Federal Reserve Bulletin, 1921-05

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

FEDERAL RESERVE BOARD. EX OPFICIO MEMBERS. W. P. G. HARDING, Governor. EDMUND PLATT, Vice Governor. A. W. MELLON, Secretary of the Treasury, Chairman. ADOLPH C. MILLER. CHARLES S. HAMLIN. D. R. CRISSINGER, Comptroller of the Currency. W. W. HOXTON, Secretary. WALTER S. LOGAN, General Counsel. W. L. EDDY, Assistant Secretary. R. G. EMERSON, Assistant to Governor. W. M. IMLAY, Fiscal Agent. H. PARKER WILLIS, J. F. HERSON, Director, Division of Analysis and Research. Chief, Division of Examination and Chief Federal M. JACOBSON, Statistician. Reserve Examiner. E. A. GOLDENWEISER, Associate Statistician. J. E. CRANE, E. L. SMEAD, Acting Director, Division of Foreign Exchange. Chief, Division of Reports and Statistics. II 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. Bullen 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. GUbart.* E. R. Kenzel Leslie R. Rounds.* J. W. Jones.i Philadelphia. R.L.Austin.... George W. Norris. Wm. H. Hutt, jr.... W. A. Dyer. Cleveland D.C.Wills E. R. Fancher M. J. Fleming H. G. Davis. Frank J. Zurlinden.. Richmond. Caldwell Hardy. George J. Seay C. A. Peple Geo. H. Keesee. R. H. Broaddus A. S. Johnstone 2 JohnS.Waldena... Atlanta. Joseph A. McCord. M. B. Wellborn. L. C. Adelson. M. W. Bell. J. L. Campbell. Chicago. Wm. A. Heath J. B.McDougal. C. R. McKay... W. C. Bachman.i S.B.Cramer... F. J. Carr.i K. C. Childs.i J. H. Dillard.i D. A. Jones.1 O. J. Netterstrom.i A. H. Vogt. Clark Washburne.1 St. Louis Wm. McC. Martin. D. C. O. M. Attebery... J. W. White. Minneapolis. JohnH. Rich R. A. Young W S. . S B . . C G oo e k ery B Fr . a V n . k M C o . o D re u . nlop.i Kansas City... Asa E. Ramsay J. Z. Miller, jr C. A. Worthington J. W. Helm. Dallas Wm. F. Ramsey R. L. VanZandt. LynnP.Talley... Sam R. Lawder. San Francisco. John Perrin J. U. Calkins Wm. A. Day W. N. Ambrose. Ira Clerk» L. C. Pontious8... i Controller. 2 Assistant to governor. 3 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. Cincinnati branch L. W. Manning. ! Omaha branch L. H. Earhart. Pittsburgh branch ^Geo. De Camp. Denver branch C. A. Burkhardt. Richmond: ! Oklahoma City branch C. E. Daniel. Baltimore branch Morton M. Prentis. Dallas: Atlanta: y J El Paso branch W. C. Weiss. ;\. < 'New Orleans branch Marcus Walker. Houston branch E. F. Gossett. Jacksonville branch ,Geo. R. De Saussure. San Francisco: P Birmingham branch A. E. Walker. Los Angeles branch C. J. Shepherd. 1 Nashville branch J. B. McNamara. Portland branch ^Frederick Greenwood. Chicago: Salt Lake City branch R. B. Motherwell. Detroit branch R. B. Locke. Seattle branch C. R. Shaw. St. Louis: Spokane branch W. L. Partner. Louisville branch W. P. Kincheloe. Memphis branch J. J. Heflin. Little Rock branch A. F. Bailey. SUBSCRIPTION PRICE OF BULLETIN. The FEDERAL RESERVE BULLETIN is the Board's medium of communicationfwith 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, 1917, or 1918 are available. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

TABLE OF CONTENTS. General summary: Page. Review of the month 503 Business, industry, and finance, April, 1921 514 Condition of the acceptance market 534 Changes in wages 526 Methods followed by city banks in granting accommodation to correspondents 536 Official: Rulings of the Federal Reserve Board 545 Law department 547 State banks admitted to system '. 551 Fiduciary powers granted to national banks 551 Banks granted authority to accept up to 100 per cent of capital and surplus 551 Charters issued to national banks 551 Business and financial conditions abroad: England, France, Italy, Germany, Sweden 552-563 British finance during the war 563 Recent economic developments in South America 572 Price movement and volume of trade: Domestic— Wholesale prices in the United States 579 Foreign trade 583 Physical volume of trade 585 Retail trade 598 Wholesale trade 600 Commercial failures 550 Foreign— Comparative wholesale prices in principal countries 601 Comparative retail prices in principal countries 605 Foreign trade—United Kingdom, France, Italy, Sweden, and Japan 606 Financial and banking statistics: Foreign— England, France, Italy, Germany, Sweden, and Japan 608 Condition of principal European banks of issue 611 Domestic— Discount and open-market operations of Federal Reserve Banks 613 Condition of Federal Reserve Banks 620 Federal Reserve note account 626 Interdistrict movement of Federal Reserve notes 627 Condition of member banks in leading cities 628 Bank debits 634 Operations of the Federal Reserve clearing system 639 Gold settlement fund 640 Gold and silver imports and exports 641 Money outside the Treasury and Federal Reserve System 644 Discount and interest rates in various centers 643 Discount rates approved by the Federal Reserve Board 644 Charts: Quarterly receipts by British treasury, 1914-1920 566 Deposits and securities at Bank of England, also bank and currency notes, 1914-1920 570 Rate at Bank of England and on three months' treasury bills 568 Index number of wholesale prices in the United States—constructed by Federal Reserve Board for purposes of international comparisons 580 Physical volume of trade 586 Movement of principal assets and liabilities of Federal Reserve Banks 622 Movement of principal assets and liabilities of member banks 628 Debits to individual accounts 634 IV Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

FEDERAL RESERVE BULLETIN VOL. 7 MAY, 1921. No. 5 REVIEW OF THE MONTH. This state of things is of fundamental importance to banking and credit During the recent period of economic read- Relation to prospects because of the fact justment the important relacredit prospects, that complete restoration of Readjustment tionships existing between pubsoundness of banking institusituation, lie finance and banking have tions can occur only in proportion as a wellbeen apparent, as well as berounded and well-planned system of credit tween business and banking. The former is again brought into existence. Failure to phase of the subject has now become of disrestore such a condition in credit necessarily tinctly less significance than for some time implies the existence of discrepancies in busipast. Business readjustment, on the other ness progress as between different centers, hand, has continued to absorb a greater prowhile it also involves the continued existportion of public attention. It had been supence of " frozen" credit in those lines in which posed that before this time very decided readjustment has been slow and halting progress toward the completion of such reor in which the absence of demand from adjustment would have been attained. The other quarters, due to incomplete readjustfacts which have come to light during the ment and reorganization, has sufficed to hold past month or more have, however, made it back complete adaptation to new conditions. apparent that the process will be slower than While it has been customary in many quarters had been expected. The attention of the to regard the slowness of economic readjustpublic and of the banking community parment as in large measure due to the curtailticularly has therefore been closely concenment of export demand, the fact remains that a trated upon the elements or factors which are situation very closely parallel to our own exists of chief importance in the situation with a in numerous foreign countries. In fact, the view to determining which of them are disconditions in some of these countries are tinctly responsible for the slowing down of more pronounced and more seriously retarded progress toward normal conditions. A review than they are in the United States. of the existing situation shows that the out- While due weight must, of course, be given to standing features of the present problem the destruction of wealth resulting from the include wages, prices, transportation rates, and costs of raw materials, as well as the war, the* continued and burdensome tax sysrelationship of banking and credit to each tems which prevail in almost all countries, and of these fields of economic organization. to the general disorganization and uncertainty Business conditions during the month of resulting in part from disturbed currency and April reflect the varying changes in these exchange conditions, it remains true that different elements, and suggest that the these .factors taken by themselves do not significant feature in the present outlook fully explain the state of things in any one is the unevehness with which relationships country. If all have been similarly affected, between the chief factors have been adapted it is evidently unsatisfactory to attribute to one another. Recovery in business, when the condition of any one of them to reduction viewed at any particular moment, is in fact of export demand. The retardation of the distinctly irregular and uneven. readjustment process and the fact that it has 503 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

504 FEDEKAL BESERVE BULLETIN. MAT, 1921. proceeded more rapidly in some fields than in associations of middlemen and of retailers who others evidently calls for additional analysis and by agreement among themselves succeeded in explanation. The importance of such consid- sustaining prices, not perhaps at their original erations from the credit standpoint has al- level but at a level considerably above that ready been made evident. It would seem to which was warranted by changes in wholesale be true that in nearly all countries failure to prices. A third element of considerable imbring about a steady and moderate return to portance is seen in the fact that certain elenormal conditions has been in part due to the ments of cost, such as wages, had become fact that the receding power both of capital and thoroughly stereotyped as the result of law or labor, and, in fact, of all elements of cost, agreement or by decisions of semigovernhas been different in different industries and mental bodies. Perhaps the best example of to some extent in different portions of the conditions of this kind is offered by the situasame industry, or in different parts of the tion on our railways and by conditions in country. Irregularity and uncertainty in some basic lines of industry where positive the process of readjustment inflicts serious contracts or agreements extending over a hardship upon those who find their output series of years had been entered into, as, for falling in price while their expenses are example, coal mining. The effect of the but little, or not at all, changed. Particu- various retarding factors, at any rate, has been larly is the hardship of falling return and that of preventing at all times a close correfixed cost felt by the wage earner who is spondence between changes in wholesale and either partly or wholly unemployed or who changes in retail prices. The progress of the finds his income reduced at the same time situation may be best illustrated by comparathat he is able to lower but little his actual tive index numbers reflecting wholesale and cost of living. retail prices during the past year or more. From some standpoints the fundamental These in lex numbers differ materially among factor, perhaps the foremost themselves. Wholesale price Uneven price i ., . r d cti ns cause oi this unevenness m Showing of in- indexes are far more sensitive readjustment, is seen in the dex numbers. j respond far more quickly an( irregular movement of prices of commodities to changes in costs or conditions that normally move in concert. Such lack of of production than do retail price indexes. adjustment is seen at practically every stage The field covered by wholesale price indexes of the productive process, in that a fall in the has also been much more carefully studied price of raw materials is not adequately re- than has that of retail prices. Retail prices flected in the price of the manufactured vary considerably as between different localities article, nor do reductions in retail prices cor- and respond to differences in buying power respond with those in wholesale. When among consumers, differences in cost of disthe decline of wholesale prices began, several tribution, and other elements. Satisfactory factors operated to retard the parallel reduc- retail price indexes are in fact not available. tion of charges made by retailers. One ofThe Bureau of Labor Statistics publishes such these was the indisposition on the part of an index including only the prices of foodstuffs, retailers to sell below their original cost, an but no index numbers are available to show attitude in which they were supported by the movement of prices of clothing and other many wholesalers and manufacturers who important elements in the retail price field. As recognized that the collection of the amounts things stand, the purchaser of commodities at owing to them would depend upon recovery retail is in a peculiarly difficult situation, beby the retailer from the public of at least a cause of his lack of a standard by which to substantial percentage of the original cost to judge the fairness of the price which he is exhim of his goods. Another element in the pected to pay for the necessaries of life. He can situation was undoubtedly the influence of not be expected to be closely acquainted with Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

MAT, 1921. FEDEKAL RESERVE BULLETIN. 505 changes in wholesale prices from day to day, The effect of this price irregularity has been nor can he in any adequate way allow for the „„ to inflict serious hardship upon Eff ect omf price , . ,, r ., various factors which prevent such changes irregularity. some classes m the community. from being immediately reflected in the charges Such hardship is especially felt which are made to him by dealers in consum- by the farming class, since the decline in prices able commodities. The following table, how- of agricultural products has proceeded much ever, exhibits the movement of prices as shown more rapidly than the fall in prices of those by the wholesale price indexes of the Federal articles which the farmer needs in the course of Reserve Board and the Bureau of Labor Sta- his operations. Whereas certain grains and tistics and compares with them the index of cotton have gone back to prewar figures, the the retail prices of foods as published by the prices of fertilizer, agricultural machinery, Bureau of Labor Statistics. wire, tools, and others have undergone no such reduction, or in other cases have been main- Prices in the United States. tained at or near their high levels of cost. This [Average price for 1913=100.] situation has necessarily tended to bring about Wholesale Wholesale Retail an artificial distribution of the load of readprice price prices of index, index, food, justment among different classes of the com- Federal Bureau of Bureau of Reserve Labor Labor munity. Those classes which are not organized Board. Statistics. Statistics. for the purpose of keeping up charges to the 1920. other members of the community and which, J F a e n b u r a u r a y ry 2 2 4 4 2 2 2 2 4 4 8 9 2 20 0 0 1 therefore, are obliged to absorb their losses A M p a r r i c l h 2 2 6 4 3 8 2 26 5 5 3 2 2 0 1 0 1 must carry the largest proportion of the load. J M u » n y e 2 2 6 5 4 8 2 2 6 7 9 2 2 2 1 1 9 5 In thus specializing and localizing the effects A Ju u l g y ust 2 2 5 3 0 4 2 25 6 0 2 2 20 1 7 9 of readjustment a number of factors have S O e c p to te b m er ber 2 22 0 6 8 2 24 2 2 5 2 1 0 9 3 8 cooperated. Among them are the wage agree- N D o ec v e e m m b b e e r r 1 1 9 7 0 3 2 1 0 8 7 9 1 1 7 9 8 3 ments to which reference has already been Average price for the year... 233 243 203 made and which have resulted in putting some 1921. classes of workers upon an entirely different January 163 178 172 February 154 . 167 158 basis than others; also associations of business March 150 162 156 men whose object is that of maintaining prices by tacit agreement or perhaps of raising them. Special interest attaches to the irregularity Finally may be cited the cases where certain and unevenness with which changes in prices classes of payments are practically fixed in have progressed in varying groups of commodities since the peak of the price movement was amount, as, for example, railroad rates. Sufreached. The figures regularly published by fering resulting from this unevenness in the the Federal Reserve Board for this class of movement of prices both in different parts of goods exhibit this situation clearly in contrast the country, as between different products, and with the figures for the price level of 1913 taken in the retail as compared with the wholesale as a base. Such a comparative showing is field, has been the moving factor in the demand furnished in the following brief tabulation: which has made itself felt in various quarters for more extensive credit for the purpose of Index numbers of wholesale prices in the United States for carrying commodities pending the establishprincipal classes of commodities—Bureau of Labor Statistics—regrouped by Federal Reserve Board. ment of the market upon a firmer basis. It has [Average price for 1913=100.] also been responsible for much of the complaint about excessive railroad rates and for a large Raw materials. part of the demand for the immediate enact- Year and month. Fanm Animal Forest Mineral Total ment of tariff duties designed to protect speciproc1- prod- prod- prod- raw mauct5. ucts. ucts. ucts. terials. fied industries against the undue competition of foreign products in those lines in which prices January, 1921 155 119 245 220 175 February, 1921 145 114 227 207 165 have most sharply fallen. So important is the March, 1921 136 116 213 197 158 influence of this price irregularity as to demand Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

506 FEDERAL RESERVE BULLETIN. MAY, 1921. careful discrimination and analysis of the highly organized groups in standard basic infactors which have tended to promote it. dustries, however, have not as yet experienced During the past month the Federal Reserve the general reductions that have occurred in Board has instituted a survey other lines. A wage cut announced by the e wage si - ^ ^ i b field for the pur- United States Steel Corporation on May 4, e a or pose of ascertaining to what represents a step toward adjustment. extent the readjustment process has affected This condition of things naturally suggests a wages. The results of this inquiry are reviewed close connection between high elsewhere in this issue, but it may be stated Effect of high g [ high prices in not a wa es anc here that a general survey of plants which a few classes of business, while it year ago employed over 1,700,000 workers also throws a bright light upon the effect of shows a general decline in the numbers em- such high wages and high prices as one eleployed of 25 per cent; the reduction in the ment in retarding completion of the process of amount of the weekly pay roll has, however, adapting the relationship between the indusbeen even greater, i. e., 29.8 per cent, indicat- tries in which they exist and the rank and file ing that wage rates have on the average been of other industries. Such retardation takes somewhat cut. It should be said, however, place through the lessening of demand in other that as many of these plants were working a industries for the products or services turned greater number of hours per week, often over- out by the high-price industries, or may result time, a year ago, some part of the pay-roll from the fact that in those cases where the reduction is undoubtedly to be attributed to products of high-price industries are ranked this fact and may have taken place without as "necessities" they exact from the other reductions in wage rates. But supplementary industries which consume their output an information indicates that ih& actual rates paid undue share of the product of the latter. The have been reduced, this being especially true President in his opening message to Congress in the case of unskilled labor and to a certain on April 12 referred to this situation as reported extent in the case of unorganized skilled labor. to him by the Federal Trade Commission, and In some instances, especially in the southeast- said: ern portion of the United States, ordinary un- "One condition in the business world may skilled labor has sustained reductions of fully well receive your inquiry. Deflation has been 50 per cent. The great group of textile work- in progress but has failed to reach the mark ers has been affected also by wage reductions, where it can be proclaimed to the great mass of consumers. Keduced cost of basic producas have iron and steel workers in the independtion has been recorded, but high cost of living ent mills. has not yielded in like proportion. For According to information published by the example, the prices on grains and live stock Bureau of Labor Statistics, the increase in have been deflated, but the cost of bread and meats is not adequately reflected therein. It weekly full-time rates of wages of workers in is to be expected that nonperishable staples certain well-organized groups, such as the will be slow in yielding to lowered prices, but building, printing, trucking, and metal trades, the maintained retail costs in perishable foods was 89 per cent between 1913 and May, 1920. can not be justified. Such statistics of course do not take account " I have asked the Federal Trade Commission for a report of its observations, and it attrieither of increases in earnings due to overtime butes, in the main, the failure to adjust conor reductions in earnings due to unemploysumers' costs to basic production costs to the ment However it seems likely that during exchange of information by 'open-price assothe past year, i. e., since May, 1920, weekly ciations, ' which operate, evidently, within the rates of wages of these particular classes of law, to the very great advantage of their members and equal disadvantage to the conworkers have not been materially changed, suming public. Without the spirit of hostility although earnings have been very generally or haste in accusation of profiteering, some reduced as a result of lack of employment. suitable inquiry by Congress might speed the Railroad workers and coal miners and other price readjustment to normal relationship, Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

MAT, 1921. FEDERAL RESERVE BULLETIN'. 507 with helpfulness to both producer and con- operating expenses and provide for capital exsumer. A measuring rod of fair prices will penditures. Provision was thus made to pay satisfy the country and give us a business retheir security holders the same dividends and yival to end all depression and unemployment." interest which had been disbursed to the latter The report from which the President quoted during the period before the war and for conin this message, after reviewing the situation tinuing guaranties for a six months' period after and discussing conditions in the price field, the close of Government operation. When the stated the following view with respect to the reaction in business set in there was a large curquestion of readjustment as such: tailment of the volume of traffic, with the result "It should be said in conclusion that follow- that although railroads were able to reduce their ing the disordered condition of the world's wage bills by reducing their staffs of employees affairs, a shrinkage in values is inevitable and the loss of operating revenue went so far as to that normal conditions will be the more quickly restored if the producer, the laborer, the manu- wipe out in many cases their net earnings and facturer, the jobber, and the retailer will each in many cases a deficit resulted. Rates had share at once in the unavoidable loss, and again been raised to the extent of 25-40 per cent further that any effort by any element to of their then existing level by the action of the place its share of the common loss on the Interstate Commerce Commission in August, shoulders of others, and particularly of the consumer, can but result in a continuation of 1920, but these advances, like those which were the conditions under which the country is now made under Government control during the suffering." war, were not adjusted to the necessities of the A phase of the readjustment situation which different kinds of traffic, with the result that will necessarily receive very some classes of rates were raised to a point rate problem.0* careful attention as an element that was unproductive of additional revenue. in the restoration of business to Since that time considerable reductions have a satisfactory condition is the problem pre- been made in selling prices, while freight rates sented by railroad rates. The advance of have remained the same. The most general prices and costs during the war necessitated an way of measuring changes in freight rates is increase of rates during the period when the by calculating the revenue per ton per mile. roads were under Government control, which Such calculations show that before the increase amounted to between 25 and 40 per cent of in rates which occurred last summer prewar their previous level. This amount did not rates had been advanced by approximately 35 prove sufficient to furnish the roads with a rev- per cent. Since then there has been on the enue adequate to their expenses. Railroad average for the country as a whole the further wages were several times advanced during the increase of 25 to 40 per cent. While in the war, the aggregate increase amounting to 150 eastern district rates have been increased by 40 per cent of prewar wages. The increase in per cent, in the southern and western districts wages and in the number of men employed is the increases have been less. On the average, estimated to have added probably about present freight rates are approximately 72 per $2,400,000,000 to the gross wage bill of the cent above prewar. The view is frequently roads as compared with the amount disbursed expressed that a readjustment of rates will on that account in 1914. The fact that rates, probably result beneficially both to the roads even with the heavy traffic which developed and to shippers. As things stand, the effect during the war, were not sufficient to meet of the present level of rates is undoubtedly expenses is shown by the necessity the Govern- that of tending to interfere with the normal ment was under of appropriating from March movement of products and the well-developed 21, 1918, when the "revolving fund" was relationship of markets and industries. The created, down to and through the Transpor- Secretary of Commerce in some recent remarkstation Act, about $2,682,000,000 for the pur- spoke of present rates on agricultural products pose of making up to the roads the amounts as being so high that their continued maintewhieh were necessary to enable them to meet nance would necessitate a rewriting of the Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

508 FEDERAL RESERVE BULLETIN. MAT, 1921. commercial geography of the country, meaning The business situation thus parallels quite thereby that with rates at their present level closely the status of things in regard to wages or basis of adjustment various classes of pro- as already illustrated by the Board's wage ducers were unable to put their products suc- investigation. In some branches of industry cessfully into competitive markets. In this and business the volume of production restate of affairs it would seem that the result of mains nearly normal and the flow of commodiexisting conditions in the railroad rate struc- ties from producer to consumer at least reasonture is twofold, (1) railroad charges and costs ably so, while in others the reduction has been are at present retained upon a basis which has marked and decisive, just as in some branches undergone no readjustment such as has of employment considerable decline in wages is occurred in other branches of industry, so that noted notwithstanding that in others the level they exact too large a proportion of the selling of pay remains practically unaffected. Altoprice of commodities, while (2) the lack of sat- gether, therefore, business restoration may be isfactory adaptation of the rates to the various said to be progressing as fast as the conditions types of freight has resulted in preventing the of readjustment, the modification of rates, movement of some classes of commodities to wages, profits, and the like, and the economic competitive markets. Moreover, increased ex- pressure of organizations of producers and penses of delivery render it difficult or impossi- employees will permit. ble for consumers to purchase freely so long as The conditions which have tended to retard they are not able to get higher prices for their readjustment in the United Foreign busi- l H own products than are now prevalent. ness position. gtates have in neary aJ cases The condition of business is illustrated by operated in a similar way in Domesticbusi- the index numbers of produc- foreign countries. There has been the same ness indexes. tion and trade regularly com- difficulty in bringing about a parallel change puted by the Board, notwithstanding that they in retail and wholesale prices abroad that has are, as heretofore remarked, necessarily about been experienced in the United States, while 30 days behind the date of publication. The the difficulties growing out of the fact that latest figures for these indexes are, however, some industries adapted themselves to the new presented herewith: conditions much more rapidly than others have given rise to the same one-sidedness in the new [000 omitted.] development that has been witnessed here. Added to these general—not to say universal— February, 1921. March, 1921. March, 1920. obstacles to the restoration of a harmonious price and cost situation has been the difficulty Total. t R iv e e la . - Total. R ti e v l e a . - Total. t R iv el e a . - of foreign trade growing out of fluctuations in exchange. The past few weeks have seen but Receipts of live stock at 15 western markets (head) 4,738 94.7 4,700 93.9 5,004 100 little improvement in this regard and the gen- Receipts of grain at 17interior centers (bushels) 66,515 97.9 78,899 116.1 67,920 100 eral outlook has been if anything impaired as a S S i h g i h p t m re e c n e ts ip ts o o f f c l o u t m to b n e ( r bal r e e s - ) 745 93.5 554 .5 797 100 result of the delay in effecting a satisfactory ported by three associa- settlement of the German reparations question. tions (million feet) 538 59.1 664 72.9 910 100 Bituminous coal production Lack of such settlement has seriously inter- (short tons) 30,851 65.9 30,328 64.8 46,832 100 Anthracite coal production rupted trade between the central empires and (short tons) 7,845 99.8 7,603 96.8 7,857 100 Crude petroleum production other countries, while it has left producers and (barrels) 35,348 98.6 40,802 113.8 35,831 100 Pig-iron production (long exporters throughout the allied nations in a tons) 1,937 57.4 1,596 47.3 3,376 100 Steel-ingot production (long condition of doubt with reference to the date tons) 1,749 53.0 1,571 47.6 3,299 100 Cotton consumption (bales).. 396 68.7 76.0 576 100 at which the return of less uncertain conditions mightbe expected. Labor controversies in some As shown by an analysis of these figures, but of the allied countries also have tended to check, little reduction in volume or activity is re- or even have stopped, the production of essenvealed in some classes of business, while in tial commodities such as coal and have thereby others the reaction has been very pronounced. limited the scope of actual foreign trade. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

MAT, 1921. FEDERAL RESERVE BULLETIN. 509 The movement of exchange rates has been as 407,000,000 pounds a year ago. Exports of follows: wheat, corn, and barley, however, continue to Foreign exchange rates. move in larger volume than in the same month of 1920. In the nine months ending Week ended— March, 1921, wheat was exported to the Apr. 2. Apr. 9. amount of 224,000,000 bushels, compared with 95,000,000 bushels in the similar period of High. Low. High. Low. 1919-20. These official trade statistics indicate that our foreign trade is at last returning England 3.9350 3.9038 3.9288 3.8788 France .0705 .0691 .0715 .0698 to a more normal balance between exports and Italy .0419 .0400 .0442 .0413 Spam .1405 .1395 .1400 .1382 imports, and if there is anything unexpected Germany .0161 .0158 .0164 .0161 Switzerland .1743 .1722 .1734 .1722 in the latest returns it is that the readjustment Sweden (Stockholm) .2370 .2315 .2370 .2335 Holland .3463 .3435 .3470 .3442 has been so long delayed. The unfortunate Belgium .0736 .0722 .0745 .0727 Argentina .3369 .3333 .3321 .3188 feature of the present trade situation is in the China (Hongkong) .4888 .4788 .4938 .4788 China (Shanghai) .6513 .6288 .6563 .6338 inability of many foreign countries to meet Japan (Yokohama) .4825 .4825 .4825 .4825 Canada .8875 .8813 .8950 .8863 their obligations, with an accompanying cur- Bar silver in New York .5825 .5638 .5900 .5725 tailment of export credits extended by us in this country. Under these circumstances the Week ended— improvement of our export trade on a scale at Apr. 16. Apr. 23. all commensurate with our agricultural and industrial capacity therefore presents an im- High. Low. High. Low. portant commercial and financial problem. England 3.9250 3.8863 3.9438 3.9200 Figures for European countries, while not yet I F t r a a l n y ce . . 0 0 7 4 1 9 5 4 . . 0 0 7 44 0 4 7 . . 0 0 7 4 3 8 6 8 . .0 0 4 7 6 1 5 2 available in detail, are likewise reported to S G p e a r i m n any . . 1 0 4 1 0 6 1 3 . . 1 0 3 1 8 5 0 7 . .0 1 1 3 6 9 1 0 . . 1 0 3 1 8 3 1 8 show a very material slowing down in the Switzerland .1736 .1727 .1733 .1729 movement toward recovery, due to the diffi- Sweden (Stockholm) .2385 .2355 .2380 .2359 Holland .3468 .3450 .3484 .3460 culties which have already been sketched and Belgium .0745 .0734 .0755 .0731 Argentina .3259 .3177 .3179 .3154 which have been generally reflected in a China (Hongkong) .5138 .4938 .5188 .5038 China (Shanghai) .6688 .6538 .6738 .6588 decline of buying power in most of the coun- Japan (Yokohama) .4825 .4825 .4825 .4825 Canada .8925 .8825 .8925 tries of the world. In those countries, like Bar silver in New York .6375 .5863 .6200 some of the South American States where In so far as relates to our own trade with moratoria have been declared, further importaforeign countries, the tenden- tion, particularly from the United States, has Foreign trade. ^ ^^ wepe noted ft m(mth been brought almost to a standstill because ago have become increasingly plain with the of the difficulty of absorbing and paying for publication of the official figures for March. goods which were already on hand. The value of exports declined to $387,000,000, Eeflection of the unevenness of readjustas compared with $489,000,000 in February and ment can be seen in the bank- $820,000,000 for March, 1920. Imports, on the suUs^oVunevIn in§ situation in various Parts other hand, which are reported at $252,000,000, readjustment. of the country. It is illusshow somewhat of an increase over the low trated by the rapid growth of figures recorded in January and February, reserves and lending power in some of the although remaining at only about one-half the reserve districts as compared with a much level of imports in March of last year. The slower development under these heads in drop in exports is due partly to price declines, other districts. As has been shown in an but the fact remains that exports of many lines earlier number of the BULLETIN, it has been of goods, more especially manufactures, are at true throughout the readjustment process that a standstill. Among raw materials the most certain of the Federal Reserve Banks were connoticeable reduction in the quantities exported tinuous and steady lenders while other Federal occurs in the case of cotton, the exports of which Reserve Banks were and have since continued in March were 195,000,000 pounds as against to be during much of the past winter and Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

510 FEDERAL RESERVE BULLETIN. MAY, 1921. spring borrowers or rediscounters at other Parallel information is obtained when atten- Federal Reserve Banks. The growth of re- tion is given to the position of the member serve resources in some of the Federal Reserve banks in the several districts. Figures on that Banks which have been steady lenders to others subject show that the extent of accommodahas resulted in some unusually high reserve tion required by member banks in some parts percentages within the past few weeks. At of the country and the duration of the period the Federal Reserve Bank of Boston, for ex- for which they require funds is very much ample, there has been a steady accumulation greater relatively speaking than elsewhere. of reserve funds which has brought the cash One of the best indications of the character reserve of the bank as high as about 74 per of the business situation is cent of its outstanding liabilities. On April 15 Credit activity. afforded by the debits to indithe Federal Reserve Bank of Boston accord- vidual deposit account which ingly announced a 6 per cent rate on 90-day the Board has gathered on a weekly basis for commercial paper, at the same time, however, nearly three years past. Reference has raising its rate on notes secured by Government already been made on a former occasion to the obligations from 5J per cent to 6 per cent, and showing afforded by these indexes. In recent thus putting into effect a uniform 6 per cent months the credit activity index points to a rate applicable to all classes of paper offered to very sharp reduction in the use of bank deposit it for rediscount by its member banks. A re- accounts. The latest figure computed upon a duction to 6J per cent on all classes of com- monthly basis is $34,160,000,000 for March, mercial paper was announced by the Federal 1921, while the general course of events in con- Reserve Bank of New York on May 4. No other nection with these indexes may be observed in changes were announced prior to that time. the following table: During the autumn and winter of 1920-1921, Volume of business as shown by debits to individual acthe development of interreserve bank accomcounts. modation reached a high point. But in recent [In millions of dollars.] weeks there has been a steady reduction in the April, 1920 41,598 amount of such interbank indebtedness pro- May, 1920 41,375 June, 1920 39,779 duced by the gradual liquidation of interbank July, 1920 39,910 accommodations. The amount thus advanced August, 1920 36, 334 September, 1920 37,195 had been cut to $17,437,000 by April 22. The October, 1920 40,503 following table shows the reserve position of November, 1920 39,877 December, 1920 41,834 the several Federal Reserve Banks, both with January, 1921 38,310 and without the adjustment which is due to February, 1921 29,915 March, 1921 34,160 consideration of the advances made to them by April, 1921 32,470 others. As shown by these figures, a falling off in the activity of credit during recent months is Reserve ratio of 12 Federal Reserve districts, Apr. 22, 1921. observable, although an upward movement in District. Actual. Ad- March is noted. With this should be comjusted.* pared the situation revealed in the recent Per cent. Per cent. report of the Comptroller of the Currency, No.l Boston) 71.9 72.4 No. 2 New York).... 53.9 54.6 which shows a decline of about $1,500,000,000 No. 3 Philadelphia). 54.8 54.8 No. 4 Cleveland) 67.0 68.3 in the total deposit accounts of all national No. 5 Richmond)... 42.7 37.6 No.6 Atlanta) 45.7 45.7 banks since a date approximately a year ago. No. 7 (Chicago). 48.1 48.1 No. 8 (St. Louis) 57.0 57.0 This falling off of about 10 per cent in the gross No. 9 (Minneapolis) — 39.8 39.8 No. 10 (KansasCity)... 42.3 42.3 outstanding amount of national-bank deposits No. 11 (Dallas) 40.6 33.5 No. 12 (San Francisco). 56.2 56.2 is the result of the lessened activity of credit. System. 54.1 54.1 Borrowers who find the activity of their credit reduced naturally endeavor to curi Adjusted to eliminate the effect of rediscount operations. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

MAT, 1921. FEDERAL RESERVE BULLETIN. 511 tail the amount of balances upon which they During the month ending April 10 the net are paying interest at the banks, so that, a inward movement of gold was decline in the total volume of credit out- ver impo^safd WWOOO, as compared with standing may be expected to follow a corre- exports. a ne^ inward movement of sponding decline in the activity of credit it- $61,768,000 for the month endself. A survey of the returns from +,he several ing March 10. Net imports of gold since districts shows a considerable amount of August 1, 1914, were $1,067,032,000, as may variation in the relative degrees of credit be seen from the following exhibit: activity, the falling off seeming most note- [In thousands of dollars.] worthy in those regions where the reduction of industrial operations has resulted in a smaller Excess of turnover for wages and being less marked in Imports. Exports. im o p v o e r r ts those portions of the country where large exports. disbursements are steadily made for con- Aug. 1 to Dec,.31,1914. 23,253 104,972 181,719 sumptive purposes, as in centers of population, Jan. 1 to Dec.31,1915.. 451,955 31,426 420,529 Jan. 1 to Dec.31,1916.. 685,745 155,793 529,952 where distributive industry has been less Jan. 1 to Dec.31,1917.. 553,713 372,171 181,542 Jan. 1 to Dec.31,1918.. 61,950 40,848 21,102 sharply affected than manufacturing. Jan. 1 to Dec.31,1919.. 76,534 368,185 1291,651 Jan. 1 to Dec.31,1920.. 417,181 322,091 95,090 Treasury finance operations during the past Jan. 1 to Apr.10,1921.. 196,707 4,520 192,187 month have included further is- Total. 2,467,038 1,400,006 1,067,032 sues °^ certificates and the set- 1 Excess of exports over imports. tlement of interest due on the fourth Liberty loan. Total ordinary receipts France furnished $44,652,000 and England for the month have been $296,170,666, and $18,471,000, or about 48 and 20 per cent, ordinary disbursements $494,091,190, resulting respectively, of the $92,403,000 of gold imin a deficit on ordinary account of $197,920,524. ported during the monthly period ending The March 31 daily statement of the United April 10, Canada, Sweden, Netherlands, China, States Treasury shows that the total receipts British India, and South American countries from income and excess-profits taxes had furnishing most of the remainder. Of the amounted to about $727,000,000 as compared gold exports, amounting to $508,000, over with approximately $918,000,000 on the cor- two-fifths, or $244,000, was consigned to responding date a year ago. This shows a de- Mexico and the remainder to Canada and cline of less than $200,000,000 in the total re- Hongkong. Since the removal of the gold ceipts from income and excess-profits taxes embargo, on June 7, 1919, total gold exports and is a much more favorable outcome than have amounted to approximately $680,407,000, had been expected. Most predictions had the net exports amounting to $29,422,000. Of placed the income and excess-profits taxes re- the total exports, $195,414,000 was consigned turned at a decidedly lower level. The total to Japan, $146,555,000 to Argentina, $72,038,of Treasury certificates offered during the 000 to Hongkong, $67,396,000 to China, month was $150,000,000 and the amount $41,052,000 to British India, $29,778,000 to allotted $190,511,500. Transactions have pro- Spain, and the remainder principally to ceeded with comparatively little disturbance Mexico, Uruguay, the Dutch East Indies, to banking and financial conditions during the Canada, the Straits Settlements, and Venemonth, the withdrawals from banks being well zuela. distributed and at no time of sufficient amount During the same monthly period the net to cause serious disturbance. In consequence inward movement of silver was $860,000, as there has been neither stringency nor plethora compared with a net inward movement of in the financial markets which could be directly $1,275,000 for the month ending March 10. traced to Government operations whether in Net exports of silver since August 1, 1914, connection with taxation, sale of certificates, were $455,600,000, as may be seen from the or disbursement of interest. following exhibit. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

512 FEDERAL RESERVE BULLETIN. MAT, 1921. [In thousands of dollars.] at the close of the period shows a decline of only one-half per cent from the March 25 total. Excess of Imports. Exports. exports A larger relative reduction is seen in the over imports. total figures of accommodation of the reporting member banks at the Federal Reserve Banks. Aug. 1 to Dec. 31,1914 12,129 22,182 10,053 Total borrowings from the Reserve Banks de- Jan. 1 to Dec. 31,1915 34,484 53,599 19,115 Jan. 1 to Dec. 31,1916 32,263 70,595 38,332 clined almost steadily from $1,764,000,000 to Jan. 1 to Dec. 31,1917 53,340 84,131 30,791 Jan. 1 to Dec. 31,1918 71,376 252,846 181,470 $1,583,000,000, or from 11 to about 10.1 per Jan. 1 to Dec. 31,1919 89,410 239,021 149,611 Jan. 1 to Dec. 31,1920 88,060 113,616 25,556 cent of the banks' aggregate loans and invest- Jan. 1 to Apr. 10,1921 14,414 15,086 672 ments. For the member banks in New York Total 395,476 851,076 455,600 City, a reduction of accommodation at the Mexico furnished over 58 per cent, or local Reserve Bank from $605,000,000 to $542,- $2,035,000, of the $3,509,000 of silver im- 000,000, and a decline in the ratio of accomported during the monthly period ending modation from 11.7 to 10.8 per cent, are noted. April 10, the remainder coming principally In the following table are shown figures of from Peru, Canada, Honduras, and Chile. principal items in the weekly statement of Silver exports, amounting to $2,649,000, were reporting member banks: consigned principally to England, British Reporting member banks. India, Japan, China, Hongkong) and Canada. [In millions of dollars.] Loan liquidation by member banks continued during the month in Redissit T ua h t e ion. banking m fl o e ( c j t e e r d a t e in v ol r u e m du e c ti a o n n d o is f r d e- e- Date. r N b e i e p u n r o m o rt - f - d L i o i s n a c a v n o n e s u d s n a t n - ts d 1 a p c n a w o d y u i a b t n b h i t l l s l e s a R c d c a a o t t m i i o o m n o o f - N m e d a t e n - d d eposits and of borrowings from the Federal ments. R Fe e d se e r r v a e l (3-*-2). Banks. Reserve Banks. Government operations were 3. not sufficiently heavy to neutralize the effect of commercial loan liquidation, with the conse- Per cent. Mar. 25. 823 15,983 1,764 11.0 10,186 quence that the reserve ratio of the Federal Apr. 1.. 822 15,903 1,685 10.6 10,271 Apr. 8.. 821 15,777 1,630 10.3 10,204 Reserve Banks shows a rise of more than 3 Apr. 15. 820 15,756 1,581 10.0 10,263 Apr. 22. 821 15,629 1,583 10.1 10,127 per cent during the four weeks between March 25 and April 22. During this period total loans i Including rediscounts with Federal Reserve Banks. and discounts of reporting member banks For the four weeks between March 25 and show a continuous decline by about $354,- April 22, the Federal Reserve Banks report 000,000, all classes of loans sharing in the further liquidation of $172,800,000 of disgeneral decline—loans secured by Govern- counted bills, of $18,600,000 of purchased acment obligations to the extent of $22,000,000; ceptances, and of $10,200,000 of Treasury cerloans secured by corporate obligations to the tificates, largely "Pittman" certificates held extent of $54,000,000, and other loans and on deposit with the Treasurer of the United discounts, composed largely of commercial States to secure Federal Reserve Bank note loans proper, to the extent of $233,000,000. circulation. On March 31 and April 15 the Changes in the investment block were less Government redeemed $3,500,000 of these uniform. Thus the banks report an increase of certificates from the New York and Chicago about $7,000,000 in their holdings of United banks upon deposit by these banks of equiv- States bonds and notes, and liquidation of about alent amounts of lawful money to reduce $36,000,000 of Treasury certificates, notwith- their liabilities upon Federal Reserve Bank standing an increase in holdings of $69,000,000 notes, while on March 29 and April 19 it reported on April 15, in consequence of the al- redeemed $10,000,000 of Pittman certificates lotment on that date of $190,511,500 of loan held as excess collateral by the Boston, New certificates. Considerable fluctuations are York, Philadelphia, Atlanta, Chicago, and shown in net demand deposits, though the total Dallas banks. An increase of $3,300,000 is Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

MAT, 1921. FEDERAL RESERVE BULLETIN. 513 shown in the holdings of other certificates, Some of the principal changes in the status composed largely of certificates taken over of the Federal Reserve Banks are brought out from nonmember banks under short-term re- in the following exhibit: purchase agreements. In consequence of the Federal Reserve Banks. above changes, total earning assets of the [In millions of dollars.] Federal Reserve Banks show a continuous Bills discounted. decline for the four weeks of $201,700,000, and Federal on April 22 stood at $2,490,700,000, or 27 per Secured by Reserve United Total notes in Rec 1 e 9 n 2 t 0 , b e a l n ow d a t b h o e u f t ig 2 u 2 re p r e ep r o c r e t n e t d b o e n lo w O ct t o h b e e r t o 1 t 5 al , Date. G S m o t v a e t e n e r t s n- ot A h l e l r. deposits. l a c a c i t r t i c u o u a n - l . r s a e t r i v o e . obligashown on the corresponding date last year. tions. Rediscounting operations are reported by the Richmond and Dallas Reserve Banks. On A M p ar r . . 2 l. 5 1,0 9 1 5 0 1 1 1 , , 2 2 7 6 6 4 1 1 , , 8 7 4 8 1 9 2 2 , , 9 9 3 0 1 8 5 52 0 . . 4 8 April 22 these two banks had outstanding with A A p p r r . . 1 8 5 . 9 9 3 2 6 9 1 1 , , 2 1 1 7 9 5 1 1 , , 7 7 4 5 5 5 2 2 , , 8 8 9 6 4 9 5 5 3 3 . . 7 5 the Boston, New York, and Cleveland banks Apr. 22 943 1,171 1,749 2,857 54.1 a total of $17,400,000, of which $10,000,000 The Federal Reserve Board on April 13-15 represented the amount rediscounted by the held conferences with the gov- Richmond bank with the Federal Reserve Meetings and j certain of the direc- Bank of New York. ernors an( tors of the several Reserve Total deposits show a decline for the period Banks in Washington. A portion of the session of $91,500,000, all classes of deposits, but was devoted to a general review of credit conlargely those on Government account, sharing ditions throughout the country and to discusin the decline. Federal Reserve note circulasion of current rates of interest and discount. tion continued its decline from $2,930,700,000 The situation of the member banks and the to $2,856,700,000, or at an average weekly rate extent to which they are required to get addiof $18,500,000. Between December 23, 1920, tional accommodation was also taken under and April 22 of the present year the decline in careful advisement. Federal Reserve note circulation amounts to $548,200,000, or to 16 per cent, while as com- Index-Digest of Federal Reserve Bulletin. pared with the total reported on the corre- The Federal Reserve Board will publish sponding Friday last year, the decline is shortly, primarily for its use and that of Fed- $211,600,000, or 7 per cent. There is also eral Reserve Banks, an index-digest of the noted a reduction during the four weeks under prepared by Mr. review of $15,900,000 in the Reserve Banks' FEDERAL RESERVE BULLETIN, C. S. Hamlin, one of its members. The digest net liabilities on Federal Reserve Bank notes, covers the first six volumes of the as against a reduction of $13,500,000 in the BULLETIN, from the years 1914 to 1920, inclusive, and amount of Pittman certificates held by the contains an abstract of all published decisions banks. and rulings of the Federal Reserve Board and A further gain for the period of $87,300,000 of the other matter contained in the is shown in gold reserves, as against a loss of BULLETIN. The Board will print a sufficient number of $16,500,000 in other reserves. Since the becopies to supply the demand of banks and ginning of the year gold holdings of the Federal others who may desire to purchase it. Reserve Banks, largely through purchase of The price will be $2 per volume, bound in imported gold, have increased by $235,300,000. cloth in the same manner as the During the four weeks the banks7 reserve ratio, BULLETIN. Subscriptions should be addressed to the Fedowing to the substantial reductions in note and eral Reserve Board, Washington. As the edideposit liabilities and the simultaneous gains in tion is to be a limited one, those desiring copies cash reserves, shows a steady rise from 50.8 should send in their orders promptly. to 54.1 per cent Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

514 FEDERAL RESERVE BULLETIN*. MAT, 1921. BUSINESS, INDUSTRY, AND FINANCE, APRIL, 1921. Complete business recovery is proving to be slower than was predicted by many observers at the close of the year 1920. The expectations of many that the spring of 1921 would see economic and business readjustment fairly completed have not been realized. The month of April has, however, given evidence of the development of an improved feeling in many sections of the country with regard to the business situation and outlook. While there is still much uncertainty as to when the readjustment now in process may be expected to reach its end, and while the business situation in some sections of the country and in some fields of industry is still beset with difficulties, some of the recent factors of uncertainty are either being eliminated or are of diminishing importance. Moreover, increasing appreciation of the nature of the readjustment process in business circles and in the community at large is focusing attention upon the factors that are delaying business recovery and is promoting discussion with a view to removing obstacles and expediting the return to normal conditions. The point upon which the business situation has pivoted since the recession movement began last autumn has been prices. The fall of wholesale prices, which has been continuous and at times precipitate in recent months (especially for the agricultural raw materials group), appears to be in process of arrest. At any rate, many wholesale prices have shown a greater degree of stability during the month of April. Prices of many basic commodities have shown, both by general index numbers and by reports from the several Federal Reserve districts, less sensitiveness than during the preceding month. This fact is being recognized by buyers, who are showing an increasing disposition to regard present price levels as a satisfactory basis for dealings. Among the factors that are retarding readjustment are retail prices, high transportation charges, wages, and the relatively high prices of such highly important requisites of production as coal and steel. The most important immediate point at which the readjustment process appears to be "sticking" is the retail price situation. Wage and employment conditions were recently made the subject of a special inquiry by the Federal Reserve Board, the results of which are given in this issue of the BULLETIN. While the inquiry shows that labor is participating in the process of readjustment, the participation has been uneven as between different sections of the country, as between different lines of industry, and as between different groups of labor. Wage readjustment has been greater among unskilled workers and those not possessed of a strong trade organization, and especially in sections of the country whose industries have felt in a peculiarly high degree the effects of readjustment. So far as the various industries themselves are concerned, the outlook continues good in nearly all branches of agriculture, with favorable crop prospects and a substantial acreage. Conditions in the iron and steel industry, despite the fact that the United States Steel Corporation has made a moderate reduction in prices, show little change. No improvement in condition has been noted in connection with the nonferrous metals, and most of the principal copper mines have suspended mining operations. The textile industry has continued to show a seasonal increase in productive activity and this has extended to the knit goods and other allied branches of the trade. In the retail field demand has been well sustained in the eastern sections of the country. Wholesale trade has shown an upward tendency, due, no doubt, to the depletion of the stocks of retail dealers which were already low and have been further reduced by the seasonal spring demand. Financially the month has been quiet, with indications of betterment in condition. There still remain large unliquidated loans in certain parts of the country representing commodities which are being carried over from last year and which the banks have had to provide for. In some parts of the country building activity has shown distinct improvement. Export demand continues to be light and declining, while the increase in idle tonnage is marked. About 46 per cent of the vessels owned by the United States Shipping Board are now laid up. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

MAT, 1921. FEDERAL RESERVE BULLETIN. 515 AGRICULTURE. earlier reports indicated a very large reduction in acreage, it is now generally understood that The agricultural situation during the month the reduction will not be as great as was premay be characterized as generally favorable. viously indicated. In district No. 11 (Dallas) The unseasonable cold wave whicn swept over it is reported that the decrease will be at least the country about April 1 did some injury to 25 per cent and as much as 50 per cent in some the spring wheat, but had very little effect upon sections. District No. 12 (San Francisco) the winter wheat. Thus, in district No. 11 states that "the acreage this season will be (Dallas) it is stated that "reports from the reduced approximately 50 per cent, and much wheat belt are generally satisfactory, and indi- of it will be ' volunteer' cotton grown from last cate that the crop is in excellent condition," year's plantings." However, district No. 6 and in district No. 8 (St. Louis) " little damage (Atlanta) reports that "conservative estimates was done to winter wheat by the recent low place the reduction in acreage compared with temperature." However, the cold wave last year at from 10 to 20 per cent." The use checked the ravages from the pests which had of fertilizer has been considerably less than been prominent because of the especially mild during previous years, being estimated at winter and very little further trouble is con- about one-fourth to one-third the amount used templated. The condition of winter wheat on a year ago. April 1, as reported by the Bureau of Crop Estimates of the United States Department of TOBACCO. Agriculture, was 91 per cent, as compared with Although the leaf tobacco market has been 75.6 per cent on the same date of 1920. On the dull throughout the past month, the warehouse basis of this report, it is estimated that there sales have been in a larger volume than is usual will be a very large production, nearing a banner at this season of the year. This was probably year in winter wheat. The estimated producdue to the fact that sales during the previous tion is 621,000,000 bushels as of April 1, 1921, months have not been as large as in normal against 577,763,000 bushels on April 1, 1920, times. However, the demand has been for wnile the acreage for 1921 is 40,605,000 acres, as better grade tobacco rather than for the cheaper against 41,757,000 acres on April 1, 1920. The grades. District No. 8 (St. Louis) reports that seeding of spring oats has been practically comreceipts of tobacco have been fairly heavy pleted in most sections and a considerable and prices for the better grades well mainamount is already up and in good condition. tained." District No. 3 (Philadelphia) states Corn planting has made good progress, espethat "manufacturers are purchasing only such cially in some of the southern sections, although stocks as they actually need, and most of them it has been delayed in others by the wet and have sufficient supplies on hand for present cold weather. In most sections the germinapurposes." The demand for high-grade cigars tion of the seed has been retarded either by has been in limited proportions, while the the cold weather or lack of moisture. demand for cheaper cigars of a reasonably FRUIT. food quality has been more pronounced.. Reports from this district indicate that al- The fruit throughout the fruit-growing sec- though the industry as a whole is still operating tions suffered from the cold wave which was considerably below normal, "firms which are followed by frost. District No. 12 (San Fran- manufacturing the cheaper products have cisco) states that "some damage is reported increased production materially and are prefrom practically every fruit and grape growing paring to operate on a full-time basis." area but reports indicate no serious reduction of prospective crops from this cause/7 and dis- GRAIN MOVEMENTS. trict No. 10 (Kansas City) reports that "all fruits were injured more or less by the belated The March movement of grains has on the cold weather.'* The injury appears more seri- whole been in larger amounts than last month ous in district No. 11 (Dallas), where "it is be- and the same month a year ago. Receipts of lieved fruit has been damaged at least 25 per all grains at Minneapolis were 9 per cent cent and in some sections even more." greater than February receipts and 18.5 per cent greater than for March, 1920. While the COTTON. March receipts at Duluth were less than February receipts by 10.6 per cent, they were Good progress has been made in the planting greater than receipts of March a year ago by of cotton and in South Carolina, Georgia, 59.9 per cent. The receipts for the two centers Alabama, and Mississippi a considerable combined were 4.9 per cent greater than for amount is up to a good stand. While the February and 24.8 per cent greater than for Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

516 FEDERAL RESERVE BULLETIN. MAT, 1921. March, 1920. Combined receipts of wheat at was 30.4 per cent greater than in March, 1920, Minneapolis and Duluth were 5.6 per cent but figures for all reporting mills in the district smaller than February and 17.6 per cent showed an increase of only 1.3 per cent, from greater than March, 1920. The same tendency 1,203,651 barrels in March, 1920, to 1,220,039 is noted in the case of the four principal markets barrels in March, 1921, due to the falling off in of district No. 10 (Kansas City), where receipts the output of the 82 interior mills. No appreof wheat were 2.9 per cent less than for Febru- ciable increase in activity is reported in district ary and 18.4 per cent greater than for March, No. 12 (San Francisco), and mills continue to 1920. Receipts of corn at Minneapolis, Du- operate at approximately 45 per cent of capaluth, and the four principal markets of district city, as compared with 80 per cent during No. 10 (Kansas City) showed increases over the March, 1920. Output of 76 mills during March, previous month and the same month a year 1921, was 627,417 barrels, as compared with ago. Stocks of grain at the Minneapolis and 573,420 barrels during February reported by Duluth terminals at the close of March were 80 mills. Plant operations in district No. 8 2 per cent greater than at the close of February (St. Louis) have been at from 40 to 50 per cent and 8.9 per cent greater than a year ago. of capacity during the 30-day period ending Prices of grains during the month of March April 15. exhibited mixed tendencies, but there were LIVE STOCK. more decreases than advances. The median price of cash wheat No. 1 Dark Northern at The condition of live stock on farms and Minneapolis was $1.72 as against $1.75f for ranges continues excellent, although in certain February. sections, such as Arizona, rainfall has been deficietit and stockmen have suffered heavy FLOUR. losses. The stocker and feeder movement of Little new domestic demand for flour is re- cattle and calves at 34 markets was 233,477 ported, and buyers have shown hesitancy as a head during March, as compared with 164,504 result of the continued fall in the price of wheat. head during February and 239,363 head during Flour prices in general have declined similarly, March, 1920. The large surplus of corn, it is although it is stated from district No. 12 (San stated, has given a new impetus to the swine Francisco) that millers who have stocks of industry in Kansas and Nebraska. The dewheat bought at higher prices and who hold mand for stockers in March at Fort Worth, flour milled from this higher priced wheat have however, was " quite light, and few shipments shown reluctance to revise flour prices to corres- were secured for return to the country." Repond with present wheat prices. Some export ports from the principal markets in district No. demand is indicated. The export trade in dis- 12 (San Francisco) state that u inquiries are trict No. 10 (Kansas City) "is reported fairly few and stockmen are not buying to increase satisfactory, with the demand becoming more their herds." The season has been favorable general/7 Domestic trade in that district in for lambing in New Mexico and the "crop of the first week of April, however, was less en- lambs in that section and in the Panhandle is couraging, and mills which had been working estimated at 85 per cent.7' A good lamb crop on contracts had about caught up with the is reported to be in prospect in district No. 10 business on hand. Export trade in district No. (Kansas City). Movement to market of the 12 (San Francisco) has increased slightly, but various classes of live stock differs somewhat. the domestic demand on the whole has re- Receipts of cattle and calves at 15 western mained stationary, although improvements are markets during March were 1,119,548 head, as noted in some local areas. Millers in district compared with 835,686 head during February No. 8 (St. Louis) report some export demand, and 1,195,622 head during March, 1920. The centering principally upon clears. Production respective index numbers were 111, 89, and 119. of mills representing about 75 per cent of the Receipts of hogs, however, showed a decrease total output in district No. 9 (Minneapolis) was from 2,902,107 head during February, cor- 1,793,505 barrels during the 4 weeks ending responding to an index number of 141, to March 26, a decrease of 3.1 per cent from the 2,390,480 head during March, corresponding figure of 1,854,209 barrels during the 4 weeks to an index number of 109, as compared with ending February 26, but an increase of 19.9 per 2,852,171 head during March, 1920, correspondcent over the figure of 1,497,060 barrels during ing to an index number of 130. Receipts of the 4 weeks ending March 27, 1920. March sheep were greater during March than receipts shipments of flour from Minneapolis and Duluth for either February, 1921, or March, 1920. combined were 8 per cent larger than in Feb- The March, 1921, figure was 1,161,549 head, the ruary and 15 per cent larger than in March, February figure was 972,647 head, and the 1920. March production of Kansas City mills March, 1920, figure was 899,760 head, while Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

MAT, 1921. FEDERAL RESERVE BULLETIN. 517 the respective index numbers were 85, 76, and only for immediate needs, while industrial de- 66. Oh the Fort Worth market "the heavy mand is retarded by the general business situincrease in receipts of hogs was easily the most ation. From several districts it is reported outstanding feature/' but nevertheless there that there is no desire to contract for deliveries was a keen demand and the market was well for next fall at present prices. Little change in maintained. The supply of meat animals at prices, however, is reported, although in some the six markets of district No. 10 (Kansas districts it is stated that there is a slight down- City) in the first three months of 1921 is ward trend. Railroads in district No. 10 stated to have been fully up to meat con- (Kansas City) are relying on storage piles for sumption requirements. March is said to have a good part of their present requirements, and been one of the poorest months in the history are buying little coal in the market. One of of the industry in that district. The abundant the principal producers in district No. 4 supplies of beef in packers' coolers, it is re- (Cleveland), however, states that more inported from district No. 8 (St. Louis), has a quiries were received during the first half of tendency to hold down prices. Hog prices April than during the first three months of have continued to decline steadily and this the present year. Production shows some is ascribed chiefly to diminished consump- falling off, from 30,851,000 tons during Febtion of pork products, due to adverse industrial ruary to 30,328,000 tons during March, as conditions. The fresh-pork market, however, compared with 46,832,000 tons during March, remains exceptionally active in the Pacific 1920. The respective index numbers are Northwest and heavy shipments continue to 89, 82, and 126. Production of anthracite coal be received from Middle Western points. likewise declined in March, being 7,603,000 tons, corresponding to an index number of NONFERROUS METALS. 103, as compared with 7,845,000 tons during On March 29 seven of the largest copper February, corresponding to an index number companies of the United States ceased their of 114, and 7,857,000 tons during March, 1920, mining operations. Several other companies corresponding to an index number of 106. stopped producing during April, and it is esti- The customary spring reductions of 50 cents mated that the production of the mines which per ton on prepared sizes have been announced continue to operate is less than 30 per cent of by all railroad coal companies but one, and the normal total American production of cop- retail prices in district No. 3 (Philadelphia) are per. The cessation of operations by most of from 75 cents to $1.50 lower than winter prices. the larger producers was due to the large Some quickening of demand is reported from stocks of copper in the country and the present that district as a result of the slight reductions unremunerative copper prices. As a result of in retail prices effective April 1, but "on the the announcement of this curtailment of min- whole the result has been disappointing to the ing operations the price of copper (New York, dealers." Probably the larger part of March net refinery) rose from 12 cents to 12.50 cents deliveries are stated to remain stored in the in the latter part of March, but there has been yards of dealers. The lack of retail demand some shading of the latter price in sales made is ascribed in part to the fact that the remarksince April 15. There was a slight increase in ably mild winter has left many consumers the price of zinc during April, which presumably with a large part of last winter's supply on resulted from the severe restriction in output. hand, as well as to the expectation of further March production of zinc amounted to 15,741 decreases before fall, in view of the initial price tons, as compared with 17,769 tons produced reductions. Demand is least for the steam in February. Lead production is also at a low sizes. Further price declines are reported in level, although stocks of lead in the United coke, together with a decrease in production. States are believed to be much less in propor- It is stated from district No. 3 (Philadelphia) tion to consumption than is the case for either that "it is doubtful if more than one-fifth of copper or zinc. There has been little change the Nation's productive capacity is being in the price of lead since the increase to 4.25 utilized." cents (New York and St. Louis bases) on PETROLEUM. March 31, but demand continues slack. District No. 10 (Kansas City) reports that there Production of petroleum showed a slight are only 36 lead and zinc mines working at gain during March. There has been a conpresent out of a total of 208 mines. tinuous increase in the production of the Kansas-Oklahoma fields since January 1, 1921, and COAL. the average daily production for four weeks Little demand for bituminous coal is re- ending April 18 was 370,500 barrels, as comported. Consumers are stated to be buying pared with an average daily production of Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

518 FEDEKAL, RESERVE BULLETIN. MAT, 1921. 361,250 barrels for the four weeks ending stated in the various reports that buyers, in March 11. In California the average daily out- general, apparently lack confidence in the presput during March was 337,683 barrels, as com- ent situation. These conditions are reflected pared with 327,864 barrels in February. in the statistics showing the scale of operations These increases were partly offset by a decrease in the industry. At the close of March only in average daily production of district No. 11 103 blast furnaces in the country were active, (Dallas) from 403,243 barrels in February a decline of 52 during the month, as compared to 394,174 barrels in March. There was a with 317 active at the close of September, the further decline in drilling operations during peak for last year. Pig-iron production dur- March. Most of this decrease occurred in dis- ing March was 1,595,522 tons, as compared trict No. 11 (Dallas), where there were only 395 with 1,937,257 tons during February. The renew wells completed in March, as compared spective index numbers were 69 and 90. Prowith 491 wells in February. In district No. 10 duction of steel ingots declined from 1,749,477 (Kansas City) only 768 new wells were com- tons during February to 1,570,978 tons during pleted in March as compared with 771 in Feb- March. The respective index numbers were ruary, but new production amounted to 71,460 80 and 67. A further decrease in the unfilled barrels daily as compared with 65,664 barrels orders of the United States Steel Corporation in February. Sixty-six new wells were com- is reported, from 6,933,867 tons at the close of pleted in the California fields during March, as February, corresponding to an index number compared with 60 in February. There was a of 132, to 6,284,765 tons at the close of March, distinct slowing down in the price recessions of corresponding to an index number of 119. Repetroleum products during March, and this was ports m district No. 3 (Philadelphia) indicate reflected by the maintenance throughout the that production is less than 30 per cent of camonth of a crude oil price of $1.75 per barrel pacity, and, even with this output, stocks are in most of the Texas fields. Refinery runs in accumulating in the hands of producers. Some Kansas and Oklahoma were materially in- resumption of activity in pig-iron production creased on April 1 by the resumption of 13 is reported in district No. 6 (Atlanta) since the refineries which were not operated in March. beginning of April. Owing to large stocks of ore on dock and in furnace yards, there is a slow opening of the shipping season on the IRON AND STEEL. Great Lakes. The outstanding event during the month in the iron and steel industry was the reduction AUTOMOBILES. by the United States Steel Corporation on April 12 of its schedule of prices on various standard A considerable increase in the demand for products to figures 6 to 15 per cent below the standard makes of automobiles is reported prices of the Industrial Board. Prior to the from district No. 7 (Chicago). The more concut, several of the larger independent produc- servative dealers in district No. 3 (Philadelers announced advances of $2 per ton on bars, phia), however, feel that the natural seasonal plates, and structural steel shapes, while sub- improvement appears larger than the facts sequently further reductions were announced warrant, as conditions in the trade were excepby steel corporation mills. Prices of the two tionally dull last winter. A trend toward groups of producers are now, in general, at the lower prices was reported in district No. 7 same levels. The exact influence which these (Chicago), while in district No. 3 (Philadelphia) price changes will exert is as yet uncertain. there was rather a tendency on the part of the It is stated from district No. 4 that " a dragging dealer to give extra parts or accessories in market in general has continued." Some bet- place of reducing the price on standard models. terment in that district, however, has been re- Stocks of cars in the hands of retailers have ported with respect to the automobile and been reduced below January figures. It is building industries. " Suspensions of orders noted from district No. 7 (Chicago), however, for steel with the mills have been lifted in an that caution prevails and that there is still increasing way" by the former industry, and some disposition on the part of buyers to wait 11 some new buying has also resulted." The de- for lower prices, while other factors, which mand is stated from district No. 3 (Phila- retard buying, are the lack of capital to finance delphia), however, to have been far below ex- large operations and the curtailed buying pectations, and the total consumption of auto- power of the agricultural sections. Carload mobile and truck manufacturers is given as only shipments of manufacturers producing two- 5 per cent of the total product of the iron and thirds of the country's output are reported by steel industry. This district also reports little district No. 7 (Chicago) to have been 16,500 demand from the building industry. It is during March as compared with 9,920 during Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

MAY, 1921. FEDERAL RESERVE BULLETIN. 519 February and 29,326 during March, 1920, future delivery are also being taken by knitting while 10,000 machines were driven away mills in the district. Wage cuts in the southern under their own power in March, 1921, as mills have been more drastic than in other compared with 7,491 during February and sections, and it is said that "many people in 57,273 during March, 1920. In some in- the trade claim that the reductions have been stances manufacturers show a marked increase in keeping with the lowered prices for raw in operations. From district No. 3 (Phila- material. In district No. 6 (Atlanta) a numdelphia) it is stated that operations in the fall ber of reporting mills show an increase in and winter were not over 25 per cent of normal, yardage of 4.5 per cent during March as commany plants being entirely closed, while opera- pared with February, although there was a tions in general are now at about 60 per cent decrease of 22.1 per cent as compared with a of normal. The improvement in business year ago. The increase in orders on hand commencing in March reported by dealers during the month was negligible, but much in district No. 8 (St. Louis) has continued but greater than a year ago when new orders were "is fitful and irregular/7 and is found rather in not acceptable because of the press of work. the large cities than in the country. It is said that few mills are as yet working at full capacity, although a number indicate orders on hand which will require full running time COTTON TEXTILES. for several weeks for their completion. The Cotton consumption during March for the increase in yarn output (by pounds) of reportcountry as a whole amounted to 437,933 bales, ing yarn mills increased 8 per cent during the which was 25 per cent below the totals for March month, although totals were 26.2 per cent of the preceding year. There was greater below figures for March, 1920. There was a stabilization in the price of raw cotton during slight decrease of 1.1 per cent in orders on hand the month, and the price of gray goods, after as compared with February, and the time declining to 6| cents a yard for the standard required running full to complete orders on 38£-inch width, advanced slightly. Neverthe- hand averages about one month for all reportless, district No. 1 (Boston) reports that at ing mills. There has been a recent increase in present prices the spread between a pound of export sales of cotton goods, amounting to cloth and a pound of raw cotton is only 22J between 10,000 to 12,000 bales and consisting cents, whereas a year ago it was approximately principally of drills and sheetings, to China, $1. Fall River sales of print cloths are of India, and the Levant. moderate proportions. Brown sheetings and standard brown drills can be purchased about FINISHING OF COTTON FABRICS. one-half cent a yard below last month's levels. The demand for pillow tubings is such that Thirty-four of the 58 members of the three well-known brands, sold ahead for National Association of Finishers of Cotton months, are withdrawn from the market. Fabrics reported total finished yards billed The demand for ginghams has been good and during the month at 86,732,621 yards, as comsome mills have sold their entire output from pared with 55,436,871 yards in February. May to August. There seem to be no pro- The total average percentage of capacity nounced general tendencies, as the activity of operated was 67 per cent for all reporting discertain mills manufacturing fabrics that hap- tricts, as compared with 51 per cent during pen to be in demand at the moment is off- the preceding month. The total gray yardage set by the relative inactivity in the gray goods of finishing orders received amounted to mills. District No. 3 (Philadelphia) reports 88,342,599, as compared with 76,201,806 in that the demand for heavy cotton fabrics such February. The total average work ahead at as are used in the manufacture of tires is the end of the month amounted to 8.4 days slight, and mills manufacturing goods of this for all reporting districts, as compared with 8.5 sort have largely curtailed operations. There days during the preceding month. has been little change in yarn prices during the month. Sales of low-priced cotton goods WOOLEN TEXTILES. and low-priced hosiery were reported to have improved somewhat, but the demand has been The Boston wool market has experienced largely met from stocks, as yarn mills have little change during the past month. Not recently been curtailing their operations. In much wool is being sold but prices have neverthe South textile mills are reported to be theless strengthened somewhat. A lot of the running approximately full time in district No. South American medium grade wool has been 5 (Richmond). Some orders are being received taken from the market. Receipts of foreign for goods used for print cloth, and orders for wool are considerably larger than a year ago, Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

520 FEDERAL RESERVE BULLETIN. MAY, 1921. it is stated, and competent wool men estimate lines has been especially marked. A strike that there has already been more wool im- is still in progress in the majority of the Philaported into this country since the beginning of delphia full-fashioned hosiery mills, and the 1921 than has been consumed by our mills in result has been that mills in the Reading disthat period. In all districts woolen and trict have had more orders than they could worsted mills are showing greater activity, accept, although the demand is for immediate and in district No. 1 (Boston) several mills are delivery. The inability to secure deliveries reported to have booked as many orders as on full-fashioned hosiery has increased the call they care to accept at the present time. Top for other lines, and mills are now working on manufacturers are well booked up and pro- orders. The demand for mercerized and lisle duction is not far from capacity. In district hosiery has shown improvement during the No. 3 (Philadelphia) many cloth mills are month, but it is estimated that it is only about operating at capacity, while others are run- 50 per cent that of a normal year. Twentyning from 50 per cent to 75 per cent. In the five firms selling to the wholesale trade report Philadelphia market the increased activity is an increase of 15.8 per cent in the product mannot reflected in the demand for yarn. Some ufactured during March as compared with yarn manufacturers are running at full capac- February, 1921. Orders booked during March ity, but orders are being placed for current showed a decrease of 30.6 per cent, but unuse almost entirely. Manufacturers of medium filled orders at the end of the month increased and lower counts of yarn have not done as 17.4 per cent. Eight firms selling to the active business as producers of the fine counts. retail trade had a product 66.5 per cent in The operations of the former are reported to excess of February; orders booted during be from one-third to two-thirds of normal. March were 5.5 per cent greater than in Feb- The latest figures available prepared by the ruary, while unfilled orders on hand at the end Department of Commerce giving percentages of the month were 48.1 per cent in excess of of idle hours to the total reported on March 1, the preceding month. The output as comshowed that 37.9 per cent of the worsted pared with a year ago was nevertheless neglispindles and 50.5 per cent of the woolen gible, being 93.3 per cent below those totals. spindles were idle, whereas on April 1 the percentages had fallen to 25.7 per cent and 34.1 UNDERWEAR. per cent, respectively. The majority of underwear mills in district SILK TEXTILES. No. 3 (Philadelphia) are booked to capacity until the end of the light-weight season. Nor- There has been a continued increase in the mally orders are placed and largely made up manufacturing activity of the silk mills during for shipment by the middle of January, but the month, and one encouraging factor tending this year buying was late and in limited quanto sustain the improvement that has already tities. Duplicate orders, placed in March as a taken place is the relative stability of the result of the unexpectedly heavy public deprices of raw silk. Demand for the raw mate- mand, have increased the volume of business rial for immediate delivery is active but as yet beyond the present capacity of the industry. confidence as to market developments is not On the other hand, forward orders for heavygreat enough to have resulted in the placing of weight underwear have been few, although large orders for future delivery. The silk some mills have booked sufficient orders to warehoused in New York at the end of the maintain total capacity until the end of Aumonth amounted to 16,386 bales, as compared gust. The uncertainty regarding price trends with 27,928 bales in February, while 14,043 and the lack of definite information as to stocks bales were imported in March, as compared carried over from last winter make buyers with 14,361 bales in February. The mills in hesitant to adopt a policy for the future. Paterson and near-by towns are now reported Twenty firms in district No. 3 (Philadelphia) to be operating at about 60 per cent of maxi- which make monthly reports to the Federal mum capacity as compared with 49 per cent Reserve Bank had an increase of 85.8 per cent during the preceding month. in their output in March as compared with February, although it was still 29.5 per cent below the totals for the same month of the HOSIERY. preceding year. Orders booked were 13.5 per It is stated in the report from district No. 3 cent below those for February and unfilled (Philadelphia) that there has been a general orders on hand at the end of tne month were improvement in the hosiery industry during 10 per cent greater than at the end of Febthe past month, and that the demand for ruary. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

MAT, 1921. FEDERAL RESERVE BULLETIN. 521 The 62 mills which make reports to the Knit mediate shipment. District No. 8 (St. Louis) Goods Manufacturers7 Association of America reports that shoe factory operation is larger had an output in March of 102,415 dozens of than at any time this year, averaging from 80 winter underwear, which was 31 per cent of to 90 per cent of capacity. Many plants turnnormal. The production of summer under- ing out women's and children's footwear are wear amounted to 318,725 dozens, or 62.5 per operating at full time. " Prices show a further cent of normal. Thirty-eight mills which decline, except on goods in seasonal demand furnish data for both February and March had and the fancy grades of women's wear." a production of 261,934 dozens during the Orders for summer goods are being obtained in latter month as compared with 147,822 dozens some quantity by salesmen in district No. 7 in February. Unfilled orders on the 1st of (Chicago). Good qualities are wanted and the March dropped, however, from 588,127 dozens demand for novelty lines is stronger than for to 269,104 dozens. New orders received dur- staple goods. "The retailers have brought ing the month of March rose from 205,260 prices down recently until they are more in dozens in February to 284,712 dozens in line with replacement cost, but these prices March. There was a slight increase in can- have not kept pace with wholesale reductions." cellations, which rose from 1,619 dozens to 5,173 dozens. LUMBER. SHOES AND LEATHER. Demand for lumber increased somewhat during March, but only as a result of a further Prices for hides and skins showed little change reduction in prices. District No. 12 (San during March and the volume of trading has not Francisco) reports that "the volume of buying increased perceptibly. Demand for sole leather is increasing, although it is still conservative and and staple grades of upper leather continues to purchases are only to meet current needs." be slacK, but demand for colored glazed kid, Orders received during the four weeks ending suede calf, ooze, and certain other kinds of March 26 by the four lumber manufacturers' calf leather continues to exceed the available associations of that district showed an increase supply. There was some increase in the de- of 30.2 per cent over the preceding four weeks. mand for belting leather, harness leather, and Production during the same period increased upholstery leather during March. The volume 17.1 per cent and shipments 68.1 per cent. of leather exports continues to be very small. Uncertainty as to the volume of this season's District No. 1 (Boston) reports that " prices on operations in the canned-fruit and salmon-packthe whole are showing a slight strengthening, ing industries has resulted in a curtailment of but the very large supplies of leathers in the operations of box shook mills to 50 per cent of country act as a deadening influence on any capacity. One hundred and eighteen mills general upward movement/' There has been belonging to the West Coast Lumbermen's some slackening in the demand for women's Association reported for the four weeks ending shoes since Easter, but this has been largely March 26 a cut of 187,917,000 board feet, shipcounterbalanced by an improvement in demand ments of 209,970,000 feet, and orders of 213,for men's shoes. Both retail and wholesale 431,000 feet. Corresponding figures for the sales of shoes are reported to be exceeding pro- preceding four weeks, with the same number duction at the present time. The net result of of mills reporting, were as follows: 162,648,000 March operations in district No. 1 (Boston) was feet, 157,970,000 feet, and 167,483,000 feet. a reduction in the size of stocks of shoes on In district No. 11 (Dallas) prices were practihand in factories and factory warehouses. cally stationary throughout March. Produc- Shipments of shoes from the factories of New tion of 29 southern pine mills during March was England were considerably larger in March than equal to 60 per cent of normal. Orders booked in February, yet orders on hand April 1 showed by these 29 mills were equivalent to 61 per cent an increase over those on the books March 1. of their normal production, whereas the 30 " Production was apparently at a rate slightly mills which reported during February booked below 50 per cent oi capacity." In contrast to orders equivalent to 56 per cent of their northis, district No. 3 (Philadelphia) reports " that mal production. Prices of pine have sagged the shoe manufacturing industry at the present slightly in district No. 6 (Atlanta). Productime is operating close to capacity and that tion of 134 mills belonging to the Southern business for the spring and summer seasons is Pine Association was 29.5 per cent below approaching normal." However, buyers in normal during the week ending April 1, while that district still refrain from ordering for future shipments were 25.8 per cent below normal delivery and the business in the hands of the production. Orders received during that week manufacturers is practically entirely for im- were larger thar in any week since January, but Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

522 FEDERAL RESERVE BULLETIN. MAT, 1921. were 23.9 per cent below normal production. commencing construction. Reports from 23 Production in the Tennessee hardwood mills cities in district No. 5 (Richmond) show 1,718 for the first three months of 1921 is reported to permits issued for new construction during be 75 per cent lower than in the same period of March, in comparison with 894 permits issued 1920, and many of the mills are being closed. in February. This number was greater than District No. 8 (St. Louis) reports that indus- that for any month since February, 1920. trial buying has increased somewhat in both Value of building permits in district No. 6 softwoods and hardwoods. "Railroads are (Atlanta) increasecf about 50 per cent for virtually out of the market, and in consequence March in comparison with February figures. the prices of heavy timber, crossties, and car Noteworthy increases in activity occurred in stock have declined more heavily than in any Atlanta, Birmingham, and Tampa. In disrecent month." Price reductions were made trict No. 7 (Chicago) there was an increase in during March by a majority of the retailers and value both for building permits and contracts about half the manufacturers reporting in awarded during March, as compared with district No. 9 (Minneapolis). The March cut February figures. District No. 8 (St. Louis) of 12 manufacturers was 7 per cent greater than shows an increase in value of building permits in February, and shipments were 20 per cent for three leading cities in March, as compared greater, while stocks at the close of the month with February, but these figures are very much had increased 5 per cent. As compared with below those for March, 1920. In district No. March, 1920, cut was 26 per cent less, shipments 9 (Minneapolis) 1,847 permits, valued at 66 per cent less, and stocks at the close of the $2,647,666, were issued in the reporting month 51 per cent greater. The demand for centers in March, as compared with 783 perlumber has improved somewhat in district No. mits, valued at $2,179,784, in February. 3 (Philadelphia), but the price trend has con- This increase is due to a substantial gain in tinued downward and 80 per cent of the orders the number of permits issued for repairs and are being filled from stock on hand. alterations. Seventeen cities in district No. 10 (Kansas City) issued 2,778 permits in BUILDING OPERATIONS. March, an increase of about 100 per cent over the February figure and an increase of about Building operations sshhconwed increased activ- 18 per cent over the total of March, 1920. ity during March, which iiss a normal condition District No. 11 (Dallas) reports that both the for this season of the year. Number of build- number and value of building permits issued permits, value of building permits, and in March was the largest monthly total since lue of contracts awarded all registered October, 1920. The value of building permits marked increases as compared with February. for 20 cities of district No. 12 (San Francisco) This increase is particularly large in the case amounted to $18,542,835, an increase of 57 of number of permits, as a result of the con- per cent over February, 1921, and 27 per cent tinued increase in the building of residences. over March, 1920. Number of permits in Contracts awarded in the New England States those cities increased 47 per cent over Februamounted to $13,262,000 during March, an ary, 1921, and 38 per cent over March, 1920. increase of 84 per cent over February. District " Declining prices of building materials and No. 2 (New York) reports contracts amounting some reduction in labor costs have reduced to $29,846,000, an increase of 40 per cent over the number of factors which have been retardthe February figure. Of this total 59 per cent ing building operations.7' were for residential buildings as compared with 48 per cent in February and 40 j>er cent EMPLOYMENT. in January. "The increase in residential construction has been confined almost entirely The Federal Reserve Banks have just comto the least expensive apartments and small pleted a special inquiry into changes in employhomes." In district No. 3 (Philadelphia) ment conditions and in rates of wages occurring there has been a large increase in the value of during the year ending April 1. The results building permits issued during March in com- of this inquiry are presented in considerable parison with the February figures. Funds for detail elsewhere in this issue of the BULLETIN mortgages have been difficult to obtain, but and need not therefore be summarized again. there has been a steady increase in number of In addition to presenting facts concerning houses bought through the building and loan wages and employment as compared with a associations. District No. 4 (Cleveland) shows year ago, however, several districts present an increase in value of building permits comparative data for the months of February issued during March, but there still seems to and March. In district No. 3 (Philadelphia), be $ tendency to wait for lower costs before for example; the estimates qf the local offi Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

MAT, 1921. FEDERAL RESERVE BULLETIN. 523 of the Pennsylvania Bureau of Employment Outside of mining, the lumber industry reindicated that on April 15 unemployment was ported the greatest amount of unemployment, still increasing in the cities of Philadelphia, but work was in process of resumption. Port- Altoona, Harrisburg, Johnstown, and Scran- land reported a decided decrease in unemployton taken as a group, since the total number ment as did Seattle, while conditions in Spoof unemployed was reported at 177,645 on kane were practically unchanged. Industrial April 15, as compared with 147,115 on March concerns in California were employing more 15. In district No. 7 (Chicago) questionnaires men than they were a month ago. are sent regularly to representative manufac- Although a large amount of surplus labor in turing concerns and for the month of March the industrial centers has been absorbed by returns were received from 61 firms then the seasonal increase in demand for farm labor, employing 41,000 persons, and statistics showed it is very generally commented upon that a reduction of 6.5 per cent in numbers employed farmers are endeavoring to economize by doing as compared with February. The greatest more work themselves and depending less upon reductions in volume of employment were in hired help. Consequently, the relief to the the metal and machinery trades and among unemployed with the opening up of spring the workers in railroad equipment shops. On farming activities is not likely to be so great the other hand, the automotive industry has as was anticipated. In view of the unusual shown a steady increase since December, on supply of farm labor and the restricted demand, the basis of returns made by 79 firms to the it is inevitable that wages should show a sharp Employers7 Association of Detroit. In De- decline. District No. 4 (Cleveland) reports cember only 14 per cent as many men were that in the State of Ohio wages for farm hands employed as in September, the time of greatest now average $40 a month with board, as comactivity, when 176,000 were on the pay rolls. pared with $52 last year. In district No. 6 On April 12 the number had risen to 100,347 (Atlanta) it is said that many farmers are from the December minimum, or to 57 per cent without money to hire labor and are cultiof the September total. From district No. 8 vating only so much land as can be managed (St. Louis) it is reported that " Federal with the help of their families. In district and State labor commissioners and employ- No. 9 (Minneapolis) economies in expenditures ment agencies show a further increase in unem- for hired help are likewise being practised. ployment, * * * with most acute condi- Farm laborers in consequence are receiving tions in the metal industries and transportation from $35 to $45 per month with board, as and common labor most affected.'7 In tex- compared with $70 to $80 a year ago. A tiles, boots and shoes, clothing, and furniture, similar situation prevails in district No. 10 however, the number of unemployed was con- (Kansas City) and it is said that laborers are siderably decreased during the month of March reluctant to work at the reduced rates of by resumption of plant operations. wages now prevalent. It was likewise true that unemployment increased in district No. 9 (Minneapolis) during WHOLESALE TRADE. March. According to reports from the Federal employment agencies in Minneapolis, St. Paul, Although the sales of reporting wholesale and Duluth, requests for help wanted were firms are much below the totals given for a year 73.4 per cent of those for February in the case ago, as would be expected in view of the heavy of men while 83.5 per cent as many men were declines that have taken place in wholesale placed in March as in February. For women, prices, a number of districts which present however, there was an 8.4 per cent increase in month to month comparisons for leading lines, requests for help wanted and a 5.2 per cent such as groceries, dry goods, boots and shoes, increase in numbers placed as compared with and hardware, report decided increases in- February. Reports of mining companies indi- March sales as compared with February. In cated no substantial change in numbers em- district No. 3 (Philadelphia) the hardware ployed in March. As a matter of fact, the sales of 25 reporting firms increased 30.2 per largest Montana and Michigan mines were cent during the month, although the volume of closed on April 1. Lumber companies em- business was still 19.2 per cent below the totals ploying 1,762 men in March had reduced their for last year. It was stated that current sales forces 17 per cent as compared with the pre- largely represent small orders of goods wanted ceding month. District No. 12 (San Fran- for immediate use, the result of a seasonal cisco) stated that unemployment in that terri- demand for such articles as farm implements, tory was less than a month ago, excepting in garden tools, wire fencing, and netting. In the sections of Arizona and Utah in which the the wholesale grocery trade increased sales had large copper mines, now closed, §v$ located, also occurred and could be partially attributed Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

524 FEDERAL RESERVE BULLETIN. MAT, 1921. to a seasonal increase in demand. The net below those of March, 1920. District No. 11 sales of 50 reporting stores were 18.6 per cent (Dallas), in contradistinction to other sections, larger in March than in February, but 27.9 per does not show the same tendency toward a cent below the figures for Marcn, 1920. Pur- revival of wholesale trade. Returns from 2 chases were said to be for immediate needs and concerns selling hardware and 2 selling farm business confined largely to staples. In dis- implements record declines of 29.3 per cent and trict No. 4 (Cleveland) the net sales of 14 18.4 per cent, respectively, in sales as comreporting grocery firms and 7 hardware firms pared with the preceding month. Grocery showed declines as compared with a year ago, sales (4 firms) which elsewhere show a decided somewhat analogous to those of district No. 3 increase are 0.7 per cent below February (Philadelphia), being 16.3 per cent lower for volume and dry goods sales (4 firms), although hardware and 33.1 per cent lower for groceries. 16.1 per cent greater in March than in February, Dry goods sales (6 firms reporting) were 14.9 per have not advanced as greatly as in most of cent below last year. In district No. 5 (Rich- the other districts. All dealers, it is said, mond) sales of groceries (9 firms reporting), report that the buying demand is light, condry goods (8 firms), hardware (8 firms) and servatism is the outstanding feature with the boots and shoes (8 firms) show increases over trade, and dealers are reluctant to place orders February ranging from 8.6 per cent in the case in very large amounts for future delivery. In of groceries to 53.4 per cent in the case of district No. 12 (San Francisco) all reporting boots and shoes. The Easter demand prob- lines have increased sales as compared with the ably explains the heavy increase in March month of February. As in other districts, the sales of boots and shoes. Decreases for these increase in shoe sales has been very heavy, four lines as compared with March, 1920, averaging 68.4 per cent for 15 firms. Grocery ranged from 23.9 per cent in the case of sales (30 firms), dry goods (11 firms), and hardgroceries to 38.3 per cent in the case of dry ware (23 firms) increased 20.9 per cent, 28.5 per goods. In all these cases the drop in the value cent, and 33.9 per cent, respectively, over the of sales is probably entirely accounted for by preceding month. The declines as compared lower prices and in some cases the amount of with a year ago were 16 per cent for shoes, 7.3 sales, if measured in physical units, would per cent for groceries, 29.1 per cent for dry undeniably be greater. In district No. 6 goods, and 33.6 per cent for hardware. Given (Atlanta) the four reporting lines, groceries (10 the decreases in wholesale prices, the declines firms), dry goods (13 firms), hardware (8 firms), probably do not indicate any shrinkage in the and boots and shoes (7 firms), all reported physical volume of trade in any of these increases in March sales as compared with reporting lines. February ranging from 6 per cent in hardware to 72.6 per cent m the case of boots and shoes. RETAIL TRADE. The last named heavy increase was no doubt in great part seasonal. Decreases in sales as The irregularity which has been noted in compared with a year ago varied from 33.6 per the retail trade situation for the past few cent in the case of groceries to 45.6 per cent months is still evident. Discrimination in in the case of hardware. Wholesalers in dis- favor of better quality of goods characterizes trict No. 7 (Chicago) report very cautious the attitude of the buying public. A reprebuying. Grocery sales were 25 per cent below sentative view of the situation is stated by the level of a year ago, with 22 firms reporting, district No. 3 (Philadelphia): "Purchasers are a drop very close to the percentage reduction in exceptionally careful in their shopping and sales of the 50 concerns reporting in district retailers have found that sales to a certain No. 3 (Philadelphia). The dry goods trade (13 class of trade can be effected more easily by firms) reported a decrease of 35.9 per cent for stressing the quality factor rather than the March as compared with a year ago, while the prices/' There has been a seasonal increase sales of 10 shoe wholesalers were 31.6 per cent in sales, due to the opening of spring and the below March, 1920, but 20 per cent above sales pre-Easter shopping, but the increase has not for the preceding month. Grocery sales in been greater than a year ago. This is illusdistrict No. 10 (Kansas City), with 4 firms trated by the fact that the increase in net reporting, increased 19.5 per cent during the sales when compared with a year ago was less month, while they were 22.7 per cent below the in March than in February. Thus in district totals of a year ago. The very heavy increase No. 1 (Boston) the increase in net sales over in hardware sales of 65.5 per cent (3 firms) as the same month a year ago was 1.5 per cent, compared with February is no doubt attribu- in district No. 3 (Philadelphia) 1.8 per cent, table to the seasonal demand of a largely and in district No. 5 (Richmond) 2.7 per cent. agricultural district. Sales were 34.3 per cent In the middle western districts decreases in Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

MAT, 1921. FEDERAL. RESERVE BULLETIN. 525 net sales were prominent. In district No. 8 prewar prices (and in some cases more), have (St. Louis) there was a decrease of 0.7 per cent, been showing considerable strength during rein district No. 9 (Minneapolis) 11.2 per cent, cent months. There has, however, recently been and in district No. 11 (Dallas) 16 per cent. a downward movement in some of the meat prod- There was the usual seasonal increase in stocks ucts. Another group of commodities which are but the amount on hand was considerably at or below prewar price levels are the leading smaller in every district than a year ago. nonferrous metals, such as copper, zinc, lead, The rapidity of stock turnover has been in- and tin. In 1913 electrolytic copper sold at an creasing. The outstanding orders at the close average of 15J cents a pound. Recent quoof March remained practically constant, which tations are at 12 to 12^ cents a pound. Zinc indicated that the merchants are not placing and tin are also below the prewar price, and orders to any great extent. District No. 3 lead is at approximately the same point as in (Philadelphia) states that " retail store man- 1913. Nevertheless, this group of industries agers continue to keep close watch of their is in a highly disorganized condition and buyers, limiting them to practically hand to production has been heavily curtailed. mouth purchases/' In a large group of important industries, on the other hand, prices are still from 50 to 100 PRICES. per cent above prewar levels. This is true in Extreme unevenness as regards price reduc- spite of the fact that in a considerable number tions is one of the striking features of the pres- of cases price reductions have been made which ent industrial situation. Prewar prices or appear sufficient to make a possible basis for something approaching them exist in many trading. Most noteworthy in this group are important lines of wholesale trade, while at the fuels and building materials. Bituminous the same time in other lines commodities are coal in spite of considerable reductions now being sold at twice or even more than twice averages around 100 per cent above the pre- 1913 values. The same unevenness exists war figure, and anthracite is at a similar in some cases between the prices of raw ma- ratio as compared with the 1913 level. Coke terials and finished goods in the same in- also appears to be about twice as high as before dustry. In the case of raw cotton, for in- the war, while iron and steel prices (taking into stance, both Egyptian and American, the consideration the United States Steel Corporapresent level is lower than the average for the tion reductions) are between 50 and 75 per cent year 1913. Although certain grades of South above the 1913 average. Crude petroleum American wool are below the 1913 average, and petroleum products are still more than wool prices as a whole appear to be still about twice the prewar price in spite of recent drastic a third higher than before the war. Finished reductions in the mid-continent fields. materials in these two lines, however, have In the same way lumber, brick, and cement not been reduced as much as the raw materials. are far above prewar levels. An average of An average of three leading grades of cotton three leading grades of lumber shows present goods shows present prices to be at least 20 prices at least 50 per cent higher than before per cent higher than before the war, and a the war, while brick and cement are between woolen cloth of a standard type is now selling two and three times the 1913 level. at approximately twice as much as in 1913. Although a study of the component parts of The discrepancy between the prices of raw the price structure is essential to an underand manufactured goods in the hide and leather standing of the difficulties of the present industry is even more extreme than in the situation, the movement of prices in general is cotton and wool industries. An average of of value also. The wide variations in the leading grades of domestic and foreign skins different parts of the system are thus elimishows the present level of prices to be approxi- nated in the average for prices as a whole. It mately one-third under the prewar level. should be remembered, however, where use is Shoe prices, on the other hand, would seem made of such an average, that it consists of to be about twice as high as in 1913. widely diverse elements. Except in the case of wheat and rye, prices of The all commodities index number, conleading cereals closely approach prewar levels. structed by the board, shows a reduction of 3 In spite of this, however, the trend of the mar- per cent during March, while the rate of decline ket nas recently been continually downward. in January and February was 6 per cent, and Prices of live stock and meats, on the other hand, that of December 9 per cent. During recent although at a level at least 10 per cent above months the raw materials index number has Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

526 FEDERAL RESERVE BULLETIN. MAX, 1921. declined more rapidly than that for manufac- CHANGES IN WAGES. tured goods, the reduction since January amounting to 11 per cent in raw materials as The Federal Reserve Board, in connection compared with 5 per cent in consumers7 goods. with its usual monthly business survey, has The all commodities index number now stands undertaken to secure information throwing at 50 per cent above the 1913 average. light upon wage conditions. With a view to Retail prices of 43 articles of food were ascertaining the extent to which the fall in genreduced only 1 per cent during March according eral prices has been accompanied by reductions to the index number of the Bureau of Labor in rates of wages, the 12 Federal Reserve Banks Statistics. No statistics are available showing at the request of the Board addressed inthe reduction in the price of clothing or quiries to representative employers engaged in miscellaneous articles at retail. typical industries within the several districts, asking for data concerning changes in wages SHIPPING. and employment.1 Returns have been secured relating to the number of workers and the More optimism regarding the outlook preamounts of the weekly pay rolls on dates vailed in shipping circles than for some months nearest April 1, 1920, ana April 1, 1921, repast. This was due more to the expectations spectively. An endeavor has also been made aroused by a number of developments than to to obtain reliable estimates of average percentany change in the underlying situation. Among age reductions in wage rates by industries, to the events of the month was the continuance find out whether such reductions have been of the British coal strike, with a moderate exmade uniformly applicable to all employees of pansion of the demand for charters of American reporting establishments, and if not, what have coal-carrying ships for prompt delivery. Anbeen the variations in the percentages of reducother encouraging feature of the freight market tion and how different groups or classes of was the firmer tendency of rates in certain workers have been affected. The fact that the directions. The settlement of the rate war inquiry has been conducted by each Federal between the North Atlantic-United Kingdom Reserve Bank for its own district will also Conference and the French Line, which had throw light on the varying extent to which been waged since last fall, helped to give tone workers in different sections of the country to the ocean freight market. The decision of have been affected by the reductions that have the Shipping Board to charter its vessels in been instituted. future on the bare-boat plan was regarded by operators as opening up possibilities for cheaper It should be noted that the results presented operation of vessels. The wage situation re- in this survey are not such as can be subjected mains unsettled, the calling of a strike by the to detailed analysis or precise comparisons. It marine engineers at New York for the 1st of is difficult and often impossible to secure a May being the outstanding development to- grouping or classification of industries that will ward the end of April. The Division of serve for all districts. In some parts of the Operations of the Shipping Board stated that, country it is practicable and desirable to preon April 5, 653 steel snips of 4,279,581 dead- sent returns by highly specialized sub-divisions weight tons were either already idle or had of an industry, while in other sections more been ordered withdrawn from service until comprehensive groupings are necessary. Moreconditions improve. That number consti- over, the replies concerning the amount and tutes 46 per cent of the Government-owned the extent of wage decreases do not lend themsteel merchant ships. The shipbuilding situa- selves readily to a systematic summary, and tion remains unchanged, with yards merely any attempt to differentiate between skilled completing orders already on hand, no new and unskilled labor or to define the terms in a tonnage of any size having been booked by way that would be acceptable for all industries American yards so far this year. The recent would be a fruitless task leading to endless cut in steel prices has not been sufficient to controversial discussion. The terms have affect shipbuilding favorably. Of the Ship- therefore been used uncritically on the assumpping Board's building program, 44 steel vessels tion that they have a fairly definite connotaof 489,150 deadweight tons remain to be de- tion when applied to specific industries. Delivered, all of which are now under construc- spite these strictures, it is believed that the tion. According to present plans, the last of these will be completed and delivered about 1 It should be noted that the data which have been assembled show only changes in employment in establishments which have reported; April, 1922. they should not be taken as indicating the general state of unemployment. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

MAT, 1921. FEDERAL RESERVE BULLETIN. 527 scope of the inquiry and the amount of the City). In all but three districts the shrinkage detailed information obtained from the ques- in the amount of the pay roll has been pertionnaires sent out present abundant evidence centually even greater than the reduction in to support the generalizations which follow. numbers employed. In district No. 12 (San The inquiry covers establishments reporting Francisco), however, the amount of the pay 1,303,792 employees on the pay roll on date roll increased 5.3 per cent and in districts No. 2 nearest April 1, 1921, with a total weekly pay (New York) and No. 11 (Dallas) the decreases roll of $36,726,380. have been less than the percentage drop in The table given below shows for all reporting numbers of employees. The percentage reestablishments, by districts, the number of duction in numbers employed for the country employees covered by the inquiry and the total as a whole was 25 per cent and the reduction amounts of the weekly payroll for specified in the amounts of the weekly pay roll was 29.8 dates in 1920 and 1921, respectively. In per cent. It is fairly apparent, therefore, that every district the reporting establishments very general reductions in rates of wages have record decreases in numbers employed as com- occurred, although the sharper percentual drop pared with the preceding year, ranging from in the amount of the pay roll would be par- 6.2 per cent in district No. 12 (San Francisco) tially accounted for by the fact that some esto 52.5 per cent in district No. 10 (Kansas tablishments have curtailed working hours. NUMBER OF EMPLOYEES AND AMOUNT OF PAY ROLL FOR REPRESENTATIVE ESTABLISHMENTS IN 1920 AND 1921. N em um pl b o e y r e e o s f N em um pl b oy er e e o s f P d er e c c r e e n a t s e of p A a m y o ro u l n l t f o o f r p A a m y o ro u l n l t f o o f r P d er e c c r e e n a t s e of Per cent of Federal Reserve district. d A o a n p t r e p . n a 1 y e ,1 a 9 r r o 2 e 0 l s l t . . d A o a n p t e r p . n a 1 e y ,1 a r 9 r o e 2 l s 1 l t , . in r p e o n p l f o u o y e m r e m te e b - s d e . r A i w n p g n e r e e . o a k 1 n r , 1 e e d 9 s n a t 2 d t 0 - e .A i w n p n g e r e e . o a k 1 n r , e 1 e d s 9 n t a 2 d t 1 e - . a p m in a o y t u o r n o t t a l l l o . f i e n m p a a p y v l e o p r y a e e r g e e . No. 1.—Boston 386,850 318,973 17.5 $11,037,818 $8,539,997 22.6 6.2 No. 2.—New York.... 372,416 305,152 18.1 10,824,000 8,912,400 17.7 »0.5 No. 3.—Philadelphia.. 140,101 107,625 23.2 4,069,574 2,675,494 34.3 14.4 No. 4.—Cleveland 203,061 114,078 43.8 6,994,400 3,213,877 54.1 18.2 No. 5.—Richmond 61,284 47,784 22.0 1,588,993 1,019,434 35.8 17.7 No. 6.—Atlanta 20,075 12,907 35.7 497,472 242,913 51.2 24.1 No. 7.—Chicago 343,544 230,681 32.9 11,558,620 7,339,275 36.5 5.5 No. 8.—St. Louis 47,563 37,140 21.9 1,049,195 675,142 35.6 17.6 No. 9.—Minneapolis... 33,917 23,846 29.7 976,971 646,981 33.8 5.8 No. 10.—Kansas City... 31,347 14,887 52.5 641,565 279,243 56.5 8.4 No. 11.—Dallas..* 7,582 6,307 16.8 170,839 151,210 11.5 16.4 No. 12.—San Francisco. 89,977 84,412 6.2 2,877,016 3,030,414 15.3 U2.3 Total 1,737,717 1,303,792 25.0 52,286,463 36,726,380 29.8 6.4 1 Increase. NOTE.—The totals given in the table will not in all cases correspond with those published for the several Federal Reserve districts, as in some cases supplementary returns were received too late to be incorporated in the general report. In one instance, returns received directly have been added to totals obtained from the district. A certain amount of reclassification of industrial groups has also been undertaken for the purpose of securing greater uniformity in the general report. The last column in the table indicates the merely represent the higher average earning percentage reduction in average weekly pay capacity of those retained in service. In disper employee for the establishments included trict No. 2 (New York) also there was a slight in the study. It will be seen that in districts increase in the average pay per employee. In No. 11 (Dallas) and No. 12 (San Francisco) all other districts material reductions are noted, there has been an increase in the average com- ranging from 5.5 per cent in district No. 7 pensation of employees—in the former of 6.4 (Chicago) to 24.1 per cent in district No. 6 per cent and in the latter of 12.3 per cent, (Atlanta). buch increases are not inconsistent with the Another table showing the changes in emdecreases in employment of 16.8 and 6.2 per ployment and in amount of pay roll, by the cent, respectively, even though no increases in principal industries, follows. rates of pay may have occurred. They may Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

528 FEDEKAL KESEEVE BULLETIN. MAT, 1921. NUMBER OF EMPLOYEES AND AMOUNT OP PAY ROLL IN REPRESENTATIVE ESTABLISHMENTS, BY INDUSTRIES, IN APRIL, 1920 AND 1921. Number of employees on pay roll. Amount of pay roll. Per cent of decrease Industry. in average 1920 1921 P d e e r c c r e e n a t s e o . f 1920 1921 P d e e r c c r e e n a t s e o . f em pa p y l o p y e e r e. Cotton textiles 108,770 88,884 18.2 $2,699,798 $1,819,749 32.6 17.5 Woolen textiles 26,727 23,784 11.0 772,745 609,972 21.1 11.3 Silk textiles 13,026 11,683 10.4 317,697 268,117 15.6 5.9 Clothing 43,208 33,417 22.6 1,462,219 975,287 33.4 13.7 Boots and shoes 59,103 45,950 22.3 1,644,093 1,248,072 24.1 2.4 Lumber 20,870 15,063 27.8 638,977 371,381 41.9 19.5 Building materials 21,052 14,028 33.4 697,185 416,665 40.2 10.3 Building construction 21,305 8,456 60.4 471,246 211,481 55.1 1 13.1 Paper 26,889 24,261 9.8 705,259 550,120 22.0 13.5 Meat packing 83,166 64,532 22.4 2,280,350 1,774,035 22.2 10.3 Iron and steel 168,751 98,785 41.5 6,019,819 2,714,773 54.9 23.0 Automobiles 84,845 38,027 55.2 3,085,754 1,135,616 63.2 17.9 Farm machinery 21,586 13,555 37.2 858,958 477,969 44.4 11.4 Electrical goods 50,588 37,164 26.5 1,557,510 1,062,521 31.7 7.1 Copper 26,980 16,640 38.3 888,378 453,047 49.0 17.3 Oil.. 22,643 23,331 13.0 803,384 975,518 121.5 1 17.8 Rubber 57,711 20,798 64.0 1,646,346 355,982 78.4 40.0 Printing 14,202 12,590 11.4 479,738 441,762 7.9 13.8 Chemicals 12,813 9,200 28.2 465,055 238,081 48.8 28.7 Shipbuilding 32,453 28,564 12.0 1,005,161 1,038,729 13.3 i 17.4 Tobacco manufacture. 29,849 24,282 18.6 531,629 313,789 41.0 27.5 Public utilities 320,820 300,360 6.4 10,551,038 10,646,294 »0.9 17.8 1 Increase. Reductions in the number on the payroll were degree of elaboration in the reports of the made in all the industries included in the tabu- individual Federal Reserve Banks. lation, except oil, the reduction being smallest (6.4 per cent) for public utilities and largest DISTRICT NO. 1—BOSTON. (64 per cent) for the rubber industry. Among Data for important industries in district No. 1 the highest percentages of reduction in employ- (Boston) follow: ment shown are those for the automobile indust ( r 6 y 0 .4 ( 5 p 5 e . r 2 c p e e n r t ) c , e a n n t d ), fo fo r r i r b o u n i l a d n i d n g s te c e o l n s (4 tr 1 u .5 ct i p o e n r e N m u p m lo b y e e r e o s. f Weekly pay roll. ce P n e t r a - ge Perof de- centage cent.) Even larger reductions are shown in the Industry. crease of deaggregate amount of pay roll for all industries, Apr. 1, Apr. 1, Apr. 1, Apr. 1, i b n e n r u em m - - i c n r e p a a s y e with the exception of building construction, 1920. 1921. 1920. 1921. ployed. roll. printing, shipbuilding, meat packing, and public utilities. The percentage of decrease in average Cotton textiles 90,041 76,649 $2,292,648 $1,541,457 14.9 32.8 Textiles: earnings per employee varies from 2.4 per cent Miscellain the boot and shoe industry to 40 per cent in neous... 10,940 8,208 256,018 139,909 25.0 45.4 Finishing. 10,578 11,470 244,793 224,333 18.4 8.4 the rubber industry. Iron and steel, with a 23 Woolen goods. 12,707 11,857 422,647 324,715 6.7 23.2 Boots and per cent reduction, tobacco manufacturing shoes 23,093 15,128 634,715 445,620 34.5 29.8 with a 27.5 per cent reduction, and chemicals Electrical goods 19,883 15,177 579,557 384,430 23.7 33.7 with a 28.7 per cent reduction, are among the Machines and tools 18,581 10,979 567,686 264,125 40.9 53.5 industries showing the largest cuts in average Pulp and paweekly earnings. Six industries, on the other per 15,911 14,519 395,924 305,744 8.7 22.8 Public utilities119,305 107,253 3,935,824 3,829,763 10.1 2.7 hand, show increases in average earnings per employee, which varies from 0.3 per cent for i Increase; strike conditions prevailed a year ago. meat packing to 17.8 per cent for oil. In the textile industry there has been a The general tables given above throw no light practically uniform reduction of 22.5 per cent on the extent of the rate reductions that have in wages within recent months, but in some occurred, nor on variations in the percentages cases this decrease had been preceded by an of those reductions. For this reason a more increase of about 15 per cent granted last detailed presentation of the returns for certain June, so that for some establishments the principal industries within the 12 Federal net reduction for the year is slightly less than Reserve districts is offered below. This re- 11 per cent. In the boot and shoe industry view does not, however, cover all the material there has been no change in rates of wages available, which will be presented with a greater during the year. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

MAY, 1921. FEDERAL RESERVE BULLETIN. 529 With the exception of the cases already- shown in the general table does not decline noted, it is difficult to make any generaliza- as sharply as numbers employed. tions concerning the character of the wage Thirty-seven of the 48 miscellaneous metal cuts which have been put into effect by the manufacturing concerns stated that there had various reporting industries. There has been been reductions in wage rates and in 22 cases very little uniformity in these reductions, but these reductions were uniform. The average it is safe to say that with few exceptions it amount of the cut was 13 per cent for all 37 is generally true throughout the country that concerns. Two of the four automobile conthe heaviest decreases in wage rates have been cerns reported a uniform reduction in wage experienced by unskilled or ^common" la- rates averaging 11 per cent. Three of the borers. seven reporting silk manufacturers had also DISTRICT NO. 2—NEW YORK. made uniform reductions amounting to 12 per cent in rates of wages. Four of the six In district No. 2 (New York) the following concerns in the group shipbuilding and repairs reporting industries have been selected for said that there had been uniform reductions especial comment: averaging 11 per cent. In only one of the six printing and publishing firms had there e N m u p m lo b y e e r e o s f . Weekly pay roll. c o e P f n e t d r a e - g - e ce P n e ta r- ge b In e e g n e a n e r r e a d l u t c h ti e o n d e a c v re e a r s a e g s i n r g e p a o b r o te u d t 1 a 2 p p p e e a r r c n e o nt t . Industry. crease of de- to have been so extreme as in other sections in num- crease Apr. 1, Apr. 1, Apr. 1, Apr. 1, ber em- in pay of the country. 1920. 1921. 1920. 1921. ployed. roll. DISTRICT NO. 3—PHILADELPHIA. Clothing 11,926 10,154 $289,700 $248,700 14.9 14.1 Silk 8,906 7,989 212,600 176,200 10.3 17.1 In district No. 3 (Philadelphia) returns have Automobiles 11,519 7,694 326,100 248,700 33.2 23.7 Boots and shoes.. 30,885 26,105 864,800 678,300 15.5 21.6 been tabulated for the following important Printing and publishing 6,592 5,997 241,000 232,800 9.0 3.4 industries: Miscellaneous metal manufacturers 67,560 64,200 2,091,200 2,053,000 5.0 1.8 Shipbuilding and Number of Per repairs 12,982 6,645 412,900 220,700 48.8 46.5 employees. Weekly pay roll. centage Per- Public utilities...108,334 99,160 3,565,000 3,447,000 8.4 3.3 of de- centage of de- Industry. inc rneuasme- crease Returns were received from 137 establish- Apr. 1,Apr. 1, Apr. 1, Apr. 1, bers in pay 1920. 1921. 1920. 1921. em- roll. ments, and of this number 55 per cent had made ployed. reductions in wages since April 1, 1920, and Iron and steel 58,531 39,558 $1,798,999 $924,581 32.4 48.6 nearly 80 per cent of those reporting said that Cotton textiles 5,613 5,170 141,063 126,545 7.9 10.3 reductions had been made on a uniform basis. Woolen textiles... 6,310 5,386 153,604 127,372 14.6 17.1 Silk textiles 4,120 3,694 105,097 91,917 10.3 12.5 When this was not the case, unskilled workers Knit goods 1,858 1,067 47,703 22,506 42.6 52.8 Leather and had generally been the group subjected to the leather goods ... 7,409 4,285 208,876 101,690 42.2 51.3 greatest decrease. As in district No. 1 (Bos-Boots and shoes... 3,785 3,533 92,123 84,595 6.7 8.2 Printing and pubton) no reductions have been made in the lishing 6,329 5,401 179,705 150,776 14,7 16.1 Public utilities....10,576 10,708 383,284 370,851 11.2 3.2 wages of the boot and shoe operatives employed by the nine reporting manufacturers. i Increase. Four railroad and transportation companies similarly report no reduction in wage rates Of the 96 reporting iron and steel companies, and only one of seven other public utility 91 stated that there had been reductions in corporations reported reductions. In the last- rates of wages. The average reduction both named case the average decrease was about for skilled and unskilled workers ranged from 9 per cent. But two of the 11 reporting cloth- about 5 to 25 or 26 per cent. In cotton textiles ing manufacturers stated that wage rates had the wage reductions have affected skilled and been reduced, the average decrease being unskilled workers in about the same degree, about 9 per cent. As employees within the the per cent of reductions ranging from about groups just mentioned have scarcely been 16 to 21 per cent. This was true m the case of affected by wage, reductions (while increases woolen textiles also, but the reductions were have occurred in wages of railway and trans- somewhat less in the case of skilled workers. port workers) and as these groups constitute In silk textiles the reduction ranged from about a very large percentage of the total number of 12 to 15 per cent and there has been slight workers covered by the inquiry in district No. 2 differentiation between the treatment of the (New York), it is not surprising that the per- skilled and unskilled workers. Six out of centage of reduction in weekly pay rolls as eight reporting knit goods establishments Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

530 FEDERAL RESERVE BUIJLETIF. MAT, 1921. stated that there had been reductions of 15 per business, the classes of workers affected, or cent applicable to both skilled and unskilled localities. The only generalization that can workers. Only four of the 23 reporting shoe safely be made is that " common" labor has firms had put into effect reduced rates for un- as elsewhere had its wages reduced in greater skilled workers ranging from 9 to 11 per cent. degree than skilled labor. In the case of six Three of these had reduced the wages of rubber companies, whose records show a drop skilled workers 14 to 16 per cent. Of the 22of 71.3 per cent, in number employed, general leather firms five reported no reduction in the wage reductions have taken place in practically wages of unskilled workers and six reported no all shops, running from 7.5 to 50 per cent and reduction in the wages of skilled workers. In averaging around 24 to 26 per cent. Practice the other cases average reductions for both has been by no means uniform, however, in the skilled and unskilled workers ranged from 10 case of the five reporting automobile factories. to 25 per cent. The 21 printing and publish- Reductions of wage schedules ranging from 10 ing establishments without exception reported to 30 per cent have occurred in some factories, that there had been no change in wage rates to while in other cases no changes have been date. Ten of the 36 reporting public utility com- made. Contrary to the usual policy, the panies had reduced the wages of unskilled labor least reduction had been made in the pay of about 18 per cent, but only three companies an- "common" labor. nounced reductions in the rates paid to skilled The reductions in wages paid by reporting workers. establishments in the southern districts have been decidedly more far-reaching than in DISTRICT NO. 4—CLEVELAND. other parts of the country, and the cuts in the rates paid to "common77 or unskilled labor For district No. 4 (Cleveland) the following have been especially severe. are the principal industries for which reports have been received: DISTRICT NO. 5—RICHMOND. Number of Weekly pay roll. c o e P f n e t d r a e - g - ece P n e t r a - ge tio T n h e in i n d d i u s s tr tr ic ie t s N se o le . c 5 te d ( R fo ic r h d m e o ta n i d le ) d a e r x e a m gi i v n e a n - Industry. crease of de- below: Apr. 1, Apr. 1, Apr. 1, Apr. 1, i b n e n r u em m - - i c n r e p a a s y e 1i A9nn2 0. i 19no2i1. 1920. 1921. ployed. roll. Number of Weekly pay Per I C E r l o o e a n c l t a r a i n n c d d a l s c t m o e k e a l e chin- 3 1 1 4 , , 5 0 5 7 7 1 1 1 6 3 , ,6 3 1 9 4 1 1 $ ,5 4 6 3 8 6 , , 0 79 0 6 7 $ 5 3 2 6 3 6 , , 7 01 7 5 3 1 5 1 6 6 . . 9 4 6 1 6 6 . . 6 2 employees. roll. a c g d e e e n - t o - f a c P g e e e n r t - o - f A R u u e t b r o y b m er o biles 1 4 2 2 7 7 5 , , , 2 6 3 4 8 2 5 6 3 2 1 1 0 3 , , , 0 5 8 8 4 2 5 2 1 1, 8 8 3 6 6 6 8 1 2 , , , 3 3 2 2 8 6 1 5 4 6 2 2 9 0 4 3 4 7 , , , 2 6 9 6 3 9 8 2 1 6 2 7 4 1 4 . . . 1 3 8 2 7 7 8 5 6 . . . 5 3 3 Industry. A 1 p 92 r 0 .l . , A 1 p 92 r 1 .l . , A 1 p 92 r. 0 . 1, A 1 p 92 r. 1 . 1, n c u r e m i e m n a b s - e e r t c a r r d e o e a T - se Pottery 5,532 148,850 161,947 2.4 18.8 ployed. Public utilities 12,652 13,043 362,000 391,876 13.1 18.3 i Increase. Cotton textiles 6,091 5,267 $120,816 $68,433 13.6 43.4 Building and con- There was a very general reduction in wage Fe s r t t r i u li c z t e io r n manufac- 4,201 1,880 77,358 32,766 55.2 57.7 rates made by independent steel mills during turers 3,035 2,212 63,301 28,776 27.1 54.6 Lumber manufactur- February and March, which amounted to ers 2,002 1,755 43,035 24,056 12.3 44.1 about 20 per cent and affected all classes of B G o la o s t s s f a a n ct d o r s i h e o s es 2 1, , 3 2 4 7 0 0 1 1, , 1 8 8 1 4 8 6 52 5 , , 4 0 5 9 5 2 3 5 9 3 , ,1 5 4 5 6 7 1 1 9 1 . . 9 6 2 1 4 8. . 4 6 workers. The Steel Corporation, however, Coal companies 4,986 4,274 253,412 215,146 14.3 15.1 made no changes in wage scales in its plants. The report from district No. 4 (Cleveland) The fall in rates paid by four reporting cotstates that, among the lines covered by the ton mills has been general and has averaged survey, pay rolls in four reporting lines— about 37.4 per cent, rising to 45 per cent for namely, manufacturers of women's clothing, some workers in one establishment. All but pottery, public utilities and construction com- one of eight building and construction companies—show increases in rates of pay. This panies reported decreases ranging from 10 to is due to the fact that these industries are 50 per cent. In two cases extreme cuts of 50 working under wage agreements negotiated per cent were stated to apply to " common during the spring and summer months and labor.'7 The returns from the seven fertilizer generally covering a period of a year. Other- manufacturers show drastic cuts in the wages of wise decreases in rates of wages have been the unskilled workers who form the bulk of quite general, although there has been no the employees. The reductions were approxiuniformity either as regards the nature of the mately 41 per cent, while the wages of skilled Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

MAT, 1921. FEDERAL RESERVE BULLETIN. 531 employees had not been reduced more than 16 the report from district No. 7 (Chicago) is to 20 per cent. Five lumber manufacturers included in the following table: reported that the rates of wages paid to skilled workers had been reduced 10 to 15 per cent, w 40 h i p le e r th c e e n u t n s a k n il d le i d n w ex o t r r k e e m rs e h c a a d s e d s r o 5 p 0 p p ed e r a c b e o n u t t . e N m u p m lo b y e e r e o s f . Weekly pay roll. ce P n e t r a - ge ce P n e t r a - ge of de- of de- Of the six glass factories three reported no re- Industry. crease crease s d k u i c ll t e i d o n l ; a b o o n r e ; a a n 1 o 0 th p e e r, r 1 ce 5 n p t e r r e d c u e c n t t i o f n o r f o y r o u u n n g - A 19 p 2 r 0 . . l, Ap 19 r 2 . 0 . 1, A 1 p 9 r 2 . 1 . 1, i b p n e l o n r y u e e m m d - - . in r o p ll a . y people; another, 20 per cent for unskilled and 10 per cent for skilled workers. No reduc- Automobiles and accessories 48,003 21,248 $1,898,269 $682,284 55.7 64.1 tions are reported by three coal companies, and Chemicals, paints, and soap 9,934 5,499 299,095 142,855 44. 52.2 two boot and shoe manufacturers have like- Clothing 21,251 15,781 795,059 540,673 25.7 32.0 wise maintained the same scale of wages. Coalmining 4,r~~ 3,918 202,484 160,706 20.6 Contractors and 10.7 builders 11,962 3,580 261,354 96,691 63.0 Iron, steel, and 70.1 DISTRICT NO. 6—ATLANTA. brass 18,202 722,572 355,775 50.8 Lumber and mill 45.7 workers 10,117 7,396 328,036 196,922 40.0 The selected list of reporting industries for Farm implements 26.9 and equipment. 19,872 12,222 814,701 449,390 38.5 44.8 district No. 6 (Atlanta) follows: Packers 78,874 61,516 2,172,257 1,706,298 22.0 21.5 Public utility.... 30,651 29,201 1,082,340 1,201,916 4.7 U6.4 i Increase. Number of Weekly pay Per- Per employees. roll. centagecentage of de- of de- In the case of the concerns manufacturing Industry. in c r n ea u s m e - cr i e n ase automobiles and accessories a majority of the Apr. 1,Apr. 1,Apr. 1,Apr. 1, ber em- Pay establishments report that all grades of workers 1920. 1921. 1920. 1921. ployed. roll. have been equally affected by percentage reductions, which range from 7 to 25 per cent, accord- Cotton textiles. 4,110 3,491$76,971$46,014 15.0 40.2 Lumber 1,197 1,279 21,0261 15,544 16.9 26.1 ing to establishments. Sixteen of the 19 clothing Public utilities 3,622 3,535 94,877 97,920 2.4 13.2 concerns making reports state that there has been no decrease in the rates of wages paid. i Increase. In a limited number of other instances de- As in district No. 5 (Richmond), reductions creases have ranged from 5 to 20 per cent. Of in wage rates by cotton mills have been ex- the 61 concerns manufacturing iron and steel tensive, amounting in one case to 34 per cent and brass, 19 report no decrease in wage rates. as a result of three recent reductions. In The others record decreases ranging from 5 to another instance, a uniform reduction of 37.5 20 per cent. No generalization regarding the per cent has been put into effect; in two other class of workers affected is possible, as in some cases reductions of 20 per cent have been cases reductions have been confined to the made; and in a third instance one of 25 per skilled and in other instances applied to the cent. These changes applied to all classes of unskilled. Manufacturers of farm implements help except in one mill, which stated that and equipment report no decrease in wage skilled hands had been reduced only 10 per rates in 16 out of 84 cases. In other instances cent. New wage schedules recently instituted decreases range from 5 to 25 per cent. As a by reporting lumber companies provide for rule reductions have been uniform within reductions of 30 to 40 per cent for unskilled establishments. Where differences exist, howlabor. Six street railway and electrical com- ever, the reduction in the rates paid to common panies stated that there had been some re- laborers has been greater. Three of the 17 duction made in wages of trackmen and un- reporting packers state that there have been no skilled labor. decreases in wage rates. In the other cases reductions have varied from 8 to 15 per cent. Contractors and builders report decreases for DISTRICT NO. 7—CHICAGO. 21 out of 31 reporting firms, the decreases A compilation of the data relating to some varying from 10 to 25 per cent. Sixteen of the of the more important industries covered by 26 reporting public utility companies state that Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

532 FEDERAL RESERVE BULLETIN. MAT, 1021. there has been no reduction in wage rates. In t 1 h 7 e o to th e 3 r 0 i n p st e a r n c c e e s n t d . e cr R ea e s d e u s c h ti a o v n e s v h a a ri v e e d f b r e o e m n e N m u p m lo b y e e r e o s f . Wee r k o l l y l . pay c o e P n f e ta r d - g e- e c o e P f n e t d a r e - g - e l l a a r b g o e r l e y r s c . onfined to trackmen and ^common" Industry. A 1 p 92 r 0 . . 1,A 1 p 92 r 1 . . 1, A 1 p 9 r 2 . 0 . 1, A 1 p 92 r 1 . . 1, i b p n c e l r o n e r y u a e s e m m e d - . - i c n r r o e p a ll a s . y e DISTRICT NO. 8—ST. LOUIS. A table showing changes in numbers em- K M n in it i n g g oods... 1 3 4 , , 5 8 2 2 0 8 3 8 , , 2 6 2 0 9 7 $ 50 5 1 9 , , 6 2 3 8 2 5 2 $ 2 5 9 4 , ,1 2 0 9 4 6 4 8 1 . . 3 9 5 8 4 . . 7 3 ployed and in pay roll for specified industries Public utility 6,058 5,864 202,115 220,198 3.2 19.0 in district No. 8 (St. Louis) follows: 1 Increase. N em u p m lo b y e e r e o s f . Weekly pay roll. ce P n e t r a - ge Per- The greatest reduction in wage rates occurred of de- centage in the case of construction companies, which Industry. Apr. 1,Apr. 1, Apr. 1, Apr. 1, i b n c e r n e r a u e s m m e - -i c o n r f e p a d a s e y e - s ti h o o n w s e v d a r r e y d in u g c t f i r o o n m s o 1 f 5 2 t 0 o t o 2 0 3 0 p e p r e c r e c n e t n w t. ere R m ed a u d c e - 1920. 1921. 1920. 1921. ployed. roll. by mining and milling companies. Two out of three public utility companies reported in- W Sto h v o e le m sa a le n h u a fa r c d t w ur a i r n e g . 3 2 , , 0 7 9 12 4 2 1 , , 5 21 5 1 3 $1 8 1 8 7 , , 3 0 2 5 2 1 $1 2 1 4 1 , , 5 2 8 2 9 9 5 1 5 7 . . 3 5 7 5 2 . . 0 2 creases in wage rates, in one case amounting to Building materials.. 2,350 1,208 63,421 28,886 48.6 54.5 10 per cent. Chemicals,paints,etc 1,695 1,154 36,293 27,522 31.9 24.2 Clothing and dry goods...... . 4,084 3,320 94,447 81,013 18.7 14.2 Printing 1,524 1,181 50,338 39,422 22.5 21.7 DISTRICT NO. 10—KANSAS CITY. Iron and steel products. ..... 5,971 4,295 150,726 94,070 28.1 37.6 Public utilities 7,417 7,590 261,611 296,222 12.3 U3.2 The table which follows gives returns in some detail for the principal mining industries of 1 Increase. district No. 10 (Kansas City) and for the On the whole, reductions in wages have not packing industry: been so numerous nor so great in district No. 8 (St. Louis) as in the sections to the south and Number of Weekly pay east, and where reductions have occurred the employees. roll. Percent- Perskilled labor has not been affected in very age of centmany instances. Only "common" labor was de- age of Industry. crease deaffected by reduction in wage rates made by six in crease of the seven reporting concerns engaged in the A 1 p 92 r 0 . . 1,A 1 p 92 r 1 . . 1, A 1 p 92 r 0 . . 1, A 19 p 2 r 1 . . 1, n b u e m r - S in L production of building materials. Cuts varied employed. irom 10 to 50 per cent, covering all workers. Only one of six reporting stove manufacturing concerns reported a reduction in rates. For Lead and zinc 8,900 2,780 $267,000 $58,380 68.7 78.1 Smelting 6,413 3,591 210,827 107,458 44.0 49.0 wholesale hardware establishments no reduc- Meatpacking 4,292 3,016 108,093 67,737 29.7 37.3 tion in wage rates are recorded, although one is in prospect. Of the 14 establishments en- The decreases in rates of wages paid to lead gaged in the manufacture of iron and steel and zinc miners have been especially severe, products nine report no changes in wage rates, being approximately 33J per cent to date. while, in the case of the others, decreases range Wage reductions nave been uniform, but from 8 to 25 per cent. About two-thirds of where outside labor enters, as carpenters, the workers covered by reports from clothing bricklayers, and machinists, the extent of the and dry goods houses had had their rates of reduction is not shown in the reports. In the wages decreased 10 per cent. In the other Colorado metal mines, for which more specific cases no change had been made. Manufacdata are not obtainable, it is estimated that turers of chemicals and paint announce no only about 4,000 men are employed, as comreduction except in one instance, where a 10 pared with a normal number of 10,000. No per cent drop was made. exact figures as to the number of men employed in the smelters are available at this DISTRICT NO. 9—MINNEAPOLIS. time, but it is known that the smelters are Details for a group of the leading reporting running at a very much reduced capacity and industries in district No. 9 (Minneapolis) are a number are shut down entirely. The minigiven in the accompanying table: mum wage per day at the mines is now as Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

MAT, 1921. FEDEKAL RESERVE BULLETIN. 533 follows: Leadville, $4; Cripple Creek, $3.50; DISTRICT NO. 12—SAN FRANCISCO. Silverton, $4.25; Teluride, $4. Returns from district No. 12 (San Francisco) The wages for more skilled men run up to $1 are as follows for leading lines: and $1.50 more than the minimum. These figures represent a flat 50-cent reduction since the first of the year. In the smelters the minimum e N m u p m lo b y e e r e o s f . Weekly pay roll. c P e e n r t - - Perwage is $3 and the maximum $5.55. It repre- age of centage of s o e f n t t h s e a y c e u a t r . o f I 1 t 0 i s t o s ta 1 t 5 e d p e t r h c a e t n e t ff s o in rt c s e t t o h e re f a i d rs - t Industry. cre in ase cr d e e a - se April 1, April 1, April 1, April 1, | num- in just the situation in meat-packing houses at 1920. 1921. 1920. 1921. } ber pay em- roll. packing centers of this district have resulted ployed. in a reduction of approximately 30 per cent in the number of employees at these plants Copper mining 12,152 8,033 $386,745 $223,751 33.9 42.1 within the year. There are probably now Lumber 7,554 4,633 246,880 134,859 38.7 45.4 Oil producing and about 35,000 employees at the larger plants refinin 22,428 23,096 784,549 954, 826 13.0 121.7 in the six packing cities of Kansas City, Okla- S P h u i b p l b ic u i u ld ti in li g ties.... 2 1 2 9 , , 2 5 0 7 5 1 2 2 1 4 , ,0 9 0 1 6 9 5 66 9 3 2 , , 2 9 6 8 1 8 8 7 1 9 8 0 , , 0 5 2 4 9 8 U 1 2 8 . . 0 1 1 U 3 9 8 . . 1 1 homa City, Omaha, St. Joseph, Denver, and Wichita, compared with approximately 50,000 i Increase. employees on April 1, 1920. On March 14 of In district No. 12 (San Francisco) the situathis year there was inaugurated a reduction tion is different from that prevailing in other of 8 cents per hour for all hourly workers and parts of the country. Keporting establish- 12J per cent on piece work. The scale is now ments were employing 6.2 per cent fewer men in force, although the employees have made an than a year ago, as the number on the pay roll appeal to the United States Labor Department. dropped from 89,977 to 84,412, but pay roll In the bituminous coal field there has been totals increased 5.3 per cent. The public utility no reduction of wages, as the contract between companies report no reduction in the wages of the United Mine Workers' Organization and regular employees. On the contrary, increases the Southwest Interstate Coal Operators' in rates have occurred during the year. Two Association does not expire until April 1, 1921. companies state that lower rates are being paid On April 1, 1920, the number of men em- for common labor. Similarly, steamship comployed in the four States was approximately panies state that there has been no decrease in 32,000, and it is assumed that the number on rates of wages paid to any class or grade of the pay rolls on April 1, 1921, closely approxi- employees, and one firm employing 3,800 men mates this number, although the mines are had made an increase of $2.50 per man per being operated at less than one-half capacity week due to premium rates. There was likethis year, whereas a year ago they were oper- wise no reduction in rates of wages paid by oil ated at more than three-fourths full capacity. producers and refiners. As these groups of establishments represent a very large percentage of total returns, it is not surprisinn that the DISTRICT NO. 11—DALLAS. total weekly pay rolls should show an increase. Twenty-eight replies to questionnaires sent The lumber companies have all reduced to different counties in the State of Texas mak- wages in varying degrees, and as a rule the ing inquiry concerning changes which had been cuts have been considerable, rising to 35 or 40 made in the wages of farm labor were received. per cent in some cases. Seven milling con- Of these, 17 report reductions of 50 per cent in cerns also report reductions effective since rates; 7 report a 35 per cent reduction, and 4 a January varying from 10 to 12.5 per cent and reduction of 25 per cent. Twelve building applicable to all employees. A number of contractors reported that there had been a miscellaneous unclassified establishments also reduction in the wages of nonunion skilled stated that there had been reductions. Remechanics of about 10 per cent, while the wages ports on wage schedules for ten copper mines of unskilled workers had fallen about 25 per show decreases of from 14.8 per cent to 22.1 per cent. There had been no reduction in the scale cent for miners, of from 8.3 per cent to 23.1 per of wages paid to union labor. cent for mechanics, and of from 10.5 per cent to Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

534 FEDEKAL RESERVE BULLETIN. MAT, 1921. 27 per cent for muckers (common labor). States certificates of indebtedness. As com- There have been decreases in all mines and for pared to last year, sales have been much all classes of labor, but for common labor there larger. have been greater percentage reductions in The supply of bills has decreased, but is most cases than for skilled labor. ample for the requirements of the market. Factors in reducing the supply are the disposition of business firms to liquidate acceptances covering goods in warehouses and the lessen- Acceptance Market. ing in import and export business. Latest reports of the Department of Commerce show The Federal Eeserve Banks have furnished that March exports totaled $387,000,000 as the following reports on the condition of the compared to $820,000,000 in the previous year, acceptance market in their respective districts and imports totaled $252,000,000 against for the period prior to April 23: $524,000,000 last year. District No. 2 (New YorTc).—Ninety-day Commercial banking institutions are the bills of the large New York banks held firmly largest purchasers of acceptances, but it is at 5f to 6 per cent during the last 10 days of stated that industrial and business corpora- March and until after the completion of April tions have purchased considerable amounts 1 payments. At that time there was a further with the funds released by curtailment of their easing of call money rates, which was reflected operations. Acceptance dealers complain of in the increased demand for bills. Some dealthe State laws restricting investments of savers reduced their offering rate for the best 90ings banks and insurance companies, as they day bills to 5J per cent, while others quoted 5f feel that this class of paper furnishes an inor 5f. During the first three weeks of April vestment combining security and liquidity in the ruling rate fluctuated between these figures, a high degree. The purchases of the Federal with a tendency toward the end of the period Reserve Bank of Philadelphia have averaged to center on 5f. $2,741,000 weekly thus far in 1921, as com- Fluctuations in the volume of sales fol- pared to a weekly average of $1,469,000 in lowed in the main the movements of money 1920 and $270,000 in 1919. rates. During the second week of April, when Inquiries among accepting banking institurates were lower and there was a particularly tions in Philadelphia show that during the active demand, dealers7 portfolios were remonth ending A.pril 10, 11 of these instituduced sharply. But in later weeks sales were tions accepted bills aggregating $4,561,000 as somewhat smaller and portfolios were built compared to $5,321,000 in the previous month, up to about the same amount as at the begina decline of 14 per cent. The total amount of ning of the month. Evidence of the further their acceptances outstanding on April 10 was broadening of this market is found in a report $13,150,000; on March 10 the amount was by two dealers of the addition of 45 new puy- $14,095,000. Cotton, woo], silk, leather, and ers of bankers7 acceptances to their lists within oil figure largely among the commodities covthree weeks. This bank continues to add two ered by these acceptances. or three members each week to the list of Selling rates quoted by dealers operating in member banks for whom bills are purchased. the district are given below, with comparative While bills drawn for the purpose of furnishrates a month ago and a year ago: ing dollar exchange continue to predominate in the local market, there has been an increased proportion of both metal, grain, and Eligible members' Eligible nonmembers' packers' bills recently. The volume of sugar bills. bills. bills offered has fluctuated rather widely, but Maturity. these, also, are in heavier volume now than a April, March, April, April, March, April, 1921. 1921. 1920. 1921. 1920. month ago. The minimum buying rate of the Federal Re- 30 days. 5§-5f 5f-6 serve Bank has remained unchanged at 5£ to 6 60 days. 5f-5| 5£-6£ 51-6 per cent, according to maturity, for indorsed 90 days. 51-6 os-6j prime bills. District No. S (Philadelphia).—Sales of District No. 4 (Cleveland).—The acceptance bankers7 acceptances in the Third Federal Re- market for the month was spotty and the serve District during the first few weeks of rates fluctuating. Brokers were unable to April did not keep pace with the earlier months maintain uniformity in rates and purchasers of the year. This is due in part* to the fact that shopped wide for prime bills. The easing off many institutions preferred to invest in United and wide range of call money rates in New Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

MAT, 1921. FEDERAL RESERVE BULLETIN. 535 York and the zealousness of certain brokers in District No. 7 (Chicago).—Improvement in the open market to permanently force accept- the demand for acceptances is noted. Statisance rates under the 6 per cent mark brought tics for March over February showed increased about a variance in selling rates of prime sales. Most of this demand has been from the paper. Brokers differed in opinion as to surburban and country banks. One of the whether the acceptance market should change largest dealers reported 80 per cent of the bills with each indication of better money rates and sold to be of 90-day maturity and the remainder conditions throughout the country and offered divided between 30 and 60 day maturities. their bills accordingly. The acceptances sold by one bank showed 25 A good variety of prime paper was offered in per cent of the acceptances drawn against the market, in addition to the usual amount grain, 25 per cent drawn against sugar, and the of corporation bills and other less-known remainder against oil, machinery, tobacco, paper, but was not absorbed as readily as last coffee, and cotton. month. Many purchasers took less-known The March returns from three banks and one names as the rates for prime paper declined. dealer show increase over February as follows: The demand for corporation bills continued 26 per cent in amount of sales, 2 per cent in sluggish. Bills created against foreign trans- amount of purchases, and 9 per cent in amount actions fell off, but there was a corresponding held at the close of month. The figures for increase in domestic paper, due to seasonal these precentages are given below: demands. The banks remained the principal purchasers but there was also an increased demand by corporations and individuals. March. February. There was considerable increase in the turnover of paper over the previous month. The Total bankers' acceptances bought during present rates for prime 90-day bills vary be- month $18,980,377 $18,558,189 Total bankers' acceptances sold during month 21,667,561 17,182,243 tween 5| per cent and 5J per cent. Total bankers' acceptances held at close of month 3,704,819 3,393,617 District No. 6 (Atlanta),—The acceptance market in the Sixth Federal Reserve District March. February. has been very inactive during the early months of this year. This is attributed to the inactive High. Low. High. Low. movement of commodities, particularly foreign shipments of cotton. Nowhere in the district Selling rates for prime bills: have acceptances been executed to any great 30-day maturity extent, except at New Orleans, which is the 60-day maturity 90-day maturity principal export city of the district, and there each succeeding month since December, 1920, has shown a decline. The selling rates show a slight increase for The amount of acceptances rediscounted by March over February. the Federal Reserve Bank of Atlanta for its District No. 8 (St. Louis).—The demand for member banks during March was slightly less bankers' acceptances was more active in this than the amount for the month of February, district during the period from March 15 to and only approximately 30 per cent of the April 15 than for some previous time. This sum discounted during the month of January demand came in the main from large mercantile of this year. The total amount of acceptances interests who found themselves with surplus discounted by the Federal Reserve Bank for funds for investment. There has also been a its member banks during the first three months spotty demand for bankers' acceptances from of 1921 was approximately 11 per cent of the several of the larger banks in the principal cities amount rediscounted during the same months of the district. Rates during this time have of 1920. been more or less unsettled, and recently Export movements of cotton financed by brokers were offering unindorsed prime bills at the War Finance Corporation and the Federal a flat rate of 5J per cent for all maturities. International Banking Co. should materially From reports it does not appear that this offerstrengthen the acceptance market in this ing has been either attractive or a true measure district when cotton commences to move from of the market for such investments. There is interior points to port cities. evidence that some of the smaller banks in the Acceptances have never been used in this district are using bankers' acceptances as a Federal Reserve district to any very great secondary reserve. extent, although there is a growing tendency The high, low, and customary rates prevailfor their use during periods of crop movement. ing in St. Louis and Louisville, as reported by Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

536 FEDERAL RESERVE BUI^ETIN. MAT, 1921. banks in those cities, were as follows between tions will result, although their general use may March 15 and April 15: be slow of accomplishment. District No. 12 (San Francisco).—Bankers' acceptances purchased in the open market de- Bankers' acceptances clined by $16,200,000 during the last two weeks (unindorsed), 60 to 90 days. of March and on April 8 stood at $14,030,000, High. Low. Cu a s r t y o . m- c o o f m p p ap ar e e r d o w f i $ th 1 1 a 9 m ,00 a 0 x , i 0 m 0 u 0 m o n h o J l a d n in u g a r o y f t 3 h 0 i , s 1 c 9 la 2 s 0 s . During this same period bills discounted for St. Louis ? 3 6 member banks increased $81,000,000, indicat- Louisville 6 ing that funds previously invested in outside paper were diverted to meeting the demands of District No. 9 (Minneapolis).—Interest rates member banks for funds to lend their customers in the Minneapolis money market on April 15 in this district. as compared with March 15 were unchanged at 7 per cent for customers7 loans at banks and 8 per cent for commercial paper. There were re- Methods Followed by City Banks in Granting cessions, however, of five-eighths to three- Accommodation to Correspondents. fourths per cent in bankers' acceptances, and over one-half per cent on collateral-secured This is the third and final article giving the loans and cattle paper. The prevailing rate on results of a study made by the Division of April 15 was 5| per cent on bankers' accept- Analysis and Research of the Federal Reserve ances and 8 per cent on collateral notes and Board of the methods pursued by reserve city cattle loans. banks in granting accommodation to their correspondents.1 In the two preceding articles District No. 10 (Kansas City).—Bankers are were considered data from New York and devoting their resources and energies to the from the West and Southwest. The present situation at home and for the present are putarticle is based upon information obtained ting little of their surplus into acceptances or from banks in Boston, Philadelphia, Richother forms of investment. mond, Baltimore, and Atlanta. For compara- District No. 11 (Dallas).—The local accepttive purposes, reference will be made at certain ance market has been very dull during the past points to the practices relative to specific points 30 days, and offerings have been in limited adopted in centers previously considered, and amounts only. On March 31 this bank held acthese will be contrasted with practices in the ceptances aggregating $20,906, as compared centers to which major consideration is given with $1,186,210 on March 31, 1920. herein. A recent inquiry of 64 banks engaged in extending acceptance credits in this district To indicate more clearly the relative imelicited replies from 10, showing that those portance with respect to this type of business institutions had acceptances outstanding aggre- of the centers included in the present article, gating $1,745,000, of which $706,000 was based the following table has been prepared, showing on import and export transactions, and $939,000 loans, both direct and indirect, made by on domestic shipments, or commodities in national banks in these cities to other banks storage. The average maturity of the accept- and trust companies. ances outstanding was 90 days. [In thousands of dollars.] No activity is anticipated in the acceptance market in this district until the financial situa- Number tion materially improves. In past seasons, of banks. Loans. especially in the fall when the banks of the district were in surplus funds, acceptances and Boston ... 11 13,975 commercial paper have been sought as an in- Philadelphia 29 28,156 Richmond 7 5,593 vestment, and have proven an attractive outlet Baltimore 13 2,084 for idle funds. For the past several months, Atlanta 5 5,585 however, there has been little demand for ac- Total 55, 393 Total for all reserve cities having a populaceptances, and purchases by the banks in this tion of over 50,000 474, 393 district have been negligible. There have been no new accepting banks within the month. The figures are taken from the annual report The attractiveness of acceptance credits as a of the Comptroller of the Currency for 1919, method of finance is fully appreciated, and with the large agricultural interests of the Eleventh 1 The two former articles appeared respectively in the FEDERAL District a large increase in acceptance transac- RESERVE£BULLETIN, June, 1920 issue, pp. 583-592, and in the'January. 1921 issue, pp,r33-41. " * Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

MAT, 1921. FEDERAL RESERVE BULLETIN. 537 volume I, pages 78-81, and relate to December at all for their credit information, but, on the 31, 1918. other hand, several banks in that center have The following figures, taken from pages 46 files which are among the most highly developed and 47, show loans by national banks in these of any reported by the banks included in the cities to other banks and trust companies in present survey. One bank divides its file into the form of bills payable and rediscounts six sections, as follows: separate from loans on certificates of deposit, (1) General information regarding instituas of March 4, 1919: tions, memoranda on line of credit granted and terms, and memoranda on collection arrange- [In thousands of dollars.] ments and terms. (2) Correspondence. Bills pay- Certifi- (3) Inquiries. able and cates of Total. redis- deposit. (4) Interviews. counts. (5) Miscellaneous data. (6) Record of banks to whom credit informa- Boston 12,693 1,502 14,195 Philadelphia. 25,115 20 25,135 tion was furnished on this subject. Richmond 6,326 6,326 The information from statements is recorded Baltimore.... 2,155 2,155 Atlanta 6,854 26 6,880 on cards by this bank and statements are filed Total 53,143 1,548 54,691 elsewhere. On the other hand, some institu- Total for all central reserve and tions merely have two sections to the folder, one reserve cities \ 234,050 17,310 251, 360 for correspondence and one for statements. Annual revision of credit information is the In the report of the Comptroller of the general policy. That is to say, there is then a Currency for 1920, Volume I, pages 210-213, complete rechecking of information, and not a somewhat different classification is followed. mere addition of data that comes to attention The figures for January 31, 1920, as given from time to time, and is placed in the file as it there, are as follows: appears. The Richmond and Atlanta banks make revision at least once a year, with the [In thousands of dollars.] exception of one Richmond bank which makes revision every six months or oftener at times, Direct and Redis- c B e i i l v ls a b re le - and another which makes a revision when ap- Number indirect counts purchased plication for loans is made, and one Atlanta of banks. loans made made to from or to banks. banks. discounted bank which does it "as frequently as necesfor banks. sary." Three Boston banks have no regular time of revision, but, on the other hand, two Boston 12 10,225 12,460 358 other Boston banks revise at least annually. Philadelphia « 22,715 2,340 241 Richmond 3, 201 1,310 625 Several banks in the other centers also have no Baltimore 13 5,101 721 4 858 471 regular time of revision, but the majority of banks revise their data annually or at least Total 42,100 17,302 1,224 Total for all cities annually, having a population of over 50,000 595 268, 201 147,450 164,310 Total, Dec. 31, EXPERIENCE OF OTHER INSTITUTIONS. 1918 600 232, 455 115,015 126,924 In all the centers included in the present survey, considerable stress appears to be placed I. SOURCES OF INFORMATION. upon the experience of other institutions with the subject. One Philadelphia institution CONTENTS OF THE FILE. states that "information as to standing of The banks in the centers included in the banks is derived chiefly from checkings received present survey differ greatly with respect to from other institutions." This parallels the the elaborateness of the files which they main- practice of New York City banks, rather than tain. As indicated previously, practice varies that of the western institutions included in the with the relative importance placed upon previous article. Certain Boston banks, howmaintaining the impressions on the subject ever, obtain no data of this description, and one bank in the mind, instead of having them does this only in the case of new banks, or banks recorded in writing and filed away, as well hard pressed for funds. One Richmond bank as with the size of the institution and the states that when extending credit to a "small number of borrowing accounts. No pro- bank" it writes to "banks and business men in nounced tendencies are found in any one center. the vicinity in which the bank is located," while Two of the Boston banks have no special records where an "old bank" is under consideration it Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

538 FEDERAL RESERVE BULLETIN. MAY, 1921. " checks it up with its correspondents and with banks and business men in its vicinity." A I. 2. Cash. Boston bank distinguishes between banks Bills discounted, not due. Due from banks. located in and outside New England. In the Time loans against collateral. Due from Treas. U. S. and 5 per Demand loans against collateral. centredem. fund. former case, communication is generally had Overdrafts, secured and unsecured. Total cash due from banks IJ. S. bonds to secure circulation and Treas. U. S. with mutual correspondents, while in the case (par value), — per cent. Loans and discounts. of New England member banks the Federal U.S. bonds to secure U.S. depos- Overdrafts. its (par value), — per cent. Stocks and bonds. Reserve Bank furnishes the best source of Other U. S. bonds (par value), — Banking house, furniture, and fixper cent. tures. information, supplemented by reports from Premiums on U. S. bonds. Other real estate. New York banks dealing with the subject. Stocks, securities, etc. Customers' liability a/c accept- Banking house, furniture, and fix- ances. Occasional use is made of the Federal Reserve tures. Interest earned but not collected. Other real estate owned. Other assets. Bank by one Atlanta bank, which also fre- Mortgages owned. Miscellaneous resources. quently consults the State banking department. Due from banks and bankers. Due from approved reserve agents. Total assets. The latter is the only case reported in the entire Exchanges for clearing house. survey of such consultation, with the exception Checks and other cash items. Capital. Cash on hand. Surplus and undivided profits. of one New York bank. As indicated above, Five per cent redemption fund. Unearned discount. Due from Treasurer U. S. Reserved for interest and taxes. mutual correspondents are supplemented in Circulation. certain cases by banks or more rarely individ- Total assets. Bank deposits. Other deposits. uals in the vicinity, perhaps in the community Capital stock. Total deposits. Surplus fund. Bond account. where the subject bank is located. One bank Undivided profits, less current ex- Acceptances. inquires at the time the account is opened of penses and taxes paid. Bills payable and rediscounts. Dividends unpaid. Other liabilities. all correspondents of the subject bank which Due to banks and bankers (not approved reserve agents). Total liabilities. are listed in one of the standard directories. Due to approved reserve agents. The correspondents communicated with are Ind. deposits subject to check. Correspondents. Time certificates of deposit. frequently varied from time to time. One Demand certificates of deposit. Cashier's checks outstanding. Philadelphia institution states that telephonic Certified checks. 3. inquiry to other correspondents is frequently U. S. deposits. Circulation. Loans and discounts. made. Notes and bills rediscounted. Overdrafts. Bills payable. U. S. bonds—Cir.,U. S. dep.,postal The information requested may be summar- Certificates of deposit representing savings. money borrowed. Stocks, bonds, securities, etc. ized under the heads of (1) integrity of manage- Liabilities other than those above Banking house and furniture. ment; (2) condition of the bank; (3) borrowing stated. Other real estate. Bonds borrowed. Due from other banks. aspects; (4) past relations, including size of Reserved for . Due from reserve banks. Checks, cash items, exch. for clearaccount and whether or not it was profitable; Total liabilities. ance. and (5) whether any adverse information has Cash in vault and with Federal Reserve Bank. come to their attention. The extent to which Red. fund and due from U. S. Treas. detailed data under the third and fourth heads Customers' liability under L/C and in particular are requested varies considerably. accept. Interest earned but not collected. Other assets. STATEMENTS OF THE SUBJECT BANK. Total assets. There appears to be a more general tendency Capital stock. among the centers considered in the present Surplus. Undivided profits. survey to require detailed statements of the National bank notes. subject than was found among banks covered Due to banks. Individual deposits. in either of the two preceding articles. While Bank deposits. Savings and time deposits. the majority of banks in the centers considered U.S. bonds borrowed. in the present article also regard the brief Bills payable. 4. Taxes. statement as satisfactory, a considerable num- L/C and acceptances. Loans and discounts. ber of institutions require detailed statements. Cust.—Liab. a/c acceptances. Miscellaneous liabilities. One institution in Atlanta reports that it "files Stocks and bonds. Real estate. Total liabilities. regular published statements of its banks, and Overdrafts. Cash and in banks. Sales of stock. from those to whom it extends credit asks for Sundries. detailed statements annually." Total assets. Comparative statement forms are employed Capital. Capital. Surplus and profits. by a considerable number of the banks. The Surplus and profits. Bank deposits. data included by certain institutions are given Deposits. Individual deposits. Bills payable and rediscounts. Rediscounts and bills payable. in the following table. Form 5 is in process of Circulation. Bonds borrowed. Sundries. revision. This is the only one which is ar- Loans. ranged horizontally, the remainder being ar- Total liabilities. Overdrafts. Stocks and bonds. ranged vertically. Forms 4 and 5 are con- Our account loans. Other real estate. Balance. Federal reserve stock. tained on cards, while the others are on sheets. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

MAT, 1921. FEDERAL RESERVE BULLETIN. 539 Various special records analyzing the condi- a third has no occasion, as data obtained from tion of the account are also kept. Among these other sources are sufficient. Two Atlanta may be mentioned an analysis card showing banks obtain reports, another only on small high, low, and average loans each month; country banks, while another seldom uses amount of net balance and book balance and them, a fifth has found them "inadequate," per cent of net balance to loans; income on the and valuable only in so far as light is occasionnet balance, transit overhead cost, and net ally thrown on the connections of the officers, profit after deducting such cost. Another bank and a sixth does not use them. records on one side of a card average book balance and average amount outstanding, II. RELATION OF AMOUNT OF ACCOMMODATION amount of exchange (cost and collected), TO BALANCE MAINTAINED—"CLEAN-UP" amount of interest (cost and allowance), and REQUIREMENTS . net profit or loss; as well as volume, items handled, and their exchange, and on the other side BALANCES. monthly discounts in hundreds, showing maximum and minimum amounts and rate, divided A considerable number of institutions in the into maker, indorser, United States securities, centers under consideration require a miniand interest. One bank keeps a book record mum average balance. In general this is of lines, existing loans, and collection arrange- 20 per cent, although in certain cases from ments on the loan officer's desk. 10 to 20 per cent, or from 15 to 20 per cent, may be specified instead. One Richmond REPRESENTATIVES7 VISITS AND AGENCY institution has more fully explained its re- REPORTS. quirements as follows: Our general policy is to extend credit to banks on a Practice differs greatly as to the maintenance basis of five times their average balance for the previous of men in the field to visit correspondents, but six months, and under present conditions we expect them the use of such representatives is the exception, to maintain an average of not less than 20 per cent of the and most of the banks instead have corre- loan. All of our correspondents are not complying with this requirement at this time, but it will have a conspondents visited by an officer, generally once siderable bearing on future credit extended. a year. One Baltimore bank experimented Similarly, one Atlanta bank states that several years ago with a representative, but after accommodation is extended, "we expect " thought that it did not yield results/' while collected balances of at least 20 per cent of another has had but one occasion in recent the loan to be maintained.'7 Several other years to have a representative make a report banks in that center apparently have similar on conditions, where a correspondent had failed requirements, but one bank states that it to make the proper curtailment in its indebtedhas waived its requirements during the past ness. Philadelphia banks reporting have no six months owing to the unusual conditions regular representatives, while in Atlanta use is prevailing, and another specifically offsets made of them by several banks, as is also the balances during the off season against those case with one bank in Richmond and one bank during borrowing periods. A Philadelphia in Boston, the latter having several men who bank which usually grants accommodation travel a greater portion of the time. The to five times the average daily balance gener- Richmond bank states: ally restricts credit on later applications if Such a representative makes a detailed report covering inadequate balances are maintained, but states his observations as to the character and caliber of the men that many institutions first use up their running the bank, appearance of the bank, class of cusbalance and then borrow to restore it. A tomers, and conversations of the officers; also impressions gained by him from inquiries made in the bank's town Baltimore bank has made exception in the and neighboring towns. past in the case of institutions with which Less use is apparently made of the mercan- they have arrangements whereby the other tile agency reports in the centers under con- banks "collected certain items free of exsideration than in either New York or in the change, charged direct to their accounts, with western centers included in the previous the result that the actual balances as shown article. None of the reporting Philadelphia on its books were considerably less than would banks employs them, while the same is true otherwise have been the case, in addition to a in Boston, with the exception of one bank saving in exchange." This then provided a which "seldom ever'7 does, and in Richmond, satisfactory profit on the account, but the with the exception of one bank which fre- condition has been materially affected by the quently uses them. One Baltimore bank exchange facilities of the Federal Reserve uses them; another, however, only rarely; while System. A Richmond bank states that it Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

540 FEDERAL RESERVE BULLETIN. MAT, 1921. endeavors to make a net profit of — per cent borrowing banks of an Atlanta institution " are or better on the account, and on this basis off the books longer periods than they are on, figures the average balance necessary to generally speaking." Speaking of the adaptajustify the loan. A Philadelphia institution tion of loans to time of liquidation of commodistates in this connection that "the value of ties which the borrowing bank chiefly finances, proportionate balances makes itself felt more a Philadelphia institution instances that cotton keenly at a time like the present when it is loans should liquidate not later than spring, necessary to apportion accommodation accord- and wool loans during the fall. Similarly, ing to balances. We also give consideration another Philadelphia bank reports that its to collections and other services rendered us." southern accounts usually borrow in the fall One Eichmond institution which does not and early winter and its Pennsylvania and New require a minimum balance states that although Jersey accounts in the early spring. In the under present conditions average balances will event that conditions are not propitious for exceed 10 per cent, there are quite a number complete liquidation, reasonable curtailment is of bank borrowers who maintain balances of generally expected, as is noted by a Baltimore 10 per cent or less. institution. No minimum dollar amounts are required in If the clean up does not occur, and it is beany case, although one bank states that it pays lieved that it should reasonably be made, it is no interest on average available balances less in general directly requested by personal visit than $1,000. Smaller banks are reported by a or by letter. The clean up may be made a number of institutions to maintain proportion- condition of the loan; or the credit extended to ately smaller balances, while one Atlanta bank banks that show by chronic or continuous borobserves that " balances have usually been lean rowing a tendency to expansion even in normal with country banks for the last few months.77 times, may be restricted; or the plea of con- A Baltimore institution has " found the tend- servative banking may be made. A Boston ency to run the line of credit out of proportion bank states that "wherever we believe it is to the compensating balance, to apply in the possible for a bank to reduce its loans by discase of points where there is but a single small posing of investments at not too great a sacribank or two rather than in the case of larger fice, we insist that this be done. Furthermore, banks in larger towns." we have had occasion to insist that the bank force its customers to reduce loans through sale CHARACTER OF BORROWING. of commodities." A Baltimore bank in certain cases slightly raises the rate, say, one-half The great majority of loans are for seasonal per cent, on unscheduled renewals. needs. Two Philadelphia banks, however, make mention that Government financing is III. FORMS OF ACCOMMODATION. increasing loans for other than seasonal needs. One Boston bank, however, makes seasonal SECURITY OF THE LOAN. loans only in the Connecticut Valley on account of the tobacco crop, while another has about As in the case of all the other centers inone-third of its loans for nonseasonal needs. cluded in the two previous surveys, the great One Baltimore bank does not " encourage loans majority of loans are secured. In fact, in all of this character" (other than for seasonal centers except Boston every reporting bank needs), as it feels that "it breeds expansion be- states that it either has no unsecured loans, or yond the safety point." Very little borrowing that the proportion is very small. In Boston, of a nonseasonal character is in general reported however, one bank reports that 50 per cent, in the southern centers. another 40 per cent, and a third 20 per cent In spite of these differences the general prac- of its accommodation is unsecured. Another tice is to expect a periodical clean up, if not to Boston bank, on the other hand, has only one require it, as the large majority of banks do. unsecured loan at present, while a second states Clean up annually is the general practice. One that "only a small portion of loans to corre- Richmond institution states that, " as a general spondents are made on an unsecured basis, proposition, in this section it is not necessary and in such cases only to banks who have been to require a periodical clean up, as this is done for a long time on our books, with whose automatically from the marketing of agricul- affairs we are quite conversant, and in whose tural products." Another, however, has had officials we have entire confidence." to extend a great many of its loans this year, The relative proportions of bills receivable and the same is reported by several other banks, and of securities employed as collateral vary due naturally to the conditions prevailing in considerably from bank to bank. Certain the cotton and tobacco sections. Most of the significant differences, however, are found be- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

MAT, 1921. FEDERAL RESERVE 541 tween the several centers. In both Richmond it "has even brought pressure to bear to have and Atlanta the great majority of loans are bonds sold where there was no prospect of the against bills receivable. The great majority note being otherwise paid." of other securities offered consist of Liberty Certain banks prefer to lend against bills bonds. In the case of three Richmond banks receivable; others, however, prefer securities. giving estimated percentages, the figure for Liberty bonds when offered, however, in gen- Liberty bonds ranged from 20 to 25 per cent, eral receive preference. The latter is often as against 80 to 75 per cent, respectively, for coupled with a secondary preference for bills bills receivable. While some banks in Atlanta receivable. One Richmond bank remarks that report only a small use of Liberty bonds (one it shows its preference only when the bank's bank reporting 90 per cent and another 89 per assets indicate the possession of Liberty cent on bills receivable), several report ex- bonds. As indicated in previous articles, tensive use of Liberty bonds by country banks when there is preference for listed securities in the past few years, and one notes that many this is ascribed to greater ease in handling such loans have been liquidated in the past (as checkings and substitutions are avoided), six months. Several Baltimore banks report and the possibility of liquidating more promptpercentages of securities ranging from 25 per ly and to better advantage. Hence one cent to 50 per cent and 67 per cent. Several Baltimore bank states that "in ordinary banks report a large percentage of Liberty times we would be glad to reflect our prefbonds, but in the case of the others it is rela- erence in a slightly lowered rate on the loan." tively small. The five reporting Philadelphia Considerable dinerence is found as to marbanks are sharply divided. Two show per- gins between Boston, Philadelphia, and Balticentages of 90 to 95 per cent against bills re- more on the one hand and Richmond and ceivable, while the other three show 60 per Atlanta on the other hand. In particular cent, 75 per cent, and 75 per cent against this is true of loans with bills receivable as bonds. One of the latter banks states that collateral. In the first two centers 20 per " Liberty bonds are not used as collateral by cent is most frequently specified. In some banks that are members of the Federal Re- cases this applies on all classes, while in other serve System, and only to a limited extent by cases 10 per cent only will be specified on banks that are not members," while one of the Liberty bonds. One Philadelphia bank states banks showing a high percentage of loans on that a margin of 20 per cent has been cusbills receivable states that they are usually tomary, but that recently there has been a only used "in cases where such loans have been tendency to increase it to 30 per cent, alcarried since the time of original subscription.77 though loans secured by Liberty bonds or Reference to the statements of the several basic commodities carry margins smaller than Federal Reserve Banks clearly bears out the 20 per cent. Margins in Baltimore vary tendency in Philadelphia to rely more largely on from 15 to 30 per cent, several banks distinthe Federal Reserve Bank for accommodation guishing between bills receivable and securiagainst Government obligations. Thus, in the ties, and requiring in the latter case 10 or 15 statement as of April 1 the Federal Reserve to 25 per cent, as against 15 or 20 to 25 per Bank of Philadelphia shows over 60 per cent cent on bills receivable. The majority of the of its total bills on hand secured by United Richmond and Atlanta banks refer to the States Government obligations. Only one other maximum requirements which they make on bank, namely, New York, shows over half its bills receivable. While one Boston bank total bills on hand secured in this manner, and stated that many times it had collateral in its case the figure is slightly over 50 per much in excess of its usual 20 per cent marcent. Practice in Boston differs somewhat gin, in Richmond the ranges given are from among the various banks. One institution 20 to 25 or 30 per cent to 100 per cent, with states: the exception of one bank, which merely gives 25 per cent as its usual margin requirement. Our preference for bills receivable or securities as col- In Atlanta one bank with little business of lateral depends considerably on the individual bank. We have found that oftentimes loans in the form of redis- this character specifies 25 per cent; another counts and notes secured by receivables are paid more up to 25 per cent; a third 20 to 100 per cent; promptly than loans collateraled by other securities and a fourth in normal times 25 per cent, and where the borrowing banks are inclined to be dilatory in under present conditions 50 to 100 per cent. paying loans. Generally speaking, the larger and stronger The latter is also specified by two other banks, banks borrow on bonds as collateral and retire their obligations promptly. one of which in recent months has increased This bank states that Liberty bonds, al- the margin from 50 per cent to 100 per cent. Several banks in these two centers refer to though used extensively in 1918 and 1919, are lower margins on securities. One Richmond now employed to a limited extent, and that Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

542 FEDERAL RESERVE BULLETIN. MAT, 1921. bank requires 10 to 15 per cent of the market certificates of deposit, usually secured by bonds value against Liberty bonds and Victory and occasionally by bills receivable." (This notes, while an Atlanta bank requires 20 per method is discussed at greater length below.) cent, but in certain cases notes that it has Another bank in that center also reports varied this. an increase in collateral loans. Philadelphia banks refer to changes brought about by Gov- USE OF BILLS RECEIVABLE. ernment financing, and one states that "borrowings have been much less since the Federal In scattered instances fairly high percent- Reserve System started, practically all the ages of rediscounts to total accommodation banks in this district securing their accommoextended are reported. Thus 35 per cent is dation from that source." A Baltimore instireported by one Richmond bank, 30 per cent tution states that "prior to two years ago by one institution in Philadelphia, and by one practically all loans were made in the form of in Baltimore. The percentages given in the a collateral note secured by either bills receivother cases range from 8 to 15 per cent, but able or securities, the rediscount custom having the majority of banks, however, merely specify been to a great extent copied from the Federal that the proportion is very small. The Comp- Reserve Banks." troller's figures for Boston national banks as of January 31, 1920, indicate an amount of MATURITY OF LOANS. rediscounts in excess of the amount of direct and indirect loans made, but in all the other The centers included in the present survey centers the proportion is much smaller. The fall naturally into two classes with respect general practice is to rediscount only well-rated to the maturity of their loans to correspondnames and for strong institutions. Thus, one ents. In Richmond and Atlanta, on the one bank in Richmond states that it does so only hand, loans are largely made on time for "for banks in which we have the utmost confixed periods. Thus one Richmond bank fidence as to their integrity, management, and states that "it is contrary to our policy to ability, and then only on paper which would make demand loans to banks. This is done stand on its own merits, in so far as collection only in the rarest cases and only when the is concerned, without the indorsement of the bank assures us the money will be needed for banks." The margin which loans against the just a few days. We endeavor to make only bills receivable as collateral carry, and the fact such loans to banks as their seasonal needs that in event of failure the balance in the de require." Another bank in that center, which, posit account can be offset against the loan, however, has practically all its loans on time, account for the preference for collateral loans notes that it endeavors to put its demand loans instead of rediscounts. A Baltimore bank on a time basis if they run longer than six states that it will rediscount " where the corremonths, while a third Kichmond bank usually spondents have paper of a grade equal to colmakes its loans for about 90 days, but at lateral securities/7 while an Atlanta bank "represent is making no loans for a longer period quests paper that is eligible for rediscount than 30 days. In Atlanta exceptions are rewith the Federal Reserve Bank. One Philaported only in infrequent cases, one bank delphia bank, however, which has by far the stating that they usually represent commodity greater part of its loans collateraled by bonds, loans. In the other three centers a larger states that it "would prefer rediscounting wellproportion of demand loans is reported. One rated commercial paper for corresponding Philadelphia and one Baltimore bank state banks instead of making loans on collateral, as that loans on bonds are generally on demand, same is invariably paid when due." This view while loans on bills receivable are usually on is similar to that of the Boston bank noted time. Several Baltimore banks report that above in considering the security of the loan. their loans are largely for fixed periods, while The majority of banks, on the whole, have others report loans of both kinds. Philadelnoted no change since 1914 in the methods phia banks report both kinds of loans, and whereby accommodation is extended. Certain likewise in Boston, where one bank, however, suggestions, however, have been made in the reports that its loans are generally on demand, various centers. One Boston bank states that and another has about one-third of its loans on "since 1914 borrowing has been done in the demand. Another Boston institution states shape of time loans to a greater extent than that local or suburban banks usually borrow on formerly, when the usual form of borrowing on demand, but loans against Liberty bonds the part of New England banks was against usually run for fixed periods. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

MAT, 1921. FEDERAL RESERVE BULLETIN*. 543 HOLDING OF COLLATERAL. IV. SPECIAL PARTS OF THE ANALYSIS. Very little holding of collateral by banks ANALYSIS OF BILLS RECEIVABLE OFFERED AS other than the lending institution is reported. COLLATERAL. One Boston bank reports an occasional exception in the case of western banks. Several Practice differs considerably as to the extent institutions in Philadelphia and Richmond to which scrutiny is made of the receivables report an exception in a few cases for cotton offered as collateral for loans. Several Boston paper, in order to facilitate substitution or banks report that no analysis is made. In permit removal and sale. In such cases, the general, however, certain features are desired. paper will be returned to the borrowing bank Aside from the diversification of the paper, under trust receipt, in general shortly prior to these are indicated by one Atlanta bank in maturity. Substitution of other paper is the following words: "Bills receivable are gengenerally permitted. This depends of course erally analyzed as to denomination of the upon the acceptability of the new paper various notes, sections in which makers are offered, and thus one bank notes that inquiry located, and a scrutiny made for notes of would be made if the same names were con- officers and directors, and a general examinatinually offered. Some banks state that they tion (although no special individual outside expect liquidation at harvest time, and others investigation) is made." If the names of endeavor to investigate the necessity of the makers are unfamiliar, one Boston bank ensubstitutions proposed. deavors to obtain statements. A Philadelphia institution states that it analyzes "bills receivable as carefully as possible, but in many SPECIAL FORMS OF ACCOMMODATION. cases, where dealing with comparatively small institutions, we have to depend to some extent In all the centers, with the single exception (as to a general assortment of names, many of of Boston, very little use of certificate of which are not rated) upon the financial deposit borrowing is reported, the great strength of the institution under consideramajority of banks stating that they do not tion." Another Philadelphia bank obtains make such loans, and the others that they are from the borrowing institution data relative to "not customary" or occur "very seldom." the financial responsibility of makers and Although several Boston institutions report indorsers in case the ratings are not satisfactory. little use of the method, one bank states that Several Richmond and Atlanta banks usually "New England banks are accustomed to boraccept the expression of opinion by the borrow on a certificate of deposit secured by bonds rowing banks as to the net worth of makers when borrowing temporarily," and, as noted and indorsers. One institution in the latter above, that there has been a decrease in such center advises that it "finds it useful" to have borrowing since 1914. That this method is corresponding banks send in the estimated net still employed to some extent is indicated by worth of the makers "as it makes the officer the figures given at the opening of this article, making the report in a certain sense morally showing the amount of loans in the form of responsible for the rating given." The inbills payable and rediscounts, as compared formation obtained and the analysis made with the amount of loans on certificates of depends, it is stated by certain banks, upon deposit, on March 4, 1919. Boston is the only the size of the notes. One Richmond bank center included in the present survey which thus states that while it scrutinizes the bills shows a substantial amount of this special receivable as to technicalities and requires the form of loan, although the proportion (someborrowing bank to give it as full information what over one-tenth) is smaller than in either as it can on each note, " on all notes of any size Dallas, Kansas City, Minneapolis, or San we make independent checking through banks Francisco, in the last two of which the proand business men in the same town or vicinity portion for national banks was somewhat less of the bank, and also secure mercantile agency than half the total accommodation granted. reports." One Philadelphia bank, similarly, Very few of the banks from whom data were while accepting agency reports on small reobtained report the use of other special forms ceivables, obtains checkings on receivables in of accommodation. Securities are stated by larger amounts and in most such cases requires several banks to be sometimes taken from corstatements. Practice also naturally differs respondents under a repurchase agreement. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

544 FEDERAL RESERVE BULLETIN". MAT, 1921. according to the familiarity of the officers of Certain institutions limit borrowings to the the lending bank with the management and capital investment, which is qualified in certain status of the borrowing institution. Several cases by the statement that tnis prevails under institutions check names with local friends ordinary circumstances. But few institutions, where the borrowing bank is not well known. however, have such a limit. The great ma- A Baltimore bank states in this connection jority have no formal rule. Similarly, almost that if the " report in our credit file indicates all institutions consider each application sepathat the ability and integrity of the officers in rately, and do not attempt to fix a line of credit the case of a given bank are of the highest in advance. Thus in Boston only one instituorder and statements indicate good conserva- tion attempts to fix a line, and this is done only tive management, a passing examination of on such of its borrowing banks as are located the receivables offered would serve our pur- in crop sections, in particular cotton, while the poses, as in such a case the direct note of the New England banks7 applications are coninstitution could be handled with a very small sidered separately. Similarly, only one Philarisk. However, in the case of banks not show- delphia bank reports that it fixes a definite line, ing such strength we would require well-rated ana this it does only in a minority of cases. paper such as we handle for depositors." All reporting Richmond banks consider each application separately, although one institution states that it is planning m future to fix THE BORROWING BANK'S STATEMENT. definite lines. Several of the Baltimore banks The extent to which the statement of the report that they fix a definite line, and one borrowing institution is analyzed also differs Atlanta bank usually does so, while another considerably between the various banks. A institution in the latter center in some instances considerable number of institutions rely more fixes the line at the opening of the season. largely upon their general knowledge of the The consideration of " charge-offs" requires borrowing bank rather than upon statement intimate knowledge of the affairs of the boranalysis. Other institutions consider the state- rowing institution. Thus the great majority ment merely in a general way. One Boston of institutions from whom data were obtained institution states that it only analyzes the made no comment on this point. One Boston statement in detail when the bank is in diffi- institution, however, states that charge-offs culty. Certain banks, however, have indi- frequently are discussed in person with officers cated in some detail the particular points of the borrowing banks when the latter visit it. which are ascertained in their scrutiny. In a Several institutions consider charge-offs in congeneral way the points which will be considered nection with dividends, in an endeavor to may be summarized as follows: (1) Relation ascertain the extent to which losses are written of the deposits to the capital investment. In off and the amount of net earnings which then this connection, one Baltimore and one Atlanta remain for surplus or for dividends. One bank consider the proper ratio between five Philadelphia institution states that if the and ten times, the bank otherwise being over profits do not show a normal increase it inor under capitalized; (2) growth of deposits, quires as to the proportion of earnings to which will afford an indication of increase in dividends and charge-offs. One Baltimore earning power; (3) relation of surplus to capital; bank observes that "under ordinary circum- (4) relation of loans to deposits; (5) invest- stances we are of the opinion that a bank with ment in building; (6) investment in stocks and conservative management should earn not less bonds. In this connection, one Boston in- than 6 per cent of its invested capital with a stitution cites " the heavy depreciation of bonds proper ratio of deposits, this allowing for during the last few years'7 as the reason why average loss but not including the dividends.77 it does not like to have heavy bond investment; (7) relation of borrowings to deposits or to EXPERIENCE OF OTHER INSTITUTIONS. loans. In addition, one Richmond and one Several institutions included in the present Atlanta bank refer to seasonal fluctuations in survey merely have country bank accounts and loans, deposits, and borrowings. An Atlanta borrowers therefore do not obtain accommoinstitution also refers to excessive loans to dation from other sources. The total loans officers, nature of security and proportion of from all sources, of course, are considered in " frozen" loans to capital, excessive loans to determining what the individual institution customers (in particular on real estate), and will loan. This will naturally include as far as slow or long outstanding loans. Another possible consideration of the conditions under Atlanta institution reports that it requires a which these borrowings are made, including capitalization of $25,000 on the part of its amount, rate, maturity, and nature of the borrowing banks. security pledged. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

MAT, 1921. FBDEEAL KESEKVE 545 RULINGS OF THE FEDERAL RESERVE BOARD. Amendment to Regulation B authorizing open-market REGULATION B, SERIES OF 1921. purchases of six months acceptances growing out of foreign transactions. (Superseding Regulation B of 1920.) On May 6, 1921, the Federal Reserve Board OPEN MARKET PURCHASES OF BILLS OP EXCHANGE, TRADE transmitted to Federal Reserve Banks its Regu- ACCEPTANCES, AND BANKERS* ACCEPTANCES, UNDER lation B, Series of 1921, superseding Regula- SECTION 14. tion B, Series of 1920. The Board's letter of I. General statutory provisions. transmittal and the amended regulation are set forth below: Section 14 of the Federal Reserve Act provides that Federal Reserve Banks under rules and regulations to be WASHINGTON, May 6, 1921, prescribed by the Federal Reserve Board may purchase The Federal Reserve Board transmits herewith its and sell in the open market, at home or abroad, from or Regulation B, Series of 1921, superseding Regulation B, to domestic or foreign banks, firms, corporations, or individuals, bankers' acceptances, and bills of exchange of the Series of 1920, relating to open-market purchases by kinds and maturities made eligible by the act for redis- Federal Reserve Banks of bills of exchange, trade acceptcount, with or without the indorsement of a member bank. ances, and bankers' acceptances under section 14 of the Federal Reserve Act. The new regulation is issued primarily for the purpose of permitting Federal Reserve Banks II. General character of bills and acceptances eligible. until further notice to purchase in the open market bankers' acceptances with maturities not in excess of six months, The Federal Reserve Board, exercising its statutory which grow out of transactions involving the importation or right to regulate the purchase of bills of exchange and exportation of goods. Heretofore three months has been the acceptances, has determined that a bill of exchange or acceptance, to be eligible for purchase by Federal Reserve maximum maturity of acceptances eligible for purchase Banks under this provision of section 14, must have been by the Federal Reserve Banks. This amendment to the accepted by the drawee prior to such purchase unless Board's regulation was recommended by the Federal it is either accompanied or secured by shipping docu- Advisory Council at its conference in February, 1921, and ments or by warehouse, terminal, or other similar receipt by the Governors of the Federal Reserve Banks at their conveying security title or bears a satisfactory banking conference in April, 1921. indorsement, and must conform to the relative require- Two considerations have led the Board to take this ments of Regulation A, except that— action: (1) The desire to widen the acceptance market by meeting the wants of savings banks and similar purchasers (a) A banker's acceptance growing out of a transaction involving the importation or exportation of goods may be of bankers' acceptances who are now deterred from inpurchased if it has a maturity not in excess of six months, vesting in acceptances of longer than three months' exclusive of days of grace, provided that it conforms in maturity, because of the lack of authority of Federal other respects to the relative requirements of Regulation Reserve Banks to purchase longer maturities up to six A, and months; (2) to provide more ample facilities for financing (b) A banker's acceptance growing out of a transaction import and export trade with countries where either involving the storage within the United States of goods normal conditions or present abnormal conditions indicate actually under contract for sale and not yet delivered the desirability of rendering assistance by making acceptor paid for may be purchased, provided that the acceptor ances of maturities not exceeding six months eligible for is secured by the pledge of such goods; and provided purchase by Federal Reserve Banks. While the Federal further that the acceptance conforms in other respects Reserve Banks would, under ordinary conditions, prefer to the relative requirements of Regulation A. to confine their investments to paper of short maturity, that is, not exceeding three months, it is believed that the III. Statements. present emergency in the foreign trade situation would be relieved by a more liberal practice. Vigilant care, A bill of exchange, unless indorsed by a member bank, however, should be exercised by Federal Reserve Banks is not eligible for purchase until a satisfactory statement in purchasing acceptances of long maturities, in order that has been furnished of the financial condition of one or the liquidity of the aggregate investment in acceptances more of the parties thereto. held by them should not be affected. In amending its A banker's acceptance, unless accepted or indorsed regulation in the manner described, the Board looks to the by a member bank, is not eligible for purchase until the good banking judgment and discretion of the accepting acceptor has furnished a satisfactory statement of its banks and of the Federal Reserve Banks to avoid any financial condition in form to be approved by the Federal untoward results. To avoid misunderstanding, the Board Reserve Bank and has agreed in writing with a Federal desires to add that the results of this widening of the Reserve Bank to inform it upon request concerning the investment powers of the Federal Reserve Banks will be transaction underlying the acceptance. followed closely, with a view to such modification of its rules or amendment of its regulations as future developments may indicate to be necessary. National banks as transfer agents. The Board has also taken this occasion to make another slight amendment to Regulation B so that its terms will more The Board has received a number of inclearly indicate the Board's purpose in permitting Federal quiries as to whether national banks may act Reserve Banks to purchase in the open market bankers' as transfer agents under the provisions of secacceptances growing out of the domestic storage of goods other than readily marketable staples. tion 11 (k) of the Federal Reserve Act. After Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

546 FEDERAL RESERVE BULLETIN". MAT, 1921. f'ving the matter careful consideration, the reasonable length of time after its issue would oard is of the opinion that the capacity of be subject to any defenses which the maker transfer agent is a fiduciary capacity within had against the former holder. the meaning of section 11 (k), and that, there- There may be other practical considerations fore, any national bank which has obtained of importance in determining whether a depermission from the Federal Reserve Board to mand note is a proper instrument under the act "in any other fiduciary capacity in which circumstances of the particular case. Such State banks, trust companies, or other cor- practical considerations do not, however, affect porations which come into competition with the general proposition of law that a national national banks are permitted to act under the bank may under the terms of section 24 of the laws of the State in which the national bank Federal Reserve Act, and subject to the condiis located" may act as transfer agent, pro- tions, restrictions, and limitations therein previded that competing State corporations are scribed, make real estate loans by taking direct permitted to act in that capacity under the from their customers demand notes executed laws of the State in which the national bank by those customers, when the notes are propis located. erly secured by mortgages covering real estate and comply in other respects with the terms of the law. Demand loans on real estate. The Federal Reserve Board has received a number of inquiries as to whether national banks may make loans on real estate payable Ratio of quick assets to current liabilities as bearing upon eligibility and acceptability. on demand under the provisions of section 24 The Federal Reserve Board has been asked of the Federal Reserve Act. whether its ruling, published on page 73 of the Section 24 provides, in part, that— FEDERAL RESERVE BULLETIN for June, 1915, * * * no loan made upon the security of such farm is still in effect or has been modified or reversed. land shall be made for a longer time than five years, and The ruling referred to is to the effect that a no loan made upon the security of such real estate as distinguished from farm land shall be made for a longer time note made by a cotton mill may be redisthan one year. counted by a Federal Reserve Bank although It is believed that the purpose of this pro- the statement of the mill fails to show an vision is to prohibit a national bank from tying excess of quick assets over current liabilities, up its funds for a longer period than five years provided that the general financial condition of in the case of loans upon the security of farm the mill is satisfactory and the statement of lands, or one year in the case of loans secured the mill shows that the plant is not mortgaged by real estate other than farm lands. Inas- and that the deficiency between capital and much as the bona fide holder of a demand note plant account does not amount to more than secured by real estate has the right at any $5 per spindle. time to demand immediate payment and to It is not the present policy of the Federal proceed against the property if such payment Reserve Board to lay down definite tests for is not made, the Federal Reserve Board is of determining whether paper which is eligible for the opinion that under the terms of the law rediscount by Federal Reserve Banks as a national banks may make demand loans matter of law should be considered acceptable secured by real estate, provided, of course, that for rediscount from a credit standpoint. The the loans comply in other respects with the test prescribed in the ruling for determining provisions of the law. the acceptability of paper of the character It is well to point out, however, that under referred to should not, therefore, be regarded some circumstances the discount or purchase as binding upon Federal Reserve Banks. of demand notes may be subject to certain It can not really be said, however, that the practical objections. For one thing, if a de- ruling has been reversed, for under the terms mand note is indorsed, the indorser may be of the law and the regulations of the Federal relieved of his secondary liability if payment Reserve Board a Federal Reserve Bank may, is not made within a reasonable time. Fur- if it so desires, rediscount a note made by a thermore, section 53 of the uniform negotiable borrower whose statement fails to show an instruments law provides that " where an excess of quick assets over current liabilities. instrument payable on demand is negotiated Regulation A of the Board's Regulations, Series an unreasonable length of time after its issue, of 1920, provides that one of the prerequisites the holder is not deemed a holder in due of the eligibility of a promissory note is that course." Under this section a bank purchasing " It must not be a note * * * the proceeds a demand note from a former holder an un- of which have been used or are to be used for Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

MAY, 1921. FEDERAL RESERVE BULLETIN. 547 permanent or fixed investments of any kind, it is a question of policy to be determined by such as land, buildings, or machinery, or for the Federal Reserve Bank in each case whether any other capital purpose,77 and the regulation that bank will rediscount a particular note further provides that compliance with this offered to it in spite of the fact that the prerequisite "may be evidenced by a state- borrowers statement fails to show a reasonment of the borrower showing a reasonable able excess of quick assets over current liabilexcess of quick assets over current liabilities.77 ities. Undoubtedly, as a general rule, sound Such a statement is not the only evidence by banking policy requires that the borrower's which a Federal Reserve Bank may satisfy statement shall show such an excess, but it is itself that the proceeds of a note have not been for the Federal Reserve Bank to determine used and are not to be used for permanent or whether, and under what circumstances, excepfixed investments. The Board has ruled that tions may properly be made to this general rule. LAW DEPARTMENT. Authority of national bank to guarantee letters of credit Whether or not a national bank has authority and acceptances, and to appoint correspondent bank to guarantee a letter of credit or to indorse an as agent to issue letters of credit and acceptances. acceptance for accommodation is a question of It recently has been brought to the attention law which in the last analysis must be deterof the Federal Reserve Board that national mined by the courts. So far as the Board is banks for some time have been accustomed to aware, there are no decisions directly involving guarantee letters of credit issued at their re- this point, and in view of the importance of the quest by correspondent banks in large centers matters involved, it seems advisable for the on behalf of the national bank7s customers. Board to state in some detail its views as to the For instance, it appears that where the cus- legal aspects of the situation. tomer of an interior national bank desires to There is no express authority of law which obtain a letter of credit in connection with his authorizes a national bank to lend its credit foreign business, the national bank, instead of by indorsing an acceptance or by guaranteeing issuing the letter itself, will get one of its large or acting as surety on a letter of credit. The city correspondents to issue a letter for the cus- national bank act authorizes national banks tomer^ account, which the national bank to discount and negotiate notes, drafts, and guarantees; that is, the national bank agrees bills of exchange, and to make loans on perthat in the event the customer for whose sonal security, while section 13 of the Federal account the letter is issued fails to put the Reserve Act more recently has conferred upon issuing bank in funds to meet the acceptances, national banks the power to accept drafts the guaranteeing bank will do so. The trans- growing out of certain specified transactions. action does not always involve the issuance of It is settled, however, that a national bank7s a letter of credit, for the correspondent bank power to discount negotiable paper and to sometimes simply accepts a draft drawn upon loan money does not carry witn it the power it by the national bank's customer, and the to guarantee, or act as surety upon, the obliganational bank, in a collateral agreement with tion of another, nor is such a power incidental the correspondent bank, guarantees the cus- to the business of banking. (Commercial tomer's obligation to put the correspondent National Bank v. Pirie, 82 Fed., 799; Bowen v. bank in funds to meet the acceptance. Under Needles National Bank, 94 Fed., 925 (cited the latter arrangement, the national bank's with approval in Sponge Exchange Bank v. liability is the same as the ultimate liability Commercial Co., 263 Fed., 20, 26); Bank of which arises out of guaranteeing a letter of Valdosta v. Baird, 160 Fed., 642.) credit, so that the two transactions will be con- In Bowen v. Needles National Bank, supra, sidered as one and the same for the purposes of p. 927, the court said in part: this discussion. It also appears that some "It may be stated in general that no banking corporation national banks, in consideration of a fee or has the power to become a guarantor of the obligation of commission, are accustomed to indorse accept- another, or to lend its credit to any person or corporation, ances for the accommodation of their customers unless its charter or governing statute expressly permits it. or bill brokers. In connection with such prac- (Farmers & Mechanics Bank v. Butchers & Drovers Bank, 16 N. Y., 125; Morford v. Bank, 26 Barb., 568; Thomp. tices, the question has arisen as to whether a Corp., sec. 5721.) Under section 5136 of the Revised national bank has authority to make such Statutes, national banking associations are given the power guaranties or accommodation indorsements, or to 'make contracts' and 'to exercise by its board of directwhether such acts are beyond the powers ors, or duly authorized officers or agents, subject to law, all such incidental powers as shall be necessary to carry on which national banks lawfully may exercise. the business of banking; by discounting and negotiating Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

548 FEDERAL, RESERVE BULLETIN. MAY, 1921. promissory notes, drafts, bills of exchange, and other evi- Board is of the opinion that this course, if dences of debt; by receiving deposits; by buying and sell- adopted, will enable a national bank, with ing exchange, coin, and bullion; by loaning money on only slight modifications as to the manner of personal security; and by obtaining, issuing, and circulating notes according to trie provisions of this title.' There handling the business, to continue to carry it is in these provisions no grant of power to guaranty the on without entering into an ultra vires transdebt of another, nor can such guaranty be said to be inci- action. Take the case of a national bank in an dental to the business of banking. It has been BO held interior community, whose customer wishes in Seligman v. Bank, 3 Hughes, 647; Fed. Cas., No. 12642; Norton v. Bank, 61 N. I]. 589; and Bank r. Pirie, 27 0. C. A. to obtain a letter of credit which will be satis- 171; 82 Fed. 799." factory to his foreign dealer. The national Similarly, although the power conferred bank, having no international standing, or upon national banks to accept drafts carries being without any department capable of with it the power to issue letters of credit as handling foreign business, does not wish to incidental thereto, it would seem that such issue the letter itself but is willing to extend powers do not carry with them the power to its credit to its customer. Under these cirguarantee, or act as surety upon, acceptances cumstances, it enters into an arrangement or letters of credit issued by other banks. with, say, its New York correspondent, whereby the New York correspondent agrees as In view of these considerations, the Federal agent of the interior bank to issue a letter of Reserve Board is of the opinion that a national credit for the account of the interior bank's bank has no authority to guarantee or act as customer, the letter to be issued in the name surety upon a letter of credit, or to indorse an of the New York correspondent, but in issuacceptance for accommodation; that such acts ing the letter the New York correspondent are ultra vires; and that if the directors of a is to act as agent for an undisclosed princinational bank enter into such contracts of pal, namely, the interior bank. The integuaranty or suretyship, they assume in their rior bank's name will not appear on the letter personal capacities the risk of any loss that may of credit, but its New York correspondent occur. may look to it for reimbursement under the However, while a national bank can not collateral agency agreement, not conditionally guarantee an acceptance which it does not upon the failure of the customer to put the own, a national bank may purchase an acceptissuing bank in funds but directly and unconance and immediately resell it with its indorseditionally as the real issuer of the letter. The ment, since the power to indorse acceptances beneficiary of the letter and the holders of the is incidental to the power to negotiate acceptacceptances drawn thereunder will look to and ances. (Bowen v. Needles National Bank, rely on the credit of the New York bank, for supra; Bank of Valdosta v. Baird, supra.) its name alone will appear on the letter and There appears to be no authority of law, howthe acceptances, but the interior bank will in ever, which permits a national bank to lend fact be the real acceptor and the customer its credit by indorsing an acceptance where the will be under obligation to put the interior transaction does not involve an actual transfer bank, not the New York bank, in funds to of title to and from the national bank. meet the acceptances as they mature. The As to the practice of guaranteeing letters of only change necessary in the present method credit, it is contended that if, as stated above, is that the interior bank, instead of guaranteea national bank has no authority to guarantee ing the letter of credit, will execute a separate or act as surety upon such letters, many nacontract appointing its New York correspondtional banks will be compelled to forego a ent its agent, and agreeing unconditionally to business which is very desirable both from the reimburse the agent as such for any moneys standpoint of the banks themselves and from paid out, or, if desired, to put the agent in the standpoint of their customers. The result funds to meet the acceptances as they mature. will be, it is alleged, that the customer himself It would seem that this procedure will meet must necessarily go to a large city bank and, the practical requirements of the situation and as his financial standing perhaps is not generat the same time avoid the necessity of any ally known, his request for credit in many contract of guaranty. instances will be refused and he will be compelled to seek other and less desirable means After careful consideration, the Board confor financing his business. siders that national banks may properly Realizing the practical force of these con- finance the business in question in the manner siderations, the Board desires to suggest an suggested without exceeding their statutory alternative method of financing the business powers. A national bank unquestionably may heretofore financed by means of letters of legitimately finance its customer's business credit guaranteed by the national banks at by issuing a letter of credit in its own name. whose request the letters are issued. The If a national bank may issue a letter itself, it Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

MAT, 1921. FEDERAL RESERVE BULLETIN. 549 would seem that a national bank may issue a acceptances, as and when made, amongfjits letter through an agent, provided that the general acceptance liabilities subject to the national bank has authority to appoint an Smitations oi law. agent for that purpose. It is true that, in a It should be remembered that the foregoing ruling appearing on page 835 of the 1920 merely represents the Board's opinion as to the BULLETIN, the Comptroller of the Currency legality of the proposed plan, and as to the ruled that a national bank can not appoint an requirements which must be complied with if agent at a place other than its place of business national banks see fit to adopt the plan. In to accept drafts in the name of his principal the last analysis, the question whether a bank and to pay such drafts as they mature. national bank legally may appoint a corre- This ruling was based on the construction of spondent as its agent in particular transactions section 5190 of the Revised Statutes which to issue a letter of credit and to accept drafts provides in part: drawn thereunder, and whether in other respects a national bank legally may transact the The usual business of each national banking association shall be transacted at an office or banking house located business in the manner suggested, is a question in the place specified in its organization certificate. for the determination of the courts. It seems The Comptroller said that the acceptance and advisable, however, for the Board to set forth payment oi drafts is part of the usual business its views with regard to the matter under disof a national bank within the meaning of this cussion in order that its position may be clearly section, and therefore ruled generally that such understood. business may be transacted only at the national This opinion has been submitted to the bank's principal office or banking house and Comptroller of the Currency and he concurs not in another place through an agent. in the views expressed therein. The Board is of the opinion, however, that the provisions of section 5190 do not necessarily Qualifications of directors of national banks. prevent a national bank from appointing On March 1, 1921, House bill 11307, in reanother bank or banker as its agent to issue a lation to the qualifications of directors of letter of credit in the agent's name. It is well national banks, became a law through the recognized that, while a national bank may not transact any part of its "usual business77 signature of the President. The text of the new measure is as follows : at another place through an agent, nevertheless it may appoint an agent for specific purposes or to transact particular kinds of business. [PUBLIC—No. 349—66TH CONGRESS.] Under these circumstances, it would seem that a [H. R. 11307.] national bank, for the purpose of financing its AN ACT To amend section 5146 of the Revised Statutes of the United customer's business in the manner herein sug- States in relation to the qualifications of directors of the National Banking Association. gested, may appoint a domestic or foreign Be it enacted by the Senate and House of Representatives of bank or banker as its agent to issue in the the United States of America in Congress assembled, That agent's own name a letter of credit and to section 5146 of the Revised Statutes of the United States accept drafts drawn thereunder, provided, that be so amended as to read as follows: the authority conferred is specifically limited "SEC. 5146. Every director must, during his whole term of service, be a citizen of the United States, and at least to the particular transaction involved and three-fourths of the directors must have resided in the State, that a definite limitation is imposed upon the Territory, or District in which the association is located, amount of each letter of credit. or within fifty miles of the location of the office of the In case the course suggested should be adopt- association, for at least one year immediately preceding their election, and must be residents of such State or ed, the agent bank, which issues the letter and within a fifty-mile territory of the location of the associawhich is primarily and unconditionally liable tion during their continuance in office. Every director upon the acceptances made thereunder, must must own in his own right at least ten shares of the capital include the liability on such acceptances, as stock of the association of which he is a director, unless the capital of the bank shall not exceed $25,000, in which case and when incurred, among its general accepthe must own in his own right at least five shares of such ance liabilities subject to the limitations on capital stock. Any director who ceases to be the owner of the acceptance power prescribed by law; and, the required number of shares of the stock, or who beinasmuch as the interior bank is by hypothesis comes in any other manner disqualified, shall thereby vacate his place." the real acceptor and is directly and uncon- Approved, March 1, 1921. ditionally liable to the agent bank for any monies paid out to meet the acceptances as they mature or to put the accepting bank in Amendments to State banking laws. funds to meet such acceptances, the principal The following recent enactments by State bank also must in&lude the amount of the legislatures, whiah amend the State banking Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

550 PEDEKAL RESERVE BULLETIN. MAY, 1921. laws, are published for the information of the Federal Reserve Banks, or examiner, any information Federal Reserve Banks and member banks: with reference to the condition or affairs of State banks or trust companies organized under the laws of this State which become members of a Federal Reserve Bank, or OKLAHOMA. which apply for membership in a Federal Reserve Bank. SEC. 6. Any bank or trust company incorporated under House bill No. 393, recently enacted by the the laws of this State which is or which becomes a member of the Federal Reserve Bank shall not be limited in its Oklahoma Legislature, is substantially the borrowing or re discounting with the Federal Reserve same as the act recommended by the Federal Bank of which it is a member. Reserve Board and the American Bankers7 SEC. 7. All acts and the parts of acts inconsistent Association to bring about greater coordination herewith are hereby repealed. in the powers of State and national banks and INDIANA. to promote uniformity in State and Federal banking laws. The Oklahoma act reads as House bill No. 40, recently enacted by the follows: Indiana Legislature, amended the laws of that State relating to loan, trust, and safe Be it enacted by the people of the State of Oklahoma: SECTION 1. The words "Federal Reserve Act" herein deposit companies so as expressly to authorize used shall be held to mean and to include the act of such companies— Congress of the United States approved December 23, 1913, as heretofore and hereafter amended. to purchase and hold, for the purpose of becoming a The words "Federal Reserve Board" shall be held to member of a Federal Reserve Bank, so much of the capmean the Federal Reserve Board created and described ital stock thereof as will qualify it for membership in in the Federal Reserve Act. such reserve bank, pursuant to an act of Congress ap- The words "Federal Reserve Bank" shall be held to proved December 23, 1913, entitled the "Federal Remean the Federal Reserve Banks created and organized serve Act;" to become a member of such Federal Reserve under authority of the Federal Reserve Act. Bank, and to have and exercise all powers, not in conflict The words "member bank" shall be held to mean any with the laws of this State, which are conferred upon national bank, State bank, or banking and trust company any such member by the Federal Reserve Act. which has become or which becomes a member of one of the Federal Reserve Banks created by the Federal Reserve Act. SEC. 2. That any bank or trust company incorporated Commercial Failures Reported. under the laws of this State shall have the power to subscribe to the capital stock and become a member of a The wide margin of increase in commercial failures in Federal Reserve Bank. the United States, as compared with the exceptionally low SEC. 3. Any bank or trust company incorporated under mortality of 1920, continues in evidence, 1,043 defaults the laws of the State of Oklahoma which is, or which being reported to R. G. Dun & Co. during three weeks of becomes a member of a Federal Reserve Bank, is by this April, as against only 337 in the corresponding period of act vested with all powers conferred upon member banks last year. For the month of March, the latest month for of the Federal Reserve Banks by the terms of the Federal which complete statistics are available, the returns dis- Reserve Act as fully and completely as if such powers close 1,336 insolvencies for $67,408,909 of liabilities. These were specifically enumerated and described herein, and figures are not only greatly in excess of the 566 defaults all such powers shall be exercised subject to all restric- for $12,699,325 in March, 1920, but the number is the tions and limitations imposed by the Federal Reserve largest for that particular month since 1916, while the Act, or by regulations of the Federal Reserve Board made indebtedness is the heaviest on record for any one month pursuant thereto: Provided, however, That this section whatever. Separated according to Federal Reserve disshall not limit the duties and powers of the bank com- tricts, the March statement discloses numerical increases missioner and the banking board to supervise, regulate, in all instances in comparison with that of March of last administer all State banks and trust companies nor limit year, the differences being marked in practically all cases. the power of the bank commissioner to declare such bank 'The liabilities are, moreover, larger in every district, this or trust company to be an insolvent institution, and to exhibit being especially unfavorable. take charge thereof for the purpose of winding up its affairs as may now or hereafter be provided by law. Failures during March. SEC. 4. A compliance on the part of any such bank or trust company with the reserve requirements of the Federal Reserve Act shall be held to be a full compliance Number. Liabilities. with those provisions of the laws of this State which District. require banks or trust companies to carry or maintain 1921 1920 1921 1920 reserve other than such as is required under the terms of the Federal Reserve Act. First. 88 54 $8,259,999 $866,304 SEC. 5. Any such bank or trust company shall be sub- Second 248 139 30,836.832 6,213,228 ject to the examinations required under the terms of the Third 63 33 1,082,410 644,375 Federal Reserve Act, and the authorities of this State Fourth 88 63 2,767,384 553,082 having supervision over such bank may, in their discre- S F i if x t t h h 1 1 2 5 3 2 3 34 6 2 2, , 3 9 9 1 7 8 , , 3 4 9 6 0 0 3 4 8 6 2 4 , ,0 9 1 8 7 8 tion, accept such examination in lieu of the examination Seventh 138 64 3,438,805 1,420,313 required under the laws of this State. Such authori- Eighth. 108 31 5,273,193 524,242 ties, their agents and employees, may furnish to the N Te in n t t h h 6 2 6 7 1 11 8 4,1 7 8 0 9 3 , , 7 5 9 7 8 1 2 4 0 2 9 , , 5 5 5 5 7 8 Federal Reserve Board, the Federal Reserve Banks, or to Eleventh 98 19 2,702,583 203,445 examiners duly appointed by the Federal Reserve Board, Twelfth 137 64 2,838,475 1,175,216 or the Federal Reserve Banks, copies of all examinations Total 1,336 566 67,408,909 12,699,325 made, and may disclose to such Federal Reserve Board, Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

MAT, 1921. FEDERAL RESERVE BULLETIN. 551 State Banks and Trust Companies Admitted. Fiduciary Powers Granted to National Banks. The following list shows the State banks and trust com- The applications of the following banks for permission panies which have been admitted to membership in the to act under section 11 (k) of the Federal Reserve Act Federal Reserve System during the month of April, 1921. have been approved by the Board during the month of One thousand five hundred and fifty-three State insti- April 1921: tutions are now members of the system, having a total DISTRICT NO. 2. capital of $550,847,840, total surplus of $526,228,748, and Trustee, executor, administrator, registrar of stocks and bonds, guardian total resources of $10,201,999,550. of estates, assignee, receiver, and committee of estates of lunatics: The National Bank of Cohoes, Cohoes, N. Y. DISTRICT NO. 4. Capital. Surplus. Total Trustee, executor, administrator, registrar of stocks and bonds, guardian of estates, assignee, receiver, and committee of estates of lunatics: First National Bank of New Kensington, New Kensington, Pa. District No. 4. DISTRICT NO. 5. The Midland Bank, Cleveland, Ohio. $2,000,000 $400, 000 $2,400,913 Trustee, executor, administrator, registrar of stocks and bonds, guardian East Pittsburgh Savings & Trust Co., of estates, assignee, receiver, and committee of estates of lunatics: East Pittsburgh, Pa 125,000 175,000 3,837,606 The Planters National Bank of Fredericksburg, Va. District No. 5. DISTRICT NO. 7. Bank of Edenton, Edenton, N. C 66, 900 66, 900 897,550 Trustee, executor, administrator, registrar of stocks and bonds, guardian Carolina Bank & Trust Co., Hender- of estates, assignee, receiver, and committee of estates of lunatics: son, N. C 100,000 417,276 Merchants & Illinois National Bank of Peoria, 111. Farmers Bank & Trust Co., Winston- Salem, N. C 250,000 1,108,876 DISTRICT NO. 9. District No. 6. Trustee, executor, administrator, guardian of estates, assignee, receiver, and committee of estates of lunatics: Citizens Bank of Lake Wales, Lake The First National Bank of Eveleth, Eveleth, Minn. Wales, Fla 50,000 5,000 55,000 Trustee, executor, administrator, registrar of stocks and bonds, guardian Douglasville Banking Co., Douglas- of estates, assignee, receiver, and committee of estates of lunatics: vifle, Ga 65,000 45, 000 560,960 The Northern National Bank of Duluth, Duluth, Minn. Peoples Bank, Greenville, Ga 30,000 27,608 187, 585 The Bank of Soperton, Soperton, Ga. 25, 000 25,000 319,666 District No. 8. Acceptances to 100 Per Cent. Bank of Commerce, Earle, Ark 150,000 30,000 902,479 Since the issuance of the April BULLETIN the following District No. 9. banks have been authorized by the Federal Reserve Board to accept drafts and bills of exchange up to 100 Moccasin State Bank,Moccasin, Mont. 25, 000 6,000 196,684 per cent of their capital and surplus: Security Savings Bank, Rapid 50,000 15,000 524,620 The Riddell National Bank of Brazil, Ind. City, S. Dak The First National Bank of Ittabena, Ittabena, Miss, District No. 11. Security State Bank of Decatur, Decatur, Tex 60,000 137,457 State Bank of Commerce, Com- New National Bank Charters. merce, Tex 50,000 .. 273,111 First State Bank of Perrin, Perrin, Tex 25,000 12,500 184,722 The Comptroller of the Currency reports the following First State Bank of Quinlan, Quinlan, Tex 25,000 5,000 141,361 increases and reductions in the number and capital of national banks during the period from March 26 to April District No. 12. 29, 1921, inclusive: Citizens Savings Bank of Pasadena, Pasadena, Calif 300,000 32,100 2,867,161 E. G. Young & Company Bank, Banks. Amount. Oakland, Oreg 50,000 15,000 753,002 The Bank of Stanfield, Stanfield, Oreg 25,000 10,000 203,738 New charters issued to Ea S s h te a r n n i ko, O O re re g g on Banking Co., 50,000 10,000 299,265 I W nc it r h e a c s a e p o it f a c l a o p f ital approved for $1,650,000 With new capital of 5,700,000 Aggregate number of new charters and banks in- WITHDRAWALS. creasing capital With aggregate of new capital authorized 7,350,000 Kilgore State Bank, Kilgore, Nebr. Number of banks liquidating The Farmers State Bank, Allen, Nebr. Capital of same banks ""960,'666 Number of banks reducing capital LIQUIDATIONS. Reduction of capital 0 Total number of banks going into voluntary or in- Union Trust & Savings Bank, Sioux City, Iowa. voluntary liquidation or reducing capital Farmers Guaranty State Bank, Jacksonville, Tex. Aggregate capital reduction 960,000 First State Bank of Henderson, Henderson, Tex. Consolidation of national banks under the act of Mountainair State Bank, Mountainair, N. Mex. Nov. 7,1918 Marine Bank of Norfolk, Norfolk, Va. Capital "ioo'ooo CONVERSION. The foregoing statement shows the aggregate of increased capital for the period of the banks em- The Commercial Exchange Bank, New York, N. Y., has converted braced in statement ',350,000 into the Commercial Exchange National Bank. Against this there was a reduction of capital owing to liquidations, etc 960,000 CHANGE OF NAME. Long Beach Savings Bank & Trust Co., Long Beach, Calif., to Long Net increase 6,390,000 Beach Trust & Savings Bank. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

552 FEDERAL RESERVE BULLETIN. MAY, 1921. BUSINESS AND FINANCIAL CONDITIONS ABROAD. ENGLAND.1 would have to charge excessive freight rates on incoming foodstuffs and raw materials. In The strike of something like a million miners addition, a country engaged in industry on the in England on April 1 has been the fact of out- scale that Great Britain is needs large quantistanding importance there during the month. ties of fuel easily available. The contention of This strike did not come as an unexpected or the miners is that these high-cost mines should unnatural development, but rather is the latest not be operated at the expense of labor but incident in a long series of unfortunate circum- that instead some method should be found for stances which have disorganized the industry equalizing wage rates throughout the industry. during recent years. In the last issue of the Before the strike was called the miners, BULLETIN reference was made to the present mine owners, and Government had been in concondition of the industry and a brief description sultation over the question of the readjustment given of recent developments such as the abnorthat was to occur in the industry with the remal profits obtained from export coal during moval of control. The owners had made the the first part of 1920, the application of these following offer: profits to the subsidizing of the domestic price, (1) That the wages prevailing in July, 1914, the decline in export demand with the resultant in each colliery be the point below which wages deficit in industrial revenues in the last quarter should not be automatically reduced; that of 1920, and finally decontrol or the removal of wages be computed on the basis of percentage Government support from the industry on increases, not flat rate advances from the base April 1. According to the coal mines emerwage. gency act, decontrol was not to occur until (2) That owners' profit in each district be August 31, 1921; the Government, therefore, in removing its support of the industry on April 1, 17 per cent of the aggregate wages paid. or five months earlier than the date set, laid (3) That in case of surplus profits, the workitself open to attack from both miners and men receive 80 per cent and the operators 20 owners, since the latter groups were guaranteed per cent. a fixed rate of wages and profits under Govern- These propositions obviously were not in ment control. This precipitated, fixed the harmony with the proposals of the miners for date, and furnished one of the ostensible causes a national wage agreement, providing as they for the strike, although the underlying reasons do for a solution of the problem along district for it must be sought elsewhere. lines. They were, however, referred by the The conditions of coal mining in England executives of the Miners7 Federation to the difare such that the rate of return both as to pro- ferent producing districts for a ballot; with a duction and profits varies greatly from district result entirely unfavorable to the proposals. to district. The high-cost mines, however, The reason for the unwillingness of the miners have been in operation during the war and to meet the owners on these or later proposals during the period of heavy foreign post-war was apparently due in the main to a determinademand. The miners in demanding a national tion on the part of the miners to obtain a perwage agreement and a national pool of profits manent settlement of the coal-mining problem to make possible the payment of uniform without further delay. The result was a strike wages, raised the question whether these order, effective April 1, followed about a week high-cost mines are to continue in opera- later by the threat of a sympathetic strike on tion, and if so, whether wages paid for work the part of the other members of the triple in them are to be subsidized from surplus alliance, namely, the railway men and the returns from the more valuable mines, from transport workers. Government subsidy, or by some other means. During the course of April and early May Fundamental economic conditions in England negotiations have continued between the make the question of operation of high-cost miners, owners, and the Government, with the mines a more pertinent one than it would be in result that concessions have been made on all a country like the United States. In the first sides. Although at the time of writing no place, coal is a so-called key or indispensable definite agreement has been reached, the Govindustry. By its export England provides ernment has offered a temporary subsidy to cargo for outgoing vessels which otherwise prevent wages from declining below a certain point, and the mine owners have suggested 1 British price, trade, and financial statistics Tvill be found on pp. that wage agreements be made on the basis of 601, 602, 605, 606, 608 of this issue of the BULLETIN Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

MAY, 1921. FEDEEAL RESERVE BULLETIN. 553 the "area"—a larger unit than the so-called a reduction of 33 per cent in the Statist index " district/7 but not on a national basis. since last April when it reached its peak, prices Meanwhile the statistics which have been are still approximately 108 per cent above prepublished in the course of the negotiations war. The index number of the cost of living further emphasize the difficulties in the way constructed by the Ministry of Labor shows a of obtaining a satisfactory adjustment of the reduction of 6 per cent during March. industry along conventional lines. The wages Unemployment has continued to increase offered by the mine owners on April 1 show during the month. The figures published by extreme variations from district to district the Ministry of Labor show 10 per cent of for the same work, the reductions amounting trade-union members unemployed at the end to from 40 to 50 per cent in the case of the of March, while those out of work who are South Wales district and to not much more insured against unemployment reached the than 15 per cent in Yorkshire. The reduc- high total of 1,355,206. tions would seem, however, to average closer to 30 than to 20 per cent. With the decrease Per cent of trade-union members unemployed (membership in the cost of living not more than 20 per cent, 1,528,001 at end of March) } according to official figures, it is not surprising that a strong organization like the Miners' 1920. End of— Federation will not submit to wage reductions March 1.1 of these dimensions. On the other hand, the April 9 May 1.1 latest figures showing the deficits in the finances June 1.2 July 1. 4 of the coal industry make clear the problem August 1.6 of the owners and the Government. The deficit September 2.2 October 5.3 for January and February amounted to November 3. 7 December 6.0 £9,426,000, or about £1,178,000 a week, while the deficit for March was £5,259,000. These 1921. End of— deficits are not entirely due to the decline in January 6.9 the price of coal but are also due in part to a February 8.5 March 10.0 diminished output per man. The problem presented by the present con- 1 Short time and broken time are not reflected in the figures. In the mining and textile industries a contraction in the demand for labor is dition of the coal industry is somewhat more generally met by short-time working. extreme than that existing in most industries, but in essentials it is not different from one A study of the movement of prices of indiof the most pressing general economic problems vidual commodities shows that in England, as of the present time—namely, the adjustment in the United States, the reductions in comof wages to the downward trend of prices. modity prices have been very uneven, both In England, a fairly large number of wage comparing them from industry to industry and agreements are based upon the adjustment of from one branch of a given industry to another. wages to the cost of living. In these cases On the whole the prices of the group of comreductions have already been made in accord- modities which feed into the clothing trades ance with the lower level of retail prices. and nonferrous metals appear to be nearer pre- Among the largest groups to be affected in war levels than any other groups. For inthis fashion are railway workers, woolen and stance, certain grades of wool and hides are worsted operatives and workers in the hosiery below prewar levels, while cotton is only trades. Others who have suffered reductions slightly above it. Typical grades of worsted either under sliding scale agreements or out- yarn and finished shoes, on the other hand, are right are certain classes of workers in the iron still 100 per cent above the 1913 level, and cotand steel industry and silk operatives. In ton yarn and dloth are at least 50 per cent May, 500,000 cotton operatives will be affected higher than before the war. At the same time by revisions in wages in that industry. coal prices—both bituminous and anthracite— in March were twice as high as in 1913, and Meanwhile wholesale and retail prices have typical grades of pig iron and finished and semicontinued to decline, although at a somewhat finished steel products about three times the slower rate than earlier in the year. The prewar level. In the same way cereals and Statist index shows a reduction of 3 per cent meats are still far higher than before the war. in the price level as a whole for the month of It is such maladjustments as these, as well as March while the Board of Trade shows a reducthe maladjustment between prices at various tion of 7 per cent. The greatest reductions stages of the distributive process, that is retardoccurred in the mineral and textile groups ing business operations at the present time. according to both index numbers. In spite of Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

554 FEDERAL RESERVE BULLETIN. MAY, 1921. The following figures show the changes less than the estimate. The new budget for the which have occurred during recent months in year 1921-22 was introduced on April 25, and the volume of production in certain leading provides for expenditures of £1,040,000,000 industries: and revenue of £1,216,500,000. As had been announced at an earlier date, the excess profits duty was not retained in the budget and no sub- Production (metric tons). Ship stitute for it was suggested. Certain indirect tonnage under taxes were likewise reduced. At the same time Steel in- construc- that the budget was introduced the chancellor Coal. Pig iron. gots and tion (gross castings.1 tons). of the exchequer proposed a new scheme for handling the floating and semifloating debt. 000's. OGO's. 000's. Holders of 5 per cent national war bonds ma- Monthly average, 1913 24,336 649 2 2,002,6 turing before 1925 are to be offered the oppor- 1920. tunity to convert their holdings into 3£ per March 19,505 710 840 3,394,425 April 17,131 655 794 cent bonds maturing in 1961. This offer is ap- J M u a n y e s 1 2 9 2 , , 0 1 4 3 8 1 7 7 3 2 8 6 8 8 4 4 6 5 3,578,000 parently preliminary to some further funding July 3 22,926 750 790 operations in connection with the floating debt. August 16,970 752 709 September 18,885 741 885 3,731,000 Foreign trade during the month of March O N c o t v o e b m er ber 31 1 4 5 , , 0 9 4 2 4 0 5 4 3 0 3 4 5 5 4 0 4 5 showed a further decline in value. Imports December 20,230 675 747 3,709,000 were valued at £93,742,000, as compared 1921. with £96,974,000 in February, exports at January 3 21,805 642 493 ! £66,809,000, as compared with £68,222,000 February 17,369 463 484 ! March 16,437 4 358 5 3,799,000 and reexports at £8,888,000, as compared with £8,004,000.^ The commodities in the 1 2 A R v e e v r i a se g d e o fi f g 4 u r q e u s a . rterly estimates. export group which suffered the greatest de- 3 5 weeks. cline were iron and steel manufactures, cotton * Provisional. & Work suspended on all but 2,952,000 tons. yarns and cloth, and wearing apparel. Imports of foodstuffs remained approximately Announcement was made on April 28 of a the same as last month, but imports of raw reduction in the discount rate at the Bank materials, such as cotton, wool, and nonferrous of England from 7 to 6J per cent. This metals, were considerably reduced. is the first change in the rate since April, 1920, Two' bills came up for consideration durthe 7 per cent rate having been effective for ing the month which may have a material the unprecedentedly long period of a year effect upon England's import trade. The and two weeks. Prior to this change in the German reparations recovery act, which was rate at the Bank of England, the rate of interest made effective March 31, provides that imon treasury bills was reduced for the second porters of German goods are to pay to the time within a period of six weeks. Treasury customs officials up to 50 per cent of the total bills had been offered at 6J per cent since April, value of the goods imported. The bill also 1920, when the rate was reduced to 6 per cent on provides that goods partially manufactured March 11. On April 27 the rate was further reoutside of Germany but 75 per cent of whose duced to 5f per cent. Meanwhile on April 11 value is due to German production are likethe chancellor of the exchequer announced that wise subject to tax. This measure is a device the method of selling treasury bills would be for obtaining reparations payments from Gerchanged from the continuous day to day "over many, and it is possible that if reparations are the counter" system to the method of sale by otherwise provided for the bill may be repealed. tender, which was customary before the war. Its execution will undoubtedly hamper free Government control has been exercised over the movement of commodities, not only between money market by the continuous unlimited sale Germany and Great Britain, but also between of treasury bills, with only temporary interrup- Great Britain and other European countries. tions, since April, 1915. With the return to the The second measure referred to above is the soprewar method of sale of a fixed quantity of called antidumping bill, providing for the probills at a specified date, this continuous control tection of certain key industries and for the is lifted. imposition of a duty of 33J per cent on any Receipts ancl expenditures for the fiscal year articles which are being offered for sale in closing March 31, balanced remarkably well so England under the following conditions: far as the national accounts were concerned. The net surplus for the year 1920-21 had been (a) At prices below the cost of production thereof; or estimated at £234,000,000, and the actual sur- (b) at prices which, by reason of depreciation in the value in relation to sterling of the currency of the country^ in plus reached £230,000,000, or only £4,000,000 which the goods are manufactured, are below the prices Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

MAY, 1921. FEDEKAL RESERVE BULLETIN. 555 at which similar goods can be profitably manufactured in penditure submitted by the various departthe United Kingdom; and that by reason thereof employ- ments, and the Chamber did not finish its work ment in any industry in the United Kingdom is being or on the budget until well into 1921. By that is likely to be seriously affected * * * time it had become evident that the new taxes If this bill is actually applied, it will serve enacted last June were not producing as much as a very material barrier against foreign imrevenue as had been expected of them. Reportations. ceipts from the tax on total business turnover, Developments in the foreign exchange market in particular, have been disappointing, having during the month have been largely dependent fallen 1,906,000,000 francs below budget estiupon the labor situation. Sterling exchange mates. The following table shows receipts on the New York market advanced until the from this tax by months since its enactment, as end of March, reaching at that time the highest compared with the receipts expected: point since last July. At the commencement of the coal strike there was a reaction which was not again overcome until the strike order RECEIPTS FROM THE TAX ON TOTAL BUSINESS TURN- OVER SINCE ITS ENACTMENT. of the triple alliance was rescinded. The New York rate stood at $3,935 on April 23. [In thousands of francs.] FRANCE.1 Compared Receipts. with budget On March 19 M. Henry Cheron, the new re- estimates. porter general of the French Senate's commission on finance, presented his report on the 1920. July 2,608 + 1,608 budget for 1921. In the course of his review of August 3,687 + 2,687 French finances, M. Cheron emphasized the September 292, 792 -407,209 October 234,434 -225, 566 necessity for reducing the Government's float- November 205,492 -254, 508 December 203,175 -259,158 ing debt, and particularly that part of the debt which consists of advances from the Bank of 1921. January 183,683 -231,984 France. France's total debt as of March 1, February 151, 571 -264,096 1921, is, according to this latest report, made March 147,628 -288,039 up of the following items: Total 1,425, 070 -1,905,265 FRENCH PUBLIC DEBT, MAR. 1, 1921. This disappointing result is evidently due to [In millions of francs.] the fact that the revenue from the tax was estimated on the basis of the high price level which Interior debt, perpetual and term 133,000 Floating debt 60, 890 prevailed in France last spring (1920), no al- Advances of the Bank of France 25, 600 lowance being made for the decline in prices Foreign debtl 83, 245 which has occurred since that time. In April, 1920, the wholesale price index of the Bureau Total 302, 735 de la Statistique Generale stood at 588 (using 1 Calculated at the exchange rates of Feb. 28,1921. 1913 prices as 100), while in March, 1921, it had M. Cheron added that claims for war pen- fallen to 356, or almost 40 per cent. sions, soon to be presented, will necessitate a In 1920 some of the other indirect taxes great increase in the debt. yielded more revenue than had been expected Despite the request of the finance minister of them, so that total receipts from indirect and the pressure of public opinion, the Senate's taxes and Government monopolies for the year examination of the budget was not concluded exceeded budget estimates. In the first three by the end of the month, and it was necessary months of 1921, however, there has been a to pass a provisional credit for April. When deficit not only in receipts from the total busithe 1921 budget was presented to the Chamber ness turnover tax but also in total receipts of Deputies last October it was generally from indirect taxes and Government monopoconsidered so much like the budget for 1920 lies, which amounts to about 671,000,000 francs. as to insure its quick enactment into law. The In March the difference was the result of deficits Chamber was desirous, however, of making cur- in the customs, post-office, and sugar tax rerent receipts balance all current expenditures, ceipts, as well as in the tax on business turnexcept those for which Germany is eventually over. responsible. A great deal of time was consumed The great change which has been taking in attempting to reduce the estimates for ex- place in French industrial life during the last six months is illustrated by foreign-trade figures i French price, trade, and financial statistics will be found on pp. recently published for the first quarter of 1921. 601, 603, 605, 607, 608 of this issue of the BULLETIN. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

556 FEDERAL RESERVE BULLETIN. MAY, 1921. Instead of the usual excess of imports (an ex- steel products, broad silks, clothes of all kinds, cess which amounted to 35,799,000,000 francs leather and leather manufactures, machinery in 1919 and 12,970,000,000 francs in 1920), there and machines, other metal manufactures, autowas an excess of exports for the first quarter of mobiles, and rubber manufactures, exported 1921 which amounted to 129,000,000 francs. during 1920, exceeded, in some cases, by a However, as the following table indicates, this wide margin, the amount exported in 1913. surplus was all achieved in one month of the The following table gives a brief survey of the quarter, and during the other two months (Jan- quantity and value of France's chief exports in uary and March) there was a small excess of 1920: imports. EXPORTS FROM FRANCE, CALENDAR YEAR 1920. FRENCH FOREIGN TRADE.1 (In millions of francs.] In t q h u o i u n s t a a n ls d . s of m m fr i a n n i c o s n . s Excess of Imports. Exports. imports (+), exports ( — ). 1920 1913 1919 19201 1921. i Wines 1,357 2,136 203 365 531 January ; 1,982 1,883 + 99 Raw wool 109 I 418 310 241 964 February j 1,614 1,899 -285 Pig iron, iron, and steel 3,666 13,594 87 181 710 March. /. ! 1,743 1,686 + 57 Chemical products (except nitrate of soda) 11,126 4,019 9,193 211 326 1,119 Total ! 5,339 5,468 -129 Yarns 505 148 246 212 269 559 Cotton clotii 554 350 j 469 385 782 1,262 Woolen cloth 234 55 143 220 249 629 1 Calculated in 1919 values. Broad silk 67 62 77 429 1,472 1,867 Clothes of all kinds 78 32 100 253 809 1,657 The surplus of exports during February and L Le e a a t t h h e e r r manufactures 1 4 5 6 4 1 3 0 6 1 1 1 8 0 8 1 14 8 5 9 3 30 2 4 3 5 6 1 6 7 2 the very small surplus of imports during Jan- Machinery and machines... 823 541 905 123 270 ?29 Metal manufactures 1,492 356 1,527 137 153 548 uary and March is due as much to the de- Automobiles 258 59 502 227 125 1,188 cline of imports of food and raw materials into Rubber manufactures 69 112 188 100 274 462 France as to the increase in French exports. 1 Expressed in 1919 value units. Exports for the first quarter of 1921 are larger than those for the same period in 1920 by The distribution of France's foreign trade about 1,000,000,000 francs, but exports for during the year 1920 furnishes an interesting March, 1921, are smaller than those for August, commentary on the condition of her exchanges. 1920 (when last year's peak was reached ac- The countries from which she imported most cording to all the figures now available), by are the United States, England, Germany, Belabout 700,000,000 francs. The decline in im- gium, and Argentina. (Imports from Germany ports is even more marked. Total imports for include imports of coal and coke, valued at March, 1921, are valued at 1,988,000,000 francs 1,365,000,000 francs, and of other materials less than imports for March, 1920, which imported on reparations account, which have, marked the high point in the import trade of of course, no effect on the exchange situation.) last year. France exported most during 1920 to Belgium, This decline in imports is partly due to the England, Algeria, the United States, Switzerfact that France is now more nearly able to land, and Germany. The excess of her imports support herself than she was during and imme- over her exports (although it was smaller than diately after the war, but it is also due to the it had been since before the war) amounted to slackening of industrial production which has 12,970,000,000 francs, of which 5,291,000,000 taken place in France as in the rest of the francs represent the excess of imports from the world in the last six or eight months. United States over exports to the United States. Before this slowing down began, however, England, Belgium, and Argentina are the other France had given convincing evidence of the countries with which the trade figures show this extent to which her industries had readjusted same inequality, and they partly explain the themselves to peace-time conditions. An ex- unfavorable state of French exchanges during amination of detailed foreign trade figures for the year. 1920 shows how prosperous the export trade in The following table sets forth French foreign certain commodities became during that year. trade by countries in 1920 as it has been re- The amount of wines, semifinished iron and cently published by the ministry of finance: Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

MAY, 1921. FEDERAL RESERVE BULLETIN. 557 FOREIGN TRADE OF FRANCE,1 CALENDAR YEAR 1920. also contributed to the continued decline of prices in that industry. [In millions of francs.] Textile prices were irregular during March. Japanese raw silk rose in price because of a ! Excess of Imports. WEvxTp,_o_rftos .,! ( i + m£p o ex r_ts s a h n o d r t F a r g e e n c a h t r th aw e e s n il d k o p f r i m ce o s n r t e h m ; a C in a e n d t o p n r , a c It t a ic li a a ll n y , |ports(—). unchanged. Contract prices for cotton at Havre were also firmer, but Buenos Aires fine England 6,747 3,512 ! 3,235 Germany 2,658 1,180 i 1,478 wool in the same market fell sharply. Belgium 2,569 3,914 , 1,345 Switzerland 803 1,442 : 639 French retail prices also declined in March. Spain 849 884 35 According to the Paris index number of the Italy 892 1,062 I 170 United States 7,062 1,771 5,291 Bureau de la Statistique Generale the decline Brazil 653 304 ; 349 Argentina 2,054 379 : 1,675 amounted to about 6 per cent. As a result of Other foreign countries. 7,893 4,602 3,291 the decline in retail prices the mechanical in- AAlglieria 960 1,926 : 966 MT O u t o h nr e oi r cs .c F o re . n c . h colonies and protectorates. 1, 2 8 T 1 9 V 9 4 * 6 3 4 4 9 1 7 4 8 i ! ' - + 1, 3 2 9 4 4 9 7 ? d co u s s t t r o ie f s l o iv f i t n h g e b P o a n ri u s s e re s gi w o h n i c h h a v t e h e d y e cr h e a a v s e e d b t e h e e n granting to their employees. Total 35,405 22,435 I + 12,97C The Bureau de la Statistique Generale has 1 Expressed in 1919 value units. recently made public its retail price indexes for the various regions of France. These There have been several slight changes in the figures show that at present, as before the war, situation of the Bank of France in March. retail prices in the west are lower than in any The increase in the amount of gold reserve other part of France, while prices in the north held in France amounted to about 1,000,000 are higher than in any other section. The folfrancs during the month and the increase in the lowing table summarizes the figures given out silver reserve to about 3,000,000 francs. The on this subject: note circulation also increased, the difference between the notes in circulation in the last RETAIL PRICES IN FRANCE1 BY DISTRICTS. week of February and in the last week in March being about 627,000,000 francs. Deposits, however, declined to the extent of about France.North. East. S e o a u s t t h . - C te e r n . - West. A L ls o a r c - e- 189,000,000 francs. raine. The wholesale price index of the Bureau de la Statistique Generale declined 20 points, or 1913,1st quarter. 1,020 1043 1,030 1 038 Q85 1914, 3d quarter.. 1,004 1,089 988 1,018 988 942 1084 5 per cent, during March, as compared with a 1 QOft* decline of 31 points, or almost 8 per cent, in 1st nuarter.. 3,204 3,299 3,155 3,228 3 223 3 085 3 092 2d quarter... 3,802 3»959 3,800 3,876 3 744 3 533 3 853 February. All the group indexes except those 3d quarter.... 3,898 4,117 3,859 3,884 3 777 3 648 3 992 4th quarter.. 4,519 4,693 4,456 4,522 4 423 4 345 4 530 for vegetable foods and for sugar, coffee, and 1921, 1st quarter. 4,303 4,450 4,218 4,266 4,203 4,180 4,424 cocoa declined, the greatest decrease occurring 1 Based on the prices of eleven foods, kerosene, and alcohol. in the indexes for animal foods and for sundries. The nonferrous metal market displayed ITALY.1 greater firmness during March than in the month previous. Aluminum prices declined, Italian foreign trade figures for the entire but lead and zinc rose slightly, and tin prices year 1920 are now available, valued on the fluctuated, closing the month not far from basis of 1919 prices. Comparison can theretheir end of February level. fore be made of the volume of trade in the The price of metallurgical coke (which is two years. The table below contains the still regulated by the Government) was again figures showing the situation in 1919 and 1920 reduced and fixed at 125 francs as of March 20, on a monthly basis. 1921. The effect of this decrease upon steel prices is not yet clear, as other factors have 1 Italian price, trade, and financial statistics will be found on pp.601, 603, 007, 609 of this issue of the Bulletin. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

558 FEDERAL RESERVE BULLETIN. MAY, 1921. ITALY'S FOREIGN TRADE IN 1919 AND IN 1920. [Precious metals not included. In millions of lire, based on 1919 value units.] Excess of imports over exports Imports. Exports. at end of month—i. e., cumulative. 1919 1920 Difference. 1919 1920 Difference. 1919 1920 Difference. January 1,061 1,002 -59 260 497 +237 801 505 -296 February.. 1,368 1,141 -227 301 616 +315 1.868 1, 030 -838 March 1,656 1, 431 -225 367 683 +316 3^157 1,778 -1,379 April 1, 651 1,363 -288 350 679 + 329 4,458 2,462 -1,996 May 1, 364 1,401 + 37 358 662 + 304 5,464 3,201 -2, 263 June 1,431 2, 076 + 645 484 752 +268 6,411 4, 525 -1, 886 July 1. 555 1,040 -515 432 521 + 89 7,534 5,044 -2.490 August '872 1,249 + 377 548 532 -16 7, 858 5,761 -2,097 Sentember. 1,529 1, 202 -327 662 571 — 92 8,725 6,392 -2,333 October 1,190 1,126 -65 755 707 -48 9,160 6, 811 -2,349 November.. 1, 283 1,240 -43 717 731 + 14 9,726 7, 320 — 2,408 December.. 1,663 1,591 -72 832 853 +21 10, 557 8, 058 -2,499 Total. 16,623 15, 862 -761 7,804 + 1,738 10, 557 8,058 -2,499 Italian imports during 1920, as shown by oils. In August there was another large incustomshouse statistics, had a value of 15,862,- crease in imports, which may be accounted 000,000 lire, as compared with 1919 imports for by the heavy importation of metals and valued at 16,623,000,000 lire, thus showing a metal goods. decrease of 761,000,000 lire for the year. Exports during the first six months of 1920, This shows a decrease in actual volume of im- on the other hand, exceeded those of the corports, since in both cases the figures are based responding period of 1919 by 1,769,000,000 upon 1919 prices. Exports in 1920, valued on lire, which again is more than the total inthe same basis, totaled 7,804,000,000 lire, ex- crease in exports for the year. In the second ceeding those of 1919 by 1,738,000,000 lire. half of the year the export trade slackened as Although the excess of imports over exports a result of industrial depression in foreign remains very large, aggregating 8,058,000,000 countries, and figures for August, September, lire, it is considerably lower than the excess of and October are lower than those for the imports in 1919, which was valued at 10,557,- corresponding months in 1919. The export 000,000 lire. This improvement of nearly trade in cotton goods and silk were particu- 2,500,000,000 lire shows the relative increase in larly seriously affected. In fact, 1920 exports the physical volume of aggregate exports as of silk up to the end of November were valued compared with aggregate imports during the at 90,000,000 lire less than those of a similar year. In the following table the ratios of ex- period in the preceding year, while at the end ports to imports in recent years are presented: of June they had exceeded those of the first six months of 1919 by 459,000,000 lire. RATIO OF THE VALUE OF EXPORTS TO IMPORTS, 1900-1920. It would seem that the reduction in imports Average 1900-1913 72 8 occurred in those commodities which are usu- 1914 75. 6 ally imported in the greatest quantity; in other 1915 53. 9 words, raw food materials and metals. Thus 1916 36. 8 1917 21. 6 during the first 11 months of 1920, the latest 1918 20. 9 period for which detailed figures are available, 1919 36. 5 imports of animals and animal products 1920 49. 2 amounted to 780,000,000 lire as compared with It is apparent from the first table above 1,855,000,000 lire in the same period of 1919; that neither the decrease of imports nor the imports of cereals, fruits, and vegetables increase of exports were uniform throughout showed for the same period a decrease of about the year. During the first four months of 360,000,000 lire; while imports of metals and 1920 the imports showed a decrease of 799,- minerals and their products decreased simi- 000,000 lire as compared with the same period larly. These and other decreases were comin 1919. This decrease is greater than the pensated to a certain extent by the increase in total for the entire year. In May and June, imports of other classes of goods of which however, an increase of imports set in, which cotton, wool, bristles and furs and their prodwas mainly due to the heavy demand for ucts, silk, timber, alcohol and oils, paints and foreign grains, cotton, woolens, alcohols, and dyes are the most important. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

MAY, 1921. FEDERAL RESERVE BULLETIN. 559 The commodities in which the greatest im- that there has been, since the first of the year, a provement was shown in the export trade slight decline in the prices paid by the conbetween the years 1919 and 1920 are chemical sumer. Beside its general wholesale price goods, including medical and toilet supplies, index, the Frankfurter Zeitung compiles a hemp, flax and their products, cotton and cot- wholesale and a retail price index for 10 foods ton goods, vehicles, and vegetable foods. The in Frankfurt, using January, 1920, as 100. On export trade in silk decreased during the year. March 1 the wholesale price index registered The chief source from which Italy draws her 105 and the retail price index 122. During the imports is the United States. During 1920 she month both indexes declined, the decrease imported cotton to the value of 1,097,000,000 being almost 8 per cent in the case of the wholelire, grain to the value of 981,000,000 lire, sale prices and almost 6 per cent in the case of mineral oils valued at 345,000,000 lire, and coal retail prices. This index does not include any at 307,000,000 lire. Great Britain ranks second meat prices, however. as the source from which she obtains her im- The most recent figures on the cost of subports. Coal constitutes almost one-third of the sistence prepared by the Berlin statistical value of her total imports from there. Argen- office also show a slight decline in retail prices. tina, France, and Germanv rank next in order The minimum cost of food for a growing of importance as sources of Italian importation. person was estimated by that office to be 58.09 France, Switzerland, Great Britain, and marks in February as compared with 61.23 United States are the chief countries to which marks in January, a decline of about 5 per cent. Italy sends her commodities. In the case of The index number of total living costs in France and Switzerland silk constitutes the Germany, prepared by Dr. Elsas and published largest proportion of the exports. at intervals in the Frankfurter Zeitung, uses April, 1919, as 100, and stands at 297 on the GERMANY.1 first of March, 1921, a decline of 14 points, or 4.5 per cent, from the January 1 figure. On Because of the Government's decision to this basis the cost of living index on January allow an increase in coal and coke prices in 1, 1914, was 26.5. The following table shows Germany, the downward movement of the the distribution of the different elements wholesale price index of the Frankfurter which go to make up Dr. Elsas's index: Zeitung was arrested during March. The " all commodities index," published by that news- COST OF LIVING IN FRANKFURT AM MAIN. paper, which had declined 14 per cent from December 1,1920, to March 5,1921, decreased only eight-tenths of 1 per ceat from March 5 to April 2. Apr. 1, Nov. 1, Jan. 1, Mar. 1, 1919. 1920. 1921. 1921. Although the increase in coal prices was the determining factor in retarding the decline of Food 60 230. 33 225.65 212.92 the index number, the prices of cement, zinc, Clothing 17 27.97 26.21 24.59 lead, nickel, and hides also increased during the H Re e n at t and. light 8 5 1 9 7 . . 6 9 0 5 1 9 8 . . 6 1 0 0 1 1 0 8 . . 0 1 0 0 month. Among the foodstuffs, the price of Miscellaneous .. 10 29.86 31.35 31.35 milk increased greatly in March, but other Total 100 315. 71 310. 91 296.96 important foods, including eggs, corn, condensed milk, rice, wine, cocoa, coffee, peas, and The comparative stability of rent costs beans, declined in price. There were also sharp shown in the above table is due to the fact price decreases among the textiles, but raw that rents are regulated by the Government. cotton rose slightly. The increase recorded from January 1 to As the wholesale price index number of the March 1 is the result of a new regulation which Frankfurter Zeitung now stands, it contains the requires tenants to make all necessary repairs. prices of 77 important commodities. The Along with the decline in wholesale prices in original computation is based upon prices in Germany since December there has been an in- January, 1920, equal to 100, and on this basis crease in the number of bankruptcies. During 9.10 is the index number for the middle of the war period, when the Government so largely 1914 and 130 for April 2, 1921. It is evident controlled industry and prices were continually that if the index is recomputed, using 1914 as rising, the number of commercial failures was 100, the index number for January 1, 1920, reduced almost to a minimum. During 1920 will be 1,099 and for April 2, 1921, 1,429. there was a slight increase in their number, It seems clear from the various indexes pre- but the increase in the first quarter of 1921 is pared on the subject of retail prices in Germany much more marked, although it is still far below the prewar average. The number of 1 German price, trade, and nnancial statistics will be found on pp. bankruptcies from January to March, 1921, 601, 603, 605, 609 of this issue of the BULLETIN. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

560 FEDERAL RESERVE BULLETIN. MAT, 1921. was 728, as compared with 207 in the first States where the greatest amount of unemployquarter of 1920, and 2,428 in the first quarter ment occurred during February were Saxony, of 1914. Hamburg, and Lubeck, although unemploy- What seems to be another consequence of ment was also very great in Prussia. The folthe shift in the trend of business conditions is lowing table gives a survey of the work of the the comparatively small number of corpora- public employment agencies during February: tions which increased their capital stock during March. During 1920 and January and Feb- ACTIVITY OF PUBLIC EMPLOYMENT AGENCIES IN GERruary, 1921, there was a general movement MANY, FEBRUARY, 1921. among German corporations to increase the amount of their capital issues in order to bring Men. Women. them more into accord with the present price level. However, the amount of the capital Num- Number of ber of i M ss a u r e c s h p w la a c s e d m u u c p h o n s m th a e ll er G e th rm an a n in m a th rk e et f ir i s n t By industries. Number N be u r m o - f a c p a p n l t i s - N b u e m r - N be u r m o - f a c p a p n l t i s two months of the year. The increases in s w ee o k r i k n . g t p i o o s n i s - each s i e n e g k- t p i o o s n i s - each capital during the month amounted to only open. p 1 o 0 s 0 i- work. open. p 1 o 0 s 0 i- 531,000,000 marks, as compared with increases tions tions open. open. of 1,373,000,000 marks in February and 1,092,000,000 marks in January. Agriculture. 47 713 30 594 156 8 843 46 There seems to have been little change in the Mining, etc 15,084 16,344 92 110 Stone and earth inlabor situation in Germany from February 1 to dustry 6,960 3,273 213 • Metal and machine March 1 (the latest date for which figures are industry ... 101,649 28 491 357 13 031 4 239 307 available). The German trade-unions report Chemical industry.. 2, 255 1,184 190 1,111 475. 234 Textile industry 10,758 2,138 503 18,466 4,958 372 that of their membership of over 6,000,000 on Paper industry 3,168 950 333 3,921 2,192 179 Leather industry 8,189 1,685 486 1,141 598 191 the last of February, 4.7 per cent were out of Woodworking 22,274 7,929 281 1,122 506 222 employment as compared with 4.5 per cent the Food industries 27, 842 8,366 333 5,846 3,537 165 Clothing and cleanlast of January and 4.1 per cent the last of ing trades 22 385 8 671 258 18 101 9 621 18S Building 64,849 19,105 339 December. On the other hand, the Govern- Transformation inment announces that the number of people re- dustries 9,224 4,512 204 1,732 1,481 117 Industries involving ceiving State aid on account of unemployment artistic work 1,446 192 Machinists, etc., infell from 433,204 on February 1 to 428,033 on dustries not speci- March 1, a decrease of a little more than 1 per fied 65 655 18 855 348 46 939 9 991 47G Commerce 24,195 6,148 394 12 660 5 625 225 cent, and the public employment agencies note Entertainment 39,314 28,042 140 16,660 16,420 101 a similar improvement. During January there Miscellaneous wage work and housewere 210 applicants for every 100 positions hold service 237,018 79,868 297 87,669 105,471 83 Casual labor. 41,507 26,558 156 4, 748 2,431 195 available at these agencies, while during Feb- Apprentices in all industries 20,627 14,597 141 11 092 4 271 260 ruary there were only 206 applicants for every Without professional 100 positions open. groupings 824 31 1,171 502 The public employment agencies tabulate Total 772,936 307,533 251 254,303 191,506 133 applicants for positions and positions available Men and women toby industries and thus furnish an interesting gether 1,027,239 499,039 206 index as to the activity of the various industries in the country. During February there It is quite generally admitted that one reawere more applicants for positions in relation son unemployment in Germany is not more to positions open in the textile industry than in widespread at the present time is that the any other, but the leather industry, the metal Government continues to carry so large a and machine trades, commerce, and the number of employees on its pay rolls. The building trades also furnished a great many Reichstag commissioner, who was appointed to unemployed. It is interesting to note that the eliminate extravagance in Government departnumber of women applicants for every 100 po- ments, has resigned his position, and a new sitions open amounted to only 133 during Feb- method for reducing the number of people ruary, wnile the number of men for every 100 employed by the Government has now been positions reached 251. In the case of a few inaugurated. However, it remains to be seen industries, inquiries for workers exceeded ap- how the new scheme will work, and the new plicants for positions. In mining there were budget contemplates an increase rather than a only 92 men applying for each 100 positions; decrease in so-called " ordinary expenditure." in agriculture only 46 women applying for each The budget for the year ending March 31, 100 openings; and in domestic service only 83 1922, is now in the hands of the Reichstag. women responded to each 100 inquiries. The It compares as follows with the estimated Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

MAY, 1921. FEDEKAL, RESERVE BULLETIN. 561 expenditures for the year ending March 31, cent to France, 3.1 per cent to Belgium, and 1921: 2.9 per cent to Italy. The article in question does not quote figures on imports for this same period, nor does it state whether exports ESTIMATED GERMAN GOVERNMENT EXPENDITURES. shipped on reparations account are included [In millions of marks.] in the export figures just quoted. For this reason it is impossible to draw any conclusion Fiscal Fiscal as to Germany's balance of trade from this year 1920.year 1921. statement. The March 31 statement of the Reichsbank Ordinary budget I 41,600 47,000 Extraordinary budget | 62,300 40,500 shows an increase of 1,990,000,000 marks in R Po a s il t w al a d y e f d i e c f it i cit 1 ;\ / 1iyQ > ^ Ou n u n 1 2 1 , , 0 7 0 0 0 0 the note circulation of the bank as compared with the end of February, and a decrease of Total 123,000 101,200 587,000,000 marks in the Darlehnskassenscheine in circulation. There was practically no It is expected that taxes already in force change in the gold reserve held by the bank. will produce 43,800,000,000 marks this year and that new taxes will be enacted and old SWEDEN.1 taxes increased to meet the remaining 3,200,- Reports from Sweden indicate that depres- 000,000 marks of the ordinary budget. sion in industry there is as serious as in other Theoretically the budget will balance before the countries whose development is more excluyear is over. Of the 40,500,000,000 marks to be sively industrial. Production of manufacspent on the extraordinary budget 10,600,tured commodities in all lines has been heavily 000,000 marks will be met by revenue (includreduced, unemployment is growing, prices are ing 7,800,000,000 marks from the Reichsnotopon the decline, and the export trade has fallen fer, which was originally designed to reduce the to one-third of its value six months ago. outstanding debt) and 29,900,000,000 marks Although there was a slight slackening of the by loans. Assuming that the "ordinary budget77 receipts and expenditures will balance rapidity of recession, wholesale prices continued to decline in March. The all combefore the year is over, the estimated deficit modities index number of the Svensk Handelsfor the fiscal year 1921 amounts to 43,600,tidning, computed on the basis of prices in 000,000 marks, which is smaller than the 1913 = 100, dropped from 250 in February to deficit for the fiscal year 1920 by about 237 in March, a decrease of 5 per cent as com- 38,000,000,000 marks. pared with a decrease of 6 per cent in the pre- The Leipzig spring fair opened on March|6, ceding month. Practically no change occurred and by the 7th the attendance was placed at in the wood-pulp index, which stands at the 90,000, including buyers from England, Amerhigh figure of 510 and still far exceeds the ica, Sweden, Czecho-Slovakia, Bulgaria, and index numbers for other commodity groups. Roumania. The textile display and the exhib- Appreciable declines were registered in the its of mechanical apparatus and electrical index numbers for building materials, coal, and machines attracted the greatest number of oils. A notable feature was the drop in the visitors. In general, however, German foreign price of hides and leather to 15 per cent below trade was in a choatic condition during March. the prewar level. The retail price index, com- The imposition of the 50 per cent import duty puted on the basis of prices in July, 1914 = on German goods by England, France, and 100, declined from 262 in February to 253 in Belgium caused the cancellation of contracts March, a fall of approximately 3 per cent. with individuals in those countries by German The paper-pulp industry, second only to merchants and further contracts were withheld lumber in importance in Sweden's national until the reparations question should be economy, is affected by the worst depression settled. in its history. In February only 6,300 dry- It is impossible to form any very definite weight tons of pulp were exported as compared ideas in regard to German foreign trade in with 210,000 tons in 1913. The pulp market 1920. A recent number of the Frankfurter continues absolutely stagnant. To prevent Zeitung quotes figures of the German Governaccumulation of stocks, the Norwegian Mement's statistical office on the total value of chanical Wood Pulp Association approached German exports, January through September, the Swedish producers with a proposal for a 1920. This total value amounts to 47,170,joint stoppage of all mills for a period of five 000,000 marks, of which 20.9 per cent went to the Netherlands, 9 per cent to Switzer- 1 Swedish price, trade, and financial statistics will be found on pp. land, 5.7 per cent to Great Britian, 3.1 per 601, 603, 605, 607, 610 of this issue of the BULLETIN. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

562 FEDERAL RESERVE BULLETIN. MAT, 1921. weeks, to be followed by a 50 per cent curtail- to the supply. In industrial lines the dement in production, until the paper factories pression was greatest in the metal and meagain enter the market. Although the Nor- chanical trades, which had no less than 6,998 wegian grinding mills have already decided applicants for every 100 occupational openings. upon a complete shutdown from April 9 to In the garment trades the unemployed num- May 15, no similar action has yet been taken bered 1,426 per 100 vacancies. The building by the Swedish producers. trade was the only industrial line showing any The strike in the chemical wood-pulp indus- appreciable labor demand, the ratio being try, which began early in February, was offi- about 250 applicants per 100 openings. cially settled at the end of March by the workers Among the organized trade-unions reporting accepting a 15 per cent reduction in wages. a total enrollment of 154,707 members, 20.2 It is estimated by Affdrsvdrlden that the re- per cent were unemployed on January 31, 1921. duction in pulp output up to April 6, on ac- The gravity of the unemployment problem count of the strike and the voluntary closing led the Government labor commission to submit of seven other plants lacking orders, amounted a bill to the Riksdag in March for an additional to 77,000 tons of sulphite and 23,000 tons of grant of 11,000,000 kronor, to be increased sulphate pulp, or together 100,000 tons. eventually to 28,000,000 kronor. The object A survey of 79 representative industrial of this subvention is to provide special emerenterprises just completed by the Skandina- gency employment on State railroads and pubviska Kreditaktiebolaget discloses the fact that lic works and to alleviate suffering by means of only about one-fourth of the reporting estab- rent allowances and per diem subsidies to the lishments are operating at full capacity or at a unemployed. It is expected that 10,000 of the capacity reduced by 25 per cent or less. unemployed will be engaged for work on State Among those continuing full operations are and municipal enterprises from April 1 to the special enterprises whose products are pro- end of the year. tected entirely or in part by State monopoly. The depression is reflected in a falling off of One-fourth of the total returns show a reduc- both railroad and maritime freight traffic. Action in operations of between 25 and 50 per cording to a recent report of the State railways, cent. Of the reporting mills, 28 per cent have freight traffic in January declined to 608,000 retrenched between 50 and 75 per cent of normal tons, which compares with a monthly freight capacity, while the operations of the remaining average in 1913 of 830,000 tons. Idle ocean 24 per cent of the mills have been reduced tonnage increased over 178 per cent in January. more than 75 per cent. In addition there is a On December 31, 1920, there were 63 idle general paucity of orders among the reporting Swedish vessels, aggregating a total of 56,000 industries. Only about 23 per cent have their gross tons. At the end of January 151 vessels, order lists filled for three months in advance, with a combined gross tonnage of 156000 tons, ; while 40 per cent are on a hand-to-mouth basis were laid up. of operation, with orders booked ahead for a Exports in February were valued at 88,700,000 maximum of only two weeks. Moreover, 40 kronor and imports at 116,200,000 kronor, a deper cent of the mills covered in the inquiry cline from the preceding month of about 3 and report a reduction of working schedule to six- 5 per cent, respectively. Compared with the hour shifts and less. precipitous fall in January of 47 per cent for According to the labor department the exports and 38 per cent for imports, the Feb- Orebro shoe factories are running only 30 to 35 ruary percentage of decline shows a slowing up hours a week, while the mechanical and elec- in the rate of recession. trical shops have shortened their schedules 12 The volume of wood-pulp exports declined in per cent. February almost 50 per cent and that of un- Unemployment, as a result of the unprece- planed boards, planks, etc., about 37 per cent. dented industrial depression, has become Iron ore showed a quantitative gain of about 18 critical. An official labor census taken in per cent. February by the Swedish labor exchange Imports of coal, mineral oils, cotton, and registers between 55,000 and 60,000 unem- wheat still continue far below the amount imployed. For labor as a whole there were 301 ported in the corresponding month in 1913. applications per 100 vacancies, as compared In March, the note circulation of the Rikswith 133 in February, 1913. The increase bank reached approximately 717,000,000 kronover the number for January of this year was or, an increase of 29,300,000 kronor, or slightly approximately 22 per cent. Only in domestic more than 4 per cent compared with the Febservice, agriculture, and the special municipal ruary figure. Gold holdings amounted to and State enterprises of an emergency nature 281,700,000 kronor, showing only a nominal was the labor demand greater or nearly equal decline from the figures for the two preceding Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

MAT, 1921. FEDERAL 563 months. As the special parliamentary enact- 1920 as compared with an unfavorable balance ment allowing the Kiksbank a temporary sus- of £149,000,000 during the preceding year. pension of its gold redeeming obligation expired With regard to short-term indebtedness, on on March 31, a new proposition was introduced the other hand, conditions appear to be less into the Riksdag for a continuation of the favorable than a year ago or two years ago. measure until March 1,1922. The bill proposed Treasury bills outstanding at the end of 1920 (1) a suspension for a fixed period of the Riks- were slightly less than at the end of 1919, but bank's obligation to purchase gold in bulk; (2) the total floating debt was some £59,000,000 a temporary discontinuation of the obligation greater. This increase is in the form of temof the mint to pay gold coin for gold bars ten- porary advances from the Bank of England dered; (3) formal authorization for the Riks- and from public departments, and as these bank to issue notes to an amount of 125,000,- advances result in an increase in the balances 000 kronor above the amount stipulated by the of the joint stock banks at the Bank of Eng- State banking laws. land, they may be used as the basis for further credit expansion on the part of the private banks. Comparing the situation at the end of BRITISH FINANCE DURING THE WAR.1 1920 and the end of 1919, statistically, we find that the foreign debt has been decreased In the following article an effort has been £193,000,000, treasury bills outstanding £5,made to present statistically some of the 000,000, and the total debt £247,000,000. salient facts regarding British war finance; Temporary advances have increased £63,the methods used by the treasury in raising 000,000. money; the effect of these methods upon the Most of this article is concerned with the Bank of England and the joint-stock banks; borrowing methods of the British treasury, and and the present financial situation of the the effect of these measures upon the Bank of Government. The basis for the study is the England and the discount market. The taxstatistics published by the treasury each ation policy of the Government is of primary quarter regarding Government receipts and importance in this connection not only as formexpenditures, those of the Bank of England ing the basis upon which estimates of borrowpublished each week showing the condition of ing are made, but also because receipts from the bank, and similar statements of the joint- revenue are an important item in moneystock banks published semiannually. The market considerations, influencing treasury-bill figures compiled by the Economist each week sales especially. For that reason a brief reshowing the outstanding debt have also been sume is given of the more important taxation used. The literature on the subject has been provisions of the war period and since. covered, but the conclusions reached are based in the main upon the statistical showing of the REVENUE FROM TAXATION. different items. Revenue from taxation has been constantly increasing since the beginning of the war, PRESENT CONDITIONS. partly because of increasingly lieavy rates in Before tracing in some detail financial con- the case of both direct and indirect taxes and ditions in England during the war, it may be partly because of increases in the size of the worth while to give a brief summary of present taxable bases. In the fall of 1914 income tax conditions as regards public debt. By the end rates were increased and in 1915 practically of 1920, England had made very considerable doubled. At the same time the duty on strides away from war-time conditions. The excess-profits was imposed at the rate of 50 per foreign debt had been reduced by £193,000,000, cent. In 1916 both of these taxes were again leaving, however, £1,164,000,000 in foreign ob- increased and indirect tax rates also became ligations still outstanding. These obligations much heavier. In 1917 the income tax was are held for the most part in the United States, not changed, but the duty on excess war approximately 75 per cent by the United profits became 80 per cent. No further States Government. Of importance in this increase was made in the excess-profits duty same connection is the fact that British for- during the war, and in 1919 it was cut to eign trade position has improved in a remarka- 40 per cent. In 1920 it was again increased, ble fashion, the board of trade estimating the however, this time to 60 per cent, but it is to favorable balance (taking into account in- be entirely eliminated in the next fiscal year. visible exports) as £165,000,000 for the year Revenue from these two types of taxes are presented in the following table in their ratio 1 Prepared under the direction of K. H. Snodgrass, Division of Anal- to total revenue. ysis and Research. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

564 FEDERAL ftESEEVE BULLETIN. MAY, 1921. Revenue from property and income tax and from excess laration of war, as unusually large balances profits duty. were held abroad by British houses at that time. In fact, throughout the latter half of [Expressed in millions of pounds sterling.] 1914 the American exchange was favorable to England, and it was not until 1915 that sterling Property and began seriously to depreciate. Payments were Year ending- t i c n a l x u c d o ( i m i n n e g - P of e r t o c t e a n l. t d p E u r x t o y c f , i e t e s s t s , c. P o e f r t o c t e a n l t . re T v o en ta u l e. o th f en g o m ld a d h e e l i d n i t n h e C U a n n i a t d e a d S (a ta p t p e r s o b x y im th at e e l t y r a £ n 1 sf 8 e , r super tax). 000,000 were paid to the United States by England during 1915), but purchases were of Mar. 31: such magnitude that this source soon became 1915 69 30 227 1916 . . . 128 38 337 insufficient, and by the end of 1915 it became 1917 205 36 140 24 573 necessary for the British treasury definitely to 1918 240 34 220 31 707 1919 291 33 285 32 889 "peg" the rate of exchange. As early as July, 1920 359 27 290 22 1,340 9 months ending 1915, the Bank of England had begun to pur- Dec. 31,1920 157 18 156 18 889 chase American securities and sell them in New York with a view to supporting the exchanges, and in December tne treasury FINANCING IMPORTS. began to purchase and borrow securities for the Between July, 1914, and the spring of 1917, same purpose. In the meantime the Anglowhen the United States entered the war, the French loan had been floated in the fall of 1915 two leading problems in British finance were with a view to providing funds in the United (1) the financing of imports and (2) the raising States for American purchases and transfers of of domestic funds in the form of long and gold continued to be made. Throughout the short term obligations. As is well known, a first half of 1916 the sterling rate was kept very large proportion of war supplies, munitions, steady at about $4.76 by the sale of securities, food, and clothing were procured from the but by the middle of the year the supply of United States and other foreign countries. foreign securities held by the treasury had been The problem of arranging for the payment of heavily drawn upon. In order, therefore, to these goods was, therefore, a matter oi primary force all those who held American securities to importance, especially in the case of England place them at the disposal of the treasury, a spebecause upon her devolved the responsibility of cial tax was placed on such securities, with the reproviding credits for the other Allies as well, sult that a considerable number of them which rayment theoretically could be effected by formerly had been withheld came into the means of four main channels—(1) export of possession of the Government. By the end of goods, (2) export of gold, (3) sale of foreign 1916 foreign securities to the value of £466,securities, (4) foreign loans—and as a matter 000,000 had been obtained by the British treasof fact all four of these channels were used. ury, £118,000,000 by purchase and £348,000,- During this period the British domestic indus- 000 on deposit. In order that payments might trial plant was so completely occupied with be made in foreign countries other than the war orders that there was very little capacity United States, similar operations were underfor production of goods for export. For this taken with other foreign securities, but not on reason exports were materially reduced from the same scale as in the case of the United prewar levels, and this method of paying for States. The latter half of 1916 was a period imports had to be very largely supplemented of distinct strain, the effort to keep the pound by other means. The shipment of gold was at approximately $4.76 necessitating direct not feasible as an exclusive method of supple- loans in the United States uncollateraled by menting exports of goods, partly because the American securities as well as collateraled reserve held in England would have been loans. With the entrance of the United States insufficient for this purpose, partly because it into the war this phase of the problem was was needed as a banking reserve, and also somewhat relieved, since direct loans were because of the dangers of transportation arising made by the United States Treasury to the from submarine attacks. It was therefore British Government. necessary to make payments also by the sale With the end of the war Government purabroad of foreign securities or properties held chases abroad ceased for the most part, and by British investors, and bv direct loans from consequently support of the exchanges was disforeigners, collateraled by foreign securities or continued in March, 1919. By this time holdelse uncollateraled. ings of American securities by private investors It was not necessary to resort to the sale of had been heavily depleted (the treasury had foreign securities immediately upon the dec- purchased securities to the value of £178,- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

MAt, 1921. FEDERAL RESERVE BULLETIN. 565 000,000 for re-sale in New York); gold was LONG-TERM BORROWING. needed for the domestic reserve and its export therefore prohibited; exports of merchandise Prior to the war Government funds had been were still far below normal; and American ship- borrowed by three methods—the funded debt, ping had curtailed the demand here for British the fairly short-term exchequer bond, and the tonnage. As a natural result of these factors, treasury bill. The funded debt carried with with the removal of the support furnished the it no obligation for repayment—was in fact a exchanges by Government loans, sterling de- permanent annuity; the exchequer bond was preciated heavily in the New York market. usually of 5 years7 duration, and treasury bills Although the rate of exchange on New York is ran from 3 to 12 months and were used to profar more favorable to England at the present vide for temporary Government deficiencies. time than it has been during a large part of Since 1914 the first form of borrowing men- 1920, it still shows (in April, 1921) a deprecia- tioned above has been entirely eliminated; the tion of about 20 per cent from par. exchequer bond (both 3 and 5 year) has been used and supplemented by the national war As has been pointed out already, after the bond of 5, 7, and 10 years7 duration. Treasury entry of the United States into the war, bills have assumed a r6le of enormous imporpurchases here of munitions and other suptance, those outstanding at one time frequently plies were paid for by advances of the United exceeding the billion pound mark, while before States Government to the various foreign the war they seldom exceeded £20,000,000. Governments. In the case of England receipts from foreign loans reached very large Prior to the entrance of the United States totals, especially in 1917, 1918, and 1919. into the war three large war loans were placed, Receipts from " other debt/7 the item in the the 3^ per cent loan of November, 1914, the treasury statement referring to foreign loans, 4J per cent of June, 1915, and the 4 per cent amounted to the following between 1916 and and 5 per cent of January, 1917. The last 1920. Expenditures for the repayment of three of these were long-term bonds running "other debt'7 are also included. up to 25 and 30 years, the first ran from 11 to 14 years. In the intervals between the placing of these long-term loans, relatively short-term *' Other " or foreign debt. exchequer bonds were offered to the public first in March, 1915, with the offering of 3 per cent bonds maturing in 1920, then in December Fiscal year ending— | I Cr in ea g t e y d e a d r u . r- Re i d n u g c y ed ea d r. ur- of the same year when they were put on continuous day-to-day; sale until December, 1916, Mar. 31: when they were withdrawn to make room for 1916. £9,000.000 1917 ! 328,000,000 £21,000,000 the placing of the big loan of January, 1917. 1918 i 709,000.000 82,000,000 After this drive was over exchequer bonds 1919 539,000; 000 242,000,000 1920 196.000;000 256,000,000 were again placed on the market but were soon susperseded by the national war bond. Source: Finance Accounts—Great Britain. After the entrance of the United States into During the same time, as was mentioned the war, and since then, the British Governabove, England was making large advances ment has continued to place its long-term war both to her allies and to the dominions. By bonds in the hands of private investors; but 1918 the dominions had begun to pay these returns to the Government from this source back, but in the case of the Allies the amount have been in a diminishing proportion to total repaid up to the present time is practically receipts. At the same time the raising of negligible. funds by the sale of the short-term treasury bills and by advances on ways and means has increased markedly. In October, 1917, Advances to allies and dominions. a new form of borrowing was introduced with the day-to-day unlimited sale of the first series of national war bonds. Four Allies. Dominions. series of these were placed between October, 1917, and June, 1919, running for 5, 7, and 10 August, 1914-Mar. 31,1916. £288,000,000 £88,000,000 Fiscal year 1916-17 539,000,000 59,000,000 years. Great care was taken to make these Fiscal year 1917-18 505,000,000 47,000,000 Fiscal year 1918-19 236,000,000 1-23,000,000 bonds attractive to the investor; they might Fiscal year 1919-20 163,000,000 1-52,000,000 be used in payment for excess profits duties, death duties, etc.; and provisions were made i Repayments. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

566 FEDERAL RESERVE BULLETIN-. MAX, 1921. QUARTERLY RECEIPTS BY BRITISH TREASURY,&I4-I920. IN MILLIONS OFPOUTiDS. 800 soo 600 600 J 400 400 200 200 \ 0 mat -^ / FRC EVtlsue 0 1000 KW 800 800 600 600 A /\ 400 A \A 400 A\\ ZOO 7 200 / FROM DOMESTIC LONG TERVUOAHS. WAR LOANS. 1200 1200 J WO 1000 \ 600 800 f ( w 600 600 N r 400 1 y v 400 r J V V ZOO r / V 200 —' FROM TREASURY DILLS FOR SUPPLY FROM TEMPORARY ADVANCES TOTHE GOVERNMENT — 1 1914 1915 1916 1917 1918 1919 1920 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

MAY, 1921. FEDERAL RESERVE BULLETIN. 567 for their conversion into earlier issues. These periods later they were sold in fixed amounts bonds were on sale continuously from day to at specified dates. day and altogether brought into the treasury An examination of the charts will make clear £1,669,000,000. In June, 1919, seven months the function of the treasury bill in war-time after the war was over, the funding and victory finance. When funds were being used for the loans were offered to the public on very at- payment of taxes or in the purchase of longtractive terms. The returns from these loans term bonds, sales of treasury bills were apt to were disappointing, however, totaling • only fall off. If temporary funds were needed at £476,000,000. such periods in addition to those received from Receipts from the sale of long-term, ex- taxes and bonds the Government was forced chequer, and national war bonds during the to borrow from the bank or other departentire war period, and since, are summarized ments. Thus in the first quarter of 1917 in the following table, according to issues: £782,000,000 were received by the treasury by the sale of war bonds. At this time a large Receipts from loans.1 portion of the treasury bills outstanding were converted into long-term bonds, and the day- Cash credited to-day sale of the bills was suspended, re- Issue. Date of issue. to the sulting in a great reduction in this item. In exchequer. order to obtain temporary funds it was necessary, therefore, to borrow heavily on ways and 3J per cent war loan, 1925-1928... Nov., 1914 £332,000,000 3 per cent exchequer bonds, 1920. Mar., 1915 48,000,000 means. This in spite of the fact that revenue 4| per cent war loan, 1925-1945... June-July, 1915 592,000,000 5 per cent exchequer bonds, 1920. Dec, 1915-June, 1916. 238,000,000 from taxes was coming in more rapidly than 5 per cent exchequer bonds, 1919. June, 1916-Sept., 1916 34,000,000 at any other time of. the year. 5 per cent exchequer bonds, 1921. June, 1916-Oct., 1916. 62,000,000 6 per cent exchequer bonds, 1920. Oct., 1916-Dec, 1916. 161,000,000 Due to the fact that the funding and victory 5f per cent exchequer bonds, 1925 Mar., 1920 67,000,000 5 per cent war loan, 1929-1947 Jan.-Feb., 1917 loans of June, 1919, provided only £476,000,000 4 per cent war loan, 1929-1942 do • 941,000,000 5 per cent exchequer bonds, 1922. Apr.-Sept., 1917 82,000,000 cash and that no alternative funding operation National war bonds: has been put forward by the Government, the First series Oct., 1917-Mar., 1918.. 616,000,000 Second series Apr.-Sept., 1918 483,000,000 quantity of treasury bills outstanding has not Third series Oct., 1918-Jan., 1919.. 494,000,000 Fourth series Feb.-May, 1919 76,000,000 been materially reduced at any time during the 4 per cent funding loan, 1960-1990 June-July, 1919 231,000,000 last 18 months.2 4 per cent victory bonds do 245,000,000 5 per cent treasury bonds, 1935.. June, 1920 18,000,000 DISCOUNT RATES. The placing of the various types of long and SHORT-TERM BORROWING. short term loans had a very important effect Temporary borrowing was of some impor- upon discount rates and banking conditions in tance in the early years of the war, but was general. In fact, the rate on treasury bills not utilized on anything like the same scale may be said to have been the controlling factor at that time as in more recent years. The in the money market after April, 1915. The total funds obtained from long-term borrowing Bank of England rate was kept in harmony prior to the spring of 1917 were only a little with the treasury bill rate. less than those obtained since. The reverse The first long-term loan was placed in Nois the case with the short-term Government vember, 1914, at 3J per cent (issue price paper, of which there was issued between 95), when the plethora of money resulting four and five times as much after the entry from the rediscounting of premoratorium bills of the United States into the war as before. at the Bank of England began to be felt. Short-term borrowing in England takes two The Bank of England discount rate at that forms—(1) the sale of treasury bills and (2) time was 5 per cent, but for loans collatdirect advances to the treasury on so-called eraled by these war bonds it was 1 per cent "ways and means/7 Advances are made lower. Banks are reported to have subeither by the Bank of England or by other scribed for approximately £100,000,000 of the departments. These latter advances are re- bonds. The second big loan, that of June, ported unofficially as probably drawn largely 1915, was placed at par, interest 4£ per cent, from the currency notes fund. Treasury bills subject to tax. This loan was placed just are mainly of 3 months' duration, although after a period of very low rates, when effort they have been issued for 6, 9, and 12 months was being made to obtain control of the also. During the greater part of the war market by the fixing of the treasury bill rate they were on continuous sale "over the at a high enough point to attract funds; 4^ counter;" prior to April, 1915, and for brief per cent furnished, therefore, a very good offer. 1 Based on report of chief cashier's office, Bank of England, Dec. 15, 2 See p. 554 for Government's offer of Apr. 25, for funding national 1919, and quarterly treasury statements since then. war bonds. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

568 FEDEKAL RESERVE BULLETIN. MAT, 1921. Bank of England rate for loans collateraled by August 4, and in September was authorized this issue was one-half per cent below the to provide funds for acceptors to meet their official rate. Of the £592,000,000 raised by this bills when they fell due. This privilege of loan £150,000,000-£200,000,000 are reported rediscount was very generally utilized by the to have been taken by the banks. At about accepting houses, but the funds so obtained the time when the third big loan was placed in were not reinvested in bills. At the same January, 1917, the bank rate was lowered from time the immediate effect of the outbreak of 6 to 5^ per cent and the joint stock banks war was to slacken trade, and payment for made loans to subscribers at 5 per cent. transactions between the Allies did not take There were five changes in the rate of discount the form of commercial bills. Taken toat the Bank of England in the course of a few gether, these factors made for a surplus of weeks at the* time of the outbreak of war, three funds and a dearth of bills, with the result changes between that time and the entrance that rates on 3 months' bank bills were as of the United States into the war, but no low as If per cent in February, 1915, while changes whatever between April, 1917, and the rate at the Bank of England, as men- November 1919. The traditional policy of tioned above, was 5 per cent. In March, RATEATBANK0FEN6IAMDAND ON THREE MONTHS TREASURY BILLS ——• Jtanfc of England, State. ————State OTV JfareeMbntfisJreasury\SiZls. 6% 8% A 7% Ir 7% s 6% y... k 6Z 9 rz SX SX I I 4% w 4% 1 1 3% 3% J a% 2% 1 1% /% o O 1914 I91S 1916 191? 1918 1919 I9Z0 the Bank of England of raising discount rates 1915, in an effort to correct this condition, to attract foreign funds was followed in the the Bank of England began borrowing funds earlier years of the war. For the same purpose, from the joint-stock banks (thus limiting beginning in late 1917, a higher rate was their supply for other use) and the treasury paid by the Bank of England for foreign isisued more bills than it actually needed balances than for domestic. During July, (in order to furnish a form of investment for 1914, the bank rate rose from 3 to 4 to 8 per surplus funds). cent. On August 1 it was raised to 10 per Thus, rates were again pretty well under cent, but was quickly reduced to 6 and then control. The next change in the bank's disto 5 per cent, at which point it remained count rate was in July, 1916, when the rate until July, 1916. Especially during the was raised to 6 per cent. At the same time early months of 1915 this rate was entirely rates on treasury bills were advanced and the ineffective for the control of domestic credits Bank of England offered 5 per cent to the and it was not until treasury bills were sold clearing banks for their surplus balances. The day to day that the period of abnormal ease latter policy is of importance as it marks a dewas terminated. In August, 1914, the Bank parture from custom, and by this means large of England had been authorized to discount additional funds were obtained for the use of all domestic and foreign bills accepted before the Government. The rate at the Bank of Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

MAT, 1921. FEDERAL RESERVE BULLETIN. 569 England was then lowered to 5J per cent, of gold was not considerable, and in the midcoincident with the placing of the third big dle of 1918, the bank began to accumulate war loan (and the sale of treasury bills was gold, first, from the Cape, later from the jointsuspended), and upon the entry of the United stock banks and the Scottish banks and re- States into the war was again lowered to 5 per cently in small measure from abroad. cent, at which point it remained until Novem- In" spite of the fact that the present gold ber, 1919. During this period every effort was reserve of the bank is over three times as made to keep rates low in order that domestic large as that of July, 1914, the ratio of reserves funds might be raised as cheaply as possible. to liabilities is far less. This is due to the Treasury bills were placed at 4J per cent dur- very great expansion which has occurred in ing part of this period and later at 3\ per cent, the private deposits with the bank. The chart and the rate on bank deposits was lowered to on page 570 shows in some detail the move- 3 per cent. Meanwhile (end of 1917) a pre- ment of "other deposits" and "other securiferential rate had been placed on foreign bal- ties" of the Bank of England since July, 1914, ances deposited with the Bank of England. as well as the fluctuations in " Government In November, 1919, following an increase in securities" and "public deposits." the rate on treasury bills from Z\ to 4£ per "Other deposits" are perhaps the best indicent in the preceding month, the bank rate was cation of the size of the balances carried by raised to 6 per cent and treasury bills to 5^ the joint-stock banks at the Bank of England. per cent. At about the same time the prefer- In normal times an increase in this item indiential rate on foreign balances was removed. cates ease in the money market, but in times This may be said to mark the close of the of crisis it is more apt to mean that the jointperiod of preferential rates to the Govern- stock banks have called in their outside loans ment. Since then bank rate has been raised and thus built up their balances at the Bank once and the treasury bill rate twice, so that of England. The item "other securities" they now stand at 7 per cent and 6J per cent, should move in more or less the same fashion respectively.1 as "other deposits." The regular periodic fluctuations which are to be expected in these items are in the main an increase at the end EFFECT OF WAR FINANCE ON THE BANK OF of each quarter when Government dividends ENGLAND. are disbursed, a decrease during the first three months of the year when Government receipts Discussion up to the present point has been are heaviest, an increase at the end of the for the most part concerned with the operayear and the half-year providing for settletions of the treasury. These operations are, ments at these dates. however, inextricably bound up with the operations of the Bank of England, which in During the war these normal fluctuations turn are closely related to those of the joint- were to some extent concealed by other more stock banks. Since the policy of the treasury potent factors, but as a rule their influence can was, however, the decisive factor in the situa- be traced. In general, also, the two items tion during the war, and in a large measure ("other deposits" and "other securities") continues to be so, there is logic in giving a fluctuate similarly, although the reverse was fairly complete resum6 of treasury activities strikingly the case in March, 1915, and again before approaching those of the bank in January, 1917. The abnormal amount of In ordinary times the direct concern of the "other securities" in 1914 and the first half of Bank of England is the protection of its gold 1915 is accounted for by the fact, already reserve, since this fund serves as a reserve for mentioned, that the Bank of England was the entire English banking system. In 1914 forced to absorb enormous quantities of bills H was not difficult to attract gold from which could not otherwise oe liquidated imabroad, because England was still the creditor mediately following the outbreak of war. At of most of the nations of the world, but in the same time "other deposits" were being' 1915 the problem of protecting the gold re- lowered from the high level of the second ha serve became more and more difficult because of 1914 as the financial strain of the period was of the depreciation in exchange which accom- relieved and ordinary business requirements panied the large purchases of war materials were being met. During the second half of in foreign countries. In the one year the 1915 the abnormal supply of bills was elimi- Bank of England lost £18,000,000 in coin and nated; and, judging from the chart, approxibullion. During 1916 and 1917 the movement mately normal war conditions obtained by the first of 1916. In January, 1917, however, all * On March 11 the rate on treasury bills was lowered to 6 per cent andfinancial arrangements were again set askew by on April 27 to 5f per cent. The discount rate at the Bank of England the floating of a great war loan. Sales of was lowered from 7 to 6§ per cent on April 28. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

570 FEDERAL RESERVE BULLETIN. MAT, 1921. DEPOSITS AND SECURITIES AT BANK OF ENGLAND, ALSO BAFfKAND CURRENCY NOTES, I9I4-J920. IN MILLIONS OF POUNDS. 200 ZOO ISO ISO 100 SO -PUBLIC DEPOSITS GOVERNMENT SECURITIES' aoo \200 /so too so 'OTHER'DEPOSITS 'OTHER" SECURITIES > 400 4 3SO / 300 300 y ZSO 250 ZOO 200 IT /SO ISO r 100 •i • > 100 SO • * so — - 1 —•II1 I*1 o COIN AND BULLION HELP Br BANK OF ENGLAND — 1914 1915 1916 1917 1918 1919 1920 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

MAY, 1921. FEDERAL RESERVE BULLETIN. 571 treasury bills were suspended at that time, lately their Government holdings seem to have thus releasing the funds normally invested been mainly in the form of treasury bills. In there for investment in the war loan and com- the intervening years because of the interest mercial bills. Deposits of the joint-stock paid on deposits the banks were encourged to banks at the Bank of England were greatly place their surplus balances with the Bank of increased but "other securities" were re- England and to give considerable aid to duced.1 Between 1917 and 1919 there were private investors rather than to subscribe no extreme fluctuations in these items, but in themselves to large blocks of Government 1920 the month-to-month changes have been securities. very large, end-of-year and half-year payments The deposit accounts of the joint-stock banks apparently causing more than usual disloca- increased most between 1916 and 1919; the tion. rate of increase during the earlier years of the "Public securities" presumably include the war and in 1920 was far less rapid. bank's holdings of Government bonds, treasury bills, and advances on ways and means, while Five great joint-stock banks. the "public deposits" account, as the name [In thousands of pounds sterling.] implies, is the current account of the treasury. In normal times the latter account may be e b d x y e p p e t o h c s t e i e t d G a c o c t v o o e u r f n n l t u m , c s e t i u n n a t c t e e t h w i e n h y v e e n e r v s f e e u n l n y t d u s t a o l a l r y t e h r d e e i a s p c b r h u i v r t s a h e t e e d End of— h E w B C a n i n a a t g d s h n h l k a a t i h n n o n e d d f . G B s m e o t r i c i v e e t u e s n i r s . r t i n h - - a a C d n c e u d c p o rr o o u e s t n n h i t t t e s , , r . banks and are thus reflected in the private deposit account. During the war, however, 19J4 137, 750 52,544 626,37b 1915 136,049 184,475 686,473 this relationship is not always apparent. The 1916 195,484 198,376 819, 883 increase in "Government securities" held by 1917 183,159 216,606 967, 981 1918 .. 237, 500 236, 042 1,304,811 the bank in 1915 was due apparently to the 1919 285, 481 291, 669 1,548,813 1.920 274,137 261, 732 1,628, 375 placing of treasury bills there. These must have been repaid by the fall of the year and NOTE.—For table showing all items, see FEDERAL RESERVE BULLETIN, since then, it would seem, have not been placed March, 1921, p. 295. there in large blocks. The phenomenal increase in this item in January, 1917, wasINCREASE IN NOTE CIRCULATION DURING AND probably due to temporary borrowing by the SINCE THE WAR. treasury on ways and means. As was the case with "other securities," between that The increase in the note circulation which time and until well into 1919 there were no war conditions demanded was provided for in excessive fluctuations in this item. In the last a unique fashion in England. Instead of in- 18 months, however, the fluctuations have creasing the circulation of bank notes, as was been very great, probably because of temporary done in most countries, a new form of currency borrowing on ways and means. During 1915 was issued by the treasury. These are known the Government had large surplus funds on as currency notes, or more popularly as " Braddeposit at the bank, but since that time the bury's/7 and were authorized by an act of Audeposits have been steadily on the decline and gust, 1914, to provide for the exceptional deat present are not much larger than before the mands occasioned by the outbreak of the war. war. According to the regulations under the act, they were not to exceed in the case of any bank Information regarding the operations of the 20 per cent of its deposit and current accounts. joint-stock banks is too scanty to furnish a As the war progressed and deposits of the jointbasis for a thoroughgoing study of the effect stock banks were rapidly enlarged, the issue of of war finance upon them. It is clear, howcurrency notes likewise increased. According ever, from the semiannual statements issued to the report of the Cunliffe Committee the by them, that their holdings of Government banks originally received the notes as advances securities increased far more rapidly between from the Government on which they paid in- 1914 and 1916 and again in 1919 and 1920 terest, but later they obtained them by transthan in the intervening years. During the ferring portions of their balances at the Bank early years of the war the banks apparently of England to the currency notes account. took large blocks of long-term war bonds, while These balances were then in turn borrowed by the Government and Government securities 1 The London Economist comments on this divergent movement of "other deposits" and "other securities" in the following fashion: substituted for them. "* * * it may be possible to trace in this movement the effect of the Bank of England's borrowing from other bankers, though it was This method was used to provide the necesmore usual in old times for the bank to pledge Government securities sary additional currency in preference to the when it borrowed." Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

572 FEDERAL RESERVE BULLETIN". MAY, 1921. amendment of the bank act of 1844, which issue for the following year. This recommenprovided that notes issued by the Bank of dation was not put into effect as regards the England must be guaranteed pound for pound issue of 1919, but was applied in 1920, the by gold. With the increase in the gold holdings maximum issue of 1919 of £320,600,000 becomof the bank, it has been possible to enlarge tne ing the legal maximum for 1920. During the bank-note issue appreciably, but not at the rate latter year the maximum issue reached at which currency notes have been increased. £317,600,000, which thus became the legal With the close of the war it was generally con- maximum for 1921. ceded that the currency note issue should be At the end of December, 1920, the currency reduced as rapidly as conditions would allow. notes redemption account consisted of £28,- Accordingly, the committee on currency and 500,000 gold, £19,450,000 bank notes, and the the foreign exchanges in its interim report, rest, £356,504,000, Government securities. published toward the end of 1918, recom- During 1920 there ha^ been a uniform policy mended that during the years following the war of transferring bank notes to the currency the maximum fiduciary issue of currency notes notes account when the latter were approachin any year should become the legal maximum ing dangerously close to the legal limit. RECENT ECONOMIC DEVELOPMENTS IN SOUTH AMERICA. It is therefore highly important for these PRICE DECLINES. countries to have a favorable balance of merchandise trade. When the war broke out, South America suffered severely in 1920 from the inflow of foreign capital ceased, and the the decline in the prices of raw materials and South American countries were obliged to from the decreased demand for these materials. adjust their economic life to this new condi- As has been explained in special studies of tion. This adjustment was made easier by the economic and financial conditions in the fact that the demand for their leading prodleading South American countries, each one of ucts after the first shock of war became unprethem is dependent to a large extent on the cedentedly large and prices, except for conee, export of a few commodities to the production were high. It was possible, therefore, for of which the country is particularly well adapted.1 These countries are in the stage of these countries to have large favorable trade balances and to take steps in the direction economic development when they depend of building up more diversified industries and on imports of foreign capital for the expansion more modern systems of taxation. These of domestic industry, and on the excess of developments suffered a severe setback during exports over imports for interest and amortizathe past year. A table inserted at this point tion payments on these foreign investments. shows prices of leading commodities exported from each of the three principal South Amerii For Argentina, see Federal Reserve Bulletin, 1920, pp. 592-600; for can countries in 1919 and 1920: Brazil, pp. 813-824; for Chile, pp. 1052-1061. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

MAY, 1921. FEDERAL RESERVE BULLETIN. 573 WHOLESALE PRICES IN THE UNITED STATES OF PRINCIPAL COMMODITIES PROMINENT IN THE EXPORT TRADE OF ARGENTINA, BRAZIL AND CHILE, 1919-1920.1 Argentina. Brazil. Chile C N C h o i o c . r a n 3 g , , o. N C W w o. h i i h n c 2 e t , a e a g r r t o e , , d . W H i m n s o ~ c a o e o g r l a u , k r s r a O e t e d e t d h r e s , i n . s o , , c B C a e n s s h e t s a e i f , t c , e i a g v r g c o s e , a o o r . d - t h i p C v e H a e h a c i i v k s c d y t a e e e g r s n e s , o r a ' . , s - , N Ri e o C w , o f N f Y e o e o . , rk 7, . R Is u P f l i b a a n b n r e a e d . r , , Nitrates. N C e e i w l l n o e y p g c t Y p i o tr c e t o o , , r - r , k. 1919. Low. High. January $1.3750 $2.3788 $1.1200 $0.2450 $0.2800 $0.1547 $0.5250 $4.425 $4'. 45 $0.2038 February 1.2763 2.3450 1.0909 .2450 .2800 .1544 .4913 4.425 4.45 .1731 March 1.4588 2.3575 1.2000 .2450 .2763 .1602 .4819 4.075 4.45 .1509 April 1.5955 2. 6300 1.0909 2450 .2950 .1695 . 4775 4.075 4.075 .1530 May 1.7613 2. 7800 1.0727 .2430 . 3513 .1931 .4738 4.075 4.075 .1600 June 1. 7563 2.3613 1.1818 .2025 . 4075 .2114 .4744 4.075 4.075 .1756 July 1.9075 2.2580 1.2364 . 2075 .4860 .2303 .4750 2.90 4.075 .2150 August 1.9213 2.2394 1. 2364 .2350 . 5200 . 2150 .4750 2.90 2.90 .2281 September 1.5410 2.2385 1.2182 .2275 .4638 .1663 .4795 2.90 2.90 .2220 October 1.3888 2.2394 1. 2634 .2290 .1650 .4825 2.90 2.90 .2172 November 1.4875 2.2881 1.2545 .2350 . 1697 .4825 2.90 2.90 .2038 December 1.4485 2. 4490 1.2545 .2350 .4100 .1518 .4785 2.90 3.00 .1873 1920. January .4750 2.6338 1.2364 .2320 .4000 .1628 .4625 3.00 3.05 .1931 February .. 4125 2.4900 1.2364 .2125 . 4025 . 1478 .4322 3.40 3.70 .1906 March .5515 2.5000 1.2364 .2050 .3640 . 1500 .4120 3.70 3.85 .1858 April .. 6913 2. 7725 1.2000 .2090 .3613 .1514 .4113 3.85 3.85 .1919 May . 9825 2. 9750 1.1636 .1950 .3538 .1559 . 4038 3.85 3.85 .1906 June .. 8390 2.8950 1.0000 .2225 .3410 .1498 .3850 3.85 3.85 .1900 July .5388 2.8050 .9091 .2550 . 2944 . 1306 . 3534 3.85 3.85 .1900 August .5310 2.4735 .8727 .2550 .2850 .0936 .3030 3.85 3.85 .1900 September 1.2938 2.4919 .8364 .2600 .2840 .0819 .2531 3.65 3.85 .1869 October .8778 2.2047 .7273 .2520 . 2550 .0759 .2169 3.15 3.26 . 1675 November .8003 2.0570 .6909 .2400 .2325 . 0746 .1920 2.90 3.26 . 1455 December .7341 2.0125 .5455 .2220 .1900 .0656 .1800 2.75 3.00 .1369 1921. January .6553 1.9613 . 5455 .1738 .1675 .0669 .1731 2.70 2.85 .128? February .6350 1.9194 . 5455 .1600 .1362 .0672 .1681 2.80 2.85 .1288 March .6180 1.6798 .5273 .1625 . 1150 .0639 .1800 2.60 2.85 .1223 i The figures in the above table for all commodities except nitrates are furnished by the Bureau of Labor Statistics and are average prices for the month. The nitrate figures were furnished by the Chilean Nitrate Commission. For the commodities constituting the bulk FOREIGN TRADE AND FOREIGN EXCHANGE. of Argentina's exports, the following price reductions may be noted. Wheat fell from a Not only did the prices of these articles maximum price of $2,975 per bushel in May, suffer severe drops, but it became difficult to 1920, to $1.6798 in March, 1921; wool from a dispose of many of them at any price. The maximum of $1.2634 per pound in October, purchasing power of European countries, which 1919, to $0.5273 in March, 1921. For Brazil, a had been the principal takers of South Amerisimilar trend of prices may be seen. Coffee can exports, was low, and in many cases goods reached its maximum of $0.2303 in July, 1919, that had formerly gone to the European marand its minimum of $0.0639 in March, 1921. kets were sent to the United States, where a Rubber fell from $0,525 in January, 1919, to large accumulation of raw materials and a con- $0.1681 in February, 1921. In the case of sequent demoralization of the markets oc- Chile, nitrates held a maximum of $4.45 during curred. A table is here introduced showing the first three months of 1919, and a minimum the imports into and exports from Argentina, of $2.60 in March, 1921. Brazil, and Chile for the years 1913 to 1920. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

574 FEDERAL RESERVE BULLETIN. MAY, 1921. TOTAL IMPORTS AND EXPORTS OF ARGENTINA, BRAZIL, AND CHILE FOR THE YEARS 1913-1920. Argentina. Brazil. Chile. Balance of Balance of Balance of Imports. Exports. ex o p v o e r r ts Imports. Exports. ex o p v o e r r ts Imports. Exports. ex o p v o e r r ts imports. imports. imports. In thousand s of gold pesos. In thousands of papermilreis. In thousands of gold pesos. 1913 496,227 519,156 22,929 1,0—07 ,4•9"5- 172,731 - 34,764 329,518 396,310 66,792 1914 322,530 403,132 80,602 561,853 750,980 189,127 269,757 299,675 29,918 1915 305,489 582,179 276,690 582,996 1,022,634 439,633 153,212 327,479 174,267 1916 368,131 573,000 206,869 810, 759 1,136, 888 326,129 222,521 513,585 291,064 1917 380,321 550,170 169,849 837,738 1,192,175 354,437 355,077 712,289 357,212 1918 500,603 S01,466 300,863 989,405 1,137,100 147,695 436,074 799,625 363,551 1919 655,772 030,965 375,193 1,334,258 2,178,719 844,461 401,324 316,977 - 84,347 1920 854,100 006,800 152,700 2,078,046 1,752,247 -325,799 350,000 765,000 415,000 January... 64,600 90,600 26,000 89,338 167,706 78,368 February.. 53,400 96,500 43,100 118,087 145,353 27,266 March 73,200 121,100 47,900 101,671 191,703 90,032 April 73,500 109,700 36,200 114,550 157,615 43,065 May 63,600 99,000 35,400 162,963 146,978 - 15,985 June 72,200 82,100 9,900 141,733 146,468 4,735 July 80,900 100,500 19,600 173,815 121,673 - 52,142 August 77,000 78, 400 1,400 220,408 133,679 - 86,729 September 88,100 56,900 -31,200 223,746 140,173 - 83,573 October... 67,000 63,600 - 3,400 273,497 149,051 -124,446 November. 70,400 48,600 -21,800 227,214 136,515 - 90,699 December. 70,200 59, 800 -10,400 231,024 115,333 -115,691 It will be noted that the favorable balance decrease in Chile's imports, and still more to for Argentina was much smaller in 1920 than the fact that the value of the exports of nitrate in 1919, and that the last four months of 1920 for the entire year 1920 was practically double showed excess imports; for Brazil a substan- that for 1919. Our trade with South and Cential excess of imports for the entire year is tral America is shown by months in the table reported, while in the case of Chile the figures below. It brings out the fact that these counfor the year show a comparatively large favor- tries have all materially increased their imports able balance. This is due partly to the from the United States. UNITED STATES IMPORTS FROM AND EXPORTS TO PRINCIPAL SOUTH AMERICAN COUNTRIES. [In thousands of dollars.] All other coun- Total Central Argentine. Brazil. Chile. tri A es m o e f r S ic o a u . th T A ot m al e S ri o c u a t . h C ca e n n t c ra o l u A nt m ri e e r s i . - a A c n o m d u n e S r t o i r c i u e a t s n h . Im- Ex- Im- Ex- Im- Ex- Im- Ex- Im- Ex- Im- Ex- Im- Exports. ports. ports. ports. ports. ports. ports. ports. ports. ports. ports. ports. ports. ports. 1919. January 8,772 22,253 6,699 11, 798 10,491 5,680 10,057 12,296 36,019 52,027 3,417 4,085 39,436 56,112 February 6,398 11,367 8,059 14,439 5,942 6,817 12, 263 9,861 32,662 42,484 4,416 37,078 47, 473 March 4,448 11, 837 23,198 9,919 12, 518 4,173 14,033 8,051 54,197 33,980 4,498 3,429 58,695 37,409 April 2,163 5,286 17, 598 9,254 4,263 7,972 15, 566 9,437 39, 590 31,949 3,338 4,996 42,928 36,945 May 17,012 5,674 16, 590 12,140 4,714 4,416 12, 868 10,207 51,184 32,437 4,217 4,303 55,401 36, 740 June 19,779 20,430 10,426 8,967 4,542 4,877 17,415 9,522 52,162 43,796 4,413 4,973 56,575 July 12,271 9,907 23,346 7,055 4,388 2,335 16,298 7,562 56,303 26,859 5,681 3,720 61,984 30, 579 August 22, 861 17, 283 23,190 9,995 4,336 4,066 14, 823 10,460 65,210 41,804 3,319 3,835 68,529 45,639 September 38, 479 13, 715 31,676 5,572 7,729 3,166 16,202 9,712 94,086 32,165 2,937 5,663 97,023 37,828 October 23, 773 13, 874 24,172 12,279 5,794 3,449 14, 524 9,685 68,263 39,287 3,093 4,624 71,356 43,911 November 26,189 13,281 30, 708 7,499 10, 549 3,351 14,472 9,928 81,916 34,059 1,627 4,808 83, 543 38, 867 December 17,014 10,993 17,911 5,780 7,202 3,071 13,807 11,308 55,934 31,152 2,194 6,316 58,128 37,468 Total 199,159 155,900 233,571 114,697 82,468 3,373 172,328 118,029 687,526 441,999 43,150 55,741 730,676 497,740 1920. January 21,344 14,008 25,069 10, 583 6,705 2,610 24, 821 12,426 77,939 39,627 4,029 7,310 81,968 46,937 February 15,104 11,612 17, 328 10,462 12,678 3,708 22, 797 14,678 67,907 40,460 4,771 6,809 72,678 47,269 March 19,190 16, 927 22, 778 12, 506 11, 530 4,725 19, 512 19,836 73,010 53,994 7,421 81,901 61,415 April 21, 581 14, 869 28, 857 10,080 7,983 4,832 17, 593 17,282 76,014 47,063 7,891 7,816 83,905 54, 879 May 23,104 17, 094 10,490 13, 545 14, 860 4,240 14,950 23, 341 63,404 58,220 7,310 7,395 70,714 65,615 June 16, 853 13, 587 25, 719 9,683 19,083 4,774 19, 512 18,261 81,167 46,305 7,449 7,504 88,616 53, 809 July 18,502 15,923 23,123 8,741 7, 524 5,235 23,572 14,970 72,721 44,869 8,769 6,403 81,490 51,272 August 16,734 16, 817 22,013 14,520 8,430 3,305 16,124 12,001 63,301 46,643 7,766 6,042 71,067 52,685 September 22, 883 21, 782 15,637 15, 017 9,405 3,878 14, 575 13, 770 62, 500 54,447 3,368 7,237 65,868 61,684 October 14,971 21, 858 14,498 15,144 7,807 4,868 10,093 17, 958 47, 369 59, 828 2,443 6,974 49,812 66,802 November 8,098 26,045 12,673 17,278 6,777 5,808 12, 558 16,155 40,106 65,286 2,442 7,805 42,548 73,091 December 9,454 23,207 9, 539 19,233 7,830 7,363 9,116 17,492 35,939 67,295 1,810 7,775 37, 749 75,070 Total 207,818 213,729 227,724 156,792 120,612 55,346 205,223 198,170 j761,377 624,037 66,939 86,491 828,316 710,528 1921. Jauary 5,730 24, 231 9,713 14,128 8,042 6,885 7,263 16,190 30, 748 61,434 1,667 8,733 32,415 70,167 February 5,316 16,441 9,289 6,240 4,903 4, 552 7,001 11,571 26, 509 38, 804 2,353 6,927 28,862 45,731 March 8,413 12,168 9,463 6,133 3,739 2, 954 11,070 7,368 32,685 28,623 3,679 4,644 36,364 33,267 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

MAT, 1&21. FEDERAL RESERVE BULLETIN. 575 The United States dollar, which in Argentina tine exchange suffered no great decline, but was worth only 1.016 pesos as late as February, when the fund was exhausted the peso began 1920, rose to 1.305 pesos in March, 1921, asto drop very rapidly in New York, and the against 1.0365 par value. (See table below.) dollar rose correspondingly in Buenos Aires. At the beginning of 1920 the Argentine Gov- Thus, during the first five months of 1920, while ernment had with the Federal Reserve Banks a the fund was in use, the dollar rose only from credit of about 79,000,000 pesos, established 1.018 pesos to 1.038 pesos. Between May 31 during the war when the gold embargo pre- and October 31, however, the gold in the fund vented gold exports from the United States, held with the Federal Reserve Banks was used and for a considerable time this credit was used up. Thereupon the dollar rose rapidly to the to pay for Argentina's obligations in the United end of the year, when it stood at 1.305 pesos, States. The method of operation was that the highest point being reached on January 3, Argentine importers who wished to pay for 1921, when it stood at 1.32 pesos. At the goods in New York, deposited gold or its same time, the stock of gold held by the banks equivalent with the conversion office in Buenos in Buenos Aires was reduced from $114,014,000 Aires, and equivalent amounts were released to $46,179,000, while the gold in the Caja de for payment to American creditors in NewConversion increased correspondingly from York. So long as this fund held out, Argen- $399,421,000 to $466,477,000. MONTHLY RANGE OF EXCHANGE RATES ON ENGLAND AND THE UNITED STATES AT BUENOS AIRES, RIO DE JANEIRO AND VALPARAISO. Rio de Janeiro. Valparaiso. England. United States. England. United States. Low. High. Low. High. Low. High. Low. 1920. Chilean pesos for 1 dollar. 1 milreis. Reis for1 dollar. Pence for 1 peso. 1 dollar. January 1.016 3.780 3.637 12Tf 14« 5. 27$ 4.73f February 1.009 3.978 3.909 4.94 4.73 March 1.014 18H 3.915 3.740 4. 941 April 1. 015 3.900 3.790 13* 5.29i May 1. 036 18.00 4.000 3.860 11| 5. 50* 5*. 25* June 1. 039 15& 4.300 4.030 HA 12A 5.56| 4.99f J A S u e u l p y g t u em st ber. 1 1 1 . . . 1 1 0 3 5 5 0 5 2 14 i * 4 5 5 . . . 6 0 7 8 7 2 0 3 5 4 4 5 . . . 6 3 1 1 4 6 0 3 0 l 1 O 1 f .00 1 1 2 2 - A & 5 5 6 . . . 9 4 8 4 8 2 1 4 5 5 . . . 8 6 7 9 3 3 f £ J October... 1.185 6.040 5. 016 111 6.76^- 6.55f November. 1.283 12* 6. 504 5. 829 ion 7.37i 7.12 December 1.245 lift 7.140 6.360 7.53^ 7.12 10A 7.200 6.688 7.44 7.16f 6.780 6.300 7.44$ 6.95| 6.900 6. 386 9.00 7.05f 6.82J 1 Exchange at par, 47.58. 2 Exchange at par, 103.648. The table above shows fluctuations of ex-of this, the currency is subject to violent flucchange rates on England and on the United tuations, which may vary 2 or 3 per cent from States for the three South American countries. day to day and from 5 to 15 per cent in the In Brazil, as a consequence of the unfavor- course of a single month. These fluctuations able trade balance, the dollar rose from a low in value give rise to extensive speculation, of 3.637 milreis in January, 1920, to a high of which in turn tends to aggravate still further 6.9 milreis in March, 1921. In Chile the dollar the exchange situation. The nitrate situation, rose from 4.63| pesos in April, 1920, to 7.53^ which is the principal factor in Chile's foreign pesos in December of the same year. In Chile trade and in the exchange market, looked very the exchange situation is peculiar. There is a bright during the first half of 1920, before the large gold reserve with which to redeem the world-wide depression began. It seemed probnotes in circulation, but the date for thus able that after five years of reduced food proredeeming them has been again and again duction all countries, especially those of Eupostponed.2 Thus they are in theory redeem- rope, would demand large quantities of ferable in gold; in fact, irredeemable. Because tilizer. The nitrate consumption bade fair to equal that of 1913; large quantities were be- 2 For a discussion of this matter see FEDERAL RESERVE BULLETIN, ing sold forward, and the best nitrate author- October, 1920, p. 1053. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

FEDERAL RESERVE MAT, 1921. ities were urging increased production. In Au- CREDITS GRANTED AND RECEIVED. gust, however, came the reaction, due chiefly to the fact that Europe was having ever In order to encourage the export trade greater difficulty in paying for her imports. South American countries removed many of the Also the decrease in the demand for nitrates restrictions on exports which had been imposed in the manufacture of ammunition, together at the time when excessive exports of raw with the development of the production of materials resulted in undue advances in prices ammonia from the air by Germany, contin- in the home markets. Furthermore, several ued, as in 1919, to exert a further depress- of the countries arranged to grant credits to ing influence on the nitrate trade. The nitrate some of the European countries for the purpose market declined rapidly; the price fell below of encouraging exports. Thus Italy was the level at which the Nitrate Association granted a credit of 100,000,000 pesos by found it profitable to sell; production fell off, Argentina, while Belgium was granted a credit resulting in widespread unemployment, and of 25,000,000 milreis by Brazil and one of toward the end of the year the country was 25,000,000 pesos by Chile. All of these credits in a grave financial crisis. were to be utilized for payment of goods pur- Fluctuations in the value of the pound ster- chased in the creditor countries. ling in the South American countries were On the other hand, some of the South Amersimilar to those in the dollar, though owing to ican countries obtained foreign credits for the the depreciation of the pound its rise in terms purpose of improving their exchange position. of South American currency was not so great Brazil, or rather the State of Sao raulo, sucas the rise of the dollar. Other exchange ceeded in floating a £5,000,000 loan, of which quotations reflect the movement of these two £2,000,000 were taken up in New York, leading currencies, the variations being due to £2,000,000 in London, and £1,000,000 in the causes on which South American conditions Netherlands. The London bond issue maexerted but little influence. tures in 30 years, the New York and Amster- A serious phase of the situation was that dam issues in 15 years. The bonds are secured large orders for imports of manufactured goods, by the proceeds of a special surtax on the mostly from the United States, were placed by export of coffee grown or produced in the State South American concerns when times were of Sao Paulo. A $24,000,000 loan to Chile prosperous and before the decline in prices was recently (Feb. 16) floated in New York, occurred. Some of these goods were late in and has had a steadying effect on Chilean exdelivery, because of the insufficient output and change. Argentina had a $50,000,000 loan the scarcity of shipping space, and thus arrived maturing in New York last fall, and not being after the selling price had fallen below the con- able to renew it there on satisfactory terms, tract buying price. There were some far- made arrangements by which England paid sighted merchants who deferred placing their the American loan and received credit for it orders until after the fall in prices and yet on her 100,000,000-peso loan contracted in received their goods as soon as, or even sooner 1918 and due on January 15 of this year. This than, did the merchants who had placed their British loan has since been liquidated. contracts at the higher prices. The latter, realizing that their sales would thus result in REMEDIAL MEASURES. great loss, canceled their orders, refused to receive the goods, or asked for repeated exten- Various methods of remedying the situation sions of time on their payments. As a result by legislative or administrative enactment of this, goods accumulated at all the ports of were undertaken by the South American counentry. In some cases the merchandise was tries. In Argentina the establishment of a piled up on docks, piers, or in sheds, municipal central bank of issue and rediscount has been theaters, and other public buildings. Thus the advocated. No final action, however, has delays in delivery, the fall in prices, the in- been taken up to date. creasingly unfavorable rate of exchange, and The question of releasing from the Argentine the competition of those merchants who con- conversion office the gold which has been imtracted at lower prices created great over- pounded there since the beginning of the war, stocking of goods and financial difficulties. was seriously agitated, the argument being Widespread discussion of moratoria resulted that it would improve the exchange rate and from these conditions, and in some of the that the flow of gold would discontinue as soon smaller countries legal or extralegal moratoria as the exchange rate was rectified, while so were actually declared, although no such action long as the gold embargo continued the peso was taken in Argentina, Brazil, or Chile. was bound to remain at a discount. The Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

MAT, 1921. 611 Argentine authorities, however, were fearful Brazil was established by executive decree, that the exports of gold would result in a com- with authority to rediscount commercial bills plete exhaustion of the gold reserves and a and to issue Government paper money secured consequent more serious depreciation of the by such bills. The main provisions of the currency. Their argument was that, so long decree may be briefly summarized. The new as they were not able to receive cash payment department is to be in charge of a director for their exports to Europe, they would not be nominated by the President of the Republic. able to use European credits for payment of Its operation will be limited to 100,000,000 American obligations and the unfavorable milreis, which can be exceeded only under balance as regards the United States would special conditions by order of the President of result in serious inroads on their gold. Up to the Republic. The department will discount the present time the gold embargo in Argentina bills of exchange and drafts drawn in terms of has been maintained, although recent dis- Brazilian currency, guaranteed by at least two patches indicate that efforts to release commercial banks in good standing. The 100,000,000 gold pesos to stabilize exchange banks with which this department will do are being made. business must be registered with it, and for Ernesto Tornquist, the leading private such registration a minimum paid-in capital of banker of Argentina, whose father was instru- 5,000,000 milreis is required. The period of mental in the establishment of the conversion rediscount will be four months at most; the office and in the stabilization of the peso at 44 paper accepted will be agricultural or live-stock centavos gold, in a recent interview discussed paper. Against this paper the Bank of Brazil the Argentine situation and proposed certain will issue Government notes, strictly limited to remedies. He believes that the financial sys- the amount of the rediscount operations. tem of Argentina, as much as world conditions, Brazil also inaugurated a governmental is responsible for the prevailing business depres- control of foreign exchanges by regulating and sion. He suggests that the Banco de la Nacion supervising all banks and banking houses to shall reduce its interest rate on tim.e deposits, prevent their speculating in exchange. The limit its foreign exchange activities, and reor- Government is also authorized to establish a ganize its discount business somewhat on the special fund in New York and London, of which model of the Federal Reserve System in the it may apply 50,000,000 milreis to buying United States. He further recommends the and selling bills of exchange, both to assist establishment of a central bank of issue and legitimate commerce and to stabilize exchange. rediscount, and the gradual conversion of the In Chile, although the plan for the establish- Banco de la Nacion into an agricultural and ment of a central bank of issue and rediscount live-stock bank to extend long-term loans to continues to be agitated, no definite action has these industries. He would have the Govern- yet been taken. The nitrate producers of the ment extend loans to foreign buyers of national country have strengthened their organization products like wool, hides, meats, and cereals. so that they control about 98 per cent of the He also advises authorizing the withdrawal of industry and are in a position to refuse to sell gold from the Caja de Conversion to a limited at prices below a figure which they consider amount, settled in advance, and its export, this profitable. Practically no sales have taken exported gold to be used for the payment of place in the spring of 1921, and are not exinterest and amortization of the foreign debt pected before June. It is thought, however, and for settling unfavorable merchandise trade that with the wider use of nitrogen for agribalances. As another remedial measure he cultural purposes in America and with the improposes to have the Banco de la Nacion under- provement of the exchange situation in Gertake rediscounting, especially for seasonal many, the nitrate market will improve, as unneeds, such as crop moving or other emergen- der normal exchange conditions tne sale price cies. Unless some such measures are taken, of natural nitrates in Germany would probably he fears that Argentina may lose the commer- be lower than the cost of production of articial gains which she has made during the past ficial nitrates. five years. Tables showing the condition of the Banco de In Brazil a bill for the establishment of a la Nacion, the Banco* do Brazil, and of the bank of issue and rediscount was introduced, Banco de Chile, at the close of the last two and in the meantime a division of the Bank of years, follow. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

5*78 FEDERAL RESERVE MAY, 1921. ASSETS AND LIABILITIES OF THE BANCO DE LA NACION, ASSETS AND LIABILITIES OF THE BANCO DE CHILE ON ARGENTINA, ON DEC. 31, 1919 AND 1920. DEC. 31, 1919, AND 1920. [In thousands of pesos.] [In thousands of pesos.] 1919 1920 1919 1920 ASSETS. re C n u c r y - . Gold. re C n u c r y - . Gold. Due from foreign correspondents 25,286 4,194 Advances in current accounts and on securities. 314,905 312,680 A B B i i c l l c l l s s o u d re n is c t c s e o i f v o u a n r b t c l e e o d l l a e n ct d io r n ediscounted 3 2 6 2 2 1 , , , 1 0 0 3 9 2 9 9 6 49 1 2 1 5 , , , 1 1 2 0 6 4 7 7 1 Cash ASSETS. 32, 521 12,913 48,844 9, 409 D oubtful debts 2,055 2,388 Due from banks and bankers.. 20,490 3,334 11,019 1, 593 Real estate . 25,586 23,213 Short-term bills, foreign 3,000 National bonds, series A 43,296 42,738 Securities owned 9,912 5,581 9,233 5,465 Other Federal securities Real estate. 12, 049 1,200 12,214 Mobilization of conversion fund, law 9479 46,144 45,455 Furniture and furnishings 1,246 Furniture and stationery.. 468 Loans and advances 300,982 32,546 353,398 30,445 Interest earned but not received Treasury certificates 16,580 10,000 Due from the treasury, law 10251 72,000 72,000 Due from agencies 3,293 9,164 *5,"756 Conversion account... 342,970 265,538 Interest and discounts 1,648 126 2,878 Due from branches Other assets , 12,280 18,744 3,725 18, 863 Cash on hand 356 506 461,926 Due, according to the agreement with England Total., 411,287 77, 446 461,721 71, 585 and France 289,496 266,436 LIABILITIES. Total 1,903,508 2,005,551 Deposits in current accounts: Capital.. LIABILITIES. 138,551 144,925 Due I D n to e L m b o a a n n n d d k o s a n a n n d d t i b m an e kers 25 2 3 , , 1 8 7 4 8 0 3 1 1 0 , , 3 3 6 6 9 4 0 0 240 2 , , 5 5 1 3 5 6 32,4 1 6 7 7 0 C C D S M D D u o o i e u o s r n n p e c p b v v o o i l t e e l u s o u i r r i z s s s n t b a s i i t o o t r , s i a n n , o t n i i n m f a c n u c h t o e n c e e f d o r a s e t u , n h s n l d t e a t s w d c u o e n 3 m n 8 e v 7 a a e 1 r n r n s d e io d n b f u u t n d collected — 1,2 3 4 6 4 4 1 4 9 4 8 5 0 3 2 , , , , , , , 1 7 4 1 8 9 6 1 3 5 7 8 5 5 8 5 0 0 2 0 2 1,4 2 1 4 5 6 1 6 7 2 5 8 0 1 5 , , , , , , , 1 4 3 1 0 9 5 4 5 8 2 5 3 2 9 5 2 8 8 3 1 I C S D S D P n u a r a u i t o v v r p e e p f i i r i i n d t l t e t a u o g e s l a s n s t s n p d t d a o d a s n e i c p d d l k o o h s d i s n o s i i s t l s d co er u s nts 3 6 3 5 4 1 0 , , , , , 8 0 1 4 0 1 5 0 1 7 0 3 7 0 1 0 8 8 5,000 1 5 0 3 9 8 0 , , , , 6 0 0 0 1 7 0 0 0 0 7 1 6 2 0 0 9 6 13**3 3 3 9 3 Total . 1,903,508 2,005,551 Other liabilities 50,685 30,632 47,167 25, 576 Total. 411,287 77, 446 461,721 71, 585 ASSETS AND LIABILITIES OF THE BANCO DO BRAZIL ON DEC. 31, 1919 AND 1920. [In thousands of milreis.] 1919 1920 1919 1920 LIABILITIES. Government securities in guaranty of reserve fund. 9,694 Capital paid in 45,000 45,000 Loans in current accounts 123,146 138,375 Surplus 8,865 10,632 Bills discounted 113,779 139,158 Deposits, not interest bearing 23,788 121,553 Bills receivable 96,550 281,371 Deposits, interest bearing 119,222 127,146 Foreign and domestic credits 86,701 Deposits, time 17,922 36,156 Due from agents in Brazil and in Europe 125,446 155,608 Current accounts 1,519 Bank stock 10,490 11,888 Due to agents in Brazil and in Europ 38,420 21,114 Other stock 2,704 10,346 Bills payable, interest bearing 18,115 Stock in liquidation 5,463 2,505 Government deposits, judicial 1,513 3, 843 Various accounts 182,526 223,129 Government exchange account 8,889 Cash in vault 69,152 106,526 Dividends payable. 796 850 Bank buildings and furnishings 2,307 2,872 Dividends, undivided 2,250 2,250 Various accounts 523,823 686,121 Total. 826,530 1,081,472 Pension fund 8,427 9,627 Profit and loss 7,980 8,291 Total.. 826,530 1,081,472 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

MAY, 1921. FEDERAL RESERVE BULLETIN. 579 PRICE MOVEMENT AND VOLUME OF TRADE. WHOLESALE PRICES IN THE UNITED ber, reference may be made to the STATES. RESERVE BULLETIN for May, 1920, pages 499- 503. The commodities included in the different Wholesale prices declined 3 per cent in March groups are listed there with exact specificaas compared with 6 per cent in February and 9 tions and markets indicated. The "weights77 per cent in December, according to the index assigned to the different commodities in connumbers compiled by the Federal Reserve structing the index numbers are also given Board and the Bureau of Labor Statistics. in detail. Although both indexes agree as to the monthly The index of "goods produced" consists of rate of decline, they differ somewhat as to the average prices of 72 commodities (30 raw mapresent level of prices as compared with the terials, 24 producers' and 18 consumers7 prewar level. According to the compilation of goods). These include agricultural products the Federal Reserve Board (based upon 88 (such as grains, live stock, and textiles), mincommodities), wholesale prices in March were erals, and lumber, among the raw materials; 50 per cent above the prewar level, while ac- yarns, leather, semifinished steel products, cording to that of the Bureau of Labor Statis- refined oils, chemicals, building materials, tics (based upon approximately 325 commodi- etc., among the producers' goods; and vegeties) they were 62 per cent higher. In other tables, meats, flour, dairy products, cotton words, the value of the dollar at wholesale and woolen cloth, boots and shoes, and keromight be estimated at 67 cents according to the sene among the consumers' goods. Federal Reserve Board index and at 62 cents ac- The index of "goods imported" consists of cording to that of the Bureau of Labor Statistics. the prices of 18 commodities (9 raw materials, The more rapid decline in the prices of raw 7 producers' and 2 consumers' goods). It inmaterials than of manufactured goods, which cludes Egyptian cotton, Australian and South has been characteristic of the price situation in American raw wool, Japanese and Chinese recent months, is clearly indicated by the change silk, South American hides, Straits tin, and in the Federal Reserve Board index numbers Canadian lumber among the raw materials; for raw materials and producers' and consum- plantation and Para rubber, Chilean nitrate, ers' goods. The two latter groups consist of cane sugar, burlap, sisal, etc., among producers' commodities in a manufactured or semimanu- goods; and tea and coffee for consumers' factured condition, while the first one consists goods. exclusively of raw materials. In January the Leading American exports are included in index of raw materials stood at 164, in March at the index of prices of goods exported, which is 146, a drop of 11 per cent. The index of con- made up of 39 commodity prices (17 raw matesumers' goods, on the other hand, has declined rials, 12 producers', and 10 consumers' goods). only 5 per cent during the same period and pro- Grains, tobacco, cotton, copper, coal, pig iron, ducers' goods 8 per cent. The reclassification petroleum, and lumber make up the fist of raw of the index number of the Bureau of Labor materials; vegetable oils, leather, semifinished Statistics to show the relative fluctuations in metal products, refined oils, and chemicals raw materials and manufactured goods gives the producers' goods; and wheat flour, resimilar results, showing a decline in the prices fined sugar, pork products, coffee, cotton of raw materials between January and March of cloth, boots and shoes and kerosene the con- 10 per cent; in producers' and consumers' goods sumers' goods. 8 per cent. The index numbers of "raw materials," The unusual stability which was noted last "producers' goods" and "consumers' goods" month in the prices of goods imported con- consist of the commodities mentioned above tinued in March. This index number is which fall into these classes, whether they are nearer the prewar level than any other com- of domestic or foreign origin. The raw maputed by the Board, showing a 54 per cent fall terials group includes 39 commodities, the from the peak of last May and now standing producers' goods 29 commodities, and conat 114 as compared with 100 in 1913. Prices of sumers' goods 20 commodities. exports continued to decline in March, the index The "all commodities" index is obtained by shifting from 135 in February to 125 in March. combining the group indexes of domestic and For detailed information regarding the make- foreign goods. It consists of 88 different comup of the Federal Reserve Board index num- modities. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

580 FEDEKAL EESEKVE BULLETIN. MAY, 1921. INDEX NUMBERS OF WHOLESALE PRICES IN UNITED STATES—CONSTRUCTED BY THE FEDERAL RESERVE BOARD FOR THE PURPOSE OF INTERNATIONAL COMPARISON. Average price for 1913=100.1 Goods Goods Goods Goods Raw Producers' Consumers' All com- Date. produced. imported. exported. consumed. materials. goods. goods. modities. 1913. Average for the year 100 100 100 100 100 100 100 100 1919. Average for the year 209 174 214 206 209 198 207 206 1920. Average for the year . . . 236 191 227 234 235 237 229 233 M M Ap a a r y r i c l h.. 2 2 2 6 6 5 6 5 0 2 2 2 4 4 1 2 6 8 2 2 2 6 6 5 4 2 6 2 2 2 4 6 6 7 3 4 2 2 2 4 6 6 6 3 3 2 2 2 6 7 7 3 4 4 2 2 6 1 1 1 2 2 2 6 4 6 4 8 3 June... . . 260 226 256 257 258 265 255 258 Julv 253 208 248 249 249 251 250 250 August 238 182 234 237 235 2?9 234 September 231 164 227 233 225 218 226 October 213 142 211 211 209 203 208 November . . . 195 127 163 193 192 190 187 190 December 178 112 146 176 176 171 171 173 1921. January.. 166 114 142 165 164 166 159 163 February 156 113 135 155 152 158 152 154 March..". 152 114 125 145 146 153 151 150 INDEX NUMBERS OF WHOLESALE PRICES IN THE UNITED STATES, I9IH92I AVERA6E PRICE LEVEL OF 1913 =-IOO 300 280 260 240 ••* 220 200 180 160 140 120 100 SO 60 40 20 O YLUJ > J 6 X %\ 1919 .BEF .RAM 111Commodities. Goods imported (hods exported. \ / * \^ \ \ V \ V\ 11 X .TPES \ \ \ "*• \ X. • 1920 .BEF ENUJ X .TPES ***** \ i 1921 .TCO I / 1919 .BEF onsam.ersf6ood& /T*SO .RPA V \ \ \ i § | % X 1920 .NAJ i i ocia:1 8 X .VON\ 300 280 260 240 220 200 180 160 140 120 100 80 60 40 20 O 1921 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

MAT, 1921. FEDERAL RESERVE BULLETIN. 581 INDEX NUMBERS OF WHOLESALE PRICES IN THE UNITED STATES FOR PRINCIPAL CLASSES OF COMMODITIES- BUREAU OF LABOR STATISTICS. [Average price for 1913=100.] Raw materials. All commodities. Year and month. pr A o tu d g r u r a i c c l t u s l . - p A ro n d i u m c a ts l . pr F o o d r u e c s t t s. p M ro i d n u e c ra ts l . m To a t t a e l r i r a a l w s. Pr g o o d o u d c s e . rs' Co g n o s o u d m s e . rs' ti n ( L s B t u a i m c u b s r o b e i r n a e S r u d ) t e . a o x - f 1913. Average for the year 100 100 100 100 100 100 100 100 1920. March 288 200 348 197 247 246 263 253 April 304 196 367 224 260 263 280 265 May 314 179 367 234 260 271 285 272 June 301 186 363 245 261 262 279 269 July 287 184 359 256 258 251 272 262 August 259 181 351 265 251 238 250 250 September 232 186 344 277 248 224 240 242 October 191 172 339 272 230 209 224 225 November 170 159 289 246 205 193 214 207 December 155 132 278 224 186 175 196 189 1921. January. 155 119 245 220 175 169 182 17.8 February. 145 114 227 207 165 161 171 167 March 136 116 213 197 158 155 168 162 In order to give a more concrete illustration table have been obtained from the records of of actual price movements, there are also the United States Bureau of Labor Statistics, presented in the following table monthly actual except in the case of bituminous coal, prices and relative figures for certain commodities of for which have been obtained from the Coal a basic character. The prices shown in the Age. AVERAGE MONTHLY WHOLESALE PRICES OF COMMODITIES. [Average price for 1913= 100.] Corn, No. 3, Cotton, middlings n W ort h h e e a r t n , N sp o r . i n 1 g , , W re h d e a w t, in N t o er . , 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 iv er e s, Chicago. New Orleans. Minneapolis. Chicago. Chicago. steers, Chicago. 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 100 tive price per tive bushel. price. pound. price. bushel. price. bushel. price. pounds. price. pound. price. 1913 $0.6155 100 $0.1270 100 $0.8735 100 $0.9863 100 $8.5072 100 $0.1839 100 1919 1.5800 257 .3185 251 2.5660 294 2.5370 239 17.4957 206 .3931 214 1920 March 1.5515 252 .4060 320 2.7550 315 2.5000 253 14.4000 169 .3640 198 April 1.6913 275 . 4144 326 3.0063 344 2.7725 281 13.9063 163 .3613 196 May 1.9825 322 .4038 318 3.0750 352 2.9750 302 12.6000 148 .3538 192 June 1.8390 299 .4030 317 2.9000 332 2.8950 294 15.0313 177 .3410 185 July 1.5388 250 .3950 311 2. 8313 324 2.8050 284 15.3813 181 .2944 160 August 1.5310 249 .3380 266 2. 5500 292 2.4735 251 15.3500 180 .2850 155 September 1.2938 210 .2706 213 2.4903 285 2.4919 253 15.2500 179 .2840 154 October .8778 143 .2088 164 2.1063 241 2.2047 224 14.6875 173 .2550 139 November .8003 130 .1780 140 1.7528 201 2,0570 209 14.5750 171 .2325 126 December .7341 119 .1444 114 1.6809 192 2.0125 204 12.0938 142 .1900 103 1921 January . 6553 106 .1450 114 1.7884 205 1.9613 199 9.8400 116 .1675 91 February .6350 103 .1322 104 1.6713 191 1.9194 195 9.3125 109 .1363 74 March .6180 100 .1105 87 1.6135 185 1.6798 170 9.5625 112 .1150 63 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

582 FEDERAL RESERVE BULLETIN. MAY, 1921. AVERAGE MONTHLY WHOLESALE PRICES OF COMMODITIES-Continued. [Average price for 1913=100.] Coal, bituminous,Coal, bituminous, H C o h g i s c , a l g ig o. ht, g W ra o d o e l, s , O s h c i o o u , r i e - d f . 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 . , ru s n p P o o i f t t m t a sb t in u m e r , g i f n h . e o . s . , b. Po sp c C o ah t o o l a u n t m t m a b s i , u n f s e . . o s, .b. Year and month. p A p r o v ic u 1 e e 0 n r 0 a p d g e s e . r p R t r i e i v c l e a e - . p A p r v i o c e u e r n a p d g e . e r p R t r i e i v c l e a e - . p A M r v ic e f e r e a p e g e t. e r p R t r i e i v c l e a e - . p A M r v ic e e f r e a p e g e t. e r p R t r i e i v c l e a e - . p A r s v i t h c o e e o r n a r p . t g e e r p R t r i e i v c l e a e - . p A r s i v t c h o e e o n r a r . p g t e e r p R t r i e i v c l e a e - . 1913.. $8.4541 100 $0.4710 100 $24.2273 100 $44.5909 100 $1.3200 100 i $1.5710 100 1919.. 18.3260 217 1.1894 248 39.7500 164 78.8333 177 1920. March 15.5000 183 1.2364 263 57.0000 235 139.0000 312 2.3500 178 2.3500 150 April 15.7125 186 1.2000 255 57.0000 235 160.0000 359 3.5900 272 4.0700 259 May 14.7550 175 1.1636 247 57.0000 235 160.0000 359 4.4200 335 6.4700 412 June 15.3500 182 1. 0000 212 57.0000 235 160.0000 359 8.6700 657 7.0000 446 July 15.8875 188 .9091 193 57.0000 235 160.0000 359 10.0000 758 7.9000 503 August 15.7350 186 . 8727 185 57.0000 235 157.0000 352 10.6300 805 8.6300 549 September. 17.0688 202 .8364 178 57.0000 235 157.0000 352 10. 4700 793 8.6600 551 October 14.7875 175 .7273 154 57.0000 235 152.0000 341 8. 7500 663 8.3100 529 November.. 12.1400 144 .6909 147 57.0000 235 124. 5000 279 5.1900 393 7.3800 470 December.. 9.6625 114 .5455 116 57.0000 235 124. 5000 279 3-7500 284 5.2000 331 1921 January.. 9.6700 114 .5455 116 48.0000 198 110.0000 247 2. 5300 192 4. 2500 271 February. 9. 7063 115 .5455 116 48.0000 198 95.0000 213 2.4200 183 3. 7300 237 March 10,3063 122 .5273 112 48.0000 198 95.0000 213 2.2900 173 3.4000 210 s C to o v a e l, , a N n e t w hr a Y c o it r e k , , Coke, Connells- C e o l p e p c e tr r o , l i y n t g ic o , t, de L s e i a lv d e , r p iz ig e , d, Pe P t e r n o n le s u y m lv , a c n r i u a d , e, Pig iron, basic. tidewater. 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. 1913 $5. 0613 100 $2.4396 100 §0.1573 100 $0.0440 100 $2.4500 100 $14.7058 100 1919 8.1639 161 4.7375 194 .1911 122 .0578 131 4.1346 169 27.6971 188 1920. March 8.4109 166 6.0000 246 . 1858 118 .0923 210 6.1000 249 41.6000 283 April 8.4368 167 10.5000 430 .1919 122 .0896 204 6.1000 249 42. 5000 289 May , 8. 9964 178 12.0000 492 .1906 121 .0856 195 6.1000 249 43.2500 294 June 9.3672 185 14.3000 586 .1900 121 .0848 193 6.1000 249 44.0000 299 July 9.4580 187 14. 3750 589 .1900 121 .0860 195 6.1000 249 45.7500 311 August 9.6087 190 15. 5500 637 .1900 121 .0898 204 6.1000 249 48.1000 327 September 10.4363 206 15.3125 628 .1869 119 .0816 185 6.1000 249 48.5000 330 October 10.4732 207 14.3125 587 . 1675 106 .0731 166 6.1000 249 43.7500 298 November 10.5417 208 8. 8500 363 .1455 92 . 0628 143 6.1000 249 36. 5000 248 December 10. 5479 208 6. 2375 256 .1369 87 .0478 109 6.1000 249 33. 0000 224 1921. January 10.6373 210 5. 5313 227 .1288 .0497 113 5.7750 236 30. 0000 204 February 10.6382 210 5.1875 213 .1288 .0468 106 4.1875 171 27.5000 187 March 10.6382 210 5.0000 205 .1223 .0405 92 3.0000 122 24.2000 165 1 On Toledo market, average for last six months of 1913. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

MAY, 1921. FEDERAL RESERVE BULLETIN. 583 AVERAGE MONTHLY WHOLESALE PRICES OF COMMODITIES—Continued. [Average prices of 1913=100.] n C or o t t h to e 1 n 0 rn / 1 y . c a o r n n e s s , , h L em ea lo th 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 e b u m il r l g e e r h t , s . , S ta te n b e k u l , r p P g l h i a t t . t e s s - , o P S p i e t t e t n s e b h l u r e a r a i g r l t s h h , . , 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 I Rela- Average Rela- ; price per tive price per tive price per tive price per tive price per tive price per tive j pound. price. pound. price. long ton. price. pound. price. long ton. price. pound. price. 1913 SO.2213 100 j $0. 2821 100 $25. 7892 100 $0.0148 100 $30.0000 100 $0. 7767 100 1919 .5340 241 ! .5283 187 40.5385 157 .0271 183 49.2642 164 1.6274 210 1920 March . 7549 341 .5700 202 60. 0000 233 .0365 247 54. 5000 182 2. 2000 283 April .7784 352 . 5700 202 60.0000 233 . 0375 253 54. 5000 182 2. 2000 283 May .7672 347 .5700 202 60.0000 233 . 0375 253 54. 5000 182 2.0000 258 June .7299 330 .5700 202 60.0000 233 . 0355 240 51. 5000 182 2.0000 258 July . 7009 317 .5700 202 62.5000 242 .0338 228 54. 5000 182 1.7500 225 August .6310 285 . 5500 195 61. 0000 237 .0325 220 54. 5000 182 1. 7500 225 September .5429 245 .5100 181 58. 7500 228 .0325 220 54.5000 182 1.6000 206 October .4343 196 .4900 174 55. 0000 213 .0309 209 54. 5000 182 1.5000 193 November .3695 167 .4700 167 49. 7000 193 .0281 190 54. 5000 182 1.3000 167 December .3108 140 .4100 145 43. 5000 169 .0265 179 50. 5000 168 1.1000 142 1921 January .2878 130 . 4000 142 43.5000 169 .0265 179 47.0000 157 1.1500 148 February .2775 125 .3800 135 42. 2500 164 .0233 157 47. 0000 157 1.1500 148 March . 2447 111 .3700 131 38.4000 149 .0204 138 47. 0000 157 1. 2000 155 Flour, wheat, st B e g e e o e r o s f d , , c C n a a h r t i c i c a v a s e g s o , . Coffee, Rio, No. 7. I j s t ( a 1 n 9 d 1 a w 8 r , a d s r t p ) a , a n t d e a n r t d s Ham C s h , i c s a m go o . ked, Ill 1 u N 5 m 0 e ° w i n f i a Y r t e i o n t r e g k s o . t, il, g N r e a S w n u u g Y l a a o r te , rk d . , | 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. 1913. $0.1295 100 $0.1113 100 $4. 5837 100 $0.1662 100 1.1233 100 $0.0427 1919. .2333 180 .1785 160 11.9982 262 .3433 207 .2004 163 .0894 1920. March . 2050 158 .1500 135 13.1650 287 .3155 190 .2500 203 .1372 321 April .2090 161 . 1514 136 14.2813 312 .3313 199 .2600 211 .1919 449 May .1950 151 .1559 140 15. 0313 328 .3556 214 .2600 211 .2247 526 June .2225 172 .1498 135 14.1600 309 .3650 220 .2600 211 .2120 497 July . 2550 197 .1306 117 13.6688 298 .3769 227 .2600 211 .1910 447 August . 2550 197 .0936 84 12.2350 267 .3725 224 .2600 211 .1490 349 September. .2600 201 .0819 74 12.5938 275 .3634 219 .2750 223 .1426 344 October .2520 195 .0759 68 11.2063 244 .3575 215 .2900 235 .1078 252 November.. .2400 185 . 0746 67 9.2950 203 .3065 184 .2900 235 .0962 225 December.. .2220 171 .0656 59 8. 9438 195 .2575 155 .2900 235 .0809 189 1921. January.. .1738 134 .0669 60 9.6250 210 . 2488 150 .2900 235 i . 0757 177 February- .1600 124 . 0672 60 9.1813 200 .2600 156 .2750 223 l .0709 166 March .1625 125 . 0639 57 8. 7300 190 .2725 164 . 2625 213 ! .0784 184 FOREIGN TRADE INDEX. There is presented below a series of indexes used was given in the July, 1920, BULLETIN. designed to reflect movements in foreign trade A classification of the 11 additional commodiof the United States, with fluctuations due to ties of imports was given in the October, 1920, price changes eliminated. The commodities BULLETIN. chosen for these indexes are those for which Total exports continued their decline during prices are compiled by the Federal Reserve March, while imports again showed a consider- Board in the preparation of its international able increase. The decline in exports took price index. The list includes 25 of the most place in both raw materials and producers7 important imports, the value of which in 1913 goods, but there was a slight increase in the formed 47.7 per cent of the total import exports of consumers' goods. The decrease values, and 29 of the most important exports, in the exports of raw materials was most the value of which in 1913 formed 56.3 per noticeable in the case of wheat, cotton, and cent of the total export values. The classi- refined copper, while in the case of producers' fication of the original list of commodities goods a decline was noted in the export of Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

584 FEDERAL RESERVE BULLETIN. MAY, 1921. every commodity. The most noticeable in- in the case of wool, and in producers' goods it crease in the exports of consumers' goods was was most noticeable in the case of cane sugar in the case of wheat flour. There was a con- and India rubber, while in consumers' goods siderable increase in every class of imports. there was a considerable increase in imports of The outstanding increase in raw materials was every commodity. 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. R (1 a 2 w c t o m ie m s a ) m t . e o ri d a i l - s go P m o r d o o s d d ( i u 1 t c i 0 e e s c r ) o s . m ' - g C o m o o d o n s d s u i ( t m 7 ie c e s o r ) s . m ' - To m ta o l d ( i 2 t 9 ie c s o ). m- R (1 a 0 w c t o m ie m s a ) m t . e o ri d a i l - s go P m o r d o o s d d ( i u 1 t c 2 ie e c s r ) o s . m ' - g C o m o o d o n s d s u i ( t m 3 ie c e s o r ) s . m ' - To m ta o l d ( i 2 t 5 ie c s o ). m- 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 83.5 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 60,904 121.0 31,929 86.2 21,446 162.9 114,279 113. 7 Year..1,027,789 100.0 139,191 100.0 365,269 100.0 1,532,249 100.0 604,261 100.0 444,278 100.0 158,021 100.0 1,206,560 100.0 1919. January 84,066 98.2 18,444 159.0 56,748 186.4 159,258 124.7 44,552 88.5 53,071 143. 3 14,434 108.1 112,057 111.4 February... 58,488 68.3 14,598 125.9 53,338 175.2 126,424 99.0 47,774 94.9 66,708 180.2 14,230 109.6 128,712 128.0 March 57,659 67.3 16,161 139.3 61,585 202.3 135,405 106.1 54,947 109.2 82,546 223.0 25,223 191.6 162,716 161.8 April....... 65,112 76.0 19,356 166.9 80,639 264.9 165,107 129.3 63,385 125.9 88,017 237.7 18,869 143.3 170,271 169.3 May 67,595 78.9 15,972 137.7 58,731 192.9 142,298 111.4 81,274 161.4 89,890 242. 8 24,881 188.8 196,025 195.0 June 98,335 114.8 28,618 247.1 96,088 315.1 223,041 174.7 85,256 171.4 61,888 167.2 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 20,953 159.1 148,656 147.8 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 20,385 154.8 194,236 193.2 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 21,254 161.4 199,142 198.1 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 21,521 163.4 173,372 172.4 Year.. 914,165 88.9 215,357 154.7 688,362 188.5 1,817,884 118.6 951,495 157.5 857,504 193.0 254,975 I 161.42,063,974 171.1 1920. January 93,142 108.7 15,647 134.9 35,377 116.2 144,166 112.9 103,782 206.1 90,633 244. 8 24,062 182.7 218,477 217.3 February... 70,150 81.9 14,201 122.4 41,645 136.8 125,996 98.7 87,210 173.2 107,162 289.5 19,936 151.4 214,308 213.1 March 90,779 106.0 17,259 148.8 56,612 186.0 164,513 128.9 97,011 192.7 125,496 339.0 25,999 197.4 248,506 247.2 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 21,463 163.0 192,387 191.8 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 24,562 188.5 179,414 178.1 August 67,225 78.5 15,708 135.4 28,594 94.0 111,527 87.3 61,321 121.8 94,856 256.2 22,624 171.8 178,811 177.6 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 1,29,777 129.0 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 17,613 133.8 111,162 110.0 November.. 95,148 111.1 14,123 121.8 33,996 111.7 143,267 112.2 43,436 85.3 61,590 166.4 14,610 111.0 119,636 119.0 December.. 104,828 122.4 21,577 188.0 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.. 947,501 92.2 198,457 142.6 503,802 137.9 1,649,760 107.7 816,909 135.2 1,009,762 227.3 245,459 155.3 2,072,130 171.7 1921. January 90,063 105.2 21,797 187.9 38,356 126.0 150,216 117.6 37,523 74.5 48,442 130.8 19,288 146. 5 105,253 104.7 February... 77,922 91.0 16,349 141.0 35,433 116.4 129,704 101.6 59,514 118.2 53,111 143.5 21,179 160.8 133,804 133.1 March 65,680 177.4 12,111 104.4 37,243 122.4 116,126 91.1 80,926 160.7 65,698 177.5 27,560 209.3 174,166 173. 2 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

MAY, 1921. FEDERAL RESERVE BULLETIN. 585 PHYSICAL VOLUME OF TRADE. In continuation of tables in the April, 1921, as during March a year ago. Stocker and FEDERAL RESERVE BULLETIN there are pre- feeder shipments from 34 markets showed a sented in the following tables certain data very large seasonal gain over February, but relative to the physical volume of trade. The were still smaller than shipments during January, 1919, issue contains a description of March, 1920. The number of animals slaughthe methods employed in the compilation of tered under Federal inspection during March the data and the construction of the accom- reflected the seasonal decrease and was conpanying index numbers. Additional material siderably lower than during March, 1920. will be presented from time to time as reliable Receipts of grain and flour at 17 interior figures are obtained. centers during March were in larger volume The textile industry has continued its re- than either last month or the same month a covery and has shown the usual seasonal pro- year ago. Stocks of grain at 11 interior centers ductive activity. Cotton consumption during at the close of March were much larger than in March increased slightly, but was considerably February, 1921, or March a year ago. Wheat lower than the consumption during March, flour production during March showed a marked 1920. However, the number of cotton spin- increase over February and was somewhat dles active during the month decreased slightly larger then during March, 1920. Cotton sight from last month. The percentage of idle wool receipts continued their seasonal decrease, and machinery during the month of March to the the American spinners' takings decreased to total reported continued to decline. The im- about one-half of last month's takings. ports of raw silk, after a very large increase last Receipts and shipments of lumber at Chimonth, decreased slightly during March. cago and St. Louis during April showed a The production of bituminous coal during slight decrease from the March figure, but March continued its decline and was consid- were still considerably larger than receipts erably less than the production during March, and shipments during April, 1920. The pro- 1920.* The production of anthracite coal also duction of lumber during March has shown a continued to show a downward trend, being considerable revival in each of the five assoslightly less than last month and somewhat ciations, namely, southern pine, western pine, less than the same month a year ago. March Douglas fir, eastern white pine, and North crude petroleum production showed a consid- Carolina pine. The production increased conerable increase over the production of last siderably over February, but was still conmonth, as well as over the production for siderably less than the production during March, 1920. Pig-iron production during April March, 1920. Receipts and meltings of raw made another record drop, reaching almost the sugar at the North Atlantic ports showed a low production of June, 1908. The average considerable increase over February, but in daily production during April was 39,768 tons, both cases were smaller than during March, as compared with 91,327 tons during April, 1920. The raw stocks at the close of March 1920, and 51,468 tons during March, 1921. at these ports decreased from the February Steel-ingot production likewise showed another figure, and were practically the same as raw considerable drop, being considerably below the stocks at .the close of March, 1920. Caliproduction of last month and the same month a fornia shipments of citrus fruits during March year ago. The unfilled orders of the United increased both when compared with last States Steel Corporation at the close of April also month and the same month a year ago. continued to decline, reaching a new low point. Shipments of deciduous fruits were the same Receipts of live stock at 15 western markets as last month and considerably smaller than showed a further decrease during March and during March, 1920. were still below the figure for March, 1920. Tonnage of vessels cleared during March was There was an increase over the previous larger than in February, or in March a year month in the receipts of cattle and calves and ago. The January railway net ton mileage sheep, but a large drop occurred in the case dropped to a very low figure, and was the of hogs. Total shipments increased slightly smallest figure since April, 1920, at which over February, but were practically the same time the railroad outlaw strike occurred. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

586 FEDERAL RESERVE BULLETIN. MAY, 1921. MOVEMENT Of COAL AND PETROLEUM AGRICULTURAL PRODUCTS 1919-1921 1919-/92/ •» JCive StodC Receipts - —— — Jinthractte CbalJrvduction, • Orturv and, Mxzrjfteceipts — ——— JSiCurninous GxdSrcdjuuctiori——— •—Cotton Sight Receipts Crud6$ktroUum,$vdux£0Ti, INDEX NUMBERS. AVERA6E 1311-1913=100. J WE/A'UMBERS. AVERA6E 1911-1613*100 J 200 i—; * i 200 1 180 ISO ..... ... 160 160 V" r 140 M MO i— / |\ 120 M 120 V too \* a \\ ... 100 \ ( — if 80 \ 80 \s 60 if 60 4o 40 1 i 20 20 — i 0 0 1919 1920 1921 IRONANDSTEEL TEXTILES 1919 -1921 1913-1921. MgIrowSroduction Cotton Consumption, — Steel IngotJfrodttctiow•- Wool Consumption/ UTvfUMOrderSjUSSbetiLGrpcJtrfiori INDEX NUMBERS. AYERA6Z1911-1913 =100. MILLIONS OF POUNDS 300 Q/Y) \ 1 200 /f 200 L * 260 260 180 180 240 ii ^ i | 240 \ \ • 160 160 \\ i \ \ j 200 200 140 V A 140 \ J i / r- \ 180 \ \ ISO 120 \ \ 120 160 \ 160 1J ~\ \ 100 M V \ 100 140 140 • _l 120 120 80 \ 80 • 100 100 60 60 80 j 80 V- 40 40 60 60 40 / 40 20 20 •*\ 20 FO 0 0 0 0 1919 1920 1921 1919 1920 1921 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

MAY, 1921. FEDERAL RESERVE BULLETIN. 587 LIVE-STOCK MOVEMENTS. [Bureau of Markets?.] Receipts. Shipments. C c m a a l t a v t r l e k e s e , a t 5 s n . 9 d m Ho ar g k s e , t 5 s 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 , t a 4 s n . 3 d T k o i t n al d , s a . ll C c m a a l t a v t r l e k e s e , a t 5 s n . 4 d m Ho ar g k s e , t 5 s 4 . S m h a e r e k p e , t 5 s 4 . H m m o u r a s l r e e k s s e , t a 4 s n . 3 d T k o i t n al d , s a . ll 1920. Head. Head. Head. Head. Head. Head. Head. Head. Head. Head. Marc1! 1,643,816 3,903,804 1,254,951 82,584 6,885,155 571,123 1,399,485 483,550 87,896 2,542,054 T'llv 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 2,135,589 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 4,1S6,261 1,546,876 16,118 7,132,250 647,801 1,516,893 704,780 17,030 2,886,484 1921. January 1,629,994 4,654,560 1,769,155 34,712 8,088,421 602,320 1,637,902 681,987 34,572 2,956,781 February 1,174,611 3,951,971 1,501,902 41,212 6,669,696 456,471 1,346,092 590,487 40,611 2,433,661 March 1,548,061 3,338,483 1,731,653 41,951 6,660,148 587,898 1,229,105 688,072 42,602 2,547,977 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. Monthly average, 1911-1913=100.] RECEIPTS. Cattle and calves. Sheep. Horses and mules. Total, all kinds. Head. Relative. Head. Head. Relative. Head. Relative. Head. Relative. 1920. March 1,195,622 119 2,852,171 130 899,760 66 56,880 124 5,004,433 108 July 1,188.019 118 2,115,639 96 1,301,458 95 26,257 57 4,631,373 100 August 1,459" 565 145 1.818,245 83 1,688,719 124 55,371 120 5,021,900 109 Pep timber. 1,736,009 172 1,597 622 73 1,893,312 139 38,950 85 5,265,893 114 October 1,628,564 162 1,836,748 84 1,865,330 136 24,716 54 5,355,358 116 November.. 1,781,261 177 2,624,185 119 1,542,477 113 12,149 26 5,960,072 129 December.. 984,309 2,932,052 133 .942,858 20 4,868,509 105 1921. January 1,191,^14 118 3 339,419 152 1,112,024 24,158 5,667,415 123 February 835,686 89 2,902,107 141 972,647 27,111 4,737,551 110 March 1,119,548 111 2,390,480 109 1,161,549 28,437 4,700,014 102 SHIPAIENTS. 1920. March 418,310 103 923; 526 191 298,878 59 61,625 150 1,702,339 119 July 508,199 125 737,923 152 644,557 128 27,728 1,918,407 134 August 640.205 157 627,670 130 899,342 179 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 1Q9 784,468 162 952,159 189 12,782 *,1 2,559,693 173 December... 472,748 116 943,515 195 384,646 76 10,201 25 1,811,110 126 1921. January 426,887 105 1,078,679 223 316,068 63 24,463 1,846,097 129 February 334,113 88 869,718 192 324,311 69 26,495 1,554,637 116 March 447,682 110 825,944 170 406,705 81 28,765 1,709,096 119 SHIPMENTS OF STOCKERS AND FEEDERS FROM 34 MARKETS. Ca c t a t l le v 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. nd Hogs. Sheep. T k o i t n al d , s a . ll 1920. Head. Head. Head. Head. 1920. Head. Head. Head. Head. March. 239.363 101,173 135,244 475,780 November 545,802 52,699 855,545 1,454,046 December 277,053 36,827 258,599 572,479 July 209,563 25,711 322 867 558,141 August 273,512 34,415 567.429 875,356 1921. September 473 652 44,340 789\387 1,307,379 January 202,926 41,892 332,907 October 571,025 59,123 1,055,237 1,685,385 February 164,504 49;229 61,508 275,241 March 233,477 72,536 88,292 394,305 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

588 FEDERAL RESERVE BULLETIN. MAT, 1921. ANIMALS SLAUGHTERED UNDER FEDERAL INSPECTION. [Bureau of Animal Industry. Monthly average, 1911-1913=100.] Cattle. Calves. Hogs. Sheep. Total. "Rela- Rela- Rela- Rela- Rela- Head. tive. Read. tive. Head. tive. Head. tive. Head. tive. 1920. March 683,139 113 390,053 221 3,481,680 124 787,867 5,342,739 Ill July 661,172 109 342,76S 194 2,643,772 94 1,048,42* 4,696,137 98 AllgllSt. - ' : 685,763 113 332,349 188 2.176,010 77 1,041,580 4,235,702 88 September 825,484 136 347,578 197 1^978,602 70 1,150,776 4,302,440 90 October 843,136 139 314,789 178 2,486,940 88 1,067,821 4.712,686 98 November 858,046 142 315,971 179 3,328,633 118 968,235 5;471,785 114 December 667,344 110 244,573 138 3,985,125 142 932,417 5,829,459 121 1921. January 689,506 114 282,043 160 4,347,306 154 1,068,346 6,387,201 133 February 522,71* 92 252,369 153 3,770,974 143 957,751 5,503,812 123 March..". 624,395 103 361,733 205 3,075,137 109 1,075,481 5,136,746 107 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. sho H ul a d m er s s , a c n u d red. Lard. Pickled pork. Pounds. t R iv e e la . - Pounds. R tiv el e a . - Pounds. t R iv e e la . - Pounds. t R iv e e la . - Pounds. t R iv e e la . - Pounds. t R iv e e la . - Pounds. t R iv e e la 1920. 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 7i 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 80 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 1921. January 548,227 83 6,078,550 490 1,725,625 65 43,202,486 258 16,869,841 113 76,185,237 173 3,089,094 70 February 1,733,678 280 979,081 85 1,750,756 70 31,612,140 202 15,847,799 114 91,840,951 224 3,150,452 76 March... 504,356 76 508,230 41 2,246,547 84 35,350,774 211 19,102,633 128 82,616,583 188 2,024,334 46 RECEIPTS OF GRAIN AND FLOUR AT 17 INTERIOR CENTERS. Chicago, Cleveland, Detroit, Duluth, Indianapolis, Kansas City, Little Rock, Louisville, Memphis, Milwaukee, Minneapolis, Omaha, Peoria, St. Louis, Spokane, Toledo, Wichita; receipts of flour not available for Cleveland, Detroit, Indianapolis, Louisville, Omaha, Spokane, Toledo, and Wichita. Compiled from reports of trade organizations at these cities. Monthly average, 1911-1913= 100.] Wheat. Corn. Oats. Rye. Barley. Total grain. Flour. Total grain and flour, i Rela- Rela- Rela- Rela- Rela- Rela- Rela- Rela- Bushels. tive. Bushels. tive. Bushels. tive. Bushels tive. Bushels tive. Bushels. tive. Barrels. tivi Bushels. tive. 1920. March 18,007,798 66 24,304,946 10819,149,624 95 3,549,739 322 2,908,440 41 67,920,547 87 1,618,519 83 75,203,883 July 29,714,399 110 824,268 93 18,734,180 93 3,096,026 281 653,921 37 755,,0(22,794 96 2052,110 105 84,257,2 97 August 43,039,021 159 ,840,320 44 30,728,748 153 3,191.103 289 3007,508 42 891,, 8o0u6u,,7-00 115 i;949,339 100 ;, 578,726 114 September. 46,181,275 170 20,696,955 92 31,031,569 154 5,571,428 50; 630,056 92 1100,,111111,,^283 1411,843,954 94 118,409,076 137 October 45,403,825 ,064,508 8"5" 2211,,235,162 106 4,455,979 404 5;795.028 8195,954,502 123 2137,639 1091105,573,878 122 November. 39,272,827 145 11,407,224 5115,282,651 76 3,706,653 336 6,616:362 92 76,285,717 98 2!054,262 105 85,529,896 99 December..32,758,773 121 390,714 87 '1"31',,7'77,300 69 3,482,685 316 "057,808 71 74,467,280 96 I,570,822 80 81,535,979 94 1921. January 32,229,218 119 422,036,812 1.8818,508,! 92 2,202,705 203 3,753,837 52 98,731,558 127 1,430,904 73 105,170,626 121 February... 22,922,667 91277;,565,779 132112,553,913 67l 1,397,832 136 2,074,908 31i66,515,099 911,659,009 91 i 73,980,640 91 March 22,848,939 84 344,165,324 15217,432,655 871,343,498 1213,111,127 43 78,898,543| 1012,096,C3l 107| 88,33), 678 102 1 Flour reduced to its equivalent in wheat on basis of 4| bushels to barrel. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

MAT, 1921. FEDERAL RESERVE BULLETIN. 589 SHIPMENTS OF GRAIN AND FLOUR AT 14 INTERIOR CENTERS. [Chicago, Cleveland, Detroit, Duluth, Kansas City, Little Rock, Louisville, Milwaukee, Minneapolis, Omaha, Peoria, St. Louis, Toledo, Wichita; shipments of flour not available for Cleveland, Detroit, Louisville, Omaha, Toledo, and Wichita.] Wheat. Corn. Oats. Rye. Barley. Total grain. Flour. Total grain and 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. 1920. March 11,027,336 11,165,894 7814,243,957 94 3,063,530 433 1,572,887 40 41,073,604 83 2,960,175 87 54,394,392 84 J A u u ly gust 2 1 4 9 , , 9 0 3 0 4 2, , 0 8 9 1 9 6 1 1 2 6 2 0 9 6 , , 1 2 0 6 0 0 , , 5 1 2 4 7 4 6 4 4 4 1 1 2 1 , ,3 8 4 1 5 4 , , 4 0 2 6 9 7 7 8 5 4 4 2 , , 4 8 7 8 6 0 , , 2 0 3 0 8 3 6 4 3 0 2 7 2 2 } , 2 0 3 8 1 6 , ,6 8 7 5 2 1 5 5"7 3 " 44 4 99 6 ,. , 1 0 2 1 0 0 , , 8 9 8 6 1 5 9 99 3 3 3: 7 6 6 0 7 5 , , 6 1 7 0 8 5 1 10 1 6 1 6 6 2 5 , , 9 3 6 4 5 3 , , 5 8 1 5 6 4 1 9 0 7 1 S O e c p to te b m er ber.. 2 2 6 8 , , 2 7 5 0 8 0 , , 7 5 9 9 5 3 1 1 6 8 9 4 1 6 0 . , 2 3 8 3 4 6 , , 0 3 7 7 5 8 4 "^ 4 1 1 0 2 ,6 , 0 6 1 9 , 0 1 ; 7 8 8 66 8 7 3 0 4 4 , , 7 3 4 3 2 9 , , 0 3 5 8 7 0 6 6 "1 7 "3 0 3 , 4 3 4 5 ,5 5 2 6 9 , , 1 0 8 9 0 1 11 9 6 1 5 5 6 5 , , 4 5 6 7 7 0 , , 8 7 2 7 2 1 1 1 1 1 2 4 3 37 1 5 8 8 7 , , 7 45 3 4 5 1 9 1 4 1 6 73 9 , , 3 9 8 1 2 4 , , 1 3 3 1 0 4 1 1 1 0 3 8 November. 24,950,771 160 7,890,500 5510,729,045 71 2,998,524 4,247,954 109 50,816,794 102 3949,699 117 68,590,440 106 December.. 22,253,030 143 7,898,979 9,964,743 68 3,171,616 448 3,082,249 79 46,370,617 93 3141,524 93 60,507,475 1921. January.... 20,187,379 130 17,288,509 12111,523,642 76 2,,380,797 336 21,874,359 :, 254,686 109 2,678,257 66,306,843 102 February... 15,134,115 104 12,891,895 97 9,299,842 66 1,'041,424 1581L, 626,913 45 39i', 994,189 8^62 ,26:96,723 52,129,443 86 March 17,415,266 112 20,723,904 14512,435,26r 821,116,943 15811,685,989 43 53,377,364 107 33,:156,299 93 67,580,710 104 1 Flour reduced to its equivalent in wheat on basis of 4-| bushels to barrel. STOCKS OF GRAIN AT 11 INTERIOR CENTERS AT CLOSE OF MONTH. [Chicago, Detroit Duluth, Indianapolis, Kansas City, Milwaukee, Minneapolis, Omaha, Peoria, St. Louis, and Toledo.. Wheat. Corn. Oats. Rye. Barley. Total grain. 1920. Bushels. Bushels. Bushels. Bushels. March 32,743,697 4,423,249 7,525,112 2,016,046 61,099,699 July 5,492,026 4,959,314 2,059,842 670,563 1,336,553 14,518,298 August 5,460,879 1,414,708 7,447,762 338,600 709,469 15,371,418 September 9,134,621 5,669,580 23,322,910 1,303,475 2,114,369 41,544,955 October 14,627,524 7,823,807 28,941,148 668,084 2,096,517 54,157,080 November 16,058,407 3,461,911 28,697,974 1,082,195 1,874,366 51,174,853 December 15,525,114 4,793,299 27,358,948 1,007,591 2,378,548 51,063,500 1921. January 14,414,231 11,596,518 29,435,153 478,125 2,057,434 57,981,461 February 12,883,444 17,294,569 30,039,057 600,585 1,800,604 62,618,259 March 11,277,724 24,465,117 31,570,022 562,754 1,673,037 69,548,654 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 fo Seattle and Tacoma. Compiled from reports of trade organizations at these cities. Monthly average, 1911-1913=100.] Total grain and Wheat. Corn. Oats. Rye. Barley Total grain. Flour. flour.! Rela- Rela- Rela- Rela- Rela- Rela- Rela- Rela- Bushels. tive. Bushels. tive. Bushels. tive. Bushels. tive. Bushels. tive. Bushels. tive. Barrels. tive. Bushels. tive. L 1920. March 6,486,745 1,203,649 34 3,646,727 77 4,119,986 2,9001,300,871 78 16,757,978 74 1,752,860 168 24,645,848 90 July 18,710,633 149 3,305,542 3, 499,101 74 5,048,019 3,553 25,098,083 126 32,661,378 144 1,660, 849 159 40,135,198 146 August 28,098,022 223 1, 576,842 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 3,069, 700 65 4,133,465 " ., 815,227109 42,168, 596 1861,422,872 136 48,571,520 177 October. 29,028,202 230 1,844,753 1,828, 515 38 5,436,354 !, 558,276 154 40,696,100 1791,463,830 140 47,283,335 173 November.. 24,410,356 194! 2,401,181 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 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 1921. January 12,717,255 101 6,228,175 175 1,542,355 32 2, 748, 524 ., 934 L1., 970,931 119 25,207,240 111 1,174,815 112 30,493,908 111 February... 10,315, 852 88 7,845,915 237 1,039, 537 23'2,059, 538 ., 553 1i,^ 631,288 !2,892,130 1081,186,565 122 28,231,673 110 March..' 9,064,534 7213,933,057 392 1,433,069 301,034,760 7281,689,129 102 27,154,549 120|l,518,450 145 33,987,574 124 1 Flour reduced to its equivalent in wheat on basis of 4£ bushels to barrel. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

590 FEDERAL RESERVE BULLETIN. MAY, 1921. 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.] Wheat. Corn. Oats. Rye. Barley. Total grain. 1920. Bushels. Bushels. Bushels. Bushels. Bushels. Bushels. March 6,280,682 851,287 1,351,457 2,389,321 1,891,862 12,764,609 July 11,923,745 744,167 1,323, 940 1,275,554 3,187,611 18, 455,017 August 13,915,892 1,097,945 1, 532,272 777,445 4,052,189 21,375,743 September 15,517,070 1,146, 514 2,398,157 2,414,910 4,110,158 25,586, 809 October 17,277,003 1, 292,818 2,521,049 1, 742,178 3, 577,450 26,410,498 November 17,794,605 1,371,013 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 1921. January 15, 060, 423 2,524,700 1, 1,602,358 2,105,450 23, 273,196 February 12,032,772 3,982,316 1,775) 563 1,332,441 1,909, 706 21, 032, 798 March 6,782,584 6,353,250 1,286,275 1,069,220 1,454,547 16,945,876 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.), New York.] 1920. Barrels. 1920. Barrels. March 9,036,000 November 9,500,000 December 9,600,000 July 8,200,000 August 10,200,000 1921. September 9,450,000 January 8,924,000 October 9,650,000 February 7,066,000 March 9,100,000 COTTON. [New Orleans Cotton Exchange. Monthly average crop years, 1911-1913=100.] Sight receipts. Port receipts. Overla m nd e n m t. ove- Ameri t c a a k n i n sp g i s n . ners' St i o n c t k e s ri o at r p t o ow rts n s a n a d t close of month. Bales. R ti e v l e a . - Bales. R ti e v l e a . - Bales. R ti e v l e a . - Bales. R ti e v l e a . - Bales. R t e i l ve a . - 1920-21. August 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 1,579, 751 126 797,350 87 134,455 128 672,477 148 2,815,934 239 January 1,153,825 92 69 157,012 149 526, 718 116 2,863,377 243 February 744,682 64 446,399 52 206,554 210 576,260 136 2, 820,403 239 March 553,518 44 401,464 44 134,085 127 253,368 56 2,757,715 234 COTTON SEED. [Bureau of the Census.] R at e c m e i iv ll e s d . Crushed. m O of n i l m l h s a o ( n n c d l t o h a s ) e t . R at e c m ei i v ll e s d . Crushed. m O of i n l m l h s a o ( n n c d l t o h s a ) e t . 1920. Tons. Tons. Tons. 1920, Tons. Tons. Tons. March 178,145 316,393 215,872 November 829,282 719,455 581,806 December , 557, 787 546,086 593,507 July 7,259 13,219 30,084 August 24,979 20,317 36, 760 1921, September 244,382 145,519 135,623 January , 418, 846 527,521 484,831' October 607,628 471,979 February 431, 539 499,851 416, 520 March 336,226 452,770 299,97* Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

MAY, 1921. FEDERAL RESERVE BULLETIN. 591 SHIPMENTS OF CITRUS AND DECIDUOUS FRUITS FROM CALIFORNIA. [March, 1921, on, Bureau of Markets and California Fruit News.2 Monthly average, 1911-1913=100.] Total Oranges. Lemons. Total citrus fruits. deciduous fruits. Carloads. Relative. Carloads. Relative. Carloads. Relative. Carloads. 1920. March 4,715 193 651 161 5,366 188 155 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 i 4,167 146 368 1921. January 3,429 140 627 155 i 4,077 143 98 February... ... . . 3,484 153 610 161 14,123 155 81 March 4,955 203 936 231 5,891 207 81 1 Includes grapefruit. 2 For previous sources, see April, 1921, Bulletin. SUGAR. [Data for ports of New York, Boston, Philadelphia. Weekly Statistical Sugar Trade Journal. Tons of 2,240 pounds. Monthly average, 1911- 1913=100.1 Receipts. Meltings. c R lo a s w e o s f to m ck o s n a th t . Receipts. Meltings. c R lo a s w e o s f to m ck o s n a th t . Rela- Rela- Rela- Rela- Rela- Rela- Tons. tive. Tons. tive. Tons. tive. Tons. tive. Tons. tive. Tons. tive. 1920. 1920. March 335,532 182 333,000 182 88,185 51 December 148,464 81 154,000 84 63,715 37 July 386,328 210 325,000 177 104,027 60 1921. August 308,313 168 287,000 156 125,340 73 January 92,498 50 94,000 51 62,113 36 September 109,302 59 164,000 89 70,642 41 February 228,952 133 193,000 113 98,165 57 October 109,335 59 118,000 64 61,977 36 March 306,914 167 310,000 169 87,466 51 November 186,274 101 179,000 98 69,251 40 SALE OF REVENUE STAMPS FOR MANUFACTURES OF TOBACCO IN THE UNITED STATES (EXCLUDING PORTO RICO AND PHILIPPINE ISLANDS). [Commissioner of Internal Revenue.! Cigars. Cigarettes. Cigars. Cigarettes. Manu- Manufactured factured Large. Small. Small. tobacco. Large. Small. Small. tobacco. 1920. Number. Number. Number. Pounds. 1920. Number. Number. Number. Pounds. March 753,239,958 55,052,100 4,373,778,917 38,422,481 December 506,126,135 47,380,000 2,816,818,050 15,452,701 July 678,751,956 51,766,100 3,053,336,563 30,988,646 1921. August 672,020,289 48,171,240 3,569,397,443 32,138,941 January 462,798,039 64,661,867 3,901,560,330 24,750,290 September 678,640,116 50,175,580 3,557,482,503 32,094,569 February 496,724,482 64,461,733 4,119,376,533 27,096,592 October 704,799,089 60,882,760 3,840,334,806 27,123,774 March 561,343,699 70,245,500 4,470,292,160 32,209,842 November 668,060,015 57,026,500 3,529,200,006 18,513,654 NAVAL STORES. [Data for Savannah, Jacksonville, and Pensacola. Compiled from reports of trade organizations at these cities.] Spirits of turpentine. Rosin. Spirits of turpentine. Rosin. Stocks at Stocks at Stocks at Stocks at Receipts. close of Receipts. close of Receipts. close of Receipts. close of month. month. month. month. 1920. Barrels. Barrels. Barrels. Barrels. 1920. Barrels. Barrels. Barrels. Barrels. March 1,876 4,819 14,660 103,443 November 23,893 49,209 83,177 247,253 December 21,174 53,356 76,848 300,315 July 39,158 30,906 117,088 135,979 August 33,997 27,963 111,497 144,109 1921. September 32,162 44,336 97,797 176,612 January 9,419 51,563 36,333 310,905 October 30,260 49,885 88,766 195,837 February 7,404 41,755 26,736 316,440 March 7,995 28,838 18,906 319,347 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

FEDERAL RESERVE BULLETIN. MAY, 1921. LUMBER. [From reports of manufacturers' associations.] Southern pine. Western pine. Douglas fir. Eastern white pine. North Carolina pine. b N m e u r i l m o ls f - . t d P i u r o o c n - - . m S e h n ip ts - . b N m e u r i l m o ls f - . t d P i u r o o c n - - . m S e h n ip ts - . b N m e u r i l m o ls f - . t d P i u r o o c n - - . m S e h n ip ts - . b N m e u r i l m o ls f - . t d P i u r o o c n - - . m S e h n ip ts - . b N m e u r i l m o ls f - . t d P i u r o o c n - - . m S e h n ip ts - . 1920. Mfeet. Mfeet. Mfeet. Mfeet. Mfeet. Mfeet. Mfeet. Mfeet. Mfeet. Mfeet March 205 436,944 424,775 130,425 156,211 123 342,948 329,012 43,771 61,620 29,633 29,890 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 98,808 127 299,277 238,965 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 1921. January 193 289,824 311,977 24,698 42,793 116 153,157 170,821 24,319 10,602 7,123 7,880 February.. 189 330,680 335,876 22,128 48270 114 159,646 153,649 23,722 13,615 10,673 10,045 March 195 387,959 390,300 35,983 63,126 118 192,188 210,842 26,396 15,298 12,778 8,915 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. Realtive. M feet. Relative. M feet. Relative. 1920. 1920. April 236,975 51 131,933 52 December. 351,695 76 192,072 7f July 399,615 86 184,767 73 1921. August 370,352 80 220,368 87 January 263,001 57 165,308 65 September 375,456 81 242,857 96 February 269,632 62 169,843 79 October 398,333 86 220,116 87 March 349,426 75 215,760 Rf November 342,971 74 190,282 75 April 345,798 74 213,359 84 COAL AND COKE. [U. S. Geological Survey. Monthly average, 1911-1913=100.] Bi m d tu u a m c t t e i i d n o o n. u m s on c t o h a l l y , p es r t o i - - An m d t u h a c t r t e a i d c o i n t . e m on co th a l l y , p es ro ti - - Be m e o h n iv t e h ly c o p k r e o , d e u s c t t i i m on a . ted Short tons. Relative. Short tons. Relative. Short tons. Relative. 1920, March 46,832,000 126 7,857,000 105 2,025,000 77 July 45,009,000 121 8,261,000 112 1,693,000 65 August 48,910,000 132 8,025,000 108 1,776,000 68 September 49,172,000 133 4,646,000 63 1,757,667 67 October 52,144,000 141 8,069,000 109 1,742,333 67 November 51,457,000 139 7,453,000 101 1,622,000 62 December 52,123,000 141 8,321,000 112 1,515,000 58 1921. January 40,270,000 109 9,419,000 127 1,074,833 41 February 30,851,000 7,845,000 114 863,834 35 March 30,328,000 7,603,000 103 587,333 22 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

MAT, 1921. FEDERAL RESERVE 593 CRUDE PETROLEUM. [U. S. Geological Survey. Barrels of 42 gallons each. Monthly average, 1911-1913=100.] Stocks at close of month Stocks at close of month Production. (barrels). Production. (barrels). Barrels. R ti e v l e a . - Ca E l a if s o t rn o i f a. California. Barrels. R ti e v l e a . - Ca E l a if s o t r o n f ia. California. 1920. 1920. March 35,831,000 187 November 38,699,000 202 92,015,000 21,272,000 December., 38,961,000 203 94,919,000 20,930,000 July 38,203,000 199 August 39,055,000 204 ), 355,000 22,149,000 1921. September 37,532,000 196 5,155,000 21,874,000 January.. 37,853,000 197 95,838,000 21,261,000 October 39,592,000 207 >, 584,000 21,265,000 February. 35,348,000 198 100,147,000 21,566,000 March 40,802,000 213 105,797,000 22,896,000 TOTAL OUTPUT OF OIL REFINERIES AND STOCKS OF OIL. [Bureau of Mines.] OUTPUT, BY MONTHS. Crude oil run Gasoline Kerosene Gas and fuel Lubricating (barrels). (gallons). (gallons). (gallons). (gallons). 1920. February 29,208,723 322,588,697 194,523,334 589,684,857 74,243,073 July 37,024,052 423,419,770 172,213,511 751,193,898 92,369,504 August 39,757,770 444,141,422 189,010,459 834,322,503 91,078,569 September 40,549,316 453,881,096 199,140,024 836,700,086 86,230,371 October 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 December 40,485,409 464,393,356 210,668,109 859,131,359 90,894,798 1921. January 39,637,382 460,432,439 205,374,611 836,684,040 85,908,641 February 34,588,096 388,188,252 163,081,918 732,542,415 72,432,219 STOCKS AT CLOSE OF MONTH. 1920. Feb. 29.. 13,500,599 562,996,489 330,120,942 590,322,125 132,759,244 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.. 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 Dec. 31.. 21,280,580 462,381,837 393,070,923 837,404,414 160,522,477 1921. Jan. 31.. 21,064,124 571,983,793 418,747,781 921,028,127 183,813,205 Feb. 28. 22,411,819 680,540,351 430,045,193 993,127,328 201,627,558 IRON AND STEEL. [Pig-iron production, Iron Age; steel-ingot production, American Iron and Steel Institute. Monthly average, 1911-1913=100.] Pig-iron production. Steel-ingot produc- Un S f t i e ll e e l d o C rd o e rp rs o r U at . io S n . at close of month. Gross tons. Relative. Gross tons. Relative. Gross tons. Relative. 1920. April 2,739,797 118 2,638,305 113 10,359,747 197 July 3,067,043 132 2,802,818 120 11,118,468 211 August 3,147,402 136 3,000,432 128 10,805,038 205 September 3,129,323 135 2,999,551 128 10,374,804 197 October 3,292,597 142 3,015,982 129 9,836,852 187 November 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 2,416,292 104 2,203,186 94 7,573,164 144 February 1,937,257 90 1,749,477 6,933,867 132 March 1,595,522 69 1,570,978 6,284,765 119 April 1,193,041 51 1,213,958 5,845,224 111 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

594 FEDEBAL BESEBVE BULLETIN. MAY, 1921. STRUCTURAL-STEEL ORDERS AND SHIPMENTS. [Bridge Builders and Structural Society.] Fabricated structural steel con- Structural-steel orders and shipments of tracted for the membership of Bridge Builders throughout and Structural Society. country. Orders. Shipments. Per cent Tonnage. ca s p h a o c p ity. Ton- Pe s r h o c p ent Ton- Pe s r h o c p ent nage. capacity. nage. capacity. 1920. March 150,400 83.5 50,598 69.0 49,434 67.5 July 90,400 50.0 33,213 47.0 49,096 69.0 August 72,000 40.0 36,843 50.0 51,381 70.0 September 77,400 43.0 26,755 37.0 53,526 74.0 October 45,600 25. 5 14.161 20.0 47,200 66.0 November 49,200 27.5 41,531 16.0 41,268 57.5 December 47,000 26.0 14,521 20.0 42,767 60.0 1921. January 32,000 18.0 12,194 18.0 32,964 48. 5 February 25,600 14.0 12,013 18.5 25,776 40.0 March 52,300 29.0 26,398 38. 0 30,011 43.0 IMPORTS OF PIG TIN. [Department of Commerce. Monthly average, 1911-1913=100.] Pounds. Relative. Pounds. Relative. 1920, 1920. March 11,980,019 132 November. 9,550,535 105 December.. 5,893,627 65 July 17,584,167 193 August 11,195,937 123 1921. September 9,596,819 106 January... 2,584,347 October 6,741,331 74 February. 5,269,969 62 March 3,028,356 33 RAW STOCKS OF HIDES AND SKINS.i [Bureau of Markets; July, 1920, on, Bureau of the Census.] Cattle Goat and Sheep and hides. Calfskins. Kipskins. kid. Cabretta. lamb. 1920. Pieces. Pieces. Pieces. Pieces. Pieces. Pieces. Mar. 31 6,558,300 1,930,218 966,850 16,436,848 2,047,519 9,227,252 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 3,492,653 1,422,608 11,231,086 2,234,027 12,705,767 Dec. 31 7,793,762 3,271,905 1,305,776 11,721,505 2,685,670 13,773,089 1921. Jan. 31 7,899,138 3,086,862 1,381,748 10,870,210 2,155,200 13,184,052 Feb. 28 7,940,359 3,157,723 1,375,110 9,798,311 1,941,832 12,489,855 Mar. 31 7,806,867 3,060,144 1,241,984 8,652,171 1,579,457 12,970,857 i Includes hides and skins in transit. The number of firms reporting increased in the autumn of 1920 as follows: Sept., 1,307; Oct., 1,915; Nov., 2,027; Dec, 2,059. TEXTILES—COTTON AND SILK. [Cotton, Bureau of the Census; silk, Department of Commerce. Cotton, monthly average, crop years 1912-1914=100; silk, monthly average, 1911-1913=100.] Cotton t io co n n . sump- s C pi o n t d to le n s Imports of raw silk. Cotton t io co n n . sump- s C pi o n t d to le n s Imports of raw silk. active active during during Bales. Relative. month. Pounds. Relative. Bales. Relative. month. Pounds. Relative. 1920. 1920. March 575,789 128 34,697,812 2,491,651 122 November 332,057 74 31,654,126 1,319,995 65 December 294,851 66 29,879,402 972,011 48 July 525,489 117 34,666,794 2,581,920 126 August 483,193 107 34,471,515 2,690,690 132 1921. September 457,647 102 34,040,806 1,968,801 96 January 366,270 81 31,509,021 708,897 35 October 399,837 89 33,669,804 1,531,850 75 February 395,563 94 32,458,528 2,327,949 122 March 437,933 97 32,104,946 2,201,633 108 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

MAY, 1921. FEDERAL RESERVE BULUETIN. 595 TEXTILES—WOOL. [Wool consumption, Bureau of Markets; idle wool machinery, Bureau of the Census.] Percentage of idle machinery on first of month to Percentage of idle hours on first of month to total total reported. reported. Consump- Looms. Spinning spindles. Looms. Spinning spindles. tion (pounds).1 th W s i r p a n e i a n c e d c h d 5 e e 0 r . - 5 o s 0 r r p e - l a i e e n c d s c e s h . c S a o r e d f ts s. Combs. Woolen. Worsted. th W s i r p a n e a i n e c d c d h 5 e e 0 r . - 5 o s 0 r r p e - l a m e e c d s c e s h . c S a o r e d f ts s. Combs. Woolen. Worsted. 1920. April 66,935,318 13.1 16.9 9.6 7.1 9.5 7.0 July 37,097,077 42.5 32.3 38.0 35.0 42.0 32.7 August 38,054,708 49.5 29.9 39.6 33.4 45.5 37.6 September 36,297,221 51.8 34.8 39.6 37.3 44.6 38.0 October 38,443,688 49.0 34.9 38.3 26.3 43.2 26.0 November 28,096,047 46.9 37.7 39.5 32.8 42.8 34.8 54.1 47.7 45.9 38.4 46.7 38.5 December . . 51.2 44.8 50.3 41.4 51.7 42.7 59.7 00.4 57.1 51.0 53.9 53.4 1921. January 57.0 49.2 58.1 52.9 59.4 50.8 66.7 71.2 66.1 62.9 68.4 65.2 February 53.9 48.7 56.5 43.8 58.9 43.0 60.0 66.7 64.3 51.0 64.5 55.3 March.. 43.1 41.7 46.2 28.3 47.2 33.0 45.3 57.1 50.6 26.2 50.5 37.9 April 36.1 34.4 33.0 18.7 32.3 21.8 38.3 47.3 35.8 11.3 34.1 25.7 1 Converted to grease equivalent basis. PRODUCTION OF WOOD PULP AND PAPEU. [Federal Trade Commission.] 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 lp o - 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. Net Net Net Net Net Net Net Net Net Net Net Net 1920. tons. tons. tons. tons. tons. tons. 1920. tons. tons. tons. tons. tons. tons, March 327,143 127,847 95,851 207,863 68,403 33,671 December... 302,527 124,857 76,093 105,227 54,308 27,233 July 312,334 129,853 95,526 218,771 73,487 34,078 1921. August , 305,965 128,818 94,424215,633 75,226 33,122 January 275,353 123,830 64,382 105,806 44,620 22,756 September.. 293,913 121,005 94,142218,743 70,917 34.207 February 243,797 103,040 56,687 123,832 46,352 19,242 October 319,877124,818 93,849 196,604 73,100 34,526 March ~!62,332 107,532 59,832 139,723 49,879 19,058 November.. 326,041 122,993 89,564 133,818 65,920 31.208 OUTPUT OF LOCOMOTIVES AND CARS. [Locomotives, reports from individual producers; cars, Railway Car Manufacturers' Association.] Locomotives. Output of cars. Locomotives. Output of cars. s D hi o p t m i p c e e s d - . F p c o le o r t e m e ig d - n . Do ti m c. es- Foreign. Total. s D h o i t p m i p c e e s d - . F p o c le o re t m e ig d - n . Do ti m c. es- Foreign. Total. 1920. Number. Number. Number. Number. Number. 1920. Number. Number. Number. Number. Number. March 45 59 3,053 2,040 5,093 December 198 93 7,551 1,420 8,971 July 122 54 2,731 434 3,165 1921. August 114 125 3,409 1,210 4,619 January 154 71 7,169 843 8,012 September 126 69 3,955 1,103 5,058 February 108 70 6,482 518 7,000 October 198 106 6,309 684 6,993 March. 112 49 6,041 705 6,746 November 204 73 6,243 985 7,228 VESSELS BUILT IN UNITED STATES, INCLUDING THOSE FOR FOREIGN NATIONS, AND OFFICIALLY NUMBERED BY 1HE BUREAU OF NAVIGATION. [Monthly average, 1911-1913-100.] Gross Gross Number. tonnage. Relative. Number. tonnage. Relative. 1920. 1920. March 170 279,709 1,157 December 87 176,903 732 July. 173 217,239 1921. August 178 259,210 1,073 January 216,280 895 September 135 261,962 1,084 February 121,404 538 October 120 227,162 940 March 154,864 641 November 119 213,966 885 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

596 FEDERAL RESERVE BULLETIN. MAY, 1921. 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. 1920. 1920. March 2,040,031 2,040,538 4,080,569 100 50.0 189 December 2,785,615 2,949,416 5,735,031 140 48.6 183 July 3,302,538 3,616,052 6,918,590 169 47.7 180 1921. August 3,616,267 3,929,602 7,545,869 184 47.9 181 January 2,191,201 2,454,617 4,645,818 114 47.2 178 September 3,421,531 3,513,599 6,935,130 170 49.3 186 February 2,017,303 2,149,300 4,166,603 109 48.4 183 October 3,500,312 3,756,512 7,256,824 177 48.2 182 March 2,097,843 2,396,309 4,494,152 110 46.7 176 November 3,302,367 2,868,294 6,170,661 151 53.5 202 NET TON-MILES, REVENUE AND NONREVENUE. [United States Railroad Administration; March, 1920, on Interstate Commerce Commission.] 1920. 1920. February 32,958,000,000 November 37,458,630,000 December 34,722,365,000 July 40,450,094,000 August 42,706,838,000 1921. September 40,999,843,000 January 29,817,000,000 October 42,562,687,000 February 24,915,000,000 REPORT OF KNIT-GOODS MANUFACTURES. Thirty-eight representative mills which reported for February and March furnish the The total production of winter and summer lata for the following tables: underwear for the 6 months ending March 31 [In dozens.] was as follows: February March Gain. Loss. (38 mills). (38 mills). r N e o p f u o m m rt b i i l n e ls g r . ( p d A r o t o c i z o d t e u n u n a c s l - ). P n e o r r o m c f e a n l. t U N Sh e n i w f p il m l o e r e d d n e o t r s r s ders 1st of month.. 2 5 1 0 8 7 5 8 5 , , , 2 2 1 6 2 2 0 6 7 2 2 2 6 8 6 9 4 6 , , ,8 1 7 2 0 1 3 4 2 7 91 9 , ,4 5 5 9 2 7 319,023 Cancellations 1,619 5,173 3,554 Production 147, 822 261,934 114,112 1920. October 393,422 50.4 November.. 191,831 23.2 FINISHED COTTON FABRICS. December.. 98,671 11.0 The National Association of Finishers of 1921. January 148,023 16.4 Cotton Fabrics, at the request of the Federal M Fe a b r r c u h ary 2 4 4 2 8 1 , , 4 1 3 4 1 0 2 5 8 0 . . 0 1 Reserve Board, have arranged for a monthly Winter underwear (March)... 102,415 31.0 survey within the industry. The results of Summer underwear (March).. 318, 725 62.5 the inquiries are herewith presented in tabular form. The secretary of the association makes Order and production report for month end- the following statement concerning the tabulaing March 31, 1921, follows. The number of tion: mills reporting was 46. The accompanying figures are compiled from statistics furnished by 34 out of 58 member firms of this association. It is probably fair to state that in the absence of having Per cent specific detail at hand, but according to our best estimate, Dozens. o p f r n o o d r u m c- al i f t o r i s th p e r o v b ar a i b o l u y s w cl e a l s l s e w s i o th f i w n o t r h k e w fa o c u t l d t h c a o t v e th r e a f p ig p u r r o e x s i m gi a v t e e n ly tion. the following percentages of the entire industry: White goods, 72 per cent; dyed goods, 62 per cent; printed goods, Unfilled orders 1st of month 273,962 32 per cent. The figures given represent reports from New orders received during month 371,657 61.5 exactly the same finisher^ for the two months, both for the Total (A) 645,619 totals and for the subdivisions and, therefore, are strictly comparable. Shipments during month 285,537 47.3 NOTE.—Many plants were unable to give details under Cancellations during month 5,389 0.89 the respective headings of white goods, dyed goods, and Total (B) 290,926 printed goods, and reported their totals only; therefore the column headed "Total" does not always represent Balance orders on hand Mar. 1 (A minus B) 354,693 Production 315,159 52.1 the total of the subdivisions, but is a correct total for the district. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

MAY, 1921. FEDERAL RESERVE BULLETIN. 597 PRODUCTION AND SHIPMENTS OF FINISHED COTTON FABRICS. February, 1921. March, 1921. W go h o i d t s e . g D o y o e d d s. P g r o in od te s d . Total. W go h o i d t s e . g D o y o e d d s. P g r o in o t d e s d . Total. Total finished yards billed during month: Districtl 9,201,380 12,009,687 5,145,619 28,279,941 14,560,030 19,056,336 7,804,941 45,046,635 2.. 5,553,700 1,070,187 359,555 12,415,909 7,425,289 2,461,016 4,323,519 21,695,892 3 4,520,032 3,231, 582 8,291,903 6,246,321 5,449,031 12,533,513 5 4,698,536 24,034 4, 722, 570 5,500,003 76,348 5,576,351 6 126,265 380,241 506,506 86,151 457,629 543, 780 8 1,220,042 1,336,450 Total 24,099,913 16, 715, 731 5,505,174 55,436, 871 33,817, 794 27,500,360 12,128,460 86,732,621 Total finishing charges billed during m«nth: Districtl $182,214 $502, 706 $239,014 $1,015, 721 $276,003 $814,343 $374,326 $1,654,083 2 110,950 36,629 9,225 288,014 119,672 60,916 186,977 553,920 3 143,350 123, 713 277,460 188,596 221,512 425,235 5 96,080 347 96,427 106,373 1,351 107,724 6 2,360 16,973 19,333 1,808 19, 829 21,637 8 . 15,961 20,307 Total $534,954 $680,368 $248,239 $1,712,916 $692,452 $1,117,951 $561,303 $2,782,906 Total average per cent of capacity operated: Districtl.;. ....... 50 57 30 46 63 68 44 59 2.. 73 34 54 58 77 49 85 79 3 66 41 51 87 62 71 5 73 73 96 96 6.. . 34 39 8 46 57 Average for all districts . 61 50 34 51 75 64 50 67 Total gray yardage of finishing orders received: District 1 10, 745,070 16,816,715 7,084,145 37,372,981 12,517,785 18,675,645 8,453,394 43,461,754 2. 6, 396,320 2,976,397 5,162, 723 19,212,796 7,302,473 3,970,174 6, 780,303 22,908,747 3 7,365,939 5,036,959 13,205,870 7,115,387 5,122,275 13,007,284 5 4,689,469 45,178 4,734,647 6, 743,059 116,232 6,859,291 6 65,706 328,072 393,778 126, 760 408,843 535,603 8 1,281,734 1,569,920 Total 29,262, 504 25,203,321 12,246,868 76,201, 806 33,805,464 28,293,169 15,233,697 88,342,599 Number of cases of finished goods shipped to customers (case equal approximately 3,000 yards): District 1 4,662 3,399 1,818 16,650 6,095 5,938 2,612 24,261 2 4,079 94 9,455 5,424 140 12,299 3 3,576 1,956 5,777 4,426 2,512 7,306 5 1,464 2,685 1,603 3,193 6. 8 376 398 Total 13,781 5,449 1,818 34,943 17,548 8,590 2,612 47,457 Number of cases of finished goods held in storage at end of month: Districtl. 3,879 3,198 3,196 18,506 3,581 3,102 2,323 16,829 2 2,309 145 6,354 1,968 214 6,029 3 216 310 5,059 189 278 4,824 5 457 1,560 433 1,346 6 8 i, 309 1,296 Total 6,861 3,653 3,196 32,788 6,171 3,594 2,323 30,324 Total average work ahead at end of month (expressed in days): Districtl. . . 7.3 6.8 7.8 7.2 5.8 7.0 7.0 6.5 2 12.0 6.8 16.0 13.0 16.0 8.5 17.0 12.0 3 11.0 6.3 8.4 16.0 8.1 11.0 5 .. . 6.1 6.1 8.2 8.2 6. ... . 2.2 2.1 8 8.1 6.0 Average for all districts 8.8 6.7 9.1 8.5 10.0 7.5 8.6 8.4 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

598 FEDERAL RESERVE BULLETIN. MAY, 1921. RETAIL TRADE. weighted according to volume of business done during the calendar year 1920, and the averages In the following tables is given a summary for the several months in 1920 by similar of the data obtained from representative de- figures for the calendar year 1919. For the partment stores in each Federal Reserve dis- month of March the tables are based on reports trict, showing the activity of retail trade during from 24 stores in district No. 1, 37 in district the past several months. In district Nqs. 1, 5, No. 2, 47 in district No. 3, 15 in district No. 4, 6, 7, 9, 11, and 12 the data were received in 25 in district No. 5, 11 in district No. 6, 19 in (and averages computed from) actual amounts district No. 7, 11 in district No. 8, 19 in district (dollars). In districts Nos. 2, 3, 4, 8, and 10 the No. 9, 16 in district No. 10, 18 in district No. material was received in the form of percent- 11, and 28 in district No. 12. The number of ages, the 1921 averages for the cities and dis- stores varies somewhat, due to the inclusion of tricts computed from such percentages being new stores from time to time in the reporting list. CONDITION OF RETAIL TRADE IN THE 12 FEDERAL RESERVE DISTRICTS. Percentage of increase in net sales as compared with corresponding period previous year. Julyl,1920,to close of— Jan. 1,1921, to District and city. close of— July, Aug.,Sept., Oct., Nov., Dec, Jan., Feb., Mar., 1920. 1920. 1920. 1920. 1920. 1920. 1921. 1921. 1921. July, Aug.,Sept., Oct., Nov., Dec, Jan., Feb., Mar., 1920. 1920. 1920. 1920. 1920. 1920. 1921. 1921. 1921. District No. 1: 16.3 11.6 16.0 0.1 15.0 1.4 5.4 10.8 2.1 16.3 24.1 15.9 9.7 11.0 8.5 5.4 7.7 5.5 27.2 9.1 14.7 2.2 1.7 16.4 U0.1 16.0 1.9 27.2 18.1 16.9 11.1 9.0 5.0 110.1 19.1 16.2 19.9 10.9 15.4 .6 11.4 1.4 1.5 6.5 1.5 19.9 15.1 15.2 10.1 10.4 7.7 1.5 3.5 2.7 District No. 2: N. Y. City and Brooklyn. 22.4 10.9 13.2 1.7 7.6 13.6 16.5 U.l 15.8 22.4 13.0 3.6 5.2 3.0 3.2 16.5 14.6 14.5 26.9 26.4 16.9 15.4 18.9 5.9 U.5 9.5 1.3 26.9 27.1 23.4 19.6 14.3 U.5 1.6 .7 District 24.4 15.9 3.6 6.2 11.6 11.6 15.3 1.0 14.6 24.4 17.5 10.2 10.0 10.0 5.5 15.3 13.5 13.4 District No. 3: 8.5 2.9 2.9 3.4 .9 12.0 9.1 2.9 4.4 2.0 Outside 8.5 10.8 3.3 4.7 4.6 18.5 21.6 3.3 1.7 2.1 District 23.8 22.6 15.2 15.8 8.5 6.1 3.1 3.8 1.8 23.8 24.9 19.6 17.3 14.6 14.1 3.1 3.6 2.0 "District No 4 29.9 25.7 24.6 20.8 26.1 14.7 3.6 6.4 29.9 27.3 25.9 23.9 24.8 22.0 3.6 4.3 District No. 5: 5.9 5.3 12.2 5.9 4.6 1.9 14.2 14.2 6.3 14.2 4.2 5.6 9.3 8.4 5.5 9.3 8.8 7.4 Other cities 4.0 15.9 9.4 4.0 9.4 10.8 District 15.7 20.9 7.5 12.4 13.1 4.9 5.4 8.6 2.7 15.7 21.1 14.1 13.6 13.5 10.4 5.4 6.4 5.2 District No 6 11.6 27.6 12.6 25.1 14.6 3.0 19.0 1.4 15.6 11.6 19.6 16.9 19.7 18.8 15.3 19.0 15.4 14.7 District No 7 41.2 33.2 28.6 8.3 17.6 9.6 U0.5 15.4 13.2 41.2 29.6 35.5 32.6 24.2 18.1 110.5 14.7 13.3 District No. 8 20.8 11.8 10.5 10.8 5.3 13.8 13.1 1.7 18.0 16.8 16.5 13.8 13.3 13.8 13.7 11.7 District No. 9 "ii.*6* 8.8 .3 12.9 2.9 .5 U2.3 17.0 111.2 3.8 7.6 112.3 110.9 111.8 District No 10 14.1 9.9 7.8 9.2 15.1 U1.6 4.1 16.1 14.1 14.2 11.1 5.2 12.9 .7 U1.6 11.8 13.9 District No. 11 25.9 25.6 12.4 16*. 0 12.7 12.9 18.9 14.6 116.0 25.9 25.2 20.9 21.6 17.9 10.5 18.9 18.4 111.4 District No. 12: Los Angeles 35.1 48.9 29.1 19.3 31.2 13.7 17.1 14.6 9.9 35.1 42.4 37.9 33.9 33.7 28.5 17.1 13.3 11.9 San Francisco 21.0 18.6 10.4 11.5 9.9 13.8 U2.1 .4 13.1 21.0 19.6 17.3 15.4 11.7 8.7 112.1 16.5 14.3 Oakland 16.9 15.3 22.0 7.2 U0.4 8.2 .9 16.9 14.7 21.3 18.2 U0.4 12.2 9.8 20.1 3.1 9.9 *2.*3"U6.8 16.2 20.1 13.3 16.1 "*7."6"116.8 14.2 Seattle .2 18.0 14.5 114.6 U4.6 U8.7 123.4 12.4 U4.6 .2 14.4 14.2 17.3 19.2 Ul.l 123.4 19.3 1 15.6 Spokane 22.7 12.7 4.6 5.6 11.5 110.1 12.2 4.6 22.7 16.8 9.4 8.4 8.6 U0.1 1.3 Salt Lake City 20.6 11.6 8.9 14.7 9.1 1.6 15.2 1.7 20.6 16.1 14.0 12.2 14.6 1.6 1.9 6.0 District 21.2 21.7 14.5 8.2 11.3 14.3 U4.3 12.4 .6 21.2 21.4 19.8 16.8 14.8 5.0 U4.3 15.9 1.6 1 Decrease. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

MAT, 1921, FEDERAL RESERVE BULLETIN. 599 CONDITION OF RETAIL TRADE IN THE 12 FEDERAL RESERVE DISTRICTS—Continued. Percentage of increase in stocks at close of month compared with— District and city. Same month previous year. Previous month. July, Aug., Sept., Oct., Nov., Dec, Jan., Feb., Mar., July, Aug., Sept., Oct., Nov., Dec, Jan., Feb., Mar., 1920. 1920. 1920. 1920. 1920. 1920. 1921. 1921. 1921. 1920. 1920. 1920. 1920. 1920. 1920. 1921. 1921. 1921. District No. 1: Boston 32.1 26.3 20.7 9.5 7.1 11.7 110.7 13.7 118.2 17.0 4.9 9.5 14.2 9.0 118.2 114.5 15.5 16.6 Outside 30.4 26.4 21.7 15.9 10.6 2.0 110.6 3.7 110.3 .2 3.2 9.7 3.0 12.0 120.5 18.2 15.4 15.7 District 31.5 26.4 21.0 11.6 8.2 1.7 110.7 11.6 116.0 14.7 4.3 9.5 11.8 4.9 118.9 112.7 15.5 16.4 District No. 2: N. Y. City and Brooklyn. 46.2 30.7 18.0 17.2 5.1 12.3 19.5 116.5 123.2 14.3 7.3 5.7 1.0 14.8 120.4 18.1 6.3 8.3 Outside 30.9 26.3 20.2 15.6 3.8 112.7 120.0 123.0 U7.9 4.6 5.6 9.3 1.4 17.0 124.0 16.1 1.3 9.0 District 39.5 29.3 18.7 16.7 4.6 14.5 112.0 117.8 122.0 1.5 6.8 6.9 .5 15.6 121.1 17.6 5.3 8.5 District No. 3: Philadelphia 5.7 2.2 1.9 111.7 !20.4 115.5 113.8 4.2 5.4 Outside 17.4 8.0 110.8 112.4 114.3 i4.'l 120.0 17.4 9.5 7.3 District 28.4 31.0 20.6 16.0 10.1 4.4 14.6 111.9 119.0 3.3 6.2 8.4 .9 14.7 117.3 111.5 5.6 5.9 DistrictNo.4 48.3 40.4 34.0 34.9 22.5 11.6 14.0 113. 2 117.1 11.4 9.4 9.2 4.8 16.4 120.0 !14.6 3.1 7.9 District No. 5: Baltimore J19 7 124.0 128.2 6.9 8.8 Richmond 19 8 116.6 115.2 7.7 7.8 Washington 128.6 129.9 !26.2 118.7 9.8 7.1 Other cities 120.3 121.4 122.6 132.1 13.9 10.1 District 44.6 29.6 21.1 15.1 5.3 14.2 122.2 124.8 125.9 2.5 2.3 10.2 .1 17.7 125.5 116.2 8.9 8.4 District No. 6 51.6 39.8 37.2 30.1 16.3 1.2 18.3 113.9 ]12.7 5.6 5.4 13.1 .8 16.7 130. 8 1.8 6.0 4.4 District No. 7 70.1 64.1 55.5 51.7 39.7 27.7 115. 5 113.1 U4.3 8.4 14.6 4.8 1.0 15.9 x24.0 11.8 1.4 9.2 District No. 8 24.2 35.4 30.5 17.0 16.2 9.9 111.5 19.8 5.6 11.6 1.8 14.3 118.8 13.3 1.8 9.6 District No. 9 12 6 17.7 22 6 12 0 7.1 1 3 5 x10 9 123.1 !14. 8 14.7 2.9 6.9 .5 14.2 118.7 18.8 1.2 6.2 District No. 10 43.6 39.1 29.1 25.0 11.8 9.4 114.9 118.2 120.9 8.9 9.8 4.6 11.9 15.0 123.9 il.l 10.1 6.4 DistrictNo.il 69.5 59.5 52.8 42.3 31.5 8.8 112. 9 U5. 5 117.7 8.3 22.3 6.6 13.0 19.3 128.8 17.9 5.0 9.3 District No. 12: Los Angeles 47.5 31.2 33. 4 21.6 16.4 129.7 112. 4 112. 8 1.8 12.5 13.7 .2- 14.2 145.4 3.6 .5 6.2 San Francisco 43 1 27 1 16 2 15 4 8 0 19 6 193 116.5 121.9 1.5 1.4 7.4 15.4 1.8 114.7 19.0 6.1 3.1 Oakland 27.7 22.5 8.3 3.8 121.1 127.8 127.2 12.9 2.3 .6 13.1 110.9 4.2 7.7 S Se a a c t r t a l m e en . t . o 23*4* 1 1 8 1 . 4 4 3 9 17 . . 5 5 1 4. 4 " 1 i* 1 3 2 .* .3 6* l2~lA 127*5" 1 1 3 3 0 3 . . 3 8 "14.2" 9 !. . 8 9 "*6.*3* 2 . . 3 8 12.9* 1 12 2 2 3 . . 5 1 iii.T""6.*6* 3 6 . . 1 8 Spokane 45.8 45.5 40.1 33.6 112.2 13.6 114.0 120.9 1.8 9.1 1 2.7 14.2 13.6 2.1 4.4 1.4 Salt Lake City 12.7 115.1 122.4 6.6 District 40.1 25.3 20.6 15.6 20.1 .3 .4 17.6 121.6 1.8 .7 4.9 1.2 13.4 114.3 14.1 2.2 4.5 Ratio of average stocks at close of each month to aver- Ratio of outstanding orders at close of month to total age monthly sales for same period (per cent). purchases during previous calendar year (per cent). Jan. 1, 1921, to District and city. July 1, 1920,to close of— close of— Julv, Aug.,Sept., Oct., Nov., Dec, Jan., Feb., Mar., 1920. 1920. 1920. 1920. 1920. 1920. 1921. 1921. 1921. July, Aug.,Sent.. Oct., Nov., Dec, Jan., Feb., Mar., 1920. 1920. 1920. 1920. 1920. 1920. 1921. 1921. 1921. District No. 1: Boston . ... 419.2 447.1 412.7 388.4 368.4 329.9 270.2 325.3 300.7 18.5 13.7 11.4 7.5 5.4 3.6 5.1 7.4 5.7 Outside 436.4 472.1 485.9 482.6 456.6 452.0 392.9 473.7 445.8 9.1 14.2 14.7 10.8 10.4 4.5 8.6 11.2 District 425.1 455.1 433.5 415.6 398.6 357.9 297.2 358.1 332.5 12.0 14.0 13.1 9.1 7.7 4.8 8.1 6.4 District No. 2: New York City and Brooklyn 390.0 489.3 613.7 479.4 464.1 361.1 315.8 323.3 310.1 15.7 16.8 14.7 9.2 6.9 5.3 5.5 7.3 7.1 Outside 485.8 50G.3 492.1 441.3 430.6 347.7 351.3 350.6 407.7 18.9 14.3 12.0 6.6 4.1 3.1 4.1 7.2 5.7 District 440.1 496.7 573.9 466.9 452.3 358.0 325.0 328.7 330.6 17.4 15.9 13.6 8.1 5.5 4.5 5.1 7.3 6.7 District No. 3: Phil ad pin hia 360.4 322.6 281.9 314.3 330.5 4.7 4.9 4.4 7.9 7.6 Outside 520.5 458.6 479.3 508.7 465.8 2.9 4.1 4.8 6.2 6.1 District 399.8 471.2 500.3 437.2 418.0 371.1 357.6 365.6 361.9 19.8 14.2 10.1 5.9 4.0 4.6 4.6 7.5 7.3 DistrictNo.4 403.6 412.7 468.8 466.8 452.1 398. 5 306.4 353.6 345.9 18.9 17.0 13.3 7.6 5.9 4.7 7.1 7.0 7.7 1 Decrease, Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

600 FEDEKAL, EESEBVE BULLETIN. MAT, 1921. CONDITION OF RETAIL TRADE IN THE 12 FEDERAL RESERVE DISTRICTS—Continued. Ratio of average stocks at close of each month to aver- Ratio of outstanding orders at close of month to total age monthly sales for same period (per cent). purchases during previous calendar year (per cent). Jan. 1, 1921, to District and city. Julyl, 1920, to close of— close of— July, Aug.,Sept., Oct., Nov., Dec, Jan., Feb., MarM 1920. 1920. 1920. 1920. 1920. 1920. 1921. 1921. 1921. July, Aug.,Sept., Oct., Nov., Dec, Jan., Feb., Mar., 1920. 1920. 1920. 1920. 1920. 1920. 1921. 1921. 1921. District No. 5: Baltimore 311.8 341.6 324.5 7.2 7.9 6.5 Richmond 403.5 403.1 354.4 5.4 6.1 5.5 Washington. 351.2 370.9 341.3 3.9 4.8 4.2 Other cities 407.1 434.3 402.2 5.4 6.9 4.4 District 505.9 560.7 512.9 489.0 454.5 386.6 344.5 368.7 343.2 16.1 14.8 8.4 7.1 3.0 .2.7 6.0 6,6 5.4 District No. 6 403.9 381.6• 307.8549.1 405.3 387.3 17.4 15.6 11.0 6.9 5.8 4.9 3.1 6.1 6.4 District No. 7 ... 432.7 427.9 410.7 371.0 431.7 391.0 544.3 404.4 360.2 19.3 23.2 15.7 5.1 6.5 5.6 10.8 11.0 12.7 District No. 8... . . . 432.6 377.0 396.8 324.4 245.1 336.5 407.9 388.6 17.2 9.2 6.1 3.9 3.8 3.4 8.9 4.1 District No. 9 "13.7 9.1 12.4 11.9 18.7 4.2 5.5 5.2 District No. 10 384.1 334.0 340.4 343.3 526.8 466.3 480.8 450.3 359.2 15.6 9.7 8.8 3.1 1.9 2.3 22.1 11.8 6.4 DistrictNo.il 425.5 523.9 454.0 416.7 383.7 357.6 395.7 363.6 18.6 12.7 10.0 4.1 3.2 2.7 7.0 6.5 5.1 District No. 12: Los Angeles 522.5 454.2 486.0 462.5 478.0 432.5 354.1 355.6 353.2 22.8 15.5 12.0 9.3 7.6 10.6 6.9 11.5 10.2 San Francisco 539.9 512.8 511.5 511.9 515.8 434.3 424.2 444.6 401.5 25.9 21.1 10.8 13.6 9.6 4.3 4.4 8.2 6.9 Oakland 625.1 598.3 732.5 567.4 427.2 467.1 455.3 Sacramento 423.3 387.4 490.5 Seattle 470.2 532.7 508.0 502.5 454.5 413.7 463.0 468.1 438.6 16.3 12.2 8.6 6.4 7.0 1.6 2.7 6.0 5.6 Spokane 652.6 675.5 579.0 544.3 458.5 620.5 610.9 621.6 29.9 .1 5.2 6.3 Salt Lake City 601.4 18.7 ?, 6 District 536.5 489.6 504.0 467.3 488.5 490.7 502.4 448.2 404.7 22.3 14.2 9.5 9.8 7.0 5.8 5.4 8.6 7.8 WHOLESALE TRADE. PERCENTAGE OF INCREASE (OR DECREASE) IN NET SALES IN MARCH, 1921, AS COMPARED WITH THE PRECEDING MONTH (FEBRUARY, 1921). Groceries. Dry goods. Hardware. Bo s o h t o s e a s n . d Furniture. Drugs. Stationery. Far m m e n im ts p . le- Auto tires. District. c P e e n r t. N f b i e r u m r m o s - . f c P e e n r t. N f b i e r u m r m o s - . f c P e e n r t. N f b i e r u m r m o s - . f c P e e n r t. N f b i e r u m r m o s - . f c P e e n r t. f N b i e r u m r m o s. - f c P e e n r t. N f b i e r u m r m o s. - f c P e e n r t. N f b i e r u m r m o s. - f c P e e n r t. N f b i e r u m r m o s. - f c P e e n r t. N f b i e r u m r m s o - . f No.3 +18.6 50 +30.2 25 No.5 + 8.6 9 +14.7 8 +35.2 8 +53.4 8 -22.4 4 No.6 + 7.2 10 +35.6 13 + 6.0 8 +72.6 7 No. 10 +19.5 4 +65.5 3 No. 11 -0.7 4 + 16.1 4 -29.3 2 + 7.3 4 -i8.4 2 No. 12 +20.9 30 +28.5 11 +33.9 23 +68.4 15 + 19.7 19 + 14.3 12 + 1.3 20 +46.7 14 PERCENTAGE OF INCREASE (OR DECREASE) IN NET SALES IN MARCH, 1921, AS COMPARED WITH MARCH, 1920. Groceries. Dry goods. Hardware. Shoes. Furniture. Drugs. Stationery. Far m m e n im ts p . le- Auto tires. District. c P e e n r t. f N b i e r u m r m o s. - f c P e e n r t. N f b i e r u r m m o s - f . c P e e n r t. f N b i e r u m r m o s. - f c P e e n r t. f N b i e r u m r m o s - f . c P e e n r t. N f b i e r u r m m o s - f . c P e e n r t. N f b i e r u r m m o s - f . c P e e n r t. N f b i e r u m r m o s. - f c P e e n r t. f N b i e r u m r m o s. - f c P e e n r t. N f b i e r u m r m o s. - f No.3 -27.9 50 -19.2 25 No. 4.... -33.1 14 -14.9 6 -16.3 7 -29.2 5 No.5.... •--23.9 9 -38.3 8 -24.1 8 -25.4 8 -66.5 4 No.6.... -33.6 10 -41.7 13 -45.6 8 -37.6 7 No. 7.... -25.0 22 -35.9 13 -31.6 10 No. 10... -22.7 4 -34.3 3 No. 11.. -42.1 4 -34.0 4 -37.7 2 -29.1 4 -88.0 2 No. 12... -7.3 30 -29.1 11 -33.6 23 -16.0 16 -30.6 19 10.4 12 -9.7 24 -47.4 15 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

MAY, 1921. FEDERAL, RESERVE BULLETIN. 601 COMPARATIVE WHOLESALE PRICE LEVELS IN PRINCIPAL COUNTRIES. The foreign index numbers published below not included in the table below as it can not be are constructed by various statistical offices referred back to a definite prewar base. In the according to methods described in most cases case of the two American index numbers, 1913 in the BULLETIN for January, 1920. A descrip- is used as the basis in the original computation of the method used in the construction of tions. In the other cases in which 1913 appears the Swedish index number appeared in the as the basis for the computation the index BULLETIN for February, 1921, for the new numbers have been shifted from their original Italian index number in the April, 1921, issue bases. The computations in these cases are, of the BULLETIN, and the method used by the therefore, only approximately correct. In a Frankfurter Zeitung in the case of the German few cases July, 1914, or the year immediately index number was described in the BULLETINS preceding that, is used as the base. The figures for February and March, 1921. Complete are for the most part received by cable, and the information regarding the computation of the latest ones are subject to revision. In cases United States Bureau of Labor Statistics ap- where the index numbers were available they pears in the publications of that bureau, and a have been published for the war years in various description of the index number of the Federal issues of the BULLETIN in 1920. Reserve Board may be found in the BULLETIN In the following table the all-commodities for May, 1920. The new British index number, index numbers for the whole series of countries compiled by the Board of Trade, will be found appear together to facilitate the study of on p. 602 of this issue of the BULLETIN. It is comparative price levels. INDEX NUMBERS OF WHOLESALE PRICES (ALL COMMODITIES). Australia; ( R F U 8 S B m t e e 8 i t n o d s a e o i e a c t e s d t e o r r e r ) i v d s a m ^ d - ; e l - t B S ( a 3 U u S t t L 2 a i r t n o 8 a t e a i n i b a t s t q e s o u e t s u ) i d r c . ; o o a s f - ( U 4 S t m K d i 5 t n e o a o i s i n c m t d t ) i o g e . s i ; m d - & - t - G d B ( t F 4 i t e m e u s r i 5 a e n l t l o a i l n s e c q e d ) r o c S t u i ^ a e m i - t e t n ; a e - - c t B o i 1 a e I t a m f 9 P h t s t c 2 a e r e m h 0 r l u o r ) y i , . e f n o & ( ; . - 7 d i 3 ti 6 i 8 l - G ( Z F 7 e t m f e i 7 u r r e i m o a r t c s t n d u e a o ) k n i ^ r n m - - g y - ; ( H 4 S t t S 7 i i w a d o v 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 o J t m i p a a k e p n a y m s n k a o ) o n . f o ( " d o ; 5 f i r 6 - c C t a o i B w C o n t s m i m t u d e e e i m n r s c a m S e ) s s l o . a u t t o « ( h a u d s 9 n - i 2 - - C D m t q L i a o e 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 S ( m D 7 I t m t a i n 5 e a e l e o p t d n c c i s d a t i u s o ) a r t i t ^ o m - ; i t t c f - a - s , 1913 100 100 100 100 100 2100 100 100 1914 100 101 101 95 6 100 116 96 3100 101 4100 1915 101 126 137 133 145 97 141 110 1916 124 159 187 202 185 117 132 135 1917 176 206 262 299 244 147 6155 177 1918 196 228 339 409 339 192 170 206 1919 206 212 242 357 364 330 236 180 217 1920 233 243 291 510 624 347 259 218 246 204 1920. March . 248 253 307 555 602 1 615 354 321 209 258 198 April 263 265 313 588 664 ] find 354 300 217 261 200 Mav 264 272 305 550 660 L 714 361 272 225 263 210 j une 258 269 300 493 632 L 473 366 248 233 258 206 July. . 250 262 299 496 604 L 495 363 239 234 256 209 August 234 250 298 501 625 L 547 365 235 236 244 209 September 226 242 292 526 655 'tt9 362 230 230 241 208 October 208 225 282 502 659 1 604 346 226 215 234 206 November 190 207 263 461 670 1,670 331 221 208 225 194 December. 173 189 243 435 655 1 681 299 206 197 214 180 1921. January .. 163 178 232 407 642 1 626 267 201 196 208 178 February 154 167 215 377 613 1,495 250 195 192 199 174 March 150 162 208 360 604 1 440 237 191 181 194 183 April 154 199 344 1,429 229 190 a Average for the month. & End of month. c Middle of month. d Beginning of month but not always the first. 1 Index numbers for 1920 and thereafter based upon prices of 76 commodities. Computations arrived at by the method described on p. 465 of this BULLETIN. 2 July 1,1913, to June 30,1914=100. 3 juiv^ 1914=100. 4 End of July, 1914=100. 5 Middle of 1914=100. <* Last six months of 1917. In the following tables the index numbers for new computations only are given. These can individual groups of commodities are given not be referred back to the 1913 base and it is for each country separately. Reference should therefore impossible to compare present levels be made to the preceding table for the "all with prewar levels in these cases. No group commodities" indexes. In the case of the index numbers are compiled by the Bank of Italian group index numbers, Prof. Bachi's Japan. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

602 FEDERAL RESERVE BULLETIN. MAY, 1921. GROUP INDEX NUMBERS—UNITED STATES, BUREAU OF LABOR STATISTICS. [1913-100.] Date. Farm products. 1913 ... 1914 1915 1916 1917 1918 1919 1920 1920. March April May June July August September October November December 1921. January.. February March April Illl F e o t o c d . , C c l l o o t t h h s i n a g n . d F l u ig e h l ti a n n g d . M pr e m o ta d e l u t s a c a l ts n . d b L u u a il n m d d i b n e g r a C n h d e m dr i u ca g l s s . 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 - . material. 100 100 100 100 100 100 100 100 103 98 96 87 97 101 99 99 104 100 93 97 94 114 99 99 126 128 119 148 101 159 115 120 189 176 181 175 208 124 198 144 155 220 189 239 163 181 151 221 196 193 234 210 261 173 161 192 179 236 217 218 239 302 238 186 308 210 366 236 239 246 356 192 192 325 205 329 230 246 270 353 213 195 341 212 331 238 244 287 347 235 193 341 215 339 246 243 279 335 246 190 337 218 362 247 236 268 317 252 191 333 217 362 243 222 235 299 268 193 328 216 363 240 210 223 278 284 192 318 222 371 239 182 204 257 282 184 313 216 371 229 165 195 234 258 170 274 207 369 220 144 172 220 236 157 266 188 346 205 136 162 205 234 152 239 182 283 190 129 150 198 218 146 222 178 277 180 125 150 192 207 139 208 171 275 167 115 141 186 199 138 203 168 274 154 ALL COMMODITIES AND GROUP INDEX NUMBERS—UNITED KINGDOM, BOARD OF TRADE. [1920=100.] Other Cereals. M f a i n s e h d a . t f O o t o h d e s r . T fo o o t d a . l s I a t r e n o e d n l. m m a e n i t n d a - ls Cotton. O t t i e t l h e x s e - . r O a c t l r e h ti s e - . r T f n o o o o t d t a . l a c A l r e t l i s l - . erals. 1921. January ... 90.5 108.0 88.0 94.8 88.6 85.5 46.7 61.1 80.4 73.1 80.1 February 78.4 100.8 81.6 86.2 79.0 80.7 40.6 55.6 78.6 67.3 73.4 March 75.5 95.5 82.0 83.8 69.5 77.2 36.1 49.3 74.7 61.4 68.6 GROUP INDEX NUMBERS—UNITED KINGDOM, STATIST. [1913=100.] Date. f t V o a o e b g d le e s. - f A o m o n a d i l - s. S f t c u e e o e g a f , a - . r, s F t o uf o f d s - . e M ra i l n s - . t T il e e x s - . d S r u i n es - . M ria a l t s e . - Date. f t V o a o e b d g l s e e . - fo A m o n a d i l - s. S t c f u e e o g e a f- a , . r, s F t o uf o f d s - . e M ra in ls - . T ti e le x s - . d S r u ie n d - . M ria at l e s. - 1913 100 100 100 100 100 300 100 100 1920. 1914 110 100 107 105 90 97 105 98 July 343 278 425 325 276 298 277 283 1915 155 125 130 137 109 111 131 119 August... . 317 295 404 319 281 298 278 285 1916 . . 193 152 161 169 140 152 163 153 September 319 291 334 308 283 286 279 282 1917 252 192 213 218 152 228 212 198 October 334 290 257 302 276 261 268 266 1918 248 210 238 229 167 265 243 225 November. 308 293 238 291 265 212 253 245 1919 . . 252 215 275 238 190 271 268 243 December 257 262 212 253 254 205 248 237 1920 .. . 321 264 366 301 269 299 290 285 1921. 1920. January 234 283 192 251 225 198 230 March. 342 237 393 300 263 360 318 312 February 206 270 187 234 200 179 224 April 346 265 392 315 263 354 321 311 March. 214 262 182 232 179 171 221 May 351 244 473 318 273 308 311 298 April 212 249 180 225 176 172 199 June... 359 244 496 325 269 308 282 285 Ot 3S 193 184 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

MAT, 1921. FEDERAL RESERVE BULLETIN". 603 GROUP INDEX NUMBERS—FRANCE, GENERAL STATISTICAL BUREAU. [1913=100.] Date. f A o m o n a d i l - s. f t V o a o e b g d le e s. - c S c o a o u n c f g f o d e a a e r . , , F ( o 2 o 0) d . s e M ra i l n s - . t T il e e x s - . d S r u ie n s - . m R ( r 2 i a a a 5 t w l e ) s . - Date. f A o m o n a d i l - s.f V t o a e o b g d l e s e - . c S c o a o u c n f g f o d e a a e r . , , F ( o 2 o 0 d ). s e M ra i l n s - . t T il e e x s - . d S r u ie n s - . m R r (2 i a a a 5 t l w ) s e . - 1913 100 100 100 100 100 100 100 100 1920. 1914 103 103 106 104 98 109 99 101 501 370 405 432 469 746 500 548 1915. .. 126 126 151 131 164 132 145 145 August 515 359 399 432 475 737 524 558 1916 162 170 164 167 232 180 199 206 September 531 412 544 487 468 715 540 558 1917 215 243 201 225 271 303 302 291 October 533 421 422 469 453 637 527 528 1918 286 298 231 281 283 460 420 387 November 519 390 377 442 424 510 498 476 1919 392 313 253 336 272 444 405 373 December 515 360 355 424 385 475 471 444 1920 503 427 422 459 449 737 524 550 1921. 1920. January 483 334 337 397 341 460 445 415 March 500 516 439 498 460 884 548 600 February 452 317 338 378 300 398 422 378 April . . .. 522 511 447 506 507 953 598 653 March 406 322 367 366 289 375 382 355 Mav. 480 480 424 472 459 841 601 614 April 389 337 359 364 281 314 371 328 June... 482 400 392 434 428 734 517 540 GROUP INDEX NUMBERS-ITALY, RICCARDO BACH1. GROUP INDEX NUMBERS—GERMANY, FRANKFURTER ZEITUNG. [1920=100.] [Middle of 1914=100.] Min- Other V f t o a e o b g d l e e s - .f A o m o n a d i- l s. C ic h a e l m s. - t T il e e x s - . e m a a ra n l e s l d t s . - , m B i i u a a n i t l l g e s d . r - - d v t p a u e r b c g o t l e - s e - . d S r u ie n s - . p A ro t g u d ri r u c a c u l t l s - . T le e a x t t h il e e r s . , Minerals. la M n i e s o ce u l s - . 1920. 1920. Beginning of— Average for April 1,186 4,114 1,888 1,417 the year 100 100 100 100 100 100 100 100 May 1,178 3,243 1,860 1,417 March 93.1 82.7 96.8 115.6 104.8 82.2 102.4 92.8 June 1,125 2,670 1,528 1,642 April 102.7 83.6 110.4 130.8 115.8 96.4 99.8 104.2 July 1,283 2,561 1,552 1,625 May 102.2 92.9 122.6 101.9 113.2 101.8 97.2 107.8 August 1,309 2,643 1,566 1,617 June 100.2 101.1 112.8 90. 99.1 106.3 95. 105.7 September 1,318 2,807 1,650 1,608 July 96.8 100.3 100.0 88.3 95.5 108.4 90.2 104.9 October 1,344 2,943 1,734 1,592 August 100.7 103.4 102. 94.9 96.6 109.9 91. 101.4 November 1,450 3,025 1,678 1,658 September 104. 8 108.8 100.1 99.6 103.7 109.9 97. 102.1 December 1,555 2,698 1,636 1,625 October 107.1 108.0 103.4 97.9 106. 112.8 100.5 105.4 November 107.7 124.1 107.7 94.0 101.4 112.6 108.7 105.2 1921. December 106.9 126.4 102.8 81.9 92.7 112.6 121.8 106-8 Beginning of— 1921. January 1,353 2,643 1,678 1,575 January 106.7 120. 98.1 77.4 88.2 113.3 123.4 107.1 February 1,265 2,507 1,580 1,525 February ". 103.4 119.5 65.4 79.5 117.0 127.3 106.7 March 1,204 2,371 1,552 1,517 March 107.8 117.4 63.5 72.0 112.9 123.2 103.9 April 1,195 2,153 1,608 1,500 GROUP INDEX NUMBERS—SWEDEN, SVENSK HANDELSTIDNING. [July 1,1913-June 30,1914=100.] Date. Ve f g o e o t d a . ble A f n o i o m d. al a R g a r r i v i a c r l u s m l f t o a u r t r e e - . Coal. Metals. m Bu a i t l e d r i ia ng l. p W u o lp o . d H l i e d a e t s h e a r n . d Textiles. Oils. 1913-14 100 100 100 1C0 100 100 100 100 100 100 1914 l 136 101 114 123 109 104 118 103 111 1915 351 140 161 177 166 118 116 158 116 120 1916 152 182 180 266 272 165 233 229 166 149 1017 181 205 198 551 405 215 267 206 247 212 1918 221 419 304 856 398 275 300 195 191° 261 409 340 804 258 286 308 211 1920 262 296 312 1,007 278 371 67£ 215 324 294 1920. 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 j Aul u y cust 2 2 5 7 2 1 2 3 7 0 7 7 3 3 1 1 2 0 1 1, , 1 2 1 5 7 2 2 28 93 6 3 3 8 8 8 8 7 7 6 5 7 6 2 1 0 9 2 1 3 3 3 2 6 8 3 3 0 2 3 2 September 273 312 S08 1,085 273 388 753 180 310 340 October 258 306 309 1,026 256 390 740 166 250 340 November 264 290 303 910 253 387 609 161 233 332 December 247 283 301 602 247 362 598 156 206 328 1921. 244 266 281 371 230 320 520 131 169 328 February 231 241 248 362 204 319 511 108 147 31? Mflrco 238 229 240 279 185 298 510 85 134 268 April 232 231 236 291 178 236 510 84 125 264 * Average for § monthg ending Dec. 31,1914, Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

604 FEDERAL RESERVE BULLETIN. MAT, 1921. GROUP INDEX NUMBERS—AUSTRALIAN COMMONWEALTH, BUREAU OF CENSUS AND STATISTICS. [July, 1914=100.1 Date. Me c ta o l a s l a . nd T le e a e x t t t h c i e . le 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 o a a c n c e d c ri o e . s 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 213 207 110 116 131 155 194 243 191« 220 232 135 121 138 147 245 315 1919 193 217 186 137 147 145 261 282 1920 209 243 229 1S4 186 201 295 277 1920. March 205 281 226 162 160 126 298 April . 205 277 234 169 192 160 298 28C May 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 211 222 231 209 196 273 295 270 October 222 2?0 208 214 196 226 289 276 November 222 ISO 206 212 195 211 281 255 December 216 156 193 210 198 193 271 252 1921. I January ! 215 145 197 208 197 191 279 February ! 214 132 192 206 197 184 303 ?44 March 1 ! 203 107 176 207 198 178 303 234 GROUP INDEX NUMBERS—CANADA, DEPARTMENT OF LABOR.* [1913=100.] Date. f G o a r d 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 i e e t s - s . f O oo th 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 t m i e l r b d i i e a n r l g . s, l F i u gh el t i a n n g d . c D h c a r a e n u l m d s g . i s - 1913, 100 100 100 100 100 100 100 100 100 100 100 100 1914 114 107 100 99 104 102 105 96 101 100 94 106 1915 136 104 105 93 121 114 110 128 106 97 92 160 1916 142 121 119 130 136 148 143 167 128 100 113 222 1917 206 161 149 233 180 201 168 217 174 118 163 236 1918 231 197 168 214 213 273 169 229 213 147 188 250 1919 227 199 192 206 222 285 213 173 228 171 201 205 1920 263 198 204 261 258 303 191 203 245 268 255 1920. March 280 198 206 295 254 322 222 210 237 268 215 194 April 291 200 196 316 264 328 239 214 237 268 245 201 May 301 207 189 358 275 323 210 213 237 294 257 203 June 302 211 183 338 274 314 182 207 238 294 279 206 July 292 211 194 295 283 305 178 209 242 282 294 218 August 271 204 198 216 277 300 173 209 243 285 298 218 September... 254 202 202 190 261 296 161 207 259 273 296 217 October 229 194 207 177 249 292 156 203 259 265 295 211 November... 201 184 209 203 236 273 153 195 259 265 270 205 December... 190 179 221 189 223 251 141 178 259 252 269 201 1921. January 186 175 216 184 212 228 131 174 257 248 247 196 February 171 171 185 163 205 204 126 167 257 239 234 188 March 168 171 174 175 203 198 112 158 243 231 233 181 i Unimportant groups omitted. GROUP INDEX NUMBERS—CALCUTTA, INDIA, DEPARTMENT OF STATISTICS. [End of July, 1914=100. Date. B m ri i u a a n i l t g l s e d . - - a M r t t u f i a a r c c n e l - e u d s - . Metals. H sk a i n i d n d e s s . C m tu o f a a r t n c e t - o u s. n - co R t a to w n. m t J u f a u a r n c e te - u s. - O t t i e l t e h x s e - . r m t O a u i r l d s s - , . j R u a te w . se O ed il s. Tea. Sugar. Pulses. Cereals. f O oo th d e s r . End of July, 1914... 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 1920. Average for the year. 138 231 238 147 354 153 149 162 128 104 173 78 407 166 154 184 March 127 218 222 211 351 179 150 159 135 118 166 87 321 160 151 192 April 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 June 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 90 333 116 107 156 124 83 152 69 273 149 139 160 1921. January 158 238 247 81 324 107 104 149 116 85 130 77 314 135 139 139 February. 147 226 243 80 306 104 101 149 97 80 124 70 352 119 129 148 March 147 242 255 97 311 119 97 123 110 85 131 76 354 147 141 150 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

MAT, 1921. FEDEKAL RESEEVE BULLETIN. 605 COMPARATIVE RETAIL PRICES IN PRINCIPAL COUNTRIES. In the following table are presented statistics man's family which before the war had a yearly showing the trend of retail prices and the cost income of 2,000 kroner. of living in the United States and important The German index is that prepared by Dr. European countries. Three of these index Silbergleit, of the Berlin Statistical Office, and numbers—those for the United Kingdom, is based upon the number of marks required Paris, and Sweden—are constructed on the to purchase the minimum amount of food basis of prices in July, 1914 = 100. In the needed by one growing person weekly. case of tne United States, the original base, that of the year 1913, has been shifted to the RETAIL PRICES IN THE UNITED STATES, PARIS, AND SWEDEN; COST OF LIVING IN UNITED KINGDOM. July, 1914 base. The German index has not been computed for the prewar period, the base [July, 1914=100.] being July 15 to August 15, 1919. The American index number, constructed by U St n a i t t e e s d , U K n i i n t g e - d Paris, Sweden, the Bureau of Labor Statistics, was based upon p r r e ic ta e i s l .1 o d f o l m iv , i n c g o . s 2 t p r r e ic ta e i s l .1 p r r e i t c a e i s l . the retail prices of 22 articles of food, wdghted according to family consumption, until Janu- 1919 182 216 260 321 ary, 1921, when it was increased to 43 articles 1920 199 249 371 298 reported by dealers in 51 important cities. 1920 The method of weighting continues the same April 2 1 0 9 7 6 2 2 3 3 2 0 3 3 5 3 8 9 2 29 9 7 1 for the larger number of commodities, although Mav . ... - 211 241 378 294 215 250 369 294 the actual "weights" applied have been July- 215 252 373 297 changed. August 203 255 373 308 September 199 261 407 307 The British index number of the cost of living October ... 194 264 420 306 189 276 426 303 constructed by the Ministry of Labor consists December 175 269 424 294 of the retail prices of not onljr foodstuffs but of 1921 other articles as well. Retail clothing prices, January 169 265 410 283 155 251 382 262 rents, and the cost of fuel, lighting, and mis- March 153 241 358 253 cellaneous household items are also taken into April 233 consideration. The index number is weighted 1 Average for the month. 2 Beginning of month. according to the importance of the items in the budgets of working-class families. WEEKLY COST OF FOOD PER PERSON IN BERLIN. The retail price index for Paris, compiled by [July 15-Aug. 15,1919-100.] the French General Statistical Office, consists 1920 (average) 239 February 237 of retail prices of 13 different commodities, March 255 weighted according to the average annual con- April 269 sumption of a working man's family of four May 264 persons. Eleven of the commodities included June 255 in this index are foods, and the other two are July 235 August 215 kerosene and alcohol. September 217 The Swedish index number consists of the October 226 retail prices of foodstuffs, fuel, and lighting November 227 and is based upon the prices of 51 articles in December 232 1921: 44 towns (in 1920, 50 articles in 49 towns), January 231 weighted according to the budget of a working February 219 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

606 FEDERAL, RESERVE BULLETIN. MAT, 1921. FOREIGN TRADE—UNITED KINGDOM, FRANCE, ITALY, SWEDEN, AND JAPAN. In the following table are presented figures None of the figures presented below include showing the monthly value of the foreign trade the import or export of gold and silver. In the of a group of important European countries case of England and France, group figures are and Japan. Similar statistics for Germany are given as well as total values, while in the case not available. Currencies have not been con- of the other countries, total values only are verted to a common unit, nor are methods of presented. This does not mean that group valuation the same in all countries. In Eng- figures are not obtainable, merely that they are land, imports are given current c. i. f. values either delayed in publication or appear not to in England; exports and reexports, current be of such general interest as the French and f. o. b. values. The same method is followed English material. in Japan and Sweden. In France and Italy, Japanese figures for recent months are reon the other hand, the value of foreign trade ceived by cable and subject to revision. is estimated not in terms of current prices but in terms of those of some earlier datej usually the preceding year. FOREIGN TRADE OF UNITED KINGDOM. [In thousands of pounds sterling.] Imports. Exports. Raw Raw to d F b a r o a i n o n c d d k c , , o. m u a m n a r m a t a t i e n i c a r n d l i n e l a y u s l - s f w A a m m c h r a t a o t u i i n l n c r l u y e l l e y - d o s . r i M n n p c p i e a s l o o r u c s c u e d t e l s . i l l , n a g - Total. to d F b a r o a i n o n c d d k c , , o. m u m a n a r m a a t ti e n i c a r n d l i n e l a y u s ls - f w A a m m h c r a t o a t u i i l n c n r ly u l e l e y - d o s . r i M n n p c i e a s l o r u c c e u d e l s i l l , n a g - Total. ex R po e r - ts. factured. factured. 1913 monthly average. 24,184 23,485 16,134 259 64,061 2,716 5,825 34,281 949 43,770 9,131 1919 monthly average. 59,927 50,565 24,663 358 135,513 2,814 9,274 53,457 1,008 66,553 13,729 1920 monthly average. 63,948 59,292 37,902 254 161,395 4,241 12,138 93,394 1,528 111,297 18,701 March 61,808 76,540 38,156 144 176,648 4,280 14,482 83,287 1,551 103,699 27,031 April 57,387 71,587 38,050 131 167,154 3,959 12,194 1,410 106,252 20,407 May 64,993 60,509 40,580 252 166,334 4,020 13,211 100,727 1,361 119,319 20,260 June 67,566 57,919 44,681 325 170,491 4,313 11,447 99,081 1,512 116,352 20,124 July 69,571 51,899 41,923 450 163,842 4,515 12,551 118,954 1,432 137,452 17,848 August 61,785 51,268 40,016 185 153,255 3,503 10,467 99,645 1,288 114,903 13,368 September 67,269 44,557 40,573 293 152,692 4,311 9,515 102,216 1,415 117,456 13,351 October 69,168 44,299 36,267 156 149,889 4,678 9,632 95,701 2,285 112,295 16,134 November 61,499 46,560 35,955 246 144,260 4,723 9,399 103,694 1,548 119,365 13,115 December 59,378 48,613 34,553 241 142,785 3,842 12,277 78,819 1,694 96,631 12,699 1921. January.. 49,158 37,005 30,467 420 117,051 3,852 7,668 79,746 1,491 92,756 9,955 February. 47,750 25,504 23,394 326 96,974 3,075 5,881 58,177 1,089 68,222 8,004 March 50,888 17,739 24,930 184 93,742 2,897 5,832 56,969 1,111 66,809 8,888 April i.... 89,996 59,868 8,524 i These figures are provisional. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

MAT, 1921. FEDERAL RESERVE BULLETIN". 607 FOREIGN TRADE OF FRANCE.! [In thousands of francs.] Imports. Exports. Food. ma R te a r w ials. f a a M r c ti t a c u n l r u e e s - d . Total. Food. ma R te a r w ials. f a a M r c ti t a c u n l r u e e - s d . P p a o r s c t e . l Total. 1913 monthly average2. 151,465 412,144 138,169 701,778 154,841 301,420 47,182 573,351 1919 monthly average8. 892,040 1,229,434 861,797 2,983,272 99,201 203,691 615,630 71,444 989,966 1920 monthly average3. 718,179 1,400,046 832,187 2,950,413 184,277 397,677 1,187,742 99,867 1,869,563 1920. March 871,857 1,478,987 772,007 3,122,851 114,223 349,521 834,031 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 2,386,696 103,355 348,361 726,654 31,658 1,210,028 June * 558,951 1,302,867 726,856 2,588,674 216,849 421,735 1,100,931 69,862 1,809,377 Julys August6... 723,749 1,171,091 905,613 2,800,453 210,888 440,482 1,631,883 116,255 2,399,508 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.. 672,861 1,548,681 726,715 2,948,257 218,626 366,981 929,222 146,067 1,660,896 1921. January... 346,703 1,101,267 534,498 1,982,468 188,546 436,069 1,142,398 115,605 1,882,618 February. 386,169 803,231 424,531 1,613,931 172,992 478,561 1,162,817 85,074 1,899,444 March 455,545 786,352 501,011 1,742,908 162,901 379,281 1,035,826 108,418 1,686,426 1 Not including gold, silver, or the reexport trade. 2 Calculated in 1913 value units. 8 Calculated in 1919 value units. 4 February-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 last year, however, it was not until July that the 1919 price units were decided upon and applied. 5 Monthly French foreign trade figures are published only in cumulative form, and as the value rates used were changed in July it is impossible to give separate figures for that month. e August, 1920, through March, 1921, figures calculated in 1919 value units. FOREIGN TRADE OF ITALY, SWEDEN, AND JAPAN. Italy. Sweden. Japan. (In millions of (In millions of (In millions of lire.i) kroner.) yen.) Imports. Exports. Imports. Exports. Imports. Exports. 1913, monthly average 304 210 71 68 61 53 1919, monthly average 1,385 506 211 131 181 175 1920^ monthly average 1,322 650 281 191 195 162 1920. January. 1,002 497 238 127 205 176 February 1,141 616 282 106 271 174 March 1,431 683 301 151 329 194 April 1,363 679 267 164 297 217 May 1,401 66?, 314 227 296 193 June 2,076 752 283 220 184 July 1,040 521 331 268 157 154 August 1,249 532 308 230 123 175 September 1,202 570 325 ?,33 118 154 October 1,126 707 299 218 108 134 November .. 1,240 731 228 177 108 105 December 1,591 853 197 171 105 87 1921. 122 91 2 105 2 75 2 116 2 89 2 119 2 137 2 94 11920 figures based on 1919 prices. 2 Provisional. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

608 FEDERAL RESERVE BULLETIN. MAT, 1921. FINANCIAL STATISTICS FOR ENGLAND, FRANCE, ITALY, GERMANY, SWEDEN, AND JAPAN. A summary of banking and financial conditions abroad is presented statistically in the accompanying tables. Similar material will be published regularly each month in the BULLETIN. BRITISH FINANCIAL SITUATION. [Amounts in millions of pounds sterling.] Deposit E a n n g d la n n o d t e a n ac d c T ou re n a ts s , u B ry a . nk of Government floating debt. Nine London clearing banks.8 Discount rates. Currency notes De- Money n B o a te n s k .1 c c e a o a r n u t t i e d t f - s i- p p o o a u th n s b i e d l t i r s c . , bu C a l n o li i d o n ns T b u r i e l r l a y s s . - r T v a a e r n m y c p a e d o s. - - fl T d o e o a b t t a i t n . l g n a s o a h t t n o i c c d r a e t l . l a v c n a o D d n u is c n a - e t d s s - . I m nv en es ts t- . po D s e i - ts. 3 m b b a o il n n ls k t . hs'6 m t b r o i a l n l d s t e . hs' standing. 1913, average of end Per cent. Per cent. of month figures... 29 57 38 4i 1920, end of— March.. 99 335 137 141 1,107 205 1,312 5j i6# April 101 337 140 141 1,048 249 1,297 ft Mav 104 348 118 141 1,062 221 1,283 ft| June 107 357 192 146 1,050 244 1,294 ft July 107 362 134 152 1,058 204 1,262 6- August 106 356 116 152 1,067 183 1,250 September 109 354 127 152 1,139 143 1,282 October 109 356 137 152 1,028 241 1,269 6: November 109 349 123 153 1,097 231 1,328 &l 7 December 113 368 190 157 1,102 306 1,408 61 ! 1921: J F a e n b u r a u r a y ry 1 1 0 0 8 9 3 3 3 4 6 2 1 1 2 2 9 7 1 1 5 5 7 7 1 1 , ,1 1 1 4 0 5 2 1 4 8 2 9 1 1, , 2 3 9 8 9 7 9 8 9 8 1 1 , , 1 2 7 0 2 7 3 34 1 0 7 1 1 , , 7 8 5 1 4 0 I6i 110 344 138 157 1,121 155 1,275 83 1,145 336 1,715 April 109 338 141 157 1 Less notes in currency note account. 2 Held by the Bank of England and by the treasury as note reserve. 3 Average weekly figures. FRENCH FINANCIAL SITUATION. [Amounts in millions of francs.] Bank of France. Situation of the Government. Advances to the Gold. re S s i e l r v v e e r s. D i e t p s. o i s- C t i i r o cu n l . a- p m G u e o rp n v o t e r s f n o e - s r r G e m v o e e v n n e t u r n 8 e - . P d u e b b l t i . c p 3 P e p r r e i p c r e e c t u e o n a f l t of the rente. war.2 1913, average.. 3,343 629 830 5,565 320 35,000 86.77 1920, end of— March <3,606 247 4,039 37,569 26,300 859 58. S^ April ^3,608 244 3,469 25,300 1,057 57.40 May 43,609 240 3,751 37,915 26,050 857 59.35 June <3,610 241 3,653 37,544 26,000 908 57.25 July * 3,611 248 3,416 37,696 25,550 1,109 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 5 285,836 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. 6 3,552 266 3,575 37,902 26,600 1,168 57 95 1921: January... 6 3,553 268 3,429 37,913 25,600 1,204 59.16 February.. 6 3,555 264 3,293 37,808 25,600 921 ^302,735 58.15 March 6 3,556 267 3,103 38,435 26,200 972 58.17 April 6 3,566 271 3,018 38,211 26,000 56,92 i Includes Treasury and individual deposits. 6 Foreign debt calculated at the exchange rates of Sept. 30,1920. * Under the laws of Aug. 5 and Dec. 26,1914, July 10,1915, and Feb. 16,1917. • Not including about 1,948 million francs held abroad. »From indirect taxation and Government monopolies. 7 Foreign debt calculated at the exchange rates of Feb. 28,1921. 4 Not including about 1,978 million francs held abroad. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

MAT, 1921. FEDERAL, RESERVE BTJIXETIN. 609 ITALIAN FINANCIAL SITUATION. [In millions of lire.] Leading private banks.1 Banks of issue. Government finances. Principal reve- Loans, nues Cash. c s c o p e a d o u n o n i r s n n t r d - s e d t ' s - - , c i D s t c r e p s o e e n o p r d a n t r o n i s e d t s ' d s - - - . c L o a d o u n i a s n d - n ts s . s G e r r e o v - l e d . s T e r o r e v t - a e l . i D l m t i s t a e d i a b e p e a n - s i o n l d . s i d - - l c C a m c i t r o i i e c a o m r u l n - - - . C a ti c o s o i c r t f n c a o t u t u h f e l o n a e . r t - n r S e c o t n u t a e c r t - s e y . m T l s i e u r c e r e r t v a y a r e e s l - . - - S t b t r u e h e i r r l o a l m y r s s t - . - p T d u e o b b t l a t i . l c n t f t a m a r o i o n x o p o m d a n - o - debts. lies during month.* End of December,1913 129 2,007 1,674 857 1,375 1,661 318 2,284 499 117 1920. January 825 13,054 12,094 4,173 1,038 2,021 2,376 4,920 2,345 338 February 749 13,571 12,629 4,671 1,038 2,047 2,224 4,848 March 818 14,421 13,397 5,322 1,028 2,053 2,296 5,478 April 850 14,884 14,045 5,804 1,038 2,035 2,377 6,029 May 813 15,240 14,044 5,782 1,038 2,065 2,264 6,459 June 874 14,996 14,060 6,784 1,039 2,110 2,379 7,484 2,538 343 9,300 95,000 July 864 14,924 14,131 6,576 1,039 2,113 2,196 7,615 9,800 561 August 872 15,177 14,457 6,233 1,039 2,172 2,276 7,413 *2~546 '34*9 10,200 878 September 942 15,653 14,824 6,628 1,039 2,217 2,494 8,231 10,300 461 October 1,035 15,700 14,909 7,083 1,058 2,082 2,337 8,361 2,546 10,700 99,000 1,268 N De o c v e e m m b b e e r r 1 1 , , 2 0 9 9 7 7 1 1 6 6 , , 0 5 0 3 3 8 1 15 5 , , 8 3 0 1 1 5 6 7, , 0 3 7 9 4 7 1 1 , , 0 0 5 5 8 8 2 2, , 0 0 7 6 7 9 2 2 , , 5 5 8 5 9 9 8 8 , , 5 9 7 8 7 8 1 1 3 1 , , 2 7 0 0 0 0 ioi,"666 1,2 5 2 6 2 3 January 1,184 17,113 16,392 6,931 1,058 2,635 (3) 822 February 1,012 16,842 15,961 7,158 1,059 2,221 1,210 * Banca Commerciale Italiana, Banca Italiana di Sconto, Credito Italiano, Banco di Roma. 2 Revenues from state railways; from post, telegraph, and telephones; from state domain; from import duties on grain; and from Government sales of sugar are not included, a Combined circulation, 19,264. < Combined circulation, 18,926. GERMAN FINANCIAL SITUATION. [Amounts in millions of marks.] Reichsbank statistics. Situation of the Government. Reserve. Darlehns- Index • kassen- Receipts number scheine in from of securi- Gold. D R a u r e l n i e c d h h n s s- c l i a N r t c i o u o t l n e a . - Deposits, ci t r i c o u n l . a- t G a m x m o o e v n e s e n o a r p t n n - - d Fl d o e a b ti t n . g 3 im p lo e p a r e n r c . i e i a n l t5 l p o w e a r a n c r .i ent pr t i i c e e s s.2 olies. scheine. 1913 average... 1,068 32 1,958 668 265 75.90 1920, end of— March 1,091 13,972 45,170 18,498 13,731 77.00 97,20 3 139 April 1,092 15,193 47,940 16,499 13,776 2,072 74.50 98.75 4 133 May 1,092 15,907 50,017 17,024 13,567 2,599 67.50 98.70 5 109 June 1,092 17,252 53,975 23,414 13,633 3,227 141,987 62.90 « 117 July 1,092 17,874 55,969 17,282 13,328 3,739 60.64 98.50 7 140 August 1,092 18,686 58,401 15,772 13,266 3,635 148,750 60.80 98.70 148 September. 1,092 19,861 61,735 20,054 13,348 4,126 156,825 62.25 99.90 161 October... 1,092 21,341 63,596 17,945 13,024 5,121 161,920 66.25 99.00 172 November. 1,092 20,363 64,284 17,340 12,370 6,130 165,918 68.60 98.75 179 December. 1,092 23,417 22,327 12,033 9,103 65.75 98.90 1921, end of— January... 1,092 22,810 66,621 15,834 11,341 8,721 67.00 99.50 179 February.. 1,092 21,982 67,427 17,357 10,755 67.25 99.75 155 March 1,092 23,836 69,417 28,043 10,168 67.60 99.70 8 161 1 Quotations of the Berlin Bourse. 3 Calculated by the Frankfurter Zeitung with the prices of 10 bonds and 25 stocks. Prices as of Jan. 1,1920=100. 8 As of Apr. 5. • As of May 3. «As of June 1. « As of July 1. 7 As of Aug. 2. s As of Apr. 2. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

610 FEDERAL RESERVE BULLETIN. MAY, 1921. SWEDISH FINANCIAL SITUATION. [In millions of kronor.] Riksbank. Joint stock banks. Riksbank. Joint stock banks. Bills Bills G b o u a l l d n li d c o o n i . n ci N t r i c o o u n t l e . a- w co R i d t u i h i n k s t - s t e h - d e a c L n o d o u a n d n t i s s s . - G b o u a l l d n li d o co n i . n ci N t r i c o o u n t l e . a- w co R i d t u h i i n k s t - t s e h - d e a c L n o d o u a n d n t i s s s . bank. bank. 1913, end of December 102.1 234.5 155.2 2,286.9 1920, end of—Continued: 1920, end of: October 282.4 772.8 503.4 6,079.0 March 261.1 741.6 507.4 5,877.4 November 282.4 752.8 447.2 6,117.8 April 261.0 718.3 497.7 5,969.4 December 281.8 759.9 451.3 6,211.3 May 261.0 708.3 473.5 5,998.6 1921—January 281.9 672.5 431.2 6,172.6 June 261.1 736.5 531.1 5,982.9 February 281.8 687.6 452.7 6,119. 2 July 261.3 724.8 514.2 6,028.9 March 281.7 716.9 445.7 6,093.6 August 261.4 742.2 567.8 6,007.4 Aprin...., 281.8 680.5 442.2 6,065.3 September 279.8 779.8 547.0 6,068.7 1 Provisional. JAPANESE FINANCIAL SITUATION. [Amounts in millions of yen.] Bank of Japan. Tokyo banks. Tokyo a d e P n r e n r p d i m o v G s a e i t o n t e s v t . - a c L n o d o u a n d n t i s s s . - ci N t r i c o o u n t l e . a- re S s p e e r c v i e e .2 as b T s l t o o a o o a c n k t i n k a y a s l s t o . e , d I j c w l ( e b t t a i a o h t r n h t i e n a k in l gs m d A ( i T a v s r c o r e a o k r k t a e u e y g n t o ) e t . month). 1920. End of—1 Per cent. January ,167 305 1,375 944 1,929 3,063 9.38 February ,146 336 1,360 937 2,022 3,532 9.67 March ,181 364 1,368 921 1,982 4,135 10.15 April ,261 432 1,367 917 1,982 3,168 10.62 May ,209 445 1,328 930 2,089 2,922 10.95 June ,165 381 1,349 979 2,036 2,524 10.99 July ,120 273 1,202 1,011 2,029 2,109 10.95 August ,202 278 1,217 1,040 2,014 2,139 10.80 September ,079 180 1,170 1,078 2,076 2,032 10.59 October ,048 164 1,192 1,117 2,133 1,922 10.48 November ,137 128 1,180 1,152 2,134 2,302 10.44 December ,040 158 1,439 1,247 2,137 2,841 10.26 1921. January 1,071 115 1,235 1,235 2,171 2,013 10.33 February 1,126 103 1,141 1,141 2,188 2,143 9.71 March 81,159 3 92 3 1,056 4 1,852 2,502 1 In case of Tokyo banks, and note circulation and specie reserve of Bank of Japan, last day of month. 2 It is generally understood that in recent years a certain portion of the reserve has been held abroad. Specie reserve figures do not include bank's own notes held in the bank. a Mar. 5. < Mar. 26. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

MAY, 1921. FEDEKAL BESERVE BULLETIN. 611 CONDITION OF PRINCIPAL EUROPEAN BANKS OF ISSUE. BANK OF ITALY* [From annual reports and weekly statements of the Bank of Italy.] [In thousands of dollars.] Dec. 31, Dec. 31, Dec. 31, Dec. 31, Dec. 31, Dec. 31, Dec. 31, 1914. 1915. 1916. 1917. 1918. 1919. 1920. Gold 215,810 207,931 173,639 161,320 157,827 155,331 158,128 Silver 20,823 20,227 14,023 16,870 14,890 14,494 14,472 Total metallic reserve 236,633 228,158 187,662 178,190 172,717 169,825 172,600 Notes of Italian Government and of other, including I foreign, banks of issue I 11,150 20,112 27,504 34,591 65,322 103,150 85,218 Other cash and cash equivalents 3,287 2,724 4,971 6,173 8,201 773 547 Bills payable in Italy 136,227 91,430 104,187 146,127 171,159 261,692 609,652 Bills payable in foreign countries, including foreign treasury bills 16,804 4,034 4,016 4,270 60,871 4,163 3,992 Bills payable, received for collection 4,648 4,893 3,946 680 2,106 1,730 2,290 Advances, ordinary 29,181 37,168 59,254 84,222 147,202 263,507 442,773 Advances to the Government or for account of the Government 100,131 310,447 353,335 835,136 1,012,260 1,499,991 1,551,087 Securities : 39,486 39,549 42,414 43,063 39,543 41,045 41,336 Debtors in current account: In Italy 7,725 2,118 2,139 2,404 73,682 ' 71,320 218,165 In foreign countries 8,195 28,652 74,592 90,309 149,645 148,987 150,045 Bank premises 5,364 5,500 5,647 5,462 5,643 5,755 6,760 In fiscal account with the Government and provincial administration 1,703 1,399 18,384 48,705 100,191 67,266 Sundry assets 33,871 82,446 141,661 774,237 452,513 512,651 324,649 Total. 633,690 858,934 1,012,727 2,223,248 2,409,569 3,184,780 3,676,380 LIABILITIES. Capital 34,740 34,740 34,740 34,740 34,740 34,740 34,740 Surplus 9,264 9,264 9,264 9,264 9,264 9,264 9,264 Extraordinary and special reserves 2,321 2,321 3,382 5,587 8,998 13,243 15,349 Circulation: For account of commerce 417,353 276,299 394,877 426,929 767,848 949,522 1,428,238 For account of Government 310,460 353,335 835,136 1,012,260 1,499,991 1,551,087 Demand and time deposits 106,135 143,956 167,125 279,672 308,155 402,376 401,743 In fiscal account with the Government and provincial administration 40,320 21,660 16,648 56,033 51,329 8,651 68,484 Sundry liabilities 23,557 60,234 33,356 575,887 216,975 167,475 Total 633,690 858,934 1,012,727 2,223,248 2,409,569 3,184,780 3,676,380 Ratio of metallic reserve to deposit and note liabilities combined, per cent 45.20 31.22 20.50 11.56 8.27 5.95 5.10 BANK OF NORWAY. [From the annual reports and monthly statements of the Bank of Norway.] [In thousands of dollars.] Dec. 31, Dec. 31, Dec. 31, Dec. 31, Dec. 31, Dec. 31, Dec. 31, 1914. 1915. 1916. 1917. 1918. 1919. 1920. ASSETS. Gold in vault 10,290 13,837 33,027 31,193 32,691 39,590 39,472 Total metallic reserve 10,290 13,837 33,027 31,193 32,691 39,590 39,472 Held with Scandinavian banks of issue 892 4,191 828 902 866 1,279 Held with other foreign agencies 7,473 16,948 21,227 20,615 18,703 19,140 15,623 Loans and discounts, domestic 32,066 23,140 42,802 109,822 116,269 106,686 130,003 Foreign bills 216 83 148 178 64 31 Real estate loans 404 371 337 296 267 244 219 Securities 2,402 3,590 3,602 3,508 3,543 2,831 2,433 Sundry assets 1,753 651 2,006 225 11,120 Total 55,496 62,811 103,977 166,739 172,691 173,494 198, 881 LIABILITIES. Capital 6,700 6,700 6,700 9,380 9,380 9,380 9,380 Surplus 3,581 3,201 3,069 4,654 4,569 4,120 3,752 Notes in circulation 35,961 43,473 69,105 87,454 116,905 121,747 133,272 Deposits 5,666 7,309 22,326 60,689 34,178 29,411 35,721 Sundry liabilities 3,588 2,127 2,777 4,562 7,659 16,756 Total 55,496 62,811 103,977 166,739 172,691 173,494 Ratio of metallic reserve to deposit and note liabilities combined—per cent 24.72 27.25 36.12 21.06 21.64 26.19 23.36 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

612 FEDERAL RESERVE BULLETIN. MAT, 1921. BANK OF COPENHAGEN (DENMARK). [From monthly statements of the Bank of Denmark.] [In thousands of dollars.] Dec. 31, Dec. 31, Dec. 31, Dec 31, Dec. 31, Dec. 31, Dec. 31, 1914. 1915. 1916. 1917. 1918. 1919. 1920. ASSETS. Gold coin and bullion 24,506 29,833 42,847 46,611 52,159 60,807 60,992 Silver and other metallic reserve 908 829 448 660 654 887 698 Total metallic reserve . - 25,414 30,662 43,295 47,271 52,813 61,694 61,690 Foreign credits 11,245 12,038 24,003 7,912 2,520 Danish Government securities . . .. 8,492 7,204 4,463 11,318 9,752 Other Danish securities 1,641 1,720 2,602 3,094 2,872 Foreign Government securities 2,449 2,311 1,071 1,141 1,095 Notes of and credits with other banks of issue 13 8 7,933 6,839 8,608 Domestic bills 15,335 9,000 15,013 47,411 50,317 Foreign bills ••;*•*; •;•"::":::: 2,790 2,655 2,518 4,082 971 Loans and discounts I 6,246 5,864 6,566 14,352 14,155 Real estate . 664 819 792 814 '828 Other assets 20,874 41,119 47,016 43,781 62,179 Total 113,044 130,009 164,790 202,438 214,987 LIABILITIES. Capital 7,236 7,236 7,236 7,236 7,236 Surplus and special reserves 2,732 4,001 5,293 7,301 8,575 Notes in circulation 55,376 59,081 76 344 90,547 120,609 131,145 149,197 Government deposits 918 889 859 827 795 Current account deposits 16,313 14,734 26,619 19,275 17,476 Other deposits 7,657 11,671 3,928 36,279 31,452 Due to foreign central banks of issue .... 1,532 771 Profit and loss 134 134 134 134 134 Other liabilities 178 26 112 241 122 Total 113,044 130,009 164,790 202,438 214,987 Ratio of metallic reserve to deposit and note liabilities combined—percent 42.77 40.11 34.74 32.90 31.01 I BANK OF SWEDEN. [From the Bank of Sweden's year book and weekly statements.] [In thousands of dollars.] Dec. 31, Dec. 31, Dec. 31, Dec. 31, Dec. 31, Dec. 31, Dec. 31, 1914. 1915. 1916. 1917. 1918. 1919. 1920. ASSETS. Gold coin and bullion 29,088 33,385 49,183 65,515 76,532 75,351 75,516 Silver and other metallic reserve 506 572 627 272 732 Total metallic reserve 29,594 33,957 49,810 65,944 76,630 75,623 76,248 Checks and sight drafts, including foreign 3,572 4,832 4,602 6,756 9,504 10,146 13,039 Current account deposits held abroad 4,489 13,691 10,471 5,132 12,239 13,065 19,714 Government securities 13,978 16,860 16,041 14,638 12,959 3,403 Securities of domestic corporations 1,430 1,525 1,485 1,352 1,352 1,203 Bills payable in Sweden 46,883 30,450 32,595 49,940 75,122 121,503 145,038 Bills payable abroad 11,631 24,426 32,807 29,515 18,892 17,950 8,397 Advances in current account 671 613 669 374 322 369 302 Other advances 11,442 6,668 14,177 32,507 48,386 27,173 4,260 Sundry assets 19,289 17,142 17,792 22,788 24,739 8,029 1,091 Total 134,962 147,187 181,308 230,482 281,824 288,169 272,695 LIABILITIES. Capital 13,400 13,400 13,400 13,400 13,400 13,400 13,400 Surplus 3,350 3,350 3,350 3,350 3,350 3,350 3,350 Deposits 28,983 34,590 46,399 52,916 37,902 57,278 45,967 Due to foreign banks 2,417 2,668 1,289 518 85 1,344 1,312 Notes in circulation 81,488 87,874 111, 895 153,490 218,027 200,347 203,647 Bank orders 549 699 964 2,364 3,076 2,774 1,437 Dividends due and payable to the Government 2,358 2,348 2,176 Sundry liabilities 2,417 2,258 1,835 4,444 5,984 9,676 3,582 Total 134,962 147,187 | 181,308 230,482 281,824 288,169 272,695 Ratio of metallic reserve to deposit and note liabilities combined, per cent 26.77 27.73 I 31.47 31.95 29.94 29.35 30.55 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

MA?, 1921. FEDEEAL RESEEVE BULLETIN. 613 DISCOUNT AND OPEN-MARKET OPERATIONS OF FEDERAL RESERVE BANKS. DISCOUNTS. It will be noted that, as a result of a large in- Discount operations of the Federal Reserve crease in average maturity, namely, from 9.53 Banks during March and February, 1921 and to 12.38 days, volume of discounts on the daily 1920, are shown in summary form for the entire basis shows an increase of 6 per cent, in spite system in the table below. Detailed figures of a decrease in the total volume of business of for each Federal Reserve Bank for the most 10 per cent. The greatest increases in average recent month are given on pages 615 to 617. maturity are shown for the Cleveland and Chicago banks, the average for the former hav- VOLUME OF DISCOUNT OPERATIONS. ing increased from 9.4 days in February to fin thousands of dollars.] 14.74 days in March, and for the latter from 33.5 days to 41.13 days. Longer average ma- 1921 1920 turities of discounted paper are shown for all the districts, except the Richmond, St. Louis, March. February. March. February. and San Francisco districts. Decreases between February and March are Total 7.368,268 8,120,849 6,970,331 6,517.439 noted in the volume of discounts secured by Secured by Government United States obligations, as well as in all other obligations 3,519,797 3,856,306 5,298,884 5,514,279 C therwise secured and un- discounts. Of this latter class of paper, comsecured—Total 3,818,471 4,264,543 1,671,447 973,160 Commercial paper, n. mercial paper, n. e. s., shows a decline from e s 3,709,669 4,187,059 1,613,530 933,557 $4,187,000,000 to $3,710,000,000, while agri- Agricultural paper 59,129 46,263 Live-stock paper 26,451 11,808 cultural paper increased from $46,000,000 to Trade acceptances— Total 11,709 13,256 23,383 10,992 $59,000,000, and live-stock paper from $12,000,- Domestic 11,620 12,799 000 to $26,000,000. Discounted trade accept- Foreign 89 457 Bankers' accept- ances show a decline from $13,000,000 to an d ce o s m — es T t o ic tal 1 4 1 , , 8 5 0 1 9 3 6 2 , , 1 9 5 0 9 7 34,534 28,611 $12,000,000, while discounted bankers7 accept- Foreign 6,704 3,752 ances increased from $6,000,000 to $12,000,000. Average maturity (in days) 12.38 9.53 13.77 12.26 The rate of discount charged in March was Average rate (365-day basis), per cen t 6.43 6.41 5.64 5.52 slightly higher on the average than that for February—6.43 per cent as compared with Discount operations during March aggre- 6.41 per cent. gated $7,368,000,000, a decrease of $753,000,- Following is a summary of holdings of dis- 000 from the total of $8,121,000,000 reported counted bills at the end of March and Febfor February, but an increase of $398,000,000 ruary, 1921 and 1920. Detailed figures for over the amount shown for March, 1920. each Federal Reserve Bank are shown on Volume of discounts reduced to a daily basis page 618. by the method explained in the BULLETIN for April, 1921, page 466, together with average HOLDINGS OF DISCOUNTED BILLS. maturity, is shown for each Federal Keserve [In thousands of dollars.] district for March and for February in the table below: 1921 1920 VOLUME OF DISCOUNTS REDUCED TO DAILY BASIS. Mar. 31. Feb. 28. Mar. 26. Feb. 27. Volume of dis- Average matu- Volume on c m o i u ll n i t o s n ( s i ) n . rity (in days). (i d n a m ily i ll b i a o s n i s s ). Total 2,233,054 2,389,510 2,449,230 2,453,511 Federal Reserve Bank. Secured by United States Government obligations. 970,911 997,968 1,441,015 1,572,980 March. ru F a eb ry - . March. ru F a e r b y - . March. ru F a eb ry - . O s th e e c r u w re i d se — se T c o u t r a e l d and un- 1,262,143 1,391,542 1,008,215 880,531 Commercial and in- All banks 7,368 8,121 12.38 9.53 2,943 2,765 dustrial paper, n.e. s. 1,010,891 1,140,826 861,848 755,750 Agricultural paper 140,987 136,679 29,321 30,125 Boston 732 524 8.86 7.89 209 148 Live-stock paper 81,693 83,654 45,344 37,070 New York 4,272 5,631 6.41 5.51 883 1,109 Trade acceptances- Philadelphia 399 310 12.56 12.70 162 140 Total 15,520 16,962 20,813 18,508 Cleveland. 279 381 14.74 9.40 133 128 Richmond 299 12.89 12.99 124 105 Foreign trade 256 540 \tlanta 164 150 26.50 25.81 140 138 Domestic trade 15,264 16,422 Chicago 519 387 41.13 33.50 689 463 Bankers' acceptances- St Louis 154 24.33 26.43 121 115 Total 13,052 13,421 50,889 39,078 Minneapolis 66 69 36.55 32.66 78 81 Kansas City 111 91 32.86 30.79 118 100 Foreign trade 8,787 10,335 Dallas 74 67 32.86 31.62 78 76 Domestic trade 4,183 3,086 San Francisco 299 164 21.55 27.77 208 162 Dollar exchange... 82 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

614 FEDERAL RESERVE BULLETIN. MAY, 1921. BANES ACCOMMODATED. totals are shown for all classes of bills pur- During the month of March 34 banks were chased, bankers' acceptances declining from added to the membership of the system, the $167,000,000 to $149,000,000 and trade actotal number of member banks increasing ceptances from $2,000,000 to a little over from 9,681 to 9,715. The number of banks $500,000. Of the bankers' acceptances puraccommodated in February was 5,107 and in chased in March about two-thirds and of the March 5,332, so that the percentage of banks trade acceptances the entire amount were bills accommodated was 54.9 per cent in March, drawn in the foreign trade. The average maturity of acceptances declined from 36.98 as against 52.8 per cent in February, the days in February to 33.99 days in March, increases being general throughout the system. while the average rate of interest remained The number of member banks in each district unchanged at 6.01 per cent. at the end of March and of February, and the number and percentage accommodated during The following table shows the volume of each of the two months are shown in the acceptances purchased by each of the Federal following statement: Reserve Banks, reduced to a daily basis: VOLUME OF OPEN-MARKET PURCHASES REDUCED TO Member banks Member banks Percentage in district. accommodated. accommodated. DAILY BASIS. Federal Reserve Bank. Mar. 31.1 Feb. 28 March. r F ua e r b y - . March. r F ua e r b y - . Vo c l h u a m s e e s o ( f i p n ur- Ave t r u a r g i e ty ma- V d o ai l l u y m b e a s o i n s Federal Reserve millions). (in days). (in millions). Bank. B N o ew st o Y n ork.... 4 7 3 8 6 8 7 4 8 3 8 9 3 2 4 5 9 7 3 2 1 2 6 5 4 5 4 8 . . 3 9 4 5 0 1 . . 6 3 Mar. Feb. Mar. Feb. Mar. Feb. Philadelphia.. 701 701 330 318 47.1 45.4 Cleveland 875 874 261 237 29.8 27.1 Richmond 612 611 347 335 56.7 54.8 All banks 149 169 33.99 36.98 164 224 Atlanta 484 472 355 340 73.3 72.0 Chicago 1,425 1,425 922 908 64.7 63.7 Boston 24 23 19.57 19.46 15 16 St. Louis 578 575 306 299 52.9 52.0 New York 78 58 29.89 25.31 75 52 Minneapolis... 1,011 1,005 589 589 58.3 58.6 Philadelphia 9 11 40.13 49.80 12 20 Kansas City... 1,094 1,093 585 561 53.5 51.4 Cleveland 11 27 44.65 49.50 16 49 Dallas 855 851 570 550 66.7 64.6 Richmond 3 2 39.78 37.88 4 2 San Francisco 856 847 461 429 53.9 50.6 Atlanta C1) 1 70.05 47.14 1 1 Chicago 15 16 57.27 58.01 28 34 Total... 9,715 9,681 5,332 5,107 54.9 52.8 St Louis 2 1 21.27 32.28 1 2 Minneapolis C1) 39.29 Kansas City. Dallas 82.90 ACCEPTANCES. San Francisco c\ 30 50.60 45.54 12 48 A summary of open-market operations of the Federal Keserve Banks in March and in i Less than $500,000. February, 1921 and 1920, is shown in the fol- Following is a summary of the holdings of lowing table: purchased and discounted acceptances at the end of March and of February, 1921: OPEN-MARKET OPERATIONS. [In thousands of dollars.] HOLDINGS OP PURCHASED AND DISCOUNTED ACCEPT- ANCES. 1921 1920 [In thousands of dollars.] March. ru F a e r b y - . March. ru F a e r b y - . End of— Total- 149,255 169,456 303,360 300,308 March. February. Bankers' acceptances—Total.. 167,362 294,301 296,959 In the domestic trade i; 362 37,074 57,350 65,918 All classes 147,913 199,804 In the foreign trade 100,598 115,638 236,951 228,091 Dollar exchange 16, 738 14,650 4,158 2,950 Purchased in open market 119,341 169,420 Trad In e a th c e c e d p o ta m n e ce st s i — c t T ra o d ta e l 557 2,09 1 4 5 4,9 8 0 1 1 2 3,34 2 9 9 D To is t c a o l, u d n i t s e t d r i f b o u r t e m d e m by b e c r la b ss a e n s k o s f acceptances: 28,572 30,384 In the foreign trade 557 2,079 4,089 3,320 Bankers' acceptances—Total 132,106 182,469 Average maturity (in days)... 33.99 49.33 50.50 Foreign 93,782 134,885 Average rate (365-day basis), Domestic 28,224 37,072 per cent 6.01 6.01 5.80 5.53 Dollar exchange 10,100 10,512 United States securities pur- Trade acceptances—Total 15,807 17,335 chased: Foreign 543 1,222 Bonds. 22 5 Domestic 15,264 16,113 Certificates of indebted- Bankers' acceptances, distributed by classes of ness 448,487 18,879 1,496,388 304,296 accepting institutions: Member banks— National 46,304 64,652 Bills purchased in March totaled $149,000,- Nonnational 28,745 40,330 Nonmember banks and banking corporations.. 23,736 37,561 000, as against $169,000,000 the month before Private banks 16,015 18,729 and $303,000,000 in March, 1920. Decreased Branches and agencies of foreign banks 17,306 21,197 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

MAT, 1921. FEDERAL BESERVE BULLETIN. 615 It will be noted that the total holdings of were drawn in the foreign trade, while of the acceptances declined from about $200,000,000 trade acceptances all but $2,000,000 were to $148,000,000 during the month. Of the drawn in the domestic trade. Of the total of $148,000,000 held at the end of March, $119,- $132,000,000 of bankers' acceptances held, 35 000,000 were purchased in open market and per cent were acceptances of national banks, $29,000,000 were discounted for member banks. 21.8 per cent of nonnational member banks, Of the total of $148,000,000 of acceptances 18 per cent of nonmember banks and banking held, $132,000,000 were bankers'jacceptances corporations, 12.1 per cent of private banks, and $16,000,000 were trade acceptances. Of and 13.1 per cent of branches and agencies of the bankers' acceptances, about 71 per cent foreign banks. VOLUME OF OPERATIONS. VOLUME OF DISCOUNT AND OPEN-MARKET OPERATIONS DURING MARCH, 1921. United States securities purchased. Total. Bills dis- Bills bought Federal Reserve Bank. counted for in open member banks. market. Bonds and V n i o ct t o e r s y . - i C n e d r e ti b f t ic e a d t n e e s s o s f . March, 1921. March, 1920. Boston $731,710,033 $23,787,794 $17,384,500 $772,882,327 $493,475,209 New York 4,271,627,879 78,089,389 281,578,557 4,631,295,825 4,574,324,471 Philadelphia 399,243,410 9,022,991 26,939,000 435,205,401 544,618,766 Cleveland 279,380,406 11,155,289 71,030,500 361,566,195 484,519,424 Richmond 298,973,793 2,665,401 6,000,000 307,639,194 351,353,026 Atlanta 163,603,783 470,519 164,074,302 163,917,786 Chicago 519,190,203 15,022,539 22,698,500 556,911,242 911,114,648 St. Louis 154,417,963 1,599,984 844,000 156,861,947 288,699,660 Minneapolis 66,495,192 16,500 66,550,680 145,259,885 Kansas City 110,900,132 1,214,000 112,114,132 178,502,098 Dallas 73,451,683 20,907 100,000 73,572,590 210,928,153 San Francisco 299,273,577 7,381,522 20,681,500 327,336,599 423,386,935 Total: March, 1921 7,: 149,255,323 448,487,057 7,966,010,434 March. 1920 6,970;330; 977 303,359,534 $22,050 1,496,387,500 8,770,100,061 3 months ending Mar. 31,1921 23,746,878,928 440,979,807 11,800 741,538,557 '24,"929*409,'692 3 A months ending Mar. 31,1920 19,729,041,586 906,119,686 244,450 2,443,059,000 "23,"078,*464,"722 VOLUME OF BILLS DISCOUNTED DURING MARCH, 1921, BY CLASSES OF PAPER; ALSO AVERAGE RATES AND MATURITIES. Member banks' collateral Customer's notes. paper se- Commercial Federal Reserve Bank. G ob c o u l v i r e g e r a d n t i m b o y n en s. t G S o e v cu e r r e n d m b en y t Otherwise paper, Ag p ri a c p u e lt r u . ral Li p ve a - p s e to r. ck obligations. secured. Boston $16,470,870 $417,741,200 $297,030,160 $97,703 $8,500 New York 48,046,031 1,514,553,505 2,702,476,882 581,356 Philadelphia 17,767,127 234,020,402 146,910,516 240,814 1,500 Cleveland 1,468,625 218,453,307 $187,000 51,667,5? I 225,380 77,555 Richmond 2,431,130 254,805,468 538,000 35,204,021 4,881,691 Atlanta 5,387,167 845,300 52,389,759 5,438,061 Chicago 16,512,028 243,338,073 6,404,200 226,902,647 21,518,787 3,138,211 St. Louis 4,604,685 84,453,877 128,887 59,609,246 4,064,234 284,112 Minneapolis 469,755 30,685,083 9,737,992 17,796,710 5,147,620 2,218,348 Kansas City 2,909,603 73,893,339 58,607 15,005,622 6,840,246 11,357,394 Dallas 847,293 49,593,677 2,420,900 10,871,662 4,666,356 4,557,552 San Francisco 3,433,348 209,542,901 64,073,047 5,427,138 4,243,026 Total: March, 1921... 120,347,662 3,429,449,782 29,730,819 3,679,937,806 59,129,386 26,451,094 February, 1921 128,787,544 3,727,518,681 22,571,562 4,164,487,425 46,262,837 11,806,039 March, 1920... 189,512,507 5,109.371,143 11,451,320 1,602,079,269 February, 1920 199,299,992 5,344,979,056 7,148,484 926,408,815 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

616 FEDERAL RESERVE BULLETIN. MAY, 1921. VOLUME OF BILLS DISCOUNTED DURING MARCH, 1921, BY CLASSES OF PAPER; ALSO AVERAGE RATES AND MATURI- TIES—Continued. Trade acceptances. Bankers' acceptances. Average Total Average rate Federal Reserve Bank. all classes. maturity. (365-day Domestic. Foreign Domestic. Foreign. basis). Days. Per cent. Boston $361,600 $731,710,033 6.57 New York 3,079,961 $881,250 $2,008,894 4,271,627,879 6.41 6.52 Philadelphia... 176,051 127,000 399,243,410 12.56 5.67 Cleveland 1,388,818 2,162,928 3,749,259 279,380,406 14.74 6.00 Richmond 1,113,483 298,973,793 12.89 6.00 Atlanta 560,650 49,000 163,603,783 26.50 i 6.39 Chicago 1,052,948 323,309 519,190,203 41.13 6.72 St. Louis 252,702 $72,805 587,415 360,000 154,417,963 24.33 5.90 Minneapolis 428,184 11,500 66,495,192 36. 55 6.78 Kansas City... 802,307 33,014 110,900,132 32.86 6.50 Dallas 440,032 54,211 73,451,683 32.86 6.68 San Francisco. 1,963,515 | 16,100 578, 898 585,671 299,273,577 21.55 6.00 Total: March, 1921 11,620,251 88,905 4,808,525 6,703, 824 7,368,268,054 12.38 6.43 February, 1921 1 12,798,707 456,920 2,406,877 3,752,037 8,120,848,629 9.53 6.41 March, 1920.... 23,382,954 34,533,784 6,970,330,977 13.77 5.64 February, 1920. 10,991,506 28,611,229 6,517,439,082 12.26 5.52 VOLUME OF BANKERS' AND TRADE ACCEPTANCES PURCHASED DURING MARCH, 1921, BY CLASSES OF PAPER; ALSO AVERAGE RATES AND MATURITIES. Bankers' acceptances. Trade acceptances. Fede B ra a l n R k e . serve Dollar T pu o r t c a h l a b s i e ll d s . A rn v a er tu ag r- e ( A 3 v 6 ra 5 e t r - e a d g a e y Foreign. Domestic. exchange Total. Foreign. Domestic. Total. ity. basis). bills. Davs. Per cent. Boston $17,291,762 $4,526,032 $1,970,000 $23, 787, 794 $23,787,794 19": 57 5.88 New York 53,242,351 13,852,620 10,558,910 77,653,881 $435,508 $435,508 78,089,389 29.89 5.98 Philadelphia 5,605,398 1,092,593 2, 325,000 9,022,991 9,022,991 40.13 5.99 Cleveland 6,939,851 3,689,674 525,764 11,155,289 11,155,289 44.65 6.01 Richmond 2,214, 501 450,900 2,665,401 2,665,401 39.78 6.08 A tlatita, 194,919 275,600 470, 519 470,519 70. 05 7.10 Chicago 9,473,473 4,754,066 795,000 15, 022,539 15,022,539 hi.21 6.08 St. Louis 568,207 1,031,777 1, 599,984 1, 599, 984 21.27 6.09 MinneaDolis 38, 988 38,988 38,988 39.29 5.96 KansasCity :::::::::::: Dallas 20,907 20, 907 20,907 82.90 7.10 San Francisco 5,007,983 1,688,679 563,513 7,260,175 121,347 121, 347 7,381, 522 50.60 6.04 Total: March, 1921 100, 598, 340 31,361, 941 16, 738,187 148,698, 468 556,855 556,855 149,255, 323 33.99 6.01 February, 1921. 115,637, 555 37, 074, 502 14,650,397 167, 362,454 2,078, 542 $15,000 2,093,542 169,455,996 36.98 6.01 March, 1920 236,951, 064 57, 350,003 4,157,622 298, 458,689 4,089,335 811,510 4,900,845 303,359,534 49.33 5.80 February, 1920. 228, 091,255 65,917,632 2,950,000 296, 958, 887 3,319,569 29,312 3, 348, 881 300,307,768 50.50 5.53 VOLUME OF PAPER DISCOUNTED AND PURCHASED DURING THREE MONTHS ENDING MARCH 31, 1921, BY MATURITIES. 15-day maturities. 30-day maturities. 60-day maturities. Federal Reserve Bank. Discounts. Acceptances. Total. Discounts. A an cc c e e p s t . - Total. Discounts. A an cc c e e p s t . - Total. Boston $1,593,139,556 $43,320,245 $1,636,459,801 $26,712,057 $7,621,412 $34,333,469 $74,600,347 $5,469,656 $80,070,003 New York 15,116,124,528 112,856,895 15,228,981,423 71,673,683 32,858,523 104,532,206 69,257,069 30,780,058 100,037,127 Philadelphia 982,330,713 3,231,727 985,562,440 15,071,092 6,284,239 21,355,331 16,888,633 5,436,448 22,325,081 Cleveland 944,948,301 7,897,423 952,845,724 15; 282,526 8,791,205 24,073,731 28,488,192 20,292,534 48,780,726 Richmond 652,734,594 1,519,575 654,254,169 19,239,926 2,717,370 21,957,296 38,661,650 1,655,201 40,316,851 Atlanta 377,778,004 53,600 377,831,604 17,059,708 751,100 17,810,808 35,989,555 847,314 36,836,869 Chicago..' 725,812,811 18,797,223 744,610,034 84,233,672 6,012,345 90,246,017 221,241,041 16,810,362 238,051,403 St. Louis 283,745,571 3,645,729 287,391,300 33,160,225 33,160,225 53,949,649 43,871 53,993,520 Minneapolis 140,213,092 140,213,092 8,175,961 25,000 8,200,961 . 22,236,372 13,988 22,250,360 Kansas Citv 211 243 683 211,243,683 9,059,155 143,125 9,202,280 25,795,192 788,723 26,583,915 Dallas 166,726,201 166,726,201 5,064,630 5,064,630 17,090,232 17,090,232 San Francisco 506,256,772 3,543,002 509,799,774 17,186,417 13,654,238 30,840,655 44,769,264 ii, 614,616 61,783,274 Total 21,701,053,826 194,865,419 21,895,919,245 321,919,052 78,858,557 400,777,609 648,967,196 99,152,165 748,119,361 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

MAY, 1921. FEDERAL, RESERVE BULLETIN. 617 VOLUME OF PAPER DISCOUNTED AND PURCHASED DURING THREE MONTHS ENDING MARCH 31, 1921, BY MATURI- TIES—Continued. 90-day maturities. Over 90-day maturities. Total. Federal Reserve Bank. Discounts. A a c n c c e e p s. t- Total. Discounts. A an cc c e e p s. t- Total. Discounts. Acceptances. Total. Boston $56,898,055 $1,664,439 $58,562,494 $25,716 $25,716 $1,751,375,731 $58,075,752 $1,809,451,483 New York 211,027,297 19,762,380 230,789,677 87,746 87,746 15,468,170,323 196,257,856 15,664,428,179 Philadelphia 44,428,773 11,743,980 56,172,753 37,141 37,141 1,058,756,352 26,696,394 1,085,452,746 Cleveland 62,921,427 12,307,205 75,228,632 28^2,649 282,649 1,051,923,095 49,288,367 1,101,211,462 Richmond 41,126,458 1,400,900 42,527,358 1,307,104 1,307,104 753,069,732 7,293,046 760,362,778 Atlanta 58,946,780 921,204 59,867,984 4,015,524 4,015,524 493,789,571 2,573,218 496,362,789 Chicago 275,740,169 7,258,813 282,998,982 22,088,518 22,088,518 1,329,116,211 48,878,742 1,377,994,953 St. Louis 46,640,796 791,126 47,431,922 2,812,178 2,812,178 420,308,419 4,480,727 424,789,146 Minneapolis 38,441,286 400,860 38,842,146 8,308,314 8,308,314 217,375,025 439,848 217,814,873 Kansas City 39,477,793 222,500 39,700,293 15,854,782 15,854,782 301,430,605 1,154,348 302,584,953 Dallas 28,721,666 20,907 28,742,573 14,966,628 14,966,628 232,569,357 20,907 232,590,264 San Francisco 90,040,745 11,609,352 101,650,097 10,741,309 10,741,309 668,994,507 45,820,602 714,815,109 Total 994,411,245 68,103,666 1,062,514,911 80,527,609 80,527,609 23,746,878,928 440,979,807 24,187,858,735 VOLUME OF REDISCOUNTS AND SALES OF DISCOUNTED AND PURCHASED PAPER BETWEEN FEDERAL RESERVE BANKS FROM JAN. 1 TO MAR. 31, 1921. [In thousands of dollars.] Rediscounted or sold by Federal Reserve Bank of— Discounte R d e s o e r r v p e u r B ch a a n s k e d o f— by Federal New York. m R o ic n h d - . Atlanta. Chicago. Minneapolis. K C a i n t s y a . s January. February. January. January. February. January. February. January. February. January. 10,671 10,000 6,550 2,000 3,500 New York 315 Philadelphia 6,823 4,000 i 565 Cleveland . 25,094 11,400 4,000 3,000 9,008 St. Louis 1,000 San Francisco 15,058 Total 50,823 6,823 10,000 21,950 2,000 315 1,000 8,500 3,000 9,008 Purchased bills 50,823 6,823 315 1,000 Discounted bills 10,000 21,950 2,000 8,500 3,000 9,008 Rediscounted or sold by Federal Reserve Bank of— Rediscounted or sold by all Federal Reserve Banks during— Discounte R d e s o e r r p ve u r B ch a a n s k e d o f b — y Federal Dallas. Sa c n i s F c r o a . n- Pur- Dis- January. February. March. Total. chased counted bills. bills. January. February. March. February. 30,721 2,000 32,721 10,671 22,050 New York 25 315 25 340 340 Philadelphia 5,000 6,823 11,823 6,823 5,000 Cleveland . 49,000 34,500 33,000 98,502 37,500 33,000 169,002 25,094 143,908 1,000 1,000 1,000 San Francisco 15,058 15,058 15,058 Total 49,000 34,500 33,000 25 149,596 47,348 33,000 229,944 Purchased bills . .. 25 51,138 7,848 58,986 Discounted bills . ... 49,000 34,500 33,000 98,458 39,500 33,000 170,958 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

618 FEDERAL RESERVE BULLETIN. MAY, 1921. HOLDINGS, BY CLASSES. AVERAGE DAILY HOLDINGS OF EACH CLASS OF EARNING ASSETS, EARNINGS THEREON, AND ANNUAL RATES OF EARNINGS, DURING MARCH, 1921. Average daily holdings of— Earnings on- Annual rate of earnings on- Feder B a a l n R k e . serve A of l a l e s c a s l r e a n t s s i s n . e g s Dis b c i o l u ls n . ted c b h P i a u l s l r e s - . d se U S cu t n a r i t i t e t e i s d es. e c a a l s a A r s o n s e l s f i l t n e s s g . co b D u i n i l s l t s - e . d c b h P i a u l s l r e s - . d U s S e t n t i c a e i u t t s e e r . i s d - e c a a l s r a A s n o s e l i s f n l t e s g s . co b D u il i n s l t s - e . d c b h P i a u l s l r e s - . d U s S e t n t i c a e i u t t s e e r . i d s - Per ct. Per ct. Per ct. Per ct. Boston $177,753,391 $142,902,696 $12,424,595 $22,426,100 $890,123 $788,398 $62,214 $39,511 5.90 6.50 5.90 2.07 New York 884,540,680 777,122,543 37,721,615 69,696,522 4,675,636 4,332,350 190,854 152,432 6.22 6.56 5.96 2.58 Philadelphia... 200,396, 883 152,192,403 14,963,715 33,240,735 871,143 731,835 76,122 63,186 5.11 5.66 5.98 2.23 Cleveland 186, 339.615 129,674,508 29,720,876 26,944,231 872,955 670,434 151,721 50,800 5.52 6.08 6.01 2.22 Richmond 127,059,014 110,150,103 3,219,963 13,688,948 601,695 561,319 16,629 23, 747 5.58 6.00 6.08 2.04 Atlanta 140,156,266 122,357,549 1, 016.571 16,782,146 653,828 6,121 28,687 5.79 6.29 7.09 2.01 Chicago 442,293,989 387,171,774 10,357,260 44, 764,955 2,326,280 2,192,179 53,387 80, 714 6.19 6.67 6.07 2.12 St. Louis 105,686,223 88,872,655 2,185,878 14,627,690 483,580 445,301 11,170 27,109 5.39 5.90 6.02 2.18 Minneapolis... 78,614,500 70,016,000 2,500 8,596, 000 412,247 397,518 13 14,716 6.17 6.68 5.92 2.02 Kansas City... 118,919,247 99,265, 519 311,969 19,341, 759 556,476 519,289 1,880 35,307 5.51 6.16 7.10 2.15 Dallas .. 77,910,037 65,610,217 4,441 12,295,379| 365,624 343, 438 23 22,163 5.53 6.16 6.24 2.12 San Francisco. 190,114,266 156,292,592 26,467,837 13,353,837! 953,231 792,892 136,021 24,318 5.72 5.97 6.05 2.15 Total, March, 1921...2,735,784, 111 2,301,628,559 138,397,250 295,758,302 13,697,626 12,428,781 706,155 562,690 5.90 6.36 6.01 2.24 February, 1921 2,869,233,489 2,408,791,923 173,082,386 287,359,18013,022,15811,762,106 795,795 464,257 5.92 6.37 5.99 2.11 March, 1920...3.211,935,980 2,386,536,669 481,238,308 344,161,003 13,906,325 11,065,4722,231,078 609,775 5.11 5.47 5.4' 2.09 February, 1920 3,154,053,8732,298,976,613546,457,974 308,619,286 12,210,019 9,487,2012,191,536 631,282 4.88 5.20 5.06 2.17 HOLDINGS ON MAR. 31, 1921, OF DISCOUNTED BILLS, BY CLASSES. [In thousands of dollars .1 Cu e s r t s o ' m- Me l m at b e e ra r l b n a o n t k e s s ' . col- Trade acceptances. Bankers' acceptances. Federa B l an R k e . serve Total. e b s o r p e y t n b i c a o m l G u p i n g r e o e e s a r v n . d - - t o e b b S r l y e i n g c m G u a r t o e i e o v n d n - t s. s O e w c t u h is r e e e r d - . c C i n a o . l m e p m . a s p e . e r- r c p u A a lt p g u e r r i r a - . l p L s a t i o p v c e e k r - . Foreign. m D es o t - ic. Foreign. m D es o t - ic. ex D ch o a ll n a g r e. Boston 149,334 22,306 42,548 83,953 169 9 349 New York 642,011 86,219 268,440 20 276,713 492 1,855 6,938 1,334 Philadelphia 156,357 35,660 72,871 47,208 400 5 213 Cleveland 134,536 5,549 53,442 100 71,085 480 199 1,760 988 933 Richmond 114,364 5,282 45,267 383 52,744 8,838 25 1,825 Atlanta 122, 890 11,104 45,777 372 50,657 11,902 1,678 120 1,091 89 100 Chicago 427,569 21,632 107,036 3,941 238,510 53,375 2,895 180 St. Louis •. 89,021 5,848 30,214 114 43,630 7,033 607 110 449 90 926 Minneapolis 70,768 1,297 11,988 4,897 16,815 19,761 15,361 449 200- Kansas City 100,096 4,320 30,690 24,774 9,914 29,190 1,170 33 D Sa a n ll a F s rancisco 1 6 6 3 2 , , 5 5 8 7 0 8 4,4 9 3 2 2 0 1 4 1 6 , , 5 5 3 8 4 5 4 1 , , 3 6 5 0 7 0 7 1 5 3, , 6 3 4 6 6 7 1 1 6 2 , , 2 4 2 0 1 2 1 1 8 5 , , 9 6 3 8 6 3 26 2,5 6 4 6 1 7 482 6 5 23 4 82 Total Mar. 31,1921...2, 233,104 204,569 766,392 15,789 995,102 140,987 81,693 256 15,264 8,787 4,183 82 Feb. 28, 1921 2,389,510 224,607 773,361 13,031 1,127,795 136,679 83,654 540 16,422 10,335 3,086 March, 1920.2,449,230 359,106 1,081,909 6,248 855,600 29,321 45,344 20,813 50,889 Feb., 1920..2,453,511 353,504 1,219,476 3,744 752,006 30,125 37,070 18,508 39,078 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

MAT, 1921. FEDERAL RESERVE BULLETIN. 619 HOLDINGS ON MAR. 31, 1921, OF BANKERS' AND AND TRADE ACCEPTANCES PURCHASED OR DISCOUNTED, BY CLASSES OF ACCEPTANCES. [In thousands of dollars.] All classes. Bankers' acceptances. Trade acceptances. Federal Reserve Bank. Pur- co D u i n s- ted Dollar Total. ch o as p e e d n in for b m er em- Total. Foreign. Domestic exchange Total. Foreign. Domestic market. banks. bills. Boston 10,033 9,684 349 6,750 2,324 610 349 349 New York 50,430 40,303 10,127 48,542 35,609 8,140 4,793 1,888 33 1,855 Philadelphia 14,080 13,867 213 13,867 10,158 1,484 2,225 213 213 Cleveland 25,590 21,910 3,680 23,788 18,015 4,291 1,482 1,802 42 1,760 Richmond 4,602 2,777 1,825 2,777 1,752 1,025 1,825 Atlanta 2,111 711 1,400 900 328 572 1,211 "120 1,091 Chicago 14,190 11,114 3,076 11,295 6,436 4,539 320 2,895 2,895 St. Louis 3,800 2,225 1,575 3,241 1,225 2,016 559 "no 449 Minneapolis 649 649 200 200 449 449 Kansas City 1,388 185 1,203 218 180 1,170 1,170 Dallas 742 21 721 75 21 54 667 667 San Francisco 20,298 16,544 3,754 17,519 13,108 3,741 670 2,779 238 2,541 Total: Mar. 31,1921 147,913 119,341 28,572 132,106 93,782 28,224 10,100 15,807 543 15,264 Feb. 28,1921 199,804 169,420 30,384 182,469 134,885 37,072 10,512 17,335 1,222 16,113 Purchased in open market: Mar. 31,1921 119,341 119,054 84,995 24,041 10,018 287 287 Feb. 28,1921 169,420 169,048 124,550 33,986 10,512 372 347 25 Discounted for member banks: Mar.31,1921 28,572 13,052 8,787 4,183 82 15,520 256 15,264 Feb. 28,1921 30,384 13,421 10,335 3,086 16,963 875 16,088 HOLDINGS ON MAR. 31, 1921, OF BANKERS' ACCEPTANCES PURCHASED OR DISCOUNTED, BY CLASSES OF ACCEPTING INSTITUTIONS. [In thousands of dollars.] Member banks. Nonmember Branches Federal Reserve Bank. Total. b a a n n d ks Private ag a e n n d cies National. na N ti o o n n - al. b co a r n p k o i r n a g - bankers. of b a fo n r k e s ig . n tions. Boston 9,684 7,114 2,022 367 112 New York 48,542 12,123 10,339 10,886 6,619 8,575 Philadelphia 13,867 3,482 3,850 2,739 1,580 2,216 Cleveland 23,788 6,522 5,001 3,916 4,831 3,518 Richmond 2,777 2,742 35 Atlanta 900 496 404 Chicago 11,295 6,828 3,747 426 26 St. Louis 3,241 1,135 1,565 320 10 211 Minneapolis 200 200 Kansas City 218 218 Dallas 75 54 12 9 Sari'Franeisco 17,519 5,390 1,782 5,082 2,626 2,639 Total: Mar.31,1921 132,106 46,304 28,745 23,736 16,015 17,306 Feb. 28,1921 182,469 64,652 40,330 37,561 18,729 21,197 Purchased in open market: Mar.31,1921 119,054 40,404 25,464 20,653 15,878 16,655 Feb. 28,1921 169,048 59,258 37,055 33,768 18,458 20,509 Discounted for member banks: Mar.31,1921 13,052 5,900 3,281 3,083 137 651 Feb. 28,1921 13,421 5,394 3,275 3,793 271 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

620 FEDERAL RESERVE BULLETIN. MAT, 1921. CHANGES IN CONDITION OF FEDERAL RESERVE BANKS. Between March 25 and April 22 the Federal are at present in excess of the coupon rates of Reserve Banks reduced their holdings of dis- the certificates, and thus no longer act as incounted paper from $2,286,700,000 to $2,113,- ducement for the discounting with the Reserve 900,000, all the banks, except those of Cleve- Bank of this class of paper. To judge from land, Richmond, and Minneapolis, reporting the volume of subscriptions received on the smaller discount holdings at the close of the more recent offerings and from the gradual period than at its beginning. Decreases are decline in the member bank holdings of certifishown in practically equal proportions for bills cates, the investment demand for these securisecured by United States Government obliga- ties was sufficient to absorb the new issues with tions as well as for other discounted bills, with a minimum amount of temporary assistance the result that the proportion of "Government of the Federal Reserve Banks. As a matter paper77 to total discounts held shows but slight of fact, Reserve Bank holdings of paper secured fluctuations between 43 per cent and a little by Treasury certificates fluctuated between over 44 per cent, compared with about 60 per $94,500,000 on March 25 and $68,000,000 on cent the year before. Government credit April 15, and following the most recent certifioperations during the period included the cate issue, show an increase of but $10,300,000 purchase in open market before maturity of for the last week under review. A reduction moderate amounts of Liberty bonds and Treas- for the four weeks of $51,400,000 in the holdury certificates, also the redemption on April ings of paper secured by United States bonds 15 of about $100,000,000 of loan certificates, and notes is due largely to Government purfalling due on that date, and the issuance on the chases of Liberty bonds in connection with same date of about $190,000,000 of loan certifi- sinking fund operations. cates. These operations had but little effect In the following exhibit, there is given a on the volume of member bank borrowings summary of the weekly changes in the principal from the Federal Reserve Banks, partly for asset and liability items of the Federal Reserve the reason that Reserve Bank rates on paper Banks for the four weeks under review: secured by Treasury certificates in most cases MOVEMENT OP PBINCIPAL ASSETS AND LIABILITIES OF THE TWELVE FEDERAL RESERVE BANKS COMBINED. [In millions of dollars.] Mar. 25. Apr. 1. Apr. 8. Apr. 15. Apr. 22. Reserves: Total 2,422.0 2,461.2 2,481.8 2,485.1 2,492.8 Gold 2,210.8 2,246.4 2,264.0 2,286.9 2,298.1 Bills discounted: Total 2,286.7 2,214.6 2,154.7 2,104.6 2,113.9 Secured by United States Government obligations 1,010.4 950.7 936.0 929.2 942.7 Allother 1,276.3 1,263.9 1,218.7 1,175.4 1,171.2 Bills bought in open market 123.1 122.5 103.6 119.6 104.5 Certificates of indebtedness 256.9 250.4 253.7 253.7 246.7 Total earning assets 2,692.4 2,613.2 2,537.6 2,503.8 2,490.7 Government deposits 114.7 82.1 48.1 31.1 67.5 Members' reserve deposits 1,674.5 1,672.4 1,661.9 1,685.5 1,648.9 Total deposits 1,840.9 1,789.2 1,745.3 1,754.9 1,749.4 Federal Reserve notes in circulation 2,930.7 2,908.2 2,894.0 2,868.5 2,856.7 Federal Reserve Bank notes in circulation—net liability.. 175.5 169.7 167.2 163.2 159.6 Reserve percentage 50.8 52.4 53.5 53.7 54.1 Some changes are shown in the distribution decline in discounts. Only holdings of 60-day of discounted bills bjr maturities. Thus, 15- paper show botn an absolute and relative gain, day paper at the beginning of April declined the share of this class of paper increasing from by over $75,000,000, or by slightly more than 16 to almost 20 per cent of the total discounts the total decline in discounts shown on that held. Six-month paper increased from about date, though the relative share of shortest-term $42,000,000 to $47,700,000. paper in the total discounts held shows but a A further decline from $123,000,000 to slight change from 60 to 59 per cent. A rela- $104,500,000 is shown in the holdings of accepttively large reduction is shown in the holdings ances purchased in open market. With the of 90-day paper, while the decline in 30-day lessened supply of these bills, the market, paper was merely proportionate to the total apparently, was able to absorb the new offer- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

MAT, 1921. FEDERAL RESERVE BULLETIN. 621 ings without enlisting the assistance of the Reserve Banks on bills purchased for foreign Federal Reserve Banks. Reduction from correspondents continued unchanged at $254,400,000 to $240,900,000 in the total of so- $32,400,000. called "Pittman" certificates held by the Total deposits show a decline for the period banks with the Treasury of the United States of $91,500,000, all classes of deposits, but to secure Federal Reserve Bank note circulation largely those on Government account, sharing is due in part to the redemption by the Govern- in the decline. Federal Reserve note circulament of $10,000,000 of these certificates held tion continued its decline from $2,930,700,000 as excess collateral by the Boston, New York, to $2,856,700,000, or at an average weekly rate Philadelphia, Atlanta, Chicago, and Dallas of $18,500,000. Between December 23, 1920, banks. A further reduction of $3,500,000 was and April 22 of the present year, the reduction made in connection with the issuance of silver in Federal Reserve note circulation amounted to certificates and the deposit with the Treasury $548,200,000, or to 16 per cent, while as comby the New York and Chicago banks of equiv- pared with the circulation figures for the correalent funds to cover the withdrawals of sponding Friday in 1920, a decline of $211,- Federal Reserve Bank note circulation. An 600,000, or of 7 per cent, is shown. There is increase of $3,300,000 in other Treasury cer- also noted a reduction during the period of tificates represents largely the increase in the $15,900,000 in the Federal Reserve Banks' net amount held under repurchase agreements, liabilities on Federal Reserve. Bank notes, correlargely by the New York and Philadelphia sponding to a reduction of i$13,500,000 in the banks. As a consequence of the changes amount of Pittman certificates held by the shown, total earning assets show a decline of banks as cover for these notes. $201,700,000 for the four weeks under review, Owing to the continued imports of gold from and on April 22 stood at $2,490,700,000, or Europe and the purchase of this gold by the $931,200,000 below the peak figure reported on Federal Reserve Banks, gold reserves show a October 15 of last year. further gain for the period of $87,300,000. This Rediscounting operations are reported by gain is partially offset by a loss of $16,500,000 the Richmond and Dallas Federal Reserve in other reserves, i. e., silver and legals. Since Banks. On April 22 the Dallas bank reported the beginning of the year gold holdings of the $7,400,000 of bills held under rediscount with Federal Reserve Banks, largely through purchase the Boston and Cleveland banks, compared of imported gold, show a gain of $235,300,000, with $14,700,000 held under rediscount with while total cash reserves increased during the the Cleveland bank four weeks earlier. During same period by $239,100,000. The banks' rethe last week under review the Richmond serve ratio, owing to the substantial reduction bank rediscounted $10,000,000 of bills with the in note and deposit liabilities and the simulta- New York bank, which no longer appears neous gain in cash reserves, shows a steady rise among the borrowing Federal Reserve Banks. during the review period from 50.8 to 54.1 per Aggregate contingent liabilities of the Federal cent. CASH RESERVES, TOTAL DEPOSITS, FEDERAL RESERVE NOTE CIRCULATION, AND RESERVE PERCENTAGES FOR MARCH AND APRIL, 1921. [Daily averages. Amounts in thousands of dollars J Federal Reserve notes Total cash reserves. Total deposits. in circulation. Reserve percentage. Federal Reserve Bank. April. March. April. March. April. March. April. March. Boston 257,249 228,977 112,520 114,174 257,916 263,028 69.4 60.7 New York . 778,936 661,950 671,799 678,428 762,884 789,258 54.3 45.1 Philadelphia. 192,534 192,265 106,546 109,383 235.260 247,776 56.3 53.8 Cleveland 286,271 308,282 143,834 153,948 283^200 296,596 67.0 68.4 Richmond 82,173 95,992 58,054 62,004 139,854 149,234 41.5 45.4 Atlanta 90,542 89,847 48,436 54,161 155,675 159,336 44.4 42.1 Chicago .. . 337,832 351,637 245,052 258,126 474,999 487,105 46.9 47.2 St Louis 102,009 101,513 67,133 69,555 113,397 119,181 56.5 53.8 Minneapolis . 48,367 55,826 46,050 48,234 66,748 70,073 42.9 47.2 Kansas City.. 73,171 82,306 76,644 83,599 91,155 97,446 43.6 45.5 Dallas 41,448 44,141 48,681 53,998 57,512 62,931 39.0 37.8 San Francisco 194,547 190,734 124,619 122,919 232,045 237,522 54.5 52.9 Total, 1921 2,485,079 2,403,470 1,749,568 1,808,529 2,870,645 2,979,486 53.8 50.2 1920.. . 2,084,077 2,058,293 1,998,732 2,032,787 3,071,754 3,040,440 i 43.0 *42.7 1919 2,224,948 2,202,368 1,878,879 1,951,752 2,547,535 2,503,350 152.0 l5i.e 1 Calculated on basis of net deposits and Federal Reserve notes in circulation. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

622 FEDERAL RESERVE BULLETIN. MAY, 1921. MOVEMENT OF PRINCIPAL ASSETS AND LIABILITIES OF THE FEDERAL RESERVE BANKS 1920 -1921 SNOILLIM SRALLOD FO I: U.S. SECURITIES. 4.- TOTAL DISCOUNTS. eg 2: PURCHASED ACCEPTANCES. 5.- TOTAL EARNING ASSETS. 3: DISCOUNTS SECURED BY U.S. GOVERNMENT OBLIGATIONS. §3 d§ 3500 3500 > V \5 3000 3000 V V 2500 ^Y V 2500 / y 2000 2000 1500 1500 ~~— "V f- —' o ^— - 1000 1000 -»!•• ——^» 500 ... 1 .... 500 *——«_ I ~ ^~ 0 «IW»II. JAN.FEB.MARAPR. MATJUNEJULTAUG.SEPT.OCT. NOV. DEC. JAN.FEB.MARAPRMATJUNEJULTAU6.SEPT.OCT. NOV.VIC. 1920 1921 I: RESERVE RATIO. 3: CASH RESERVES. 2: DEPOSITS. 4: F.R.NOTE CIRCULATION. 3500 — •* ^-^ -»—- 3000 >*— I002S00 .—- <•> 2000 2 r ->s— 1500 j „— ——— 1000 500 JAN.FEB.MARAPR.MAYJONEjuur JJJ6.SEPT.OCT. NO^DEC. JAN.FEB.MAR.APR.MATJUNEJUUTAU6. 5EPT.OCT.NOV.PEC. I92Q 1921 SNOILLIM SRAUODFO 3500 3000 2500 CfYY\ dJUU 1500 1000 500 0 TNEC REP 80 60 40 20 0 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

MAT, 1921. FEDERAL RESERVE BULLETIN. 623 RESOURCES AND LIABILITIES OF EACH FEDERAL RESERVE BANK ON FRIDAYS, APR. 1 TO 22, 1921. RESOURCES. [In thousands of dollars.] New Phila- Cleve- Rich- St. Minne- Kansas San Total. Boston. York. delphia. land. mond. Atlanta. Chicago. Louis. apolis. City. Dallas. Francisco. Gold and gold certificates: Apr.l 299,485 7,428 214,187 3,216 6,628 3,422 4,900 21,300 3,213 8,319 2,605 6,701 17,566 Apr.8 313,322 7,506 226,697 3,275 6,710 3,405 5,435 21,073 3,315 8,351 2,623 7,040 17,892 Apr.15 327,637 7,598 240,265 3,294 6,759 3,419 5,508 21,155 3,351 8,377 2,636 7,223 18,052 Apr.22 339,432 7,649 251,345 3,324 6,646 3,403 5,446 21,292 3,369 8,413 2,724 7,255 18,566 Gold settlement fund—Federal Reserve Board: Apr.l 497,790 36,499 131,932 59,039 73,442 20,192 12,856 62,478 20,857 17,015 27,161 7,210 29,109 Apr.8 504,061 52,963 56,688 55,231 84,000 20,228 13,667 105,539 27,185 13,756 28,521 6,287 39,996 Apr.15 ... 466,241 53,218 61,704 41,478 66,957 13,656 107,792 20,365 10,348 28,849 4,036 39,230 Apr.22 477,229 53,467 59,899 48,813 72,105 22,982 14,348 103,988 19,822 9.977 28,004 6.506 37,318 Gold with Federal Reserve Agents: Apr.l ,300,345 135,988 300,115 120,395 196,558 50,377 55,401 175,766 57,916 25,410 36,847 15,826 129,746 Apr.8 ,306,949 157,459 299,594 128,495 196,347 45,777 54,892 165,299 57,504 26,095 35,161 19,108 121,218 Apr.15 1,346,558 164,784 299,077 129,555 194,920 42,537 64,213 177,730 67,400 26,266 34,520 18,158 127,398 Apr.22 1,321,816 172,172 298,524 115,592 194,639 46,297 60,057 170,430 63,265 22,484 33,089 16,485 128,782 Gold redemption fund: Apr.l 148,819 29,279 36,000 8,454 6,024 6,194 7,026 24,948 5,134 2,819 4,901 7,697 10,343 Apr. 8 139,678 17,176 36,000 11,837 5,360 9,754 6,897 25,161 5,242 3,908 4,174 4,121 10,048 Apr.15 146,443 19,260 36,000 10,397 5,823 11,897 6,769 31,303 4,061 3,330 4,315 4,768 8,520 Apr.22 159,594 21,211 36,000 15,150 7,425 7,034 7,823 37,983 3,958 3,097 3,346 6,203 10,364 Total gold reserves: Apr.l , 1,246,439 209,194 682,234 191,104 80,185 80,183 284,492 87,120 53,563 71,514 37,434 186,764 Apr. 8 , 1,264,010 235,104 618,979 198,838 292.417 79,164 80,891 317,072 93,246 52,110 70,479 36,556 189,154 Apr. 15. 2,286,879 244,860 637,046 184,724 274,459 76,461 90,146 337,980 95,177 48,321 70,320 34,185 193,200 Apr. 22. 2,298,071 254,499 645,768 182,879 280,815 79,716 87,674 333,693 90,414 43,971 67,163 36,449 195.030 Legal tender notes, silver, etc.: Apr.l 214,792 14,790 151,207 3,106 3,319 4,810 4,593 11,976 9,392 532 3,242 5,240 2,585 Apr.8 217,824 15,038 151,272 3,027 3,447 4,516 5,129 13,103 10,248 633 3,399 5,329 2,683 Apr.15 198,198 15,328 130,428 3,428 3,824 4,231 5,098 13,532 10,276 590 3,366 5,421 2,676 \pr.22 194,733 15,907 122,972 4,083 4,080 4,415 5,484 13,964 11,158 554 3,449 6,009 2,658 Total reserves: Apr.l 2,461,231 223,984 833,441 194,210 285,971 84,995 84,776 296,468 96,512 54,095 74,756 42,674 189,349 Apr.8 ~ 481,834 250,142 770,251 201,865 295,864 83,680 86,020 330,175 103,494 52,743 73,878 41,885 191,837 Apr.15 485,077 260,188 767,474 188,152 278,283 80,692 95,244 351,512 105,453 48,911 73,686 39,606 195,876 Apr.22 492,804 270,406 768,740 186,962 84,131 93,158 347,657 101,572 44,525 70,612 42,458 197,688 Bills discounted:1 Secured by United States Government obligations- Apr. 1 950,688 63,338 335,628 106,646 62,194 52,877 56,571 128,391 36,665 13,118 34,147 12,774 Apr.8 936,021 54,361 342,653 102,335 59,991 49,688 54,355 127,644 35,993 13,648 34, 738 11,365 49,250 Apr.15 929,186 46,770 349,507 104,274 63,038 48,148 52,433 123,798 35,225 13,142 33,450 9,243 50,158 Apr.22 942,665 45,161 367,624 108,198 43,640 126,814 34,584 15,368 32,804 12,645 46,045 All other- Apr. 1 L, 263,907 84,291 288,430 45,987 79,852 64,428 67,162 299,050 51,020 56, 718 64,253 49,366 113,350 Apr.8 L, 218,731 304,324 29,698 77,751 65,454 64,053 270,348 48,513 58,548 64,895 51,887 113,889 Apr. 15 [,175,368 60,754 291,576 40,222 64,173 59,843 245,641 43,494 58,516 62,439 52,537 109,308 Apr.22 L, 171,191 61,425 275,035 36,035 68,940 63,402 247,123 59,166 64,302 52,187 109,301 Bills bout market:8 Apr.l 122,491 9,431 42,185 14,57^ 21,596 2,798 711 12,049 2,225 185 16,718 Apr.8 103,607 6,405 34,492 15, to) 19,161 2,243 727 9,298 1,380 170 14,030 Apr.15 119,582 7,— 50,849 16,856 19,184 1,724 742 9,950 1,453 11,497 Apr.22 104,452 42,085 14,018 17,520 1,825 718 8,991 784 25 11,595 United States Government bonds: Apr.l , 25,720 550 1,255 1,434 833 1,233 113 4,490 1,153 116 3,979 1,697 Apr.8 25,547 550 1,255 1,434 834 1,233 114 4,489 1,153 116 8,867 3,979 1,523 Apr.15 25,914 550 1,255 1,434 833 1,233 481 4,490 1,153 116 3,979 1,523 Apr.22 25,691 550 1,005 1,434 1,233 621 4,490 1,153 116 8,867 3,979 1,409 United States Victory notes: Apr.l Apr.8 Apr.15 Apr.22 United States certificates of indebtedness: One year certificates (Pittman Act)— Apr.l 247,375 20,436 56,276 28,280 23,799 12,260 16,664 38,612 13,068 8,480 10,320 8,300 10,880 Apr.8 247,375 20,436 56,276 28,280 23,799 12,260 16,664 38,612 13,068 8,480 10,320 8,300 10,880 Apr.15 245,875 20,436 55,276 28,280 23,799 12,260 16,664 38,112 13,068 10,320 8,300 10,880 Apr.22 240,875 20,436 55,276 28,280 23,799 12,260 15,564 38,112 13,068 8,480 10,320 4,400 10,880 All other- Apr. 1 174 1,424 926 21 2 1 77 256 100 2 Apr.8 352 5,000 735 1 1 19 30 165 Apr.15 7,1 479 5,934 874 125 1 1 45 45 100 190 Apr.22 5,827 305 125 1 1 108 628 142 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

624 FEDERAL, RESERVE BULLETIN. MAY, 1921. RESOURCES AND LIABILITIES OF EACH FEDERAL RESERVE BANK ON FRIDAYS, APR. 1 TO 22, 1921—Continued. RESOURCES—Continued. [In thousands of dollars.] Total. 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 - . Atlanta. Chicago. Lo S u t. is. M ap i o n l n is e . - K C a i n ty sa . s Dallas. c F S i r s a a c n n o - . Total earning assets: Apr. 1 2,613,183 178,225 725,198 197,845 188,305 133,598 141,225 482,669 104,387 78,432 117,773 74,540 190,986 Apr. 8 2,537,603 151,480 744,000 178,162 181,546 130,879 135,917 450,410 1001137 80,792 118,991 75.552 189,737 Apr. 15 2,503,768 136,227 754,397 191,940 193,854 127,539 130,167 422,036 94,438 80,284 115,246 74,084 183,556 Apr. 22 2,490,720 134,748 742,885 190,591 187,549 127,899 133,202 425,638 96,120 83,161 116,319 73,236 179,372 Bank premises: Apr. 1 20,651 3,232 4,708 506 1,716 1,635 729 2,828 626 1,741 1,802 529 Apr. 8 21,002 3,269 4,708 501 1,733 1,640 730 2,828 626 2,032 1,807 529 Apr. 15 21,514 3,290 4,708 508 1,802 1,752 730 3,106 626 599 2,032 1,820 541 Apr. 22 21,782 3,307 4,910 520 1,802 1,768 730 3,106 626 599 2,052 1,821 541 5 per cent redemption fund against Federal ReserveBanknotes: Apr. 1 11,856 1,072 1,916 1,300 1,239 602 664 2,006 523 367 916 665 Apr.8 11,647 1,072 1,840 1,300 1,239 602 566 1,930 523 408 916 586 665 Apr. 15 12,166 1,072 1,835 1,300 1,239 602 744 2,085 523 599 916 586 665 Apr. 22 11,562 1,072 1,812 1,300 1,239 601 653 1,899 523 417 916 544 Uncollected items: Apr. 1 554,315 41,898 115,590 49,254 53,860 44,417 23,565 76,282 29,603 15,907 39,503 26,736 37,700 Apr.8 544,255 38,255 111,609 50,323 47,851 44,118 22,934 69,829 36,592 15,374 42,039 27,099 38,232 Apr. 15 618,107 47,872 135,855 57,072 60,080 48,905 23,562 78,118 34,228 16,005 44,002 27,288 45,120 Apr. 22 550,950 46,390 114,524 49,148 51,194 43,406 21,615 73,552 29,855 16,180 40,190 27,171 37,725 All other resources: Apr. 1 11,200 519 3,062 572 607 493 683 1,706 567 148 578 1,763 502 Apr.8 11,454 505 3,252 539 655 709 527 1,782 558 147 582 1,691 507 Apr. 15 11,892 534 3,259 592 707 1,206 622 2,213 579 169 608 919 484 Apr. 22 12,310 614 3,359 601 754 678 572 2,233 588 187 582 1,716 426 Total resources: Apr. 1 5,672,436 448,930 1,683,915 443,687 531,698 265,740 251,642 861,959 232,218 149,548 235,267 148,101 419,731 Apr.8 5,607,795 444,723 1,635,660 432,690 528,888 261,628 246,694 856,954 241,930 150,063 238,438 148,620 421,507 Apr. 15 5,652,524 449,183 1,667,528 439,564 535,965 260,696 251,069 859,070 235,847 146,567 236,490 144,303 426,242 Apr. 22 5,580,128 456,537 1,636,230 429,122 527,433 258,483 249,930 854,085 229,284 145,069 230,671 146,988 416,296 i Includes bills discounted for other Federal Reserve Banks: Apr. 1 14,764 14,764 Apr. 8 12,405 12,405 Apr. 15 12,169 1,500 10,669 Apr. 22 17,437 2,000 10,000 5,437 ^Includes bankers' acceptances bought from other Federal Reserve Banks without their indorsement: Apr. 1 1,562 521 1,000 16 Apr.8 262 171 50 16 Apr. 15 203 162 16 Apr. 22 25 LIABILITIES. Capital paid in: Apr. 1 101,137 7,838 26,488 8,600 10,880 5,331 4,047 14,172 4,437 3,499 4,488 4,132 7,225 Apr. 8 101,226 7,838 26,488 8,600 10,963 5,328 4,049 14,172 4,437 3,500 4,488 4,132 7,231 Apr. 15 101,274 7,838 26,488 8,600 10,963 5,372 4,059 14,172 4,437 3,500 4,475 4,132 7,238 Apr. 22 101,231 7,838 26,400 8,600 10,955 5,386 4,067 14,202 4,443 3,499 4,475 4,133 7,233 Surplus: Apr. 1 202,036 15,711 56,414 17,010 20,305 10,561 8,343 28,980 8,346 6,980 9,159 6,033 14,194 Apr. 8 202,036 15,711 56,414 17,010 20,305 10,561 8,343 28,980 8,346 6,980 9,159 6,033 14,194 Apr. 15 202,036 15,711 56,414 17,010 20,305 10,561 8,343 28,980 8,346 9,159 6,033 14,194 Apr. 22 202,036 15,711 56,414 17,010 20,305 10,561 8,343 28,980 8,346 9,159 6,033 14,194 Government deposits: Apr. 1.. 82,099 10,096 4,028 6,106 7,793 7,557 13,756 3,141 3,918 5,970 6,637 6,232 Apr.8 48,053 4,741 5,921 2,354 4,404 2,046 5,131 6,047 2,578 4,129 2,446 3,707 4,549 Apr. 15 31,117 210 633 2,715 3,075 1,513 1,594 3,648 2,824 2,020 5,156 1,231 6,498 Apr.22 67,483 7,445 18,073 5.488 4,578 4,729 1,430 9,974 3,511 2,320 3,022 3,006 3,907 Due to members— reserve account: Apr. 1 1,672,402 105,677 659,620 107,870 139,602 55,110 44,598 231,558 61,500 43,755 70,459 44,535 108,118 Apr. 8 1,661,938 107,105 631,535 104,043 138,965 56,442 43,222 237,127 63,732 44,714 77,076 45,756 112,221 Apr. 15 1,685,503 107,289 661,184 103,666 139,390 54,095 43,867 240,504 62,962 43,785 71,862 45,115 111,784 Apr.22 1,648,858 107,857 638,884 101,218 138,823 53,048 44,632 235,794 61,535 42,920 72,817 44,208 107,122 Other deposits, including foreign government credits: Apr. 1 34,732 910 15,776 743 455 390 2,467 492 549 441 10.532 Apr.8 35,325 791 17,432 780 457 369 2,315 695 523 493 404 10,177 Apr. 15 38,323 1,203" 18,460 1,097 1,095 505 389 2,699 836 662 790 555 10,026 Apr.22 33,010 13,695 927 539 371 3,485 833 562 970 546 9,205 Total deposits: Apr. 1 1,789,233 113,452 685,492 112,887 146,451 63,358 52,545 247,781 65,629 48,165 76,978 51,613 12 i, 882 Apr. 8 1,745,316 112,637 654,888 107,286 144,149 58,945 48,722 245,489 67,005 49,366 80,015 49,867 126,947 Apr. 15 1,754,943 108,702 680,283 107,478 143,560 56,113 45,850 216,851 66,622 46,467 77,808 46,901 128,308 Apr.22 1,749,351 116,190 670,652 107,695 144,328 58,316 46,433 249,253 65,879 45,802 76.809 47,760 120,234 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

RESOURCES AND LIABILITIES OF EACH FEDERAL RESERVE BANK ON FRIDAYS, APR. 1 TO 22, 1921—Continued. LIABILITIES-Continued. [In thousands of dollars.] Total. Boston. Y N o e r w k. d P e h lp il h a i - a. C la l n ev d e . - m R o ic n h d - . Atlanta. Chicago. L S o t u . is. M ap in o n li e s - . K C a i n t s y a . s Dallas. F S r a a n ncisco. Federal Reserve notes in actual circulation: Apr. 1 5,908,153 258,547 783,461 239,274 285,259 142,953 153,554 476,592 116,103 68,017 93,325 59,215 231,853 Apr.8 5,893,964 257,265 776,791 236,446 141,016 152,453 478,326 115,111 67,360 92,460 58,607 231,266 Apr. 15 2,868,527 256,329 762,173 235,815 283,489 139,678 158,648 473,559 113,756 66,545 90,849 57,461 230,225 Apr. 22 2,856,700 259,859 756,071 233,467 280,599 138,832 157,384 473,814 112,183 66,096 90,019 56,844 231,532 Federal Reserve Bank notes in circulation—net liability: Apr.l 169,722 15,084 26,544 17,335 20,995 8,658 13,488 28,412 7,037 7,043 11,458 5,496 8,172 Apr.8 167,152 15,204 24,537 16,823 21,111 8,580 13,537 27,516 7,081 7,062 11,316 5,839 8,546 Apr. 15 163,187 15,329 23,173 16,117 21,067 8,489 13,311 26,475 7,140 6,985 11,083 5,639 8,379 Apr.22 159,590 15,301 22,056 15,682 21,039 8,300 13,059 25,406 7,055 6,939 11,028 5,594 8,131 Deferred availability items: Apr.l 451,270 35,384 87,750 45,814 44,755 33,032 17,314 56,809 28,899 14,066 37,387 19,982 30,078 Apr.8 445,108 33,104 78,078 43,617 42,264 35,215 17,096 53,095 38,109 13,898 38,422 22,414 29,796 Apr.15 507,724 42,233 99,823 51,360 53,123 38,415 18,279 59,483 33,667 14,130 40,519 22,377 34,315 Apr.22 454,238 38,502 84,941 43,323 46,598 34,887 17,907 52,501 13,704 36,448 24,816 31,213 All other liabilities: Apr.l 50,885 2,914 17,766 2,767 3,053 1,847 2,351 9,213 1,767 1,778 2,472 1,630 3,327 Apr.8 52,993 2,964 18,464 2,908 3,233 1,983 2,494 9,376 1,841 1,897 2,578 1,728 3,527 Apr.15 54,833 3,041 19,174 3,184 3,458 2,068 2,579 9,550 1,879 1,960 2,597 1,760 3,583 Apr.22 56,982 3,136 19,696 3,345 3,609 2,201 2,737 9,929 1,980 2,049 2,733 1,808 3,759 Total liabilities: Apr.l 5,672,436 1,683,915 443,687 531,698 265,740 251,642 861,959 23i 218 149,548 235,267 148,101 419,731 Apr.8 5,607,795 444,723 1,635,660 432,690 261,628 246,694 856,954 241,930 150,063 238,438 148,620 421,507 Apr.15 5,652,524 449,183 1,667,528 439,564 535,965 260,696 251,069 859,070 235,847 146,567 236,490 144,303 426,242 Apr.22 5,580,128 456,537 1,636,230 429,122 527,433 258,483 249,930 854,085 229,284 145,069 230,671 146,988 416,296 MEMORANDA. Ratio of total reserves to deposit and Federal Reserve note liabilities combined, per cent: Apr.l 52.4 60.2 56.7 55.1 66.2 41.2 41.1 40.9 53.1 46.6 43.9 38.5 53.1 Apr.8 53.5 67.6 53.8 58.7 68.6 41.8 42.8 45.6 56.8 45.2 42.8 38.6 53.6 Apr.15 53.7 71.3 53.2 54.8 65.2 41.2 46.6 48.8 58.5 43.3 43.7 38.0 54.6 Apr.22 54.1 71.9 53.9 54.8 67.0 42.6 45.7 48.1 57.0 39.8 42.3 40.6 56.2 Contingent liability as indorser on discounted paper rediscounted with other Federal Reserve Banks: Apr.l 14,764 14,764 Apr.8 12,405 12,405 Apr.15 12,169 12,169 Apr.22 17,437 10,000 7,437 Bankers' acceptances sold to other Federal Reserve Banks without indorsement: Apr.l 1,562 537 1,000 25 Apr.8 262 187 50 25 Apr.15 203 178 25 Apr.22 25 25 Contingent liability on bills purchased for foreign correspondents: Apr.l 32,373 2,336 12,117 2,560 2,624 1,568 1,152 3,808 1,504 1,536 832 1,472 Apr.8 32,378 2,336 12,122 2,560 2,624 1,568 1,152 3,808 1,504 864 1,536 832 1,472 Apr.15 32,369 2,336 12,113 2,560 2,624 1,568 1,152 3,808 1,504 1,536 832 1,472 Apr.22 32,370 2,336 12,114 2,560 2,624 1,568 1,152 3,808 1,504 1,536 832 1,472 MATURITY DISTRIBUTION OF BILLS AND CERTIFICATES OF INDEBTEDNESS HELD BY ALL FEDERAL RESERVE BANKS COMBINED. [In thousands of dollars.] Total. 1 W 5 i d t a h y in s. 1 d 6 a t y o s S . O 3 d 1 a t y o s . 60 6 d 1 a t y o s . 90 O d v a e y r s 9 . 0 Bills discounted: Apr. 1 2,214,595 1,287,221 224,009 393,659 269,649 40,057 Apr.8 2,154,752 1,246,667 217,566 402,366 248,446 39,707 Apr.15 2,104,554 1,231,807 208,163 410,801 207,684 46,099 Apr.22 2,114,256 1,243,261 211,712 412,075 199,475 47,733 Bills bought in open market: Apr. 1 122,491 42,852 32,125 34,510 13,004 Apr.8 103,607 35,245 28,108 31,135 9,119 Apr.15 119,582 57,335 24,860 28,626 8,761 Apr.22 104,451 50,389 22,921 24,743 6,398 United States certificates of indebtedness: Apr.l 250,358 6,959 4,000 5,108 7,722 226,569 Apr.8 253,678 6,425 4,500 4,563 8,945 229,245 Apr.15 253,699 14,758 2,052 10,625 9,125 217,139 Apr.22 246,702 1,772 7,097 7,604 223,369 625 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

626 FEDERAL RESERVE BULLETIN. MAY, 1921. FEDERAL RESERVE NOTES. FEDERAL RESERVE AGENTS' ACCOUNTS ON FRIDAYS, APR. 1 TO 22, 1921. [In thousands of dollars.] New Phila- Cleve- Rich- St. Minne- Kansas San Total. Boston. York. delphia. land. mond. Atlanta. Chicago. Louis. apolis. City. Dallas. F ci r s a c n o - . RESOURCES. Federal Reserve notes on hand: Apr.l 821,271 106,410 268,001 28,540 43,430 28,229 79,476 148,441 26,840 12,765 4,400 29,439 45,300 Apr.8 814,484 104,010 268,000 26,540 42,270 25,689 75,805 153,200 28,320 11,890 4,600 28,859 45,301 Apr. 15 104,210 268,000 28,540 41,630 24,089 63,565 154,540 28,320 12,130 3,740 28,759 45,300 Apr. 22 806,642 100,610 268,000 24,420 38,770 25,108 78,815 155,060 27,520 11,700 4,600 28,339 43,700 Federal Reserve notes outstanding: Apr.l 3,263,111 271,565 918,095 263,943 315,146 149,221 159,045 520,640 139,099 70,336 102,204 63,847 289,970 Apr.8 3,246,061 270,436 920,431 261,043 313,895 147,162 160,206 514,014 138,509 69,896 101,318 62,709 286,442 Apr. 15 3 224,111 270,561 901,637 259,103 310,508 146,242 169,767 513,745 136,904 68,827 100,536 61,859 284,422 Apr.22 3,198,002 273,049 887,757 257,259 309,287 145,982 166,861 511,845 134,669 68,275 100,006 60,606 282,406 Collateral security for Federal Reserve notes outstanding: Gold and gold certificates- Apr. 1 233,853 5,600 176,925 23,775 3,500 6,110 13,052 Apr.8 333,852 5,600 176,924 23,775 3,500 6,110 13,052 Apr. 15 233,852 5,600 176,924 23,775 3,500 6,110 13,052 4,891 Apr.22 233,853 5,600 176,925 23,775 3,500 6,110 13,052 4,891 Gold redemption fund- Apr. 1 106,157 15,388 7,190 13,006 17,783 3,877 2,401 15,121 2,475 2,158 3,487 4,701 18,570 Apr.8 120,988 21,859 16,670 13,106 17,572 2,277 3,392 14,655 4,164 2,843 3,801 4,983 15,666 Apr. 15 111, 570 19,184 16,153 12,166 16,145 2,037 4,713 14,085 4,559 3,014 2,160 4,033 13,321 Apr.22 104,409 16,572 15,599 11,203 15,864 1,797 3,557 14,786 3,524 3,232 2,729 4,360 11,186 Gold settlement fund—Federal ReserveBoard— Apr.l 960,335 115,000 116,000 107,389 155,000 46,500 49,500 160,645 49,331 10,200 33,360 6,234 111, 176 Apr.8 952,109 130,000 106,000 115,389 155,000 43,500 48,000 150.644 47,230 10,200 31,360 9,234 105,552 Apr. 15 1,001,136 140,000 106,000 117,389 155,000 40,500 56,000 163.645 56,731 10,200 32,360 9,234 114,077 Apr.22 983,554 150,000 106,000 104,389 155,000 44,500 53,000 155,644 53,631 6,200 30} 360 7,234 117,596 Eligible paper— Amount required- Apr. 1....1,962,766 135,577 617,980 143,548 118,588 98,844 103,644 344,874 81,183 44,926 65,357 48,021 160,224 Apr.8.... 1,939,112 112,977 620,837 132,548 117,548 101,385 105,314 348,715 81,005 43,801 66,157 43,601 165,224 Apr. 15...1,877,553 105,777 602,560 129,548 115,588 103,705 105,554 336,015 69,504 42,561 66,016 43,701 157,024 Apr. 22...1,876,186 100,877 589,233 141,667 114,648 99,685 106,804 341,415 71,404 45,791 66,917 44,121 153,624 Excessamount held— Apr.l.... 315,696 21,483 18,953 2,324 44,448 17,037 20,790 94,328 23,727 33,187 13,741 17,012 Apr.8.... 277,427 17,160 5,040 39,012 15,149 13,805 58,569 4,869 27,467 33,571 19,169 10,668 Apr. 15... 296,452 57,792 19,332 52,991 7,909 7,455 43,234 10,660 28,167 29,926 17,611 12,395 Apr.22... 289,299 12,575 61,933 4,296 47,745 11,065 10,196 41,372 9,817 27,810 30,150 20,317 12,023 Total resources: Apr.l 7,663,189 671,023 2,123,144 558,750 718,170 343,708 418,356 1,284,049 313,704 177,164 241,995 170,874 642,252 Apr.8 7,584,033 662,042 2,141,810 553,666 709,072 335,162 410,022 1,239,797 310,207 179,149 240,807 173,446 628,853 Apr.15 7,547,497 654,312 2,129,066 566,078 715,637 324,482 410,554 1,225,264 312,788 177,951 234,738 170,088 626,539 Apr.22 7,491,945 659,283 2,105,447 543,234 705,089 328,137 422,733 1,220,122 306,675 176,060 234,762 620,535 LIABILITIES. Net amount of Federal Reserve notes received from Comptroller of the Currency: Apr.l 4,084,382 377,975 1,186,096 292,483 358,576 177,450 238,521 669,081 165,939 83,101 106,604 335,270 Apr. 8 4,060,545 374,446 1,188,431 287,583 356,165 172,851 236,011 667,214 166,829 81,786 105,918 9i;568 331,743 Apr.15 4,026,934. 374,771 1,169,637 287,643 352,138 170,331 233,332 668,285 165,224 80,957 | 104,27690,618 329,722 Apr.22 4,004,644 373,659 1,155,757 281,679 348,057 171,090 245,676 666,905 162,189 79,975 104,606 326,106 Collateral received from Federal Reserve Bank: Gold- Apr. 1 1,300,345 135,988 300,115 120,395 196,558 50,377 55,401 175,766 57,916 25,410 36,847 15,826 129,746 Apr.8 1,306,949 157,459 299,594 128,495 196,347 45,777 54,892 165,299 57,504 26,095 35,161 19,108 121,218 Apr.15 1,346,558 164,784 299,077 129,555 194,920 42,537 64,213 177,730 67,400 26,266 34,520 18,158 127,398 Apr.22 1,321,816 172,172 298,524 115,592 194,639 46,297 60,057 170,430 63,265 22,484 33,089 16,485 128,782 Eligible paper— Apr. 1 2,278,462 157,060 636,933 145,872 163,036 115,881 124,434 439,202 89,849 68,653 98,544 61,762 177,236 Apr.8 2,216,539 130,137 653,785 137,588 156,560 116,534 119,119 407,284 85,874 71,268 99,728 62,770 175,892 Apr.15 2,174,005 114,757 660,352 148,880 168,579 111,614 113,009 379,249 80,164 70,728 95,942 61,312 169,419 Apr.22 2,165,485 113,452 651,166 145,963 162,393 110,750 117,000 382,787 81,221 73,601 97,067 64,438 165,647 Total liabilities: Apr.l 7,663,189 671,023 2,123,144 558,750 718,170 343,708 418,356 1,284,049 313,704 177,164 241,995 170,874 642,252 Apr.8 7,584,033 662,042 2,141,810 553,666 709,072 335,162 410,022 1,239,797 310,207 179,149 240,807 173,446 628,853 Apr.15 7,547,497 654,312 2,129,066 566,078 715,637 324,482 410,554 1,225,264 312,788 177,951 234,738 170,088 626,539 Apr.22 7,491,945 659,283 2,105,447 543,234 705,089 328,137 422,733 1,220,122 306,675 176,060 234,762 169,868 620,535 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

MAY, 1921. FEDERAL, RESERVE BULLETIN. 627 INTERDISTRICT MOVEMENT OF FEDERAL RESERVE NOTES DURING THREE MONTHS ENDING MAR. 31, 1921. [In thousands of dollars.] Boston. New York. Philadelphia. Cleveland. Richmond. Atlanta. Chicago. Federal Reserve Bank from which received or to which returned. Re- Re- Re- Re- Re- Re- Re- Re- Re- Re- Re- Re- Re- Received. turned. ceived. turned. ceived. turned. ceived. turned. ceived. turned. ceived. turned. ceived. turned. Boston 12,897 23,791 1,700 1,757 1,012 945 1,226 1,341 772 1,089 1,480 1,551 New York 22,397 12,742 23,647 14,281 17,893 5,378 8,453 4,827 8,478 5,543 16,234 6,705 Philadelphia 1,755 1,687 14,353 24,809 4,307 3,531 3,376 3,618 1,024 1,311 1,785 1,616 Cleveland 1,169 997 7,666 17,286 5,308 4,234 4,719 2,713 1,389 2,670 8,727 7,033 Richmond 1,318 l,2iO 4,833 8,988 3,631 3,451 2,694 3,3f2 3,926 2,742 1,458 1,112 Atlanta 1,111 755 5,672 9,678 1,314 1,008 2,748 965 2,7*2 3,920 3,462 1,497 Chicago 1,691 1,461 6,618 17,496 1,512 1,734 7,104 5,770 1,101 1,467 1,449 3,413 St. Louis 368 211 1,822 2,197 540 265 2,505 666 566 397 2,024 3,954 10.763 4,326 Minneapolis 120 150 57* 1,607 114 129 310 298 76 100 103 233 3,903 4,633 Kansas City 227 305 1,085 2,254 259 437 679 568 208 916 422 719 3,916 3,287 Dallas 223 398 1,460 2,181 264 388 552 374 2^0 660 1,413 2,429 1,569 943 San Francisco 830 383 3,577 4,818 660 328 1,247 358 405 199 703 521 4,693 2,361 Total: Jan. 1 to Mar. 31,1921 31,209 20,329 60,557 115,105 38,952 28,012 41,051 22,195 23,152 20,188 21,703 24,624 57,990 35,094 Jan. 1 to Mar. 31,1920 20,080 17,731 54,912 77,681 29,113 22,080 25,923 15,684 17,762 17,366 15,921 19,868 45,941 31,055 Jan. 1 to Mar. 31, 1919 11,816 22,275 59,635 62,S06 17,071 26,909 22,779 17,649 18,773 23,430 12,995 15,745 34,432 28,435 Jan. 1 to Mar. 31,1918 3,619 5,281 20,767 21,629 6,734 10,628 6,357 2,443 5,309 3,000 4,456 6,721 8,653 8,715 St. Louis. Minneapolis. Kansas City. Dallas. San Francisco. Total. Federal Reserve Bank from which received or to which returned. Re- Ro- Re- Re- Re- Re- Re- Re- Re- Re- Re- Received. turned. ceived. turned. ceived. turned. ceived, turned. ceived. turned. ceived. turned. Boston 211 374 152 115 229 451 220 407 849 20,617 32,261 New York 2,000 1,795 1,616 588 1,922 1,063 1,935 1,424 4,391 3,551 108,966 57,897 Philadelphia... 269 532 129 107 437 26 \ 393 257 325 655 28,153 38,417 Cleveland 1,489 2,362 419 307 771 671 539 501 512 1,259 32,708 40,033 Richmond 401 555 98 73 926 208 645 278 194 418 20,127 22,437 Atlanta 3,980 1,941 235 97 731 425 2,293 1,461 528 717 24,816 22,464 Chicago 4,200 10,550 4,640 4,223 3,266 3,777 951 1,462 2,337 4,316 34,929 55,669 St. Louis 462 227 3,037 1,974 1,892 1,367 729 781 24,708 16,365 Minneapolis... 215 461 593 842 100 188 1,293 1,529 7,401 10,170 Kansas City... 2,050 3,019 842 667 1,775 2,078 1,720 2,327 13,183 16,577 Dallas 1,382 1,890 221 96 2,259 1,782 2,314 1,213 11,937 12,354 San Francisco. 714 1,467 1,451 2,326 1,722 1,189 1,675 17,903 14,530 Total: Jan. 1 to Mar. 31,1921. 17,063 24,193 10,281 7,951 16,577 12,957 12,163 10,911 14,750 17,615 345,448 339,174 Jan. 1 to Mar. 31,1920.. 15,743 23,667 11,184 6,737 13,975 12,467 8,595 6,725 12,802 14,575 271,951 265,636 Jan. 1 to Mar. 31,1919.. 12,071 17,087 9,926 5,733 13,700 6,675 5,892 5,017 7,426 10,988 226,516 242,749 Jan. 1 to Mar. 31,1918.. 3,063 7,684 3,455 523 12,425 2,526 3,124 2,832 2,696 1,688 80,658 73,670 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

628 FEDERAL RESERVE BULLETIN". MAT, 1921. CONDITION OF MEMBER BANKS IN LEADING CITIES. Credit liquidation as indicated by reductions of $265,000,000 for the period. Commenin loans and discounts of the member banks in surate decreases in deposit liabilities and in leading cities reporting weekly to the Federal accommodation at the Federal Eeserve Banks Reserve Board, continued uninterruptedly for are noted. the four weeks ending April 15. Total loans of Following is a chart showing changes in the these banks were $12,365,000,000 on that principal assets and liabilities of member banks date, compared with $12,630,000,000 four for 1920 and 1921 to date. Also a tabular weeks earlier, indicating a reduction in loans summary for the most recent five weeks. MOVEMENT OF PRINCIPAL ASSETS AND LIABILITIES OF REPORTING MEMBER BANKS 1920-1921 SNOILLIB SRALLOD FO I: ACCOMMODATION AT FEDERAL RESERVE BANKS . 2: U.S. OBLIGATIONS AND LOANS SECURED THEREBY. ii 3: NETDEr4ATiD DEPOSITS. 4: TOTAL LOANS AHD DISCOUNTS. 5: TOTAL LOANS AND INVESTMENTS. 18 ia 5 17 i? l£ ID I 15 1$ 14 14 4 13 13 12 12 3 II II 10 10 9 9 8 8 7 7 6 6 5 S 4 4 3 ——— 3 9 2 2 V*" i -\ I I 0 0 JAN.FEB. MARAPR. MAYJUKEJULY AUG.SEPT. OCT. NOV. DEC. JATt.FEBMAR.APR. MAYJUWE JUDTAU6. SEPT. OCT. ncfv.DEC. 1920 1921 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

MAY, 1921. FEDERAL RESERVE BULLETIN". 629 MOVEMENT OF PKINCIPAL ASSETS AND LIABILITIES OF REPORTING MEMBER BANKS. [In millions of dollars.] March 18. March 25. April 1. April 8. April 15. Number of reporting banks , 824 823 822 821 820 Loans and discounts:1 — Secured by United States Government obligations , 761 760 755 752 740 Secured by stocks and bonds (other than United States Government obligations) 3,015 3,011 3,028 2,982 2,961 All other 8,854 8,828 8,776. 8,731 8,664 Total loans and discounts1 12,630 12,599 12,559 12,465 12,365 United States bonds , 866 875 871 872 874 United States Victory notes 192 192 190 191 191 United States certificates of indebtedness , 339 275 231 218 287 Other bonds, stocks, and securities 2,049 2,042 2,052 2,031 2,039 Total loans and discounts, and investments1 , 16,076 15,983 15,903 15,777 15,756 Reserve balance with Federal Reserve Bank , 1,252 1,260 1,263 1,252 1,270 Cash in vault 321 315 300 317 308 Net demand deposits , 10,376 10,186 10,271 10,204 10,263 Time deposits 2,926 2,932 2,925 2,923 2,924 Government deposits , 348 329 328 304 329 Bills payable and rediscounts with Federal Reserve Bank, total 1,719 1,764 1,685 1,630 1,581 Secured by United States Government obligations 769 772 709 696 694 Allother 950 992 976 934 887 Ratio of accommodation at Federal Reserve Banks to total loans and investments.., 10.7 11.0 10.6 10.3 10.0 1 Including bills rediscounted with Federal Reserve Bank. Liquidation is shown for all classes of loans— gregate reduction under this head amounts to those secured by United States Government $1,528,000,000, or approximately at the rate obligations declined from $761,000,000 on of $60,000,000 per week. March 18 to $740,000,000 on April 15; those Accommodation of member banks at the secured by stocks and bonds declined from Federal Reserve Banks shows a decline for $3,015,000,000 to $2,961,000,000, and all other the four-week period from $1,719,000,000 to loans, representing largely commercial paper, $1,581,000,000, and the ratio of accommodashow a reduction from $8,854,000,000 to tion declined from 10.7 to 10.0 per cent. For $8,664,000,000. This reduction of $190,000,000 the member banks in New York City a total in commercial loans constitutes over 70 per cent reduction of $155,000,000 in loans and investof the total loan liquidation for the four weeks. ments is shown between March 18 and April Member bank holdings of United States 15. At the same time their accommodation bonds fluctuated somewhat from week to week at Federal Reserve Banks declined from and stood at $874,000,000 on April 15, com- $651,000,000 to $552,000,000, and the ratio pared with $866,000,000 four weeks earlier. of accommodation declined from 12.4 to 10.8 Holdings of Victory notes remained practically per cent. constant throughout the period, while Treasury Government deposits, which amounted to certificates on hand followed the usual course $348,000,000 on March 18, the first Friday by showing reductions for the three weeks after after the Treasury transactions in connection the allotment of the March 15 issue and an in- with the March 15 income-tax payments, decrease on April 15 when a new issue was floated. clined to $304,000,000 on April 8, but increased For the period as a whole, Treasury certificates to $329,000,000 by April 15, largely as a result show a reduction of $52,000,000. Compara- of the allotment on that date of a new issue tively slight fluctuations in holdings of other of Treasury certificates. Other demand deposbonds, stocks, and securities resulted in a re- its (net) showed considerable fluctuations for duction of $10,000,000 for the four weeks under the period, but stood on April 15 about review. As a consequence of all these changes, $113,000,000 below the March 18 amount. total loans and investments of all reporting A decrease of $2,000,000 in time deposits is banks show an uninterrupted decline for each noted for the period. Reserve balances of week of the period under review and stood on member banks with the Federal Reserve Banks April 15 at $15,756,000,000, or $320,000,000 showed comparatively slight changes, the below the March 18 amount. For the six April 15 amount being $18,000,000 in excess months period since October 15, when report- of the figure for March 18. Cash in vault deing member bank loans and investments stood clined from $321,000,000 at the beginning to at the peak figures of $17,284,000,000, the ag- $308,000,000 at the end of the review period. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

630 FEDERAL RESERVE MAT, 1921. PRINCIPAL RESOURCES AND LIABILITIES OF MEMBER BANKS IN LEADING CITIES, ON FRIDAYS FROM MAR. 25 TO APR. 15, 1921. 1. ALL REPORTING MEMBER BANES IN EACH FEDERAL RESERVE DISTRICT. [In thousands of dollars.] Total. Boston. Y N o ew r - k. P p d h h e i l i l - a a . - C la le n v d e . - m R o ic n h d - . At ta la . n- C g h o ic . a- Lo S u t. is. n M e l a i i s n p . - o- K C s a i a n t s y - . Dallas. F c S i r s a a c n n o - . Number of reporting banks: Mar.25 823 113 113 37 Apr.l 822 112 113 37 Apr.8 821 112 88 113 37 Apr.15 820 112 113 37 Loans and discounts, including bills rediscounted with Federal Reserve Bank: Secured by United States Government obligations- Mar. 25 -- 759,917 44,993 339,078 71,866 62,434 27,869 24,691 92,724 22,623 13,428 22,727 7,906 29,578 Apr.l 755,451 44,419 337,568 68,829 63,165 28,577 24,037 92,922 23,667 13,243 22,206 7,730 29,088 Apr.8 752,056 40,136 338,736 68,113 63,504 28,417 23,964 92,561 23,480 13,166 22,570 7,789 29,620 Apr.15 740,055 39,364 333,484 68,340 63,479 26,990 22,848 90,105 23,596 13,231 21,762 7,627 29,229 Secured by stocks and bonds (other than United States Government obligations)— Mar.25 3,011,152 194,0861,222,797 203,704 347,657 112,505 57,626 438,842 120,765 49,833 75,326 37,631 150,380 Apr.l 3,027,935 194,1031,242,761 206,921 347,898 116,664 56,186 432,181 120,993 48,223 73,945 37,456 150,604 Apr.8 2,981,939 189,67411,233,643 204,335 347,786 112,361 55,460 426,308 120,513 28,695 74,730 37,606 150,828 Apr.15 2,960,944 186,8021,220,512 202,885 349,049 112,174 55,485 426,961 121,516 29,695 69,513 37,639 148,713 All other— Mar.25 8,827,750 652,102 3,087,365 409,463 707,938 334,210 323,617 1,353,775 335,175 220,141 399,334 222,707 781,923 Apr.l 8,775,553 650,530^3,055,694 406,774 699,223 335,069 318,942 1354,552 330,417 222,453 398,804 221,141 781,954 Apr.8 8,730,694 644,495J3,039,621 398,608 689,626 336,380 314: ,3~2~2 -1' 337,979 328,774 239,764 398,047 221,995 781,083 Apr.15 ----- 8,663,590 637,175 3,012,644 402,159 690,062 335,307 313i,, 285 1321,327 322,528 236,762 396,823 217,919 777,599 Total loans and discounts, including bills rediscounted with Federal Reserve Bank— Mar.25 12,598,819 891,1814,649,240 685,0331,118,029 474,584 405,9341,885,341 478,563 283,402 497,387 268,244 061,881 Apr.l 12,558,939 889,052 4,636,023 682,5241,110,286 480,310 399,1"6"511,879,655 475,077 283,919 494,955 266,327 961,646 Apr. 8 12,464,689 874,305J4,612,000 671,0561,100,916 477,158 393', 746 1,856,848 472,767 281,625 495,347 267,390 961,531 Apr.15 12,364,589 863,34114,566,640 673,3841,102,590 474,471 391,618 1,838,393 467,640 279,688 488,098 263,185 955,541 United States bonds: Mar.25 874,856 33,025 301,369 43,716 97,440 65,625 39,618 77,455 28,884 16,690 35,745 37,301 97,988 Apr.l 870,776 33,041 300,557 44,068 97,141 60,571 39,570 77,628 28,667 16,684 35,988 37,487 99,374 Apr. 8 871,735 32,993! 304,606 44', 144 95,908 60,587 39,758 76,891 28,226 16,795 35,192 36,726 99,909 Apr.15 874,117 33,183 305,293 44,456 97,407 60,904 39,498 77,150 28,221 16,684 34,554 37,016 99,751 United States Victory notes: Mar.25 192,68^ 6,024 83,121 10,099 20,523 7,702 3,045 34,923 2,309 1,247 3,660 2,028 18,006 Apr. 1 190,199 6,024 82,889 10,072 20,466 7,711 3,094 33,346 2,221 1,243 3,179 1,895 18,059 Apr. 8 191,37' 6,028 82,303 10,119 20,277 7,719 3,105 34,846 2,105 1,238 3,083 1,835 18.719 Apr.15 190,891 6,028 82,521 10,025 20,356 7,193 3,142 34,373 2,189 1,209 2,957 1,831 19,067 United States certificates of indebtedness: Mar.25 274, 846 18,049 142,739 23,444 19,070 6,963 1,943 31,016 2,673 3,234 5,335 1,940 18,440 Apr.l 231,381 11,046 131,452 14,793 16,059 6,138 1,915 26,055 1,152 1,602 3,778 1,720 15,671 Apr.8 218,334 10,347 121,625 15,881 13,773 4,479 1,841 27,362 735 952 4,425 1,708 15,206 Apr.15 286,526 17,486 142,894 21,846 20,824 7,156 2,221 39,671 1,671 4,408 2,303 19,647 Other bonds, stocks and securities: Mar.25 2,041,780 122,627 735,002 156,058 285,022 48,717 33,704 339,070 65,877 54,218 10, 552 171,450 Apr.l 2,051,418 123,807 738, 506156,322 281,663 52,100 36,395 341,921 65,519 19,659 53,351 10,731 171,444 Apr.8 2,030,769 123,868 729,029 155,665 281,946 48,941 36,123 339,950 65,690 19,351 52, 771 10,965 166,470 Apr.15 2,039,525 124,733 738,008 156,172 280,857 35,831 340,432 66,775 19,374 46,460 9,099 172,791 Total loans and discounts, and investments, including bills rediscounted with Federal Reserve Bank: Mar.25 15,982,9881,070,9065,911,471 918,350 1,540,084603,591 484,244 2,367,805578,306 324,056 596,345 320,0651,267,765 Apr.l 15,902,7131,062,970 5,889,427907,779 1,525,615606,830 480,139 2,358,605572,636 323,107 591,251 318,160 1,266,194 Apr.8 15,776,9041,047,5415,849,563 896,865 1,512,820 474,573 2,335,897569, 523 319,961 590,818 318,6241,261,835 Apr.15 15,755,648.1,044,7715,835,356 905,883 1,522,034598,717 472,310 2,330,019566,496 321,363 578,468 313,4341,266,797 Reserve with Federal Reserve Bank: Mar.25 1,259,573 73,128 586,301 63,648 97,035 32,072 29,430 175,695 40,232 19,14 43,403 22,289 77,195 Apr.l 1,263,106 72,211 606,488 69,713 93,169 33,348 27,516 169,572 40,138 19,475 39,885 20,794 70,797 Apr.8 1,251,801 74,080 577,214 65,061 94,215 35,035 25,190 175,433 42,323 20,384 46,942 21,704 74,220 Apr.15 1,269,570 73,450 606,053 65,42,r 93,695 32,227 26,657 177,934 40,838 18,786 40,474 21,241 72,790 Cash in vault: Mar.25 314,764 21,904 104,255 16,834 29,403 14,834 10,983 52,520 8,847 7,372 13,330 10,076 24,406 Apr.l 300,469 21,256 98,068 15,770 28,626 14,049 10,780 51,401 8,473 6,508 12,309 9,965 23,264 Apr.8 316,684 21,846 105,236 15,953 29,508 14,479 11,962 54,471 9,019 7,101 12,943 9,985 24,181 Apr.15 307,943 20,874 104,734 15,931 28,563 15,515 10,224 51,486 8,428 6,576 12,270 10,071 23,271 Net demand deposits: Mar.25 10,185,727 705,606 4,545,463 623,764 854,366 317,251 229,905 1,257,524 308,782 185,240 384,085 202,611 571,130 Apr.l 10,270,573 713,4471 4,663,402 631,704 845,926 316,352 231,423 1,229,868 311,837 182,673 379,199 198,721 566,021 Apr.8 10,204,045 714,821 4,569,574 644,358 840,537 316,313 228,159 1,249,808314,376 180,502 380,871 200,003 564,723 Apr. 15 10,263,390 727,492 4,607,862 632,188 832,766 312,329 231,598 1,279,796 315,677 179,512 378,529 200,299 565,342 Time deposits: Mar.25 2,932,472 168,464 459,604 38,951 432,936 117,509 143,189 658,010 143,336 69,778 101,240 59,868 539,587 Apr.l 2,925,227 168,432 452,560 39,620 433,368 118,486 142,355 657,258 143,138 69,513 101,201 60,040 539,256 Apr.8 2,923,013 168,934 460,233 39,409 424,659 119,500 141,761 656,424 143,190 69,432 100,608 60,223 538,640 Apr.15 2,923,718 167,685 452,130 40,950 425,754 119,002 142,285 653,115 143,450 69,293 103,598 60,570 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

MAT, 1921. FEDERAL RESERVE BULLETIN. 631 PRINCIPAL RE3OURCE3 AND LIABILITIES OF MEMBER BANKS IN LEADING CITIES, ON FRIDAYS FROM MAR. 25 TO APR. 15, 1921—Continued. 1. ALL REPORTING MEMBER BANKS IN EACH FEDERAL RESERVE DISTRICT-Continued. [In thousands of dollars.] Total. 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 - . A t tl a a . n- C g h o ic . a- Lo S u t. is. n M e l a is i p n . o - - K C s i a a t n y s - . Dallas. F c S i r s a a c n n o - . Government deposits: Mar. 25 328,613 24,750 170,639 36,560 29,851 8,214 2,323 26,125 6,437 4,156 4,091 1,835 13,632 Apr.l 325,765 24,749 170,639 35,935 29,938 8,147 2,060 25,010 6,527 4,156 4,091 1,835 12,678 Apr. 8 304,287 23,324 162,094 34,123 28,169 7,768 1,961 18,707 6,200 3,949 3,740 1,784 12,468 Apr. 15 329,192 26,442 167,211 36,725 28,030 8,343 2,943 25,635 7,086 4,088 2,464 12,145 Bills payable with Federal Reserve Bank: Secured by United States Government obligations- Mar. 25 573,124 30,289 256,003 45,662 33,473 25,531 27,110 69,098 19,226 5,180 19,552 9,537 32,463 Apr.l.... 526,021 25,026 224,015 44,101 35,121 28,014 26,628 66,523 17,165 4,551 17,993 9,288 27 596 Apr. 8 499,317 20,898 213,357 40,440 33,538 24,566 24,831 66,124 16,557 4,563 18,515 8,182 27,'746 Apr. 15 503,256 14,173 223,120 42,207 37,062 24,736 25,346 63,556 16,079 4,248 16,880 6,119 29,730 All other- Mar. 25 3,993 36 130 2,800 190 367 100 280 Apr. 1.... 4,668 36 95 3,500 357 100 580 Apr. 8 6,195 36 95 650 4,137 357 100 820 Apr. 15 1,685 278 130 357 100 820 Bills rediscounted with Federal Reserve Bank: Secured by United States Government obligations- Mar. 25 18,294 94,710 35,334 7,189 3,268 8,558 18,852 3,742 781 4,001 586 3,334 Apr.l 183,338 17,253 84,128 31,216 7,038 3,562 8,228 19,181 5,026 547 3,469 755 2,935 Apr. 8 197,061 14,632 102,338 30,476 6,592 3,775 7,895 17,991 4,675 527 3,625 3,646 Apr. 15 190,802 12,265 100,311 30,573 6,758 2,832 7,140 17,208 4,856 531 4,093 3,372 All other— Mar.25 988,420 75,477 307,428 42,399 65,954 40,008 33,614 223,306 42,513 25,944 44,276 17,348 70,153 Apr.l 971,286 79,238 277,098 41,716 66,809 41,679 33,688 235,425 37,666 27,028 40,990 17,293 72,656 Apr. 8 928,003 64,611 292,931 25,474 66,422 42,338 31,257 209,606 35,776 28,920 40,824 16,911 72,933 .. Apr. 15 885,169 55,804 280,510 35,968 75,410 41,021 27,350 185,550 30,508 27,849 39,689 17,498 68,012 2. MEMBER BANKS IN FEDERAL RESERVE BANK CITIES. [In thousands of dollars.] Number of reporting banks: Mar.25 26 15 Apr.l 285 15 Apr.8 285 15 Apr. 15 284 15 Loans and discounts, including bills rediscounted, with Federal Reserve Bank: Secured by United States Government obligations- Mar. 25 558,372 38,794 313,365 68,719 17,411 6,442 3,814 66,514 13,577 1,246 6,785 2,164 12,541 Apr.l 553,228 38,156 312,000 65,687 17,448 6,412 3,673 65,769 14,969 1,206 6,819 1,992 12,097 Apr. 8 550,745 33,977 313,065 64,962 17,472 6,419 3,652 66,694 14,815 1,241 6,821 2,008 12,619 Apr.15 540,881 32,753 308,055 65,203 17,745 6,358 3,691 63,434 15,004 i,410 5,872 1,900 12,456 Secured by stocks and bonds (other than United States Government obligations)— Mar.25 2,098,604 149,2831,062,760 184,709 135,488 15,625 9,539 317,285 87,648 32,706 28,374 9,051 66,136 Apr.l 2,112,481 149,2821.,081,193 187,929 135,644 15,489 9,576 312,004 87,456 31,206 27,737 9,191 65,774 Apr.8 2,073,367 145,6031,073,825 185,234 134,795 15,422 9,042 306,478 87,281 12,212 27,874 9,380 66,221 Apr.15 2,056,612 143,1651,061,236 183,806 134,471 15,412 9,203 308,039 88,750 13,310 24,942 9,414 64,864 All other— Mar.25 5,810,968 511,769 22,,773,443 372,576 278,617 69,383 57,257 861,567 211,904 96,216 139,410 58,564 Apr.l 5,777,019 511,893 22,,743,151 370,748 279,690 69,816 53,791 862,235 207,608 96,896 141,059 58,442 381,690 Apr.8 5,751,077 506,429 22,,727,043 363,009 277,008 69,921 54,371 849,622 207,059 114,797 142,432 58,662 380,724 Apr.15 5,692,739 498; 568 2,700,146366,703 275,555 70,178 54,200 839,364 201,028 113,673 140,933 54,441 377,950 Total loans and discounts, including bills rediscounted with Federal Reserve Bank- Mar. 25 8,467,944 699,846 4,149,568 626,004 431,516 91,450 70,6101,245,366 313,129 137,168 174,569 69,779 458,939 Apr.l 8,442,728 699,33114,136,344 624,364 432,782 91,717 67,0401,240,008 310,033; 136,308 175,615 69,625 459,561 Apr.8 8,375,189 686,009 4,113,933 613,205 429,275 91,762 67,0651,222,794 309,155i 135,250 177,127 70,050 459,564 Apr.15 8,290,232 674,486:4,069,437*615,712 427,771 91,948 67,0941,210,837 304,782 135,393 171,747 65,755 455,270 United States bonds: Mar.25 434,371 9,723 258,0221 32,314 8,789 7,264 19,867 13,713 4,441 12,205 8,084 55,528 Apr.l 435,479 9,738 256,997 32,268 8,831 7,263 19,899 13,602 4,420 12,511 8,111 57,477 Apr.8 436,991 9,740 260,549 32,339 7,618 7,263 19,812 13,184 4,433 11,774 7,686 58,231 Apr.15 440,733' 9,863! 261,094' 32,548 8,730 7,260 20,192 13,087' 4,413 11,286 9,593 58,307 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

632 FEDERAL RESERVE BULLETIN. MAT, 1921. PRINCIPAL RESOURCES AND LIABILITIES OF MEMBER BANKS IN LEADING CITIES, ON FRIDAYS FROM MAR. 25 TO APR. 15, 1921—Continued. 2. MEMBER BANKS IN FEDERAL RESERVE BANK CITIES—Continued. [In thousands of dollars.] Total. 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 - . A t tl a a . n- C g h o ic . a- Lo S u t. is. n M e l a is i p n . o - - K C s i a a t n s y - . Dallas. F c S i r s a a c n n o - . United States Victory Notes: Mar.25 106,926 533 73,172 6,816 2,195 181 65 12,877 431 461 1,195 8,969 Apr.l 105,742 532 72,957 6,784 2,194 181 65 12,219 416 473 750 9,140 Apr.8 106,533 536 72,349 6,838 2,128 181 65 13,010 413 473 668 9,841 Apr.15 106,778 536 72,579 6,743 2,028 181 6i 12,909 499 473 534 10,200 United States certificates of indebtedness: Mar.25 197,238 8,573 136,580 21,587 1,492 288 225 12,182 2,106 1,506 1,170 9,724 Apr.l 162,694 2,823 125,810 12,991 967 287 225 9,121 758 768 1,005 7 441 Apr.8 154,289 3,289 116,412 14,188 802 287 225 9,551 390 482 634 995 7,034 Apr.15 198,487 9,369 136,537 19,773 2,800 413 225 14,911 913 2,339 1,141 1,361 8,705 Other bonds, stocks, and securities: Mar.25 1,121,154 47,910 559,099 125,895 67,956 4,101 3,196 146,613 41,845 18,414 4,232 93,525 Apr.l 1,127,186 49,437 564,161 126,014 67,163 4,022 3,220 146,622 41,799 8,452 17,895 4,429 93,972 Apr.8 1,110,003 49,453 555,555 125,518 67,385 4,114 3,221 143,963 41,432 8,299 16,968 4,447 89,648 Apr.15 1,119,868 50,238 565,417 126/"" 66,709 4,125 3,226 145,378 42,069 8,284 11,074 2,405 94,757 Total loans and discounts, and investments, including bills rediscounted with Federal Reserve Bank: Mar.25 10,327,633 766,5855,176,441 812,616 511,948 103,284 5171,436,905 371,224 152,243 207, 83,296 626,685 Apr.l 10,273,829 761,8615,156,269 802,421 511,937 103,470 912 1,427,869 366,608 150,151 207,539 83,201 627,591 Apr.8 10,183,005 749,0275,118,798 792,088 507,208 103,607 9381,409,130 364,574 148,937 207,171 83,209 624,318 Apr.15 10,156,098 744,4925,105,064 800,962 508,038 103,927 9701,404,227 361,350 150,902 195,792 79,135 627,239 Reserve with Federal Reserve Bank: Mar.25 915,112 58,756 539,619 57,824 26,842 5,672 3,633 126,402 30,038 8,584 15,189 5, 36,885 Apr.l 930,502 57,032 563,146 62,601 28,591 5,737 3,945 121,119 29,189 8,917 14,206 5,363 30,656 Apr.8 910,951 58,589 533,576 59,670 26,737 5,824 4,025 125,199 30,616 10,733 18,563 5,420 31,999 Apr.15 929,071 58,523 558,668 59,110 26,192 5,995 3,699 127,796 30,029 13,587 5,039 31,613 Cash in vault: Mar.25 181,909 13,321 92,258 13,690 6,909 1,196 1,909 31,308 4,077 2,441 3,402 1/ 9,492 Apr.l 172,604 12,771 86,837 13,084 7,153 1,160 1,975 29,649 3,866 2,012 3,144 1,795 9,158 Apr.8 181,457 13,187 92,715 12,952 7,30i 1,189 1,939 31,263 4,137 2,417 3,201 1,819 9,334 Aror. 15 178,875 12,761 92,869 13,147 7,405 1,093 1,868 29,895 3,864 2,133 3,058 1.840 8.942 Net demand deposits: A A M p p a r r r . . . 2 8 l 5 7 7 7 , , , 0 1 1 8 7 1 2 6 5 , , , 2 0 5 6 3 1 3 4 4 5 5 5 4 5 5 7 3 0 ,' , , 6 8 . 1 3 5 5 1 ' 6 4' 4 8: t , , , , , 0 1 4 8 7 ,0 1 t 8 5 6 7 , , 3 8 5 , , 4 9 6 8 6 9 9 05 5 5 4 4 6 9 1 2 , , , 1 5 5 2 4 9 6 8 7 2 2 2 0 0 0 8 8 5 , , , 2 1 3 4 5 7 1 5 7 4 5 4 8 8 0 , , , 4 0 1 1 5 3 6 6 0 3 3 3 5 6 5 , , , 4 2 4 5 7 5 2 7 8 8 8 87 8 5 o 5 5 , , , 9 0 1 0 4 1 3 4 7 2 2 2 1 1 1 3 5 5 , , , 3 5 9 6 3 8 2 0 2 8 8 8 4 5 4 , , , 4 7 2 9 3 3 1 9 4 1 1 1 3 3 3 8 9 7 , , , 2 9 7 6 0 3 5 5 2 5 5 54 4 5 , , , 2 6 4 7 2 2 ( 5 4 i 2 2 2 5 5 5 9 3 6 , , , 2 2 3 1 1 1 8 4 2 Apr.15 7,164,112 566i,." "194 -4,, 118,470551,368 201,823 49,116 37,255 894,000 216,603 84,429 136,329 55,029 253,496 Time deposits: Mar.25 1,365,683 64,025 297,158 27,067 232,612 23,252 21,667 313,991 82,451 27,498 11,554 7,629 256,779 Apr.l 1,360,168 64,027 289,931 27,666 233,648 23,319 21,688 314,611 82,445 27,210 11,603 7,699 256,321 Apr.8 1,358,670 6b,707 297,871 27,433 225,201 23,321 21,577 314,370 82,528 27,074 11,628 7,555 258,605 Apr.15 1,361,704 63,343 289,681 28,809 227,259 23,217 21,829 313,150 82,282 27,055 15,038 7,600 262,461 Government deposits: Mar.25 264,424 19,899 165,208 35,402 5,168 1,297 251 14,157 5,002 2,139 3,352 1,459 11,090 Apr. 1 262,243 19,S98 165,208 34,777 5,207 1,227 240 13,098 5,002 2,159 3,352 1,459 10,636 Apr.8 249,091 18,904 156,940 33,024 4,968 1,227 2-il 12,445 4,751 2,053 3,041 1,427 10,100 Apr.15 264,442 21,288 162,875 35,600 3,543 950 247 16,357 6,424 3,450 3,305 1,923 8,502 Bills payable with Federal Reserve Bank: Secured by United States Government obligations— Mar.25 382,197 26,226 233,609 41,571 2,749 5,433 705 21,618 12,493 2,030 11,005 1,600 23,158 A;r.l 336, 075 21,911 201,745 40,954 2,600 6,512 705 20,856 10,004 999J 9,357 1,250 19,180 Apr.8 321,090 18,283 191,100 37,394 5,100 6,201 855 19,952 10,148 9991 10,227 1,350 19,481 Apr.15 324,538 11,233 199,601 39,561 5,300 5,473 705 21,596 9,597 887 8,818 980 20,787 All other— Mar.25 2,800 2,800 Apr.l 3,50C 3,500 Apr.8 4,787 650 4,137 Apr.15 130 130 Bills rediscounted with Federal Reserve Bank: Secured by United States Government obligations— Mar.25 164,272 17,773 92,678 35,165 798 11,135 1,770 1,113 93 1,890 Apr.l 149,497 16,882 82,163 31,04' 1,189 745 11,087 3,380 493 1,212 105 1,194 Apr.8 163,864 14,261 100,386 30,307 657 723 10,314 3,161 478 1,335 112 2,130 Apr.15 158,504 11,894 98,427 30,404 854 602 9,393 3,176 488 1,149 105 2,012 All other— Mar.25 721,541 75, II1 279,103 40,246 52,271 8,361i 4,597 146,447 26,618 19,044 20,528 5,298 43,911 Apr.l 70,5,275 78,843 249,089 39,350 53,002 8,524! 5,242 158,487 21,520 18,991 19,721 5,336 45,170 Apr.8 662,975 64,430 268,175 23,510 49,849 9,520 5,2ol 150,263 20,856 21,090 18,622 5,651 45,778 Apr.15 629,993 55,519 253,857 34,555 55,917 9,0851 4,338 113,847 16,460 20,213 18,422 5,830 41,950 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

MAT, 1921. FEDERAL RESERVE BULLETIN. 633 PRINCIPAL RESOURCES AND LIABILITIES OF MEMBER BANKS IN LEADING CITIES, ON FRIDAYS FROM MAR. 25 TO APR. 15, 1921—Continued. 3. MEMBER BANKS IN FEDERAL RESERVE BRANCH CITIES. [In thousands of dollars.] San Total. Y N o e r w k.i C la l n e d v . e * - m R o i n ch d - .8 A t t a l . a * n- C g h o i . c 5 a- Lo S u t i . s.6 a M po in li n s e .? - K C a i n ty s . a s s Dallas .9 c F is r c a o n .1 - 0 Number of reporting banks: Mar.25 216 18 45 Apr. 1 216 •18 45 Apr. 8 216 18 45 Apr. 15 216 18 45 Loans and discounts, including bills rediscounted with Federal Reserve Bank: Secured by United States Government obligations— Mar.25 113,772 9,547 34,363 7,471 14,150 11,558 8,004 10,540 2,214 15,863 Apr.l 113,637 9,396 34,813 7,560 13,723 12,262 7,659 10,139 2,152 15,869 Apr.8 112,606 9,219 34,899 13,544 11,350 7,633 10,315 2,051 15,887 Apr.15 111,902 9,051 34,731 7^290 13,008 12,165 7,564 10,281 2,068 15,684 Secured by stocks and bonds (other than United States Government obligations)— Mar.25 490,012 57,722 154,742 28,716 36,370 61,745 30,523 510 29,298 15,226 75,160 Apr.l 487,750 57,063 154,318 28,475 35,931 61,069 30,926 509 28,568 15,152 75,739 Apr.8 487,210 55,986 154,727 28,316 35,870 61,130 30,624 509 29,549 14,894 75,605 Apr.15 483,993 54,813 157,264 28,317 35,434 60,341 30,162 507 27,431 14,836 74,888 All other— Mar.25 1,580,600 108,978 97,572 190,585 185,820 110,607 9,220 154,622 66,091 369,037 Apr.l 1,566,362 109,546 279,082 96,660 189,041 185,650 110,281 9,257 152,881 66,081 367,883 Apr.8 1,553,728 108,939 273,097 96,006 185,423 186,888 108,792 9,260 150,873 66,117 Apr.15 1,550,820 110,381 274,182 97,131 183,998 181,605 108,779 9,276 151,251 66,130 368,087 Total loans and discounts, including bills rediscounted with Federal Reserve Bank— Mar.25 2,184,384 176,247 477,173 133,759 241,105 259,123 149,134 1,792 194,460 83,531 460,060 Apr.l 2,167,749 176,005 468,213 132,695 238,695 258,981 148,866 1,830 191,588 83,385 459,491 Apr.8 2,153,544 174,144 462,723 131,968 234,837 259,368 147,049 1,831 190,737 83,062 459,825 Apr.15 2,146,715 174,245 466,177 132,738 232,440 254, 111 146,505 188,963 83,034 458,659 United States bonds: Mar.25 219,228 14,889 64,843 13,907 27,908 21,873 13,246 714 12,895 13,668 35,285 Apr.l 220,253 15,017 64,529 14,805 27,915 22,725 13,140 714 12,986 13,718 34,704 Apr. 8 219,204 15,533 64,633 14,569 27,846 21,866 13,116 714 12,948 13,466 34,513 Apr.15 218,630 15,766 64,868 14,968 27,830 21,862 13,211 715 12,872 12,362 34,176 United States Victory notes: Mar.25 50,901 1,994 15,371 3,182 2,363 15,866 1,829 58 1,042 798 Apr.l 49,693 1,972 15,295 3,187 2,412 15,005 1,756 57 1,048 660 8,301 Apr.8 50,255 1,969 15,221 3,188 2,423 15,862 1,643 47 1,021 623 8,258 Apr.15 50,443 1,975 15,430 3,041 2,460 15,861 1,641 56 1,039 619 8,321 United States certificates of indebtedness: Mar.25 42,930 2,036 13,678 2,447 1,650 10,933 10 2,580 509 Apr.l 36,546 1,614 11,228 1,846 1,624 9,478 318 10 1,807 477 8,144 Apr. 8 35,757 1,588 9,802 953 1,550 10,343 269 10 2,633 477 8,132 Apr.15 50,495 2,253 15,121 2,423 1,930 12,962 753 10 3,941 681 10,421 Other bonds, stocks, and securities: Mar. 25 576,127 77,548 182,035 21,312 26,230 146,153 20,806 785 25,722 3,104 72,432 Apr. 1 575,412 77,096 179,661 21,340 29,130 146,404 20,464 774 25,451 3,082 72,010 Apr.8 575,940 76,699 179,977 21,611 29,033 146,823 21,000 792 25,530 3,139 71,336 Apr. 15 576,858 76,935 179,702 21,536 28,802 146,826 21,429 791 25,162 3,245 72,430 Total loans and discounts, and investments, including bills rediscounted with Federal Reserve Bank: Mar.25 3,073,570 272,714 753,100 174,607 299,256 453,948 185,504 11,359 101,610 584,773 Apr. 1 3,049,653 271,704 738,926 173,873 299,776 452,593 184,544 11,385 232,880 101,322 582,650 Apr.8 3.034,700 269,933 732,356 172,289 295,689 454,262 183,077 11,394 232,869 100,767 582,064 Apr.15 3,043,141 271,174 741,298 174,706 293,462 451,622 183,539 11,415 231,977 99,941 584,007 Reserve with Federal Reserve Bank: Mar.25 195,963 16,633 53,587 10,880 20,628 23,344 9,479 660 16,355 7,370 37,027 Apr. 1 182,994 15,813 47,556 11,374 19,019 20,701 10,018 769 14,854 6,725 36,165 Apr.8 194,494 16,428 50,268 12,074 16,465 24,707 10,951 683 16,863 7,544 38,511 Apr. 15 190,715 18,027 51,430 10,534 18,305 21,355 9,988 583 16,268 6,907 37,318 Cash in vault: Mar.25 60,003 2,362 13,465 4,431 6,230 7,750 3,981 254 5,714 2,826 12,990 Apr. 1 57,995 2,343 12,876 4,198 6,334 7,821 3,773 247 5,337 2,812 12,254 Apr.8 62,599 2,475 13,357 4,306 7,178 9,236 4,038 248 5,869 2,823 13,069 Apr.15 60,638 2,334 12,608 6,530 5,878 8,184 3,782 253 5,430 3,006 12,633 Net demand deposits: Mar.25 1,622,249 154,142 479,119 101,632 153,635 157,817 86,579 5,024 142,384 61,794 280,123 Apr.l 1,611,320 157,278 468,542 99,986 154,569 159,264 87,089 5,159 140,432 60,994 278,007 Apr. 8 1,613,702 157,371 464,950 102,110 151,858 159,047 89,020 5,031 142,012 61,013 281,290 Apr. 15 1,619,017 155,967 463,614 97,925 153,410 171,454 89,804 5,079 140,190 60,684 280,890 Time deposits: Mar.25 916,161 69,501 118,244 20,109 83,360 214,723 51,170 3,177 61.999 24,260 269,618 Apr. 1 915,763 69,740 117,962 21,438 82,788 213,449 50,936 3,162 62,194 24,365 269,729 Apr. 8 913,755 69,484 117,982 21,471 82,578 212,947 50,929 3,155 61,900 24,547 268,762 Apr.15 912,929 69,758 117,360 21,337 82,823 211,070 51,462 3,153 61,243 24,345 270,378 Government deposits: Mar.25 37,735 3,062 21,602 2,604 1,601 5,100 1,435 124 322 1,885 Apr. 1 37,623 3,062 21,652 2,604 1,349 5,100 1,525 124 322 1,885 Apr.8 35,445 2,908 20,305 2,442 1,283 4,845 1,449 117 306 1,790 Apr.15 40,400 1,978 23,083 4,038 2,212 4,050 1,656 192 435 2,756 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

634 FEDERAL. RESERVE BULLETIN. MAT, 1921. PRINCIPAL RESOURCES AND LIABILITIES OF MEMBER BANKS IN LEADING CITIES, ON FRIDAYS FROM MAR. 25 TO APR. 15,1921—Continued. 3. MEMBER BANKS IN FEDERAL RESERVE BRANCH CITIES—Continued. [In thousands of dollars.] Total. Y N o e r w k.i C la l n e d v . e 2 - m R o i n ch d - .8 A t t a la .* n- C g h o ic .5 a- ' Lo S u t i . s/ a M p i o n l n is e . - 7 K C a i n ty s . a s s Dallas.9 c F i S s r c a a o n n . - 10 Bills payable with Federal Reserve Bank: Secured by United States Government obligations— Mar.25 129,564 15,421 29,018 8,093 22,974 31,959 6,170 72 5,126 3,240 7,491 Apr.l 128,340 13,610 30,484 9,573 22,692 30,396 6,573 122 5,294 2,995 6,601 Apr. 8 120,226 13,869 26,485 7,174 21,218 31,870 5,821 72 5,037 2,170 6,510 Apr. 15 123,087 14;691 30,316 8,407 21,898 28,178 5,969 72 4,821 1,395 7,340 All other— Mar.25 845 130 90 190 75 100 260 Apr.l 95 75 100 560 Apr. 8 1,070 95 75 100 800 Apr. 15 1,253 . 278 75 100 800 Bills rediscounted with Federal Reserve Bank: Secured by United States Government obligations— Mar.25 24,833 1,143 5,509 2,124 5,623 5,502 1,972 1,350 313 1,297 Apr. 1 23,991 1,112 5,508 1,935 5,463 5,613 1,646 777 337 1,600 Apr. 8 23,366 1,096 5,630 2,206 5,160 5,360 1,514 767 289 1,344 Apr. 15 23,079 1,053 5,625 1,791 4,683 5,475 1,680 1,239 299 1,234 All other— Mar.25 137,990 1*5,591 10,389 14,194 17,500 21,782 15,178 482 13,659 6,291 22,924 Apr. 1 137,007 14,556 10,077 15,675 17,424 21,325 15,677 440 11,721 6,267 23,845 Apr. 8 134,665 12,709 11,791 14,498 14,674 24,805 14,196 475 12,036 5,863 23,618 Apr. 15 128,253 15,826 13,129 13,948 12,631 18,765 13,408 475 11,550 5,728 22,793 » Buffalo. « Louisville, Memphis, and Little Rock. 2 Cincinnati and Pittsburgh. ' Helena. * Baltimore. s Omaha, Denver, and Oklahoma City. * New Orleans, Jacksonville, Nashville, and Birmingham. 9 El Paso and Houston. 6 Detroit. 10 Spokane, Portland, Seattle, Salt Lake City, and Los Angeles. BANK DEBITS. the larger volume of stock exchange transactions during that week. Debits to individual accounts, as indicators Comparison of the movement of debits for of the volume of the Nation's business, show the four weeks under review with that for the an upward tendency for the four-week period corresponding period of 1920 is vitiated by the ending April 20. The first of the four weeks fact that March 31, with its heavy end-of-month saw a material reduction in debits, namely, and end-of-quarter payments, was included in from $7,538,000,000 to $6,393,000,000, but this 1920 in the first week of the period, while in reduction was due in part to the observance of the current year it is included in the second Good Friday on March 25 as a holiday in some week. Outside of this fortuitous difference, of the Federal Reserve districts. The debits the general trend for the period is similar for rose for the following week to $7,696,000,000, the two years. It is noteworthy, however, apparently as the consequence of end-of-month that for the last four weeks this year's totals and end-of-quarter payments. After a drop were below last year's by 25 per cent, on the to $7,106,000,000 for the week ending April 13, average, while for the immediately preceding debits rose again to $7,648,000,000 for the last four weeks the difference between the two week of the period. Fluctuations of debits in years was 18 per cent, so that the indications New York City were parallel to those in all are that the relative volume of business this reporting centers, a 10 per cent increase for the year, as compared with last year, is smaller in most recent week being attributable in part to the more recent period than four weeks earlier. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

MAY, 1921. FEDEKAL RESERVE BULLETIN". 635 DEBITS TO INDIVIDUAL ACCOUNTS AT BANKS IN REPORTING CLEARING HOUSE CENTERS — -DEBITS FOR !9ZO — — -—- — __ PEBITS FOR 1921 — —1— 1 M i 1 §2 R-| 1 i is - ___ ° - ! 1 1.000 1.000 i 4 1 1 0 9 . . 0 0 0 0 0 0 - V \ \ "$ \ \ ( —ii \ \ '/ A II \ \ - 1 #- V J - A I _ r J / I / i N \ A i - " / TV \ " \i ii i \ \ _ i ^s f4 \ \ 1 9 0 .0 .0 0 0 0 0 8.000 V N /\ 1 _ 8.000 \ / \ /s 1 / - j 7.000 \ / \ \ r 7.000 / j i 1 1 6.000 6.000 2 j \ 5.000 V \ *\ n ~A K | ] /\ t" X i 1 1 A i [ • \ / > 5.000 4.000 i \l\ k N /\ \ / / ^« i /i i \ 4000 3.000 3.000 2.000 2.000 1.000 1.000 0 [ I AHD 2 : BANKS IN NEW YORK CITY. 3 AND 4 BANKS IN ALL REPORTING CENTERS. s 1 6.000 6.000 5000 \ / \ \ /V •1 \ y • ... .-• \ N \ I fi\ 5.000 4000 <*\ N f \ / 4.000 »—" V \/ 3000 3.000 2.000 I 2.000 1.000 i.000 BANKS OUTSIDE OF NEW YORK CITY. 1I 1 I I t 1 I MM | 1 1 1 11 11 i 1 | 1I 1 1j i ! I i 1 1 1 11_L L1 1 1 1 920 7 14 2128 4 II 18 253 10 17 2* 3!7 J 28 5 12 J926 2 9 16 Z3 307 142! ?B 4 11 1825 1 3 \S 22 29 <3 13 20 273 10 17 24 ! 3 15 22 29 1920 S 12 1926 2 9 16 23 2 9 16 23 306 13 20 174 II 1825 1 8 15 22 296 1320 17 3 10 1724 3! 7 14 2!28 J 12 19 262 9 16 2330 7 14 21 28 192! JAN FEB. | MAR. APR MAY | JUNE JULY AUG. | SEPT. 1 OCT. 1 NOV. I DEC. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

636 FEDERAL, RESERVE BULLETIN. MAY, 1921. DEBITS TO INDIVIDUAL ACCOUNTS AT CLEARING-HOUSE BANKS. SUMMARY BY FEDERAL RESERVE DISTRICTS. [In thousands of dollars.] Num- 1921 1920 ber of Week ending- Week ending- Federal Reserve district. centers included. Mar. 30. Apr. 6. Apr. 13. Apr. 20. Mar. 31. Apr. 7. Apr. 14. Apr. 21 Boston 333,877 400,228 357,480 373,078 467,392 448,994 542,868 538,772 New York 3,250,158 ,116,027 3,657,732 4,037,761 5,196,609 4,534,986 5,036,351 5,599,701 Philadelphia.. 319,689 404,289 354,470 366,353 420,302 425,577 432,958 454,879 Cleveland 392,661 432,208 440,795 419,867 502,297 516,029 585,948 551,119 Richmond 137,947 160,439 142,707 155,472 172,583 185,544 186,362 194,823 Atlanta 154,735 194,975 166,696 182,766 258,038 265,557 274,054 267,001 Chicago 787,512 828,870 863,310 935,028 1,162,838 1,144,788 1,100,768 1,224,250 St. Louis 152,171 171,541 177,110 187,447 227,260 252,450 247,343 258,752 Minneapolis... 101,077 136,323 127,901 130,211 154,446 160,427 177,597 171,787 Kansas City... 207,590 249,706 228,681 234,850 323,191 311,283 303,195 299,812 Dallas 124,963 135,654 125,638 132,469 152,700 158,108 156,589 149,099 San Francisco. 430,520 465,948 463,230 493,087 505,325 532,800 553,114 572,328 Total... 153 6,392,900 7,696,208 7,105,750 7,648,389 9,542,781 ;6,543 9,597,147 10,282,323 NOOTTEE.-.—Figures for the following centers, while shown in the body of the statement, are not included in the summary, complete data for these centerr:s not being available for each week under review: Harrisburg, Pa.; Johnstown, Pa.; Reading, Pa.; Cincinnati, Ohio; Greenville, S. C; Huntiiington, W. Va.; Washington, D. C; Wilmington, N. C; Moline, 111.; East St. Louis and National Stock Yards, 111.; Springfield, 111.; Quincy. 111.; Sppr]ingfield, Mo.; Atchison, Kans. ^ *' DATA FOR EACH REPORTING CENTER. [In thousands of dollars.] 1921. 1920. Week ending- Week ending- Mar. 30. Apr. 6. Apr. 13. Apr. 20. Mar. 31. Apr. 7. Apr. 14 Apr. 21. District No. 1—Boston: Bangor 3,327 3,772 3,488 3, 514 3,611 3,637 ?,, 941 3,363 Boston i 216, 886 i 247,472 i 227,689 1 236, 767 305, 868 268,705 366, 899 351,982 Do 278,073 322, 534 297,681 309,106 Fall River., 5,036 6,431 5,194 5,419 9,778 10,135 11.131 7,842 Hartford 16,623 27,209 20,216 24,622 22,178 27,891 24, 084 29; 655 Holyoke 2,709 3,347 2,775 2, 843 3,625 4,020 3,770 3,941 Lowell 4, 525 4,482 4,158 5,429 6,061 5,093 Manchester 4,006 5,180 4,178 4,290 5,123 5,854 4,947 5,918 New Bedford 4,740 5,338 5,365 5,319 8, 883 9,283 10,672 10,763 New Haven 13,027 18,345 15,963 17,422 18,245 20,381 19,401 20,763 Portland 6,929 9,099 7,202 6,217 7, 520 8,421 7,790 Providence 27, 831 31,595 28,458 31,816 37,815 38,576 41,185 46,953 Springfield 11,263 14.712 12,448 11,398 14,806 18,022 15,814 17, 799 Waterbury 4,314 6,715 5,127 5,311 6,732 8,316 7,502 7,080 Worcester 13,192 16,488 14,895 13,982 17,979 19, 854 19,671 18,754 District No. 2—New York: Albany 24,058 28,106 22, 879 21,397 18,309 22.647 25,511 26, 943 Bmghamton 3,198 4,287 3,979 4,131 4,211 4,831 4,840 4,813 Buffalo 48, S97 62, 730 56,856 60, 527 64,718 " 72,388 64,994 64,474 New York 3,133,090 3,967; 755 3,527, 728 3,900,096 5,060,233 4,370,408 4,885,191 5,445, 815 Dist P S R ri a y o c s r t c s a h a N c e i u e o s s t . e e 3 r —Philadelphia: 2 1 4 4 2 , , , 0 1 7 1 2 7 4 7 4 3 1 4 3 5 , , , 5 1 5 1 2 1 1 1 7 2 13 4 8 , , , 5 1 5 9 0 9 2 4 4 3 1 5 1 4 , , , 1 9 4 4 9 7 9 0 1 2 1 5 8 5 , , , 3 1 6 1 6 6 3 0 5 3 2 5 2 6 , , . 7 3 6 2 3 4 5 8 9 3 1 5 3 6 , , , 7 7 3 4 2 5 1 2 2 3 1 3 5 8 , , . 2 9 5 3 0 1 2 7 7 Altoona 3,187 2,842 3,124 3,442 ?,, 701 2,888 3,413 3,399 Chester 4,127 5,585 4,220 4,920 5,076 5,348 5,213 5,903 Harrisburg 5,750 1,931 6, 811 f>, 965 Johnstown 5,047 5,254 5,049 5,042 Lancaster 5,790 16,677 5, 946 5,819 8,672 15,202 7,553 8,030 PhiladclDhia 258, 762 324, 790 290,116 304, 044 350,158 342, 739 363,227 384,934 Reading 5,979 8,393 8,755 8,108 Scranton 14, 823 14,376 16,310 12,184 14,614 16,589 15,907 13,642 Trenton 9,753 11,290 10,555 11,512 11,313 13,450 11,385 12,000 Wilkes-iiarre 8,721 8,702 8,070 8,958 9,125 8,257 8,002 8,494 Williamsport 3,719 4,611 4,369 3,763 4,059 4, 752 4,837 4,268 Wilmington 6,705 8,921 7,235 7,615 8,829 9,605 8,240 8,987 York 4,102 6,495 4, 525 4,096 4,725 6,747 5,181 5,222 District No. 4—Cleveland: Akron 12,365 16,379 15,008 14,704 19,386 23, 018 33,735 34,136 Cincinnati 54, 758 70,138 72,842 65,451 Cleveland 120; 419 13S, 965 146, 850 133, 617 173,856 187,312 220,7C7 181,603 Columbus 25, 427 28,785 35,874 31,635 26,370 29,311 35,181 29,426 Dayton 11,879 13, 532 13,12S 12, 358 12,112 13,582 12,863 •12,14* Erie 6,752 6,267 6,256 7,151 6,596 7,795 8,575 Greensburg 3,949 3.825 3,865 4,007 4,446 3,643 4,624 4,843 Lexington 5,101 5,221 4,181 4,492 5,653 6,154 5,783 5,687 Oil City , 1,995 2,604 2, 357 2,82? 2,728 3,467 2,800 3, 524 » Debits of banks which submitted reports in 1920. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

MAT, 1921. FEDERAL RESERVE BULLETIN. 637 DEBITS TO INDIVIDUAL ACCOUNTS AT CLEARING-HOUSE BANKS-Continued. DATA FOR EACH REPORTING CENTER-Continued. [In thousands of dollars.] 1921. 1920. Week ending- Week ending- Mar. 30. Apr. 6. Apr. 13. Apr. 20. Mar. 31. Apr. 7. Apr. 14. Apr. 21. District No. 4—Cleveland—Continued. Pittsburgh 158, 945 161,736 159, 922 162,134 190,172 179, ISO 189,366 206,669 Springfield 3,960 4, 8S7 4,693 4,101 3,162 3,185 4,158 3,450 Toledo 20, 852 25,107 26, 273 25,160 30,127 34, 010 37,419 37,027 Wheeling 8,140 9,901 8,150 8, 696 10,114 9,724 11,104 10,511 Youngstown 10,731 14, 514 14,217 9,885 17, 020 16, 847 20, 383 13,520 District No. 5—Richmond: Baltimore 85,685 90,569 93,404 98,509 109,341 107,842 109,649 Charleston 4,723 7,263 5,571 6,387 11,290 11,445 9,332 9,500 Charlotte 4,974 5,756 5,048 6,006 8,776 8,737 9,560 10,844 Columbia 4,374 4,949 4,490 4,378 7,469 6,883 7,760 7,665 Greenville, S. C 2,283 3,177 3,981 3,069 Huntington 5,130 5,413 4,908 5,461 Norfolk 12,607 14,152 11,058 12,751 18,413 18,458 19,037 20,516 Raleigh 4,200 4,000 4,100 3,800 3,900 4,900 5,800 6,120 Richmond 21,384 24,628 21,871 28,746 24,226 25,780 27,031 30,529 Washington 29,572 40,155 36,319 37,649 Wilmington 4,714 6,132 5,048 5,902 District No. 6—Atlanta: Atlanta 20,055 25,174 22,544 25,588 33,040 34,742 34,894 38,472 Augusta 4,079 5,507 4,947 5,032 12,388 12,704 12,921 10,670 Birmingham 12,535 15,641 12,640 15,756 15,773 17,033 15,722 17,680 Chattanooga 7,508 8,411 8,952 10,146 9,893 12,116 11,920 13,432 Jacksonville 10,189 14,159 12,293 12,863 13,966 16,131 14,808 15,826 Knoxville 5,559 6,816 5,416 6,421 6,620 7,445 7,371 7,691 Macon 3,486 4,491 3,417 4,022 7,961 8,237 8,144 8,113 Mobile 5,918 6,256 4,669 6,519 10,292 9,996 9,036 10,096 Montgomery 3,004 3,612 2,886 4,216 5,223 5,776 5,364 6,144 Nashville 17,797 20,390 19,484 20,354 25,804 27,129 28,775 29,722 New Orleans 48,220 63,158 51,623 52,614 83,684 82,610 93,192 76,939 Pensacola 1 120 1,607 1,466 1,644 2,241 2,204 2,577 2,563 Savannah 8,498 11,619 8,781 10,099 22,718 19,471 20,387 20,631 T amp a 5,635 6,868 6,272 6,192 6,648 8,114 6,847 7,106 Vicksburg 1,132 1,266 1,306 1,300 1,787 1,849 2,096 1,916 District No. 7—Chicago: Bay City 2,588 2,781 2,328 2,308 3,707 4,094 4,020 3,839 Bloomington 2,481 2,983 3,203 2,564 3,775 4,253 3,681 2,922 Cedar Rapids 10,561 13,965 11,034 10,520 9,580 12,141 9,683 10,553 Chicago 521,575 514,728 553,907 593,607 766,881 720,501 679,290 737,506 Davenport 6,211 8,712 6,665 6,215 8,339 12,157 8,779 8,887 Decatur 3,158 4,451 3,043 3,388 5,094 4,693 3,990 4,322 Des Moines 16,766 17, 887 19,173 19,753 24,039 28,402 27,495 25,772 Detroit 86,123 101,273 103,257 128,265 146,054 141,422 149,304 206,456 Dubuque 2,883 3,410 2,826 3,163 3,146 3,015 4,152 3,595 Flint 3,623 4,210 4,509 5,426 10,476 14,198 7,719 12,868 Fort Wayne 5,970 7,273 7,206 7,699 7,516 7,461 8,866 8,218 Grand Rapids 16,017 15,346 18,252 18,756 18,867 25,553 19,617 24,820 Indianapolis 26,495 30,632 30,905 31,708 36,414 36,529 40,488 39,653 Jackson 3,243 3,125 3,195 3,549 2,707 3,231 4,138 5,579 Kalamazoo 3,630 4,354 4,094 4,289 5,627 5,427 5,454 5,730 Lansingg 4,003 4,801 5,236 5,415 6,982 5,678 7,518 6,937 Milwauukkeee 41,577 51,313 50,404 56,265 59,882 69,387 70,630 74,045 Moline 2,002 2,540 2,478 2,211 Peoria 7,173 8,676 7,982 8,477 11,683 11,432 10,773 10,805 Rockford 4,652 6,034 5,468 5,124 6,817 7,522 6,667 6,639 Sioux City 11,139 13,249 11,332 9,586 17,696 19,163 19,702 16,181 South Bend 5,118 6,481 5,890 6,155 2.984 3,129 3,739 3,987 Springfield, 111 5,960 7,108 5,737 5,867 Waterloo 2,526 3,186 3,401 2,796 4,372 5,400 5,063 4,936 District No. 8—St. Louis: East St. Louis and National Stock Yards. 7,418 030 i 8,535 8,914 Evansville 4.407 4,344 5,243 5,343 5,596 5,316 6,023 5,536 Little Rock 8,622 9,015 9,545 10,489 10,031 10,239 10,611 9,247 Louisville 119,690 123,513 1 21,718 i 24,472 32,234 35,809 37,596 38,792 Do 25,419 31,039 28,945 31,271 Memphis 17,110 16,247 20,808 20,858 34,988 38,042 37,263 38,771 S Q t u . i L nc o y uis 1102 2 , , 3 4 4 4 2 3 1118 3 . , 4 54 2 6 2 i 11 2 9 , , 4 7 7 9 4 6 i 12 2 6 , ; 4 2 4 8 7 5 *i44,"4ii' "i63,"044" ' 155," 850 *i66,*406 Do 113,525 389 134,832 140,306 Springfield, Mo 2,435 239 3,102 2,876 District No. 9—Minneapolis: Aberdeen 1,456 1,374 1,000 1,588 1,573 1,892 1,861 1,722 Billings 1,400 1,965 1,632 1,884 2,442 2,521 2,515 2 710 Duluth 11,109 14,453 15,266 15.159 16,423 15,120 20,346 20,371 Fargo 2,042 2,788 2,511 2,405 2,866 3,391 4,103 3,477 Grand Forks 997 1,269 1,236 1,071 1,583 2,109 2,113 1,987 Great Falls 1,457 1,723 1,647 1,752 2,297 1,893 2,017 2,317 Helena 1,467 2,483 1,922 2,201 2,081 2,741 2,449 2,014 Minneapolis 54,499 72,067 68,831 67,118 76,032 81,474 94,960 85,287 St. Paul 20,453 30,115 26,903 30.160 38,339 37,995 36,627 41,084 Sioux Falls 3,719 4,817 3,961 3,991 7,412 7,616 6,808 7,462 Superior 1,458 1,997 1,913 2,088 2,072 2,135 2,425 2,024 Winona 1,020 1,272 1,079 794 I 1,326 1,540 1,373 1,332 i Debits of banks which submitted reports in 1920. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

638 FEDERAL, RESERVE BULLETIN. MAT, 1921. DEBITS TO INDIVIDUAL ACCOUNTS AT CLEARING-HOUSE BANKS—Continued. DATA FOR EACH REPORTING CENTER-Continued. [In thousands of dollars.] 1921. 1920. Week ending- Week ending- Mar. 30. x\pr. 6. Apr. 13. Apr. 20. Mar. 31. Apr. 7. Apr. 14. Apr. 21. District No. 10—Kansas City: Atchison 1,200 1,240 1,300 Bartlesville 2,021 2,589 2,774 2,480 4,011 3,541 3,953 3,370 Cheyenne 1,686 1,821 1,912 1,727 2,430 2,433 1,672 1,720 Colorado Springs , 2,131 2,580 2,552 2,182 3,191 3,570 3,775 3,378 Denver 28,413 36,000 29,106 31,073 51,021 47,583 44,005 38,461 Joplin 1,824 2,259 2,198 2,173 4,037 3,719 4,846 4,478 Kansas City, Kans 3,325 3,137 3,357 3,223 4,537 3,907 4,436 3,866 Kansas City, Mo , 59,107 75,666 67,872 69,148 85,050 86,146 73,934 71,394 Muskogee 3,892 4,402 3,599 3,486 6,013 6,336 5,861 5,655 Oklahoma City 17,621 22,060 19,989 20,365 19,769 21,718 21 322 23,048 Omaha 38,877 42,867 40,395 44,029 66,459 57,801 59,116 66,248 Pueblo 4,335 5,651 4,812 4,356 4,823 5,055 5,771 3,213 St. Joseph 14,486 15,350 15,631 13,990 23,088 21,815 21,674 24,679 Topeka 2,537 4,639 2,983 4,098 5,571 6,499 6,918 6,021 Tulsa 19,467 21,134 21,266 22,238 31,281 26,856 31,460 29,434 Wichita 7,868 9,551 10,235 10.282 11,910 14,304 14,452 14,847 District No. 11—Dallas: Albuquerque 801 1,788 1,599 1,145 1,763 1,968 1,752 2,359 Austin 2,465 2,900 3,039 2,480 2,815 3,387 4,060 3,077 Beaumont 2,848 3,322 2,350 3,600 4,339 5,859 5,478 4,594 Dallas 29,621 32,838 29,936 33,779 39,172 42,146 42.887 41,337 El Paso 7,405 7,444 7,795 7,534 9,467 9,538 9,660 9,584 Fort Worth 20,410 19,120 21,800 19,400 23,198 24,422 25,004 22,533 Galveston 17,674 21,570 17,090 16,451 7,935 9,546 8,413 7,785 Houston 26,822 26,065 22,620 28,566 38,819 33,441 32,563 32,600 San Antonio 5,910 6,879 7,144 7,007 7,779 8,875 8,397 7,152 Shreveport 5,840 7,270 5,940 6,275 9,874 10,951 9,612 8,981 Texarkana, Tex 1,023 1,490 1,839 1,652 1,818 1,942 3,090 3,062 Tucson 1,269 1,302 1,471 1,385 1,596 1,563 1,773 1,684 Waco 2,872 3,666 3,015 3,195 4,125 4,470 3,900 4,351 District No. 12—San Francisco: Berkeley 2,252 2,973 2,750 2,838 2,194 2,727 2,591 2,854 Boise 1,862 2,610 3,195 2,644 2,975 3,365 3,260 2,240 Fresno 8,738 9,739 9,401 9,838 9,205 8,752 10,519 8,633 Long Beach 5,204 6,321 5,389 6,088 5,167 5,883 5,619 6,167 Los Angeles 92,979 100,682 94,970 103,232 89,409 101,971 96,025 99,255 Oakland 18, 293 18,412 18,069 18,643 19, 510 19,709 20,423 19,523 Ogden 3,011 3,620 3,076 2,995 4,043 1,948 4,324 3,344 Pasadena 5,001 6,781 5,942 5,727 5,605 5,897 5,975 6,988 Portland 30, 882 39,382 43,505 37.283 43,778 50,636 51,539 52,561 Reno 2,180 2,656 2,566 2,745 2,821 2,922 3,124 2,001 Sacramento 10, 524 11,493 11,826 12,681 12,183 13,420 14,105 14,723 Salt Lake City 14,895 15,624 18,059 16,513 18,914 20,192 16,464 19,429 San Diego , 7,309 8,329 8,911 8,726 8,011 8,484 8,076 9,109 San Francisco 171,072 175,258 167,823 198,664 198,401 196,897 208,344 233,741 San Jose 3,591 4,304 4,533 5,180 4,526 5,374 4,943 4,648 Seattle , 29,402 30. 720 33,520 33,407 47,318 49,205 61.888 50,480 Spokane 9,234 10^ 341 12,497 10,856 11,661 13,229 14,254 14,758 Stockton 3,742 4,753 6,434 4,629 4,973 6,526 5,700 4,588 Tacoma , 8,248 9,657 8,773 8,182 11,325 11,587 12,529 13,807 Yakima 2,101 2,293 1,991 2,216 3,306 4,076 3,412 3,479 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

MAT, 1921. FEDERAL KESERVE BULLETIN. 639 FEDERAL RESERVE CLEARING SYSTEM. OPERATIONS FROM MAR. 16 TO APR. 15, 1921. [All figures shown in thousands.] Items drawn on banks located in 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 . I s n e r F v e e d B er a a n l o k R w o e n r - dis O t R r u i e c t s s t e . id rv e e F B ed a e n r k al I U te T n m r i e t s e a d d su r S a re w ta r n t o e f o s. n h si a v T n e o d t o t l a i e f o l d d n , i u t s e e . p x m l c i s c lu a - - I t R o te e m o b s a t e n r h s a r e d v f n r o e c t r h h F w B e e e a s a i d r r * n e d k r e a s d l It t o e o s r a m p t m o s a e r b f e o d r n a r i t w n s t c b a r h i a r c d n i t e n k . d h in a g n T d o d l t u e a p d l l , i i t c i e n a m c ti l o s u n d s - . branch city. or branch city. N b u e m r. - Amount. N b u e m r. - Amount. N b u e m r. - Amount. N b u e m r. - Amount. N b u e m r. - Amount. N b u e m r. - Amount. N b u e m r. - Amount. Boston 751 537,526 3,300 380,428 144 28,838 4,195 946,792 161 55,327 4,356 1,002,119 New York 1,531 1,750,426 4,451 966, 784 1,105 190,580 7,087 2,907,790 1,019 507,711 24 6,320 8,130 3,421,821 Buffalo 204 88, 737 413 50,829 15 2,846 632 142,412 159 28, 398 45 22,311 836 193,121 Philadelphia 1,792 766,885 2,163 246,240 211 43,125 4,166 1,056,250 762 184, 793 4,928 1,241,013 Cleveland 413 217,342 1,243 163,448 80 7,330 1,736 388,120 45 29,009 38 12,991 1,819 430,120 Cincinnati 201 134,316 818 84, 064 60 7,829 11,086 i 227,582 12 23,434 12 3,711 1,110 254,727 Pittsburgh... 496 292,669 911 lOt, 282 53 9,426 1,460 406,377 71 39,532 29 6,364 1, 560 452,273 Richmond 118 118,918 260,502 57 8,382 2,086 387,802 157 58, 708 58 11,503 2,301 458,013 Baltimore 250 157,245 '675 77, 899 62 17,274 9S7 252,418 79 29, 892 73 8,223 1,139 290,533 Atlanta 119 56,097 336 43, 338 34 6,333 489 105, 768 47 16,499 42 6,405 578 128,672 Birmingham.. 142 26,990 143 8,399 12 1,296 297 36,685 18 10,122 31 31,384 346 78,191 Jacksonville.. 58 23,051 166 18,384 9 1,638 233 43, 073 2 416 36 13,022 271 56, 511 Nashville 53 29,625 198 23, 021 17 2,053 268 54,699 43 7,450 11 1,541 322 63,690 New Orleans- 66 47,182 113 13,721 36 7,420 215 68, 323 49 12,986 6 762 270 82,071 Chicago 1,081 642,427 3,722 352,689 451 65,557 5,254 1,060,673 339 34, 266 8 2,085 5,601 1,097,024 Detroit 302 148,337 408 44, 827 35 4,375 745 197, 539 8 7,699 5 2,301 758 207,539 St. Louis 304 228,547 1,383 89,645 13S 15, 039 1,825 333, 2?1 26 4,260 8 1,150 1,859 338,641 Little Rock... 48 23,889 287 17,098 8 1,153 343 42,140 9 1,706 24 3,125 376 46,971 Louisville 102 60,364 429 25, 534 31 3, 057 562 88,955 13 1,872 3 285 578 91,112 Memphis 71 25,674 9,482 10 2,103 246 37,259 2 682 4 442 252 38,383 Minneapolis 252 125,220 1,451 88,629 50 5,930 1, 753 219, 779 190 36,679 6 317 1,949 256, 775 Helena 41 9,430 188 11,452 3 547 232 21,429 7 2,041 2 2,025 241 25,495 Kansas City 251 261,535 2,495 111,915 106 9,983 2,852 383, 433 269 51,329 77 13,456 3,198 448,218 Denver 76 45,510 341 19, 985 21 3,037 438 68, 532 75 18,310 52 12,611 565 99,453 OklahomaCity 68 55,429 947 77, 084 7 1,022 11,022 133, 535 44 8,263 15 8,895 1,081 150,693 Omaha 109 57,477 609 41,825 44 3,158 1763 1102, 955 41 6,281 19 5,883 823 115,119 Dallas 148 61,014 1,570 195,392 30 3,980 1,748 260, 386 77 18, 525 64 7,098 1,889 286,009 El Paso 45 10,373 135 1.1, 030 18 2,654 198 24, 057 14 6,148 4 733 216 30,938 Houston 75 40,370 325 35, 008 55 3,052 45? 78,430 21 3,214 6 ],350 482 82,994 San Francisco 194 115,750 528 35,225 77 89,104 799 240,079 28 4,499 43 6,846 870 251,424 Los Angeles.. 354 114,785 903 72, 540 33 19,380 1,290 206,705 111 17, 569 56 13,456 1,457 237,730 Portland 66 33, 559 217 12,601 18 8,273 301 54,433 5 1,653 29 3,880 335 59,966 Salt LakeCity. 45 22, 730 366 28,138 12 3,318 423 54,188 12 11,586 13 7, 342 448 73,114 Seattle 102 35,670 216 17,562 24 11, 081 342 64,313 16 4,889 39 5,720 397 74,922 Spokane 39 17,100 175 10,158 9 994 223 28,252 10 2,094 16 6,404 249 36,750 Total: Mar. 16 to Apr. 15, 1921..., 9,967 6,382,199 33,701 3,746,158 3,085 600,167 1 46,751110,724,392 3,941 1,247,842 898 229,941 51,590 12,202,175 Feb.16 to Mar. 15, 19.21. 8,049 5,576,684 28,493 3,310,584 1,937 528,946 138,486 19,417,648 3,528 1,080, 836 789 200, 431 42,803 10,698,915 Mar. 16 to Apr. 15, 1920.... 7,982 8,512,045 28,225 5, 055,423 2,193 882,375 138,407 114,451,712 3,810 1,818,617 856 318,048 43,073 16,588,377 1 Includes items drawn in banks in other Federal Reserve districts forwarded direct to drawee bank. NOTE.—Number of business days in period for Philadelphia, Pittsburgh, Baltimore, Jacksonville, Nashville, New Orleans, Detroit, St. Louis, Little Rock, Louisville, Memphis, Minneapolis, and Salt Lake City was 26, for other Federal Reserve bank and branch cities, 27 days. NUMBER OF MEMBER AND NONMEMBER BANKS IN EACH FEDERAL RESERVEDISTRICT, APR. 15, 1921 AND 1920. N onmemb er b anks. Member bankst Federal Reserve district. On par list. Not on par list.1 1921 1920 1921 1920 1921 1920 Boston 436 432 256 253 New York 788 770 327 320 Philadelphia... 700 684 447 419 Cleveland 877 856 1,082 1,079 Richmond 615 595 1,057 763 542 749 Atlanta 486 426 411 445 1,167 1,130 Chicago 1,430 1,385 4,261 4,231 St. Louis 577 555 2,515 2,514 170 174 Minneapolis. . 1,012 943 2,797 2,913 53 Kansas City... 1,093 1,055 3,393 3,368 Dallas. . . . 856 773 1,247 1,248 San Francisco. 856 772 999 939 104 Total 9,726 9,246 18,792 18,492 1,932 2,157 1 Incorporated banks other than mutual savings banks. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

640 FEDERAL RESERVE BULLETIN. MAT, 1921. GOLD SETTLEMENT FUND. INTER FEDERAL RESERVE BANK TRANSACTIONS FROM MAR. 18 TO APR. 21, 1921. [In thousands of dollars.] Changes in ownership Transfers. Daily settlements. of gold through transfers#nd settlements. Balance in banks' Federal Reserve Bank. fund at end Total Total of period. Debit. Credit. debits. credits. Decrease. Increase. Boston 34,500 2,499 430,656 502,374 39,717 50,104 New York 23,001 125,000 1,756,242 1,695,534 41,291 62,739 Philadelphia.. 11,000 4,001 650,438 639,871 17,566 46,909 Cleveland , 70, 500 36,079 527,263 537,021 24,663 72,715 Richmond 7,000 24,000 567,328 541,600 8,728 22,614 Atlanta 6,000 3,000 201,834 213,571 8,737 15,221 Chicago 48,000 7,000 781,201 819,188 3,013 107,506 St. Louis 6,000 3,000 439,121 438,837 3,284 18,971 Minneapolis 5,500 1,000 130,130 119,813 14,817 7,738 Kansas City 10,000 2,000 352,241 349,939 10, 302 23,663 Dallas 36,578 40, 500 189, 096 186,138 964 5,101 San Francisco.. 10,000 234,448 216,112 8,336 35, 867 Total, five weeks ending— April 21,1921 258, 079 258,079 6,259,998 6,259,998 90,709 90,709 469,148 Mar. 17,1921 148,380 148,380 6,323,085 6,323,085 516,972 Apr.22,1920 661,270 661,270 8,584,231 8,584,231 366,504 Mar.18,1920 416,266 416,266 8,503,649 8,503,649 388, 384 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

MAT, 1921. FEDERAL RESERVE BULLETIN. 641 GOLD AND SILVER IMPORTS AND EXPORTS. GOLD IMPORTS INTO AND EXPORTS FROM THE UNITED STATES, DISTRIBUTED BY COUNTRIES. Imports. Exports. Dur- Country. M D 1 e 0 n 1 a u 9 d r d r 2 . i i a 1 n n 2 y . g g 0 s , M 1 D e 1 n 1 a u 9 d r d r 2 . i i a 1 n n 3 y . g g 1 s , D M m 1 u 9 a o o r 2 r f n i 1 c n t . h h g , A 1 D e 1 n 1 p u 9 d r d r 2 . i i a 1 n n 1 y . g 0 g s , A J F 1 p a 9 r r t n o 2 . o . 1 m 1 . 1 0, J A a F 1 p n r 9 r . o 2 . 1 0 m 1 . 0 to , M 1 D e 0 n 1 a u 9 d r d r 2 . i i a 1 n n 2 . y g 0 g s , M D 1 e 1 n 1 u a 9 d d r r 2 i . i a 1 n n 3 y . g g 1 s , D M m 1 u 9 o a o r 2 r n f i 1 c n t . h h g , i n d A n 1 d g a p 0 y i , r n 1 s . 0 g A J 1 F p a 9 r r n t 2 o . o . 1 m 1 . 1 0, J A a F 1 p n r 9 r . o 2 . 1 0 m 1 . t 0 o , 1921. $5,000 $5,000 $9,000 Belgium 38,391 Denmark 53,437 89,922 France $14,216,08227,019,290 41,241,531$3,416,747 62,937,143 $19,804 Germany 2,629 903 3,532 3,593 $10,000 Greece 158,499 168,035 956,211 Italy 11,265 40,000 201,339 Netherlands 188,046 558,774 938,752 4,165,177 5,722,306 1,161,428 Portugal 7,691 7,317 Russia in Europe 85,000 Spain 129,614 138,957 413 915 Sweden 664,600 164,356 4,678,956 4,737,870 9,416,826 Turkey in Europe — 17,488 17,488 238,488 United Kingdom- England 6,526,179 7,575,282 24,075,538 4,369,040 55,532,34848,348,362 13,235 Total Europe... 21,615,02435.611.718 71,321,22616,688,834 135,462,09949,576,911 224,574 Bermuda 600 600 600 British Honduras 20 22,55010,264,511 19,825,753 51,133 20,603,46818,481,988 $137,902 $22,825 $247,341$18,141 $653,489 1,864,394 Costa Rica 8,949 490 37,963 2,036 172,254 84,292 Guatemala 13,000 13,000 21,000 158,106 Honduras 22,942 597 35,123 10 377 131.194 54,788 19,000 Nicaragua 9,824 25,854 69,860 12 7421 203.998 289,129 Panama 231 37,164 362,838 20,845 523,687 30,160 Salvador 31,008 82,776 29,000 283,376 101,221 Mexico 122 930 129,424 445 388 110 1Q9 1,556,428 1,143,741 173,417 42,040 300,187 28,402 3,126,387 11,534,429 Cuba 278 278' *>' Am 9,553 3,058 50,000 200,000 British West Indies. 61,000 1,120 133,920 ;600 165,708 1,374 Virgin Islands of the United States 10,000 Dominican Republic 16,000 Dutch West Indies.. 269,726 226,067j 509,803 249,386 2,025,128 Total North America 518,152 10,730,113 21,517,302 509,912 25,833,50020,189,771 311,319 64,865 597,528 46,543 3,979,876 13,443,823 77,016j 162,016 84,866 314,403 23,270 63,645,000 Bolivia 71 finfi 1,166 5,532 Brazil 8,552 4,435 24,300 220,666 Chile 6,062 20 613 28 864 52,835 118,629 400,000 Colombia 229,891 84,735! 1.122.867 270,835 4,070,587 12,392 700,000 Ecuador 67,204 210,466 124,874 130,000 British Guiana 7,408 22,060 Dutch Guiana 21,104 Peru 46,880 12 553 Q9 924. 3,l04 269,706 189,302 Uruguay 58,393 468,471 769,832 618,317 1,857,481 10,850,000 Venezuela 1,517 69,710 86,379 2,827 302,329 1,170 184,000 Total South America 342,743 732,569 2,262,798 1,047,153 7,116,037 501,664 24,300 76,129,000 China 1,596,727 2,653,169 9,660,719 15,833,895 British India 346,614 571,994 2,058,308 194,129 8,274,262 2,716,713 Straits Settlements.. 6,116,454 Dutch East Indies... 81,856 81,856 46,758 204,063 2,265,474 60,000 5,542,149 Hongkong 2,845,545 26,700 55,900 111, 840 2,400 455,120 18,009,422 Japan 2,208,234 6,762,067 Turkey in Asia 137,611 145,664 5,220 150,884 Total Asia 428,4702,306,332 4,938,997 246,107 23,343,707 2,265,474 26,700 55,900 111, 840 2,400 515,120 54,980,700 Australia 1,216,625 1,216,625 3,900,287 New Zealand ""202*834 202,834"""26,"90C 529,180 346,398 Tahiti 300 300 Philippine Islands... 38,581 263 74,253 23,00C 282,996 220,370 Abyssinia 19,625 19,625 800 20,425 British West Africa... 26,038 British South Africa.. 51,823 51,823 51,823 Portuguese Africa 51,313 51,313 166,328 37,727 Total, all coun- • tries 24,230,53349,635,652101,656,79618,536,706U96,706,38273,138,315 338,019 120,765 709,668 48,94324,519,596144,804,135 Excess of imports or exports 23,892,51449,514,887100,947,12818,487,763 192,186,78C 71,665,820 1 Includes: Ore and base bullion, $15,325,000; United States mint or assay office bars, $428,000; other refined bullion, $154,470,000; United States coin, $5,836,000; foreign coin, $20,648,000. 'Includes: Domestic exports—Ore and base bullion, $23,000; United States mint or assay office bars, $295,000; other refined bullion, $35,000; coin, $3,888,000. Foreign exports—Coin, $279,000. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

642 FEDERAL RESERVE BULLETIN. MAT, 1921. SILVER IMPORTS INTO AND EXPORTS FROM THE UNITED STATES, DISTRIBUTED BY COUNTRIES. Imports. Exports. Dur- Country. M D 1 e 0 n a u d r d r . i i a n n 2 y g 0 g s , M D 1 e 1 n a u d r d r . i i a n n 3 y g g 1 s , D M m u a o o r r n f i c n t h h g , A 1 D e 0 n p u d r d r . i i a n n 1 y g 0 g s , A J F p a r t r n o o . . m 1 1 0, J A a F p n r r . o . 1 m 1 0 to , M D 1 e 0 n a u d r d r . i i a n n 2 y g 0 g s , M D 1 e 1 n u a d d r r i . i a n n 3 y g g 1 s , D M m u a o o r r n f i c n t h h g , e i A d n n g a d p y i r 1 n s . 0 g A J F p a r r t n . o o . 1 m 1 0, J A a F p n r r . o . 1 m 1 t 0 o , 1921. 1921. 1921. 1921. 1921. 1920. 1921. 1921. 1921. 10, 1921. 1920. 1921. France. $8,200 $11,841 $102 $74,364 $12,142 Germany $5,287 10,369 15,924 39,072 Greece 6,179 22,144 209,799 Netherlands.- . 805 369 Portugal 5,923 5,923 9,830 4,375 Spain 295 436 15,270 United Kingdom- England 936 25,326 34,967 $333,384$287,230 $765,413 $3,742,028 $308,241 Total, Europe.. 5,287 30,966 56,268 1,038 374,466 51,853 333,384 287,230 765,413 3,742,028 308,241 British Honduras 30,220 I Canada 132,623 248,694 451,034 37,229 1,341,725 1,298,100 83,774 60,097 224,771$79,087 797,940 4,282,198 Costa Rica 460 7 2,080 173 6,363 10,496 Guatemala 1 15 19,980 500 500 500 500 Honduras 42,979 24,373 67,36*8 78,946 383,480 739,155 800 348,800 Nicaragua 15,173 15,1911 17,878 83,423 278,655 Panama 992 9961 48 5.120 28,252 226,000! 431,000 Salvador 922 3,922 | 6.081 3,358,361 50,000 50,000' - Mexico 668,345 802,244 2,375,308 564,262 9 567 60721 828 063 66,268 27,915 112,677 37,378 784,786 1,511,607 Cuba 2,847 2,847 83 7,430 26,673 9,750 9,750 298,771 169,917 British West Indies 122 6,918 1,200 1,200 390 88 840 14,585 Virgin Islands of United States 10,000 Dominican Republic. 128,000 Dutch West Indies... 98 178 276 154 720 French West Indies.. 20 Haiti 4,000 Total,North America 860,670 1,079,265 2,919,022 698,773 11,402,08627,624,893 159,792 89,712 398,898116,855 2,247,637 6,900,607 Argentina 997 997 955 7,326 8,941 450 450 891 Bolivia 58,716 74,296 125,442 639,535 Brazil 39,850 40,271 270 803 Chile . 91,863 145,6931 745 392 977,471 Colombia 1,554 42,154 27,377 6,008 59,539 57,247 239,500 Ecuador 752 3,204 15,400 12,544 Dutch Guiana 42 624 Peru 184,747 238,717 539.115 65,264 1,402,158 3,138,058 Venezuela 35! 66 54 400 10,000 Total, South America 278,164 341,371 827,394 75,485 2,395,970 4,832,064 450 239,950 12,318 China 552 541 2.107 3,689 11,974 266,864 55,525 322,389 2,351,843! 38,547,382 British India 40 40 408,086 145,000 553,086 1,515 985 223 211 Dutch East Indies 38,419 21,572 59.991 68,836 212,288 1,628,686 French East Indies 3,525,672 Hongkong 192 1,650 121,647 179,167 4i5,639 3,4i3,970 11,911,750 Japan | 462,650 462,650 22,882 1,574,477 Total, Asia 38,971 22,113 62,098 68,876 216,209 1,642,3101,259,247 379,6921,753,764 22,882 8,856,275 54,208,015 Australia 1,860 1 New Zealand-.. 45 131 33 164 3,463 Philippine Islands 77 3 569 500 4,951 6,789 Abyssinia 31 31 31 British West Africa.. 3,080 British South Africa.. 3,280 3,280 3,760 Portuguese Africa 3,254 3,254 14,251 7,604 Total, all countries 1,186,454 1,477,043 3,872,047 844,705U4,413,74834,168,9761,752,423 756,6342,918,525139,737215,085,890 61,432,261 Excess of imports or exports 720,409 953,522 704,968 565,969 672,142 27,263,285 1 Includes: Ore and base bullion, $12,108,000; refined bullion, $1,636,000; United States coin, $252,000; foreign coin, $418,000. 2 Includes: Domestic exports—Ore and base bullion, $1,000; United States Mint or Assay Office bars, $152,000; other refined bullion, $8,522,000; coin, $754,000. Foreign exports—Ore and base bullion, $2,000; refined bullion, $4,166,000; coin, $1,489,000. 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 Comparison with rates prevailing during the period ending March 15, 1921, prevailing during the 30-day period ending April 15, 1921, in the various shows no marked changes in rates. There is a tendency to decrease in the cities in which the several Federal Reserve Banks and their branches are rates for bankers' acceptances, both indorsed and unindorsed, but for other located. A complete description of the several types of paper for which types of paper such increases and decreases as have occurred are approxiquotations are given will be found in the September, 1918. and October, mately equal in number. With the exception of bankers' acceptances, 1918, FEDERAL RESERVE BULLETINS. Quotations for new types of paper present rates as a whole continue higher for all types of paper than those will be added from time to time as deemed of interest. prevailing during the same period of 1920. DISCOUNT AND INTEREST RATES PREVAILING IN VARIOUS CENTERS DURING 30-DAY PERIOD ENDING APR. 15, 1921. Prime commercial paper. Ordinary Bankers' acceptances, Collateral loans—stock exchange loans to District. City. Customers. Open market. In l t o e a rb n a s. nk 30 to yu days. or otner cnrreU. C lo a a t n tl s e . S w r e e a c c r u e e e t r h c i e . p o d t u s b s , e y I i ! s b c c e o u e c L n s r u i t t d r i b o s f e e m i d c r a a t e b y n t r y d e s s 30 d a t y o s 9 . 0 m 4 o t n o t h 6 s. 30 d a to y s 9 . 0 m 4 o t n o t h 6 s. Indorsed. Unindorsed. Demand. 3 months. nm 3 n to t h 6 s. 1 of e d in n d e e ss b . t- H L. C. H I H. L. C. L. C. H. i. C. 1<?. H.X. a H.L. C. H.X. C. H. L. C. L. C. H. X. C. . L.C. N N N o o o 3 2 1 . . . . . . . . . . . . V B N P , h o e u i w i s l T t a o a d Y l n o e o l r p k h i * a 6 7 8 | 6 6J 7 6 6 8 8 r 6 6 > 2 6 7 8 8 7 s 7 72i 8 11 8 7 7 8 f f 7 7 7 7 J i f - 7 7 7 S * f f 6 8 7 s 0 6 6 51 6 G 6 7 * -7 G 78 J 2 7 6 7 J 6 6 5 5 1 1 6 5 5| I-6| 6 8 1 5 f 4 1 , f 6 6 1 -7 6 8 8 f 6 6 6 , 1 6 6 -7 6 8 7 6 6 6 J7 6 7 J 6 7 6 6 6 4 6 6 No 4 Cleveland. 7 fi 7 7 fi 6 6i 8 6 1 8 6 7 8 6 7 8 6 7 7 6 7 Pittsburgh 6 6 6 6 6 6 ?* 7-17 7-| 6 6 6 5| 5f 6° •45! 6 6 6 6 6 6 6 6 6 6 6 6 6 6 6 No.5 C R i i n ch ci m nn o a n t d i 6 7 6 6 6-61 6 7 6 6 6 6J 6J 7 6 61-7 6 6 6 6 6 6 5 2 64 6 6 6 6 6 6 6+ 6 7 6 6 6 6 6 6+ 6 6 6A 6 6 6 6 d Baltimore fi fi 6 6 6 6 6 6 6 6 6 6 6 6 6 6 6 6 6 6 6 6 6 t-1 No 6 A Bi t r l m an i t n a g h . am 8 s 6 fi 8 7-8 8 8 6 6 8 7 -8 8 8 8 8 8 8 8 8 6 fi 6 7 -7 5 8 | 7 ^ o 8 f 8 8 6 fi 7 7 8 8 8 6 r, ? « QO 8 6 6 7 7 -8 8 8 f 7 , 7 8 -8 8 8 6 f\ 7 Jacksonville . s 6 7 8 7 8 8 7 8 8 7 8 8 6 7 8 8 8 8 8 8 8 8 8 6 8 7 8 8 7 8 8 7 8 New Orleans 8 7 8 7 8 8 7 7* 8 7 ? 8 7 71 8 6 6I-8J 8 6171-8 8 7 71-8 8 7 71-8 8 7 71-8 8 61 71-8 Nashville s 6 8 6 7 8 6 s 8 6 7 8 6 7 8 6 7 6 6 No 7.... Chicago 2*7 7 61 7 9 7 7 7 7 7 61 7 6* 7 7 1 7 617 7 5 No.8.... D St e . t L ro o i u t is 7 8 7 7 7 7 8 6 7 1 7 7 7 7 6 6 + 1 7 7 5| 5+5| 6 5* 6 6 6 7 8 ? 7 7 7 1? 7 7 7 7 z* 6 7 J 7 7 7 f 6 ii Louisville 7 62 6 7 6 6 8 71 7| 8 71 7f 6 ff 6 6 7 6 6 6 6 7 6 6 6 6 6 Memphis 2 Little Rock s 7 8 8 7 8 717 7 8 7 8 8 8 8 7 8 8 s 8 8 7 8 No.9.... Minneapolis ?7* 8 7f 7$ 7f 8:18 8 8 7 71 5| 515| 515f 5f 8 71 8 8 ?*8 8 8 8 8 ?71 7-i 7 N N o o . .n 10 . . . .. . D O D O H K a k e m a e l n l n l l e a a v a s n h h s a e a o a s r m C a i ty City— 9 f 7 6 6 6 6 7 7 1 7 7 8 7 8 8 1 3 89 7 0 6 6 6 7 7 82 8 8 8 7 2 7 8 8 8 2 6 6 8 7 1 7 8 8 7 f | 8 8 7f 6 8 7 1 7 7 8 f | 1 7 9 8 8 8 0 6 6 6 6 7 7 7 8 8 8 6171 1 1 8 8 8 8 0 0 6 6 6 6 7 1 7 8 8 8 7 71 1 1 8 9 8 8 0 0 6 6 6 7 8 8 8 7 1 1 8 9 8 8 0 0 6 6 6 8 7 7 1 1 7 7 8 8 0 0 1 1 8 8 0 0 7 7 Z 8 * 1 9 7 8 8 7! 1 8 8 0 6 7 8 71 1 1 8 8 S 8 0 0 6 7 6 6 6 8 1 6 8 7 8 s 8 -7 E H l o u P s a t s o o n . 1 8 0 6 8 7 10 8 8 8 8 8 8 8 8 7 7 6 6 7 7 7 7 8 8 f 6 vL 7i 8 8 6 7 8 8 6 7 * 7 7 1 1 8 8 7 77 8 7 8 7 8 8 6 6 1 ' 7 8 No. 12... S P a o n rt l F a r n a d ncisco 8 7 6 6 6 61 8 7^ 6"* 7 8 7! 7| 7| 7 8 -1 7 7 1 1 1 7 ' f i 7 7 6 6 61 61 5 6 | 61 7 6 61 7 8 6 6 •» 7 8 ? 7 7 7 8 6 6 7 7 61 6^ 7 7 8 6 6 6| Seattle 8 8 8 7^ 7 8 8 n 8 8 7 7 7 8 6+ 8 8 8 8 7 8 8 8 Spokane 8 7 8 8 7 7 7 61 7 8 7 8 8 6i 8 8 7 8 8 7 8 Salt Lake City 8 71 8 8 8 71 7f 8 8~8 8 718 8 8 8 8 8 Los Angeles 8 6 7 8 62 7 84 6 7f 8 51 7| 8 5 7 7 51 6 7 515| 8 6 7 8 6 7 8 6 7 8 6 i Rates for demand paper secured by prime bankers' acceptances, high 7, low 5A. 2 No report. Co Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

644 FEDERAL, RESERVE BULLETIN. MAT, 1921. MONEY HELD OUTSIDE THE UNITED STATES TREASURY AND THE FEDERAL RESERVE SYSTEM, APR. 1, 1921. U H n e it l e d d in S t ta h t e es Held by or for oucsiae Am t o u O n U t t p Sl e de r General stock. G a T o s r s v e e e a t r s s n u o m r f y e t n h a t s e .1 Fed B e a a r n g a k l e s n R t a s e n . s d erve System. System# Gold coin (including bullion in Treasury). $3,001,487,915 $425,716,950 2 $1,607,219,944 $395,577,262 : Gold certificates 362,379,242 210,594,517 I Standard silver dollars. 2*72,' ii 2,326' 28, 593, 704 3 30,882,045 47,199,256 ! Silver certificates 93,147,799 70,699,174 I Subsidiary silver 271, 111, 530 8,443,724 262,667,806 Treasury notes of 1890 1,590,348 I United States notes 346,681,016 3,875,677 < 91,142,502 251,662,837 i Federal Reserve notes 3,265,571,195 7,591,552 324,443,805 2,933,535,838 ; Federal Reserve bank notes. 192,991,400 5,855,737 ' 20,562,970 166,572,683 | National bank notes 732,818,484 16,868,625 4,965,536 710,984,323 \ Total: Apr. 1, 1921 8,082,773,866 496,945,969 2,534,743,843 5,051,084,054 $46. 91 Mar. 1, 1921........ 8,084,936,396 493,976,120 2,385,101,578 5,205,858,698 48.41 Feb. 1,1921 8,171,237,897 499,358,809 2,438,773,422 5,233,105,666 48.73 Jan. 1, 1921 8,372,970,904 494,296,257 2,377,972,494 5,500,702,153 51. 29 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 July 1,1917 5,480,009,884 253,671,614 1,280,880,714 3,945,457,556 37.88 1 Includes reserve funds held against issues of United States notes and Treasury notes of 1890 and redemption funds held against issues of national-bank notes, Federal Reserve notes, and Federal Reserve Bank notes, but excludes gold and silver coin and bullion held in trust for the redemption of outstanding gold and silver certificates and Treasury notes of 1890. 2 Exclusive of amounts held with United States Treasurer in gold redemption fund against Federal Resen; e 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. 4 Includes Treasury notes of 1890. DISCOUNT RATES OF THE FEDERAL RESERVE BANKS. DISCOUNT RATES APPROVED BY THE FEDERAL RESERVE BOARD UP TO MAY 1, 1921. Paper maturing within 90 days. Bankers' a A nd g r l i i c v u e l - t s u t r o a c l k Federal Reserve Bank. Secured by- ac m c a e t p u ta ri n n c g es p a a f p te e r r 9 m 0 a d tu a r y i s n , g Treasury Liberty bonds acc T ep r t a a d n e ces. p C a o p m er m 1 e 1 r . c e i . a s l . 3 w m i o th n i t n hs. bu m t o w n i t th h i s n . 6 certificates of and Victory indebtedness. notes. Boston New York Philadelphia.. Cleveland Richmond Atlanta Chicago St. Louis 5*1 Minneapolis. . 6 ! Kansas City.. 6 Dallas San Francisco. 1 Discount rate corresponds to interest rate borne by certificates pledged as collateral. NOTE.—Rates shown for St. Louis and Kansas City 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, except that the maximum rate charged by the Kansas City bank does not exceed 12 per cent. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

INDEX. Acceptances: Page. Index numbers—Continued. Page. Banks granted authority to accept up to 100 per cent of capital Retail prices in principal countries 605 and surplus 551 Retail trade 598-600 Condition of the acceptance market 534 Wholesale prices abroad 601-604 Held by Federal Reserve Banks 619 Wholesale prices in the United States 505,581 Purchased by Federal Reserve Banks 616 India, index of wholesale prices in 604 Regulation B, amendment to 545 Indiana, amendment to banking laws of 550 Accommodation granted to correspondents by city banks, methods Interest rates prevailing in various centers 643 followed 536 Italy: Amendment to section 5146, Revised Statutes, relative to qualifi- Bank of Italy, condition of 611 cations of national-bank directors 549 Business and financial conditions in 557,609 Amendments to Indiana and Oklahoma banking laws 550 Wholesale price index 603 Australia, index of wholesale prices in 604 Japan, financial statistics 610 Bank debits 510,634 Knit goods production 596 Banking situation, discussion of 512 Law department: Borrower's statement as to quick assets over current liabilities... 546 Amendment to section 5146, Revised Statutes, relative to British finance during the war '563 qualifications of directors of national banks 549 Business and financial conditions: Amendments to Oklahoma and Indiana banking laws 550 England 552,608 Authority of national banks to guarantee letters of credit 547 France 555,608 Letters of credit, authority of national banks to guarantee, and to Italy 557,609 appoint agent'to issue 547 Japan 610 Loans by city banks to correspondents, methods followed in grant- Germany 559,609 ing 536 Sweden 561,610 Methods followed by city banks in granting accommodation to United States 514-526 correspondents 536 Canada, index of wholesale prices in 604 Member banks: Certificates of indebtedness issued 511 Condition of 628-634 Charters issued to national banks 551 Number discounting during March 614 Charts: Number in each district 614 Assets and liabilities of Federal Reserve Banks 622 State banks admitted to system 551 Assets and liabilities of member banks 628 Money, stock of, in the United States 644 Debits to individual account 635 National banks: Deposits and securities at Bank of England 570 Acting as transfer agents, ruling on 545 Physical volume of trade 586 Authority of, to guarantee letters of credit and to appoint Quarterly receipts by British treasury, 1914-1920 566 agents to issue letters of credit 547 Rate at Bank of England on three months' treasury bills 568 Charters issued to 551 Wholesale prices in the United States 580 Demand loans on real estate by, ruling 011 546 City banks granting accommodations to correspondents, meth- Directors, qualifications of, amendment to section 5146, Reods followed 536 vised Statutes, relative to 549 Clearing and collection system, operations of 639 Fiduciary powers granted to 551 Clearing-house bank debits 510,634 Oklahoma, amendment to banking laws of 550 Commercial failures 550 Par list, number of banks on 639 Condition statements: Physical volume of trade 585-596 Federal Reserve Banks 620-625 Member banks in leading cities 628-634 Prices: Principal foreign banks of issue 611,612 Discussion of 504 South American banks 578 Retail, in principal countries 605 Conference of governors of Federal Reserve Banks 513 Wholesale— Cotton fabrics, production and shipments 595 Abroad 601-604 Credit situation, discussion of 503,510 In the United States 579-583 Debits to individual account 510 Of leading commodities exported from South American Directors of national banks, qualifications of; amendment to sec- countries 573 tion 5146, Revised Statutes 549 Railroad rate problem 507 Discount and open-market operations of Federal Reserve Banks. 613-619 Rates: Acceptances held 619 Discount- Acceptances purchased 616 In effect May 1 644 Bills discounted 615 Prevailing in various centers 643 Bills held 618 Foreign exchange 509 Earning assets held 618 Readjustment situation 503 Number of banks discounting during March 614 Real estate, demand loans on, by national banks 546 Rediscounts and sales of paper between Federal Reserve Regulation B, amendmentto, authorizing open-market purchases Banks 617 of six months' acceptances growing out of foreign transactions.. 545 Volume of, during March 615 Reserve ratio of the Federal Reserve Banks 513 Discount rates: Resources and liabilities: In effect May 1 644 Federal Reserve Banks 620-625 Prevailing in various centers 643 Member banks in leading cities 628-634 Employment conditions in the United States 506, 526 Retail prices in principal countries 605 England: Retail trade index 598-600 British finance during the war 563 Review of the month 503 Business and financial conditions 552,608 Revised Statutes, amendment to, relative to qualifications of Wholesale price index 602 national bank directors 549 Failures, commercial, reported [ 550 Rulings of the Federal Reserve Board: Federal Reserve Banks: Amendment to Regulation B, authorizing open-market pur- Condition of 620-625 chases of six months acceptances growing out of foreign Discount and open-market operations of 613-619 transactions 545 Borrower's statement as to quick assets over current liabilities. 546 F F E e D de E r R a A l L R e R s E e S rv E e R n V o E t e B s U : LLETIN, index-digest of 513 Demand loans on real estate by national banks 546 Accounts of Federal Reserve agents 626 National banks as transfer agents 545 Interdistrict movement of 627 Silver, imports and exports of 511,642 Fiduciary powers: South America, recent economic developments in 572-578 Granted to national banks 551 State banking laws, amendments to: National banks acting as transfer agents 545 Indiana 550 Foreign exchange rates: Oklahoma 550 Discussion of 509 State banks and trust companies admitted to system 551 South American countries 57. Sweden: Foreign trade: Bank of, condition of 612 Discussion of 509 Business and financial conditions in 561,610 Index of 583 Wholesale price index 603 United Kingdom, France, 1 taly, Sweden, and Japan 606 Trade: France: Foreign- Business and financial conditions in 555,1 Discussion of 509 Wholesale price index 603 Index of 583 Germany: United Kingdom, France, Italy, Sweden, and Japan 606 Business and financial conditions in 559,609 Physical volume of 585-596 Wholesale price index 603 Retail, index of 598-600 Gold imports and exports 511,641 Wholesale, condition of 600 Gold settlement fund 640 Transfer agents, national banks acting as, ruling on 545 Governors of Federal Reserve Banks, conference of 513 Treasury certificates of indebtedness issued 511 Imports and exports: Treasury, condition of 511 Gold 511,641 Wage conditions in the United States 506,526 Silver 511,042 Wholesale prices: South American countries 574 Abroad Index-digest of FEDERAL RESERVE BULLETIN 513 In the United States 579 Index numbers: Of leading commodities exported from South American coun- Foreign, trade 584 tries 573 Physical volume of trade 585-596 Wholesale trade, condition of 600 I Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

FEDERAL RESERVE DISTRICTS ® FEDERAL RESERVE BANK CITIES O FEDERAL RESERVE BRANCH CITIES Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis