bank cities and in Federal Reserve branch cities as at close of business on Fridays, from Dec. 31,1920, to Jan. 21,1921—Con. 3. MEMBERS BANKS IN FEDERAL RESERVE BRANCH CITIES—Continued. [In thousands of dollars.] s. di Y N st o r e i r w c k t.8 d C is la l t e r n v i d c e t - .8 di m R st i o r c i n h c d - t.4 d A is t t l r a i n c t t a .5 d C is h t i r c i a c g t o .6 S di t s . t L ri o c u t. i 7 s d D ist a r l i l c a t s .9 S d a i n c s t is r F c i r c o a t . n 1 - 0 Total. Bills payable with Federal Reserve bank: Secured by United States Government obligations- Dec. 31 18,213 33,305 8,734 23,335 36,122 7,078 5,806 3,575 6,473 142,641 Jan.7 15 874 28 600 7 476 24,981 34,398 7,453 5,976 3,761 7,175 135,694 Jan.14 16,419 19,819 7,997 24,526 34,280 6,740 5,153 3,591 7,215 125,740 Jan.21 16,541 21,291 8,745 23,396 38,089 6,342 5,914 3,991 6,640 130,949 All other- Dec. 31... . 72 670 100 842 Jan. 7 40 60 130 275 505 Jan. 14 85 10 75 170 Jan. 21 105 10 115 Bills rediscounted with Federal Reserve bank: Secured by United States Government obligations- Dec. 31 1,338 9,150 2,216 5.697 6,071 4,077 1,754 619 1,769 32,691 J J a an n . . 1 7 4 1 1, , 1 1 6 0 9 0 1 9 0 ,0 1 2 0 3 1 2 1 ,9 2 9 5 4 0 5 5 ,6 5 9 6 3 0 4 5; , 9 1 7 2 7 0 4 4 , , 2 1 1 0 9 5 1 1 , , 7 6 6 8 7 7 5 51 5 9 5 1 1 , , 9 5 5 1 7 2 3 30 2 , , 8 4 8 2 0 8 Jan. 21 1,225 8,708 1,861 6,184 5,920 4,178 1,457 486 1,603 31,622 All other- Dec. 31 11,869 8,613 13,201 39,482 15,033 16,827 20,524 6,815 29,653 162,017 Jan. 7 8,920 8,480 11,968 35,857 17,135 18,464 20,264 8,697 29,366 159,151 Jan. 14 9 637 7,578 11 081 32,696 14,774 20,580 17,153 7,986 26,228 147,713 Jan. 21 10,514 4,938 10,658 32,133 12,856 19,858 15,532 6,849 23,674 137,012 1 Comparable figures not available. 6 Detroit. 7 Louisville, Memphis, and Little Rock. : * i C B i u n f c fa in lo n . ati and Pittsburgh. » s O E m l P ah a a so , D an en d v H er o , u a s n to d n O . klahoma City. & < N B e a w lti m O o rl r e e a . ns, Jacksonville, Nashville, and Birmingham. »° Spokane, Portland, Seattle, Salt Lake City, and Los Angeles. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

252 FEDERAL RESERVE BULLETIN. FEBRUARY, 1921. IMPORTS AND EXPORTS OF GOLD AND SILVER. Gold imports into and exports from United States, distributed by countries. Imports. Exports. 1 D D e 0 1 n e u 9 d c d r 2 . i i 0 a n 2 n . y g 0 g s , D 1 D e 1 1 n e u 9 c d d r 2 . i i a 0 n 3 n y . 1 g g s , c D o m e f 1 u m o 9 r D 2 n b i 0 n t e e . h g r - : , 1 J D e a 0 n 1 u n 9 d d r 2 . i i a 1 1 n n y . 0 g g s , ca T y 1 l o e 9 e 2 n t a a 0 d r l . a , r ca T 1 y l o e 9 e 1 n t a a 9 d r l . a , r 1 D D e 0 n 1 e u 9 d c d r 2 . i i a 0 n n 2 y . g 0 g s , D 1 D e 1 n 1 e u 9 c d d r 2 . i i a 0 n n 3 y . g 1 g s , c D o m e f 1 u m o 9 D r 2 n b i 0 n t e e , h g r - , 1 J D e 0 a n 1 u n 9 d d r . 2 i i a 1 1 n n y . 0 g g s , ca T y l 1 o e 9 e n t 2 a a 0 d r l . a , r ca T 1 y l 9 e o e 1 n t a 9 a d r . l a , r Belgium $433 $15,373 $15,806 $368,670 $831,002 $31,900 Denmark 700 700 200,251 2,002,666 .France . • 8,737,06113,170,98825,884,460$1,338,125 48,738,524 4,152,533 Gprcnanv 1,188 61 7,703 $10,000 Greece 280,000 280,000 60,000 533 700 95 000 9l2 Italy 40,107 241,263 454,925 430,291 592,026 2,099,356 15,000 3,3241 25,364 Russia in EuroDe 1,268,631 Spain 75,519 121,534 197,053 490,543 29,778,000 Sweden 1,458 1,319,996 1,321,454 2,036,064 661 4,937 2,604 67,570 Turkey in Europe 850 850 850 United Kingdom: England 5,616,27310,433,52122,995,1524,008,398274,982,197 4,055,739 $85,565 $85,565 98,800 2,091,066 45 Total Europe 14,712,29425,491,70351,288,6895,406,584330,800,266 4,981,741 85,565 85,565 353,57938,594,321 British Honduras 20 1 12,000 61,833 70,147 i56,028 26,315 34,196,28744,487,390 $41,571 38,324 193,907 $23,742 5,557,367 5,706,428 Costa. RICEL 31,651 32,180 608,094 616,583 Guatemala 14,872 29,267 1,400 1,400 5,845 257,414 258,255 19,000 21,300 Nicaragua 99,189 101,3741 6,018 1,256,594 1 424 217 16,500 Panama 18,093 172,434 190,527 19,228 703,645 3 401 1,390 000 Salvador 48,310 90,947 276,7771 42,000 1,440,537 1,140,' 911 20, 000 3,124,020 Mexico 127,374 177,739 409,941 57.346 4,866,163 4,464,140 97,467 89,080 274,142 968,821 18,171,68410,357,619 N P w foun dland 221 61 Cuba 245 245| 15,579 9,593 50,000 650,000 British West Indies... 1,250 1,225 7 409' 268,684 20,785 7,940 Virgin Islands of United States 525 10,000 Dominican Republic. ! 4 800 47,000 25.000 Dutch West Indies... 242,543 79,934 416 124i * wvi 1 206 881) * ™n Haiti 23 Total North America 501,048 691,615 1,591,476 193,932 44,839,81452,460,328 139^038 127,404 518,049 992,563 24,475,05120,660,807 Argentina 1,707,682 102,721 89,995,00056,560,000 Bolivia 42 42 7,416 2,582 2,500,000 Brazil . . 6,440 6,440 i90 50,205 26,200 24,250 304,250 525,000 Chile 10,658 5,828 16,908 3,178 434,504 233,837 400,000 100,000 Colombia 331,026 347,580 928,463 146,362 9,489,812 556,572 700,000 5.268.620 Ecuador 39,221 61,375 100,596 624,489 379,911 236,000! ' British Guiana 3,331 44,667 192,814 139,159 5,005 Dutch Guiana 1,329**"'6*5i7 24,728 20 144 6,300 19,795 Peru 215,100 57,650 301,167 37,115 1,371,655 814 583 3,653,376 3,383,369 12,850,000 9,205,000 Venezuela 8,556 9,249 54,291 4,615 592,990 381,981 184,00012,052,220 Total South America 614,332 481,724 1,453,903 197,977 14,496,295 2,657,690| 24,250 108,328,92689,619,009 China 1,260 28,286,75039,109,769 B Ch ri o t s is e h n I ( n K d o i r a ea) 8,000 i, 714 240,178 240,178 6,752,54934,3*66,666 Straits Settlements 6,683,454| 4:209:667 Dutch East Indies , 75,449 2,955,513 3,851,075 12,085,105! 7,365,111 French East Indies... 2,290,000! . Hongkong 30,191,91010,017,5501,672,000 195,660 2,183,860 46,72C 31,496,87240,085,969 Japan 3,000,000 14,006,385 10i;299;47694,114,189 23,000 Russia in Asia |. Total Asia 83,449 33,148,68313,870,3394,672,000 435,83816,430,423 46,720188,894,206 219,208,371 Australia 1,459,950 1,459,950 1,946,600 New Zealand 287,013"**84,"686 371,699 9 1Q1 5Rfi*i," 354,' 578 Philippine Islands 55,959 39,938 95,897 16,642 ' 965,374 581,924 102,500 British East Africa... 240 British South Africa 423 8 150 British West Africa 39,446 Canary Islands 1 7 555 7 000 Portuguese Africa 67,219 | 67^219 347,577 619,296 I Total, all countries 17,697,81526,789,666 56,335,8335,898,5841428,743,61876,534,0464,811,038 648,80717,058,2871,039,2832322,091,208368,185,248 Excess of imports or exports 12,886,77726,141,05839,277,7454,859,301106,652,609 291,651,202 1 Includes: Ore and base bullion, $17,014,000; United States Mint or assay office bars, $3,846,000; other refined bullion, $334,059,000; United States coin, $18,096,000; foreign coin, $55,729,000. 3 Includes: Domestic exports—Ore ana base bullion, $11,000; United States Mint or assay office bars, $37,200,000; other refined bullion, 1,078,000; coin, $282,294,000. Foreign exports—Refined bullion, $823,000; coin, $685,000. Excess of gold imports over exports since Aug. 1,1914, $886,408,000. Excess of gold exports over imports since June 10,1919, $214,611,000. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

FEBRUARY,, 1921. FEDERAL BESEKVE BULLETIN. 258 Silver imports into and exports from the United States, distributed by countries. Imports. Exports. 1 D D e 0 n 1 e u 9 d c d r 2 . i i a n 0 n 2 y . g g 0 s , 1 D D e 1 n 1 e u 9 d c d r 2 . i i a n 0 n 3 y g . g 1 s , c D o m e f 1 u m o 9 r 2 n b D i 0 n t e e . h r g - , 1 D J e a 0 n 1 u n 9 d d r . 2 i i a 1 n 1 n y . 0 g g s , ca T y l 1 o e 9 e n t 2 a a 0 d r . l a , r ca T 1 y l o e 9 e 1 n t a a 9 d r l . a , r 1 D D e 0 n 1 e u 9 d c d r 2 . i i a n 0 n 2 y g . g 0 s , 1 D D e 1 n 1 e u 9 d c d r 2 . i i a n 0 n 3 y g . g 1 s , c D o m e f 1 u m o 9 r 2 n b D i 0 n t e , e h r g - , 1 J D e a 0 n 1 u n 9 d d r . 2 i i a 1 1 n n y . 0 g g s , ca T y 1 l o e 9 e n 2 t a a 0 d r . l a , r ca T 1 y l o e 9 e n t 1 a a 9 d r l . a , r Belgium $1,529 $1,529 $33,957 $1,797 $684,713 Finland 17,438 France S298 3,584 $1 228 117 ZOR 75,524 $32,920 6,588,197 Germany 3,619 3,735 2,411! 3.735 Gibraltar 2,400 Greece 42,240 24,026 INtaeltyherlands. 54,861 2,094,084 Norway 200 200 14,653 1,219,430 Portugal 7,978 1,950 Spain. 94,527 228 Sweden 31 395 54,960 194,526 Switzerland 172,203 United Kingdom- England 10 87,500 88,642 925,520 61,746 $30,700 $72,400 $103,100 4,924,77815,635,386 Total Europe 5,358 87,798 97,690 3,639 1,350,400 141,467 30,700 72,400 103,100 5,012,65826,608,155 British Honduras 69,097 269,276 Canada 286,850 20,653 358,988 18,178 3,788 435 7 171 4fiQ 21,196 22,739 84,869 $158,996 7,061,755 7,854,378 Costa Rica.. . 2,164 1,882 64,986 1fi3"fifiR Guatemala 24,534 8 500 500 5,000 5.900 Honduras 4,000 3,030 7,030 43 124 2.561 211 2,621,645 10,000 10,000 459,710 205.60ft Nicaragua.. 3,136 2,992 14 496 671,921 769 921 3,000 Panama 62 62 412! 14S 2fi1 SQ 9.73 1 542,000 363,250 Salvador- 954 203 1,157 3,727,938) 1,555^969 1,500 Mexico 708,265 864,412 2,891,722 876,987 53,197,337 63.303 437 40,006 22,400 li2.3~1G 315,058 3,241,090 1,926,433 Newfoundland . 11 British West Indies... 5 7,022 6,225 700 18,600 46.908 12,628 Cuba 3,724 3,724 79,208 82,837 7,000 7.000 279,446 1,259^ 599 161 Virgin Islands of United States 1 105 25.000 Dominican Republic. I26,800 | 316,000 150,000 Dutch West Indies.. 70 2,317 300 French West Indies 20 Haiti 77 9,000 Total North America 1,003,855 891,434 3,267,914 955,079 64,463,16476,035,141 78,202 46,339 233,285 753,500 12,969,06210,519,850 Argentina 37,324! 64,433 450! 450 13.173 3,867 Bolivia . 24,015 5,959 117,841 13,000 1,397,053 132 785 Brazil 1,621 2,155 2,333 2,498 Chile... . 102,314 7,604 181,142 17,668 3,744,351 1,927 324 Colombia 84,953 17,198 105,684 2,955 846,404 271,274 2,000 Ecuador . 5,638 5,882 11,520 77,273 13,670 British Guiana 7 49 121 3,193 Dutch Guiana 14 6,390 265 1,402 5,063 Peru 5i,407 333,837 835,744 154,960 11,990,677 8,862,537 Venezuela 532 615 3 905 2,521 10,000 850,000 Total South America 268,866 370,498 1,252,553 188,600 18,102,04711,277,085 450 45o| 26,908 866,621 China 1,295,3171 100,001 691,372i 1.248.375 829,649 61.347.61077,583,367 Chosen (Korea)... 3,328 British India ! 419.197 642,408109,180,718 Dutch East Indies 83,461 2,671,555 1,773,584 French East Indies... 1" 4,' 058," 373 Hongkong 1,650 20,000 1,332,931 3,250,9801,820,610 24,872,57110,245,351 Japan 504,113 825,533 4,673,784 3,946,453 Russia in Asia 970 52,759 Turkey in Asia.. 38,511 1 ! Total Asia 83,461 4,007,033 1,796,912 100,0012,528,416 5,744,085|2,650,259j 95,595,716201,008,648 New Zealand 78 134 212 12,245! 1,566--. Philippine Islands 815 429 1,244 243 19,705 12,327 British South Africa 6 097 7fi #99 British West Africa... 11,880 17,777 Portuguese Africa 6,029 6,029 99,350 68,698 Total, all coun- 1 tries 1,285,001 1,350,293 4,625,6421,231,022^88,060,041 89,410,018! 208,9032,647,605 6,080,920|3,403,759I2113,616,224239,021,051 Excess of imports or exports 1,076,098 1,297,312 1,455,2782,172,7371 25,556,183149,611,033 ' ! ! 1 Includes: Ore and base bullion, $69,846,000; United States Mint or assay office bars, $3,000; other refined bullion, $7,869,000; United States coin, $2,094,000; foreign coin, $8,248,000. * Includes: Domestic exports—Ore and base bullion, $16,000; United States Mint of assay office bars, $4,351,000; other refined bullion, $65,877,000; coin, $14,770,000. Foreign exports—Ore and base bullion, $1,000; refined bullion, $24,085,000; coin, $4,516,000. Excess of silver exports over imports since Aug. 1,1914, $454,928,000. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

254 FEDERAL, RESERVE BULLETIN. FEBRUARY, 1921. Estimated general stock of money, money held by the Treasury and by the Federal Reserve System, and all other money in the United States, Jan. 1, 1921. General stock. U G a T H o n s r s e v i e t e l e e a d t r d s s n u i o n m S r f y t t e t a h n h a t e t s e e . s 1 F H ed B e e l a d r n a b l k y s R a o e n r s d e fo rv r e F U e T H d r n e e e S i l r a t d y a e s l s d u o t r e R u y S m t e t s a s a . i e n d te r d e s ve c s U T A e a F r n r p e e m v i i d a t e t o e a s e d u u S r a o r n y y l S u t s R t t t p a s a e i e e n t m d e - r d e s . Gold coin (including bullion in Treasury). $2,784,834,427 $433,355,085 2$1,461,644,340 $356,700,869 Gold certificates 321,154,009 211,980,124 Standard silver dollars 269,746,326 "*i7,"828,"784 * 33,668,684 64,659,594 Silver certificates. 80,353,292 71,630,620 Subsidiary silver 270,536,268 4,946,046 265,590,222 Treasury notes of 1890 1,605,352 United States notes 346,681,016 5,359,144 4 76,891,321 , 264,430,551 Federal Reserve notes 3,735,731,245 11,722,288 374,864,440 3,349,144,517 Federal Reserve Bank notes 242,164,400 5,566,830 23,347,193 . 213,250,377 National bank notes 723,277,222 15,518,080 6,049,215 I 701,709,927 Total: Jan. 1,1921 8,372,970,904 494,296,257 2,377,972,494 5,500,702,153 i $51.29 Dec. 1,1920 8,281,589,486 492,327,078 2,205,258,146 5,584,004,262 > 52.13 Nov. 1,1920 8,254,949,120 503,605,555 2,133,993,646 5,617,349,919 • 52.26 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 4,367,739,209 41.31 Jan. 1,1918 6,256,198,271 277,043,358 1,723,570,291 4,255,584,622 40.53 Julyl, 1917 5,480,009,884 253,671,614 1,280,880,714 3,945,457,556 37.88 iIncludes reserve funds held against issues of United States notes and Treasury notes of 1890 and redemption funds held against issues of national-bank notes, Federal Reserve notes, and Federal Reserve Bank notes, but excludes gold and silver coin and bullion held in trust for the redemption of outstanding gold and silver certificates and Treasury notes of 1890. 2 Exclusive of amounts held with 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. 3 Includes subsidiary silver. * Includes Treasury notes of 1890. DISCOUNT RATES OF THE FEDERAL RESERVE BANKS. Rates on paper discounted for member banks approved by the Federal Reserve Board up to Feb. 1, 1921. I Paper maturing within 90 days. — Bankers' Agricultural Federal Reserve Bank. Secured by— ac m c a e t p u ta ri n n c g es p a a a n f p d te e r r l i 9 m v 0 e a - d t s u a to r y i c s n k , g Trade Commercial within but within 6 Treasury Liberty bonds acceptances. paper n. e. s. 3 months. months. certificates of and victory indebtedness. notes. Boston 6 7 7 New York 6 7 7 6 Philadelphia.. 6 6 5* Cleveland l6 9 f 6 5i Richmond 6 6 6 Atlanta. l6 7 6 Chicago. 6 7 St. Louis 6 7 Minneapolis... 6 Kansas City... l6 6 8* 51 Dallas l6 51 f San Francisco. 6 6 1 Discount rate corresponds to interest rats borne by certificates pledged as collateral, with minimum of 5 per cent in the care of ri-iladelphia, Atlanta, Kansas City, and Dallas, and 5£ per cent in the case of Cleveland. NOTE.—Rates shown for St. Louis, Kansas City, and Dallas are normal rates, applying to discounts not in excess of a basic line 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

FEBRUARY, 1921. FEDERAL RESERVE BULLETIN. 255 CONDITION OF MEMBER BANKS. Abstract of condition reports of State bank and trust company members in each Federal Reserve district on Nov. 15, 1920. [In thousands of dollars.] D b N a is ( n o 3 t . k r 8 i s 1 c ) t . D b N a i ( n s 1 o t k 3 . r 2 s i 2 c ). t D b N a is ( n o 4 t . k r 6 i s 3 c ) t . D b N a i ( s n 1 o t 1 . k r 1 i s 4 c ) t . D b N a is ( n o 5 t . k r 5 i s 5 c ) t . D b i N a s o n ( t 7 . k r s 8 i 6 ) c . t D b i a N s ( n o t 3 k . 4 r s i 5 ) 7 c . t D b i N a s o n ( t 8 k . r 9 s i 8 ) c . tD b i N a s ( o n t 1 . k r 1 s i 3 9 c ) t . ! b N D a i o n ( s k . 6 t s r 1 ) 1 i 1 0 c . tD b N i a o ( s n 1 t . k 8 r s 1 i 4 ) c 1 . tD b N i a o s ( n . t 1 k 9 r 1 s i 6 ) 2 c . t b U S ( T a n t 1 o n i a , t k 4 t t a s 4 e e l ) 9 s d . , RESOURCES. Loans and discounts 451,785 2,118,171 193,833 498,983 113,325 204,705 ,117,461 243,442 82, 80,174 18,584 510,352 5,713,301 Overdrafts 222 903 131 266 202 861 641 379 240 192 787 5,695 Customers' liability on ac- 871 count of letters of credit 1,416 2 185 27 189 31 1,933 Customers' liability on ac- 83 countof acceptances 21,064 158,108 1,426 7,361 1,584 6,729 27,745 7,749 43 139 234,758 Liberty bonds (exclusive of 2,812 Liberty bonds borrowed).. 16,950 163,424 14,875 31,477 5,325 12,8fil 49,982 11,040 3,146 6,766 5,453 360,198 Other United States bonds 38,959 (exclusive of United States bonds borrowed) 54 241 27 | 128 5 79 556 74 135 39 38 6,222 7,598 United States Victory notes.. 5,229 34,314 4,333 8,333 1,435 2,503 30,156 2,291 451 1,868 689 10,395 101,997 United States certificates of indebtedness 12,913 77,503 8,561 7,472 531 2,188 30,339 2,775 673 1,868 19,344 164,861 War savings and thrift stamps and Treasury savings certificates 32 107 24 60 14 66 358 23 7 60 105 955 Stock of Federal Reserve bank 2,095 10,685 2,181 3,310 724 1,223 5,307 1,436 374 362 621 2,153 30,471 Other bonds, stocks, etc, (exclusive of securities borrowed) 97,590 454,918 103,489 172,615 12,395 25,954 236,787 42,039 8,825 12,970 1,295 114,349 1,283,226 Banking house 10,205 58,880 8,416 17,858 3,545 8,910 22,024 7,614 1,770 871 2,966 14,617 157,676 Furniture and fixtures 1,197 3,358 576 1,524 307 1,358 3,339 945 582 465 1,026 3,374 18,051 Other real estate owned 926 6,252 1,907 6,687 627 1,989 1,804 1,176 569 151 1,203 3,229 26,520 Lawful reserve with Federal Reserve Bank 43,282 306,625 21,743 43,602 6,537 14,965 92,991 23,899 4,189 6,816 6,572 38,222 609,443 Gold coin and certificates 1,393 6,411 387 245 385 194 2,698 618 199 164 118 2,494 15,306 All other cash in vault 15,435 47,162 6,010 13,997 2,867 33,865 4,909 1,815 2,004 3,300 11,495 148,412 Items with Federal Reserve 5,553 Bank in process of collection 15,395 56,877 5,778 8,685 2,253 17,394 13,227 463 5,015 1,850 10,130 143,515 Due from banks, bankers, 6,448 and trust companies 21,949 88,723 11,831 36,952 13,209 83,292 23,825 8,072 14,297 13,254 52,130 401,221 Exchanges for clearing house, 33,687 also checks on other banks in same place 12,229 308,997 2,777 8,174 1,413 9,295 33,611 6,040 905 2,365 1,074 11,636 398,516 Outside checks and other cash items 1,843 16,522 479 2,604 507 11,969 1,834 412 841 974 5,472 44,426 Approximate interest earned but not collected 621 14,134 1,169 1,165 108 452 2,132 873 372 151 180 2,986 24,343 Other assets 1,879 111,663 1,211 2,564 157 4,060 16,599 1,176 154 1,291 1,403 6,630 148,787 Total.. 734,288 4,045,392 391,166 874,247 167,455 344,9 1,821,077 397,573 116,026 137,621 143,315 868,060 10,041,209 LIABILITIES. Capital stock paid in 34,252 170,712 24,535 41,061 14,657 24,525 97,581 27,425 9,502 8,815 14,881 50,031 517,980 Surplus fund 37,778 185,326 48,216 69,788 9,448 16,232 80,120 21,446 3,069 3,273 5,893 22,372 502,961 Undivided profits, less expenses and taxes paid 13,938 68,720 11,381 18,634 3,957 4,749 28,377 7,262 1,881 1,319 2,415 13,285 175,918 Approximate interest and discount collected but not earned 1,791 10,631 478 1,136 310 955 3,068 1,214 186 248 193 21,898 Amount reserved for taxes accrued 1,158 12,052 651 1,706 173 968 5,239 452 134 186 203 695 23,617 Amount reserved for interest accrued 1,186 11,901 634 1,372 381 518 3,860 756 103 227 93 2,422 23,453 Due to Federal Reserve Bank. 811 1,467 176 361 323 120 2 15 35 125 4,316 Due to banks, bankers, and 881 trust companies 19,024 324,787 8,900 20,178 11,516 32,809 74,251 27,266 7,070 17,395 26,441 577,575 Certified and cashiers' or treas- 7,938 urers'checks outstanding.. 9,473 210,556 2,118 5,866 2,700 3,655 16,472 2,538 1,326 1,675 11,146 268,840 Demand deposits t36,634 1,277,496 210,819 320,512 67,245 135,121 647,967 157,499 34,162 64,436 1,315 253,612 4,685,330 Time deposits 138,292 394,124 52,357 382,548 42,017 94,131 775,574 109,590 49,777 28,487 79,827 456,833 2,523,695 U Bi n ll i s t ed p a S y t a a b te le s d w ep it o h s it F s ederal 3,778 29,768 11,771 538 992 9,906 3,692 111 1,269 19,965 2,849 74,381 Bi R lls e s p e a r y v a e b B le a o nk ther than with 11,438 142,821 18,534 7,207 6,385 13,927 42,423 11,264 1,848 5,342 41 13,917 280,506 Ca F sh e de l r e a t l t e R rs e se o r f v e c r B e a d n it k and 1,652 2,549 328 1,643 6,207 9,071 4,033 13,592 6,727 3,562 5,400 4,830 58,048 i t n ra g velers' checks outstand- 54 11,603 3 81 11 124 19 1 4 3,854 12,002 Acceptances 22.280 163,593 1,426 7,361 1,570 6,841 27,116 8,249 31 121 2,688 241,276 Other liabilities 749 27,286 944 3,022 28 364 4,961 5,294 63 412 5,028 49,413 Total.. 734,288 4,045,392 391,166 874,247 167,455 344,989 1,821,077 397,573 116,026 137,621 143,315 868,060 10,041,209 Liability for rediscounts with = Federal Reserve Bank 38,296 167,278 13,703 10,643 9,285 48,976 71,552 35,336 4,341 8,391 9,411 436,093 Liability for rediscounts with 18,880 other banks 3,689 17 211 1,747 6,933 3,687 4,803 743 2,766 520 28,690 3,528 1 One bank not reporting. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

256 FEDERAL RESERVE BULLETIN. FEBRUARY, 1921. Abstract of condition reports of State bank and trust company members of the Federal Reserve System on Nov. 15, 1920, arranged by classes. [In thousands of dollars.] Central reserve city banks. Total United States. Other re- Country serve city banks New York Chicago St. Louis Total (64 banks (182 Kl,203 Nov. 15, June 30, (32 banks). (14 (18 banks). banks). banks). 1920 (1,449 1920 (1,374 banks). banks). banks). banks). RESOURCES. Loans and discounts 1,647,339 456,330 123,958 2,227,627 2,055,222 1,430,452 5,713,301 5,682,754 Overdrafts 805 65 47 917 2,095 2,683 5,695 6,133 Customers' liability on account of letters of credit 1,323 18 189 1,530 325 78 1,933 1,797 Customers' liability on account of acceptances.. 153,861 26,136 6,270 186,267 43,741 4,750 234,758 235,587 Liberty bonds (exclusive of Liberty bonds borrowed) 125,596 6,875 4,360 136,831 119,106 104,261 360,198 360,042 Other United States bonds (exclusive of United States bonds borrowed) 95 162 257 6,694 647 7,598 11,238 United States Victory notes 22,299 3,023 410 25,732 44,822 31,443 101,997 104,451 United States certificates of indebtedness 61,963 2,773 1,821 66,557 70,045 28,259 164,861 197,263 War savings and thrift stamps and Treasury savings certificates 62 24 90 253 612 955 1,052 S O t t o h c e k r o b f o F nd ed s, e s ra to l c R k e s, s e e r t v c e . ( B ex an cl k usive of securities 8,420 2,356 11,614 11,729 7,128 30,471 29,198 borrowed) 275,046 73,792 29,447 378,285 568,505 336,436 1,283,226 1,273,900 Banking house 43,539 3,077 2,959 49,575 66,489 41,612 157,676 148,988 Furniture and fixtures 2,125 98 362 2,585 6,610 8,856 18,051 13,522 Other real estate owned 3,957 102 239 4,298 14,790 7,432 26,520 24,117 Lawful reserve with Federal Reserve Bank 261,374 47,402 16,565 325,341 185,345 98,757 609,443 593,415 Gold coin and certificates 5,753 1,654 306 7,713 3,926 3,667 15,306 20,322 . All other cash in vault 32,204 9,878 1,924 44,006 56,560 47,846 148,412 152,034 Items with Federal Reserve Bank in process of collection 39,697 11,294 8,511 59,502 67,021 16,992 143,515 133,007 Due from banks, bankers, and trust companies.. 61,397 33,508 6,627 101,532 180,960 118,729 401,221 431,583 Exchanges for clearing house, also checks on other banks in same place 300,339 18,563 3,448 322,350 60,813 15,353 398,516 384,338 Outside checks and other cash items 14,345 5,241 1,042 20,628 16,910 6,888 44,426 47,204 Approximate interest earned but not collected.. 11,012 1,099 537 12,678 7,332 4,333 24,343 25,738 Other assets 106,845 14,594 328 121,767 18,415 8,605 148,787 120,159 Total. 3,179,426 718,064 210,192 4,107,682 3,607,708 2,325,819 10,041,209 10,006,842 LIABILITIES. Capital stock paid in 121,600 37,700 13,475 175,775 188,988 153,217 517,980 493,628 Surplus fund 151,841 40,827 15,075 210,743 203,537 88,681 502,961 494,568 A U p n p d r iv o i x d i e m d a p te r o in fi t t e s r , e l s e t s a s n e d x p d e is n c s o e u s n a t n c d o l t l a e x c e te s d p b a u id t . 53,239 12,334 4; 075 69,648 60,401 45,869 175,918 150,043 not earned 8,498 2,233 747 11,478 7,042 3,378 21,898 19,632 Amount reserved for taxes accrued 10,870 4,154 278 15,302 6,478 1,837 23,617 21,346 Amount reserved for interest accrued 8,461 1,598 379 10,438 7,142 5,873 23,453 11,104 Due to Federal Reserve Bank 627 627 803 2,886 4,316 5,521 Due to banks, bankers, and trust companies 295,187 46,979 350,994 172,968 53,613 577,575 636,346 Certified and cashiers' or treasurers' checks outstanding 206,492 8,566 1,474 216,532 39,142 13,166 268,840 218,108 Demand deposits 1,822,790 328,978 90,015 2,241,783 1,451,326 992,221 4,685,330 4,851,597 Time deposits 158,640 200,276 60,701 419,617 1,248,103 855,975 2,523,695 2,426,035 United States deposits 25,674 3,482 3,446 32,602 37,000 4,779 74,381 86,498 Bills payable with Federal Reserve Bank 111,405 3,701 4,150 119,256 100,381 60,869 280,506 245,972 Bills payable other than with Federal Reserve Bank 1,289 701 1,990 20,351 35,707 58,048 39,986 Cash letters of credit and travelers' checks outstanding 11,503 70 19 11,592 382 28 12,002 17,756 Acceptances 159,348 25,525 6,770 191,643 44,934 4,699 241,276 242,369 Other liabilities 25,962 l6l 59 27,662 18,730 3,021 49,413 46,333 Total. 3,179,426 I 718,064 210,192 4.107.682 3,607,708 2,325,819 10,041,209 10,006,842 Liability for rediscounts with Federal Reserve Bank 147,162 39,786 14,460 201,408 167,234 67,450 436,092 327,513 Liability for rediscounts with other banks 3,673 3,673 13,688 11,329 28,690 16,763 Ratio of reserve with Federal Reserve Bank to net deposit liability (per cent) 13.1 12.3 15.9 13.1 10.1 7.2 10.7 10.1 1 One bank not reporting. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

FEBRUARY, 1921. FEDERAL RESERVE BULLETIN. 257 Classification of loans and discounts of State bank and trust company members of the Federal Reserve System, as shown by their condition reports for Nov. 15, 1920. [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 i No. 2 No. 3 No. 4 No. 5 No. 6 No. 7 No. 8 No. 9 No. 10 No. 11 No. 12 States (38 (132 (46 (111 (55 (78 (346 (89 (113 (61 (184 (196 (1,449 banks). banks). banks). banks). banks). banks) banks). banks). banks). banks). banks). banks). banks). On demand: Not secured by collateral. 30, 841 59,433 7,471 2,527 6,512 30,230 8,577 3,726 4,322 "3,940 18,031 204,478 Secured by Government war obligations . 2,444 32,801 5,464 4,700 757 1,087 9,120 2,236 306 127 137 1,806 60,985 Secured by other collat- i eral 68,234 632,991 98,417 97,293 15, 387 36, 589 156,165 36,685 | 3,820 7,066 8,970 27,206 1,188, 803 On time: Not secured by collateral. 252,603 50,101 162, 449 59, 311 118,830 531,726 115,060 36,364 35,747 33,365 181,625 2, 575, 222 Secured by Government war obligations 20,093 169,112 17,713 18, 558 4,628 9,115 31,184 6,789 1,055 4,004 1,946 8,923 293,120 Secured by other collateral 64,445 318, 582 21,115 74, 383 33,609 73, 091 198,475 78,230 26,098 30,501 51, 714 80,506 1,050, 749 Secured by real estate mortgages, or other real estate liens or deeds 51,799 58, 587 »,768 ! 122, 455 7,877 14,585 224, 715 33,235 16,037 9,355 8,353 200,058 753, 824 Acceptances of other banks , discounted 2,640 90,931 1,607 784 50 406 23,447 3,962 164 50 90 14,850 138,981 Acceptances of this bank pur- i chased or discounted | 987 15,102 461 211 585 439 129 17 17,969 Loans and discounts not | classified ! 252 7,378 30 261 7,921 Total loans and dis- | counts |494, C 2,375,580 208,694 509, 951 124,357 261,052 11,212,440 285,193 87,570 91,331 108, 515 533,283 6,292,052 1 One bank not reporting. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Abstract of condition reports of all member banks in each Federal Reserve district on Nov. 15, 1920 {including 8,118 national banks and 1,449 State banks and trust companies). Cm 00, [In thousands of dollars.] District District District District District District District District District District District District U T n o i t t a e l d 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 ba ( n 43 k 4 s). ba ( n 78 k 0 s). ba ( n 70 k 0 s). ba ( n 8 k 7 s 0 ). ba ( n 6 k 07 s). ba ( n 4 k 52 s). b ( a 1 n ,4 k 0 s 6 ). ba ( n 56 k 8 s). ba ( n 9 k 99 s). b ( a 1 n ,0 k 8 s 2 ).1 ba ( n 8 k 4 s 4 ). ba ( n 8 k 2 s 5 ). b ( a 9 n ,5 k 6 s 7 ). RESOURCES. Loans and discounts2 1,348,874 5,234,764 1,089,832 1,642,446 647,360 2,728,700 735,408 718,962 929,268 665,033 1,433,42718,022,660 Overdrafts 668 3,198 410 1,098 1,814 1,948 2,936 1,328 1,957 3,332 3,415 2,783 24,887 Customers' liability on account of acceptances 69,846 352,036 21,957 20,077 12,343 10,572 70,738 13,389 10,780 5,785 6,839 25,015 619,377 United States Government securities owned8 165,179 738,717 232,747 286,668 164,900 124,519 370,169 115,842 84,873 130,903 121,167 250,425 2,786,109 Stock of Federal Reserve Bank 7,670 26,234 8,455 10,351 5,248 3,966 13,778 4,305 3,382 4,424 4,084 6,847 98,744 Other bonds, stocks, and securities 4 242,837 966,939 404,794 452,891 93,220 64,077 427,648 103,017 73,260 84,458 20,906 234,100 3,168,147 Banking house 35,569 109,625 35,371 61,610 30,474 23,429 63,731 20,473 19,533 22,810 22,696 44,449 489,770 Furniture and fixtures , 3,453 8,038 4,219 5,586 3,654 4,556 9,002 3,270 4,250 5,299 5,802 10,150 67,279 Other real estate owned 3,350 10,269 5,405 13,580 3,408 4,483 6,231 3,710 I 4,296 2,792 5,818 9,078 72,420 Lawful reserve with Federal Reserve Bank 121,133 717,955 108,938 155,371 57,992 46,973 248,435 69,107 48,291 76,477 51,524 125,254 1,827,450 Cash in vault 50,172 154,136 45,924 65,779 31,747 22,267 100,779 20,049 20,373 28,640 25,192 46,009 611,067 Items with Federal Reserve Bank in process of collection 48,985 172,151 59,559 67,707 47,924 20,655 72,347 47,679 11,562 50,454 36,637 38,345 674,005 Due from banks, bankers, and trust companies 89,872 174,049 95,805 194,553 97,940 95,547 299,023 98,947 202,747 106,235 232,711 1,774,326 Exchanges for clearing house; also checks on other banks in same place 50,073 886,843 42,569 37,425 20,919 19,895 97,546 17,307 14,332 27,272 11,315 47,088 1,272,584 Outside checks and other cash items 5,929 35,919 3,566 6,623 6,011 5,612 19,043 3,483 8,354 6', 213 7,313 12,798 120,864 Redemption fund and due from United States Treasurer". 2,421 6,518 3,290 5,607 3,131 2,070 4,331 2,078 1,914 2,421 2,463 3,189 39,433 Approximate interest earned but not collected 3,201 24,866 3,570 5,532 1,622 1,426 9,531 2,553 6,561 3,503 2,173 8,038 72,576 Other assets 18,772 276,256 7,823 4,916 717 4,589 26,066 1,856 1,672 1,778 1,618 25,672 371,735 Total. 2,268,004 9,898,513 2,174,234 3,037,820 1,431,6501,103,944 J4,570,034 jl, 251,751 (1,133,2991,588,576 1,100,2302,555,37832,113,433 LIABILITIES. i Capital stock paid in 136,402 412,426 111,829 169,856 101,760 78,491 271,570 92,522 74,845 96,381 86,872 154,206 1,787,160 Surplus fund 122,586 460,964 171,3S0 176,009 73,411 54,176 191,203 52,867 38,633 51,859 49,854 76,011 1,518,953 Undivided profits, less expenses and taxes paid 57,309 203,549 49,326 72,427 27,625 19,072 81,351 25,630 23,508 27,757 24,605 47,356 659,515 Approximate interest and discount collected but not earned 9,844 33,461 6,106 7,022 4,880 3,509 12,524 4,437 2,977 4,336 3,280 4,074 96,450 Amount reserved for taxes accrued \'. \ 3,270 37,118 3,078 4,304 1,544 2,137 13,131 1,474 2,582 1,619 1,902 2,524 74,683 Amount reserved for interest accrued 1,772 17,188 2,863 3,902 2,377 1,543 6,660 1,503 1,634 1,388 522 4,251 45,603 Due to Federal Reserve Bank ... 3,450 6,677 1,671 1,330 8,090 775 2,095 245 43 91 3,357 578 28,402 Due to banks, bankers, and trust companies 133,7221,193,066 169,093 261,490 125,446 88,679 452,974 142,572 94,273 225,619 102,440 212,417 3,201,791 Certified and cashiers' or treasurers' checks outstanding 23,132 515,308 13,578 16,461 10,312 6,883 44,827 5,297 15,337 18,496 11,479 33,599 714,709 Demand deposits 1,218,6004,948,933 1,020,730 1,344,665 575,548 453,915 1,830,275 531,264 413,411 767,793 585,025 1,089,321 14,779,480 Time deposits '.'.'.'.'.'.'.'.'.'.'.'.'.'. 360,032 950,050 422,389 785,091 336,631 254,038 1,309,096 252,874 371,276 248,434 105,578 748,575 6,144,064 United States deposits 22,244 85,058 18,054 22,583 6,459 3,830 23,191 7,689 5.070 6,207 3,747 15,699 219,831 Bills payable with Federal Reserve Bank 39,469 485,477 92,084 33,443 52,399 55,629 124,758 39,489 18,753 37,853 40,757 43,639 1,063,748 Bills payable other than with Federal Reserve Bank.. 5,578 6,557 2,566 6,536 23,789 24,240 23,347 20,912 22,807 33,414 22; 157 20,329 212,232 Cash letters of credit and travelers' checks outstanding 172 15,202 129 318 28 123 1,352 38 29 206 158 610 18,365 Acceptances 75,759 369,864 23,924 20,148 12,377 10,857 70,809 14,165 10,779 5,787 6,960 26,372 647,801 National bank notes outstanding 47,512 85,196 55,555 92,107 59,025 41,144 83,838 42,051 32,117 49,030 47,384 62,432 697,391 United Statesbonis borrowed .... 5,403 37,321 8,231 15,470 9,095 3,729 19,009 10,773 4,728 9,500 2,489 5,461 131,209 Other bonds and securities borrowed 178 188 12 1,099 44 476 636 124 230 949 516 392 4,844 Other liabilities 1,570 34,910 1,636 3,559 810 698 7,390 5,825 267 1,857 1,148 7,532 67,202 Total 2,174,2343,037,8201,431,650 |l, 103,9444,570,034 1,251,751 1,133,299 1,588,576 1,100,2302,555,378 32,113,433 — Liability for rediscounts, including those with Federal Reserve Bank.6 73,857 55,985 84,270 131,218 359,995 108,897 95,024 125,558 71,477 123,722 1,917,989 1 One bank not reporting. 2 Includes customers' liability on account of letters of credit. 3 Includes United States Government securities borrowed by national banks. * Includes other bonds and securities borrowed by national banks. * Includes acceptances of other banks and foreign bills of exchange sold with indorsement or other guaranty by national banks. 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iTJEBRtjARY, 1&21. FEDERAL RESERVE 259 Abstract of condition reports of all member banks of the Federal Reserve System on Nov. 15,1920, arranged by classes (including 8,118 national banks and 1,449 State banks and trust companies). [In thousands of dollars.] Central reserve city banks. Total United States. Other Country ( N 63 e w ba Y nk o s rk ). (2 C 4 h b ic a a n g k o s).( S 23 t. b L a o n u k i s s ),(110 T b o a ta n l ks). ( c 56 i r t 0 y e s b e b a r a n v n k e k s s ). b b a (8 n a , n k 89 k s 7 ) s .1 N ( o 1 9 v 9 ,5 . 2 6 0 1 7 5, Ju ( 1 9 n 9 , e 3 2 9 3 0 9 0, banks). banks). RESOURCES. Loans and discounts 4,013,493 1,010,416 293,504 5,317,413 5,667,528 7,037,719 18,022,660 18,076,141 Overdrafts 2,728 305 3,102 5,814 15,971 24,887 22,560 Customers liability on account of letters of credit () () () () () () 11,016 Customers' liability on account of acceptances.. 343,374 60,356 10,800 414,530 188,255 16,592 619,377 651,997 United States Government securities owned 3... 500,796 40,075 27,556 568,427 776,735 1,440,947 2,786,109 2,941,655 Stock of Federal Reserve Bank 19,905 5,172 1,852 26,929 30,998 40,817 98,744 94,485 Other bonds, stocks, and securities 4 518,450 105,857 43,021 667,328 959,025 1,541,794 3,168,147 3,124,897 Banking house 74,534 12,174 7,400 94,108 172,089 223,573 489,770 464,634 Furniture and fixtures 3,145 115 809 4,069 14,594 48,616 67,279 57,763 Other real estate owned 4,788 203 1,865 6,856 28,400 37,164 72,420 69,066 Lawful reserve with Federal Reserve Bank 605,953 122,403 36,347 764,703 532,930 529,817 1,827,450 1,838,648 Cash in vault. • 105,511 34,008 4,808 144,327 175,884 290,856 611,067 621,817 Items with Federal Reserve Bank in process of collection 127,426 42,286 32,142 201,854 397,749 74,402 674,005 615,116 Due from banks, bankers, and trust companies 85,399 119,569 25,510 230,478 708,977 834,871 1,774,326 1,824,041 Exchanges for clearing house, also checks on other banks in same place , 869,024 62,872 10,885 942,781 260,744 69,059 1,272,584 1,228,799 Outside checks and other cash items 30,005 1,307 38,242 48,270 34,352 120,864 126,269 Redemption fund and due from United States Treasurer , 3,996 22 512 4,530 10,450 24,453 39,433 38,505 Approximate interest earned, but not collected 18,720 1,797 651 21,168 17,309 34,099 72,576 73,728 Other assets 269,909 21,857 594 292,360 64,637 14,738 371,735 313,164 Total. 7,597,156 1,646,417 499,632 9,743,205 10,060,388 12,309,840 32,113,433 32,194,301 LIABILITIES. Capital stock paid in 289,800 92,250 38,175 420,225 542,267 824,668 1,787,160 1,717,014 Surplus fund 371,539 82,777 24,175 478,491 494,095 546,367 1,518,953 1,480,456 Undivided profits, less expenses and taxes paid. 153,422 26,433 10,424 190,279 185,201 284,035 659,515 561,427 Approximate interest and discount collected, but not earned 27,225 7,221 2,144 36,590 32,133 27,727 96,450 93,174 Amount reserved for taxes accrued 34,783 9,987 535 45,305 20,940 8,438 74,683 Amount reserved for interest accrued 11,135 1,674 605 13,414 13,312 18,877 45,603 26,474 Due to Federal Reserve Bank 926 926 7,309 20,167 28,402 24,682 Due to banks, bankers, and trust companies 1,113,990 300,544 73,857 1,488,391 1,357,866 355,534 3,201,791 3,461,016 Certified and cashiers' or treasurers' checks outstanding 505,386 24,339 2,511 532,236 115,408 67,065 714,709 648,361 Demand deposits 3,817,025 782,357 207,567 4,806,949 4,481,461 5,491,070 14,779,480 15,087,172 Time deposits 297.142 215,844 91,113 604,099 1,879,400 3,660,565 6,144,064 5,910,926 United States deposits 72,223 10,681 5,935 88,839 94,900 36,092 219,831 260,179 Bills payable with Federal Reserve Bank 422, S82 22,936 13,264 459,082 315,084 289, 582 1,063,748 1,122,067 Bills payable other than with Federal Reserve Bank 1,417 701 2,118 73,352 136,762 212,232 155,443 Cash letters of credit and travelers' checks | outstanding 15,061 1,021 34 16,116 1,593 656 18,365 28,896 Acceptances 361,202 60,445 11,475 433,122 ! 197,664 17,015 647,801 673,565 National bank notes outstanding 37,348 347 10,100 47,795 170,693 478,903 697,391 687,653 United States Government securities borrowed. 32,819 5,604 6,755 45,178 I 52,213 33,818 131,209 130,860 Other bonds and securities borrowed 59 59 2,180 2,605 4,844 4,582 Other liabilities 31,772 1,957 262 33,991 23,317 9,894 67,202 72,665 Total. 7,597,156 1,646,417 499,632 9,743,205 10,060,388 12,309,840 32,113,433 32,194,301 Liability for rediscounts, including those with Federal Reserve Bank5 534,443 186,200 56,338 776,981 766,020 374,988 1,917,989 1,558,792 Ratio of reserve with Federal Reserve Bank to net deposit liability (per cent) 13.5 12.9 14.8 13.5 9.9 7.4 10.1 9.9 1 One bank not reporting. 2 Included in loans and discounts. s Includes United States Government securities borrowed by national banks. * Includes other bonds and securities borrowed by national banks. 6 Includes acceptances of other banks and foreign bills of exchange sold with indorsement or other guaranty by national banks. 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260 FEDERAL RESERVE BULLETIN. FEBRUARY, 1921. CONDITION OF PRINCIPAL EUROPEAN BANKS OF ISSUE, 1913-1920. BANK OF ENGLAND. [Combined data for issue and banking departments.] [From the London Economist and weekly statements of the Bank of England.] [In thousands of dollars.] Dec. 31, Dec. 30, Dec. 29, Dec. 27, Dec. 26, Dec. 25, Dec. 31, Dec. 29, 1913. 1914. 1915. 1916. 1917. 1918. 1919. 1920. ASSETS. Gold and silver 170,245 338,191 250, 510 264,275 283,899 384,994 444, 516 624,216 Government securities: Held by issue department 89, 787 89, 787 89, 787 89, 787 89,787 89, 787 89, 787 89,787 Held by banking department 64,233 72,061 159, 816 278,304 283,732 346,037 450,000 524,925 Other securities 253,729 516,998 545,416 518,094 461, 776 448,399 519,635 418,655 Total 577,994 1,017,037 1,045, 529 1,150,460 1,119,194 1,269,217 1,503,9 1,657,583 LIABILITIES. Proprietors' capital 70, 822 70,822 70, 822 70, 822 70, 822 70, 822 70, 822 70, 822 Rest (surplus) 15, 827 15,978 16,118 16,111 16,065 15, 850 15,923 16,254 Public deposits 49,913 131,067 241,755 253,624 204,439 115,059 93,500 69,615 Other deposits 297,280 623,182 544,914 616,715 604,232 725,287 879,075 854,334 Seven-day and other bills 66 116 87 107 50 50 63 39 Notes in circulation 144,086 175,872 171, 833 193,081 223,586 342,149 444,555 | 646,519 Total 577,994 1, 017,037 1, 045,529 1,150,460 1,119,194 1,269,217 I 1,503,938 1,657, 583 Ratio of metallic reserve to deposit and note liabilities combined—per cent 34.65 36.36 26.14 24. 85 27. 50 32.56 31.37 39.75 BANK OF FRANCE. [From weekly statements of the Bank of France.] [In thousands of dollars.] Dec. 26, Dec. 10, Dec. 30, Dec. 28, Dec. 27, I Dec. 26, Dec. 26, Dec. 33, 1913. 1914.1 1915. 1916. 1917. 1918. 1919. 1920. Gold in vault 678,857 799,359 967,950 652,885 639,682 664,009 694,847 685/517 Other metallic reserve. 123,532 67,750 67,953 56,910 47,798 61,441 51,731 51,402 Total vault reserve 802,389 867,109 1,035,903 709,795 687,480 725,450 746,578 ! 736,919 Gold held abroad 326,766 393,162 393,162 381,808 I 376,035 Foreign credits 203,962 159,380 150,231 450,939 250,247 I 130,849 Government securities: I Permanent investments 57,900 57,900 57,900 57,900 57,900 57,900 57,900 57,900 Advances to Government since outbreak of war 694,800 965,000 1,428,200 2,412,500 3,309,950 4,921,500 5,133,800 Treasury bills discounted (advances to ! B A Lo i d l a l v s n O a s m n t f h c o a a e e r n t e s r u d i g r G o e d n n d o i s v b G c a e o u n o r u l n d v l n i m e o e t r s n e x n n , t m e t s n p e s d n e e c e t c s i d u e ) r , i t s i e e c s urities, etc 2 1 2 9 4 2 4 9 , , , 7 6 0 0 6 7 7 6 4 2 7 1 4 0 5 1 2 0 , , , 1 0 6 4 6 8 0 5 6 2 3 1 2 2 5 8 2 1 2 4 2 1 , , , , , 8 3 0 8 5 8 0 2 5 9 2 2 0 9 0 2 2 3 1 2 5 5 4 1 1 4 8 7 9 , , , , , 3 4 3 5 7 2 0 9 9 4 6 0 2 9 5 2 2 6 1 2 3 2 2 7 6 1 1 1 6 , , , , , 3 8 4 3 0 8 0 6 0 9 6 5 0 9 5 6 2 2 1 2 8 3 0 9 1 0 4 3 8 , , , , , 7 5 1 6 5 5 1 0 3 1 7 8 1 3 3 2 2 7 1 2 8 4 2 2 1 2 8 4 0 , , , , , 7 6 2 7 9 9 1 0 1 6 2 6 3 5 8 I I j 6 4 7 3 2 2 7 6 9 7 4 2 8 , , , , , 0 9 1 9 1 8 5 6 4 4 6 9 0 7 0 Bank premises 8,536 9,702 8,895 8,935 8,960 9,121 9,005 Sundry assets 61,761 70,104 97,024 121,111 299,202 371,942 | 304.753 Total. 1,397,033 3,145,224 3,789,422 5,108,374 6,584,085 8,137,390 8,681,553 LIABILITIES. Capital 35,223 35,223 35,223 35,223 35,223 35,223 35,223 35,223 Surplus, including special reserves 8,206 8,292 8,292 8,292 8,292 8,294 10,599 Amortization account (Laws 1914,1917,1918). 84,421 135,666 201,034 Dividends unpaid 309 4,211 4,853 4,985 973 1,003 5,588 Government deposits 77,848 34,075 33,562 2,897 48,609 21,555 14,764 10,919 Other deposits 111, 796 515,687 409,896 437,124 563,088 457,143 603,973 679,256 Bank notes in circulation ,102,715 1,927,306 2,568,801 3,219,012 4,311.002 5,838,174 7,193,986 7,315,009 Sundry liabilities 60,936 85,239 82,021 137', 175 138,304 144,481 423,925 Total 1,397,033 3,145,224 3,789,422 5,108,374 6,584,085 8,137,390 8,681,553 Ratio of metallic reserve to deposit and note liabilities combined—per cent 62.09 35.00 34.39 19.40 13.97 11.48 9.56 9.21 1 No data available as at end of 1914. Incomplete data for Dec. 10 taken from the report of the minister of finance. 2 Advances on securities only. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

FEBRUARY, 1921. FEDERAL RESERVE BULLETIN. 261 GERMAN REICHSBANK. [From the Deutscher Reichsanzeiger, theDeutscher Oekonomist, and weekly statements of the Reichsbank.] [In thousands of dollars. ] Dec. 31, Dec. 31, Dec. 31, Dec. 31, Dec. 31, Dec. 31, Dec. 31, Dec. 31, 1913. 1914. 1915. 1916. 1917. 1918. 1919. 1920. ASSETS. Gold 278,453 ' 498,089 581,954 599,873 572,768 538,808 259,519 260,028 Other metallic reserve.. 65,886 8,774 7,633 3,884 43,161 4,764 4,888 1,375 Total metallic reserve 344,339 506,863 589,587 603,757 615,929 543,572 264,407 261,403 tmperial Treasury and Loan Bank certificates. 10,996 208,250 306,512 100,457 312,920 1,254,599 2,626,217 5,577,852 Notes of other banks. 3,038 1,264 '745 332 160 715 470 387 Bills, checks, and discounted treasury bills... 354,798 936,903 1,381,18a 2,287,124 3,473,873 6,530,491 9,943,548 14,443,024 Advances on collateral 22,485 5,443 3,079 2,322 1,217 1,429 2,368 1,057 Securities 96,012 8,086 12,227 19,932 21,220 37,159 39,061 43,731 Sundry assets 53,582 51,173 64,791 186,622 497,752 569,060 585,876 2,317,239 Total 885,250 1,717,982 2,358,130 3,200,546 4,923,071 8,937,025 13,461,947 22,644,693 LIABILITIES. Capital paid in 42,840 42,840 42,840 42,840 42,840 42,876 42,876 42,876 Surplus 16,671 17,726 19,171 20,342 21,453 22,629 23,700 24,834 Notes in circulation.. 617 240 1 200,924 1 646,465 1,917 007 2,729,324 5,285,182 8,503 352 16 389 353 Other liabilities payable on demand.. 188,763 418,144 561,445 1,086,281 1,915,993 3,291,924 4,066,517 5,318,318 Sundrv liabilities 19,736 38,348 88,209 134,076 213,461 294,414 825,502 869,312 Total 885 250 1 717 982 2 358 130 3 200 546 4 923 071 8 937 025 13 461 947 22 644 693 Ratio of metallic reserve to deposit and note liabilities combined—per cent 42.72 31.31 26.70 20.10 13.26 6.34 2.10 1.20 BANK OF SPAIN. [From Espana Economica y Financiera and weekly statements of the Bank of Spain.] [In thousands of dollars.] Dec. 27, Dec. 26, Dec. 31, Dec. 30, Dec. 29, Dec. 28, Dec. 27, Dec. 31, 1913. 1914. 1915. 1916. 1917. 1918. 1919. 1920. ASSETS. Gold 92,490 110,446 167,375 241,423 379,595 430,072 472,041 474,228 Silver 138,282 136,455 145,310 143,021 137,134 123,936 121,686 110,698 Total vault reserve 230,772 246,901 312,685 384,444 516,729 554,008 593,727 584,926 Credits abroad. 37,37^ 28,474 19,917 17,403 17,253 16,881 12,819 15,929 Loans, discounts, and advances 151,588 154,820 128,801 129,515 141.166 220,999 312,939 367,397 Government securities: Charter 1891.. . 28,950 28,950 28,950 28,950 28,950 28,950 28,950 28,950 Charter 1899 . 19 300 19,300 19 300 19 300 19 300 19,300 19 300 19 300 Other . . . .. 66,476 66,476 66,476 66,476 66,476 66,484 66,484 66,484 Sundry assets 18,814 29,144 31,331 25,200 16,591 43,704 8,753 77,486 Total 553,304 574,065 607,460 671,288 806,465 950,326 1,042,972 1,160,472 LIABILITIES. Capital 28,950 28,950 28,950 28,950 28,950 28,950 28,950 28,950 Surplus 3 860 3.860 4 632 5 018 5 018 11 194 11 580 12 159 Government deposits 30,052 21,855 8,661 8,656 12,112 11,933 25,113 15,932 Other deposits 92,029 117,832 137,176 146,846 185,233 225,032 199,770 225,711 Notes in circulation. 371 385 379 258 405 334 455 496 537 088 640 030 744 266 834 966 Sundry liabilities 27,028 22,310 22,707 26,322 38,064 33,187 33,293 42,754 Total 553,304 574,065 607,460 671,288 806,465 950,326 1,042,972 1,160,472 Ratio of metallic reserve to deposit and note liabilities combined—per cent 46.76 47.58 56. 73 62.92 70.36 63.17 61.26 5133 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

262 FEDERAL RESERVE BULLETIN. FEBRUARY, 1921. BANK OF BELGIUM. [In thousands of dollars.] Dec. 29,1920. Gold 51,417 51,438 Silver 5,192 5,389 Total metallic reserve 58,941 56,609 56,827 Foreign exchange and foreign credits 32,159 11,531 5,497 Bills discounted ( 122,515 75,716 146,041 Public securities 11,294 11,783 11,941 Investment of surplus 7,959 9,175 9,408 Advances on national public securities 11,860 12,126 24,459 Loans secured by foreign credits 16,396 16,338 Provincial bonds, taken over by the State (law of Nov. 14,1919) 92,640 92,640 Funds held for the National Institution of Savings 2,282 Advances to the Government for the retirement of marks deposited with the bank 1,119,400 1,061,500 Bank premises, furniture, and fixtures, net, i.e., less depreciation 2,890 2,971 3,008 Sundry assets 1,823 473 502 Total.. 251,723 1,408,820 1,428,161 LIABILITIES. Capital 9,650 9,650 9,650 Surplus 8,064 9,183 9,409 Notes in circulation 206,010 919,414 1,181,013 Deposits in current account; Government, including specie deposits 1,850 42,061 17,266 Other 22,600 427,816 209,434 Funds due to the National Institution of Savings.. 2,298 Sundry liabilities 1,251 1,389 Total 251,723 1,408,820 1,428,161 Ratio of metallic reserve to deposit and note liabilities combined—per cent. 25.6 4.1 4.0 NOTE.—Figures for the period 1914 to 1918 not available. BANK OF THE NETHERLANDS. [From annual reports and weekly statements of the Bank of the Netherlands.] [In thousands of dollars.] Mar. 31, Mar. 31, Dec. 31, Dec. 30, •Dec. 29, Dec. 28, Dec. 27, Dec. 27, 1914. 1915. 1915. 1916. 1917 1918. 1919. 1920. Gold coin and bullion. 64,346 116,097 172, 531 236,216 280,690 277,155 256,204 255,729 Sifter 3,866 751 2,491 2,808 2,825 3,435 2,453 8,518 Total vault reserve. 68,212 116,848 175, 022 239,024 283,515 280, 590 258,657 264,247 Loans and discouEts 22,348 28,791 30,692 26,807 32,891 97,964 67,883 79,123 Foreign bills 7, 657 3 1,007 3,225 3,232 3,590 19,438 21,207 Advances 38,151 81,503 37,619 34,373 43,194 56,085 100,547 99,538 G ovemment securities 50 368 4,654 1,499 4,921 5,560 Other securities 3,619 3,334 3,588 3,657 3,649 3,560 3,399 3,364 Bark premises 723 643 643 563 589 712 1,331 1 445 Sun diy assets 638 3,674 9,974 28,577 26, 256 35,821 16,344 9,026 Total. 141,398 235,164 258,545 340, 8S0 393,326 479,821 472,520 483,510 LIABILITIES. Capital 8.040 8,040 8,040 8,040 8,040 8,040 8,040 8,040 Surplus 2; Gil 2,010 2, C10 2,072 2,104 2,042 2,010 2,010 Notes ic circulation 125, 768 231, 976 304, 868 357, 890 429,717 415,158 431,002 Interest bearing certificates. 750 695 1,395 1,503 1,434 824 700 774 Government deposits 2,204 \ 677 Other deposits 3,613 33,282 9,764 21,94G 12,883 35,568 41,142 34,275 Sundry liabilities 1,216 1,221 3,156 2,457 2,298 3,630 5,470 7,409 Total 141,398 235,164 258,545 340,880 393,326 479,821 472,520 483,510 Ratio of metallic reserve to deposit and note liabilities combin ed—per cen t 52.42 52.19 71.34 72.80 74.44 60.20 56.60 £6.70 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

INDEX Acceptances: Page. Discount and open-market operations of Federal Page- Acceptance liabilities of member banks, No- Reserve Banks—Continued. vember, 1919-November, 1920 171 Bills held during December 236 Banks granted authority to accept up to 100 per Collateral notes held 236 cent of capital and surplus 188 Dollar exchange bills purchased 234 Purchased by Federal Reserve Banks— Earning assets held 233 During December 234, 236 Live-stock paper purchased 236 During three months 234 Number of banks discounting during December. 232 "Shipping documents," meaning of, as used Rediscounts and sales of paper between Federal in Board's regulations 191 Reserve Banks, Oct.-Dec, 1920 235 Australia, index of wholesale prices in 210 War paper discounted 233 Austria, financial conditions in 206 Discount rates: Bank debits during January 228-230 In effect Feb. 1 254 Bank of Belgium, condition of 262 Prevailing in various centers 215 Bank of England, condition of 260 Dividends of Federal Reserve Banks 156 Bank of France, condition of 260 Dollar exchange, countries in which banks may Bank of the Netherlands, condition of 262 accept drafts to furnish 188 Bank of Spain, condition of 261 Earnings and expenses of Federal Reserve Banks Banking situation, discussion of 140 during 1920 153-157 Branch bank at Helena, Mont., opened 141 England : British floating debt 173 Bank of, condition statement 260 Brussels conference, resolutions of, regarding inter- Debt of 173 national credits 181 Prices in; financial situation 195 Business and financial conditions, January 142-151 Failures, commercial, during year 1920 189 Canada, index of wholesale prices in 210 Federal Reserve Banks: Cancellations \ 135,158 Discount and open-market operations of 231-236 Cassel, Gustav, article by, on economic conditions Dividends paid 156 in Sweden 203 Earnings and expenses of, for year 1920 153-157 Certificates of indebtedness issued 131 Fiscal agency department expenses 157 Charters issued to national banks 189 Franchise tax paid to Government 156 Charts; Resources and liabilities of 237-241 French war financing J 80 Federal Reserve notes: Wholesale prices in the United States 212 Federal Reserve agents' accounts 242 Clearing and collection system, operations of 244 Interdistrict movement of, during 1920 243 Clearing-house bank debits 228 230 Fiduciary powers granted to national banks 189 Commercial failures during the year 1920 189 Financial condition of the Treasury 131 Condition statements; Foreign budgetary conditions 138 Bank of Belgium 262 Foreign exchange rates 136 Bank of England 260 Foreign loans floated in the United States 135 Bank of France 260 Foreign trade: Bank of the Netherlands 262 Discussion of 134 Bank of Spain 261 Index of 194 Federal Reserve Banks 237-241 Letters of credit, use of, in financing 158-171 German Reichsbank 261 Foreign Trade Financing Corporation, organization Member banks in leading cities— of 137 Abstract of, as of Nov. 15, 1920 255-259 France: During January 245-251 War financing, 1914-1920 174-181 Cotton fabrics, production and shipments 152 Advances of the Bank of France 176 Credit: Consolidation loans 179 Letters of, use of, in financing foreign trade.. 158-171 Debt of 179 Resolutions adopted by Brussels conference Foreign loans 179 regarding ] 81 National defense bills 177 Currency circulation in the United States 254 National defense bonds 178 Debits to individual account, January 228-230 Tax receipts 175 Discount and open-market operations of Federal Prices in; financial situation 198 Reserve Banks 231-236 Franchise tax paid to Government by Federal Acceptances purchased— Preserve Banks 156 During December 234, 236 Germany: During three months, distributed by ma- Prices in; financial situation 201 turities 234 Reichsbank, condition of 261 Agricultural paper held 236 Reparations payments 138 Bills discounted— Gold imports and exports 139, 252 During December 233 Government financing during January 131 During three months, distributed by ma- Harding, W. P. G., on financial conditions 134 turities 234 Helena, Mont., branch bank opened 141 31421—21 10 I Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

II INDEX. Imports and exports: Rates: rage. England 198 Bills discounted by Federal Reserve Banks 233 France 201 Discount— Japan 209 In effect Feb. 1 254 Gold 139, 252 Prevailing in various centers 215 Silver... 140,253 Earning assets held by Federal Reserve Banks. 233 Indexes: Foreign exchange 136 Foreign trade 194 Rediscounts and sales of paper between Federal Physical volume of trade 216-227 Reserve Banks 235 Retail trade 192 Reserve ratio of Federal Reserve Banks 133 Wholesale prices abroad 195-210 Retail trade index 192 Wholesale prices in the United States 211-214 Resources and liabilities: India, wholesale prices in 209 Federal Reserve Banks .' 237-241 Interest rates prevailing in various centers 215 Foreign banks of issue Italy, wholesale prices in 209 Member banks in leading cities 245-251 Japan, prices in; bank statistics 208 Review of the month 131 Knit goods production 151 Rulings of the Federal Reserve Board: League of Nations, resolutions of Brussels confer- Motor trucks as permanent investments 191 ence regarding international credits 18.1 Shipping documents to be furnished to banks Letters of credit, use of, in financing foreign trade.. 158-171 accepting drafts growing out of export or Maturities: import transactions 191 Acceptances purchased 234 Shipping, world's, before and after the war 183-188 Bills discounted and bought 234, 241 Silver imports and exports 140, 253 Certificates of indebtedness purchased 241 State banks and trust companies: Member banks: Abstract of condition reports of member banks 255-259 Acceptance liabilities of, Nov., 1919-Nov., Acceptance liabilities of members, Nov., 1919- 1920 171 Nov., 1920 172 Condition of— Admitted to system during January 188 Abstract of 255-259 Classification of loans and discounts 257 During January 245-251 Sweden, prices in; financial situation 203 Number discounting during December 232 Trade: Number in each district 232 Foreign— State banks admitted to membership 188 Discussion of 134 Money, stock of, in the United States 254 Index of 194 Motor trucks, eligibility of notes issued for purchase Physical volume of 216-227 of 191 Retail, index of 192 National banks: Wholesale, condition of 151 Acceptance liabilities of, Nov., 1919-Nov., 1920 172 Treasury certificates of indebtedness issued 131 Charters issued to 189 Treasury financing during January 131 Fiduciary powers granted to 189 Vessels : Par list, number of banks on 244 Loss of, during the war 184 Physical volume of trade 216-227 Tonnage of, before and after the war 184 Prices: War Finance Corporation, revival of 137 Discussion of 131 Wholesale prices: Wholesale, abroad 195-210 Abroad 195-210 Wholesale, in the United States 211-214 In the United States 211-214 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

NASHVILLE MEMPHIS LITTLE ROCK JO- "t"-• FEDERAL RESERVE DISTRICTS * FEDERAL RESERVE BANK CITIES O FEDERAL RESERVE BRANCH CITIES Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis