Federal Reserve Bulletin, 1921-10

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

FEDERAL RESERVE BOARD. EX OFFICIO MEMBERS. W. P. G. HARDING, Governor. EDMUND PLATT, Vice Governor. A. W. MELLON, Secretary of the Treasury, Chairman. ADOLPH C. MILLER. CHARLES S. HAMLIN. D. R. CRISSINGER, Comptroller of the Currency. JOHN R. MITCHELL. 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. 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-. 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. Gilhart.1 E. R. KenzeL Leslie R. Rounds.1 J. W. Jones.1 Ray M. Gidney.i Philadelphia R. L. Austin George W. Norris Wm. H. Hutt,jr W. A. Dyer. Cleveland D.C.Wills E. R. Fancher M. J. Fleiuing H. G. Davis. Frank J. Zarlinden Richmond Caldwell Hardy George J. Seay C. A. Peple Geo. H. Keesee. R. H. Broaddus A. S. Johnstone2 John S. Walden2 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 JohnH. Blair K. C. Childs.i J. H. Diilard.i D. A. Jones.1 0. J. Netterstrom.i A. H. Vogt. Clark Washburne.1 St.Louis Wm. McC. Martin D.C Biggs 0. M. Attebery J. W. White. Minneapolis John H. Rich R. A. Young W. B. Geery Frank C. Dunlop.1 S.S.Cook B. V. Moore. Kansas City Asa E. Ramsay J. Z. Miller, jr C. A. Worthington J. W. Helm. Dallas Wm. F. Ramsey R. L. Van Zandt R. R. Gilbert. San Francisco John Perrin J. U. Calkins Win." A." Day*.'.'.'.'.'.'.'.'.'.'.'.'.'.'. W. N. Ambrose. Ira Clerks.." L. C. Pontious3 1 Controller. 2 Assistant to governor. • Assistant deputy governor. MANAGERS OF BRANCHES OF FEDERAL RESERVE BANKS. Federal Reserve Bank of— Manager. Federal Reserve Bank of— Manager. New York: Minneapolis: Buffalo branch W. W. Schneckenburger. Helena branch 0. A. Carlson. Cleveland: Kansas City: Cincinnati branch L. W. Manning. Omaha branch L. H. Earnart. Pittsburgh branch Geo. De Camp. Denver branch C. A. Burkhardt. Richmond: Oklahoma City branch C. E. Daniel. Baltimore branch Morton M. Prentis. Dallas: Atlanta: El Paso branch W. C. Weiss. New Orleans branch Marcus Walker. Houston branch Floyd Ikard. Jacksonville branch Geo. R. De Saussure. San Francisco: Birmingham branch A. E. Walker. Los Angeles branch C. J. Shepherd. Nashville branch J. B. McNamara. Portland branch Frederi ck G reen \\ ood. 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 communication with member banks of the Federal Reserve System and is the only official organ or periodical publication of the Board. It is printed in two editions, of which the first contains the regular official announcements, the national review of business conditions, and other general matter, and is distributed without charge to the member banks of the Federal Reserve System. Additional copies may be had at a subscription price of $1.50 per annum. The second edition contains detailed analyses of business conditions, special articles, review of foreign banking, and complete statistics showing the condition of Federal Reserve Banks. For this second edition the Board has fixed a subscription price of $4 per annum to cover the cost of paper and printing. Single copies will be sold at 40 cents. Foreign postage should be added when it will be required. Remittances should be made to the Federal Reserve Board. No complete sets of the BULLETIN for 1915, 1916, 1917, or 1918 are available. in Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

TABLE OF CONTENTS. General summary: Page. Review of the month 1147 Business, industry, and finance, September, 1921 1155 Dealing in acceptances 1166 Application for letters of credit : 1170 Tobacco finance. *. 1174 Some aspects of Italy's war finance 1177 Business and financial conditions abroad—England, France, Italy, Germany, Netherlands 1186 Official: Eulings of the Federal Reserve Board 1199 State banks admitted to system 1198 Fiduciary powers granted to national banks 1198 Charters issued to national banks 1200 Price movement and volume of trade: Domestic— Wholesale prices in the United States 1201 Foreign trade 1205 Ocean freight rates 1206 Physical volume of trade 1207 Building statistics 1219 Crop estimates 1206 Retail trade 1221 Wholesale trade 1224 Commercial failures 1200 Foreign— Comparative wholesale prices in principal countries 1225 Comparative retail prices in principal countries 1229 Foreign trade—United Kingdom, France, Italy, Sweden, Japan, and Germany 1230 Banking and financial statistics: Domestic— Discount and open-market operations of Federal Reserve Banks 1232 Condition of Federal Reserve Banks 1236,1240 Federal Reserve note account 1243 Condition of member banks in leading cities 1236,1244 Bank debits 1247 Operations of the Federal Reserve clearing system 1251 Gold settlement fund 1250 Gold and silver imports and exports 1252 Money outside the Treasury and Federal Reserve System 1254 Discount and interest rates in various centers 1255 Discount rates approved by the Federal Reserve Board 1254 Foreign exchange rates 1256 Foreign- England, France, Italy, Germany, Sweden, and Japan 1257 Charts: Italian war financing 1178,1179 Index number of wholesale prices in the United States—constructed by Federal Reserve Board for purposes of international comparisons 1201 Physical volume of trade 1208 Movement of principal assets and liabilities of Federal Reserve Banks 1236 Movement of principal assets and liabilities of member banks 1236 Debits to individual accounts 1247 Foreign exchange index 1257 IV Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

FEDERAL RESERVE BULLETIN VOL. 7 OCTOBER, 1921. No. 10 REVIEW OF THE MONTH. During the past month a variety of indica- T h o p t l a r l i b h i v lls ac R co e u se n r t v , e all N de et p o d si e t m s, a r n e- d F. K. Banks. member porting memtions have seemed to point banks. ber banks. Business and more and more definitely May 14,1920 $2,964,582,000 $1,874,145,000 $11,563,867,000 credit. toward a change in the direc- Sept. 24,1920 3,012,088,000 1,800,677,000 11,160,537,000 May 18,1921 1,924,220,000 1,665,517,000 10,155,685.001) tion of business, accompanied Sept.21,1921 1,420,751,000 1,588,209,000 9,833,196,000 by improvement in important branches of in- Sept. 21, 1921. Sept. 21, 1921. Sept. 21, 1921. Low point 1,420,751,000 1,588,209,000 9,833,196,000 dustry and probably for the country as a whole. The fact that some exceptions are It was not until close to the end of the year noted does not alter the general tendency. Striking among these indications of a 1920, more than six months after price receschange in the volume and direction of sion had been in full progress, that business business is the alteration that has oc- change was reflected in the volume of curred in the movement of bank accounts credit. and the progressive liquidation of frozen The movement of credit at Federal Reserve credits the country over. It would seem clear and member banks should be studied in comthat there has been a slowing down in the gen- parison with the movement of production and eral liquidation of bank accommodation. It volume of business during the period in queswill be noted that bill holdings of the Federal tion, not because there is necessarily an imme- Reserve Banks, member bank reserve accounts, diate or close correspondence between any indias well as net demand deposits of the reporting vidual item or group of items an,d the credit member banks, were at the lowest point re- situation, but because the volume of trade and ported for the period under discussion on industry and the volume of credit are neces- September 21, the net demand deposits of sarily interrelated factors. Items showing sethe member banks showing, however, a rela- lected movements of trade during the period tively much smaller reduction from the corre- in, question may be represented in tabular form sponding August totals than the other two as follows, for the periods corresponding roughly items. The following brief tabulation fur- to those already selected in the foregoing renishes facts with respect to the credit situation: view of the history of credit: [005 omitted.] Month. r C e s c i o g e t i h t p o t t n s. R gr e i c a n c e i e t n n e i t r p a e i t t o r s s 1 r . o 7 fR l m i w e v c a e a e e r s t s i k t p t 1 e e o t r 5 t s c n s k . of s o c h L f i i u a p 3 t m m i a o b s e n s e n s o r t . - s pr P o i d g u - c ir t o io n n. p S r t o e d e u l c in ti g o o n t . Z du in c c ti p o r n o . - A c d n o u t a c h l t r i p a o r c n o i . t - eBi c d t o u u a m c l t p i i n o r o o n - . us Bales. Bushels. Head. Feet. Long tons. Long tons. Short tons. Short tons. Short tons. May, 1920 361 64,380 4,878 862,931 2,986 2,883 45 7,946 38,993 September, 1920. 772 118,409 5,266 715,968 3,129 3,000 37 4,638 49,172 May, 1921 777 72,640 4,574 825,350 1,221 1,266 18 7,497 33. 330 August, 1921 617 177, 430 4,917 S19,924 954 1,138 15 7,196 34, 538 Month. p p r e o C t d r r u o u c l d e ti u e o m n. co C n t o i s o t u t n o m . n p- co W n ti s o u o n o m . l p- pro le d S a u o t c h l t e e io r n. S pr t f c o a o i m d g r u a s p r c m s e t i t a s o t o l e n l ld . p N ro e d w u s c p t r io in n t . m V d p e i a o s r l r e c u t h e e e a d x o n . - f - ( V e 1 m x 2 9 o p 9 o 1 lu o 3 d c m = i r o t t 1 m i s e e 0 - s 0 o o ) f f i D n a d c d e e c i b v p o i o i u t d s s n u i t t t . a o 1 l Barrels. Bales. Pounds. Sides. Number. Net tons. Dollars. Per cent. Dollars. May, 1920 36,503 541 58,589 1,706 3,953, 345 129 745,523 112.5 9,111,513 September, 1920. 37,532 458 36,297 1,376 3, 557,483 121 604,686 88.6 8,63S, 648 May, 1921 42,043 440 56,929 1,561 4,136,085 79 329, 710 112. 5 6,992,219 August, 1921 40,964 467 58,261 1,607 5,130,577 102 371,935 140.9 6,286,178 i Last week in month. 1147 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1148 FEDERAL RESERVE BULLETIN. OCTOBER, 1921. It will be observed that the agricultural data minor amount, until the month of July, 1921, thus presented show a different trend from when a slight upturn in average prices began. those which represent manufacture, and that The significance of changes in bank credit is certain of the series show distinct seasonal always a matter of doubt when variations. The situation has been set forth in Public finance capital obligations or claims an index number of the Harvard Committee and credit. upon fixed forms of wealth or on Economic Research, which has issued a future income are used as its table relating solely to manufactures showing basis. This is what usually happens during war; the movement during 1919-1921 in various and a return to normal conditions invariably groups of industries. Of this the committee results when such elements of bank credit says that the index " registers the cycle through disappear. Changes in the condition of Fedwhich manufacturing activity has passed since eral Reserve Banks during the past year have the beginning of 1919." It will be observed been in no respect more striking than in the that the low point in most lines was reached diminution of advances based upon public in February, last, and that there have been obligations. In the following table is shown various fluctuations since then. the extent of the reduction of this element of the portfolios at both Federal Reserve and at MONTHLY INDEXES OP THE VOLUME OF MANUFACTURE FOR EIGHT GROUPS OF MANUFACTURING INDUSTRIES AND about 800 reporting member banks: FOR THE GROUPS COMBINED. [1919 monthly average=100.] F. R. Bank Reporting Government Month. b l y o o a b G n l s o ig v a s e e t r i c n o u m n r s e e . d nt b m y lo o e a b G m n l o i s b g v e s a e e r t r i c n o b u im n m a r s e n ee . d i k nt rep o o b o b w e r l r t i n i g b n e a g a d ti n o b m k n y s e s . m- May 14, 1920. $1,508,104,000 $1,090,554,000 $1,675,457,000 Sept. 24, 1920 1,220,423,000 950,324,000 1,447,757,000 1919. May 18,1921. 774,869,000 714,852,000 1,295,459,000 January 101.6 130.1 75.5 93.0 89.7 96.5 114.9 87.3 Sept. 21,1921 495,156,000 592,842,000 1,402,606,000 February 86.7 113.7 75.8 82.8 83.8 72.7 87.3 83.8 March 92.6 113.5 88.8 87.0 92.8 79.0 92.1 97.7 April 93.7 94.6 97.8 88.4 92.4 92.9 92.8 82.0 May 95.7 81.2 112.1 95.1 100.7 99.2 98.5 88.0 These figures show a steady restoration of June 95.9 90.9 103. 5 98.3 96.1 100.2 83.8 92.9 July ,101.9 103.1 103.7 103.3 103.7 109.4 85.9 99.3 the commercial basis of bank credit in the August 107.2 113.5 123.4 108.8 107.4 103.4 .. 88.4 101.1 September 103.8 97.6 113.8 106.2 108.3 105.3 97.7 108.6 United States and an elimination of the ex- October... 104.4 73.2 123.4 116.4 112.0 119.3 111.2 125.4 November 102. 2 94.0 102.0 108.6 107.0 104.9 109.0 117.0 traneous or nonliquid basis for lending which December. 102.1 103.4 80.1 109.8 107.6 110.1 108.6 113.0 found a place in our institutions, as in those 1920. January.. 115.9 124.2 101.1 120.9 102.3 126.6 112.2 115.7 of all other countries, during the war in con- February. 104.6 120.5 101.3 105.8 97.0 110.5 81.6 85.3 98.9 March 118.0 138.3 117.4 119.5 111.6 121. 0 94.0 90.8 123.1 sequence of the necessities of the Government April . 108.8 111.0 122.3 121.7 109.3 119.3 84.7 75.9 108.0 May 111.8 121. 2 127. 3 119.2 115.0 110.5 90.9 85.1 111.1 for a quick sale of their obligations. Al- June 109.6 124. 9 115. 4 122.5 115.9 101.1 95.2 80.8 114.4 July 102.3 118.0.103.1 123.0 22. 9 92. 8 80.7 80.8 98.1 though it is true that the Government of the August 104.9 125.3 117.8 122. 5 132. 2 88. 2 70. 5 S3. 3 104.8 September.. 101.4 125.0 108.7 119. 3 134.6 83.4 73.3 78.0 104.9 United States continues to sell large issues of October. ... 101.2 126.7 10S.1 119. 7 135. 2 78.7 77.8 81.1 106.3 November.. 8S.9 111.3 86.2 108. 0 131.2 62.1 70.1 91.0 93.1 Treasury notes and certificates, these issues December.. 77.9 99.5 62.8 94.6 134.6 54.5 72.1 88.4 73.5 continue to be made chiefly or solely for the 1921. January 78.3 92.7 59.5 84.3 131.6 68.1 63.5 84.1 88.7 purpose of meeting current maturities, so that M Fe a b rc ru h ary 7 8 5 0. . 6 0 6 7 5 3 . . 2 7 6 7 5 8. . 2 3 7 8 8 3 . . 5 2 1 1 1 1 5 7 . . 0 9 7 8 6 9 . . 3 3 6 7 2 2 . . 8 0 7 8 4 5 . . 4 6 1 9 0 5 6 . . 0 6 the total amount which is held by the com- M Ap a r y il 7 7 9 5 . . 3 8 5 5 2 0 . . 4 5 1 8 0 4 0 . . 6 7 7 73 9 . . 6 3 1 1 2 2 4 2 . . 9 8 8 96 9 . . 2 3 7 8 5 3 . . 8 2 8 7 2 9 . . 4 9 1 9 0 6 0 . . 6 6 munity shows little change. Indeed, a reduc- J J u u l n y e ;.; 75.9 3 4 4 2 . . 0 3 93.3 7 7 5 1 . . 6 0 122.7 1 S 0 9 0 . . 5 8 81.1 8 8 2 2 . . 7 3 108.0 tion of public debt during the fiscal year ended June 30, 1921, was reported, this reduction Comparisons should also be drawn between amounting to approximately $514,000,000. the course of prices during the past year and Many of the outstanding issues of bonds were the course of credit, with a view to compar- not altered in amount. The striking modificaing fluctuations in credit and the price move- tion which has taken place in our debt situaments of important commodities. The peak tion during the year is found not in volume in prices was reached in May, 1920, and from so much as in distribution. The transferthat time forward decline continued without ence of bond holdings from commercial credit interruption, save for temporary reactions of to investment channels has greatly relieved Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

OCTOBER, 1921. FEDERAL RESERVE BULLETIN. 1149 the former and has restored the representa- cated. Changes in the volume of credit are, tive character of bank-loan figures as an therefore, a less accurate indicator of changes index of commercial activity. in the volume of business than is ordinarily The fact that credit and the volume of busi- the case. ness are closely related and that While the changes which have'taken place credit volume conforms to busi- in bank investments have been ness requirements has always Banking elas- general and while statements been recognized. It was upon this idea of ticity. concerning them hold good not credit elasticity, corresponding to changes in only of Federal Reserve but business demand, that the Federal Reserve also of member banks, such changes are ob- System itself was developed. Its underlying viously more striking in the Federal Reserve thought was that of providing for the conver- System than they are elsewhere for reasons sion of the most liquid and unquestionably just stated. The Federal Reserve System, on sound elements of credit in the community account of the stringent requirements of law into a reserve basis for the credit operations which limit the character of paper that can be of the country.. The resort to rediscount- purchased by it, should be far more responsive ing is necessarily directly influenced by the to changes in the volume of commercial volume of business which gives rise to credit than the rank and file of banking insuch elements of credit, and movements in stitutions, many of whose operations have an business are therefore reflected in or par- investment character. This responsiveness has alleled by corresponding movements in the always been present in the operations of the volume of paper presented for rediscount system in some degrefe, although during the at reserve institutions. The movement of latter part of the war with Germany it was Federal Reserve accounts during the past year masked by the presence of great quantities has probably not responded as directly to of Government-secured obligations in its portchanges in the volume of live business as would folio. The experience of the past year, howordinarily be the case, due to the fact that not ever, illustrates clearly the essentially elastic long after the conclusion of the armistice a quality of the system, as may be seen by the substantial element of paper representing comparison of the upper and lower levels of bill long-term operations found lodgment in holdings. At their highest or peak point the Federal Reserve Bank portfolios. It may be bill holdings of the Federal Reserve System concluded, therefore, that the great shrink- were about $3,000,000,000, while at the low age, which has occurred in the total of Fed- point, on September 21, 1921, they may be eral Reserve Bank bill holdings during the stated in round numbers as $1,420,000,000. past year, and which would in ordinary circum- The difference between the upper and lower stances be taken as an evidence of the extent levels of bill holdings was thus somewhat over of its credit elasticity, is only in part the reflec- $1,500,000,000, although, as already stated, this tion of changes in the volume of business, being was not a change in pure commercial credit. at least partly due to the conversion of bank- Exactly how great a volume of bank credit of held securities into investment holdings through both member and nonmember banks would be the process of liquidation to which reference sustained by the $1,500,000,000 margin between has already been made. Due to the combined the high and low points in Federal Reserve working of these factors the reduction in bill portfolios is a matter for estimate. The shrinkholdings of Federal Reserve Banks and in the age in deposits shown by the report of Sepvolume of credit extended by them to members tember 2, 1921, as having taken place between by way of rediscount has probably been greater the end of June, 1920 and 1921, pointed to a than would have occurred had it been influ- fall of over $2,000,000,000 in the deposit credits enced only by shrinkage in the general volume of member banks. Making due allowance for of the country's business. In other words, the the changes in nonmember bank deposits both shrinkage in credit has been greater than the directly and indirectly connected with changes shrinkage in business for reasons already indi- in Federal Reserve Bank accounts, it does not Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1150 FEDERAL RESERVE BULLETIN. OCTOBER, 1921. seem that a shrinkage of between $2,500,000,- May 4, 1920, and Apr. 28, 1921), or slightly more than 1.2 000 and $3,500,000,000 is excessive as a meas- per cent; the loans and discounts in semiagricultural counties declined $19,000,000. or 1.3 per cent; and the ure of fluctuation of credit in the country as a loans and discounts of banks in nonagricultural counties whole, such elasticity being reflected in or takdeclined $827 000,000, or 5.6 per cent. The borrowings ing effect through changes in the outstanding from the Federal Reserve Banks by banks in agricultural credits of Federal Reserve Banks. How accu- counties increased $128,000,000, or 56.5 per cent; borrowrately this reduction in bank credit reflects the ings by banks in semiagricultural counties remained actual change in the volume of business is a practically stationary; and borrowings by banks in nonquestion of very great interest, but obviously agricultural counties declined $629,000,000, or 28.5 per cent. one hard to determine statistically. There has been no material shrinkage in most depart- It further appears from the same analysis ments of agriculture except in cotton and some that between the dates mentioned member minor crops. Most of the reduction which has banks showed a total reduction of loan,s amounttaken place thus far has been in basic manu- ing to $882,000,000, of which $827,000,000, or factures. This fact alters the percentual rela- 94 per cent, is shown for banks in nonagricultionships of several of the figures already cited. tural counties, while the reduction in agricul- This variation in the situation as between tural and semiagricultural counties amounted agriculture and manufacturing to only about $55,000,000. A subsequent Manufacturing credit operations in the vari- analysis shows that during the year under and agriculture. us sections of the country is consideration the share of agriculture in the O summarized in the statement total of outstanding loans did not diminish published in the last issue of the BULLETIN, but, on the contrary, increased. The relative as follows: changes in the volume of accommodation to manufacturing and agricultural enterprises Loans and discounts of banks in agricultural counties throughout the country declined $37,000,000 (between may be inferred from the following table: DISTRIBUTION OF MEMBER BANK LOANS, BY CHARACTER OF COUNTIES, ON MAR. 4, 1920, AND APR. 28, 1921. [Amounts in millions of dollars.] Loans of member banks in— Percentage of total loans. District. A c g o ri m cu it l i t e u s r . al Sem c i o a u g n ri t c io u s lt . ural Non c a o g u r n ic ti u e l s t . ural 1920 1921 Agri- Semi- Non- Agri- Semi- Non- 1920 1921 1920 1921 1920 1921 cul- agricul-agricul- cul- agricul-agricultural. tural. tural. tural. tural. tural. Boston 35.2 34.5 21.3 22.9 1,332.0 1,295.9 2.5 1.6 95.9 2.6 1.7 95.7 New York 146.5 161.5 76.4 " 81.9 5 494.7 5,068.6 2.6 1.3 96.1 3.1 1.5 95.4 Philadelphia 87.2 96.8 33.2 34.7 1,003.7 975.9 7.8 3.0 89.2 8.8 3.1 88.1 Cleveland. 162.5 160.8 367.8 375.3 1,062. 2 1,163.0 10.2 23.1 66.7 9.5 22.1 68.4 Richmond.. 197.3 202.1 147.2 146.7 552.0 542.7 22.0 16.4 61.6 22.7 16.4 60.9 Atlanta 150.3 154.7 113.3 118 4 484.1 425.4 20.1 15.2 64.7 22.1 17.0 60.9 Dallas., 360.0 337.2 106.5 104.2 237.4 207.5 51.1 15.2 33.7 52.0 16.0 32.0 Chicago... 691.9 675.5 291.9 274.6 2,107.6 1,975. 2 22.4 9.4 68.2 23.1 9.4 67.5 St. Louis 200.0 196.2 34.9 34.3 623.9 550.2 23.3 4.1 72.6 25.1 4.4 70.5 Minneapolis 395.2 376.0 76.3 71.6 338.5 297.8 48.8 9.4 41.8 50.4 9.6 40.0 Kansas City.. 406.7 353.8 87.0 78.0 564.9 489.5 38.4 8.3 53.3 38.4 8.5 53.1 San Francisco 357.3 404.5 128.3 122.8 990.3 972.6 24.2 8.7 67.1 27.0 8.2 64.8 Total. 3,190.1 3,153.6 1,484.1 1,465.4 14,791.3 13,964.3 16.4 7.6 76.0 17.0 7.9 75.1 Several factors need to be considered in ex- year later the lowest point of bank-credit reamining this analysis. One is the fact that duction had by no means been reached. It is the dates represented in it do not show the ex- also to be recalled that the unusually great treme of the variations, for while the volume of carry-over of crops from the crop year of 1920, loans was probably near the peak on the date as well as various other exceptional circumselected in 1920, at the comparative date a stances, tended to make far greater demands Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

OCTOBEE, 1921. FEDERAL RESERVE BULLETIN. 1151 upon the resources of banks in agricultural sec- A factor which has doubtless had some contions and through them upon the resources of siderable effect in masking the Elimination of -, . - -, ,. •••, banks in other parts of the country than is "frozen credit." working of our elastic credit usual.' It is, of course, also obvious that inassystem, and to which occasional much as both of the comparative dates selected reference has already been made in preceding are in the spring of the year the figures presections, is the elimination of "frozen credit.77 sented have no relation to seasonal variations, This "frozen credit'7 represents in a large but must be considered only from the standmeasure the financing of products of varipoint of long-range changes or of variations ous kinds carried over from a preceding year, resulting from fluctuations in the aggregate or the obligations of individuals which have volume of business of all kinds. not been paid at maturity on account of Of special interest in this connection is the the slow movement of goods into the hands of fact that the figures, subject as they are, of purchasers. The increased activity in the course, to the limitations already mentioned, cotton-raising States, resulting from recent disclose a correspondence between the physical advances in the price of cotton, are now tendvolume of production and the credit situation. ing to bring about in some measure a clearance It is in manufacturing that the greatest shrinkof the frozen credits which have been carried age has taken place during the year 1920-21, by banks in those districts. One effect of such while in agricultural production (with the exliquidation is to reduce rediscounts with Federal ception of cotton) the product of 1920, as Reserve Banks. The outcome of this process already seen, makes a very satisfactory comis at times to make it appear that there has parison with that of the preceding season. been a reduction in the total volume of credit Shrinkage in the amount of credit required by extended when, as a matter of fact, what has agriculture, then, could be looked for only to been done has been to settle obligations made the extent that might be expected as the result some time ago whose payment has no immeof price decline. Even here the shrinkage is diate bearing upon the financing of current masked by the fact that many of the bank business operations. Such elimination of loans made on the old basis of prices were simfrozen credit is not confined to the cottonply renewed from time to time for the purpose of raising States or, indeed, to the agricultural carrying the retained or surplus portion of the parts of the country in general, but the process crop until such time as it could be disposed of. of settling such indebtedness carried over from The reduction of loans of member banks in a preceding period is going on in many branches nonagricultural counties is shown as $827,000,of wholesale and of retail trade as well, it would 000, and if these members represent about oneseem, as in some manufacturing sections. The half of the banking assets of the country, the ultimate effect of it is to strengthen the banks reduction of accommodation to manufacturers, by making their portfolios consist of self-liquias thus far indicated between the spring of 1920 dating accounts and by increasing the amount of and that of 1921, would presumably be about their resources available for new production $1,650,000,000. How much the falling off in and business. Not the least important phase the total output of commodities has been is, of of the liquidation operation is that of enabling course, a more or - less conjectural matter. the banks to curtail their dependence upon the This falling off is by some regarded as not reserve institution for rediscounts. This reduces greater than perhaps 25 to 30 per cent. On their expense of doing business and at the same this basis the decline of total output would be time places them in position to discount new much larger than the shrinkage in credit—a and live paper which they can rediscount, fact which is explainable by the circumstance inasmuch as they have reduced their earlier that in many lines the prices were slow to outstanding lines. decline while, as already stated, many loans The situation is in some measure reflected in were continued for the purpose of carrying the increasing degree of self-support among hold-over products at their old level of value. the several districts and their ability to supply Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1152 FEDERAL RESERVE BULLETIN. OCTOBER, 1921. their own credit demands without calling upon Total loans, Wholeothers. discounts, and sale investments price Keference has already been made to the fact (including bills indexes Date. rediscounted) Month. in the „ ,. x , . that in a low-price period a of reporting United member . States Credit and prices. ,, x i . ii T, banks (000's (1913= smaller amount of bank credit omitted). 100). is required to carry a given volume of commodi- 1920. 1920. ties than is the case when prices are high. In May 14 $16,983,816 May 264 June 11 16,926,277 June 258 ordinary circumstances the variation of prices is July 16 16,893,150 July .*.... 250 Aug. 13 16,828,278 August. 234 not sufficient to make this an important factor Fept.17 17,057,374 September 226 Oct.15 17,283,996 October 208 in the study of credit. It should further be Nov.12 16,848,730 November 190 Dec.17 16,803,226 December 173 remembered that in ordinary circumstances 1921. 1921. variations in prices tend to react upon the Jan 14 . 16,397,231 January 163 Feb.11 16,110,211 February 154 volume of goods purchased, the amount turned Mar.ll 15,974,669 March 150 Apr.15 15,756,517 April.... 143 out increasing as prices fall because of the May 11 15,489,269 May 142 June 15 15,430,366 June 139 increase in demand exerted by consumers. July 13 15,051,267 July 141 Aug.17 14,843,767 August 143 The past year has been one of those unusual periods in which a very great and continuous The table shows considerable correspondence fall in prices has coincided with a large shrinkin shifts in credit accommodation and price age in the outturn of many kinds of goods, the changes. Expressed in percentages, however, result being to bring the influence of both it is evident, as stated above, that the defactors—price reduction and product limitacrease in credit accommodation has proceeded tion—to bear upon the banks. Starting with at a much slower pace than the drop in prices. May, 1920, when prices and the credit volume The explanation of this lag in the contraction of the Federal Reserve System were both of banking credit as contrasted with price nearly at their peak, it will be noted that the declines is primarily due to two facts—the growth of credit, after a recession during the first, that the volume of bank accommodasummer, continued on to near the close of 1920, tion can not be instantly altered because the while prices, after a period of hesitation, fell, volume of bank paper, even on the most and this fall did not halt until the summer of liquid basis, runs for a number of days, while 1921. The turn in the amount of outstanding at commercial banks the average life of paper accommodation made by Federal Reserve would be still longer; the other factor in the Banks, as measured by bills held, did not take situation is that in many cases a sharp fall in a definite downward trend until December, 1920, prices necessitates action on the part of banks at which time prices had already fallen about in extending the credit which they have already a third from the maximum. In a general way, granted to cover a rather longer period in order it may be said that there has been paralto give the borrower opportunity to readjust lellism between the reduction of prices and the himself. Where such extensions are made there reduction in the amount of credit extended by is necessarily a postponement of the date when the banks in general during the year 1920the credit movement will adapt itself to that 21, even though a decline in the volume of bills of prices. held by Federal Reserve Banks continued after Credit conditions in the earlier part of the the fall of prices ceased and the slight upward year, as reflected in the sketch turn in prices set in in July. The facts are Domestic busi thus made of them, are also to illustrated in the following table which has ness demand. be observed in their latest form been prepared for the purpose of making clear in the usual production indexes of the month. this situation: Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

OCTOBER, 1921. FEDERAL, RESERVE BULLETIN. 1153 The situation of business at the present time Since the beginning of the present year net has been so thoroughly canvassed as to require gold imports totaled $509,907,000. The largest but little review. Briefly stated, it would ap- gains are shown through imports from the pear to point to an upturn or improvement in following countries: England, $149,387,000; the total volume of operations, although how France, $145,054,000; Sweden, $55,188,000. far such an upturn is likely to go is still Gold exports during the present year were conuncertain. The current production indexes are signed chiefly to the following destinations: as follows: Mexico, $5,199,000; Sweden, $2,643,000; Can- [000 omitted.] ada, $1,629,000; Hongkong, $1,550,000. During the month ending September 10 the August, 1920. August, 1921. July, 1921. net inward movement of silver was $1,771,000, Total. t R iv e e la . - Total. t R iv el e a . - Total. R ti e v l e a . - as compared with a net inward movement of $968,000 for the month ending August 10. Receipts of live stock at 15 western markets Germany furnished over one-half, or $3,685,000, (head) 4,979 100 4,917 98.7 4,004 80.4 Receipts of grain at 17 of the $7,239,000 of silver imported during the interior centers (bushels) 98,579 100 177,430 ;o.o 134,45S 166.4 monthly period ending September 10, the Sight receipts of cotton (bales) 308 100 617 200.3 608 197.4 remainder coming principally from Mexico, Shipments of lumber reported by three asso- Canada, and Peru. Silver exports, amounting ciations (million feet)...783,929 100 819,924 104.6 610,708 77.9 Bituminous coal pro- to $5,468,000, were consigned principally to duction (short tons) 48,910 100 34,538 70.6 30,394 62.1 Anthracite coal produc- China, British India, and other countries of tion (short tons) 8,013 100 7,196 7,050 87.9 Crude petroleum produc- the Orient. tion (barrels) 39,055 100 40,964 104.9 40,328 103.2 Pig iron production (long Net exports of silver since August 1, 1914, tons) 3,147 100 954 30.3 865 27.5 Steel ingot production were $445,680,000, as may be seen from the (long tons) 3,000 100 1,138 37.9 803 26.7 Cotton consumption following exhibit: (bales) 484 100 467 96.5 410 84.7 Wool consumption (pounds) 38,055 100 58,261 153.0 53,076 139.4 [In thousands of dollars.] During the month ending September 10 the Imports. Exports. E e x x c p e o s r s t s o . f net inward movement of gold Gold and silver was $77,364,000, as compared Aug. 1, 1914, to Dec. 31, 1918 203,592 483,353 297,761 movements. with a net inward movement of Jan. 1 to Dec. 31, 1919 89,410 239,021 149,611 Jan. 1 to Dec. 31, 1920 88,060 113,616 25,556 $81,468,000 for the month ending August 10. Jan. 1 to Sept. 10, 1921 41,774 32,526 i 9,248 England and France combined furnished over Total 422,836 868,516 445,680 55 per cent, or $43,647,000, of the $78,001,000 1 Excess of imports. of gold imported during the monthly period Little change in the general credit situation ending September 10, other countries of Europe furnishing over 21 per cent, and the Orient appears to have taken place most of the remainder. Of the gold exports, .... a during the four weeks between amounting to $637,000, over 44 per cent, or August 17 and September 14. $282,000, was consigned to Canada and the Aggregate loans and discounts of the reporting remainder to Hongkong, Mexico, and Cuba. banks fluctuated within moderate limits. The Net imports of gold since August 1, 1914, September 14 total of $11,563,000,000 was only were $1,384,639,000, as may be seen from the $22,000,000 larger than the total reported four following exhibit: weeks previous, a reduction of $21,000,000 in " Government paper" being offset by an in- [In thousands of dollars.] crease of $43,000,000 in the amount of other Imports. Exports. Excess of loans outstanding. A reduction from $3,303,imports. 000,000 to $3,238,000,000 in the investment J A a u n g . . 1 1 , t o 1 9 D 14 e c t . o 3 D 1, e 1 c 9 . 1 3 9 1, 1918 1,77 7 6 6 , , 6 5 1 3 6 4 7 36 0 S 5 , , 2 1 1 8 0 5 1 1 ,0 2 7 9 1 1 , , 4 6 0 51 6 block is due chiefly to further liquidation of J J a a n n . . 1 1 t t o o S D e e p c t . . 3 1 1 0 , , 1 1 9 9 2 2 1 0 4 5 1 2 7 1 , , 0 2 6 6 8 4 3 1 2 1 2 , , 2 0 6 9 4 1 5 9 0 4 9 , , 9 9 7 0 7 7 Treasury certificates during the latter part of Total 2,791,482 1,406,843 1,384,639 August, and to a much smaller extent to liquidation of other Government obligations and of 1 Excess of exports. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1154 FEDERAL RESERVE BULLETIN. OCTOBER, 1921. corporate securities. Accumulation of funds the peak figure of $3,422,000,000 shown for to provide for September 15 tax payments October 15 of last year. Federal Reserve note apparently accounts in part for the gradual circulation, notwithstanding the large note increase in demand deposits of the reporting issues before the Labor Day holiday period, banks; also for the large reduction in borrow- shows a further reduction of $11,200,000, the ings from the Federal Reserve Banks indicated September 21 total of $2,474,700,000 being in the September 14 statement. about $930,000,000 below the peak attained The following table throws some light upon on December 23 of last year. The banks also the course of member bank credit operations report a reduction of $9,200,000 in their net during the four weeks ending September 14: liabilities on Federal Reserve bank notes in circulation. Rediscounts of the Richmond, REPORTING MEMBER BANKS. Atlanta, Minneapolis, and Dallas banks with [In millions of dollars.] other Federal Reserve Banks show but little change, and at the end of the report period Date. N p b o o u a r f m n t r i k b e n s - e g . r a m i c L n n o a e d v o u n n e a n d t d s n s t i t s s s . - 1 - w a p c n R i B a t o d y h e a u a d n b F n b i k i s t . l l R s - . l e s J R a m ( c a t 3 c i o t o + i o d o n m 2 a o - ) - . f d d e e p N m o e a s t n it d s. w to e t e a k le s d b e $ f 6 o 6 r , e 5 . 00,000, or slightly less than four The Federal Reserve Banks report a further gain of $92,000,000 in gold and of $4,900,000 in other reserve cash. It is this gain largely Aug. 17.. 812 14,844 979 Aug. 24. 812 14,784 967 6.5 which is responsible for the further rise of the Aug. 31.. 812 14,762 956 6.5 Sept.7.. 810 14,730 980 6.7 9,982 reserve ratio from 66.5 to 68.7 per cent. This Sept. 14. 810 14,801 908 6.1 10,131 rise was continuous, except for the week ending 1 Including rediscounts with F. R. Banks. September 7, when a temporary increase in Federal Eeserve Bank figures, which cover note and deposit liabilities caused a decline in the four-week period between August 24 and the ratio from 66.8 to 66.2 per cent. September 21, indicate further reduction of In the following exhibit are shown the prin- $46,600,000 in the reserve banks' holdings of cipal changes in the condition of Federal paper secured by Government obligations, of Reserve Banks between August 24 and Sep- $61,500,000 in their holdings of other discounts, tember 21: and of $1,700,000 in acceptances, or a total FEDERAL RESERVE BANKS. reduction in bill holdings of nearly $110,000,000 fin millions of dollars.] for the four weeks under review. Pittman certificates show a gradual decline of $17,- Bills discounted. 000,000, while other Treasury certificates, in- F. R. cluding those held under repurchase agree- Date. C se as rv h e r s e . - b S G y e o c v U u e r r . e S n d - . All T p o o t s a i l t d s. e- n c a o i c r t c t e u u s a l a i l n - R r e a s t e i r o v . 3 ments, show an increase of $5,800,000. Hold- ment other. tion. obligaings of other United States securities, including tions. the newly issued Treasury notes, likewise show an increase for the period of about $4,000,000. A Au u g g. . 3 2 1 4 2 2 , , 7 7 6 8 6 8 5 5 4 4 2 5 9 9 5 4 4 7 1 1 , , 6 6 7 9 4 1 2 2, , 4 4 8 8 1 6 6 66 6 . . 8 5 Sept.7 2,803 539 969 1,718 2,518 66.2 Total earning assets on September 21 stood Sept. 14 2,835 504 924 1,706 2,492 67.5 at $1,652,300,000, or about 52 per cent below Sept. 21 2,863 495 892 1,692. 2,475 68.7 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

OCTOBER, 1921. FEDERAL RESERVE BULLETIN. 1155 BUSINESS, INDUSTRY, AND FINANCE, SEPTEMBER, 1920. Further decided improvement in the credit situation has been the noteworthy feature of business during the month of September. In the cotton regions liquidation of credit has been rendered possible in consequence of the marked advance in the price of cotton, which has carried practically all contracts above 20 cents a pound. At the same time improvement in wholesale and retail trade is expected as a result of the increase in the ability of the farmer to settle his accounts both with banks and with dealers. The greater abundance of funds in the cotton-raising districts is reported as having been reflected in larger wholesale trade. The effects of liquidation expected from the advance in the price of cotton have not as yet had time to appear in the condition statements of Federal Reserve Banks. On the other hand, the advance in prices not only of cotton but of other agricultural products has had certain indirect results. The textile industry has not yet bought freely of cotton at the new price level which has been established, but such mills as possessed a stock of low-priced cotton have attracted a considerable volume of orders. In the grain-growing districts the output has continued to move steadily to distributing points and has also gone abroad in considerable amounts. This grain movement has been practically the heaviest on record and there has also been a heavy movement of live stock. While attention has been largely concentrated on the agricultural side of business development during the month, manufacturing has also continued to show a wholesome improvement in many lines. The advance in the iron and steel trade, first noted in August, has been sustained during the month of September in certain lines, notably in pig iron and light products, such as wire and sheets, in which price advances have occurred. Although orders fell off in August, an increase has occurred since that time, and at the same time more men have been employed. In this connection should also be noted the improvement in the railway industry. The net earnings of Class I railways for July were about $70,000,000, and on many lines the rate of earnings is near the level taken as a standard in the transportation act. Textile manufacturing has been well sustained during the month, and the boot and shoe industry has been notably active in districts Nos. 1, 7, and 8. There is still, however, hesitancy on the part of distributors to place forward orders, although a large seasonal increase in certain lines of wholesale trade, coupled with replacement orders, have resulted in advances. Prices continued to advance during August. The index compiled by the Federal Reserve Board for international comparisons registered an increase of 2 points over the July figure, while the trend during September also appears to have been upward. Price declines in particular lines of business, such as live stock, are due to local marketing conditions. Employment, on the other hand, has increased only slightly, although the situation is better than at the end of August. The end of the harvesting and crop-moving season may tend to increase the number of unemployed, but such tendency is likely to be offset by the growth in demand on the part of manufacturing industries. Railroads have begun to increase the number of their employees to some extent. This is especially noteworthy in the Far West and is emphasized in the reports received from district No. 12 (San Francisco), where it holds true also for general public-utility undertakings. The fact that building contracts have reached a record figure for this year promises larger employment in that direction during the autumn. Financially the month has been notable for the decided fall in German exchange, the mark at one time going below nine-tenths of 1 cent. Easier money conditions have grown out of the gradual liquidation in the East and South, and two Federal Reserve Banks have reduced their discount rate to 5 per cent. The shrinkage of bills held has been a natural outgrowth of the credit situation. Call money, as well as commercial paper rates, have tended lower. Taken all in all, the month has been in the main a period of distinct encouragement and gives promise of better conditions as the autumn and winter advance. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1156 FEDERAL RESERVE BULLETIN. OCTOBER, 1921. AGRICULTURE. hot weather and drought, and has also suffered during September from the continued The composite condition of all crops on Sep- activities of the boll weevil, the boll worm, tember 1 was 92.9 per cent of their average and the army worm. District No. 8 (St. condition on that date during the last 10 Louis) reports that the depredations of the years, as compared with a composite condition boll weevil continued unchecked during Sepof 93 per cent on August 1. There was a serious tember, and that the crop has continued to deterioration in the crops of cotton and oats deteriorate at quite as disastrous a pace as in during August, but this was largely counter- August. The adverse news concerning the balanced by a marked improvement in the condition of the cotton crop resulted in an condition of the corn and tobacco crops. The increase in the price of cotton at New Orleans production of corn forecasted on September 1 from 12 cents per pound on August 16, to 19 amounted to 3,186,000,000 bushels, which is cents per pound on September 16. Cotton 154,000,000 bushels greater than the forecast growers in general seem to consider that this of August 1 and 316,000,000 bushels greater appreciation in cotton values more than comthan the average production for the last six pensates them for the reduction in the volume years. The corn crop in district No. 9 (Minne- of their crop. apolis) is about 6 per cent greater than that of TOBACCO. 1920, and is the largest on record. In district No. 10 (Kansas City) there was also a consid- As a result of favorable weather conditions erable improvement in the condition of corn during August, the average condition of the during August, but hot weather and lack of tobacco crop increased from 67 per cent on moisture caused considerable damage in Ne- August 1 to 71 per cent on September 1, and braska and Oklahoma. The indicated produc- the estimated production on the latter date tion of wheat was 754,000,000 bushels on Sep- was 948,324,000 pounds. The increase was tember 1, as compared with a forecast of found in both .the cigar and manufactured and 757,000,000 bushels on August 1, and an aver- export types. The North Carolina and Virage production of 824,000,000 bushels during ginia crops are far below last year, the second the last six years. However, district No. 9 being estimated as the smallest since 1907, and (Minneapolis) states that the spring wheat crop on account of unfavorable weather much of the is superior to any crop in a generation from a crop is of poor grade. Harvesting was in milling and baking standpoint, and estimates progress in general during September and has that the gluten content will average 2 per cent been completed in some sections. The South higher than that of the 1920 crop. The white- Carolina markets have closed, the crop having potato crop improved somewhat during August, been short and on the whole of unsatisfactory but the estimated production on September 1 quality. Good tobacco brought satisfactory was only 323,000,000 bushels, in comparison prices, but low grades were difficult to sell at with an average production of 380,000,000 any price. The eastern North Carolina marbushels during the previous six years. District kets opened early in September and repeated No. 6 (Atlanta) reports that the condition of the situation found earlier in South Carolina. the cane-sugar crop in Louisiana on September The demand for cigars and cigarettes in 1 indicated a production of 222,527 tons of district No. 3 (Philadelphia) apparently shows sugar, as compared with a production of 169,127 further improvement. Cigar manufacturers tons in 1920. in general report increased sales since June. COTTON. Eight and 10 cent cigars continue to be the best sellers. Operations are still less than at Picking and ginning of cotton is now in this time last year but they are steadily inprogress throughout the cotton belt. Since creasing. the issuance of the condition report of August FRUIT. 25, the cotton crop in district No. 11 (Dallas) has suffered serious damage from a tropical There was little change in the condition of storm which swept 20 counties of Texas. the deciduous and citrus fruit crops during District No. 6 (Atlanta) states that boll wee- August. The deciduous fruit crops this year vils have continued to be very active through- are the smallest in a generation. On Septemout Georgia, and, as a result, the crop in 32 ber 1 the production of apples was estimated counties is estimated to be less than 30 per at 107,000,000 bushels, as compared with a cent of normal. The Alabama crop, on the forecast of 109,000,000 bushels on August 1, other hand, showed some improvement dur- and an average production of 193,000,000 ing the past month. Reports from district during the last six years. This is the smallest No. 10 (Kansas City) indicate that the Okla- apple crop since 1890. The forecasted prohoma crop has been seriously damaged by duction of peaches was 33,000,000 bushels, a Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

OCTOBER, 1921. FEDEKAL KESERVE BULLETIN. 1157 decline of 13,100,000 bushels from the average Ser cent of the total production of district production of the years 1915 to 1920, inclu- \o. 9 (Minneapolis) during the four weeks sive. It is estimated that the pear crop will ending August 27 was 2,289,335 barrels, an amount to 9,475,000 bushels, as compared increase of 22 per cent over the output of with 17,279,000 bushels in 1920. The con- 1,871,265 barrels during the four weeks ending dition of the watermelon crop is the best of July 30. Reporting mills in district No. 10 any crop planted this year, and is 121.7 per (Kansas City) show an output of 2,482,618 cent of its average condition during the last barrels during August, which was 31 per cent 10 years. District No. 6 (Atlanta) reports greater than the July output of 1,902,527 barthat there have been large yields of water- rels. Average production in district No. 12 melons in Mississippi and Tennessee. The (San Francisco) was 662,190 barrels for 70 Florida crop of citrus fruit is estimated to millers, as compared with 598,615 barrels for amount to 13,600,000 boxes, as compared 72 millers in July. In considering these figures, with 13,200,000 boxes in 1920. The yield of it should be remembered, however, that for grapefruit in that State will be exceptionally the United States as a whole, average August large, whilp the crops of limes and tangerines production for the seven years 1914-1920, inwill be below normal. clusive, was 32.8 per cent in excess of July production. The output during the present year GRAIN MOVEMENTS. is, however, 29 per cent in excess of production Receipts of grain at primary markets were during August, 1920, in district No. 9 (Minnegreater in August than in July and exceeded apolis) and 72 per cent greater in district No. the receipts in any other month on record. 10 (Kansas City). Flour shipments from Min- This was due mainly to the large receipts of neapolis and Duluth during August were 24 winter and spring wheat* Receipts of wheat per cent greater than during July and 14 per at Minneapolis and Duluth during August cent greater than during August, 1920, while totaled 21,911,320 bushels, as compared with August shipments from Kansas City were 29 11,261,947 bushels in July and 9,297,800 per cent greater than during July and 61 per bushels in August, 1920. Wheat receipts at cent greater than in August, 1920. The milling the four leading markets of district No. 10 situation in the Southwest has very materially (Kansas City) amounted to 29,955,300 bushels improved, while "the unanimous comment of in August, as compared with 32,789,400 12 reporting mills77 in district No. 8 (St. Louis) bushels in July and 15,942,000 bushels in "is that business during the past two months August, 1920. Receipts of corn and oats also has undergone a marked change for the better." showed large increases in August. At Chi- Export inquiry holds up excellently in that cago, 16,810,000 bushels of corn and 16,722,000 district, and the demand for domestic conbushels of oats were received during August, sumption, especially from the South, has been as compared with 8,954,000 bushels of corn better than at any time in more than a year. and 10,722,000 bushels of oats in July. The A moderate export movement of clears is re- August movement of corn to the four leading ported in district No. 10 (Kansas City), and a markets of district No. 10 (Kansas City) fairly heavy demand from nearly all sections was 96.3 per cent greater than that of a of this country. Wheat flour prices were lower year ago, while the volume of oats marketed at the opening of September than they were a was 36.8 per cent larger than in August, 1920. month earlier, but subsequently increased Stocks of grain at interior centers also in- again. creased, except in the case of corn. Ter- LIVE STOCK. minal elevators at Minneapolis and Duluth Live stock on farms and ranges in general reported that stocks of grain and flax amounted continues in good condition, although some to 31,056,927 bushels on August 31, 1921, sections in district No. 11 (Dallas) have been an increase of 47 per cent over the stocks on adversely affected by drought and heat. July 30, 1921, and an increase of about 670 Movement to market has been very heavy, and per cent over the stocks reported on August efforts to hold it in check were not wholly satis- 31, 1920. Stocks of oats in these elevators factory. Receipts of cattle and calves at 15 have shown a particularly large increase and western markets during August were 1,418,237 amounted to 21,567,259 bushels on August head, corresponding to an index number of 31, as compared with 15,919,084 bushels on 141, as compared with 940,173 head during July 30 and 1,228,883 bushels on August 31, July, corresponding to an index number of 93. 1920. Receipts of sheep increased from 1,035,674 FLOUR. head during July to 1,568,584 head during Production of flour has been maintained at August. The respective index numbers are 76 a high rate. The output of mills producing 75 and 115. Receipts of hogs, however, decreased Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1158 FEDERAL RESERVE BULLETIN". OCTOBER, 1921. from 2,021,268 head during July, corresponding scale of operations in Illinois and Indiana has to an index number of 92, to 1,919,514 head accordingly increased somewhat. Operating during August, corresponding to an index conditions in district No. 10 (Kansas City) number of 87. The movement of cattle and show no material improvement, and during calves and of sheep was, however, smaller than September there has been a further slowing a year ago, although that of hogs was larger. down of operations. Although spot prices of August, 1920, receipts of cattle and calves certain grades have fluctuated considerably, were 1,451,985 head, of hogs 1,784,209 head, the average price remains practically unand of sheep 1,687,787 head, while the respec- changed. Future quotations, states district tive index numbers were 144, 81, and 124. A No. 3 (Philadelphia), are much higher, but confeature of the situation, states district No. 10 sumers show little interest in the contract (Kansas City), is the dearth of good corn-fed market. cattle, and the greater volume of receipts have During the past few weeks the consumer has been light grass-fed stock. There is, however, displayed more interest in purchasing anthraa shortage of cattle in the* West, and the delay cite coal. Demand for the most popular size, in the feeder movement this year has resulted stove coal, has increased to such an extent in in a large number of good western cattle going district No. 3 (Philadelphia) that dealers are to slaughter instead of back to the farms. In- having difficulty in filling orders promptly. crease of the feeder movement in August has Orders for other sizes have also increased. been noted, and feeder shipments of cattle and August production increased to 7,196,000 tons, calves from 34 markets increased from 120,429 as compared with 7,050,000 tons in July. The head in July to 353,619 head in August, while respective index numbers are 97 and 95. The shipments of sheep increased correspondingly larger companies made the usual 10 cents per from 138,414 head to 367,042 head. ton advance on mine prices on September 1. As a result of the heavy movement, cattle Independent operators, many of whom underprices in general fell, and at Chicago even bid the companies during the slack summer affected some of the corn-fed grades of cattle. period, have again advanced quotations, which Similar changes were noted in the case of hogs are now 10 to 40 cents per ton higher for preand sheep. Thirteen reporting packers in pared sizes than the company levels. The district No. 7 (Chicago) show decreases of 13.5 continued sluggishness of the small sizes, per cent in dollar sales in August as compared however, combined with lack of storage fawith July, and 35.2 per cent as compared with cilities, has forced them to dispose of these August, 1920, due in part to the decline in grades at prices considerable lower than those prices. A gradual improvement in the de- of the companies. Some of the independent mand for fresh meats was in evidence in that mines which were closed on account of the district from the middle of August to the slack demand during the early part of August, middle of September, but some surplus found have lately resumed operations. The output its way into the freezers. Wholesale prices, of beehive coke, although showing an apprecihowever, in general declined. Stocks of fresh able increase, is still less than 15 per cent of and cured meats declined somewhat during normal, but the output of by-product coke is August. from 40 to 50 per cent of normal. Producers' COAL. stocks have decreased as a result of renewed demands from iron and steel manufacturers, Production of bituminous coal increased some- and spot prices in district No. 3 (Philadelphia) what during August, but was still far under the have stiffened materially. normal figure for that month. It was 34,538,- 000 tons, corresponding to an index number of PETROLEUM. 93, as compared with 30,394,000 tons for July, corresponding to an index number of 82. The decline in petroleum production, which Compared with the average for the eight years commenced in July, continued at a somewhat preceding, 1921 production is 62,000,000 tons accelerated rate during August. This was in arrears and is steadily falling still further largely due to a marked curtailment in drilling behind. Purchasing has increased somewhat operations. Demand for both crude and rein district No. 3 (Philadelphia), but domestic fined oils showed some improvement during buying continues to be almost entirely for spot August, but prices of most refined petroleum coal. Export demand is reported very small. products continued to decline on account of Retailers' yards in districts No. 5 (Richmond) the large stocks on hand. Prices of fuel oil, and No. 6 (Atlanta) are well stocked, and con- however, showed a slight increase during the sumers have been slow in placing orders. An early part of September. increase in the demand for domestic sizes in District No. 10 (Kansas City) reports that district No. 7 (Chicago) is reported, and the development operations have been curtailed in Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

OCTOBER, 1921. FEDERAL RESERVE BULLETIN. 1159 recent months to a point where fewer wells are mouth, and some increases are reported during now being drilled than at any other time in the present month. Whereas the gain in Authe last three years. Only 480 wells, with an gust pig-iron production was due principally to initial daily production of 69,787 barrels, were the operations of steel works stacks, several completed in August, as compared with 640 merchant furnaces have been blown in since wells, with an initial daily production of 77,997 the 1st of September. The situation with rebarrels, in July. The total output of crude spect to finished steel products, however, is petroleum in Kansas and Oklahoma amounted still uneven and conditions are unsettled. to about 13,000,000 barrels in August, as com- Manufacturers of certain of the lighter prodpared with 13,598,000 barrels in July. Pro- ucts, notably wire and sheets, have booked duction of crude oil in district No. 11 (Dallas) considerable tonnage and have advanced prices. totaled 10,538,893 barrels during August, a In other lines, however, particularly shapes decline of 127,453 in comparison with the July and bars, further price reductions have been output. In this district only 223 new wells, made, and buyers in these lines still are unwith an initial daily production of 27,302 willing to place orders for future delivery. barrels, were completed in August, as com- AUTOMOBILES. pared with 251 wells, with an initial flow of 60,810 barrels, in July. Average daily Califor- August shipments by automobile manunia production declined from 331,252 barrels facturers showed some increase over the July in July to 323,676 barrels in August, but con- figures. Carload shipments were 20,350 carsumption decreased even more, and stored loads, as compared with 19,470 in July and stocks at the end of the month therefore in- 23,386 in August, 1920. Driveaways, however, creased to 33,829,725 barrels. Eighty-three decreased somewhat and were about one-half new wells were completed, with an initial daily those in August, 1920, and the same is true new production of 20,895 barrels, as compared of boat shipments. Keen competition conwith 76 new wells, producing 19,675 barrels, tinues among manufacturers and further cuts in July. have been made on certain cars. In spite of those reductions, reports from representative IRON AND STEEL. manufacturers, it is stated from district No. After a continuous decline since October, 7 (Chicago), seem to indicate that any in- 1920, pig-iron production showed an increase creases in sales by individual manufacturers during August. The output during that month have been at the expense of other manuamounted to 954,193 tons, as compared with facturers, rather than a result of the develop- 864,555 tons during July. The respective in- ment of new demand. The condition of dex numbers were 41 and 37. The number of truck manufacturers has been less favorable furnaces in blast remained unchanged. Steel- than that of manufacturers of passenger cars. ingot production showed a somewhat greater Immediate orders, it is stated from district increase, from 803,376 tons to 1,138,071 tons. No. 4 (Cleveland), are at low ebb, but in- The respective index numbers were 35 and 49. quiries have recently been increasing. This increase in output was not, however, accompanied by a similar increase in orders for NONFERROUS METALS. advanced delivery, as the unfilled orders of the There was a slight improvement in the de- United States Steel Corporation declined from mand for nonferrous metals in the early part 4,830,324 tons at the close of July, correspond- of September. The price of copper (New ing to an index number of 92, to 4,531,926 tons York, net refinery) was 11J cents per pound at the close of August, corresponding to an on September 14, as compared with llf cents index number of 86. per pound on September 1, while the price of There is now a generally stronger tone in the lead at New York increased from 4.4 cents per industry. The improvement which made its pound on September 1 to 4.6 cents per pound appearance in August has become somewhat on September 14. The demand for zinc conmore marked. This is noticeable in the case tinued to be very light, and the price at St. both of pig iron and of certain finished products. Louis remained practically unchanged dur- The demand for pig iron has broadened to ing the last month. Copper production in some extent, and more interest is displayed in August amounted to 20,019,000 pounds, in contracting for future delivery. Total sales in comparison with a production of 16,390,000 August were the best of the year by a substan- pounds in July. There was a further curtailtial margin and shipments improved in an even ment of zinc production, from 15,495 tons in greater proportion. Prices hardened consid- July to 14,621 tons in August. Shipments erably during the latter part of August after of zinc, however, showed a considerable inhaving dropped to low levels earlier in the crease in August, which resulted in reducing Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1160 FEDERAL RESERVE BULLETIN. OCTOBER, 1921. the stocks on hand from 92,408 tons on August the date of writing that mills were running 1 to 86,549 tons on August 31. This stock "on approximately full time" and that many of zinc is not regarded as excessive, as it of them had sold out their products for several represents no more than three months7 normal months ahead. In tnis district, too, some of consumption. Only about 3,000 miners were the textile mills, since the rise in the price of working underground in zinc and lead mines cotton, have withdrawn goods not previously of district No. 10 (Kansas City) at the end of contracted for, and it remains to be seen how August, as compared with 12,000 to 15,000 much buying will be done when these goods during the years 1915 to 1917, inclusive. The are offered at an advance in price. The demand for both zinc and lead ores from that amount of raw cotton consumed during August district continued to be restricted, but there amounted to 467,103 bales, as compared with was an advance of $2.50 per ton in the price 410,120 bales in July. The total was slightlv of lead ore during August. below consumption of August, 1920, which amounted to 483,560 bales. COTTON TEXTILES. FINISHERS OF COTTON FABRICS. The unexpectedly rapid advance in the price of raw cotton has introduced such an element Reports received from 34 members of the of uncertainty into all branches of the cotton National Association of Finishers of Cotton textile industry that it has been necessary for Fabrics showed a large increase in the total many interests to "mark time" and to await gray yardage of finishing orders received during developments. There appears to be a great the month. The output rose from 82,734,438 difference of opinion concerning the future yards to 101,741,412 yards. The total finchanges in the market for raw cotton, and ished yards billed during August amounted to consequently there is a general unwillingness 95,915,235, as compared with 85,233,724 durto enter into contracts for future delivery ing July. The total average percentage of based on present prices of cotton. As many capacity operated during the month of August mills have been carrying stocks which are be- rose to 71 irom an average of 62 in July. The low normal, they are not in a position to enter increase in the average work ahead at the end into new contracts unless account is taken of of the month was slight, amounting to 9.6 recent price increases. Distributors, on the days as compared with 8.9 at the end of July. other hand, fear that attempts to pass on price advances will cause undue restriction of de- WOOLEN TEXTILES. mand on the part of the consuming public. The woolen industry in New England con- As a result, both distributors and manu- tinues to maintain a high degree of activity, facturers have in many instances withdrawn and woolen and worsted mills are operating lines until a greater measure of stability in the at about 80 per cent of capacity at the present cotton market can be counted upon to afford time. The monthly consumption of wool, a basis for safe calculation. Yarn prices have which was only slightly above 12,000,000 advanced with the increase in the price of the pounds last December (grease equivalent basis), raw material and have been especially heavy in nas risen to about 35,000,000 pounds in the long-staple yarns. In the yarn market, like- New England section, while wool consumption wise, there are practically no future contracts for the country as a whole amounted to being entered into. In district No. 6 (Atlanta) 58,261,000 pouncls for August, as compared with reports from 34 representative yarn mills 53,076,000 pounds for July. District No. 1 showed a decided advance in production dur- (Boston) reports that the Boston wool market ing the month of August of 14.4 per cent, as "continued to be moderately active during measured in pounds, while totals were only 8.7 September and prices paid for finer grades per cent below the figures for a year ago. were firm.77 In district No. 3 (Philadelphia) Orders at the end of August were 56.4 per cent carpet wools, long inactive because of the above those on hand at tne end of the preceding strike of carpet and rug weavers, are now in month, while shipments during the month demand. There has been some shift of deadvanced 36.9 per cent. Thirty-three rep- mand from woolen to worsted goods, and conresentative cotton-cloth mills in the district sequently production of the latter has increased, were producing a yardage 7.2 per cent greater while there has been a slight falling off in the in August than in July, but the figures were production of woolens. Duplicate orders for 39.8 per cent below those for August, 1920. the heavy weight fall season of 1921 and Orders on hand at the end of August were 7.8 buying for the spring of 1922 is at the present per cent above those for the end of July. In time much less active than it was earlier in district No. 5 (Richmond) it was reported at the present season. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

OCTOBER, 1921. FEDERAL RESERVE BULLETIN. 1161 The special inquiry into the clothing in- year imports totaled 33,823 bales and condustry, which is made each month by district sumption 32,790 bales. No. 7 (Chicago), indicates that there was not much change in general conditions during HOSIERY AND UNDERWEAR. the month of August. The number of suits made by reporting wholesale clothiers increased Business in knit-goods lines and in hosiery somewhat during August as compared with has felt seriously the effect of the rise in the July and was about equal to the output during price of cotton yarns. District No. 3 (Philadel- August, 1920, except in the case of one con- phia) states that activity in cotton and mercern, which showed a large increase. The 13 cerized hosiery has come almost to a standstill, reporting firms representing tailors-to-the-trade while conditions in the underwear trade showed an output for August substantially the "are such as to force the majority of manusame as for July, although the number of facturers into the position of mere onlookers suits made during the month was 42.8 per cent waiting for a stabilization in prices.77 The below the totals for August, 1920. Replies to business in silk hosiery continues to be good questionnaires sent to 23 leading clothing firms and mills making full-fashioned hosiery in by district No. 8 (St. Louis) indicated a fairly district No. 3 are running at full capacity. steady improvement in demand. The re- During August 25 firms selling to the wholesale porting establishments in that district were trade stated that there was an increase of 14.2 stated to be sold up for the next two months, per cent in product manufactured as comwith excellent inquiry for fall and winter pared with July and of 31.7 per cent as comgoods and marked improvement in orders pared with August, 1920. Orders booked from the South for the fall. during August were, however, 31.9 per cent below those for July, although 56.1 per cent in excess of those received during August, SILK. 1920. Unfilled orders at the end of August The silk industry in the Paterson and North were 17.1 per cent less than at the end of July, Hudson section showed lessened activity during but 24.4 per cent above those of August 1920. the two weeks ending September 12 as com- In the case of firms selling to the retail trade pared with the preceding period of two weeks. the product manufactured declined slightly In the North Hudson section 2,848 looms during August by 0.4 per cent as compared were producing out of a total of 4,670, which with July; orders booked were 38.4 per cent was a slight increase over the number reported less during August, unfilled orders on hand for the previous two weeks7 period of 2,812; but declined 28.9 per cent and were 26.1 per the percentage of loom hours to the total pos- cent below those for the end of August, 1920. sible was only 47.1 per cent, as compared with The reports received from 41 members of the 60.3 per cent during the preceding period. Knit Goods Manufacturers of America engaged Only 4,002 out of a total of 15,000 looms were in producing underwear showed substantial producing in Paterson, a drop from 4,447 for improvement in output during August as the preceding two weeks. The percentage of compared with July. Mills producing 255,829 loom hours also fell from 27.5 per cent to 22.9 dozens in July had an output of 279,600 per cent. District No. 3 (Philadelphia) reports dozens in August, a gain of 9 per cent. Una falling off in demand for broad silk and silk filled orders the 1st of July amounted to ribbons. Mills in the district state that pro- 372,514 dozens and had risen to 395,902 duction is still curtailed and they are operating dozens on August 1, or 6 per cent. New at about 70 to 85 per cent of capacity. Even orders rose from 238,258 dozens in July to so, some firms say that stocks are "gradually 444,243 dozens in August, or 9 per cent. Shipaccumulating.77 It is said that uconditions ments also increased from 233,972 in July to prevailing in the silk-goods trade are reflected 360,787 in August, or 5 per cent. Production m the thrown-silk market. Operations have reports from 34 representative mills comparing been reduced by many throwsters to only 50 July with August indicate the following subper cent of capacity. Prices remain at about stantial gain: Unfilled orders, 23,888 dozens; the same level as last month, but they are con- new orders, 205,985 dozens; shipments, 126,815 siderably lower than were those of 192O.77 dozens; production, 23,771 dozens. Five mills There is little demand for raw silk at the present still remain closed, but those in operation time, but both consumption and imports show an increase in production of more than showed a marked increase as compared with 20 per cent over July. Confidence is being August a year ago. In August ol last year restored and as a result production and disimports of raw silk amounted to 16,106 bales tribution are gaining slowly but steadily. and consumption to 17,241 bales, while this Both summer and winter lines rose in equal Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1162 FEDERAL OCTOBER, i92i. proportion during this month, indicating a LUMBER. return to normal seasonal channels of distribution. Prices were firmer, business was Reports from the several lumber districts broader, and it is believed the period of de- indicate improving conditions and a more flation is over for the present. optimistic attitude generally in the lumber trade. District No. 12 (San Francisco) reports that there has been some improvement SHOES AND LEATHER. in the district for upper grades of Douglas fir Prices of green hides registered little change during September; spot prices of California during the first three weeks of September. redwood, white pine, and sugar pine have Lambskins have increased somewhat in price, remained stationary or receded. Four lumber while calfskins have shown a slight decline. associations in that district report a cut of Production of green cattle hides increased 356,233,000 feet for the four weeks ending during August, but showed a moderate decline August 27, which was 81 per cent greater than in the early part of September. District No. during the four weeks ending July 30. New 7 (Chicago) reports that trading in packer hides orders increased from 263416,000 feet in July ; has been very active at Chicago, whereas the to 331,316,000 feet in August. About 75 per market for country hides has been very quiet. cent of the lumber mills capacity in the Pacific Tanneries in district No. 7 (Chicago) report an Northwest and 60 per cent in the inland increase in volume of sales of leather during empire is reported as being in operation, while the first two weeks of September. Operations logging operations are only 40 per cent of of upper leather tanneries on September 10 nofmai. In district No. 11 (Dallas) 36 pine were between 75 and 80 per cent of normal. mills report an improvement in demand in District No. 3 (Philadelphia) states that upper August. Orders received by these mills durleathers were less active in September than ing the month were 88 per cent of the normal August. Sole leather, however, has been in monthly production, while orders booked good demand, and there has been a substantial during July represented but 66 per cent of the increase in orders from the repair trade. normal monthly production. Orders received There has been a slight improvement in sales from railways for car repair materials account of belting leather, but no price changes have for the greater proportion of this increase. In been reported. The activity of the boot and district No 6 (Atlanta) 130 mills, members of the shoe industry continued to increase during Southern Pine Association, report orders received August for tne ninth successive month. The during August to be 5.7 per cent greater than August production of nine leading shoe manu- the normal production of these mills. Actual facturers in district No. 1 (Boston) was 13-4 production was 67,766,786 feet, approximately per cent greater than in July, while shipments 24.3 per cent less than normal. The shipments increased 27.5 per cent. Unfilled orders de- showed an increase each week and totaled clined somewhat during August, but the vol- 78,454,426 feet for the month, which is but ume of new orders was larger than in August, 9.7 per cent below normal production. This dis- 1920. Forty-four shoe firms in district No. 3 trict reports the reopening of some mills which (Philadelphia) report for August that pro- had been closed during July. Present prices duction increased 26.7 per cent, shipments 81.4 are much lower than those which prevailed per cent, and new orders 31 per cent over a year ago, but the market is reported to be figures for July. "Orders on hand, however, considerably stronger than it was during July. decreased 12.2 per cent during the month. District No. 8 (St. Louis) reports an increasing Shipments by 11 reporting manufacturers demand for yellow pine but a quiet hardwood in district No. 8 (St. Louis) during August market. Production of hardwood remains at a ranged from 20 to 40 per cent larger than very low level, due to low prices and the present in August, 1920. Four of the largest in- high freight rates. In district No. 9 (Minneterests in that district are now producing apolis) the reported August lumber cut totaled more goods than at any time in the past. 12,549,909 feet, which was about 5 per cent less Fourteen manufacturers* in district No. 7 than in July, but which was 56 per cent less (Chicago) produced in August 19.5 per cent than in August of last year. The stocks of more shoes than in July, and 15.9 per cent lumber manufacturers showed less than a 1 per more shoes than in August, 1920. Shipments cent decrease from the total at the close of July, by these manufacturers were 24.7 per cent and a 29 per cent increase over the stocks on greater than in July and 34.5 per cent greater hand on August 31, 1920. Lumber shipments than in August, 1920. AH Chicago factories in this district during August increased 24 report an improvement in the demand for per cent over the July figure in contrast with men's shoes, but some recession in the demand declines in August shipments in both 1919 and for women's shoes. 1920. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

OCTOBER, 1921. FEDERAL RESERVE BULLETIN". 1163 cities during August totaled 3,437, valued at BUILDING. $5,304,592, as compared with 2,007 permits, The total value of contracts awarded (com- valued at $4,057,181, granted during August, piled by the F W. Dodge Co.) indicates an increase 1920. In four cities of district No. 8 (St. Louis) during August as compared with July, and as 1,971 permits, valued at $3,325,791, were issued compared with August of last year. Four of during August in comparison with 1,302 perthe seven districts for which contract figures are mits, valued at $2,751,877, issued during the available show a considerable increase over corresponding month of 1920. Reports from July, while districts No. 4 (Cleveland) and No. sixteen cities of district No. 10 (Kansas City) 9 (Minneapolis) show decided decreases. Con- for August show a gain of 54.8 per cent in the tracts awarded during August in district No. 1 number of permits granted and 93.8 per cent in' (Boston) amounted to $19,276,295, as com- the estimated cost, as compared with August, pared with $19,298,334 during July. About 1920. This is the largest percentage of gain that $6,702,583 of this total was for residential pur- has been shown in any month this year over the poses, as compared with $6,672,758 during corresponding month last year. In nine cities July. In district No. 2 (New York) contracts of district No. 11 (Dallas) 2,814 permits, valued awarded totaled $62,043,905, as compared with at $6,401,268, were issued during August, in July contract figures of $54,500,566, and resi- comparison with 1,548 permits, valued at dential building amounted to $36,061,717, as $2,950,694, issued during August, 1920. The compared with $22,546,142 during July. Con- value of building permits for twenty cities of tracts for district No. 3 (Philadelphia) district No. 12 (San Francisco) amounted to amounted to $22,350,500, as compared with $17,126,365 in August, as compared with $13,563,100 during July. Of this total, $15,080,736 in August of last year, and the $5,331,500 was for residential building, as com- number increased from 7,577 to 10,096. pared with $2,971,900 during July. In district No. 4 (Cleveland) total contracts for August EMPLOYMENT. were $26,665,555, in comparison with $35,669,377 for July. Of these, residential con- There were no noteworthy changes in the tracts amounted to $8,209,645, in comparison employment situation during the month of with $8,319,248 during July. Total contracts August, the period covered by the latest refor district No. 5 (Richmond) totaled port of the United States Department of Labor. $17,337,624 during August, as compared with Decreases were recorded in five of the fourteen $16,026,969 during July. Residential building reporting industries, but it is noticeable that in amounted to $5,938,417 in August, as compared two of these five industries—namely, woolen with $5,335,545 in July. In district No. 7 textiles and cigar manufacturing—the numbers (Chicago) total contracts awarded amounted to employed in August were 114 per cent and 4.5 $44,680,034 during August, in comparison with per cent, respectively, above those employed $41,119,866 during July, and residential build- during August, 1920, while in the case of the ing amounted to $10,424,029 in comparison silk industry the employment figures were with $7,382,427 during July. Contracts for only 2.2 per cent below those given for a year district No. 9 (Minneapolis) totaled $9,173,552 ago. There was an increase of 4.9 per cent in in August, as compared with $12,651,007 in numbers employed in the iron and steel indus- July. Of this amount, $2,975,503 was for resi- try during the month as compared with the dential purposes as compared with $3,758,504 July figures. On the other hand, there was a in July. slight decline for bituminous-coal mining of 1.6 In district No. 2 (New York) 8,188 permits per cent. The special report on employment were issued during August, valued at conditions, which is regularly made by district $55,534,223, as compared with 5,071 permits, No. 7 (Chicago), covers 237 manufacturing valued at $35,952,930, during August, 1920. concerns, employing at the present time Permits granted in nineteen cities of district 138,237 men. The employment in these fac- No. 7 (Chicago) numbered 6,157, valued at tories increased 1.4 per cent in August for the $25,578,330, as compared with 5,346 permits, district as a whole and 1.2 per cent for the valued at $15,539,077, granted during the cor- establishments located in Chicago. These figresponding month of last year. The number ures coincide very closely with those for the and valuation of building permits issued during general survey of the Department of Labor, August in nine cities of district No. 9 (Minne- which showed an increase of 1.08 per cent in apolis) increased 27 and 34 per cent, respec- numbers employed for the industries covered. tively, as compared with the July figures. District No. 8 (St. Louis) likewise made spe- In the districts for which no contract figures cial inquiry in regard to the employment conare prepared, district No. 6 (Atlanta) reports ditions in the 21 largest cities of that district, that the number of permits granted in fourteen and reports that in establishments with a nor- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1164 FEDERAL RESERVE BULLETIN. OCTOBER, 1921. mal complement of 215,784 workers, numbers were recorded amounting to 7.2 per cent with employed August 1, 1921, were 165,874, a de- four firms reporting, and 9.8 per cent with crease of 21.3 per cent as compared with Au- twenty-nine firms reporting, for the respective gust 1, 1920. Reports made oy the various districts. Apparently the need of replenishing State departments of labor indicate a slight retail stocks allowed to run down during the improvement in conditions during the month summer largely explains the increases in grocery of August. ^sales. District No. 3 (Philadelphia), with an in- In Pennsylvania the State Department of crease of 10.4 per cent for forty-eight reporting Labor estimates that unemployment in the six grocery firms, states that there is comparatively cities of Altoona, Harrisburg, Johnstown, Phil- little tendency to buy for the future, and this adelphia, Scran ton, and Williamsport has stead- testimony is corroborated by similar statements ily declined since August 15, the figures for from other districts. The fall demand for dry September 15 of numbers unemployed being goods and boots and shoes has resulted in espe- 3.8 per cent below those of August 31, which cially heavy advances in these two lines. In four in turn were 2.5 per cent under returns of districts, namely, district No. 2 (New York), No. August 15. In district No. 5 (Richmond) con- 5 (Richmond), No. 9 (Minneapolis), and No. 11 ditions were reported to be less favorable for (Dallas), there were increases in dry goods sales unskilled workers, but they had improved in in excess of 50 per cent, ranging from 50.6 per the building trades, the textile mills, and rail- cent for district No. 5 (Richmond), with eight road work. The strike in the mills around firms reporting, to 54.2 per cent for district Charlotte has been settled, and there has been No. 11 (Dallas), with eight firms reporting. In a resumption of activity in that region. In district No. 7 (Chicago), with six firms reporting, district No. 10 (Kansas City) operating condi- dry goods sales increased 43.1 per cent and in tions in the mining sections showed no mate- district No. 6 (Atlanta), 45.5 per cent, eighteen rial improvement. A survey of labor condi- firms reporting. The minimum increase octions disclosed the fact that in Missouri, in the curred in district No. 12 (San Francisco), with zinc and lead mining districts, u there were ten firms recording an advance of 29 per cent. only 270 miners working underground, while In the case of boots and shoes, five reporting there were 800 in Kansas and 2,200 in Okla- districts, No. 2 (New York), No. 5 (Richmond), homa, a total of slightly over 3,000 men, as No. 6 (Atlanta), No. 7 (Chicago), and No. 12 compared with 12,000 to 15,000 during the (San Francisco), showed increases ranging from period of 1915 to 1917. There were but 35 29.8 per cent for thirteen reporting firms in dismills working out of 208 in the district, which trict *No. 12 (San Francisco) to 84.3 per cent for is another criterion of the inactivity now pre- the eight reporting firms in district No. 5 (Richvailing in the zinc industry as compared with mond). Tne increases in sales of wholesale previous years.77 Although in district No. 12 hardware have been much less pronounced, (San Francisco) there has been a slight increase the minimum advance being 1.2 per cent for in employment in Oregon and Washington due ten firms in district No. 2 (New York), the to seasonal activities and public works, the maximum 18.4 per cent for eleven firms in situation in California has become aggravated district No. 11 (Dallas). Notwithstanding by an influx of workers from outside points. these heavy seasonal increases in sales, sales Reports indicate that about 45,000 are un- expressed in terms of value are still far below employed in that State. There has been no the figures for August, 1920, although in the increase in the activity in the metal mining majority of cases the volume of sales compares in Arizona, Nevada, and Utah, but nevertheless favorably with the returns for a year ago, some decrease in unemployment has resulted generally being as large or in some instances from greater building activity and increased larger than in August, 1920, except in the case work on public improvements and for railroads. of hardware lines. Caution in placing orders and unwillingness to make extensive commit- WHOLESALE TRADE. ments for the future continue to characterize the attitude of the retailer, despite the fact of Sales of reporting wholesale firms in three general improvement in current business. lines, hardware, dry goods, and boots and shoes, showed an average advance in August RETAIL TRADE. as compared with July for every district. Increases in wholesale grocery sales also oc- The value of sales for retail trade in August curred in districts No. 2 (New York), No. 3 continued to be less than last year. The fact (Philadelphia), No. 5 (Richmond), No. 6 (At- that price reductions have been relatively lanta), No. 7 (Chicago), and No. 11 (Dallas). greater than reductions in value of sales would In district No. 10 (Kansas City) and district seem to indicate that the physical volume of No. 12 (San Francisco), however, decreases retail trade was actually larger than in August, Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

OCTOBER, 1921. FEDERAL, RESERVE BULLETIN. 1165 1920. The commodities which seem to be metals advanced during the month. No imselling best are furniture, knitting yarns, and portant changes occurred in the prices of buildcotton piece goods. August reports for 330 ing materials, while there was a hardening department stores throughout the United tendency in coal and oil prices. States show a moderate improvement over Wholesale index numbers are not yet availthose for July. Average sales for these stores able for September, but the August figures for were 11.9 per cent less than in August, 1920, "all commodities" show small increases over whereas average sales for July were 15.1 per the July averages. The index number of the cent less than in July, 1920. The improvement Federal Reserve Board, constructed primarily seems to be mostly confined to the East, as for international comparisons and computed districts No. 7 (Chicago) and No. 11 (Dallas) with prices in 1913 as 100, gives an average of show a decrease from last month and other 143 in August as compared with 141 in July. western districts still show a large decrease The most important increases occurred in concompared with last year. Reports of these 330 sumers' or highly manufactured goods. Derepresentative department stores show a de- creases were registered in producers' or semicrease from August, 1920, amounting to 4.5 finished goods, while raw materials remained per cent in district No. 1 (Boston), 5.2 per practically unchanged. Retail prices of foods cent in district No. 2 (New York), 4 per cent continued to advance, the index number of the in district No. 3 (Philadelphia), 21 per cent in Bureau of Labor Statistics for August showdistrict No. 4 (Cleveland), 9.8 per cent in dis- ing an increase of approximately 5 per cent trict No. 5 (Richmond), 31.3 per cent in dis- over July. trict No. 6 (Atlanta), 18.8 per cent in district SHIPPING. No. 7 (Chicago), 11.7 per cent in district No. 8 (St. Louis), 11 per cent in district No. 9 During September some improvement was (Minneapolis), 8.9 per cent in district No. 10 noticeable in the amount of cargo offered for (Kansas City), 23.3 per cent in district No. 11 shipment to foreign ports. The available steam (Dallas), and 6.2 per cent in district No. 12 tonnage remains, however, greatly in excess of (San Francisco). The stocks on hand at the shippers7 requirements, with the result that end of August were very much lower than a ocean freight rates continued merely steady and year ago, but were slightly greater than at the substantially unchanged from the levels which end of July. The rate of stock turn-over has were reached last June. An important factor changed little, although it shows a slight tend- contributing toward the steadiness of rates in ency to decline. Orders in August continued recent months has been the large volume of at about the same high level as in July. grain shipped throughout the summer, thus keeping many ships in constant service. Owners of vessels are able to do little more than meet PRICES. expenses with rates at current levels, and in During the first three weeks of September many cases have preferred to lay up their ships prices of most basic commodities advanced or rather than accept such partial cargoes as have offered. A development in the last week of showed little change from the August level. September was the announcement of a reduc- In the case of live stock the tendency was the tion in rates to European ports by the several reverse, hogs showing particular weakness, but conference lines. This action is generally reccertain other agricultural commodities, such as ognized as an effort to meet the competition cotton, wheat, oats, and wool, advanced. The of "tramp" vessels, which of late have been 50 per cent increase in the price of cotton durmaking inroads in the liners' business. ing the course of the month led to large nominal advances in yarn and cloth prices and stimulated FOREIGN TRADE. demand for allied commodities. In the woolen industry raw materials were firm and showed The value of our foreign trade in August is a tendency to advance in the middle of the reported at $372,000,000 for exports and $195,month, while yarn and cloth prices in general 000,000 for imports, leaving an export balance remained unchanged. No important fluctua- of $177,000,000, which was only partially offtions occurred in hide and leather prices. The set by net importations of gold to the amount September quotations are approximately the of $86,000,000. The values of both imports same as those for August. and exports show gains over July, exports Prices of pig iron are slightly higher than a being higher than in any month since March. month ago, while semifinished steel products Comparisons between the months of this year with some exceptions are lower. Large price and similar periods last year are apt to be miscuts in the steel industry, however, appear to leading on account of the far higher level of have come to a halt. Prices of nonferrous prices which then prevailed, so that while the Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1166 FEDERAL RESERVE BULLETIN. OCTOBER, 1921. reported value of exports in the last few absence of a ready market for the sale of months has been only one-half as much as in acceptances, an accepting bank may find it the same months of 1920, the volume of exports necessary to carry its own acceptances for the stated in quantitative terms has actually been drawer, and in that case the accepting bank is greater than a year ago. This means that the put in the position not only of granting its prices upon which the export valuations are credit to the drawer but of actually carrying based have declined more rapidly than have him. The result is that the purpose of the exports stated in terms of dollars. In sub- establishment of the acceptance credit, namely, stantiation of these facts it majr be pointed out to lend currency to a bill on which the drawer that the Board's foreign trade index, in which can realize without engrossing the resources of the effects of price changes have been elimi- the accepting bank, has been defeated. Or, if nated, stands at 140.9 for exports in August, the bank is not constrained to hold its own 1921, compared with 87.3 in August, 1920, and a acceptances, it may have no other recourse than monthly average during 1920 of 107.7. The in- to negotiate directly the sale of these acceptdex number for August, 1913, is 90.7, the 1913 ances to investment institutions. To do this monthly average being 100. The conclusion is effectively on any large scale, however, necessitherefore to be drawn that in volume our export tates a considerable organization and a large trade is now larger than in 1920 or in the variety of bills, and for many banks would be months shortly preceding the war. quite impracticable. Moreover, when bills are marketed directly by the acceptor, conditions are not as favorable for achieving an impartial DEALING IN ACCEPTANCES. appraisal of such offerings by the open market as they are when the bills have been subjected DEFINITION OF TERM "DEALER." to a process of evaluation by passing through The following description of methods em- the hands of men whose business it is to deal ployed in buying and selling acceptances is in acceptances. oased upon the answers to questions furnished In short, the services of the dealers are simiby the principal dealers in New York, Chicago, lar to those performed by middlemen everyand Boston, who have kindly agreed to give where, i. e., the creation, or more exactly, this information. As the inquiry has been organization of a market to which both buyers confined to dealers' practices, it is desirable to and sellers may resort without loss of time and define the term "dealer" as it is employed in in the expectation of finding a scale of prices, this article. An acceptance dealer is an indi- or, as in this case, of rates which reflect current vidual, firm, or corporation engaged in actually market conditions. The existence of a market buying and selling the acceptances of others. for acceptances which can be relied upon by A portion of the profit that may be derived from sellers to absorb their offerings immediately such operations comes from disposing of the depends upon the extent to which a profesbill at a lower rate of discount than that at sional dealer's demand has been built up, as which it is bought, and bills are bought to be direct reliance upon the investment demand sold as speedily as possible. Thereby the means an appeal to a heterogeneous group, acceptance dealer is to be distinguished from which in turn means numerous, uncoordinated, the investor on the one hand, and on the other, and uncertain markets. The dealers, however, from institutions that find their profit in in order to be in a position always to handle granting acceptance credits. Institutions that all legitimate offerings, must in their turn not do a direct acceptance business may at the only have established extensive contacts with same time buy and sell acceptances of others in many types of investors, but they should also addition to handling their own obligations, but be able at all times to secure sufficient funds the term " dealer " has in general been restricted at rates low enough to make it possible for to those who "deal in" the acceptances of them to carry large and well diversified portothers. One reporting dealer, however, who folios at a moderate profit. The margin of has the privilege of accepting bills, has at times profit secured by the dealer from the differexercised that privilege to a considerable ex- ence between his bid and offer prices is, in a tent. Another dealer who also has the right to well-developed market, more than compenaccept does not make use of it. sated for, from the point of view of the seller, by the advantage that comes from instantane- FUNCTION OF THE DEALER. ous sale. By securing acceptances from vari- The function performed by dealers as inter- ous sources, dealers are also in a position to mediaries between accepting banks and houses facilitate sales by the variety of their offerings on the one hand and investing banks and the as regards names, maturities, denominations, public on the other is quite evident. In the and other factors. And, being specialists, the Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

OCTOBER, 1921. FEDERAL RESERVE BULLETIN. 1167 dealers are, as already indicated, in a position desire was expressed by a number of the New to arrive at the true open-market appraisal of York dealers to encourage the presentation of the bills that pass through their hands. If bills directly by drawers or indorsers. It is one fails to do so, the competition of other evident that this preference lends support to dealers will force conformity. The result is the statement set forth above, namely, that the establishment of more equitable rates and the less the reliance placed by the drawer upon a broader and more fluid market, which again the accepting institution in disposing of his encourages and, indeed, is an indispensable bill the more sharply defined becomes the preliminary to a further extension of a prop- fundamental character of the acceptance as a erly conceived acceptance business. loan of credit and not a loan of funds by the accepting bank. Naturally, in the slow up- NUMBER OF DEALERS FURNISHING DATA. building of a new institution, the theoretically most desirable processes are not always imme- The information which follows is based upon diately capable of adoption; and so it is in the reports received from dealers operating in New present instance, as dealers who expressed a York, Boston, and Chicago. Of the six re- preference for receiving bills from the drawer porting dealers doing business in New York, or indorser nevertheless obtained not much two have their main offices in Boston. The more than a quarter of their holdings from Boston offices also made reports concerning the those two sources. extent of their dealings in that market, while all other returns from Boston and from Chicago PURCHASES OF BOSTON DEALERS. came either from branches or from correspondents of three of the six dealers mentioned. The returns from three of the four reporting Boston dealers gave estimates of the average PURCHASES OF NEW YORK DEALERS—AMOUNT amounts of the portfolios carried during the AND SOURCES FROM WHICH OBTAINED. year ending June 30, 1921. The sum of the averages so reported amounted to approxi- In order to obtain an idea of the magnitude mately $5,000,000, but as the returns for the of dealers' operations in the several markets Boston market do not include all the local and the relative amounts purchased from vari- dealers, their significance is found chiefly in ous classes of holders, dealers were asked to connection with statements of the sources state the average amounts of the portfolios from which these bills were obtained and the carried during the year ending June 30, 1921, way in. which they were distributed among and the per cent of the total purchases ob- investors. Over 90 per cent of the acceptances tained from drawers, from acceptors, from bought by three dealers were obtained from indorsers, and from all other sources. In New the acceptors. The combined percentages, York the sum of the average amounts of the weighted according to the size of the average portfolios carried by six reporting dealers dur- portfolios, were 93.3 per cent for purchases ing the period in question was approximately from acceptors; 5.7 per cent from drawers; $54,000,000, and, considering the rapid turn- none from indorsers; and 1 per cent from other over, it is evident that these dealers did a large sources. A fourth dealer, who did not give volume of business in the course of the year. actual percentages, stated that the largest As a matter of fact, business done by nonre- supply of bills came directly from accepting porting dealers in the New York market was banks and that direct purchases were made so insignificant that the returns as given are from only a few drawers. practically inclusive. The greater part of the acceptances purchased by the six New York deal- PURCHASES OF CHICAGO DEALERS. ers came directly from accepting banks and, with one exception, were around 50 per cent or more The average size of the portfolios carried by of total purchases. The average amount of all three reporting dealers in Chicago can not be purchases obtained from acceptors was 50.5 exactly determined, but the sum of the averper cent (average weighted according to the ages was probably between $3,000,000 and size of the average portfolio); from indorsers, $4,000,000 during the year ending June 30, 16.3 percent; and from all other sources,33.2 1921. No attempt has been made to average per cent. Four of the six dealers who reported returns showing the percentages of total purseparately purchases obtained from drawers chases obtained from various classes of holders, showed the following distribution: From ac- as the percentages showed such a wide spread ceptors, 48.6 per cent; from indorsers, 14.8 that averages would be misleading. The per cent; from drawers, 11.5 per cent; and major portion of Mie bills dealt in, however, from all other sources, 25.1 per cent. A came from acceptors. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1168 FEDERAL RESERVE BULLETIN. OCTOBER, 1921. LOCATION OF ACCEPTING BANKS. form of several bills, only one bill will, as a rule, be drawn for the odd amount. But in the case In all three cities the acceptances dealt in of import bills, especially, odd amounts are were in large part those of local institutions, frequent, and the sums involved are often less but in the Boston and Chicago market they than '$5,000. One dealer states, however, that were in general obtained from a more re- his actual range during the past year was from stricted area than in the case of New York. $10 to $800,000. Although the acceptances of New York institutions constituted at least 70 per cent or SALES DISTRIBUTION, BY CLASSES OF INVESTORS. more of the purchases of at least three New York dealers for the year ending June 30, With a view to determining the relative 1921, the New York houses nevertheless obtain importance of the various groups of investors bills over a wide area, and some of the reporting to whom sales of acceptances were made during dealers make purchases in other large centers the past year, questions were put concerning through the medium of branches or corre- the percentages of total sales, exclusive of spondents. Out-of-town business is generally sales to Federal Reserve Banks, made to savsecured largely by means of the telegraph and ings banks, to other banks, and to corporate telephone, and its origin no doubt depends and private investors. Inquiry was also made chiefly upon established connections made concerning the territorial distribution of the through other types of activity in the com- sales effected. The distribution of acceptances mercial paper and securities markets. Locally, among the several classes of investors showed representatives of the dealers call daily on great variation from dealer to dealer, making designated banks to find out what bills are for average percentages misleading in some insale. Purchases are made outright as a rule, stances. For the six New York dealers sales to and only in a very limited number of instances, banks other than savings banks averaged over and then infrequently, do some dealers act as 60 per cent of total sales for the year ending brokers in the purchase and sale of acceptances. June 30, 1921. The sales to private individ- In the Boston market over 90 per cent of the uals and corporate investors ranged from less acceptances dealt in by the reporting houses than 10 per cent to over 15 per cent, while the were those of banks located in that city, while distribution to savings banks was highly the rest were acceptances coming chiefly from irregular, varying from less than 5 per cent to banks in the larger cities of New England, a maximum of 50 per cent. • The figures showalthough the market also absorbed some New ing distribution of the sales of reporting Bos- York, Chicago, and western bills. The ton dealers, if given in the form of averages, methods of getting into touch with local banks are not typical, as one firm disposed of much and outside interests are the same as in New the greater part of the acceptances handled to York. A similar situation is found in Chicago, savings banks, with few sales to other banks, where the major part of the acceptances dealt whereas in the other three cases the practice was in originated with Chicago banks. the reverse. Sales to corporations and private individuals were also variable, but for three ARRANGING ACCEPTANCE CREDITS. dealers the average was about 15 per cent. The information obtained from Chicago con- Practice differs among dealers in the matter cerning sales distribution was not available in of making arrangements whereby individuals sufficient detail to afford comparable statistics desiring to obtain credit in the form of acceptances can be put in touch with banks that will accept for them. Some houses prefer not to SALES DISTRIBUTION ACCORDING TO LOCATION. undertake to make these connections, believing The data given above show that the chief that discussion should be held directly with reliance of the dealers in seeking a market for the banks and that intervention may put them acceptances has so far been the banks. The under obligations to market the bills drawn. location of such purchasing banks is a matter Others are ready to perform this service reguof interest, and questions were accordingly larly and systematically. asked concerning the territorial extent of sales distribution. In the case of New York dealers, DENOMINATIONS OF BILLS. it appeared that about 50 per cent of the sales Bills are very commonly drawn for sums to banks during the past year were made in ranging from $5,000 to $25,000, and $50,000 New York City or vicinity. The outside disdenominations are not unusual. When an tribution is widely scattered, but acceptances acceptance credit is so large that it becomes are chiefly lodged with the banks in the larger desirable for purposes of sale to offer it in the cities. One dealerisays that his firm has dis- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

OCTOBBB, 1921. FEDERAL, RESERVE BULLETIN. 1169 tributed bills in 38 States and more than 400 ents in nine large cities located in eight Federal cities. Most of the regular dealers are also Reserve districts, buys and sells prime bills engaged either in selling commercial paper or through these correspondents. It should be in handling stocks and bonds, or else they follow remembered, however, that the New York both lines of activity. Hence they are in a banks which purchase acceptances frequently position to utilize the existing selling organi- do so for correspondents scattered over a wide zations and to place acceptances through their area. Otherwise, as stated, the outside distribranches or through correspondents. In New bution is largely governed by the location of York City special salesmen are sometimes em- branches, affiliations, etc., of the respective ployed, and in all cases daily visits by firm dealers. The majority of dealers state that representatives are made to banks and other they do not indorse the acceptances that they institutions who may be possible purchasers sell, although one house has indorsed a very of acceptances. One dealer has a special local limited amount but only "for a consideration.77 selling organization, consisting of a manager of the acceptance department and six sales- BORROWED FUNDS—AMOUNT AND TERMS ON men in New York City, to cover all classes WHICH OBTAINED—NEW YORK DEALERS. of investors in bills, i. e., national banks, trust companies, savings banks, insurance com- A question concerning the average amount of panies, other corporations and firms. The borrowed funds used in carrying acceptances private investors are taken care of by the priduring the year ending June 30, 1921, brought vate investors' department. Sales of reportout the fact that in the New York market three ing Boston dealers were largely confined to reporting dealers borrowed all funds so em- Boston and New England, but were widely disployed. This is possible because of the fact tributed within that territory. One house, for that such dealers have established banking example, stated that it had covered 150 New relationships and obtain the necessary advances England cities and towns as well as a number in connection with other lines of business. of middle western and western cities. The Only one large dealer, whose principal business sales of reporting Chicago dealers were largely consists of buying and selling acceptances, has a confined to the Seventh Federal Reserve Dissubstantial capital devoted directly to the trict and were chiefly made to the smaller purchase of acceptances and constituting a conbanks in the country. siderable percentage of the funds employed. For all six reporting New York dealers the METHODS EMPLOYED IN SELLING OUTSIDE C#TY. percentage of borrowed funds on the average to the average size of the portfolios carried was General and very extensive reliance is placed 84 per cent. Borrgwed funds are almost upon circularization for effecting sales to outwithout exception obtained on call, although side interests, supplemented by the use of the in two instances it was stated that a negligible telegraph and telephone. The daily offering amount of time money had been occasionally sheets, sent out as a rule to the number of 500 used. The rates for time money, as a matter of copies or more to the principal banks and a few fact, have not been low enough to enable it corporations and individuals, are an important to be used in making purchases without a loss, means of securing orders, especially from outor at least on the few occasions when it has side the city. In the majority of cases no use been available the call rate has been even is made of traveling representatives in furthermore favorable. In any case, the uncertainty ing the sale of acceptances except in connecin regard to the ability to utilize funds contion with the transaction of other business. tinuously makes it usually undesirable to However, the Boston office of one dealer has borrow for fixed periods. The aim is to borthree traveling salesmen who devote the major row just enough from day to day to take care part of their efforts to the promotion of the of the daily purchases and to dispose of the acceptance business, while in the New York bills so bought immediately. It is striking office of the same house three men spend part that one deafer alleges that the average yield of their time visiting out-of-town banks. Anof his portfolio did not exceed the cost of carryother dealer, with a large number of branch ing in the case of prime bills, while the yield offices throughout the United States, reports exceeded cost by as much as 1 per cent or that although the salesmen are primarily intermore on nonprime bills. In another case the ested in the distribution of long-term securiaverage yield did not exceed the average cost, ties, they also carry acceptances regularly and and in three other instances the average yield transmit orders to their respective offices, from exceeded the average cost by from one-eighth which such orders are forwarded to one of the to one-half per cent. The weighted average four large cities in which acceptance portfolios (i. e. weighted according to the size of the are carried. A third dealer, with correspond- ; Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1170 FEDERAL RESERVE BULLETIN. OCTOBER, 1921. average portfolios) gave the average yield for what they will bring, and their loss, if loss it five reporting dealers as 6.2 per cent; the be, on the capital investment merely involves a weighted average (weighted according to aver- foregoing of what might have been secured in age amounts borrowed) gave the average cost alternative forms. But as few dealers have of the loans as 5.9 per cent. much capital directly invested in the business, and as they employ call-loan funds almost ex- BORROWED FUNDS—BOSTON AND CHICAGO clusively, rapid conversion is at times essential. DEALERS. When the investment demand is not adequate to absorb the offerings, the market is supported For three Boston dealers furnishing informa- by those Federal Reserve Banks which are tion in regard to amount and cost of borrowed ready to buy acceptances from dealers under funds, the proportion of average total borrow- repurchase agreements limited to 15 days. ings to the summed-up total of their average Except for funds so made available by Federal portfolios was 92.6 per cent for the year end- Reserve Banks, loans are obtained by the reing June 30, 1921, and the average yield of porting dealers very largely from local banks. these portfolios was just equal to the average In view of the existing situation, it is evident cost of borrowed funds. Call loans were, with why preferential rates are granted to dealers occasional minor exceptions, exclusively em- by certain banks anxious to build up the acployed. Although returns from Chicago were ceptance market by providing it with a steady incomplete, two reports showed that port- flow of funds at rates that enable the proceeds folios were carried entirely through the use of to be used in buying bills. borrowed funds. In one case the average yield was just equal to the average cost of the CONCLUSION. borrowed funds. In the other case the average yield was not given, but as the average A broadening and stabilizing of the dealers' cost of borrowed funds was slightly higher than market is highly desirable for reasons already in the first instance, it probably was at least set forth. The expansion need not be limited equal to the average yield. by the rate of growth of acceptance business in general, but should proceed at a faster pace SIGNIFICANCE OF NARROW MARGINS BETWEEN as it becomes more generally recognized that AVERAGE YIELD AND AVERAGE COST. dealers have a function to perform that is vital to the upbuilding of a broad and de- It would appear from the data given above pendable open market. Dealers will, howthat the operations of reporting dealers in ever, only be able to expand their purchases Boston and Chicago were not carried on upon and thereby offer a ready outlet for accepa basis to yield a profit directly. Indirectly, tances in proportion as they can feel assured however, there may be a certain amount of of being able to control adequate supplies interchange between branches of the same of credit at rates that yield a necessary profit. firm or between correspondents, which in the Moreover, an increase in the scale of their long run may be worth while, even though it operations implies an expansion of the investbrings no addition to the net earnings of the ment demand which they satisfy. It is outside dealer. Even in New York City the evident that there exists a large opportunity margin between average yield and average cost for the development of such an investment was narrow and in one case nonexistent. It demand, especially among corporations and is obvious, therefore, that a very slight change private individuals, as so far dealers' sales in rates may bring losses to the dealer, and if, have been principally confined to banks. when the demand for bills is light, he is carrying a heavy portfolio on money borrowed at rates higher than the average yield on his bills, his continuous daily loss may easily become so THE APPLICATION FOR LETTERS OF large as to force him to liquidate his bills at CREDIT. whatever they will bring and retire from the business. In any case a rapid turnover is es- In the previous articles dealing with letters sential if borrowed funds are to be used profit- of credit, reference has at times been made ably. To the extent that dealers are employ- to the application. This ancillary document ing their own capital in the direct purchase of is essential in the issuing of commercial credits acceptances, their ability to hold these accept- and so is of interest to both banker and merances under unfavorable conditions of the chant, since it forms the basis for the contracmoney market is obviously strengthened. tual relations between these two parties. The They can at least carry their purchases for present study will describe its use and set forth Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

OCTOBER, 1&21. BESEItVE BULLETIN. 1171 a comparative analysis of the various expres- an inland bank which has no foreign departsions found in the applications issued by ment of its own, and so transmits the request of American banks. Eighty-five different sets its customer to a metropolitan bank with faciliof forms were examined, and, as in the case ties for issuing foreign credits. (See answers to of the letter of credit, little uniformity was question 5, FEDERAL RESERVE BULLETIN, Febfound in the content of the applications of ruary, 1921, p. 165.) American banks. Since the publication of the As an illustration of an application for a article in the FEDERAL RESERVE BULLETIN letter of credit, the following form is presented: of February, 1921, pages 158-171, which Date reviewed the leading cases on commercial credits, British and American courts have rendered decisions bearing directly upon the cablel terms of the application for a letter of credit and DEAR SIRS: < ^ thereby request you to open by li the credit itself, and these opinions will be cited an irrevocable letter of credit upon the following terms in this survey. and conditions: An applicant for a letter of credit may trans- For account of in favor of mit his request to the bank by telephone, tele- (applicant requesting credit) up to an aggregate amount of graph, or letter. The bank which has been (foreign shippers) asked to issue the credit usually insists that the available by drafts at (amount in words) importer submit his requisition in a formal (sightldrawn on document, known as an application for1 a 1 date J (name of bank and city) letter of credit. This instrument has several Accompanied by the following documents: uses. It supplies the bank with information Cross out documents not required. for analyzing the nature of the transaction. Full set of negotiable ocean bills of lading made out to the order of bank. Since the application for a letter of credit is Commercial invoice. the same in nature as the request for a loan, Consular invoice. the bank must understand fully the extent of Marine insurance policy or certificate. the risk which it is asked to assume. It is War risk insurance policy or certificate. Certificate of also essential to know the tenor of the drafts Certificate of .., and the nature of the import, for these condi- purporting to evidence and cover shipm ; en 4 t fro 1 m ... tions will affect materially the eligibility and therefore the marketability of the bills created invoice cost ef fc. i. f. \ (name of commodity) \f, o. b.J (place) by the shipment of the goods. If the terms Bills of lading to be dated not later than of the credit are approved by the officers of , and unless specifically stated otherwise herein, the bank, the application then serves a third bills of lading in the form of "received for shipment" purpose in furnishing the facts necessary for may be accepted. filling out the letter of credit. In this con- {^™f |insurance to be effected hy[™e}under blangk nection it is well to note that the issuing bank ket policy No issued by considers only the data presented in the (shipper) application for a letter of credit and does not nvu • A • + • [to be confirmed 1 bv , regard itself bound by the more detailed terms J his credit is| \ * (name of foreign bank) not tQ be COIlfirmed stated in the contract of sale between buyer Unless mentioned to the contrary, it is understood that part shipments may be made under this credit. Furtherand seller. (See Maitland v. Chartered Mermore, unless stated herein to the contrary, in case shipcantile Bank of India, London and China ments are to be made in stated periods, you are expressly (38 Law Journal, 363); Oriental Banking authorized, in the event of the failure to ship m any Corporation v. Tippert & Co., (Buchanan's designated period, to accept drafts drawn under said credit for shipments made in any period or periods sub- Reports, South Africa, p. 152); Frey & Son sequent to the period in which payment or shipments shall v. Sherburne Co. and National City Bank not have been made. (184 N. Y. Supp., 661); American Steel Co. Remarks: v. Irving National Bank, 266 Fed., 41). In one jjy jhereby agree to sign on demand, and deliver to way, the interest of the importer is safeguarded you. an obligation for such credit, in the form now used by you, tjie provisions of which are agreed to as defining by a formal application, as this document presents definitely the conditions which the bank your rights andjj^^lloobblliiggaattiions. must observe in issuing the credit and in paying the drafts drawn by the exporter. An application for a letter of credit may be This form has been suggested by the comaddressed directly to the bank by one of its mittee on uniform credit instruments appointown customers, or it may be presented in- ed by the Bankers7 Commercial Credit Condirectly by a correspondent bank acting in ference of New York. The application conbehalf of its clients. This institution is usually tains all the necessary provisions and will serve Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1172 FEDERAL RESERVE BULLETIN. OCTOBER, 1921. as a basis for discussion iiTthe present article. 2. Description of drafts.—After stating the From this instrument it is seen that an appli- request for the letter of credit, the application cation contains the following elements: (1) Re- then indicates the number, amount, and tenor quest for letter of credit; (2) description of of the drafts to be drawn by the accreditee. drafts; (3) description of documents; (4) de- In the form above, the amount is so described scription of shipment; (5) description of mer- as to permit the beneficiary to receive paychandise; (6) statement of expiration date. ment by drawing either one draft, or even 1. Bequest for letter ofcredit.—The essential several bills if he so desires. It is quite necesfeature of any application is the address in sary to allow the exporter this choice, for he which the importer asks the bank to issue a may find it difficult to forward his goods credit. In the above form, the importer re- entirely in one consignment but instead he quests the bank to open an irrevocable letter must effect partial shipments. The amount of credit. An analysis of other applications to which the exporter may draw his drafts is indicates an extensive use of the word "issue." usually specified as a stated amount of dollars A distinction may be drawn between "open" or foreign money. When such terms as and "issue," in that the former by implication "about" or "approximately" are used in rewould permit the notifying of the credit to the ferring to the amount of the drafts, the acbeneficiary through a second bank, while the creditee is allowed a margin of 10 per cent latter would limit the bank to the transmitting above this sum in drawing his bills. The of its own obligation to the recipient of the tenor of the drafts will depend upon whether credit. The same difference is found in the the beneficiary is receiving a cash or an acceptapplications which request banks to establish ance credit, and so the drafts will be made "a credit" or to furnish "your credit." As either at sight or for such periods of time as indicated above, a credit may be opened by 3 and 6 months. To a large extent the tenor cable or by mail. If by cable, the communica- of the draft is limited to 90 days, so as to render tion is usually forwarded to the beneficiary the bill eligible for rediscount with the Federal through a correspondent bank which possesses Reserve Banks. The extent of the credit is the correct test words. When credit letters are not always expressed in terms of money, but sent by mail they are generally given by the issu- may also be limited by the quantity of goods. ing bank to the importer, who in turn sends them For example, an application may request the to the recipient. A considerable variation is bank to issue a credit which permits the also found in the description of the credit which beneficiary to draw his drafts covering shipthe bank is requested to open. In the above ment of a certain number of tons of a comform the bank is instructed to open an "irrevo- modity. cable" letter of credit. 3. Description of documents.—This part of In some other forms of application the bank the application is defined with utmost care. is requested to open simply a "credit." This The shipping documents constitute the main expression is quite indefinite and therefore un- assurance of reimbursement to a bank in satisfactory, for it does not furnish the bank financing foreign trade. The most important with sufficient data in that it leaves uncertain shipping document is the bill of lading. It may the nature of the credit desired by the importer. be classified according to negotiability or to The term " documentary" appears in a number carrier. In the first place, straight bills are of forms, but this expression is unnecessary, consigned to a definite party, and so are nonsince commercial credits provide for the pay- negotiable, while order bills are negotiable, for ment of drafts only if accompanied by shipping they may be freely indorsed by the holder. documents. According to carrier, bills of lading may be The application forms show considerable classified as follows: (1) Railroad, when transconfusion in the use of the terms "irrevocable" ported by an inland railway; (2) ocean, when and "confirmed." A distinction between these carried by a vessel; (3) through, when shipped two terms is recognized in the above form by both by rail and steamer or on different navithe clause which permits the importer to in- gation lines. The nonnegotiable or straight dicate whether he wishes the credit to be bill of lading is made payable in the name of further confirmed. When a credit is con- the consignee. Railroad bills of lading seldom firmed it is so notified to the beneficiary •appear in foreign trade, since ocean bills are through the agency of a second bank. In this generally required.. As Chicago, St. Louis, and form the importer may specify the bank which other inland cities are gradually entering the is to confirm, the credit, but as a rule this field of financing foreign trade, through shipselection is left to the bank issuing the credit. ment bills of lading are now being regarded as This institution must then exercise due care in acceptable documents. choosing a solvent bank for confirming the It is also necessary for a bill of lading to be credit. 'clean" or free from any notations which Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

OCTOBER, 1921. FEDERAL RESERVE BULLETIN. 1173 qualify or limit the responsibility of the carriers. received by the ship.77 The court thereupon Steamship companies often make a practice of drew a distinction between a receipt for goods stamping upon bills of lading expressions which actually shipped on board a particular vessel qualify the condition of the merchandise which and a receipt for goods which at some future they are carrying. For example, these nota- time are to be shipped on board either a partictions have reference to the rusting of metals, ular vessel or an unnamed vessel which will the leakage of barrels, or the breakage of boxes. sail at a later date. The court therefore re- Banks are naturally unwilling to negotiate fused to recognize this document as a true bill drafts accompanied by bills of lading contain- of lading, but as a "mere receipt for goods ing these qualifying expressions. which at some future time and by some un- During the past year widespread considera- certain vessel are to be shipped.77 It is theretion has been given to the question whether a fore highly essential that American banking bill of lading offers assurance of the actual place- and commercial interests shall arrive upon a ment of the goods on board a vessel. This settled definition of the term "shipment77 and controversy arises from the lack of a clear legal agree upon the acceptance of a received-forconception of the term " shipment.77 American shipment bill of lading. courts have given different interpretations to The application also furnishes the necessary this expression. In the case of Mora y Ledon details regarding insurance. In addition to v. Havemeyer (121 New York, 179), shipment marine insurance, letters of credit and therewas defined as actual delivery on board a vessel, fore applications, still require the carrying of while Goldenberg v. Cutler (189 Appellate mine-risk policies as a safeguard against loss Division, 489), held that shipment merely im- from floating mines. The applicant for a plied the surrender of goods to the carrier. The credit must specify whether the insurance is to latter view has found favor among American be taken out by the shipper or by another party. business men and as a result "received for Application forms seldom refer to the name and shipment7' or "received for transportation77 place of the insurer or the amount of the policy. bills of lading have been generally recognized This matter is usually covered by the contract as acceptable documents. This view finds between the importer and the issuing bank, support in Marlborough Hill v. Cowan (Law which states that the insurance companies Reports, Appeal Cases, 1921, vol. 1, pp. 444- must be satisfactory to the bank and that the 457.) In this case the court drew no distinc- amount shall be adequate. tion between a bill of lading which described the Applications for letters of credit and likewise goods either as " shipped on board77 or " received the letters themselves have drawn, no distincfor shipment.77 On this point the decision tion between, the insurance policy and the states that " there can be no difference in prin- insurance certificate. It has been common ciple between the source, master or agent practice for insurance companies to grant open acknowledging that he has received the goods policies which permit the issuing of certificates on his whan or allotted portion of quai, or his in the place of the original policies. Justice storehouse awaiting shipment, and his acknow- Bailhache, in Wilson Holgate & Co., 1920, 2 ledging that the goods have been put over the King's Bench Division, makes the following ship's rail." statement: "It must be borne in mind that in This opinion was controverted by the King7s dealing with certificates of insurance I am not Bench Division in July, 1921, in the case of the referring to American certificates of insurance, Diamond Alkali Export Corporation v. Bour- which stand on a different footing and are geois. The litigation arose over the refusal of equivalent to policies being accepted in this the importers to pay drafts accompanied by a country as policies.77 However, Justice Mcbill of lading which stated that the goods had Cardie, in the case of the Diamond Alkali been received " to be transported by the steam- Export Co. v. Bourgeois, regards a certificate ship Anglia * * * or failing shipment by of insurance as an unacceptable document. said steamer in and upon a following steamer.77 The court, claims that the certificate does not This expression is in common use in exporting contain the terms of the insurance which are to goods from American ports. Nevertheless, the be found only in the original policy, and therefore King's Bench Court refused to recognize this it is impossible to learn Irom the certificate document as a true bill of lading. In its decision whether the policy has been issued in the the court referred to Scrutton and Mackinnon recognized and usual form. The court thereon Charterparties, where a bill of lading is fore held that the certificate is not a policy and defined as " a receipt of goods shipped on board regards it "as an ambiguous thing; unclassia ship, signed by the person who contracts to fied and undefined by law.77 The case of carry them or his agent, and stating the terms Diamond Alkali Export Corporation v. Bouron which the goods were delivered to and geois expresses views on, the bill of lading and Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1174 FEDERAL RESERVE BULLETIN. OCTOBER, 1921 marine insurance certificate which are quite 6. Date of expiration.—The applications used contrary to the opinions long accepted by legal in this study express the expiration date of thought and commercial usage. This fact is the letter of credit in the following way: (1) fully appreciated by the presiding judge, who Date of draft; (2) date of shipment; (3) date of closes his decision with the following remarks: bill of lading; (4) date of credit. "It may well be that this decision is disturbing These terms need not be further analyzed, to business men. It is my duty, however, to as they have already been studied in a prestate my view of the law without regard to vious article. (See FEDERAL RESERVE BULLEmere questions of convenience." TIN, April, 1921, p. 412.) These expressions In addition to the bill of lading and marine have reference to irrevocable letters of credit insurance policy or certificate, the application rather than revocable, forms which are subalso requires the importer to describe the other ject to immediate cancellation. In connection documents in the commercial set. This in- with this subject it may be interesting to cludes the commercial and consular invoices, note that a recent British decision in "Cape and minor documents, such as certificates of Asbestos Co. v. Lloyd's Bank" upheld the right inspection, weight, health, and customhouse of a bank to cancel an unconfirmed, revocable declarations. letter of credit any time even without notice 4. Description of shipment.—Most applica- to the beneficiary. tions call for both the place of origin and From the above review it is evident that destination of the shipment in, the expres- there is a lack of agreement between the legal sion "from to ." The port of conception and business practice regarding origin, is an essential factor in such commodi- commercial credits in foreign trade. These ties as coffee or spices, for it may determine the differences can be reconciled by a clearer definiquality of the goods. On, the other hand, the tion of the terms used in financing foreign trade insertion of this condition in a letter of credit and the acceptance of standard forms for the may at times impede negotiation of the drafts. application, contract, and the various types of For example, owing to a port strike or embargo letters of credit themselves. order, the exporter may be unable to secure cargo space from the port mentioned in the TOBACCO FINANCE. credit and may therefore find it necessary to ship his goods from a second point. Banks The following is the second of a series of would probably be reluctant to negotiate the articles describing the financing methods which exporter's drafts, because the conditions of the are employed in the tobacco industry. The credit had not been observed in this particular. first article appeared in the September, 1921, (See Brazilian & Portuguese Bank (Ltd.) v. issue. Data were obtained partly through the British & American Exchange Banking Corpocooperation of the Federal Reserve Agent, in ration (18 Law Times, p. 823); also FEDERAL the various districts, and partly direct from RESERVE BULLETIN, February, 1921, p. 161.) banks and persons interested in the industry The applicant is sometimes required to indiin various capacities, as well as from other cate the route over which goods are to be Government organizations. To all of them shipped in order to allow him some control acknowledgment is due. over the time of the shipment and the freight rate. II. FINANCING THE GROWER—CIGAR TYPE 5. Description of merchandise.—Applications DISTRICTS. usually make only brief mention of the merchandise, for it is against the interest of the The financing of the grower in the cigar type bank issuing the credit to overload it with a districts differs in important respects from that detailed description of the imports. A number found in the manufactured and export type of applications permit the importer to describe districts. Each will accordingly be treated in such details concerning the goods, as quantity, turn and considered as a unit. Consideration quality, packing, marks, and numbers. In of the operations of the large grower-dealer interpreting these conditions, the banks are corporations of the Connecticut Valley will, given wide latitude and they are permitted to however, be postponed until the general refuse payment of drafts if the documents are subject of dealing in leaf tobacco is discussed. not in strict conformity with the terms of the credit. This principle has recently been up- A. ACCOMMODATION TO THE GROWER. held in the case of the International Banking The financial needs of the grower differ Corporation v. Irving National Bank, cited in greatly as between the several districts. the United States District Court, Southern Fertilizer bills are large in the Connecticut District of New York, on May 10, 1921. Valley, but are comparatively small in Penn- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

OCTOBER, 1921. FEDERAL, RESERVE BULLETIN. 1175 sylvania, Ohio, and Wisconsin. Where diver- ago in Pennsylvania, however, sales on crop sified farming is practiced, as in Ohio and time were frequent. In the case of such sales Wisconsin, the outlay for commercial fertilizer the grower seldom gives either his note, or is much less than in the Connecticut Valley, security such as crop lien or chattel mortgage, where the one-crop system is practiced year although from Pennsylvania the use of a bill of after year and large quantities of commercial sale at times is reported. Likewise, it is quite fertilizer are needed. In Pennsylvania large generally the practice for the local store in numbers of cattle are fed and manure is used these districts to have only one price for both to a certain extent instead of commercial time and cash payments. Such differences as fertilizer. In the Connecticut Valley, also, are reported in the Connecticut Valley and hail insurance is used by the growers of the Pennsylvania are from 5 to 10 per cent, or a sun-grown types, namely Havana seed and small discount for cash. broadleaf, and fire insurance by the large In the Connecticut Valley, Pennsylvania, growers of shade-grown tobacco and by grow- and Wisconsin the store in turn obtains such ers of both classes after the tobacco is placed accommodation as it requires from the local in the sheds. In that district alone insurance bank rather than from wholesalers through purprovides a considerable item of expense. Hail chases on time. There is no regular practice and fire insurance are said, e. g., to be bought on the part of wholesalers of carrying local in Wisconsin "at a very nominal figure.7' stores, and short terms, such as 30 days, are As a general rule the growers in Ohio and usually specified. The note given the bank Wisconsin are well to do and need very little may be secured by indorsement, or by collatfinancial assistance. In the Miami Valley, eral in the form of stocks and bonds, Liberty however, states one authority, owners of small bonds, or insurance policies. Several Pennfarms where tobacco is practically the only sylvania banks located at smaller points state cash crop produced, generally need more or that some growers7 notes are discounted. less financial assistance to carry them from one It is the general custom for the grower to crop to the next, and likewise with tenant borrow funds from the local bank to pay the farmers and croppers who reside in the village. store bill rather than to ask the local store to In Pennsylvania more help is needed, but less carry him. While the amount of credit than is required in the Connecticut Valley. granted the growers in Ohio and Wisconsin A banker in York County, Pa., comments that and to a lesser extent in Pennsylvania is small " farmers in this section are small borrowers and often insignificant, so that it results in no for any of their needs. This, we think, is strain whatever on the local banks, it is true evidenced by the large amounts deposited in that the greater part of the credit extended is our county banks on certificate of deposit." advanced by the local banks. In the Con- The grower in the cigar-type districts secures necticut Valley, on the other hand, they play his accommodation from one of three principal an important role in furnishing funds to the sources—the bank, the fertilizer dealer, and, in growers. Many growers in that district, howthe Connecticut Valley and Wisconsin, the leaf ever, find it possible to do without help from tobacco dealer. The landowner in some cases the banks until harvest time. One Pennadvances funds or indorses for the tenant, who sylvania grower states that if a grower "can then discounts the note at the local bank. not sell by April 1, which is 'our settling day' The store plays a minor role as a source of in Lancaster County, he sometimes borrows funds in all the northern cigar-type districts. money from his bank." The principal finan- No local stores in these districts specialize in ing in Wisconsin, it is reported, is necessary time business. It is reported that in Pennsyl- where the grower is unable to sell his crop bevania from 75 to 90 per cent of the growers pay fore spring. The banks there ordinarily will cash at the local store for all the goods. These advance a sum equivalent to one-half of what accounts are frequently settled on a monthly they consider the value of the crop, usually basis. Sometimes tenants and croppers in upon mortgage or upon presentation of a ware- Ohio are assisted by the owner of the farm, and house receipt where packed by local cooperathey are stated in many cases to pay their tive concerns. bills but once a year. In that State and Wis- The grower in the Connecticut Valley, consin, however, the business on the whole is Pennsylvania, and Wisconsin is not generally done very largely on a cash basis. The same granted a line of credit by his local bank, but is true of the Connecticut Valley, although in borrows from time to time as his needs require. that section certain stores show a larger pro- The smaller growers usually are granted these portion of time business. Prior to about 15 loans in amounts ranging from $25 or $100 to years ago in that section and to about 5 years $1,000 or larger. The loan is usually made on Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1176 RE&EttVE BULLETIN. OCTOBER, 1921. a straight note on four to six months' time, large towns and cities agricultural warehouses which is often indorsed by the grower's wife or and grain dealers handle fertilizer as a side line. neighbor. At times mortgages on farms or It is the general practice for manufacturers growing crops may be given, but this is not the and dealers to sell to growers on December 1 prevailing practice. Other instances of col- terms, with 5 per cent cash discount for paylateral reported in the Connecticut Valley are ment on July 1, 4 per cent August 1, 3 per cent savings accounts or Liberty bonds. The use September 1, etc. The July 1 payment may of the latter, as well as stocks, was also re- be anticipated at the rate of one-half per cent ported in Ohio. The growers in the Connect- per month. Sales are largely on open account, icut Valley usually begin their heaviest bor- though notes are also taken. Sometimes, howrowing in August and this continues through ever, the grower may buy on a cash basis but September or until the harvesting season ends. give an interest-bearing note for the time to be Applications by growers for loans at banks taken. Considerable care is exercised by then fall off rapidly, though the amount out- manufacturers before granting these terms. standing does not decrease materially until Since it cost from $50 to $150 an acre, averag- January or February, when the grower com- ing about $100, for fertilizer last year, the mences to deliver his crop and receives funds amount of credit thus granted to growers is with which he settles bank obligations. Farm- very large in the aggregate. It has been estiers' obligations as a general rule should reach a mated by one authority that only one-fourth low point by April 1. In the other cigar-type to one-third of the fertilizer sold in the Valley districts liquidation likewise occurs during the is for cash on delivery, while another places first quarter of the year, when the crop is the figure at one-half, and states that the cash marketed. business is largely in nonmixed fertilizer. It is It is stated from Pennsylvania that formerly not customary for the growers to borrow from dealers deposited funds in a local bank to cover the local banks to pay for fertilizer, but rather purchases and drew against this deposit, but to buy it on time and wait until the crop is the practice has been generally discontinued sold and delivered before paying for it. Local and farmers are now given checks on Lancaster agents transfer to the dealers or manufacturers banks, in which center most of the dealers are the accounts or the notes which they have located. received from the growers. Dealers are sup- Due to the small bank borrowing on the ported by local banks, receiving credit largely part of farmers in general in the cigar-type on their unsecured notes. districts, as well as to the diversified type of In Pennsylvania 75 per cent or more of the agriculture and the fact that tobacco raising fertilizer is apparently sold through dealers. (except in the Connecticut Valley) is subordi- Terms reported differ somewhat, being either nate on the individual farm to other activities, 5 per cent for payment July 1, as in the Conlittle strain is placed upon the banks in con- necticut Valley, or net July 1 for spring shipnection with the financing of the tobacco crop. ments and net December 1 for fall shipments. They are therefore not under the necessity of Not over 50 per cent of the growers pay the rediscounting paper with or borrowing directly dealers cash, while from 10 to 20 per cent of from other banks at certain seasons of the the dealers pay the manufacturers cash. One year in order to finance the crop, as is con- manufacturer observes that July 1 terms are spicuously the case in the manufactured and equivalent on the average to 90-day terms. export-type districts. The nearest approach Manufacturers do not take growers' notes inis in the Connecticut Valley. dorsed by dealers. In Ohio such fertilizer as is not handled by the farm bureau or grange, B. THE FERTILIZER MANUFACTURER AND which is bought by the farmer on a cash basis' DEALER. is stated to be sold largely through agents' who indorse the notes of their customers and A considerable part of the accommodation turn them in to the companies. The Wisconwhich the grower in the Connecticut Valley sin grower, states one large buyer, "is too conrequires is obtained from fertilizer dealers and servative ever to borrow money to buy fertilimanufacturers through purchase on time. In zer, " and one bank believes that 95 per cent the other three districts, as noted above, the of the fertilizer sold there is for cash. matter is of minor importance. In the Con- Large quantities of manure are used instead necticut Valley fertilizer is as a rule sold direct of or with commercial fertilizer. The expense by the manufacturers to the growers through of this is largely determined by the location. traveling salesmen, although some of the In the Connecticut Valley alone, where a onelarger companies have agents. The majority crop system largely prevails, does the grower of agents are reliable farmers, although in the have to purchase practically all the manure Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

OCTOBER, 1921. FEDEKAL EESERVE BULLETIN". 1177 used. It is bought during the two plowing In Pennsylvania no advance is made on the seasons, when it can be plowed under immedi- small part of the crop which is contracted for ately. The manure used in the Valley is while growing. One dealer in Ohio states that shipped from New York or Boston in carload the last time advances were made to growers lots, and is then sold by local dealers. Settle- in that district before their tobacco was rement date for fall delivery is February or ceived was in 1906, while another dealer states March. Large quantities are sold on open that "in our 30 years7 buying experience we account. Manure for spring delivery is usually do not believe we have made over 50 advances, sold on 30-day terms. No interest is charged and can also add that in many cases advances in either case until after the settlement date. made have been at our suggestion in order to Manure dealers usually borrow from banks on protect purchases made." In Wisconsin adtheir unsecured note. vances are made on crops purchased while in The farmers of Lancaster County, Pa., the field or hanging in the shed. For years annually feed from 60,000 to 75,000 head of this amount did not average to exceed $5 per steers, in addition to the dairy cattle they keep. acre. In the last two or three years the amount These steers are stabled in October and No- has increased until it now averages $25 per vember and are usually fed until the following acre, and additional advances are often asked April, May, or June, and are then sold. There by the grower at tax-payment time, February are thus no cattle to be taken care of during 1, if the crop has not at that time been delivthe growing season of the tobacco crop. The ered to the purchaser. It is also noted by system provides for a rather constant demand dealers that the number of mortgages on tofor labor throughout the entire year, and thus bacco crops is increasing. enables most of these farmers to hire their labor for the year. It was stated last year* that the 49 banking institutions in Lancaster County SOME ASPECTS OF ITALY'S WAR advance annually to farmers for the purpose FINANCES.2 of buying cattle in the fall of the year more than $2,000,000. Over 60 per cent of these While Italy did not enter the war until May, loans are paid off when the tobacco crop is 1915, a study of Italian war finances should delivered during January and February. begin with the summer of 1914, as the 10 months of neutrality must be regarded as a C. ADVANCES ON CONTRACTS. period of preparation for an eventual participation in the war, so far as public finances are As has been noted previously in section I, concerned. A comparison of the annual budgets in the Connecticut Valley the crop is usually for the two fiscal years ending June 30, 1914, contracted for during July and August by the and the same date in 1915, shows that the comleaf dealers. In such cases an advance is often bined expenditures for the army and the navy, made, the amount varying with the grower's which amounted to about 32 per cent of the needs and the dealer's willingness to put up total effective expenditures3 in 1913-14, formed the funds. The usual advance in 1920 ranged over 58 per cent in 1914-15. While the total from $10 to $100 per acre, with an average of expenditures had increased about 100 per cent, probably $50 per acre. One large leaf dealer those for the two military departments inreported that he advanced $12,800 to one creased nearly 250 per cent. Accordingly, grower on 32 acres, while another stated that Italy had to resort to the policy of extraordihe would lose heavily on a contract for 200 nary financing long before she became an acres on which he had advanced $50 per acre. actual belligerent. Thus, as early as August Another dealer emphasized the risk in making and September, 1914, the first decrees were advances, because of the damage which fre- issued providing for an expansion of the bankquently occurred in curing the tobacco. On note circulation and allowing advances of the the other hand, the statement is often made by banks of issue to the Treasury to be increased growers that the contracts represent little more beyond the normal limits. In January, 1915, than options given the dealer, in view of the possibility of conflicting opinion as to whether 2 Prepared under the supervision of Alexander Gourvitch Division of the tobacco is in the merchantable condition Analysis and Research. The principal sources on which this article is based are theannual financial statements of the Minister of the Treasury, specified in the contract. No interest is the annual reports of the Banca d'ltalia, Riccardo Bachi's Italia Economcharged on dealers7 advances. Some contracts ica for the years 1914 to 1919, and Cenni Statistici sul Movimento Economico dell'Italia,published annuallyby the BancaCoinmercialeltaliana. in the Connecticut Valley, however, do not call 8 The figures and the classification of effective receipts and expenditures for the years 1914-15 to 1918-19 used in this article are those of the for an advance. Ministry of the Treasury as corrected by Prof. Cesare Bachi in the annual issues of Riccardo Bachi's Italia Economica. For 1919-20 the provisional figures and the classification of Minister of the Treasury i E. K. Hibshman: The Relation of Cattle Feeding to the Tobacco Meda, in his annual statement to the Chamber of Deputies, on December Industry. Address before the Connecticut Tobacco Growers' Associa- 19; 1920, have been corrected, as far as this was practicable, in accordance tion, 1920. with Bachi's method. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1178 FEDEBAL KESERVE BULLETIN. OCTOBER, 1921. a national loan (essentially a mobilization loan) 76,000,000,000 lire, having been entirely obwas floated, which opened the series of wartained through loans. loans. GRAPH A. During the six years extending from July 1, 1914, to June 30, 1920, Italy's total effective ANNUAL REVENUES expenditures, as shown by Table 1, amounted FROM to about 114,000,000,000 lire, while the effec- VARIOUS SOURCES IN ITALY tive receipts for the same period aggregated BILLIONS about 43,000,000,000 lire, thus leaving a deficit OF LEGEND LIRE of 71,000,000,000 lire. BANK NOTE ADVANCES STATE CURRENCY NOTES Y7777X SHORT TERM TREASURY BILLS TABLE 1.—EFFECTIVE RECEIPTS AND EXPENDITURES IN 13 AND 5 YEAR TREASURY BONOS THE FISCAL YEARS 1914-15 TO 1919-20. CREDITS 25 I NATIONAL LOANS :—fflK— 25 [In millions of lire.] I EFFECTIVE RECEIPTS Expendi- Year. Receipts. tures. Deficit. 1914-15 2,560 5,428 2,868 20 1915-16 3,707 10,557 6,850 1916-17 5,346 17,146 11,800 1917-18- 7,533 25,329 17,796 1918-19 9,676 32,454 22,778 1919-20 14,234 23,121 8,833 Total 43,056 114,035 70,979 15 The statement of effective expenditures, however, does not include the disbursements on account of the amortization and refunding of the public debt nor certain, other expenditures. A great number of disbursements which were 10 made in the form of advances by the Treasury or by the banks of issue for the account of the Treasury to various organizations and administrations do not figure in the budget statements at all. The most important expenditures of this sort have been in, connection, with the food supply and with other economic activities controlled, regulated, or subsidized by the Government. While the aggregate amount of such disbursements can not be ascertained, they -Oaccount to a large extent for the growth of Italy's floating debt and note circulation. It is possible to gain an idea of their importance, TABLE 2.—ANNUAL REVENUES FROM THE SEVERAL however, from the fact that the net loss incurred SOURCES IN THE FISCAL YEARS 1914-15 TO 1919-20. by the Treasury in, 1919-20 in, connection, with [In millions of lire.] the food supply administration alone (which was not included in the budget of that year) 1914-15 1915-16 1916-17 1917-18 1918-19 1919-201 has been estimated by the Minister of the Treasury at over 6,000,000,000 lire. Effective receipts 2,560 3,707 5,346 7,533 9,676 14,234 Domestic funded loans 2.. 970 3,199 2,586 3,587 8,759 A nearer approach to a correct estimate of the Foreign credits3 2,276 3,260 5,936 7,735 1,060 total expenditures can be obtained from Table Three and five year Treasury bonds * 200 505 1,807 1,100 3,168 1,758 2 and graph A, in which an attempt has been Short-term Treasury bills. 21 556 3,438 3,500 8,043 made to show for each fiscal year the amount of S B t a a n t k e - c n u o r t r e e n a c d y v a n n o c t e e s s 1,6 267 5 3 4 6 5 9 1, 3 13 2 7 5 3,1 6 8 5 7 3 1,5 4 4 0 4 9 2,3 16 the revenues derived by the Treasury from the Total. 5,631 11,157 17,899 '25,500130,5 5 28,134 several sources. The total for the six years appears to be about 119,000,000,000 lire, of 1 Provisional figures. which about 43,000,000,000 lire, or 36 per cent, 3 2 A Pa m r o v u a n lu ts e a . ctually received in cash. have been effective receipts, the rest, about 4 Nominal value at par. & Approximate figures. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

OCTOBER, 1921. FEDEKAL RESERVE BULLETIN. 1179 As a result the nominal capital value of increase of the domestic debt, funded loans Italy's public debt increased from 15,719,000,- account for about 35,000,000,000 lire, floating 000 lire on June 30, 1914, to 96,121,000,000 lire debt obligations for nearly 13,000,000,000 lire, on June 30, 1920, or over 80,000,000,000 lire.4 and note circulation for over 12,000,000,000 lire. Table 4 and graph B show the movement of the public debt for each of the six fiscal years TABLE 3—ITALY'S PUBLIC DEBT ON JUNE 30, 1914, AND ON JUNE 30, 1920. under consideration, taking into account all refunds and conversions. [In millions of lire.] June 30, June 30, TABLE 4.—ITALY'S PUBLIC DEBT AT THE END OF EACH 1914. 1920. FISCAL YEAR FROM 1913-14 TO 1919-20. [In millions of lire.] Funded debt 13,733 48,881 Domestic debt. Floating debt: Short-term Treasury bills 380 9,216 3 C F o u a T r r n e r r e e d ig a n n s t 5 u a c r y c y r e c e a o b d r u o it n T n s t d r l e s o a f s t u h r e y C b a o ss n a d s D e a p n o d s i l t o i ng-term 1,107 2 4 0 , , 3 2 5 7 6 1 6 4 3 Date. Funded. F i l n o g a . t- ci t N r i c o o u n t l e . a- Total. F d o e r b e t i , g i n T de o b ta t. l 1,487 34,369 June 30: Note circulation: 1914 13,733 1,487 499 15,719 15,719 State currency 499 2,538 1915 14,691 1,637 2,379 18,707 18,707 Bank notes advanced 10,333 1916 18,231 2,346 3,293 26,146 2,276 26,146 1917 22,176 6,569 4,755 39,036 5,536 39,036 499 12,871 1918 28,242 9,928 8,595 58,236 11,471 58,236 1919 28,335 21,278 10,548 79,367 19 206 79,367 Total public debt 15,719 96,121 1920 48,881 14,103 12,871 96,121 20,266 96,121 1 Par value. 1 At par value of the lira. This increase is accounted for to the extent It should be noted that the figures for of over 20,000,000,000 lire by the foreign debt, foreign loans as given in Tables 2, 3, and 4 are which is entirely a product of the war. In the based on the par value of the lira. The actual value in paper lire of the amounts received by * As the prewar debt was reduced during that period from 15,719,- 000,000 lire to 14,346,000,000 lire, this means that the war loan operations the Treasury through foreign credits, at the have amounted to 81,783,000,000 lire in nominal capital value, the foreign rate of exchange prevailing at the time they debt being counted at par. GRAPH B. GRAPH c. M_Y'S PUBLIC DEBT CSRCUL-ATION OF BANK NC)TES — TO™L PUBLIC DEBT (Do/nesf/c and F ore/gn Combinsd') sTATE ClJRREN AN G D Y O F NOTES IMSTALY -- TOT A L DOMESTIC DEBT (Including Note O'rculat/on) — TOTAL NOT"E CIRCULATION (Bank Notes &SA7fe Notes LCombined) FUNDED AND FLOATING DOMESTIC DEE7 COMBINED —TOTAL BAN< NOTES (Commercial Circulation ScAdvancest 7 TreasuryA FUNDED DEBT •••BANK NOTES. COMMERCIAL CIRCULATION BILLIONS J]BILLIONS BILLIONS BILLIONS OF LIRE OF LIRE OF LIRE 6F LIRE / 22 22 90 / 90 / / 20 20 80 J / 70 / / / / / / 80 1 1 6 8 A / / 1 1 6 8 / / 70 // / / 60 / 14 i 14 / // 60 / j / / 12 / 12 50 , / / J/ / / s 50 10 j r / s/• 10 j / / y s 40 8 If 8 / / y / . 40 // 30 // y y ..." / 30 6 y ^ / ... 4 /> —— 20 *-^m 20 2 2 10 10 t_J J.I I II I I II I I II i . . . I I II j i i ii — r> — c — 0 DATE J^gE1914 1915 1916 1917 1918 1919 1920 J£JoJE 1914 1915 1916 1917 1918 1919 1920'21 YEAR YEAR Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1180 FEDERAL RESERVE BULLETIN. OCTOBER, 1921. were obtained, was over 28,000,000,000 lire. (4) Foreign loans, 20,000,000,000 lire, or 17 per cent. Much greater, of course, is the difference (5) Three and 5 year Treasury bonds, 9,000,000,000 lire or 8 per cent. between the par value of the capital of the (6) Short term Treasury bills, 16,000,000,000 lire or 13 foreign debt and its amount at the present rate per cent. of exchange. (7) State currency notes, 2,000,000,000 lire or 2 per cent. It should also be observed that the so- (8) Bank note advances, 10,000,000,000 lire or 8 per cent. called "effective receipts" are not identical with ordinary revenues. Before the war the TAXES AND MONOPOLIES. "effective receipts" consisted almost entirely Since the beginning of the war it has been of revenues from taxation and monopolies. Italy's declared policy to meet at least the This is not the case at the present time, howgrowing charges of the public debt by inever, as revenues of a miscellaneous nature creased taxation. In fact, the revenues from have come to be of considerable importance. taxation and monopolies, after a decline in The so-called "minor" or miscellaneous reve- 1914-15 due chiefly to the falling off of cusnues which formed on the average, in the four prewar budgets, some 8 per cent of the total toms receipts, have been steadily increasing, effective receipts, amounted to over 38 perand this increase has been much greater than cent of the effective receipts in 1918-19. To the growth in the public debt charges. While a great extent these miscellaneous receipts the latter increased during the six years under consist of refunds and temporary entries consideration by about 3,000,000,000 lire effected by the Treasury for the various de- (from about 500,000,000 lire to about 3,500,partments. These have increased very con- 000,000 lire), the yield from taxes and monosiderably during the war. They also include polies amounted in 1919-20 to 7,700,000,000 a number of revenues of an extraordinary lire, against 2,300,000,000 lire in 1913-14, thus nature. Among the important items of this increasing about 5,400,000,000 lire. character are the profits accruing to the Treasury from the sale, at the current rate, of TABLE 6.—REVENUES FROM TAXATION AND MONOPOLIES foreign exchange obtained from foreign loans IN EACH FISCAL YEAR FROM 1913-14 TO 1919-20. which were placed at par. Another source of [In millions of lire.] revenue has been the interest on deposits abroad based on the same loans. Since the m 0 a 0 r a m 0 t e is l r i t i r i a e c l e , i w n th h 1 i e c 9 h 1 re 9 a v - m 2 en 0 o u , u e n h s t a e v f d r e o t m o al s a o t b h o b e u e t s e a n 1 l e ,5 i n 0 o 0 c f l ,0 u 0 d w 0 e , d a - r D ta i x re e c s t . o T s t n u i a o c m x o n e p n . s - - T n b e a u o s x n s s e i . - 1 s I m p n t o r o d l i i n a u e l o s s - - . p m C m c o o o i e l m a i n r e l - o - s - . P s u i e c b r e v l . i - c Other.2 Total. among the minor recipts. 1913-H. 541 625 550 211 46 2,311 1914-15. 592 465 341 576 218 17 2,209 TABLE 5.—EFFECTIVE RECEIPTS, 1910-11 TO 1919-20. 1915-16. 721 641 399 704 257 25 2,747 1916-17. 1,058 922 538 851 307 102 3,778 1917-18. 1,532 970 692 1,136 326 20 4,676 [In millions of lire.] 1918-19. 2,066 1,033 937 1,529 356 17 5,938 1919-20 3 2,330 1,208 1,361 1,995 447 340 16 7,697 Revenues Year. f a m r t o i o o m n n o t a p a n o x d - - re M ce in ip o t r s. r e e f T f c e o e c t i t a p i l v ts e . * 1 3 P I P n r u h o b v e l r i i s i c t i a o d n n o c a m e l a t f i a i n g x , u , s r s e t t a s a t . e m r p a i a lw nd ay r s e , g a is n t d ry m d i u sc ti e e l s la , n lu eo x u u s r . y taxes, etc. lies. This increase has been attained through the 1910-11 to 1913-14 (annual averages) 2,243 196 2,439 enactment of new taxation measures, which have 1914-15 2,209 351 2,560 1915-16 2,747 960 3,707 differed widely in importance and effectiveness. 1916 17 3,778 1,568 5,346 1917-18 4,676 2,857 7,533 As may be seen from Table 6, the largest 1918 19 5,938 3,738 9,676 increase has been effected in direct taxes, 1919-20 (provisional figures) 7,697 6,537 14,234 which yielded 2,330,000,000 lire in 1919-20, as compared with 541,000,000 lire in 1913-14. Italy's sources of revenue for the six years To the extent of 980,000,000 lire this increase under consideration may thus be classified in was due to the excess-profits tax, from which eight groups, the respective yield from which over 2,300,000,000 lire have been obtained may be estimated approximately as follows in since its enactment in 1916. Nearly 65,000,000 proportion to the total receipts, the foreign lire were obtained in 1919-20 from the ftax loans being counted at par: on capital increments due to the war, and (1) Taxation and monopolies, 27,000,000,000 lire, or 23 about the same amount from the supertax on per cent. incomes of over 10,000 lire, both taxes being (2) Minor receipts, 16,000,000,000 lire, or 13 per cent. enforced for the first time that year. An aggre- (3)JDomestic funded loans, 19,000,000,000 lire, or 16 per gate of over 1,000,000,000 lire was obtained cent. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

OCTOBER, 1921. FEDERAL RESERVE BULLETIN. 1181 during the four years 1916-17 to 1919-20 from NATIONAL LOANS. the so-called "war centimes contribution/7 an emergency tax which was established as a levy Long-term loans were resorted to as a means on all payments received from the Government of financing the war before floating-debt operand as an addition to all direct taxes, the rate ations were undertaken on a large scale, the having been several times revised and having first national loan having been placed as early varied between 1 and 3 per cent.5 The rates as January, 1915. Since that time six national of the various registry and stamp taxes have loans have been floated, yielding in the aggrebeen repeatedly advanced and new ones estab- gate over 19,000,000,000 lire in cash. As may lished, inheritance taxes have been increased, be seen from Table 7, the first three loans were and a number of luxury taxes have been cre- of the redeemable type, maturing in not less ated. These various changes resulted in an than 10 and not more than 25 years, and not increase in the yield from the so-called " taxes convertible before 10 years. Since 1917 peron business" of 1,023,000,000 lire between petual loans assured against conversion for a 1913-14 and 1919-20. The increase in the number of years have been used. Beginning revenue from industrial monopolies has been with the third loan, floated in 1916, consideraalmost entirely due to gradual advances in the ble facilities for conversion have been offered sale prices of tobacco. The receipts from this to holders of preceding loans and of Treasury source amounted to 1,569,000,000 lire in 1919- bonds, and the floating of national loans since 20, as compared with 350,000,000 lire in 1913- that time consisted to a great extent of 14. The Government monopolies of the sale of funding operations. A floating debt aggrecoffee, coffee substitutes, and electric lamps, gating about 12,000,000,000 lire has thus been which was established in 1919, produced a reve- consolidated, including about 1,000,000,000 nue of 447,000,000 lire in 1919-20 and lire of prewar obligations of the Treasury in 410,000,000 lire in the first 10 months of 1920- the form of 5-year 4 per cent bonds, which were 21.6 Otherwise taxes on consumption have funded at or shortly before maturity by conbeen increased relatively less than other classes version into the consolidated loans. In addiof taxes, the yield amounting to 1,209,000,000 tion to this nearly 2,000,000,000 lire of the first lire in 1919-20, as compared with 538,000,000 two war loans were converted into the third lire in 1913-14. The chief increases have been and subsequent loans, while the nominal capithose in import duties and in taxes on sugar tal of the outstanding 5 per cent redeemable and liquors. bonds of the third loan has been reduced from A number of new fiscal measures have been 4,066,000,000 lire to 1,249,000,000 lire through enacted in the fiscal year 1920-21. The levy conversions into the new 5 per cent^consolion capital was enforced for the first time, and dated loan. the' law for confiscating excess war profits TABLE 7.—ITALY'S SIX WAR LOANS. became effective in April, 1921. Inheritance taxes and taxes on automobiles have been Amount revised upward, and prices of tobacco have sub- Actual again been advanced. In addition, the law of scribed yield Nomi- (nomi- in m Fe e b e r t u in a g r y th 2 e 7 , de 1 f 9 ic 2 i 1 t , o e n n ac a t c e c d o u w nt i th o f a th v e i ew gr a t i o n Date of issue. Maturity. In r t a e t r e e . st pr n ic a e l of cap n i a t l al). cash. issue. administration, provides for the payment of the In millions of annual installments of the capital levy one year lire. in advance (the 1922 installment being paid in 1921), raises the tax on wine from 10 Per cent. lire to 30 lire per hectoliter, and doubles the 1. January, 1915. 10 to 25 years, *i 97 1,000 970 rate of the supertax on incomes of over 10,000 nonconvertible before 10 years. lire. 2. July, 1915.... do 4i 95 1,147 1,071 3. January, 1916. do 5 97.50 4,066 2,127 The revenues from taxes and monopolies in 4. January, 1917. Perpetual, non- 5 90 7,102 2,586 the fiscal year 1920-21 have been provisionally convertible before 1931. estimated by the Minister of the Treasury at 5. January, 1918. .do 5 86.50 6,258 3,587 11,200,000,000 lire, which is an increase of 6. January, 1920. ....do 5 87.50 20,591 8,759 about 3,500,000,000 lire over the preceding year. In this increase, direct taxes account On March 31, 1921, the last date for which for about 1,700,000,000 lire and industrial information is available, the six national loans monopolies for over 1,000,000,000 lire. represented an aggregate nominal capital of over 36,000,000,000 lire. The aggregate annual debt charge on that date amounted to about 5 At present this tax is levied only as an addition to direct taxes, at a rate of 1 or 2 per cent, 1,800,000,000 lire. e This monopoly has recently been abolished. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1182 FEDERAL RESERVE BULLETIN. OCTOBER, 1921. Six NATIONAL LOANS. 6.38 per cent. A premium of 10 centimes per Millions 100 lire is granted to holders of bonds maturing of lire. in from 9 to 12 months if they renew them at First and second loans (4.50 per cent redeemable).. 250 maturity for a new period of at least 9 months, Third loan (5 per cent redeemable) 1, 249 Fourth, fifth and sixth loans (5 per cent consoli- and a premium of 75 centimes per 100 lire dated) 34, 522 to those who convert their short-term bills into 5-year Treasury bonds. FLOATING DEBT. The legal limit of the issue of short-term bills, which was set at 400,000,000 lire for the year On June 30, 1914, Italy's floating debt 1913-14, has been gradually advanced by a consisted of 380,000,000 lire of so-called Buoni series of decrees. The increase in the circula- Ordinari, or Treasury bills, running for 12 tion of bills has been continuous since 1916, months or less, and of about 1,100,000,000 except at times when subscriptions were made lire of 5-year 4 per cent Treasury bonds, the to national loans, when the circulation was latter having been issued chiefly to meet the temporarily checked.7 requirements of the State railways and those The same decree of May 5, 1916, which was arising from the Libyan War. As is apparent mentioned above, created two series of Treasfrom Table 2, a total of about 24,000,000,000 ury bonds of a new type, namely, 3 and 5 year lire, or about 20 per cent of the total receipts, bonds bearing 5 per cent, which were likewise to was obtained in the following six years through be issued to bearer in small denominations.8 the issue of these types of paper, namely, These bonds had the same advantage as the 15,500,000,000 from short-term bills and short-term bills as regards immunity from 8,500,000,000 from three and five year bonds. taxation and convertibility into national It was not until the fiscal year 1916-17 that loans. Interest was made payable 6 months in floating debt operations began to play an advance, and in addition a premium of 1.50 per important part in the financing of the war. cent was granted to purchasers of the new 5- Twenty-one million lire of short-term bills year bonds, and one of 0.75 per cent to those of were placed in 1914-15 and 556,000,000 lire 3-year bonds. The premiums have been gradin 1915-16, including the "special bills for ually raised since that time, and in October, army supply payments/; which were created 1920, amounted to 2.25 per cent on 3-year by a decree of October, 1915, and were similar bonds and to 4.50 per cent on 5-year bonds. to the ordinary Treasury bills with regard Additional premiums are granted for the conto interest and maturity. In the same two version of maturing bonds into new issues. years, 5-year 4 per cent bonds were placed to an aggregate amount of 246,000,000 lire. , TABLE 8.—CIRCULATION OF SHORT-TERM TREASURY BILLS On May 5, 1916, a decree was issued which AND OF 3 AND 5 YEAR 5 PER CENT TREASURY BONDS, was designed to make the floating debt issues ON JUNE 30 OF EACH YEAR FROM 1914 TO 1920. popular and to facilitate their placement. [In millions of lire.] With regard to short-term bills, in addition to the old type of registered bills of large d is e s n u o a m nc i e n a o ti f o b n i s l , l s p o r f o v sm isi a o l n l s d e w n e o r m e in m a a ti d o e n s f , o w r h th ic e h S t b e h il r o l m s rt . - p 3 y e e r a a n c r d e n 5 5 t Total. bonds. were to be sold to the public at the banks of issue, at the more important private banks, 1914 380 at savings banks, post offices, bureaus of 1915 401 401 1916 785 459 1,244 revenue collection, etc. These were dated 1917 4,120 1,671 5,991 from 3 to 12 months and were declared exempt 1918 7,004 2,553 9,557 1919 15,046 5,721 20,767 from taxation. Interest on them was paya- 1920 9,216 4,338 13,552 ble in advance; they were made eligible as collateral at banks of issue and convertible From Table 8, which shows the circulation of at par (with interest discounted) into national short-term bills and 3 and 5 year Treasury loans. The interest rate was advanced at bonds 9 at the end of each fiscal year from 1914 that time from 2£, 24, and 3| per cent to 3, to 1920, after deducting all conversions and 4|, and 4^ per cent, according to maturity. withdrawals, it may be seen that the greatest This increase was followed by further advances, so that in October, 1920, the nominal rates i As a rule, the interest rate on short-term bills was reduced during ranged from 5 per cent to 6 per cent and the the periods when national loans were floated. «In October, 1920, they ranged from 200 to 50,000 lire. actual rates (taking into account the advance » The 5-year 4 per cent Treasury bonds had been completely extinpayment of interest) from 5.06 per cent to guished by the end of October, 1920, partly through refunding, but to a much larger extent through conversion into national loans. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

OCTOBER, 1921. FEDERAL RESERVE BULLETIN. 1183 expansion of the circulation occurred in 1918— TABLE 9.—CIRCULATION OF BANK NOTES AND OF STATE 19. On June 30, 1919, there were outstanding CURRENCY NOTES FROM JUNE 30, 1914, TO MARCH 31, 1921. 15,046,000,000 lire of short-term bills and [In millions of lire.] 5,721,000,000 lire of 3 and 5 year 5 per cent bonds. The maximum point was attained Bank notes. somewhat later, the circulation on October 31, State Total t 1 e 9 r 1 m 9 , b c i o ll n s s a is n t d in 6 g , 7 o 4 f 5 , 1 0 5 0 , 0 9 , 6 0 1 0 , 0 0 0 l 0 ir , e 0 0 o 0 f l 3 ir a e n o d f 5 s h y o ea rt r - c C ia o l m c m irc e u r- - I A t d o v t a h n e ces | Total. cu n r o r t e e n s c . y c n u o l t a e t i c o i n r- . lation. Treasury. bonds. A considerable contraction of the floating debt took place early in 1920, as a June 30,1914 2,199 2,199 499 2,698 result of conversions into the sixth national Sept. 30,1914 2,484 337 2,821 555 3,376 Dec. 31,1914 2,201 735 2,936 657 3,593 loan, 5,614,000,000 lire of short-term bills and Mar. 31,1915 2,285 827 3,112 673 3,785 3,141,000,000 lire of 3 and 5 year bonds having June 30,1915 2,243 1,613 3,856 766 4,622 Sept. 30,1915 2,139 1,676 3,815 964 4,779 been delivered in payment for subscriptions. Dec. 31,1915 1,899 2,069 3,968 1,082 5,050 Mar. 31,1916 1,790 . 2,103 3,893 1,097 4,090 Furthermore the success of the loan permitted June 30,1916 2,158 i 2,158 4,316 1,135 5,451 the withdrawal from circulation of over 200,- Sept. 30,, 1916 2,274 2,288 4,562 1,230 5,792 Dec. 31,1916 2,458 2,554 5,012 1,317 6,329 000,000 lire additional short-term bills. On Mar. 31,1917 2,435 2,746 5,181 1,411 6,592 June 30,1917 2,521 3,295 5,816 1,460 7,276 June 30, 1920, the total floating debt amounted Sept. 30,,1917 2,432 4,042 6,472 1,595 8,067 to about 14,000,000,000 lire, showing a net Dec. 31/1917 2,592 5,833 8,425 1,841 10,266 Mar. 31,1918 3,378 5,656 9,034 1,981 11,015 increase of about 12,600,000,000 lire over the June 30,1918 3,590 6,482 10,072 2,113 12,185 Sept. 30,1918 4,001 6,883 10,884 2,200 13,084 prewar debt. Dec. 31,1918 4,585 7,166 11,751 2,337 14,088 After the conclusion of the sixth national loan Mar. 31,1919 3,953 7,764 11,717 2,429 14,146 June 30,1919 4,255 8,026 12,281 2,522 14,803 the floating debt was expanded again. The Sept. 30,, 1919 4,735 9,250 13,985 2,531 16,516 Dec. 31,1919 5,652 10,630 16,282 2,533 18,815 sale of Treasury bonds was greatly facilitated Mar. 31,1920 5,478 10,454 15,932 2,538 18,470 by the fact that they are the only securities June 30,1920 7,484 10,333 17,817 2,538 20,355 Sept. 30,, 1920 . 8,231 10,682 18,913 2,546 21,459 explicitly exempted from compulsory regis- Dec. 31,1920 8,988 10,743 19,731 2,546 22,277 Mar. 31,1921 9,234 9,531 18,765 2,546 21,311 tration. A new type of Treasury bonds, namely, 7-year bonds bearing 5 per cent interest, have The advances to the Treasury have been of been offered for sale since February, 1921. three distinct kinds—(1) so-called " statutory " Until August 15, the price of issue was 91.50, advances, (2) extraordinary advances, and (3) plus the accrued interest from February 15 to advances to the Treasury for loans to third the date of sale; after August 15 the rate was parties. to be advanced. Lottery drawings will take (1) Under the statutes governing the Italian place twice a year, and a total of 2,545,000 banks of issue, they are required to make adlire will be paid annually in premiums rangin vances to the Treasury, at an annual interest from 1,000 lire to 1,000,000 lire. By the eni rate of 1.50 per cent, the circulation on account of June, 1921, the combined amount of outof such advances being covered by a metallic standing short-term bills and 3, 5, and 7 year reserve to the extent of one-third. Before the bonds was about 25,500,000,000 lire. war the maximum legal limit of these "statutory" advances was fixed at an aggregate NOTE CIRCULATION. amount of 155,000,000 lire for the three banks, but no advantage had been taken by the As is shown by Table 9 and graph C, the Treasury of this source of revenue, and conaggregate total circulation of the three banks sequently there were no bank notes in circuof issue (Banca d'ltalia, Banco di Napoli, and lation on account of advances to the Treasury Banco di Sicilia) increased from 2,199,000,000 on June 30, 1914. By a decree of September lire on June 30, 1914, to 17,817,000,000 lire 19, 1914, the legal limit was raised to 310,000,on June 30, 1920, or 15,618,000,000 lire. To 000 lire, and later was advanced to 485,000,000 the extent of 10,333,000,000 lire the increase lire; the actual circulation on that account has was due to advances made by the banks of been maintained at the latter figure since May, issue to the Treasury. 1915. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1184 FEDEKAL, BESERVE BULLETIN. OCTOBER, 1921. (2) In addition to advancing the limit of vances to the Cassa Depositi has been mainstatutory advances, the banks of issue have tained at 700,000,000 lire since May, 1915, been authorized to make extraordinary ad- although as early as the summer of 1915 the vances to the Treasury, which are guaranteed situation of the postal savings had improved to by special Treasury bonds issued to the several such an extent that relief measures were no banks and bearing an annual interest of 0.25 longer necessary. Of the 700,000,000 lire per cent. The bank notes issued on that advanced by the banks, only a part (not much account are exempted from all reserve require- more than 300,000,000 lire) has been actually ments. The decree of June 27, 1915, which remitted to the Cassa Depositi; the rest, servcontained the first provisions to that effect, ing to maintain the current account of that fixed the limit of extraordinary advances at an institution with the Treasury, is held by the aggregate of 200,000,000 lire for the three latter. Gradually, as the war progressed, banks, but the limit has been gradually raised, bank-note advances to the Treasury for loans and the circulation on this account now to third parties were used more and more examounts to 4,850,000,000 lire. In addition, tensively and for an increasing variety of obtwo special advances above this limit were jects, advances having been authorized for authorized in 1919. One advance of a maxi- such widely different activities as railway conmum amount of 1,000,000,000 lire was de- struction by concessionaires, cooperative credsigned to enable the Treasury to extinguish its, rural credits, Government subsidies to the at maturity some of the Treasury bills which silk trade, restoration of live stock to the inhad been discounted directly by the banks of vaded regions, loans to victims of the war issue. This was done with a view to the grad- having claims for reparation from the enemy, ual withdrawal from circulation of a corre- purchase of war materials, and most important sponding amount of notes which had been ad- of all, the requisition and importation of grain* vanced on the bills by the banks, and had been On December 31, 1920, the note circulation charged to the account of commercial circula- on account of advances of this class, exclusive tion. Another advance, which on December of the 700,000,000 lire advanced for the Cassa 31, 1920, amounted to over 800,000,000 lire, Depositi, amounted to 2,900,000,000 lire. As was intended for the special purpose of with- these advances have been made for specific drawing Austro-Hungarian currency in Venetia operations, they are regarded as of a temporary and in the annexed territories. nature. As a matter of fact the total of these (3) Finally, since August, 1914, a series of advances outstanding has fluctuated and some decrees have been issued authorizing the banks of them have been refunded. Thus, the of issue to make advances to various adminis- 384,000,000 lire advanced to the Central trations and institutions through the Treasury Office for the Silk Market, which was estaband under its guaranty, and to issue notes for lished at the end of 1918 when the market that purpose, the issues being free from all was facing a collapse, had been completely reserve requirements. Originally, these pro- refunded by the end of 1919. At the end visions were designed to meet certain limited of 1920 the advances to railway concesand temporary needs, such as to enable the sionnaires had been repaid, those to ordisavings institutions of the country to with- nary savings funds had been reduced to stand the rush of depositors during the critical 3,000,000 Ere and those for the purchase period that followed the outbreak of the Euro- of war materials to 4,000,000 lire. Adpean war. For this purpose advances to the vances to the food administration for the pur- Treasury were authorized for loans on col- chase of grain, which constitutes by far the lateral to various savings funds, and another most important item (about 2,300,000,000 lire series of advances for loans, likewise secured as compared with a total of 2,900,000,000 lire by collateral, to the so-called Cassa Depositi e on December 31, 1920), have naturally been Prestiti (Institute of Deposits and Loans), alternately expanded and contracted as the which administers the postal-savings funds, to acquisition and the sale of grain have proen ble it to meet the demand of depositors, ceeded. They may now be expected to be and also to grant loans to provincial and permanently reduced or completely extincommunal administrations for the carrying guished as a result of the recent provisions for out of public works. The advances made the financing of the grain supply, and the by the banks for the ordinary savings funds, changed condition of the grain market. On the maximum amount of which had been the other hand, the advances to the Federal fixed at 300,000,000 lire, were gradually Institute of Credit for the Reconstruction of refunded, and the notes issued on that ac- the Venetian Provinces for the granting of count had been almost entirely withdrawn loans to victims of the war have increased from circulation by the end of 1920. On the from 155,000,000 lire on December 31, 1919, to contrary, the amount of notes issued for ad- 320,000,000 lire on December 31, 1920, and Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

OCTOBER, 1921. FEDERAL RESERVE BULLETIN. 1185 their refund or further expansion is entirely FOREIGN CREDITS. dependent upon the settlement of the reparations question. On June 30, 1921, Italy's foreign debt The aggregate circulation for the account of amounted to 20,858,000,000 lire, when calcuthe Treasury, as may be seen from Table 9 lated at par value of the lira, with an annual and graph C, increased continuously until the interest charge of 1,168,000,000 lire. This end of 1919, particularly large increases hav- debt, which is entirely the result of war-time ing taken place in 1917, following the dis- credit operations, and is constantly increasing aster of Caporetto, and in 1919 when new re- owing to the deferment of interest payments, quirements arose in connection with the food consists, on the one hand, of credits of the supply, the reparation of war damages, and United States Treasury (about 8,400,000,000 the exchange of Austro-Hungarian currency. lire), and, on the other hand, of the so-called In 1920 it remained practically stationary, the " special bonds placed abroad" since the sumgrowth of the total circulation being due almost mer of 1915. The latter, which represent exclusively to the expansion of commercial cir- credits in foreign currency for the financing of culation. In the first months of this year the imports, have been almost entirely obtained circulation for the account of the Treasury from the British Treasury; the only important began to decrease, with the result that there has exceptions seem to be the $25,000,000 loan been a contraction of the total bank circulation, obtained in 1915 in New York from Lee, Higin spite of the continued expansion of the com- ginson & Co., which was refunded in 1920, and mercial circulation. On June 20, 1921, ad-the public loan floated in the United States in vances to the Treasury amounted to about 1920, which produced about $10,000,000. 9,000,000,000lire, which was a decrease of nearly The annual movement of the foreign debt 2,000,000,000 lire since December 31, 1920. for each fiscal year from 1914-15 to 1919-20 is In addition to notes advanced by the banks, shown by the following table: the Treasury's own issues increased during the period under consideration from 499,000,000 lire to 2,538,000,000 lire. The latter figure TABLE 10.—ITALY'S FOREIGN LOANS IN EACH FISCAL YEAR, FROM 1914-15 TO 1919-20. included 2,269,000,000 lire of ordinary state currency notes, the legal limit of which had [In millions of lire.] been gradually advanced from 500,000,000 lire to 2,300,000,000 lire. The gold reserve against Increase in foreign debt at par value state note circulation, which on June 30, 1914, of the lira. amounted to 132,000,000 lire, composed ex- Estimated 3 cl 1 u , si 1 v 9 e 1 l 9 y , t o o f 1 g 6 o 3 l , d 0 00 c , o 0 i 0 n 0 s , li a re m , o a u n n d te d w as o n a l D m e o c st . Fiscal year. S e t U a rn t n e m i s t e e G n d o t v- l O oa th n e s r . Total. p re a c p e e i r p t l s ir e in .1 entirely made up of certificates of deposit of credits. foreign banks of issue and of foreign Treasury bonds payable in gold. On the other hand, 1914-15 0 0 0 0 1915-16 2,276 2,276 2,679 there were outstanding about 269,000,000 lire 1916-17 518 2,742 3,260 4,276 1917-18 2,849 3,086 5,935 9,293 of the so-called " Buoni di Cassa," special notes 1918-19 4,690 3,045 7,735 10, 283 issued since September, 1917, for the purpose 1919-20 341 719 1,060 1,536 of withdrawing silver coins from circulation. Total 8,398 11,868 20,266 28,067 They were covered by a silver reserve to the 1 At rate of exchange prevailing at the time when the several loans extent of about 180,000,000 lire. were obtained. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1186 FEDERAL RESERVE BULLETIN. OCTOBER, 1921. BUSINESS AND FINANCIAL CONDITIONS ABROAD. With the gradual elimination of war-time have recently been raised to 6; in other words, Government control of foreign trade since the duties may be assessed up to six times the armistice, there has been built up very generally value of those provided by the old tariff law. in the industrial countries of the world a more Although such large increases have apparently rigid system of import and export tariffs than not been frequently applied, a "coefficient of existed before the war. There are still dis- increase" of 4 is not uncommon in the Belgian tinctions between countries in the extent to law. In the new Italian and French laws the which they have applied tariff measures, but basic rates have been increased and in addiin all cases the recent tendency has been to tion coefficients of increase are being applied. increase rather than to reduce rates. Increases In the Italian law a coefficient of increase of in Government expenditures since the war have 1 (i. e., an increase of 100 per cent over basic frequently been the cause of advances. Re- rates) is customary, while in France the coeffistriction of imports in order to pay foreign debts cients vary from 1.1 to 10, the most usual is a determining factor with Germany and some coefficients being 3, 4, and 5. of the other countries whose financial strength A more or less thorough revision of existing has been seriously impaired, while in the case tariff laws has been made by a number of of the stronger countries so-called antidumping countries within the last year or so; among provisions have been common. In still other others Canada, British India, Australia, Italy, cases there has been a general revision of the France, Spain, Portugal, Sweden, and Japan, entire tariff system, with a view to the pro- while several other countries such as the tection of young industries or industries which United States, Denmark, and Holland, have were expanded during the war. In practically the subject under consideration. In the case all cases key industries and those that are con- of Canada and Australia there already existed sidered essential from a defense point of view comparatively high tariffs before the recent are given protection. revisions were made. The new amendments Antidumping bills are characterized by pro- provide in general for higher rates. British visions for import duties on goods which are India has had a long and varied tariff career. being brought into a country at prices less than However, until 1916 her import duties on an the cost of production in the place of origin; average had not exceeded 5 per cent ad vaand in some cases by provisions for the elimi- lorem. With a view to increasing revenue nation of the price advantage of exporting during the war the usual rates were increased countries with depreciated exchanges. To at that time to 7£ per cent, while the recent quote from the title of the safeguarding of revisions increase them further to 11 per industries act, which has just become a law in cent, with the rates on some articles as high as England: " An act to impose duties of customs 15 and 20 per cent. The new Italian law may on certain goods, with a view to the safeguard- be classed also among those providing definite ing of certain special industries and the safe- protection to domestic industries. Kates have guarding of employment in industries in the been generally increased, the advances being United Kingdom against the effects of the greatest in the case of manufactured goods. depreciation of foreign currencies, and the The new Spanish tariff, enacted in November, disposal of imported goods at prices below the 1920, may also be classified as definitely proteccost of production." Or, to quote from the tive, and although some of the original increases United States emergency tariff law enacted in rates have been reduced since the law was last May, "if the purchase price or the export- enacted, rates are now from 50 to 100 per cent er's sales price is less than the foreign market higher than under the old system of customs value (or, in the absence of such value, than the for purely revenue purposes.^-Thepapanese cost of production) there shall be levied, col- law, enacted in July, 1920, and described in the lected, and paid, in addition to the duties BULLETIN for December of that year, is frankly imposed thereon by law, a special dumping protective. Even in Holland, which has always duty in an amount equal to such difference/' been a free-trade country, the new tariff bill A similar clause is contained in the Canadian now under consideration provides for an intariff law. But probably the most extreme crease in existing jduties from 5 to 7 per cent "antidumping" tariffs are those of France ad valorem. and Belgium. In the case of the latter the In certain South American countries, high limits of the so-called "coefficients of increase" duties are being levied on luxury imports. The Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

OCTOBEJR, 1921. FEDEKAL RESERVE BULLETIN. 1187 motive in such cases is primarily that of in- the cost of production in the country of origin, creasing revenues. In the case of Germany but also that the commodity is being produced the importation of luxury goods is prohibited efficiently and economically at home and that in order that an export balance may be built up. the levy of an antidumping duty will not in any way interfere with employment in other ENGLAND.1 British industries. Depreciation of currency will not be considered a cause for antidumping The British safeguarding of industries bill, orders unless the currency under consideration which was passed by the House of Commons in is as much as one-third below parity. Goods August and will become effective on October 1, dutiable under the conditions of this part of will serve two main functions. In the first the act will be charged with a 33 J per cent levy. place, by the terms of this act certain specific It appears that the act has been hedged key industries are given a very material degree about with conditions which may tend to of protection, and, in the second place, all neutralize the effect of the antidumping regu- British industries are given the opportunity to lations where cost of production is made the claim protection against foreign competition in criterion. It will be a matter of considerable the domestic market under certain conditions. interest, however, to follow the working of the The specific commodities upon which a 33J act, as it is generally thought that few counper cent import duty is to be levied are as tries are producing at present on a scale to follows: make possible export of goods at less than the GOODS CHARGEABLE WITH DUTY. cost of producing them. Of more importance is the provision of protection in case the foreign Optical glass and optical elements, whether finished or currency is depreciated to such a point that the not, microscopes, field and opera glasses, theodolites, foreign price is below that at which the comsextants, spectroscopes, and other optical instruments. Beakers, flasks, burettes, measuring cylinders, ther- modity can be manufactured in the United mometers, tubing, and other scientific glassware and lamp- Kingdom. Since the currencies of all of the blown ware, evaporating dishes, crucibles, combustion European belligerents are depreciated more boats, and other laboratory porcelain. than 33 J- per cent, and in many cases goods can Galvanometers, pyrometers, electroscopes, barometers, analytical and other precision balances, and other scientific be deliveredfin England at lower prices than instruments, gauges and measuring instruments of preci- those set by British. manufacturers, it seems sion of the types used in engineering machine shops and likely that the new act will give considerable viewing rooms, whether for use in such shops or rooms or protection in these cases, and that the ratio of not. Wireless valves and similar rectifiers, and vacuum tubes. European imports into England will be reduced. Ignition magnetos and permanent magnets. To quote the act: Arc-lamp carbons. Hosiery latch needles. PREVENTION OP DUMPING. Metallic tungsten, ferrotungsten and manufactured products of metallic tungsten, and compounds (not includ- 2. (1) If, on complaint being made to the board to that ing ores or minerals) of thorium, cerium, and the other rare effect, it appears to the board that goods of any class or earth metals. description (other than articles of food or drink) manu- All synthetic organic chemicals (other than synthetic factured in a country outside the United Kingdom are organic dyestuffs, colors, and coloring matters imported being sold or offered for sale in the United Kingdom— for use as such, and organic intermediate products im- (a) At prices below the cost of production thereof as ported for their manufacture), analytical reagents, all hereinafter denned; or other fine chemicals (except sulphate of quinine of vege- (b) At prices which, by reason of depreciation in the table origin), and chemicals manufactured by fermenta- value in relation to sterling in the currency of the country tion processes. in which the goods are manufactured, not being a country These are mainly commodities which are within His Majesty's dominions, are below the prices at which similar goods can be profitably manufactured in essential in time of war, the manufacture of the United Kingdom; which it is desired to encourage and perfect and that by reason thereof employment in any industry in within the United Kingdom. The terms of the United Kingdom is being or is likely to be seriously affected, the board may refer the matter for inquiry to a the act provide protection for these industries committee constituted for the purposes of this part of this for five years. act: Provided, That the board shall not so refer any matter The administration of the antidumping por- involving a question of depreciation of currency unless tion of the law is under the direction of the they are satisfied that the value of the currency of the country in question in relation to sterling is less by 33} Board of Trade, but the power to issue antiper cent or upward, than the par value of exchange. dumping orders remains with Parliament, and (2) The board, on referring any such matter to a commitany industry desiring protection must prove tee, shall direct that the committee shall report also on not only that the price of the foreign article the effect which the imposition of a duty under this part of this act on goods of any particular class or description competing with its own product is less than would exert on employment in any other industry, being an industry using goods of that class or description as i British price, trade, and financial statistics may be found on pp. material. * * * 1226, 1230, 1257. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1188 FEDEKAL, BESEBVE BULLETIN. OCTOBER, 1921. 3. (1) Subject to the provisions of this part of this act, This gives an unfavorable balance of £55,000,there shall be charged, levied, and paid on goods of any 000 for the year as compared with an estimated class or description in respect of which an order has been favorable balance of £165,000,000 in 1920. made under this part of this act, if manufactured in any of the countries specified in the order, on the importation The railways bill, which has been before thereof into the United Kingdom, in addition to any other Parliament for some months, was passed on duties of customs chargeable thereon, duties of customs August 19, four days after the railroads were equal to one-third of the value of the goods. returned to private management. The most Before the war England obtained approxi- important provisions in the act are those (1) mately 40 per cent of her imports from the for the amalgamation and grouping of the dif- Continent. In 1920 this percentage dropped ferent railways, (2) for the creation of a rates to 23, but in the first half of 1921 rose to 35 per tribunal, and (3) for the reconstitution of the cent. wages boards. As the bill was finally passed The depreciation of the purchasing power the railways of Great Britain are to be divided of the Continent affects England quite as seri- into four groups—the southern and western, ously, however, from the selling as the buying which are comparatively small, and the northpoint of view. In both 1913 and 1920 the six western and northeastern, which are large. leading continental countries, France, Italy, These amalgamations will take effect January, Belgium, Holland, Russia, and Germany, took 1923. The act also provides that the Ministry approximately 25 per cent of England's ex- of Transport may order the railroads to conports, while the other European countries (in- form to measures of general standardization of cluding Sweden) took 9 per cent in 1913 and 14 ways, plant, and equipment, and to make per cent in 1920. During 1921 there has been a common use of rolling stock, workshops, plant very material decrease in British exports to all facilities, etc. The new railway rates tribunal of these countries. The falling off in exports to is an executive department similar to the In- France is particularly striking. These were val- terstate Commerce Commission in the United ued at £77,000,000 for the first six months of States. This body has the power not merely 1920 and at only £21,000,000 during the same to set the maximum limits but the actual rates period of 1921. Exports to Belgium, Nether- to be charged on the railroads. During the lands, and Italy fell off similarly, although not first three years of operation rates will be reso much. Exports to Germany amounted to a viewed annually. Until the time of amalgavalue of £11,000,000 in the first six months of mation, councils will function for each railroad 1920 and to £7,000,000 in the same period of to adjust labor disputes. Employees and man- 1921. agement will be represented on these councils. During August there was an increase in In addition, the central and national wages British imports and exports large enough to boards have been reconstituted, and leading indicate a very material increase in trade. No trade unions given separate representation. figures are available at this time, however, to In its issue of August 27, 1921, the London show in what geographical directions the ex- Statist makes a summary of the financial conpansion has occurred. The commodities which dition of British railroads at the time of their have been exported on a larger scale than return to private management. The following during recent months comprise coal, cotton brief table shows total net receipts from 1913 manufactures, and vehicles (including loco- to August 15, 1921. Until the latter date motives, ships, and air craft). deficiencies were met by the Government. Very optimistic reports were made a year With the payment of the £60,000,000 against ago regarding Great Britain's international claims for deferred maintenance and stores, trade balance. Due to the depression of trade however, the financial responsibility of the and the reduction in freight earnings, it appears Government will be at an end. that for the year 1921 the balance will be adverse instead of favorable, as it was in 1920. TOTAL NET RECEIPTS OF RAILWAYS OF GREAT BRITAIN. Shipping earnings were estimated at £340,000,- 000 for the year 1920 by the Board of Trade. 1913 £45,633,078 1918 £44,068,105 1914 16,281,648 1919 8,950,908 Estimates of £60,000,000 to £70,000,00p for 1915 45,171,403 1920 5,974,765 1921 have recently been made by a shipping 1916 49,420,063 1921 20,920,964 expert, which, combined with 1920 estimates 1917 53,885,849 of income from investments of £120,000,000 General business conditions during late Auand from banking and other services of £40,000,000, gives a total of £225,000,000 on fust and early September appear not to have een materially better than in recent months, the credit side as compared with an estimated but there are a few factors which can be meas- £280,000,000 * on the debit side for imports. ured statistically which point toward improve- 1 Estimate of Manchester Guardian. ment. The volume of production of iron and Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

OCTOBER, 1021. FEDERAL BESERVE BULLETIN. 1189 steel has increased slightly, prices are more July. The percentage of unemployed among stable than a few months ago, and foreign those people who are insured under the unemtrade is larger. Coal production, on the other ployment insurance act decreased from 14.8 at hand, is on the decrease because of surplus the end of July to 13.15 at the end of August. stocks and lack of demand, and the cotton There were 1,573,000 people registered at emindustry is still depressed in spite of the spec- ployment offices on August 26, as compared tacular advance in the price of the raw mate- with 1,780,000 on July 29. rial. Wool prices are slightly higher than a month ago, but there is very little demand for FRANCE.1 the finished goods, and as a result uncertainty In June, 1919, when the abolition of war-time about prices of tops and yarns. import prohibitions made tariff revision a pressing matter, the French Government began to VOLUME OF BRITISH COMMODITY PRODUCTION, SHIP apply "coefficients of increase" to its tariff TONNAGE UNDER CONSTRUCTION, AND TONNAGE rates. Customs duties have been levied in MOVED ON BRITISH RAILWAYS. France almost entirely by means of specific rather than ad valorem rates ever since 1881, Production (long tons, 000 and the change in the price level which took omitted). Ship ton- British nage under railways place there during the war made these rates Steel in- t c io o n n s ( t g r r u o c s - s m (t i o le n s - , comparatively ineffective either for protection Coal. Pig iron. c g a o s t t s i n a g n s d .1 tons). o 0 m 0 i 0 t , t 0 e 0 d 0 ). or revenue. The action taken by the Government in 1919 is best explained by an excerpt from the introduction to the decree of July 8, Monthly average: 1919, which first imposed " coefficients of in- 1913 23,957 855 639 2 2,002,699 1920 19,128 667 755 23 603,131 crease." July 3 22,926 750 790 1,506 August 16,970 752 709 1,347 September 18,885 741 885 3,731,000 1,489 The decree of June 14, 1919, published in the Journal October •U4,044 533 544 Officiel for the 18th of that month, laid down for a certain November— 15,920 404 505 1,469 number of goods ad valorem surtaxes intended to restore December 20,230 675 747 3,709,000 1,323 to the customs duties a protective incidence equal to that 1921 which they possessed before the war, this incidence hav- January 21,805 642 493 1,440 ing been reduced to such an extent that for most goods the February. -. 17,369 464 484 1,276 duties had become a mere statistical tax, and did not have March 16,437 386 359 4 3,799,000 1,273 April 51,950 60 71 597 any protective effect. The decree was merely a provi- May 14 6 498 sional readjustment aiming at reestablishing the tariff June 6 179 1 2 7 3,530,000 443 equilibrium which has been disturbed by the considerable July 3 15,214 10 117 August 16,594 94 433 increase in prices. This readjustment was carried out by adding to the duties prescribed in the tariff ad valorem surtaxes which, on the basis of the official valuations of 1 Revised figures. 2 Average of 4 quarterly estimates. goods, would bring the duties to the level of the prewar 3 5 weeks. percentage. * Work suspended on all but 2,952,000 tons. 6 First week in April. The Government has been considering the possibility e Production from Apr. 4 to July 4. of obtaining the desired results by a more convenient 7 Work suspended on all but 2,351,000 tons. method without in any way abandoning the principles which had led them to impose such surtaxes. Although The trend of prices during August was down- ad valorem duties may not be open to criticism in princiward, according to the index 01 the Board of ple, they are nevertheless difficult to apply in practice and Trade and the Statist. Nevertheless, a con- have well-known disadvantages. * * * For this purpose coefficients have been established for the classes of siderable number of prices advanced, especially goods specified in the customs tariff (other than those in the food groups. Live stock and meats ad- which it appears desirable to except from this reform), vanced, as did butter, cheese, sugar, tea, and representing the relation between the value of the goods coffee. Cereals, on the other hand, tended to in 1913 and 1918, according to the official valuations laid down for those years by the Permanent Commission on be reduced in price, as was wheat flour. Customs Values. Cleveland pig iron was advanced, but leading The Government, however, has systematically adopted semifinished steel products declined or re- the figure 3 as the maximum " coefficient of increase," being desirous of avoiding as far as possible all abnormal mained unchanged. Cotton and woolen yarns causes of increase in price, and having decided to indicate as well as boots and shoes were lower than in very clearly its intention not to appear to sanction the July. . present prices of goods, which are too often the result of The index of the cost of living decreased pure speculation. from 122 during July to 120 during August, On this basis the duty to be paid for any particular class of goods will be the product of the specific duty laid down with the level in July, 1914, considered as 100. in the tariff multiplied by the coefficient attributed to the Improvement continued in employment con- article concerned. In view further of the necessity of not ditions, the percentage of trade union members exceeding the limits of a just equalization, the Governout of work averaging 16.5 at the end of 1 French price, trade, and financial statistics may be found on pp. August, as compared with 16.7 at the end of 1227, 1230, 1258. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1190 FEDERAL RESERVE BULLETIN. OCTOBER, 1921. ment will continue to follow the markets closely and will increased as much as six times. The decree of not fail if necessary to reduce the rates of the coefficients June 29 provides that in the course of the first of increase. For this purpose an interministerial comquarter of 1922 these coefficients shall again be mission will be set up, charged with the duty; of preparing a periodical revision of the schedule of coefficients in order revised. that such schedule may correspond as exactly as possible It is difficult to gauge the exact effect of the to the relation between present and prewar values. tariff upon French imports. It was pointed The law of May 6, 1916, which authorized out in the August issue of the BULLETIN that the Government to raise customs duties by the volume of French imports for the first ministerial decree, was continued in force six months of 1921 was distinctly less than in until January 1, 1922, by a law of December the first six months of 1913. The recently 31, 1920. Early in 1921, because of the published figures on the July import trade spread of industrial depression and unem- show little improvement. French imports for ployment in France, there was a popular July, 1921, weigh 2,164,000 metric tons, as demand for further tariff protection, par- compared with 3,808,000 metric tons in July, ticularly against countries with depreciated 1913. How much of this decline is due to lack exchanges. The tariff commissions of both of demand in France itself and how much to the Senate and Chamber of Deputies there- the new tariff it is difficult to estimate. fore began a revision of the basic rates of the It seems quite likely that the unfavorable rate maximum tariff and of the " coefficients of in- of the exchanges with the United States and Engcrease " of the 1919 decree soon after the first land, two countries from which France normally of the year. A decree of March 28, 1921, in- purchases large quantities of goods, may have creased from two to three times the duty on been quite as important as the tariff in reducing goods coming from countries with which France French expenditures from abroad. In Septemhas no special tariff agreement, and these in- ber French exchange on New York fell as low clude most of the countries with greatly de- as 6.88 cents to the franc, and by September preciated exchanges. Some of the products of 30 it had progressed to 7.13 cents to the franc. the United States are subject to the French Meanwhile, prices in general seem to be maximum tariff and they are specifically ex- rising in France. In August the wholesale cepted from the increase in rates. The new price index of the French General Statistical coefficients were announced and became effec- Office rose to 331, an increase of nine-tenths tive at intervals until June 29, 1921, when a of 1 per cent over the month previous. This presidential decree established the complete rise was the result of increases in the prices of revision of the coefficients, which are applied to animal foods and of textiles. The price of both the minimum and the new maximum rates. spot cotton at Havre rose from 211 francs for This revision is intended to reestablish the 50 kilograms on July 30 to 261 francs on protective measures of the tariff of 1892 August 27. Silk prices also increased slightly which were in force (with some changes) at the during the month, but Lyons reports no real time of the outbreak of the war, but it appears activity in the market. The price of some also to afford additional protection to certain grades of rubber rose in August. The Marindustries. Most of the commodities to which seilles quotation for Para rubber increased coefficients of increase are applied are manu- from 4 francs 75 per kilo on July 30 to 5 francs factured articles, but some foods and raw ma- 30 on August 27. On the other hand the terials are also included. The tariff rates on price of sugar declined sharply in August, as wool are to be multiplied by 3, on wheat and did nonferrous metal prices. Pig-iron prices other bread grains by 2, on sugar by 2.5, on fell again because of lack of demand, but pig iron by 2, on copper bars by 2.4, and on prices of iron plates and rails remained staferromanganese, ferrosilicon, and silico-spiegel tionary. During September the general upby 6.3. ward movement seems to have been continued, In general, coefficients of increase vary from as the wholesale price index of the French 1.1 to 10, those most usual being 3, 4, and 5. General Statistical Office rose from 3311 to In a few cases the new coefficient is less than 342 during the month. the one which was previously in force, but, on Industrial conditions in the Lille district the other hand, many rates to which coefficients were complicated during August and early Sepwere not applied previously are now increased tember by the strike of the textile operatives. from two to six times. For most textiles In the iron and steel districts a great deal of the coefficient of increase is 5, although it involuntary unemployment continued. In ranges as high as 10 in the case of velvets and general, however, there was less unemployplushes of linen for manufacturing; for metal ment in France in August than in the months manufactures the coefficients vary from 1.4 previous, because of the seasonal demand for to 8.8 and for some chemicals the tariff is labor in that month of the year. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

OCTOBEK, 1921. FEDERAL, RESERVE BULLETIN. 1191 The situation of the Bank of France has not proposals contemplate an expenditure of changed very greatly during the last month. 7,158,620,742 francs in 1922, as compared with On August 25 the gold reserve of the bank held 15,913,000,000 francs in 1921. Of this amount in France amounted to 3,573,765,000 francs, 3,656,887,660 francs will be spent for pensions while on September 22 it had risen to 3,574,- and 1,146,508,977 francs for the devastated 545,000 francs. During the same period the regions. The Finance Minister proposes that amount of the notes of the bank in circulation the expenses included in the recoverable changed from 36,783,000,000 francs to 36,920,- budget, which are not met by payments from 973,000 francs. The debt of the State to the Germany this year, shall be financed either by bank remained unchanged during September, the Credit National or by the cities or induswhile the loans and advances of the bank to tries of the devastated regions. private investors fell from 4,683,468,000 francs The following table gives some indication of to 4,559,497,000 francs in the same period. the general trend of business conditions in Developments in public finance were also France during the last few months. The deunimportant during August and early Sep- cline in stocks of coal at the mine since April tember. Late in August the Finance Minister is due in part to increased demand for French communicated to the public his proposals for coal resulting from decreased shipments from the "recoverable budget" for 1922. These Germany. FRENCH BUSINESS INDEXES. Coal. Raw cot- Raw ton im- Cotton silk imported stocks ported Total Total d P u r c o e - d. m St i o n a c t e k s. s 1 I c m on t p i s f o o o u r n r m t . e p d - fo s t r u i o m c n o p . n - - Ha a v t re.l fo s t r u i o m c n o p . n - - imports. exports. o N f p u l u m o n y e b e m e d r receiving State or Thou- municisands of Thou- Thou- pal aid.1 Thousands of metric tons. M to e n tr s i . c b 5 a 0 l e k s il o o f - M to e n tr s i . c s m an e d tr s i o c f s m an e d tr s i o c f grams. tons. tons. 1913, average. 3,338 1,558 27,42S 274 629 3,685 1,840 1920, average. 2,025 279 2,022 19,576 225 390 4,245 1,039 2 39,522 1921. January... 2,352 879 1,738 26,393 200 161 3,702 1,117 71,774 February. 2,137 1,177 14,199 198 97 2,579 1,414 89,289 March 2,255 1,256 10,323 185 73 2,827 1,069 88,382 April 2,257 1,566 1,066 12,696 167 251 2,652 1,154 75,569 May 2,108 1,363 731 7,709 169 161 2,250 1,168 3 60,362 June 1,762 1,190 608 14,014 136 174 2,047 1,405 3 55,439 July 2,280 1,256 131 2,164 1,194 s 37,226 August 132 3 30,645 1 End of month. 2 End of December, 1920. 3 Provisional. ITALY.1 trial development was in a rudimentary stage. The new Italian customs tariff was enacted Tariff controversy during the past few years in by a royal decree of June 9, 1921, and although Italy has centered about the question of it is still subject to revision by Parliament, whether the old form of a "general" tariff subwas made effective on July 1. The Govern- ject to modifications by treaty should be conment was prompted to resort to this emergency tinued or whether a tariff with a double series method of legislation by the enactment of new of maximum and minimum duties should be tariff measures in other countries and the can- instituted. The Royal Commission, appointed cellation of commercial treaties by Spain, in 1913 for the study of the tariff, recom- Switzerland, and Rumania. It was deemed mended the latter system in accordance with necessary to secure a basis for the negotiation the unanimous demand of the industrial of new treaties without delay, and also to pro- groups of the country. Similar recommendavide for Italian industries such protection tions were made by several parliamentary and against foreign imports as could no longer be Government committees which have taken up adequately offered by the old tariff. The the problem since 1917. Agricultural interests, tariff which was in existence prior to July of on the contrary, and in particular those of this year was, except for a few minor changes, southern Italy, have insistently demanded the the one enacted in 1887, when Italy's indus- continuation of the old system of a general tariff and commercial treaties. This system i Italian price, trade, and financial statistics will be found on pp. was considered to be best calculated to pro- 1227,1231, 1258. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1192 FEDERAL, RESERVE BULLETIN. OCTOBER, 1921. mote the export of agricultural products. lire per kilogram has been established on arti- The Royal Commission of 1913, with a view to ficial silk, the production of which has develthe encouragement of agricultural exports, had oped in Italy during the last 15 years. With recommended "a limited preferential treat- regard to the other textiles, the new tariff is ment to be granted wherever necessary in characterized by increased protection for the order to preserve foreign markets for Italian finer grades of yarns and tissues and less proagriculture." In the end it was decided to tection for the coarser grades. Increased duties continue the old form of tariff out of considera- have been imposed on most chemical products, tion for agricultural interests. Accordingly, including dyestuffs, but imports of fertilizers the new tariff is a general tariff and will serve are either free or subject to low duties. Other as a basis for negotiating commercial treaties. increases have been made in the rates for Except in this regard, the new tariff is funda- tanned hides, leather, and shoes (imports of mentally based on the recommendations of the raw hides remaining free), and glass and pot- Royal Commission and embodies the results of tery. As measures of protection for agriculthe studies which it carried on for several years. tural interests, import duties have been imposed The classification adopted in the tariff is, on on live stock and poultry and those on wine the whole, merely a reproduction of the one have been increased. The basic rates estabrecommended in the report of the commission, lished by the new tariff are the minimum rates and when compared with the classification of recommended in the schedule of the Royal the old tariff of 1887 reflects the changes which Commission. have taken place in Italy's situation in the Under the new law the Government is emcourse of the last 30 years. While the old powered to increase these basic rates in accordtariff contained 472 main headings, the new ance with changes in the comparative costs of one contains 953 and, if the subdivisions are production in Italy and abroad. The extent of taken into account, includes about 3,000 en- such increases is indicated by an elaborate tries. New detailed specifications have been series of " coefficients." The conditions which introduced for almost all classes of goods; in have determined the various coefficients are particular for metals and textiles. Ferroalloys, essentially of a temporary nature. The highest raw iron, and steel bars and wires and tubes coefficient on the list, that for cast iron, which are now classified in over 70 subdivisions, while is 2.5, indicates an increase of 250 per cent in the old tariff they were grouped in three. over the basic rate which is 1.25 gold lire per A very elaborate classification has also been 100 kilograms. This was determined by the adopted for machinery, machine tools, scien- high prices of imported coal and the resulting tific instruments, and automobiles. Hemp, disadvantages of Italian producers of cast iron, linen, and cotton yarns and cotton tissues have as compared with German, Czecho-Slovak, and been classified in a great number of subdivi- French. The coefficients for machines and sions, according to quality. Chemical prod- machine tools (varying between 0.5 and 1.5) ucts are now grouped under 362 headings, as was dictated by the foreign exchange situation. compared with 206 headings in the old tariff. In the sale of these commodities Italy; competes The recommendations of the Royal Commis- with countries with a more depreciated cursion have also been followed for the most part rency than hers, while she must obtain the raw as regards increased protection of the products materials from countries on which the exchange of young industries and in particular of those rate is high. The coefficient for silk tissues (1) industries whose development was due to war is designed to protect the Italian product conditions—i. e., the iron and steel and chem- against German competition. ical industries. The much-debated question The Government is authorized, according to as to the advisability of the further develop- the decree, to modify the coefficients as condiment of Italy's cast-iron industry, an out- tions require. Although, strictly speaking, the growth of the war, was decided in favor of coefficients are determined by comparison of protection, and high import duties have ac- the costs of production in Italy and abroad, cordingly been established. Import duties on the ministerial report on the tariff seems to automobiles have been advanced, while export indicate that changes in the coefficients may duties on a number of domestic ores have been be made for other reasons such as to give increased. Imports of raw hemp, flax, jute, special protection to certain industries or to wool, and silk remain free from duty, while raw discriminate against countries which increase cotton is subject to a duty of 3 gold lire per 100 tariffs on Italian goods. It may be concluded, kilograms. Export duties on raw silk have therefore, that until commercial treaties have been removed and import duties on silk tissues been arranged on the basis of the new tariff, the revised upward. An import duty of 1^ gold latter, with its basic rates and coefficients, Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

OCTOBER, 1921. FEDERAL RESERVE BULLETIN. 1193 affords to the Government a weapon of eco- ernment has yielded to the requests of exportnomic defense analogous to a tariff with a ers and has decreased some export duties and double series of duties. removed others entirely. The most important additions to the "export free" list in 1921 GERMANY.1 have been textiles and textile manufactures, In a country like Germany, where a greatly excepting raw cotton and cotton cloth. depreciated currency acts as an automatic The taxes on exports yielded 2,237,000,000 barrier against an influx of imports, and the paper marks of revenue in the fiscal year 192p disparity between internal and external prices and 282,710,000 paper marks from April encourages exports, the chief problems in- through July, 1921. volved in the regulation of foreign trade are Because of the difficulties of trading with the prevention of the export of essential com- Germany, both German imports and exports modities and the restriction of imports to the were comparatively small last year. The Gerfoods and raw materials necessary for the man Government has recently published figcountry's existence. There has been no ures on the tonnage of the import and export thoroughgoing revision of the German tariff trade in 1920 and on the value of the export since the beginning of the war. The most im- trade. No official figures on the total value of portant alteration in German customs dutips imports in 1920 have been made available, has been the requirement, which became effec- however. The figures published show a great tive in July, 1919, that all duties must be paid falling off of trade in all commodity lines as in gold or its equivalent. Duties paid in paper compared with 1913. The decrease of exports marks are increased by an "agio" (Aufgeld), of textile and textile manufactures, of leather which is announced monthly and which varies and leather manufactures, of foods, and of with mark exchange. This "agio" contrib- minerals and metal manufactures are most uted an additional 1,844,654,956 paper marks striking. The decline in the exports of minerto the revenues of the German Government in als, metals, and textiles is, of course, due 1920. German imports are still carefully partly to the transfer of Alsace-Lorraine to regulated, however, and the "import free" list France. Among the imports the greatest is relatively short. The announced policy of decreases occur in the case of machinery, texthe Government is to allow the importation of tiles, chemicals, foods, and minerals. The folessential raw materials without license and to lowing table gives the tonnage of the chief license the importation of most half-finished group of German imports and exports for 1913 articles and finished articles not regarded as and 1920: luxuries. A similar policy is applied to exports. Prac- GERMAN FOREIGN TRADE. tically no raw materials may be exported. [In thousands of metric tons.] Half-finished goods are licensed for export if they are not needed within the country, and Imports. c P e e n r t Exports. Per the export of most finished articles is allowed. of de- o c f e n de t - 1913 1920 crease. 1913 1920 crease. The question of taxing goods exported from Germany arose early in 1920, when the Gov- Foods, etc 26,615 6,563 75 6,663 1,410 79 ernment began to refuse licenses for goods Minerals and mineral which it considered underpriced, and by a Ch o e il m s icals and dyes 4 2 1 , , 0 6 6 0 0 2 11,1 2 4 66 0 73 5 4 1 , , 9 85 0 6 3 1 2 1 , , 6 8 3 4 2 8 4 7 6 7 proclamation of April 17 an export tax was Textiles and textile 87 manufactures 299 87 426 78 82 established for a large number of commodities. Leather and leather 71 The rate of the tax varied from 1 to 10 per Pa m p a e n r u a f n a d c t p ur a e p s er manu- 21 17 19 54 10 82 cent ad valorem. The aim of the export G f la a s c s tu a re n s d . rglass manu- 113 80 29 543 277 49 duties was partly to prevent the withdrawal factures 17 14 246 118 52 Metals and metal manu- 18 of necessary goods from the domestic market factures 1,054 529 50 6,846 1,848 73 and partly to take for the Government part of Machinery 103 8 92 836 673 19 All other commodities... 984 143 85 1,384 917 34 the profits accruing to exporters from the higher prices prevailing abroad. An attempt Total 72,848 18,847 74 66,911 19,811 70 has been made to adjust the taxes to fluctuations in prices and in mark exchange, but The fluctuations of mark exchange during exporters have complained that the officials September tended further to discourage imcharged with these adjustments have been ports into Germany and to encourage the placeunnecessarily slow in discharging their duties. ment of orders for export. The average price With the decrease in foreign demand, the Gov- of the mark in New York during September was 0.96 cent, and the lowest price (on Sepi German price, trade, and financial statistics will be found on pp. tember 28) 0.78 cent. The further deprecia- 1228,1231,1259. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1194 FEDERAL KESEEVE BULLETIN. OCTOBER, 1921. tion of German currency in foreign markets No decision has yet been reached in regard was due partly to buying of grain and cotton to the method by which the revenue needed and partly to the reparations payment to the for Government expenses and payments on allies. reparations account shall be raised. During The payment of 1,000,000,000 gold marks on August a whole series of new taxes which reparations account was not accomplished would involve very considerable sacrifices without drawing heavily upon the resources on the part of German taxpayers were proof the Reichsbank. In the first place a large posed for the consideration of the Reichstag, amount of the silver, which the bank has held and some action upon further taxation probin a special account since the demonitization ably will be taken in the near future. of silver in Germany, was used to establish Speculation in both securities and commodcredit balances in New York, where it yielded ities has continued as a result of the recent about 50,000,000 gold marks, and in the second fluctuations in exchange rates. The Frankplace it was necessary to draw upon the gold furter Zeitung index for 25 stocks went to 239 reserve of the bank to the extent of almost on September 14, and its index number of 68,000,000 gold marks. The Reichsbank has wholesale prices rose to 1,777 on September 3. held between 1,090,000,000 and 1,092,000,000 The most important price increases took place gold marks since early in 1920, but the recent in the case of hops, potash, kainite, milk, lentils, payment so reduced the reserve that it stood peas, hay, tobacco, rolled plates, bar iron, steel at 1,023,708,000 gold marks on August 31. scrap, twine, linen yarn, and raw cotton. These inroads upon the resources of the There has been a definite increase in the price Reichsbank were necessary in spite of the fact of iron products in Germany in the last month that the Government had been making every or two. Prices of most iron products at the effort to increase its stock of gold for some time beginning of September equal or exceed the before the payments came due, by buying, rates fixed by the Eisenwirtschaftsbund last through the, Reichsbank and the post offices, May just before price fixing was abandoned, gold coins and gold by weight at special prices, although prices have gone much lower in the corresponding roughly to the value of the paper interim. mark in world markets. The Frankfurter According to the Prussian Chamber of Com- Zeitung publishes the following table, giving merce the increase of industrial activity in the prices which have prevailed since the 1st August again emphasized the fact that German of June: industries are undersupplied with coal. The GOVERNMENT PURCHASE PRICES. quantity of coal to be delivered to the allies by [In paper marks.] Germany is now being fixed by the Reparations Commission month by month. The totals Forl Forl vary from 1,600,000 tons to 2,200,000 tons. 20-mark kilogram gold fine In July, however, only 1,390,000 tons were piece. gold. delivered because France did not require all the coal and lignite to which she is entitled. June 1-11 1921. 260 37,000 The following table gives coal, lignite, and coke June 12-25 280 40,000 production in Germany in the first seven June 26-July 3 300 42,500 July 3-10 310 43,500 months of 1920 and 1921: July 11-31 320 44,600 Aug. 1-8 340 47,600 GERMAN COAL PRODUCTION.1 The prewar price of one kilogram of fine [In thousands of metric tons.] gold was 2,789 marks. According to this same paper these purchases of gold in the Coal. Lignite. Coke. open market brought in about 15,000,000 gold marks. 1920 1921 1920 1921 1920' 1921 The problem of further payments on reparations account is very much complicated by the January ] 10,329 12,009 8,643 10,071 1,925 2,350 recent decline in the exchange value of the February j 10,225 12,009 8,464 10,039 1,916 2,277 March i 10,150 11,460 7,920 9,876 1,871 2,442 mark. On the other hand, the agreement April ' 10,011 2 8,985 8,900 210,373 1,775 2 2,150 recently concluded in regard to German co- May 10,167 2 7,797 8,705 29,368 2,070 2 2,154 June ! 11,008 *8,688 9,572 210,055 2,075 2 2,086 operation in the rebuilding of the devastated July j 11,509 10,731 9,235 10,065 2,221 2,218 regions in France should help in solving the problem of future payments to France, at least. 1 Not including the Saar or the Palatinate. 2 Not including Upper Silesia. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

OCTOBER, 1921. FEDERAL RESERVE BULLETIN. 1195 THE NETHERLANDS. Labor costs in practically all lines are an increasingly adverse element in Netherlands Bank and other financial reports from the trade. The labor law enacted October, 1920, Netherlands indicate that there has been a which prescribed the 45-hour week for indusmaterial reduction in note circulation and trial workers, without privilege of working credits in the past three months. The course overtime except by express governmental of contraction has not been rapid, but a comauthority, has been subject to attack. A bill parison of the present volume of loans and notes is now before Parliament which proposes to of the Netherlands Bank with that of the first substitute by mutual agreement between emof the year clearly indicates the tendency toployers and employed a 48-hour week, with ward contraction. It has not been the policy privilege of working overtime. Meanwhile, of the bank to raise the discount rate in order there is no prospect of a more intensive producto accomplish this. It has viewed inflation not tion, and the continued high costs of producing, as a cause, but as an accompaniment of present together with the necessity for greater output, economic conditions, and as the direct consewhich serious foreign competition imposes on quence of conditions growing out of the war. home industries, are causing considerable mis- Therefore, a more closely related means of givings to manufacturers and economists alike. restricting the increase in loans has been sought An amelioration of the wage and price situain the exercise of a rationing policy, by which tion will probably follow upon the decline in fresh demands for credit were granted almost wholesale commodity prices which has set in exclusively for the purpose of increasing home and from adjustments which it is hoped will production. This attitude toward raising the come out of the conferences in which employbank rate has been also sliaped quite largely ers and employed are at present engaged over by the desire to avoid the adverse influence wage reductions. There has been some reacwhich an increased rate would exert on the altion, however, in the wholesale price decline. ready severe competition which Dutch trade and During May and June the wholesale index industry have to meet in other countries. The number was somewhat higher than that for bank feels that results have justified its course, April, but figures for July indicate a resumption as credits necessary for the economic welfare of of the downward course. A survey of prices in the country have been provided, and a decided the retail trade for 1920-21 is of interest in reduction in the price level has taken place. connection with the wholesale price index. The investment market has been well supplied with mone}7" for short-term loans, apparently through funds brought into the Nether- INDEX NUMBER OF WHOLESALE PRICES IN THE NETHER- LANDS AND OF RETAIL PRICES OF 29 ARTICLES.1 lands by foreigners on account of the political security of the country and the relative sta- [1913=100.] bility of the exchange value of the florin. Much of this " foreign money " (largely German Average marks), however, has not sought investment General Food retail Date. articles articles price of but has been held in the form of cash, with the (52). (32). 29 articles. consequence that a considerable amount of Netherlands currency has in effect been hoarded, and that actual circulation in the country has Year 1919. 299 287 210 been less than the volume of notes outstanding 1920. January 287 253 226 would indicate. February-.. 283 243 225 March 286 242 229 Business of all kinds has suffered from high April 292 248 233 prices. Prices are high, even aside from the May 293 250 239 June 294 256 242 difficulties arising out of the depreciation of July 296 263 241 August 288 253 238 the German mark in terms of Dutch florins. September.. 285 249 235 Especially is this true of the transshipment N O o ct v o e b m er ber.. 2 26 8 0 2 2 2 4 4 1 6 2 2 3 3 7 1 trade, which represents approximately 22 per December.. 233 221 222 Year.. 282 247 232 cent of the total imports and exports of the country. There has been considerable agita- 1921. January.. 213 202 207 tion about transshipment costs. The labor February. 196 196 188 March 187 189 180 costs in the handling of cargoes is such that if April 175 181 177 the port of Rotterdam were not so equipped May 178 182 172 June 179 185 168 as to make the labor element comparatively July 174 177 168 small, the port could not hold its trade in the handling of grain, coal, and bulk cargoes. 1 The wholesale price index has been revised to include 52 articles (32 food articles) instead of 49 and 31 as previously shown.. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1196 FEDERAL RESERVE BULLETIN. OCTOBER, 1921. Closely related to wages and prices is the CONDITIONS IN THE DUTCH EAST INDIES. status 01 unemployment. Figures taken from Conditions in the East Indian Colony are the official Maandschrift, showing the index of not regarded as favorable. In recent months unemployment in the most important indusalmost all the import trade has been carried tries for the year 1920, are compared with by the banks, and export trade has been those of the first quarter of the present year. nearly at a standstill on account of lack of Tabulated data for the succeeding months are orders from abroad. Prices of nearly all not available, but most recent reports are to export items, especially coffee and rubber, the effect that, roughly speaking, about 20 per have declined to prewar levels, involving cent of the laborers are without work and that great loss. The depression is complicated by strikes continue. internal conditions, particularly the falling off in revenues. Taxes levied upon greatly in- INDEX NUMBER OF UNEMPLOYMENT IN REPRESENTATIVE flated values are not now forthcoming, and INDUSTRIES IN THE NETHERLANDS. there is a large budget deficit necessitating a thorough revision of fiscal plans. Changes in the taxation scheme have been made by which Groups. Year, January, all classes of levy are affected, and, in addi- 1920. 1921. 1921. tion, temporary taxes on products have been instituted pending the coming into operation B D u ia il m d o in n g d t w ra o d r e kers 5 6 1 . . 2 8 1 8 4 6 . . 3 1 8 1 8 0 . . 2 5 J I 89.3 of permanent measures. These taxes, which Printing trade 0.9 1.4 1.9 2.3 press heavily at this time when industry Metal workers 1.5 4.1 5.2 5.1 Textile workers 3.2 7.9 14.8 13.9 without any extra burden is already in a diffi- C C i o g m ar m m er a c k i e al r s clerks 1 0 9 . . 1 6 38.6 0 4 0 4 . . 5 5 I 3 0 6 . . 8 4 cult position, will doubtless influence the move- Transport workers 5. 13.4 13.7 13.2 ment to curtail production which has ap- Clothing factory hands 2.2 11.6 8.2 3.5 Other groups 3.4 8.2 9.8 9.4 peared in some cases, notably that of rubber. All groups 5.8 13.8 13.5 11.5 The status of the sugar market is somewhat All groups, exclusive of diamond workers 4.6 11.9 11.7 9.5 less unfavorable than was expected. Only about 2,500,000 piculs1 of the 1921 crop remain to be marketed, and the prospects are that the THE TRADE BALANCE. entire crop will soon be sold. The net results, although they will be far below the total of Large decreases in both exports and im- 1920, are estimated as making a fair return, ports still characterize the total foreign trade and as averaging from 14 to 16 florins per picul. of the Netherlands, though in recent months Plans have matured for the establishment of there have been increased imports from Geran emergency bank in the Indies for the aid many, particularly manufactures of iron, steel, of agricultural concerns, especially tea and dyes, chemicals, and machinery. On the other rubber. The Government has declared its hand, Germany has not taken a correspondwillingness to support the bank by guaraningly large amount of Dutch exports. As a teeing a fixed amount in cases of eventual whole, imports tend more and more to come losses, and projects are before Parliament to within the limit of strict necessities, and are make the State guarantee for this purpose marked by decrease in raw materials, especially 5,000,000 florins. Though there has been little steel, grain, and cotton. The unfavorable actual stringency, the depression in the Indies balance shows steady improvement since March, is expected to be of longer duration than that the figure for July being the smallest of the which occurred in 1918, and local banks are in seven months with the exception of February, a less favorable position to render support. which was preceded and followed by the A table is attached showing the relative largest import balances of the current year. position of the Javasche Bank over an extended The total for January-July aggregates period. Notwithstanding the distance of the 548,709,000 florins, exclusive of gold and silver, Colonies from the area of the war, the Javasche for which there is an export balance amounting Bank, as guardian of Dutch East Indian to 40,519,000 florins. Comparison of totals finance, has had to meet many of the problems over any considerable period show that the which have confronted the European banks of growth of the unfavorable balance is beissue in their relations to their governments. coming characteristic of the Netherlands international situation. 11 picul equals 136 pounds. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

OCTOBER, 1921. FEDERAL RESERVE BULLETIN. 1197 PRINCIPAL ASSETS AND LIABILITIES OF THE JAVASCHE BANK ON THE LAST OF MARCH, 1915-1921, AND ON AUGUST I 1921. [In thousands of florins.] Mar. 31, Mar. 31, Mar. 31, Mar. 31, Mar. 29, Mar. 27, Mar. 26, Aug. 6, 1915. 1916. 1917. 1918. 1919. 1920. 1921. 1921. ASSETS. Gold 30,890 46,775 72,099 92,167 127,706 173,675 224,974 207,930 Silver 29,025 33,667 23,669 19,409 10,748 4,378 12,008 19,363 Total metalic reserve 59,915 80,442 95,768 111,576 138,454 178,053 236,982 227,293 Discounts,loans, and advances 72,104 54,834 56,534 80,231 174,662 186,736 190,937 168,586 Foreign bills 5,710 15,697 37,208 34,161 22,069 16,055 24,883 25,081 Securities and mortgages 8,347 8,716 8,546 8,224 8,077 8,494 7,416 7,515 All other assets 5,878 29,170 8,445 21,544 12,980 43,207 34,596 37,318 Tbtalassets 151,954 188,859 206,501 255,736 356,242 432,545 494,814 465,793 LIABILITIES. Capital 6,000 6, .000 6,000 6,000 6,000 6,000 6,000 6,000 Reserve fund 3., 119 2,761 3,175 3,162 3,644 3,942 3,982 4,913 Notes in circulation 118,085 144,883 157,946 180,755 210,776 314,315 325,809 305,628 Deposits 19,235 27,102 32,072 56,055 123,127 89,309 138,966 137,431 Bills payable 1,928 4,470 3,086 5,181 2,911 2,741 2,491 3,039 All other liabilities 3,587 3,643 4,222 4,583 9,784 16,238 17,566 8,782 Totalliabilities 151,954 188,859 206,501 255,736 356,242 432,545 494,814 465,793 PRINCIPAL ASSET AND LIABILITY ITEMS OF THE NETHERLANDS BANK. [In thousands of florins.] Metallic reserve. Advances Loans, to Govdiscounts, ernment Foreign Notes in Date. Gold. Silver. Total. adv a a n n d ces. b n e o a r i i n n - g biiis: ci t r i c o u n l . aterest. 1920. Aug. 30 636,340 16,530 652,870 407,259 3,205 46,484 1,026,033 Sept.27 636,347 17,732 654,079 415,859 478 39,435 1,030,310 Oct. 25 636,141 18,944 655,085 441,216 6,523 29,041 1,057,317 Nov.29 636,141 20,171 656,312 447,066 14,951 44,415 1,078,032 Dec. 27 636,141 21,190 657,331 444,428 13,832 52,754 1,072,145 1921. Jan.31 636,141 22,456 658,597 444,777 43,017 1,072,109 Feb. 28 636,141 20,392 656,533 407,872 14,573 35,992 1,053,417 Mar.29 621,034 16,687 637,721 408,336 14,740 18,708 1,036,816 Apr.25 610,977 14,434 625,411 440,165 14,916 39,502 1,043,276 May 30 605,965 13,065 619,030 408,969 13,493 48,695 1,029,565 June 27 605,969 12,331 618,300 374,971 1,276 49,234 991,929 July 25 605,969 11,159 617,128 392,002 13,138 48,583 1,012,790 Aug. 29 605,969 10,566 616,535 382,453 14,957 47, 894 1,004,129 silver currency of the Indies was leaving the INDEPENDENT CURRENCY FOR THE INDIES. country in considerable quantities because of As the Dutch East Indies has more and more its high silver value, and partly because during established its position as a country with a the war the demand for circulation medium favorable trade balance, the solution of the could not be met by importation of gold or problem of financial independence and a sepa- silver, the Government was compelled to rate currency which has long been considered authorize the bank to issue paper money of has become more urgent. A commission under small denominations, for which the bank was Dr. Vissering has been instituted to study the willing to provide the necessary cover. This requirements. The special difficulties attend- the Government regarded as unnecessary, since ing an actual separation of the currency, aside the note issue was intended to be only a temfrom the economic position of the Colony, will porary measure. The notes thus became a be the fluctuations in the value of silver, and kind of intermediary between bank notes and the existence already of a considerable amount State notes, and were not interchangeable with of special Indian paper money, small uncovered silver. Instead, however, of being temporary, notes of the Javasche Bank, which the Govern- their circulation has continued to increase from ment was forced to issue during the war. the first issue of 5,700,000 florins October 4, On account of the lack of silver money in 1919, to about 51,000,000 florins the middle of 1919, which was partly due to the fact that the April, 1921, and the original maximurn^of Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1198 FEDERAL RESERVE BULLETIN. OCTOBER, 1921. 10,000,000 florins has been increased to 400,- CHANGE OF NAME. 000,000 florins. In the process of separation Alameda Savings Bank, Alameda, Calif., to Bank of Alameda. of the Indian monetary system from that of the Netherlands, the position of these notes will BANK EE OPE NED. have to be defined, perhaps by a gradual change Guaranty State Bank, Troup, Tex. to silver money. WITHDEAWALS. Gold currency, represented by the 10-florin Farmers State Bank, Cozad, Nebr. piece, has not circulated to any extent in the Citizens Bank, Billings, Okla. Colony, although from time to time large quan- CONVEESIONS. tities of gold have been sent from the Netherlands to the Javasche Bank to stabilize ex- The First State Bank, Oklahoma City, Okla., has converted into a national bank. change conditions created by the Indies' large The Metropolitan Bank, New York, N. Y., has converted into a national bank. export balances. This practice of exporting CONSOLIDATION. gold for stabilization of exchange with the Colony has, for the present at any rate, been The Stockgrowers State Bank, Pawhuska, Okla., has consolidated with the Citizens National Bank of Pawhuska. abandoned. The Bank of Netherlands decided a year ago not to seek further to maintain the VOLUNTAEY LIQUIDATIONS. par rate by gold exports, both because the rate Farmers & Merchants Bank, Boonton, N. J. First State Bank of Quinlan, Quinlan, Tex. was dominated by abnormal world conditions to such extent that it seemed doubtful whether it could be thus maintained, and whether it would be of benefit to the community if Fiduciary Powers Granted to National Banks. achieved. The rates of exchange between the Dutch East Indies and the Netherlands the The applications of the following banks for permission past two years have fluctuated between 0.95 to act under section 11-k of the Federal Reserve Act were approved by the Board during the month ending Sep and 1.04| Dutch florins for 1 colonial florin. tember 30, 1921. DlSTEICT NO. 1. State Banks and Trust Companies. Trustee, executor, administrator, registrar of stocks and bonds, guardian of estates, assignee, receiver, and committee of estates ADMISSIONS. of lunatics: ' First National Bank, Attleboro, Mass. The following list shows the State banks and trust companies which were admitted to membership in the DISTEICT No. 2. Federal Reserve System during the month ending September 30, 1921, on which date 1,617 State institutions Trustee, executor, administrator, registrar of stocks and bonds, guardian were members of the system, having a total capital of of estates, assignee, receiver, and committee of estates of lunatics: Metropolitan National Bank, New York, N. Y. $583,190,000, total surplus of $528,699,084, and total re- Suffolk County National Bank, Riverhead, N. Y. sources of $9,950,987,334. First National Bank, Butler, N. J. DISTEICT No. 3. Capital. Surplus. Total Guardian of estates, assignee, receiver, and committee of estates of lunatics: First National Bank, Stroudsburg, Pa. District No. 2. Boonton Trust Co., Boonton, N. J $100,000 $50,000 $150,000 DISTEICT NO. 5. District No. 4. Trustee, executor, administrator, registrar of stocks and bonds, guardian of estates, assignee, receiver, and committee of estates of lunatics: The Minerva Banking Co., Minerva, Pulaski National Bank, Pulaski, Va. Ohio 50,000 3,084 395,253 Central National Bank, Richmond, Va. First-Tyler Bank & Trust Co., Sistersville,W.Va 200,000 100,000 2,721,283 DISTEICT NO. 7. District No. 6. Trustee, executor, administrator, registrar of stocks and bonds, guardian Citizens Bank of Claxton, Claxton, Ga. 30,000 3,000 134,759 of estates, assignee, receiver, and committee of estates of lunatics: Greenville Banking Co., Greenville, First National Bank, Montpelier, Ind. Ga 65,000 100,000 574,205 K M h o i r n g e a n B C an o k u i n n t g y C B o a ., n R k, h M in a e d , i G so a n, Ga.. 5 2 0 5 , , 0 0 0 0 0 0 180,363 DISTEICT NO. 8. District No. 7. Trustee, executor, administrator, registrar of stocks and bonds, guardian of estates, assignee, receiver,'and committee of estates of lunatics: Strawberry Point State Bank, Straw- Exchange National Bank, Little Rock, Ark. berry Point, Iowa 50,000 10,000 785,779 Victor Savings Bank, Victor, Iowa 50,000 30,000 520,256 DISTEICT NO. 9. District No. 12. Trustee, executor, administrator, and guardian of estates: First National Bank, Blooming Prairie, Minn. Mission Savings Bank, San Francisco, Calif 500,000 28,000 7,387,089 DISTEICT NO. 12. Commercial Bank, San Luis Obispo, Calif 700,000 50,000 5,348,620 Trustee, executor, administrator, registrar of stocks and bonds, guardian Bank of Commerce, Oregon City, Oreg. 100,000 26,000 1,064,959 of estates, assignee, receiver, and committee of estates of lunatics: Seaboard National Bank, Seattle Wash. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

OCTOBER, 1921. FEDERAL RESERVE BULLETIN. 1199 RULINGS OF THE FEDERAL RESERVE BOARD. Purpose of original negotiation determines eligibility and drawn upon and accepted by a, tobacco growers' classification of paper. cooperative marketing association should be The Board recently ruled that a note of a classed as agricultural paper eligible for redisgrain dealer or other purchaser of grain given count at Federal Reserve Banks with a mato a grower in whole or part payment for grain turity up to 6 months, or should be classed as purchased for resale is commercial paper, even commercial paper eligible for rediscount only though the grower subsequently discounts the when its maturity is not in excess of 90 note and uses the proceeds for an agricultural days. purpose, and that the same principle applies to The association was a nonstock and nona draft drawn by the grower and accepted by profit corporation, and its members consisted the purchaser in whole or part payment for exclusively of growers of tobacco who had grain purchased for resale. agreed to sell and deliver to the association all The principle upon which this ruling is predi- the tobacco grown by or for them or acquired by cated, and which has been enunciated in pre- them as landlord or lessor. The agreements vious rulings of the Board, is that the purpose between the growers and the association proof the original negotiation of an instrument de- vide for the pooling of the tobacco each year termines the eligibility and classification of the by type and grade and for the distribution of instrument, and that any subsequent negotia- the proceeds of each pool pro rata among the tions are immaterial from this standpoint. In growers who have contributed to that pool. other words, the transaction out of which an The association is given power to sell the toinstrument arises in the first instance deter- bacco in such form and upon such terms as mines its eligibility and classification, irrespec- may be deemed most advantageous to the tive of the nature of any transaction in which growers, it being contemplated that a part of the instrument may be negotiated subsequently. the tobacco will be sold without being redried For example, if a note is given in the first in- and that such of the tobacco as can not be sold stance in payment for securities, other than at a reasonable price in that form will be rebonds or notes of the United States, the note is dried and stored by the association and sold ineligible for all time and will not be made eli- as there is a demand for redried tobacco. It gible by the payee's subsequent negotiation in was stated to be necessary for the association a commercial or agricultural transaction. to make advances to the growers at the time The original negotiation of a dealer's note the growers deliver their tobacco to the assogiven to a farmer in payment for goods purchased ciation, and it was proposed that the associafor resale takes place when the dealer delivers tion should make these advances by accepting the note to the farmer, and the purpose of this drafts drawn upon it by the growers, the original negotiation is to finance the purchase amount of the drafts to be equal to a fixed perand resale of a part of the dealer's stock of centage of the estimated market value of the goods. This purpose is, of course, a commer- tobacco delivered. These drafts were to be cial rather than an agricultural one, and the discounted by the drawers with their own incase does not come within the intent of that dorsements at their local banks. provision of the Federal Reserve Act which per- The question upon which the Federal Reserve mits the discount by Federal Reserve Banks of Board was asked to rule is whether drafts so paper with a maturity in excess of 90 days when drawn and so discounted could be eligible for drawn or issued for agricultural purposes. rediscount with Federal Reserve Banks as agri- Such a note should not, therefore, be classed as cultural paper with maturities not in excess of agricultural paper eligible for discount at Fed- 6 months, or could be eligible for rediscount eral Reserve Banks with a maturity not in ex- only as commercial paper with maturities not cess of 6 months from the date of discount, but in excess of 90 days. should be classed as commercial paper which is The Federal Reserve Board ruled some time eligible for discount only when maturing within ago that drafts drawn upon and accepted by 90 days from the date of the discount. cooperative marketing associations, in transactions similar to those between the growers and the tobacco growers' cooperative marketing Growers' drafts accepted by cooperative marketing asso- association in the instant case, were not trade ciation. acceptances within the meaning of the Board's The Federal Reserve Board recently con- regulations, for the reason that looking through sidered the question of whether certain drafts the form of these transactions and at the sub- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1200 FEDERAL RESERVE BULLETIN. OCTOBER, 1921. stance thereof the drafts represented advance- when the grower discounts it at his local bank. ments made by the associations to the growers This ruling is therefore believed to be entirely rather than partial payments of the purchase consistent with the foregoing ruling to the price of the commodities delivered to the effect that the original negotiation of a note or associations. Although the Board was not draft determines for all time its eligibility and asked at that time to rule upon the particular classification. question raised by the tobacco growers' cooperative marketing association, the Board did, New National Bank Charters. in order to define the scope of its ruling, intimate that the drafts then under consideration, The Comptroller of the Currency reports the following increases and reductions in the number and capital of although not trade acceptances, would be national banks during the period from August 27 to eligible as agricultural paper, provided that September 23, 1921, inclusive: the drawers discounted the drafts at their local banks and used the proceeds for agricultural purposes, and provided, also, that the drafts complied in other respects with the requirements of the law and the Board's regula- New charters issued tions. Restored to solvency Increases of capital approved A further consideration of the subject has Aggregate of new charters, banks restored to confirmed the Board in the views expressed in solvency, and banks increasing capital 2,180,000 Liquidations 2,705,000 its former ruling, and the Board ruled, there- Reducing capitall 50,000 fore, that in its opinion drafts, with maturities C To o t n a s l o l l i i q d u a i ti d o a n ti s o n o s f a n n a d t i r o e n d a u l c ti b o a n n s k o s f c u a n p d i e ta r l act of 2,755,000 not in excess of 6 months, drawn by the grow- Nov. 7,1918 ers, accepted by the tobacco growers' coopera- Aggregate increased capital for period tive marketing association, and discounted by Reduction of capital owing to liquidations, etc. the growers with their indorsements, in accord- Net decrease 575,000 ance with the statement of facts herein coni Includes one reduction in capital of $50,000 incident to a consolidation tained, would be technically eligible for re- under act of Nov. 7,1918. discount at Federal Reserve Banks as agricultural paper when offered by member banks, Commercial Failures Reported. provided that the growers use the proceeds of the drafts for agricultural purposes, and pro- The increase in number of failures over last year's comparatively moderate mortality continues sharply defined, vided, also, that the drafts comply in other ftie 994 defaults reported to R. G. Dun & Co. during three respects with the requirements of the law and weeks of September largely exceeding the 418 insolvencies the Board's regulations. of the corresponding period of 1920. The returns for August, the latest month for which complete statistics are As indicated in the ruling headed " Purpose of available, disclose 1,562 commercial failures, involving original negotiation determines eligibility and $42,904,409 of liabilities. Both as to number and amount classification of paper," published simultane- the August defaults are well below the high levels of the present year, but comparison with the figures of last year ously with the present ruling, if the drafts still shows largp increases, the insolvencies of August, 1920, drawn by the growers had been drawn upon and having numbered only 673 for $28,372,895 of indebtedness. accepted by a tobacco dealer in payment for Examined according to Federal Reserve districts, the tobacco purchased under an absolute sale at a August statement reveals more failures than in that month of last year in all of the twelve districts, and only in the price definitely fixed at the time of the acceptsecond and third districts are the liabilities smaller than ance, the drafts would have to be classified as those of August, 1920. commercial rather than agricultural paper. In the case under consideration, however, FAILURES DURING AUGUST. while the form of the transactions between the grower and the acceptor of the drafts is a sale, Number. Liabilities. in substance it is only a consignment. The District. grower rather than the association takes all 1921 1920 1921 1920 the risks incident to resale, since the association does not agree to pay any fixed price, but only First. 118 58 $2,821,841 $780,210 Second 216 179 9,685,653 15,009,838 such price as isequivalent to the average price Third . 68 33 2,090,756 3,066,914 realized by the association upon the sale of F F o if u th rt . h .. 1 9 3 8 7 4 7 0 0 2 5 , , 6 1 5 8 8 3 , ,7 0 0 1 7 7 1,3 6 4 9 7 1 , , 0 7 4 8 5 5 all the tobacco in that particular pool. Conse- Sixth 198 42 4,489,443 2,605,429 Seventh " 204 86 4,123,520 3,177,188 quently, the acceptance of each draft by the Eighth. 67 31 2,200,012 288,672 association is merely a loan of the association's N Te in n t t h h 7 7 2 5 1 1 8 1 1,4 9 5 6 8 6 , , 5 8 7 9 6 6 8 8 5 5 , , 5 7 1 3 5 5 credit to the grower, rather than a payment on Eleventh 137 33 1,991, 284 411,027 Twelfth 172 72 5,234,704 823,537 account of the purchase price of the tobacco, and the first negotiation of the draft takes place Total 1,562 673 42,904,409 28,372,895 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

OCTOBEE, 1921. FEDERAL RESERVE BULLETIN. 1201 PRICE MOVEMENT AND VOLUME OF TRADE. WHOLESALE PRICES IN THE UNITED STATES. The trend of prices in August was commented on in the BULLETIN for September. Comparing the recent price situation with that of a year ago, the Federal Reserve allcommodities index shows a drop of 91 points between August, 1920, and 1921. Expressed in a percentage this means a decline of 39 per cent. The index of the Bureau of Labor Statistics records a drop of the same percentage during the period, although the level of prices (when compared with 1913) works out somewhat higher in the case of the Department of Labor index than in that of the Federal Reserve Board. The most extreme price reductions have occurred in agricultural lines, the percentage decrease between August of last year and this year amounting to over 50 per cent. Although the decline in prices of animal products (including wool and hides) has not been so great, this group of commodities is nearer the prewar level than any other group. Mineral products have been reduced less than any other group of raw materials (somewhat less than 35 per cent), and forest products are about 43 per cent lower than a year ago. Contrasting the rate of decline in raw materials with that in finished consumable goods, it appears that the former as a whole have declined between 40 and 45 per cent, while consumers7 goods as a whole are probably not more than 30 to 35 per cent lower than a year ago. INDEX NUMBERS OF WHOLESALE PRICES IN THE UNITED STATES 1919-1921 CONSTRUCTED BY THE FEDERAL RESERVE BOARD FOR THE PURPOSE OF INTERNATIONAL COMPARISON AVERAGE PRICE LEVEL OF 1913 = 1OO 300 | , , 1 1 1 , 1 n 1 , , , , 1 1 1 , 1 , , , 300 280 ALL COMMODITIES 280 - — — GOOD? IMPORTED - PRODUCERS GOODS 260 4- 260 240 \ \ 240 y 220 1 ,\ -A 220 200 i f \ \ A \ \ K 200 5180 --* i V \\ \ \ \ \ \ 1805 \ | 160 \ 160| \ \ V |i40 \ \ •si 120 —v- '•• 120 v 100 100 80 80 J. A. S. 0. N. D J. F. M. A. M. J. J. A. S. 0. N. D. J. F. M. A.M. J. J. A.S. J0. .A N. .S 0. .0. N. D J. F. M. A. M. J. J. A. S. 0. N. D. J. F. M, A. M. J. J. A S. 0. N. D YEAR 1919 1920 1921 1919 1920 1921 YEAR Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1202 FEDERAL RESERVE BULLETIN. OCTOBER, 1921. INDEX NUMBERS OF WHOLESALE PRICES IN UNITED STATES—CONSTRUCTED BY THE FEDERAL RESERVE BOARD FOR THE PURPOSE OF INTERNATIONAL COMPARISON.1 [Average price for 1913=* 100.] Goods Goods Goods Raw Producers' Consumers' All com- Date. produced. imported. exported. materials. goods. goods. modities. 1919, average 209 174 214 209 198 207 206 1920, average 236 191 227 235 237 229 233 1920, August 238 182 229 237 235 229 234 1921. January 166 114 142 164 166 159 163 February 156 113 135 152 158 152 154 March 152 114 125 146 153 151 150 April 145 109 121 136 148 147 143 May 145 105 125 139 145 144 142 June 141 102 122 133 140 144 139 July 144 103 122 134 136 152 141 August 145 104 123 133 133 157 143 i The index number of the Federal Reserve Board has been constructed primarily with a view to international comparisons of wholesale prices. Due to the difficulties connected with the collection of foreign prices, the foreign index numbers are still incomplete, but in spite of this it has seemed advisable to publish the American number, since it contains certain classifications of commodities not otherwise available, namely, the prices of the important goods imported into this country, and of goods largely exported, and compares them with the general price level in the United States. The number has been published monthly since May, 1920, but is computed for the years 1913, 1919, and the first of 1920 as well. For detailed information regarding the makeup of the number, reference may be made to the FEDERAL RESERVE BULLETIN for May, 1920, pages 499-503. The commodities included in the different groups are listed there with exact specifications and markets indicated. The "weights" assigned to the different commodities in constructing the index numbers are also given in detail. Revisions in prices or weights appear in BULLETINS for June, 1920, and June, 1921. The index of " goods produced" consists of 74 quotations (30 raw materials, 24 producers' and 20 consumers' goods). These include agricultural products (such as grains, live stock, and textiles), minerals, and lumber, among the raw materials; yarns, leather, semifinished steel products, refined oils, chemicals, building materials, etc., among the producers' goods; and potatoes, meats, flour, rice, dairy products, cotton and woolen cloths, boots and shoes, and kerosene among the consumers' goods. The index of "goods imported" consists of 18 quotations (9 raw materials, 7 producers' and 2 consumers' goods). It includes Egyptian cotton, Australian and South American raw wool, Japanese and Chinese silk, South American hides, Straits tin, and Canadian lumber among the raw materials; plantation and Para rubber, Chilean nitrate, cane sugar, burlap,sisal, etc., among producers' goods; and tea and coffee for consumers' goods. Leading American exports are included in the index of prices of "goods exported," which is made up of 40 quotations (17 raw materials, 12 producers' and 11 consumers' goods). Grains, tobacco, cotton, copper, coal, pig iron, petroleum, and lumber make up the list of raw materials; vegetable oils, leather, semifinished metal products, refined oils, and chemicals the producers' goods; and wheat flour, refined sugar, pork products, coffee, cotton cloth, boots and shoes, and kerosene the consumers' goods. The index nu. mb.e..r s . of_ "ra..w... materials,," ""ppnr od"ucers' goods," and "consumers' goods" consist of the commodities mentioned above which fall into these classes, whether they are of domestic or foreign origin. The raw materials group includes 39 quotations, the producers' goods 29, and the consumers' goods 22. The "all commodities" index is obtained by combining the group indexes of domestic and foreign goods. It consists of 90 different quotations. The quotations are obtained from representative trade journals and private firms. About half of them are the same that are used by the Bureau of Labor Statistics in its larger compilation of prices and are furnished to the Board by that bureau. INDEX NUMBERS OF WHOLESALE PRICES IN THE UNITED STATES FOR PRINCIPAL CLASSES OF COMMODITIES—BUREAU OF LABOR STATISTICS—REGROUPED BY FEDERAL RESERVE BOARD. 2 [Average price for 1913= 100.] Raw materials. Year and month. Producers' Consumers' All comp A ro t g u d r r i u c a c u l t l s - . p A ro n d i u m c a t l s. pr F o o d r u e c st ts. p M ro i d n u er c a t l s. m To a t t a e l r i r a a l w s. goods. goods. modities. 1920. August 259 181 351 265 251 238 250 250 1921. January , 155 119 245 220 175 169 182 177 February , 145 114 225 207 164 155 171 167 March , 136 116 210 197 157 149 168 162 April , 126 106 205 189 149 143 159 154 May 131 104 205 188 149 140 153 151 June 125 102 204 182 145 137 152 148 July 122 109 203 177 145 134 153 148 August , 123 112 200 175 145 132 162 152 upon the same number, forest products based upon 11 quotations, and mineral products bafed upon 27 quotations. The FEDERAL RESERVE BULLETIN for October, 1918, contains a list of the commodities in each group. The weights are the same as those used by the Bureau of Labor Statistics. In order to give a more concrete illustration table have been obtained from the records of of actual price movements, there are also pre- the United States Bureau of Labor Statistics; sented 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. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

OCTOBER, 1021. FEDERAL RESERVE BULLETIN. i203 AVERAGE MONTHLY WHOLESALE PRICES OF COMMODITIES. [Average price for 1913=100.] Co C r h n i , c N ag o o . . 3, Co N tt e o w n , O m r i l d e d an li s n . g, no W M rt h i h e n e a n r t n e , a N p sp o o r l . i i 1 s n . , g, W r h e C d e h a i w t c , a i N n g t o o e . . r 2 , , g C o a o C t d t h l t e i o , c a s c g t h e o o e . i r c s e , , s H t h e i e d e a e rs v s , , y C p 'n h a a c i t c k i a e v g r e o s, . Year and month. p A b ri v u c e s e h r a p e g l e . e r p R t r i e i v c l e a e - . p A p r v i o c e u e r n a p d g e . e r p R t r i e i v c l e a e - . p A b r u i v c s e e h r a e p g l e . e r p R t r i e i v c l e a e - . p A b ri u v c e s e h r a e p g l e . e r p R t r i e i v c l e a e - . p p A r o i v c u 1 e e 0 n r p 0 a d g e s e . r p R t r i e i v c l e a e - , v p A p ri o v c e u e r n a p d g e . e r p R t r i e i v c l e a e - . 1913 $0.6155 100 $0.127C 100 $0. S735 100 $0.9S63 100 $S. 5072 100 SO. 1839 100 1919 1.5800 257 . 31X5 251 2.5660 294 2.5370 239 17.4957 206 3931 210 1920 1.396« 227 .3301 260 2.5581 293 2.5225 256 14.4850 170 .3122 174 1920. August 1.5310 249 .3380 266 2.5500 292 2.4735 251 15.3500 180 .2850 155 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 l.*9194 195 9.3125 109 . 1363 71 March . - . 61S0 100 .11C5 87 1.6135 185 1.6798 170 9.5625 112 .1150 63 April. ,. .5547 90 .1116 88 1.4059 161 1.3869 141 8.7188 102 . 1019, 55 Mav ,6090 99 .1178 93 1.4923 171 1. 5680 159 8.4250 99 . 1188 65 June .6075 99 .1101 87 1.4994 172 1.43S4 146 8.093S 95 .1395 76 Julv .6019 98 .1147 90 1.4384 165 1.2291 125 8.4063 91) , liiSS 75 August .5578 91 .1290 102 1.3953 160 1.2373 125 8.7750 103 .1405 76 H C og h s ic , a li g g o h . t, e g W a r s a t o d e o e r l n s , , m O sc h a o i r u o k r , e e d t H s , . Hem Y lo o c r k k , . New Y N e f e l l w l o o o w r Y in p o g i r , n k e . , r C u o s n p a P l o o , i t f t b t m a s i t t b i u n m u m e r i , g i n f n h e . o . s o u , . s b , .P C o o s c p a C a l ^ , h t o b o l a i u n t t m t u m a m b s i , u i n n { s e . . o s o , u . s b , Year and month. p A r v ic e e r a p g e e r R ti e v l e a- p A ri v c e e r a p g e e r R ti e v l e a- p A ri v c e e r a p g e e r R ti e v l e a- p A r M i v c e e f r e a p e g t e e r R ti e v l e a- p A ri v c e e r a p g e e r R ti e v l e a- p A ri v c e e r a p g e e r R ti e v l e apounds. price. pound. price. M feet. pnco. m t a u n r u e f d a . c- price. short ton. price. short ton. price. 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 14. 7106 174 .9712 203 56.6667 234 145.4167 326 6.0433 458 5.8891 375 1920. August , 15.7350 186 .8727 185 57,0000 235 157.0000 352 10.6300 805 8.6300 549 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 216 April . . 8.8563 105 . 5273 112 41.0000 169 91.0000 204 2.2500 170 3.3625 214 May 8.4550 100 .5091 10S 41.0000 169 91.0000 204 2.1310 161 3.4940 222 June 8.2500 98 .4909 104 41.0000 169 91.0000 204 1.9000 144 3.4250 218 July 10.2000 121 .4909 104 37.5000 155 91.0000 201 2.0750 157 3.2000 204 August 10.3950 123 .4727 100 37.2500 154 92.0000 206 2.1300 161 3.0600 195 s C to o v a t e l i , d , a N e n w e t w h at r e a Y r c . o it r e k , , v C il o l k e e , , a C t D fu n r n n e a ll c s e - . C e N o l p e e p c w t e r r o Y , l i y o n t r g i k c o . , t, d N e L s e e i w a lv d e , Y r p i o z i r g e k , d . , P P et e r n o a n l t e s w u y m e lv l , l a s c n . r i u a d , e, S P h M i e g a n h i a r o n o n g n i o , n g b V a a a s n l i l c d e , y, at furnace. 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 9.4265 186 10.8153 443 .1797 114 .0808 184 5.9750 244 42.2692 287 1920. August 9.6087 190 15.5500 637 .1900 121 .0898 204 6.1000 249 48.1000 327 1921. January . .. 10.6373 210 5.5313 227 .1288 82 .0497 113 5.7750 236 30.0000 204 10.6382 210 5.1875 213 .1288 S2 .0468 106 4.1875 171 27.5000 187 March .. 10.6382 210 5.0000 205 . 1223 78 .0405 92 3.0000 122 24.2000 16ft April 10.1380 200 3.7188 152 .1247 79 .0428 97 3.1875 130 22.8750 156 May 10.2910 203 3.3250 136 .1283 82 . 0495 133 3.3500 137 22.0000 150 .Turie 10.3900 205 3.0938 127 .1284 82 .0451 103 2.6250 107 20. 7500 141 July.. 10.5048 208 2.9063 119 .1253 80 .0440 100 2. 2500 92 19.3750 132 August 10.6036 210 2.8000 115 .1173 75 .0440 100 2.2500 92 18.2000 124 i On Toledo market, average for last six months of 1913. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1204 FEDERAL, EESERVE BTJLLETltf. OCTOBER, 1921. AVERAGE MONTHLY WHOLESALE PRICES OF COMMODITIES—Continued. Cotton yarns, Leather, sole, Steel billets, Steel plates, Steel rails, Worsted yarns, northern cones, hemlock, No. 1, Bessemer, tank, Pitts- open hearth, 2-32's crossbred, 10/1 Boston. Chicago. Pittsburgh. burgh. Pittsburgh. Philadelphia. Year and month. Average Rela- Average Rela- Average Rela- Average Rela- Average Rela- Average Relaprice per tive price per tive price per tive price per tive price per tive price per tive pound. price. pound. price. long ton. price. pound. price. long ton. price. pound. price. 1913 ' $0.2213 100 $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 .6245 282 .5342 189 56.2596 218 .0328 222 53.8269 179 1.8250 235 1920. August .6310 285 .5500 195 61.0000 327 .0325 220 54.5000 182 1.7500 225 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 April .2388 108 .3700 131 37.5000 145 .0210 142 47.0000 157 1.2000 155 May . .2491 113 .3700 131 37.0000 143 .0220 149 47.0000 157 1.2500 161 June .2545 115 .3700 131 37.0000 143 .0195 132 47.0000 157 1.2000 155 July .2411 109 .3500 124 32.2500 125 .0185 125 47.0000 157 1.1500 148 August .2586 117 .3400 121 29.6000 115 .0178 120 47.0000 157 1.1500 148 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 v a a s e g s o , . Cof N fe e e w , R Y io o , r N k. o. 7, st ( a 1 n 91 d 8 a w , r d s a t r a p ) n , a d te a n rd ts Ham C s h , i c s a m g o o k . ed, Ill 1 u N 5 m 0 e ° i w n fi a Y r t e i o n t r g e k s o . t i , l, g N r e a w S n u u Y g la a o t r e 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 $0.1233 100 $0.0427 100 1919... . 2333 180 .1785 160 11.9982 262 .3433 207 .2004 163 0894 209 1920 .2304 178 .1198 108 12.6750 277 .3340 201 .2629 213 .1267 297 1920. August . .2550 197 .0936 84 12.2350 267 .3725 224 .2600 211 .1490 349 1921. January .1738 134 .0669 60 9.6250 210 .2488 150 .2900 235 .0757 177 February .1600 124 .0672 60 9.1813 200 .2600 156 .2750 223 .0709 166 March. .1625 125 .0639 57 8.7300 190 .2725 164 .2625 213 .0784 184 April .1650 127 .0600 54 7.9500 173 .2763 166 .2540 206 .0725 170 May .1650 127 .0621 56 8.7450 191 .2725 164 .2400 195 .0632 148 June... . . .. .1600 124 .0666 60 9.0063 196 .2822 170 .2200 178 .0569 133 July .1490 115 .0647 58 8.9000 194 .3200 193 .2200 178 .0546 128 August .1600 124 .0703 63 8.1200 177 .3248 195 .2200 178 .0583 137 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

OCTOBER, 1921. FEDERAL RESERVE BULLETIN. 1205 of exports of all other unmanufactured prod- FOREIGN TRADE INDEX. ucts actually declined. In the group of con- There is presented below a series of indexes sumers' products, exports of wheat flour showed designed to reflect movements in foreign trade the greatest growth, although August exports of the United States, with fluctuations due to of shoes, hams, lard, cotton cloth, and illumiprice changes eliminated. The commodities nating oil were all larger than those of July. chosen for these indexes are those for which Exports of cotton cloth have now shown a prices are compiled by the Federal Reserve steady growth for six consecutive months. JBoard in the preparation of its international Among the producers' commodities, exports of price index. The list includes 25 of the most gasoline and acetate of lime showed a consideraimportant imports the value of which in 1913 ble increase, while exports of steel rails and formed 47.7 per cent of the total import values, upper leather declined. August was the sevand 29 of the most important exports the value enth successive month to register a falling off of which in 1913 formed 56.3 per cent of the in exports of cottonseed oil. total export values. The classification of the The increase in volume of August imports original list of commodities used was given in was most noticeable in the case of producers' the July, 1920, BULLETIN. The classification goods. Imports of cane sugar, India rubber, of the 11 additional commodities of imports and nitrate of soda were much greater than in was given in the April, 1921, BULLETIN. July, while paper imports were larger than in There was a considerable increase in the total any previous month this year. Imports of volume of both exports and imports during raw materials and consumers' goods also August. Exports of raw materials and of con- showed moderate increases. Silk imports sumers' goods Were much larger than in July, reached the highest monthly totaj for over a while the volume of producers' goods exported year. Imports of flaxseed and lumber in showed little change. The increase in exports August exceeded those of any month since of raw materials was wholly due to large ship- October, 1920, while imports of tobacco were ments of grain from this country, as the volume greater than in any month since February. INDEX OF VALUE OF FOREIGN TRADE IN SELECTED COMMODITIES AT 1913 PRICES. [Monthly average values, 1913 = 100.] Exports. Imports. R m ( a 1 o w 2 r d i i a c t m l i o s e a m s t ) - e . - P m g r o o o c o d d o d i u m t s c i e - e ( s 1 r ) s 0 . ' C m g o o o n c d o s o i u d m t m i s e - ( e s 7 ) r . s' m T o o c d t o a i m t l i e - (2 s) 9 . R m ( a 1 o w 0 r d i i a c t m l i o s e m a s t ) - e . - P m g r o o o c o d d o d i u m t s i c e - e ( s 1 r ) s 2 . ' C m o g o n o c d s o o i u d m t m i s e - e s (3 ) r . s' m T o o c d t o i a m t l i e - ( s 2 ) 5 . 1913—Year 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 1919—Year 88.9 154.7 188.5 118.6 157.5 193.0 161.4 171.1 1920—Year 92.2 142.6 137.9 107.7 135.2 227.3 155.3 171.7 1921. January 105.2 187.9 126.0 117.6 74.5 130.8 146.5 104.7 February. 91.0 141.0 116.4 101.6 118.2 143.5 160.8 133.1 March 78.2 104.4 122.4 91.1 160.7 177.4 209.3 173.2 April 76.6 102.7 122.5 89.9 153.4 177.7 206.3 169.3 May . . 97.7 81.8 112.8 100.0 98.7 150.1 179.3 128.2 June. 107.9 74.4 135.1 111.3 94.5 152.5 126.7 119.7 July 111.6 68.3 131.8 112.5 99.3 126.5 114.9 111.4 August . . . .. 142.5 68.1 164.1 140.9 116.7 164.8 126.3 135.7 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1206 FEDEKAL, RESERVE BULLE OCTOBER, 1921. INDEX OF OCEAN FREIGHT RATES. decline can not be reflected in the index until October. The accompanying table shows the monthly fluctuations in ocean freight rates prevailing RELATIVE OCEAN FREIGHT RATES IN UNITED STATES AND EUROPE TRADE. between United States Atlantic ports and the (January, 1920, rates=100.] principal European trade regions. The figures are derived from the actual rates quoted on the United States Atlantic ports tofollowing commodities: Grain, provisions, cotm t t o h e n e t , h A o c u d o g s t u t o s u n t, s s e e 1 d e 9 d 2 i 1 n o , i B c l, U o L n a L s n t E d r T uc I s N a ti c , n k p g a g f t e l h o s e u 9 r i 3 . n 1 d - F e 9 o x 3 r , 4 . t s h e e e Month. U K d n o i i m n t g e . - d A F tl r a e n n t c i h c. B N e la a e lg n n th i d d u e s m r- . S n c a a v n i d a i . - M n te e r e a r d a n i - - . Eu A ro ll pe During September rates in all the European trades remained substantially unchanged until 1920. January 100.0 100.0 100.0 100.0 100.0 100.0 the final week of the month, when the rate on February 96.5 86.9 83.3 90 1 91.1 90.3 March 91.2 78.5 78.0 84.6 79.5 83.4 heavy grain to the United Kingdom was cut April 90.2 87.2 78.9 82.7 72.2 83.5 from 5 shillings to 4 shillings per quarter (480 May 96.2 85.9 87.3 82.5 75.2 87.5 June 101.2 87.1 89.5 82.1 76.5 90.0 pounds). Rates to French Atlantic and July 96.0 85.6 82.1 82.0 75.3 86.3 August 85.7 77.9 70.4 82.1 73.2 78.5 Netherlands ports were reduced correspond- September 86.7 73.7 66.9 82.1 71.6 76.9 ingly, and the steamship lines comprising the October 84.9 68.9 70.9 75.3 69.6 75.4 November 77.8 51.6 59.9 59.6 59.2 63.8 Baltic-Scandinavian conference took similar December 72.3 38.5 47.0 51.6 49.2 53.6 action following the announcement of the 1921. lower tariffs in the United Kingdom and Conti- January 60.7 30.2 34.1 42.9 43.2 43.3 February 54.7 27.7 29.2 30.9 43.8 38.5 nent trades. As a result of these rate revisions March 49.3 24.6 28.3 30.8 42.2 35.9 the September index numbers all show moder- A M p ay ril 5 50 0 . . 6 1 3 3 2 5 . . 6 0 3 3 6 8 . 6 2 2 3 9 1 . . 4 3 3 3 5 4 . . 7 6 3 4 9 0 . . 0 1 ate declines from August, although, on account June 42.7 34.7 38.3 31.3 34.0 37.6 July 42.5 33.2 37.0 29.0 34.7 36.8 of the higher rate level in effect during most August 42.9 33.4 36.7 28.4 34.3 36.7 of September, the full extent of the recent September 41.8 32.7 35.8 28.2 33.6 36.0 OCTOBER CROP REPORT. Forecasts and preliminary estimates issued bushels last year, the larger part of the deby the United States Department of Agricul- crease being in winter wheat. A further reture as of October 1, 1921, are shown in the duction of 500,000 bales in the cotton forecast table following, in comparison with estimates brings the total down to 6,537,000 bales, or of production for the past crop year. somewhat less than one-half of last year's esti- Corn production is expected to be somewhat mated production. The preliminary estimate larger than the September forecast, and only for oats is 1,079,000,000 bushels, or nearly one- 69,000,000 bushels less than last year's record third less than a year ago, while the estimate crop. The preliminary estimate for wheat is for hay is about 12 per cent below the 1920 741,000,000 bushels, compared with 787,000,000 amount. PRODUCTION OF CORN, WHEAT, COTTON, OATS AND HAY, BY FEDERAL RESERVE DISTRICTS—OCTOBER 1 1921 FORECAST OF THE DEPARTMENT OF AGRICULTURE. ' ' [In thousands of units of measurement.] Corn (bushels). T ( o b t u a s l h w el h s e ). at Sp (b ri u n s g h e w ls h ) e . at Cotton (bales). Oats (bushels). Hay, t ( a t m on e s a ). nd wild Federal Reserve District. f f o o O r r e c 1 t c 9 . a 2 1 s 1 t . E fo s r t i 1 m 92 a 0 te . e P fo s r r n t e i a l m 1 i r m 9 y a 2 t i 1 e - . E fo s r t i 1 m 92 a 0 te . e f P o s r n r t e i a l m i r 1 m y 9 a 2 t i 1 e - . E fo s r t im 19 a 21 t . e f f o o O r r e c c 1 t a 9 .l 2 s 1 t . E fo s r t i 1 m 92 a 0 t . e e P fo s r n r t e i a m l 1 i r 9 m y a 2 t 1 i e - . E fo s r t im 19 a 20 te . e P fo s r r n t e i a m l 1 i r m 9 y a 2 t i 1 e - . E fo s r t i 1 m 92 a 0 t . e Boston 5,810 4,535 343 368 343 368 8,703 9,571 3,552 4,211 New York. 44,643 38,550 10,095 12,016 450 740 30,326 46, 797 4,649 6,005 Philadelphia.... 64,609 63,133 22,745 23,022 279 311 21,169 28,882 2,466 2,945 Cleveland 201,017 216,642 34, 552 35,442 341 463 51,454 92,711 5,596 6,209 Richmond 181, 536 202, 850 27, 542 36,871 1,143 2,570 25,141 25,626 4,205 4,751 Atlanta 305, 067 266, 055 7,130 6,363 1,456 2,459 33, 839 28, 090 4,686 4,594 C M K D S S a t h a a . i n i n l n c L l n a s a F o e a g s r u a s o a p i n C s o c i l t i i y s sco.. 4 2 4 2 8 8 5 0 1 3 9 6 0 , , , , , 0 1 9 5 9 7 5 7 5 6 2 2 1 9 6 2 9 4 5 1 8 5 1 4 4 9 7 9 0 2 1 9 , , , , , , 1 1 6 1 6 8 2 2 9 3 1 9 6 4 9 8 8 7 1 2 1 6 6 1 4 1 3 1 0 9 8 3 5 , , , , , , 6 1 0 1 9 3 0 2 5 0 6 9 4 1 8 5 4 6 2 1 1 6 4 6 8 0 1 6 5 0 2 0 8 , , , , , , 0 1 2 5 6 5 6 0 2 3 1 2 0 2 2 0 1 1 1 4 2 1 8 3 9 3 , , , , 2 6 4 5 2 3 3 4 1 2 4 0 1 3 9 8 0 2 1 4 1 1 3 3 2 1 8 , , , , 6 1 8 7 7 3 4 7 1 1 6 7 6 4 3 3 2 5 2 1 , , 1 3 1 3 2 7 4 8 6 7 4 4 2 4 1 1 , , , 1 8 1 1 6 8 6 8 1 1 8 8 2 1 4 4 5 7 1 3 5 8 1 1 , , , , , 0 4 1 1 7 5 7 0 5 1 2 7 4 3 3 2 5 3 4 4 2 8 7 0 7 7 8 4 6 9 , , , , , , 2 3 2 8 7 8 9 9 9 1 0 6 6 8 7 4 6 7 1 1 1 1 4 2 3 7 6 5 , , , , , , 0 2 0 4 7 8 8 0 4 9 4 9 0 8 8 2 7 0 1 2 1 1 8 2 0 7 7 4 , , , , , , 1 0 1 8 0 3 8 0 2 9 0 0 3 5 9 6 4 1 Total 3,163,063 3,232, 367 740,655 787,128 196,776 209,365 26,537 213,440 1,078, 519 1,526,055 94,619 108,233 1 In addition, the following amounts were estimated grown in Lower California (Mexico): Oct. 1,1921, forecast, 31,000 bales; estimate for 1920 ' a Cotton grown outside of cotton belt included as follows: Oct. 1,1921, forecast, 7,000 bales; estimate for 1920,13,000 bales. 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OCTOBEB, 1921. FEDERAL RESERVE BULLETIN. 1207 PHYSICAL VOLUME OF TRADE. The volume of production and trade showed Steel Corporation continued to decline. Copa more general upward trend in August than per production showed an upward trend in in any previous month this year. The increase August, but zinc mining showed a slight curin agricultural movements was particularly tailment. Imports of pig tin were larger than noteworthy. Wheat receipts at 17 interior in July. centers exceeded the record total of July, while Textile production was well maintained durreceipts of corn and oats also showed large in- ing August, although there was some increase creases. Stocks of grain at interior and sea- in the percentage of idle wool machinery. board centers were considerably augmented, in Cotton consumption showed a moderate inspite of a shrinkage in corn stocks. August crease, while imports of raw silk reached the production of wheat flour showed a marked largest total of any month this year. increase for the second successive month. Reporting lumber associations increased both Live-stock movements closely paralleled those their cut and shipments during August. There of grain, and August receipts at 59 markets was also a considerable increase in production were appreciably larger than in July, despite a of wood pulp and of paper. August producfalling off in hog receipts. Movements of tion of cement was the largest of any month on sugar, cotton seed, California deciduous fruits, record. Leather production also showed an and rosin also increased during August, while increase, and the August output of sole leather movements of California citrus fruits and of was greater than in any month since June, 1920. turpentine declined in volume. There was a marked gain in locomotive pro- There was a noticeable increase in fuel pro- duction, but the output of railroad cars and duction during August. Both by-product and vessels declined. Shipments of automobiles beehive coke production increased after a long were at about the same level as in July. period of decline. The output of anthracite and Revenue freight loaded by railroads was bituminous coal mines also showed a moderate about 12 per cent greater in August than in gain. Petroleum production in August was July. This increase was about equally disslightly larger than in July, but drilling opera- tributed among the leading classes of carload tions were noticeably curtailed. freight, but was much greater in the East, the Production of iron and steel increased during Northwest, and the Central West than in other August, but unfilled orders of the United States sections of the country. LIVE-STOCK MOVEMENTS. [Bureau of Markets.] Receipts. Shipments. C c m a a l a t v t r l e k e s e , a t 5 n s 9 . d m H a o r g k s, e 5 ts 9 . S m h a e r e k p e , t 5 s 9 . H m m o u r a s l r e e k s s e , a t 4 s n 3 . d T k o i t n al d , s a . ll C c m a a t l a t v r l e e k s e , a t 5 n s 4 . d m H a o r 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 , a t 4 s n 3 . d T k ot i a n l d , s a . ll 1920. Head. Head. Head. Head. Head. Head. Head. Head. Head. Head. August 1,944,506 2,382,204 2,560,802 72,556 6,960,068 869,849 953,088 1,459,198 68,571 3,350,706 1921 May 1,531,682 3,311,976 1,886,817 17,824 6,748,299 591,770 1,037,466 915,116 16,610 2,560,962 June 1,572,334 3,559,165 1,812,339 13,292 6,957,130 605,822 1,136,269 763,577 13,214 2,518,882 July 1,335,548 2,717,247 1,738,957 10,696 5,802,448 490,751 915,998 760,172 10,036 2,176,957 August 1,856,948 2,647,965 2,467,048 15,933 6,987,894 842,254 927,962 1,110,134 14,661 2,895,011 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1208 FEDERAL. EESERVE BULLETIN. OCTOBER, 1921. MOVEMENT OF AGRICULTURAL PRODUCTS COAL AND PETROLEUM 1919 -1921 1919 - 1921 • LIVE STOCK RECEIPTS ANTHRACITE COAL PRODUCTION —GRAIN AND FLOUR RECEIPTS BITUMINOUS COAL PRODUCTION COTTON SIGHT RECEIPTS CRUDE PETROLEUM PRODUCTION INDEX NUMBERS. AVERAGE 1911-1913 = 100 INDEX NUMBERS. AVERAGE 1911-1913 = 100 220 22O 22O 22 O 2OO 2OO 2OO 2OO h ; 18O 18O 18O 18O i 16O i 16O 16O 16O i V 4 1 i 14O 14O i 14O i A 11 r 12O A\ •\ A k 12O 12O A I > A f Ai 12O 1OO I i r :\ V # 1OO '1OO 1 f i / 1 10O 8O ^ v / j IN \ :f ^ V V 80 8O \] i l \ u i / / \ r V / 8O 6O \j •\ 6O 6O ... / \ \ \ / I AO 40 4O \. 2O 20 —o — o -O — YEAR 1919 1920 1921 YEAR 1919 1920 1921 YEAR IRON AND STEEL TEXTILES 1919 - 1921 1919 - 1921 PIG IRON PRODUCTION STEEL INGOT PRODUCTION COTTON CONSUMPTION -UNFILLED ORDERS, U.S, STEEL CORPORATION -WOOL CONSUMPTION INDEX NUMBERS. AVERAGE 1911-1913 = 100 MILLIONS OF POUNDS 22O i 1 1 1 1 1 1 1 1 1 T 1 1 22O 30O in t 3OO 280 28O A j\j \ 26O 26O In \ 24O 24O I]/ * \ A 1 22O I 22O / 1 y/ 2OO 2OO \ / 18O 18O \l 16O !6O 1 14O 14O 12O 1 12O too 1OO 8O 8O V 6O 6O V \ / 4O 4O V 20 2O •O- YEAR 1919 1920 1921 YEAR Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

OCTOBER, 1921. FEDERAL RESERVE BULLETIN. 1209 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. Relative. Head. Relative. Head. ! Relative. Head. Relative. 1920. August 1,451,985 144 I 1,784,209 j 81 1,687,787 124 55,371 120 4,979,352 108 1921. May.. 1,062,988 105 2,401,246 109 1,097,976 80 12,082 4,574,292 99 June... 1,117, 111 111 2,671,462 122 1,130,874 83 8,135 4,927,582 107 July.... 940,173 93 2,021, 268 92 1,035,674 76 6,952 4,004,067 87 August. 1,418,237 141 1,919, 514 87 1,568, 584 115 11,147 4,917,482 106 SHIPMENTS. 1920. August. 640,295 157 627,670 130 820, 341 163 52,163 127 2,140,469 149 1921. May.. 424, 558 104 644, 788 133 415, 569 83 11,137 1,496,052 104 June... 414, 814 102 703, 724 145 403, 748 8,199 1,530,485 107 July.... 338,306 83 619, 854 128 81 6,439 1,372,687 96 August. 656,106 161 609,506 ' 126 604,996 120 10,098 1, 880,706 131 SHIPMENTS OF STOCKERS AND FEEDERS FROM 34 MARKETS. Ca c t a t l l v e e a s n . d Hogs. Sheep, .j Total.aU i C c a a tt l l v e e a s n . d Hogs. T k o i t n al d , s a . ll 1920. Head. Head. Head. Head. 1921. Head. Head. Head. Head. August. 273,512 34,415 567,429 875,356 May.. 211, 846 29,409 114, 811 356,066 June 195,039 31,373 314,714 July.... 120,429 15,493 138, 414 274,336 August. 353,619 21,564 402, 372 777, 558 ANIMALS SLAUGHTERED UNDER FEDERAL INSPECTION. [Bureau of Animal Industry. Monthly average, 1911-1913=100.] Cattle. Calves. Hogs. Sheep. Total. Rela- Rela- Rela- Relalead. tive. Head. tive. Head. tive. Head. tive. Head. tive. 1920. August. 685,763 113 332,349 188 2,190,821 78 ! 1,041,580 4,250,513 88 1921. May.... 559,979 92 366,798 207 3,274,114 116 984,903 5,185,794 108 June— 640,164 105 369,696 209 3,618,174 128 1,116,069 93 5,744,103 117 July.... 579,028 95 324,046 183 2, 820,616 100 1,059,902 88 4,783,592 100 August. 680,419 112 303,796 172 2,530,459 9900 1,236,992 103 4,751,666 99 EXPORTS OF CERTAIN MEAT PRODUCTS. [Department of Commerce. Monthly average, 1911-1913= 100.] Beef, canned. Beef, fresh. an B d e e o f t , h p e i r c c k u le r d e , d. Bacon. sho H ul a d m er s s , a c n u d red. Lard. Pickled pork. Rela- Rela- Rela- Rela- Rela- Rela- Rela- Pounds. tive. Pounds. tive. Pounds. tive. Pounds. tive. Pounds. tive. Pounds. tive. Pounds. tive. 1920. 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 1921. May 326,459 49 191,366 1,822,383 38,464,256 230 15,508,520 104 48,604,395 110 2,558,043 58 June 186,647 28 167,318 2,004,136 75 35,011,966 209 18,536,898 124 67,655,776 154 3,337,759 75 July 351,566 53 918,476 2,418,262 91 48,171,465 27,786,271 186 83,329,134 189 76 August 914,418 138 292,663 2,752,598 103 45,340,151 271 32,233,527 216 87,410,516 199 3,212,347 73 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1210 FEDERAL RESERVE BULLETIN. OCTOBER, 1921. RECEIPTS OF GRAIN AND FLOUR AT 17 INTERIOR CENTERS. [Chicago. Cleveland, Detroit, Duluth, Indianapolis, Kansas City, Little Rock, Louisville, Memphis, Milwaukee, Minneapolis, Omaha, Peoria, St. Louis, Spokane, Toledo, Wichita; receipts of flour not available for Cleveland, Detroit, Indianapolis, Louisville, Omaha, Spokane, Toledo, and Wichita. Compiled from reports of trade organizations at these cities. Monthly average, 1911-1913=100.] Total grain and Wheat. Corn. Oats. Rye. Barley. Total grain. Flour. flour.i Rela- Rela- Rela- Rela- Rela- Rela- Rela- Rela- Bushels. tive. Bushels. tive. Bushels. tive. Bushels. tive. Bushels. tive. Bushels. tive. Barrels. tive. Bushels. tive. 1920. August 43,039,021 159 9,840,320 4430,728,748 153 3,191,103 289 3,007,508| 42 89,806,700 1151,949,339 100 98,578,726 114 1921. May 25,514,527 94 20,939,570 9315.5,,524,227 7711,368,821 124 2,551,087 j 36 65,898,232 J 85 1,498,212 72,640,186 84 June 30,342,592 112 35,816, 899 160 21,921,817 109Jl,464,530 133 3,859,432 54 93,405,270! 120 865,219 97,298,756 112 July 71,422,624 263 19,713,672 15,527,442 127 2,557,053 232 3,073,358! 43122,294,149! 157 2,705,340 138134,468,179 155 August 77,026,777 284 30,983,238 138 42,739,890 213 6,207,749 562 6,387,297! 89163,344,951 2103,130,086 160177,430,338 205 1 Flour reduced to its equivalent in wheat on basis of 4J bushels to barrel. SHIPMENTS OF GRAIN AND FLOUR AT 14 INTERIOR CENTERS. [Chicago, Cleveland, ]Detroit, Duluth, Kansas City, Little Rock, Louisville, Milwaukee, Minneapolis, Omaha, Peoria, St. Louis, Toledo, Wichita; shipments of flour not available for Cleveland, Detroit, Louisville, Omaha, Toledo, and Wichita.] Wheat. Corn. Oats. Rye. Barley. Total grain. Flour. Total f l g o r u a r in .* and Bushels. tive. Bushels. R ti e v l e a . - Bushels. R ti e v l e a . - Bushels.! tive. Bushels.. ™Rela- Bushels. R ti e v l e a . - Barrels. R ti e v l e a . - Bushels. R tiv el e a . - 1920. August 24,934,816 160 6,260,144 44 12,814,0671 84 2,880,003; 407! 2, 231,851; 57 49,120,881 99 3,605,105 106 65,343,854 101 1921. May 18,675,009 12015,747,327 11012,447,121 8211,,309,016 185il,682,946; 43 49,861,419 100 2,533,847 75 61,263,730 94 June 21,550,026 138 21,381,193 15011,656,507| 7711,427,796 202 2,224,652 57 58,240,174 117 2,113,649 62 67,751,594 104 July 31,373,871 201 20,154,143 14110,, 051,,0 24 878,751! 124 2,313,726 59 64,771,515 1*3"~0 33,,842,046 113 82,060,722 126 August 58,901,701 37822,657,863 15915,422,006 I 1014,548,4661 642 j 4,060,175 104105,590,211 213 55,;040,334 149128,271,714 £ i1 Flour reduced to its equivalent in wheat on basis of 4J 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. Bushels. Bushels. August. 5,460,879 1,414,708 7,447,762 338,600 709,469 15,371,418 1921. May i 3,787,294 10,539,233 24,926,743 363,170 1,079,831 40,696,271 June I 3,853,292 17,944,190 29,273,562 239,665 1,407,124 52,717,833 J A u u ly g ust!! 2 1 1 3 , , 9 54 2 1 7 , , 5 6 4 9 7 5 1 6 0 , , 9 3 0 9 6 2 , , 5 3 9 8 0 4 3 5 2 0 , , 8 8 4 3 5 5 , , 5 0 9 3 1 9 2,5 6 7 2 1 5 , , 4 9 7 7 3 5 2 1 , , 2 4 0 0 6 6 , , 1 7 8 4 0 2 5 8 8 4 , , 8 4 1 4 2 6 , , 2 9 3 7 9 7 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 fro Seattle and Tacoma. Compiled from reports of trade organizations at these cities. Monthly average, 1911-1913=100.] Wheat. Corn. Oats. Rye. Barley. Total grain. Flour. Total f l g o r u a r i . n i and Bushels. t R iv el e a . - Bushels. R tiv el e a . - Bushels. t R iv el e a . - Bushels. R tiv el e a . - Bushels. t R iv el e a . - Bushels. R tiv el e a . - Barrels. R tiv el e a . - Bushels. R tiv el e a . - 1920. August 28,098,022 223 1,576,842 44 2,671,365 56 3,407,799 2,398 2,289,791 138 38,043,819 1681,390,077 133 44,299,166 162 1921. May. 15,052,060 119 4,807,533 135 1,221,630 261,506,359 1,0601,422,693 86 24,010,275 1061,518,671 145 30,844,295 J J A u u u l n g y e . u . st 2 3 1 9 4 6 , , , 3 1 6 6 4 2 4 2 8 , , , 1 5 8 2 2 9 4 1 2 2 1 7 3 1 2 9 1 5 , , , 3 9 3 4 8 3 3 5 6 , , , 6 6 4 9 3 8 7 9 1 2 1 5 6 5 5 3 2 2 7 1 , , , 6 0 9 2 0 0 5 2 3 , , , 1 1 7 4 5 8 7 5 6 1 5 4 4 5 0 7 1 1 3 , , , 9 1 1 6 8 4 5 0 3 , , , 9 1 4 3 1 3 2 9 8 1 2 , , 3 2 8 8 1 3 4 2 1 4 6 , , 6 0 6 2 5 8 6 8 9 , , , 2 3 1 9 4 3 5 3 1 3 2 4 6 7 0 7 9 5 2 4 8 5 1 , , , 2 9 7 5 8 5 7 1 6 , , 2 7 7 1 3 5 2 1 7 2 1 1 5 8 1 7 5 3 1 2 7 , , , 7 1 2 1 7 1 4 2 0 , , , 8 8 5 5 3 2 2 6 1 2 6 1 0 9 6 8 0 4 9 3 5 0 3 1 , , , 7 4 7 0 7 5 5 3 8 , , , 1 5 9 0 6 7 2 5 4 3 1 1 3 2 8 1 2 9 1 Flour reduced to its equivalent in wheat on the basis of 4$ bushels per barrel. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

OCTOBEE, 1921. FEDERAL RESERVE BULLETIN. 1211 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. August ! 13,915,892 1,097,945 1,532,272 j 777,445 4,052,189 21,375,743 1921. | May ; 3,788,898 1,185,753 1,107,518 I 534,574 1,300,852 7,917,595 June ! 3,486,041 2,136,128 1,058,652 ! 157,397 1,664,674 8,502,892 July ! 9,972,506 1,113,767 981,942 386,710 3,738,401 16 193,326 August I 12,934,198 955,694 1,592,072 1,389,338 3,997,970 20,869,272 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. 1921. Barrels. August 10,200,000 May 8,406,000 June.....' 8,087,000 July 10,720,000 August 13,266,000 COTTON. [New Orleans cotton exchange. Monthly average crop years, 1911-1913=100.] Stocks at ports Sight receipts. Port receipts. Over m lan e d n t m . ove* Amer t i a c k a i n n s g p s i . nners t a o n w d n s i a n t t c e lo r s i e o r of month. Bales. R ti e v l e a . - Bales, R ti e v l e a . - Bales. R ti e v l e a . - Bales. R ti e v l e a . - Bales. R ti e v l e a . - 1920. August 308,262 25 ! 159,586 17 25,322 24 251,841 55 1,365,397 116 1921. May 777,011 595,346 84,594 288,411 63 2,869,165 244 June 659,900 482,944 112,955 107 410,734 90 2,659,826 226 July 607,788 465,143 78,106 74 469,715 103 2,311,696 196 August 617,049 406,823 95,025 90 369,420 81 2,167,927 184 COTTONSEED. [Bureau of the Census.] R at e c m e i i l v l e s d . Crushed. O m of n i l m l h s o a ( n n cl d t o h s a ) e t . R at e c m e i iv ll e s d . Crushed. O o m f n i m ll h s o a ( n n c t d l h o s a ). e t 1920. Tons. Tons. Tons. 1921. Tons. Tom. Tons. August., 22,93 20,099 32,92 May 70,467 131,522 130,471 June 77,484 98,646 109,309 July.... 54,241 27,466 94,543 August. 130,333 100,496 124,377 SHIPMENTS OF CITRUS AND DECIDUOUS FRUITS FROM CALIFORNIA. [March, 1921, on, Bureau of Markets and California Fruit News.1 Monthly average, 1911-1913=100.] Total Oranges. Lemons. Total citrus fruits. deciduous fruits. Carloads. Relative. Carloads. Relative. Carloads. Relative. Carloads. 1920. August.. 1,707 70 751 185 2,458 7,239 192L May 4,710 193 1,250 5,960 209 85 June 5,628 230 2,230 551 7,858 276 2,200 July.... 3,465 142 1,843 455 5,308 186 3,439 August.. 3,126 128 579 143 3,705 130 8,113 3For previous sources, see April, 1921, Bulletin. 'Including grapefruit. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1212 FEDERAL RESERVE BULLETIN. OCTOBER, 1921. SUGAR. Data for ports of New York, Boston, Philadelphia. Weekly Statistical Sugar Trade Journal. Tons of 2,240 pounds. Monthly average, 1911- 1913=100.] Receipts. Meltings. c R lo a s w e o st f o m ck o s n t a h t . Receipts. Meltings. c R lo a s w e o s f to m ck o s n t a h t . Tons. R ti e v l e a . - Tons. R ti e v l e a . - Tons. R ti e v l e a . - Tons. R ti e v l e a . - Tons. R ti e v l e a . - Tons. R ti e v l e a . - 1920. 1921. August 308,313 168 287,000 156 125,340 73 May 251,302 137 236,000 129 224,035 130 June 186,800 101 217,000 118 193,835 112 July 148,045 80 221,000 120 104,558 61 August 304,087 165 314,000 171 96,603 56 TOBACCO SALES AT LOOSE-LEAF WAREHOUSES. [Reports of State authorities.] Bright belt. Western Virginia dark, Burley. North South dark. Virginia. Carolina. Carolina. Total. 1920. Pounds. Pounds. Pounds. Pounds. Pounds. Pounds. Pounds. Pounds. August. 109,266 12,659,567 51,377,514 64,037,081 1,223,750 I 710,560 66,080,657 1921. July.... 2,200,905 2,200,905 1,521,247 i 573,650 4,295,802 August. 11,840,109 11,840,109 2,662,095 | 486,550 NOTE.—Includes sales for growers and dealers, but excludes resales. SALE OF REVENUE STAMPS FOR MANUFACTURES OF TOBACCO IN THE UNITED STATES (EXCLUDING PORTO RICO AND PHILIPPINE ISLANDS). ICommissioner of Internal Revenue.] Cigars. Cigarettes. Cigars. Manu- Manufactured factured tobacco. tobacco. Large. Small. Small. Large. Small. Small. Number. \ Number. I Number. Pounds. 1921. Number. Number. \ Number. Pounds. August. 672,020,289 | 48,171,240 '3,569,397,443 32,164,734 May.. 555,497,120 55,349,100 4,136,084,890 28,671,501 June 618,495,102 50,175,400 4,219,727,623 31,737,525 July.... 564,598,255 47,362,340 4,161,217,573 29,226,353 August. 622,039,033 53,630,000 15,130,577,133 33,601,590 NAVAL STORES. [Data for Savannah, Jacksonville, and Pensacola. Compiled from reports of trade organizations at these cities.] j Spirits of turpentine. Rosin. Spirits of turpentine. Rosin. Stocks Stocks Stocks Stocks Receipts. at close of I Receipts, at close of Receipts. at close of Receipts. at close of month. month. month. month. Barrels, i Barrels. Barrels. Barrels. 1921. Barrels. Barrels. Barrels. Barrels. August. 33,747 I 27,963 106,964 144,109 May. 26,364 38,650 61,213 312,293 June 33,533 36,949 80,943 308,341 July.... 36,435 47,580 90,382 o28,224 August. 33,773 52,861 92,580 328,907 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

OCTOBEE, 1921. FEDERAL RESERVE BULLETIN. 1213 COAL AND COKE. [U. S. Geological Survey. Monthly average, 1911-1913=100.] Bi m tu a m te i d n ou m s on c t o h a l l y , p e r s o ti - - An m th a r te a d ci te m o c n o th a l l y , p e r s o ti - - Beehive coke, estimated duction. duction. monthly production. Short tons. Relative. Short tons. Relative. Short tons. Relative. 1920. September.. 49,172,000 133 4,638,000 63 1,757,667 67 1921. May 33,330,000 7,497,000 101 290,000 June 33,852,000 7, 786,000 105 232,000 July 30,394,000 7,050,000 95 181,000 August 34,538,000 7,196,000 97 248,000 September.. 35,105,000 CRUDE PETROLEUM. [Production and stocks, U. S. Geological Survey; wells completed, Oil and Gas Journal and Standard Oil Bulletin (California). Barrels of 42 gallons each. Monthly average, 1911-1913=100.] B P a r r o re d l u s c . tion R ti . e v l e a . - S (b c m t l o a o o c r s r k n e e s t l h o s a f ). t o P p i r c l l i o e o n w t d m e g e u d - l c l . s - B P a r r o re d l u s. ctio R n ti . e v l e a . - S (b c m t l o a o o c r s r k n e e s t l h o s a f ). t o P p i r c l l o i e o n w d t m e g u e d - l c l . - s 1920. 1921. August- 39,055,000 204 124,449,000 2,456 May j 42,043,000 219 156,561,000 1,405 June ! 40,405,000 211 164,837,000 1,471 July 40,328,000 210 172,359,000 1,157 August 40,964,000 214 176,248,000 952 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. July.. 37,024,052 423,419,770 172,213,511 751,193,898 92,369,504 1921. May.. 36,990,478 448,567,873 145,225,023 817,367,590 70,000,194 June. 36,940,821 430,344,393 141,637,081 826,355,262 63,088,609 July.. 36,040,797 419,641,815 138, 724,132 807,428,397 65,893,228 STOCKS AT CLOSE OF MONTH. 1920. July 31. 17,086,253 413,279,319 410,853,047 655,152,293 131,866,455 1921. May 31. - 20,816,203 800,495,787 452,437,995 1,163,388,695 261,759,797 June 30.. 21,008,986 750,644,450 435,056,713 1,248,664,088 260,883,121 July 31.. 19,115,631 684,236,695 412,201,674 1,269,419,283 258,638,298 IRON AND STEEL. [Pig-iron production, Iron Age; steel-ingot production, American Iron and Steel Institute. Monthly average, 1911-1913=100. Iro f L r n o a - m k o e r e s. th sh e i pm up e p n e ts r Pig-iron production. Steel-in t g i o o t n . produc- Un a S f t t i e l c l e e l l o d s e o C o rd o f e r m p rs o o r U n at t i . h o . n S. Gross tons. Relative. Gross tons. Relative. Gross tons.Relative. Gross tons. Relative. 1920. 8,923,482 147 3,129,323 135 2,999,551 128 10,374,804 197 1921. May 2,594,027 43 1,221,221 53 1,265,850 54 5,482,487 104 3,600,989 59 1,064,833 46 1,003,406 43 5,117,868 97 J u ly 4 4 , , 0 3 4 2 7 9 , , 6 1 8 5 7 8 6 7 7 1 8 9 6 5 4 4 , . 5 1 5 9 5 3 3 4 7 1 1,1 8 3 0 8 3 , , 0 37 7 6 1 3 4 5 9 4 4 , , 8 5 3 3 0 1 , , 3 9 2 2 4 6 9 8 2 6 September 985,529 43 1,174,740 51 4,560,670 87 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1214 FEDERAL RESERVE BULLETIN. OCTOBER, 1921. STRUCTURAL-STEEL ORDERS AND SHIPMENTS. [Bridge Builders and Structural Society.j Fabricated structural steel I contracted for through- |Structural-steel orders and shipments of the memberj out country. ship of Bridge Builders and Structural Society. ! Orders. Shipments. Per cent Tonnage. ca s p h a o c p ity. Tonnage. ; Pe s r h o ce p nt Tonnage. Pe s r h o ce p nt capacity. capacity. 1920. August. 72,000 40.0 36,843 50.0 51,381 70.0 1921. May 50,800 28.0 25,763 37 5 27 987 41.0 June... . 06,900 37.0 25,247 i 35.5 27,363 39.0 July ''.0,200 33.5 21,847 32.0 22,186 32.5 August. 59,300 33.0 18,010 i 26+ 23,558 34. 5 PRODUCTION OF BLISTER COPPER. [American Bureau of Metal Statistics. Monthly average, 1911-1913=100.] Pounds. Relative. 1921. Mav - - 22,653,328 23 June 18,033,954 18 July 13,390,107 17 \U!TUSt 20,018,569 20 ZINC. [American Zinc Institute. Tons of 2,000 pounds.] Stocks Stocks Produced. at end of Produced. at end of month. month. 1921. September. 36,819 42,900 June 19,443 89,889 July 15,495 92,408 1921. August 1-1,621 86,549 May 18,026 83,721 September. 14,367 81,135 LEAD PRODUCTION. [American Bureau of Metal Statistics. Tons of 2,000 pounds.] Production. Relative. Production. Relative. 1921. 1921. May.. 27,650 79 July 27,827 80 June. 28,348 81 ist TIN. [Imports, Department of Commerce. Deliveries, New York Metal Exchange. Monthly average, 1911-1913=100.] Imports. Relative. to D e fa li c v t e o r r i i e e s s. Imports. Relative. t D o e f l a i c v t e o r r i i e e s s. 1920. S Pounds. Pounds. 1921. Pounds. Pounds. September.. .| 9,596,819 106 10,886,400 May 2,021,762 2,744,000 June 4,133,450 3,561,600 July 3,565,767 3,411,520 August 5,200,504 57 7,436,800 September. 5,835,200 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

OCTOBER, 1921. FEDERAL RESERVE BULLETIN. 1215 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 i c o o n n . sump- s C pi o n t d to le n s Imports of raw silk. 1 Cotton t i c o o 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. 1921. August 483,560 108 34,513,203 2,690,690 132 !May 439,884 98 32,631,051 4,437,080 217 June 461,656 103 32,665,315 3,871,327 189 July 410,120 91 32,446,281 4,867,985 238 August 467,103 104 33,059,211 5,114,901 250 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 5 W t 0 h - i i a d n n e c r h 50 re -i e n d ch S c e a t r s d s o . f Combs. Woolen.Worsted. 5 W t 0 h - i i a d n n e c r h 5 s 0 r p e - a i e n c d c e h S c e a t r s d s o . f Combs. Woolen. Worsted. | sp re a e c d e. or less. s r p e a e c d e. or less.| 1920. September j 36,297,221 51.8 34.8 39.6 37.3 ! 38.0 1921. | I May i 56,929,000 26.2 | 28.7 25.3 i 14.2 I 23.8 12.9 26.6 25.0 5.4 22.9 13.5 June ! 59,592,000 I 20.5 i 25.2 21.6 10.9 I 20.6 10.1 19.9 30.1 ! 19.8 1.4 18.6 10.4 July j 53,076,000 | 18.7 ! 25.2 21.3 11.0 20.5 9.8 17.5 17.9 4.1 18.2 6.6 August 58,261,000 | 20.4 26.4 22.9 12.7 21.9 13.3 20.8 29.6 | 20.6 12.6 20.0 14.3 September I 22.0 28.4 22.8 16.7 22.4 9.5 23.3 31.0 ! 21.1 21.2 11.5 i Converted to grease-equivalent basis. LUMBER. [From reports of manufacturers' associations.] Southern pine. Western pine. Douglas fir. Eastern white pine. North Carolina pine. b m N e u i r l m l o s f - . t d P i u o ro c n - - . m bh e l n?"ts . ibWero*f m S e h n ip ts - . N b m e u i r l m l o s - f . t d P i u o ro c n - - . m S e h n ip ts - . N b m e u i r l m l o s f - . t d P i u o ro c n - - . m S e h n ip ts - . 1920. Mfeet. i If feet. Mfeet. Mfeet. Mfeet. Mfeet. Mfeet. August 383,540 337,677 322,908 46,149 55,991 19,511 14,130 1921 May 191 389,745 i 420,063 \ 55 ! 110,162 74,085 j 113 i 294,702 330,002 I 19 : 32,708 22,018 j 14 16,126 15,673 June 190 385,970 i 371,183 I 55 ; 121,648 76,874 ! 114 I 232,107 230,970 ! 19 i 42,171 23,536 j 12 15,342 18,243 July 187 366,057 346,300 i 56 { 110,588 77,243 107 j 191,257 187,165 19 ' 43,843 21,991 11 15,267 14,864 August 185 388,510 405,974 ! 56 ! 107,346 92,397 103 ; 290,877 321,553 19 47,675 25,933 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. Mfeet. Relative. Mfeet. Relative. Mfeet. Relative. M feet. Relative. 1920. 1921. September - 375,456 81 242,857 May 354,992 76 242,452 95 June 372,453 80 253,848 100 July 328,129 71 216,908 85 August 356,730 77 235,736 93 September 388,740 84 246,602 97 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1216 FEDERAL RESERVE BULLETIN. OCTOBER, 1921. PRODUCTION OF WOOD PULP AND PAPER. [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 l o p d . N p e r w in s t - . Book b P o a a p r e d r . W pi r n a g p . - Fine. Net Net Net Net i Net Net Net Net Net Net Net Net 1920. tons. tons. tons. tons. | tons. tons. 1921. tons. tons. tons. tons. tons. tons. August... 305,965 128,818 94,424 215,633 i 75,226 33,122 May 216,101 78,868 52,642 122,801 53,084 17,484 June 189,389 87,724 53,934 130,177 50,332 17,511 July..... 178,173 94,247 48,527 112,265 45,090 16,327 I August.. 195,176 102,277 59,711 138,530 56,167 18,833 CEMENT. [U. S. Geological Survey.] Stocks at Stocks at Production. Shipments. close of Production. Shipments. close of month. month. 1921. Barrels. Barrels. Barrels. 1921. Barrels. Barrels. Barrels. May,. 9,281,000 9,488,000 12,450,000 July..... 9,568,000 10,301,000 10,414,000 June. 9,296,000 10,577,000 11,150,000 August. 10,244,000 12,340,000 8,280,000 RAW STOCKS OF HIDES AND SKINS.i [Bureau of Markets; July, 1920, on, Bureau of the Census.] h C i a d t e tl s e . Calfskins. Kipskins. Go k a i t d a . nd Cabaretta. Sh l e a e m p b a . nd 1920. August 31 5,498,844 2,145,320 585,269 19,143,722 2,348,769 7,126,885 1921. May 31 7,441,619 3,715,602 1,021,039 8,789,123 1,244,069 13,334,187 June 30 7,077,950 3,890,547 1,026,189 9,679,847 1,218,839 13,755,042 July 31 6,448,869 3,639,871 980,762 9,784,714 1,109,005 13,761,905 August 31 6,494,281 3,459,310 895,523 10,948,785 1,029,369 13,904,019 1 Includes hides and skins in transit. LEATHER PRODUCTION. [Tanner's Council.] Oak and Oak and ( S do k z iv e e n r s s ). ( h l s u e a t a n u r t n i f h o f e e e n s d r s l ( e s S i a d o t e h le s e ) r . ( S do k z iv e e n r s s ). h ( l s u e a t a n u r t n i f h o f e e e n s d r s sides). sides). 1920 1921 August. 13,275 97,580 May..... 1,561,220 14,499 57,480 June 1,521,521 14,753 57,196 ! July..... 1,431,373 12,321 44,971 August.. 1,607,302 21,430 SHIPMENTS OF AUTOMOBILES. [National Automobile Chamber of Commerce.] Railroad Driveaways Boat (ma- Railroad Driveaways Boat (ma- (carloads). (machines). chines). (carloads). (machines). chines). 1920 1921 August. 23,386 34,060 7,095 May 18,608 15,193 2,381 June 20,269 18,834 3,947 July 19,470 15,320 3,725 August 20,350 14,290 3,565 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1217 OCTOBER, 1921. FEDERAL RESERVE BULLETIN. 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 t p m i p c e e s d - . p c le o t m ed - . ; ! D t o i m c. es- Foreign. Total. s D hi o p t m i p c e e s d - . F p o c le o r t e m e ig d - n . Do tuin m c. es- Foreign. Total. 1920 Number. Number. ! Number. \ Number. Number. 1921 Number. Number. Number. Number. Number. August. 114 125 3,409 1,210 4,619 May...... 56 18 3,843 444 4,287 June 43 36 2,540 417 2,957 July 31 25 4,140 441 4,581 August 43 51 2,364 182 2,546 VESSELS BUILT IN UNITED STATES, INCLUDING THOSE FOR FOREIGN NATIONS, AND OFFICIALLY NUMBERED BY THE BUREAU OF NAVIGATION. [Monthly average, 1911-1913=100-1 Number. to G nn ro a s g s e. Relative. Number. to G nn ro a s g s e. Relative. 1920. 1921. September.. 135 ; 261,962 ! 1,084 May 116 132,622 549 June 160 173,885 720 July 107 90,636 375 August 106 84,918 351 September.. RAILROAD OPERATING STATISTICS. [United States Railroad Administration; March, 1920, on, Interstate Commerce Commission.] Net ton-miles, Net tons Net tons Net ton-miles, Net tons Net tons revenue and per per revenue and per per nonrevenue. train. loaded car. nonrevenue. train. loaded car. 1920. 1921. July.. 40,449,000,000 769 29.7 May 28,221,000,000 674 27.8 June 28,140,661,000 671 27.7 July 28,414,000,000 eeo 27.5 RAILROAD REVENUE-FREIGHT LOADED AND RECEIVED FROM CONNECTIONS. [American Railway Association. Carloads.] REVENUE-FREIGHT LOADED, CLASSIFIED ACCORDING TO NATURE OF PRODUCT. I p a r n G o d d r a u g i c r n a ts i . n s L to i c v k e . Coal. Coke. pr F o o d r u e c s t t s. Ore. c L h . a M n C e d . r i - L se . , M n i e s o ce u l s l . a- Total. i •' 1920. I August | 177,725 118,022 I 902,850 64,303 278,857 338,955 877,433 1,438,809 4,196,954 1921. i January j 177,222 139,455 730,603 44,618 200,070 37,408 728,667 877,475 2,935,518 February | 147,874 113,007 594,287 35,826 213,314 35,295 730,996 864,401 2,735,000 March 164,077 117,879 576,753 28,168 226,852 29,160 933,564 043,670 3,120,123 April.::: \ 145,041 119,241 583,716 20,075 206,617 24,980 922,058 024,625 3,046,353 Mav 161,133 111,416 657,022 21,622 207,598 100,396 899,233 006,632 3,165,052 June."..::::.: l i8i,oso 121,751 696,312 21,064 221,569 130,838 947,162 106,768 3,426,544 July 239,857 104,224 634,100 17,057 182,078 131,666 879,382 072,774 3,261,138 August ! 269,878 124,394 699,193 19,875 202,545 142,961 968,746 227,599 3,655,191 REVENUE-FREIGHT LOADED, CLASSIFIED ACCORDING TO GEOGRAPHICAL DIVISIONS. Eastern. Allegheny. h P o o n c t a a - s. w N e o st r e th rn - . w C e e s n t t e r r a n l . w S e o s u te th rn - . Total. 1920. August. 1,028,917 876,255 157,144 559,062 715,032 575,812 284,732 4,196,954 1921. January 664,020 620,842 121,948 452,091 390,569 447,637 238,411 2,935,518 566,600 92,633 440,897 380,515 395,047 224,145 2,735,000 624,606 105,377 515,636 429,911 448,772 257,657 3,120,123 613,045 118,170 489,587 398,453 434,190 245,893 3,046,353 651,670 137,324 468,284 453,876 431,815 249,350 3,165,052 June 826,-912 714,503 150,331 497,093 519,090 465,973 252,642 3,426,544 July 786,454 651,910 122,958 465,145 489,118 485,161 260,392 3,261,138 August 890,199 716,717 120,320 493,840 579,035 567,883 287,197 3,655,191 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1218 FEDERAL RESERVE BULLETIN. OCTOBER, 1921. TONNAGE OF VESSELS CLEARED IN THE FOREIGN TRADE. [Department of Commerce. Monthly average, 1911-1913=100.] Net tonnage. Per- j ;i Net tonnage. Percent- i cent- I Rela-| age j Rela-f Rela- age Rela- | tive. I Ameri-1 tive. j tive. Ameri- tive. American. Foreign. I Total. I can to i American. Foreign. Total. can to total. total. 1920. August 3,616,267 3,929,602 | 7,545,869 j 184 2,113,881 2,910,341 5,024,222 123 42.1 159 3,058,679 3,094,452 6,153,131 150 49.7 187 2,512,712 3,362,443 5,875,155 144 42.8 161 2,581,600 3.222,908 5,804,508 142 44.5 168 COMMERCE OF CANALS AT SAULT STE. MARIE. [Monthly average, May-November, 1911-1913=100.1 EASTBOUND. Grain other than wheat. Wheat. Flour. Iron ore. Total. Bushels, j Relative. Bushels. Relative. I Barrels. Relative, j Short tons. Relative. Short tons. Relative. 1920. September 3,102,770 ! 35 11,624,488 60 621,010 53 8,721,412 147 9,290,129 133 1921. April 7,418,' !, 592,826 54,540 95,328 518,458 May 12,431,592 140 12,609,469 890,330 77 | 2,652,033 3,407,827 49 June 11,358,929 127 10,418,433 1,150,240 99 j 3,892,791 4,628,067 66 July 10,839,026 122 7,878,077 1,119,140 96 4,356,760 5,011,900 72 August 10,298,759 116 10,132,267 1,232,250 106 4,384,949 5,128,043 73 September. I WESTBOUND. Hard coal. Soft coal. Total. Total freight. Short tons. Relative. Short tons. Relative. Short tons. Relative. Short tons. Relative. 1920. September.. 177,123 57 2,040,774 | 106 2,458,002 11,748,131 124 1921. April 109,719 259,288 438,673" 957,131 May 214,776 2,303,369 120 2,747,236' 110 6,155,063 65 June 247,048 3,027,177 158 3,451,409 139 8,079,476 85 July 445,754 144 2,486,990 129 3,126,683 126 8,138,583 August 489,142 158 2,369,833, 95 7,497,876 79 September.. PRODUCTION OF ELECTRIC POWER BY PUBLIC UTILITY POWER PLANTS. [U. S. Geological Survey.} Kilowatt hours. Kilowatt hours. P w r a o t d er u p c o ed w e b r y . Prod fu u e c l e s d . by Total. P w r a o t d e u rp c o ed w e b r y . Prod fu u e c l e s d . by Total. 1920. 1921. July. 1,393,987,000 2,227,954,000 3,621,941,000 May 1,322,201,000 1,941,565,000 3,263,766,000 June 1,215,976,000 2,027,902,000 3,243,878,000 July 1,226,779,000 2,043,197,000 3,269,976,000 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

OCTOBER, 1921. FEDERAL, RESERVE BULLETIN. 1219 BUILDING STATISTICS. BUILDING PERMITS IN 166 SELECTED CITIES. [Collected by the 12 Federal Reserve Banks.] NUMBER OF PERMITS ISSUED. 1 D c N i i t ( s i o 1 t e 4 r . s l ic ). t D c N i i t s ( o i 2 . t e 2 r s i 2 c ). t D c N i i t ( s o i 1 t e . r 4 s i 3 c ). t D c N i i t ( o s i 1 . t e 2 r s i 4 ) c . t D c N i i t ( s o i 1 t e . 5 r s i 5 ) c . t D c N i i t s ( o i 1 . t e r 4 s i 6 ) c . t! ' I i D c N i i ( t s 1 o i t e . 9 r s i 7 ) c . t D c N i i t s o i ( . t 4 e r s i 8 ) c . t D c N i i t s o i ( . t 9 e r s i 9 ) c . t D c N i i o t ( s . i 1 t e 4 r s 1 i ) c 0 . t D c N i i o t s . ( i t 9 e r s 1 i ) c 1 . t D c N i i o t ( s i 2 . t e r 0 s i 1 c ) 2 . t c T i ( t 1 o ie 6 t s 6 a ) l . 1920. August....... 1,765 5,071 3,602 2,837 2,007 \ 5,346 1,302 1,356 1,724 1,548 7,562 35,999 1921, May 2,412 8,146 5,107 4,170 2,770 6,132 1,998 2,528 2,655 2,473 8,525 50,373 June 2,517 7,534 4,564 4,045 2,800 5,930 1,939 1,971 2,166 2,617 8,199 47,156 July 2,209 7,501 3,678 3,278 2,564 5,392 1,815 1,753 2,240 2,475 7,925 43,429 August 2,206 8,188 4,222 3,756 3,437 6,157 1,971 2,390 2,653 2,814 10,187 50,730 VALUE OF PERMITS ISSUED. | District No. District No. District No. District No. District No. District No. District No. I 1 (14 cities). 2 (22 cities). 3 (14 cities). 4 (12 cities). 5 (15 cities). 6 (14 cities). 7 (19 cities). 1920. August 6,524,855 35,952,930 10,763,970 11,250,175 7,788,862 j 4,057,181 15,539,077 i 1921. May i 5,850,526 55,493,186 6,244,792 10,451,771 8,332,123 ! 5,674,822 14,914,403 June-. i 6,602,647 48,312,504 7,875,639 15,658.897 8,779,653 [ 4,723,709 20,593,319 July 6,289,448 64,146,117 5,875,671 9,342', 411 5,606,030 | 5,772,478 29,933,415 August I 5,857,057 55,534,223 6,379,857 10,857,711 8,190,936 ! 5,304,592 25,578,330 District No. j District No. i District No. District No. District No. Total (166 8 (4 cities), j 9 (9 cities). 110 (14 cities). 11 (9 cities). 12 (20 cities). cities). 1920. August. 2,751,877 3.303,129 ; 3,803,405 2,950,694 15,080,736 119,766,891 1921. May 2,696,521 I 4,574.734 ; 6,096,407 4,190,778 17,763,732 142,283,795 June 4', 448,228 1 5,602,586 ! 5,452,181 4,155,740 15,450,694 147,655,797 July.... 3,485,150 ! 3,906,381 5,496,947 4,133,026 15,298,705 159,285,779 August. 3,325,791 I 5,423,460 \ 7,529,619 6,401,268 17,226.365 157,609,209 VALUE OF BUILDING CONTRACTS AWARDED, BY FEDERAL RESERVE DISTRICTS. [F. W. Dodge Co.] VALUE OF CONTRACTS FOR ALL CLASSES OF BUILDINGS. District District District District District District No.l. No. 2. No. 3. No. 4. No. 5.1 No. 9.2 1920. August i 21,668,221 39,683,789 12,805,600 24,410,816 10,822,174 64,072,802 7,300,579 1921. May 17,954,234 58,816,766 | 23,373,200 33,915,207 23,023,500 54,867,976 8,841,467 June 15,308,072 63,561,928 | 14,796,800 39,928,314 20,428,761 45,199,007 8,762,123 July 19,298,334 54,500,566 ! 13,563,100 35,669,377 16,026,969 41,119,866 12,651,007 August.. 19,276,295 62,043,905 j 22,350,500 26,665,555 17,337,624 44,680,034 9,173,552 1 North and South Carolina not included prior to May, 1921. 2 Montana not included. VALUE OF CONTRACTS FOR RESIDENTIAL BUILDINGS. District District District District District District District No.l. No. 2. No. 3. No. 4. No. 5-1 No. 7. No. 9.2 1920. August 5,832,187 13,130,813 i 2,445,500 7,197,875 2,474,5 5,204,979 1,802,754 1921. May 6,933,658 36,963,442 6,846,800 9,188,212 6,961,450 I 9,779,947 2,323,242 June 6,531,152 34,355,048 3,543,700 8,198,377 4,090,859 i 9,880,273 2,554,420 July 6,672,758 22,546,142 2,971,900 8,319,248 5,335,545 j 7,382,427 3,758,504 August 6,702,583 36,061,717 5,331,500 8,209,645 5,938,417 ! 10,424,029 2,975,503 i 1 North and South Carolina not included prior to May, 1921. 2 Montana not included. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1220 FEDERAL RESERVE BULLETIN. OCTOBER, 1921. PRODUCTION AND SHIPMENTS OF FINISHED COTTON FABRICS.1 July, 1921. August, 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 goo h d it s e . g D o y o e d d s. P g r o i o n d te s d . Total. Total finished yards billed during month: to District 1 ... 11,598,255 18,643,683 10,529,836 45,559,624 14,914,899 20,671,092 12,500,238 52,575,398 2 7,405,056 • 2,122,166 4,004,107 19,999,113 7,801,482 2,373,173 3,920,889 18,646,418 '6| 3 14,867,583 4,742,474 10,863,158 6,229,464 6,913,754 14,972,575 4 5 5,936,236 193,126 6,129,362 5,468,177 153,884 5,622,061 6 . . .. 235,913 758,103 994,016 314,702 1,373,112 1,687,418 m 8 1,778,451 2,410,969 w j PH Total 30,043,043 26,459,552 j 14,533.^^3 85,323,724 34,728,724 31,485,015 16,421,127 95,915,235 Total finishing charges billed during month: District 1 $229,505 $745,18' ^487,599 $1,620,223 $282,083 $878,130 $532,564 $1,837,856 2 $124,276 $6fr ' ^ $165,663 $511,361 $135,643 $79,231 $152,846 $472,283 3 $155,345 $192 334 $370,037 $196,680 $280,346 «ttfV7 C7O 5 $120,954 $497 1 $121,451 $106,041 $90 $106,131 6 „ $3,988 $31,341 1 $35,329 $5,474 $56,622 1 «ftO fiOft 8 $25,600 $31,'948 Total , $634,068 $1,035,707 $653,262 $2,684,001 $725,921 $1,294,419 $685,410 $3,018,193 Total average per cent of capacity operated: District 1 - 57 62 65 60 72 69 72 69 2 66 51 i 39 60 87 54 54 65 3 67 59 l 64 76 75 78 5 87 87 77 77 6 54 104 8 .... 73 99 Average for all districts 65 60 61 62 76 68 69 71 Total gray yardage of finishing orders received: District 1 ... - 12,724,194 16,820,005 9,855,208 45,211,150 17,791,421 20,511,161 14,106,663 55,869,933 2 6,195,653 2,586,383 4,692,734 15,849,082 9,216,479 3,532,379 5,295,545 20,599,591 3 . .. 5,~558,733 6,424,959 13,656,773 5,724,209 6,154,224 13,146,095 5 4,900,160 139,803 5,039,963 7 785 136 KS QfiQ 7,844,105 6 130,569 1,323 597 1,454,166 204,958 1,257,793 1,462,751 8 .-... 1,523,304 2,818,937 i Total 29,509,309 27,294,747 14,547,942 82,734,438 40,722,203 31,514,526 19,402,208 101,741,412 Number of cases of finished goods shipped to customers (case equals approximately 3,000 yards): District 1 . 4,952 5,800 2 809 ! 2a 4S1 F. Ml 6,276 3,634 26,449 2 3,795 100 10 624 A AC\A 176 10,967 3 . 3,145 1,665 5^264 4^287 2,553 7,517 5 1,461 3,312 1,484 3,256 6 8 969 988 Total 13,353 7,565 2,809 43,650 15,906 9,005 3,634 49,177 Number of cases of finished goods held in storage at end of month: Districtl 3,930 3,137 3,032 20,107 4,626 3,313 3,489 22,391 2 2,746 208 7,974 2,609 283 8,285 3 192 325 5,409 224 348 5,995 5 257 1,344 275 1,338 6 44 53 8 553 351 Total 7,125 3,670 3,032 35,431 7,734 3,944 3,489 38,413 Total average work ahead at end of month (expressed in days): Districtl 6.1 5.8 14.0 8.9 6.8 6.7 13.0 8.8 2 7.8 . 4.9 10.0 6.6 9.0 6.8 18.0 8.3 3 9.9 16.0 13.0 8.9 14.0 11.0 5 8.8 8.8 20.0 20.0 6 15.0 14.0 8 6.5 10.0 Average for all districts 7.5 7.6 14.0 8.9 9.4 8.2 14.0 9.6 1 The National Association of Finishers of Cotton Fabrics, at the request of the Federal Reserve Board, has arranged for a monthly survey ithin the industry. The results of the inquiries are herewith presented in tabular form. The secretary of the association makes the following statement concerning the tabulation: mg 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 specific detail at hand, but according to our best estimate, it is probably well within the fact that the figures given for the various classes of work would cover, approximately, the following percentages of the entire industry: White goods, 72 per cent' dved goods 62 per cent; printed goods, 30 per cent. The figures given represent reports from exactly the same finishers for the two months, both for the totals and for the subdivisions, and therefore are strictly comparable. ' NOTE.—Many plants were unable to give details under the respective headings of white goods, dyed goods, and printed goods and reported their totals only; therefore the column headed "Total" does not always represent the total of the subdivisions, but is a correct total for the district. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

OCTOBER, 1921. FEDERAL RESERVE BULLETIN. 1221 REPORT OF KNIT-GOODS MANUFAC- Per cent TURERS OF AMERICA. of normal Dozens. production. The total production, of winter and summer underwear for the six months ending August Unfilled orders first of month 445,196 31 was as follows: New orders received during month 452,641 79.2 Total (A). 897,837 Number Actual Shipments during month 384,632 68.2 of mills produc- Per cent Cancellations during month. 4,662 8.2 report- tion of normal. ing. (dozens). Total (B). 389,294 Balance orders on hand Aug. 1 (A minus B) 508,543 1921. Production 292,066 51.0 March 421,140 50.1 April 401,938 49.6 May 505,347 55.4 Thirty-four representative mills which re- June 559,591 65.5 July 490,640 51.2 ported for July and August furnish the data A W u i g n u te s r t underwear (August)... 2 4 4 1 5 2 , , 5 6 0 2 3 7 7 72 1 . . 6 1 for the following table: Summer underwear (August)., 167,124 69.5 [In dozens.] 1 5 other mills report closed. July (34 August Order and production, report for month end- mills). (34 mills). Gain. Loss. ing August 31, 1921, follows. The number of mills reporting was 46. Unfilled orders first of month 372,514 395,902 23,388 New orders 238,258 444,243 205,985 Shipments 233,972 360,787 126,815 Cancellations 11,485 4,457 7,028 Production 255,829 279,600 23,771 RETAIL TRADE. The following tables are a summary of the The tables for the month of August are based data obtained from 337 representative depart- on reports from 23 stores in district No. 1, 55 ment stores in the 12 Federal Reserve districts. stores in district No. 2, 49 stores in district In districts Nos. 1, 2, 5, 6, 7, 9, 11, and 12 the No. 3, 16 stores in district No. 4, 23 stores in data were received in (and averages computed district No. 5, 29 stores in district No. 6, 44 from) actual dollar amounts. In districts Nos. stores in district No. 7, 20 stores in district 3, 4, 8, and 10 the material was received in the No. 8, 14 stores in district No. 9, 13 stores in form of percentages, and the averages for the district No. 10, 20 stores in district No. 11, and cities and districts computed from such per- 31 stores in district No. 12. Separate figures centages were weighted according to volume of for Birmingham, Chicago, Kansas City, and business done during the calendar year 1920. Denver are shown for the first time this month. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1222 FEDERAL RESERVE BULLETIN. OCTOBER, 1921. CONDITION OF RETAIL TRADE IN THE FEDERAL RESERVE DISTRICTS. [Minus sign (—) denotes decrease.] Percentage of increase in net sales as compared with corresponding period previous Ratio of outstanding orders at close of year. month to total purchases during previous calendar year (per cent). District and city. Jan. 1,1921, to close of— July 1,1921, to close of— Apr., May, June, July, Aug., Apr., May, June, July, Aug., 1921. 1921. 1921. 1921. 1921. 1921. 1921. 1921. 1921. 1921.' Apr., May, June, July, Aug., 1921. 1921. 1921. 1921. 1921. i District No 1: Boston - 1.3 - 2.4 - 1.5 -11.5 — 2.1 3.6 2.2 1.5 -11.5 - 6.8 5.2 5.7 6.9 6.1 7.2 Outside — 3.8 —11.4 - 8.5 -14.1 -10.5 - 5.5 - 6.8 7 1 -14.1 -12.4 9.6 8.8 5.5 7.5 7.4 District - 1.9 - 4.5 - 3.1 -12.3 - 4.5 1.4 .1 — . 5 -12.3 - 8.4 5.8 6.2 6.7 6.3 7.3 District No. 2: - 1 New York City and Brooklyn... - 2.8 - 8.7 -12.0 - 4.1 — 3.8 - 6.4 - 8.8 -12.0 - 8.2 6.7 6.6 5.4 6.9 7.5 Buffalo - 3.4 - 9.1 - 6.2 5.1 3.5 - 9.1 - 7.6 5.5 8.3 9.2 10.0 9,2 — 4.4 13 8 — 6.4 — 2.5 - 2.8 -13.8 —10.2 4.5 5.5 6.0 5.7 Rochester - 2.2 2.4 - 6.0 - 3.1 9.1 7.9 - 6.0 - 4.5 5.3 4.2 7 5 11.7 Syracuse — 3.9 - 9.2 -14.3 — 9.4 5.2 - 3.3 -14.3 -12.0 3.7 Outside 5.8 - 9.9 — 7.7 -14.9 -11.2 2.2 - 4.6 - 5.3 -14.9 -14.3 10.0 7.1 7.3 8.6 8.3 District - .5 -10.0 - 7.1 -11.5 - 5.2 - 2.1 - 4.3 - 5.1 -11.5 - 8.6 6.5 6.2 6.2 8.0 8.3 District No. 3: Philadelphia.. - 2.5 - 8.8 - 9.5 -13. 8 - 2.9 1.8 - 1.9 - 3.3 -13.8 - S.5 8.6 7.5 8.2 8.1 8.9 Outside 5.8 - 4.8 - .8 - 6.4 g y 3.7 .7 1.9 - 6.4 - 7.8 4.9 5.0 5.4 7.5 8.1 District — .4 - 7.8 - 7.3 | -11.8 - 4.0 2.3 - 1.2 - 1.9 -11.8 - 8.3 7.8 7.0 7.5 7.9 8.7 District No. 4: Cleveland. -17.9 —21. 8 -29.2 —22.4 -10.1 -11.8 -29.2 -22.8 5 5 5.3 8.6 8.6 Pittsburgh 1.3 - 9.9 —16 3 —22.5 5.7 4.9 -16.3 -17.8 5.1 4.3 5.8 7.1 Outside .2 —11.0 -17.0 —11.0 2.9- 2.1 -17.0 -17.4 5.8 5.3 9.4 11.3 District .8 - 5.5 -14.1 -21.4 —21.0 2.3 - .3 - 1.1 -21.4 -19.3 5.3 5.4 4.7 7.2 8.0 District No. 5: Baltimore - 6.8 — 7.1 - 7.0 -16.9 -17.4 - .6 - 2.0 - 2.9 -16.9 -17.2 6.1 5.4 7.9 9.5 9.8 Richmond 3.1 - 3.0 - 4.1 -15.9 - 4.9 4.9 3.2 1.8 -15.9 -11. 0 4.6 7.2 10.7 12.5 12.0 Washington... 5.3 4.3 4.9 - 4.2 - 1.4 6.9 6.3 4.9 - 4.2 - 2.9 4.8 6.8 7.7 7.6 6.9 Other cities... 3.7 - 5.2 - 3.1 -10.1 - 9.2 8.7 5.4 3.7 -10.1 -10.1 5.1 6.6 8.9 9.6 9.0 District - .7 - 3.0 — 4.2 -11.7 -9.8 3.6 2.1 .9 -11.7 -10.8 5.4 5.6 8.3 9.2 9.0 District No. 6: Atlanta -32.1 -35.1 -25.5 —36.4 2 4 19.9 Birmingham.. 32.9 1 36.2 5.5 Nashville -19.0 ! -22.3 -15.7 —11.8 22.3 —17.5 4.9 9.3 7.6 New Orleans — 8.3 1 — 5-fi 10.9 — 4.9 8 6 9 9 8.5 10.1 11.8 Outside —18.6 -30.0 -28.0 -15.8 -30.0 -29.0 3.1 6.3 7.2 District —19.5 —16.8 -17.0 -21.2 -21.3 - 8.7 -10.7 —12. 0 -21.2 -21.7 5.1 4.6 5.4 7.5 8.0 District No. 7: Chicago 12.4 10.4 6.8 Outside —20.3 — 18.9 8.0 District - 3.1 -12.5 -17.3 -14.7 -18.8 — 5.6 - 8.0 -11.6 -14.7 -17.1 5.8 4.0 5.4 8.9 7.9 District No. 8: St. Louis 13 2 8 9 13 2 11 1 8.2 7.5 Louisville 20.9 9.5 20 9 15.0 5.7 8.3 Memphis -26.6 -21.4 -26.6 -24.3 5.9 8.9 Outside —12.9 -14.7 12 9 —13.0 6.6 11.4 District - 2.9 - 1.6 - 7.9 —16.5 -11.7 - 1.7 — .4 - 1.8 —16.5 -13.9 7.1 5.1 5.6 7.4 8.2 District No. 9 - 5.4 -14.9 —16.8 -21.8 -11.0 -10.7 - 7.0 —15.6 -21.8 -23.6 3.5 9.5 9.4 10.5 8.0 District No. 10: Kansas City... 9 4 10 1 7.6 Denver .7 7 3 8.5 Outside 16.6 18.1 8.5 District - 2.8 - 5.3 -10.8 -10.9 - 8.9 - 1.8 - 3.8 - 4.3 —10.9 i —11.6 4.8 3.9 5.9 9.9 8.1 DistrictNo.il.... —17.7 -17.4 -17.4 -22.1 -23.3 -11.2 -13.0 -15.2 -22.1 -22.7 4.6 4.4 6.4 10.4 8.7 District No. 12: Los Angeles... 3.4 8.8 2.9 - 1.5 .4 9.7 9.5 8.0 - 1.5 9.8 9.2 11.1 11.9 10.1 San Francisco. - 9.6 - 2.4 - 5.7 -11.6 - 1.6 - 5.2 - 4.5 — 4.1 -11.6 7.5 9.1 10.3 12.1 10.4 Oakland 1.4 — 2.1 - 3.9 - 7.9 - 8.4 2.0 1.5 .5 - 7.9 4.8 5.0 11.0 Sacramento... - 7.3 14.8 -13.8 -11.4 - 8.5 - 5.1 14.0 - 9.2 —11.4 Seattle -16.1 I —16.8 -13.5 -18.6 -12.5 1 -15.7 -13.5 —15.6 -18.6 6.7 5.2 6.2 7.0 8.7 Spokane - 6.4 -17.9 -23.4 -22.0 - 8.6 - .9 - 5.4 - 8.2 -22.0 7.9 4.0 9.2 9.5 7.7 Salt Lake City. - 8.7 —18.7 - 6.1 -16.2 -15.3 .1 - 3.5 - 7.3 -16.2 4.9 6.0 4.0 9.6 10.5 District - 9.3 - 4.1 - 7.8 —12.9 - 6.2 - 3.8 - 6.9 - 6.6 -12.9 8.7 6.7 8.4 10.0 10.0 United States - 4.2 - 8.6 -10.7 -15.1 -11.9 — 2.6 - 4.3 - 6.0 -15.1 -14.2 6.0 5.5 6.4 8.4 8.3 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

OCTOBER, 1921. FEDERAL RESERVE BULLETIN. 1223 CONDITION OF RETAIL TRADE IN THE FEDERAL RESERVE DISTRICTS—Continued. [Minus sign (—) denotes decrease.] Ratio of average stocks at close of each Percentage of increase in stocks at close of month compared with— month to average monthly sales for same period (per cent). District and city. Same month previous year. Previous month. Jan. 1,1921, to close of— July 1, 1921, to close of— Apr., Mav, June, JulV, Aug., Apr., Mav, June, July, Aug., Apr., May, June, July, Aug., 1S21. 1921. 1921. 1921. 1921. 1921. 1921. 1921. 1921. 1921. 1921. 1921. 1921. 192i. 1921. District No. 1: Boston -18.9 -18.7 -16.6 -15.6 -17.9 3.5 -2.9 -3.4 - 3.4 1.7 295.5 289.8 283.0 422.1 405.0 Outside -17.5 -16.5 -17.1 -16.7 -19.1 1.1 .2 -5.8 - .6 . 5 423.8 424.5 416.0 432.6 458.0 District -18.5 -18.1 -16.8 -15.9 -18.2 2.8 -2.0 -4.1 — 2.6 1.4 324.7 319.5 312.0 425.1 420.0 District No. 2: New York City and Brooklyn . .. -22.0 -16.8 -17.6 -20.6 -23.1 5.1 -2.6 -5.9 - 3.9 4.0 322.5 309.5 329.6 443.6 455.6 Buffalo -10.4 -12 2 -18.3 -21.6 .3 -8.4 - 3.1 4.8 352.6 393.4 470.9 462.0 Ne vark -25.8 -23.2 24.6 - 5.9 .2 -8.9 4.5 7.0 340.4 330.3 451.9 459.1 Rochester — 29.2 -31.0 -30.2 -25.1 -6.0 -2.7 - 2.8 5.4 392.4 387.0 433.8 445.2 Syracuse -12.6 21.5 23.1 -24.6 2 1 .8 7.6 4.9 446.5 411.7 469.4 498.1 Outside -20.7 -10.0 - 5.0 - 8.3 - 9.1 1.1 1.6 3.3 - 6.8 1.0 394.4 482.2 472.5 487.3 557.4 District -21.6 -17.3 -11.5 -20.6 -19.7 -2.1 -5.6 - 4.2 5.2 342. 5 323.5 333.9 431.6 453.7 District No. 3: Philadelphia.. -20.5 -17.0 -11.9 -13.6 -19.1 1.4 - .5 - .9 - 4.9 -2.5 313.5 314.2 311.9 469.2 442.2 Outside -13.0 - 8.2 -12.9 -15.2 -20.0 .8 2.7 -4.6 - 4.3 4.6 423.4 447.7 432.3 479.0 525.5 District -18.7 -14.9 -12.1 -14.0 -17.3 1.3 .2 -1.7 - 4.7 - .7 310.4 346.1 341.0 471.9 462.8 District No. 4: Cleveland. -28.7 -28.0 27.9 -28.7 1.0 2.6 — 6.0 7.8 328.7 363.1 476.3 461.0 Pittsburgh -14.1 -14.9 -14.9 -13.4 -4.9 -3.6 - 5.4 6.2 302.4 287.7 362.7 443.1 Outside - 9.8 - 9.0 - 9.1 -20.3 -2.7 1.7 -10.4 7.3 418.1 378.9 483.1 588.9 District . -17.8 -18.2 -19.1 -19.6 -18.8 4.2 -3.1 -2.8 - 6.1 6.8 327.4 334.0 319.5 416.9 467.3 District No. 5: Baltimore -26.0 -25.3 -24.2 -27.8 -23.1 3.6 -3.1 -6.6 - 4.2 6.7 327.1 327.9 323.7 463.2 475.1 Richmond -13.6 -14.6 -14.2 -16.9 -15.0 4.3 - .2 -2.2 - 1.9 5.4 355.9 358.5 350.8 429.5 459.0 Washington... -29.0 -29.2 -27.5 -23.9 -20.8 - .5 -2.8 - 2.3 8.9 344.1 315.3 310.6 434.8 458.3 Other cities... -23.3 -24.2 -21.0 -18.2 -18.6 3!o -1.7 -1.2 2.3 4.7 400.5 394.6 391.7 480.5 495.3 District -25.8 -25.8 -24.2 -24.1 -22.3 4.2 -1.7 -4.1 - 2.2 7.0 345.3 345.6 341. 3 453.3 471.2 District No. 6: Atlanta -21.8 -23.3 — .6 8.3 499.1 656.1 Birmingham.. 20.3 0.02 809.7 Nashville -19.1 -22.9 -22.8 -2.8 - 2.5 10.0 442.7 633.3 556.7 New Orleans — 6.6 — 15 2 — 17.4 -4.9 2.4 3.2 350.8 510.9 510.9 Outside — 26.4 -23.4 -21.4 -3.6 - 2.6 9.9 533.6 644.3 805.8 District -11.6 -11.5 -17.4 -21.6 -19.8 .4 -2.7 -2.8 - .4 5.3 428.7 417.8 425.3 571.6 612.2 District No. 7: Chicago... 14.3 12.2 463.1 Outside -23.2 7.0 517.5 District -21.3 -18.8 -20.6 -20.0 -21.6 - .7 -3.1 -4.0 - 1.2 8.0 385.9 411.4 428.3 500.4 505.2 District No . 8: St Louis 6 8 7 6 3.4 10.2 410.3 419.8 Louisville. -18.4 — 11.5 - 3.4 11.2 455.6 729.3 Memphis - 7.4 -20.6 - 6.9 3.8 475.7 463.3 Outside 15 6 12 9 9.6 11 2 337.7 521.5 District -12.9 -11.0 - 9.9 - 9.3 -10.7 .2 -1.7 - .5 - 3.7 9.4 388.1 329.6 344.2 426-. 1 461.8 District No. 9 -19.1 -24.3 -27.4 -21.6 -21.1 -2.9 -4.2 -5.7 - .6 6.9 District No. 10: Kansas City — 13.1 10.3 544.1 Denver 13.9 13.2 443.3 Outside ... -19.8 16.4 560.2 District -21.6 -19.8 -17.0 -15.0 -15.1 1.7 -4.3 -9.0 6.8 12.7 346.9 359.2 378.1 497.1 527.9 DistrictNo.il.... -18.1 -21.0 -22.6 -27.6 -25.5 .5 -3.4 -4.6 - 2.2 16.9 339.6 407.5 383.5 543.2 594.8 District No. 12: Los Angeles... -12.8 - 9.4 -17.6 - 3.6 - .6 4.5 2.3 -9.1 7.5 .6 367.9 374.1 376.0 393.7 394.1 San Francisco. -13.8 -17.6 -16.3 -14.6 - 9.2 4.4 -2.3 -8.6 - .6 7.9 402.6 383.8 394.4 406.0 404.5 Oakland -23.5 -16.5 -18.4 -16.6 -12.7 2.4 6.8 -4.7 7.0 454.3 464.2 468.2 490.7 498.9 Sacramento... -30.5 -29.4 -32.6 -32.4 -14.5 3.0 -6.9 -6.8 I 2*. 6 22.9 382.6 422.0 424.3 448.1 Seattle -28.7 -27.4 -28.3 -37.0 -23.2 2.6 -3.0 -5.1 - 6.8 13.5 "399." T 423.4 410.1 410.8 404.0 Spokane -17.7 -17.1 -16.3 -17.2 — 15.5 9.2 -2.5 -7.1 -13.5 7.3 617.8 602.2 575.5 575.5 586.1 Salt Lake City -11.9 -10.8 -25.7 -30.2 -24.7 1.2 -3.2 -8.3 - 7.6 13.1 District -13.9 -14.2 -20.9 ! -18.3 -15.5 3.0 -1.0 -7.6 - .7 4.6 477.9 466.6 469.7 478.3 455.7 United States — 19.0 -17.7 -17.4 j -19.1 | -19.0 1.9 -2.4 -4.4 - 2.0 6.6 367.8 366.0 369.3 468.0 487. G Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1224 FEDERAL RESERVE BULLETIN. OCTOBER, 1921. WHOLESALE TRADE. PERCENTAGE OF INCREASE (OR DECREASE) IN NET SALES IN AUGUST, 1921, AS COMPARED WITH THE PRECEDING MONTH (JULY, 1921). Groceries. Dry goods. Hardware. Bo s o h t o s e s a . nd Furniture. Drugs. su A pp u l t i o es. Stationery. Far m m e n im ts p . le- A tir u e t s o . district. c P e e n r t. b N fi e r u r m m o s - f . c P e e n r t. b N fi e r u r m m o s - f . c P e e n r t. b N fi e r u r m m o s f - . c P e e n r t. b N fi e r u r m m o s - f . c P e e n r t. b N fi e r u m r m o s. - f c P e e n r t. b N fi e r u r m m o s f - . c P e e n r t. b N fi e r u r m m o s f - . c P e e n r t. b N fi e r u r m m o s f - . c P e e n r t. b N fi e r u m r m o s. - f c P e e n r t. b N fi e r u r m m o s - f . No 2 +24.7 9+51.4 3+ 1.2 10+44.4 7 + 7.5 3 + 3.7 5 No 3 +10.4 48 + 3.1 25 No. 5. + 0.7 9+50.6 8+12.7 21+84.3 8 +27.2 3 No. 6 +10.2 27+45.5 18+17.9 17+51.3 10+47.9 8 No 7 +15.4 14+43.1 6 +60.4 7 No. 9. . . +52.9 3+ 0.9 8 -27.5 6 No 10 -7.2 4+29.1 3+ 5.2 3 +64.8 4+ 5.9 3 No. 11 + 1.8 12+54.2 8+18.4 11 +12.7 7 No. 12 -9.8 29+29.0 10+ 6.9 23+29.8 13( + 18.9 15+ 7.6 8-3.7 20+36.1 28+11.8 20+ 6.7 13 PERCENTAGE OF INCREASE (OR DECREASE) IN NET SALES IN AUGUST, 1921, AS COMPARED WITH AUGUST, 1920. Groceries. Dry goods. Hardware. Shoes. Furniture. Drugs. su A pp u l t i o es. Stationery. Far m m e n im ts p . le- A tir u e t s o . District. Per b N e u r m o - f Per b N e u r m o - f Per b N e u r m o - f Per b N e u r m of - Per b N e u r m of - Per b N e u r m o - f p Num- Per b N e u r m of - Per b N e u r m o - f Per b d e u r m o - f cent. firms. cent. firms. cent. firms. cent. firms. cent. firms. cent. firms. cent. firms. cent. firms. cent. firms. j No.2 -13.4 -22.4 3-45.1 10-25.4 7 + 30 3 -34.1 5 No.3 -16.1 48 -37.2 25 1 . . No. 4 -20.4 11-13.2 4-41.1 7 1 -21.2 7 No. 5. . ... -27.0 9-32.9 8 38.0 21-21.3 k—35. 5 3 No.6 27-33.0 18-48.2 17-42.6 10-26.8| 8 No.7.. -2L 2 17 -30.0 10 -26.2 7 No.9., -41.1 3-36.9 8 58.6 6 No. 10. . .-21.8 4-39.0 3-30.0 3 -36.1 4— 15 2 3 No. 11 -33.7 12-55.7 8-36.7 11 -24.2 7 No. 12. -28.2 29—41.1 10-30.0 23-22.5 13-17.3 15-17.6 8-18.5 20-27.8 28-44.6 20-11.4 13 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

OC!TOBER, 1921. FEDEKAIi RESERVE BULLETIN. 1225 COMPARATIVE WHOLESALE PRICE LEVELS IN PRINCIPAL COUNTRIES. The foreign index numbers published here- 1921. Complete information regarding the computation of the United States Bureau of Labor Statistics appears in the publications of that with are constructed by various statistical bureau, and a description of the index number of the Federal Reserve offices according to methods described, in most Board may be found in the BULLETIN for May, 1920. Details as to the method used by the 0konomisk Revue in constructing its index of cases, in the BULLETIN for January, 1920.1 wholesale prices in Christiania are not available in this country. The Danish index has been constructed only recently, is based upon the In the following table the all-commodities prices of 33 commodities, and is roughly weighted according to conindex numbers for the whole series of countries sumption. The new British index number, compiled by the Board of Trade, will be found on p. 1226 of this issue of the BULLETIN. It has been appear together to facilitate the study of revised and now uses prices in 1913 as a base. In the case of the two American index numbers, 1913 is used as the basis in the original comcomparative price levels. putations. In the other cases in which 1913 appears as the basis for the computation, the index numbers have been shifted from their original bases. The computations in these cases are, therefore, only approxi- 1 A description of the method used in the construction of the Swedish mately correct. In a few cases July, 1914, or the year immediately preindex number appeared in the BULLETIN for February, 1921, for the new ceding that, is used as the base. The figures are for the most part re- Italian index number in the April, 1921, issue of the BULLETIN, and the ceived by cable, and the latest ones are subject to revision. In cases method used by the Frankfurter Zeitung hi the case of the German where the index numbers were available they have been published for index number was described in the BULLETINS for February and March, the war years in various issues of the BULLETIN in 1920. INDEX NUMBERS OF WHOLESALE PRICES (ALL COMMODITIES). Aus- R F t U S q B i e e o u t n o ( s a d n o 9 i e a t e t s 0 t e r r e r a ) v d s a d . - ; e 2 l o t B U t S i q f S i c u t o u n t s L a a r n o i t a e ( t t s e t 3 i e b a ) a s s 1 d u . o - - ; 2 5 r c U o B T i K d m t ( n o i r o 1 i o e i a m n a 5 m t f s d r g e 0 ) o d ; e d - . d- ( U 4 S t m K d 5 i n t o e i a o i s n m c t t d ) o i g e . i ; s " m d - - t - ( G l t 4 F l e i 5 t m a e s r B i t a e i n t o c n S i u n s e q o d ) t l r c - u a m d . i a e 3 - - e e t ; - e ( 1 3 I a B m 9 t 8 P u t f h 2 t a a t 0 n o r i e e c l , e o c t d y r r o s h i f e ) i j l 7 m . - i i . - 2 6 - ( Z 7 F m t f m 7 e i u r G e a i a r o c t s e t n n u d o e ) r y k ^ n - i r m - ; - g - H S t t S q i i a w d o v u n ( n e n e o 4 d n s d i 7 t e n ) a s e l . g k - n 6 s- ; N ( C 0 9 R a m t 3 o m i k h n e e r o o r i s v c l w i s d a n ) o s u k . a , i o t m * e - i y - - - ; ( t 3 F i m m 3 D t d i i n e e o a c e a s n r d o n ) k n d m i - . - ; ' s e - - ( B 5 J T m J t 6 a a i a o e p f o n c p o s k d k a o ) a r y n i . m n 2 - o o ; f - o a ( B w 9 t f n t m r 2 m C i C u d e a s o o a r l o t c e i i e m d S l o n n c a t a i t m s - h s n - - u a u ; - - s C m D t q L i a o e ( u e n a 2 p n n o a b 7 a s t t d 2 o ) a r o a r . t - 5 - f ; t D m I m i S c t c n c i e C e t u s e o o d a p n t a s d m t i t a t ) l ( i a a i - . r 7 s - - ; 8 , o t - 5 - f ties).2 1913 100 100 100 100 100 100 8 100 100 100 1914 100 101 101 95 »100 116 io [{k "100 9o 12100 101 is £66 1915 101 126 137 133 145 159 138 97 141 110 1916 . 124 159 187 202 185 I 233 164 117 132 135 1917 176 206 262 299 244 341 228 147 i* 155 177 1918 J 196 226 339 409 339 345 293 192 170 206 1919 206 212 242 357 364 330 322 294 236 180 217 1920 233 243 291 510 624 1,522 347 377 382 259 218 246 204 1920. August 234 250 320 298 501 625 1,528 365 417 385 235 236 244 209 September. 226 242 318 292 526 655 1,560 362 425 394 230 230 241 208 1921. January 163 177 251 232 407. 642 1,603 267 344 341 201 196 208 178 February... 154 167 230 215 377 613 1,473 250 319 290 195 192 199 174 March 150 162 215 208 360 604 1,419 237 312 280 191 181 194 175 April 143 154 209 199 347 584 1,410 229 297 270 190 171 187 183 May 142 151 205 191 329 547 1,428 218 294 257 191 166 183 184 June 139 148 202 183 325 509 1,387 218 294 254 192 162 179 178 July 141 148 198 185 330 520 1,467 211 300 253 1% 159 176 183 August 143 152 194 183 331 542 1,723 198 256 199 174 184 September. 342 1,777 1 Index numbers for 1920 and thereafter based upon prices of 76 commodities. Computations arrived at by the method described on p. 465 of the BULLETIN for April, 1921. 2 Average for the month. « End of month. < Beginning of month but not always the first. & Middle of month. « End of year and end of month. i First of month. s July 1,1913, to June 30,1914=100. »Middlo of 1914=100. 10 Dec. 31,1913-June 30,1914-100. 11 July 1,1912-June 30,1914=100. 12 July, 1914=100. is End of July, 1914-100. 14 Last six months of 1917. In the following tables the index numbers for referred back to the 1913 base and it is thereindividual groups of commodities are given for fore impossible to compare present levels with each country separately. Reference should be prewar levels in these cases. No group index made to the preceding table for the "all com- numbers are compiled by the Bank of Japan modities7' indexes. In the case of the Italian and the Danish index published by the Figroup index numbers, Prof. BBaacchi's new com- nanstidende has only two group indexes, one putations only are given for food and one for "other commodities." These can not be Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1226 FEDERAL RESERVE BULLETIN. OCTOBER, 1921. GROUP INDEX NUMBERS—UNITED STATES—BUREAU OF LABOR STATISTICS. [1913-100.] Date. pr F od a u r c m ts. F e o t o c d . , C c l l o o t t h h s i n a g n . d l F i u g e h l t i a n n g d . M p e r t m o a e d l t u s a c l t a s n . d m b L a u u t i a e m l n r d b d i i e a n r l g . a C n h d e m d i r c u a g l s s . fu H g r o o n o i u d s s s h e . ing la Mi n s e c o e u l s - . com t A i m l e o l s d . i- 1913 100 • 100 100 100 100 100 100 100 100 100 1914 103 103 98 96 87 97 101 99 99 100 1915 105 104 100 93 97 94 114 99 99 101 1916 122 126 128 119 148 101 159 115 120 124 1917 . . 189 176 181 175 208 124 198 144 155 176 1918 220 189 239 163 181 151 221 196 193 196 1919 234 210 261 173 161 192 179 236 217 212 1920 218 239 302 238 186 308 210 366 236 243 August, 1920 222 235 299 268 193 328 216 363 240 250 1921. January... ..... 136 162 208 228 152 239 182 283 190 177 February 129 150 108 218 146 221 178 277 180 167 March. 125 150 192 207 139 208 171 275 167 162 April 115 141 186 199 138 203 168 274 154 154 May 117 133 181 194 138 202 166 262 151 151 June 113 132 180 . 187 132 202 166 250 150 148 July 115 134 179 184 125 200 163 235 149 148 August 118 152 179 182 120 198 161 230 147 152 ALL COMMODITIES GROUP INDEX NUMBERS—UNITED KINGDOM—BOARD OF TRADE. [1913=100.] Other Cereals. an M d e f a i t sh. f O o t o h d e s r . T f o oo t d a . l Ir s o t n e e a l n . d me a t n a d ls Cotton. te O x t t h il e e r s. a O rt t i h c e l r es.no T t o f t o a o l d. m A o l d l i t c i o e m s - . minerals. 1920 average 273 263 278 272 406 252 480 362 274 340 314 August, 1920 279 279 268 275 434 264 506 342 270 347 320 1921. January 245 285 251 257 359 213 224 220 221 248 251 February 212 266 227 234 320 201 195 201 216 228 230 March 205 251 229 228 283 192 173 179 205 209 215 April 200 245 224 222 259 192 181 170 196 202 209 May 197 220 222 213 250 193 183 166 201 201 205 June 199 219 218 212 240 189 180 162 199 196 202 July 200 214 218 211 229 185 180 161 194 192 198 August 204 217 214 212 222 172 176 159 189 186 194 GROUP INDEX NUMBERS—UNITED KINGDOM—STATIST. [1913=100.] Date. f V t o a e o b g d l e s e - , ! j f A m oo n a d i l - s. S c f u e o g e f a , - r, s F tu o f o f d s - . e M ra i l n s - . t T il e e x s - . d S r u ie n s - . M ria a l t s e . - i m c t A o i o e m l d l s - - . Date. f V t o a e o b g d l e s e - .f A m o n o a i d l - s. Su t c e g o a f a ' r - . , |F tu o l o f d s - .e M r i al n s - .t T i e l x es - .d S r u i n e - s. M r a ia t l e s - .m i c t A o o i l d e m l s - - . 1913 100 100 100 100 100 100 100 100 100 1921. 1914 110 100 107 105 90 97 105 98 101 January . 234 283 192 251 225 198 230 219 232 1915 155 125 130 137 109 111 131 119 126 February 206 270 187 234 200 179 224 203 215 1916 193 152 161 169 140 152 163 153 159 March. 214 262 182 232 179 171 221 193 208 1917 252 192 213 218 152 228 212 198 206 April.. 212 249 180 225 176 172 199 184 199 1918 248 210 238 229 167 265 243 225 226 May... 211 223 158 209 177 164 192 179 191 1919 252 215 275 238 190 271 26S 243 242 June.. 226 206 156 207 157 164 181 168 183 1920 321 264 366 301 269 299 290 285 291 July... 222 212 144 206 108 167 183 174 186 August, 1920. 317 295 404 319 281 298 278 285 298 August 221 213 159 207 156 160 180 1G8 183 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

OCTOBBE, 1921. FEDERAL RESERVE BULLETIN. 1227 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 e o b g d l e e s - . c S c o o a u f n c g f o e d a e a 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 i n e - s. m R r (2 i a a a 5 t w l ) e s . - m i c t A o i o e m l d s l - - . Date. f A o m o n a d i l - s.f V t o a e o b g d l e e s - . c c S o o a u f c n g f o e d a e a 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 ) e s . - m i c t A o i o e m l d l s - - . 1913 100 100 100 100 100 100 100 100 100 1921. 1914 103 103 106 104 98 109 99 101 101 January.... 483 334 337 397 341 460 445 415 407 1915 .. 126 126 151 131 164 132 145 145 137 February 452 317 338 378 300 398 422 378 377 1916 162 170 164 167 232 ISO 199 206 187 M arch. 406 322 367 366 289 375 392 355 360 1917 215 243 201 225 271 303 302 291 262 1 April 306 348 359 372 281 314 371 328 347 1918 286 298 231 281 2S3 460 420 387 339 May. 379 346 317 356 266 282 355 309 329 1919 . 392 313 253 336 272 444 405 373 357 J une 349 368 338 357 261 278 341 300 325 1920 503 427 422 459 449 737 524 550 510 July. 353 304 393 366 253 290 343 301 330 September, August 371 337 352 355 245 321 356 312 331 1920 531 412 544 487 468 715 540 558 526 September.. 359 311 389 347 253 388 370 338 342 i GROUP INDEX NUMBERS—ITALY—RICCARDO BACHI. [1920-100.] f V t o a e o b g d l e e s - , A f m o n o a d i l - s. C ic h a e l m s. - t T il e e x s - . M e m a a r n l a e i s d n l t . s - - B m ri i u a n a i l g t l s d e . - -O v t u p a e r c t b g h o t l s e e d e . - r - d S r u ie n s - . m i c t A o i o e m l d s l - - . f V t o a e o b g d le 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 m a a r n l e a i s d n t l . - s - B m ri i u n a a i l g t l s e d . - O v t u p a e c r t b h g o ts l e d e e . - r - d S r u i n e - s.m c it A o i o m e l d l s - - . August, 1920. 101 103 102 95 97 110 92 101 100 1921. April 106 116 109 111 105 94 1921. May 102 112 107 110 95 88 January 107 121 113 123 107 103 June 97 101 102 95 90 81 February— 103 120 117 127 107 98 July 100 109 95 92 87 83 March.... 108 117 87 72 113 123 104 97 August 107 113 96 87 87 GROUP INDEX NUMBERS—GERMANY—FRANKFURTER ZEITUNG. [Middle of 1914=100.] A p t u g u r r c o r i t c a d s u l . - l- le t T a il t e e h x s e - , r. M a i l n s e . r- l M an i e s o ce u l s - . m c ti A o o e m l d s l . i - - A p t u g u r c r o r i t c a d s u l . - l- le t T a il t e e h x s e - , r. M a i l n s e . r- l M an i e s o ce u l s - . m c t o A i o e d m l s i l . - - 1920. 1921. Average for the year.. 1,232 3,175 1,733 1,440 1,522 Beginning of— Beginning of October 1,344 2,943 1,734 1,592 1,582 April 1,195 2,153 1,608 1,500 1,410 May 1,169 2,125 1,566 1,617 1,428 1921. June , 1,116 1,907 1,524 1,633 1,387 Beginning of— July , 1,270 2,153 1,613 1,588 1,467 January 1,353 2,643 1,678 1,575 1,603 August 1,881 2,289 1,636 1,550 1,723 February 1,265 2,507 1,580 1,525 1,473 September 1,845 2,616 1,748 1,608 1,777 March 1,204 2,371 1,552 1,517 1,419 October... 1,995 3,270 2,112 1,733 1,993 GROUP INDEX NUMBERS—SWEDEN—SVENSK HANDELSTIDNING. [July 1,1913-June 30,1914=100.] Date. V f t o a e b o g d l e e . - A f n o i o m d. al R f c o t a u e r w l r t a i u a g m r l r e s i a . - - Coal. Metals. B m u r i i a l a d t l e i . n - g W pu o l o p d . le H a a i t n d h d e e s r. Textiles. Oils. m Al o l d c i o ti m es - 1913-14 100 100 100 100 100 100 100 100 100 100 100 19141 136 101 114 123 109 104 118 103 111 116 1915 151 140 161 177 166 118 116 158 116 120 145 1916 152 182 180 266 272 165 233 229 166 149 185 1917 181 205 198 551 405 215 267 206 247 212 244 1918 221 419 304 856 398 275 300 195 339 1919 261 409 340 804 258 286 308 211 330 1920 262 296 312 1,007 278 371 675 215 324 294 347 August 1920 271 307 310 1,117 286 388 756 191 328 322 365 1921. 244 266 281 371 230 320 520 131 169 328 267 February 231 241 248 362 204 319 511 108 147 318 250 March 238 229 240 279 185 298 510 85 134 268 237 April 232 231 236 291 178 236 510 84 125 284 229 May 221 217 245 369 153 237 286 106 132 238 218 237 206 236 371 149 224 286 108 129 207 218 July 236 227 216 315 149 199 197 112 133 191 211 217 230 214 250 130 193 183 107 132 191 198 ! i Average for 6 months ending Dec. 31,1914, Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1228 FEDERAL RESERVE BULLETIN. OCTOBER, 1921. GROUP INDEX NUMBERS—CHRISTIANIA, NORWAY—0KONOMISK REVUE. [Dec. 31,1913-June 30,1914=100.] Fuel. Date. A f n o i o m d. al f V t o a e o b g d l e e s - . a ti F s n l t i d e u z e f e f f d e r s - s r . - c C a o n o k d a e l . b P e l a e e n n u t z r d m i o n - e. Iron. Metals. in t B e g r u i i a m ld l a s - - . | i | t Tf ll t e * s* le H a a i t n d h d e e s r. w P o u o lp d. Paper. m c t A o i o e m l d s l . i - - | End of— 1914 115 130 108 151 104 115 128 107 1 105 158 103 101 115 1915 149 150 150 224 132 158 289 131 • 121 193 124 137 159 1916 193 198 195 355 170 435 401 213 1 178 251 171 190 233 1917 260 292 231 1,161 231 720 503 326 i 264 296 217 263 341 1918 324 277 284 514 247 573 503 359 1 302 286 283 313 345 1919 329 281 277 767 102 442 187 358 356 284 277 322 322 1920 352 385 340 647 407 482 200 416 | 402 255 321 472 377 July 1920 337 376 328 1,050 274 724 237 455 ; 413 269 413 453 409 1921. January 307 370 317 512 384 394 165 378 374 217 321 472 344 February . 294 324 292 358 364 340 167 362 i 352 212 289 472 319 March 307 315 287 289 357 328 169 339 ! 350 203 289 472 312 April 283 304 273 317 343 295 166 329 i 329 199 289. 413 297 May 280 303 277 317 343 295 166 324 324 190 289 413 294 June 273 323 275 345 336 296 167 308 j 324 197 289 413 294 July 301 408 254 388 303 307 190 309 ! 319 197 276 392 300 GROUP INDEX NUMBERS—AUSTRALIAN COMMONWEALTH—BUREAU OF CENSUS AND STATISTICS. [July, 1914=100.] Date. Me c ta o l a s l a . nd T le e a e x t t t h c il . e e r s , , p A ro t g u d r r i u c a c u l t l s - . pr D od a u ir c y ts. G t o ro a b n c a e c d r c i o e . s Meat. .SSSlChemtad.. m A o ll d c it o i m es - . July, 1914 - 100 100 100 100 100 100 100 100 100 1915 117 93 202 127 110 150 116 149 141 1916 154 131 113 124 127 155 136 172 132 1 1 1 1 A 9 9 9 9 u 1 2 1 1 7 g 0 8 9 ust, 1920 2 2 2 2 1 1 0 2 9 0 3 9 0 3 9 2 2 2 2 2 0 5 1 4 3 7 1 7 3 2 2 1 2 1 1 3 1 2 8 3 8 0 9 6 5 1 1 1 1 1 1 8 3 8 2 0 4 7 9 1 j 1 1 1 1 1 3 3 8 4 9 1 8 6 7 3 ! 2 2 1 1 1 0 8 4 5 4 1 4 7 5 5 2 2 2 3 1 6 4 1 9 9 1 5 2 5 4 2 2 3 2 2 4 8 7 1 8 3 2 7 5 2 2 1 2 1 1 3 5 8 1 7 6 5 0 8 0 I 3921. January 215 145 197 208 197 191 279 i 244 196 February. 214 132 192 206 197 184 303 j 242 192 March 203 107 176 i 207 198 178 303 234 181 April 202 114 164 I 178 196 144 284 i 231 171 May 194 108 161 i 175 195 140 279 ! 224 166 Juric 195 105 160 | 171 1S8 134 250 i 233 162 July 195 111 158 166 1S8 119 238 ! 220 159 August 194 116 160 164 190 120 231 ! 224 160 I GROUP INDEX NUMBERS—CANADA -DEPARTMENT OF LABOR.* [1913=100.] Date. f G o a d r n a d d i e n r s . A m n a i e n m a d t a s l . s D p u r a c o i t d r s y . - t F a v a r b e n u g l d e i e t s - s . f O o t o h d e s r . ! Textile.l H e i a e d t t h c e e . s r , , | Metaalls.s, m Im e p n l t e s - . l i t u B n e m g r u i i m a b l l d e s a - r , - . F li u g e h l t i a n n g d . c D h c a a r e n l u m s d g " i . s - A m t H i o e d c s o i . - m- 1913 100 100 100 100 100 I 100 100 i 100 100 100 100 100 100 1914. 114 107 100 99 104 ; 102 105 i 96 101 100 94 106 101 1915 136 104 105 93 121 111 110 j 128 106 97 92 160 110 1916 142 121 119 130 136 ! 148 143 i 167 128 100 113 222 135 1917 206 161 149 233 180 ! 201 168 j 217 174 118 163 236 177 1918 231 197 168 214 213 ! 273 169 | 229 213 147 188 250 206 A 1 19 9 u 2 1 g 0 9 ust, 1920. 2 2 2 7 6 2 1 3 7 2 1 1 0 9 9 4 9 8 2 1 1 0 9 9 4 2 8 2 2 2 1 0 6 6 6 1 2 2 5 2 8 - j ' 2 3 3 0 8 0 ' 5 3 ) 2 1 1 1 7 9 3 3 2 i 2 2 1 0 0 7 9 3 3 2 2 2 4 2 4 3 8 5 2 1 2 S 7 6 5 1 8 2 2 2 0 9 5 1 8 5 2 2 21 0 0 8 4 5 2 2 2 1 4 4 7 6 4 1921. January 186 17S 9.1 A 184 212 ! 22S 131 174 257 248 247 196 M J A M J F A u u e p u a a l n b y r y r g e i r c u l u h s a t ry 1 1 1 1 1 1 1 5 4 4 7 5 6 5 2 3 6 1 0 8 4 1 1 1 1 1 1 1 4 4 4 7 7 5 6 3 6 3 1 1 8 9 1 1 1 1 1 1 1 6 4 2 2 7 8 3 1 2 4 6 4 5 3 ! j 1 1 1 1 1 1 1 8 6 5 7 8 6 6 2 9 7 5 2 3 2 2 2 1 1 1 1 1 0 S 7 7 0 8 8 3 3 3 4 5 9 9 ! i i j I j I 2 1 1 1 1 1 1 9 8 0 7 8 8 9 1 1 4 9 0 7 8 1 1 1 1 1 1 1 0 0 0 1 1 2 1 1 6 6 4 8 6 5 ! , 1 1 1 1 1 1 1 4 5 4 4 5 4 6 5 4 7 7 8 6 7 2 2 2 2 2 2 2 3 3 3 5 3 4 4 7 6 6 7 6 1 3 2 2 2 2 2 2 1 3 3 2 9 1 2 1 1 9 9 2 ? 4 7 2 2 2 2 2 2 2 0 3 2 3 1 1 0 6 3 6 4 6 2 7 1 1 1 1 1 1 1 8 7 8 8 7 7 7 1 6 0 8 5 5 8 1 1 1 1 1 1 1 8 9 8 9 7 7 7 3 4 7 9 9 6 4 i Unimportant groups omitted. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

OCTOBER, 1921. FEDERAL RESERVE BULLETIN. 1229 GROUP INDEX NUMBERS—CALCUTTA, INDIA—DEPARTMENT OF STATISTICS. [End of July, 1J»14-1OO.| Date. B m ri i u a n a i l g l l e s d . - - a M t r u f t a i r a c c e n l - d e u s - ^fetals. s H a k i n i d n - e i s s . C m tu f o a a r t c n e to - s u n . - co R t a to w n. m t J u f u a a r c n e te - s u . - O t t i e t le h x s - e . r L r O a a u i r l s s d - , . j R u a t w e. se O ed il s. Tea. Sugar. Pulses.Cereals f O o t o h d e s r . m c ti o A o n r j d l n s l i . - * End ofJulv, 1914.. 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 Average for 1920... 13S 231 23S 147 354 153 149 162 12s 104 173 78 407 166 154 184 204 August, 1920 142 235 257 99 360 139 163 168 115 91 167 72 477 160 154 185 20P 1921. January. . 158 238 247 SI 324 107 104 149 116 85 130 77 314 135 139 139 178 February 147 226 243 80 305 104 101 149 97 80 124 70 352 119 129 14* m March . 153 239 255 86 301 98 91 143 90 81 122 71 369 122 128 136 175 Anril HI 242 255 97 311 119 97 123 110 85 131 76 359 147 141 150 183 Mnv 151 262 254 110 312 124 94 1?6 J12 75 142 78 302 156 145 153 184 June.. 149 244 245 119 303 12V» 100 132 H4 76 145 89 239 165 150 152 178 July 149 237 215 115 316 136 102 147 115 80 157 92 2*7 173 151 162 183 August 143 242 241 121 301 150 107 116 85 150 107 236 182 153 170 184 135 COMPARATIVE RETAIL PRICES IN PRINCIPAL COUNTRIES. In the following table are presented statistics berg. Dr. Kuczynski bases his calculations upon the cost of living per week of a family of four in Greater Berlin. showing the trend of retail prices and the cost of living in the United States and important RETATL PRICES IN THE UNITED STATES, PARIS, AND European countries:1 SWEDEN; COST OF LIVING IN UNITED KINGDOM AND BERLIN. i Three of th&se index numbers—those for the United Kingdom, [July, 1914=100.1 Paris, and Sweden—are constructed on the basis of prices in July, 1914= 100. In the case of the Unit ed States, the original base, that of the year t 1 S h 9 t e T 1 a 3 t h y i , s e e h t a i a c r A s s e m , b n w e e d r e a i i n n c s a g b s n a h J s i u f i e n l t d e y d d , e u x 1 p t 9 o o 1 n n 4 t u h , t m h a e s e b J a e r u e r l b , t y a a , c i s l o e 1 p n . 9 r 1 s i 4 t c r , e u s b c a t o e s f d e 2 . 2 b y T a r h t t i e h c e l G e s B e r o u m f r e a fo n a o u d in , o d f w e x e L i a g u b h s o t e e r s d p U S r r t e n i a c t i t a e t e e i s s l d . , 1 o d U f o K m n l i i i n v , t g e c in d - o g st / p P r r e i a c t r a e i i s s l . , 1 S p w r r e i e t c d a e i e s l n . , l B c iv o e i s r n t l g i o n . f * , according to family consumption, until January, 1921, when it was increased to 43 articles reported by dealers in 51 important cities. The method of weighting continues the same, although the actual "weights" 1919. 182 216 260 321 applied have been changed. 1920. 199 249 371 298 i The British index number of the cost of living constructed by the Ministry of Labor consists of the retail prices not only of foodstuffs but 1920. of other articles as well. Retail clothin? prices, rents, and the cost of August. 203 255 373 308 | fuel, lighting, and misce'laneous household items are also taken into consideration. The index number is weighted according to the im- 1921. portance of the items in the budgets of wo king-class families. January 265 410 283 1,111 The retail price inlex for Paris, compiled by the French General February 155 251 3S2 262 1,087 Statistical Office, consists of retail prices of 13 different commodities, March.. 153 2U 358 253 1,035 weighted according to the average annual consumption of a working- April 149 233 328 248 976 man's family of four persons. Eleven of the commodities included in May 142 228 317 237 990 this index are foods, and the other two are kerosene and alcohol. June 141 219 312 234 1,080 The Swedish index number consists of the retail prices of foodstuffs, July 145 219 30(i 232 1,125 fuel, and lighting and is based upon the prices of 51 articles in 41 towns August 152 222 317 234 (in 1920, 50 articles in 49 towns), weighted according to the budget of September .. 329 a workingman's family which before the war had a yearly income of 2,000 kroner. The German index expresses upon a percentage basis figures com- 1 Average for the month. 2 Beginning of month. piled by Dr. R. R. Kuczynski of the Statistical Office of Berlin-Schone- 3 August, 1913-July, 1914=100. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1230 FEDERAL RESERVE BULLETIN". OCTOBER, 1921. FOREIGN TRADE—UNITED KINGDOM, FRANCE, ITALY, SWEDEN, JAPAN, AND GERMANY. In the following table are presented figures current f. o. b. values. The same method is followed in Japan and Sweden. In France and Italy the value of foreign trade is estimated showing the monthly value of the foreign trade not in terms of current prices but in terms of those of some earlier date, of a group of important European countries usually the preceding year. None of the figures presented below include the import or export and Japan. Up-to-date figures for Germany are of gold and silver. In the case of England and France, group figures are given as well as total values, while in the case of the other countries, not available.1 total values only are presented. This does not mean that group figures are not obtainable, merely that they are either delayed in publication or appear not to be of such general interest as the French and English i Currencies have not been converted to a common unit, nor are material. methods of valuation the same in all countries. In England imports Japanese figures for recent months are received by cable and subare given current c. i. f. values in England; exports and reexports, ject to revision. FOREIGN TRADE OF THE UNITED KINGDOM. Imports. Exports. Reexports. In thousands of pounds steiling. In thousands of pounds sterling. In to d F b a r o a i n o n c d d c k o , , .!| f u r a a i m n m a c r R m l t a t s a i u a i c a t n a w r l e n e l n e - y u d s d - . | f A a m w m c r t h a t a o u i i o n c n r r l u l e l l e y y d - s . l i M a p n p n i a c i o n e s r l o s c g u c t e u e d . l l s - - , Total. o s t f h a I t n o n o d u n s - s. to d F b a r o a i n n o c d d k co , , . u f r m a a i n m a r c R m a t l t i a s u i a c a n t a r w l e n e l e n - y u d s d - . jf A a m w m c r h a t t a o u i i o n c r n r l l u e l l e y y d - s . l i M a p n p n a i c i o n e r s l c s o u c g t e e u d . l l s - - , Total. o s t f h a I t o n o n u d n - s s. s p t s t o e h a r u o o n l n i f u d n d - s g s . o t s h f a I o t n n o u d n - s s. Monthly average: 1913 24,184 23,485 16,134 259 64,061 2,716 5,825 34,281 949 43,770 7,650 9,131 152 1919 59,927 50,565 24,663 358 135,513 2,814 9,274 53,457 1,008 66,553 13,729 1920 63,948 59,292 37,902 254 161,395 3,795 4,241 12,138 93,394 1,528 111,297 3,292 18,701 *i39 1920. August. 61,874 51,268 40,016 185 153,343 4,302 3,503 10,467 99,645 1,288 114,903 3,066 13,368 118 1921. January 49,158 37,005 30,467 420 117,051 3,383 3,852 7,668 79,746 1,491 92,756 2,558 9,955 87 February... 47,750 25,504 23,394 326 96,974 2,573 3,075 5,881 58,177 1,089 68,222 2,446 8,004 82 March 50,888 17,739 24,930 184 93,742 2,697 2,897 5,832 56,969 1,111 66,809 2,656 8,888 127 April 52,908 16,547 20,374 167 89,996 2,668 2,729 2,936 52,019 1,184 59,868 1,279 8,524 126 May 50,094 16,711 19,282 221 86,308 2,891 2,101 1,437 38,662 889 43,088 500 7,232 90 June 51,915 18,389 17,600 278 88,182 2,439 1,125 33,658 930 38,152 7,083 July 42,090 20,232 18,005 431 80,757 4,050 2,702 2,775 36,705 991 43,172 11,350 9,362 August 50,504 19,589 18,194 214 88,581 3,389 3,124 7,058 39,936 1,228 51,346 3,747 9,998 154 September., 55,248 87,118 8,595 1 Includes reexports. FOREIGN TRADE OF FRANCE.* Imports. Exports. In thousands of francs. In thousands of francs. In ID thou- thou- Food. m r R ia a a l t w s e . - M ar t a u t n i r c u e l f d e a s c . - Total. js m a t n o e d n tr s s i . o c f] Food. m r R i a a a t l w e s. - M ar t a u t n i r c u e l f d e a s c . - P p a o r s c t e . l Total. js m a t n o e d n tr s s i . o c f Monthiy average: 19132 l&l, 465 412,144 138,169 701,778 3,685 69,908 154,841 301,420 47,182 573,351 1,840 1 1 9 9 1 2 9 0 3 3 8 71 9 8 2 , , 1 0 7 4 9 0 1 1, , 4 2 0 2 0 9 , , 04 43 6 5 8 8 6 3 1 2 , , 1 7 S 9 7 7 2 2 , , 9 9 8 5 3 0 , , 2 4 7 1 2 3 3 4, , 2 2 4 0 5 4 1 9 8 9 4 , , 2 2 7 0 7 1 2 3 0 9 3 7 , , 6 6 9 7 1 7 1,1 6 8 15 7 , , 6 7 3 4 0 2 7 99 1 , ,4 8 4 6 4 7 1,8 9 6 8 9 9 , , 5 % 6 6 3 1,0 4 3 6 9 4 1920. August* 1,219,150 1,735,556 1,144,940 4,099,640 4,201 252,118 557, 791 1, 854,852 116,255 2,781,016 1,299 1921.* J J A M M - J F u A u a e u p a t a l n b i g y y r r e u c i r u l a u h s r a t y ry 3 3 3 4 4 4 4 5 4 8 9 9 3 5 1 5 6 6 0 0 4 5 9 5 , , ; , , , , , 1 7 6 0 5 3 2 5 6 0 1 0 4 4 2 1 9 3 5 1 5 5 0 5 1, 8 S 8 8 1 6 7 7 8 0 0 7 5 9 8 0 7 3 1 1 5 0 6 4 , , , , , , . , 2 1 2 3 C 3 5 0 3 6 5 7 5 9 5 6 1 7 1 4 2 7 3 9 5 4 5 3 5 4 3 3 2 0 3 2 0 6 5 3 4 1 4 1 1 1 5 1 , , , , , , , , 0 4 5 5 1 7 0 5 1 9 9 4 2 5 4 3 ] 8 3 5 6 2 7 1 1 1 1 1 1 1 1 1 , , , , , , , , 9 7 7 7 7 6 4 5 8 2 1 3 7 4 6 6 3 2 3 2 9 2 9 5 , , , , , , , , 9 4 5 3 0 9 1 5 3 6 3 9 8 0 1 0 1 8 4 4 9 8 7 8 2 2 2 3 2 2 2 2 , , , , , , , , 5 5 7 8 6 0 2 1 7 9 0 2 5 4 5 6 9 3 2 7 2 7 0 4 1 1 1 1 1 1 1 1 8 6 7 5 2 1 4 7 8 2 2 1 3 2 8 6 , , , , , , , , 9 9 7 6 2 3 3 5 0 9 2 3 5 3 0 4 1 2 4 3 4 7 3 6 4 4 3 4 4 5 4 4 6 7 3 7 4 1 3 4 S 9 6 8 0 5 9 5 , , , , , , , , 2 0 5 5 7 0 3 4 8 6 6 3 2 5 1 5 1 9 1 4 2 7 2 3 1 1 1 1 1 , , , , , 1 0 1 1 0 9 9 9 * 4 3 7 8 7 8 2 2 2 5 9 4 7 6 5 , , , , , , , , 3 1 8 5 8 6 1 8 2 9 8 6 2 1 8 9 9 3 8 8 8 7 3 3 1 1 1 8 8 8 9 1 0 0 7 5 2 4 5 5 8 7 4 , , , , , , , , 0 6 3 2 7 4 7 3 7 0 7 7 1 9 3 5 4 5 6 1 8 9 5 0 1 1 1 1 1 1 1 1 , , , , , , , , 8 6 8 9 9 6 5 7 8 9 8 3 5 6 4 * f 9 2 2 0 4 3 8 t , , . , , , , . 4 6 2 4 8 4 0 6 4 1 2 9 6 8 5 3 4 8 6 4 8 4 5 5 1 1 1 i 1 1 1 1 ; , , , , . , , 1 4 1 4 0 i 0 1 1 6 1 9 3 0 6 5 ( 8 4 4 4 9 4 5 > 1 Not including gold, silver, or the reexport trade. » Ctilculaied in 1913 value units. * Calculated in !9ir» 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 af the fnd of the year is the trade evaluated at the prices prevailing during that year. Because of the dis-. turbed price ondiiions in France during the past two years, 1919 price units are being applied to the 1921 trade, 4 Calculated in,1920 value wilts, Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

OCTOBEE, 1921. FEDERAL RESERVE BULLETIN. 1231 FOREIGN TRADE OF ITALY, SWEDEN, AND JAPAN. Italy. Sweden. Japan. (In millions of (In millions of (In millions of lire.) i kronor.) yen.) Imports. Exports. Imports. Exports. Imports. Exports. Monthly average: 1913 304 210 71 68 61 53 1919 . 1,385 506 211 131 181 175 1920 1,322 650 281 191 195 16? 1920. Mav 1,401 662 314 227 296 193 j une 2,076 752 283 224 220 184 July 1,040 521 331 268 1E7 154 August 1,249 532 308 230 123 175 1921. January 1,166 503 122 91 105 75 February 1,320 566 116 89 119 77 March 1,503 569 99 75 337 94 April 1,346 586 106 69 139 115 May 95 82 149 105 June 2 93 2 69 148 107 July 109 99 \ugust ... • . 131 105 U920 and 1921 figures based on 1919 value units. 2 Provisional. FOREIGN TRADE OF GERMANY. [In thousands of marks.] Imports.1 Exports.2 Imports.1 Exports.2 Tonnage Tonnage Tonnage Tonnage s in m a n e t d h t s r o i o c u f - s G a il n o v d l e d r Me d r i c s h e a . n- i s n m a n e t d h t s r o i c u o - f i s n m a n e t d h tr s o i u o c - f s G i a lv n o e l d d r. Me d r i c s h e a . n- i s n m a n t e d h t s o ri u o c - f tons. tons. tons. tons. Monthly average: 1920. 1913 6,068 8,450 841,375 6,146 September 1,680 6,400 6,411,311 1,837 1920 1,570 17,773 5,775,933 1,651 October 1,757 6,239 6,488,133 1,494 November 1,757 3,353 7,909,571 1,768 1920. December 2,007 45,306 7,817,910 1,758 July 1,739 2,350 6,187,922 2,094 August 1,512 5,116 6,027,625 1,911 1 Not including philanthropic gifts. 2 Not including deliveries on reparations account. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1232 FEDERAL RESEBVE BULLETIN. OCTOBER, 1921. DISCOUNT AND OPEN-MARKET OPERATIONS OF FEDERAL RESERVE BANKS. Following is a set of tables showing the volume of bills discounted and of acceptances and Government securities purchased by the Federal Reserve Banks during August, 1921: VOLUME OF OPERATIONS DURING AUGUST, 1921. U. S. securities purchased. Total. Bills discounted Bills bought Federal Reserve Bank. for member in open banks. market. Bonds and | Certificates of notes. indebtedness. August, 1921. August, 1920, Boston $294,781,550 $15.126,938 $360,000 $1,506,000 $311,774,488 $468,250,695 New York 1,598, 703,932 63,566,966 25,957,500 1,688,228,398 | 5,280, 564,165 Philadelphia... 309, 970,456 4,302,509 1,758,000 316,030,965 558,633,920 Cleveland 193,149,873 3,482,056 308,500 196,940,429 224,380,105 Richmond 214,762, 719 1,647,203 216,409,922 271,092,721 Atlanta 123,641,568 778,995 240,000 500 124,661,063 209,481,507 Chicago 293,918,693 9,814, 864 268,500 8,802, 500 312, 804,557 547,983, 880 St. Louis 117,532,426 1,187,430 1,618, 500 120,338,356 207,493, 845 Minneapolis... 56,610,268 113,500 536,500 57,260,268 81,748,590 Kansas City... 59,954,639 248,100 144,500 60, 347, 239 150,307,279 Dallas 63,432,441 20,000 63,452,441 111,637,861 San Francisco. 186,604,625 I 7,127,984 ""77,'656' 1,105,500 194.915,109 254,997,154 Total: August, 1921.. 3,513,063,190 107,303,045 | 1,059,000 41, 738,000 3,663,163,235 August, 1920.. 7,982,524,044 259,708,278 | 18,900 124,320,500 8,366,571,722 8 months ending Aug. 31,1921 43,836,513,065 921,737,496 29,316,661 2,576,573,557 47,364,140,779 8 months ending Aug. 31,1920 53,128,856,073 2,192, 875,340 264,400 5,370,209,000 *66,"692,*264,"8i3 VOLUME OF BILLS DISCOUNTED DURING AUGUST, 1921, BY CLASSES OF PAPER; ALSO NUMBER OF MEMBER BANKS ACCOMMODATED. Member banks' collateral j Customers' notes. j Bankers' acceptances. paper secured by Commercial jAgricultural Live-stock Federal Reserve Bank. m G g e a o n t v i t o e o n r b n s l - . i- G o S b o e l v c i u e g r r a e n t d i m o b n e y s n . t O s t e h c e u r r w ed is . e paper, n. e. s. | paper. paper. Foreign. Domestic. D c o h l a la n r g e e x . - Boston $12,055,781 $163,934,300 $118,078,703 $500,581 $2,500 New York 12,970,010 829,890,423 751.648,157 439,333 19,829 $448,095 $715,392 $10,000 Philadelphia 4,484,400 228,551,657 76; 650,385 165,762 1,000 Cleveland 3,189,290 105,485,920 $140,000 81,722,967 378,360 96,103 66,345 30,000 Richmond 1,959,878 174,762,044 1,222,500 31,697,284 4,560,879 Atlanta -• 3,596,886 61,592,290 678,000 52,468,826 4,046,366 378,453 Chicago 3,724,872 163,884,885 488,700 112,235.477 13,128,128 113,880 20,000 St. Louis 2,136,260 78,745,218 98,760 32,653,072 3,147,144 396,488 60,000 52,800 Minneapolis 767,891 23,902,187 1,955,870 24,456,3S9 3,810,630 1,368,249 Kansas City 927,968 39,717,340 13,515,676 1,770,314 3,960,332 S D a a n ll a F s rancisco 1,7 2 4 6 9 8 , , 6 1 8 97 8 1 3 1 4 7 , , 1 6 8 8 7 9 , , 1 1 5 2 2 2 23 5 , , 1 3 2 2 5 3 , , 9 0 2 0 3 0 3 1 5 3 , , 5 8 8 4 5 8 , ,4 7 7 4 0 3 4 5 , , 3 0 2 6 4 5 , , 7 0 6 6 9 8 2 5 , , 4 0 0 3 1 1 , , 7 9 9 8 7 4 5666 Total: August, 1921 47,831,121 2,022,342,538 33,032,253 1,344,561,099 41,337,334 13,770,615 579,440 818,192 10,000 July, 1921 69,798,974 2,114,363,112 22,416,045 1,454,254,080 46,104,562 17,526,512 1,417,068 474,560 50,000 August, 1920....178,013,613 4,755,968,937 8,232,752 3,020,807,623 5,490,299 July, 1920 149,726,351 4A A t ,3* • - »i U -*8r \S * J 3* C *,* W m7_ r /« \ 7 9% A S*S,A O 98 83 \Jy +*'S8A*y, 2% 9***7**,166 2,152,594,118 7,068,782 Trade acceptances. T m ot o a n l r m ed a u tu ce ri d ty t o b a a s c i o s. m 1 - Member banks. Federal Reserve Bank. Tota1 all Foreign. Domestic. classes. Amount. P o e f r t o c t e a n l t . in N u d m ist b r e ic r t Accommodated. Aug. 31. Number. Percent, Boston $209,685 $294,781,550 $174,093,230 5.0 I 437 217 49.7 New York $65,000 2,497,693 1,598,703,942 859,214,613 24.5 i 794 321 40.4 Philadelphia... 117,252 309,970,456 243,482,959 i 6.9 700 382 54.6 Cleveland...... 2,040,888 193,149,873 287,702,810 8.2 881 363 41.2 Richmond 560,144 214,762,719 240,254,381 6.8 621 411 66.2 Atlanta 880' 747 12.5,641,568 241,780,106 I 6.6 500 372 74.4 Chicago 322,751 293,918,693 570,224,500 | 16.2 1,436 915 63.7 St. Louis 242,684 117,5^2,426 160,398,703 ! 4.6 585 327 55.8 Minneapolis... 349,602 56,610,268 158,340,735 ' 4.5 1,018 552 54.2 Kansas City... 63,009 59,954,639 127,744,193 3.6 1,089 500 45.9 Dallas 448,869 6a, 4d2,441 183,704,521 5.2 873 640 73.3 San Francisco. 73,900 908,384 186,604,625 278,122,439 7.9 452 52.1 Total: August, 1921.. 138,900 8,641,698 3,513,063,190 3,513,063,190 | 100.0 9,802 . 5,452 55.6 July, 1921 45,000 8,628,499 o, 7^5,078,412 5,602 57.2 August, 1920.. 14,010,820 7,982,524,044 9,487 4,780 50.4 July, 1920 13,457,509 6,714,92d, 809 9,458 4,858 51.4 i Total discounts multiplied by ratio of average maturity of bills discounted by each bank to average maturity (15.76) for system. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

OCTOBER, 1921. FEDERAL RESERVE BULLETIN. 1233 VOLUME OF BILLS DISCOUNTED DURING AUGUST, 1921, BY RATES OF DISCOUNT CHARGED; ALSO AVERAGE RATES AND MATURITIES. Average Average Federal Reserve Bank. 5§ per cent. 6 per cent. 6£per cent. Total. rate (365- maturity. day basis). Per cent. Days. Boston $294,781,550 $294,781,550 5.50 9.31 New York 1,598, 703,932 1,598,703,932 5.50 8.47 Philadelphia.. 309, 970,456 309, 970,456 5,50 12.38 Cleveland 148,785,734 $44,289,139 $75,000 193,149, 873 5.60 23.47 Richmond 214, 702,719 214,762, 719 6.00 17.63 Atlanta 123,641,568 123,641, 568 6.00 29.54 Chicago 293,918,693 293,918,693 6.00 30.57 St. Louis 60,000 117,472,426 117,532,426 6.00 21.50 Minneapolis 24,704,408 31,905, 860 56,610,268 6.42 43.52 Kansas City... 59,954,639 59,954, 639 6.00 33.57 Dallas 63,432,441 63,432,441 6.00 45.83 San Francisco. 186,604,625 186,604,625 5. 50 23.47 Total: August, 1921. 2,538,906,297 942,176,033 31,980, 860 3,513,063,190 5.76 15.76 July, 1921 875,972,363 2,694,528,909 164, 577,140 3,735,078,412 6.02 16.18 VOLUME OF BANKERS' AND TRADE ACCEPTANCES PURCHASED DURING AUGUST, 1921, BY CLASSES. I Total adjusted to a Bankers' acceptances. Trade acceptances. common maturity basis.1 Total bills Federal Reserve Bank. purchased. Foreign. Domestic. D c o h l a la n r g e e x . - Total. Foreign. Domestic. Total. Amount. P o e f r t o ce ta n l t . Boston $11,485,729 $3,074,585 $566,624 $15,126,938 $15,126,938 $9,283,442 14.1 New York 50,002,896 9,140,916 4,390,170 63,533,982 $32,984 $32,984 63,566,966 47,481,592 59.2 Philadelphia... 2,540,875 1,642,804 118,830 4,302,509 4, 302, 509 8,610, 863 4.0 Cleveland 1, 507,300 1,974,756 3,482,056 3,482,056 2,637,912 3.3 Richmond 308,403 1,338,800 1,647, 203 1,647,203 2,438,532 1.5 Atlanta 547,058 231,937 778,995 778,995 1,446,196 .7 Chicago 6,724,315 2,990,549 100,000 9,814, 864 9, 814,864 29,142,881 9.2 St. Louis 948,911 198,519 40,000 1,187,430 1,187,430 721,517 1.1 Minneapolis Kansas City... 248,100 248,100 248,100 437,339 .2 Dallas 20,000 20,000 20,000 45,723 San Francisco. 5," 443," 656* 1,104,328 580,000 7,127,984 7,127,984 5,057,048 "6*7 Total: August; 1921.. 79,757,243 21,717,194 5,795,624 107,270,061 32,984 32,984 107,303,045 107,303,045 100.0 July, 1921 29,136,700 16,140,995 1,345,000 46,622,695 46,844 46,844 46,669,539 August, 1920. 190,985,198 51,027,040 5,426,161 247,438,399 12,269,879 12,269,879 259,708,278 July, 1920 158,499,195 48,772,794 2,023,747 209,295,736 9,953,648 $214, 293 10,167,941 219,463,677 i Total purchases multiplied by ratio of average maturity of bills purchased by each bank to average maturity (25.33) for system. VOLUME OF ACCEPTANCES PURCHASED DURING AUGUST, 1921, BY RATES OF DISCOUNT CHARGED; ALSO AVERAGE RATES AND MATURITIES. Average Feder B a a l n R k e . serve c 5 e p n e t r . 5 c J e p n e t. r 5 c ^ e n p t e . r 5 c f e n p t e . r 5 c £ e p n e t. r 5 c | e p n e t r . 5 c $ e n p t e . r 5 c | e p n e t. r 6 c e p n e t r . c £ e p nt. Total. (3 b 6 a ra 5 si t d s e ) a . y A m v i a e t t y r u a . r g - e Per ct. Days. Boston '$13, 810,807 $906, 527 $193,678 $15,126,938 5.11 15.54 New York | 3,981,013 4,345,08151,402, 961 560,065 $318,363 $416,742 $2,424,457 $48,284j $20,000 $50,000 63,566,966 5.32 18.92 Philadelphia I 3,656,184 145,860 221,755 78,710 200,000 4,302, 509 5.11 50.69 Cleveland } 569,146 1,136,614 836,493 91,791 286,162 260,000 301, 850 3,482,056 5.29 19.19 Richmond 1,647,203 1,647,203 6.08 37.49 Atlanta 112,967 666,028 778,995 6.01 47.02 Chicaeo 1,130,703 4,004,280 3,779,881 365,000 435,000 100, 000 9,814,864 5.29 75.20 St. Louis J 715,234 323,314 75, 549 40,000 33,333 1,187,430 5.21 15.39 Minneapolis.. Kansas City. 248,100 248,100 6.08 44.64 Dallas 20, 000 20,000 6.08 57.90 San Francisco ! 524,215 2,040,481 1,0b7,093 "426," 875 2,*5i2,"812339,078 117,430 100, 000 7,127, 984 5.38 17.97 Total: August, 1921... 24,387,302112,578,843 57, 847,423 1,791,668 3,905,3041,115, 820 2, 877,07C 48,284 2, 701,331 50,000107,303,045 5.31 25.33 July, 1921... 1,317,271 650,610 4,126,131 4,114466,,303 9,167,5873,599,019 18,621 1,040,287 3,043,611 5,0351 46,669, 539 5.70 31.26 i Includes $13,330 and $938,800 of acceptances purchased at 6J and 7 per cent, respectively. NOTE.—All Federal Reserve Banks use 360 days to the year in calculating interest on bills bought in open market. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1234 FEDERAL RESERVE BULLETIN. OCTOBER, 1921. HOLDINGS OF EARNING ASSETS, BY CLASSES. Following is a set of tables giving a detailed analysis of the different classes of earning assets held by the Federal Reserve Banks at the end of August, 1921: AVERAGE DAILY HOLDINGS OF EACH CLASS OF EARNING ASSETS, EARNINGS THEREON, AND ANNUAL RATES OF EARN- INGS, DURING AUGUST, 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 e r a n t s s i s . n e g s Dis b c i o l u ls n . ted Pu b rc il h ls a . sed s U e ti c . e u S s r . . i- A o l a l f s i c s e n l e a g a t r s s n s . - es 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 s U e ti c . e u S s r . . i- o c a l f s i a A s n e s l e g s a ! t e r s n s . -co b D u il n i l s t s e . d c b h P i a u l s l r e s - . d s U e ti c . e u S s r . . i- Per ct. Per ct. Per ct. Perct. Boston $107,169,658 $82,461,391 $5, 663,453 $19,044,814 $460, 581 $401,465 $25,389 $33,727 5.06 5.73 5.28 2.09 New York 471,162,454 392,668,323 18,101, 844 60, 392, 287 2,075, 572 1, 872,165 80,359 123,048 5.19 5.61 5.22 2.40 Philadelphia 143, 453,349 113,653,632 2,085,804 27,713,913 592,029 533,016 9,086 49,927 4.85 5.52 5.12 2.12 Cleveland 157,831,136 135, 059, 745 1,475,741 21,295,650 714,547 670,360 6,866 37,321 5.33 5.84 5.48 2.06 Richmond 109, 013, 750 99, 762,215 2,048, 4581 7,203,077 531,441 508,527 10, 567 12,347 5.74 6.00 6.07 2.02 Atlanta 124,179, 803 102,650,137 1,027,196 i 20, 502,470 604,025 542,521 5,410 56,094 5.58 6.03 6.01 3.22 Chicago 270,317,276 227,034,117 3,119,6331 40,163,528 1,329, 563 1,231,199 14,038 84,326 5.79 6.39 5.30 2.47 St. Louis 86,477,520 73,076,918 248,7281 13,151,874 399,001 373,626 1,144 24,231 5.43 6.02 5.41 2.17 Minneapolis 77,027,000 71, 303,000 I 5,724,000 409,472 399,278 10,194 6.22 6.55 2.10 Kansas City 85,192,675 67,116,397 984,745! 17,091,533 377,284 341,239 4,782 31,263 5.21 5. 5.70 2.15 Dallas 61,156,097 54,701,2011 83, 7111 6,371,185 311,327 299,054 421 11, 852 5.99 6.44! 5.93 2.19 San Francisco 148,187,259 134,786,428 3,285,082 10,115,749 655, 546 15,170 17, 943 5.47 5.73 5.44 2.09 Total: August, 1921 1,841,167,977 1, 554,273, 504 38,124,395J248,770,0788,493, 501 7,827,096 173,232 492,273 5.43 5.9 5.35 2.33 July, 1921.2,012,699,492 1,725,162,306 26,395, 821 261,141,365 9,551,847 8,906,789 133,744 511,314 5.59 6.0 5.97 2.31 August, 1920....3,233,862,055 2,605,113,456 325,461,036J303,287, 56315, 872,66613,627,062 1,674,351 571,253 5.81 6.1' 6.07 2.22 July, 1920.3,200,972,777 2,519,043,471 363, 620,679 318,308, 62715, 543,67813,087,226 1,870, 735585, 717 5.72 6.13 6.07 2.15 HOLDINGS OF DISCOUNTED BILLS, BY CLASSES. [End of August figures. In thousands of dollars.] Member banks' Bankers' Custom- collateral notes. acceptances. Trade acceptances. ers' paper se- Commer- Agri- Live- Federal Reserve Bank. Total. m c G g u e a o r n t e v i t d o e o n r b b n s l y - . i-b m y S g e a e n G t c t i u o o o r v n e b e s d l r . i n - - se O w c t u h is r e e e r d - . ci n a . l p e. a p s. er c p u a lt p u e r r a . l p s a to p c e k r. Foreign. Domestic. Foreign. Domestic Boston 100,323 8,658 29,910 60,379 1,128 7 241 New York 355,970 15,497 136,071 200,958 587 337 674 40 1,806 Philadelphia 106,529 18,138 60,012 27,701 474 5 199 Cleveland 124,748 8,710 34,928 50 77,503 832 317 41 40 2,327 103,463 4,318 26,135 584 58,631 12,312 74 1,329 Atlanta... 99,473 6,504 28,574 300 45,975 13,895 2,986 1,239 Chicago 210,268 8,556 61,847 223 87,594 51,202 20 826 St. Louis 73,0£8 3,299 24,026 37 33,468 10,205 1,393 203 467 Minneapolis 70,185 909 5,318 1,071 28,457 22,381 13,648 371 Kansas City 65,431 2,119 16,366 20,067 6,794 19,893 93 99 Dallas 53,713 1,126 5,825 2,630 9,655 19,688 14,071 718 San Francisco 128,734 4,219 34,081 11,347 47,303 17,816 12,639 257 50 64 958 Total: Aug. 31,1621 1,491,935 82,053 463,123 16,242 695,691 157,394 65,033 635 1,080 104 10,580 July 30,1921 1,641,612 96,277 481,497 12,104 801,489 157,456 72,883 5,476 613 85 13,732 Aug. 27,1P20 2,667,127 297,442 1,017,388 3,819 1,103,711 117,050 99,228 9,013 19,476 July 30,1920 2,491,630 281,766 959,251 3,166 1,015,599 106,611 95,909 9,830 19,498 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

OCTOBEE, 1921. FEDERAL RESERVE BTJLLETIK. 1235 HOLDINGS OF BANKERS' AND TRADE ACCEPTANCES PURCHASED OR DISCOUNTED, BY CLASSES OF ACCEPTANCES. [End of August figures. In thousands of dollars.] Ml classes ]Bankers' acceptances Trade acceptances. Federal Reserve Bank. Pur- Dis- Total. c m h o a a p s r e e k d n e t i . n m co e u f m o n r t b e e d r Total. Foreign. Domestic.ex D ch o a ll n a g r e. Total. Foreign. Domestic. banks. Boston.... 4,415 4 174 241 4,174 3 248 749 177 241 241 New York 18,159 15,302 2,857 16,313 13 737 2,415 161 1,846 40 1,806 Philadelphia 3,327 3,128 199 3,128 1,669 1,345 114 199 199 Cleveland 3,929 1 521 2,408 1,602 745 857 2,327 2,327 Richmond 3,675 2,346 1,329 2,346 583 1,763 1,329 1,329 Atlanta 2,117 878 1,239 878 554 324 1,239 1,239 Chicago 3,900 3,054 846 3,074 2,190 809 75 825 826 St Louis.. 1,107 437 670 640 417 223 467 467 371 371 371 371 Kansas City. 1,210 1,018 192 1,111 998 113 99 99 Dallas. 788 70 718 70 50 20 718 718 San Francisco 4,723 3,394 1,329 3,659 2,814 485 360 1,064 106 958 Total: August 31,1921 47,721 36,995 27,005 9,103 887 10,726 146 10,580 Julv 30,1921.. 37,883 24,001 17,518 5,468 1,015 13,882 150 13,732 Purchased in open market: August 31, 1921.. . 35,322 35,280 26,370 8,023 887 42 42 Julv 30, 1921 19,906 17,912 12,042 4,855 1,015 65 65 Discounted for member banks: August 31 1921 12,399 1,715 635 1,080 10,684 104 10,580 July 30,1921. 17,977 6,089 5,476 613 13,817 85 13,732 HOLDINGS OF BANKERS' ACCEPTANCES PURCHASED OR DISCOUNTED, BY CLASSES OF ACCEPTING INSTITUTIONS. [End of August figures. In thousands of dollars.] Member banks. Nonmem- Branches Federal Reserve Bank. Total. Non- i a b n n e g d r c b o b a r a p n n o k k r s - - b P a r n iv k a e t r e s. an f c o d i r e e a s i g g o e n f n- National. national. ations. banks. Boston 4,174 2,264 1,352 280 123 155 New York 16,313 5,312 2,795 4,428 2,511 1,267 Philadelphia.. 3,128 1.510 985 456 119 58 Cleveland 1,602 531 729 313 Richmond 2,346 2,021 325 Atlanta 878 183 685 10 Chicago 3,074 1,315 1,759 St. Louis 640 263 377 Minneapolis... Kansas City... 1,111 195 916 Dallas 70 20 50 San Francisco. 3,659 1,729 "816" Total: August 31,1921 36,995 15,343 10, 739 6,363 3,070 1,480 July 30, 1921 24,001 9,517 7,969 4,986 1,116 413 Purchased in open market: August 31, 1921 35,280 14,763 10,395 5,638 3,022 1,462 July 30, 1921 17,912 7,005 6,406 3,087 1,034 380 Discounted for member banks: August 31,1921 1,715 580 344 48 18 July 30, 1921 2,512 1,563 33 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1236 FEDERAL RESERVE BULLETIN". OCTOBER, 1921. BANKING CONDITIONS DURING AUGUST AND SEPTEMBER, 1921. Changes in the banking situation during the accommodation with the Federal Reserve four weeks ending September 14, as indicated Banks. Considerable gains of gold and conby the weekly statements of reporting member tinued reduction of note circulation have caused banks, were quite moderate, a slight increase a further strengthening of the reserve position in loans and discounts being more than offset of the Federal Reserve Banks. WEEKLY CHANGES IN PRINCIPAL ASSET' AND LIABILITIES ( FEDERAL RESERVE BANKS REPORTING MEMBER BANKS ! RESERVE RATIO 6 PURCHASED ACCEPTANCES 1 ACCOMMODATION AT FEDERAL RESERVE BANKS 2 TOTAL DEPOSITS DISCOUNTS SECURED BY 2 U.S. OBLIGATIONS AND LOANS SECURED THEREBY 3 CASH RESERVES U.S.GOVERNMENT OBLIGATIONS 3 NET DEMAND DEPOSITS 4 F. R. NOTE CIRCULATION 8 TOTAL DISCOUNTS 4 TOTAL-'LOANS 5 U. S. SECURITIES 9 TOTAL EARNING ASSETS 5 TOTAL LOANS AND INVESTMENTS MILLIONS MILLIONS BILLIONS BILLIONS OF OF OF OF». DOLLARS 1 DOLLARS DOLLARS DOLLARS 3500 — 3500 V \ V V 18 18 3000 3000 2500 1 \ / \ VV V s V M * V \ V 2500 1 1 7 6 /A \ 5 v 1 1 7 6 r -V ss. 2000 I\ \\ 2000 15 15 1500 \\ £\ 1500 14 14 \ 4 1000 "V •> 7 1000 13 y^ s \ 13 12 12 500 V 4 5 \ 1 A 500 11 A AA. A,•VA 3 11 o 6 ^, V. 0 10 \ N "\ \. 10 MILLIONS RESERVE DOL O L F ARS RATIO 9 9 3500 4 PER CENT 8 8 3000 \*~ S 7 7 2500 .- 1 100 6 6 2000 ft -' > 80 5 . 5 2 l\ v. 4 4 1500 60 1 \ 3 -A 3 1000 40 2 2 •\ 2 500 20 1 1 . 0 mmm MONTH J. F. M.A.M.J. J.A.S.O. N.D.J.F. M.A.M.J. J.A.S.O. N.D. MONTH MONTH J. F. M. A.M. J. J. A. S. 0. N. D.J. F. M. A M. J. J. A. S. 0. N. D. MONTH YEAR 1920 1921 YEAR YEAR 1920 1321 YEAR by liquidation of investments, largely Treasury Except for the gradual liquidation of $52,certificates. Redemption of these certificates 000,000 of Treasury certificates, largely thrcugh during September and accumulation of funds sales to ultimate investors, member bank in anticipation of September 15 tax payments investments in Government and other securienabled the member banks during the latter ties show but small changes, the total decrease part of the period to reduce substantially their for the review period being $65 0Jo,000. Loan 7 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

OCTOBER, 1921. FEDERAL. RESERVE BULLETIK. 1237 liquidation on a moderate scale continued the member banks, pending the payment by deduring the first three weeks. During the week positors of the September 15 installment of inending September 14, apparently in connection come and excess profits taxes and the clearance with impending tax payments, loans and dis- of checks in payment for newly subscribed certificounts of the reporting banks show an increase cates and notes, for it is well to remember that by of $81,000,000, of which $45,000,000 represents far the larger part of Treasury notes and certifian increase in loans supported by corporate cates is being held at present by investors outsecurities. Total loans and investments show side the banks. The banks, in turn, used a reduction of $41,000,000 for the period, and these extraordinary accumulations to reduce on September 14 stood at $14,801,000,000, or 13 for the time being their borrowings from the per cent below the total shown about a year Federal Reserve Banks. The ratio of these before. borrowings to total loans and investments of Borrowings of the reporting member banks the reporting banks shows a decline from 6.6 from the Federal Reserve Banks during the to 6.1 per cent. For the New York City banks first three weeks of the period under review a reduction in borrowings from the local Fedcontinued fairly constant, but show a substan- eral Reserve Bank by nearly $50,000,000, and tial decline during the following week, when in the ratio of accommodation from 5.5 to 4.4 accumulation of funds to provide for the per cent, is noted. September 15 tax payments enabled the mem- In the following table are shown the principal ber banks to reduce for the time being by about changes in the condition of the reporting mem- $72,000,000 their borrowings from the Federal ber banks during the four weeks ending Reserve Banks. It is also probable that a large September 14. Corresponding changes since portion of the proceeds from the redeemed cer- the beginning of 1920 are traced in the chart tificates went to swell the demand deposits of on page 1236: MOVEMENT OF PRINCIPAL ASSETS AND LIABILITIES OF REPORTING MEMBER BANKS. [In millions of dollars.] Sept. 14. Number of reporting banks 810 Loans and discounts:1 Secured by U. S. Government obligations Secured by stocks and bonds (other than U. S. Government obligations). All other Total loans and discounts U. S. bonds U. S. Victory notes U. S. Treasury notes U.S. certificates of indebtedness — Other bonds, stocks, and securities- Total investments Total loans and discounts, and investmentsl Reserve with F. R. Bank. Cash in vault Net demand deposits Time deposits Government deposits Bills payable and rediscounts with F. R. Bank, total Secured by U. S. Government obligations Ratio of accommodation at F*. R. Bank to total loans and investments. i Including bills rediscounted with Federal Reserve Bank. Discount operations of the Federal Reserve provide themselves with Federal Reserve notes Banks during the four-week period between to meet the holiday demand for currency. August 24 and September 21, according to the For the subsequent two weeks these borrowings condition statements of Federal Reserve Banks, show a reduction of $121,300,000, partly in show an increase during the first week in connection with the Government's fiscal opera- September, when member banks increased tions, particularly the redemption prior to and their borrowings from the reserve banks to on September 15 of about $535,000,000 of Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1238 FEDERAL RESERVE BULLETIN. OCTOBER, 1921. tax certificates. The net result of these notes in circulation. Changes in other certifioperations is seen in a reduction since August cate holdings reflect largely the extent of open- 24 by $46,600,000 in the Federal Reserve market transactions in certificates of the New Bank holdings of paper secured by Govern- York Federal Reserve Bank under temporary ment obligations and by $61,500,000 in their repurchase agreements. Holdings . of other holdings of other discounted paper. Of United States securities, including the newly the total reduction of Government paper, issued Treasury notes, show an increase of $24,700,000 represents the reduction in paper about $4,000,000. Total earning assets of the secured by United States bonds, $19,500,000— Federal Reserve Banks, in consequence of the the reduction in paper secured by Victory above changes, show a decline for the review notes, and only $2,200,000—the reduction in period of about $117,000,000 and on September paper secured by Treasury certificates. 21 stood at $1,652,300,000, or nearly 52 per Holdings of acceptances purchased in open cent below the total shown at the close of the market show a slight decline from $35,200,000 past year. to $33,500,000. "Pittman" certificates on The table below presents a summary of the deposit with the Treasury to secure Federal weekly changes in the principal assets and Reserve Bank note circulation show a gradual liabilities of the Federal Reserve Banks for decline of $17,000,000, retirement of this the four weeks ending September 21, while amount by the Treasury being accompanied the chart on page 1236 gives a graphic picby a reduction of $9,200,000 in the reserve ture of these changes since the beginning of banks' net liabilities on Federal Reserve Bank last year. MOVEMENT OF PRINCIPAL ASSETS AND LIABILITIES OF THE 12 FEDERAL RESERVE BANKS COMBINED. [In millions of dollars.] Aug. 24. Aug. 31. Sept. 7. Sept. 14. Sept. 21. Reserves: Total 2,766.2 2,787.9 2,803.3 2,834.5 2,863.1 Gold. 2,619.1 2,641.1 2,656.4 2,684.5 2,711.1 Bills discounted: Total 1,495.4 1,491.9 1,508.5 1,428.2 1,387.2 Secured by U. S. Government obligations. 541.8 545.2 539.3 503.7 495.1 All other 953.6 946.7 969.2 924.5 892.1 Bills bought in open market 35.2 35.3 44.9 40.7 33.5 Certificates of indebtedness 204.7 196.2 208.0 207.7 193.4 Total earning assets 1,769.3 1,757.5 1,795.2 1,710.3 1,652.3 Government deposits 31.5 46.8 60.7 49T2" 74.2 Members' reserve deposits 1,617.0 1,618.9 1,632.1 1,631.0 1,588.2 Total deposits 1,673.6 1,690.8 1,718.1 1,705.8 1,691.6 F. R. notes in circulation 2,485.9 2,481.5 2,517.6 2,491.7 2,474.7 F. R. Bank notes in circulation—net liability. 112.8 109.9 107.8 103.1 103.6 Reserve percentage 66.5 66.8 66.2 67.5 68.7 Kediscounting operations of the Federal downward course, and on September 21 stood Reserve Banks of Richmond, Atlanta, Min- at $2,474,700,000, a new low record for the neapolis, and Dallas show a slight reduction year and about $930,000,000 below the peak in volume, the amount of bills held under attained on December 23 of last year. For the discount for these banks by the Boston, New same period, i. e. since December 23, 1920, the ; York, and Cleveland Federal Reserve Banks Federal Reserve Banks show also an aggregate at the close of the period, $66,500,000, being reduction of $115,200,000 in their net liabilities about $1,100,000 less than four weeks before. on Federal Reserve Bank notes in circulation. As against increases in rediscounts of $4,800,000 The Federal Reserve Banks report a further by the Richmond bank and of $8,500,000 by gain for the review period of $92,000,000 in the Atlanta bank, the Federal Reserve Bank gold and of $4,900,000 in other reserve cash. of Minneapolis shows a reduction of $10,900,000 Since the beginning of the year the reserve and the Dallas bank a reduction of $3,500,000 banks' gold holdings have increased by $648,for the four weeks under review. 300,000 and their aggregate cash reserves by Total deposits at the Federal Reserve Banks $609,400,000. It is this gain in reserves which fluctuated within the moderate limits of is largely responsible for the further rise of $1,690,800,000 on August 31 and $1,718,100,000 the reserve ratio from 66.5 to 68.7 per cent duron the following Wednesday. Federal Reserve ing the four weeks under review. The rise note circulation, after the usual increase before was continuous, except for the week ending the Labor Day holiday period, resumed its September 7, when a temporary increase in Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

OCTOBBB, 1921. FEDERAL RESERVE BULLETIN. 1239 note and deposit liabilities caused a decline posits, Federal Reserve note circulation, and in the ratio from 66.8 to 66.2 per cent. reserve percentages for the months of August In the following table are shown comparative and September of the present and the two figures of average daily cash reserves, de- preceding years: CASH RESERVES, TOTAL DEPOSITS, FEDERAL RESERVE NOTE CIRCULATION, AND RESERVE PERCENTAGES FOR SEPTEM- BER AND AUGUST, 1921. [Daily averages. Amounts in thousands of dollars.] Federal Reserve notes Total cash reserves. Total deposits. in circulation. Reserve percentages. Federal Reserve Bank. September. August. September. August, September. August. September. August. Boston , 259,856 269,837 112,448 110,867 240,205 242,919 73.7 76.3 New York 1,013,246 923,104 668,121 651,457 641,957 640,906 77.3 71.4 Philadelphia..... 217,453 207,039 103,411 101,915 212,648 217,506 68.8 64.8 Cleveland , 256,512 261,381 138,478 138,671 232,296 238,449 69.2 69.3 Richmond 68,706 70,820 54,872 55,124 107,510 109,979 42.3 42.9 Atlanta 71,492 72,332 44,803 43,980 129,233 132,457 41.1 41.0 Chicago 467,369 461,279 247,246 246,837 430,771 433,557 68.9 67.8 St. Louis 93,712 94,569 62,292 62,828 100,163 99,219 57.7 58.4 Minneapolis 40,224 38,591 44,705 43,377 56,998 55,668 39.6 39. C Kansas City 81,562 88,544 73,894 74,704 74,383 75,233 55.0 59.1 Dallas 34,815 33,551 45,059 42,761 39,962 40,233 40.9 40.4 San Francisco... 231,449 219,341 120,833 118,616 227,784 226,222 66.4 63.6 Total, 1921 2,836,396 2,740,388 1,716,162 1,691,137 2,493,910 2,512,348 67.4 65.2 1920 2,139,280 2,127,305 1,912,070 1,885,062 3,275,535 3,165,222 143.3 143.7 1919 2,157,932 2,146,003 1,930,969 1,911,769 2,627,295 2,544,357 150.4 150.1 i Calculated on the basis of net deposits and Federal Reserve notes in circulation. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1240 FEDERAL RESERVE BULLETIN. OCTOBER, 1921. CONDITION OF FEDERAL RESERVE BANKS. .RESOURCES AND LIABILITIES OF EACH FEDERAL RESERVE BANK ON WEDNESDAYS, AUG. 31 TO SEPT. 21, 1921. RESOURCES. [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. Lo S u t. is. M ap i o n l n is e . - K C a i n ty sa . s Dallas. F S r a a n ncisco. Gold and gold certificates: Aug.31 413,900 8,265 323,567 2,064 6,614 2,704 4,929 21,850 3,029 8,720 2,238 9,407 20,513 Sept-7 430,585 8,074 341,497 2,152 6,663 2,741 4,955 21,947 3,043 8,756 2,205 7,915 20,637 Sept.14 446,642 8,107 357,006 1,964 6,725 2,769 4,914 22,069 3,092 8,781 2,231 8,180 20,804 Sept. 21 428,036 8,211 334,216 2,050 12,180 2,804 4,951 22,212 3,132 8,785 2,261 18,765 Gold settlement fund—F.R. Board: Aug. 31 428,075 23,285 77,240 46,911 60,138 15,942 4,163 100,661 16,787 8,825 42,017 2,732 29,374 Sept.7 438,590 44,432 46,052 51,952 57,923 18,895 5,643 106,308 16,610 9,270 43,764 5,443 32,298 Sept.14 441,109 41,377 38,709 60,724 55,603 18,128 5,311 114,687 16,239 8,709 39,987 7,243 34,392 Sept. 21 411,210 45,267 92,876 48,038 46,586 17,088 7,228 62,266 13,528 29,350 6,362 32,731 Gold with F, R. Agents: Aug. 31 ,694,523 179,541 502,018 152,758 181,946 34,568 47,218 320,476 57,147 18,588 35,088 8,529 156,646 Sept.7 • .,677,195 165,271 501,848 150,960 184,444 32,650 46,783 314,536 57,123 18,664 36,599 9,229 159,088 Sept.14 ,694,301 171,423 501,598 146,233 183,005 29,762 47,153 326,798 56,910 18,807 36,332 8,534 167,746 Sept. 21 ,777,529 175,572 576,336 146,508 177,131 37,055 47,948 325,177 57,078 18,302 35,398 7,590 173,434 Gold redemption fund: Aug. 31 104,563 24,185 20,000 5,110 7,911 6,796 5,127 11,184 3,483 2,456 4,495 4,759 9,057 Sept.7 110,008 28,412 15,000 8,542 5,359 8,475 5,621 16,675 3,438 2,365 2,965 3,768 9,388 Sept.14 102,449 22,204 15,000 6,767 6,328 11,059 4,701 13,898 3,633 2,212 3,217 4,457 8,973 Sept. 21 94,353 17,933 15,000 5,994 6,623 5,394 4,855 15,387 3,460 2,706 4,038 5,386 7,577 Total gold reserves: Aug. 31 1,641,061 235,276 922,825 206,843 256,609 60,010 61,437 454,171 80,446 38,589 25,427 215,590 Sept.7 2,656,378 246,189 904,397 213,606 254,389 62,761 63,002 459,466 80,214 39,055 85,533 26,355 221,411 Sept.14 • 2,684,501 243,111 912,313 215,688 251,661 61,718 62,079 477,452 79,874 38,509 81,767 28,414 231,915 Sept. 21 2,711,128 246,983 ,018,428 202,590 242,520 62,341 64,982 425,042 77,198 39,683 71,047 27,807 232,507 Legal-tender notes, silver, etc.: Aug. 31 146,859 15,638 58,916 3,447 8,048 4,599 8,049 19,023 13,360 4,753 6,494 3,943 Sept.7 146,876 16,308 58,090 6,574 6,922 4,173 7,759 18,546 13,322 584 4,059 6,454 4,085 Sept.14 150,001 15,602 60,075 6,521* 7,408 4,570 8,024 19,098 13,192 587 4,651 6,451 3,822 Sept. 21 151,968 15,822 60,140 6,158 6,725 5,059 8,076 19,728 15,236 637 4,373 6,285 3,729 Total reserves: Aug.31 ' 2,787,920 250,914 981,741 210,290 264,657 64,609 473,194 93,806 39,178 88,591 31,921 219,533 Sept.7 2,803,254 262,497 962,487 220,180 261,311 66,934 70,761 478,012 93,536 39,639 89,592 32,809 225,496 Sept.14 2,834,502 258,713 972,388 222,209 259,069 66,288 70,103 496,550 93,066 39,096 86,418 34,865 235,737 Sept. 21 2,863,096 262,805 ,078,568 208,748 249,245 67,400 73,058 444,770 92,434 40,320 75,420 34,092 236,236 Bills discounted: Secured by U. S. Government obligations— Aug. 31 • 545,176 38,568 151,568 78,150 43,638 30,453 35,078 70,403 27,325 6,257 18,485 6,951 38,300 Sept.7 539,333 31,771 151,038 76,937 46,457 24,706 35,248 67,653 28,722 8,996 18,386 9,214 40,205 Sept.14 503,677 32,960 127,374 74,745 45,095 26,090 36,068 63,392 28,198 9,450 18,207 7,540 34,558 Sept. 21 495,156 32,021 112,266 74,318 40,026 24,990 36,867 69,047 26,867 9,072 22,754 8,832 38,096 All other— Aug. 31 946,759 61,755 204,402 28,379 81,110 73,010 64,395 139,865 45,773 63,928 46,946 46,762 90,434 Sept.7 • 969,154 65,853 219,389 26,246 87,913 72,196 64,838 145,581 45,106 62,380 45,649 45,313 88,690 Sept.14 924,485 62,591 190,142 29,001 88,659 72,987 65,702 132,074 45,285 60,538 47,712 44,955 84,839 Sept.21 892,081 54,594 121,964 28,806 99,308 75,408 63,908 157,162 48,424 62,112 51,282 50,292 78^ 821 Bills bought in open market: Aug. 31 35,320 4,174 15,302 3,127 1,521 2,346 878 3,054 437 1,018 70 3,393 Sept.7 44,920 3,246 25,910 2,288 2,250 2,271 1,446 2,656 374 918 42 3,519 Sept.14 40,712 3,445 23,334 1,440 1,880 2,449 2,166 1,559 304 460 20 3,655 Sept. 21 ,.-. 33,514 3,454 12,679 2,372 1,513 2,905 3,503 3,387 592 384 20 2,705 U.S.bonds and notes: Aug.31 34,008 556 1,005 1,449 844 1,233 10,359 4,490 1,153 118 3,729 204 Sept.7 33,813 556 1,005 1,449 844 1,233 10,359 4,490 1,153 124 3,529 203 Sept.14 33,729 553 1,005 1,447 844 1,233 10,359 4,490 1,153 119 3,454 204 Sept. 21 38,081 1,943 1,005 3,397 844 1,233 10,408 5,309 1,153 121 9,425 2,804 439 U.S. certificates of indebtedness: One-year certificates (Pittman Act)— Aug.31 193,875 17,436 52,276 23,280 19,799 5,260 8,564 31,612 11,568 5,480 7,320 2,400 Sept.7 190,875 17,436 50,776 23,280 19,799 5,260 8,564 31,612 11,068 4,980 7,320 1,900 Sept.14 187,875 17,436 49,276 23,280 19,799 5,260 8,564 30,112 11,068 4,980 7,320 1,900 Sept. 21 184,875 16,936 49,276 23,280 18,299 5,260 8,564 29,112 11,068 4,980 7,320 1,900 All other— Aug.31 2,350 21 140 1 1 1,873 274 Sept.7 17,084 315 15,550 117 3 1 822 176 11 Sept.14 19,803 232 19,050 117 21 1 90 135 146 11 Sept. 21 8,571 514 3,645 248 37 1 1,879 134 60 1,425 196 432 Total earning assets: Aug.31 1,757,488 122,510 424,553 134,525 146,913 112,302 119,275 251,297 86,530 75,787 82,637 59,912 141,247 Sept.7 1,795,179 119,177 463,668 130,317 157,266 105,666 120,456 252,814 86,599 76,569 81,141 59,998 141,508 Sept.14 1,710,281 117,217 410,181 130,030 156,298 108,019 122,860 231,717 86,143 75,233 82,567 57,869 132,147 Sept. 21 1,652,278 109,462 300,835 132,421 160,027 109,796 123,251 265,896 88,238 76,345 92,590 64,044 129,373 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

OCTOBER, 1921. FEDERAL, RESERVE BULLETIN. 1241 RESOURCES AND LIABILITIES OF EACH FEDERAL RESERVE BANK ON WEDNESDAYS, AUG. 31 TO SEPT. 21, 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 i - a. C la le n v d e . - m R o ic n h d - . Atlanta. Chicago. Lo S u t. is. M ap i o n l n is e . - K C a i n ty s . as Dallas. F S r a a n ncisco. Bank premises: Aug. 31 27,509 4,034 5,518 529 2,675 2,351 844 4,430 627 658 3,219 2,003 621 Sept.7 27,700 4,059 5,531 533 2,733 2,352 854 4,478 627 659 3,219 2,017 Sept. 14 28,877 4,110 5,592 533 2,871 2,501 854 4,986 627 659 3,455 2,051 638 Sept. 21 29,111 4,219 5,594 533 2,925 2,501 861 4,987 627 690 3,455 2,052 667 Five per cent redemption fund against F.R.Bank notes: Aug. 31 9,539 772 1,684 700 1,240 263 467 2,001 523 293 916 186 494 Sept.7 9,221 772 1,684 700 1,239 263 467 1,799 523 178 916 186 494 Sept. 14 8,845 772 1,413 700 1,239 263 1,693 523 178 916 186 494 Sept. 21 8,917 772 1,513 700 1,239 263 1,665 523 178 916 186 494 Uncollected items: Aug. 31 455,897 40,127 96,033 45,530 40,707 36,970 15,857 59,720 24,873 12,305 18,842 27,951 Sept.7 494,667 42,492 99,183 42,611 43,204 37,764 17,964 67,601 30,003 15,304 42,703 32,155 Sept.14 641,279 57,452 133,250 57,144 67,316 49,008 21,971 81,200 34,312 16,891 49,397 45,358 Sept. 21 591,811 55,835 123,004 50,254 51,279 52,777 21,153 74,367 33,656 15,584 42,899 29,818 41,185 All other resources: Aug. 31 17,470 402 2,647 411 961 277 1,964 768 543 453 2,354 5,806 Sept.7 18,101 430 3,076 442 1,004 591 910 1,959 826 553 469 2,033 5,808 Sept.14 16,801 443 3,199 442 1,067 305 773 1,869 841 597 470 1,794 5,001 Sept. 21 16,448 463 2,811 460 1,066 846 .1,825 845 615 505 1,904 4,718 Total resources: Aug. 31 5,055,823 418,759 1,512,176 391,985 457,153 216,772 206,813 792,606 207,127 128,764 212,798 115,218 395,652 Sept. 7 5,148,122 429,427 1,535,629 394,783 466,757 213,570 211,412 806,663 212,114 132,902 218,040 120,726 406,099 Sept.14 5,240,585 438,707 1,526,023 411,058 487,860 226,384 217,029 818,015 215,512 132,654 223,223 124,745 419,375 Sept. 21 5 161 661 433,556 1,512,325 393,116 465,781 233,127 219,637 793,510 216,323 133,732 215,785 132,096 412,673 LIABILITIES. Capital paid in: Aug. 31 103,050 7,935 27,067 8,682 11,151 5,389 4,126 14,316 4,566 3,550 4,537 4,317 7,414 Sept.7 103,073 7,935 27,069 11,131 5,389 4,132 14,324 4,567 3,553 4,537 4,317 7,436 Sept.14 102,982 7,935 27,069 11,103 5,401 4.138 14,326 4,567 3,553 4,534 4,314 7,359 Sept. 21 103,017 7,935 27,069 11,110 5,402 4; 140 14,335 4,567 3,553 4,534 4,314 7,375 Surplus: Aug. 31 213,824 16,342 59,318 17,564 22,263 11,026 8,708 30,536 9,114 7,303 9,330 7,113 15,207 Sept. 7 213,824 16,342 59,318 17,564 22,263 11,026 8,708 30,536 9,114 7,303 9,330 7,113 15,207 Sept.14 213,824 16,342 59,318 17,564 22,263 11,026 8,708 30,536 9,114 7,303 9,330 7,113 15,207 Sept.21 213,824 16,342 59,318 17,564 22,263 11,026 8,708 30,536 9,114 7,303 9,330 7,113 15,207 Reserved for Government franchise tax: Aug. 31 48,061 2,457 18,964 3,148 2,147 2,155 3,212 8,951 1,143 1,733 1,684 2,467 Sept.7 49,099 2,536 19,280 3,210 2,264 2,239 3,305 9,061 1,198 1,780 1,722 2,504 Sept.14 50,101 2,563 19,590 3,248 2,421 2,290 3,368 9,155 1,259 1,808 1,735 2,664 Sept. 21 50,777 2,634 19,709 3,314 2,462 2,373 3,463 9,196 1,280 1,871 1,766 2,709 Deposits: Government— Aug. 31 46,809 2,853 21,837 2,186 1,475 3,943 1,649 2,120 2,018 1,973 2,633 1,442 2,680 Sept.7 60,701 8,503 16,467 6,445 4,060 1,119 1,963 10,179 2,373 3,148 2,957' 1,738 1,749 Sept.14 49,219 2,066 8,597 5,163 5,009 2,160 2,953 5,566 2,046 1,920 8,015 2,021 3,703 Sept. 21 74,183 3,457 21,244 670 6,673 4,071 6,603 9,523 2,880 5,454 2,937 6,843 Member bank— reserve account— Aug. 31... 1,618,901 106,300 634,905 97,476 133,835 49,591 40,859 239,525 59,038 41,478 70,319 38,574 107,001 Sept.7 1,632,135 105,679 643,657 96,348 135,607 49,963 42,511 233,878 60,951 41,239 70,496 39,094 112,712 Sept.14 1,631,038 110,639 623,958 99,364 136,678 50,270 43,696 245,655 58,550 39,902 67,069 40,458 114,799 Sept. 21 1,588,209 107,282 614,023 98,309 132,768 49,232 40,738 230,745 58,100 38,643 67,642 38,976 111, 751 All other— Aug. 31.... 25,044 786 11,889 1,006 715 453 2,862 724 481 597 499 4,666 Sept.7 25,232 1,034 12,841 1,017 733 424 479 2,195 766 541 524 516 4,162 Sept.14 25,574 813 12,478 1,309 1,279 524 381 2,335 859 549 641 504 3,902 Sept. 21 29,218 968 12,312 1,653 915 675 357 2,972 892 584 724 445 6,721 Total deposits: Aug. 31 1,690,754 109,939 668,631 100,668 136,025 53,987 42,874 244,507 61,780 43,932 73,549 40,515 114,347 Sept.7 1,718,068 115,216 672,965 103,810 140,400 51,506 44,953 246,252 64,090 44,928 73,977 41,348 118,623 Sept.14 1,705,831 113,518 645,033 105,836 142,966 52,954 47,030 253,556 61,455 42,371 75,725 42,983 122,404 Sept. 21 1,691,610 111,707 647,579 100,632 140,356 53,978 47,698 243,240 61,872 44,681 71,303 46,264 122,300 F. R. notes in actual circulation: Aug. 31 2,481,466 241,411 632,320 213,765 234,852 107,006 127,468 431,431 98,359 55,618 74,408 39,106 225,722 Sept.7 12,517,563 244,906 647,337 213,818 235,728 107,740 128,962 438,117 98,936 57,140 75,063 39,409 230,407 Sept.14 2,491,651 241,999 639,847 213,815 233,545 106,129 127,393 429,888 99,347 57,172 74,427 39,415 228,674 Sept. 21 2,474,676 238,331 635,042 210,130 228,882 107,969 128,934 427,286 100,215 57,431 74,379 39,814 226,263 F. R. Bank notes in circulation—net liability: Aug. 31 109,864 6,628 29,070 7,094 12,577 4,440 7,047 12,597 5,896 4,148 12,830 3,499 4,038 Sept.7 107,759 7,116 27,541 7,287 12,485 4,660 7,091 12,420 5,537 3,531 12,868 3,137 4,086 Sept.14 103,078 7,966 23,030 7,476 12,368 4 727 7,344 10,899 5,691 3,528 12,845 3,104 4,100 Sept. 21 103,590 7,894 25,396 7,620 10,746 4,728 7,737 6,022 3,533 12,781 3,095 4,150 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1242 FEDERAL RESERVE BULLETIN. OCTOBER, 1921. RESOURCES AND LIABILITIES OF EACH FEDERAL RESERVE BANK ON WEDNESDAYS, AUG. 31 TO SEPT. 21, 1921— Continued. LIABILITIES-Continued. [In thousands of dollars.] Total. Boston. Y N o e r w k. d P el h p i h la i - a. C l l a e n v d e . - R m i o c 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 is a r c a n o n . - Deferred availability items: Aug. 31 389,362 32,836 72,680 40,165 36,835 31,613 12,484 47,059 25,188 11,268 35,306 19,309 24,619 Sept.7 418,553 34,141 77,661 39,456 41,152 29,840 13,334 52,600 27,575 13,454 39,377 24,008 25,955 Sept. 14 553,235 47, 111 107,906 53,501 61,941 42,659 18,085 66,267 32,961 15,733 43,448 26,383 37,240 Sept. 21 503,174 47,420 93,878 44,160 48,639 46,408 17,959 55,270 32,083 14,143 40,441 29,857 32,916 All other liabilities: Aug. 31 19,442 1,211 4,126 1,303 1,156 3,209 1,081 1,212 1,154 1,359 1,838 Sept.7 20,183 1,235 4,458 955 1,334 1,170 927 3,353 1,097 1,213 1,166 1,394 1,881 Sept. 14 19,883 1,273 4,230 935 1,253 1,198 963 3,388 1,118 1,186 1,179 1,433 1,727 Sept. 21 20,993 1,293 4,334 1,013 1,323 1,243 3,759 1,170 1,217 1,251 1,639 1,753 Total liabilities: Aug. 31 5,055,823 418,759 1,512,176 391,985 457,153 216,772 206,813 792,606 207,127 128, 764 212,798 115,218 395,652 Sept.7 5,148,122 429,427 1,535,629 394,783 466,757 213,570 211,412 806,663 212,114 132,902 218,040 120,726 406,099 Sept. 14 5,240,585 438,707 1,526,023 411,058 487, 860 226,384 217,029 818,015 215,512 132,654 223,223 124,745 419,375 Sept. 21 5,161,661 433,556 1,512,325 393,116 465,781 233,127 219,637 793,510 216,323 133,732 215,785 132,096 412,673 MEMORANDA. Ratio of total reserves to deposit and F. R. note liabilities combined—per cent: Aug. 31 66.8 71.4 75.5 66.9 71.4 40.1 40.8 70.0 58.6 39.4 59.9 40.1 : 64.6 Sept.7 66.2 72.9 72.9 69.3 42.0 40.7 57.4 38.8 60.1 40.6 I 64.6 Sept. 14 67.5 72.8 75.7 69.5 68.8 41.7 40.2 72.7 57.9 39.3 57.6 42.3 J 67.1 Sept. 21 68.7 75.1 84.1 67.2 67.5 41.6 41.4 66.3 57.0 39.5 51.8 39.6 ! 67.8 Contingent liability on bills purchased for .foreign correspondents: Aug. 31 35,906 2,649 12,931 2,904 2,976 1,778 1,307 4,319 1,706 980 1,742 944 1,670 Sept.7 34,307 2,490 12,713 2,729 2,797 1,672 1,228 4,060 1,603 921 1,638 887 1,569 Sept. 14 34,319 2; 490 12,725 2,729 2,797 1,672 1,228 4,060 1,603 921 1,638 887 1,569 Sept. 21 34,335 2,490 12,741 2,729 2,797 1,672 1,228 4,080 1,603 921 1,638 1,569 REDISCOUNTS OF BILLS BETWEEN FEDERAL RESERVE BANKS. [In thousands of dollars.] Paper rediscounted with other F. R. Banks and Paper discounted for other F. R. Banks and held outstanding at close of business— at close of business— FEDERAL RESERVE BANK. Aug. 31. Sept. 7. Sept. 14. Sept. 21. Aug. 31. Sept. 7. Sept. 14. Sept. 21. 26,716 24 103 27 058 21 093 34,768 35,875 34 030 3l'780 6,820 9,625 9,910 13,603 20,000 24,861 24,970 24,728 Atlanta 8,926 9,669 12,673 16,430 14,768 11,014 9,060 7,052 Dallas 24,610 24,059 24,295 18,266 Total 68,304 69,603 70,998 66,476 68,304 69,603 70,998 66,476 MATURITY DISTRIBUTION OF BILLS AND CERTIFICATES OF INDEBTEDNESS HELD BY THE 12 FEDERAL RESERVE BANKS COMBINED. [In thousands of dollars.] Total. W d it a h y in s. 15 1 d 6 a t y o s. 30 31 d a t y o s 6 . 0 61 d a to y s 9 . 0 O d v a e y r s 9 . 0 Bills discounted: Aug. 31 L, 491,935 859,576 155,111 279,433 164,105 33,710 Sept.7 L, 508,487 878,094 172,739 275,915 153,695 28,044 Sept. 14 L, 428,162 832,181 168,007 246,313 148,124 33,537 Sept. 21 L,387,237 781,238 166,165 244,633 162,421 32,780 Bills bought in open market: Aug. 31 35,320 19,876 5,619 6,987 2,838 Sept.7 44,920 27,294 6,243 7,804 3,579 Sept. 14 40,712 23,864 8,702 5,704 2,342 100 Sept.21 33,514 12,509 10,980 6,070 3,775 180 XJ. S. certificates of indebtedness: Aug. 31 196,225 10,354 15,506 30,107 9,800 130,458 Sept.7 207,959 20,430 23,689 16,063 15,799 131,978 Sept. 14 207,678 21,082 16,686 17,280 17,013 135,617 Sept. 21 193,446 16,984 11,563 15,700 11,689 137,510 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1243 OCTOBER, 1921. FEDERAL, RESERVE BULLETIN. FEDERAL RESERVE NOTES. FEDERAL RESERVE AGENTS' ACCOUNTS ON WEDNESDAYS, AUG. 31 TO SEPT. 21, 1921. [In thousands of dollars.] Total. Boston. Y N o ew rk. d P el h p i h la i - a. C la le n v d e . - m R o ic n h d - . Atlanta. Chicago. Lo S u t. is. M ap i o n l n is e . - K C a i n ty s . as Dallas. F c S i r s a a c n n o - . Net amount of F. R. notes received from Comptroller of the Currency: Aug. 31 3,701,036 356,028 1,089,275 263,046 300,543 138,402 214,438 648,411 150,331 70,919 87,644 66,749 315,250 Sept.7 3,688,605 355,658 1,090,850 259, 248 299,041 136,484 212,402 648,870 149,508 69,995 86,355 67,703 312,491 Sept. 14 3, 706, 770 359,610 1,094,755 259, 520 135,595 215,174 641, 853 150,155 I 71,978 69,009 322,830 Sept. 21 3,667,177 352, 879 1,090,752 254, 796 294,209 134,188 213,569 630,232 150,662 | 72,153 87,155 68,064 318, 518 F. R. notes on hand: Aug. 31 851, 315 98,210 315, 500 20,620 44,400 24,089 79,799 165,900 29,160 I 13,015 5,040 24,422 31,160 Sept.7 96,910 311,500 20,620 43,000 21,649 78,638 167,900 28,160 I 10,885 3,840 24,932 28,260 Sept. 14 844,100 101, 950 299,500 20,220 44, 200 21,849 81,039 163,980 27,660 11,670 4,640 26,132 41,260 Sept. 21 829,510 99,100 305,900 20,220 44,680 19,969 77,919 157, 700 26,660 12,150 3,840 24,412 F. R. notes outstanding: Aug. 31 2,849,721 257, 818 773,775 242,426 256,143 114,313 134,639 482,511 121,171 57,904 82,604 42,327 284,090 Sept.7 2,852,311 258,748 779,350 238,628 256,041 114,835 133,764 480,970 121,348 59,110 82,515 42,771 284, 231 Sept. 14 257,660 795,255 239,300 254,402 113,746 134,135 477,873 122,495 83,049 42,877 281, 570 Sept. 21 , 837,667 253,779 784, 852 234, 576 249,529 114,219 135,650 472, 532 124,002 60,003 83,315 43,652 281, 558 Collateral security for F. R. notes outstand- Gold and gold certificates— Aug. 31 400,992 5,600 346,924 23,775 3,400 6,110 13,052 2,131 Sept.7 402,738 5,600 346,924 23,775 3,400 6,110 13,052 3,877 Sept. 14 402, 737 5,600 346,924 23,775 3,400 6,110 13,052 3,876 Sept. 21 447,337 5,600 396, 924 18,375 3,400 6,110 13,052 3,876 Gold redemption fund— Aug. 31 113,709 13, 941 19,094 16,369 13,171 3,568 2,818 15,832 3,906 1,336 2,728 3,164 17,782 Sept.7 113,842 19,671 18,924 12,571 15,669 1,650 14,892 4,082 1,412 3,239 2,118 14,931 Sept.14 113,195 15, 823 18,674 14,844 14,230 1,762 3,053 13,154 3,869 1,555 3,972 3,424 18,835 Sept. 21 117, 912 19,972 18, 412 18,119 13, 756 2,055 3,748 15,533 3,537 1,050 2,038 2,480 17,212 Gold settlement fund — F. R. Board— Aug. 31 1,179,822 160,000 136,000 136,389 145,000 31,000 41,000 304,644 47,131 4,200 32,360 3,234 138,864 Sept.7 1,160,615 140,000 136,000 138,389 145,000 31,000 38,700 299,644 46,931 4,200 33, 360 3,234 144,157 Sept.14 1,178,369 150,000 i 136,000 131,389 145,000 28,000 40,700 313,644 46,931 4,200 32,360 1,234 148, 911 Sept. 21 1,212,280 150,000 I 161,000 128,389 145,000 35,000 40,800 309,644 47,431 4,200 33,360 1,234 156,222 Eligible paper— Amount required— Aug. 31 1,155,198 78,277 I 271,757 74,197 79,745 87,421 162,035 64,024 39,316 47,516 33,798 127,444 Sept.7 1,175,116 93,477 I 277,502 87,668 71,597 82,185 86,981 166,434 64,225 40,446 45.916 33,542 125,143 Sept. 14 1,168,369 86,237 293,657 93,067 71.397 83,984 86,982 151,075 65,585 41,501 46,717 34,343 113,824 Sept.21 1,060,138 78,207 208,516 72.398 77,164 87,702 147,355 66,924 41,701 47.917 36,062 108,124 Excess amount held— Aug. 31 324,693 26,220 73,151 2,074 51,789 24,263 12,920 51,210 9,479 30,437 18,918 19,891 4,341 Sept.7 332,071 7,393 92,446 14,077 14,541 I 48,762 ^30,020 19,002 20,878 6,809 Sept. 14 259, 546 12, 759 21,853 1,704 63,556 14,590 16,949 45, 502 8,144 27,753 19,545 18,172 9,019 Sept. 21 316,587 11,862 14,299 1,607 68,187 23,893 16,566 82,196 8,942 26,394 22,916 11,286 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1244 FEDERAL RESERVE BULLETIN. OCTOBER, 1921. CONDITION OF MEMBER BANKS IN LEADING CITIES. PRINCIPAL RESOURCES AND LIABILITIES OF MEMBER BANKS IN LEADING CITIES ON WEDNESDAYS, FROM AUG. 24 TO SEPT. 14, 1921. ALL REPORTING MEMBER BANKS IN EACH FEDERAL RESERVE DISTRICT. [Amounts in thousands of dollars.] Boston. Y N o ew rk. P p d h h e i l i l - a a . - C la le n v d e . - m R o ic n h d - . la A n t t - a. Chicago. Lo S u t. is. M ap i o n l n i e s. - K C a i n ty sa . s Dallas. F c S i r s a a c n n o - . Number of reporting banks: Aug. 24 812 49 112 43 112 52 Aug. 31 812 49 112 112 52 66 Sept. 7 810 49 112 112 52 66 Sept. 14 810 49 112 82 112 52 66 Loans and discounts, including bills rediscounted with F. R. Bank: Secured by U. S. Government obligations— Aug. 24 629,425 38,337 252,569 68,477 58,243 24,791 16,758 78,990 18,103 13,097 19,102 6,854 34,104 Aug. 31 609,197 34,035 242,553 69,773 58,440 24,957 17,683 78,002 18,164 13,114 18,328 7,446 26,702 Sept.7 604,710 33,461 240,396 70,467 56,274 24,501 18,063 78,099 18,382 12,989 17,692 7,448 26,938 Sept. 14 598,682 32,898 235,060 68,360 56,004 24,247 18,233 79,766 18,637 13,684 17,936 6,626 27,231 Secured by stocks and bonds (other than U. S. Government obligations)— Aug. 24 2,926,6641 186,2811,217,735 178,730 336,995 109,263 52,004 444,432 118,823 31,671 69,129 37,177 144,424 Aug. 31 2,922,720) 185,6891,215,577 182,394 336,644 106,572 51,916 440,646 119,458 32,416 68,583 38,151 144,674 Sept.7 2,920,893 186,5271,198,691 188,299 335,937 109,882 51,382 449,892 118,495 30,724 66,114 38,427 146,523 Sept. 14 2,966,321 185,6701,258,541 184,233 336.394 109,577 51Q02 440,893 118,622 30,785 37,683 145,635 All other— Aug. 24 7,939,635 594,7142,683,233 360,421 661,146 327,499 304L,0641,165,909 302,272 236,025 369,387 202,077 732,888 Aug. 31 7,9.9,327 592,888899 22,,701,886 351,718 655,029 327,365 306>,,8261,164,444 301,943 368,289 205,089 747,751 Sept.7 7,956,277 592,5442,695,705 352,386 657,603 326,361 308,0321!,162,311 301,376 236,686 370,930 206,604 745,739 Sept. 14 7,997,773 597,7—63 12,,691,207 355,786 662,893 330,263 316,5151,177,158 304,157 238,623 369,231 207,093 747,084 Total loans and discounts, including bills rediscounted with F. R. Bank: Aug. 24 11,495,724 819,332 4,,153,537 607,6281,056,384 461,553 372,8261,689,331 439,198 280,793 457,618 246,108 911,416 Aug. 31 11,491,244 812,613 4t, 160,016603, 8851, 050,113 458,894 376,4251,683,092 439,565 281,628 455,200 250,686 919,127 Sept.7 11,481,880 812,532 4L!134,792 611, 1521,049,814 460,744 377,4771,690,302 438,253 280,399 454,736 252,479 919,200 Sept. 14 11,562,776 816,3314!,184,808 608,3791,055,291 464,087 386,3501, 697,817 441,416 283,092 453,853 251,402 919,950 U. S. bonds: Aug. 24 868,116 37,25: 312,533 46,633 104,818 59,090 30,520 70,056 26,950 15,854 32,720 34,254 97,436 Aug. 31 870,054 36,776 312,537 46,560 105,377 59,492 30,849 70,558 26,890 15,833 33,755 33,732 97,695 Sept.7 870,482 37,453 314,085 47,025 104,547 60,386 30,300 69,931 26,868 15,397 32,919 33,978 97,593 Sept. 14 867,862 37,338 314,679 46,295 101,599 60,855 30,380 70,645 26,849 15,754 31,565 34,290 97,613 U. S. Victory notes: Aug. 24 166,084 5,822 78,428 5,681 16,676 5,047 2,175 27,959 1,910 3,139 17,290 Aug. 31 165,219 5,990 79,714 5,641 16,659 4,846 2,186 26,952 1,942 761 2,881 1^172 16,475 Sept.7 161,897 5,600 78,192 5,334 16,400 4,859 2,176 26,936 1,925 762 2,483 1,172 16,058 Sept. 14 162,475 5,551 77,946 5,355 16,685 4,542 2,162 26,910 1""' 697 2,761 1,272 16,700 U. S. Treasury notes: Aug. 24 52,019 1,755 29,969 464 5,944 153 254 362 1,131 3,094 Aug. 31 50,861 1,9:57 30,010 1,152 664 5,792 102 254 161 729 2,883 Sept.7 '48,333 1,697 29,804 6,436 1,156 665 4,683 254 160 497 2,887 Sept. 14 53,369 1,677 29,359 6,509 5,028 819 6,239 244 597 2,594 U. S. certificates of indebtedness: Aug. 24 „ 171,383 5,15' 77,598 16,289 10,798 4,689 2,467 21,390 1,646 1,021 6,597 3,622 20,109 Aug. 31 157,738 3,640 74,466 13,356 9,689 2,955 2,447 20,651 944 981 6,293 2,967 19,349 Sept.7.. 140,624 3,706 64,350 10,299 9,256 1,959 2,364 19,281 894 1,079 5,480 2,718 19,238 Sept. 14 141,029 4,731 64,015 10,379 10,000 2,401 1,882 20,634 1,631 541 5,577 2,724 16,514 Other bonds, stocks, and securities: Aug. 24 2,028,706 138,789 721,281 154,504 276,521 54,014 36,797 20,211 44,642 9,459 167,719 Aug. 31 2,024,094 139,720 712,783 153,441 275,904 53,548 36,290 341,784 67,15' 20,248 44,663 9,368 169,188 Sept.7 2,023,369 140,531 715,243 152,708 274,663 53,251 37,128 341,183 67,571 20,310 44,151 9,372 167,258 Sept.14 2,013,237 140,156 711,901 152,907 273,801 47,953 36,946 339,778 67,181 20,183 46,009 10,108 166,314 Total loans and discounts and investments, ialluding bill s re lis counted with F. R. Bank: Aug. 24 14,782,0321,008,107 5,,373,346 838,7201.,466,105 584, 444,785 21,152,763536,543 318,902 545,078 2951,,7621[,217,064 Aug. 31 14,759,2101,000,676 5,,369,526 830,, 0601L-, 458,894 580,399 448,197 21;,148,829 536,600 319,705 542,953 2981,,6641',224,717 Sept.7 14,726,5851,001,519 5,,336,466 832,,9541L, 455,836 581,864 449,445 25,152,316 535,605 318,201 539,929 3001,2161.,222,234 Sept. 14 14,800,7481,005,784 5,.382,708 829,,8241L, 462,404 580,657 457,720 25;,162,023 539,085 320,511 539,954 300,3931L, 219,685 Reserve with F. R. Bank: Aug. 24 1,210,452 72,776 563,961 58,063 93,204 30,342 25,657 177,538 38,345 17,805 40,643 20,263 71,855 Aug. 31 1,217,579 71,700 576,255 58,815 89,614 29,420 25,279 178,535 38,022 18,907 41,334 18,572 71,126 Sept.7 1,236,233 71,675 586,046 59,118 92,292 29,429 27,048 174,580 40,015 19,228 41,909 18,579 76,314 Sept. 14 1,228,693 75,476 564,815 61,034 94,753 30,443 27,953 184,558 37,928 17,052 37,804 19,786 77,091 Cash in vault: Aug. 24 301,486 20,629 101,029 17,081 28,962 13,905 9,391 53,583 6,544 6,360 12,354 9,249 22,399 Aug. 31 289,714 20,105 95,403 16,534 26,592 13,392 9,413 51,708 6,697 6,118 12,080 9,375 22,297 Sept.7 307,600 20,448 101,835 16,145 29,088 14,451 9,478 55,544 7,441 6,640' 13,075 9,807 23,648 Sept. 14 310,018 21,301 103,022 17,275 29,305 14,455 9,657 53,948 7,388 6,2571 12,998 10,213 24,199 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

OCTOBER, 1921. FEDERAL RESERVE BULLETIN. 1245 PRINCIPAL RESOURCES AND LIABILITIES OF MEMBER BANKS IN LEADING CITIES ON WEDNESDAYS, FROM AUG. 24, TO SEPT. 14, 1921—Continued. ALL REPORTING MEMBER BANKS IN EACH FEDERAL RESERVE DISTRICT—Continued. [Amounts in thousands of dollars.] Total. Boston. Y N o e r w k. • P p d b h e i i l l a a - . - C la le n v d e . - m R o ic n h d - . la A n t t - a. Chicago. Lo S u t. is. M ap i o n l n i e s. - K C a i n ty sa . sDallas. c F S i r s a a c n n o - . Net demand deposits: Aug. 24 893,704 705,547 41,,412,894605,882 802,998 292,708 206,7491,286,186 282,884 168,522 376,951 180,726 571,657 Aug. 31 967,547 700,129 4L: 465,258 608,790 806,715 295,715 209,4661L, 299,128283,343 172,777 373,680 181,128 571,418 Sept. 7 982,367 700,562 4L: 457,557 614,852 810,175 296,279 214 1561[,292,772283,698 174,671 378,076 185,268 574,301 Sept. 14 130,875 717,997 41;,516,503 615,212 817,811 294,756 213,40211,344,220285,694 177,083 372,247 186,439 589,511 Time deposits: • Aug. 24 904,760 179,021 427,338 41,355 427,635 121,473 142,177 647,381 144,613 68,690 102,660 60,360 542,057 Aug. 31 924,701 179,103 435,485 41,207 427,738 122,242 142,024 652,397 144,720 68,526 102,525 60,779 547,955 Sept.7 914,007 180,740 435,508 41,622 424,340 122,166 141,157 653,082 145,379 68,389 99,913 60,029 541,682 Sept. 14 916,826 181,775 439,751 42,526 424,290 121,828 140,139 652,882 145,916 67,840 99,654 59,776 540,449 Government deposits: Aug. 24 197,059 15,082 86,163 20,728 16,065 6,114 2,1 20,468 5,500 5,838 4,805 4,079 9,235 Aug. 31 167,104 12,881 73,667 17,717 13,546 5,192 2,697 16,149 4,664 5,025 4,106 3,564 7,896 Sept. 7 139,747 10,633 60,995 14,355 11,464 4,299 2,255 14,881 3,859 4,150 3,407 2,914 6,535 Sept. 14 130,499 10,633 60,994 14,350 10,995 4,302 2,152 6,989 3,850 4,160 3,407 2,831 5,836 Bills payable with F. R. Bank: Secured by U. S. Government obligations— Aug. 24 261,397| 7,932 94,448 26,898 18,450 24,514 12,277 12,165 3,399 7,185 4,376 19,767 Aug. 31 265,667 12,135 92,731 28,103 18,781 24,151 12,740 27,767 12,341 3,269 8,356 4,636 20,657 Sept.7 264,815 9,797 91,267 27,746 20,104 23,458 12,601 26,380 13,907 3,330 8,441 4,781 23,003 Sept. 14 232,493 9,757 70,682 26,332 18,724 24,886 13,160 22,341 13,739 3,031 8,123 4,431 17,287 All other— Aug. 24 593 27 150 25 250 141 Aug. 31 671 27 25 478 141 Sept.7 680 27 264 248 141 Sept.14 2,623 1,922 264 298 139 Bills rediscounted with F.R. Bank: Secured by U. S. Government obligations— Aug.24 75,609 11,188 15,869 19,626 7,693 2,923 3,685 6,643 2,075 965 1,754 353 2,835 Aug. 31 70,409 6,722 14,944 18,477 7,599 3,150 4,859 6,463 2,240 1,126 1,700 357 2,772 Sept.7 68,363 5,832 14,705 18,042 7,801 2,803 5,125 2,434 1,044 1,622 352 2,917 Sept. 14 64,023 6,003 12,781 17,445 6,532 2,628 V" 5,111 2,413 932 1,691 303 2,745 A J] other— Aug.24 628,999 32,255 183,516 24,361 72,814 44,489 35,152 93,881 28,619 33,763 26,003 15,579 38,567 Aug. 31 619,205 35,836 182,124 22,748 64,553 43,989 37,510 87,019 30,301 32,685 26,268 16,599 39,573 Sept.7 645,675 39,576 199,192 21,092 69,476 44,172 34,923 93,125 29,893 31,230 25,384 17,915 39,697 Sept. 14 609,187 35,450 170,650 23,773 69,017 45,616 42,535 79,433 30,163 29,207 27,334 17,945 38,064 MEMBER BANKS IN FEDERAL RESERVE BANK CITIES. [Amounts in thousands of dollars.] Number of reporting banks: Aug.24 280 15 Aug. 31 15 Sept.7 280 15 Sept.14 280 26 15 Loans and discounts, including bills rediscounted with F.~R. Bank: Secured by U. S. Government obligations— Aug.24 453,869 32,027 230,096 64,961 17,672 1,985 55,979 10,389 8,074 6,471 1,584 18,732 Aug.31 430, 790 27,908 219,463 16,592 5,854 2,112 55,239 10,098 8,152 5,993 1,545 11,435 Sept.7 429,480 27,381 217,367 67,093 17,385 5,808 2,057 55,527 10,027 8,056 5,693 1,515 11,571 Sept.14 422,491 26,448 211,922 64,957 16,843 5,640 2,189 57,188 10,205 8,031 5,856 1,516 11,696 Secured by stocks and bonds (other than U. S. Government obligations)— Aug.24 2,038,346 140,552 11,056,142 159,811 133,624 15,870 8,843 322,449 87,351 14,714 25,796 9,626 63,568 Aug.31 2,044,412 139,949 1I,057,730 163,816 133,619 15,882 8,834 321,417 88,126 15, 310 26,007 9,544 64,178 Sept.7 2,037,133 139""1,040,302 169,606 133,173 15,748 8,609 329,072 13, 703 24,287 9,717 64,905 Sept.14 2,079,879 139; 572 1,096,777165,560 133,636 15,667 8,681 318,583 88,239 13,662 24,281 9,756 65,465 All other— Aug.24 5,137, 542 456, 8132,384,545 325,707 274, 390 65,389 51,826 742,106 187,322 110,344 131,548 51,623 355,929 Aug.31 5,159,791 455,699°, 406, 756317,432 273,772 65,487 52,821 740,177 187,446 110,554 130,978 52,125 366,544 Sept.7 5,158,581 456,544 , 399,313318,214 274,421 65,232 52,644 741,520 185,101 ] 11,485133,597 52, 347 368,163 Sept.14 5,183,476 462,674 , 394,234321,582 275,663 65,346 53,147 756,880 185,871 112,906 131,982 54,106 369,085 Total loans and discounts, including bills rediscounted with F.R. Bank: Aug.24 7,629,757 629,392 3,670,783550,479i 425,686 87,158 62,6541,120,534 285,062 133,132 163,815 62,833 438,229 Aug.31 7,634,993 623,556 3,683,949547,6471 423,983 87,223 63,767 11,116,833285,670 134,016 162,978 63,214 442,157 Sept.7 7,625,194 623,698 3,656,982554,913 424,979 63,310 11,126,119283,366 133,244 163,577 63,579 444,639 Sept.14 7,685,846 628,694 3,702,933552,099 426,142 86,653 64017i1,132,651284,315 134,599 162,119 65,378 446,246 U.S. bonds: Aug.24 442,313 10,722 265,996 34,757 8,578 4,404 17,118 12,205 4,564 10,896 8,470 57,364 Aug.31 443,561 10,520 265,918 34,689 8,569 7,246 4,404 17,557 12,157 4,545 11,663 8,478 57,815 Sept.7 445,256 10,946 267,675 34,650 9,331 7,245 4,404 17,179 12,110 4, 508 10,935 8,479 57,794 Sept.14 444,984 10,691 268,985 33,926, 9,407 7,243 4,403 17,895 12,136 4,476 8,456 57,767 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1246 FEDERAL, RESERVE BULLETIN. OCTOBER, 1921. PRINCIPAL RESOURCES AND LIABILITIES OF MEMBER BANKS IN LEADING CITIES ON WEDNESDAYS, FROM AUG. 24, TO SEPT. 14, 1921—Continued. MEMBER BANKS IN FEDERAL RESERVE BANK CITIES—Continued. [Amounts 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 - . la A n t t - a. Chicago. St. M ap in o n li e s - . K C an it s y a . s Dallas. F c S i r s a a c n n o - . U. S. Victory notes: Aug. 24 99,153 552 70,532 3,137 1,771 181 11,928 376 218 1,126 9,296 Aug. 31 98,257 558 71,842 3,126 1,770 106 10,971 394 218 853 Sept.7 96,053 567 70,393 2,858 1 754 106 11,155 367 218 579 8,020 Sept. 14 96,736 515 70,151 2,873 1,754 106 11,445 440 218 808 8,390 U. S. Treasury notes: Aug. 24 38,325 327 27,236 7,749 242 15 1,234 75 10 227 574 Aug. 31 37,147 512 27,372 6,941 232 2 1,219 25 10 26 234 574 Sept.7 35,761 319 27,166 6,200 232 8 1,207 17 10 26 2 574 Sept. 14 35,662 319 26,723 6,271 232 7 1,454 55 2 563 U. S. certificates of indebtedness: Aug. 24 116,376 1,638 71,900 14,790 778 200 761 9,440 1, 155 2,004 11,296 Aug. 31 107,822 1,219 69,365 11,859 843 151 762 9,200 764 130 1,686 1,313 10,530 Sept.7 90,435 1,230 59,416 8,814 775 151 762 7 652 676 136 591 1,089 9,143 Sept. 14 89.331 1,271 58,310 8,893 769 165 457 7,769 1,176 30 495 1,095 8,901 Other bonds, stocks, and securities: Aug. 24 1,106,811 63,705 545,493 124,076 71,51' 7,045 3,438 129,378 43,277 11,782 1,567 96,911 Aug. 31 1,101,805 64,100 536,570 122,763 71,467 6,990 3,437 132,424 43,690 8,680 11,799 1,558 98,327 Sept.7 1,104,592 64,679 541,023 122,448 70,529 6,93^ 3,487 132,937 43,969 8,9ir 11,761 1,484 96,429 Sept. 14 1,094,013 64,819 122,649 69,849 4,01' 3,479 131,129 43,208 11,833 1 493 95,136 Total loans and discounts and investments (including bills discounted with F. R. Bank): Aug. 24 9,432,735 706,336[, 651,947034,988 508,572 101,838 71,263 ,289,632 342,425 146,701 189,850 75,520 613,670 Aug. 31 9,423,585 700,465[, 655,017627,025 506,864 101,718 72,375.,288,204 342,700 147,599 189,005 74,828 617,786 Sept.7 9,397,291 701,439[, 622,657529,883 507,600 101,229 71,9681,296,249 340,505 147,031 187,469 74,664 616,599 Sept. 14 9,446,572 706,309[, 664,977026,711 508,153 98,191 72,361L, 302,343341,311 147,856 184,909 76,455 617,003 Reserve with F. R. Bank: Aug. 24 » 886,623 58,070 520,918 52,891 27,151 4,725 4,136 127,568 28,010 8,179 15,584 5,416 33,975 Aug. 31 898,028 57,718 535,010 53,298 25,874 4,862 4,245 127,844 27,916 10,097 15,061 4,738 31,365 Sept.7 909,158 57,34! 543,811 54,385 27,193 5,061 4,694 123,135 29,286 9,629 14,482 4,316 35,818 Sept. 14 60,519 518,668 54,481 29,019 5,087 5,.— 134,908 27,581 6,728 13,160 5,094 35,962 Cash in vault: Aug. 24 172,683 11.534 13,485 7,344 1,095 1, 30,899 3,268 2,197 1,403 8,292 Aug. 31 164,624 11,153 83,337 13,318 6,722 902 1,756 30,007 3,32! 1,896 2,836 1 312 8,064 Sept.7 174,844 11,715 88,142 12,869 7,298 952 1,705 32,201 3,84' 2,525 3,164 1,559 8,867 Sept. 14 175,84 1183 89,881 13,641 7,886 1,732 30,275 3,75: 2,141 3,055 1,542 9,138 Net demand deposits: Aug. 24 6,933,06C 548,20C3,947,586 524,856 203,43G 43,586 34,706 887,97! 195,272 79,001 143,31 49,244 275,886 Aug. 31 7,008,81( 542,03£4,007,827 527,722 211,78£ 42,762 33,726 901,76: 196,849 81,904 142,569 48,566 271,304 Sept.7 7,0Q9,17< 544,87 3,994,447 534,550 212,122 43,778 34,704 900,51C 195,146 82,209 145,658 47,877 273,304 Sept. 14 7,108,41! 558,08*4,043,910 534,370 212,81 42,721 35,708 929,663 197,966 81,679 141,251 49,273 280.970 Time deposits: Aug. 24 1,346,596 73,064 259,561 28,654 231,055 23,333 21,524 311,50' 83,85£ 27,382 15,030 6,896 264,738 Aug. 31 1,354,71£ 73,105 266,783 28,434 231,911 23,184 21,475 311,567 84,008 27,291 14,983 7,364 264,613 Sept.7 1,353,34! 74,768 269,100 28,858 228,961 23,254 21,565 310,53S 84,582 27,134 11,949 7,314 265,316 Sept. 14 1,359,015 75,701 272,772 29,745 227,638 23,110 21,424 312,285 84,61r 27,079 11,75! 7,345 265,545 Government deposits: Aug. 24 153,25< 12,006 83,043 19,280 2,362 601 601 15,436 4,33 1,851 3,881 3,543 6,325 Aug. 31 129,67 10,250 71,000 16,479 1,992 513 491 11,88 3,664 1,583 3,316 3,090 5,406 Sept.7 108,473 8,468 58,785 13,353 1,61 427 410 11,324 3,032 1,309 2,752 2 527 4,475 Sept. 14 102,888 8,468 58,785 13,348 1,61 427 410 5,81( 3,022 1,309 2,752 2,464 4,476 Bills payable with F. R. Bank: Secured by U. S. Government obligations— Aug. 24 142,367 5,140 73,373 24,056 2,700 5,559 605 8,71( 6,782 742 2,154 200 12,340 Aug. 31 147,285 9,526 72,008 25,599 798 6,482 580 8,59] 7 18C 702 2,324 13,495 Sept.7 145,485 6,638 70,858 24,941 6,632 580 7,758 8,49( 763 2,302 15,698 Sept.14 114,719 6,73' 51,491 23,360 6,317 580 3,63c 816S 454 3,175 10,803 All other— Aug. 24 Aug. 31 Sept.7 Sept. 14 1,895 1,801 Bills rediscounted with F. R. Bank: Secured by U. S. Government obligations— Aug. 24 54,860 ,7 14,360 19,38£ 2,r 152 39S 1,674 Aug. 31 48,552 6,38i 13,494 18,388 2,12: 303 4,59( 527 492 535 1,709 Sept.7 46,460 5,49 13,221 17,953 2,53! 298 3,72 64 43C 454 1,705 Sept. 14... 42,710 5,36 11,281 17,358 2,01; 3,24' 603 421 501 1,608 All other— Aug. 24 402,804 30,378 158,819 23,200 55,53 9,905 2,47S 44,096 13,235 22,878 14,628 3,355 24,301 Aug. 31 394,632 33,404 156,208 21,904 49,920 9,814 4 72C 37,95 14,097 22,234 13,996 4,070 26,313 Sept.7 420,458 37,186 172,471 20,215 53,993 9,796 4,053 43,53 14,543 21,034 13,071 25,574 Sept. 14 378,727 33,037 143,228 22,93C 64,884 9,528 4836 31,326 13,462 20,014 14,024 6,539 24,917 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

OCTOBER, 1921. FEDERAL RESERVE BULLETIN. 1247 BANK DEBITS, Yolume of business, as measured by debits Angeles the figures indicate a lag of only about to individual accounts reported to the Federal 4 per cent. Keserve Board for banks in 155 leading clearing house centers, shows a decided increase for the two weeks ending September 21 as compared [DEE3ITS 1rO INDIVIDUAL ACC<DUNTi with the immediately preceding two-week AT BANKS IN RE:PORTING, CLEARING HOUSE CENTERS period. From a total not much above $6,000,- 000,000 for each of the two weeks ending DEBITSFOR 1920 - DEBTS FOR 1921 August 31 and September 7, debits increased MILLIONS MILLIONS to over $7,000,000,000 for the week ending OF 14 DO O LL F ARS September 14 and to $8,304,000,000 for the DOLLARS >vk * A ft t - 1OOOO l w ar e g e e k a e m n o d u in n g t o S f e p in te c m om be e r ta 2 x 1 , c h d e u c r k in s g w a w s h d ic ra h w a n 1 9 O O O O O O O « . \ v A \ V A, V \ V til u 1 >\ 9OOO 8OOO and cleared. 8OOO Si I A V 7OOO As compared with the corresponding period 7OOO V V \ J 6OOO in 1920, the volume of debits for the four weeks 6OOO A 5OOO u 1 n 8 d e p r er re v c i e e n w t . re T pr h e e s en la te g d b a e h d i e n c d l in l e a s o t f y a e b a o r u 's t 5OOO \\ vv ./s A i \J \ / 1 \ AOOO AOOO figures varied materially for the dinerent 3OOO 3OOO centers—for New York City it was only 12 2OOO per cent, while for many of the industrial 2OOO iAND 2 BANKS IN NEW YORK CITY 1OOO centers it was considerably above the average. 1OOO 3 AND 4= BANKS IN ALL REPORTIN3 CENTERs — O —• Thus the figures for Chicago were 22 per cent —MI LLOIO N—S MILLIONS below the corresponding figures a year ago; DOL O L F ARS OF for Detroit they were 25 per cent below last AOOO >v\' *~\A- " V•VS. V * DOLLARS year's level; for Boston 29 per cent; and for 3OOO *\ v\ *-\ I AOOO Cleveland 38 per cent. Of the two leading 3OOO 2OOO centers on the Pacific coast, San Francisco 1OOO BANKS CUTS1DE OF NEW YC)RKC;ITY 2OOO reports debits 23 per cent lower than for the I I 1OOO corresponding period in 1920, while for Los MONTH JAN. FEB. MAR. APR. MAY JUNE JULY AUG. SEPT. OCT. NOV. DEC. MONTH DEBITS TO INDIVIDUAL ACCOUNTS AT CLEARING HOUSE BANKS. SUMMARY BY FEDERAL RESERVE DISTRICTS. [In thousands of dollars.] 1921 1920 Number of Federal Reserve district. centers Week ending— Week endingincluded. Aug. 31. Sept. 7. Sept. 14. Sept. 21. Sept. 1. Sept. 8. Sept. 15. Sept. 22, Boston.. 283,447 283,694 319,097 370,685 413,272 357,860 467,293 479,629 New York.... 3,258,885 3,094,476 3,687,786 4,388,704 4,290,456 3,387,538 4,290,125 4,568,196 Philadelphia.. 302,715 298,656 345,825 397,013 430,147 346,096 409,929 427,668 Cleveland 324,727 298, 767 368,780 434,100 500,256 419,310 559,043 559,883 Richmond 166,067 179,496 189.367 213,530 197,696 190,160 217,230 223,590 Atlanta 151,091 159,821 192,830 198,078 228,932 212,358 237,232 243,405 Chicago 814,003 766,530 887,003 1,023,856 ' 1,054,901 964,484 1,243,970 1,291,981 St. Louis 147,628 145,991 174,955 200,832 209,706 199,109 237,622 233,604 Minneapolis... 123,868 135,460 155.368 163,085 160,155 149,148 200,135 221,568 Kansas City... 212,144 223,354 250,702 251,088 305,540 285,547 334,054 342,721 Dallas 97,797 110,255 116,419 134,365 146,935 138,621 151,264 166,235 San Francisco. 403,806 400,357 448,191 529,546 482,763 491,086 592,401 Total... 155 6,286,178 6,096,857 7,136,323 8,420,759 7,141,317 8,940,298 9,342,179 NOTE.—Figures for the following centers, while shown in the body of the statement, are not included in the summary, complete data for the centers not being available for each week under review: Harrisburg, Pa.; Johnstown, Pa.; Reading, Pa.; Cincinnati, Ohio; Greenville, S. C; Wilmington, N. C; Springfield, 111.; East St. Louis and National Stock Yards, 111.; Quincy, 111.; Springfield, Mo.; Atchison, Kans.; and Galveston, Tex. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1248 FEDERAL RESERVE BULLETIN. OCTOBER, 1921. DEBITS TO INDIVIDUAL ACCOUNTS AT CLEARING HOUSE BANKS—Continued. DATA FOR EACH REPORTING CENTER. [In thousands of dollars.] 1921 1920 Week ending— Week ending- Aug. 31. Sept. 7. Sept. 14. Sept. 21. Sept. 1. Sept. 8. Sept. 15. Sept. 22. District No. 1—Boston: Bangor 2,819 3,037 3,258 3,315 3,938 2,988 3,901 4,193 Boston U76,910 U77,253 U87,201 1226,839 263,473 226,407 291,387 304,491 Do 232,112 231,667 256,743 303,431 FaU River 4,739 6,388 7,511 5,835 5,269 8,100 8,490 M H H L N N Po o e e o a a w r w w r l n t y t l e c f o a B H l h o l k n e e r a e d s d d v t f . e e . o r . n r . d 1 1 2 3 3 4 6 3 , , , , , , 6 3 3 1 5 3 5 4 7 6 9 9 6 5 7 9 1 1 1 1 3 3 2 6 4 5 4 , , , , , , , 5 4 6 2 8 8 2 1 0 1 8 9 5 1 4 0 0 9 6 4 6 I . 2 1 2 4 4 6 7 2 4 , , , , , , , 7 2 6 5 0 8 7 5 4 0 4 7 8 6 4 4 3 8 1 1 8 2 1 3 5 5 7 7 1 7 , , , , , , , 1 1 1 0 2 2 5 5 9 4 3 3 9 7 4 8 7 2 8 4 5 1 1 3 4 5 9 6 9 9 , , , , , , , 8 7 9 0 2 6 3 5 4 0 4 7 0 1 1 3 8 6 4 4 7 2 1 3 4 0 4 5 8 7 , , , , , , , 3 6 3 2 7 7 4 3 8 6 9 6 0 0 9 2 6 2 8 8 8 2 1 3 5 8 9 9 4 9 , , , , , , , 1 9 7 7 9 9 2 1 0 4 5 7 7 0 3 9 4 2 4 9 4 2 1 4 4 5 4 8 8 9 , , , , , , , 8 1 7 9 6 9 2 8 0 8 1 2 8 4 9 1 5 0 8 0 6 Providence 24:229 22,990 27,859 32,830 32,232 27,516 36,945 39,499 W W Sp o a ri t r n e c g e rb f s i t u e e l r r d y 1 1 2 0 1 , , , 7 5 2 9 8 0 0 0 2 1 1 4 0 0 , , , 0 6 1 7 5 6 3 8 5 1 1 5 4 2 , , , 1 2 1 1 3 8 2 0 0 1 1 6 4 2 , , , 2 4 9 3 2 0 1 1 0 1 1 7 7 4 , , , 1 8 0 3 4 7 5 4 2 1 1 6 1 2 , , , 7 3 9 9 5 6 8 2 7 1 1 9 6 9 , , , 2 6 4 0 2 5 1 9 5 2 1 8 0 7 , , ,7 5 0 6 7 7 6 7 4 District No. 2—New York: R A B B P S N a y u o i e l n s b r f c w a f s g a h a a c h n e l Y u i o y a s c s o t m e e r r k ton 3,1 2 4 4 2 1 3 4 7 7 4 3 0 , , , , , , , 1 1 1 1 0 1 0 0 6 9 9 4 7 0 1 9 9 5 5 4 2 2, • 9 8 4 2 1 1 9 3 4 4 4 0 7 , , , , , , , 7 7 0 0 7 7 2 8 6 6 8 7 2 7 0 2 6 8 7 8 5 3,5 2 5 7 1 1 3 6 5 3 2 1 5 , , , , , , , 7 0 2 6 4 1 4 5 8 9 5 5 1 3 1 1 2 8 2 8 4 4,2 3 2 5 5 1 0 3 3 5 8 3 3 , , , , , , , 3 7 5 9 0 2 8 6 2 8 4 4 3 0 1 9 5 3 6 3 7 4,1 3 2 6 1 4 0 5 3 8 4 7 1 , , , , , , , 1 3 7 2 5 0 4 1 2 0 9 6 3 2 3 6 0 8 7 0 2 3,2 2 5 6 1 1 4 9 3 7 3 0 9 , , , , , , , 0 0 6 6 5 5 1 0 6 4 2 3 5 0 6 3 8 5 4 5 7 4,1 3 2 7 1 3 4 4 5 1 8 0 5 , , , , , , , 9 3 2 7 5 0 3 1 1 7 3 1 2 5 6 1 3 5 0 2 8 4,4 3 2 7 1 0 3 6 4 2 9 3 7 , , , , , , , 4 7 8 7 4 9 0 3 6 8 0 9 0 0 0 4 8 8 5 7 4 District No. 3—Philadelphia: H A Ch a lt e r o r s o i t s e n b r a urg 2 3 5 , , , 7 9 1 6 4 2 4 0 7 . 2 5 3 , , , 1 8 5 1 8 0 0 5 9 3 6, , 0 3 7 04 0 2 4 6 , , , 4 0 7 6 7 4 1 5 2 3 5 , , 1 1 5 2 1 2 2 4 , ,3 8 1 2 0 0 3 6 , , 8 3 0 7 0 2 3 6, , 0 1 5 00 3 Johnstown 4,332 4,076 4,697 4,562 R L Ph a e n i a l d c a a i d n s e t g l e p r hia 25 3 5 2 , , , 4 1 0 5 0 8 3 8 1 24 3 5 9 , , , 4 2 8 1 2 3 0 8 2 28 4 1 , , 4 3 9 63 1 33 6 4 4 , , , 4 8 65 8 9 5 0 4 37 4 1 , ,5 6 6 6 8 0 28 4 9 , , 9 1 4 42 5 337 5 , , 5 8 5 9 2 0 35 6 4 , ,1 3 3 6 8 7 S T W W Y W c r o i i i r e l r l l a k m l n k n i e a t i t s o m n o - n g n B s . t p . a o = o r n r r e t 1 9 3 3 7 5 2 , , , , , , 3 2 2 1 9 3 5 7 7 3 3 1 7 7 9 1 5 1 1 9 3 5 2 7 1 , , , , , , 4 4 9 1 5 2 7 5 0 0 1 7 4 4 2 6 1 3 1 1 9 3 6 3 3 6 , , , , , , 0 2 8 8 2 9 3 9 8 2 9 6 5 6 8 4 4 5 1 1 6 8 4 4 4 2 , , , , , , 9 6 2 7 0 3 3 0 3 7 0 8 1 6 8 0 0 7 1 1 3 8 6 3 1 1 , , , , , , 2 7 2 8 5 9 4 1 9 6 6 6 1 9 5 0 6 5 1 1 3 6 3 7 3 0 , , , , , , 7 5 1 5 6 2 7 4 4 4 3 3 3 9 0 7 8 2 1 1 9 4 5 7 5 4 , , , , , , 9 2 2 6 0 1 2 8 0 8 7 3 6 6 9 4 8 2 1 1 4 9 5 8 4 6 , , , , , , 5 2 0 0 6 5 1 0 9 6 0 2 1 6 3 5 8 7 District No. 4—Cleveland: C A i k n r c o i n nnati 4 1 8 0 , ,7 4 5 9 1 0 4 1 6 5 , , 4 18 5 3 5 5 1 9 1 , ,7 0 7 1 3 9 6 1 7 2 , , 7 7 1 8 9 5 20,700 21,119 22,349 23,430 C C D L E P G T W Y O Sp i e o l o r a r o i t e h i r x e l l l y t u e v i e u C e s e i n t n d e n m e b n o i g g l o l g t s u n a f i b y s b t n i n r o t u e u g g o d l n s r h d w g n 1 1 2 2 1 2 0 4 3 2 6 1 3 8 4 1 4 0 1 , , , , , , , , , , , , 9 8 0 3 7 5 2 9 9 5 5 2 4 8 1 6 9 3 4 5 2 4 0 6 9 3 5 2 6 3 3 4 8 4 9 0 1 9 2 2 1 0 3 3 9 5 3 4 2 1 0 5 1 0 , , , , , , , , , , , , 6 8 4 1 4 3 8 7 9 9 4 8 4 4 9 1 8 5 0 2 3 5 3 0 9 2 0 6 2 4 7 0 3 1 8 2 1 1 2 3 1 1 1 3 7 6 4 3 5 0 2 3 5 3 2 1 , , , , , , , , , , , , 4 7 4 6 3 4 0 8 0 8 2 8 4 2 2 2 7 7 6 6 7 0 9 4 1 1 1 6 8 4 3 3 5 0 7 8 1 1 3 1 2 2 8 1 6 3 3 5 3 3 6 5 3 0 8 1 , , , , , , , , , , , , 1 3 7 2 4 9 4 5 8 0 0 3 0 8 7 8 3 7 8 4 8 5 3 5 6 3 1 3 4 6 6 5 4 8 6 3 1 1 2 3 1 7 1 1 8 7 7 4 2 3 0 7 2 1 5 0 5 , , , , , , , , , , , , 8 9 5 1 1 4 7 6 3 0 6 9 4 0 8 7 2 8 5 6 8 5 7 2 1 1 1 3 2 0 4 7 5 0 5 7 1 1 2 2 5 1 1 4 3 4 4 3 3 7 7 4 0 3 1 5 , , , , , , , , , , , , 6 3 1 9 1 1 2 0 4 5 2 2 4 1 6 6 2 2 0 6 9 9 5 4 9 1 1 1 3 0 7 8 4 7 8 2 2 1 3 3 1 8 1 1 8 4 3 9 2 3 7 4 2 9 1 8 , , , , , , , , , , , , 6 3 8 5 7 9 9 2 7 4 0 2 7 1 0 2 5 2 5 0 8 5 8 1 1 3 1 5 3 9 3 6 7 4 4 8 1 2 3 9 3 1 1 1 4 9 6 3 3 9 0 4 0 8 4 1 , , , , , , , , , , , , 7 0 2 2 2 4 9 3 1 8 8 3 1 4 3 1 5 4 7 7 5 6 3 3 9 9 3 3 5 6 9 2 0 2 8 7 District No. 5—Richmond: B C C C G o h h a re l l a a u t e r r i m l n l m e o v s b t o i t t i l r o e a l e e n , S. C 8 5 4 3 2 6 , , , , , 9 5 2 5 2 8 1 4 2 5 4 0 8 3 5 9 6 4 3 2 4 , , , , , 0 6 9 6 1 9 1 4 9 0 0 4 1 5 5 9 5 3 5 4 4 , , , , , 3 9 3 6 1 8 9 9 9 4 4 0 7 3 5 10 6 4 5 4 9 , , , , , 9 8 3 1 3 6 7 6 6 5 1 8 9 5 0 9 6 5 4 8 , , , , 8 8 7 3 7 1 7 1 7 8 4 5 9 4 6 4 7 , , , , 9 0 3 5 0 1 9 1 0 0 9 4 10 5 8 5 6 , , , , 5 4 3 1 2 6 0 2 5 7 6 7 11 6 8 6 2 , , , , 1 7 3 2 3 3 0 5 1 2 0 0 H W R W N R a i u o i a c l r l n e s h f m t o i h m g i l i i n k n h n o g g g n t t t d o o o n n n 2 1 1 3 4 7 4 1 9 , , , , , ,0 1 8 6 1 0 4 7 2 0 9 6 8 9 9 9 0 0 2 2 1 3 3 4 2 9 0 , , , , , , 5 0 7 7 9 7 6 1 0 5 9 2 6 6 9 0 8 3 3 2 1 3 5 4 4 4 1 , , , , , ,5 4 1 8 6 7 0 0 3 9 3 5 8 9 6 9 0 0 2 3 1 4 6 5 8 5 3 , , , , , , 7 1 0 0 0 2 9 2 5 9 0 4 1 3 7 0 4 4 2 2 1 4 9 5 3 7 , , , , , 7 9 9 7 4 4 9 9 0 7 7 5 6 4 0 2 2 1 3 2 4 9 7 , , , , , 9 1 7 4 0 7 5 2 3 4 9 0 3 9 6 2 3 1 6 5 6 4 9 , , , , , 1 3 5 6 2 8 0 0 1 0 9 3 2 1 0 2 3 1 6 6 4 5 8 , , , , , 2 1 3 1 3 5 0 0 2 8 9 3 0 7 8 District No. 6—Atlanta: M A A J B V K M M C T N N P S a e a a i h u i e n t a c a o o r c n l v m a w s g o c k m a n b k s a h t o u x s n t t a i p s n i v g o a n O l v s c b t n a e n n i o n a t i o u g l r a . l a o m v l . l l l r h e . h e a o e i g e a l a g l r m n e a y s J 1 2 5 3 4 8 8 5 4 5 4 3 1 1 9 2 0 , , , , , , , , , , , , , , 1 5 1 2 1 9 0 8 0 0 6 8 2 3 5 4 1 9 0 2 1 0 7 0 6 4 2 7 2 6 2 7 6 7 6 9 0 8 5 8 3 3 2 5 1 1 9 4 5 6 5 4 3 1 8 5 1 1 0 9 2 , , , , , , , , , , , , , , , 0 6 2 7 2 4 4 0 5 3 4 8 7 8 1 5 8 5 1 4 1 3 4 3 6 4 8 6 2 7 0 4 9 0 2 1 3 2 2 8 0 8 2 5 5 6 2 2 1 1 6 3 4 6 8 9 3 3 5 1 2 1 8 5 1 , , , , , , , , , , , , , , , 1 7 6 6 0 9 3 8 6 1 4 3 4 5 8 2 7 9 4 1 6 3 0 8 6 2 7 2 9 2 0 0 6 0 5 0 4 4 8 5 4 5 1 2 6 6 2 2 1 1 6 4 4 8 8 6 4 1 7 7 1 1 3 6 4 , , , , , , , , , , , , , , , 5 5 8 0 5 7 3 2 8 7 4 5 7 7 2 3 1 8 0 6 2 3 0 9 5 1 1 4 1 7 5 5 7 1 4 2 2 0 5 9 5 7 7 7 2 2 2 8 1 1 1 1 2 6 5 5 1 2 7 8 4 5 3 6 2 0 6 , , , , , , , , , , , , , , , 2 1 1 4 0 6 9 3 0 6 8 9 2 4 7 9 5 8 0 8 7 4 1 1 1 6 8 2 5 0 1 3 6 5 9 5 9 7 7 5 7 9 0 2 7 2 2 1 1 1 1 7 1 6 6 5 2 5 3 1 3 2 0 1 5 2 0 4 , , , , , , , , , , , , , , , 6 5 0 4 9 6 2 4 5 7 0 4 5 2 8 8 7 0 1 5 4 3 4 3 0 9 1 2 8 3 1 9 6 5 2 9 6 3 5 8 3 9 0 5 7 2 2 7 1 1 1 1 6 6 2 7 8 1 9 7 6 7 4 2 4 2 7 , , , , , , , , , , , , , , , 7 5 5 8 6 4 3 6 2 8 3 8 8 6 7 4 0 6 0 6 2 4 1 5 5 2 1 7 5 9 1 6 1 3 1 5 6 9 8 7 2 4 0 2 7 3 2 7 1 1 1 1 2 5 8 1 2 8 4 8 4 7 5 8 8 4 1 , , , , , , , , , , , , , , , 9 6 5 1 9 6 1 2 2 6 2 6 4 9 8 4 2 9 8 0 3 7 9 2 7 1 2 5 9 4 6 9 7 6 8 9 7 9 7 3 5 4 2 3 0 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

OCTOBER, 1921. FEDERAL RESERVE BULLETIN. 1249 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- Aug. 31. Sept. 7. Sept. 14. Sept. 21. Sept. 1. Sept. 8. Sept. 15. Sept. 22. District No. 7—Chicago: Bay City 2,370 2,902 2,391 2,676 2,953 3,155 3,526 4,448 Bloomington 2,115 2,134 2,410 2,309 3,019 2,663 3,383 2,916 Cedar Rapids 8,329 8,069 10,978 8,657 10,112 11,088 11,679 11,370 Chicago 536,840 494,768 571,735 649,923 685,164 596,988 807,552 798,136 Davenport 5,110 5,948 6,890 6,756 7,281 8,019 8,540 9,431 Decatur 2,910 2,911 3,485 3,181 4,259 4,083 4,748 4,672 Des Moines 13,064 [13,326 17,385 14,763 18,865 16,307 20,384 20,979 Detroit 100,756 95,631 108,811 153,517 104,058 146,831 150,347 209,023 Dubuque 2,137 2,368 2,657 3,240 3,127 3,238 3,971 4,234 Flint 4,711 5,718 5,810 6,077 10,481 10,278 10,925 Fort Wayne 5,508 5,632 6,758 6,683 6,999 6,442 8,990 8,659 Grand Rapids 16,059 19,337 19,677 20,470 20,466 21,080 23,223 22,326 Indianapolis 34,598 24,881 31,781 34,705 59,451 32,752 41,437 41,725 Jackson 3,103 2,990 3,334 3,809 5,236 4,121 5,366 6,914 Kalamazoo 3,308 3,269 3,756 5,333 5,478 5,016 6,470 5,870 Lansing 4,595 4,141 4,712 5,603 6,042 6,102 5,954 6,846 Milwwaukee 44,062 43,981 53,980 64,811 60,274 47,080 80,145 77,205 Moline 1,276 1,559 1,832 2,034 2,828 2,961 2,537 4,564 Peoria 6,632 7,093 7,839 8,410 9,922 9,729 11,040 10,455 Rockfor d 3,538 3,720 4,348 4,482 5,962 5,605 6,660 6,433 Sioux City 5,879 7,209 7,764 7,500 14,223 13,345 18,089 16,122 South Bend 4,881 6,355 6,153 6,109 5,131' 5,120 4,993 4,900 Springfield, IU 4,872 4,882 5,422 5,996 Waterloo 2,222 2,588 2,517 2,808 3,570 3,770 4,658 District No. 8—St. Louis: East St. Louis and National Stock Yards. 7,021 8,064 7,910 7,710 Evansville 4,362 4,766 5,365 4,760 4,799 5,410 5,342 Little Rock 8,424 11,342 11,958 7,720 11,345 9,605 9,645 Louisville , 118,152 18,142 21,332 27,197 23,554 30,468 30, 731 Do 23,512 23,423 27,574 29,651 Memphis..: 19,299 20,231 22,176 24,863 30,286 30,171 33,240 29,789 Quincy 1,669 1,817 2,208 2,230 St. Louis , 197,417 95,023 115,339 135,214 * 139*743" '129*240 "158*899 *158*097 Do 107,656 105, 599 129, 847 149,207 Springfield, Mo 2,177 2,650 2,818 2,905 District No. 9—Minneapolis: Aberdeen 1,234 1,438 1,400 1,379 1,849 2,352 2,171 2,183 Billings 1,232 1,629 1,548 1,718 2,031 1,941 2,301 2,295 Duluth 18,077 25,047 29,490 28,310 20,482 21,325 37,249 37, 409 Fareo 2,459 2,574 2,781 3,046 3,499 3,498 4,068 4,319 Grand Forks 1,071 1,258 1,523 1,466 1,508 1,503 2,136 1,912 Great Falls 1,635 1,798 1,866 1,932 2,341 2,508 2,299 3,143 Helena 2,358 2,331 2,285 2,887 2,305 2,246 2,702 2,975 Minneapolis 67,014 69,424 82,120 81,900 78,234 104,232 114,038 St. Paul 22,830 24,388 25,920 33,189 34,447 28,611 33,504 43,142 Sioux Falls 3,355 3,450 3,376 3,935 4,993 4,883 5,955 6,598 Superior 1,829 1,208 2,158 2,202 1,841 958 2,102 2,015 Winona 774 915 901 1,121 974 1,089 1,416 1,539 District No. 10—Kansas City: Atchison 1,222 1,475 1,157 Bartlesville 1,533 1,389 1,830 1,954 3,404 2,803 3,671 3,115 Cheyenne 2,514 2,007 1,716 1,716 2,001 1,822 2,149 1,987 Colorado Springs 2,266 2,678 2,842 2,898 3,204 3,208 4,250 3,597 Denver 29,627 29,927 32,070 34,883 43,676 44,272 47,326 51,647 Joplin 1,571 1,771 2,251 2,025 2,940 3,489 4,359 3,943 Kansas City, Kans 2,891 3,262 3,685 3,709 3,634 3,154 4,386 4,196 Kansas City, Mo 67,805 76,619 82,427 85,041 89,495 85,060 106,317 102,949 Muskogee 2,765 2,582 3,323 3,504 3,965 4,067 4,857 5,766 Oklahoma City 17,071 20,890 24,305 19,754 29,269 21,610 33,421 28,136 Omaha 38,540 38,130 43,715 43,100 53,598 54,474 63,903 64, 596 Pueblo 4,273 3,183 4,322 3,836 3,405 4,241 3,913 3,794 St. Joseph 14,341 15,449 16,537 16,965 15,935 15,931 19, 981 18,625 Topeka 2,717 2,717 4,514 3,797 3,827 3,660 5,183 3,813 Tulsa 14,840 11,118 15,213 17,208 31,244 22,636 13,346 30,119 Wichita 9,390 11,632 11,952 10,698 15,943 15,120 10, 992 16, 438 District No. 11—Dallas: Albuquerque 1,329 1,715 1,605 1,1 1,402 1,615 1,767 2,086 Austin 2,293 3,130 3,191 3,554 3,057 2,621 4,448 4,924 Beaumont 4,424 2,945 j 2,907 3,382 4,522 4,404 4,208 5,451 Dallas 25,542 30,279 32,309 39,559 36,714 36,982 40,707 48,326 El Paso 5,919 5,671 7,291 6,595 8,304 8,449 8,801 8,849 Fort Worth 20,250 23,180 24,220 23,920 26,002 26,981 26,548 27,422 Galveston 21,389 18,946 25,743 25,243 Houston 21,640 25,539 24,692 32,048 46,566 35,831 38,815 42,954 San Antonio 6,403 6,161 6,445 6,928 7,644 7,990 10,240 I 9,540 Shreveport 4,544 4,979 6,860 8,249 5,708 6,529 7,210 7,351 Texarkana, Tex 1,341 1,181 1,537 2,217 1,882 1,511 2,225 1,833 Tucson 1,302 1,525 1,447 1,400 1,526 1,463 1,469 1,612 Waco 2,810 3,950 3,915 4,814 3,608 4,245 4,&r~ 5,887 1 Debits of banks which submitted reports in 1920. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1250 FEDERAL RESERVE BULLETIN. OCTOBER, 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— Aug. 31. Sept. 7. Sept. 14, Sept. 21. Sept. 1. Sept. 8. Sept. 15. Sept. 22. District No. 12—San Francisco: Berkeley 2,606 3,545 2,168 3,213 2,079 3,247 3,296 3,257 Boise , 1,886 2,310 3,003 2,749 2,813 2,741 3,077 3,463 Fresno 8,253 8,900 12,038 13,100 8,392 10,326 15,783 12,841 Long Beach , 4,845 5,159 5,443 5,606 4,271 4,384 6,434 5,713 Los Angeles , 87,555 79,723 93,590 108,349 88,782 84,515 101,524 108,188 0 akland 16,427 19,081 17,083 17,301 ! 20,943 21,617 20,979 22,373 Ogden 2,686 2,863 1,644 3,431 ! 4,033 4,164 5,000 4,836 Pasadena 3,810 3,802 4,832 5,242 I 3,865 4,548 5,584 5,075 Portland 33,726 34,911 40,235 44,372 I 41,726 37,355 48,300 53,764 Reno 2,368 1,958 2,716 2,642 I 2,908 2,463 3,523 3,027 Sacramento 6,699 13,120 13,107 15,317 14,801 14,142 19,922 17;160 Salt Lake City 11,833 14,135 13,108 15,233 ! 15,823 15,172 19,288 18,732 San Diego 6,212 6,332 8,262 7,837 ! 7,075 8,561 8,876 7,623 San Francisco 159,058 145,685 161,412 205,881 189,743 209,652 237,254 236,783 San Jo«e 4,559 4,543 4,851 4,978 5,564 5,316 7,049 6,827 Seattle 28,585 29,715 34,031 43,090 i 42,214 34,511 49,953 38,730 Spokane 9,311 10,150 12,866 12,449 11,499 12,030 14,080 14,280 Stockton 4,124 4,282 5,253 5,151 4,916 4,359 6,551 6,041 Tacoma 7,202 7,794 9,475 10,458 8,718 9,187 12,414 11,869 Yakima 2,061 2,349 3,074 3,147 2,598 2,796 3,514 3,117 GOLD SETTLEMENT FUND. INTERBANK TRANSACTIONS FROM AUG. 26 TO SEPT. 22, 1921, INCLUSIVE. [In thousands of dollars.] Changes in ownership Transfers. Daily settlements. of gold through trans- Balance in fers and settlements. bank's Federal Reserve Bank. fund at end of period. Debits. Credits. Debits. Credits. Decrease. Increase. Boston 45,500 32,283 335,825 356,333 7,291 43,809 New York 103,500 276,631 1,361,167 1,226,893 38,857 95,692 Philadelphia | 20,000 447,180 468,793 1,613 50,022 Cleveland. 39,588 6,839 348,012 368,962 11,799 47,911 Richmond 96,222 90,000 391,488 397,762 52 17,885 Atlanta 10,173 14,588 141,649 137,822 588 7,920 Chicago I 60,000 634,566 673,253 21,313 58,143 St. Louis 5,000 320,070 319,433 5,637 12,425 Minneapolis 27,409 13,500 102,360 120,983 4,714 11,917 Kansas City 15,000 279,862 281,459 13,403 29,080 Dallas 32,949 * 28," 500" 162,814 168,395 7,542 San Francisco 7,000 168,130 173,035 "2*095' 33,171 Total 4 weeks ending- Sept. 22,1921 462,341 462,341 4,693,123 4,693,123 54,247 54,247 415,517 Aug. 25,1921 314,263 314,263 4,624,289 4,624,289 429,075 Sept. 23,1920 897,585 897,585 6,600,694 6,600,694 340,325 Aug. 26, 1920 549,852 549,852 6,332,881 6,332,881 369,021 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

OCTOBER, 1921. FEDERAL RESERVE BULLETIN. 1251 FEDERAL RESERVE CLEARING SYSTEM. OPERATIONS FROM AUGUST 16 TO SEPTEMBER 15, 1921. [All figures shown in thousands.] Items drawn on banks located Federal o R r e b se ra rv n e c h B . ank I o n r b F r . a R n i c . n h B o c a w i n t n k y . dis O t b r u i r c a B ts t n . a i c d n h e k c F o i . r t y R . . I o t n e o m T f s r e U d a . r s S a u w . re n r h s a i T v n o e d c t l a e a o l d t f i i o t d e e n x u m . c p l s l u i- - t I R e h t d e e . m i B t r o s a b o n r f a o t k h n r s w e c r a h a n r F e d d s . - . b It r e e a b d m n a d t c s n o i h s k t p f r i o o a n i r c r r w s t e t . a n a o m r t d e - c h l T u a o d n c t i a d a n t l l g i e o i d t d n e , u s m i . p n s l - i- Num- Num- Num- Num- Num- Num- Number. Amount. ber. Amount ber. Amount. ber. Amount. ber. Amount. ber. Amount. ber. Amount. Boston $480,900 3,094 133 $17,150 3,895 $846,312 160 $46,942 4,055 $893,254 New York 1,370 1,403,054 4,277 960,791 1,002 101,621 6,649 2,465,466 897 446,333 16 $5,531 7,562 2,917,330 Buffalo 162 75,636 395 48,341 8 1,767 565 125,744 153 25,032 17,815 756 168,591 Philadelphia 1,593 658,772 1 « 225,691 1291 23,752 3,703 908,215 *657 131,830 4,360 1,040,045 Cleveland 366 176,663 1,172 136,933 68 9,609 1,606 323,205 36 26 7,757 1,668 339,325 Cincinnati 188 109,883 750 67,538 52j 6,177 1998 1184,808 10 5,168 11 3,684 1,019 193,660 Pittsburgh 366 196,881 748 84,130 29 4,938 1,143 285,949 62 35,109 29 5,228 1,234 326,286 Richmond 105 101,020 1,723 230,789 45! 6,450 1,873 338,259 144 59,251 37 13,504 2,054 411,014 Baltimore 226 136,202 626 67,193 53! 8,388 905 211,783 50 24,005 73 7,296 1,028 243,084 Atlanta 112 48.014 311 41,159 3 4,591 450 93,764 20 9,583 22 3,726 492 107,073 Birmingham 30,067 126 6,436 984 445 37,487 15 7,946 26 18,470 486 63,903 Jacksonville 37 14,566 126 14,331 962 171 29,859 16 4,611 3 805 190 35,275 Nashville 53 24,614 178 17,837 12 1, 243 43,719 17 4,016 7 1,473 267 49,208 New Orleans 63 37,830 99 11,984 36 11,793 198 61,607 37 11,806 5 732 240 74,145 Chicago 778 531,509 3,579 309,611 254 42,057 4,611 883,177 260 28,067 7 3,079 4,878 914,323 Detroit 220 141,911 464 45,262 34 3,890 718 191,063 9 3,198 5 1,000 732 195,261 St. Louis 233 185,545 1,333 80,866 85 9,145 1,651 275,556 41 6,615 11 1,094 1,703 283,265 Little Rock 42 19,331 243 14,640 1,066 291 35,036 9 806 25 1,964 325 37,806 Louisville 87 50,569 374 21,262 2,653 483 74,484 10 1 ' 2 235 495 76,208 Memphis 64 21,801 142 7, ' 1,077 215 30,741 1 219 2 230 218 31,190 Minneapolis 247 115,347 1,385 77,497 3,947 1,665 196,791 87 18,615 4 329 1,756 215,735 Helena 18 8,975 182 12,317 637 205 21,929 5 1,905 3 1,650 213 25,484 Kansas City 314 276,548 1,538 107,119 7,467 1,907 391,134 273 39,719 75 15,785 2,255 446,638 Denver 124 44,223 345 20,596 5,189 491 70,008 84 15,280 51 14,187 99,475 Oklahoma City. 63 54.015 895 67,075 1,449 968 122,539 43 7,843 15 7,060 1,1 137,442 Omaha 93 47,699 531 34,008 2,260 1643 184,365 42 5,254 20 5,269 705 94,888 Dallas 140 50,629 1,508 166,093 3,748 1,675 220,4701 64 11,546 65 4,450 1,804. 236,466 El Paso 37 8,341 116 8,349 1,583 168 18,273| 9 1,457 5 515 182 20,245 Houston 67 34,256 296 33,095 1,926 392 69,277 15 2,188 4 1,672 411 73,137 San Francisco 218 99,294 438 35,597 90,811 730 225,702 24 3,575 44 5,013 798 234,290 Los Angeles 310 91,740 876 67,186 12,514 1,225 177,440 79 10,088 49 13,255 1,353 200,783 Portland 55 31,056 208 12,018 5,229 283 48,303 4 1,776 33 4,269 320 54,348 Salt Lake City.. 42 23,132 369 25,789 2,578 425 51,499 14 12 246 10 7,539 449 71,284 Seattle 101 32,597 201 15,188 10,904 336 58,689 14 3,586 33 5,183 383 67,458 Spokane 33 19,201 190 11,587 1,353 232 32,141 10 1,— 14 7,537 256 41,581 Total: Aug. 16 to Sept. 15,1921. 8,904 5,381,82130,1,819 3,434,433 2,426 410,933142,158 19,234,794 3,371 997,370 770 187,336 46,299 10,419,500 July 16 to Aug. 15,1921. 8,791 5,444,166 30,168 3,345,135 2,484 398,020 41,452 19,188,970 3,318 966,877 728 166,226 45,49810,322,073 Aug. 16 to Sept. 15,1920. 7,304 7,700,3912~91,237 4,613,487 1,993 564,334 38,541112,880,327 3,578 1,625,452 853 311,877 42,97214,817,656 1 Includes items drawn on banks in other Federal Reserve districts forwarded direct to drawee bank. NOTE.—Number of business days in period for Baltimore, Jacksonville, San Francisco, and Los Angeles was 25; for other Federal Reserve Bank and branch cities, 26 days. NUMBER OF MEMBER AND NONMEMBER BANKS IN EACH FEDERAL RESERVE DISTRICT, SEPTEMBER 15, 1921 AND 1920 Nonmember banks. Member banks. Federal Reserve district. On par list. Not on par list.* 1921 1920 1921 1920 1921 1920 437 434 255 257 New York 794 777 329 327 Philadelphia ... .". 700 694 464 433 880 866 1,079 1 076 620 610 1,013 766 566 784 503 445 399 421 1 177 1,202 1,439 1,401 4,260 4,240 584 567 2,499 2,512 167 174 1,020 985 2,739 2,913 99 Kansas City 1,087 1,076 3,282 3,395 112 863 838 1,199 1 254 San Francisco 867 813 986 1,026 Total 9,794 9,506 18,504 18,620 2,121 2,160 i Incorporated banks other than mutual savings banks. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1252 FEDERAL RESERVE BULLETIN. OCTOBER, 1921. GOLD AND SILVER IMPORTS AND EXPORTS. GOLD IMPORTS INTO AND EXPORTS FROM THE UNITED STATES, DISTRIBUTED BY COUNTRIES. Imports. Exports. Country. A 1 D e 0 u n 1 u 9 g d d r 2 . i i a 1 n n 2 y . g g 0 s , A D 1 e 1 1 u n u 9 g d d r 2 . i i a 1 n n 3 . y g g 1 s , A D m 1 u u o 9 o r g 2 n f i u 1 n t s h . g t,S D 1 e e 0 n 1 u p 9 d d r t 2 i . i a 1 n n 1 . y g g 0 s , J S a e F 1 n p 9 r . t o 2 . 1 m 1 1 . 0 to , J S a e F 1 n p 9 r . o t 2 . 1 0 m 1 . 0 to , A D e 1 n 1 u 0 u 9 d g r d 2 . i i a 1 n n 2 . y g g 0 s ,A e 1 D n 1 u 1 u 9 d g d 2 r . i i a 1 n 3 n . y g 1 g s ,A D m 1 u u 9 o o g r 2 n u f i 1 n t s h . g t,S D 1 e e 0 1 n u 9 p d d 2 r t i i 1 . a n n . y 1 g g s 0, J S a e F 1 n p 9 r . t o 2 . 1 m 1 1 . t 0 o , J S a e F 1 n p 9 r o t 2 . 1 0 m 1 . 0 to , $9,000 $880 $880$3,720,000 3,760,711 $335,906 3,236,497 109,804 France 7,164,746$10,769,34734,999,294 8,743,087145,054,151 1,744,219 Germany 2,621,160 2 2,621,162 2,829,166 $10,000 715,745 128,700 912 Italy 100,000 100,702 213,289 40,107 241,263 Netherlands 162,585 478,940 879,217 245,603 17,926,399 1,161,963 Norway 2,885 2,885 1,534,985 3,324 Portugal 20,892 25,364 Russia in Europe 85,000 Spain 992 23,511 26,442 3,243,238 17,313 Sweden 4,265,290 4,507,00012,110,726 414,940 55,187,678 249 $2,643,013 Switzerland 239,774 16,436 572,957 4,937 2,604 Turkey in Europe 4,880 7,175 58,025 16,000 393,264 United Kingdom: England 2,651,859 8,039,79019,202,625 6,278,404149,386,858 85,167,570 13,235 Scotland 45 Total Europe...16,815,277 23,925,76570,241,73219,434,470384,169,830 88,739,501 2,643,013 268,014 Bermuda 4,645 4,645 102,890 20 C B a ri n t a is d h a Honduras 2,539,647 52,435 2,653,997 1,005,559 28,942,093 30,767,357 $74,731$105,602 $263,197 $102, Hi 1,629,589 3,859,442 Costa Rica 18,561 2,165 44,623 27,500 651,849 475,680 Guatemala 31,586 17,000 75,586 48,000 501,287 14,872 Honduras 186 2,157 2,942 197,132 181,695 19,000 Nicaragua 48,623 72,277 153,423 23 550,296 844,630 Panama 31,982 163,791 318,189 67,282 1,862,915 156,265 Salvador 10,000 83,381 109,836 117,850 788,437 725,765 20,000 Mexico 145,004 140,190 471,124 143,716 3,750,854 3,181,290 3,000 118,610 301,905 35,165 5,198,915 16,392,548 Cuba 96 96 255,707 358,276 14,480 350 350 250,844 375,000 British West Indies... 2,830 76,058 78,888 435,993 110,419 Virgin Islands of U.S. 150,000 10,000 Dominican Republic. 25,000 25,000 25,000 39,000 Dutch West Indies... 214,154 341,754 23,960 4,765,385 174,081 Total North America 2,833,064 848,704 4,280,103 1,689,597 43,082,407 36,646,554 78,081 224,212 565,452 137,306 7,079,348 20,714,990 Argentina 9,129 86,700 95,829 9,797 928,020 77,238 89,995,000 827 3,031 6,878 B B o ra l z iv il ia. 93,122 24,585 24,300 280,000 Chile . 3,390 4,342 2,412 122,649 337,317 400,000 Colombia 149,828 202,829 690,074 523,983 8,740,710 3,130,887 700,000 EBcriutaisdho rGuiana 3,812 20,053 3*2,650 3 1 8 0 0 7 , , 8 4 0 3 0 6 4 9 4 3 2 , , 7 9 5 3 4 2 156,000 Dutch Guiana 1,385 1,385 54,030 2,387 6,300 Peru 23,631 27,828 139,273 47,029 911,455 626,613 3,653,376 Uruguay 1,008,390 196,442 1,469,821 160,753 5,031,837 12,850,000 Venezuela 8,999 23,736 33,243 74,976 1,027,006 354,265 184,000 Total South America 1,207,179 558,973 2,466,617 819,777 17,400,096 5,096,856 24,300108,224,676 China 480,259 46,310 1,351,637 679,369 17,222,109 1,260 20,286,750 Chosen 4,860 4,860 4,860 British India 3,529,319 4,563,743 206.000 24,009,263 6,503,741 Straits Settlements... 6,683,454 Dutch East Indies 52,018 52,018 106,828 782,485 2,672,994 60,000 12,065,105 French East Indies... 6,005,892 2,290,000 Greece in Asia 74,708 15,683 166,676 14,900 922,640 Hongkong 254,429 5,580,825 30,191,910 17,300 57,250 106,200 122,600 1,550,090 27,202,797 Japan ... 2,208,234 43,953,495 Palestine and Svria 139,050 179,635 147,675 811,495 Turkey in Asia. 1,448,793 Total Asia 606,985 3,735,222 6,572,998 1,154,772 58,996,596 32,866,164 17,300 57,250 106,200 122,600 1,610,090118,985,342 Australia 1,946,600 1,946,600 11,690,487 New Zealand 215,390 215,390 2,178,897 1,456,540 Tahiti . 300 Philippine Islands,.... 59,000 6,267 107,761 55,000 890,714 647,746 Abyssinia 21,665 British West Africa... 13,250 39,446 British South Africa 51,823 Egypt 366,7U 366,714 1,700,439 2,208,729 Portuguese Africa 1,219 1,219 2,1,180 562,073 280,358 Total all countries 21,521,505 31,604,85486,199,13424,875,2351521,264,567165,733,719 95,381 281,462 671,652 259,906211,357,051248,232,468 Excess imports or exports 21,426,124 31,323,39285,527,48224,615,329509,907,516 82,838,749 i Includeiss:: Ore and base bullion, $28,048,000; United States mint or assay office bars, $428,000; other refined bullion, $377,174,000; United ;es com, $>oi,izz,uuu; ioreigu uum, »fft,^i,wu. 2 Includes: Domestic exports—Ore and base bullion, $76,000; United States mint or assay office bars, $621,000; other refined bullion $101 000coin., $7,049,000. Foreign exports—Ore and base bullion, $1,000; refined bullion, $1,521,000; coin, $1,988,000. ' ' Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

OCTOBER, 1921. FEDERAL RESERVE BULLETIN". 1253 SILVER IMPORTS INTO AND EXPORTS FROM THE UNITED STATES, DISTRIBUTED BY COUNTRIES. Imports. Exports. Country. A 1 D e 0 n u 1 u 9 d g d r 2 . i i a 1 n n 2 y . g g 0 s , A D 1 e 1 n u u 1 d g 9 d r . 2 i i a n n 1 3 y g g . 1 s , A m D 1 u u o 9 o g r n 3 f i u 1 n t s n . g t, S D 1 e e 0 n 1 u p 9 d d r t 2 i . i a 1 n n 1 y . g g 0 s , J S a e F 1 p n 9 r . t o 3 . 1 m 1 1 . t 0 o , J S a e F 1 n p r 9 . t o 2 . 1 m 0 1 . t 0 o , A D e 1 n 1 u 0 u 9 d g r d 2 i , i 1 n a n 2 . g y g 0 s , A D e 1 n 1 u 1 u 9 d g r d 2 i . i 1 n a n 3 . g y g 1 s , A m D 1 u u 9 o o g 3 r n f u i 1 n t . s h g t, ^ S D 1 e 1 e 0 n 9 u p d 2 d r t i . i 1 a n n . 1 y g g 0 s , S J e F a 1 p n r 9 t o . 3 . m 1 1 1 . t 0 o , S Ja e F n 1 p r 9 . t o 2 . 1 m 0 1 . t 0 o , Bplsfium $16 Bulgaria $16,825 $16,825 16,825 Denmark 370 France 1,067 2,211 $485 99,875 $83,295 $32,920 Germany 2,881,629 $40,192 3,815,923 763,127 4,955,909 Greece. - 225,234 Italy 11,351 24,026 Netherlands 805 30,820 Norway 4 111| 4,111 4,111 14,453 Poland and Danzig. . 1,000 1,000 Portugal 4,965 4,965 20,382 7,978 Spain 46 46 16,328 67,848 Swpdpn 30 30 5,280 6,915 54,960 10,157 United Kingdom- England 92 54 344 47 1,143,283 801,061 $300,737 $709,897$1,070,672 $544,547 $8,090,731 4,520,242 Total Europe... 2,903,724 45,287 3,845,455 763,659 6,510,926 1,036,396 300,737 709,8971,070,672 544,547 8,090,731 4,608,122 200 200 400 British Honduras 63,367 Canada -• 38,674 117,255 206,945 118,025 2,897,954 2,874,480 47,726 68,933 150,063 85,633 1,715,250 6,204,047 Costa Rica 26 245 1,206 6,723 51,363 55,306 500 520 21,734 2,500 4,500 N H i o c n a d ra u g r u as a 23,66 1 3 0 1 1 1 , , 5 8 4 9 7 3 3 1 5 , , 5 5 6 5 6 6 i 8 1 2 74 7 , , 2 8 7 1 4 3 1,7 5 4 7 7 3 , , 5 31 1 5 1 i,666 1,800 37 3 6 , , 0 5 0 0 0 5 84 98 117 385,885 135,671 226,000 542,000 Qoi vodor 2,425 4,014 19,465 40,110 3,685,083 50,000 Mexico 1,016,769 871,933 3,184,586 794,449 24,741,15941,541,394 13,056 62,975 104,894 53,201 1,606,888 2,711,622 Cuba 4 4 37 70 772 62,550 7,200 316,825 1,075,215 T^ritisTi T/Wct TfldlPS 1,818 7,017 600 98,552 18,080 Virgin Islands of U. S. 25,000 Dominican Republic. 6,000 46,000 52,000 170,000 120,800 261,500 Dntoh Wpst Indies 315 315 40 1,590 1,450 "FYPTIPVI ^ATpst Indies 20 Haiti 9,000 Total North America 1,085,142 1,051,701 3,486,790 938,857 29,363,25850,889,698 60,982 131,908 256,157 146,634 4,018,21511,230,469 Argentina 1,274 1,274 3,113 18,592 25,396 900 12,138 9,958 269,094 995,664 Brazil 1,116 41,876 293 2,333 Chile 10,648 25,939 109,407 1,326,852 2,273,616 Colombia 861""""13," 567 21,443 12,207 128,782 591,932 "**239,"506 24,400 52,266 Ecuador... 43 42 T~)ntph Guiana 6 6 141 6,390 1,402 Peru 125,800 8,188 425,768 110,261 3,623,048 9,078,961 79 2,932 Venezuela 11 14 25 8 2,564 72 10,000 Total South America 138,594 21,775 474,463 246,149 5,438,32413.024.632 240,400 25,873 China 20? 87 509 167 7,60s! 1,289,974 653,9381,074,324 631,258 6,531,56554,251,673 140 140 140 126 10,163 10,853 1,025,464 2,873,517 223,211 T)nfph T?fl*lt IndlOS 33 033 33,033 7,698 383,019 2,327,337 528,000 4,058,373 204 396 1,650 762,9181,012,902 64,025 7,588,60419,397,995 218,698 329,078 217,170 2,655,636 1,154,939 970 960 38,511 Total Asia 33,235 353 44,049 7,865 402,976 3,657,472 1,635,5542,416,3041,937,917 20,177,32279,087,161 3,128 76 76 1,105 11,617 Philippine Islands... 590 28 1,616 550 14,125 14,680 31 3,760 6,097 7,480 400 400 1,190 37,128 93,321 Total, all countries 4,161,285 1,119,620 7,852,849 1,958,270141,774,76168,733,913 361,7192,477,3593,743,1332,629,098232,526,66894,959,105 Excess of imports or exports 3,799,566 4,109,716 9,248,093 1,357,739 670,828 26,225,192 1 Includes- Ore and base bullion, $28,450,000; other refined bullion, $5,310,000; United States coin, $2,308,000; foreign coin, $5,706,000. 2 Includes- Domestic exports—Ore and base bullion, $15,000; United States mint or assay office bars, $152,000; other refined bullion, $15,924,000; coin $838 000.' Foreign exports-Ore and base bullion, $2,000; bullion refined, $12,231,000; coin, $3,364,000. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1254 FEDERAL, RESERVE BULLETIN. OCTOBER, 1921. MONEY HELD OUTSIDE THE UNITED STATES TREASURY AND THE FEDERAL RESERVE SYSTEM, SEPTEMBER 1, 1921. Amount per General stock. U a G s H . o a S e v s . l s e d e T r n t i r s n m e o a t e f h s n u t e t h r . y 1 e F. H R el a . d g B b e a n y n t k s o . s r 2 a fo n r d U H . a e S S n l . d d y T s o F t r e u . e m t a R s s . i . u d r e y U ca . a p S S n i . t d y a T s F t o r e e . u m a R t s s . . u id r e y Gold coin (including bullion in Treasury) $3,377,417,980 $383,347,076 $1,778,327,667 $386,916,668 Gold certificates 644,461,480 184,365,089 Standard silver dollars 303*739*326' *"*ii*366*396" 8 40,957,956 34,333,953 Silver certificates 26,929,506 188^588,757 Subsidiary silver 272,366,584 11,587,229 260,779,355 Treasury notes of 1890 LJ.1,562,764 United States notes 346,681,016 2,952,147 < 78,969,982 264,758,887 Federal Reserve notes 2,849,722,060 2,962,222 319,846,227 2,526,913,611 Federal Reserve Bank notes 121,766,400 2,593,508 8,662,314 110,510,578 National Bank notes 739,148,874 16,815,334 9,032,981 713,300,559 Total: Sept. 1,1921 8,010,842,240 431,623,906 2,907,188,113 4,672,030,221 $43.11 Aug. 1,1921 7,988,397,187 432,471,109 2,818,800,024 4,737,126,054 43.77 July 1,1921 8,024,422,943 460,595,721 2,697,553,897 4,866,273,325 45.02 June 1, 1921 8,073,737,233 499,236,987 2,562,692,917 5,011,807,329 46.43 May 1,1921 8,040,936,478 508,349,193 2,512,465,834 5,020,121,451 46.57 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 i 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. a Exclusive of amounts held with United States Treasurer in gold redemption fund against Federal Reserve notes. »Includes subsidiary silver. < Includes Treasury notes of 1890. FEDERAL RESERVE BANK DISCOUNT RATES. RATES ON PAPER DISCOUNTED FOR MEMBER BANKS IN EFFECT OCT. 1, 1921. Paper maturing within 90 days. Agricultural Bankers' and live-stock Secured by— acceptances paper Federal Reserve Bank. Commercial, maturing maturing after Trade agricultural, within 90 days Treasury notes Liberty bonds acceptances. and live-stock 3 months. but within and certificates and paper, n.e.s. 6 months. of indebtedness. Victory notes. Boston 5 5 5 5 5 New York 5 5 5 5 5 5 Philadelphia. 51 ? 51 51 51 R Cl i e c v h e m lan o d nd... 6 51 51 ? 5 6 1 5 6 1 A M C St h t . i l i n a c L n n a o e g t u a a o i p s olis.. 6 6 6 6 6 6 6 6 6 6 6 6 6 6 61 6 6 5 6 1 6 6 6 61 Kansas City.. 6 6 6 6 6 6 Dallas 6 6 6 6 6 6 San Francisco 51 6 51 51 51 51 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

DISCOUNT AND INTEEEST R ATES. In the following table are presented actual discount and Rates for almost all classes of paper, and particularly prime interest rates prevailing during the 30-day period ending Sep- commercial paper purchased in the open market, and bankers' tember 15, 1921, in the various cities in which the several acceptances, both indorsed and unindorsed, tended to decrease Federal Reserve Banks, and their branches are located. A in comparison with the rates prevailing during the period complete description of the several types of paper for which ending August 15, 1921. quotations are given will be found in the September, 1918, With the exception of the rates oninterbankloans and ordinary and October, 1918, FEDERAL RESERVE BULLETINS. Quota- loans to customers secured by Liberty bonds and certificates of tions for new types of paper will be added from time to time indebtedness, present rates as a whole were lower for all types of as deemed of interest. paper than those prevailing during the same period of 1920. DISCOUNT AND INTEREST RATES PREVAILING IN VARIOUS CENTERS DURING 30-DAY PERIOD ENDING SEPTEMBER 15, 1921. Mme commercial paper Customers. DLstrict. City. 30 to 60 days. H No 1 Boston 7 No.2 New Yorki 8 "RiTflFaln No.3 Philadelphia TSJn Pittsburgh Cincinnati No 5 Richm ond Baltimore No Atlanta B irmingham Jacksonville New Orleans Nashvillo No.7 Chicago Detroit No 8 St Louis Louisville MpmnTii^ Little Rock No.9 Minneapolis No. 10 Kansas City Omaha DOeknlavheorma City .. No 11 Dallas • - - •El Pa^o Houston No.12 San Francisco Portland Seattle ^nlt T nkp Citv •COb L 5 6 a 6 7 6 li <? 71f 8 s 7 f 7 8 6 7 6 <? s 7 747 7 8 180 V 10 « 7 8 8 8 8 8 • OC C. 64 6-64 o f6i 6 7 6 6 •» 6 !ob 4 to 6 months. L C. 7 6| 746 6-64 6 6 7 a 6 6 6 6-64 7 6 fi 6 fi 6 7 s ? ?6 7 8 6* 7 8 6* 6-7 7 6 64 7 7* 8 6 7 6 7 8 8 8 7 7 747 64-7 8 6 7 8 6 7 8 fi 8 10 6 7 8 8 10 8 7 7161 «4 7 6 8 6 7 8 64 7 8 7" 8 8 7 7 8 6 •COb 6 64 ff 6 7 MOO 7 7 6-7 64 7* 6 7 8 7 64-7 7 8 7 8 7 ?* 7 MOOM Open market Interbank loans. 30 to 90 4 to 6 days. months. H.L C. H. L . a H I, 64 5f 64 5|61 " 6 6} 6 6-61 6~6 6 8 6 64 6 6-6J 64 6 6 6 61 6 6 61 6 6 6 7 64 64 7 6 64 7 6 6 8 ??? 8 648 ? 8 7 7 8 8 64 6 f 64 6 64 8 64 6 7 7 6 64 7 6 64 7 64 6i61 64 6| fi+ 6 8 64 6 64 74 647 7 6464 7 6464 7 Q 64 6 6i 64 6 61 8 7*6 6* 7 6 61 8 8 6 7 8 6 7 8 8 8 8 8 8 8 8 7 64 6 SI 64 6 61 7 64 5| 64 6 7 7" 67 64 6 64 7 8 8 7| 6 64 6| 6 64 8 •COCC Bankers' acceptances, Collateral loans—stock exchange 60 to 90 days. or other current. Unin- Indorsed. dorsed. Demand. C. H.L a H L. C. H. 5 435 4?5 6 6-64 6 5* 5-54 5| 5 5J-5f 8 6 g 5i 6* 7* 5J5* 5* 6 6 6 5 5 5 5 5 6 6 6 54 54-5? 6 5? 7 6 6 6 6 6 6 6 6 6 6 7 8 7 7 8 7 7 8 ? 8 7 8 8 7 8 6 7 8 8 6 64-8 8 6 64-8 8 6 6 6 7 6 544* 41 5 4$4| 7 6 6f 5i fi 5° 8 6 6 6 6 6 6 6 6 6 6 7 8 7 7 8 7 7 646 6| 6f 6i 64 74 6 7 7 a C7 K7 6 7 6 7 8 8 8 8 8 8 10 6 64 8 7 8' 10 7 7 8 ?? ?5f 54 f 5'f 5| 5 54 7 7 64 64 64 54 5 54 647 8 5 64 7 5 51 7 5 51 MOO L C. 6 6 5 54-6 5 6 64 6 6 64 6" 7 6 f 6 6 6 7 7 6 6 6 6 6 6 44 8 7 8 5 9 8 8 6 •COb- 3 months. H 64 8 6 6 6 64-7 7 6 6 6 6 7 8 7 71 7 8 74-8 8 64-7 7 7 7 7 6 6 7 8 8 8 74 71 7 7 Q 8 10 74 8 8" 10 7 8 ?* 7 7 8 7 MOO L. 6 5| 5H 6 64 6 6 64 6~ 7 6 6 ? 6 6 6 7 7 6 ^2 6 6 6 8 6 8 8 9 8 COCO ir C. il 61 6 7 6 6 7 6 6 7 7 8 74.-8 7 64-7 7 6 7 8 74 7 7'21 7 8 74 8" 7 ? 7 8 7 7 8 8 6 7 • cob 3t()6 on L C. 64 5f6* 6 6 6 7 7 6 6 6 6 8 64 8 6" 8 8 8 6 8 6 7 5-! 7 6 7 6 6 6 8 6 8 7 8 74 7 6 0 8 62 10 6 8 6 10 8 8 6 7 f 8 8 7 8 7 8 6 •COb Secured by C lo a a t n tl s e . w r a e r c e e h ip ou ts s . e H. L. C. H 7 6 6 6 6 ? 6 7 7 64 7 7 6 6 6 6 7 8 7 8 8 8 7f 8 8 6 7 8 8 7 8 64-7 7 7 7 7 7 7 8 7 7 8 6 6 6 6 6 7 8 8 8 7 g 8 74 8 7474 74 7 8 6 7 7 71 8 7 7*< 8 8 10 7 8 10 74 8 8 8 8 8" 10 8 9 10 7 8 7 74 8 ? 8 7 7" 8 7 7 7 8 8 8 8 9 8 8 7 8 6 8 MOO 8 ooooo X 6 •COb 6 64 6 6 7 6f 64 6 6 64 6 6 8 7 cot Ordinary loans to custonlers securecIby Libei bondsatyind certificates of ind3bt- edness. C. H. L. a 6i 64 54 6 6 67 ?*6 7 7 6 6 6 6 7 7 64 64 6 6 6 6 6 6 6 6 7 7 7|6i 7 7i-8 8 6 7-8 72 7 6 6 6H 7 6 64^7 7 6 6i 7 64 7 6 6 6" 6 7 7 6 7 8 8 7 8 74 7 64 64 7 8 6 7 6 7* 7f 6 7-8 7 8 180 66 8 7 71 8 6 71 8 8 10 6 S 7 7 * 8 6 7 6464 7 6 «i 64 7 8 6 7 7 8 7 7 7 8 8 7 7 8 8 8 7 8 6 7 8 6 7 1 Rates for demand paper secured by prime banker's acceptances: High, 6; low, 5; customary, 5-6. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1256 FEDERAL RESERVE BULLETIN. OCTOBER, 1921. FOREIGN EXCHANGE RATES. Following is a table showing noon buying average rates for September and for August are rates for cable transfers in New York for prin- shown. The general foreign exchange index cipal foreign currencies, based on reports pub- representing the weighted average of the 18 lished daily by the Treasury in accordance principal foreign currencies works out at 51 with the act of May 27 1921. High, low, and for September, compared with 52 for August. ; COUNTRIES INCLUDED IN COMPUTATION OF INDEX. Low. High. Average. Per cent of par.1 Weight. Par Monetary of exunit. change. te S m e b p- er. August. tem Se b p- er. te S m e b p e - r. tftShnr. August. te S m ep b - er. August. Belgium Franc. $0.1930$0. 0684 $0.07321 $0.0764 i$0.0764 $0.0717 $0.075270 i 37.15 39.00 16,260 12,312 Denmark Krone.. . 2680 .1715 .151 .1788 1785 . 1767 . 1619 •;65.93 60.41 4,526 3,100 England Pound 4. 8665 3.699 3.56475 3.7463 3. 7313 5.724 3.653632 ' 76. 52 75.08 121,270 107, 549 France Franc . 1930 .0698 .07619 .0787 .0793 .0728 .077581 ; 37.72 40.20 61,840 52, 378 Germany Reichsmark. . 2382 .007989 .01093 . 011705J . 012485 .009574 . 011896 | 4.02 4.99 53,585 43, 352 Italy Lira . 1930 .0398 .0419 . 045 I.0444 .042 . 043156 ! 21.76 22.36 19,773 18,711 Netherlands. Florin . 4020 .31 . 3052 .3219 ! .3176 . 3166 .310 78.76 77.11 25,216 20, 228 Norway Krone .2680 . 1227 .1262 . 1362 I.1381 . 1286 .1307 ; 47.99 48.77 2,824 2,739 Spain Peseta . 1930 !l296 .1202 .131 .1307 .1302 .1289 ! 67.46 66.79 5,490 5,624 Sweden Krona . 2680 .2139 . 20273 .2244 .2173 .2178 .21112 i 81. 27 78.78 16,315 5,823 Switzerland. Franc . 1930 .1703 .1638 . 1731 !.1706 .172 .16817 .39.12 87.13 3,686 4,246 Canada Dollar 1.00 .89125 . 89125 . 909167!.90208 . 898519 . 8978194 89. 85 89.78 95,566 76, 453 Argentina... Peso (gold).. . 9648 .6748 .6468 . 7383 i.6808 .6963 . 66555 72.17 68.98 12.229 11,900 Brazil Milreis . 3244 .1199 .1144 . 1283 |.1219 .1237 .1176 38.13 36.25 10; 022 7,493 Chile Peso (paper) . 1953 .09875 .09750 .11625 !.10625 . 10708 .1024 54. 83 52.43 5,701 3,959 China Shanghai . 6685 .6837 .668 .799 | .685 .7300 .67858 109. 20 101. 51 23,795 18, 829 tael. India.. Rupee . 4866 .2521 .2283 . 2748 ! .2563 .2639 .24224 54.23 49.78 13,894 9,377 Japan. Yen . 4985 .4782 .48188 . 4846 i.4850 .482 .48369 96.69 97.03 43,570 38, 831 OTHER COUNTRIES. Low. High. Average. Percentage of par.i Par Monetary unit. of exchange. Sep- Sep- Septemter. August. tember. August. tember. August. tember. August. Austria I Krone.. $0.2026 $0. 000582 $0. 001125SO. 00125 i $0. 001319$0. 000936 $0. 001193 0.46 0.59 .1930 .00682 . 0085 .008738 ! .0091 . 007587 . 008801 3.93 4.56 BCzuelgchaorisalo vakia | KLerovn.e .2026 . 010093 .0117 .012193 .0129 . 011601 . 012247 5.73 6.04 Finland Markka .1930 .011986 . 014675 .015671 ! . 0155 . 014059 . 015106 7. 28 7.83 Greece Drachma .1930 .0478 .0547 . 0566 . 0561 . 0524 . 05546 27! 15 28.74 Hungary Krone . 2026 .001375 . 0025 .002606 .00289 . 001944 . 002629 0.96 1.30 Poland Polish mark .2382 . 00015 .000392 .000383 ; .000563 . 000256 . 000489 0.11 0.21 Portugal Escudo 1.0805 .084 .0921 . 1108 I .1293 . 09416 .1007 8.71 9.32 Rumania .1930 . 008113 . 01163 .011963 ! .0131 . 009574 . 012383 4.96 6.42 .2026 . 00395 . 005575 . 0056 i . 006231 . 004759 . 005808 2.35 2.87 Jugoslavia llSerbian dinar ' .1930 . 016025 . 02245 . 0225 i .025 . 019122 .0233 9.91 12.07 Cuba j Peso 1.00 .48 . 991067 .492813 i .9946 . 48599 . 993225 97.49 99. 32 Mexico j Peso . 4985 .990938 . 48125 .995212 ! . 489375 . 993233 . 484954 99.32 97.28 Uruguay j Peso 1. 0342 . 6332 .5898 I . 6806 ! .6791 .6489 . 63905 62.74 61.79 Hongkong j Dollar .4777 .502 .4935 . 5605 ! . 5040 . 5244 . 5007 109. 78 104. 81 Java I Florin .4020 .31 .30 I .3175 i . 3115 .3136 . 3053 78.01 75. 95 Straits Settlements I Singapore dollar. . 5678 .42 . 4108 I . 4283 i .4217 .4246 . 41809 74.78 73.63 1 Based on average. Average price of silver per fine ounce: In London (converted at average rate of exchange), $0 67022- in New York $0.66235. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

OCTOBER, 1921. FEDERAL RESERVE BULLETIN. 1257 FOREIGN EXCHANGE INDEX 1918 - 1921 — GENERAL INDEX — FRANCE - ITALY - ARGENTIN/ •- ENGLAND •••• GERMANY • NETHERLANDS - - JAPAN PERCENT PER CENT no no •555 —-«. - PAR — — •-, s^ N 90 \ 9O *"* 80 X T • •%, 8O \ > 7O V \ mm* | \- 70 *\ -\ A N 6O 60 V, SO 5O s 40 — 4O y" -• • 3O 3O y 2O 2O *•. 1O '••» 1O MONTH N n J. F M A M ,i ,1 A 55. O N n j. F M A M J. A S o. N n J. F A M J. A S n hs. n.MONTH YEAR 1918 1919 1920 1921 YEAR 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 and note accounts, Bank Government floating Nine London clearing of England and Treasury. debt. banks.3 Discount rates. Statist index Cur- Capital numrency issues ber of notes De- Money of foreign n B o a te n s k .1 c c e o a a r n u t t i d e t f - s i- p p o o a u th n s b i d e l t i r s c . , an l C i d o o b n i . u n 2 l- T b u r i e l r l y a s s . - r T v a a e r n m y c p a e d o s. - - fl T d oa e o t b i t n a t. g l n a s t o a h t n c o ic d a r e l t l . a v c n a o D d n u i c n s a e - t d s s . - I m nv en es ts t- . po D s e it - s. U K d n o i i m n t g e . - 4 d m T b b o h a i n l n r l t e s k h e . s'm t b o r S i a n l i d l x t s h e . s' v c a h l e £ a u x n . e - g o e f standing. 1913, average of end of month Per ct. Per ct. figures 29 57 38 15 H 1920, end of— August 106 356 116 152 1,067 183 1,250 100.1 1921, end of— January 109 342 129 157 1,145 242 1,387 99 1,207 341 1,810 22 6f 7 122.4 February 108 336 127 157 1,110 189 1,299 88 1,172 340 1,754 10 120.9 March... 110 344 138 157 1,121 155 1,275 83 1,145 336 1,715 26 123.0 April 109 338 141 157 1,100 190 1,290 92 1,127 309 1,710 15 5 9- 7 120.0 May... . 108 333 128 157 1,152 163 1,315 96 1,144 307 1,729 17 54-f 7 119.1 June 110 324 147 157 1.222 152 1,374 98 1,162 312 1,768 34 g 5 117.8 July 109 325 122 157 1,202 150 1,355 104 1,185 312 1,785 10 41 5i 112.9 August 107 319 137 157 1,166 180 1,347 8 4f 6 113.0 1 Less notes in currency notes account. 3 Average weekly figures. 2 Held by the Bank of England and by the Treasury as note reserve. * Compilation of London Joint City and Midland Bank. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1258 FEDERAL RESERVE BULLETIN. OCTOBER, 1921. FRENCH FINANCIAL SITUATION. [Amounts in millions of francs.] Bank of France.1 Situation of the Government. Value se G r r o e v - l e d s. s S e i r r l e v v - e e s r . po D si e t - s.2 c t C i u o i l r n a - . - f v t o o m p G o a e A r f o n r e o t s p d t n c h n v h e u - - e e t s - e r s - m r n G e e u r e v o e n n e v . - - 4 t - t d e I e r n n b - a t. l t d e e E r b n x t. - a & l r p P e c p e o p n r e t e f e i u t n r c r e 3 - a t e . l 6 F o p i s b u m s r l f a t t s a o p e o h n n u a c n n o c e e d r e e c d n k w - s d h - p S a o b e d w o l a s x a s r f v i i o c a n t t i ( s d e w r n k h ( - s e g - - s - s ) - H , s . b i c d n P a A a l t g a a e n h g i s v r a k e l e i - y o r s s - f . war.3 ket.* 1913, average-. 3,343 629 830 5,565 320 35,000 86.77 - 65 59 1920, average-. '3,586 253 3,527 38,066 26,042 1,005 57.34 + 48 554 1921— January.., 3,553 268 3,429 37,913 25,600 1,204 59.16 995 + 70 657 February. 3,555 264 3,293 37,808 25,600 921 58.15 1,861 + 181 591 March 9 3,556 267 3,103 38,435 26,200 972 H22O,344 58.17 344 + 111 556 April '3,566 271 3,018 38,211 26,000 1,248 32,523 56.92 1,085 + 66 600 May ^3,570 272 3,041 38,233 26,200 1,004 57.15 H892 + 63 666 June »3,572 274 2,861 37,422 25,000 1,030 56.26 621 + 45 582 July 9 3,573 275 3,252 36,941 25,100 1,242 229,055 35,268 56.35 2,345 + 52 438 August— 9 3,574 277 2,749 36,783 24,900 1,016 56.35 152 I 1 End of month figures. 2 Includes Treasury and individual deposits. s Under the laws of Aug. 5 and Dec. 26,1914, July 10,1915, and Feb. 16,1917. < From indirect taxation and Government monopolies. & Foreign debt converted to francs at par. 6 Last Wednesday in the month. 7 Figures of the "Association Nationale des Porteurs Francais de Valeurs Mobilieres." Bonds issued by the Government and the railroad companies not included. s Not including 1,978,000,000 francs held abroad from January through August and 1,948,000,000 francs from September through December. 9 Not including about 1,948,000,000 francs held abroad. 10 Average for 11 months, n Revised figure. ITALIAN FINANCIAL SITUATION. [In millions of lire.] Leading private banks.1 Banks of issue. Government finances. Loans, Princi- Cash. d c s u c o p e a o d o u n i r f n s n r d r - e d o t - s - m , i s D d c t p e s u o e n o e r p a n t r o s n t e d o . s d - - - c L o a d o u n i a n s 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 a e n i s o - n l . d i s d - - l c a C m i c t r o i i e c o a m r u l n - - - . a C ti o c s o i t c f r n a c o t t u u h e f l o n e . a r t - n r S e c o t n u t a c e r t - y s e . m T s li e u c r e r e r t v r y a a e e s l - . - - S t t b r u e h e i r r l o a m l y r s s t . - - p T d u e o b b t l a t i . l c n p t a n u a d n a o x e u l d p s a r r o i t e m f n l i r v i o o g e o e n m s - ents. month.2 1913, end of December. 129 2,007 1,674 857 1,375 1,661 318 2,284 499 117 1920, end of— June 874 14,996 14,060 6,784 1,038 2,110 2,379 7,484 10,333 2,538 343 9,300 95,000 July 6,576 1,039 2,113 2,196 7,615 10,284 1921, end of— January 1,193 17,113 16,392 6,931 1,058 2,046 2,635 8,673 10,591 822 February 1,016 16,842 15,961 7,158- 1,062 2,007 2,351 8,619 10,308 1,210 March 1,067 17,096 16,425 7,144 1,062 2,043 2,461 9,233 9,532 ^606 April 1,165 17,162 16,694 7,040 1,066 2,138 2,349 8,677 9,601 1,309 May 1,021 17,489 16,645 6,951 1,070 2,165 2,198 8,809 9,219 2,546 106,721 607 j une 7,438 1,073 1,989 2,366 9,437 8,722 19,000 July 1 ] 1 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. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

OCTOBEE, 1921. FEDERAL RESERVE BULLETIN. 1259 GERMAN FINANCIAL SITUATION. [Amounts in millions of marks.] Reichsbank statistics. Situation of the Government. lvalue of | new stock Reserve. Darlehns- [ and bond Index kassen- I issues number scheine placed of Gold. D R a u e rl i n e c d h h ns- Note cir- i R t e f a r c x o e e m i s p . ts Fl d o e a b ti t n . g 3 im l p o p e a e r n r c . i 1 e a n l t5 l p o w e a r a n r c .1 ent G u e t p r h m o e n an s p e r c i u c r e i s ti .2 es kassen- market .3 scheine. 1913 average.. 1,068 32 1,958 668 75.90 1920, end of— July ,092 17,874 55,969 17,282 13,328 1,995 60.64 98.50 6 140 August.. ,092 18,686 58,401 15,772 13,266 1,983 148,750 60.80 98.70 148 1921, end of— January.. ,092 22,810 66,621 15,834 11,341 6,741 67.00 99.50 2,042 179 February ,092 21,982 67,427 17,357 10,755 7,766 67.25 99.75 2,397 155 March... ,092 23,836 69,417 28,043 10,168 6,846 166,329 67.60 99.70 894 '163 April ,092 24,149 70,840 20,856 9,543 5,357 172,634 72.10 99.80 2,559 159 May ,092 14,362 71,839 14,093 9,043 6,108 176,643 72.10 99.75 1,468 166 June ,092 8,311 75,321 20,393 8,706 5,735 185,032 67. 75 99.75 2,238 178 July ,092 5,398 77,391 15,814 8,358 5,566 190,675 77.00 99.80 1,507 195 August.. ,024 3,045 80,073 13,650 7,837 76.00 99.90 1,228 222 1 Quotations of the Berlin Bourse. 2 Calculated by the Frankfurter Zeitung with the prices of 10 bonds and 25 stocks. Prices as of Jan. 1,1920=100. 3 Compilation of the Frankfurter Zeitung. 4 As of June 1. & As of Aug. 3. 6 As of Aug. 2. » As of Apr. 2. SWEDISH FINANCIAL SITUATION. [Values in millions of kronor.] Riksbank. Joint-stock banks. Protested bills.1 f B a u il s u i r n e e s s .1 s e F i x n o c d h re e a i x n g . g n 1 e Index Foreign number exchange of stock Bills value of prices— an G d o l b d u c ll o io in n. N cu o l t a e t i c o i n r- . disc w o i u th nted L di o s a c n o s u a n n ts d . Number. Value. Number. th a e b r k o r a o d na A list.1 Riksbank. (foreign currencies =100). 1913, end of December. 102.1 234.5 138.9 2,286.9 4,314 1.9 309 258 1920, average 269.2 732.9 476.3 6,008.2 3,586 6.4 196 112.9 176 1920, end of— July ... 261.3 724.8 511.8 6,028.9 3,803 6.2 182 115.8 176 August 261.4 742.2 566.0 6,007.4 3,542 5.1 130 115.4 169 1921, end of— 281 9 672.5 429.2 6,172.6 5,951 13.4 301 116.1 148 February 281.8 687.6 451.3 6,119.2 6,411 14.1 381 116.4 138 March 281.7 716.9 442.2 6,093.6 8,521 20.1 390 121.7 133 April 281.8 680.5 400.9 6,065.3 7,899 15.6 444 125.5 128 Mav 281.6 651.1 377.6 5,982.7 8,201 22.8 454 123.3 116 June 281.4 678.8 365.1 5,949.2 7,376 18.0 433 122.6 110 July. 280.3 629.4 362.6 5,929.9 7,383 16.8 413 119.3 125 August 285.0 632.4 5,937.1 1 Source: Kommersiella Meddelanden. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1260 FEDERAL BE SERVE BULLETIN". OCTOBER, 1921. JAPANESE FINANCIAL SITUATION. [Amounts in millions of yen.] Bank of Japan. Tokyo banks. Tokyo I a e d P n r e n d r p i m v o G a s e o t i n e v t t s - . 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 l s t o a o o o a n c k t n i k a y a s l s t o . e , d 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 k o r k t a e u e y g t n o ) e t . month). 1920, end of— i Per cent. March 1,181 364 1,368 921 1,982 4,135 10.15 April 1,261 432 1,367 917 1,982 3,168 10.62 May. 1,209 445 1,328 930 2,089 2,922 10.95 June. 1,165 381 1,349 979 2,036 2,524 10.99 July. 1,120 273 1,202 1,011 2,029 2,190 10.95 1921, end of— 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 1,190 88 1,178 1,178 2,219 2,502 9.23 April.. 1,098 79 1,058 1,058 1,848 2,442 9.16 May 1,172 76 1,059 1,059 1,873 2,506 9.05 June 1,119 74 1,053 1,053 1,980 2,670 8.91 July.... 1,987 2,341 8.36 August. 1,951 2,816 8.43 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. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

INDEX. Acceptances: Page. Index numbers: Page. Dealing in, methods employed 1166 Eight groups of manufacturing industries 1148 Growers' drafts accepted by cooperative marketing associa- Foreign exchange 1256 tions, ruling on 1199 Foreign trade 1205 Held by Federal Reserve Banks 1235 Ocean freight rates 1206 Purchased by Federal Reserve Banks 1233 Physical volume of trade 1207-1219 Agricultural loans by member banks, March 4, 1920, and April Prices in Netherlands 1195 28, 1921 1150 Retail prices in principal countries. 1229 Australia, wholesale prices in 1225,1228 Wholesale prices abroad 1225-1229 Bank debits 1247-1250 Wholesale prices in the United States 1201,1225 Banking elasticity 1149 India, wholesale prices in 1225,1229 Banking situation, discussion of 1153 Interest rates prevailing in various centers 1255 Building statistics 1219 Italy: Business and financial conditions: Business and financial conditions in 1191,1258 Discussion of 1147,1149,1155 Foreign trade 1231 England 1187,1257 Tariff revision 1191 France 1189,1258 War financing 1177-1185 Germany 1193,1259 Wholesale price index 1225,1227 Italy 1191,1258 Japan: Japan 1260 Business and financial conditions in 1260 Netherlands 1195 Foreign trade 1231 Sweden 1259 Wholesale priceindex 1225 United States 1155 Knit goods production 1221 Letters of credit, application for 1170 Canada, wholesale prices in 1225,1228 Loans, agricultural, by member banks, March 4,1920, and April 28, Charters issued to national banks 1200 1921 1150 Charts: Maturities: Assets and liabilities of Federal Reserve Banks and member Acceptances purchased 1233 banks 1236 Bills discounted and bought 1232,1242 Debits to individual account 1247 Certificates of indebtedness 1242 Foreign exchange 1257 Member banks: Italy's war financing ' 1178,1179 Condition of 1154,1236,1244 Physical volume of trade 1208 Loans by, in agricultural and nonagricultural sections 1150 Wholesale prices in the United States 1201 Number discounting during August 1233 Clearing and collection: Number in each district 1251 Gold settlement fund transactions 1250 State banks admitted to svstem 1198 Operations of the system during September 1251 Money, stock of, in the United States 1254 Number of banks on par list 1251 National banks: Clearing-house bank debits 1247-1250 Charters issued to 1200 Commercial failures reported 1200 Fiduciary powers granted to 1198 Condition statements: Netherlands: Bank of Netherlands and Javasche Bank 1197 Bank of, condition of 1197 Federal Reserve Banks 1236-1242 Business and financial conditions 1195 Member banks in leading cities 1154,1236,1244 Currency circulation 1197 C Cr o e t d to it n , f le ab tt r e i r c s s , o p f, r o a d p u p c li t c io a n ti o a n n d fo s r hipments 1 1 2 1 2 7 0 0 J P a r v ic a e s s c h in e Bank, condition of 1 1 1 1 9 9 5 7 Credit situation, discussion of 1147,1149,1151 Trade balance 1196 Crop estimates 1206 Unemployment 1196 Debits to individual account 1247-1250 Norwav, wholesale prices in 1225,1228 Discount and open-market operations of Federal Reserve O Pa c r e a li n s t f , r e n i u g m ht b r e a r t e o s f . banks on 1 12 2 0 5 6 1 Ba A n c k c s e ptances held 1232-1 1 2 23 3 5 5 P P r h i y c s e i s c : al volume of trade .1207-1219 Acceptances purchased 1233 Credit and prices, discussion of 1152 Bills discounted 1232 Retail, in principal countries 1229 Bills held 1234 Wholesale, abroad 1225-1229 Earning assets held 1234 Wholesale, in the United States 1201,1225 N Re u d m is b c e o r u o n f t s b a o n f k b s i l d ls i s b c e o t u w n e t e in n g F ederal Reserve Banks 1 1 2 2 4 3 2 3 P P u u b b l l i i c c d fi e n b a t n , c I e t a a l n y d credit 1 1 1 1 7 4 9 8 Volume of, during month 1232 Rates: Discount rates: Discount- In effect October 1 1254 In effect Oct. 1 1254 Prevailing in various centers 1255 Prevailing in various centers 1255 England: Earning assets of Federal Reserve Banks 1234 Business and financial conditions 1187,1257 Rediscounts of bills between Federal Reserve Banks 1242 Cost of living 1229 Reserve ratio of Federal Reserve Banks 1154 Foreign trade 1230 Resources and liabilities: Tariff revision 1187 Federal Reserve Banks 1240 Wholesale price index 1225,1226 Member banks in leading cities 1244 Failures, commercial, reported 1200 Netherlands Bank and Javasche Bank 1197 Federal Reserve Banks: Retail prices in principal countries 1229 Condition of 1236-1242 Retail trade, condition of 1221-1223 Discount and open-market operations of 1232 Rulings of the Federal Reserve Board: Federal Reserve note account 1243 Growers' drafts accepted by cooperative marketing associations 1199 Fiduciary powers granted to national banks 1198 Purpose of original negotiation determines eligibility and clas- Foreign exchange, index of 1256 sification of paper 1199 Foreign trade: Silver imports and exports 1153,1253 Index of 1205 State banks and trust companies admitted to system 1198 United Kingdom, France, Italy, Sweden, and Japan 1230 Sweden: Form, letters of credit 1171 Business and financial conditions 1259 France: Foreign trade 1231 Business and financial conditions 1189,1258 Wholesale price index..., 1225,1227 Foreign trade 1230 Tariff revision: Tariff revision 1189 England 1187 Wholesale prices 1225,1227 France 1189 Freight rates, ocean 1206 Germany 1193 " Frozen credit," elimination of 1151 Italy 1191 Germany: Tobacco industry, financing of 1174 Business and financial conditions 1193,1259 Trade: Cost of living 1229 Foreign. (See Foreign trade.) Foreign trade. 1231 Physical volume of 1207-1219 Mark exchange, fluctuations in 1193 Retail, condition of 1221-1223 Tariff revision 1193 Wholesale, condition of 1224 Wholesale price index 1225,1227 WTar loans, Italy / 1181 Gold imports and exports 1153,1252 Wholesale prices: Gold settlement fund transactions 1250 Abroad 1225-1220 Imports and exports: In the United States 1201,1225 Gold. 1153,1252 Netherlands 1195 Silver 1153,1253 Wholesale trade, condition of 1224 I Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

FEDERAL RESERVE DISTRICTS 1 MINNEAPOLIS ATLANTA X s.c , S1 V'1-S ——BOUNDARIES OF FEDERAL RESERVE DISTRICTS BOUNDARIES OF FEDERAL RESERVE BRANCH TERRITORIES ® FEDERAL RESERVE BANK CITIES • FEDERAL RESERVE BRANCH CITIES O FEDERAL RESERVE BANK AGENCY O Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis