Federal Reserve Bulletin, 1923-01

FEDERAL RESERVE BULLETIN (FINAL EDITION) ISSUED BY THE FEDERAL RESERVE BOARD AT WASHINGTON JANUARY, 1923 WASHINGTON GOVEEKMENT PRINTING OFFICE 1923 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

FEDERAL RESERVE BOARD. Ex officio members: , Governor. A. W. MELLON, EDMUND PLATT, Vice Governor. Secretary of the Treasury, Chairman. ADOLPH C. MILLER. D. R. CRISSINGBE, CHARLES S. HAMLIN. Comptroller of the Currency. JOHN R. MITCHELL. W. W. HOXTON, Secretary. WALTER WYATT, General Counsel. W. L. EDDY, Assistant Secretary. WALTER W. STEWART, Director, Division"j)f Analysis and Research. W. M. IMLAY, Fiscal Agent. M. JACOBSON, Statistician. J. F. HERSON, E. A. GOLDENWEISER, Associate Statistician. Chief, Division of Examination and Chief Federal E. L. SMEAD, Reserve Examiner. Chief, Division of Bank Operations. FEDERAL ADVISORY COUNCIL. (For the year 1922.) DISTRICT NO. 1 (BOSTON) PHILIP STOCKTON. DISTRICT NO. 2 (NEW YORK) PAUL M. WARBURG, Vice President. DISTRICT NO. 3 (PHILADELPHIA) L. L. RUE, President. 4 DISTRICT No. 4 (CLEVELAND) C. E. SULLIVAN. DISTRICT NO. 5 (RICHMOND) J. G. BROWN. DISTRICT NO. 6 (ATLANTA) EDWARD W. LANE. DISTRICT NO. 7 (CHICAGO) JOHN J. MITCHELL. DISTRICT NO. 8 (ST. LOUIS) FESTUS J. WADE. DISTRICT NO. 9 (MINNEAPOLIS) G. H. PRINCE. DISTRICT NO. 10 (KANSAS CITY) E. F. SWINNEY. DISTRICT No. 11 (DALLAS) R. L. BALL. DISTRICT No. 12 (SAN FRANCISCO) D. W. TWOHY. n Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

OFFICERS OF FEDERAL RESERVE BANKS. Federal Reserve Bank of— Chairman. Governor. Deputy governor. Cashier. Boston Frederic H. Curtiss. Chas. A. Morss. C. C. Bullen W. Willett. W. W. Paddock... New York., Pierre Jay Ben]. Strong... J. H.Case L. H. Hendricks.1 L. F. Sailer J. D. Higgins.» G. L. Harrison A. W. Gifcart.1 E. R. Kenzel Leslie R. Rounds.' J. W. Jones, i RayM. Gidney.' G. E.Chapin.f Philadelphia. E. L. Austin George W. Norris. Wm. H. Hutt, jr... W. A. Dyer. Cleveland E. R. Faneher M. J. Fleming H. G. Davis. D. C. Wills Frank J. Zurlinden. Richmond. Caldwell Hardy George J. Seay C. A. Peple Geo. H. Keesee. R. H. Broaddus.... A. S. Johnstone2... John S. Walden *... Atlanta.. Joseph A. McCord. M. B. Wellborn. L. C. Adelson M. W. Bell. J. L.Campbell Chicago.. Wm. A. Heath.... J. B. MeDougal. C. R. McKay W. C. Bachman. > S.B.Cramer K.C.Childs.1 John H.Blair J. H. Dillard. 1 D. A. Jones.1 O. J. Netterstrom. 1 A. H.Vogt.i Clark Washburne.1 St. Louis Wm. McC. Martin B.C.] .„ O. M. Attebery J. W. White. W. B. Geery B. V. Moore. Minneapolis.. John H. Rich I R. A. Young S. S. Cook Frank C. Dunlop*. Kansas City.. Asa E. Ramsay W. J.Bailey C. A. Worthington. J. W. Helm. Dallas W. B. Newsome B. A.McKinney. R. G. Emerson R. R. Gilbert. San Francisco John Perrin J. U. Calkins Wm. A. Day W. N. Ambrose. Ira Clerk.* L. C. Pontious8 i 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. Sehneckenburger. Helena branch R. E. Towle. Cleveland: Kansas City: Cincinnati branch.. L. W. Manning. Omaha branch L. H. Earhart. Pittsburgh branch... Geo. DeCamp. Denver branch C. A. Burkhardt. Richmond: Oklahoma City branch C. E. Daniel. Baltimore branch... A. H. Dudley. 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 Frederick Greenwood. Chicago: Salt Lake City branch R. B. Motherwell. Detroit branch R. B. Locke. Seattle branch C. R. Shaw. St. Louis: Spokane branch W. L. Partner. Louisville branch W. P. Kineheloe. Memphis branch J. J. Henin. Little Bock 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. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

TABLE OF CONTENTS. General summary: Page. Review of the month 1 Business, industry, and finance, December, 1922 7 Interbank deposits 25 The first three years of German reparation: Part III—Modifications of the treaty 29 Finance companies 37 Report on stabilization of the mark 45 Official: Rulings of the Federal Reserve Board— Amendment to Regulation B 19 Law department— Petition for rehearing denied in Richmond par clearance case 20 Exercise of fiduciary powers by national banks located in Pennsylvania 20 Right of Federal reserve bank to charge back forged Government check 22 State banks admitted to system 24 Fiduciary powers granted to national banks 24 Charters issued to national banks 24 Election of directors of Federal reserve banks 24 Appointment of Federal reserve agents 25 Business and financial conditions abroad: United Kingdom—The course of prices 50 France—The internal floating debt—Prices 53 Germany—Currency stabilization—Prices—Foreign trade 61 Argentina and Brazil 69,72 Mexico—Recent banking developments 73 Price movement and volume of trade: International wholesale price index—United States, England, France, Canada, and Japan 78 Wholesale prices of individual commodities in the United States 80 Comparative wholesale prices in principal countries 82 Comparative retail prices and cost of living in principal countries 86 Indexes of industrial activity—United Kingdom, France, Germany, Sweden, and Japan 87 Foreign trade of principal countries 89 Foreign trade index 92 Ocean freight rates 93 Report of associated knit underwear manufacturers of America 93 Production and shipments of finished cotton fabrics 94 Physical volume of trade 95 Building statistics 100 Retail trade 101 Wholesale trade 105 Commercial failures 93 Banking and financial statistics: Domestic— Discount and open-market operations of Federal reserve banks 106 Condition of Federal reserve banks 112 Federal reserve note account 116 Condition of member banks in leading cities 117 Savings deposits '. 92 Bank debits 121 Operations of the Federal reserve clearing system 125 Gold settlement fund 127 Gold and silver imports and exports 126 Money in circulation 127 Discount rates approved by the Federal Reserve Board 126 Discount and interest rates in various centers 128 Foreign exchange rates 129 Foreign—England, France, Italy, Germany, Norway, Sweden, Japan, and Argentina 132 Charts: Index of production in basic industries 7 Index numbers of wholesale prices 7 Volume of payments by check 8 Bank credit 8 International wholesale price index—Federal Reserve Board 77 Index numbers of domestic business 95 Monthly sales of department stores and mail-order houses * 101 German mark rate 129 Foreign exchange index 130 IV Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

FEDERAL RESERVE BULLETIN VOL. 9 JANUARY, 1923. No. 1 REVIEW OF THE MONTH. that the upward turn in the demand for credit became manifest through a change in the The year 1922 is significant in the banking volume and character of banking operations. and financial history of the country as marking At that time the commercial loans of member the close of a protracted period banks in industrial and financial centers began Banking and of liquidation. Shortly after to increase after declining for more than 18 credit during 1922. the middle of the year a months, while purchases of securities and renewed demand for credit for loans on stocks and bonds, which had been commercial purposes resulted in increased increasing for a similar period, ceased to borrowings both at member banks and Federal advance. Borrowings by member banks at reserve banks and in an advance of money rates. This turn in the course of credit Federal reserve banks turned sharply upward demand occurring after a year and a half of and the volume of Federal reserve notes in loan liquidation reflects a change in underlying circulation responded to an increased demand. business conditions. In view of the fact that Early in August interest rates on practically the volume of business has been expanding all classes of loans in the New York market continuously for about a year, there is less advanced and the market prices of bonds occasion for surprise in the recent increase in declined slightly; in September rates on the credit requirements than in the fact that bankers' acceptances rose; and throughout the the demand for additional funds was not remainder of the year money rates were felt sooner and on a larger scale. Loan maintained at a somewhat higher level. liquidation indeed continued for almost a Events during recent years throw light year after industrial operations increased in upon the relation between the demand for volume, and the increase in bank loans has bank credit and the general not up to the present been in proportion to Bank credit, pro- trend of business. While not the increased volume of current business duction and prices, all the factors determining transactions. Few questions are of greater credit requirements can be acpractical importance in their bearing upon curately measured, yet a definite sequence of banking policies during the coming year than change in the relationship among certain of the question whether or not this turn from those factors and the general course of busliquidation to loan expansion represents the iness can be observed. In the autumn of 1920 beginning of a definite and continuous upward the volume of loans of member banks and of trend in the demand for credit. Federal reserve banks reached its peak five An advance of money rates during the last months after prices had begun to decline, and quarter of the year, when seasonal requirements nearly a year after industrial activity had for funds are large, is not in itself significant slackened. Similarly, in 1921 the increase in unless accompanied by other changes in the the production of basic commodities preceded banking and business situation. The partic- the rise in prices by six months and antedated ular importance, therefore, of these changes the expansion of commercial loans by a full in credit demands arises from the character year. of coincident changes in other economic The reasons for the lag in the changes in the conditions. It was not until the end of July demand for bank credit behind the changes in 1 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

FEDERAL BESBRVE BULLETIN. JANCABY, 1923. production and prices may be found in the Changes in the volume of bank credit as recharacter of the business situation prevailing lated to the volume of production and the level at the time. In 1920, when prices began their of prices for the years 1919 to 1922 are shown abrupt decline, loans continued to increase, graphically in the following chart. The fluctuchiefly because business concerns were unable ations in production are measured by an index to meet their obligations to the banks and in fact recently constructed by the Federal Eeserve were applicants for additional credit. The Board for the purpose of furnishing a prompt banks in turn, finding their own resources in- indication of change in the physical volume of adequate to meet these demands, borrowed trade. A description of the method of conheavily from Federal reserve banks. Further- struction and a list of the commodities included more, since the early stages of the business were presented in an article published in the reaction came at crop-moving time, the seasonal December, 1922, issue of the FEDERAL RErequirements for currency added to the credit SERVE BULLETIN. The index of bank credit is based on the total loans (including rediscounts) strain, as the additional notes had to be obtained and investments of all member banks. This by member banks through borrowing from the information is available only four times a year, Federal reserve banks. When the course of but the figures are more representative than business turned upward in the latter part of any other figures available of the total volume 1921, the revival of industrial activity enabled of credit extended by member banks. The many borrowers to repay their "frozen" loans, price index is that of the Bureau of Labor the liquidation being facilitated by the in- Statistics, the prices of 1919, for the sake of crease in trade. Member bank funds thus comparability, taken as 100. released were used to reduce their indebtedness with Federal reserve banks. This resulted PER in a continuous reduction of member bank CENT borrowings from the Federal reserve banks 120 until the end of July, 1922. The continued imtmBAMK CfttD'T decline in the volume of borrowing for commer- 100 cial purposes, in spite of a revival in many lines \ *—v PRODUCTION +*-•+ of industry which had been under way for 60 ""•••••"!' »: ^...•-nearly a year, is accounted for partly by the fact 60 that many corporations issued bonds and used the funds secured through their sale to pay off — their bank loans. Another effect of these flotations was seen in the increase of loans 20 secured by stocks and bonds made largely by 0 banks in financial centers. The increase in 1919 1920 1921 1922 these loans preceded the increase in commercial (1919 average-100). Prices.—U. S. Bureau of Labor Statistics index number of wholesale borrowings, partly because of advances made prices. to investors in the new securities, but also be- Production.—Index of production in basic industries; combination of 22 individual series corrected for seasonal variation. cause of the increased activity of the stock Bank credit—Total loans and investments of all member banks on call and bond markets. The fact that during the dates. liquidation business concerns reduced their The chart indicates that the production of inventories and accumulated bank balances basic commodities began to decline in January, was a further cause leading to postponement of 1920, and prices turned downward in the folborrowing. Both on the upward and the down- lowing May, while total loans and investments ward trend of business, therefore, the tendency of member banks continued to advance until has been for the changes in bank credit to lag November. On the upward turn production behind the changes in prices and production. began increasing in July, 1921, six months be- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

JANUARY, 1923. FEDERAL EESERVE BULLETIN. fore prices reached their low point, while the effect of adding to the volume of liquid funds volume of member bank credit continued to available for current operations. decline until March, 1922. Credit extended by banks to the public is The curves differ from each other both with measured by their total loans and investrespect to the dates of their turning points and ments. Between November, Member bank 2, this to the relative extent of their declines and sub- 1Q20 ftnd March 192 and reserve bank , , , , , ., . i, , sequent advances. Prices declined 44.2 per total declined as a net result of cent between May, 1920, and January, 1922; credit loan liquidation accompanied production fell off 35.1 per cent between Janubut not entirely offset by increasing purchases ary, 1920, and July, 1921; while the reduction of investment securities. Except for the high in loans and investments at member banks bepoint reached in March, 1919, when the banks tween November 15, 1920, and March 10, 1922, temporarily held unusually large amounts of was only 9.6 per cent. Since the low points United States securities, the total of securities production has shown the most rapid rate of owned by member banks on June 30, 1922, was advance, the figures for November, 1922, showthe largest ever recorded. The extent to which ing a 55 per cent increase over July, 1921. the purchases of Government and corporate Prices rose 13 per cent between January, 1922, securities by all member banks offset the reducand November, 1922. Ou June iO, 1922, the tion in their loans is shown in the following latest reporting date for all member banks, the table: total of their loans and investments was 4 per [In millions.of dollars.) cent greater than at the low point on March 10, 1922. Investments. Total One reason for the relatively slight extent of loans Other t b h a e n k i n c c r r e e d as it e in in 1 t 9 h 2 e 2 t i o s ta th l at v o i l t u m su e f fe o re f d m o e n m ly b e a r i m n a v e n e n d s ts t- . Loans. Total. U s S e t n t i c a e i u t t s e e r . i s d - s b e t a o i c n e n u d s d r . s islight reduction in 1921 when compared with the decline in prices and production. Also the Nov. 15,1920 25,895 19,941 5,954 2,786 3,168 Mar. 10,1922. 23,404 17,176 6,258 2,755 3,503 relatively lower level of prices has made it June 30,1922 24,344 17,282 7,062 3,247 3,815 possible to finance the steadily expanding volume of production and trade with a smaller Differences in the extent of loan liquidation amount of bank credit in 19-12 than in 1920. and of increase in security holdings are seen On June 30, 1922, the latest date for which between the various classes of banks. Loan information is available for all member banks, reduction and the increase in security holdings loans and investments were only 6 per cent were least at country banks and greatest at below the 1920 peak, while prices were 37 per banks in central reserve cities, but there were cent lower than their high point in 1920. also differences between the banks in invest- Loans and investments for national banks at ment policies pursued in the selection of securithe September 15 call show a reduction since ties purchased; country banks increased their June 30 in central reserve cities and further total holdings of securities and reduced their increases for banks outside those cities. holdings of United States securities, while 'He financing of the larger volume of busi- banks in central reserve cities purchased large ness during 1922 without a corresponding amounts of United States obligations and increase in bank loans was also facilitated by smaller quantities of other securities. The the fact that liquidation continued in some following comparison shows the extent of loan lines of business and released funds for expan- reduction from the peak to the low point for sion in others Also the purchase of securities each class of banks and the change in the charby the banks from their customers had the acter of their investment holdings. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

FEDERAL RESERVE BULLETIN. JANUARY, 1923. [In millions of dollars.] cities declined until the end of July, 1922, deposits began to increase as early as Septem- Investments. ber, 1921. In the financial centers the increase Total loans Other of deposits represented to some extent the and Loans. United bonds invest- Total. States and growth of balances due interior banks, and ments. securi- investties. ments. the use of these balances in the money market was partly responsible for the decline of in- Total, all member banks: terest rates. During the nine months ending Nov.15,1920 25,895 19,941 5,954 2,786 3,168 Mar. 10,1922 23,404 17,146 6,258 2,755 3,503 on June 21, 1922, deposits of member banks Central reserve cities: Nov.15,1920 7,329 6,094 1,235 568 667 in leading cities increased by $1,359,000,000, Mar.10,1922 6,219 4,817 1,402 691 711 Reserve cities: or about 14 per cent, while loans declined Nov.15,1920 8,170 6,434 1,736 777 959 Mar.10,1922 7,347 5,558 1,789 758 1,031 $659,000,000, or about 6 per cent. The rise Country banks: Nov.15,1920 10,396 7,413 2,983 1,441 1,542 in the ratio of deposits to loans from 84 per Mar. 10,1922 9,838 6,771 3,067 1,306 1,761 cent on January 7, 1921, to 102.8 per cent on June 21, 1921, was indicative of the easier All member banks combined, seeking emcredit conditions. This growth of deposits ployment for their excess funds and following during the period of loan liquidation provided their own investment policies, increased their funds with which member banks paid off their holdings of United States securities by over a obligations with the reserve banks and which half billion dollars during the year ended they invested in Government and other June 30, 1922. Even with this increase, howsecurities. ever, their total holdings were approximately $800,000,000 less than on the corresponding Member banks continued to reduce their date three years earlier, and even with the borrowings at Federal reserve banks until the reduction that has taken place in the total of end of July, 1922, when total discounts reached United States indebtedness the percentage of the low point of $380,000,000, a decrease the total outstanding debt owned by member during the first seven months of the year of banks was less on that date than on June 30, $700,000,000. This decline in discounts, how- 1919. A comparison of these figures is pre- ever, did not result in a corresponding reducsented in the following table: tion in total earning assets, since during the same period the reserve banks increased their [In millions of dollars] holdings of United States securities and acceptances by $339,000,000. Throughout the United Total Percent- year a relative stability of the reserve banks' States United age of securities States total debt earning assets resulted from the purchase of owned interest- owned by by all bearing member Government securities and acceptances with member debt out- banks. banks. standing. funds released through the reduction of discounts. At the opening of the year total dis- June 30,1919. 4,037 25,234 16.0 June 30,1920 2,942 24,061 12.2 counts constituted 77 per cent of earning assets June 30,1921 2,661 23,737 11.2 June 30,1922. 3,247 22,711 14.3 and United States securities and acceptances combined, 23 per cent; at the end of July dis- The funds used by member banks during counts had declined to 35 per cent of the earn- 1922 in the purchase of securities arose partly ing assets and United States securities and from loan liquidation and partly from an acceptances increased to 65 per cent; but at the increase in deposits. Early in the liquidation end of the year, as a result of increased borrowperiod the decline in loans was accompanied ing by member banks, discounts increased by a decrease in deposits, but later deposits again to 47 per cent and other classes of assets increased and excess funds accumulated. decreased to 52 per cent. It is doubtless true While the loans of member banks in leading that the purchases of Government securities Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

.7ANUABX, 1923. FEDERAL RESERVE BULLETIix. and acceptances by the reserve banks by in- In spite of this evidence of the operation of creasing available funds in the market were an economic correctives, the steady, though diminindirect influence in making it possible for ishing, stream of gold to our shores continues member banks to reduce their borrowings. to add funds to our domestic supply. In 1921 An important influence on the domestic the imported gold was entirely absorbed by credit situation during the past two years has the reserve banks, whose earning assets declined been exerted by the importa- by nearly $1,000,000,000 more than the stock G.°Vd. impor^ tion of large amounts of gold. of gold increased, indicating that the reduction and the credit ,, , , . , „ of borrowings from the reserve banks had more situation. Net g°ld imports m 1922 than offset the influence of the gold imports amounted to about $225,000,on the total volume of credit. In 1922 the 000, compared with about $667,000,000 in situation was different. While the net impor- 1921. The difference is due chiefly to the tation of gold totaled $225,000,000, the decline fact that nearly all the gold outside of carein earning assets of the reserve banks, measuring fully guarded central reserves and tenaciously the total of reserve bank credit in the market, held private hoards had found its way to the was nearly $100,000,000 less. Available credit United States prior to 1922. Only newly at the disposal of American banks has thus been mined gold was available for export during augmented during the past year by the importhe past year, and its supply was reduced by tation of gold. The persistent import of gold the strike in the Rand. Also the revival of from abroad, in the absence of normal cortrade in India caused a substantial movement rectives, and in conjunction with influences of gold to that country. Toward the end of at work in the domestic credit situation, the year, moreover, gold was exported to makes the problem of credit control in this Canada as the result of the temporary rise of country more than usually difficult. the Canadian dollar above parity. But the further addition to our gold stock, even though smaller than the year before, nevertheless TREASURY FINANCE. exercised a decided effect on domestic credit. In normal times, with the world on a gold Finance operations of the Treasury during basis, a movement of gold into a country im- December were centered around the 15th mediately starts a set of forces in operation of the month, when the fourth installment which soon arrests the current. Interest rates of income and excess-profits taxes fell due. in the importing country decline, exchange The Treasury had called for redemption on that date about $700,000,000 of 4f per cent rates become unfavorable, and gold begins to Victory notes. There also fell due on the move in the opposite direction. But with a free same date about $200,000,000 of Treasury gold market in this country practically alone certificates, the outstanding balance of a and with most of the world's currencies far below total of $443,500,000 of tax certificates their par values, gold has continued to come to issued 12 months and 6J months before. the United States in large amounts, while the Other obligations falling on that date included operation of the normal correctives has been about $100,000,000 for interest on the public slow and uncertain. Still, our price level has debt. advanced and that in England has declined; In order to provide for the immediate cash the rate of sterling exchange has gone up requirements and to cover war-savings cerfrom $4.30 in September, 1921, to $4.61 in tificates to be redeemed in cash at the beginning December, 1922, and the average value of the of 1923, the Treasury issued two series of Treasdollar in the international market has receded ury certificates, one bearing 3£ per cent interest from 167 per cent of par in September, 1921, on and maturing in 3 months and the other bearing the basis of 17 leading currencies, not including 4 per cent interest and maturing in 1 year, and Germany, to 144 per cent in December, 1922. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

6 FEDERAL RESERVE BULLETIN. JANUARY, 1923. a series of Treasuiy notes bearing 4£ per cent lined the purpose of these operations and interest and maturing in 2\ years. The com- described the Government's plan of financing bined offerings of notes and certificates were as follows: for $700,000,000, or thereabouts, with the right With the completion of the December financing, the reserved to the Treasury to allot additional Treasury will thus have provided for most of the shortdated debt maturing this fiscal year. Aside from the notes in exchange for 4f per cent Victory balance of war-sayings certificates that may remain to be notes. Under date of December 19 the Treas- refunded there will only be the issues of Treasury certificates maturing March 15 and June 15, 1923, both covered ury announced that all subscriptions for Treasby the estimated tax payments to be received in those ury certificates of both series and for Treasury months, and the remaining uncalled Victory notes, amounting to about $894,000,000 on November 30, 1922. notes for which 4^ per cent Victory notes or Exchanges of these notes for the new Treasury notes now Treasury certificates had been tendered in offered, and advance redemptions and retirements for the sinking fund and on other accounts, may be expected to payment had been allotted in full, but that reduce the outstanding amount of uncalled Victory notes subscriptions for the Treasury notes had been still further before their maturity. I think you will find it interesting in this connection to allotted in full only up to amounts not know about the improved prospects of the Treasury for exceeding $500,000 for any one subscriber. this fiscal year and the next fiscal year. The budget which was presented to Congress on Monday shows that Allotments on subscriptions in larger amounts according to the latest revised estimates of receipts and were made upon a graduated scale. Aggregate expenditures the deficit for the current fiscal year has already been reduced to about $274,000,000 as compared allotments under the several offerings were with an indicated deficit of about $697,000,000 at the $780,164,100, distributed as follows: Z\ per cent beginning of the fiscal year, and at the same time holds out a real hope that by the end of the year the deficit can certificates, $113,743,000; 4 per cent certificates, be entirely overcome by still further reductions in ex- $197,233,000, and 4£ per cent notes $469,188,- penditure and increases of receipts, arising partly from further realization on Government-owned securities and 100, as against a total subscription of $848,- property and partly from increased collections of customs 387,700, as may be seen from the following table and internal taxes. The actual receipts and expenditures of the Government for the first five months of the current showing the distribution of both subscriptions fiscal year, through November 30, 1922, support these and allotments of the three issues, by Federal estimates. Total ordinary receipts to that date, on the basis of daily Treasury statements, amounted to $1,404,reserve districts: 776,456.64, as compared with total expenditures chargeable against ordinary receipts amounting to $1,514,314,770.80, leaving a deficit for the first five months of only $109,538,- Subscriptions allotted. 314.16. By the end of December this deficit should be overcome by the quarterly payment of income and profits Treasury and Federal S ti u o b n s s c r r i e p - - Treasury Treasury Treasury taxes which falls due in that month, thus leaving a balreserve districts. ceived. notes, series certificates, certificates, anced budget, or perhaps even a small surplus, for the C-1925. series series first six months of the fiscal year 1923. The prospects for TM2-1923. TD-1923. the second half of the year are likewise favorable. The budget estimates for the next fiscal year, 1924, indicate Treasury $163,500 $163,500 a surplus of about $180,000,000, and though it is still too Boston 49,584.700 29,826,800 $13,266,000 $6,248,000 early to forecast the actual results, this indicated surplus N Ph e i w la d Y e o lp rk hia 3 5 7 9 4 , , 2 9 3 9 0 3 , , 4 70 0 0 0 1 4 4 7 7 , , 0 0 6 2 3 1 , , 4 70 0 0 0 69 1 , , 6 6 8 4 2 4 , , 5 0 0 0 0 0 13 4 2 , , 6 2 4 8 1 9 , , 5 5 0 0 0 0 gives some margin to take care of any deficit that may Cleveland 72,622,000 43,673,700 6,313,000 10,559,000 possibly remain at the close of the present year, or, if this Richmond 21,439,600 15,781,600 1,833,000 2,275,000 year closes with a balanced budget or a small surplus, can Atlanta 20,635,400 16,319,900 888,500 3,177,000 Chicago 103,877.500 71,436,100 3,521,000 20,768,000 be applied to the retirement of debt maturing within the St. Louis 30,562,100 24,203,200 945,500 4,846,500 fiscal year 1924. For both years 1923 and 1924 the budget K M a i n n s n a e s a p C o i l t i y s 2 1 5 3 , , 2 97 5 1 6 , , 0 9 0 0 0 0 1 1 1 7 , , 8 9 5 6 2 1 , , 0 0 0 0 0 0 2,1 4 8 9 9 7 , , 5 50 0 0 0 3 1 , , 2 6 1 2 6 1 , ,5 5 0 0 0 0 provides for the regular sinking fund requirements and Dallas... 21,682,300 13,790,800 4,889,500 3,002,000 other public debt expenditures chargeable against ordi- San Francisco 54,368,600 30,094,400 8,073,000 4,588,500 nary receipts, so that any surplus that can be realized in either year will mean additional retirements of debt. Total 848,387,700 469,188,100 113,743,000 | 197,233,000 The Treasury is accordingly financing its December maturities on a short-term basis, believing that the pros- In a letter addressed to the banks of the pects for the next year or two indicate the probability of substantial retirements of early maturing debt out of curcountry on December 7, Secretary Mellon out- rent receipts. 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JANUAKT, 1923. FEDERAL RESERVE BULLETIN. BUSINESS, INDUSTRY, AND FINANCE, DECEMBER, 1922. The volume of production and employment continued upward in November, and prices registered a further advance. Production.—Contrary to the usual trend at this season of the year, productio-n in basic industries in November continued to increase. Since July, 1921, when production was lower than at any time in recent years, there has been an almost uninterrupted rise month by month. The index, illustrated in the chart, in which allowance has been made for seasonal changes, shows that production in basic industries during November was 55 per cent higher than in July, 1921, and 8 per cent higher than in October, 1922. The chief advances from October to November were in mill consumption of cotton, which reached a monthly total exceeded only once since 1917, and in the production of pig iron, which was larger than at any time in the past two years. Building operations were maintained on a large scale, despite the approach of winter. Final estimates for the year placed the yield of all principal crops ahead of 1921, except that of corn, which was unusually, large in 1921. As a result of these larger yields and the higher prices as well, the total farm value of crops grown in 1922, based on prices received at the farm, as of December 1, is estimated to be 25 per cent larger than in 1921, but 17 per cent less than in 1920. Increased production was accompanied by continued heavy freight movement. The total number of railroad cars loaded during November was substantially larger than in the corresponding month of previous years, although 5 per cent less than in October. The decline in the demand for cars and a further decrease in the proportion of cars out of repair have resulted in a considerable reduction in the freight-car shortage. INDEX OF PRODUCTION IN BASIC INDUSTRIES PRICES COMBINATION OF 22 INDIVIDUAL SERIES INDEX NUMBERS OF WHOLESALE PRICES CORRECTED FOR SEASONAL VARIATION U. S. BUREAU OF LABOR STATISTICS 1 P 6 E 0 R r CENT ( rSIS-IOQ) PERC 1 E 1 N 60 T P 3 E 00 R CENT ( l$!3'/0O BASE ADOPTED BY BUREAU) PIRC 1 E 3 M 0 T 0 250 250 ZOO 200 100 60 \ 150 60 60 100 100 50 50 20 LATEST FIGURE LATEST FIGURE NOVEMBER NOVEMBER 1919 1920 1921 1922 1923 1919 1920 1921 1922 1923 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

FEDERAL RESERVE BULLETIN. JANUARY, 1923. VOLUME OF PAYMENTS BY CHECK BANK CREDIT CHECKS DRAWN ON BANKS IN 140 CENTERS, 800 MEMBER BANKS IN LEADING CITIES NEW YORK NOT INCLUDED BILLIONS OF DOLLARS BILLIONS OF DOLLARS BILLIONS OF DOLLARS BILLIONS OF DOLLARS 32 I 1 1 1 I I 32 16 28 28 14 14 *% LOANS AtiD \DISCOUI VTS 24 12 12 DEMAND J £/' 20 / i y rVY 10 10 1. ., 16 V T 8 8 e 6 * 4 mvESnENTS,''"'" 4 T1MC " •' -• DEPOSITS^ , 2 2 LATEST FIGURE LATEST FIGURE NOVEMBER DEC. 13 0 0 1919 1920 19Z1 1922 1923 1919 1920 1921 1922 1923 Demand for labor continued to increase, as shown by the volume of employment at industrial establishments. Local shortages of labor were reported by steel mills, textile mills, and building contractors in eastern districts, but some surplus of common labor was reported from agricultural districts. Wholesale prices.—Wholesale prices advanced during November and reached the highest level since March, 1921. The rise of t\*7o points in the Bureau of Labor Statistics index to 156 was due chiefly to advances in the prices of farm products, foods, and clothing, which rose to the highest point of the year. These advances more than offset the decline in the prices of fuels and metals. Volume of trade.—Wholesale trade in lines reporting to Federal reserve banks was substantially larger during November than in the corresponding month last year. Sales of department stores and mail-order houses during November were also larger than a year ago, and reports of Christmas trade thus far received indicate sales larger than in either 1920 or 1921. The volume of payments by check was 7 per cent smaller in November than in October, due partly to the smaller number of business days, but was 10 per cent larger than in November, 1921. Bank credit.—During the period between November 22 and December 20, Federal reserve banks have been called upon to supply the extra currency needs of holiday trade, and this demand is reflected in an increase of $157,000,000 in Federal reserve note circulation, bringing the total to the highest point for the year. A decline of $43,000,000 in gold reserves is largely due to increased use of gold for currency purposes. The total earning assets of the Federal reserve banks rose during the period $145,000,000, partly in response to the demand for currency and partly in consequence of heavy Government debt operations on December 15. In the four weeks prior to December 13 the loans and investments of member banks in leading cities were little changed, though in the latter part of the period a renewed demand was manifested for commercial loans, offset to some extent by a decline in investments. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

JANUABX, 1923. FEDERAL RESERVE BULLETIN. AGRICULTURE. from previous estimates. Although materially smaller than the average for recent years, the The final estimates of the Department of year's crop is the fourth most valuable ever Agriculture place the crops of wheat, oats, rye, grown. On December 20 the price of middling and barley above those of last year, with subupland at New Orleans was 26 cents, as comstantially increased farm values. Corn, though it amounted to less than last year's bumper Sared with 25.87 cents on November 15. otton ginned prior to December 1 amounted crop, shows a 47 per cent increase in farm to 9,318,144 bales, as compared with 7,639,961 value. Record production was made in rye, bales and 10,141,293 bales during the correwhite and sweet potatoes, and hay. All sponding periods in 1921 and 1920. Stocks crops, based on their farm value December 1, on hand at mills and public warehouses on are worth $7,572,890,000, or $1,842,978,000 November 30 totaled 5,919,520 bales, as commore than their value in 1921. Cotton, topared with 6,948,300 bales a year ago. Inbacco, and grains are enjoying the most satiscreased shipments of cotton abroad during the factory prices, whereas the potato crop, though last few months have been in part responsible considerably larger than last year's, is worth for the gain in total exports. 34 per cent less. The Oklahoma State Board of Agriculture The areas sown to winter wheat and to rye reports an estimated saving to cotton growers this fall were 46,069,000 acres and 5,508,000 of $24,000,000 through the campaign against acres, reductions compared with last year of the weevil during the fall of 1921 and the spring 3.2 per cent and 11.3 per cent, respectively. of 1922. The fight is to be continued through- The condition of winter wheat on December 1 out the cotton regions of the Southwest, and was 79.5, as compared with 76.0 a year ago and similar campaigns are planned against the a 10-year average of 87.9. Drought retarded chinch bug and Hessian fly by bankers and growth and reduced expected acreage of wheat business men cooperating with the farmers. and other fall-sown grains in some sections of district No. 10 (Kansas City). However, in Tobacco. the larger areas of the grain-producing regions, The December estimate places the tobacco where conditions during the fall were favorable crop at 1,324,840,000 pounds, representing a to rapid growth, the wheat has gone into the farm value of $306,162,000. The increased winter in excellent condition. Winter crops value compared with last year is a result both have been making good progress in district of the larger yield and of higher prices which No. 8 (St. Louis) and in district No. 12 (San prevailed m all markets. Total sale for pro- Francisco). Reports from all the cereal-producers previous to December 1, 1922, are estiducing States of the former district show less mated at 166,600,589 pounds—about 51 per Hessian-fly damage than usual, owing to gencent of the estimated production. eral observance of fly-free dates in seeding. The greater portion of the corn crop is housed and Cigar manufacturers in district No. 3 (Philaunusually large quantities are being cribbed for delphia) report a slight seasonal slackening of feeding on farms. demand, but appreciably less than is usual during the month. The holiday business has Grain Movements. been very large, in excess of 1921 according to the majority of cigar makers. Owing to the November grain receipts at 17 interior censmall stocks held by jobbers and dealers, the ters showed the usual seasonal decline, but present rate of production will probably conamounted to 103,497,694 bushels, or 76 per tinue during January, as some manufacturers cent more than a year ago. Receipts of wheat will be glad to accumulate a stock of cigars. totaled 43,779,375 bushels, a decrease of only Prices have remained firm, with slight advances 10 per cent, compared with October, and showed on cigars imported from the West Indies. actual increases at Omaha and St. Louis. Prices of leaf tobacco have also held firm and Corn receipts were 24,021,799 bushels, 66 per range from 15 to 40 per cent higher than last cent above the November average for the years year, with relatively better prices being 1919-1921. Receipts of rye maintained their obtained for common and medium than for unprecedented level and, as a result of largely fine grades. No scarcity of any grade of increased receipts at Chicago, approximated the tobacco except Havana is reported. The October total. quality of Connecticut shade-grown leaf has Cotton. turned out to be much better than was antic- The final estimate of the cotton crop is ipated earlier in the fall, and has been bought 9,964,000 bales, a reduction of 171,000 bales very heavily during the month. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

10 FEDERAL BESERVE BULLETIN. JANUARY, 1933. Fruit. tions, supplies of hay are ample in this district. Shipments of citrus fruit from California The movement of stockers and feeders to the during November, 1922, were slightly greater country is not as heavy as in October, but than during the same month last year. The heavier than a year ago, and demand, espeprice of oranges was considerably lower than cially in the Pacific Northwest, continues to during October or November, 1921, but a gain strength. Broader demand for the better shortage of lemons maintained lemon prices at grades of stocker and feeder cattle was a siga high level. The condition of the fruit in nificant feature of the November trade in dis- Florida has been improved by cooler weather trict No. 11 (Dallas). in recent weeks. There is an active demand MINING. at satisfactory prices, and shipments from Coal. Florida are in excess of those of last year, in Operations at coal mines have been mainspite of continued reports of shortage of retained at a high level ever since September. frigerator cars. The apple crop in district No. November production of bituminous coal totaled 12 (San Francisco) has been unusually slow in 45,262,000 tons, as compared with 45,154,000 coming to market, first on account of car tons in October and 35,955,000 tons in Novemshortage and now because growers are unwillber, 1921. Despite the drastic curtailment for ing to market their fruit at prevailing prices, four months due to the strike, aggregate bituwhich are low as a result of the large supply of minous production has been almost as large apples in the East. in 1922 as in 1921, although much smaller than in other recent years. Production is still much Live stock. hampered by car shortage, particularly in the Movement of live stock to market showed West Virginia and Kentucky fields. The cold the usual seasonal decline, but was very much weather in December brought an active deheavier than during the corresponding period mand for steam coal from large industrial users in 1921. Receipts of cattle and calves, hogs, and also from householders who are unable to sheep, horses, and mules were larger than those secure anthracite. Sales of high volatile gas of last November, but hog receipts alone reg- coals, on the other hand, diminished in the istered an increase over last month. Novem- early part of December, as railroads and public ber receipts of cattle and calves decreased 21 utilities had covered their immediate needs per cent as compared with last month, and re- and shipments through the Lakes were stopped ceipts of sheep decreased 29 per cent, while for the season. As a result of this variation receipts of hogs increased 24 per cent. in demand, district No. 3 (Philadelphia) reports that the price of steam coals increased Improvement in the condition of cattle and about 50 cents a ton during December, while of ranges is reported from all stock-raising the quotations for high volatile gas coals were districts, and was particularly marked in disfrom 25 cents to $1 a ton lower. trict No. 11 (Dallas). A fairly general rainfall in Texas has benefited pasturage, and this Production of anthracite coal amounted to improvement, accompanied by mild weather, 8,385,000 tons in November, as compared with has lessened the necessity for feeding. The 8,530,000 tons in October and 6,859,000 tons condition of live stock in district No. 8 (St. in November, 1921. The mine output in the Louis) is exceptionally good. Reduced re- first two weeks of December was at a slightly ceipts during November at the principal higher rate than in November and is the largest markets in district No. 10 (Kansas City) indi- on record for this season of the year. Car supcate an abatement in the heavy movement of ply has been reasonably adequate, although cattle from the southwest range country. district No. 3 (Philadelphia) reports that the However, the situation is still grave, as the poor condition of cars and locomotives in the rains and snows came too late to benefit the Scranton district has caused some mines to ranges, and the supply of feed grown is insuffi- reduce their output. As a result of the decision cient for the winter. In Oklahoma improved of the United States Supreme Court that the wheat pasture and mild weather have done Kohler Act is unconstitutional, several mines much to counteract the effects of scarce and under the city of Scranton have resumed operahigh-priced feeds. Range conditions in. dis- tions. Some price advances were recorded at trict No. 12 (San Francisco) were greatly im- mines and retail yards during December, but proved by rains and light snows of November these tend to be small on account of the close and early December, and live stock are reported supervision of Government agents. to have entered the winter in good condition. Manufacture of beehive coke expanded 30 Winter feeding has begun and, with few excep- per cent during November, while the output of Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

JANUABI, 1923. FEDERAL RESERVE BULLETIN. 11 by-product plants was 4 per cent larger than in Metals. October. This increased supply is being rapidly The copper market has been strong during absorbed by industrial users, who have been in- December, and prices have shown a distinct creasing their operations, and by retail coal upward tendency. Refined electrolytic copper dealers who are selling it to householders as a delivered at New York was quoted at 14.625 substitute for anthracite coal. The result of cents on December 19, as compared with 13.90 this enlarged demand was the ending of the cents on November 20. This advance in decline in coke prices which had continued for prices is ascribed to a steady decline in the four months and an upward movement in the quantity of surplus metal, to the rise in sterling third week of December. exchange, and to the reported negotiations concerning a loan to Germany. Mine produc- Petroleum. tion of copper totaled 102,593,000 pounds in Average daily production of petroleum con- November, which was 1 per cent less than in tinues to increase and totaled 1,596,000 bar- October, but over four and one-half times as rels in November, as compared with 1,524,000 large as in November, 1921. barrels in October. Stocks of oil at the end of The price of zinc softened considerably in November totaled 275,856,000 barrels, which the last week of November, but showed some was an increase of 1,418,000 barrels for the recovery in December. Lead prices, on the month. The number of new wells completed other hand, were well maintained until the increased from 1,388 in October to 1,450 in third week of December, when imports from November. The number of new wells com- Mexico and Canada caused some weakening pleted in district No. 10 (Kansas City) inin the demand. Production of slab zinc creased by 58 during November, and the daily aggregated 40,200 tons in November, an innew production showed an increase of 16 per crease of less than 1 per cent, while the produccent for the month. Drilling operations, howtion of lead was about 3 per cent greater than ever, showed a slight seasonal decline, from in October. District No. 10 (Kansas City) 2,370 rigs and wells on November 1 to 2,307 on reports that there was a marked improvement December 1. The daily average production in prices of both zinc and lead ores during in the States of Kansas, Oklahoma, Wyoming, Novembe •, which resulted in increased mining and Colorado increased 7 per cent during Nooperations, Shipping facilities have been much vember. Productive activity also increased improved, due to an arrangement with the in district No. 12 (San Francisco). Daily railroads by which coal gondola cars are used average production was 8 per cent larger in to ship metal ore east. November than in October, while new production showed an increase of 16 per cent. Con- Silver production was further curtailed in sumption was slightly higher than in October, November and aggregated 4,869,905 ounces, but stocks showed a further accumulation. which was 6 per cent less than in October and 12 per cent less than the maximum output of The petroleum fields of district No. 11 (Dal- August. Factory consumption of tin was 14 las) report a reduction of activity during per cent less in November than in October. November. The daily average production for the entire district was 7 per cent smaller than MANUFACTURES. in October, most of the curtailment occurring Food products. in the Texas coastal field. The number of Production of wheat flour during November new wells completed decreased by 67 in Novem- amounted to 13,424,000 barrels, compared ber and the initial production was 14 per cent with 13,581,000 barrels in October and 10,166,less. Price advances were reported early in 000 barrels in November, 1921. Production of December in the North Louisiana district, and 11 leading mills in district No. 8 (St. Louis) was the price of Mexia oil was raised from $1.25 385,306 barrels, the largest output for any per barrel to $1.35 per barrel on December 15. month this year, and an increase of 5 per cent There has recently been a considerable de- and of 48 per cent as compared with last cline in the demand for gasoline and asphalt, month and November last year. Demand, but other refinery products are selling well. both foreign and domestic, was very slack, Sales of lubricating oils have been increasing however, until after the first week in Decemsteadily for several months, as a result of ber, when advances in the price of wheat stimimprovement in the general industrial situa- ulated buying. Thirty millers in district No. tion. Demand for kerosene has also been 7 (Chicago) produced 386,195 barrels of flour, strong, as a result of extensive use of small increases of 4.5 per cent and 49 per cent as heating stoves this winter. compared with last month and November, 1921. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

12 FEDERAL RESERVE BULLETIN. JANUARY, 1923. District No. 10 (Kansas City) reports a total November 30, 1921, by 77 per cent and 114 output of 2,014,252 barrels, a decrease of 2.5 per cent, respectively. Production and shipper cent compared with last month, but an ments by the same mills were greater than increase of 27 per cent compared with the cor- during October and from 20 to 50 per cent responding period a year ago. A moderate larger than during November of last year. export demand was reported, but domestic buy- Stocks, on the other hand, were smaller. Reing was curtailed by uncertainty as to delivery ports from finishers of cotton fabrics from and by the approach of the inventory period. various sections of the country indicate that a In district No. 9 (Minneapolis) production of larger volume of business was done in November flour increased from 3,057,988 barrels in Octo- than in October. ber to 3,103,178 barrels in November, which is In woolen textiles, also, production increased 33 per cent larger than last November's output. during November, as indicated by statistics of Fifty packing companies in the United raw wool consumption and of active machinery. States reporting to district No. 7 (Chicago) Woolen spindles were no more active than in show a decrease of 22.4 per cent in dollar sales October, but considerably more so than during compared with October, but an increase of last November. Worsted spindles, on the 16.7 per cent over a year ago. The same con- other hand, continued the recovery from last dition prevails in district No. 10 (Kansas City), spring's slump and were 90 per cent active in reflecting decreased slaughtering operations. November. The greatest improvement oc- Hog purchases by packers, however, were 20.8 curred in loom activity—both the wide and per cent more than during October, and the the narrow looms were over 80 per cent active, largest number purchased in any month since the highest point reached since the spring of June. With wholesale prices of all meats, ex- 1920. The mill consumption of wool during cept lamb, relatively low, the packers report November was 63,313,000 pounds, expressed an increased demand for their products, owing in terms of grease equivalent, showing an into increased employment and improved busi- crease of 6.8 per cent above the figure for ness conditions. Export demand also con- October, and an increase of 18 per cent above tinues active and reduced shipments are the that for last November. District No. 3 (Philaresult of limited supplies. Consigned stocks of delphia) reports that in spite of the usual midlard already abroad continue to decline be- winter lull, evident in December, sufficient cause of the rapidity in the sale of consign- orders had been previously booked by spinners ments on arrival, and unusually heavy demand to keep nearly all available spindles in operfor fats was a feature of the month's trade. ation. Furthermore, finished stocks are low. Cold-storage supplies are lower than they have The raw wool market in district No. 7 (Chicago) been for some months, but stocks of pork and was active during November, but shipments lard at Kansas City showed an increase com- from Chicago were only two-thirds of those of pared with last month and with a year ago. October. Prices of raw wools, particularly the medium grades, and also of yarns, have re- Textiles. mained firm since their recent rise. Although a slight seasonal check has been Deliveries of raw silk to American mills noted in the buying of many textile products, during November, 35,467 bales, although 6 per demand is still good, and production has been cent less than in October, exceeded all figures maintained at a high point. In fact, many recorded for previous months. Imports fell mills throughout the country have been operat- off from the maximum reached in October, but ing night shifts, and the consumption of raw were larger than deliveries, and stocks in warecotton by mills during November totaled houses attained a new high point of 47,159 577,561 bales, which, with the exception of bales. The demand for both broad and thrown January, 1920, is the largest figure attained silk was greater this fall than a year ago, and since November, 1917. Furthermore, the vol- mill production in district No. 3 (Philadelphia) ume of unfilled orders on the books of many averaged about 75 per cent of capacity early in of the mills on November 29 was reported by December. Reports from the Philadelphia districts No. 3 (Philadelphia), No. 5 (Rich- district, however, indicate that there was some mond), and No. 6 (Atlanta) to be sufficient to recession in demand, largely seasonal, after insure production at close to capacity for the November 15. Loom activity among the mills next few months. In the Atlanta district in Paterson was slightly higher on December 16 unfilled orders for goods were smaller than at than on November 18, and in the North Hudson the end of October, but those for goods and section during the same period there was yarns exceeded the corresponding figures for also an increase in operations. The raw silk Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

JANDAHY, 1923. FEDERAL RESERVE BULLETIN. 13 market, according to reports from district No. first quarter of 1923 and of improvement in 3 (Philadelphia), has weakened since November shipping facilities and labor supply. Many 1, and rising prices were halted. Quotations railroad embargoes have been removed, and the on finished goods were also lowered. car supply is more adequate, so that the ac- Seasonal declines occurred in the demand cumulated tonnage in mill yards is being for clothing during November, according to rapidly reduced. The scarcity of common reports from districts No. 2 (New York), No. labor nas been somewhat relieved, due to the 7 (Chicago), and No. 8 (St. Louis). Data from seasonal reduction in farm work, but numerthe New York district indicate that the sales ous wage increases and bonus payments are of women's clothing are relatively better than reported. those of men's apparel, as the former showed Sales of pig iron were heavy during the first an increase of 54 per cent as compared with week of December, and the large demand re- November, 1921, whereas the latter decreased 7 sulted in a rise in price quotations. Foreign per cent. Orders booked, production, and iron continues to be received at Atlantic ports, shipments by seven tailors to the trade in dis- but has not seriously diminished the business trict No. 7 (Chicago) were all less than the of domestic producers. Finished steel products corresponding figures for October, but about are also moving well in district No. 3 (Phila- 70 per cent above those for November of last delphia), although there is some reduction in year. structural steel sales to builders. Orders for Production of underwear by 33 mills during sheets continue to exceed shipments at both November increased 14 per cent as compared Pittsburgh and Chicago, and demand for wire with October. Unfilled orders increased 20 and nails in December were exceptionally large per cent and shipments 15 per cent. Pro- for a winter month. Production, shipments, duction by 49 mills totaled 599,891 dozens, as and new orders of stoves and furnaces in discompared with 702,614 dozens by 57 mills in trict No. 7 (Chicago) declined considerably in November, 1921, giving about the same aver- November, but were each over twice as large age output per mill. Mills in district No. 3 as in November, 1921. November sales of (Philadelphia) reported decreases in produc- agricultural implements were also larger than tion both as compared with October and with in the corresponding month of 1921, although November, 1921. Orders booked for winter only about one-half as large as in October. underwear, however, were over four times as Manufacturers of wire rope, stoves, farm implelarge and unfilled orders were nearly five times ments, railway supplies, and boilers in district as large as a year ago. Shipments were also No. 8 (St. Louis) all reported sales in November larger than during last November. higher than those a year ago, the increases ranging from 18 per cent for boilers to 42 per Statistics showing conditions in the hosiery cent for wire rope. industry in districts No. 3 (Philadelphia) and No. 6 (Atlanta) indicate better business in November than during both October and the Automobiles. preceding November. Fewer orders were Production and shipments of automobiles booked in October by the Philadelphia district failed to show their usual seasonal decline in manufacturers, but as compared with a year November, and have only moderately curago this item doubled in both districts, and the tailed their schedules during the first half of volume of unfilled orders on hand at the end December. The output of passenger cars of the month was larger, although both ship- aggregated 215,408 in November, an increase ments and cancellations have also increased. of 0.6 per cent, while the production of 20,876 trucks was 1.4 per cent greater than the Octo- Iron and steel. ber total. Factory shipments of automobiles The iron and steel industry continues to re- were only slightly smaller than in October and port great activity. Mill operations averaged were twice as large as in November, 1921. about 80 per cent of capacity in the latter part Automobile body manufacturers in district of December, as compared with 70 per cent of No. 4 (Cleveland) report that many orders for capacity a month previously. Production of future shipment are being received, and that Eig iron mounted from 2,638,000 tons in Octo- there is no noticeable decline in factory operaer to 2,850,000 tons in November, while out- tions. Sales of truck manufacturers are quite put of steel ingots increased from 2,872,000 irregular and companies are reducing their tons to 2,889,000 tons. The market for steel production schedules. strengthened during December as a result of a Tire manufacturers are still maintaining steady flow of new orders for delivery in the heavy schedules, as the increased use of closed 25691—23 2 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

14 FEDERAL, BESEBVE BTJLX.ETIN. JANCABY, 1923. cars is resulting in much winter driving, items reached the highest point in over two which is particularly hard on tires. Low tire years, and stocks on hand at the end of Octoprices have reduced the repairing of old tires ber were the smallest recorded in the last four and increased the consumption of tires per car years. The production of all of the important during the past year. grades of paper was considerably larger than during any month of 1921, and all except news- Leather and shoes. print and paperboard exceeded previous figures Prices of Chicago packer hides dropped for 1922. sharply in the first week of December, with the Reports from district No. 3 (Philadelphia) result thai the volume of sales totaled 570,000 indicate a seasonal decline in orders booked in a single week. Calf and goat skins are by paper manufacturers during December, but also lower, although the imports of goat skins most of the mills were operating at capacity from China are unusually small. Prices of New on accumulated orders, and a fairly large num- Zealand sheepskins are still very high and ber of future orders were being received. sales have been curtailed. Wholesalers in district No. 7 (Chicago) report Sole'leather production was 4 per cent less that November sales and stocks on hand at in November than in October, but most of the end of the month were larger than for this difference was due to the greater number November, 1921. Consumption of paper in of working days in October. Both produc- district No. 4 (Cleveland) was large in Novemtion and sales of leather increased in district ber, but orders placed with mills fell off in No. 7 (Chicago) and sales were larger than a December, preceding the merchants' invenyear ago. In district No. 3 (Philadelphia) tory period. sales of most kinds of leather decreased in November, due to the desire to reduce inven- Lumber. tories. Tanners of sheepskins are operating Unusual activity for late fall was noted in their plants at capacity. Hat and chamois the lumber market during November and leather continue to sell freely and demand for early December. With weather favorable for fleshings by glove manufacturers is increasing. construction, with active buying on the part Belting sales declined slightly in November, of railroads, automobile plants, furniture manbut recovered in the early part of December. ufacturers, and other industrial users, and Patent leather and suede leather continue with improved transportation facilities, shipto be in general demand for women's shoes. ments from the mills continued to be large Various designs of cut-outs are the prevailing throughout that period. Although good style feature. Manufacturers in district No. 8 weather permitted production to be main- (St. Louis) report that men's shoes are in tained at a high point, the output of a number better demand than women's, due to uncer- of associations was exceeded by their shiptainty as to spring styles. Shoe production ments. Orders were also received by the mills declined in November, but the daily rate of at a steady rate until the middle of December, production was higher than in October in dis- but about that time some recessions in buying tricts No. 3 (Philadelphia) and No. 7 (Chicago). were reported from various local markets. Reports from 22 retail shoe stores in the Phila- Prices of both the softwoods and the harddelphia district show that sales were slightly woods advanced during the month ending larger in November than in October and that December 15. the rate of turnover during the last five Production during November by 572 mills months was considerably higher than m the totaled 1,235,748,000 feet, as compared with corresponding period of 1921. 1,306,047,000 feet by 564 mills in October and 812,900,000 feet by 475 mills during last Paper. November. Business among the mills of the Production of newsprint during November Southern Pine Association in districts No. 6 totaled 127,983 tons, a decrease of 2 per cent (Atlanta) and No. 11 (Dallas) was particularly from the figure for October and an increase of good during November. Both shipments and 10 per cent above that for November of last, orders booked exceeded production in the Atyear. Shipments exceeded production, and lanta district, and all three of these items were stocks were consequently reduced. larger than the corresponding figures for Octo- October statistics, the latest available for ber and last November. In district No. 7 wood pulp and the other grades of paper, show (Chicago) purchasing of new railroad equipseasonal increases in production, shipments, ment was the feature of the lumber industry and consumption of wood pulp. The last two during November, but the building and indus- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

JANDABT, 1923. FEDERAL RESERVE BULLETIN. 15 trial demand continued to be strong. Western of cars and locomotives, due to a reduction in producers suffered more from transportation the amount of bad-order equipment and to an difficulties than did the mills in the South. increase in the production of new cars and Hence shipments from the associations in dis- locomotives. The number of freight cars trict No. 12 (San Francisco) were curtailed awaiting repairs on December 1 was 226,288, during November, and figures of production which was 9.5 per cent less than on November indicate the usual seasonal declines. All items, 1, and 34 per cent less than the maximum for however, materially exceeded those of Novem- 1922 on August 1. The production of locober, 1921. Unfilled orders of most of the motives in November totaled 159, an increase associations at the end of November were of 9.6 per cent. The volume of unfilled orders fairly large. for locomotives, which has shown an almost BUILDING. uninterrupted growth since January, continued to accumulate. Building operations in November were Car loadings decreased 4.6 per cent in unusually large for that season of the year, November, but this compares with an average due to a marked revival in residential con- decrease of 17.4 per cent from October to struction. The total value of contracts November in the three preceding years. The awarded in seven Federal reserve districts most substantial reductions occurred in the (compiled from statistics gathered by the loadings of ore and of miscellaneous mer- F. W. Dodge Co.) aggregated $219,351,000 chandise. Coke loadings increased 18 per during November, which was only 1.3 per cent and were the largest in the year, while cent less than in October and was 24 per cent loadings of forest products, grain, and coal greater than in November, 1921. Decreases showed less pronounced gains. The loadings from October totals were recorded in the of all the railroad operating groups, except Boston, Philadelphia, Cleveland, and Chicago the Pocahontas, decreased during November. districts, ranging from 0.03 per cent in district The most marked reduction was reported by No. 1 (Boston) to 17.2 per cent in district No. the northwestern railroads and amounted to 3 (Philadelphia). Increases were reported by about 15 per cent. the New York, Richmond, and Minneapolis districts, the largest amounting to 19.5 per TRADE. cent in district No. 2 (New York). The value of residential contracts let increased in Novem- Wholesale trade. ber for all districts, except Philadelphia and Owing to the shortness of the month and a Richmond, and totaled $117,515,000 for the seasonal slackening of buying by retailers in seven Federal reserve districts. Statistics of many lines, wholesale trade was less during number and value of building permits are November than in the preceding month. The published on page 100. recessions in groceries, however, were so small Building material prices continued to rise as to be attributed in most cases to the during November and reached the highest smaller number of business days in November. level since January, 1921. Shipments of The greatest declines in sales below the cement were much smaller than in October October figures occurred in dry goods, shoes, and production was slightly curtailed. Brick and auto supplies. As compared with Nooutput has been very large this fall, and dis- vember, 1921, reports from all districts indicate trict No. 3 (Philadelphia) reports that manu- increases in practically every line. The only facturers have sufficient orders on hand to exceptions were found in the case of shoes and keep plants operating at capacity for several drugs. Sales of the former were smaller than weeks. during the same month last year in districts No. 2 (New York), No. 6 (Atlanta), and No. 7 TRANSPORTATION. (Chicago), but were materially larger in some Traffic congestion was materially relieved of the other districts. Drug sales declined in during November. The average car shortage districts No. 8 (St. Louis) and No. 10 (Kansas in the last week of the month was 133,786 City), but in district No. 2 (New York) were cars, as compared with 179,239 cars in the last larger than for any November of the three week of October. The shortage of box cars preceding years. Trading in hardware and was reduced about 26 per cent, while the furniture snowed increases of from 2 to 25 per cent as compared with November of last shortage of coal cars was reduced over 9 per year, and sales of farm implements more than cent. There was an increase in the supply Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

16 FEDERAL RESERVE BUT.T.ETIN. JANOABT, 1923. doubled in districts No. 10 (Kansas City) and whereas the Bureau of Labor Statistics index No. 11 (Dallas). The dry goods business was showed an increase of 2 points, from 154 in in most instances materially larger than a year October to 156 in November. ago, and groceries were moderately so. The Both indexes, however, showed that almost table on page 105 gives detailed figures of whole- all agricultural products were still increasing, sale trade. particularly wheat and cotton. Coal, coke, and pig-iron prices continued their decline. The Retail trade. rise which has occurred in steel products since Retail distribution during November was in early spring came to an end with a November slightly smaller volume than during October, drop in most items, except rails, which conbut was materially larger than during the tinued to advance. corresponding period last year. The usual It was in the consumers' goods group that decline in November sales of clothing was the main difference between the two indexes partially counteracted by the increases in occurred. The Federal Reserve Board index Christmas buying during the month. Improved showed that this group remained unchanged, employment conditions and generally higher whereas prices of finished goods in the Bureau wages, together with increased distribution of of Labor index as recomputed by the board Christmas savings funds have been contribute showed an increase of 3 points. ing factors in the larger volume of holiday The movement of food prices was mainly uptrade this year. Although utility goods are ward—flour, sugar, coffee, tea, butter, eggs, still in the greatest demand, a marked increase and apples increasing. There were also inin purchases of luxuries is reported. A survey creases in the prices of cotton and woolen of department store sales during the first 14 cloths. days of December, 1922 and 1921, made by the The groups of the Bureau of Labor Statistics Federal Reserve Bank of New York, shows an index moved as follows: Farm products up 5 increase of 8 per cent over last year, the same points, cloths and clothing up 4 points, foods, as the November percentage of increase over chemicals and drugs and house furnishings up the corresponding period in 1921. This would 3 points each, bunding materials and miscelindicate that holiday sales have increased in laneous commodities up 2 points, fuel and lightabout the same proportion as ordinary sales. ing down 8 points, and metals and metal prod- As compared with last month, department store ucts down 2 points. sales decreased in districts No. 2 (New York), No. 6 (Atlanta), No. 9 (Minneapolis), No. 11 (Dallas), and No. 12 (San Francisco). In- COMMERCIAL FAILURES. creased sales as compared with last November were reported in all Federal reserve districts Commercial failures during November were except district No. 9 (Minneapolis). Increases fewer in number, and the liabilities involved ranged from 0.4 per cent in district No. 11 were less than during November, 1921. A sea- (Dallas) to 16 per cent in districts No. 4 sonal increase over the October data occurred (Cleveland) and No. 7 (Chicago). Stocks in both items. The figures are still rather large increased during the month in all districts as compared with those of 1920 and prior years, except No. 5 (Richmond), No. 10 (Kansas but are well below the average for the early City), and No. 11 (Dallas). Compared with the months of this year. Liabilities for all discorresponding date last year, stocks were tricts during November totaled $40,265,297, smaller in all districts except No. 1 (Boston), showing an increase of 16 per cent over the No. 2 (New York), No. 5 (Richmond), and October figure and a decline of 25 per cent be- No. 9 (Minneapolis). The rate of turnover low that of last November. Liabilities were continues to increase, while the ratio of out- smaller than during October only in districts standing orders to purchases for 1921 dropped No. 1 (Boston), No. 9 (Minneapolis), and No. from 8.2 to 7.4 during November. 10 (Kansas City). As compared with a year ago, they were larger in districts No. 1 (Boston), No. 2 (New York), No. 3 (Philadelphia), and PRICES. No. 8 (St. Louis). The greatest increase There were varying indications of the trend within the past year was 24 per cent in district of wholesale prices in the United States during No. 2 (New York), and the greatest decline, November. According to the index of the amounting to 68 per cent, occurred in district Federal Reserve Board prices fell 1 point, No. 10 (Kansas City). Other large decreases in liabilities were 48 per cent in district No. 6 from 165 in October to 164 in November, Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

JANDAEI, 1923. FEDERAL RESEEVE BULLETIN. 17 (Atlanta), 63 per cent in district No. 9 (Minne- and of cabinet makers and woodworkers, apolis), and 61 per cent in district No. 11 while factories manufacturing textiles, paper (Dallas). It will be noted that the four above- boxes, and tobacco reported a shortage of mentioned districts are all in agricultural sec- female workers. The demand for common tions. The number of failures exceeded the labor far exceeds the supply. The Pennsylcorresponding data for November, 1921, only vania State Department of Labor reports in districts No. 1 (Boston), No. 8 (St. Louis), that there were further reductions in unemand No. 12 (San Francisco). The number for ployment in the cities of eastern Pennsylvania all districts totaled 1,737 during November, m the first half of December, which averaged 1,708 during October, and 1,988 during Novem- about 30 per cent. Shortages of car builders, ber, 1921. Detailed figures are given in the machinists, and other classes of steel workers table on page 93. were reported from district No. 4 (Cleveland) during November. Brick manufacturing plants EMPLOYMENT. were operating at close to capacity, and rubber and farm implement factories were unusually Industrial concerns in all parts of the United active for the fall season. States reported further increases in numbers Cotton mills in district No. 5 (Richmond) of employees during November. The United made further additions to their forces in No- States Employment Service reports that 1,428 vember. There were also increases in number firms added 44,653 employees in November, of employees at establishments manufacturing as compared to an increase of 52,867 employfood, metal products, tobacco, lumber, and ees in October. In the three months period fertilizer. A considerable supply of common ending November 30 these concerns increased labor is available as a result of the seasonal retheir forces by 126,188, or about 8 per cent. duction in agricultural activity. Textile mills, Increases were reported in November by 12 lumber mills, and coal mines in district No. 6 of the 14 major industrial groups, and the (Atlanta) continued to increase the number of only serious reduction occurred at plants their employees during November. There is manufacturing stone, clay, and glass products. some surplus of labor in Florida, as many tran- The eastern industrial districts report a strong sient workmen have arrived recently from demand for many types of skilled labor and other States. for common labor, whereas the agricultural Eeports from 162 firms in district No. 7 districts report a growing surplus of common (Chicago) showed an increase of 2.2 per cent labor. in number of employees. There was a de- Employment in the textile and shoe facto- crease of 0.9 per cent in the average pay per ries of district No. 1 (Boston) increased sub- worker during November, due to an mcrease stantially in November. The construction in the proportion of unskilled workers. The industry continued to be active, and shortages chief gains in employment occurred at metal of craftsmen were reported from many parts mills and at tanneries. Seasonal reductions in of the district. There was also a serious employment were reported by tailoring estabshortage of metal and machine workers in lishments and manufacturers of knit goods and Connecticut, but the machine factories of apparel. In district No. 8 (St. Louis) employother New England States were working at ment at shoe factories and meat-packing considerably less than capacity. Jewelry and establishments reached in November the silverware factories continued to be operated highest total for the current year. Railroads, at capacity, and chair and cordage factories lead and zinc mines, and steel mills also inwere working overtime. In district No. 2 creased their forces. Flour mills have reduced (New York) unemployment has practically the number of their employees in both the St. ceased, due to increases in employment in Louis and Minneapolis districts, due to a almost all reporting lines. The New York shortage of shipping facilities. Many agricul- State Department of Labor reports that tural laborers m district No. 9 (Minneapolis) the number of workers at reporting establish- have been employed at lumber camps since the ments increased 2 per cent in November. In close of the harvest. Plants manufacturing New Jersey all skilled silk workers are now building materials and mining machinery in fully employed and there is a general shortage district No. 10 (Kansas City) increased their of building mechanics. A rather general labor forces in November and are now operating at shortage developed during November in dis- capacity. Sugar factories and farms, on the trict No. 3 (Philadelphia). There was a other hand, are releasing a considerable number scarcity of male workers in the building trades, of workers. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

18 FEDERAL RESERVE BULLETIN. JANUARY, 1923. Textile mills, metal factories, railroad shops, [In thousands of dollars.l and oil companies in district No. 11 (Dallas) increased the number of their employees during Excess of November. Surpluses of building craftsmen Imports. Exports. imports. and of common labor were reported. A surplus of unskilled labor has also developed in Aug.1, 1914, to Dec. 31,1918 1,776,616 705,210 1,071,406 1 to Dec. 31,1919.. . 76,534 368,185 i 291,651 many sections of district No. 12 (San Fran- 1 to Dec. 31,1920 417,068 322,091 94.977 Jan 1 to Dec. 31,1921... B91.248 23,891 667,357 cisco), on account of the seasonal decline of Jan. 1 to Nov. 30,1922 248,730 34,165 214,565 agricultural work and fruit canning. Lumber Total 3,210,196 1,453,542 1,756,654 mills in California report some shortage of labor, while those in Washington are reducing i Excess of exports. their forces. Both silver imports, $5,855,000, and silver exports, $6,599,000, were larger in November FOREIGN TRADE. than in October and were in excess of the aver- A further increase during November in the age for the preceding 10 months. Silver imvalue of goods exported from the United States ports for the month came largely from Mexico brought the figures for that month to the high- and Canada, while silver exports were conest level reached since March, 1921. The No- signed largely to the Far East and England. vember total of $383,000,000 represents an in- Figures for the 11 months of the present year crease of $12,000,000 over the preceding month show net silver imports of $7,065,000, comand of $89,000,000 over November, 1921. pared with net imports of $13,296,000 for the Compared also with the monthly average of corresponding period in 1921, but as against $311,000,000 during the first 10 months of 1922, large excesses of exports for the corresponding the latest export figures are distinctly favorable. periods in 1918 and 1919, when large amounts For the 11 months ending with November the of silver were shipped to India and China, and 1922 total is somewhat lower than for the same as against normal moderate excesses of exports period of 1921, but is approximately 55 per cent for the pre-war years. This change is due to higher than for 1913. Import figures are not the working of the Pittman Act, under which yet available for October or November, 1922, the Government has purchased, at a fixed rate on account of delavs in compiling the reports of $1 per ounce, practically the entire silver since the new tariff law went into effect. output of the country. In view of the much lower price of silver prevailing in the international market, no silver of domestic extrac- GOLD AND SILVER MOVEMENTS. tion has been exported during the past two years. On the other hand, some silver of for- Net gold imports for November, $14,877,000, eign origin has been used in the domestic arts, show a considerable increase over the correand this accounts for the excess of silver sponding October figure of $3,274,000, though imports over exports shown for the present falling below the average of about $20,000,000 year and for 1921. for the preceding 10 months. Of the gross gold imports of $18,308,000 for the month, $11,763,- Net exports of silver since August, 1914, 000 came from England, $1,911,000 from totaled $436,196,000, as may be seen from the France, and $1,368,000 from China. Smaller following exhibit: amounts of gold imports for the month, all below $1,000,000, are credited to Canada, Mexico, [In thousands ol dollars.] and Egypt. Of the gold exports for November about 64 per cent, or $2,193,000, were consigned to Canada, considerable shipments going Imports. Exports. E e x x c p e o s r s t s o . f also to Colombia and Hongkong. Net gold imports for the 11 months ot the present year Aug. 1, 1914, to Dec. 31,1918 203,592 483,353 279,761 Jan. 1 to Dec. 31,1919 89,410 239,021 149,611 totaled $214,565,000, compared with $637,853,- Jan. 1 to Dec. 31,1920 88,060 113,616 25,556 000 for the corresponding period in 1921. Jan. 1 to Dec. 31,1921 63,242 51,575 '11,667 Ian. 1 to Nov. 30,1922 62,959 55,894 >7,065 Net imports of gold since August 1, 1914, totaled $1,756,654,000, as shown in the follow- Total 507,263 943,459 136,196 ing exhibit: 1 Excess of imports. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

JANOABY, 1923. FEDERAL RESERVE BUI/LETIN. 19 RULINGS OF THE FEDERAL RESERVE BOARD. Amendment to Regulation B. REGULATION B, SERIES OF 1922. On December 19, 1922, the Federal Reserve (Superseding Regulation B of 1921.) Board transmitted to Federal reserve banks its OPEN MARKET PURCHASES OF BILLS OF EX- Regulation B, Series of 1922, superseding CHANGE, TRADE ACCEPTANCES, AND BANKERS' Regulation B, Series of 1921. The board's ACCEPTANCES UNDER SECTION 14. letter of transmittal and the amended regula- I. General statutory provisions. tion are set forth below: Section 14 of the Federal reserve act provides that Federal reserve banks under rules and regulations to be prescribed by the Federal Reserve Board may purchase and WASHINGTON, December 19, 1922. sell in the open market, at home or abroad, from or to do- The Federal Reserve Board transmits herewith its mestic or foreign banks, firms, corporations, or individuals, Regulation B, Series of 1922, superseding Regulation B, bankers' acceptances, and bills of exchange of the kinds Series of 1921, relating to open-market purchases by and maturities made eligible by the act for rediscount, with or without the indorsement of a member bank. Federal reserve banks of bills of exchange, trade acceptances, and bankers' acceptances under section 14 of the II. (leneral character of bills and acceptances eligible. Federal reserve act. The Federal Reserve Board, exercising its statutory right This new regulation is issued for the purpose of per- to regulate the purchase of bills of exchange and acceptmitting Federal reserve banks until further notice to ances, has determined that a bill of exchange or acceptpurchase in the open market, with or without the in- ance, to be eligible for purchase by Federal reserve banks under this provision of section 14, must have been acdorsement of member banks, bankers' acceptances with cepted by the drawee prior to such purchase unless it is maturities not in excess of six months which are drawn either accompanied or secured by shipping documents or by growers, or by cooperative marketing associations com- by warehouse, terminal, or other similar receipt conveying posed exclusively of growers, of nonperishable, readily security title or bears a satisfactory banking indorsement, and must conform to the relative requirements of Regulamarketable, staple agricultural products, to finance the tion A, except that— orderly marketing of such products grown by such growers (a) A banker's acceptance growing out of a transaction and secured at the time of acceptance by warehouse, involving the importation or exportation of goods may be terminal, or other similar receipts issued by parties in- purchased if it has a maturity not in excess of six months, dependent of the borrowers and conveying security title exclusive of days of grace, provided that it conforms in other respects to the relative requirements of Regulation to such products. This purpose is effected by the addi- A; tion of a new paragraph at the end of Part II of said regula- (6) A banker's acceptance growing out of a transaction tion, and the addition of this paragraph constitutes the involving the storage within the United States of goods only amendment to the regulation. actually under contract for sale and not yet delivered or paid for may be purchased, provided that the acceptor is The board was moved to take this action by a desire to secured by the pledge of such goods; and provided further, provide more ample facilities for financing the orderly that the acceptance conforms in other respects to the relative requirements of Regulation A; and marketing of staple agricultural products, especially by (c) A banker's acceptance drawn by a grower, or by a cooperative marketing associations. This is in accord- cooperative marketing association composed exclusively ance with the principle heretofore recognized by the of growers, of nonperishable, readily marketable, staple board that the carrying of agricultural products for such agricultural products, to finance the orderly marketing of periods as are reasonably necessary in order to assist the such products grown by such grower or growers and secured at the time of acceptance by a warehouse, terminal, or orderly marketing thereof is a proper step in the process other similar receipt, issued by a party independent of of distribution. There is a material distinction, however, the borrower and conveying security title to such products, between carrying agricultural products for such periods as may be purchased if it has a maturity at the time of purare reasonably necessary to effect orderly marketing, and chase not in excess of six months, exclusive of days of grace; provided, that the acceptor remains secured mere speculative withholding from the market in the hope throughout the life of the acceptance, and that the acceptultimately of obtaining a higher price. Before pu chasing ance conforms in other respects to the relevant requiresuch acceptances, therefore, Federal reserve banks should ments of Regulation A. assure themselves that the agricultural products underlying III. Statements. the transaction are not being held for speculation but are A bill of exchange, unless indorsed by a member bank, being marketed in an orderly manner or stored as part of is not eligible for purchase until a satisfactory statement the process of orderly marketing. Care should also be has been furnished of the financial condition of one or exercised by Federal reserve banks in purchasing accept- more of the parties thereto. ances of long maturities, in order that the liquidity of A banker's acceptance, unless accepted or indorsed by a member bank, is not eligible for purchase until the acthe aggregate investments held by them should not be ceptor has furnished a satisfactory statement of its financial affected. condition in form to be approved by the Federal reserve bank and has agreed in writing with a Federal reserve By order of the Federal Reserve Board. bank to inform it upon request concerning the transaction WH. W. HOXTON, Secretary. underlying the acceptance. 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20 FEDERAL RESERVE BULLETIN. JANUARY, 1023. LAW DEPARTMENT. Petition for rehearing denied in Richmond par clearance I merged corporation Corn Exchange National Bank has case. been approved by this court for appointment as a fiduciary. The Supreme Court of North Carolina, on The award to the Turner minors will therefore be macle subject to the merged corporation being approved, and in December 13, 1922, dismissed the petition of the event of their failing to obtain the approval of this the plaintiffs for a rehearing in the case of court, the award will be payable to a succeeding guardian Farmers & Merchants Bank et al. v. Federal when duly appointed and' qualified." Reserve Bank of Richmond, 112 S. E. 252, Accordingly the bank then filed a petition drawn purand has reaffirmed its former decision dis- suant to the proper rule of court, setting forth its incorporation under the national banking law, various facts conmissing the injunction issued by the lower cerning its management and assets, and the consolidation court against the Federal Reserve Bank of with the Rittenhouse National Bank, formerly the Ritten- Richmond and declaring unconstitutional the house Trust Co.; that it was authorized by*the Federal act of the Legislature of North Carolina ratified Reserve Board to transact a general fiduciary business; had complied with the law of Pennsylvania governing the February 5, 1921, which sought to authorize transaction of such business; had accepted the provisions State banks to impose exchange charges on, of the act of May 9, 1889, P. L. 159, and also of the act of and remit by exchange drafts for, checks for- May 20, 1921, P. L. 991, making itself subject to superwarded through Federal reserve banks. vision and examination by the Banking Department of Pennsylvania the same as corporations of Pennsylvania. The court dismissed the petition by a mere A number of evidential exhibits were attached to the petimemorandum decision and did not modify or tion, among them a stipulation under rule 21, by which the supplement its former opinion, which was pub- applicant "hereby stipulates and undertakes irrevocably that securities and other property received by the corporalished in the FEDERAL RESERVE BULLETIN for tion both in a fiduciary capacity and from the person or June, 1922 (page 175 of the short edition and persons for whom it is surety shall not be taken out of the page 701 of the final edition). jurisdiction of the court and shall be kept separate and apart from all money, securities, and property of the said bank so that the same can at all times be easily identified Exercise of fiduciary powers by national banks located in as belonging to the estate of the person or persons for whose Pennsylvania. account the same has been received, and that the trust Below is the opinion of the Superior Court funds received by said bank, either as fiduciary or for the of Pennsylvania rendered November 23, 1922, person or persons for whom it is surety, shall be deposited in a separate account in a bank or banks or trust company in the case of the Estate of Edna Frisbie or trust companies other than said Corn Exchange National Turner, upholding the right of national banks Bank of Philadelphia, of good standing in Philadelphia to act in fiduciary capacities in the State of County." Pennsylvania: On the same day the petition was refused for reasons previously given in the case of the National Bank of IN THE SUPERIOR COURT OF PENNSYLVANIA. Germantown (supra). From that refusal this appeal to No. 232, October term, 1922, was taken. Estate of Edna Frisbie Turner. Nos. 232, 233, 234, Octo- Three days later, the bank, as guardian of the estates of ber term, 1922. Appeals of Corn Exchange National the children, filed another petition setting forth that pur- Bank of Philadelphia, individually and as guardian of suant to "the adjudication of the executors' account," estates of Dudley B. Turner, jr., and Edna Frisbie its petition for approval as fiduciary under rule 21 had Turner, minors, from decree of Orphans' Court of Phila- been filed and dismissed; that it was advised by counsel delphia County. Nos. 99 and 100. Filed Nov. 23, 1922. that by specified acts of Congress with the approval of the Opinion by LINN, J.: Federal Reserve Board, it was authorized to transact a This appeal challenges the refusal to approve a national fiduciary business, and having accepted the provisions of bank as a fiduciary. Approval was denied on the single applicable State law specified, it was "fully qualified and ground that the Federal legislation conferring fiduciary authorized to continue to act as guardian of the estates of powers on national banks is "in contravention of the law Dudley B. Turner, jr., and Edna Frisbie Turner, minors, and.established practice of this Commonwealth." and in all other fiduciary capacities, and that the dismissal The question arose in distributing the estate of Edna of the petition for approval under Rule 21 was without Frisbie Turner, deceased, letters testamentary having been legal justification or authority." Petitioner asked for an granted in 1920. Her minor children were beneficiaries order directing the executors to pay to it as guardian of the under her will. In 1921 the court below appointed the estate of the minors, the money awarded to them by the Rittenhouse Trust Co., a corporation of Pennsylvania, adjudication. By supplemental adjudication, this petiguardian of the estates of the minors. On May 3, 1922, tion was dismissed for the reasons previously given. Exthe account of the executors came on for adjudication. ceptions to these adjudications were then filed; after they It showed a balance for the minors. The executors' peti- were dismissed, two appeals were taken, one by the bank tion for distribution stated that since its appointment as as guardian, the other individually (Nos. 233 and 234, guardian the Rittenhouse Trust Co. was converted into a October term, 1922). The appeals were argued together national bank, and, thereafter was consolidated into the and shall be so disposed of. Corn Exchange National Bank. Distribution to the bank, As no particular or special objection to petitioner is as guardian, was therefore asked. made, we need consider in the light of the record the prob- In referring to the subject, the auditing judge said: " In lem as thus stated by the court below: "The question is, the matter of the National Bank of Germantown, 30 Dis- therefore, raised as to whether this court should approve trict Rep. 603, it appears that this court has refused to them (national banks) ior appointment in fiduciary capaci1recognize or approve national banks for appointment as ties and accept them as surety. We should approve them fiduciaries by this court. It does not appear that the unless the Federal acts are in contravention of the law and Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

JANUAB5T, 1923. FEDERAL BESERVE BULLETIN. 21 established practice of this Commonwealth:" In re Na- or trust officer of such national bank may take the necestional Bank of Germantown, 30 District Reports, 603. sary oath or execute the necessary affidavit. The act of Congress approved December 13, 1913, "It shall be unlawful for any national banking associaenacted that "The Federal Reserve Board shall be tion to lend any officer, director, or employee any funds authorized and empowered * * * (k) to grant by held in trust under the powers conferred by this section. special permit to national banks applying therefor when Any officer, director, or employee making such loan, or to not in contravention of State or local law, the right to act whom such loan is made, may be fined not more than as trustee, executor, administrator, or registrar of stocks $5,000 or imprisoned not more than five years, or may be and bonds under such rules and regulations as the said both fined and imprisoned, in the discretion of the court. board may prescribe" (c. 6, sec. 11, par. k. 38 Stats. 251; "In passing upon applications for permission to exercise U. S. Comp. Stats. 1918, s. 9794). Later some definition the powers enumerated in this subsection, the Federal of the words "In contravention of State or local law" Reserve Board may take into consideration the amount became desirable, and was supplied by an amendment of of capital and surplus of the applying bank, whether or September 26, 1918 (40 Stats. 967, U. S. Comp. Stats. 1918 not such capital and surplus is sufficient under the cir- Suppl. 9497 k). It was as follows: "(k) To grant by cumstances of the case, the needs of the community to be special permit to national banks applying therefor, when served, and any other facts and circumstances that seem not in contravention of State or local law, the right to act to it proper, and may grant or refuse the application accordas trustee, executor, administrator, registrar of stocks and ingly; provided, that no permit shall be issued by any bonds, guardians of estates, assignee, receiver, committee national banking association having a capital and surplus of estates of lunatics, or in any other fiduciary capacity in less than the capital and surplus required by State law of which State banks, trust companies, or other corporations State banks, trust companies, and corporations exercising which come into competition with national banks are such powers." permitted to act under the laws of the State in which Since Congress has provided that if the State law authorthe national bank is located. ize or permit the exercise of * * * (guardianship) "Whenever the laws of such State authorize or permit by State banks, trust companies, or other corporations the exercise of any or all of the foregoing powers by State which compete with national banks, ' 'the granting to and banks, trust companies, or other corporations which the exercise of such powers by national banks shall not be compete with national banks, the granting to and the deemed to be in contravention of State or local law within exercise of such powers by national banks shall not be the meaning of this act," the decision of these appeals deemed to be in contravention of State or local law within must depend on whether Pennsylvania permits such comthe meaning of this act. peting corporations to act in that capacity; if the State "National banks exercising any or all of the powers law so provides, the national bank must be permitted to enumerated in this subsection shall segregate all assets enjoy fiduciary powers. As familiar State laws confer that held in any fiduciary capacity from the general assets of power on such corporations, the learned court below misthe bank and shall keep a separate set of books and records interpreted the acts of Congress in holding them to be in showing in proper detail all transactions engaged in under contravention of the State law. authority of this subsection. Such books and records The Federal legislation is constitutional, First National shall be open to inspection by the State authorities to the Bank v. Fellows, 244 U. S. 416, and the congressional same extent as the books and records of corporations orgau- power is plenary. Except as Congress permits, a State ized under State law which exercise fiduciary powers, can not stand in the way of corporate activity so authorbut nothing in this act shall be construed as authorizing ized by Congress; such authority confers immunity from the State authorities to examine the books, records, and State interference, legislative or judicial; N. P. R. Co. v. assets of the national bank which are not held in trust North Dakota, 250 U. S. 135, and Telephone Co. v. South under authority of this subsection. Dakota, 250 U. S. 163; Second Employers' Liability cases, "No national bank shall receive in its trust department 223 U. S. 1; P. & R. Rwy. Co. v. Polk, 256 U. S. 332,335. deposits of current funds subject to check or the deposit The effect of the amendment of 1918 on the act of 1913, of checks, drafts, bills of exchange, or other items for col- as a mere rearrangement of the words will show, was to lection or exchange purposes. Funds deposited or held authorize the Federal Reserve Board to grant by special in trust by the bank awaiting investment shall be carried permit to national banks applying therefor (having the in a separate account and shall not be used by the bank required "capital and surplus," supra), the right to act in in the conduct of its business unless it shall first set aside any fiduciary capacity in which State banks or other corpoin the trust department United States bonds or other rations which come into competition with national banks securities approved by the Federal Reserve Board. are permitted to act under the laws of the State in which "In the event of the failure of such bank the owners of the national bank is located, whenever the laws of such State the funds held in trust for investment shall have a lien on authorize or permit the exercise of any or all such powers by the bonds or other securities so set apart in addition to State banks or other corporations competing with national their claim against the estate of the bank. banks. The congressional definition or determination of "Whenever the laws of a State require corporations what shall not be considered in contravention of State law, acting in a fiduciary capacity to deposit securities with for the purposes of the enactment, takes no account of the the State authorities, for the protection of private or court fact that details of administration in the Federal system trusts, national banks so acting shall be required to make may or may not differ from administrative matters presimilar deposits and securities so deposited shall be held scribed in the State system. Congress was the sole judge for the protection of private or court trusts, as provided by of the means appropriate to the end to be accomplished the State law. by the exercise of this additional power conferred on "National banks in such cases shall not be required to national banks; Congress knew that throughout the States execute the bond usually required of individuals if State widely divergent systems of fiduciary law prevailed. The corporations under similar circumstances are exempt from administrative differences in which the court below found this requirement. decisive conflict between State and Federal law may be "National banks shall have the power to execute such important elements in the competition for business and bond when so required by the laws of the State. in the market may or may not operate in favor of the State "In any case in which the laws of a State require that a corporations, but these differences in themselves are not corporation acting as trustee, executor, administrator, or sufficient to deprive a national bank of the enjoyment of in any capacity specified in this section, shall take an oath fiduciary powers, and particularly is that so in the circumor make an affidavit, the president, vice president, cashier, stances disclosed by this record. See First National Bank Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

22 FEDERAL RESERVE BULLETIN. JANUARY, 192.'i. v. Fellows (supra); People v. Russell, 283 111. 520, compared The orders appealed from are reversed and the record with the prior decision of the same court in People v. remitted with instructions to enter an order consistent, Brady, 271 111. 100; Woodbury's Appeal, 78 N. H. 50w;ith this opinion. Hamilton v. State, 94 Conn. 648; Stanchfield's estate, 171 Porter, J., dissents. Wis. 553; In re Mollineaux, 179 N. Y. Supp. 90; Fidelity, Gawthrop, J., did not hear the argument and did not etc., Trust Company v. Enright, 264 Fed. 236. participate in the decision. The first reason given to support its conclusion that the Federal statute was in contravention of the State law was based on comparison of provisions of the two Bystems Right of Federal reserve bank to charge back forged concerning the deposit of trust funds. The Federal pro- Government check. vision has been quoted. For the State, the acts of May 9, Below is printed the opinion of the Circuit 1889, P. L. 159, and June 27, 1895, P. L. 402, provide that Court of Appeals for the Second Circuit, such "companies shall keep all trust funds and investrendered October 31, 1922, by Hon. Martin T. ments separate and apart from the assets of the companies, and all investments made by the said companies as fidu- Manton, circuit judge, in the case ofCloster ciaries shall be so designated as that the trust to which National Bank v. Federal Reserve Bank of such investments shall belong shall be clearly known." New York, upholding the right of the Federal In addition, we are advised the State banking department reserve bank to charge to the member bank the requires trust funds to be deposited in a separate bank. The acts of Congress and the State laws are not alike, but amount of a check on the Treasurer of the a difference in permitted corporate management does not United States, returned by the Treasury establish that the Federal statute is in contravention of Department because of forgery. the State law in the light of the explicit congressional The Federal Reserve Bank of New York definition of those words, and the difference is further unimportant in the decision of this case, because the record received for collection from the Closter National shows that petitioner has agreed to comply with the State Bank a check on the Treasurer of the United law on the subject. The petition also contains a stipula- States. The check was duly credited and fortion whereby petitioner irrevocably covenants with the warded for payment. More than a year later court below pursuant to rule 21, that it will not remove securities or other property by it held in a fiduciary the Federal reserve bank was notified that the capacity out of the jurisdiction of the court and that it check was a forgery. Thereupon the amount will deposit trust funds in a separate account with another of the check was charged to the Closter National bank or trust company. Bank, which then brought an action against the The second point of alleged conflict the court found by Federal reserve bank to recover this amount. comparing the part of section 11 k (supra), authorizing examination by State examiners of the affairs of a national The court held that under the terms of the bank, with the State law of May 21, 1919, P. L. 209, pro- collection agreement as contained in a circular viding in section 14 (a) for examination by State examletter issued by the Federal reserve bank, the iners; but the record shows that petitioner has stipulated both with the court and with the State banking depart- latter could at any time and unconditionally ment that the State banking department shall make like charge back the amount of this check to the examination of all its property and assets as is made in Closter National Bank and, therefore, judgthe case of State banks. The record also shows that petiment was entered for the Federal reserve tioner has filed a stipulation with the banking department to be and remain subject to supervision by that depart- bank. ment to the same extent as State corporations pursuant UNITED STATES CIRCUIT COURT OF APPEALS to the act of May 20, 1921, P. L. 991, entitled "Restricting FOR THE SECOND CIRCUIT. the appointment of corporate fiduciaries by testators or by any court or register of wills to corporations fully subject to CLOSTER NATIONAL BANK, plaintiff in error, 1 supervision and examination by the banking department.'' against I The learned court below found its third conflict "in FEDERAL RESERVE BANK OF NEW YORK, | the case of insolvency or suspension of a national bank." defendant in error. J The Federal law provides that in such cases the Comp- Before: ROGERS, MANTON, and MAYER, circuit judges. troller of the Currency appoint a receiver who, under the Writ of error from the United States District Court for the direction of the comptroller shall take possession, admin- Southern District of New York. Action by plaintiff ister, etc., pursuant to appropriate judicial action. The against the defendant to recover the amount of a check practice has long prevailed and is well understood. The drawn on the Treasurer of the United States. court remarks that such receiver will not be under the Judgment for defendant; plaintiff appeals. Affirmed. control of the State courts. But, as to the court below, MANTON, circuit judge. it would seem that the Federal court supervising a receiver- On March 31, 1919, a check was drawn on the Treasurer ship under the national banking law is neither more nor of the United States purporting to be for $4,000. It was less foreign than a State court supervising a receiver presented to the plaintiff in error by one representing appointed by the banking commissioner administering the himself to be the payee therein named, and it was endorsed affairs of a State bank pursuant to State law. "Pay to the order of any bank or trust company. March It was for Congress to determine whether the details of 31, 1919. Endorsements guaranteed. The Closter Nacorporate management prescribed by it were better adapt- tional Bank, Closter, N. J." This paper was sent on April ed for the exercise of the plenary Federal power it desired 3, 1919, to the defendant in error for collection. The exerted, than other methods of corporate administration plaintiff in error was a member of the second Federal effective in the States, but its provisions for the conduct reserve district located outside of the State of New York, of business or the administration in insolvency, though and elected to collect the check in question through the different from the State system, can not be regarded as in defendant in error, but did so under the terms and condicontravention of State law within the terms of the amend- tions of a circular letter known as No. 37, dated December ment of 1918. 29, 1915, and which reads as follows: Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

.lA.VOAKT, 1923. FEDERAL RESKRVE BULLETIN. 23 "Member banks of this district located outside of the in error, it was always subjected to final payment by the city of New York are notified that on and after January 1, Treasurer. Crediting the account accorded an advantage 1916, they may include in their remittances to the Federal to the member banks in affording means for making funds Reserve Bank of New York for immediate credit at par, promptly available. In undertaking this service, the but subject to final payment by the Treasurer of the United defendant in error became a collecting agent. Under the States, all Government warrants and checks drawn on the terms of the circular, defendant in error had the right, Treasurer of the United States. Member banks situated should the United States at any time not pay, to return in New York City for the present and until further notified such check for any reason which the Government might by us are requested to collect such items through the consider good, and the defendant in error could at any assistant treasurer of the United States in New York in time an<i unconditionally charge back the amount credaccordance with the present practice. When the facilities ited to the plaintiff in error, at the same time returning of the Federal reserve bank for handling Government the item so charged back. The right to do so was indefinite deposits have been further developed, member banks in as to time; it might be done at any time and uncondi- New York City will be notified that Government warrants tionally. It was with this understanding and agreement and checks may be sent to this bank through the clearing that the defendant in error gave credit and accepted the house subject to final payment by the Treasurer of the obligation to perform this service for the plaintiff in error. United States. But it is contended that the defendant m error's right to "The Government has for many years exercised the charge back the item is dependent upon its showing that right of returning at any time warrants and checks, which the item was in fact a forgery and alteration as claimed by for any cause have not been considered good; and we have the Treasurer. By the terms of the collection agreement been advised that this practice will be continued. under which the defendant in error performed the service, "In view of this situation the Federal Reserve Bank of the collection agent had the right, if it acted in good faith, of New York, as a condition of receiving Government war- to charge back the item to the plaintiff in error's account rants and checks on the Treasurer of the United States without the necessity of establishing a forgery or alteration from member banks for credit, reserves the right to charge of the warrant. The memorandum credit accorded by the back and return to the depositor at any time and uncon- agreement of which the circular letter is a part, was always ditionally any such item deposited with the Federal qualified by the clause "subject to final payment." And Reserve Bank of New York. by that clause the Government has for many years exer- "Your attention is specially invited to the above condi- cised the right of returning at any time, warrants and tion." checks which, for any cause, have not been considered good The check was entered to the credit of the account of and the plaintiff in error was notified that this practice the plaintiff in error in defendant in error's bank. It was would be continued as a condition of receiving Governthereupon forwarded to the Treasurer of the United States ment warrants and checks on the Treasurer of the United for payment. The check passed through in ordinary States from member banks for credit, with "the right to course and after bore a signature and symbol number, and charge back at any time and return to the depositor at any then the check was perforated as follows: " Paid 4-4-19- time and unconditionally any such item deposited with M9." The signature of the drawer was compared and, in the Federal reserve bank." To place any other construcdue course and in accordance with the usual custom, it tion upon the terms of the circular would be to treat the was audited by the disbursing officer who issued it, and phrase quoted as surplusage. Under the law the Treasurer it was examined by the Inspector General of the Army. might recover if he paid the warrant because of the for- Upon this audit and examination the Treasurer of the gery and therefore, as a matter of law, the item was not United States notified the defendant in error by letter of finally paid. May 19, 1920, over a year after the deposit of the check In the United States v. Exchange National Bank (214 by the plaintiff in error with the defendant in error for U. S. 302) the United States was held not to be chargeable collection, that the check had been altered and the in- with knowledge of the signatures of persons entitled to dorsement of the payee forged. This letter sent to the pension checks and that it could recover from a bank redefendant in error was accompanied by a photostatic copy ceiving payment from a subtreasury on checks to which of the check in question and a request was made that the the names of payees had been forged. Treasurer of the United States be credited with the amount In Cooke v. United States (91 U. S. 389) the court laid of the item. In accordance with the practice prevailing down the rule governing the right of the Treasurer to rein the bank of the defendant in error the Treasurer was pudiate payments of counterfeiting items, and said that if credited with the item of $4,000 and within 30 days presentation is made at the time when a complete examithereafter he was paid this amount. The plaintiff in nation can not be had, such payment is tentative and does error was notified by the defendant in error of the Treas- not amount to an adoption, and that further inquiry may urer's statement that the check was forged and altered, be made and if the paper is found to be a counterfeit, it and there was forwarded to the plaintiff in error, with its may be returned within a reasonable time and that a photostatic copv of the check, a notice of the charge of reasonable time is dependent upon the circumstances of the amount to tne plaintiff in error's account. Thereupon each particular case; but that until a reasonable time has the plaintiff in error objected to the charge and denied in fact elapsed, the law will not impute negligence on liability for the forgery. It resulted in the present action. account of delay. The contract between the parties embraces the con- And in the instant case, this warrant was presented at a tents and obligations imposed by the circular letter No. 37. time when the War Department was in a great rush of busi- The defendant in error was appointed depository and fiscal ness owing to an accumulation incident to the conduct of agent of the United States, and it offered to certain mem- the war. ber banks of the second Federal reserve district the option In Onondaga Bank v. United States (64 Fed. 703) the of presenting for payment checks and warrants on the Government was allowed to recover after two years had Treasurer of the United States through it, but it made elapsed between payment and discovery of the forgery. the terms as set forth in the circular above. The plaintiff We think the plaintiff in error may not recover under any in error was free to accept or refuse to accept the services of the terms of the contract under which the service of of the defendant in error as it saw fit. It might have used collection was performed, nor may it recover against the other available means for collecting Government checks defendant in error by reason of any neglect or unreasonable and warrants if it so desired. While immediately credit- delay on the part of the defendant in error. ing the account of the plaintiff in error with the defendant Judgment affirmed. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

24 FEDERAL RESERVE BULLETIN. JANUARY, 1923. State Banks and Trust Companies. Dis- i Admissions. t N ri o ct . ! Name of bank. g P r o a w nt e e r d s . The following list shows the State banks and trust companies which were admitted to membership in the Washington, N. J . 2 First National Bank Ito9. Federal reserve system during the month ending December Salem, N. J 3 City National Bank Uo9. 31, 1922, on which date 1,652 State institutions were Waynesboro, Pa... 3 Citizens National Bank 1 to 9. members of the system: Mount Carmel, Pa. 3 First National Bank 1 to 9. Charlotte, N. C... 5 Charlotte National Bank 1 to 9. Greenville, S.C.... 5 !Woodside National Bank 1 to 9. Capital, i Surplus. .T s o ou ta r l c e r s e . - Miami Beach, Fla. 6 iM B ia a m n i k . Beach First National Ito9. Alexandria, Minn. First National Bank 1 to 9. Hutchinson, Minn. Farmers National Bank 1 to 9. District No. 6. Joplin, Mo 10 Joplin National Bank Ito9. Farmers & Merchants Bank, < 12 First National Bank Ito9. Eatonton, Ga $25,000 $26,257 Wenatchee, Wash.. District No. 8. City Trust Co., St. Louis, Mo i 200,000 i $45,000 i 1,820, 518 Election of Directors. Laclede Trust Co., St. Louis, Mo.} 200,000 ! 35,000 1.69S.849 The following directors of Federal reserve District No. 10. [ Bankers Trust Co., Denver, Colo... 1,000.000 ; 250,000 4,265,518 banks have been elected for the three-year term beginning January 1, 1923: Voluntary liquidation.—Farmers & Merchants Bank, Rupert, Idaho. Withdrawal.—Merchants & Planters Bank, Whitecastle, La. Bank closed.—Bank of Hanson, Hansen, Idaho. District No. 1—Boston: Class A—Frederick S. Chamberlain, Xew Britain, Conn. New National Bank Charters. Class B—E. R. Morse, Proctor, Vt. The Comptroller of the Currency reports the following Class C—Jesse H. Metcalf, Providence, R. I. increases and reductions in the number and capital of District No. 2—New York: national banks during the period from November 25 to Class A—Gates W. McGarrah, New York, N. Y. December 29, 1922, inclusive: Class B—Owen D. Young, New York, N. Y. Class C—Pierre Jay, New York, N. Y. District No. 3—Philadelphia: Num- Amount Class A—John C. Cosgrove, Johnstown, Pa. ber of of banks. capital. Class B—Alba B. Johnson, Philadelphia, Pa. Class C—H. B. Thompson, Wilmington, Del. District No. 4—Cleveland: New charters issued $875,000 Class A—Chess Lamberton, Franklin, Pa. Restored to solveney 2 50,000 Increase of capital approved 36 8,615,000 Class B—R. P. Wright, Erie, Pa. Class C—L. B. Williams, Cleveland, Ohio. Aggregate of new charters, bants restored to District No. 5—Richmond: solvency, and banks increasing capital 45 9,540,000 Class A—John F. Bruton, Wilson, N. C. Liquidations 12 1,450,000 Class B—Edwin C. Graham, Washington, D. C. Reducing capital 3 150,000 Class C—Robert Lassiter, Charlotte, N. C. Total liquidations and reductions of capital.. 15 1,600,000 District No. 6—Atlanta: Class A—Oscar Newton, Jackson, Miss. Consolidations of national banks under act of Nov. Class B—W. H. Hartford, Nashville, Tenn. 7,1918 1 200,000 Class C—W. H. Kettig, Birmingham, Ala. Aggregate increased capital for period 9,540,000 District No. 7—Chicago: Reduction of capital owing to liquidations, etc 1,600,000 Class A—Chas. H. McNider, Mason City, Iowa. Net increase 7,940,000 Class B—S. T. Crapo, Detroit, Mich. Class C—F. C. Ball, Munice, Ind. District No. 8—St. Louis: Fiduciary Powers Granted to National Banks. Class A—John C. Martin, Salem, 111. During the month of December the Federal Reserve Class B—W. B. Plunkett, Little Rock, Ark. Board approved applications of the national banks listed Class C—C. P. J. Mooney, Memphis, Tenn. below for permission to exercise one or more of the fiduciary District No. 9—Minneapolis: powers named in section 11 (k) of the Federal reserve act Class A—Theodore Wold, Minneapolis, Minn. as amended, as follows: Class B—F. R. Bigelow, St. Paul, Minn. Class C—George W. McCormick, Menominee, Mich. 1. Trustee. District No. 10—Kansas City: 2. Executor. Class A—Frank W. Sponahle, Paola, Kans. 3. Administrator. Class B—M. L. McClure, Kansas City, Mo. 4. Registrar of stocks and bonds. Class C—Fred O. Roof, Denver, Colo. 5. Guardian of estates. District No. 11—Dallas: 6. Assignee. Class A—W. H. Patrick, Clarendon, Tex. 7. Receiver. Class B—Marion Sansom, Fort Worth, Tex. 8. Committee of estates of lunatics. Class C—Clarence E. Linz,1 Dallas, Tex. 9. In any other fiduciary capacity in which State banks, District No. 12—San Francisco: trust companies, or other corporations which come into Class A—C. K. Mclntosh, San Francisco, Calif. competition with national banks are permitted to act under Class B—Elmer H. Cox, Madera, Calif. the laws of the State in which the bank is located. Class C—William Sproule, San Francisco. Calif. The numerals opposite the name of each bank indicate the power or powers it is authorized to exercise, as given 1 Elected to fill unexpired term of VV. F. Ramsey, deceased. Term below: expires Dec. 31,1923. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

JANOARY, 1923. FEDERAL KESEEVE BTJUUETDST. 25 Federal Reserve Agents. sented in full in order to be available for future reference. A table is also given showing by The Federal Reserve Board has redesignated weeks since April 2,1920, corresponding figures the following-named class C directors as Federal and relevant selected items in the statement of reserve agent and chairman of the board of the New York City member banks and of the directors of Federal reserve banks: New York Federal Reserve Bank. While no statistics of stock exchange loans are available Boston—Frederick H. Ourtiss. for publication, it may be stated that in general New York—Pierre Jay. Philadelphia—R. L. Austin. the trend of these loans is closely parallel to the Cleveland—D. C. Wills. trend of amounts due to banks and bankers. Richmond—Caldwell Hardy. The figures for all member banks on call Atlanta—J. A. McOord. dates show that the maximum amount of Chicago—Wm. A. Heath. St. Louis—Wm. McC. Martin. interbank deposits was reached in November Minneapolis-John H. Rich. and December, 1919. The total amounts due Kansas City—Asa E. Ramsay. to other banks were over $4,000,000,000 at Dallas—W. B. Newsome. that time. From this total the amounts de- San Francisco—John Perrin. clined until the end of April, 1921, when they stood at $2,665,000,000, but on June 30 last they had advanced to $3,124,000,000. By INTERBANK DEPOSITS. far the larger part of the amounts due from banks and bankers, it will be noted, is shown Although the establishment of Federal reserve for banks outside of New York City, and a large banks loosened the tie between country banks proportion for banks outside of central reserve and their city correspondents, nevertheless these and reserve cities. The trend of this item is correspondents still perform important func- the same as of amounts due to banks, but the tions for the country banks. Of these functions total involved is much less, owing to the fact the one that is of greatest consequence from that a large part of the balances are due to the point of view of the money market is the nonmember banks in the interior, which are holding of country bankers' balances by^ the not included in the tabulation. large banks in New York City and other finan- Balances of out-of-town correspondents with cial centers. These balances represent in the New York City banks are an indicator of the main funds not required at a given time by the extent of credit demand throughout the counbanks in the interior for the accommodation of try, as an increasing demand in the interior their customers. These surplus funds are trans- results in the withdrawal of New York balferred to New York, whence they can be recalled ances. The year 1920 was one of great credit on demand, and where they draw interest at strain, and country correspondents were withthe customary rate of about 2 per cent. The drawing their balances from the New York city banks keep these funds liquid by loaning bank in considerable amounts, although temthem out largely upon call against stock ex- porary and seasonal influences made the total change security. Part of these funds is loaned balances move up and down throughout the out by the New York banks on account of their period. The year 1921, on the other hand, correspondents, and amounts so loaned are de- was a year of liquidation during which counducted from the deposits of the out-of-town try banks kept their New York balances at a banks, while another part is placed by the New fairly steady level, although toward the end of York banks on their own account and is in- the year the balances increased. In 1922 the cluded in the total of amounts due to banks general trend was upward with wide fluctuaand bankers. tions. Statistics of amounts due to and due from It may be noted that amounts due to correbanks and bankers are available for all member spondents constitute about one-fourth of debanks on call dates and are shown in an at- mand deposits of the New York banks and tached table for every call date from June 30, are generally more than twice as large as their 1919, to June 30, 1922. Similar figures are time deposits. The balances are considerably also available for reporting member banks in larger than the reserve deposits kept by the leading cities for every week and are shown New York banks with the Federal reserve below, by Federal reserve districts, for a period bank, with the consequence that even relatively beginning with April 30, 1920. These figures moderate withdrawals of funds by outside corhave never been printed before and are pre- respondents frequently result in borrowing by Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

26 FEDERAL RESERVE BULLETIN. JANUARY, 1923. New York banks from their reserve bank. the reserve bank, thus reducing the fluctua- Thus withdrawals of bank balances from New tions in the supply of funds on the New York York in 1920 were among the principal causes market. of the increase in borrowings at the reserve bank. In 1921, however, no relationship be- INTERBANK DEPOSITS OF AIX MEMBER BANKS. tween the New York balances and the borrow- (Dates of calls.) ings from the reserve bank can be traced. DCE TO BANKS AND BANKERS. During that year liquidation of bank loans was rapid and was effected by the retirement (In thousands of dollars.) of Federal reserve notes, which declined by over $200,000,000 from the beginning of 1921 Other cento May, 1922, for the New York bank alone, Date. I Ne C w i t Y y. ork t a r n a d l r r e e s s e e r r v v e e C b o a u n n k t s r . y Total. and the importation of gold, which resulted cities. in an increase of the gold reserves of the New York bank by over $600,000,000 during the J N u o n v e . 3 1 0 7 , , 1 1 9 9 1 1 9 9 1 1 , ,3 3 7 8 2 9 , , 3 3 1 5 4 7 2 1 , , 1 8 6 7 9 9, , 3 4 7 4 2 2 ! 3 5 9 1 8 9 , , 8 8 1 1 6 6 3 4 , , 6 07 5 8 0 , , 6 5 1 0 5 2 period. In 1922, however, with the gold and Dec. 31,1919 1,380,096 2,189.367 521,937 4,091,400 May 4,1920 1,207,407 1,887,434 429,518 3,524,359 note accounts of the reserve bank showing June30,1920 1,319,575 1,762,099 379,342 3,461,016 much smaller changes, borrowings from the N De o c v . . 2 1 9 5 , , 1 1 9 9 2 2 0 0 1 1 , , 1 0 1 7 3 3 , , 9 8 9 6 0 3 1 1 , , 7 6 3 5 2 0 , , 2 5 6 3 7 6 3 33 5 7 5 , , 9 5 0 3 5 4 3 3, , 0 2 6 0 2 1 , , 3 7 0 9 4 1 reserve bank are again affected by changes in Apr.28,1921 938,577 1,425,139 301,131 2,664,847 out-of-town balances. During the early part J D u e n c e . 3 3 0 1 , , 1 1 9 9 2 2 1 1 1 1, , 0 0 3 1 6 8 , , 0 7 6 8 6 9 1 1, , 4 3 9 8 9 1 , , 3 1 1 8 4 3 2 29 8 9 8 , , 2 1 6 2 3 4 2 2 , , 6 8 8 3 8 4 , , 0 6 9 4 6 5 of the year the balances increased and the Mar. 10,1922 1,060,762 1,749,439 331,761 3,141,962 June 30,1922 1,084,805 1,706,183 332,753 | 3,123,741 borrowings from the reserve bank declined, while in the latter part of the year balances DUE FROM BANKS AND BANKERS. showed a general downward trend, as borrowings from the reserve bank increased. Other cen- Prior to the establishment of the reserve Date. New C it Y y. ork t a r n a d l r r e e s s e e r r v v e e C b o a u n n k t s ry . Total. system withdrawals of balances by out-of- cities. town correspondents resulted in the calling of loans by banks in New York and in the crea- June 30,1919. 290,255 958,841 875,978 2,125,074 tion of a serious money stringency, sometimes, N De o c v . . 3 1 1 7 , , 1 1 9 9 1 1 9 9 . . 3 35 2 0 8 , , 5 7 7 3 1 8 1 1, , 1 1 2 7 1 5 , , 8 1 6 2 6 5 1 1, , 0 0 4 7 6 1 , , 2 4 7 9 2 3 2 2 , , 5 5 7 1 5 8 , , 3 7 5 0 6 9 as in the fall of 1907, amounting to panic. May 4,1920.. 117,940 I 867,652 888,581 1,874,173 June 30,1920. 130,689 i 867,538 825,814 1,824,041 The New York Federal Reserve Bank partly Nov. 15,1920. 85,399 ! 854,056 834,871 1,774,326 relieves the member banks of the necessity A D p ec r . . 2 2 8 9 , , 1 1 9 9 2 2 1 0 . . 9 77 1 , , 6 5 7 3 3 5 ; ! 6 7 2 4 2 4 , , 1 7 4 2 1 7 i 7 6 4 2 0 5 , , 3 1 6 7 0 2 1 1 , , 5 3 7 2 6 4 , , 6 9 2 8 2 6 of calling their loans to meet the strain caused June 30,1921. 109,264 ! 634,109 610,241 1,353,614 Dec. 31,1921. 72,123 : 697,108 680,406 1,449,637 b ca y l li t n h g e th w e i i t r h d lo r a a n w s a l t he o f b a b n a k la s n n c o e w s. bo I r n r s o t w ea d fr o o m f M Ju a n r e . 3 1 0 0 , , 1 1 9 9 2 2 2 2 . . 7 6 2 5 , , 5 2 4 0 6 5 ! ; 8 8 0 2 7 6 , , 1 1 0 9 0 3 7 74 4 8 1 , , 0 6 3 1 4 3 1 1 , , 6 6 1 4 3 6 , , 9 7 1 7 8 3 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

JANUARY, 1923. FEDERAL RESERVE BULLETIN. 27 INTERBANK DEPOSITS OF REPORTING MEMBER BANKS. (Last report date of each month.) DUE TO BANKS AND BANKERS. [In thousands of dollars.] San Date. Total, i Boston. Y N o e r w k . i I d P el h p i h la i - a. C la le n v d e . - m R o ic n h d - . Atlanta. Chicago. Lo S u t. is. M ap i o n l n i e s. - K C a i n t s y a . s Dallas. F ci r s a c n o - . 1920. A*r. 30.. 2,080,847 117,810 1,053,044 141,713 57,133 35,142 15,887 325,564 85,073 48,144 87,138 24,035 90,164 May 28.. 2,039,155 110,647 994,301 157,397 53,259 32,174 13,004 318,279 83,599 42; 888 123,215 21,941 88,451 June 25. 2,016,812 111,934 985,966 158,615 49,383 31,381 11,576 320,821 80,339 30,873 124,774 18,504 92,646 July 30. 2,008,883 117,269 959,670 151,194 54,844 32,104 9,646 317,553 82,672 39,867 135,851 18,842 89,371 Aug. 27 ! 1,950,236 112,140 919,903 151,032 57,872 32,600 9,957 321,131 79,449 37,023 124,608 17,536 86,985 Sept. 24 1,991 312 114,382 942,412 160,596 54,898 33,585 9,941 323,989 69,682 42,509 122,499 19,584 97,235 Oct. 29. 1,909,975 111,695 901,815 163,719 57,033 22,285 9,889 304,890 71,138 36,446 109,337 20,100 101,628 Nov. 26 1,889,909 105,863 907,386 157,691 52,675 32,505 9,067 290,941 72,313 35,143 107,046 19,387 99,892 Dec. 31 t 1,974,432 109,729 997,538 153,628 52,776 26,746 9,318 305,870 69,681 35,736 109,640 19,315 84,455 1921. ; Jan. 28 1,878,194 101,766 882,028 147,489 48,079 29,919 8,649 321,049 77,212 33,489 112,934 17,828 97,752 Feb. 25 1,843,703 96,820 865,181 141,058 46,026 28,823 9,433 327,059 75,546 34,160 113,646 17,438 88,513 Mar.25 1,681,719 90,230 794,501 133,770 39,966 23,970 8,031 297,874 65,309 35,134 95,216 15,639 82,109 Apr. 27 1,657,716 98,006 787,476 131,088 36,806 20,930 8,090 294,011 63,739 32,212 95,778 13,722 75,858 May25 1,656,873 93,493 801,506 125,831 36,798 21,506 7,388 292,223 65,512 28,783 94,472 12,871 76,490 June29 1,632,492 91,503 809,388 123,270 34,159 18,076 7,435 273,084 58,578 30,553 94,755 11,616 80,075 July27 1,656,164 96,626 799,079 127,647 36,578 19,378 7,150 282,394 63,719 28,190 104,728 11,987 78,688 Aug. 31 1,659,376 88,211 824,208 123,961 37,521 18,608 6,512 278,421 60,751 31,263 102,498 10,549 76,873 Sept. 28 ! 1,643,295 91,973 809,547 127,796 34,654 19,651 8,309 271,331 61,197 30,383 91,560 16,033 80,861 Oct. 26 | 1,678,579 100,671 829,639 129,728 33,610 21,733 7,464 271,141 63,099 31,033 90,738 15,279 84,444 Nov.30 i 1,730,931 98,016 133,582 29,996 22,703 7,538 269,515 61,326 32,521 85,468 15,318 86,560 Dec. 28 ! 1,703,752 100,896 815,242 131,092 36,242 23,273 10,077 287,925 64,915 33,344 96,159 16,518 88,069 1922. I Jan.25 1,775,579 104,637 ! 870,278 134,919 36,796 24,252 S,630 298,707 '69,899 35,292 94,221 15,462 82,486 Feb. 21 1,820,274 101,193 848,374 133,836 35,117 24,814 9,002 337,380 80,805 36,849 104,922 19,216 88,766 Mar.29 1,802,172 98,714 880,000 137,526 34,859 22,028 10,421 313,312 72,289 41,118 90,208 19,391 82,306 Apr.26 | 1,885,940 113,333 926,106 143,147 33,938 23,316 9,669 323,216 75,416 39,426 98,517 17,310 82,546 May 31 I 1,982,731 105,318 1,019,593 144,271 35,801 23,317 11,640 324,261 79,970 42,013 102,288 17,770 76,489 June 28 i 1,910,673 104,962' 941,083 145,332 38,123 23,050 10,988 330,699 77,785 39,168 104,899 15,420 79,164 July 26 | 1,950,752 111,347 ! 963,192 151,287 40,687 25,413 11,584 324,696 77,150 38,110 108,860 15,002 83,424 Aug. 30 ! 1,895,400 104,224 : 907,832 142,478 42,841 20,342 11,691 332,299 75,124 38,734 108,817 16,535 88,483 Sept. 27 1,908,386 107,866 ; 897,117 153,181 41,135 26,757 11,934 307,719 77,396 41,619 110,785 29,731 103,146 Oct. 25 1,934,303 110,222 932,547 150,132 38,254 30,443 12,955 304,138 78,496 42,667 105,581 34,363 94,505 Nov. 29 1,923,031 100,931 958,540 143,548 37,617 31,043 14,752 293,400 76,951 42,545 102,628 29,994 91,082 Dec. 27 1,991,007 112,768 910,261 159,308 35,176 30,790 15,549 348,175 85,897 48,175 116,012 27,254 101,642 DUE FROM BANKS AND BANKERS. 1920. Apr. 30. 656,697 53,085 145,299 80,322 22,132 9,519 8,580 151,686 32,187 !1>,252 41,247 ,21,311 74,077 May 21.. 673,279 49,934 128,031 77,698 30,645 9,065 8,625 152,824 32,602 !24,696 64,082 !18,277 76,800 June 25.. 649,576 49,907 113,237 70,736 28,605 10,080 7,944 159,739 32,685 i 25,466 61,940 16,961 72,276 J A N S D O u e e u o c l c p t g y v . . t . . . 2 3 2 2 3 2 9 0 7 1 6 4 . . . . . . . . . . 6 6 6 6 6 5 7 2 3 4 9 1 6 9 7 9 9 9 , , , , , , 3 1 2 1 4 1 4 6 0 0 8 7 3 9 0 8 0 8 4 4 4 4 4 4 8 4 5 5 3 4 , , , , , , 4 0 3 5 0 2 3 8 6 4 1 6 9 6 7 6 9 2 1 1 1 1 1 1 1 1 1 2 1 0 1 8 3 8 9 1 , , , , , , 7 6 7 5 7 8 4 3 0 0 4 1 2 9 8 3 9 8 6 7 7 7 7 7 8 4 5 2 4 2 , , , , , , 9 7 9 8 4 7 1 2 2 6 3 2 3 9 7 5 3 1 3 3 2 2 2 2 0 7 3 0 6 7 , , , , , , 3 3 1 5 7 5 6 3 1 7 1 2 7 6 9 9 4 2 1 7 9 6 8 8 2 , , , , , , 7 1 6 4 4 5 8 9 0 0 8 9 5 5 4 2 3 0 7 6 7 7 6 7 , , , , , , 0 4 5 2 3 8 9 3 9 9 4 5 1 1 4 1 3 3 1 1 1 1 1 1 6 5 5 5 5 5 1 2 4 6 4 8 , , , , , , 0 9 9 2 2 4 9 4 1 1 8 0 4 4 2 2 2 4 3 2 4 3 2 28 8 2 2 0 8 , , , , , , 6 5 9 6 9 1 8 8 5 7 3 4 6 1 9 0 0 2 I I I ! 2 2 2 2 2 1 3 0 6 4 4 9 , , , , , , 3 2 8 7 7 2 0 8 0 5 0 6 3 1 7 8 2 3 6 5 5 5 5 5 9 0 4 4 , , , , , 5 3 0 1 1 1 0 1 3 8 6 1 3 8 2 I i 1 1 1 1 1 1 6 8 8 2 7 3 , , , , , , 1 4 9 1 3 1 6 7 4 5 0 3 5 6 9 0 0 7 7 7 7 7 5 7 7 8 6 5 2 7 , , , , , , 6 7 2 1 2 3 0 6 2 8 1 1 1 9 2 7 4 8 1921. Jan. 28.. 504,407 35,706 95,431 57,387 19,889 5,971 5,693 123,609 29,338 17,001 44,764 15,169 54,449 Feb. 25.. 508,615 34,253 102,546 56,442 20,891 5,436 6,380 130,998 26,544 19,140 43,435 13,596 48,956 Mch. 25. 466,454 33,429 90,046 53,538 19,549 5,119 5,092 121,892 23,826 17,609 34,280 12,569 49,505 Apr. 27.. 479,514 34,397 94,887 52,564 19,466 5,097 6,006 128,684 22,543 17,856 39,330 11,741 46,943 May 25.. 515,097 33,171 149,968 48,693 21,133 4,852 5,222 119,355 22,002 17,051 37,880 11,636 41,134 June 29.. 501,191 36,211 136,391 54,100 18,992 4,437 4,593 120,130 20,326 12,418 40,462 10,338 42,793 July 27.. 460,815 32,162 88,324 50,902 14,861 4,235 5,334 125,267 22,353 16,342 45,474 11,146 44,415 Aug. 31. 456,971 85,435 53,821 15,846 4,452 4,948 124,456 20,450 17,210 42,539 9,941 14,182 N S O De e o c c p t v . . t . . 2 2 3 2 6 8 0 8 . . . . . . 4 4 4 49 8 7 8 2 8 4 9 , , , , 6 1 4 0 4 2 0 8 6 6 8 8 3 3 3 3 7 5 7 4 , , , , 3 1 2 0 6 0 1 5 7 7 2 3 9 9 8 9 2 9 5 7 , , , , 3 2 7 2 6 5 4 5 4 4 9 9 5 5 5 5 3 3 8 1 , , , , 6 5 5 7 7 3 4 4 4 0 7 2 1 1 1 1 3 5 4 2 , , , , 1 2 2 6 5 1 1 4 9 3 2 7 6 5 4 , , , 3 0 4 1 0 9 5 6 8 ' 5 6 6 6 , , , , 5 6 5 8 5 9 8 7 0 3 3 8 1 1 1 12 2 2 3 7 6 1 1 , , , , 1 5 9 1 2 6 4 7 4 7 8 5 2 2 2 2 2 5 4 4 , , , , 5 4 8 8 9 3 3 3 2 0 1 1 1 1 1 1 7 9 9 8 , , , , 5 8 1 8 8 7 1 0 5 6 2 7 4 4 4 3 3 0 2 8 , , , , 1 4 8 4 0 3 8 7 1 0 8 4 1 1 1 1 4 3 6 5 , , , , 9 8 7 1 0 4 2 3 6 3 3 0 5 1 1 5 0 9 1 5 , , , , 6 9 3 5 1 0 7 2 1 6 2 8 1922. Jan. 25. 475,880 34,928 79,584 50,125 13,646 4,622 1 7,975 135,423 23,924 19,598 41,573 16,462 18,020 Feb. 21.. 489,930 35,872 75,743 49,261 13,387 5,336 6,300 134,108 27,239 15,972 48,353 19,055 59,304 Mch. 29.. 465,839 33,112 80,840 54,554 12,632 4,258 5,872 123,535 22,068 23,091 41,614 17,747 46,516 Apr. 26.. 506,990 44,700 77,173 57,308 14,289 5,826 8,177 135,448 29,694 18,972 12,017 17,715 55,671 May 31.. 492,729 39,975 72,827 56,712 21,820 5,534 7,794 134,935 22,316 20,237 47,151 16,566 16,862 June 28.. 500,738 38,054 78,044 55,180 16,112 6,995 , 9,149 139,826 29,657 20,671 43,322 13,523 19,905 July 26.. 503,082 37,628 69,935 56,668 17,888 7,243 6,292 145,957 25,030 23,979 41,009 15 544 55,909 Aug. 30.. 510,455 33,742 72,409 51,784 19,056 12,135 : 5,833 138,878 29,342 24,130 46,730 17,352 59,061 Sept. 27. 512,518 37,213 73,583 51,840 17,723 11,560 j 5,733 132,399 29,018 18,422 45,364 28,905 60,728 Oct. 25.. 553,309 40,642 81,835 57,553 16,773 13,410 1 7,078 159,114 29,289 18,138 41,199 26,747 58,531 Nov. 29. 526,688 42,140 84,320 56,029 18,856 13,506 6,936 139,586 26,976 20,596 42,301 24,077 51,365 Dec. 27.. £52,253 38,463 82,181 51,991 20,059 12,504| 6,845 161.357 31,227 21,731 50,743 21,920 53,232 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

28 FEDERAL RESERVE BULLETIN. JANUARY, 1923. SELECTED ITEMS FOR REPORTING MEMBER BANKS IN SELECTED ITEMS FOR REPORTING MEMBER BANKS IN NEW YORK CITY AND FOR FEDERAL RESERVE BANK OF NEW YORK CITY AND FOR FEDERAL RESERVE BANK OF NEW YORK. NEW YORK—Continued. [In thousands of dollars.] [In thousands of dollars.] Federal Reserve Federal Reserve Eeporting member banks in Bank of New Reporting member banks in Bank of New New York City. York. New York City. York. Date. b D b a u a n a n e n k d k e t r s o s. R F r b e e w e s s a d e e i n e t r r k h v v ra . e e l s a m t A r b e o F c s a d e c e n a d o r t k e m v i r o . e a - n l c n F r u o e e l t d s a e e t e i r c r i o v a r n e l - . re T s c o e a t r s v a h e l s. i b D a b n a a u k n n e d e k t r s o s. R F r b e e w e a s s d e e i n e t r r k h r v v , a e e l s i j [ | a m A t r b e F o e s a e d c e n d o a r k e m v ti . r e o - a n l c n F r u o e e l s t a d e e t e r i c r v o a i e n r l - . re T s c e o a r s t v a h e l s. 1920. 1921. Apr. 2 ,080,714 641,906 619,202 847,782 664,929 Aug. 17 778,228 507,588 255,546 637,645 912,359 9 ,081,207 625,952 629,871 835,554 641,820 24 760,479 520,918 246,552 634,018 951,756 16 ,067,370 646,899 635,312 835,738 654,894 31 824,208 535,010 241,710 632,320 881,741 23 ,005,762 646,849 650,800 832,704 687,785 Sept. 7 j 772,918 543,811 256,550 647,337 962,487 30 ,053,044 649,523 663,390 838,600 638,998 14 781,267 518,668 206,000 639,847 972,388 May 7 ,046,309 611,510 656,163 845,006 655,749 21 764,178 514,189 130,327 635,042 1,078,568 14 ,000,568 649,367 681,559 843,927 649,167 28 1 809,547 568,276 150,424 631,130 1,089,798 21 , 023,521 626,834 606,544 849,246 568,733 Oct. 5. 837,236 527,537 181,005 642,293 1,042,050 28 994,301 657,189 •609,590 854,827 674,138 11-12. 853,183 554,104 216,165 638,752 1,014,753 June 4 ,019,817 649,228 658,874 861,807 647,988 19 86(S,566 557, 771 155,436 632,329 1,089,217 11 9R1,139 661,989 661,273 851,002 658,601 26 829,639 575,139 155,876 j «23,873 1.089,245 18 , 024,896 617,682 550,195 854,828 652,841 Nov. 2. 893,219 561,912 119,131 630,748 1,101,073 25 985,966 642,952 611,843 859,232 620,103 9 1 863,161 543,306 157,500 643.400 1,066,382 Jnly 2 ,063,789 674,113 688,664 882,506 651,002 16. 870.656 549,390 103,215 j 634,716 1,097,287 9 , ,0 0 3 5 0 9 , , 1 5 3 4 7 1 6 6 3 4 2 6 , , 8 8 1 0 8 8 7 6 0 8 5 6 , , 4 0 2 8 1 6 8 8 7 5 1 0 , , 4 32 6 3 7 6 6 3 3 1 9 , , 7 3 8 6 1 5 2 30 3 . . 8 8 2 8 3 8 ' , , 3 1 8 8 8 3 5 57 5 1 7 , , 7 8 0 7 1 0 1 12 3 4 0 , , 9 9 9 4 2 9 6 6 3 3 7 1 , , 6 5 7 9 2 0 1 1 , , 0 1 9 1 4 2 , , 5 8 6 6 6 8 2136 991,219 610,846 684,087 846,836 615,634 Dec. 7. 826,884 540,031 148,035 641,716 1,075,410 30 959,670 606,317 683,814 849,589 621,089 14. 824,015 538.737 133,375 646,659 1,064,545 Aug. 6 963,238 615,224 722,485 852,369 615,291 21. 816,042 602,797 157,560 666,571 1,104,190 13 935,121 624,805 780,893 852,695 599,206 28 j 815,242 582,432 131,279 663,329 1,114,114 S O N De c o e c t v p . . . t. 2 2 1 1 2 1 2 2 1 1 2 1 2 1 3 7 5 2 7 9 6 0 3 1 8 5 3 4 9 2 0 0 4 7 1 . . .. ,0 9 9 9 9 9 9 9 S 9 9 8 8 9 8 8 8 9 8 9 6 0 4 3 7 4 7 4 1 4 0 8 9 7 0 7 8 5 9 9 i 2 2 7 5 4 7 4 9 1 ; 7 4 4 8 9 0 8 1 0 7 , , , , , , , , . , , , , , , , , , , 4 6 3 1 4 1 4 9 8 1 3 1 9 1 3 6 0 8 6 5 1 9 8 7 3 5 8 0 5 5 8 8 9 1 2 7 6 1 6 3 2 7 5 4 0 1 9 3 4 5 6 2 5 4 1 1 8 1 1 8 | 6 6 6 6 6 6 5 6 6 5 6 5 6 5 5 5 5 5 5 6 4 2 1 8 0 1 1 1 6 2 0 1 9 6 8 7 8 8 9 0 0 5 4 1 0 8 6 8 7 8 3 2 1 1 9 9 1 6 6 4 , , , , , , , , , , , , , , , , , , , , 8 3 5 7 5 9 7 8 9 7 7 9 8 4 8 4 0 0 7 5 7 8 4 1 5 7 3 3 4 0 2 8 0 5 0 9 4 3 2 5 6 0 2 9 9 7 7 1 1 4 2 2 4 3 0 6 1 5 5 2 8 6 7 7 8 8 7 8 8 8 8 8 8 8 8 8 7 8 8 7 1 7 4 4 4 0 0 6 5 6 2 5 8 9 6 8 5 1 2 6 4 2 9 8 6 3 6 5 6 6 6 1 1 0 4 1 2 0 2 5 , , , , , , , , , , , , , , , , , , , , 0 2 0 0 2 2 0 6 1 8 5 3 6 4 6 7 6 9 9 9 9 5 0 7 2 6 9 7 0 7 7 0 6 0 6 7 1 1 1 2 1 9 3 7 7 6 9 5 3 8 8 8 5 7 7 9 4 7 2 2 i ] | ! i ! ; I 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8 5 6 5 6 6 5 6 6 6 7 8 7 7 7 8 7 6 7 6 7 4 5 6 4 1 4 4 5 9 6 6 5 5 3 0 6 4 2 3 1 , , , , , , , , , , , , , , , , , , , , 7 0 9 5 4 2 6 5 7 7 3 7 0 5 6 3 8 5 5 8 0 9 2 9 2 3 9 2 0 0 4 1 0 3 2 6 7 6 2 9 1 1 5 7 1 9 5 1 6 9 8 6 9 7 7 0 0 0 2 5 6 6 6 5 6 6 5 6 6 5 6 £ 6 6 6 6 5 5 5 5 2 7 1 9 1 8 0 9 1 0 1 8 0 0 1 1 9 9 8 8 5 2 0 8 0 1 3 8 0 5 9 4 7 6 2 0 7 8 2 5 , , , , , , , , , , , , , , , , , , , , 0 7 1 2 8 2 7 8 1 8 4 5 8 4 6 9 2 0 5 8 2 2 0 8 1 4 2 3 5 1 6 8 3 1 6 1 4 2 4 8 4 5 1 9 9 3 3 4 7 5 6 5 6 8 0 0 0 3 2 8 J F M A M a e a p n b r r a . . . . y 2 2 2 2 1 1 1 1 1 1 1 5 4 5 3 5 1 2 9 2 1 8 8 1 8 5 5 9 1 0 1 . . 9 . . 22. 9 9 9 9 9 9 9 9 8 8 8 8 8 8 8 9 9 9 9 5 2 3 1 4 0 4 0 7 9 5 4 8 1 8 1 4 5 7 1 6 4 5 9 7 0 1 0 5 3 8 0 7 2 4 3 2 0 , , , , , , , , , , , , , , , , , , , 5 3 3 6 1 5 9 9 5 0 3 0 2 8 9 6 8 7 2 2 3 2 9 0 6 5 7 7 3 7 0 4 6 4 9 8 6 7 4 4 6 7 6 2 9 9 4 3 3 0 6 2 2 2 5 1 8 i i : 6 6 5 5 5 5 5 5 6 5 5 5 5 6 5 5 5 5 5 0 1 6 5 7 9 5 9 8 2 8 7 5 9 7 5 8 3 9 4 2 2 3 7 9 2 5 2 9 5 0 3 4 6 0 6 4 8 , , , , . , , , , , , , , , , , , , , 6 5 2 1 5 6 6 5 3 9 3 3 3 8 8 9 9 7 5 1 8 8 9 2 7 0 8 0 4 4 5 6 1 2 4 9 3 1 1 1 6 1 9 3 5 9 7 7 5 5 4 7 7 2 4 7 2 1 9 6 2 8 5 9 3 2 2 4 2 2 2 8 4 1 1 9 8 1 8 6 9 0 2 2 0 3 3 2 6 4 3 3 4 2 , , , , , . , , . , , , , , , , , , , 3 5 8 0 8 2 7 2 5 2 6 5 4 9 6 0 2 4 2 5 5 8 8 0 1 6 5 4 4 2 0 0 1 7 9 7 7 8 2 1 2 8 7 8 5 1 6 9 9 9 3 1 1 8 8 2 1 I i ! ! i ! ! ! j | ' 6 6 6 6 6 6 6 6 6 6 6 6 6 6 6 6 6 6 6 0 2 6 1 1 2 2 1 2 2 2 1 1 2 3 2 2 2 2 5 6 3 1 5 6 1 9 3 5 6 4 5 5 3 1 5 8 6 , , , , , , , , , , , , , , , , , , , 0 3 0 7 0 5 6 3 9 4 6 0 1 4 7 7 8 2 5 8 2 7 9 2 4 8 1 0 2 7 5 3 9 7 7 4 8 0 2 9 3 2 7 4 4 4 0 6 3 6 1 2 5 4 4 0 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 , , . , , , , , , , , , , , , , , , , 1 1 1 1 1 0 1 1 1 1 1 1 1 1 1 1 1 1 1 1 5 8 3 7 9 0 0 2 5 4 4 5 6 1 5 2 6 3 9 5 0 8 2 0 6 1 5 1 4 5 6 3 6 7 2 4 6 , , , , , , , , , , , , , , , , , , , 0 8 8 0 5 4 1 2 5 1 6 5 5 2 9 2 4 2 4 4 0 6 5 6 2 6 7 4 5 9 7 5 0 5 6 4 8 8 5 2 7 1 0 2 2 7 7 8 1 5 5 4 0 6 5 8 8 17.. 969,419 ! 632,722 8,245 «17,404 1,189,775 1921. 24.. 954,894 i 644,820 23,136 614,887' 1,187,996 Jan. 7. ... 1,011,969 588,376 787,551 i839,625 587,659 31.. 1,019,593 614,394 5,783 625,246 1,172,542 14 976,413 571,559 718,681 ! 800,121 582,099 June 7.. 977,678 ! 637,268 7,858 620,153 1,196,296 21 946,400 581,935 793,998 i 793,026 546,098 14.. 988,138 621,477 9,224 61fi, 159 1,165,325 28 882,028 570,313 825,610 • 787,746 544,939 21.. 9f>8,532 613,541 7,294 617,810 1.184,536 Feb. 4 864,880 568,529 861,005 | 796,492 550,352 2X. 941.083 699, »23 52,579 618,7»5 1,203,833 H 841,833 553,875 833,196 I 787,938 565,519 July 5.. 1,009,635 ;616,194 77,391 642,355 1,118,380 18 863,577 557,877 791,485 791,991 591,146 12.. 1,007,270 j657,029 47,358 622,754 1,139,590 Mar. 25 4 8 84 6 4 5 , , 3 1 4 8 9 1 5 5 5 4 8 7 , ,5 4 4 9 7 3 7 7 9 5 9 8 , , 5 3 5 4 8 8 7 80 9 1 6 , , 9 3 1 8 6 3 6 5 0 7 0 7 , , 4 2 8 7 3 3 2 1 6 9 . . . . 9 9 6 6 8 3 , , 6 1 6 9 5 2 6 6 2 4 3 7 , , 0 3 5 9 9 7 7 9 1 , , 7 5 2 41 8 6 6 1 1 6 6 , , 4 7 6 7 9 9 1 1 , , 1 1 3 7 4 3 , , 7 2 3 3 0 3 11 828,254 575,254 789,067 791,404 610,121 Aug. 2.. 984,590 635,344 16,113 623,044 1,189,159 18 848,254 539,173 650,796 789,920 661,898 928,903 581,622 13,207 621,278 1,167,424 Apr. 25 1. .. 7 86 9 3 4 , , 4 5 5 0 4 1 5 56 3 3 9 , , 1 6 4 1 6 9 6 5 0 3 5 2 , , 3 9 9 9 0 7 7 7 8 8 0 3 , ,4 7 6 4 1 0 7 8 3 3 9 3 , , 9 4 1 4 7 1 2 1 3 6. . . . 9 90 2 6 3 , , 1 9 0 7 3 7 5 5 6 9 9 2 , , 5 9 7 1 1 1 2 1 7 9 , , 8 5 1 6 8 3 6 6 1 0 3 9 , , 6 5 4 5 4 6 1 1 . , 1 1 4 6 5 5 , , 8 0 6 3 8 0 8 831,866 533,576 559,661 776,791 770,251 30.. 907,832 602,532 21,082 606,993 1,163,812 15 845,521 558,668 551,885 762,173 767,474 Sept. 6. 923,026 589,367 27,995 615,358 1,121,728 22 809,800 540,503 542,419 756,071 768,740 13.. 942,521 578,337 19,606 604,842 1,104,827 27 787,476 547,220 507, S40 741,460 785,035 20.. 925,877 544,822 25,964 605,186 1,091,342 May 4 827,342 551,734 513,944 I 739,004 785,453 27.. 897,117 580,573 23,781 1604,481 1,094,930 11 828,152 546,508 547,447 725,430 759,112 Oct. 4. 979,441 , 592,955 33,705 ! 610,763 1,065,263 1 2 8 5 . ... 8 80 0 1 6 , , 5 2 0 3 6 2 5 5 5 3 3 0 , , 9 1 7 2 3 4 3 40 9 5 4 , , 3 0 3 3 8 4 I 7 70 1 7 8 , , 3 9 5 0 0 9 8 7 0 8 0 0 , , 5 2 4 5 4 0 1 1 1 8. . . . 1, 9 0 7 1 1 3 , , 0 7 3 9 7 2 ! ; 6 6 5 6 5 6 , , 4 7 3 4 6 8 1 7 2 4 2 , , 9 2 8 22 3 ] ! 6 6 1 0 1 5 , , 9 3 8 3 4 0 1 1 , , 1 0 0 5 4 5, , 2 2 0 7 6 6 June 1 812,728 561,141 423,106 I 715,951 844,287 25.. 932,547 i 577,386 57,150 595,140 1,083,799 8 . .. 806,346 580,922 393,141 '696,928 896,091 Nov. 1. 944,665 I 612,757 126,209 , 598,764 1,082,309 15 865,229 680,880 293,557 688,966 910,321 8.. 922,068 I 575,375 143,197 ! 604,301 1,055,619 22 773,858 568,126 286,900 675,424 933,682 15.. 940,996 ! 594,596 147,300 j 588,415 1,059,493 29 809,388 564,745 283,174 671,523 953,552 22.. 892,991 i 605,177 112,689 | 580,198 1,093,592 July 6 841,134 548,567 326,709 684,615 904,977 29.. 958,540 | 569,973 81,234 ! 594,003 1,097,573 13 797,229 547,292 311,974 654,260 904,600 Dec. 6. 873,669 594,145 157,615 ! 593,520 1,036,008 20 812,739 537,517 312,670 645,313 915,224 13.. 876,468 563,936 125,183 i 591,809 1,034,003 27 ... 799,079 545,612 284,545 643,875 947,507 20.. 919,718 588,054 86,132 605,539 1,046,196 Aug. 3 797,470 517,848 298,657 647,346 894,501 27. 910,261 639,948 115,915 599,001 1,055,982 10 792,648 508,748 273,423 i 638,045 884,396 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

29 JANUARY, 1923. FEDERAL RESERVE BTJLUETIN. in cash, the difference between the German pit- THE FIRST THREE YEARS OF GERMAN head price * and the world market price of coal; REPARATION. second, that the Allies' intention of establishing PART III.—MODIFICATIONS OF THE TREATY. a commission to supervise coal movements be abandoned; third, that a mixed Allied and THE SPA AGREEMENT. German commission be set up at Essen to study the condition of the mines; fourth, that the This article will be concerned in the main Allies provide a fund for feeding German miners with the negotiations subsequent to the sec- and improving the housing conditions. ond Conference of London, which concluded Ultimately terms for the next six months 2 with the acceptance of the Reparation Comwere imposed, the main features of which mission's decision by Germany on May 11, were as follows: 1921; for, with the qualification noted in the (1) Germany to deliver 2,000,000 tons per preceding articles, no true modifications of the month. treaty of Versailles could take place until the (2) A premium of 5 gold marks per ton to be Reparation Commission had announced its decipaid by the party receiving the coal in addition sion. Prior to this date, however, one important to the price as fixed in the treaty, to be exconcession had been made to Germany in the pended in providing foodstuffs for German matter of coal deliveries. This was at the Spa miners. Conference, in July, 1920. (3) A joint commission to be set up at It will be recalled that, under the treaty, Essen to seek means of improving the con- Germany's liability in coal was, for 1920-21: ditions of the miners, with a view to greater To France, say, 25,000,000 tons; to Belgium, efficiency. 8,000,000 tons; to Italy, 6,000,000 tons. De- (4) The Allies to make advances to Germany spite periodic reductions by £the Reparation to the extent of the difference between the Commission of the deliveries] required from price mentioned in (2) above and the Germany, the actual deliveries had invariably German or British export price f. o. b. port fallen short of the demands. In fact, at the (whichever be lower), such advances to enjoy time of the conference, Germany was delivering an absolute priority ovjer all other claims of at only one-half of the required rate. Yet, at the Allies against Germany. These advances the same time, it appeared that without the were to be in the form of credit, not of cash. consent of the commission, contracts were being (5) If the first three months' deliveries fell made with dealers in Switzerland and Holland short, the Allies would proceed to occupy the involving the delivery of 35,000 and 80,000 Ruhr Valley or some other hitherto unoccupied tons per month, respectively. The German area. delegates at first professed their inability to (6) A permanent delegation of the Reparadeliver more than 1,100,000 tons per month, tion Commission was set up in Berlin, to pass while the Allies offered as a temporary concesupon the production and distribution plans sion the delivery of 2,000,000 tons per month submitted by the German authorities in profor the next six months. Later Germany prog viding for the deliveries to the Allies. osed to deliver 1,400,000 tons per month from In January, 1921, the Spa agreement lapsed, ictober 1, 1920, and 1,700,000 from October 1, and with it the credits allowed to Germany, 1921, on condition that the food situation had the payments of 5 gold marks per ton, and the improved by that time. The food problem was reduced demands for deliveries. Hence there always to the fore in this connection, for it was was an automatic reversion to the terms of clearly perceived that German production the treaty which have not since been revised could never increase to the necessary dimenin any permanently important respect. The sions without an increase in the food supplies fixing of the demands since that time seems to for the miners. It was reported by the London have been based partly upon German capacity Times on July 16 that Mr. Lloyd George and to deliver and partly upon world market con- Herr Stinnes had made a bargain that, if the ditions, and the arrangements made were in all Germans on their side would raise their offer cases merely temporary. A return to the preto 2,000,000 tons, the Allies would increase the price at which the deliveries were estimated. • The German price was artificially kept down by Government regula- Accordingly the Germans made a proposal to tion. On the authority of Mr. Keynes, the difference between the deliver 2,000,000 tons on several conditions. German pithead price and the British export price was about 70 shillings per ton (100 shillings loss 30 shillings) at this time. First, that the Allies would pay to Germany, »The period of the agreement is important, for at its conclusion the terms thereof lapsed, and the treaty conditions came into force again. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

30 FEDERAL EESEBVE BULLETIN. JANUARY, 1923. war avenues of trade was marked by a Franco- The former would assemble the material German agreement, in August, 1921, that ordered by private individuals through the France would deliver 3,500,000 tons of Saar latter, and undertake its transmission to coal annually to Germany. The Wiesbaden 3 suitable terminals, whence the French company agreement provided that, if France did not re- would deliver it to the individuals whose quire all the coal she was entitled to under the orders it was executing. The French company treaty, Germany might export the unrequited would dispose of the material solely for reamount and pay France on the German deliv- building the devastated regions, and would fix ery basis. Then in January, 1922, the coal the prices at such a figure as would not compete demands were fixed at 5,750,000 tons per quar- unreasonably with the French private interests, ter, which is somewhat lower than the Spa de- which had been strongly opposed to the agreemand and very materially below the treaty ment. Germany's interests were protected by demands. There were in addition various the provision that the deliveries were to be price adjustments made, such as that of August, "compatible with the possibilities of pro- 1921, when the finance ministers decided that duction in Germany, and subject to the France should be charged for sea-borne coal limitations as to supplies of raw materials" deliveries up to August 31 at the German inter- and "in accord with the requirements necesnal price, instead of the British export price, sary for Germany to maintain her social and a distinct concession to France in view of theeconomic life." The prices with which Gerlow price of German coal, kept down by gov- many was to be credited were to be fixed by ernmental regulation. mutual consent, or, failing agreement, by a commission of three, comprising one German and one French nominee, with a mutually THE WIESBADEN AGREEMENT. acceptable third member, or, failing that, a The events which, after the Reparation nominee of the Swiss President. A price list Commission's decision, gave rise to the most was to be fixed every three months, the prices lively discussion during 1921 were the conto correspond with French internal prices, less versations between M. Loucheur and Herr customs and transportation charges. In ad- Rathenau, at that time the French and German dition, provision was made for the execution ministers of reconstruction, and the agreement of orders given by individuals, not through the concluded at Wiesbaden which was the outcompany, but to a private German producer. come thereof. The agreement signed on The deferred-payment scheme contained a October 6 is very complicated in its docublanket provision that in no case should Germentation, but may be understood merely as many be credited with more than 1 billion gold a convention simplifying reparation payments marks in any one year. Secondly, Germany by providing for the direct supply of restowould only be given immediate credit for a ration materials to France. It will be recalled maximum of 45 per cent of the values of the that the treaty provided * for the liquidation year's deliveries if these were less than 1 of a part of Germany's obligations by deliveries billion gold marks, or 35 per cent if they were of such materials, for which it was later agreed, more. The former limitation applied to treaty the recipient country was to pay over to the and agreement provisions together, the latter commission the fair value thereof in currency to agreement provisions only. So that in or bond coupons within a month of their effect they meant that a minimum of 55 or 65 receipt. The Wiesbaden agreement, in effect, per cent, as the case might be, would be carried replaced the pertinent parts of the treaty, so forward, to be credited by installments. This far as they related to France, by an arrangebalance was to carry interest at 5 per cent per ment for larger deliveries with partially deferred annum, and would be wiped out in 10 equal credit given therefor in Germany's reparation yearly installments, from May 1, 1926—that is, account. Up to May 1, 1926, Germany was from the end of the opening period of the to deliver a maximum of goods, including agreement. But it was expresslv provided deliveries under unimpaired annexes of the that in no case should France be debited in any treaty,5 valued at 7 billions of gold marks. The one year with a total of agreement and treaty deliveries were to be facilitated by a German deliveries in excess of her agreed proportion of and a French company, under Government reparation payments (52 per cent). Provision control, but financed in part by private capital. was made for the renewal of the agreement beyond the four and a half years of its present 'See below. life. * Annex IV; see November, 1922, BULLETIN, p. 1293. • Annexes III, V, VI; see November, 1922, BULLETIN, p. 1294. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

JANUABY, 1923. FEDERAL RESERVE BULLETIN. 31 In addition to the general part of the agree- not of the French Government, but of the ment, there were added four supplementary French share of future reparation receipts. agreements. One of these, dealing with coal, Sir John Bradbury, then, supported by the has already been outlined above. Another Belgian and Italian delegates on the commisprovided for the closing of the animals account sion, recommended certain^safeguardsjagainst by the delivery of 62,000 horses, 25,000 cows, the possible ill effects of the agreement. First, 25,000 sheep, 20,000 hives of bees;6 another for there should be a definite period, of notj more the liquidation of Germany's liabilities in re- than seven years after the conclusion of the spect of restitution of industrial materials by- deliveries, beyond which no new deferment of delivery of 120,000 tons of machinery as ordered, debit should be made. Second, that the aggrewith a payment of 158,000,000 of marks in gate deferred debit against France should be gold;7 and the fourth for the delivery of 6,000 limited to, say, 4 billions of gold marks. Third, railroad cars to satisfy France's rolling stock France should be required to pay to the general claims.6 reparation account, from time to time, any This agreement could not, of course, be put amount of the deferred debits, which might be into effect until the consent of the other Allies necessary to secure to the other Allies their had been obtained. Hence it was forwarded agreed shares of the reparation receipts. to the Reparation Commission for its considera- For some time no action was taken in this tion. The commission, in its decision of Octo- matter, but in March, 1921, the allied finance ber 20, entirely approved the principles under- ministers, at their meeting at Paris, considered lying the agreement, but saw in it certain the agreement in detail. It is interesting to departures from the terms of the treaty, in note how far the safeguards suggested by Sir that it violated in particular the provision for John Bradbury were applied. In the first division of the reparation receipts among the place, the agreement was approved for a period Allies as agreed " on a basis of general equity of three years, the amount remaining due at and the rights of each," and that giving the the end of 1924 and interest thereon to be commission power to fix the value of goods canceled in 10 equal annuities, beginning May delivered by Germany.8 Having no power to 1, 1926, by debits to France's reparation acauthorize these departures then, the commis- count. Further, the amounts deferred were sion referred the memorandum to the Govern- not to exceed 350 millions of gold marks in ments represented on it, with a recommenda- 1922, and 750 millions in 1923 and 1924 each, tion that it should receive a favorable exam- so that the total deferred on May 1, 1926, ination. could not be more than, say, 2,100 millions of On October 26 the British member of the gold marks. The revised draft of the agreecommission, Sir John Bradbury, submitted to ment was finally approved by the commission his Government a report on the proposed in June, 1922, after provisions had been inserted agreement, in which he showed that Germany for facilitating private deals, in particular the was by the agreement taking upon herself placing of orders directly with the German heavier burdens than had been laid on her by manufacturer. In the following month the the London decision. In view of the fact, commission notified the German Government then, that that decision, made so recently, that the agreement would come into operation "represented, in the opinion of the * * * on July 20. commission * * * the maximum burden The application of the Wiesbaden agreement Si< * * * Germany could be expected to be was, then, the first arrangement which recogable to bear," the agreement was liable to nized the advisability of cutting down the prejudice the fulfillment of Germany's other demands for cash, and of making arrangements obligations. In case of default on these latter, for larger deliveries of such goods as would not it was then probable that Germany would seriously injure the Allies' trade, and as would plead her agreement obligations in extenuation. accelerate the restoration of the devastated areas This would involve, in fact, an alteration in the of France to their former productive capacity. division of receipts, expecially favorable to France. According to Sir John Bradbury's re- THE CANNES CONFERENCE. port, the Allies would, in effect, be advancing The next step in the direction of the readjustsums to France at 5 per cent, on the security, ment of the Allies' demands was made at the Cannes Conference. The holding of the con- • Article 238. and Annex IV; see November, 1922, BULLETIN, p. 1292, ference was decided upon by the French and col. 1, and p. 1293. ' Annex IV; see November, 1922, BULLETIN, p. 1293. British premiers in conversations at Boulogne • Annex n; see November, 1922, BULLETIN, p. 1291, col. 2. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

32 FEDERAL KESEBVE BULLETIN. JANUARY, 1923. in December, 1921. No details of the policy ment as to reparation, the meeting was not to be pursued were published, but M. Briand wholly unfruitful in this matter. The immeannounced that "the two countries were diate fact was that the Reparation Commission determined to act together." "We have al- granted Germany a provisional delay on the ready laid down broad lines," he said, "and payments due on January 15 and February 15, will only have to complete the details at one of the conditions being the payment every Cannes." Just prior to this, however, the 10 days of 31,000,000 of gold marks.10 But be- French Foreign Office had issued a statement yond this, general agreement had been reached embodying the principles which should gov- on the proposed program of 720,000,000 in cash ern the conversations. The first expressed and 1,750,000,000 in kind for the year 1922. Of France's willingness to abandon the London the cash Great Britain was to receive 159,000,schedule of payments in favor of a new one, 000, of which she would lend 139,000,000 to which would not, however, reduce Germany's France. The remainder would go toward the payments; the next to reduce the armies of liquidation of Belgium's prior claims. occupation (which were now seen to absorb the M. Poincare", who succeeded M. Briand, would larger part of the receipts) provided Great agree to participate in the Genoa Conference Britain were to give absolute guarantees of only on condition that there should be no dissupport in the event of future German aggrescussion there of reparation. Early in Febsion. The third stated that France would ruary he telegraphed to Mr. Lloyd George that assist in the improvement of the economic France felt unable to send delegates if any of situation (by reducing tariffs, for example), the invited Governments let it oe understood recognizing that Great Britain was as conthat they did not entirely accept the conditions cerned over trade prospects as was France arranged at Cannes, precluding the discussion over reparation. Again recognizing this fact, of existing peace treaties. Hence the matter France was ready to undertake joint measures of reparation was now back in the hands of the with Great Britain looking to the economic commission. Mr. Lloyd George did, as a matter and industrial restoration of Germany. Lastly, of fact, call a meeting at Genoa of the signaand perhaps most important, France, while tories of the Versailles treaty to consider what unwilling to reduce the reparation claims, was steps should be taken should Germany default prepared to grant Germany every possible on May 31, but the invitation being flatly refacility for making deliveries in satisfaction jected by the French, even this project did not thereof. succeed in getting so much as private discussion of reparation at Genoa.9 Upon this basis, it may be assumed, then, the Supreme Council met at Cannes on January On February 28, 1922, a provisional accord 8, 1922, one of its objects being to arrange a was reached with Germany whereby payment schedule of payments for 1922. It was here would be made of 720 millions in cash and 1,450 that it was decided to call a conference at millions in kind. This represented a reduction Genoa, to which Germany and Russia were to of perhaps one-third from the London program. be invited to send delegates, and it was this On March 21 the commission issued its decision decision which brought about the resignation embodying details of this schedule. Germany of M. Briand, rendermg the conference to some having already paid 282,000,000 in 10-day cash extent abortive. On January 11 the French installments, there remained 438,000,000 to be Senate committee for foreign affairs tele- paid during the rest of the year. On April 15, graphed to M. Briand what seemed to them to 18,000,000 was to be paid, 50,009,000 monthly be the four essentials of any agreement on from May 15 to October 15, inclusive, and reparation which might be made with Great 60,000,000 each on November 15 and Decem- Britain. Such agreement must recognize that ber 15. Of the goods payments, 950,000,000 the economic and financial reconstruction of were to go to France and 500,000,000 to the France was essential to European recovery; other Allies, as far as orders might be placed. that there must be no reduction of the repara- Merchandise delivered to the armies of occupation demands of May, 1921, and no modifica- tion was to be credited to their expenses action of Belgian priority; it must give definite count, and not to reparation. Attached to this assurance that French rights would be re- partial moratorium were numerous conditions,11 spected at Genoa, and must guarantee French security. Despite M. Briand's consequent • An aceount of the Genoa Conference was given in the FEDERAL resignation, however, and the Supreme Coun- RESERVE BULLETIN for May, 1922, p. 549. 10 This arrangement will be dealt with more fully in the following articil's failure to take definite action on adjourn- cle of the series on " Fulfilment of the Treaty." 11 See final article of the series on "Fulfilment of the Treaty." Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

JANCARX, 1923. FEDERAL BESEEVB BULLETIN. 33 which gave rise to long correspondence be- coal deliveries for August, September, and tween Germany and the Allies. But the October to 1,725,000 tons per month, gave decision was finally approved on May 31. mixed indications for the coming conference. Even this program, however, did not last But a far more important fact was the issuance long. On July 11 it was decided to reduce the on August 1 of the Balfour note,15 which was installment due on the 15th of that month to immediately taken as a full expos6 of Britain's 32,000,000, the balance of 18,000,000 being attitude on the reparation problem. This doccredited on account of recent deliveries of dye- ument was the first official recognition of the instuffs under the terms of the treaty. This fact separability of interallied debts and reparation. is significant in view of the rigidity of the cash The note was addressed to the French Govdemands formulated in the partial moratorium ernment, but identical notes, varying only in decision. name of the addressee, were sent to Italy, Jugoslavia, Rumania, Portugal, and Greece. MORATORIUM NEGOTIATIONS AND THE THIRD A copy was presented to the American em- LONDON CONFERENCE. bassy for transmission to Washington. The British Government began by expressing On July 12, 1922, Germany laid before the its recognition of its obligations with respect commission a formal request for a moratorium to its debt to the United States, but announced of two and one-half years and a resumption that while doing so it was forced to modify the of the loan negotiations which had recently course which, in other circumstances, it might broken down. For some days past Herren have wished to pursue. "They can not treat Fischer and Schroder had been conferring with the repayment of the Anglo-American loan," the commission on this matter, the outcome said the note, " as if it were an isolated incident being the reduction of the July installment and in which only the United States and Great the application for a moratorium. The commis- Britain had any concern." The principles were sion, however, deferred consideration of the enunciated that " their (the Allies') debts were larger question until the report of the guaranincurred, their loans were made, not for the tees committee, appointed under the commisseparate advantage of particular States, but for sion's May 1, 1921, protocol,12 should have the great purpose common to them all," and been presented and examined. that the United States' loans to Great Britain Having thus expressed its inability to make were largely in effect loans to the Allies on further cash reparation payments, the German Great Britain's security. Government went further by asking, on July 19, Accordingly, Great Britain did not intend to that the monthly payments in respect of preask more from her debtors than was necessary war debts, by the clearing-house mechanism, to pay her creditors. At the same time, she be reduced from £2,000,000 13 to £500,000 up could hardly be content with less. She could to December 31, 1922. Added to this was a not be expected to forego all, and at the same request that payments for damages to property time pay all, since her people were suffering rights and interests in Gemany of nationals of from an unparalleled burden of taxation, want the Allies be suspended. This request was of employment, and diminution in the national refused by the allied compensation office on wealth. The amount demanded of France was July 25. therefore to depend more on the demands to On the following day the guarantees com- be made on Great Britain by the United States mittee announced that Germany had agreed to than on the French debts to the United Kingcertain measures of financial controlu over dom. receipts and expenses, the floating debt, and The policy favored by the Government was the export of capital. The significant fact re- to surrender Britain's share of reparation and garding this agreement is that in his formal cancel all interallied debts, but there was no acceptance Chancellor Wirth consented to the desire to profit by a less satisfactory settlement. control for the period of the expected morato- Of the alternatives, it was believed a general rium, to be determined at the pending London settlement would be of much greater value than Conference. the "most successful enforcement ofj|legal The failure to reduce the compensation de- obligations." 0 mands, and the reduction, on July 21, of the Following a great deal of unofficial discussion and criticism and supplementary statements by u See December, 1922, BULLETIN, p. 1425. u This sum was agreed upon with all the Allies on June 10,1921. M This will be more fully discussed in the final article of the series on 15 The full text of Lord Balfour's note was reprinted in the Septem- "Fulfilment of the Treaty." ber, 1922, issue of the BULLET"*, Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

34 FEDERAL RESERVE BULLETIN. JANDABY, 1923. members of the British Cabinet of Great Brit- torium was to be deferred until financial reain's determined intention to pay her debt to forms, involving budget equilibrium and curthe United States, the allied premiers assem- rency rehabilitation, were carried out. bled at London on August 7. At the outset Germany at first failed to give the Belgian Premier Poincare' announced France's refusal Government satisfactory guarantees. The deto agree to a moratorium without further guar- posit of 100,000,000 gold marks was accordingly antees from Germany. The specific proposals, demanded and refused. A declaration of volwhich included the establishment of a customs untary default was threatened by the Reparabarrier on the eastern boundary of the occupied tion Commission, but finallv, on September 18, area, the seizure of State-owned forests and the Reichsbank announced its willingness to mines on the left of the Rhine, and the pay- guarantee the treasury bills. This offer, which ment of the 26 per cent export lew direct to was put forward after private business negothe Reparation Commission instead of to the tiations between the Reichsbank and the Bank allied treasuries, were referred to a committee of England, was accepted by Belgium the folof experts, which, after careful examination, lowing day. The French delegate on the Reparejected them as unproductive, by a 4 to 1 ration Commission, however, refused to join majority. The proposal that Germany should in ratifying the arrangement, it being held hand over a share in industrial enterprises was that the guarantees were insufficient, and that also unfavorably reported. the burden transferred by the 6 months' bills The British proposals included a moratorium to 1923 would mean a burden on Germany on cash payments until the end of 1922, meas- which might be used as an excuse for asking ures to prevent the export of capital, to estab- relief from 1923 payments. lish the autonomy of the Reichsbank, to consolidate the floating debt, and to exercise con- THE INTERNAL SITUATION IN GERMANY. trol over German finances. A more permanent For some time past the financial position in proposal was to reduce the total cash reparation Germany had been cause for anxiety to the demands to not more than 26 per cent of ex- Allies. It was now critical. The reparation ports in future years, while leaving further committee, doubtless influenced by the failure scope for payments in kind. of the experts to arrange a loan, in June,18 and At this juncture of deadlock Signor Schanzer, the report of the guarantees committee, took obviously influenced by the Balfour note, proaccount, in the decision just outlined, of the posed the placing of the question of an immefact that " the German State has lost its credit diate moratorium in the hands of the Reparaand the mark has depreciated continuously." tion Commission, a permanent settlement not This question of currency depreciation, with to be made until the various- countries had all its ramifications, now became uppermost. completed their debt funding negotiations with With the problem of stabilization m mind, the United States. Sir John Bradbury, the British representative This compromise failed to produce agreeon the Reparation Commission, put forward a ment, however, and the conference adjourned, proposal, made public on October 14, under on August 14,. without any definite steps which, for a period of two years, or possibly toward settlement having been taken. longer, Germany was to furnish 5-year treasury The August 15 payment having been postbonds in place of cash payments. The componed, pending a decision at London, it was mission was to be reorganized, with the inclunot until August 31 that the Reparation Comsion of a United States representative, and mission decided to relieve Germany from furremoved to Berlin, in order to be in closer ther cash payments in 1922. The British deletouch with the German Government. The gate's proposal to grant this relief without relief granted to Germany would enable the guarantees was rejected. Germany was to Allies to fix an exchange value for the mark, furnish suitable guarantees for the payment of by means of an arrangement under which the 6 months' treasury bills, which were to be deliv- Reichsbank would sell gold for paper marks at ered to the Belgian Government, to whom the a rate to be determined by a mixed commission. immediate payments were due, in lieu of cash It was recognized, of course, that such a scheme payments. Such guarantees were to be agreed would be impracticable unless the Reichsbank upon between the German and Belgian Governwere relieved from making new discounts for ments, and, failing agreement, gold was to be Government expenditures. deposited as a guarantee. The decision on Germany's application for a 2\ years' mora- •• See final article on "Fulfilment of the treaty," Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

JANDAET, 1923. FEDERAL RESERVE BUIJOETIN. 35 This scheme the French delegate was in- until "final settlement on the reparation quesstructed by his Cabinet to oppose. The French tion at an early date on lines capable of being plan called for complete and rigid control of carried out." To overcome the second obstafinances and the power to veto expenditure and cle, the report advocated the setting up of an regulate taxation. The Reparation Commis- independent board of exchange control within sion's powers were to be limited to the applica- the Reichsbank, with an adequate gold supply tion of guarantees and reforms in Germany. from the Reichsbank's reserves. So long as The Reichsbank would be under interallied any of this gold was unpledged, the board was control and forbidden to discount further to purchase paper marks at a fixed rate. A treasury bills, while the treasury would not definite maximum was to be fixed for the floathave power to raise loans without the consent ing debt, and Government requirements, which of the guarantees committee. The calling of would otherwise be met by increasing the an international meeting was urged, to formu- floating debt, were to be supplied by funded late a comprehensive settlement of interallied loans No modification of these rules was to debts and reparation and to fix the payments be made without the consent of the Reparafor 1923 and 1924. tion Commission. With these plans held over, Germany was The minority report,18 signed by L. Dubois, granted some relief by a decision of the allied B. Kamenka, and G. Vissermg, likewise recomclearing offices freeing her from further pay- mended the suspension of cash payments until ments under this procedure (for the settlement stability was reached. To attain the end, of pre-war debts) until July, 1923. however, it suggested the creation of a new So critical had the position now become that standard of value in the shape of a gold mark, at the end of October the Reparation Commis- to be issued by a "specie bank," founded upon sion itself went to Berlin to investigate finan- the Reichsbank's gold raserves. It further adcial conditions for itself and to consult the vocated the extension to Germany of an inter- German Government on measures of stabiliza- national bank credit of 500,000,000 gold marks. tion of the mark and its incidents. The com- A memorandum, signed by the banker memmission's investigations continued well into bers of the committee, R. H. Brand, L. Dubois, November. and G. Vissering, recommended the formation At the same time a committee of private of an international banking syndicate with a experts, called together by the German Gov- capital of 500 millions of gold marks in the ernment, was also examining the situation. On form of credit acceptances guaranteed by the November 8 the majority report17 of the com- Reichsbank, 500,000,000 further Reichsbank mittee, signed by R. H. Brand, G. Cassel, participation in supporting action. Germany J. W. Jenks, and J. M. Keynes, was presented. would require a moratorium until repayment Upon the hypothesis that stabilization of the of the syndicate's advances. mark was equally as essential to Germany's The outcome of these independent inquiries creditors as to Germany itself, it expressed the was that on November 13 Germany made a proview that, granted certain concessions by the posal to the Reparation Commission based upon creditors, stabilization was possible. But such the Brand-Dubois-Vissering plan, a copy of an end "must primarily depend upon Ger- which was appended to the communication. many's own efforts and own resources and on It expressed the willingness of the Reichsbank resolute action by her own Government." to advance 500,000,000 gold marks to the Two obstacles were in the way therefore—the Government toward a stabilization loan, Pro~ budgets of the Versailles treaty and the finan- vided an equal amount were forthcoming from cial methods of the German Government dur- abroad, and subject to the conditions laicl down ing and after the war. Regarding the former, by the experts. As necessary concessions to a moratorium until such time as payments Germany there was to be a moratorium covercould be made "from a real surplus and not ing cash payments for three or four years. The from the proceeds of fresh inflation" was a sine moratorium would also cover deliveries in kind, qua non. The requisite period would be at except such as were required for the rehabilitaleast two years and the moratorium must tion of the devastated areas. Even these, howcover kind deliveries as well as cash payments. ever, were to be continued only so long as they Furthermore, while stabilization must be involved no increase in the floating debt. begun immediately, in view of the risks of There were now before the powers, then, variinaction, any scheme could only be provisional ous schemes for the amelioration of the critical " The full text is reprinted on p. 45 of this issue. 8 The fall text is reprinted on p, 47 of this issue. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

36 FEDERAL BESEKVE BULLETIN. JANUARY, 1923. situation in Germany and the generally un- It asserted that an international loan was the healthy economic conditions throughout only solution to the problem of reparation pay- Europe. Whether of British, French, German, ments, and announced Germany's willingness to or joint origin, all these plans had this common assume part of the debts of the Allies. To this end in view. Suggestions had become prolific memorandum, while ignoring the questions of when the time came for fixing the schedule of loans and assumption of debts, the Secretary of payments for 1923, but little material improve- State replied (March 29) that "this Government had been gained from the measures ment stands with the Allies in holding Germany already employed. Such was the result of responsible for the war, and therefore morally more than three years of consideration of the bound to make reparation so far as may be problem of making good the material losses of possible." The next step was taken on April the war. 24, when, after the first ultimatum of London, Germany made the proposition, outlined in the THE UNITED STATES AND REPARATION. preceding article of this series,30 submitting it to the United States for consideration looking No treatment of the general topic of reparato its transmission to the Allies. This transtion would be complete without a statement of mission the United States, as related, refused to the steps taken by the United States Governundertake, finding in the proposal "no acceptment in dealing with the matter of its own able basis of discussion." claims against Germany and of its connection with the European negotiations. Following these negotiations, early in May, On March 2, 1921, the Secretary of State 1921, an invitation was sent by the Allies to the placed before Congress a provisional total of the United States Government to appoint repre- American war losses. The aggregate claims, sentatives on the Supreme Council, the Reparaconsisting in large part of losses through sub- tion Commission, and the Council of Ammarine warfare, were estimated at $180,000,000. bassadors. The invitation was at once ac- At the same time, an estimate of American cepted, Mr. Harvey, the Ambassador in interests in Germany, consisting of securities, London, being appointed United States reprebank deposits, real estate, debts, etc., placed sentative on the Supreme Council, Mr. Herrick, the total at $ 191,000,000. The Versailles treaty Ambassador in Paris, on the Council of Ambeing rejected, the United States of course sent bassadors, and Mr. W. H. Boyden reappointed in no claims to the Reparation Commission, as as representative in an unofficial capacity, on did the other Allies. Unofficial observers repre- the Reparation Commission. sented the United States on the various com- The United States did not, however, set up missions until February, 1921, when Mr. W. H. any machinery for the purpose of securing Boyden was withdrawn from the Reparation reparation. The treaty of Berlin, signed in Commission, where he had held a seat as un- August, 1921, has been outlined in the addenofficial representative of the United States. dum to Article I. It will be recalled that the At this point the United States enters on a United States retained the "rights, privileges, new period with regard to the question of indemnities, reparations or advantages to European reparation, her support being sought which it * * * has become entitled under both by Germany and the Allies. In February, the terms of the armistice signed November 11, 1921, the French Government sent a note to 1918, * * * or which under the treaty of M. Jusserand, its Ambassador in Washington, Versailles have been stipulated for its * * * instructing him to "present the allied indem- benefit." Article II names the specific parts nity proposals in a more favorable light," with of the treaty under which the United States a view to obtaining American help in the matter reserves its rights. These include Part VIII, in of reparation. Then in March a long informal which are enumerated the damages for which memorandum was sent to the United States Germany is to pay, among them being pensions Government by Doctor Simons, asserting Ger- and allowances. The status of the United many's urgent desire to reach an accord with the States on the Reparation Commission is dealt Allies, recognizing Germany's liability to make with in section (4), which reads: "While the reparation, and refuting the charge of reluc- United States is privileged to participate in tance in so doing. The note pointed out that the Reparation Commission, * * * the Germany's offers of labor and material had been United States is not bound to participate in ignored,19 but expressed her intention of making any such commission unless it shall elect to a new proposal to France along those lines. do so." '• First conference of London. See December, 1922, BULLETIN, p. 1424. 2° See December, 1922, BULLETIN, p. 1425. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

JANUARY, 192S. FEDERAL RESEBVE BULLETIN. 37 In March, 1922, almost immediately after Government made no objection to the claim, the invitation to attend the Genoa Conference but raised the question to whom the claim had been declined by the Secretary of State, a should properly be made—to Germany or to demand was sent to the meeting of Allied the Allies. Finance Ministers for reimbursement for ex- Regarding reparation for her own damages penses incurred in connection with the army of and losses, the first step taken by the United occupation. The total expenditure of the States a'fter the conclusion of the Berlin Treaty21 United States Government up to April 30, 1921, was in the negotiations which culminated in the had been $275,324,192, of which the balance agreement between the German and United due from Germany was $240,744,512. This States Governments, signed at Berlin on sum was therefore claimed from the Allies out August 10, 1922. This provided for the setof the amounts so far received from Germany, ting up of a mixed claims commission, to pass which (according to the treaty of Versailles) upon and fix the amount of American claims were to be allocated first to the defraying of against Germany. The commission was to expenses of the armies of occupation. The consist of one representative from each party Finance Ministers took no action on this to the agreement, together with a mutually matter, it being considered outside the scope acceptable umpire, whose decision was final in of their powers. In a note to the United States the event of disagreement between the com- Government they suggested that the matter missioners. It was to pass upon claims of should be referred to the respective Govern- American citizens in respect of all damage to ments through ordinary diplomatic channels, or seizure of property, rights, and interests, as and that in the agreement between the minis- well as damage to persons, arising out of the ters arrived at on March 11, which dealt in war and sustained since July 31, 1914; and part with the division of the first billion marks upon debts owing by the German Government received from Germany, a clause had been or German nationals to United States citizens. inserted to protect American interests. This The agreement came into force immediately clause provided that all agreements on the upon its being signed. Germany appointed Suestion of division of receipts were subject to Doctor Kiesselbach, and the United States le American rights, as the various Govern- Mr. E. B. Parker, as the respective comments might establish them. missioners, while, at the special request of the In accordance with the suggestion of the German Government, another American, Su- Finance Ministers, then, the Secretary of State preme Court Justice Day, was appointed as addressed a note to each of the Governments of umpire. In accordance with the terms of the Great Britain, France, Italy, Belgium, and agreement, the commission met in October, Japan. This note stated that the total cost of and its deliberations are proceeding. all the armies of occupation up to May 1, 1921, had been 3,639,282,000 gold marks. The amounts due to Belgium, France, and Italy having been paid in full, there remained out- FINANCE COMPANIES.22 standing a balance of 1,660,090,000 gold marks, Since about 1900 there has been developed of which 966,374,000 was due to the United in the United States a group of organizations States and 693,716,000 to the British Empire. variously known as finance companies, credit The former was the amount now claimed, inascompanies, or discount companies. Their busimuch as it was understood that between May 1 ness may include one or more of the following: and December 31, 1921, 130,696,000 marks had (1) Discounting or buying commercial receivbeen appropriated to Great Britain, such approables—i. e., accounts, notes, or acceptances; priations being "expressly made and received (2) advancing funds to dealers with which to subject to the rights of the United States." purchase automobiles (wholesale sale of auto- In their replies the Allies all recognized the mobiles) ; (3) advancing funds to enable dealers American claim in principle and informed the to sell automobiles on the installment plan Secretary of State that negotiations were pro- (retail sale of automobiles); (4) advancing ceeding among them in order to agree on a common plan. The British reply, for example, 2i See November, 1922, BULLETIN, p. 1296. stated that "the claim put forward by the n This article presents the result of a study made by the Division United States Government that these expenses of Analysis and Research of the operations of finance companies. That part on discounting receivables is based upon data secured from 20 should be .reimbursed to them is one which companies, that on wholesale financing of automobiles on 23 companies, and that on retail financing of automobiles on 60 companies. Acknowl- His Majesty's Government would not in any edgment is due these organizations for kindly furnishing the information, circumstances desire to question.'' The French and to those leading authorities in the field who have read and made suggestions on the tentative draft of this report. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

38 FEDERAL RESERVE BULLETIN. JANOARY, 1823. funds to enable dealers to sell furniture, agri- exclude certain lines. One company, for cultural implements, books, musical instru- instance, states: "We do not like automobile ments, refrigerators, restaurant fixtures, house- tires or accessories, musical instruments, or hold utensils, electrical appliances, etc., on the luxuries. We find the furniture accounts installment plan; (5) advancing funds against unsatisfactory." In another company, "diamerchandise. Specialization is noticeable, es- monds, furs, jewelry, and concerns selling pecially in connection with discounting receiv- small invoices to very small trade, like wholeables and financing automobiles. Scarcely any sale confectioners, cigars, etc., are practically companies undertake all the above classes. excluded." The same idea is expressed in The larger firms in the field usually limit them- more general terms by still another company, selves to discounting receivables and financing which excludes "lines highly specialized; lines automobiles. It is only with these two classes lacking intrinsic value; lines not readily of business that the present study deals, inas- re-salable; lines whose value depends on conmuch as they comprise the great proportion tinuity of customers in business." Accounts of the total volume of business done. For of municipalities or political subdivisions are clarity in the following study, "finance com- not acceptable in some instances, while in pany will be used where the general group others no objection is made. One discount of companies is referred to; "discount com- company will not purchase accounts from a pany," in speaking of practices in connection concern which sells a large portion of its with discounting receivables; and " auto-finance product to a few firms. Some companies company," in referring to automobile financing. exclude from purchase any receivables of A recent study (Merrick, The Modern Credit concerns not given first or second class credit Co.) states there are to-day over 125 finance rating by either Dun or Bradstreet; others companies in existence with an aggregate accept a very limited number of customers capitalization of approximately $100,000,000 of the lower ratings. The average net worth and a volume ot business amounting to of companies selling their accounts is probably $1,200,000,000 annually. An official of one not above $100,000 if based upon the total of the largest companies gives a smaller figure volume of receivables purchased. The number in each case—$65,000,000 capitalization and of companies with a net worth of less than $800,000,000 as the volume of business. $100,000 is in the majority. From one-fourth Another authority places the volume of to one-half of the total number of customers receivables discounted in the eastern States of discount companies have used up lines of alone at roughly half a billion dollars a year. credit at banks and sell receivables to sup- The size of the individual company varies plement these lines. In no case is there a greatly, from a capital of a few thousand general rule that the "seller" maintain an to several million. The average size of the open line of credit with banks, although company specializing in discounting receiva- frequently the discount company advises bles, however, is larger than that financing it. The clientele of the larger discount comautomobiles, as automobile business as a rule panies is "fairly constant, although a tenis much easier to obtain and new companies dency toward outgrowth of the service by can acquire a reasonable volume in a snorter customers is reported by some companies. time. Further, as one writer explains, "sellers The receivables.—Accounts comprise a large of accounts receivable are, generally speaking, proportion of receivables discounted or sold, larger concerns than the average automobile notes and acceptances aggregating in no case dealer and will hesitate to place their busiover one-third the total volume. Of the emness with a small or new company." Of the bodied credit, notes comprise the larger 125 companies mentioned above, 45 are incoramount. Preference for notes or acceptances porated under the laws of Delaware. In New as contrasted with accounts is about equally York a number have incorporated under the divided among the companies, with no noticebanking laws of that State and are subject to able tendency toward one or the other in regular examination by the State Banking either the larger or smaller companies. In the Department. Both preferred and common purchase of receivables one of two plans may stock are usually issued. be employed: (1) The debtor may be advised (perhaps on the original invoice) that his account has been sold or assigned and that he DISCOUNTING RECEIVABLES. will make payment to the discount company, The range of industries from which receiva- or (2) no notice of the transfer may be given to bles are acceptable is large, but most companies the debtor. The plans are known as the Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

JANOABY, 1923. FEDERAL, RESERVE BULLETIN. 39 "notification" and "nonnotification," respec- (3) Have no set maximum but consider each tively. The latter is used in the majority of group of receivables separately. instances, but since the discount company (4) Agree to take care of all shipments so under this plan must depend upon the integrity long as the discount company does not believe of the "seller" in forwarding remittances re- the seller is unduly expanding. ceivables will at times be taken under the noti- Some companies employ all methods, but fication plan when they would not be acceptable the most frequent is to consider each offering under the nonnotification. separately. Receivables offered are subject to Procedure in discounting receivables.—Whenthe same credit investigation in all cases. The a concern arranges to sell or discount its receiv- size of the discount company is the governing ables, a contract is signed which provides, among factor of the maximum which can be extended, other things, (1) the charges made and times of and accordingly the amount varies a great deal. payment by the assignor; (2) that, under the The minimum is also subject to wide variation nonnotification plan, the assignor permit the among the various companies, one of the larger company's auditors to call at their pleasure to firms stating "an outstanding balance of less inspect his books and other records; (3) that than $10,000 is not desirable. The average the assignor transmit on the day of receipt all desirable balance more or less continuously original checks, drafts, notes, etc., received in outstanding, except in a seasonal business, is payment or on account of any receivables sold from $50,000 to $100,000." to the company; (4) that the assignor give the Averagematurity of the receivables purchased company power of attorney to transact any is from 45 to 60 days. In most cases the business relating to the assigned receivables, maximum maturity is 90 days, although in including indorsement of checks, drafts, notes, some instances 6 months is allowed. It is and other documents with the assignor's name. the more common practice for the discount In addition the assignor gives an actual assign- company to hold until maturity all notes and ment of his interests and title in the receiv- acceptances purchased and then collect them ables, listing each invoice. Attached to the itself. In some instances, nevertheless, the financial statement which the assignor is also seller is allowed to make the collection and required to fill out is an application for a the notes or acceptances are released to him fidelity bond, which the discount company under a trust receipt a few days previous to may take out in any company it desires or their maturity. In all cases the seller remains carry itself. contingently liable until the finance company It is customary to advance, at time of pur- is reimbursed. chase, about 75 to 80 per cent of the face value Credit work.—The basis upon which receivof the receivables. The remainder is paid as ables are purchased is most frequently the the accounts are liquidated. One firm states collateral, i.e., the receivables sold or assigned, that at times it will advance as high as 85 per rather than the credit standing of the "seller." cent, while one small company advances only One of the largest firms in the field arranges two-thirds of the receivables' face value. The the credit factors in the order of their imtheory underlying a partial instead of a com- portance as follows: plete advance has been stated as follows:23 (1) Lines of business. (2) Class of customers. Early in the history of our business experience we concluded that it would not be safe to advance the full face (3) Terms of sale; 30-day invoices less of an invoice, because of the infirmities attached to an hazardous than 4 months. open account. At that time manufacturers and wholesale (4) Our own experience with the accounts dealers were making approximately 20 per cent on their and "seller." turnover. As a matter of business, we felt that we could not afford to put more money into an account than our (5) Financial statement of the "seller." clients had invested. Hence an 80 per cent first payment, (6) Report of our special credit investigators and the balance, less discount and deductions taken by and monthly auditors. the customer, became the fixed standard. (7) Responsibility of personal guarantors. To determine the maximum amount of re- A second large company places the paraceivables which will be purchased from any one mount importance upon the financial stateseller four methods are m use: j ment of the buyer. In all cases the financial (1) Extend a line of credit and advise the statement must show a reasonably good finanseller thereof. cial position on the part of the "seller." (2) Set a maximum figure which the seller If receivables have been purchased under the does not necessarily know. nonnotification plan, it is customary for the discount company every 30 or 45 days to check 23 A. K. Jones, quoted by Merrick, p. 24. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

40 FEDERAL RESERVE BULLETIN. JANUARY, 1923. the outstanding accounts on the "seller's" charge of 1$ per cent a month. Since only 75 books to detect any discrepancies in the to 80 per cent of the face value of the receivamount remaining due as compared with that ables is advanced, the actual rate charged is shown on the discount company's books. correspondingly increased. Some companies This work is done by the discount company's in addition make a premium charge for a own auditors, who also prepare a monthly list fidelity bond. This is very small, in one case of unpaid invoices, which the seller signs. amounting to between one one-thousandth and The auditors may verify by correspondence one eight-hundredth of 1 per cent on the with the debtor a part of the receivables out- gross amount of the receivables. The rate standing. This practice of auditing or check- quoted includes all charges for both interest and ing is followed by all companies reporting for services. In the words of one company the this study except a few very small ones which services include: do not maintain credit departments. If pur- We retain a very competent attorney for an annual chases are made under the notification plan, retainer. His office services are at the disposal of our this checking is not necessary, inasmuch as customers free of charge. We also maintain a very effiremittances are made directly to the discount cient credit department and a corps of efficient auditors company. and accountants who audit the books of our customers at least once a month and instruct the bookkeepers in the General experience of the companies is that proper method of keeping accounts. from 10 to 20 per cent of the receivables run Financing the discount company.—Nearly all past due. One medium-sized company, which discount companies supplement their capital gives the figure of those not paid at maturity to a considerable extent by borrowing. Deat from 15 to 20 per cent of the total, states pository banks are the source most commonly that only 3 or 4 per cent run 30 days past due. used. Some of the larger companies, however, In the case of a Baltimore and a Chicago com- have established their credit in the open market pany, the receivables over 60 days past due on and borrow a large proportion through it. In- June 30, 1922, amounted to only 0.0135 per dividuals who advance funds as an investcent and 0.0127 per cent, respectively. It is ment furnish a very limited supply. It is the general practice of discount companies to customary to have some of the depository carry the receivables for a certain period after banks at points elsewhere than the head office, they are due, usually 30 or 60 days, and then if as this gives a wider spread of credit and, in still unpaid to require the "seller" to repur- some instances, offers collection advantages. chase them, either by refunding the advance An average balance of 20 per cent is mainor by substituting new invoices. Loss to the tained against loans. A "clean-up" with each company occurs only in those instances where bank is made once or twice a year for 30 to 90 the seller" will not repurchase the receivables days, but funds for the liquidation are usually and where fraud exists. Fraud, according to borrowed from another source rather than one of the leading authorities, is the greatest through a reduction of indebtedness. It is risk in the business, and results in the losses to the practice of some companies to pledge all his company varying according to the_ moral their receivables with the trustee instead of risk involved instead of by lines of business. maintaining a current portfolio. In relation to the volume of purchases the total The most common form of obligation used in loss is remarkably low, especially in the larger borrowing, both with banks and in the open discount companies. One company over a market, is the collateral trust note. Collateral period of about 10 years has had an average consists of receivables deposited with a trustee, annual loss of 0.0012 per cent, and another generally a trust company. The usual margin over a period of five years, less than one-tenth required is 20 per cent, but most companies of 1 per cent. Seldom does the loss go over report they always keep far in excess of this one-half of 1 per cent. amount. Maturity is usually 6 months, al- Charges of the discount company.—The usual though it may vary from 30 days to 12 months. charge made by discount companies is one- Notes are issued in series, with denominations twenty-fifth of 1 per cent a day on the net of $500 and multiples thereof. The rate of face amount of receivables, plus a charge of interest varies from 4£ to 8£ per cent, according $5 per $1,000 on the first $100,000 of receivables to the money market. within any 12 successive months. Some ex- The annual volume of business of reporting ceptions to this are found, as in the case of companies ranges from 5 to 20 times their one company, which charges one-thirtieth of 1 capital investment. A turnover of 8 to 12 per cent a day, while another makes a flat times is most frequent. The total amount of Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

JANUABX, 1923. FEDERAL RESERVE BULLETIN. 4i borrowing at any one time as compared with Statistics of the volume of automobile the discount company's own capital varies. financing done are not available. Estimates One authority states: received from authorities in the field as to the percentage of cars sold on installments vary We consider well-managed credit companies with a minimum cash stockholders' investment of about from 50 to 70 per cent of the total number of $2,000,000 can safely borrow four to five times their stock- cars sold. Sales for the past few years have holders' investment, excluding investments in other been in excess of 1,500,000 cars annually. In companies. Companies with less than 1500,000 cash 1920, 1921, and 1922 the wholesale value of the stockholders' investment, we think, should not borrow over from one to two times such investment. automobiles produced was $2,233,000,000, $1,260,000,000, and $1,558,567,000, respective- Contrary to this view is the opinion of another ly. The corresponding number of cars proofficial who believes that "the risk in the busiduced in these years was 2,205,197, 1,668,550, ness is in adverse ratio to the amount of capital and 2,527,000. invested up to $300,000, or say $400,000 or Wholesale advances.—Larger auto-finance $500,000, because a smaller concern can not companies have a definite percentage, usually afford to maintain a complete organization, 80 to 90 per cent of the wholesale price, which and, above $500,000 invested capital, the risk will be advanced on every car. Smaller comincreases in the same ratio that the volume panies, which are less highly organized, deterincreases, by reason of the greater difficulty mine" their advances more upon a consideraof supervision." tion of each case separately. Variation in the Many bankers and credit men have been percentage advanced is augmented as the strongly opposed to the business of discount makes of cars handled increase in number. A companies. At the same time, the companies certain percentage may be advanced on cars sell almost all their collateral trust notes to stored in a public warehouse, and another for banks, and the volume so sold is several times those kept on the dealer's floor. If a distinctheir own capital investment. Thus the distion is made, the former is always the larger. count company stands between the bank and The advance on trucks is usually at least 10 per the "seller" of receivables, and, in fact, guarcent lower than on passenger cars, because of a antees these advances to the banking system. heavier depreciation and slower market. The In other words, it serves as a special agency for individual range of the advance is from 60 per providing the supervision necessary in such cent up to, in one instance, 95 per cent. Most advances, and also assumes a direct obligation common, judging from the replies received, is to the banking system in connection with them. 65 to 70 per cent, or roughly, two-thirds the value of the car. The "value" may include FINANCING AUTOMOBILES. various items. In the case of some companies it is merely the list price; in others, the list Operations of finance companies in conprice plus freight, war tax, and extras. nection with financing the purchase and sale of automobiles fall into two categories: (1) Maturities vary from one company to another Advances to assist the dealer in securing cars and even within the same company; 30, 60, 90, from the manufacturer, and (2) accommoda- and 120 days are all common, with 60 and 90 tion enabling the dealer to sell on the install- days the prevailing periods for the largest numment plan without the necessity of keeping his ber of companies. The length of the advance own capital tied up and so limit his operations. depends to a considerable extent upon the The two plans are known, respectively, as whole- season of the year in which the financing is sale financing and retail financing. A com- done. Advances made in the winter are for a pany may limit its activities to retail financing, longer period than those made at a later date. or else may operate in both the wholesale and The majority of loans are made against the retail fields. Among the companies reporting dealer's promissory note or acceptance, secured for this study no examples of limiting accomo- by a chattel mortgage or warehouse receipt. dation to wholesale purchases are found. Some In contrast, however, the autofinance comcompanies have close connections with auto- pany may secure legal title to the car by purmobile manufacturers, and have agreements chasing it and giving the dealer a repurchase to finance their specific make of car. Other option. If a car is sold by the dealer before companies specialize in financing particular maturity of the paper, the related payments makes of cars, or they may limit their opera- become due immediately. Several companies tions to the more popular-priced cars. The pledge the notes received from dealers with a majority make no limitation either as to make trustee as security against collateral trust notes or price. used for borrowing money, and hi such in- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

42 FEDERAL RESERVE BtTLLETIN. TANDABT, 1923. stances payments are made by the dealer and expenses incurred. The majority of the directly to the trustee. smaller finance companies never secure a Retail advances.—In retail financing the'per- guarantee from? a manufacturer, but rely centage which will be advanced is based upon entirely upon the value of the physical collatthe retail price as contrasted with the whole- eral and the credit risk of the dealer. sale price in the case of wholesale financing. Retail security.—-In retail financing advances Because of this the amount actually advanced are made on security in actual use and subject may be as great in one case as the other, to various contingencies. Fire, theft, and although the percentage quoted as a maximum collision are all potential risks. Auto-finance is much smaller in retail financing. The follow- companies ordinarily require the car to be ining tabulation gives the usual percentage sured against fire and theft. Practice varies advanced under each plan by the 20 reporting with regard to collision insurance. Protection companies undertaking both types of business: against constant depreciation is secured by the margin between the value of the car and the Wholesale. Retail. Wholesale. Retail. amount advanced being increased as install- 90 60 75 66} ment payments are made. 85-90 70 70-80 Guarantee of payment of the purchaser's 80-90 50-66} 66* 80. 75 66} 66 obligation by the dealer is more common than 80.... 66$ 66| a similar guarantee of dealer's obligations by 80.... 66} 66? 66| manufacturers in wholesale financing. The 80.... 66} 66} guarantee usually takes the form of an indorse- 75-80. 65 65-95. 75-80. 66} 62.... 54.8 ment of the promissory note of the purchaser. 75.... 60 60-75. 66} With some of the cheaper makes of cars a guarantee is not required. Payment of the advance is most commonly Wholesale legal documents.—The type of spread over a period of 6, 8, 10, or 12 months. legal document used is determined largely by Installments may fall due monthly or every 3 the place of storage of the car and the laws of or 4 months. The former is the most common. the State in which the dealer operates. If The charge of the finance company is custom- cars are stored in a public warehouse a warearily added to the selling price of the car and house receipt is used. A separate receipt is percentages are based upon this total, known issued for each, car. In contrast, if the car is as the "time-price." stored in other than a public warehouse either Wholesale security.—Automobiles may be a chattel mortgage, a trust receipt, a condistored either upon the dealer's floor or in a tional bill of sale, or a lease agreement is used, warehouse. In general, the practice followed depending upon which may be the preferred will be determined by the dictates of the form in the State in which the auto-fioance finance company with which the dealer main- company is operating. Chattel mortgages tains relations. Companies exercise this super- are the most common. vision because of the difference in the poten- Most important of the clauses in the docutial risk involved under the two plans. If ment peculiar to automobile financing is one stored in a warehouse, title to the car rests in a whereby the dealer agrees not to use the car. receipt either made out in the name of the This provision does not allow the car to be finance company or else indorsed over to it, used even for demonstration purposes unless a whereas if stored on the dealer's floor the special permit is secured from the auto-finance finance company must rely more upon the company. If the car is used without securing integrity of the borrower. It is customary a waiver of this clause, the act is termed to find both plans in operation in the same "conversion" and is sufficient reason for the company as well as a great variation between auto-finance company to take possession. companies in the percentage stored under each Retail legal documents.—In retail financing plan. The size of the dealer and the season either a conditional bill of sale, lease agreeof the year are both important elements in ment, or chattel mortgage is used, depending determining the place of storage if the finance upon the same factors as just noted under company does not exercise a definite policy. wholesale financing. If cars are sold under Some of the largest finance companies either a conditional bill of sale or a lease agreesecure from the manufacturer of the car a ment, title remains with the buyer. Between guarantee of payment of the dealer's obliga- the two there is a technical legal difference. tion or an agreement to repurchase the cars by Under the former there is a sale conditioned by paying the amount advanced plus all charges certain specifications, while if the transaction Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

JANOABT, 1923. FEDERAL RESERVE BULLETIN. 43 is evidenced by a lease agreement the law It is customary in both wholesale and retail recognizes a contract on the part of the user financing to give a personal obligation in addito rent, rather than to buy, the car. Con- tion to the document bearing title to the car. trasted to both these forms of documents is Promissory notes are generally used, although the chattel mortgage under which title does some instances of acceptances are found. A pass from the seller to the purchaser imme- separate note may be given for each installdiately, and the seller only maintains a lien as ment, but more commonly there is only one security. note for the entire amount, with a schedule of The stipulations and agreements of all three payments embodied withjn the note. forms are very similar. Each company has Wholesale credit work.—There are two distinct its own particular forms, however, and con- credit elements in wholesale financing—first, sequently there is some variation in minor the value of the collateral, and, second, the points. The following excerpts from a lease financial standing of the dealer. Considerable agreement are representative of the way the diversity of opinion exists as to the one deservmore cqmmon points are handled: ing the most weight from a credit viewpoint. One authority states "most large companies The lessee agrees that any equipment, attachments, consider the car itself rather than the dealer." accessories, or repairs placed upon said motor vehicle shall be and become a correspondent part thereof, and the In contrast to this view is the practice of one term motor vehicle whenever used in this agreement shall of the largest companies, which comments as include said equipment, attachments, accessories, and re- follows: pairs as though they were in all cases specifically enumerated. The dealer's signed financial statement is the basis upon The lessee further agrees to indemnify and save harm- which we determine the extent to which we are willing less the lessor from any and all loss, or claim for loss or to finance him. We check up the information submitted damage to persons or property caused by said motor by the dealer by means of the various commercial reporting vehicle, or by the use and operation thereof, and to give agencies, local banks, the trade, and attorneys. After all immediate written notice to said lessor of any and all loss this information has been accumulated, it is thoroughly or damage to or loss of possession of said motor vehicle analyzed and items on the statement which appear to be occasioned by any cause whatsoever. excessive are scaled down. The limit to which we will Said lessee further agrees not to use or permit said motor extend the dealer assistance is determined by the relation vehicle to be used for taxicab purposes. Lessee also between the new scaled quick assets and the current liaagrees that he will not in any case dispose of said motor bilities and the hazard involved. From this you will see vehicle without the written consent of the lessor indorsed the element of the physical collateral is largely a matter hereon. Said lessee further agrees to use said motor of secondary consideration. vehicle in a careful and prudent manner, to house and shelter the same, and to make any and all repairs thereon The type of business of the auto-finance comnecessary to keep said motor vehicle in first-class condi- pany, the makes of cars it finances, and its relation; and if, in the judgment of the lessor, said motor tion to automobile manufactures all have a vehicle is not kept in first-class condition lessor may make bearing on credit extension. If the company such repairs as are necessary and add the cost thereof to amount due lessor hereunder. Lessee agrees to keep said is operating very closely to the manufacturer, motor vehicle free and clear of any and all liens and the value of the car is relatively less important. encumbrances of any nature whatsoever, including all The same condition will exist if the auto- State, Federal, and local taxes, or charges which may be finance company has a guarantee or repurchase levied or assessed thereon. And the lessee hereby agrees that he will use, operate, agreement from the manufacturer. In addiand control said motor vehicle in strict conformance with tion, the salability of the car, as determined all statutes, laws, regulations, and ordinances relating to by its popularity and price, is very important. the use, operation, and control of motor vehicles, and The percentage of advances in wholesale adexpressly consents that upon failure of lessee by himself, agent, servant, or employee so to do lessor may at his vancing which run past due is comparatively election repossess said motor vehicle and enforce all his small. In some instances it is stated there are rights, privileges, and remedies under this lease, provided no delinquencies, but other companies estimate lessor is also the holder of the above-mentioned note. it as high as 5 or 10 per cent of the total accom- The loss, injury, or destruction of said motor vehicle shall not operate in any manner to release said lessee from modations. payment as provided herein on the note given. Re- Retail credit work.—In retail financing the newals or extensions of the time of payment of the amounts credit risk of the retail purchaser enters for condue hereunder or on said note shall not release lessee from sideration in addition to the value of the colthe conditions of this agreement. lateral and the financial standing of the dealer. It is expressly agreed that no assignment by the lessee of his rights or interest in this contract shall be valid Investigation of the dealer is made through the without the written consent of the lessor. usual credit channels. It is upon a favorable Following the above stipulations is the usual conclusion from this investigation that accomagreement regarding procedure and rights in modation is extended. Auto-finance compacase the terms of the agreement are not com- nies will not consciously finance the purchase of plied with, payment not made at maturity, etc. a car which ultimately will prove too heavy a Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

44 FEDERAL RESERVE BTTIiETlN. JANOARY, 1923. burden to the purchaser and so necessarily be an annual or monthly basis, or there may be repossessed by the dealer. Some companies to a discount rate plus a flat charge, which in facilitate their credifcwork furnish their clients turn may or may not vary according to the with a complete setjpf forms for handling a amount advanced. The rate may include transaction, including in this set a financial insurance, or this may be charged for in addistatement blank to be filled out by the pur- tion. Instead of quoting its charges by a rate chaser and then forwarded to the finance com- as the above, a company may have a fixed sum pany to be passed upon. varying according to the make or price of the The auto-finance company is ordinarily lo- car. The charge varies according to whether cated in other than the immediate locality of thecar is new or has previously been used; s the purchaser and so is confronted with diffi- according to whether the payments are made culties in securing certain information as to the monthly or at less frequent intervals, and purchaser's moral character that is highly im- according to the initial payment. From oneportant in retail automobile sales. For this third to one-half is the customary initial payphase of the investigation the dealer is in a ment required. much more favorable position. The company Capital of auto-finance companies.—Of the avails itself of this by quite commonly requiring three sources available for securing working the dealer to indorse his customer's paper. The capital, i. e., banks, open market, and private dealer, therefore, will do a certain amount of investors, banks are used by auto-finance credit analysis before requesting the company companies in the large majority of cases. to finance the transaction. Borrowings frequently amount to some three The importance placed upon the make of car or four tunes the company's capital. In a varies with different companies. Some con- few of the reporting companies no outside funds sider it as a relatively unimportant element are employed. The business of auto-finance inasmuch as in a sale to the ultimate user there companies, resulting as it does in promissory is not the same contingent element of risk of not notes, lends itself readily to furnishing collatbeing able to dispose of the car that there is in eral against loans. Collateral trust notes wholesale financing. Other companies look secured by the notes of purchasers of cars are upon the make as of prime importance because widely used. These are issued in denomiof the possibility of loss in case of repossession. nations of $500 and multiples thereof. The The percentage of past due accounts ranges customary margin is 20 per cent. Banks are from a fraction of 1 per cent up to 15 to 20 per the largest purchasers, discounting them dicent. The percentage of total cars financed rectly from the auto-finance company, rather which it is necessary to repossess is very low, than buying them from a commercial-paper in most cases being not more than 1 per cent. dealer. Two of thelargest reporting companies, Charges of finance companies.—The charge nevertheless, dispose of a large portion of their of auto-finance companies as a general rule paper through brokers. One of these reports approximates 15 per cent on the funds out- that it "has been quite successful in developstanding. One of the leading authorities ing a steadily increasing outside market." states that if a company is to make a profit it Small auto-finance companies frequently must charge in excess of 12 per cent. Charges rely upon their lines of credit with their local are made for the total advance for the entire banking institutions. In such cases these time of any part of the loan. Accordingly, lines are not supplemented by other sources, or while some companies quote a rate of as Tow by borrowing upon collateral trust notes. The as 6 or 8 per cent, the actual charge is corre- company's obligation to the lender may be spondingly increased. One company states either a secured or unsecured promissory note. that at times its charges amount to 36 per cent. A balance of 20 per cent of the accommodation There is very little uniformity among the is generally required. The companies "cleancompanies in the method of quoting rates. up at least once a year and remain out of Some companies, as, for example, those debt to the lending institution for two or three financing only particular makes, have the same months. Seasonal aspects of the business are rate for all cars they will finance, irrespective the main determinants of the maturity of the of the make or price. Other companies have loans. Some companies borrow on demand, different rates for different prices or different others use a 6-months' time note; 30, 60, and makes. Fords and Dodges are frequently the 90 days are the most common maturities. subject of particular rates. Further, the com- Maturities of collateral trust notes range from pany may quote its rate in one of several ways. 30 days to 6 months, with the longer periods There may be a discount rate quoted either on more frequent. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

JANUAEY, 1923. FEDERAL, RESERVE BULJ^ETIN. 45 ECONOMIC POSITION OF FINANCE COMPANIES. The organization which has been developed by finance companies to assume such a place In their fundamental characteristics finance in our financial structure is not on the whole companies date back both to the earlier money different from that found in connection with lenders in the large centers and to the "factors" the loan function of commercial banks. The which for 50 years or more have operated credit work is along identical lines and is largely in the textile industry. The former carried out through the same sources. Conwere chiefly individuals who advanced funds nected with one loan, however, there will be and took whatever security seemed most satis- in most cases relatively much more credit factory. Factors often combine finance and work, especially in connection with discountmerchandising by making sales for the mills ing receivables. No pyramiding of loans is which use their services and by advancing possible, inasmuch as the companies do not funds to the latter for manufacturing opera- accept deposits and so they actually reduce tions. These advances are made largely their cash positions when extending loans. against the manufacturer's bills receivable, The collections of loans require additional dewhich are assigned to the factors. The money tail work. Payments may be made on an lender and the factor still remain, but the installment basis, as in the case of automobile business of finance companies has been placed financing, or they may be made in small lots upon a more scientific basis and is now recog- at irregular intervals as the accounts fall due. nized as distinct and separate. Their business Close supervision is essential in either case. has tended more and more to resemble the Through the ability of finance companies sucpractices of commercial banks. The relation cessfully to carry out such closer supervision between the two closely resembles that between they are enabled to supplement our commercattle loan companies and banks. cial banking system and to make for themselves a distinct economic position in our financial There are in the United States a vast number organization. of companies and individuals whose resources, or apparent credit risk, do not measure up to the standard required by banks. It is largely REPORTS OF FOREIGN EXPERTS ON these that the finance company is called upon MARK STABILIZATION. to finance. It does not necessarily follow that such subjects are not good credit risks, but The following is a translation of the full text merely that in so far as the bank is able to investi- of the two reports of the foreign experts pregate, they do not fulfill the usual requirements. sented to the German Government. The ma- In addition, payments of the loans made to this jority report is dated November 7, 1922, and class may be spread over a longer period than is signed by R. H. Brand, Gustav Cassel, Jerethat for which a commercial bank will advance miah W. Jenks, and J. M. Keynes. The minorfunds. The payments, too, are probably in ity report is dated November 8, 1922, and is small lots, such as installments, which must be signed by G. Vissering, Leopold Dubois, and carefully watched and rigidly collected when Boris Kamenka. due. Collateral offered as security is in small THE MAJORITY REPORT. lots, such as a group of small accounts receivable. As a result, commercial banks find this (1) We are deeply impressed by the vital need of an class of business unprofitable at the usual rates immediate stabilization of the German mark. It is an essential condition of saving Germany from the threat of of interest. If they charged more, it would complete collapse. It is equally essential in the interests lead to legal difficulties in some cases, and of her creditors, whose claims will otherwise become nearly always to dissension among those bor- valueless. Granted certain concessions from these credirowers who have to pay the higher rate. tors which we indicate below, stabilization is possible. But it must primarily depend upon Germany's own Finance companies, however, by dealing only efforts and own resources and on the resolute action of her with this class of customers can charge more Government. It is hopeless at this stage to expect it to be without causing dissatisfaction among custom- accomplished by foreign assistance as its main foundation. ers. This increased income enables it to Germany must have a constructive policy of her own, carry the investigation further and to protect even though it involves a risk. No other course is open. (2) To the question whether stabilization is possible in itself in making a loan, and also to watch present conditions we reply, "No." First, for internal developments after the loan is made. In reasons, in particular the results of the financial methods short, finance companies are an intensified adopted by the German Government during and after the part of our commercial banking system. war; second, for external reasons, in particular the burdens of the treaty of Versailles. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

46 FEDERAL, BESEKVE BULLETIN. JANCARY, 1923. (3) With the necessary internal action we deal below. credence. In order to form any judgment at all on the As regards external burdens, we are of the opinion that so amount of the adverse balance, which probably exists for long as Germany is not relieved for a period from payments the moment, we are 'driven to another method of calcuunder the treaty of Versailles, any attempt to stabilize the lation. mark would be futile and could only result in the useless *. On the debit side of the balance of payments Germany dissipation of Germany's ultimate reserves. Such relief had to cover her adverse balance of trade, her payments is therefore an indispensable prior condition. under the treaty, and the flight of capital from the country. The length of the period for which payments must be To meet this she has had to rely on certain items of "invisisuspended will depend on the possibility of establishing ble exports,'' foreign credits, and purchases by foreigners of a surplus in the German budget. The essential principle marks and mark assets. Somehow or other these different is that payments must not begin again until they can be sets of items must have balanced even during the current made out of a real surplus and not out of proceeds of a year. If the adverse balance of trade has been as large as fresh inflation. We believe that the period must now be some people suppose, the purchase of mark assets by forfixed at two years at least. The suspension of payments eigners has to be put at an impossibly high figure. must include deliveries in kind as well as cash payments. We draw from this the conclusion that the actual trade (4) Any scheme of stabilization can only be regarded balance against Germany can not even now be very great, as provisional, pending a final settlement of the reparation and that, if she is relieved of cash payments under the question at an early date on lines capable of being carried treaty and of coal imports in replacement of reparation out. Nevertheless, in view of the risks of inaction even deliveries, it should not be beyond her capacity to pay for a short further period, we think that stabilization must her way. be begun in advance, if necessary, of a definitive settle- We think, therefore, that the state of the trade balance ment of this question. is not a fatal obstacle to stabilization. Moreover, a sound (5) With the relief proposed above the success of any currency is in itself a strong corrective to an adverse scheme of stabilization must depend not on a foreign loan, balance of trade, and will bring into operation many forces but rather on industrial and budgetary developments tending toward equilibrium. within Germany and on a final settlement of the There is, however, one concession without which the reparation problem at an early date. restoration of Germany's trade equilibrium might impose Nevertheless, the support of an international con- privations so severe as to risk the breakdown of the pracsortium would be of the greatest importance in its effect tical execution of our plan, namely, the restoration to on public confidence. We think that while the plans of Germany of normal prerogatives in international trade, as stabilizing the mark are being put into working shape, regards her liberty to impose import duties on luxuries and negotiations should be initiated immediately to obtain a right to claim most-favored-nation treatment for her exsuch support, perhaps in the form of credits to be utilized ports. Foreign countries may be more willing to modify the in case of need, and that a group of bankers should be existing restrictions when, with the stabilization of the called together forthwith to consider the formation of a mark, Germany's competition on foreign markets becomes consortium for the purpose of cooperating in the scheme more normal in character. of stabilization as proposed below. (8) We conclude that, in the conditions we postulate, an We wish, however, to make it clear that in our opinion, immediate stabilization is possible by means of Germany's pending a final settlement of the reparation question on own efforts. Indeed, we go further. Certain technical sound lines, no credits can be obtained from a foreign con- conditions are now present—the large gold reserve, the sortium except on a very modest scale to supplement and scarcity of currency, the margin between external depresupport Germany's own efforts. No really substantial loan ciation on the one hand and the degree of internal inflation can possibly be obtained from foreign sources until the and internal depreciation on the other—which render the lenders have an assurance as to the position at the conclu- position unusually susceptible to control. At the rate of sion of the moratorium period, for without such an assur- 3,500 marks to the dollar the gold in the Reichsbank now ance no sound basis of credit exists. amounts to about twice the value of the note issue. This (6) In the long run, the success of stabilization must is an unprecedented situation. No other currency has depend on the equilibrium of the budget. On the other fallen into decay with so great a potential support still hand, stabilization is in itself a necessary condition for the unused. recovery of equilibrium. (9) We think it would be imprudent to attempt the We have been informed from the German treasury that, stabilization, which we recommend, except at a low value if the mark were stabilized and if the budget were relieved for the mark, although this value might be appreciably of the present extraordinary charges, it would be possible higher than at present. It is impossible to say at the to balance normal revenue and expenditures at any early moment what the rate should be. The recent great coldate. Present conditions have thrown the statistics of the lapse is mainly due to a failure of confidence, and, if the budget into confusion, but we see no reason to doubt the measures indicated above are taken, a great improvement accuracy of this expression of opinion as to what is possible. might occur immediately. As an illustration of our The utmost economy in Government expenditures and opinion we should, under the conditions existing as we the utmost rigor in the collection of taxes are of the first write (7,000 marks to the dollar), regard some rate between importance. Capital expenditure for the public services 3,000 and 3,500 marks to the dollar as appropriate. But should not be charged to revenue account but paid for out it is necessary to remember that at any such rate as this a of internal funded loans. Nevertheless, it is neither great increase in the volume of notes will gradually benecessary nor practicable to prohibit absolutely an increase come necessary as the business of the country reverts to in the floating debt; and for a brief period it would be pos- normal conditions. The definite rate to be adopted should sible, with a stabilized mark, to allow just enough further be fixed with reference to the internal purchasing power increase to tide over immediate difficulties. of the mark and to the position of the external exchanges (7) We have found that the principal objection in the at the date when the plan outlined in the second part of minds of many authorities to any scheme of stabilization our report is put into operation, the general lines of the without a large measure of external support is based on plan having been announced some short time previously. pessimistic conclusions relating to the balance of trade. It is evident that, after stabilization is fully accom- In present conditions a basis is lacking for any sound plished, a new unit, being some multiple of the stabilized statistical conclusions. We have been given many dif- paper mark, should be adopted for general conveniferent figures and we doubt if any of them deserve much ence. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

JANUARY, 1923. FEDERAL RESERVE BULLETIN. 47 (1) In return^'for a suspension of payments under the treaty of Versailles for a period of two years, the German THE MINORITY REPORT. Government should offer to the Reparation Commission the following definite guarantees: Following is the text of the minority report: (a) That an independent board of exchange control Question 1. Is any stabilization of the mark possible would be constituted as a special department within the in the present circumstances? organization of the Reichsbank and that the Reichsbank would hold adequate gold from their reserves at the We reply: Any permanent stabilization of the mark service of the board. can not be achieved so long as: (b) That so long as any part of such gold is unpledged, (1) No end has been put to the paper money inflation, paper marks shall be purchased by the board of exchange the principal cause1 of which at the present time is the' on demand, at a fixed rate to the dollar, this fixed rate to deficit in the German domestic budget and public services. be determined on the principles outlined in the first part (2) The balance of payments remains unfavorable in of our report. consequence of excess of imports, the flight of capital from (c) That the aggregate value of the net floating debt shall the country, the aversion to the mark at home, and the not be increased beyond a definite figure; all other Govern- deliveries in kind and cash payments on account of repament requirements for credit to be covered by funded rations. loans. Question 2. If not, what essential conditions must be No modification to be made in the above without the created in order to render stabilization possible? permission of the Reparation Commission. Our reply is already contained in the answer to the first It would be necessary, further, for the Reparation question. However, some further elaboration appears to Commission, on the one hand, and the German Govern- us to be advisable: ment, on the other, to exempt the resources of the board (1) The devastating effects of paper money inflation of exchange from interference. made themselves felt in Germany, as elsewhere, when in (2) On the consent of the Reparation Commission the course of the war expenditure was no longer met from being obtained to the above, the following measures to the ordinary tax revenue, but by inverted borrowing; be taken: that is to say, by increasing the floating debt. Later on (a) The financial cooperation and support of an inter- this inflation was increased by the necessity for procuring national financial consortium to be invited. foodstuffs, and, finally, by the deficit in the ordinary and extraordinary domestic budget of the State. (6) A foreign currency reserve, on such scale as may be required, to be created on the basis of the gold at the Each inflation, however, leads automatically to further disposal of the board of exchange, in conjunction with the inflation, for every time the purchasing power of the paper credits which may be negotiated with the international mark is diminished a larger sum is required to transact consortium from time to time on such security as may be the same business. acceptable. If the measures taken to stabilize the mark are to have (c) The abolition of all exchange regulations and the a permanent effect, the causes of inflation, which lie with restoration of free and unrestricted dealings in exchange the Government, must disappear. and foreign securities. This means to say that the domestic budget of the State (3) The board of exchange to buy and sell foreign must actually balance, the actual expenditure must be exchange on demand (on gold exchange standard princi- kept within the limits of the estimates, which should be ples) against paper marks at fixed rates, the selling rate cut down to the lowest possible figure; if the receipts do being not above 5 per cent dearer than the buying rate in not suffice to cover expenditures, new sources of revenue the first instance. must be opened up. Finally, the extraordinary budget (4) The bank rate to be raised to a high rate and dear must not be burdened with expenditure for investments money to be maintained until stabilization is quite secure; of capital which might be avoided or postponed until but discounts and advances to be made freely at this rate better times, nor must the estimates for the extraordinary for regular trade transactions against all normally approved expenditure contain proposals for reparation payments in security. excess of surplus from the receipts of the ordinary budget. (5) In order to concentrate into its foreign currency To obtain this object it will be necessary to exercise the reserves as large an amount as possible of the free foreign strictest economy in State finance, to decrease the staff of assets of German nationals under conditions which would the Government offices and administrative departments, inspire confidence: and gradually to diminish direct or indirect subsistence (a) The board of exchange would issue gold bonds, allowances. guaranteed by the Reichsbank, at an adequate rate of (2) Unfortunately, we have no exact statistics regarding interest, repayable in gold in one or two years, in exchange Germany's present balance of payments, nor even any for foreign bank notes, bank balances, etc. trustworthy figures as to the balance of trade. All that (6) The board of exchange would buy foreign exchange can be said is that these balances apparently show a conspot and sell it forward at appropriate corresponding rates siderable deficit. for various periods. What is the cause of this deficit? (6) The additional notes required to carry on the busi- (a) The falling off of exports, the reasons for which are ness of the country, as it returns to more normal conditions, said to lie partly at home and partly abroad. Among the would be issued, (a) through trade discounts and trade ad- causes originating at home the decrease in the power of vances by the Reichsbank, and (b) through the sale of marks production consequent upon present labor conditions is by the board of exchange against the receipt of foreign cur- mentioned. It is not for us to judge upon internal quesrency and, to the least possible extent and for a period not tions of German legislation, but in our opinion both the exceeding six months, against further treasury bills issued Government and people should make every possible effort to cover the budgetary deficit during the transitional to regain this power of production. period before the budget can be balanced. The most important external cause is said to be the (Signed) R. H. BRAND. obstacles placed in the way of the import of German GUSTAV CASSBL. goods by foreign countries. This is a very delicate JEREMIAH W. JBNKS. question. Complaints have constantly been heard J. M. KEYNES. abroad, and not without reason, of the lively competi- BERLIN, November 7, 1922. tion of German industry with the industries of the van- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

48 FEDERAL RESERVE BULLETIN. JANUARY, 1923. ous countries during the last few years, which has led to face of the present impoverishment of the entire economic the ruin of several branches of industry. structure of Germany, it will, however, be advisable to If Germany wishes the restrictions placed upon her abandon the former unit of value and to select a lower trade to cease, her competition must be normal; that is unit, which in order to facilitate conversion, should be to say, it must not be based on the cheapness of her goods equivalent to a component of the pound sterling or the in consequence of the continual depreciation in her dollar; for instance, one-fortieth of a pound, half a shilling currency. or one-tenth of a dollar. This unit should be called the In any case, however, it may be said that her balance "new gold mark." of payments can not be adjusted unless she secures some With a view to effecting the stabilization of the mark, possibility of developing her export trade. it would be advisable to create an independent organiza- (6) An abnormal development of imports in the pres- tion possessing a legal entity, which might, for instance, ent circumstances. take the form of a share company and be styled "specie The mark has depreciated to such an extent that the bank," since it would come into existence with the confidence of Germans in their own currency has been object of introducing new money. more than shaken. The result has been the cessation of The initial capital would be fixed at 100,000,000 gold saving and an inclination to spend the mark, either in marks, which must be subscribed by the Reichsbank direct enjoyment or in hoarding up supplies. Were in gold. The Reichsbank would receive in exchange confidence to be restored by the commencement of the shares of the new "specie bank," so that the assets stabilization, this inducement to import would disappear. of the Reichsbank would thus in no wise be diminished. On the other hand, imports are promoted by Germany's As, however, the creation would require a considerable obligation to allow certain foreign commodities to enter period, we believe that in the first instance a committee, the country, and it is also facilitated by the so-called consisting of representatives of the Ministry of Finance, "hole in the west." It is obvious that if the German of the foreign lenders, and of the Reichsbank, should be Government remains powerless in this respect, it will formed, in order to start the first operations for stabilizahave great trouble in seriously controlling imports and tion. effectively restricting them. Moreover, at the present Reference to the "specie bank" in the following paratime the imports of one commodity have increased— graphs should be taken to apply in the meantime only i. e., of corn; these have been particularly large this to this committee. year in consequence of the bad harvest in Germany. Stabilization of the mark can only be effected with This factor is only temporary. the assistance of a considerable credit from foreign sources, Finally, the import of coal is chiefly a result of the amounting, for instance, to 500,000,000 gold marks in obligation to supply coal to the Allies. So long as no the old currency. This credit would most suitably be other arrangements are made, this cause of an adverse granted by foreign banks in the form of an acceptance balance will continue to exist. credit. It must be placed at the disposal of the "specie (c) The flight of German capital abroad and the aver- bank," which could utilize the advance as required by sion to the mark at home. We have no data which would drawing bills, which would enable it to purchase foreign enable us to estimate the extent of this. We are, however, exchange. of the opinion that, on the one hand, so soon as stabiliza- Large banks in the United States of America and in tion of the mark was begun one of the reasons for the flight European countries with normal currency would be of capital would be removed and there would be a prospect most suitable to grant this credit. This group might also of a general reflux, and, on the other hand, that German include banks in other countries, which would be apfinance legislation should take account of the fact that by proached with a view to their cooperation and declare the taxation of capital and income in excess of certain themselves willing to participate in the transaction. limits, the flight of capital is encouraged and can not be Under the auspices of the Reparation Commission entirely prevented by rigorous regulations. there should be brought about at the earliest possible (d) Finally, Germany has been compelled during the date the appointment of an international committee of last tew years and until quite recently to make cash pay- bankers, whose task it would be to form a banking consorments and deliveries in kind on account of reparations, tium, to examine, together with the Reparation Comwhich have considerably influenced her balance of mission and the German Government, the question of payments. the credit in connection with the guaranties to be given. We consider that any attempt to stabilize the mark We consider it advisable at this point to repeat that final would be futile unless these payments are suspended stabilization can only be achieved provided that conditions until there is a prospect of equilibrium being insured. within the country render possible a stabilization de facto, To sum up, we would say that, as it is one oi the essential namely: conditions of the stabilization of the mark that the balance (a) By recovering the equilibrium of the budget. of payments should no longer be adverse to Germany, (6) By restoring a favorable trade balance in favor of the above-mentioned unfavorable factors must be removed. Germany or at least by restoring its equilibrium. The German Government inform us that if they were (c) By restoring equilibrium of the balance of payments. relieved for a sufficiently long period from the reparation As regards (a): Should it be impossible to balance the payments, they are convinced that a noticeable improve- budget by increasing the revenue from taxation, an ment in the situation would speedily set in. We can attempt must be made to do so by reducing expenditure. but take cognizance of their statement. As any considerable addition of revenue will scarcely be Question 3. What means should be adopted for stabili- possible, the end will probably only be attainable by a zation so soon as the essential conditions are fulfilled? reduction of expenditure. In the first place, not only So soon as the essential conditions described above are must the deficit disappear in the railway and postal adminfulfilled or are on the way to realization, we propose the istration (including telephones and telegraphs), so that the following measures: earnings will cover the working expenses, but these depart- In view of the fact that in the present circumstances ments should also show surpluses sufficient to insure an the paper mark has entirely lost its character of standard adequate depreciation fund and to provide interest upon of value, steps must be taken in the immediate future the capital invested. Moreover, it is imperatively necesfor the creation of a new and stable standard of value. sary that the various subsidies payable in consequence of This would best take the form of a new gold mark. In State control, which give rise to a false scale of prices, Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

JANUARY, 1923. FEDERAL KESEBVE BULLETIN. 49 should be discontinued at the earliest possible date. difficulties will have to be overcome; and (b) an appreci- Finally, arrangements should be made to reduce the num- able reduction in prices will be the natural consequence. ber of Government officials. Improvement in the economic situation by means of As regards extraordinary charges, in so far as these relate stabilization will also make it easier for the Government to necessary and permanent expenditure on railways, to follow a sound economic policy. The budget will then canals, etc., it may be remarked that the funds required rest upon a secure foundation and equilibrium will be should be raised by means of internal long-dated loans. restored. We shall refer to reparation payments further on. If all these desirable consequences are taken into con- With regard to (6): Every means must be tried to restore sideration, it would certainly appear advisable to make a favorable trade balance, which would at the same time an immediate attempt to effect stabilization, provided exert a beneficial influence on the balance of payments. there is a reasonable prospect of the above-mentioned To this end, in the first place, an increase of production conditions being fulfilled at no remote date. must be obtained, both by improving the working methods, When the mark has attained a sufficiently high value by working at increased pressure, and, if necessary, by pro- every effort must be made to maintain it at that rate, longing the working hours. either by the purchase of foreign exchange when the mark At the same time the question of a reduction of wages appreciates or by purchase of marks if the rate requires should be considered, together with their adaptation to support. This could best be achieved by an exchange the existing value of money. It can not, however, be office. The "specie bank" might also take over the funcexpected that the worker would agree to such measures so tions of this office. long as, on the one hand, the bank would buy up mark The end to be aimed at consists in the restoration of a holdings and banknotes expressed in marks, principally gold currency. Should a transition period be necessary, through the concentration of their activity, in the foreign it might be advisable to leave the paper mark temporarily markets. in circulation and at the same time to introduce the gold By suitable action we believe it would be possible mark as a real currency. We hope, however, that direct effectively to deal with any counteroperations which transition from paper currency to gold currency may be might be attempted and to obtain a very appreciable improvement in mark exchange on the foreign markets. It will then be necessary to consider by what method To effect an upward movement of the mark is one of the the paper mark notes still in circulation can be exchanged principal objects, as the recent collapse of the mark was for gold mark notes or corresponding credits. After these mainly due to panic, and the restoration of confidence may measures have been carried out, the abolition of the "specie speedily bring about a countertendency. bank" may be considered, when the Reichsbank would Assuming that it is possible in this way to restore the resume sole charge of the issue of notes and the manipulamark to an appreciably higher level, the following im- tion of the parity of exchange. portant advantages will result: During a certain transition period the increase of the (a) A stop will be put to tho disproportionately heavy floating debt could be entirely prohibited; therefore, the depreciation of the mark. Government should be given an opportunity of increasing (6) The mark will be placed on a basis which, compared the floating debt within certain limits, to be prescribed with the present position, will not represent the absolute later, until the favorable effect of stabilization has made depreciation of all mark holdings. itself felt. (c) The higher theivalueiat which the mark can be The measures to be taken must be initiated forthwith, stabilized, the sooner will the note circulation suffice for as otherwise it is to be feared that any action will come too the requirements of the country. late to have any chance of success. On the other hand: (a) Definitive adaption of the scale (Signed) G. VISSERING. of wages to the new internal value of the mark will require LEOPOLD DTJBOIS. a more or less lengthy period, during which very serious BORIS KAMENKA. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

50 FEDERAL RESERVE BULLETIN. JANUABX, 1923. BUSINESS AND FINANCIAL CONDITIONS ABROAD. UNITED KINGDOM. | INDEX NUMBERS OP WHOLESALE PRICES IN GREAT BRITAIN. THE COURSE OF PRICES. [1913=100.) During the present year prices in Great Britain have remained comparatively stable. As will be seen from the table below, the net 1922 1921 fall between January and November is small, w in h e 1 n 9 , 2 c 1 o . m S pa im re i d la r w ly it , h t h th e e m h e e a a n v y d e d v r i o a p ti o r n e s c o f r r d o e m d B T o r o a a f d rd e. Statist. E m co is n t o . - R F B e e o d s a e e r r r d v a . e l B T o r a a r d d e o . f the average for the first 11 months are very much smaller than was the case in 1921. Fol- 1922. lowing this stability there is yet no indication J F a e n b u r a u r a y r . y... 1 1 6 6 4 2 1 1 5 5 5 6 1 1 5 5 9 8 1 1 7 6 0 7 2 2 4 2 6 5 of a rise pointing to any considerable indus- March 160 157 160 168 211 April 160 158 159 167 205 trial recovery. This long hesitancy suggests May 160 159 162 171 202 that a revival may possibly be delayed owing June 160 159 163 169 198 July 160 157 163 171 194 to the failure of prices of particular classes of August 156 152 158 168 190 goods and services to revert to a normal rela- S O e c p to te b m er ber.. 1 15 5 5 4 1 1 5 5 0 3 1 1 5 5 6 8 1 1 6 6 3 5 1 18 8 1 7 tionship as between themselves. If one set of November.. 157 153 159 165 173 December.. 158 165 168 prices fails to adjust itself to the general level, this factor may be sufficient to delay recovery. Net fall, January-November 7 3 0 5 65 That some adjustment as between different A M v e e a r n a g d e e , v f i i a r t s i t o 1 n 1 months... 2 15 .4 9 2 15 .5 5 1 1. 6 9 0 2 1 . 6 0 8 1 2 4 0 . 4 4 classes of commodities has taken place is sug- April, 1920 325 313 306 334 gested by the fact that the various index Fall, April, 1920-Novemnumbers of wholesale prices have moved closer ber, 1922 160 147 169 together since the peaK of the 1920 boom. It will be seen from the table, for instance, that Spread, April, 1920: 334-306=28. Spread, November, 1922: 165—153-12. the fall between April, 1920, and November, Spread, averages, January-November, 1922: 168-155=13. Spread, averages, January-June, 1920: 328—300=28. 1922, has been largest in the case of that Spread, averages, June-November, 1922: 167—154=13. index—the Federal Reserve Board's (specially constructed for international comparison)— Element of raw materials.—A considerable which reached the highest point during the amount of data is available as to the prices of boom period, and, conversely, has been smallest the materials used in manufacture. From the in the case of the Economist number, which table below it appears that both the Statist and recorded the lowest peak of the four. Since Federal Reserve Board index numbers of the the differences between the various numbers are prices of raw materials agree substantially. At largely due to the different weights given to the the same time the gap (due to fundamental difseparate classes of commodities, however, it ferences in mathematical method) between the still appears that some one or more classes of Board of Trade and Federal Reserve Board commodities or services have failed to align figures for imports, in which raw materials prethemselves with the rest, restoring the inter- dominate, was considerably narrowed during relation which characterized the period imme- the period from the peak to the present time, diately preceding the war. The object of this while the levels reached tend to confirm the discussion is to investigate the several available statement that raw materials stand at a level group price levels, in order, if possible, to segre- a little more than one-half higher than in 1913— gate such high-priced commodities or services. that is, at about the same level as the indexes The method adopted is that of a consideration of general wholesale prices. At the same time, of the various elements in the cost of produc- consumers' goods show a wider discrepancy, tion of goods. In this way light is also shed suggesting a maladjustment between wholesale upon the profitableness of the various stages and retail prices, a subject which will be reof production. verted to at a later stage. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

JANDA.KT, 1923. FEDERAL RESERVE BULLETIN. 51 are not conclusive, for during 1919-20 there Peak level. November, 1922. have been reductions of the hours worked per normal week which would make hourly rates roughly 10 per cent higher than are shown in Raw materials: Statist 318 (February, 1920). 148. the index. Incidentally, it should be remem- Federal Reserve Board. 308 (June, 1920) 166. Producers' goods: bered that the above figures are no index of Federal Reserve Board. 409 (April, 1920) 146. earnings, owing to the incalculable elements of Consumers' goods: Federal Reserve Board. 311 (June, 1920) 172. short time and overtime. Goods imported: Federal Reserve Board. 324 (April, 1920) 165. Element of transportation.—Whether paid by Board of Trade 28 1 9 9 2 ( 0 T ) hird quarter, 15 1 7 9 ( 2 T 2 h ). ird quarter, seller or buyer, the cost of moving goods inevitably enters into the determination of their final price. Hence it is important that, while Element of wages.—Since labor costs absorb freight rates on the British railways never rose a proportion of the prices both of raw materials so high as the general level of prices, and, and manufactured goods which vary widely indeed, remained practically at their pre-war in different cases, evidence as to the level of level until 1920, the reductions made during the wages is not of uniform importance throughout present year have not sufficed to bring them the productive process. Nevertheless, its iminto line with commodity prices. The present portance is so considerable in every branch of level is at about 75 per cent above pre-war.1 production that -no discussion of costs could This fact is an interesting reflection on the afford to omit this element. There are two disparity between wholesale and retail prices, available sources of information on the subject. suggesting that, as compared with 1913, The first is the Ministry of Labor, which transportation charges are absorbing too large estimates that the average weekly rates were a proportion of the price paid by the consumer, at the end of September at a level of 75 to 80 or, reversing the approach, that transportation per cent above pre-war. This compares with charges are so high as to form a deterrent to an index of 170-180 at the end of 1920. The increased mobility of goods, and hence trade second computation, that of Prof. A. L. Bowley, revival. confirms this figure by giving 180 as the level on November 4, 1922, on the same base as that vSo far as goods entering into foreign trade used by the Ministry of Labor. The peak, must be carried by rail to the port of embarkaaccording to these figures, was 277 in January, tion, so far is foreign trade, equally with 1921. domestic, impeded by high rates. But in the case of foreign commerce this element is very The rates of increase vary widely, however, largely neutralized by the low level of shipping from trade to trade, as will be seen from the freights, which now stand at little more than following individual numbers from which one quarter of their 1920 levels. This fact is Bowley's index is constructed. of peculiar significance in view of the comments on the trade situation in the December, 1922, AVERAGE WEEKLY BATES OF WAGES ON NOVEMBER 4, BULLETIN, page 1428, where it was noted that 1922. foreign trade appeared to be recovering more [Expressed as percentages of July, 1914, rate.] rapidly than domestic business activity. Bricklayer 168 Cotton 181 Element of capital.—While not strictly in the Bricklayer's laborer... 185 Wool 183 nature of a cost of production, yet the price Engineering: Coal 123 paid, so to speak, for the use of capital is not Fitter 146 Docks 184 Laborer 178 Agriculture 184 without its effects on the price paid both for Compositor 231 Mean 180 the materials of industry, for the finished Kailways 213 product, and for the means by which these commodities are used. The returns on long- The remarkable correspondence between term and short-term capital are important both these two independent computations is conas indicating, in the case of the former, the cost tinued into the field of living costs. The of raising new capital and the extent of profits, Ministry of Labor index number shows that and, in that of the latter, the cost of securing the cost of living reached the maximum, 276, accommodation to augment working capital. in November, 1920, and stood at 180 two years The low rate of profits accruing at the present later. time is emphasized by the London Economist From the point of view of production costs, it should be remembered that indexes of rates JSee November BULLETIN, p. 1302. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

52 FEDEBAL KESERVE BULLETIN. JANUARY, 1923. figures of the net profits of industrial com- been little adjustment between the two sets of panies.2 These averaged 11 per cent in 1913, prices. reached 16.8 and 16.6 per cent, respectively, The following table shows the chief points in the quarters ending April and July, 1920, in the recent history of wholesale and retail and were only 5.9 per cent in the quarter prices: ending July, 1922. In order to make these figures contemporaneous with other data, it must be remembered that these rates were MOVEMENT OF WHOLESALE AND RETAIL PRICES. disclosed, and not earned, during the quarter mentioned. Profits were therefore highest at Wholesale Cost of the beginning of 1920, but are now unquestion- prices, living, Board of Ministry of ably low. Trade Labor (average of (•July, The charges for short-term accommodation 1913=100). 1914=100). show similar symptoms. . The rate of discount on six months trade bills averaged 4f| in 1913 May, 1920 (wholesale prices at peak) 326.5 241 and 7-^ in 1920. Since the second half of November, 1920 (cost of living at peak) 286.9 276 T May, 1921 201.7 228 1920 and the first of 1921 it has fallen to 3 November, 1921 172.8 203 May, 1922 160.4 181 in July, 1922, rising to 3f in November. A November, 1922 157.1 178 similar course has been followed by three months' bank bills, which are of peculiar importance to British trade as acceptances. If these figures be examined in such a way From an average level of 6^ in 1920, Iff was as to compare the wholesale figure with the reached in July, 1922, and a recovery to 2\ retail figure for the next following date, thus was accomplished up to November. allowing to some extent for the lag, it is clear The short-money index 3 shows a maximum that retail prices never reached the levels attained by wholesale. Their fall, however, of 162 (expressed as a percentage of 1913 was considerably less precipitous, so that by levels) in February, 1921, a precipitous fall to November, 1921, they were at a higher level 48 in July, 1922, and a subsequent rise to 52.5 than wholesale, and this disparity has been in the week ending November 3, 1922. All maintained, and even widened, by thp small these factors agree, even more than the stadrop in wholesale prices during the present tistics relative to long-term capital, in setting year. The result is that, in compajison with forth the low but recently rising charges for pre-war levels, the cost of living is about oneshort-term credit. sixth higher than are wholesale prices, while Wholesale and retail prices related.—Bearing there is no apparent tendency to return to the in mind, then, that of the four factors in price pre-war relation. determination which have been considered, Apart from any question of a permanent wages and inland transportation appear to be readjustment, it appears certain that costs of above the general level of wholesale prices, it distribution are absorbing a larger part of the is now necessary to consider the margin beretail prices of commodities than was the case tween wholesale and retail price levels. Rebefore the war. The level of wages can not ferring back to the first table used in the presbe held solely accountable for this fact, since ent discussion, it will be seen that the wholethe larger part of the direct wage cost of comsale index which showed the highest mean devimodities is absorbed in the process of producation from the average over the first 10 months tion. On the other hand, the costs of distriof the year was that of the Board of Trade. bution are largely attributable to inland The Ministry of Labor's index of the cost of transportation charges, and these, it has living shows a considerably higher mean devialready been shown, are at a disproportionately ation, 3.5. The relative instability thus shown high level compared with wholesale prices. is, of course, due to the lag of retail behind This, however, can not be the sole factor in the wholesale prices, which carried over into 1922 situation, and is emphasized merely on account a considerable part of the decline due to liquiof the ease with which it can be determined. dation. Between April and November, how- Other factors, no less important, in particular ever, the level of retail prices has been much the high level of taxation, may or may not steadier. Thus, during that period there has contribute to this state of affairs. ' See this issue, p. 132. Conclusion.—So far as this discussion has «Prepared by the London School of Economics, from bank rate, thrown any light on the present industrial bonkers' deposit rate, three months' bill rate, and day-to-day rate. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

JANUARY, 1923. FEDERAL RESERVE BULLETIN. 53 situation in Great Britain, it seems that the date named the floating debt amounted to 38 several disruptions since 1913 between the per cent of the total debt of France; that the cost of the different elements which assist in internal floating debt is 36 per cent of the total determining the prices of commodities, while internal indebtedness; and that the external of some magnitude, are insufficient to account floating debt is 44 per cent of the total exfor the recent stagnation of trade, which is ternal debt. As the external debt is carried evidenced by the fact that the course of prices at the rate of exchange of the day mentioned, gives little indication of any substantial its statement in francs is subject to fluctuation revival. from one time to another, with consequent effects It is therefore of special significance that, upon its ratio to the total indebtedness of the despite some recent improvement in the ex- country. port trade, the prices of exported commodities The magnitude of the internal floating debt remain stable. The Board of Trade index was as well as its ratio to the total indebtedness of unchanged as between the second and third the country attracts attention to it as one of quarters of 1922, while the Federal Reserve the most serious problems of French public Board number, despite a temporary mid-year finance. The principal items of this internal rise, has registered a net fall of 4 points (158 floating debt are the bons de la Defense to 154) between January and November. In Nationale and the advances from the Bank of a country which engages so predominantly in France. foreign trade, the absence of revival is unlikely to be attributable to price disparity un- BONS DE LA DEFENSE NATIONALE.5 less very strong evidence be produced to support such a conclusion. This lacking, and export Issues during the war.—The bons de la prices failing to show signs of advance in Defense Nationalea were a very important response to accumulating demand, presaging factor in war finance. It will be recalled that industrial recovery, it may reasonably be con- in the summer of 1914 the French Government cluded that Great Britain's ills are external, issued a 3^ per cent amortizable loan, which, rather than internal, and that revival waits owing to the outbreak of the war, was not at upon an amelioration of the economic situation all successful. This failure, combined with of her foreign markets. the generally disturbed conditions in the financial market, made a war loan apparently im- FRANCE. possible. The almost unanimous belief that the war would be brief also encouraged a policy . THE INTERNAL FLOATING DEBT.4 of short-term financing. By the law of August 5, 1914, the French Government was given ex- The size and heavy burden of present-day tensive powers for raising extraordinary funds. public debts constitute an economic factor The chief sources indicated were short-term second to none in the countries of continental treasury bills (bons) and advances from the Europe. Among the various items making up Bank of France. these public debts, the floating debt is most Issues of treasury bills had played an imlikely to be charged with financial dangers. The portant part in financing the war of 1870, and present article continues the discussion of the they had since been resorted to in small volgeneral problem of the public debt of France umes. On August 1, 1914, there were 427,begun in the FEDERAL RESERVE BULLETIN for 000,000 treasury bills in circulation. They December, 1922. It is the object of this article were a familiar form of investment to banking to consider in detail the internal floating debt of institutions, but were little understood by the France, which represents a problem of the first public. The banks, however, on account of magnitude in contemporary European finance. the moratorium and for other reasons, were in On March 31, 1922, the total public debt of no position to purchase them on a large scale. France was carried at 316,984,988,953 francs. Of this, 120,488,259,100 francs represented the 5In the preparation of this section acknowledgment is due Mr. R. C. floating debt, being divided into an internal Miller, of the United States Bureau of Foreign and Domestic Commerce, debt of 87,050,312,100 francs and an external who placed at the disposal of the Division of Analysis and Research a detailed report on this subject. debt of 33,437,947,000 francs. Reduced to 6 The figures for the bons de la Defense Nationale have been taken, so far as possible, from official sources. Owing, however, to the great percentages, these figures show that on the volume of these bills, their numerous denominations and maturities, and their wide distribution, exact accuracy is difficult to attain. The figures for the total bons outstanding were subject to an official correction < For an account of French war finance, see FEDEKAL RESEBVE BUL-of nearly 7,000,000,000francs early in 1922; but at the time this correction LETIN, February, 1921, page 174. was made there was no statement as to when the original error crept in. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

54 FEDERAL, RESERVE BULI^EXIK. JANUARY, 1923. To meet the needs of the occasion, M. Kibot, This privilege was utilized to a great extent, as Minister of Finance, by the decree of September is shown by the accompanying table, though it 13, 1914, announced a special issue of treasury must be noted that the column "treasury bills, called "bons de la Defense Nationale, bills" also includes the relatively unimportant and invited public subscription. The bills item of the old type of bons du Tre'sor. were issued in denominations of 100, 500, and 1,000 francs, maturing in 3 months, 6 months, FUNDING OP THE BONS IN WAR LOANS. and 1 year, but all bearing interest at 5 per cent, [In millions of francs.) payable in advance. They were to be received at par for subscription to future Government Subscribed in— loans, with right of preference in such subscrip- Net tion. They might be redeemed at par at War loan of— i amount. Treasury Cash. bills. maturity or might be renewed. As an additional feature introduced late in 1914, the Bank November, 1915 13,308 6,285 | 2,244 of France announced that it would discount October, 1916 10,082 5,425 | 3,693 these bills having not more than three months November, 1917 10,209 5,174! 4,583 October, 1918 i 22,163 7,246 [ 13,255 to maturity, and would advance loans on the longer bills up to 80 per cent of their nominal Total i 55,762 24,130 23,772 value. Arrangements were made to facilitate the purchase of these bills so that they could This shows very distinctly that the war loans be bought at any branch of the Treasury, at served the purpose, not only of raising new post offices, and banks. funds, but also on an ever-increasing scale, of funding the floating debt as represented by the The sale of the bills increased rapidly, though treasury bills. In fact, the last war loan, for the interest rate on the three-month bills was which the subscriptions in treasury bills were reduced, and the limits of authorized issue were nearly double the cash subscriptions, may be steadily raised, so that it may be said that the considered very largely as a funding operation. act of setting a limit had only nominal signifi- But such funding was rather expensive. The cance. To attract even smaller savings, the highest rate paid on the bons de la Defense decree of August 20, 1915, announced the issue Nationale was 5 per cent. In return for these, of these bills in denominations of 5 francs and accepted at par, the Government exchanged 20 francs. They bore interest at the rate of securities (rentes) yielding currently from 5.65 2 centimes and 8 centimes per month, respecper cent to 5.83 per cent, and without maturity tively, and sold at par, the interest to be added date. at maturity. Thus a one-year, 5-franc bill would be redeemed at 5.25 francs and a From the data given above, it is possible to 20-franc bill at 21 francs. On May 1, 1918, reach some conclusions on the floating debt bills of one-month maturity were issued bear- policy during the war years. First, funds were ing interest at 3£ per cent. provided for the prosecution of the war at a time when, owing to the weak state of the in- The following table shows the subscription vestment market and the disturbed conditions and outstanding circulation of bons de la of the banks resulting from the moratorium, the Defense Nationale during the war years: Government was without other recourse except the issue of paper notes directly or through the BONS DE LA DEFENSE NATIONALE. Bank of France. By the attractiveness of the [In millions of francs.] terms of the above-mentioned bons and the small denominations in which they were issued, Outstand- they discouraged hoarding which otherwise Year. Subscribed. ing at end of year. might have appeared on a large scale, and might have necessitated greater issues of Government 1914 ffrom SeDt. 15) 1,697 1,619 or bank notes. By offering unusual incentives 1915 ::::::::::::::..::: 16,393 6,963 to thrift, they discouraged extravagance and so, 1916 27,675 12,574 1917. . .. 40,099 19,521 to some extent, the competitive bidding up of 1918 47,791 22,334 prices. In addition they performed the true Total subscriptions 133,655 function of a floating debt, namely, to meet by a temporary expedient the requirements of the Government until a more satisfactory disposi- It will be recalled that these bills were retion of the indebtedness could be provided. ceivable at par in subscription to war loans. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

JANOABT, 1923. FEDERAL RESERVE TUTT.T.F.TTTT. 55 Bons de la DSfense Nationale since (he war.— In 1920 the Government issued two large The war finished, the French treasury was con- long-term loans, which funded 12,362,000,000 fronted with a choice between meeting current francs more of treasury bills. deficits out of long-term or short-term borrowing. For several reasons the latter course was FUNDING THE BONS THROUGH POST-WAR LOANS. chosen. Among the reasons which may be [Millions of francs.l cited was the cost of the loan of 1918 and doubt as to the capacity of the country, faced with the problem of readjusting business, to absorb Loan of— a long-term loan of any magnitude. Probably the expectation of early receipts from German reparations had an influence, as well as a failure Feb. 19,1920 i 15,941 to anticipate the enormous expenditures that Oct. 20, 1920 1 28,089 j would be necessitated during the next few years. Total. 12,362 The result was to continue to place dependence in the bons de la Defense Nationale, and from These operations again were expensive for the end of December, 1918, to the end of Janu- the Government, as the loan of October was ary, 1920, the bons outstanding doubled, a 6 per cent issue, sold at par, while that of increasing from 22,000,000,000 francs to 46,- February, though bearing only a 5 per cent 000,000,000 francs. It was only%n December coupon, is redeemable at 150, thus largely 23, 1919, that the Government, through the increasing the rate to maturity. However, Credit National, issued a loan, which real- the funding of even 12,000,000,000 francs was ized 3,960,000,000 francs. It bore a 5 per of material value in lightening the burden of cent coupon, but as it was issued at 495 francs the floating debt. Since 1920, only one fund- (par 500) and is repayable between 1940 and ing operation has been undertaken and that 1995 at 600, besides having lottery features, it was small. The Credit National offered in is evident that the annual charge was consider- November, 1921, a loan to the amount of ably more. Moreover, the actual interest rate 3,000,000,000 francs, on which 2,941,000,000 on this loan was higher than that carried by the francs net were realized. Of this, 1,070,000,000 bons de la Defense Nationale, none of which francs were subscribed in bons de la D6fen.se were taken in exchange for the 1919 issue. Nationale, and to this extent it was a funding operation. On -this the rate was 6 per cent, Despite expectations to the contrary, it was the bonds being offered at 498.50 (par 500) found impossible to effect drastic reductions in repayable at par between 1929 and 1934, but the rates of interest on the floating debt. By with lottery features, again providing evidence a decree of December 30, 1918, the rate of that the state of the money market favored interest on the 6-month bons was reduced to reliance on the bons de la Defense Nationale. 4£ per cent, other rates remaining unchanged. The Government issued no loans in 1921, other The bons attained such popularity that subthan the two-year treasury bills. The 3 to 5 scription to them has increased enormously year issue of October, 1922, could be subscribed since the war. Early in 1919 two more only in currency, though it is possible that features were added to the bills, which have some of the bons may have gone indirectly added to their attractiveness: (1) By the law for such a purpose.7 of January 26, 1919, they might be crossed with two parallel, lines (like crossed checks), and The increase in treasury bills since the war bills so crossed could be cashed only through has been steady and rapid.** The largest a bank or by members of the bourse; and (2) expansion took place in 1919, when the figures by indorsement on the face, a particular govern- rose to 47,934,000,000 francs, owing to the mental office might be designated as the sole absence of competition with other Government place of redemption. This precaution was issues. During the next year the increase was fortified by the further provision of March 18 very small, leaving the figures at 52,352,000,000 of the same year that such crossed bills must at the end of the year, since investors preferred be indorsed by the person presenting them. the two long-term issues referred to above. The object of these provisions was ostensibly The^time loans, therefore, though they did not to protect holders from loss or theft; it may succeed in effecting a net reduction in the also have been to discourage their free negotiation in commercial transactions. »That is, by the subscribers obtaining cash through discounting their bons at the Bank of France. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

56 FEDERAL RESERVE BULLETIN. JANUARY, 1923. treasury bills at the end of the year, did pre- Problems arising from the bons de la Defense vent an undue increase in this item of the Nationale.—The bons de la Defense Nationale floating debt. have served as a source of income in amount In the year 1921, net sales of the bons comparable to that received from taxes and de la Defense Nationale amounted to 17,064,- other revenues from 1914 to 1921. 914,600 francs. If this sum is added to the figures of December 31, 1920, the total out- COMPARISON OP INCOME FROM TREASURY BILLS AND standing woujd have been about 68,225,000,- TAXATION. 000 francs. Owing to the correction of pre- [In millions of francs.] vious figures it was actually 58,500,000,000 francs. Taxa- '• tlon, | War In the spring of 1922 a further attempt was Year. Treasury perma- ' profits bills." nent i tax. made to reduce the carrying charges of the sources. '• floating debt. On February 26 the following scale went into effect; 1-month bills, 3 per cent; 1914 . . 1,190 4,196 3-month bills, 3J per cent; 6-month bills, 4 1915 4, SiS •1,130 i 1916 5,643 4,932 i per cent; and 1-year bills, 4-J per cent. 1917 (i,973 5,977 1 209 As an inducement to holders of 1-month 1 1 9 9 1 1 S 9 2( 3 j , 6 1 6 5 0 1 " 9 , , 2 7 1 0 3 7 : 5 0 7 7 S 2 bills to renew, the interest rate is raised to 3.30 1920 3,49s 14,94s ! 3,224 1921 17,065 16,547 i 3,169 when maturity is extended to 2 months and 1922 . 1 19,831 I 13,050 3.40 when payment is postponed for 3 months from the date of issue. On March 12, 1922, 1 Estimated. the emission of 5 and 20 franc bills was sus- The advantage of these bons de la Defense pended. Nationale during the war period have already Whether because the interest rate is no been summarized. The value of this issue longer sufficiently attractive, or because there to the Government both during the war and is a lack of investment capital, sales of bons after, justifies the official statement that de la Defense Nationale have shown a decided "the bons de la Defense Nationale were falling off in 1922, as may be seen from the during the war and still are the principal following table: resource of the treasury." Nevertheless, there are several serious dis- SALES OF BONS DE LA DEFENSE NATIONALE IN 1922. advantages in these issues. The outstanding Francs. fact is that, even assuming no further increases, January 1,360,000,000 there are outstanding over 60,000,000,000 February 305,000,000 francs of maturities due within 12 months of March 746,000, 000 any given date. Assuming that the maturities April 689,000,000 May 1,362,000,000 are evenly distributed, it requires that maturi- June 919,000,000 ties of approximately 5,000^000,000 francs be July 8 -1,284,000,000 met; every month, whether by extension, con- August 411,000,000 version, or new sales. September 468,000,000 The second fact to note is the heavy carry- Net total (9 months) 4,982,000,000 ing charges of these bons. On March 31, 1922, when the amount outstanding was These figures show that the average monthly 60,839,311,000 francs, the computed annual sales were only about one-third of what they charge was 2,817,889,400 francs. While the had been in 1921. During 1922 there were charge is onerous, it is less than that required by three large Government loans, the two of the an issue of a conversion loan. This is demon- Credit National of 4,710,000,000 francs and strated by the interest rate on the Government 3,290,000,000 francs, respectively, and that of issues noted above, by the rates on the various the 3-5 year treasury bonds of 8,191,000,000 Credit National loans floated in recent months, francs, or approximately 16,000,000,000 francs and by the rate on the 3-5 year treasury issue together. put out in October, 1922. The rate of interest The terms of these loans, which were con- to investors in the last-named issue was sidered successful, were, however, so onerous 6.38 per cent if redeemed in 3 years and to the Government that the reason for not 6.54 per cent if redeemed in 5 years, while attempting to employ them as funding issues the cost for that part of the issue which is evident. was disposed of through banks has been unofficially computed at over 6.75 per cent. * That is, repayments exceeded the net new sales by this figure. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

JANUABY, 1928. FEDERAL RESERVE BULLETIN. A third argument commonly advanced of France and of the commercial banks do not against the bons de la Defense Nationale is show that this privilege has been abused; that, being easily negotiable, they are in while, on the other hand, it can not be doubted effect and in a greater or less degree a kind that this feature of the bons has been of great of interest-bearing paper currency. There advantage to the Government in attracting is ample evidence that since the war they inactive funds, both of banks and private have been used to some extent as a circulating individuals. medium. It would seem probable that if Beside the bons de la Defense Nationale, these bills replaced or supplemented the there have been issues of ordinary treasury regular Bank of France notes on a large scale, bills of the pre-war type. Their volume on there would be some reflection of it in prices. July 31, 1914, was only 427,000,000 francs, A study of price levels does not lend much almost entirely, if not entirely, held by banks support to the argument that they circulate and financial institutions. At no time has freely. At the end of December, 1918, there the amount outstanding exceeded 3,500,000,000 were about 22,000,000,000 francs of bons out- francs. On April 15, 1922, the figure was standing. The bank-note circulation at the 1,413,000,000 francs, though it has since same time was about 30,000,000,000 francs. increased somewhat. Ordinary treasury bills The bons on October 1, 1922, the last available to the amount of 542,651,000 francs were sold date, were about 63,404,000,000 francs, an in- in September. The ordinary treasury bills crease of about 200 per cent. The circulation present only the normal features common to was about 37,000,000,000 francs, an increase of such issues, and the interest rate is nearly about 23 per cent, while the index of wholesale the same as on the bons de la Defense {>rices as computed by the Statistique Ge'ne'rale Nationale. or comparable dates are shown in the following table: ADVANCES OF THE BANK OF FRANCE. INDEX OF WHOLESALE PRICES (STATISTIQUE GENERALE). Although smaller in volume than the receipts from the bons de la Defense Nationale [1913-100.] (except in 1914), the advances of the Bank of France to the State were a very important Month. 1918 1922 factor in war finance, and still form the second largest item of the interior floating debt. 360 337 The following table, from the Economiste November .. 358 352 353 Europe'en of August 11, 1922, shows the relative importance of these advances compared with other exceptional resources. While such statistics, of course, do not prove that the bons de la Defense Nationale PROPORTIONAL DISTRIBUTION OF THE VARIOUS FINANdo not circulate as a purchasing power medium, CIAL RESOURCES OF THE FRENCH GOVERNMENT. they tend to show that whatever circulation [In percentages.] they may have seems to have had little effect on prices during the present time, or, indeed, Operafor the last two years. tions to nal N e e a v r e e r t a h e m le e s d s i , u t m h e o b f o e n n s o r d m e o l u a s D po ef t e e n n s t e ia l N c a r t e i d o i - t Year. A o o f f d v i b s a a s n n u c k e e . s 1 s In lo te a r n i s o . r F l o o r a e n i s g . n p f a a o y c f i m l w it e a a n r te ts claims. inflation. Under date of November 24, 1914, the general council of the Bank of France 1914 62.4 36.9 0.7 issued instructions that the bank could loan 1915 5.6 80.9 13.5 money on the one-year and six-month bons up 1916 7.9 62.3 29.8 1917 14.5 52.2 33.3 to 80 per cent of their nominal value, and that 191S 12.7 64.3 23.0 bons of maturity not exceeding three-months 1919 16.3 53.8 22.1 7.8 1920 2.0 80.6 8.3 9.1 would be discounted. As these bons are issued 1921 74.2 4.7 21.1 solely on the credit of the Government, the Proportion, 1914-1921.. 10.4 65.0 19.0 5.6 possibilities involved in this ruling are obvious. As a matter of fact, the statements of tha Bank 1 Includes relatively unimportant advances by the Bank of Algeria, entirely repaid by Dec. 31, 1920. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

58 FEDERAL RESERVE BULLETIN. JANUARY, 1923. The following table shows the actual state of The importance of the table lies in the dates this item from the beginning of the war: of these authorizations. By the early part of 1915 the sale of bons de la Defense Nationale, ADVANCES OF THE BANK OF FRANCE FOB WAR PURPOSES. and later in the year the obligations de la De- [Millions of francs.] fense Nationale, were providing large volumes Amount ad- Outstand- of funds, while in November, 1915, came the Year. vanced dur- ing at end ing year. of year. first war loan. No further demands were made on the Bank 1914 3,900 3,900 of France until February, 1917, a period of 1915 1,100 5,000 1916. 2,400 7,400 about a year and a half. This is at least 1917 5,100 12,500 1918 4,050 17,150 partly explained by the very large credits ob- 1919 8,350 25,500 tained abroad in 1916. In 1917, however, 1920 1,100 26,600 1921 —2,100 24,500 despite interior and exterior loans, it was again 1922 -900 23,600 necessary to appeal to the bank, while in 1918 two advances, one in April and another in These figures do not include the small June, were required. permanent pre-war advances of 200,000,000 At the end of that year the question of refrancs, granted in exchange for its privilege as newing" the privilege of the Bank of France a bank of issue, -on which the State pays no came up for consideration. The law of Deceminterest. ber 20, 1918, granting the renewal is given in The dangers involved in financing a war full in the FEDERAL RESERVE BULLETIN of with paper money, issued by the central bank April, 1919, page 339. By this act, the bank in the form of advances to the State, were recogpaid 200,000,000 francs in lieu of the tax on nized in France from the first, particularly in war profits, to cover the period from the outview of the fact that the advances from the break of war down to December 31, 1917. Bank of France bore only 1 per cent interest,9 For the year 1918, the law being to that extent while the only possible alternative—the treasretroactive, the bank paid into the amortizing ury bills—cost 5 per cent. Therefore, the fund one-half of the profits of the 1 per cent Government resolutely undertook, by the coninterest paid by the State, so that its net vention of September 21, 1914, to follow the interest amounted to only 0.4375 per cent for precedents established under similar conditions that year. Further, 85 per cent of the profits of 42 years before. This convention provided the discounting of treasury bills issued against that beginning one year after the cessation of advances to foreign States. As a result of hostilities the advances would bear 3 per cent these measures the amortization fund, which interest. The ,2 per cent excess interest had been provided for by the convention of would not go to the profits of the bank, which, September 21, 1914, made its appearance in it must be remembered, is a private corporathe bank statement of December 24, 1918, at tion, but into a fund to assist in the amortizing 437,414,951.57 francs. It may be stated here of the advances. Against this amortization that on October 27, 1920, these moratorium fund, however, the Bank of France might losses had been covered, and from that date charge losses arising from the moratorium—in the amortizing funds could be applied to the this respect following the decision of the advances to the State. British Government regarding the Bank of In the early part of 1919 the State again England. turned to the Bank of France, from which it During the war the legal limit of the adobtained by the law of March 5 another advance vances to the State increased irregularly. of 3,000,000,000 francs, on which the interest rate was set at 0.75 per cent instead of the LEGAL LIMITS OF ADVANCES TO THE STATE DURING THE nominal 1 per cent. The war being over, WAR. considerable public sentiment appeared un- Total Date. au A t d h v o a ri n z c e e d. a a u d th v o a r n i c z e e s d. b fa o v r o ro ra w b i l n e g t f o ro m a c t o h n e t i b n a u n a k ti . o n Th o i f s t w h a e s p r o e l f i l c e y c te o d f in the convention of April 24, 1919 (law of Aug. 5,1914. 2,900 2,900 Dec. 26,1914 3,100 6,000 July 18, 1919), which, though it granted July 10,1915 3,000 9,000 3,000,000,000 francs, without interest, was Feb. 10,1917 3,000 12,000 Oct. 4,1917.. 3,000 15,000 intended to be the last advance. It further Apr. 5,1918. 3,000 18,000 June 7,1918. 3,000 21,000 stipulated that the next loan, whether of rentes or treasury obligations, should be applied to • The rate was nominally 1 per cent. Actually, owing to a one-eighth extinguishing this last advance. With this per cent tax on the issue, it was only 0.00875 net. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

JANUABY, 1923. FEDERAL. RESERVE BTJIAJETIN. final convention, the limit of legal advances article, while the surplus applicable to the was raised to 27,000,000,000 francs. amortization of the advances was 796,310,223 It will be recalled that the convention of francs. On this credit balance of the account, September 21, 1914, had stipulated that, the interest, calculated at the net rate of adbeginning a year after the cessation of hostili- vance to the State, was 11,278,595 francs. ties, the amortization provision should require This policy of amortizing the advances has an interest rate of 3 per cent on advances. sometimes been criticized on the ground that Pursuant to this provision, the 3 per cent rate it is uneconomical for the State to borrow went into effect beginning with October 24, money at over 6 per cent from its citizens, to 1919, while of the 1 per cent on the first extinguish loans from the bank on which it 21,000,000,000 of advances and the 0.75 pays less than one-half of 1 per cent. Such per cent on the next 3,000,000,000, one-half criticism arises from misunderstanding both was also carried to amortization. This makes the consequences of these advances and the the net rate to the State one-half of 1 per cent character of the Bank of France itself. Against on the first 21,000,000,000 francs, and 0.375 these advances, the bank issues its notes, which per cent on the next 3,000,000,000 francs, are, of course, fiat money, though these notes from which must be deducted the one-eighth circulate alongside of and are indistinguishable of 1 per cent due the State, as mentioned above. from the notes issued in response to the actual During the year 1919 the financial needs of demands of commerce. The gradual extincthe Government were so great and the cost of tion of these advances in no way impairs the money so high that no loan, as contemplated capacity of the bank to finance the needs of by the law of July 18, 1919, was floated, though commerce; on the contrary, it enhances the 1,350,000,000 francs were repaid in several credit of the bank so as to improve that installments to the bank. As a result, the capacity. total advances to the State at the end of the It is important, furthermore, to recall the year stood within 1,500,000,000 francs of the character of the bank itself. The Bank of legal limit (December 24, 1919, 25,500,000,000 France is a private, or rather, a quasi-public francs). During 1920 the advances rose again, corporation. The problems of its condition and although, as a result of the loan of Febru- and credit, though closely allied to, are disary, 1920, the advance was reduced from 26,- tinct from those of the State. The advances 300,000,000 to 25,300,000,000 francs, this figure to the State are made against 3-month treasury could not be maintained. A ccordingly, a new bills, not differing in essential character from convention was entered into on April 13, 1920, the common type of treasury bills, or even by which the legal limit of advances was con- from the bons de la Defense Nationale. The tinued to December 31, 1921, at 27,000,000,000 difference lies in the fact that against these francs, with the proviso that it should be bills, which have an especially favorable reduced 2,000,000,000 francs on December 31 of interest rate, the Bank of France, under its each succeeding year, beginning with December privilege, may issue bank notes. Further, 31,1921. This was confirmed by the convention the State does not control the bank directly of December 29, 1920, which was promptly by laws of Parliament; its relations to the ratified by law. As a result the legal limit of bank are governed by conventions or agreeadvances was to be 25,000,000,000 francs on ments entered into between the Ministry of January 1, 1922, and 23,000,000,000 francs Finance and the general council of the bank, on January 1,1923. The legal limit had stood at subject to ratification by law. While the bank 27,000,000,000 francs from the law of July 17, works in accord and cooperation with the 1919, to December 31, 1921. The largest sum State, their relations are by no means merely actually borrowed at any time was reported those of principal and agent. This is demonin the first week of May, 1921 (26,700,000,000 strated by the nature and tone of the convenfrancs), although the average for 1921 (25,-tions, and notably in such instances as that 300,000,000 francs) was considerably lower of the convention of April 24, 1919. than that for 1920 (26,000,000,000 francs).10 In concluding the discussion of this part of The amortization fund had reached, on De- the floating debt, reference is necessary to the cember 28, 1922, a total of 1,335,383,318 francs, statements of its conditions as they fluctuate of which 527,794,500 francs were attributed to from week to week. These fluctuations, which the guarantee fund mentioned earlier in this may be considerable, are not necessarily indicative of real change. For instance, in the » Since this article was written it has been reported that by a convention concluded in the last week of 1922 the reduction for that year early months of 1922, the statement of the will be only 1,000,000,000 francs, making the legal limit for 1923advances showed a remarkable decline, in the 24,000,000,000 francs. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

FEDERAL RESEftVE BtTLUBTIN. JANUARY, 1923. last week of April sending at 22,100,000,000 by the fact that this item was very much out francs, or some 2,900,000,000 francs below of line in February, and its advance from 242 their authorized limit. This was commonly to 311 has partially corrected this position. regarded as evidence of an important change The cause of this advance probably lies in the in the State's account with the bank—actually increased demand for iron and steel, which it was but the reflection of a temporary surplus was very marked in the fall of 1922. The exin the treasury occasioned by the receipt of planation of the rise in animal foods, raw ma- 4,710,000,000 francs through the Credit Na- terials, and textiles is doubtless associated with tional loan of February. As these funds were the exchange situation, and in the case of texdisbursed for the purpose for which the loan tiles, with the world price of raw cotton. Small was raised, the State again resorted to the advances occurred in food prices, but it is rebank for its current needs. markable that the item of vegetable foods rose On the other hand, the note circulation, only 12 points, while all other items advanced though affected by these advances, is not between 24 and 128 points. solely dependent on them. Notes may be Analysis of the Federal Reserve Board index issued against treasury bills discounted for also shows a turning movement in February, advances of the French Government to foreign though the total change through November States; they may be issued in discount being only 23 points. The greatest advance of bons de la Defense Nationale maturing in occurred in goods imported, with goods exless than 3 months, and they may be issued, ported a not very close second. This is mostly as before the war, to meet the needs of com- due to the exchange situation—in the case merce. The impossibility of following from of exports partly to the increase in textile week to week the details of these last two items prices, which form a very considerable item of makes any attempt to explain the fluctuations French exports. The three items of goods in note circulation by reference to the two produced, producers' goods, and consumers' forms of advances a matter of conjecture. foods, showed little change. This seems to emonstrate that the price movement reflected NOTE.—On December 28, 1922, the Minister of Finance in the Federal Reserve Board index is largely stated that the floating debt had not increased during 1922. As the monthly figures showed a net increase of 4,892,- a result of the rise in exchange on England and 000,000 francs in bons de la Defense Nationale in the first the United States, since goods produced show nine months alone, it appears that this indicated increase so little change, while the other two items, promust have been largely canceled by using the proceeds ducers' goods and consumers' goods, are naturof the 3-5 year loan of October. In so far as this loan was used as a funding operation, its terms were heavier than ally lagging, as being further removed from the those of any issue previously employed for that purpose. influence of international trade. On the other hand, the index for July is identical with that for November, though the average values of the PRICES. franc were, respectively, 8.23 cents and 6.86 The sharp rise in French prices during the cents. last quarter of 1922 again brought the price situation into special prominence. Since Feb- PRICE MOVEMENTS IN FRANCE DURING 1922. ruary, 1922, prices in France show an upward movement, whether measured by the Federal Federal Reserve Board Statistique Generate index. index. Reserve Board index or that of the Statistique G6n6rale. According to the Federal Reserve Board index, there was a gradual advance to Month. Raw Pro- c A om ll - Tex- July, a sharp decline for August and September, m ria a l t s e . - d g u o c o e d r s s . ' m ti o e d s. i- tiles. looas. ! ties< and an abrupt rise in November. According to the index of the Statistique Ge"ne"rale, the 1922. rise has been practically uninterrupted, but January 308 229 286 363 239 314 was especially abrupt for November, continu- M Fe a b rc ru h ary 3 30 0 5 0 2 22 2 9 7 2 2 8 8 3 7 3 3 4 2 5 6 2 2 8 8 8 5 3 3 0 0 6 7 ing less sharply in December. April 318 228 299 319 310 314 May 322 226 302 33S 310 317 I)etailed analysis of the index of the Sta- June 327 230 303 372 318 325 July 332 236 306 392 293 325 tistique Ge'ne'rale shows that the advance has August 329 233 297 421 292 331 been most pronounced in animal foods, raw September... 323 234 293 418 279 329 October 328 235 293 446 283 337 materials, minerals, and textiles. The increase November... 348 245 306 468 289 352 December 473 300 2 in minerals can be explained, partly at least, Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

.TANCARI, 1923. FEDERAL. RESERVE BULLETIN. 61 GERMANY. The question of whether or not stabilization is necessary can best be answered by a survey of THE CURRENCY STABILIZATION PROBLEM.11 the effects of inflation on both labor and capital. According to German estimates, despite the Economic and financial conditions in Gerfact that mark wages had increased about 80 many have been moving in a vicious circle times, the purchasing power of German wages since the war and have recently become so at the end of November, 1922, was about 50 critical that a general discussion of the situaper cent less than in 1913. Wages of unskilled tion is opportune. The fall of the mark, labor have increased about 130 times, reprewhich has been a disturbing factor in the senting a purchasing power of 87 per cent of country's economic life for the past three 1913, while wages of especially skilled workers years, has in recent months threatened to and professionals have increased 48 times, repcause a complete economic and political colresenting a purchasing power of 32 per cent of lapse unless effective measures are adopted to 1913. stop the operation of the forces making for further depreciation of the currency. Up to the The effects of the steady depreciation of the g currency on capital and the national wealth of resent time the measures undertaken by the Germany va&y be seen from the following figures: rerman Government to counteract these forces, such as the foreign-exchange bill and the law TOTAL PAR VALUE AND MARKET VALUE OF GERMAN prohibiting the flight of capital, have been SECURITIES IN PAPER MARKS AND IN GOLD. futile. More marks are constantly issued, their value continues to fall, prices advance, a (In billions of marks.] shortage of capital and credit is created, and kvalueJ Value (in budgetary estimates of public and private gold). bodies are thrown out of balance. All of these factors are closely interrelated; they are allEnd of 1913 17.4 31.2 causes and all effects, and it is impossible to Beginning of Januarv, 1921 • 29.0 118.4 Beginning of January, 1922 50.6 438.3 9.7 determine what are the original causes and Beginning of July, 1922 74.9 683.4 7.2 Beginning of September, 1922 ' j 79.0 850.0 2.9 what the primary effects. Although Germany faces many intricate ' Estimated. problems which are closely related, stabiliza- Although one can not gather from these tion of the currency appears paramount. figures a very accurate estimate of Germany's So long as the present currenc}^ situation contotal corporate wealth, since important changes tinues it is impossible to put the budget on a have taken place which may have worked tosound basis, the fixing of real prices and wages ward a decrease in value, these figures neveris made impossible, and the redistribution of theless give some indication of the actual imwealth, by which the larger part of the middle poverishment of Germany. class is reduced to poverty, must proceed. A clearer picture is gained if one compares the Thus, the problem of stabilization becomes a index numbers of quotations of German stocks political question which at the present time is in terms of paper marks and in gold marks. the main issue between the two most important political parties in Germany—the Social Demo- INDEX OF GERMAN STOCK QUOTATIONS. cratic Party, representing the large masses of workers, and the People's Party, to which the In paper In gold most important leaders of industry and com- marks. marks. merce belong. Necessity for stabilization.—There is no dis-Average, 1913 j 100 100.00 January, 1921 \ 265 18.33 pute between the two parties as to the necessity June, 1921 ! 279 16.89 for stabilization. The controversy centers December, 1921 ! 582 12.73 May, 1922 : 689 9.97 mainly about the time and method of stabiliza- July, 1922 j 698 5.94 August, 1922 ! 864 3.13 tion. The statement, nevertheless, is sometimes made both in Germany and abroad that it is to Germany's advantage not to permit the mark to Although the value of German securities has rise, since the present depreciated state of her increased very rapidly since the middle of Occurrency is the greatest aid to her foreign trade. tober, 1922, owing to the catastrophic decline in the value of the mark during the last few 11 This study was prepared in the middle of December, prior to the months, its gold value is probably not higher declaration by the Reparation Commission of Germany's voluntary than it was in July or August. default. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

62 FEDERAL, RESERVE BUT.T.F.TIK. JANUARY, 1923. The above figures further show that the SU economic aspects of the stabilization prosperity of German industry since the armis- problem may be discussed under two distinct tice was m most cases only apparent, and that heads, viz, fiscal, such as the budget and it is impossible to judge Germany's prosperity balance of payment; and technical, such as from the dividends paid or the high capitaliza- gold redemption reserve, the rate of conversion, tion of some of her corporations. The indus- method of stabilization, etc. trial machinery in Germany is operating, but Germany's budget and balance of payments in most cases without any real profit. have been controlled since the armistice largely The foregoing brief survey of the effects of by reparations, and are at the present time in currency inflation is sufficient to prove the such a confused state that it is almost impossigreat necessity for stabilization. This necessity ble to state whether they could be balanced in is further increased by the attitude of Ger- a comparatively short time or not. many's creditors, who are well aware of the fact The technical currency problem, although that so long as the mark continues to depre- more intricate than any of the stabilization ciate, Germany will not be in a position either schemes carried out during the last 30 years, to limit her floating debt or to balance her does not appear to be as difficult as the politibudget, and will as a consequence be unable to cal and fiscal problems mentioned before. The make substantial reparation payments. Sta- main question that arises is whether Germany bilization of the currency therefore was urged is in a position to stabilize the currency out of by the representatives of the Eeparation Com- her own resources or whether foreign financial mission in their last conference with the German aid is necessary. Probably the principal issue Government in Berlin as the first step toward under this head is the gofd redemption fund. Germany's reconstruction. Although opinions differ as to whether or not Factors in the problem.—Since stabilization Germany should risk the gold of the Reichsof the mark is regarded as of vital importance bank in an attempt to stabilize the currency, by both the Germans and the Allies, the ques- the fact remains, nevertheless, that the total tion arises what are the factors involved in value of the gold held by the Reichsbank at the solution of this problem and how can they the present time (middle of December), be managed. From the outset it should be amounting to 1,005,000,000 marks, exceeds the borne in mind that the factors involved in the total value of the Reichsbank paper notes outsolution of Germany's present difficulties are standing by 434,000,000 marks, as may be seen economic in their nature, while the execution from the following table: of the various plans of stabilization involves to a large extent political considerations. Even GERMAN MARKS AND GERMAN GOLD SUPPLY. assuming that the political questions could b n e o t s u o n l d v e e r d m i t n o e t a h n e p e o x s t s e i n b t i lit w ie h s e o re f st t a h b e i y li zi w ng o u th ld e •R b e a i n c k hs- Ap m p a ro te xi- v G a o lu ld e th G e o l E d e r i e c s h e s r b v a e n o k f . notes exchange of paper mark, the success of stabilization depends upon outstand- value of marks factors which can not be foreseen, such as the (m i i n l g lion m (U a .S rk . s o in u g t s ( t U an . d S - . Millions M of i l U lio . n S s . stability of the German Government, its ability marks.) cents). dollars). OI marKS. dollars. to impose a rigorous taxation system and to decrease expenditures. 1921. End of— A solution of the political difficulties, espe- First quarter.. 69,417 1.60 1,110 1,092 260 Second quarter 75,321 1.40 1,045 1,092 260 cially of the reparation question, must therefore Third quarter.. 86,384 .95 821 1,024 244 be regarded as a necessary preliminary to any Fourth quarter 113,639 .52 591 995 237 1922. attempt to solve the economic problems con- End of— nected with the stabilization of the currency. First quarter.. 130,671 .35 457 997 237 Second quarter 169,212 .32 541 1,004 239 The statement that measures toward the Third quarter.. 316, S70 .07 223 1,005 239 stabilization of the currency be undertaken, Fo (D ur e t c h . q IS u ) arter 970,202 .014 136 1,005 regardless of the attitude of the Separation Commission, is fallacious, for although it is true Thus the gold question, which in most cases that in case the German Government under- of stabilization is a very difficult one, dependtook to support the mark with the Reichsbank's ing to a large extent upon the ability of the gold, temporary stabilization could be attained, country to float a gold loan abroad, may to a the resumption of payments in cash and in certain extent be regarded as solved so long as kind for reparation account would in a short stabilization is carried through at a rate not time deplete the gold stock of the country. far in excess of the mark's present exchange Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

.lANUABY, 1923. FEDERAL, RESEEVE BULLETIN. 63 value. In addition, the low valuation of the based on the external value of the mark, a mark abroad makes it possible for a compara- gradual rise of domestic prices will take place tively small amount of gold to buy practically for some time, until the internal and external all paper marks held abroad and thus to elimi- value of the mark axe equalized. If, on the nate a potential factor of speculation. other hand, the rate of conversion is to be Should the stabilization be carried out based on the domestic value of the mark, a entirely upon the basis of the Reichsbank's fall in prices is unavoidable, since this would gold, it would in this respect be similar to that mean a sudden rise in the rate of mark exof the Russian currency reform under Count change and would affect the prices of im- Witte, in which case the gold held by the ported goods, which are of great importance Central Bank exceeded the total market value in Germany. Economists in Germany and of the paper notes outstanding. Closely con- abroad are well aware of these difficulties nected with this problem are several others, dis- resulting from a too high or too low valuacussed further on, such as the question whether tion of the mark, and therefore believe that stabilization should be carried out with or with- no definite rate should be fixed at the present out foreign aid, whether stabilization should be time. Many are in favor of fixing the value effected immediately, or whether the efforts of of the mark within certain limits between the Government should be directed at first the external and internal valuation of thf> toward preventing further depreciation and en- mark. This will eliminate many difficulties couraging a gradual and steady improvement which would be unavoidable if the currency of the currency and leaving the final stabiliza- were to be fixed at a definite valuation. It tion to some future date. may also happen that the rate of conversion Another important problem to be discussed after it has been once fixed will have to be in this connection is the rate at which the changed to a higher or lower level, as the mark should be stabilized. case may be. Rate of stabilization.—Stabilization of a To soive the various political and economic currency is in most cases combined with a questions which Germany is facing, Doctor devaluation of the original par value of the Wirth, then German Chancellor, in October, currency, which, in fact, means partial repudi- 1922, invited Messrs. Brand andKeynes, of Great ation. The extent of the repudiation de- Britain; Mr. Jenks, of the United States; Mr. pends mainly upon the rate at which the Vissering, of Holland; Mr. Dubois, of Switzerredemption of paper notes into gold is re- land; Mr. Cassel, of Sweden; and Mr. Kamenka, sumed. The fixing of the conversion rate is of Russia, to study the German economic situaone of the most important and most difficult tion, with a view to determining how and under problems and involves political as well as eco- what conditions the German mark could be nomic considerations. Borrowers of money, stabilized. These foreign experts met at chief among whom is the Government, are Berlin at the same time the Reparation Cominterested in having the rate fixed at a low mission held its conferences with the German point, while lenders of money and holders of Government. bonds desire it as high as possible. The rate, The latter placed before the foreign experts however, can not be fixed arbitrarily. Some the following three questions: definite basis for the fixing of such a rate must (1) Is stabilization of themark possible under exist. In Germany at the present time the the present circumstances ? fixing of the rate is the more difficult since the (2) If not, what essential conditions must be mark has a different valuation at home and created in order to render stabilization possible ? abroad. Industrialists are opposed to any (3) What means should be adopted for but the current rate, in order to avoid an stabilization as soon as the essential conditions economic crisis, and the payment of a huge are fulfilled 1 contribution to foreign countries which hold After surveying Germany's economic and cheaply bought marks. Stabilization at a financial structure from all points, of view the high rate will make it necessary to reduce foreign experts submitted two reports, known wages and salaries of labor and Government as the majority and minority reports. The employees, which would lead to labor strug- former was signed by Messrs. Brand, Cassel, gles. It is, however, a fundamental condition Jenks, and Keynes, and the latter by Messrs. of any successful stabilization that there be no Vissering, Dubois, and Kamenka. In addiwage struggles nor strikes for a prolonged tion, upon special request of the German time. The opinion of the industrial classes Ministry of Finance, Mr. Brand presented a is that if the rate of conversion is to be special report in which he set forth his views Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

64 FEDERAL RESERVE BULLETIN. , 1923. with regard to the possibility of Germany ob- indispensable. Thus, according to their views, taining a loan in the London money market. the reconstruction of Germany's finances can There is almost no difference between the not be carried out by Germany alone and majority and minority reports as to the neces- consequently a foreign loan is one of the sity of stabilization and the preliminary requi- preliminaries to gradual stabilization of the sites for stabilization. Both agree that the mark. mark can be stabilized only after a moratorium Another vital point of difference is the time of deliveries in cash and kind is granted for of stabilization. The majority report expresses some time. Once the mark is stabilized they the view that stabilization of the currency believe the budget can be balanced and an equi- should be carried through immediately after the librium of exports and imports brought about; preliminary conditions are fulfilled, and that the their views, however, as to the methods to be rate of redemption should be adapted more or followed in stabilization disagree in several im- less to the internal purchasing power of the portant points. Leading features of the two mark, at which the exchange board should rereports are as follows:13 deem marks in gold. The minority report The majority report suggest*— believes that immediate stabilization is not expedient and that the value of the mark (1) That the German Government organize a board of even at home is too low at the present time for exchange as a special department of the Reichsbank, exempt from interference by the Government and the fixing a final redemption rate. The signers of Reparation Commission, which shall redeem paper marks this report believe that the measures suggested at a fixed rate. by them, combined with suitable action by the (2) That Germany's gold reserve and the low valuation of German Government, will result in an upward her currency render stabilization practicable. (3) That assistance of a foreign consortium is desirable movement of the mark. A final fixing of the to maintain public confidence, but stabilization should rate should take place only when the value not be made conditional upon such assistance. of the outstanding notes will be sufficient to (4) That a slight increase in the floating debt will be meet all the credit needs of the country. necessary at the beginning. (5) To stabilize the currency immediately at between Thus, the majority report advocates an im- 3,000 to 3,500 marks to the dollar, a new unit, some mul- mediate stabilization, while the minority report tiple of the present mark, to be established in the future. advocates a gradual one. Should either scheme The minority report recommends— be carried out, a sharp decrease in prices will be (1) The creation of a new gold mark at about 10 marks to the immediate result, followed by unemploythe dollar. ment, wage reductions, and labor troubles. The (2) The establishment of a new specie bank. scheme of the minority report, however, places (3) Stabilization of the mark to be carried through only the gold reserve in a safer position, since the with the assistance of a foreign loan amounting to at least 500,000,000 gold marks. "specie bank" could not be forced to redeem (4) That efforts be made to raise the mark to a higher the notes upon presentation. Furthermore, value. • final stabilization under this scheme would take (5) Stabilization of the mark when it has reached a place only after the internal and external value sufficiently high rate. of the mark had been equalized. The signers of the majority report believe The views of the experts differ also considerthat the first step toward stabilization after a ably as to the machinery to be set up in order moratorium is granted should be undertaken to stabilize the German mark. The minority by the Germans themselves and that the gold report is much more intricate. It goes into reserves should come from the holdings of the more detail as to the causes of the present situ- Reichsbank. Once the beginning is made by ation and provides also for more numerous the Germans, it will not be difficult to form a measures to be taken. Nevertheless, it leaves consortium of international bankers to give many questions unanswered, as, for instance, further aid to the exchange board. They the lack of a stipulation regarding the rates state that the creation of such a fund will between the new gold mark and the outstandhave such a strong moral effect upon the mark ing paper marks. that in all probability the fund created by the The findings of the foreign experts are of foreign bankers will not have to be used. very great importance to the understanding The signers of the minority report, on the of the present financial and economic conother hand, state that confidence in the Gerditions in Germany. They show that although man mark must be established first abroad the settlement of the reparation question before it can be established in Germany. To is one of the most vital preliminary factors reach this point, they think a foreign loan is before an attempt to reconstruct Germany's finances can be undertaken, the reconstruction •» For full text of the two reports, see pp. 45-49. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

JANUARY, 1923. FEDERAL RESERVE BULLETIN. 65 of Germany depends to a very large extent (9) One half of the proceeds of the internal loan and the upon Germany herself. In this the views of full yield of the foreign loan will be utilized to cover the payments in cash and kind due under the treaty of Verthe foreign experts are opposed to the general sailles. The other half of the proceeds of the internal loan opinion of many prominent German business will be applied to the requirements of Germany's own men, who state that aid can come only from budget. abroad. Both reports show more confidence (10) These measures will enable Germany to balance her budget, check the increase of the floating debt, and in Germany's ability to recuperate than most discontinue the discounting of treasury notes with the Germans have at the present time. Without Reichsbank. All dispensable departments will be abolthe confidence of her own nationals, however, ished, the number of employees decreased, and the Govern- Germany's reconstruction is hardly possible. ment enterprises will be organized on a productive basis. (11) Germany will take all measures to increase pro- Attitude of the German Government.—Accordduction, while retaining the 8-hour day as the normal ing to the views of the foreign experts, the working day. stabilization of the mark depends to a large (12) After the value of the mark has been improved and extent upon the German Government. It is stabilized, all protective tariff duties which have been established against German goods are to be abolished. therefore not without interest to survey the attitude of the German Government toward In order to execute the foregoing plans the the proposed currency reform. In its final German Government proposes: answer to the members of the Reparation (a) Final settlement of the amount of Germany's Commission the German Government stated obligations at the earliest possible moment, so that these that if for a certain period relief were granted obligations, together with the liquidation of the loans, can from reparation deliveries both in kind and be met from an excess of revenue. (b) Freedom from payments in cash or kind under the cash, the Reichsbank was prepared to advance Versailles treaty for a period of between three to four to the German Government 500,000,000 gold years with the reservations previously mentioned. marks for the purpose of stabilizing the mark, (c) Convocation of a conference of international finan-' provided an equal amount should be forth- ciers to decide upon the bank credit to be accorded to Germany. coming from abroad. The official German (<J) Acceptance of suggestions made by the German views with regard to stabilization are set forth Government to the other countries regarding the granting in the memorandum handed to the Reparation of equal economic rights to Germany. Commission on November 13, 1922, which This memorandum depicts very well the may be summed up as follows: attitude of the German Government toward the reports of the foreign experts and its (1) Final stabilization of the mark can take place only after the reparation question is settled in accordance with views as to the reconstruction of Germany. Germany's ability to pay. Since, however, due to the In its main points the views expressed here confused state of the German currency, such a step is at are similar to those set forth in the minority present impossible, preliminary measures must be taken report. The German Government also concurs for the support and improvement of the mark. in the belief of the minority report, that final (2) Such preliminary steps can not be carried out by Germany alone. The support of foreign countries is stabilization can not be carried through at the indispensable. present valuation of the mark, but rather that (3) The German Reichsbank has declared its willing- mark exchange should only be supported and ness to give 500,000,000 gold marks for the project of improved. In addition, they agree that in improving the mark. (4) The preliminaries for such an improvement are: order to prevent an entire collapse, foreign aid (a) That Germany receive a moratorium of payments in is necessary and that the carrying through of kind and cash for a period of three to four years. Deliv- the various proposals should be based upon eries in kind for the devastated regions, so far as they do the prior receipt of a foreign loan amounting not cause an increase in the floating debt, to be continued. (6) That Germany receive for this "supporting scheme" to at least 500,000,000 gold marks. a foreign loan amounting at least to 500,000,000 gold marks. (5) The Reichsbank considers the foregoing conditions REQUISITES OF STABILIZATION. necessary prior to releasing the gold from its reserves. The Reichsbank, however, is unable to guarantee the Reform of Germany's currency through foreign bank credits. stabilization of the mark aims at the rees- (6) The money to be advanced by the Reichsbank and by the foreign banks will be administered by an tablishment of the country's economic equiindependent board consisting of representatives of the librium. The reform, if successful, will insure Reichsbank, the foreign banks, and the ministry of stability of prices, free business from the specufinance. lative element which now dominates all trans- (7) This board will support the value of the currency by buying mark exchange abroad. This measure will tend actions, and ultimately will bring about conto improve the mark rate. ditions whereby fiscal legislation can have its (8) When the progress of stabilization is sufficiently full effect and in which public revenues will advanced, the Government will issue a gold loan. The increase in proportion to expenditures. It Government is also ready to float loans abroad. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

66 FEDERAL RESERVE BULLETIN. .TANDAKY, 1923. should, h.owever, not be overlooked that the volume of paper notes, any attempt to stabisuccess of stabilization depends not so much lize the currency will be futile. upon the adopting or enforcing of a definite (2) The hudget.—From the above discussion stabilization scheme, as upon the removal of it is clear how closely the questions of reparathe causes which have brought about dis- tions and budget are connected. In fact, it orderly conditions in the valuation of the may be said that the critical situation of the currency. The exchange problem at the pres- German budget and the huge excess of expenent time in Germany is therefore not so much ditures over revenues are due primarily to the a question of currency as of the entire economic effects of reparations and currency depreciaposition of the country. In order, therefore, tion. As already indicated, each decrease in better to understand the difficulties involved the value of the mark necessitates an immein the stabilization of the German currency, a diate increase in the amount of marks to meet brief survey will be made of the three most expenditures arising out of reparations or the important factors influencing directly or indi- domestic needs of the Government. Receipts rectly the valuation of the German mark, from taxation and other revenues, on the other namely, reparations, budget, and balance of hand, adjust themselves much more slowly to payments. the depreciation of the currency. According (1) Reparations.—The entire problem of to an estimate of a subcommission of the guarreparation has been discussed elsewhere in antees committee the returns from the various the FEDERAL RESERVE BULLETIN (see Novem- taxes are distributed as follows: ber, 1922, and following issues). In the present Pei- cent. study, it is therefore necessary to indicate only Taxes, the returns from which adjust themselves immediately to the internal value of the mark 57 the influence of reparation on the currency. Taxes, the returns from which follow the fluctuation According to official figures issued by the of the mark at a greater distance 12 Reparation Commission, the total payments Taxes, the returns from which adjust themselves to from Germany for reparation account until the internal value of the mark only after a period of about 12 months 24 August 31, 1922, amounted to 4,766,356,000 Returns of taxes which are independent of the valuagold marks, consisting of 1,447,814,000 cash and tion of the mark 7 foreign currency, and of 3,318,542,000 for various kinds of deliveries. Since no definite reve- 100 nues have been set aside for these payments, they Thus, while Government expenses increase were covered to a very large extent b}' increases almost immediately after each drop in the value in the amount of treasury bills, which were al- of the mark, a large part of the receipts do not most equal to the total increase in the volume of increase at all or increase only after a considpaper notes outstanding. Successive increases erable length of time. Under these conditions in circulation are usually followed by de- the budgetary deficit must necessarily increase creases in the value of the mark at home and each time that the currency value decreases. abroad. Each decrease in the value of the In addition, a steady decline in the value of the mark, however, necessitates a more rapid in- mark makes the further evasion of taxes poscrease in the amount of paper notes. Payment, sible, for each delay in payment means a defor instance, of 500,000,000 gold marks which crease of the actual value of the taxes paid. at the rate of 1 gold mark to 15 paper marks So long, therefore, as these conditions conwould mean an expenditure of 7,500 million tinue, the issue of paper notes is the only means paper marks, calls for 50 billions at the rate of 1 at the Government's disposal to meet its conto 100, and 400 billions at the present rate of 1 tantly growing needs, since it can not find the to 800. Payments arising out of deliveries in necessary resources either by taxation or by kind increase in the same ratio as home prices. borrowing. The frequently expressed view In addition to payments in cash and kind, that the budget should first be balanced before Germany is bound under the treaty of Ver- an attempt is made to stabilize the currency can sailles to make additional expenditures, such as hardly be accepted. For although the effects for the army of occupation, settlements under of the budget upon currency and of the currency the clearing schedule, etc. Most of these pay- upon the budget are mutual, so long as the value ments must be made in gold or on a gold basis of the currency is liable to decrease, no sound and have the same results upon the budget, basis for revenues and expenditures exist. Each floating debt, volume of currency outstanding, additional decrease in the value of the mark as payments in cash Thus, as long as these must necessarily increase expenditures, and, payments are made not but of a surplus of reve- since revenues can not be increased so rapidly, nues over expenditures, but by increasing the an increase in the floating debt and in the Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

JANCAEI, 1923. FEDERAL RESERVE BULLETIN. 67 amount of paper notes outstanding is inevi- sale of paper marks and securities, are untable. The increase of paper notes is again the known. Even the official trade figures pubcause of new economic disturbances with all lished by the German Government are far the effects previously discussed. from reliable. The effect of the steady depreciation of the The equalizing of Germany's balance of mark upon taxation can be seen from the payments, however, will be one of the most following comparative figures which show the difficult tasks connected with the stabilization actual receipts from taxation and their gold of the German currency. For it should not be value: overlooked that Germany, whose balance of trade was unfavorable even before the war PROCEEDS FROM TAXATION DURING THE FISCAL YEAR and could be balanced only by invisible ex- 1921-22. ports, has lost her colonies, the greater part of her fleet, and important iron and coal ila paper marks. Gold l e e n q t u . iva- deposits. It has also ceded more land than indicated by the decrease in population, thus making the country to a much larger extent April, 1921 ! 5,356,994,311 353,951,917 June, 1921 | 5,785,013,655 350,526,352 dependent upon food and raw material imports August, 1921 5,145,185,243 256,940,411 than ever before. Thus, for instance, at the October,1921 6,, 18.5 ,,259,081 177,402,711 December, 1921 ! 8,015,259,061 170,910,971 present time the imports of coal amount to February, 1922 J 9,614,260,468 194,163,6S4 March, 1922 | 14,0S5,447,122 211,746,052 about 45,000,000 gold marks monthly, while before the war coal was exported from Germany on a large scale. In addition, Germany's Many economists who have studied Gerposition as an exporting country has been many's financial situation during the last few impaired to a considerable extent by the years believe that, even if Germany were application of one-sided most-favored-nation relieved of payments arising out of the peace clauses and the special tariffs imposed by many treaty, she would be unable to balance her nations against the importation of German budget in the very near future. It is pointed goods. To what extent the balance of trade out that the deficit in the budget for the fiscal is against Germany is shown sufficiently by year 1921-22, arising only from the general American trade figures, according to which administration of the Reich and its undertakthe total excess of exports over imports from ings, amounted to about 128 billion paper the United States in the trade with Germany marks. Most authorities, furthermore, seem from the armistice to the end of September, to agree that the balancing of the budget should 1922, amounts to $770,000,000. begin with a decrease in Government expenditures, and that new taxes should not be imposed Up to the present time Germany has been until every effort has been made to decrease able to offset the huge excess of imports over expenditures and until balancing the budget exports by selling large quantities of paper by this method has been found impossible— marks and securities. The accumulation of for excessive taxation can not be imposed German securities abroad and the purchase of without affecting adversely the creation of real estate, rights, etc., by foreigners in Gersurplus capital upon which the future produc- many will, however, be a big item in Germany's tive power of the country is based. balance of payments when interest, dividends, (3) Balance of payments.—Another impor- and earnings of these German assets will be tant requisite for a stable German currency is shipped abroad. the balancing of payments between Germany A reduction in the quantity of imports to an and the rest of the world. If Germany con- extent sufficient to brmg about an equilibrium tinues to have an unfavorable balance of pay- of Germany's balance of trade is not feasible, ments for a long period, this would result as may be seen from the following figures: either in the shipping of the country's gold During the first nine months of 1922, 42 per stock abroad or in the floating of loans, which, cent of Germany's total imports were comhowever, can not continue indefinitely. To posed of raw materials, 26.5 per cent of foodmake an accurate survey at the present time of stuffs and beverages, 14.5 per cent of partly Germany's balance of payments is impossible. manufactured articles, and 17 per cent of Many items, such as the flight of capital from manufactured articles. Germany and the accumulation of German No considerable decrease in imports can take credits abroad, estimated at between 2 to 8 place without impairing the standard of living billion gold marks, and the proceeds from, the or the productive capacity of the country, Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

68 FEDERAL RESERVE BUIXETIN. JANUARY, 1923. although reduction in the quantity of bever- GERMAN WHOLESALE PRICE MOVEMENT COMPARED WITH ages and manufactured goods could be effected. INCREASE IN THE VALUE OF THE DOLLAR IN TERMS In spite of these gloomy aspects of the situa- OF MARKS. tion, German officials and economists believe [Frankfurter Zeitung wholesale price index.] that if relieved from payments on reparation I w a a d e n c q e o c c d u u o r a l e u l i d i a n n z s n e t e k o d f i o t i n r n b d i m a y , i m c t p a h e a p n r e i o t r a b i r n i t t a n h s c l e r a p e n t e s a o c t r s a e i e o s b u d o i i l c f n i o h t p y f p a a t r y i o n m o m f d e e t e u x , h n c b t e t t e o s i n o c t t h n c u o r t i u r h n a e l a n d n c t d a c b s y i a e t h . i D n o d l e la x r . V s l f r u a t o i i u r r x o e o i f d s u d f u . s - - p l G e t t a a r i e I n l t o I x e h , d u - s e p r . ' C e m i r r n a o in l , u s - p . ; m G l o i a r u s o n c s u e . e p - l- G i i p n n t s f r r r v d e h i > i o o n t u a e d u s - l d s . - pI - ! ! | j I | m i c t A o i o e i l n d s l - . - Conclusion.—The stabilization of the German currency appears as the first step toward Middle, 1914 100 100 100 100 100 I00l 100 the breaking of the vicious circle in which cur- October 1922; 51,310, 3S,.i»5 66,157 54,903 32,134 35,025! 43,223 November.. 1 148,824 88,980' 153,896 128,982 72,038 57,683 94,492 rency, reparations, budget, taxation, and, one December..] 177,677! 144,753! 266.622 219,395 134,177 118,38ol 166,495 might say, the entire German economy, are 1 , ' i ' I i moving. Currency reform, however, if it is to The difference between the various groups be successful, involves so many other reforms needs but little explanation. The greatest inthat stabilization of the currency is more or crease took place in Group II, textiles and less identical with the satisfactory adjustment leather articles, which are almost entirely imof all political and economic problems which ported. The tremendous increase in Group III, Germany is facing. Some of these problems, minerals, is due to a large extent to the increase such as reparation, are of an international in the cost of transportation. An important character and involve the cooperation not change as compared with previous periods took only of Germany and her creditors, but of place in Group V, industrial finished products, the entire world. Without placing the reparawhich reflects very well not only an increase tion problem on an economic basis and in the price of raw materials, but also a decided within the physical ability of Germany to increase in wages. pay, it is not to be expected that her budget or her international payments can be The upward movement of wholesale prices balanced. So long as revenues and expendi- was not without effect upon the cost of living. tures do not balance, and so long as the total The index (1913-14 = 100) rose from 19,504 in amount of receipts and payments from and October to 40,047 in November and to 61,156 to other countries are not brought into reason- in December, an increase of 105.3 and 213.6 able agreement, all efforts to stabilize the value per cent, respectively. of the mark will prove futile. The improvement of mark exchange during the middle of December, however, caused the Whether or not Germany will be able to gold prices of many German goods, such as solve these problems or to what extent aid is textiles, timber, and clothing to exceed the needed is an open question. Even if the world market level, since wages and other cost political problems are solved favorably to of production items could not be reduced as Germany, her Government will still face a rapidly as the mark increased in value abroad. formidable task in carrying out the reforms necessary for the rehabilitation of Germany's FOREIGN TRADE STATISTICS. economic and financial position in the world. All German postwar foreign trade statistics GERMAN PRICE MOVEMENTS. have been heretofore published in terms of paper marks. In view of the enormous de- The rapid decline of the value of the mark preciation of the mark and the great fluctuaduring October, November, and the first part tion to which the mark is subject, the Statisof December was immediately followed by an tisches Reichsamt with the beginning of Sepunprecedented increase in prices. The price tember, 1922, has adopted a method of pubmovement has «ssumed such a velocity that lishing the total value of the foreign trade even retail prices often changed several times returns only in gold marks. The valuation of during one day. The increase in prices of the various groups of exports and imports is certain groups of commodities has already now omitted entirely. In the "Monatliche exceeded the upward movement of the dollar, Nachweise iiber den auswartigen Handel as may be seen from the following figures; Deutschlands," however, in which a detailed Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

.TAKUART, 1923. FEDERAL. RESERVE BULLETIN. 69 analysis of all commodities imported and an increasingly broader financial basis. The exported is published, the values of the various live-stock industry has not materially imcommodities are still given in terms of paper proved, since the low' price of meat continues marks. The method employed by the Statis- to be a deterring factor. The Banco de la tisches Reichsamt in reducing the values of Naci6n has announced a reduction of its rate exports and imports from paper to gold marks for loans on live stock from 6£ per cent to is somewhat complicated. The final valuation 6 per cent per annum. The surplus of wheat of imports represents an arithmetic average of and linseed from the last harvest, available the monthly average exchange value of the for export, has been substantially reduced, dollar for the month preceding the importation and the yield of the sugar harvest has been and the value of these imports on the basis of satisfactory. The exportable surplus of wheat world market prices, mainly as they are quoted as of September 10 amounted to 615,221 tons, in the London market at the time of importa- against stocks held on August 12 amounting tion. to 1,260,555 tons; while stocks of linseed According to this method the values of im- were reduced from 163,716 tons on August ports during the first nine months were: 26, 1922, to 106,803 tons on September 10. The wool season closed on September 30 with a total of exports never before attained. It 1922 : C> old marks. ' 1922 ' (Sold marks. is of considerable importance to note, however, that wool exports from Argentina to January 330,400,000 .' June 564,600,000 February ' 359,600,000 -July 684,800,000 Europe have shown a striking increase since M Ap a r r i c l h : 5 5 6 0 3 8 , , 2 0 0 0 0 0 , , 0 0 0 0 0 0 ! : : A Se u p g t u e s m t ber 5 4 4 2 5 1 , , 1 8 0 0 0 0 , , 0 0 0 0 0 0 the wool year 1918-19 and that, on the other May 565,200,000 - January-September: 4,542,700,000 hand, exports to the United States have been considerably reduced. The following table Inasmuch as, according to Government shows the distribution of wool exports from regulations, the values of exports may be Argentina by countries of destination. registered in terms of foreign currencies, about 60 per cent of these exports are originally reported in this form, so that their gold mark WOOL EXPORTS FKOM ARGENTINA. value can easily be calculated. Since pay- (In metric tons.) ments for exports are sometimes made before Country of destination. 19IS-19 i 1919-20 1920-21 1921-22 and sometimes after the time the actual exports have taken place, the Statistisches Germany ! ; 11,250 65,520 Reichsamt believes that it is justified in using France 28,120! 32,360 45,660 exchange rates for the month of exports as a GreatBritain ; 9,970 j 1S,6OO 35,180 United States 1 55,800 ' 30,410 18,270 basis for converting the paper mark values Italy j 7,070 i 8,070 10,000 Netherlands i 5,080 I 5,390 260 into terms of gold marks. In this way the Belgium i 4,060 1 17.660 20,900 Statistisches Reichsamt arrives at the following Other countries j 8,790 j 3,110 3,900 export figures for the first nine months of the Total 118,890 I 126,850 132,260 I 199,690 year: With the exception of barley, linseed, corn, Gold marks. 1922 Gold marks. and oats, exports of the principal products of Argentina during the first nine months of the January 324,600,000 June 416,600,000 year compare most favorably with those of February 297,900,000 July ' 320,800,000 March..." ; 324,100,000 August 242,000,000 the previous year. Exports of wheat in- April ! 326,800,000 September , 280,400,000 creased from 1,563,400 tons to 3,240,000 tons May 391,600,000 January-September; 2,924,800,000 in that period, while exports of sheepskins increased from 6,600 tons to 21,200 tons. ARGENTINA. On the other hand, exports of corn during Trade conditions.—Recent reports convey the same period decreased from 2,164,700 the impression that the general economic tons in 1921 to 1,560,000 tons in 1922 and situation of Argentina has continued to im- those of linseed from 1,028,300 tons to 741,000 prove in a satisfactory manner. Commercial tons. activity is nevertheless still restricted, with Business failures have increased again, after money abundantly available, as is evidenced having diminished gradually since March, 1922. by the easy absorption of large amounts of Liabilities of business failures in Argentina "cedulas" issued lately. The exploitation were last reported in the October issue of the of petroleum is being gradually developed on BULLETIN for the month of July, 1922. The Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

70 FEDERAL, RESERVE BULLETIN. JANUARY, 1923. following table shows the liabilities of business years 1914 to 1918. These deficits have been failures during the first 10 months of 1920, covered by the issue of bonds and treasury bills 1921, and 1922. or through advances granted by the Banco de [In paper pesos.] la Nacion, which are included in the floating debt of the country. According to data re- Period. 1920 1922 cently published by the department of the accountant general of Argentina the debt of First quarter 11,507, BOO 31, 878,900 ;«, 087, 800 the National Government on July 31, 1922, J S u e l c y o nd quarter I I 6 3 , , 5 7 3 4 2 4 , , 6 5 0 0 0 0 3 1 9 2 , ,1 0 3 3 1 2 , , 7 9 0 0 0 0 37 6 , , 5 7 2 0 8 8 , , 7 6 0 0 0 0 amounted to 1,888,609,353 paper pesos, of August i 3,021,200 11,778,000 7, 421, 200which the foreign consolidated debt constituted September | 4,283,300 7, 836,600 9, 787, 400 October 16, 059, 300 11,156,967 561,537,346 pesos; the consolidated internal debt 698,235,344 pesos, and the floating debt Total during the first 10 months i 29,089,200 118, 717, 400 105, 690, 667 628,836,663 pesos. Customhouse receipts from' January 1 to September 30, 1922, 1 Total during the first 9 months. amounted to 148,422,900 paper pesos, as against An examination of the above figures demon- 148,216,200 pesos during the same period in strates that a decided increase in the amounts 1921, or an increase of 206,700 pesos. involved in bankruptcies occurs with seasonable The Executive of Argentina has issued a regularity. decree providing for the issue of internal Government finances.—A law was enacted by bonds by the National Public Credit Bank the Executive on October 2, extending for the in an amount not to exceed 60,000,000 last three months of 1922 the Argentine budget paper pesos, bearing interest at 6 per cent law of 1921. On September 29 the Argentine and 1 per cent, cumulative amortization Congress declared the budget of 1921 operative annually. The bonds and their coupons will for the last four months of the year, with cer- be exempt.from all national and municipal tain modifications. The following is a compari- taxes. Coupons are payable quarterly. The son of the estimated Government expenditure Administration of the State Railways has closed for 1921 and 1922: arrangements with a London firm for a loan of 2,000,000 pounds sterling, payable in 20 years [In paper pesos.] or sooner at the option of the Argentine Government, bearing interest at 6 per cent. A Budget items. Year 1921. Year 1.922. stipulation has been made in the contract to the effect that the Government is to pur- Ordinary expenditure: chase from the bankers railroad material for (a) In cash 442, 720, 005.68 508,914, 880.61 (6) In bonds 55, 436,600. 00 37, 941, 462.96 a total of 500,000 pounds sterling. According Subsidies and charity.. 14, 753, 470. 00 19,511,733.00 to recent estimates the Argentine Government Total 512,910.075.68 563,358,076.57 loans maturing before the close of 1922 ag- Authorization to issue bonds of 6 per \ cent and 1 percent I 60,000,000.00 60, 000, 000.00 gregate 492,516,113 paper pesos, in addition Budget estimate of service of the pub- < lie debt—external and internal i 124,306,484.94 I 140,382,384.85 to which the accumulated deficit will amount to about 200,000,000 paper pesos. In the October issue of the BULLETIN (p. The government of the Province of Buenos 1189) a table was published, indicating the Aires has decided to ask for bids on a loan of .annual deficits incurred by the Government of 17,000,000 gold pesos, to be used in the exten- Argentina from 1910 to 1918. As a supple- sion and operation of the La Plata-Meridiano ment to that table the following is presented, V Railway. A large program of public works showing the revenue, expenditures, and deficits is under consideration by the Province and the of the Government of Argentina for the fol- local legislature has been requested to authorize lowing three years of 1919, 1920, and 1921: the investment of 25,000,000 paper pesos in the construction of public buildings throughout In paper pesos.] the Province. The governor has sent a bill to the legislature proposing the issue of a loan Year. Revenue. Expenditure. Deficit. for funding the floating debt and to carry out certain public improvements. Authorization 1919 .. 368, 365, 574 427,910, 636 59, 545, 062 for a loan was given by the Chamber of 1920... 481, 418, 859 503, 676, 000 22, 257,141 1921 .. 495,841, 787 558,950, 000 63,108,213 Deputies and has now been passed in an amended form by the Senate and sent back to the Chamber for further action. As adopted The deficits for the last three years show a by the Senate the bill authorizes the Executive remarkable reduction as compared with the Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

\ NUARY, 1923. FEDERAL RESERVE BULLETIN. 71 to float a loan amounting to $30,000,000, bear- A very considerable amount of idle money has ing interest at a ratenot to exceed 6 J per cent, 1 accumulated in the banks of Argentina during per cent sinking fund, not obligatory before the latter half of 1922. The combined cash March, 1924, the issue price to be not less than 92. balances of the country as of August 31, The proposal for the above loan has not met 1922, show an increase of nearly 50,000,000 with the approval of the local financial circles. paper pesos in deposits, whereas loan opera- The deficit in the provincial revenue during the tions increased by not more than 20,000,000 first eight months of 1922 amounted to about pesos. The result, has been that cash on hand 20,000,000 paper pesos. showed a considerable increase and it stands at Authorization has been requested from the about 30 per cent for all banks. Rates of dislocal legislature by the executive of the Prov- count are still nominally 6 to 8 per cent. Inince of Santa Fe to float an internal loan for terest paid on deposits has not dropped, and 35,000,000 paper pesos, the proceeds to be used the majority of the Argentine banks are still for public improvements in the Province. It is competing freely in securing additional deposproposed to increase the provincial taxation in its. The following table shows the total order to cover the deficit for 1922. The amount of loans and discounts, deposits, and Provinces of Salta, Jujuy, and Mendoza also cash on hand of the Argentine banks, as of have under consideration financial projects in December 31, 1921, June 30, 1922, and August the way of loans. 31, 1922. According to the provisions of a decree issued [In thousands ot paper pesos.] by the minister of public works, an extraordinary credit was opened in favor of the State Discounts I rf Date. and ad- Deposits. Cash on Railways in the amount of 14,388,490 paper vances, j hand. pesos, of which 11,388,490 pesos will be used in Dec. 31, 1921 1 2,543,400 3,375,100 1,168,500 reimbursing the Administration of the State JuneSO, 1922 i 2,474,400 3,347,600 1,139,800 Aug. 31,1922 | 2,502,900 3,376,300 1,120,200 Railways for expenditures incurred in the construction of the railroad from Salta to the The following statement shows the condition Chilean border, and the balance to finance the of the Banco de la Naci6n Argentina at the construction until December 31, 1922. A furclose of business on September 30, 1922. ther decree was issued approving the measures A previous statement was published in the taken by the Administration of State Railways in connection with the construction of a sys- August, 1922, issue of the BULLETIN (p. 955). tem of light railways in Patagonia at an esti- [In Argentine pesos.] mated cost of 32,842,754 paper pesos. Banking conditions.—The Executive of Ar- Gold. Legal currency. gentina has requested congressional authority for the establishment of branches or agencies ASSETS. of the Banco de la Nacion Argentina in foreign Advances on current accounts 373,672,267.93 Bills receivable 2,854,290.80 countries. According to the provisions of Accounts for collection guaranteed 20,196,250.86 the message, the voluminous exchange busi- Bills discounted 7,998.32 563,183,497.65 Rediscounts (laws 9479 and 9577).. 13,431.294.11 ness transacted by the bank and the fact Doubtful debts j 19,035;735. 44 Real estate I 24,495,407.86 that the bank is the financial agent of the N ational public funds | 8,758,477.05 21,632.444.15 Government make the proposed step neces- Mobilization of conversion fund, ; laws 9479 and 10251 ' 20, (XX), 000.00 sary. Activity in banking development in Furniture and fixtures ' 1,550,528.49 Due from the treasury, law 10251 | 71,999,663.25 Argentina has been noticed lately. The Banco Conversion account 64,057,129.29 do Brasil opened a branch in Buenos Aires Due according to the agreement with England and France, law 10350 34,266,843.21 j on October 23, 1922. Serious consideration Cash on hand 23,344,125.08 | 402,167,798.69 is being given to the organization of an Agra- Other assets 1,073,340.00 14,583,504.25 rian National Bank. The purpose of this insti- Total 87,450,783.66 1,592,859,812.77 tution would be to give financial assistance to LIABILITIES. national production, and the support of the Capital 150,038,942.14 Surplus fund 24,262,541.67 minister of agriculture has been solicited. A Due foreign correspondents 448,938.78 new project has also been reported for the C Co o n n v v e e r r s s i i o o n n a fu c n c d o , u n la t w 3871 3 2 0 8 , , 0 1 0 8 0 5 , , 0 1 0 3 0 9 . . 0 3 0 7 organization of a maritime bank, with a capital Mobilization of the conversion fund, laws 9479 and 10251 45,454,545.45 of 10,000,000 gold pesos, to be engaged in finan- Deposits.. 3,277,751.05 1,345,805,149.55 cial operations pertaining to maritime traffic. Commissions, interest, and discounts. 1,276,174.79 38,130,611.77 Due to branches 207.04 11,806,981.51 Favorable consideration has been given by Other liabilities 30.96 1,623,582.35 the Government to the proposal. Total | 87,450,783.66 1,592,859,812.77 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

72 FEDERAL RESERVE BULUETIN. JANUARY, 1923. BRAZIL. It is understood that the new Government is opposed to the present system of fiscalization, Foreign exchange.—The continued fall of particularly that of exchange. Brazilian exchange has seriously affected com- Foreign trade.—In the October, 1922, issue merce and industry in general and the import of the (p. 1191) an account was given trade of Brazil in particular. Although hope BULLETIN of the foreign trade of Brazil during May and for improvement had generalfybeen entertained June, 1922. The foreign trade figures for the at the beginning of November, 1922, due to following two months have been released by the steady rise in the prices of cotton and the Brazilian Department of Statistics. Acrubber, exchange continued to fall, and by cording to them, the import trade of Brazil the end of the month the dollar quotation during July showed a striking decrease as had risen to 9 milreis. Only a slight improvecompared with the previous month, but a ment occurred during December, and the pronounced increase was shown during August general feeling of depression still prevails. in both volume and value. Exports, on the Opinions as to the causes of such a depression other hand, showed an increase in volume and are at variance. It is certain, however, that value during both months. The value of there exist at present in Brazil factors, such as exports in pounds sterling during August the improved foreign trade of the country, increased proportionally more than the value the increase in the prices of its products for of imports. With the exception of exports in export, and the financial assistance which 1920, figures showing exports and imports for Brazil has received lately from abroad, which the first eight months of 1922 are greater than would be expected to bring about a substantial corresponding trade figures for the same period improvement in the general situation. Accordof any previous year. Imports from January ing to the views of the president of the Interto August, 1922, are exceeded only by those of national Chamber of Commerce of Brazil, the the same period of 1913, when a large amount difficult situation through which the country of coal was imported. The following table, is passing at present is due to the fact that giving the volume and value of Brazil's for- Brazil has not yet fully recovered from the eign trade during July and August, 1922, will period of liquidation caused by reckless exserve to supplement the table showing the penditures during the flourishing years of exforeign trade of Brazil during previous months, ceptional commercial activity brought about published in the October, 1922, by the war. Others affirm that exchange is BULLETIN. not likely to improve until a change of the Government policy with regard to fiscalization FOREIGN TRADE OF BRAZIL. and control of exchanges is brought about. Value in pounds ster- Metric tons (gross weight). ling (000 omitted.) Toward the end of September, 1922, an o b r a d n e k r s w pr a o s h i i s b s i u t e in d g b i y nt e th rb e a n in k s p e e x c c to h r a n g g e e n e o ra p l e o ra f - Month. Imports. Exports. E o p f x o c r i e m ts s . - s . p I o m rt - s. p E or x t - s. E p o x o f c r e t e x s s . - s tions in accordance with article 37 of Decree 14728 of 1921. Far from improving matters, July 222,392 180,129 42,263 3,386 4,768 1,382 283,269 199,130 84,139 4,446 5,537 1,091 exchange registered a severe drop immediately August.. Total, Janafter the issue of the law in question, and the uary to law was rescinded at the beginning of the August...2,103,260 |l,353,921 :749,339 i 30,123 I 42,058 ; 11,935 following month. On November 10, 1922, new regulations for fiscalization of banks and The coffee outlook for the 1923-24 crop exchanges were issued by the office of theseems to be quite satisfactory, according to inspector general in addition to those provided reports from Santos. The Sao Paulo State for in the fiscalization laws of March 16, 1921.Department of Agriculture has given the These were also withdrawn* a few days later as following as an estimate of the 1922-23 coffee a result of the banks' refusal to deal in ex-crop: change. According to the opinions of several Bags. leading financial authorities in Brazil, not- Total of SSo Paulo 7,140,000 withstanding that the prohibition of inter- Coffee of Southern Minas 795, 000 Coffee of Parana 55,000 bank exchange operations has been removed, the position has not changed substantially, Total 7, 990,000 since the banks continue to be subject to severe After almost complete suspension of operafiscalization, which hinders to a great extent tions in the frozen and chilled meat industry the transaction of legitimate exchange business. in Brazil, an American company, owning the Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

JANDAKY, 1928. FEDERAL, RESERVE BULLETIN. 73 largest refrigerating plant in the country, has A new bank has been established in the city announced that it will resume operations of Bello Horizonte, the capital of the State of during the month of January, 1923. This plant Minas Geraes. The new institution will be has been closed for over a year, and the reason called the Banco do Commercio e Industria given for its reopening is the considerable im- de Minas Geraes and its capital will amount to provement in the price of meat in European 5,000,000 milreis. consuming markets. The following are the latest statements of Government and State finances.—According the condition of the Banco do Brasil, dated to a statement issued by the Director of Ac- August 31 and September 30, 1922. Statecounts, submitted to the Minister of Finance, ments showing the condition of the institution the gold in bars and in coin on October 31 was as of May 31 and June 30, 1922, were published distributed as follows: in the October issue of the BULLETIN (p. 1192). In the general treasury: inmiireis. [In milreis.] Gold in bars 132,406 Coined gold 73,102 Aug. 31, 1922. Sept. 30,1922. Convertible gold notes 3, 399,393 ——— 3,604,901 ASSETS. Capital unpaid 986,280 964,200 In the amortization office: Premium on shares 246,570 241,050 Gold in bars 24, 643, 814 Bills discounted 655,580,739 666,651,547 Coined gold 58,477, 901 Loans in current account 317,978,281 252,630,938 Bills receivable: 83,121, 715 Foreign 16,993,543 16,944,354 With London financial agents (£135,434 6s 5d). 1, 203, 857 Domestic 158,034,277 161,937,175 Securities in liquidation 631,298 615,632 Collateral deposited as security 286,679,627 289,727,312 Total 87, 930, 477 Securities deposited 197,696,751 217,855,847 The receipts of the Rio de Janeiro custom- Branches and agencies in Brazil 157,431,938 152,451,550 Correspondents abroad 14,915,306 18,768,600 house have shown considerable decrease. Dur- Correspondents in Brazil 2,672,043 2,706,870 Securities owned by banks 75,843,561 66,590,380 ing 1921 the total receipts amounted to Real estate 5,939,105 8,296,952 76,812,586 milreis, against 110,612,265 milreis Liquidation of Banco da Republica do Brasil 120,255 120,261 in 1920. During the first eight months of Furniture and fixtures 1,398,818 1,495,587 Collections in Brazil 117,078,995 124,776,968 1922 the receipts collected amounted to Rediscount department 209,117,463 363,841,161 47,687,859 milreis, and, taking 6,000,000 mil- Sundry accounts 10,045,490 11,364,431 Cash: reis as a monthly average, at the close of the In currency 136,603,828 119,427,323 In other form 8,171 year the total receipts would amount to less Total assets 2,456,002,333 2,477,408,138 "than 72,000,000 milreis. LIABILITIES. In the November, 1922, issue of the BULLE- Capital 10(1,000,000 100,000,000 Reserve fund 35,193,314 35,199,092 TIN (p. 1318), it was reported that arrange- Premium on shares 246,570 241,050 ments were under way for a small loan to the Reserve for rediscount department 2,327,857 [2,327,857 Fund for liquidation of old accounts 3,307,803 3,176,799 State of Ceara. According to recent reports Profit and loss account 4,282,890 1 4,282,890 Deposits in current account with interest. 333,422,369 307,012,535 the loan has been negotiated with a New Deposits in limited account 44,867,671 ' 45,637,233 Orleans firm, bearing interest at 8 per cent and Deposits without interest 413,697,897 1344,581,131 to mature in 25 years. The proceeds of this D Se e c p u o r s it i i ts e s a d t e f p ix o e s d it e d d a te a s nd in guarantee 4 2 8 4 4 5 , , 3 7 7 4 6 7 , ,9 3 9 7 9 8 12 5 3 0 1 7 , , 3 5 5 8 G 3, , 1 7 5 0 9 5 Branches and agencies in Brazil 186,893,454 207,448,529 loan are to be used for irrigation works, the Correspondents abroad 2,319,215 1^1,325,195 construction of a municipal hall, and other Correspondents in Brazil 1,170,820 . 11,302,123 National treasury, exchange account 8,888,889 " 8,888,889 improvements in the capital of the State. A Bills receivable 266,042,730 278,070,650 Compensation for checks (cleared) 4,685,650 11,853,213 project of the budget for 1923 has been sent Bonus and dividends 1,164,187 1,119.800 to the municipal council by the prefect of the Rediscount department 296,789,606 361,513,304 Sundry accounts 20,577,034 24,487,989 Rio de Janeiro Federal District. The receipts Total liabilities 2,456,002,333 2,477,408,138 are estimated at 83,049,440 milreis and the expenditures at 88,473,892 milreis, which gives Recent Banking Developments in Mexico. a deficit of 5,423,952 milreis. It has been announced that the State of Bahia has under The recent banking crisis in Mexico has consideration the floating of an internal loan served again to call attention to the difficulty for 70,000 contos of reis, bearing interest at 5 under which banking institutions are laborper cent. The loan is to be floated through ing at present in that country. Scarcity of the Banco Economico de Bahia. gold for circulation, depreciation of the silver Banking conditions.—There has been little currency, absence of rediscount facilities, an unbanking development in Brazil lately. The certain political situation, lack of supervision Brasilianische Bank fiir Deutschland has taken over banking, and lack of confidence on the steps toward the opening of a branch in Novo part of the public may be given as the prin- Hamburgo, in the State of Rio Grande do Sul. cipal reasons for the prevailing conditions. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

74 FEDERAL RESERVE BULLETIN. JiNOABY, 1923. Rates of interest at present range from 1| per * Since the almost total disruption of the great cent to 2 per cent per month on short-term system of Mexican banks during the first paper witn ample security. Silver was at a years of internal struggle in Mexico, the tendiscount of as much as 4 per cent in July, dency among the people has been either to 1922. The bulk of deposits is held at present hoard their funds or to deposit them in banks by privately owned banking firms and branches abroad. The total assets of the Mexican banks of foreign banks. amounted to about 600,000,000 pesos at the out- During the month of November, 1922, sev- break of the revolution in 1910, but in the foleral failures among the first of the above two lowing years, due to currency depreciation and groups of credit institutions were reported. official legislation in forcing the banks to accept Of considerable importance has been the sus- revolutionary paper currency, their resources pension of payments by the Banque Francaise were almost wiped out, and after their reserves du Mexique, which took place on November had been taken over by the Government the 15, 1922, since this institution was consid- banks were finally declared insolvent on ered to be among the largest in the country September 15, 1916. After that, privately and operated branches in eight of the most owned banking firms and foreign banking important cities of Mexico. The principal institutions were left to transact the financial reason for these failures is stated to be the business of the country. Private banking difficulty of obtaining currency within a short houses were established in many cities of the period of time, due to the currency strin- Republic, forming a net of correspondents for gency which has been felt in Mexico since the foreign and private banks in Mexico City. the establishment of the monetary system of The foreign banks also have suffered during the the country on a purely metallic basis. Not- periods of revolution, but so far no signs of withstanding the high rates of interest which retrenchment or abandonment of the field the banks at present in operation charge on have been noticed. their loans, it is evident that their profits are The first step taken toward banking reornot in proportion to their interest charges, ganization was a decree issued by President since a considerable amount of cash against Obreg6n on January 31, 1921, establishing deposits must be held by every conservative the conditions upon which the banks of the institution. This is done in order to pro- Republic might resume operation or be liquimote confidence among depositors and to dated, depending upon their financial condikeep the banks as liquid as possible in case tion. The following is a summary of thisof emergency. From the following compardecree: ative statement of three of the most impor- The legal representatives of the banks who tant private banking firms in Mexico may be desired to participate in the benefits of this seen the large amount of cash held against decree had within 30 days after the publication deposits. thereof to present to the department of the [In Mexican pesos.] treasury written requests, accompanied by M C e i x t i y co C B o a m nc p a a r n i i a a C B o a m nc p a a r n i i a a p d r o o c v u i m sio en n t s s of s h t o h w e i c n o g m m th e a r t c ial a c c c o o d r e d , i n t g h e t c o o un th c e il : Banking Mexicana, de Paris y ' Corpora- S. A., Dec. Mexico, of administration of the bank was legally i ! ti 3 o 0 n , , 1 9 S 2 e 2 p . t. 31,1921. S. 3 1 A ,1 ., 9 D 21 e . c. constituted, and that a manager had been appointed. RESOURCES. The period of 30 days prescribed in the pre- Cash and sight exchange 057,051 1,625,804 j 2,727,955 Loans and discounts 854,724 774,066 3,950,881 ceding article might be extended to 90 days in Stocks, bonds, and investments.. 121,302 312,284 the case of those banks of which the council of Customers' liability under letters of credit and acceptances 1,071,786 administration was not legally constituted. Accounts in current account 240,000 Sundry debtors 321,940 3,708,185 The banks were classified as follows: (a) S P u ro n f d it r y a n a d c c l o o u ss n a ts ccount 150,000 39,856 1 1 , , 0 6 1 0 6 7 , , 6 76 6 5 7 Those whose assets exceeded their liabilities bj Accounts per contra 1,ZTCJOre'l 2,072,611 12,058,545 10 per cent; (b) those whose assets exceeded Total 7,526,939 I 5,074,277 25,382,282 their liabilities by less than 10 per cent; (c) LIABILITIES. ! those whose assets would not cover their Capital I 1,000,000 350,000 8,000,000 Deposits i 4,071,406 2,333,290 3,990,999 liabilities. Letters of credit and acceptances..; 904,742 Undivided profits i 278,715 Class (a) institutions might resume opera- Eeserve for doubtful loans ' 20,054 I B Su il n ls d p ry a y c a r b ed le i tors l i 2 1 7 6 2 , , 6 5 0 2 4 0 I 9 4 1 6 1 , , 1 2 1 6 2 6 t d i e o c n r s e e i . n accordance with the terms of this Sundry accounts ! 9,198 375,361 Accounts per contra | 1,272,076 2,072,611 12,058,544 Class (&) institutions might resume opera- Total ! 7,526,939 5,074,277 j 25,382,282 tions, but only in so far as might be necessary Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

JANUARY, 1923. FEDERAL, RESERVE BTJUJETIN. 75 to collect their assets and to pay their liabilities ARTICLE V. The institutions, persons, or companies according to the terms of this decree. covered by the present decree will forward their balance sheets monthly to the treasury department and the latter Class (c) institutions were to be delivered to will have these published in the Diario Oficial. the appropriate authorities for judicial liquidation, and the same procedure was to be followed TRANSITORY PROVISION. with those institutions that did not take advan- This decree will commence to be effective from the 15th day of next August (1921). tage of the benefits of articles 2, 3, and 4 of the decree. The provisions of Article I have been modi- The banks referred to in this decree were to fied on account of the recent crisis, and all comply with the terms of article 28 of the banks are required to keep a reserve of 50 per Federal Constitution and those of the general cent against total deposits. law of institutions of credit and with the regu- Two final tables are presented, the first showlations of this decree, and the old concessions ing the financial condition of the Banco Narespectively were not applicable, even for op- cional de Mexico as of December 31, 1910, and erations initiated prior to May 1, 1917. December 31, 1920. The second table shows Chapter 2 gives the procedure for the liquida- the financial condition of the Banco de Londres tion of the assets and liabilities of the banks in y Mexico on September 15, 1916, the date of classes (a) and (b), and chapter 3 provides for its seizure by the Carranza government, and the liquidation of the banks of class (c). on June 30, 1920, after the bank had been Several of the banks have succeeded in se- returned to its owners. curing authorization to resume operations. FINANCIAL STATEMENT OF THE BANCO NACIONAL DE Among the most important is the Banco MEXICO AS OF DEC. 31, 1910, ANI> DEC. 31. 1920. Nacional, which was reopened for business [In Mexican pesos.] on March 27, 1921. A law affecting all institutions of credit, Dec. 31,1910. Dec. 31,1920. domestic and foreign, operating in Mexico, was enacted by the Obreg6n government on RESOURCES. June 23, 1921, obliging them to conform with Cash on hand 48,643,286 certain legal provisions for the protection of In metallic currency 64,663 In notes of other banks 166,990 deposits. The text of the law in reference, Amounts disposed of by the secretary of the treaswhich is the only banking law at present in ury, as follows— force in Mexico, follows: To the national treasury 18,575,637 To the "Comision Re- ABTICLB I. Institutions of credit, branches of foreign faccionaria de la Labanks and all persons or companies engaged in banking guna" 500,000 transactions receiving deposits on sight or for a period not To the " Comisi6n Monetaria " 200,000 exceeding three days, even when this constitutes current To the " Nacional accounts, are obliged to keep a metallic reserve in national Monte de Piedad ".. 200,000 or foreign gold coin, at the rate of 75 centigrams of pure gold per peso, to cover 33 per cent of their deposits. Loans against collateral 119,707,291 20,420,344 '1 1 9 3 , , 7 1 0 4 7 2 , , 2 1 9 8 1 3 ARTICLE II. The remaining 67 per cent of the deposits Loans and discounts 24,624,682 2,050,297 above mentioned will be used exclusively in the follow- Sundry accounts 3,369,804 3,258,583 Credits in current accounts... 40,195,278 9,495,146 ing transactions, which will apply throughout the Republic Doubtful loans 11,258,102 in all cases: Sundry debtors 45,389,657 1. Loans or discounts, provided the due date does not Bonds, stocks, and securities 19,196,035 9,360,675 Other debtor accounts 43,633,182 17,283,297 exceed six months, counting from the date of the trans- Profit and loss 2,024,488 action, which shall be a commercial one. Accounts per contra 116,100,603 3,135,327 2. Credits in accounts current, subject to the provisions Total.. 316,183,214 136,105,047 of the preceding fraction. 3. Drafts payable in 90 days, with at least two respon- LIABILITIES. sible signatures. Capital 32,000,000 32,000,000 4. Deposits in other institutions of credit established in Reserve fund 16,000,000 16,000,000 Reserve fund (special) 12,000,000 4,572,656 the Republic. Reserve for doubtful accounts. 11,258,102 5. Shares, bonds of immediately negotiable paper, Reserve for doubtful loans 1,416,807 14,131,681 approved by the treasury department. Circulation 51,933,696 31,503,431 ARTICLE. III. Deposits in foreign money of legal tender D Bi e l p ls o p si a ts yable 77 1 , 0 2 4 7 7 6 ,2 ,7 3 8 4 4 6,2 6 2 0 7 3 , ,4 2 1 7 6 2 will be guaranteed in the form provided in the preceding Rediscounts 501,327 articles. Sundry creditors 9,335,776 ARTICLE IV. The institutions referred to in the present J S u u d n i d c r ia y l a d c e c p o o u s n it t s s 8 1 7 0 3 3 , , 4 6 6 4 7 5 20,000 decree will be under the supervision of the treasury Other credit accounts 7,317,386 department which will exercise this attribute through Profit and loss 6,929,652 inspectors, whose duties and powers are specified by Accounts per contra 116,100,603 '3,'i35,"327 articles 113, 114, 115, 116, and 118 of the law of March 19, Total j 316,183,214 136,105,047 1897, and other corresponding regulations. The expenses incurred by this inspection will be for account of the 1 This amount should be classed as "Due from Government." institutions. appears as "Cash on hand" by order of the Government. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

FEDERAL RESERVE BUIJ>ETIN. JANDAEY, 1923. FINANCIAL STATEMENT or THE BANCO DE LONDRES Y quoted in Mexico City at a nominal value. MEXICO. The notes of the National Bank are quoted at [In Mexican pesos.] present at about one-half of their par value and ._ , - . . , ___ those of the Banco de Londres are quoted at Sept. 15,1916.1 June 30,1920. about one-fourth of their par value. With the exception of the opening of a small banking house in the port of Salina Cruz and a Cash 20,458,336 I 42,737 branch of the Bank of Montreal in Veracruz, Investments 13,805,996 i 14,868, 523 Buildings 2,644,000 ; 2,644,000 no reports have been received which would Furniture and fixtures.. 32,156 i Due from Government.. 11,705,886 '29,'232,'262 indicate that there are signs of banking de- Sundry debtors 30,981,533 17, 531, 006 velopment in Mexico at present. The estab- Sundry debtor accounts. 2,094, 330 i 7,396,161 Profit and loss account.. 6,477,756 I 3, 776, 361 lishment of a central bank of discount and issue has been discussed lately, but nothing definite 88,199,993 75,491,050 Accounts per contra. 66,092,105 22, 049,126 has been reported. Total 154,292, 099 97, 540,176 In February, 1921, President Obregon submitted a bill to Congress proposing an amend- Capital 21, 500,000 ; 21, 500, 000 ment to article 28 of the Quere'taro constitu- R Ci e r s c e u r l v a e ti o lu n nd 3 5 7 , , 9 1 1 6 9 3, , 2 9 5 1 8 1 I ! 2 5 6 , , 9 1 1 56 9 , , 1 9 4 1 1 1 tion, providing for the establishment of eight Sundry creditors 22,4S0,811 ! 13, 603,121 banks of issue throughout the country instead Sundry credit accounts. 1,136,013 8,311, 877 of a large central institution in Mexico City. i 88,199,993 i 75,491,050 The establishment of the latter was to be post- Accounts per contra : 66,092.105 : 22,049,126 poned until the finances of the country were Total ! 154,292,099 . 97,540,176 rehabilitated. However, no legislative action has been taken on the matter, and the banks at It is of importance to note the reduction in present in existence in Mexico continue to the cash holdings of both institutions and the operate without counting upon assistance in consequent increase in the amounts due from case of emergency and without efficient superthe Government. Notwithstanding the efforts vision. It is certain, however, that prompt of both institutions, the amount of notes in action on the subject of banking reorganizacirculation has not been reduced in proportion tion is becoming imperative if confidence in to the considerable reduction of other opera- the credit institutions is to be restored and tions. The notes of the Mexican banks are trade intercourse is to be facilitated. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

JANUAET, 1923. FEDERAL RESERVE BULLETIN. 77 PRICE MOVEMENT AND VOLUME OF TRADE. INTERNATIONAL WHOLESALE PRICE INDEX. The general trend of wholesale prices in November for most countries was upward, as shown by the indexes of the Federal Reserve Board. There was a 2 point increase in English and Canadian prices and a 13 point rise in French prices. With the exception of a rise of 12 points in the French index in April, 1922, France has experienced no such rise in prices since they were approaching the 1920 peak. The American index as a whole showed a slight decline, but the general tendency of prices was to increase. Japanese prices, on the other hand, showed a definite decline of 2 points. When converted to a gold basis, the indexes indicate a similar level of prices in the United States and Japan, and in Canada and England. Due to the continued drop in the value of the franc, prices of French goods in terms of dollars have fallen to their previous low point of a year ago. In England, France, and Canada there were price increases of goods in all stages of manufacture, while in Japan raw materials rose and producers' and consumers' goods declined, and in the United States there were practically no changes. In general, the prices of commodities entering into foreign trade, both imports and exports, moved upward in November. Especially in the United States and France have there been steady increases in these commodities since the early spring. Treating the several countries as a whole, a material advance occurred in the prices of agricultural and metal products, and in textiles. Coal prices declined generally, except in France and Japan where November brought no changes. On the other hand, there was a widespread decline in iron and steel prices. INTERNATIONAL WHOLESALE PRICE INDEX FEDERAL RESERVE BOARD 1913 = 100 1 550 S50 \ \ 500 500 \ -FRANCE t t. *- •CAN ADA 450 / \ •JAPAN 450 hOO 400 N 350 350 300 s •s 300 ^ y \ 250 N 2S0 • • y \ V s s 200 yl 200 V 150 150 100 J. F. M. A. M. 0. J. A. S. 0. N. D. J. F. M. A. M. J. J. A. S. O. K. D. J. F. M. A. M. J. J. A. S. O. N. D. J. F. M. A. M. J. J. A. S. 0. M. D 1919 1920 1921 1922 100 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

78 EESEBVE BULLETIN. JANUARY, 1923. INTERNATIONAL WHOLESALE PRICE INDEX—FEDERAL RESERVE BOARD. Based on prices In respective currencies. Converted to gold basis. Year and month. U St n a i t t e e s d . England. France. Canada. Japan. U St n a i t t e e s d . England. France. Canada. Japan. 100 100 100 100 100 100 100 100 100 100 1919, average . . . . . .. 211 241 207 211 221 199 239 314 478 250 239 242 185 223 1921, average . .... 148 201 321 167 181 148 159 124 150 175 1921. November 145 177 292 145 197 145 144 109 133 1S9 December . 142 172 287 145 193 142 147 117 135 186 1922. January . . .. 142 170 286 144 191 142 148 121 137 181 February 146 167 283 149 185 146 150 128 145 178 March 147 168 287 150 182 147 151 134 145 173 April 149 167 299 152 180 149 151 143 148 171 May 158 171 302 154 180 158 156 143 152 171 June.. 161 169 303 153 184 161 154 138 151 176 July 165 171 306 154 192 165 156 131 152 184 August . . 165 168 297 149 184 165 154 123 149 176 September 164 165 293 144 176 164 150 116 144 169 October 165 163 293 143 171 165 148 112 145 165 November....... 164 165 306 147 169 164 151 109 147 164 December.... . . 164 165 147 164 157 146 INDEX NUMBERS OF WHOLESALE PRICES IN THE UNITED STATES.' [Average prices In 1913*-100.] Year and month. pr G od o u o c d e s d.im G p o o o r d te s d. ex G p o o o r d te s d. ma R te a r w ials. d g u P o c o r e o d r - s s . ' s g u C o m o o n e d r - s s . ' m A o ll d c it o i m es - . 1919, average . . . . .. 214 174 221 209 198 221 211 1920, average 242 191 235 235 237 244 239 148 108 136 141 142 160 148 1921. November 142 108 143 141 128 157 145 December 140 111 141 140 127 153 142 1922. January. 139 110 139 141 127 150 142 February 143 110 142 145 127 155 145 March... 144 111 144 147 126 157 147 April 146 115 144 150 129 156 149 May . .. . . 155 119 155 164 137 160 158 June . 158 124 163 167 141 164 181 July 162 128 165 177 143 163 185 August 162 127 162 184 144 156 166 September . . . .. . 161 128 157 181 147 154 164 October 161 135 163 179 150 156 165 160 137 173 177 150 156 164 December 160 138 174 177 149 157 164 •Acomplete description of the United States index number, as originally published, may be found in the May, 1920, BULLETIN, pages 499-503. Revisions in prices or weights appear in the BULLETINS for June, 1920; June,. 1921; and May, 1922. INDEX NUMBERS OF WHOLESALE PRICES IN ENGLAND, i [Average prices in 1913—100.] Year and month. pr G od o u od ce s d.im G p o o o r d te s d.ex G p o o o r d te s d.ma R te a r w ials. d g u P o c r o e o d r - s s . ' s g u C o m o o e n d r - s s . ' m A o ll d c it o i m es - . g v o e l r C d t o b e n d a - s t i o s. 1919, average 247 275 226 261 241 241 221 1920, average 315 294 438 291 355 292 314 242 1921, average 207 171 183 197 178 219 201 159 1921. November. 182 154 164 177 153 191 177 144 December 176 152 158 173 147 186 172 147 1922. January 174 149 158 171 147 181 170 148 February 171 148 151 168 144 181 167 ISO March... 172 147 153 170 142 183 1«8 1H April 171 148 152 167 143 183 167 111 May 175 153 155 169 146 191 171 15ft June. 172 154 158 167 148 186 ICO 1*4 July 172 158 158 168 147 190 171 156 August 170 155 159 170 143 183 168 154 September. , 165 157 154 166 143 177 165 150 October 160 161 149 165 144 170 163 14S November 161 165 154 166 146 172 165 151 December 163 163 157 166 146 175 165 157 i A, complete description of the British index may be found in the February, 1922, issue of the BULLETIN, pages 147-153. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

JANCABT, 1923. FEDERAL RESERVE BULLETIN. 79 INDEX NUMBERS OF WHOLESALE PRICES IN FRANCE.! [Average prices in 1913=100.] Year and month. pr G od o u o c d e s d. im G p o o o r d te s d. ex G p o o o r d te s d. ma R te a r w ials. d g u P o c o r e d o r - s s . ' s g u C o m o o e d n r - s s . ' m A o ll d c it o i m es - . Co t b o n a v g s e o i r s ld t . ed 1920, average 466 536 512 506 433 474 478 185 1921, average 322 313 288 341 248 348 321 124 1921. November 290 304 294 315 233 305 292 109 December 284 303 283 313 294 287 117 1922. January 284 295 277 308 229 299 286 121 February 282 286 275 300 227 300 283 128 March... 288 282 272 305 229 306 287 134 April 302 282 274 318 228 327 299 143 May 305 288 279 322 226 333 302 143 June. 305 295 292 327 230 327 303 138 July 306 308 297 332 236 325 306 131 August 295 309 296 329 233 303 297 123 September 287 320 301 323 234 296 293 116 October 285 333 308 328 235 290 293 112 November 295 362 336 348 245 296 306 109 1 A complete description of the French index may be found in the August, 1922, issue of the BULLETIN, pp. 922-929. INDEX NUMBERS OF WHOLESALE PRICES IN CANADA.' [Average prices in 1913=100.] Year and month. pr G od o u o c d e s d. im G p o o o r d te s d. ex G p o o o r d te s d. ma R te a r w ials. d g u P o c o r e o d r - s s . ' s g u C o m o o e d n r - s s . ' m A o ll d c it o i m es - . Co to b n a v g s e o i r s l t d . ed 1919, average '. 207 204 220 197 188 227 207 199 1920, average. 249 253 268 235 255 270 250 223 1921, average 168 164 181 155 174 183 167 ISO 1921. November 144 151 138 131 152 164 145 133 December 144 151 137 131 149 164 145 135 1922. January 143 151 139 132 147 161 144 137 February...... 148 150 152 138 147 164 149 145 March 150 150 151 140 146 166 150 145 April 152 151 153 142 146 169 152 148 May 153 157 154 145 147 168 154 152 151 162 149 143 150 168 153 151 July 153 165 154 143 152 171 154 152 August... 146 166 144 136 154 166 149 149 September 140 170 133 133 154 157 144 144 October 141 171 134 134 155 168 145 145 November ....... 143 165 138 135 157 160 147 147 December. 143 167 138 135 157 161 147 146 1A complete description of the Canadian index may be found in the July, 1922, issue of the BULLETIN, pp. 801-806. INDEX NUMBERS OF WHOLESALE PRICES IN JAPAN.' [Average prices in 1913= 100.] Year and month. pr G o o d o u d c s ed.im G p o o o r d te s d. ex G p o o o r d te s d. ma R te a r w ials. d g u P o c o r e d o r - s s . ' s g u C o m o o d e n r s - . s' m Al o l d c it o i m es - . Co t b o n a v g s e o i r s l t . d ed 1921, average 186 154 173 154 188 193 181 175 1921. November . .. 204 162 183 167 193 215 197 189 December......... 201 154 192 167 192 209 193 186 1922. January 198 153 197 168 191 203 191 181 February...... 192 151 186 163 183 198 185 176 March... 187 153 175 157 183 195 182 173 April 186 151 176 157 183 192 180 171 May 185 157 183 164 182 189 180 171 JUTIfl 188 166 192 168 191 191 184 176 July 197 167 196 170 195 203 192 184 August 189 160 189 161 187 196 184 176 September........... 180 156 189 159 177 185 176 169 October 173 159 195 166 171 174 171 165 November.... 170 166 194 173 168 167 169 164 * A complete description of the Japanese index may be found in the September, 1922, issue of the BULLETIN, pp. 1052-1059. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

80 FEDERAL RESERVE BULLETIN. JANUARY, 1923. WHOLESALE PRICES OF INDIVIDUAL COMMODITIES IN THE UNITED STATES. In order to give a more concrete illustration of actual price movements in the United States, there are presented in the following table monthly actual and relative figures for certain commodities of a basic character. The prices have in most cases been obtained from the records of the United States Bureau of Labor Statistics. This table is published in the BULLE- TIN at quarterly intervals. [Average price for 1913=100.1 Co C m hi , c N ag o o . . 3, C N ot e to w n , O m r i l d ea d n li s n . g, n W o M rt h i h n e e n a r t e n , a N s p p o o r l i . i n s 1 . g , , W re h C d e h a w i t c , a i n N g t o o e . r . , 2, go C o C a d t h t t l i o e ca , c g s h o te o . e ic r e s, , H st h e i e d e a e rs v s , , y C p n a h a c i t c k i a v e g r e s o , . H C og h s ic , a li g g o h . t, 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 r v ic e e r a p g e e r R ti e v l e a- p A r v ic e e ra 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 la e - p A ri v c e e r a p g e e r R ti e v la e - p A ri v c e e r a p g e e r R ti e v l e abushel. price. pound. price. bushel. price. bushel. price. 100 price. pound. price. 100 price. pounds. pounds. 1913 $0.616 100 $0.127 100 $0. 874 100 $0.986 100 $8. 507 100 $0.184 100 $8. 454 100 1914. .683 111 .113 89 1.003 115 1.005 102 9.039 106 .196 107 8.382 99 1915 .722 117 .096 76 1.306 150 1.307 132 8.702 102 .242 132 7.187 85 1916 .812 132 .141 111 1.411 162 1. 351 137 9.573 113 .262 142 9.400 111 1917 1.620 263 .226 178 2.325 266 2.278 231 12.809 151 .327 178 15. 459 183 1918 1.522 247 .312 246 2.191 251 2.210 224 16.368 192 .300 163 17.663 209 1919 1.580 257 .319 251 2.566 294 2.537 239 17.496 206 .393 214 18.326 217 1920 1.397 227 .330 260 2.558 293 2.523 256 14. 486 170 .312 170 14.711 174 1921 .565 92 .141 111 1.466 168 1.435 146 8.780 103 .139 76 8.891 105 1922 .614 100 .204 161 1.345 154 1.238 126 9.438 111 .180 98 9.727 115 1921. October .465 76 .191 151 1.319 151 1.194 121 8.875 104 .148 81 8. ISO 97 November... .473 77 .175 138 1.254 144 1.176 119 8.563 101 .158 86 6.869 81 December... .467 76 .171 135 1.259 144 1.177 119 8.219 97 .165 90 7.025 83 1922. January .474 77 .165 130 1.300 149 1.196 121 8.150 96 .165 90 8.160 97 February .557 91 .166 130 1.522 171 1. 3S2 140 8.638 102 .160 87 10. 263 121 March .561 91 .167 131 1.500 172 1.357 138 8.731 103 .139 75- 10.588 125 April .576 94 .168 132 1.563 179 1.391 141 8.408 99 .134 73 10.500 124 May .609 99 .194 153 1.589 182 1.356 137 8.615 101 .146 79 10.660 126 June .601 98 .217 171 1.419 143 1.160 118 8.863 101 .168 91 10.600 125 July .637 103 .221 174 1.423 148 1.152 117 9.700 114 .182 99 10. 695 127 August .617 100 .216 170 1.186 135 1.057 107 10.375 122 .201 109 9. 656 114 September... .627 102 .209 164 1.085 124 1.071 109 10. 713 126 .213 116 9.694 115 October .686 112 .221 174 1.132 130 1.177 119 10.245 120 .227 123 9.430 112 D N e o c v e e m mb b e e r r... . .7 7 2 1 2 7 1 1 1 1 7 7 . .2 2 5 5 4 5 2 2 0 0 0 1 1 1 . . 2 2 5 1 1 8 1 1 4 3 3 9 1 1 . . 3 2 2 7 5 3 1 1 3 2 4 9 1 1 0 0. . 5 5 0 8 0 1 1 1 2 2 4 3 . .2 2 0 2 4 8 1 1 1 2 1 4 8 8 . . 2 2 6 0 9 6 9 9 8 7 e W g a r s a o t d e o e r l n s , , O m sc h a o io r u k , r e e H t d s , . Y N e f e l l l w o o o w Y r i p o n i r g 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 b t t u i u m n m r e i g , i n n h f e . o . s o u , . s b , .P C o s o c p a C a o l h , o t b o l a u i n t t m u t a m m b s i , u i n n f s e . o . s u o , s . , b. v C il o le k , e a , t C f o u n r n n e a l c ls e - . C e N o l p e e c p w t e r r o Y , l i y o n t r g i k c o . , t, d N L es e e i w a lv d e Y , r p i o z i r g e k d , . , Year and month. Average Average Rela- price per Rela- Average Rela- Average Rela- Average Rela- Average Rela- Average Relaprice per tive M feet tive price per tive price per tive price per tive price per tive price per tive pound. price. manufac- price. short ton. price. short ton. price. short ton. price. pound. price. pound. price. tured. 1913 $0,471 100 $44,591 100 $1,320 100 •$1,571 100 $2,440 100 $0,157 100 $0,044 100 1914 .440 93 42.750 96 1.808 74 .134 85 .039 88 1915 .571 121 39.591 89 1.785 73 .173 110 .046 104 1916 .680 144 39.375 88 3.246 133 .275 175 .068 155 1917 1.145 243 50.909 114 8.250 338 .294 187 .091 207 1918 1.439 306 60.750 136 6.000 246 .247 157 .074 169 1919 1.189 248 78.833 177 4.738 194 .191 122 .058 131 1920 .971 203 145.417 326 6.043 458 5.889 375 10.816 443 .180 114 .081 184 1 1 9 92 2 1 2 . .7 5 8 0 2 8 1 1 6 0 6 8 9 9 4 3 . . 5 7 8 0 3 8 2 2 1 1 2 0 2 2 . . 8 2 1 0 3 3 2 1 1 6 3 7 4 3 . . 0 18 4 0 b 2 2 5 0 8 2 7 3 . . 1 6 3 3 6 6 2 1 9 4 3 9 . . 1 1 2 3 6 4 8 8 5 0 . . 0 0 4 5 6 8 1 1 0 3 4 2 1921. October .473 100 90.000 202 2.180 165 2.680 171 3.275 134 .127 81 .047 107 November... .509 108 91.000 204 2.150 163 2.450 156 2.970 122 .130 83 .047 107 December... .527 112 95.500 214 2.150 163 2.195 140 2.750 113 .136 86 .047 107 1922. January .582 124 95.500 214 2.150 163 2.150 137 2.750 113 .136 86 .047 107 February .673 143 95.500 214 2.150 163 2.075 132 3.038 125 .129 82 .047 107 March .727 154 95.500 214 2.038 154 1.825 116 3.250 133 .127 81 .047 107 April .727 154 95.500 214 2.000 152 1.975 126 4.475 183 .126 80 .051 116 May .727 154 90.000 202 2.750 175 6.000 246 .132 84 .055 125 June .746 158 90.000 202 3.306 210 6.750 277 .136 86 .058 132 July .818 174 92.500 207 4.955 315 10.750 441 .137 87 .058 132 August .818 174 92.500 207 5.688 362 12.800 525 .138 87 .059 133 September... .836 178 92.500 207 4.600 349 5.750 366 11.125 456 .138 87 .062 140 October .836 178 92.500 207 3.675 278 5.938 378 9.800 402 .137 87 .067 151 November... .946 201 100.500 225 3.163 240 6.125 390 7.188 295 .136 87 .072 165 December... .946 201 102.500 230 2.725 206 6.038 384 7.000 287 .141 90 073 166 1 On Toledo market, average for last 6 months of 1913. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

JANUARY, 1923. FEDERAL RESERVE BULLETIN. 81 WHOLESALE PRICES OF INDIVIDUAL COMMODITIES IN THE UNITED STATES—Continued. Pig iron, basic, Petroleum, crude) Mahoning and Cotton yarns, Leather, sole, Steel billets, Steel plates, Steel rails, Pennsylvania, Shenango Valley, northern cones, hemlock, No. 1, Bessemer, tank, Pitts- I open-hearth, at wells. at furnace. 10/1 Boston. Chicago. Pittsburgh. burgh. Pittsburgh. Year and month. Average Rela- Average Rela- Average Rela- Average Rela- Average j Rela- Average Rela- Average Rela- I price per tive price per tive price per tive price per tive price per ] tive price per tive price per tive i barrel. price. long ton. price. pound. price. pound. price. long ton.' price. pound. price. long ton. price. 1913. $2.450 100 $14,706 100 JO. 221 100 ).282 100 J25.789 I 100 $0,015 100 $30.000 100 1914. 1.917 78 12.873 88 .197 89 .302 107 20.078 : 78 .012 78 30.000 100 1915. 1.529 62 13.741 : 93 .173 78 .309 110 22.441 i 87 .013 86 30.000 100 1916. 2.483 101 19.768 ! 134 .265 120 .388 138 43.946 : 170 .032 219 33.333 111 1917. 3.200 131 38.904 ! 265 .397 179 .535 190 69. 856 i 271 .056 376 40.000 133 1 1 1 1 1 9 9 S 9 9 2 2 2 1 1 0 1 2 8 9 . . . . . 3 3 3 4 5 . . . . . 1 3 9 1 9 1 7 7 3 7 4 3 5 4 5 1 1 2 1 1 . 3 4 6 6 3 5 4 2 9 0 2 3 2 4 2 4 2 7 2 1 . . . . . 2 5 6 2 6 6 0 9 6 6 4 9 7 9 8 ] i | 1 2 2 1 1 8 0 8 2 4 8 5 7 1 7 . . . . . 2 3 6 5 6 6 9 2 3 0 1 0 5 4 0 2 2 2 1 16 4 3 7 8 3 1 1 1 2 . . . . . 3 3 4 5 5 5 5 8 2 3 0 8 4 8 4 l i i | 1 1 1 1 1 2 2 8 8 7 4 7 9 7 2 3 5 3 4 4 3 4 6 0 7 . . . . . 9 3 5 2 3 9 8 3 6 0 0 5 9 0 0 i I ! 2 1 1 1 1 3 3 1 8 5 3 2 8 3 7 . . . , . 0 0 0 0 0 1 2 1 3 3 9 7 7 3 2 1 2 2 1 1 1 3 2 1 8 7 0 2 9 3 4 4 5 4 5 0 3 5 9 6 . . . . . 6 6 2 1 8 9 5 6 5 2 2 4 4 0 7 1 1 1 1 1 3 5 7 6 8 6 2 9 4 7 1921. October 3.125 128 19.188 i 130 .383 173 .340 121 ! 29.000 112 .010 45.250 151 November.. 3. 900 159 19.000 ' 129 .366 165 .340 ' 121 ! 29.000 112 .015 103 40.000 133 December.. 4.000 163 18.62S I 127 .33'J 153 .340 121 i 29.000 112 .015 101 40.000 133 1922. January 3.300 135 18.150 | 123 .326 147 .340 121 28.000 109 .015 101 40.000 133 February... 3.250 133 17.750 i 121 .313 141 .350 124 28.000 109 .014 94 40.000 133 March 3.250 133 17.938 ! 122 .314 142 .350 124 28.000 109 .014 94 40.000 133 April 3.250 133 20.000 I 136 I .314 142 .350 124 29.500 114 .015 100 40.000 133 May 3.250 133 24.600 i 167 .331 150 .350 124 34.000 132 .016 105 40.000 133 June 3.500 143 25.000 ! 170 .360 163 .360 128 35.000 136 .016 108 40.000 133 N D J A S O u e o e u c l p t c y v g o t e u e e b m m s m e t r b b b e e e r r r . . . . . . 3 3 3 3 3 3 . . . . . . 0 0 0 0 3 0 0 0 1 0 0 0 0 0 3 0 0 0 1 1 1 1 1 1 2 2 2 3 2 2 2 2 2 5 2 2 2 2 2 2 3 8 4 7 4 6 2 0 . . . . . . 8 6 6 9 7 2 1 0 2 0 5 5 3 0 5 0 0 0 I i j ! [ 2 2 1 1 1 1 2 8 0 1 8 6 9 2 9 0 1 5 i . ' I . . . . . . 3 3 4 3 4 3 9 7 3 8 2 7 1 3 0 7 0 8 1 1 1 1 1 1 7 9 6 7 9 7 7 2 8 5 0 1 . . . . . . 3 3 3 3 3 3 5 5 5 5 5 5 0 0 0 0 0 0 1 1 1 1 1 1 2 2 2 2 2 2 4 4 4 4 4 4 3 3 3 3 4 3 5 6 7 6 9 0 . . . . . . 1 5 0 5 0 7 0 0 0 0 0 5 0 0 0 0 0 0 i 1 1 1 1 1 1 4 3 4 5 4 5 0 6 6 5 2 3 . . . . . . 0 0 0 0 0 0 1 2 1 2 2 2 9 7 1 0 1 0 1 1 1 1 1 1 2 4 3 1 4 3 7 2 2 5 2 5 4 4 4 4 4 4 3 0 0 0 2 3 . . . . . . 0 0 0 0 2 0 0 0 0 0 5 0 0 0 0 0 0 0 1 1 1 1 1 1 3 3 4 4 3 4 3 3 1 3 3 3 Flour, wheat, 2 W - P 3 h o 2 i r ' l s s a t c e d r d e o l s y p s a h b r i r n a e . s d , , i ) I s B te g e e o e r o f s d , , c C n a h a r i c t c i a a v s g e s o , . Cof N fee e , w R Y io o , r N k. o. 7, st (1 a 9 n 1 d 8 a w , r a d s r t ) a , p n a d te a n rd ts Ham C s h , i c s a m g o o. ked, I 1 l N l 5 u 0 e m ° w i f n i Y r a e t o i t r n e k g s . t , oil, g N r e a S w n u u g Y l a a o r t , e r d k , . Year and Minneapolis. month. Average Rela- { Average Rela- Average Rela- Average Rela- Average Rela- Average i Rela- Average Relaprice per tive | price per tive price per tive price per tive price per tive price per tive price per tive pound. price. I pound. price. pound. price. barrel. price. pound. price. gallon, price. pound. price. 1913. $0.777 100 $0,130 100 $0. Ill 100 $4.584 100 $0,166 100 $0,123 100 $0,043 100 1914. .640 82 .136 105 .082 73 5.096 111 .167 100 .120 97 .047 110 1915. .788 101 ! .129 100 .075 67 6.663 145 .153 92 .121 .056 130 1916. 1.050 135 i .138 107 .092 83 7.264 158 .185 111 .122 .069 161 1917. 1.556 200 j .167 129 .093 11.391 249 .252 152 .124 101 .077 181 1918. 2.109 272 .221 171 .097 10.131 221 .318 191 .170 137 .078 183 1919. 1.627 210 .233 180 .179 160 11.998 262 .343 207 .200 163 .089 209 1920. 1.825 235 .230 178 .120 108 12.675 277 .334 201 .263 213 .127 297 1921. 1.179 152 .163 126 072 65 8.326 182 .268 161 .243 197 .062 144 1922. 1.413 182 .150 116 .103 92 7.282 159 .264 159 .208 169 139 1921. October 1.150 148 .164 127 .081 7.425 162 .237 ! 143 : .232 188 : .052 122 November.. 1.150 148 .173 133 .088 7.170 156 .224 135 .240 195 | .052 121 December.. 1.250 161 .164 127 .093 6.881 150 .215 ! 129 ! .24.0 195 .050 117 1922. January 1.277 164 .154 119 87 7.000 153 221 133 .218 176 i .048 112 .February... 1.300 167 .145 112 .090 81 7.975 174 267 161 .210 170 i .049 115 March 1.250 161 .145 112 .096 86 7.813 170 306 184 .210 170 .052 121 April 1.300 167 .145 112 .108 97 8.144 178 309 186 .202 164 .052 122 May 1.350 174 .145 112 .110 99 8.060 176 313 188 .199 161 .053 123 June 1.427 184 .145 112 .110 99 7.500 164 313 188 .200 162 .059 138 July 1.400 180 .148 114 .104 93 7.788 170 301 181 .200 162 .066 155 A S N D O e u o c e p t g c v o t e u e e b m s m m e t r b b b e e e r r r . . . . . . 1 1 1 1 1 . . . . . 5 6 4 4 6 0 5 0 5 5 0 0 0 0 0 2 2 1 1 1 1 1 9 8 8 2 2 3 0 7 . . . . . 1 1 1 1 1 5 5 5 5 5 5 5 5 5 5 1 1 1 1 1 2 2 2 2 2 0 0 0 0 0 . . . . . 1 1 1 1 1 0 0 0 0 1 0 2 2 8 1 1 9 9 9 9 0 0 2 2 7 0 6 6 6 6 6 . . . . . 7 4 7 3 9 1 7 4 3 9 3 4 5 5 5 1 1 1 1 1 4 4 4 5 3 6 8 0 3 8 2 2 2 2 2 0 3 1 6 3 6 2 3 4 5 1 1 1 1 1 2 5 4 2 4 4 9 0 8 1 . . . . . 2 2 2 2 2 1 0 2 2 0 5 0 0 0 2 1 1 1 1 1 6 7 6 7 7 4 4 2 8 8 ' . . . 0 0 0 6 6 6 6 7 3 1 1 1 1 1 6 5 5 4 6 2 4 7 6 0 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

82 FEDERAL BESERVE BULLETIN. JANUARY, 1923. COMPARATIVE WHOLESALE PRICE LEVELS IN PRINCIPAL COUNTRIES. ALL-COMMODITIES INDEX NUMBERS.' EUROPE. Year and month. L M g t a B r i y u b i e n o m l o i - r s f ; . - 2 B G S g B u t e t a i a n r c u r e t a e i l i a a - r l s ; u a - l . F i m d i D e n a n e a r d n n k e - s ; . - * ! B F G S u r t e a t i r n c a n e e a t a c i r l s u e a - ; l .' F m f t G u r u Z a a r n e e n t n g r e i y k - - . r 5 ; - B F m S u e t G t i a d r a c e e n e t a r a i r y - l s u a ; - . l 6 R B I i t a c a c c l a h y r i ; d .i o N C t B l o i a s e e u f n t n t r i h S d e t c e r t s a s a a r ; u . - l - ' O N R t ( i C m e a o e k n v r h i w o s i r u a i k n a e s ) o - y . ; ' - P C S O o t e t i l f n a c a fi t a t n c r i l s e d a - . l ; I a o t n S i r n f s a s p d G t p t i a i c h e S t i u o n s y t . g a ; t " e - -H S S id j b G w a o n o o n f o e i c r a n d d t g h r e g e e t s - s l n .u s - ; L S D l o w a r r n i e . t d z J n . e ; z r . - 1 (128) (33) (45) (98) (38) (100) (53) (93) (58) (74) (47) (71) 1913 100 100 100 100 100 100 "100 1914 . . "100 103 "100 i 101 is 100 106 95 105 "115 I'lOO 101 116 100 1915 137 138 137 142 133 '. 145 8 159 119 145 1916 164 187 153 202 ' 222 8 233 141 185 1917 18 667 228 262 179 299 : 286 a 341 166 244 1918 18 830 293 339 217 409 392 8 345 207 339 1919 •8 1,166 294 357 416 364 297 8 322 204 330 1920 . 1 940 382 510 1,965 1,486 624 282 3 377 221 347 1921 2,006 250 345 2,130 1,911 578 181 18 269 190 211 195 1922 367 179 327 32,715 34,182 220 166 1921. 374 2,061 186 332 3,416 595 165 276 184 174 182 369 2 155 188 326 3,487 595 165 269 183 172 178 1922. 366 2,172 178 . 314 4,217 3,665 577 161 260 59,231 179 170 176 April 344 2,514 178 314 6,703 6,355 527 161 236 75,106 178 165 163 May 348 2,695 177 317 7,384 6,458 524 165 231 78,634 176 164 161 3! 6 2,436 179 325 7 851 7,030 537 167 230 87,694 177 164 160 July 360 2,489 180 325 9 102 10,059 558 162 232 101,587 174 165 161 300 2,526 180 331 13,978 19,202 571 155 227 135,786 174 163 163 September 364 2,531 178 329 29,116 28,698 582 153 225 152,365 173 158 163 3S5 2,558 176 337 43,223 56,601 601 156 221 201,326 155 163 408 2 564 180 352 94 492 115,100 596 158 221 275 647 154 169 December 407 182 362 166, 495 147,480 5S0 220 170 EUROPE—continued. NORTH AMERICA. ASIA ANDOCEANIA AFRICA. Year and month. B U T o K d n r a o i a r i n m t d d e g e ; d o - . f U E m K d c n o i i o i n s m t n t g e . o ; " - d - S U K t d a n o i t i n m i t s g e t ; d - .1 o U B S S f t t u t n i a L a r c i t t e t a e s i e a b . s s d u - o ; r C m L D a a e e n b p n a o a t d r r o a t ." - f ; o a B t f t n i C A r s u d a t e r u i l n e S c i s a a s - s t u ; u a .' s - M n ( C S o a h i h f n h n a a c i l i F s n n ) e 1 ; t a g . r - s - v " 0 B I S D n E u t t i d u a r c a e i t t a s e i c a s t l s h u - ; . m D c S I t u ( e e n i C t c t a p n d t s a t a a t i . i l a e r s ) o - t ; - f - ( B J T J a a o a p n k p a k y a n n o o . ) 8 f ; Z m D S e N t e a e t i a p l n c e a t a t w s i n r s . o d t - - f ; m ( D E S C t e e t g i a a p n c y i t r a s t i p o . r s o t t ) - - f ; a O C A t S n i f s e f d o f r t n i u i i c s S c c t e u a h s t s a o . ; - f (150) (44) (45) (404) (271) (92) (147) (75) (56) (106) (23) (187) 1913 » 100 100 100 100 100 'i 100 100 100 1914 99 101 98 101 " 100 23 100 96 104 24 100 >uoo 1915 123 126 101 110 141 112 97 123 102 1916 161 159 127 135 132 128 117 134 124 127 1917 204 206 177 177 155 147 147 151 168 145 1918 . .. . 225 226 194 206 170 18 232 180 192 175 207 15S 1919 235 242 206 217 180 1331 i» 281 198 236 178 225 170 1920 307 283 295 226 246 218 140 '8 226 204 259 212 299 231 1921 197 181 188 147 182 167 145 186 181 200 201 171 i 1921. 173 165 161 141 168 151 144 170 180 214 191 171 168 157 140 170 148 146 166 180 209 188 160 1922. 164 159 156 138 168 147 149 164 178 206 186 156 April 160 159 158 143 166 148 148 i 164 182 197 180 : 148 132 Mav 160 162 159 148 167 155 146 166 187 194 177 • 141 June 160 163 159 150 165 156 144 ! 167 183 197 175i 139 July 160 163 157 155 166 157 144 168 J81 201 177 138 131 156 158 152 155 164 155 142 | 162 178 195 177 139 September 154 156 150 153 163 158 140 ! 159i 176 193 174 138 October. 155 158 153 154 162 159 143 1 1631 177 190 140 133 November 157 159 153 156 164 143 1 178 188 144 December. 158 156 165 149 147 1 The number of commodities or quotations used in the computation j « July 1,1913, to June 30,1914-100 of each index is indicated by figures in parentheses at head of each | "April, 1914=100. column. ; » July 1.1912, to June 30,1914=100. • Average of last half of month. "July, 1914=100. • First of month. •« Dec. 31,1913, to June 30,1914=100. < End of month. j "January, 1914=100. • Beginning of month—not always the 1st. •8 December figure. • Average for the month. 18 January figure. ' 38 commodities prior to 1920; 76 commodities during 1921. End of «° As of last Wednesday in month. month. Ji February, 1913-100. « Based upon price of 52 commodities during 1920; 53 during 1921. "As of Jan. 1. • End of year and end of month. » End of July, 1914=100. "15th of the month. " Jan. 1,1913, to July 31,19U-100. u Middle of month. '• Average for year. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

JANUABT, 1923. FEDERAL RESERVE BULLETIN. 83 The foreign index numbers published on the BULLETIN for a more complete series of group preceding page are constructed by various for- index numbers than appears in this issue. eign statistical offices, and are sent to the Fed- The index numbers for Germany (Frankfurter eral Eeserve Board by cable. The BULLETIN Zeitung) and for Egypt have recently been refor January, 1920, contains a description of the vised and corrected. A complete table show- French, Australian, Japanese, and Canadian ing the revisions for the Frankfurter Zeitung indexes. A description of the method used in index will be found on page 85. The index for the construction oi the Swedish index number Egypt is as follows: appeared in the BULLETIN for February, 1921; the British index number, compiled by the [1914=100.] Board of Trade, was described in the March, Month. 1921 1922 1921, BULLETIN; and the Italian index number was discussed in the April, 1921, issue. January... 204 156 The December, 1921, BULLETIN contains a de- February. 180 152 scription of the index published by the Federal March 171 153 April 172 148 Statistical Bureau for Germany, and the in- May 170 141 June 161 139 dexes for Switzerland, Netherlands, Norway, July...... 159 138 Bulgaria, Egypt, the Union of South Africa, August 158 139 September 169 138 and the Dominion of New Zealand. The in- October... 180 140 November. 171 144 dex number for the Dutch East Indies was December. 160 147 described in the BULLETIN for March, 1922, that for Poland in the BULLETIN for July, 1922, A description of the international price index while a description of the Belgian index may be numbers of the Federal Reserve Board for the found in the October, 1922, issue. The revised United States, England, Canada, France, and index of the United States Bureau of Labor Japan may be found in the BULLETINS for Statistics was first published in the July, 1922, May, 1920; February, 1922; July, 1922; August, BULLETIN ; and a description of the Frankfurter 1922; and September, 1922, respectively. A Zeitung's new index was given in the issue comparative summary table showing the for September, 1922. A revised set of figures Board's international index for these five for the Board of Trade index from 1920 to date countries appears on page 78. was published in the BULLETIN for December, Index numbers showing the price levels of 1922, p. 1460. separate groups of commodities in the United Lack of space prevents the publication of States and a few foreign countries are pregroup index numbers for many of these coun- sented on the following pages. Group index tries except occasionally, but such figures may numbers computed by the Federal Reserve be obtained from the Division of Analysis and Board as part of its international series of price Research at any tune upon request. Refer- indexes will be found on pages 78 and 79 of ence may be made to the September, 1922, this issue. GROUP INDEX NUMBERS—UNITED STATES—COMMODITIES IN BUREAU OF LABOR STATISTICS INDEX REGROUPED BY FEDERAL RESERVE BOARD. Kaw materials. Pro- Con- All Year and month. i p A r t o g u d r r i u c a c l u t l- s. p A r n od i u m c a t l s.pr F o o d r u e c s t t s.p M ro i d ne u r c a t l s. r t a T e w o r i t a a m l a s l . - d g u o c o e d r s s . ' s g u o m o e d r s s . ' com ti m es o . dii (21) (21) (11) (35) (88) (117) (199) (404) 1913.. 100 j 100 100 100 100 100 100 100 1919.. .: 250 ! 221 211 180 218 179 211 206 1920.. -j 255 ! 186 312 236 229 214 231 226 1921. • 134 j 110 166 185 142 135 159 147 1921. November.. 130 ' 10b 175 178 ; 137 125 153 141 December.. 130 103 169 179 137 125 151 140 1922. January.. 130 109 167 178 139 123 138 February. 140 121 166 177 146 118 148 141 March 141 122 165 178 147 120 150 142 April 145 120 167 180 148 122 149 143 J J MM u u * n ly y e 1 1 1 4 4 5 7 6 2 1 1 12 3 2 3 0 2 1 1 1 8 7 8 6 4 8 2 2 2 0 1 4 2 1 1 1 1 1 7 5 5 1 7 9 1 1 1 2 2 2 9 5 7 1 1 1 5 5 5 0 1 2 1 1 1 5 4 5 5 8 0 August 138 127 191 261 173 129 149 155 September. 136 132 199 236 168 132 150 153 October 147 132 204 218 166 135 152 154 November.. 160 129 207 209 166 136 155 156 December.. 161 128 211 208 167 135 157 156 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

84 FEDERAL RESERVE BULLETIN. JANUARY, 1923. GHOUP INDEX NUMBERS—UNITED STATES—BUREAU OF LABOR STATISTICS. Year and month. Foods. ; j c C lo l f t o i h n t d h in s g. l F i u g e h l t i a n n g d . p M r m o a d e e n t u t d a a c l l s t s .; j j |B m u ri i a a ld t ls e i . - n g; I i C ca h ls e m an - d fu H g r o i o n n o u i g d s s s h e . - la M n i e s o ce u l s - . co i m t A ie m ll s o . d- (110) (65) (20) (37) j (41) (31) (25) (404) 1913 100 100 I 100 100 100 100 100 100 100 1919 207 253 I 181 162 | 201 169 184 175 206 1920 220 295 I 241 192 i 261 200 254 , 196 226 1921 141 ISO 199 129 i 165 136 195 ! 128 147 1921. i November 139 180 197 114 | 163 129 178 '• 119 141 December 120 I 136 180 199 113 158 127 178 121 140 1922. January 131 176 195 112 I 157 124 178 117 138 February 135 , 174 191 120 156 123 177 117 141 March 137 172 191 109 155 12r> 175 117 142 April 137 I 171 ' 194 113 156 124 175 llfi 143 May 138 175 210 119 160 122 176 116 148 June 140 179 22a 120 167 122 170 114 150 July 142 180 : 254 121 170 121 173 114 155 August 138 i 181 ' 271 126 ; 172 122 173 115 15S September 138 ! 183 244 134 180 124 173 116 153 October 140 ! 188 | 226 135 183 124 176 ' 120 154 November 143 192 ! 218 133 135 127 179 122 156 December 144 194 216 131 ! 185 130 182 122 156 REVISED GROUP INDEX NUMBERS-UNITED KINGDOM—BOARD OF TRADE. Other Year and month. i Cereals. Me f a is t h a . nd f O o t o h d e s r . T fo o o t d a . l Iro st n e e a l n . d m a e n t d als Cotton. te O x t t h il e e r s. a O rti t c h l e e r s , i To f t o a o l d n . ot art A ic l l l es. minerals. (17) (17) (19) (53) ' (24) (20) (16) (15) (22) (97) (150) 1913 average.. 100 100 100 100 100 100 100 100 100 ! 100 100 1920 average .. ' 273 263 279 ' 272 358 252 480 359 273 I 329 307 1921 average . i 194 219 214 209 210 179 192 172 196 , 191 197 1921. 158 178 195 177 160 153 199 167 183 171 173 1922. August. . . 151 169 161 160 133 142 186 165 160 154 156 September.. . . 143 174 152 156 132 140 185 168 160 153 154 October . '•• 145 169 157 157 131 139 184 170 165 i 154 155 144 173 162 160 131 139 193 172 168 i 156 157 GROUP INDEX NUMBERS—FRANCE—GENERAL STATISTICAL BUREAU. Year and month. A fo n o im ds a . l Ve fo g o e d ta s b . le cof S c l' o u e c e g o , a a a r . , nd fo A o l d l s. Minerals, i | Textiles. Sundries. A m l a l t t r i e i n r a d i l a u l s s - . m A o ll d c it o i m es - . (8) (8) (4) (20) (7) i (6) (12) (25) (45) 1913 average 100 100 100 100 100 100 100 100 100 1919 average 392 313 253 a% 272 444 405 373 357 1920 average 503 427 422 449 737 524 550 51C 1921 average 380 330 343 459 275 355 374 338 345 1922 average 349 295 329 355 270 390 j . 338 329 327 325 1921. December 324 303 300 313 375 j 364 337 326 1922. September 346 279 333 318 279 ; 418 341 339 329 October 341 283 311 313 446 347 357 337 November 365 289 345 331 305 468 363 369 352 December. 387 300 364 349 311 473 365 373 362 GROUP INDEX NUMBERS—GERMANY—FEDERAL STATISTICAL BUREAU. Goods Goods All corn- Goods Goods All com- Year and month. produced. imported, modities. Year and month. produced. imported. modities. (16) (22) 1 (38) (16) (22) (38) 1913 average 100 100 100 1922. 1919 average 385 558 416 June 6,540 9,479 7,030 1920 average 1,253 i 2,652 1,486 July 9,300 13,854 10,059 1921 average 1,786 2,533 1,911 August 16,545 32,491 19,202 1922average 29,655 56,818 34,182 September 25,815 43,113 28,698 October 49,853 90,343 56,601 1921. November 95,290 214,150 115,100 December 3,170 I 5,071 3,487 December 128,330 243,230 147,430 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

JANCARX, 1923. FEDERAL RESERVE BULLETIN. 85 GROUP INDEX NUMBERS—GERMANY—FRANKFURTER ZEITUNG. Year and month.' F l o u o x a d u n s r d t i u e f s f . s l T e e a a x t n h t d i e l r e . Minerals. M n i e s o ce u l s l . a- I p n f r i d o n u d is s u h t c e ri t d a s. l m A o ll d c it o i m es - . (26) (16) (18) (17) <2l) (98) July,1914 100 100 100 100 100 100 January, 1920.. 1,972 3,407 2,749 1,101 1,465 1,965 January, 1921. 2,019 3,840 2,780 1,776 1,704 2,130 1922. January 3,840 7,168 5,178 3,149 3,347 4,217 February... 4,300 7,722 5,525 3,492 3,581 4,599 March 5,211 8,492 6,810 4,201 4,060 5,42C April 6,330 8,551 8,585 5,288 4,972 6,703 May 6,649 9,228 9,305 5,961 5,982 7,384 June 6,967 9,626 10,141 6,413 6,341 7,851 July 8,323 11,001 12,168 6,881 7,292 9,102 August 13,691 .19,661 18,355 10,993 10,001 13,978 September. 29,175 32,184 42,648 21,605 22,664 29,116 October 38,595 66,157 54,905 32,134 35,025 43,223 Nor ember.. 88,980 153,896 128,982 72,038 57,683 94,492 December.. 144,753 266,622 219,395 134,177 118,385 166,495 1923. January. 175,845 320,632 262,212 177,752 151,793 205,417 1 Beginning of month—not always the 1st. GROUP INDEX NUMBERS—ITALY—RICCARDO BACHI. Vegetable Animal foods. ! foods. January... September October November December GROUP INDEX NUMBERS—SWEDEN—GJJTEBORGS HANDELS OCH SJOFARTSTIDNING. [July 1,1913-June 30,1914=100.1 Year and month. foods A fo n o im ds a . l R f c o t a u e r w l r t a i u a g m r l r s e a i . - - Coal. Metals. le H a a i t n d h d e e s r. Textiles.! Oils. m A o ll d i c t o ie m s - . (16) (7) (5) (2) (5) (5) (2) (47) 1913-14. 100 100 100 100 100 100 100 100 1919.... 261 409 340 804 •an 330 1920.... 262 296 312 1.007 215 324 294 347 1921.... 210 220 227 285 107 144 228 211 1921. November. 161 196 197 194 108 149 179 174 1922. August 168 168 162 167 90 170 154 163 September. 146 179 160 169 90 171 150 158 October... 143 166 158 16!) 91 176 150 155 November. 132 171 159 175 89 194 150 151 GROUP INDEX NUMBERS—CANADA—DEPARTMENT OF LABOR. Year and month. f G o a d r n a d d i e n r s . A m n a e i n m a d t a s l . s D p u r c a o t i d r s y . - t F v a a r e b n u g l d i e e t s - s . f O o t o h d e s r . Textiles. l H ea e i t t d h c e . e s r , , Metals. I m m e p n l t e s - . l i t u B n e m g r u i i b m a l l d e s a - r , - . J l F ig u h e t l i n a g n , d c D h c a r e a n u m l d s g . i s - m c t o A i o e m d l s l . i - - (15) (17) (20) (25) (20) (11) (23) (10) (14) (10) (16) (264) 1913 100 100 100 100 100 100 100 100 100 100 \00 100 100 1919 227 199 192 206 222 285 213 173 228 171 201 205 217 1920 263 198 204 261 258 303 192 203 245 268 255 204 246 1921 150 149 157 172 181 189 110 150 240 211 218 177 182 1921. November... 125 113 158 176 158 179 100 140 232 180 211 165 168 1922. | August 130 138 120 i 159 152 181 105 142 216 179 I 257 161 164 September... 121 132 128 137 156 181 105 144 I 218 179 243 160 16S October 119 131 141 139 153 183 103 146 218 180 232 158 1CJ Novembeerr I 126 125 152 155 153 185 106 147 i 21S 181 ! 221 160 164 December. 127 127 160 159 153 182 102 148 I 218 184 225 160 165 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

86 FEDERAL EESEBVE BULLETIN. JANUARY, 1923. COMPARATIVE RETAIL PRICES IN PRINCIPAL COUNTRIES. In the following table are presented statistics showing the trend of retail prices and the cost of living in the United States and certain other countries: INDEX NUMBERS OF RETAIL PRICES AND COST OP LIVING. Retail prices. Cost of living. Year and month. St n at e e d s, ! ada. | F ( r P a a n ri c s e ) ' . T : fn Il , al _ 5- 1914. 3 100 100 . 3 100 | 1920 199 215 !. 1921 150 164 . 1921. | September 150 j 159 1,428 329 I 542 October 150 155 . 331 I 581 November 149 I 149 j 326 December 147 14S ' 323 1922. January 139 149 j 1,467 319 S7f> 190 66,900 41S 1,640 1,903 46,883 February 139 ! 143 ! 1,461 307 559 189 77,000 394 1,9S9 2,177 48,085 March 136 ; 142 ! 1,414 294 546 185 77,800 372 2,302 2,740 52,358 April 136 133 i 1,415 304 524 182 87,200 308 3,175 3,177 58,627 May 136 13S ! 1,444 317 539 178 109,300 365 3.462 3,455 63,914 June 138 ! 137 ; 1,475 307 179 197,100 373 3,779 4,149 68,406 July 139 I 138 I 1,430 297 179 264,500 372 4,990 6,122 78,798 August 136 : 141 i 1,290 289 531 181 593,200 369 7,029 10,271 90,823 September j 137 139 1,105 291 ISO 1,130,600 384 11,376 16,368 107,663 October 140 < 138 1.010 290 178 1,033,200 706 19,504 26,069 128,418 November 142 . 984 297 170 40,047 56,497 December 144 . 305 61,156 86,785 1 Average for the month. 3 July. '» 1913-1914-100. * June. 'Average for 1913. <Apr. 15,1914=100. •August, 1913-July, 1914= 100. 8 1909-1913=100. Retailprices.—The American index number, constructed The Berlin index, computed by Dr. R. Kuczynski, is by the Bureau of Labor Statistics, was based upon the retail based on the minimum cost of subsistence for a workingprices of 22 articles of food, weighted according to family class family of four persons in Berlin. The groups inconsumption, until January, 1921, when it was increased cluded in the budget are food, clothing, heating, lighting, to 43 articles reported by dealers in 51 important cities. and rent. The method of weighting continues the same, although the The Polish Central Statistical Office furnishes an index actual "weight" applied has been changed. The original including food, clothing, heating, lighting, rent, and misbasis, thart of the year 1913, has been shifted to July, 1914. cellaneous expenditures. Official prices are used for The index number for Czechoslovakia is based on the State-controlled goods, but when the official ration is less retail prices of 23 commodities including foodstuffs, fuel, than a standard budget the balance is reckoned at the petroleum, and soap. trade price. The system of weighting is according to a The retail price index for Paris, compiled by the French theoretical budget for a working-class family of four General Statistical Office, consists of retail prices of 13 dif- persons in Warsaw. ferent commodities, weighted according to the average The Swiss index number, computed by the social annual consumption of a workingmans family of four statistics service of the Bureau of Labor, is based on an persons. Eleven of the commodities included in this in- investigation into household budgets made in 1920, and dex are foods, and the other two are kerosene and alcohol. refers to about one-third of the entire cost of living of the The Italian retail price index for the most important family of a skilled worker. cities, computed by the Italian Ministry of Labor, consists The British index number of the cost of living, conof retail prices of 21 commodities. Of the commodities in- structed by the Ministry of Labor, consists of the retail cluded, 20 are foods and the other commodity is charcoal. prices not only of foodstuffs, but of other articles as well. The Swedish index number consists of the retail prices Retail clothing prices, rents, and the cost of fuel, lighting, of foodstuffs, fuel, and lighting and is based upon the and miscellaneous household items are also taken into conprices of 51 articles in 44 towns (in 1920, 50 articles in 49 sideration. The index number is weighted according to towns), weighted according to the budget of a working- the importance of the items in the budgets of workingman's family which before the war had a yearly income class families. of 2,000 kronor. The Indian index, including food, clothing, heating, Cost of living.—The Austrian index, computed by the lighting, and rent, is computed by the labor office secre- Paritatische Kommission, includes food, clothing, fuel, tariat. Prices are collected twice a week from 10 retailers lighting, and rent. Prices, collected from cooperative asso- in Bombay. The index is weighted according to the ciations and firms, are those ruling on Vienna markets. An average aggregate expenditure of the whole of India during average is obtained for each article and weighted according five years before the war. to the theoretical weekly expenditure oi a normal person. The index number for New Zealand includes food, rent, The Belgian index number of cost of living, constructed fuel, and lighting. It is computed by the census and by the Ministry of Labor, consists of the retail prices of 30 statistics office, on the basis of average annual aggregate commodities, weighted according to a standard budget expenditure, in four chief centers, 1909-1913. based on an inquiry into the expenditures of 848 families The South African index, computed by the Office of of the laboring and small middle classes. Census and Statistics, includes food, heating, lighting, and The German cost of living index for 46 cities is furnished rent. Until December, 1919, it was weighted according to by the Federal Statistical Bureau and includes food, fuel, a standard budget, but since then the aggregate expendilight, and rent. ture method has been adopted. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

JANUARY, 1923. FEDERAL RESERVE BUIJJETIN. 87 INDEXES OF INDUSTRIAL ACTIVITY IN FOREIGN COUNTRIES. UNITED KINGDOM. PRODUCTION. [NO. Unem- 'ployed among Year and month. Coal. .Pig in S a g t n e o d e t l s is F h in ed - C m o f a a t n c to - u n - Coal. Raw w R o a o w l. I R w a e w t H d id ry-d e , s , V u c e n o s d s n e e - r ls V le e a s r s e e d ls . a i 1 0 m p 2 0 p , a 0 0 r t 0 o e i 0 n x l , y - - iron* cast- steel. j fac- tures. hides. « a " n * a » •! t c o ir n ii0p ." sured ings. i tures. persons. Long Long Long Long Long Long | i Gross tons tons tons tons Bales tons Sq. yds. tons i Found: Pounds 'Pounds \Pounds ! tons. Tons Per Monthly average: (000). (000). {000). (000). (000). (000). (000,000) (000). 1(000,000) (000,000)\ (000). (000). (000). (000). cent. 1913 23,953 855 639 414 '596 6,117 j 181 67 i 6,927 2,003 5,652 1920 19,108 670 756 646 1,397 271 374 2,078 ' 158 73 ; 4,025 j 6', 277 3 603 3 049 1921 13,696 218 302 238 1,234 142 244 2,055 ; 98 i 63 ' 4,792 [ 2.469 3,313 3,032 1921. October ' 21,090 236 405 304 1,123 156 345 3,406 733 ! 6,407 4,226 i 4,056 12.8 November 17,875 272 444 330 1,216 194 366 3,594 195 ! 8,967 4,504 j 3,944 15.7 December 3 22,594 275 381 292 1,271 205 333 4,309 i 186 ; 7,875 3, 800 2,640 4,003 16.2 1922. January 17,693 288 328 271 1,298 253 342 4,021 134 90 4.557 4,188 3,919 16.2 February 19,764 300 419 321 1,240 224 254 4,014 99 112 12; 184 12,882 3,891 15.2 March 19,921 390 549 369 1,112 296 307 5,201 83 123 4,568 4,102 2,236 4,814 14.6 April 522,875 394 404 294 1,181 258 305 4,097 101 117 3,164 3,590 4,187 14.4 May 19,146 408 462 334 1,143 272 345 5,057 120 138 2,994 2,471 5,104 13.5 June 15,827 369 400 316 1,111 236 315 4,794 127 97 2,772 3,393 1,920 4,975 12.7 July 23,135 399 473 345 890 252 447 5,064 111 79 7,390 2,982 4,828 12.3 August 19,151 412 528 338 864 270 381 6,146 81 107 7,281 4,422 5,855 12.0 September 325,681 430 556 363 853 279 400 7,083 60 52 7,339 3,616 1,617 5,731 12.0 October 21,207 482 565 882 347 357 6,196 128 60 5,090 6,571 5,590 12.0 November , 21,712 1,056 372 402 5,671 183 60 5,550 5,469 5,653 12.4 1 Figures for end of the month. * Expressed in yards. 3 Figures for 5 weeks. FRANCE. PRODUCTION. TRANSPORTATION. Unem- Cotton ployed Year and month. Seel! H st a o a v c t r k e s .1 Total. Total. j j i c c o o t R t t n i o o a s n w u n , m f o p r - I 1 . c s o i R t n l i k o a s w u n f m . or p-c C on t o i s a o u l n m f . o p r - c V l e e s a s r e e l d s , i • r R p a r e i i l c w n o e c f a i i p y p s t a s . l 2 im re n a P c i n e a d i i r v c i i i s i n p n . g al Metric Metric Bales« Metric Metric Metric Metric Metric J Tons Francs tons (000). tons (000).\ (000). tons (000).tons (000). tons. toni. Ions (000). 1 (000). (000). Number. Monthly average: 1913 <434 <391 274 1,840 3,685 27,428 029 1,558 I 2,176 j'-165,892 1920 286 254 225 1,071 4,211 19,577 390 2,005 1,412 479,894 3,022 1921 280 255 169 1,333 3,165 16,666 206 1^472 ! 1,802 i 516,397 20,671 1921. October 256 260 181 1252 2,809 25,757 385 1,301 2,007 i 5,348 November. 295 277 192 1 515 5,161 29,059 277 3,291 1,862 ; 483,216 3,730 December.. 301 302 208 2 507 5,197 30,835 382 2,895 1,992 i 641,887 4,175 1922. January... 312 315 188 1,554 3,396 14,870 502 1,676 1,735 454,323 4,658 February.. 323 317 163 1,520 4,126 14,714 467 2,153 1,744 468,175 4,385 March 367 127 1,570 4,434 20,978 408 2,081 1,934 472,779 3,546 April 324 138 1,794 3,787 17,391 207 1,538 2,088 608,764 2,447 May 442 364 169 1,538 4,396 18,090 404 2,058 2,340 472,607 1,636 June 416 358 145 j 1,799 4,307 32,380 391 1,829 2,473 504,431 958 July 428 369 153 1,936 4,223 26,325 566 1,631 i 2,523 651,720 602 August 447 397 135 I 1,788 4,512 16,291 579 1.767 ! 2,399 546,310 606 S O N e c o p t v o t e e b m m er b b e e r r . . . 4 5 8 0 2 3 4 4 0 3 7 0 1 1 9 5 3 9 8 1 2 2 2 , , , 0 0 6 3 3 1 4 4 6 4 4 4 , , , 5 5 1 7 4 3 7 3 8 2 1 7 7 , , 8 3 7 0 7 2 I 5 7 5 2 0 2 1 1 . , 7 69 6 2 8 ; ! 2 2, , 3 3 3 5 6 9 5 7 5 3 2 6 2 0 3 , , , 2 1 3 1 5 1 0 2 4 2 4 2 7 1 8 2 0 5 1 End of the month figure. » Railways included are: State Railways, Paris-Lyon-M&literran^e, Nord, Orfeans, Est, Midi, Alsace-Lorraine, and GuiUaume-Luxembourg. «Bale of 50 kilograms. < Figures do not include Lorraine. ' Excludes the Alsace-Lorraine and Guillaume-Luxembourg Railways. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

88 FEDERAL EESEKVE BULLETIN. JANUARY, 1923. GERMANY. PEODUCTION. EXPORTS.1 IMPORTS.1 SHIPPING. UN M EM EN PL T O . Y- Appli- Ma- cants Unem- Year and month. c C a o n o k d a e l . Lignite. f m a I c i a r a r t n o o u n d n n r u e - s. c t h e s r a u l i i n e n c p c d a - e - l ry s D t d a u y n y f e d f e - s s . Coal.> Eaw m t s H u f a i a r l a c n e k - l u d f . - t C o o n t . - 3 Iron H A ve a rr s m i s v e b a l u s ls r i g n o . f a e a v v 1 f b o a 0 e l r i r 0 e l y - p p r S e l e i o t r n c a s y g e o t e i e n v d s plies. posi- aid. tions. — Metric Metric Metric tons tons Metric Metric Metric Metric Metric Metric Metric tons Tons Nuvib<r Monthly average: (000). (000). tons. tons. tons. tons. tons. tons. Ions. (000). Number. (000). Number. (000). 1913 . ... 17 003 7 266 541,439 60 919 2!, 812 2,881,126 16,608 920 43,424 1,225 1,256 1,182 1920 13,043 9,303 145,883 546 772 8,462 60S; 749 » 4,025 5 232 12,490 538 401 374 109 366 1921.. 13 664 10,241 203 681 39 037 8 530 518,937 11,860 393 30, 894 019 700 794 165 31C 1921. October. 14 373 10 567 246 115 33 067 10 255 570,048 12,506 774 29,739 920 915 1 047 128 186 November 14 052 10 479 233 204 35 697 9 953 569,657 12,628 346 27,242 937 838 881 136 150 December 14 343 11 029 214 812 46 397 9,212 640,877 ! 10,984 38S 28,313 791 503 873 148 149 1922. January 14,640 10,978 221,743 39,470 9, 552 752,340 10,400 347 23, 420 942 745 875 150 165 February 13,655 10,091 172,709 45,689 9,332 609,433 26,202 383 17,915 493 461 716 145 203 March 15,931 12,260 211,979 48,813 12, 299 795,200 25,9S8 440 26, l;)0 810 894 969 113 213 April 13, 800 10,634 200,677 46.112 11,095 795,940 24,091 462 24,070 863 072 1,112 113 116 May 14,070 11,437 209,432 47,354 12,629 701,941 25,619 486 26,112 1,519 1,143 1,244 107 65 June 11,416 10,487 213,220 49,347 16,335 528,766 : 15,723 436 22,037 1,159 1,092 1,287 103 29 July 11 972 11 411 212,365 44,162 12,671 199,961 i 14,119 435 28,085 962 793 1,065 106 20 August 12,7S0 12,147 198,408 50,978 12,616 121,359 i 11,011 459 20,915 997 1,005 1,171 109 !5 September 12,623 11,823 244,012 40,150 13,477 110,245 ' 8,708 3!2 13.959 1,090 945 1.208 122 12 October '13,329 12,078 246,074 50,699 15,187 125.670 i 10,023 371 10,584 1,310 1,016 1,272 16 1 Export and import figures for first 4 months of 1921 not available; 1921 averages based on 8 months. « Not including coal for reparations account. ' Includes linters. < Includes manganese ore. * Average based on 6 months. • Coal, excluding coke. SWEDEN. PRODUCTION. EXPORTS. IMPORTS. TRANSPORTATION. Unemployed Year and month. Freight workmen I P ro ig n. ste Ir e o l n in a g n o d ts. (J b n o p a l r a d n s e . d P p a u p lp e . r rC oal , - e V n e te ss r e e l d s . c V le e a ss r e e l d s . o c n a r S ri t e a d te va p c e a r n 1 c 0 ie 0 s. railways. Metric tons Metric torn Cubic Metric tons Metric tons Net tons Net tons Metric tons Monthly average: (000). (000). meters (000). (000). (000). (000). (000). (000). Number. 1913 61 49 328 71 408 1,147 1,147 830 112 1920 39 37 306 73 234 677 692 991 107 1921 26 17 162 40 122 519 482 589 276 1921. October 16 IS 370 144 219 670 595 691 263 November 18 22 361 54 192 601 578 721 384 December 19 17 356 99 : 246 575 582 558 473 104 1922. January 18 13 87 28 ! 114 442 409 485 482 February 17 17 25 11 62 285 255 630 479 March 22 22 63 36 197 617 509 730 381 April 19 21 66 21 206 524 485 622 3G8 May 24 31 99 76 230 600 633 578 257 June 21 24 500 80 172 596 738 645 215 July 20 27 608 89 ; 214 625 787 715 203 August 22 27 539 104 294 694 836 765 172 September 22 31 508 113 229 684 808 776 155 October. 23 31 494 144 •. 270 660 774 177 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

JANDART, 1923. FEDERAL KESEKVE BULLETIN. 89 JAPAN. PRODUCTION. TRANSPORTATION. Raw silk Year and month. I C ya o r t n to s n . f ( t a h a S b a y i r b l e i k c u ). s - Paper. s Y h t m k o a o e c a m k t k r . o a - s - , S ra il w k . , f ( t a h a S b a y i r b l e i k c u ). s - C ya o r tt n o s n . s p h I a l r e a n o e t d n e ts s . V c fo l e e r i s e a n s i r g e e l n d s F ^ r a e o U i n g - h " t trade. ways. ways. Bales HiU i Pounds Piculs Tons Tons Yen rilys (000). (000). (000). Bales. Piculs. Piculs. (000). (000). (000). (000). 19J3-. 126 16,857 2,302 113,374 132 2,075 2,923 11,723 1920. 151 53,111 14,557 2,264 74,839 528 2,216 4,548 27,589 1921. 151 149 44,538 58,477 21, S36 1,702 73,064 312 2,324 4,342 31,182 1921. September 149 136 45,559 59,450 22,563 1,632 36,996 101 2,328 4,286 30,580 October 159 145 45,969 53,535 24,006 1,253 53,506 218 2,491 4,625 34,960 November 168 170 45,658 48,832 29,189 1,855 53,484 290 2,611 4,610 31,729 December 178 169 48J781 44,766 37,250 1,857 68,032 371 2,713 4,922 32,520 1922. January 168 166 46.4S8 40,561 16,924 1,080 61,414 19,124 41,724 2,749 4,102 28,576 February 174 129 46,605 32,213 18,102 1,551 63,719 24,990 93,411 2,817 4,261 28,036 March 184 153 49,644 44,701 16,647 2,003 123,605 24,194 64,865 637 3,094 5,066 36,337 A M p a r y il 1 1 3 9 4 1 1 1 1 6 0 0 5 5 2 3 , , 6 9 8 7 7 5 4 1 0 8 , , 7 2 7 9 7 3 2 35 7 , , 1 3 4 8 7 0 1 1, , 9 6 7 6 7 9 1 1 3 4 8 6 , , 2 3 2 5 6 4 2 25 4 , , 8 7 2 2 1 5 2 7 4 6 , , 7 4 5 1 3 6 582 2 3 , ,2 9 8 71 7 4 5, , 2 9 2 6 5 8 3 4 8 2 , , 4 0 8 7 6 4 June 192 173 52,791 18,547 29,569 2,176 139,057 29,713 68,415 890 3,024 4,965 32,180 July , m 159 53,734 45,848 34,541 1,793 51,660 25,284 37,431 872 2,987 4,641 32,977 August 116 54,553 56,032 36,196 2,017 40,075 22,343 29,936 697 3,119 4,489 33,944 September 179 121 53,326 48,810 35,959 1,686 68,773 17,668 17,559 351 2,849 4,502 32,464 179 1 One hUri equals two pieces. 2 A picul varies from 133 to 140 pounds avoirdupois. FOREIGN TRADE OF PRINCIPAL COUNTRIES. In the following tables are presented figures from official sources showing the monthly value of the foreign trade of a group of European countries, Canada, Brazil, India, Japan, and the United States. FOREIGN TRADE OF UNITED KINGDOM. [In thousands of pounds sterling.] Total Year and month. to d F b a r o a i n o n c d d k co , , .u f r a m a n i m c a r R m a t t l a i u s a i c a n t r w a l e n e l e n - y u d s d - .f A a m w m c r h a t a t o u i i o n c r n r l e u l l l e d y y - s . l i a M p n p n a i c i o e n r s l s c o c g u t e e u d . l l s - - , Total. to d F b r a o i a n n o c d d k c , , o.u f r a m a n i m c a r R m a t t l i a s u a i c a n t w r a l e n e l e n - y u d s d .f A a m w m c r a h t a t o u i i o n c r n r l u l e l l e y y - d s . l i M a p n p n a i c i o e n r s l o c s c u g t e e u d . l l s - - , Total. p R o e r e t x s - . e p r x a e o p n e r o d x ts r - . t! Monthly average: I 1913 1 24,181 23,485 16,134 259 64,061 2,716 5,825 34,281 949 43,770 9,131 52,901 1920 63,817 59,196 37,787 254 161,387 4,245 12,126 93,313 1,523 111,206 18,563 129,769 1921 47,271 22,598 20,421 268 90,557 3,122 5,297 49,055 1,126 58,600 8,921 67,521 1921. November. 41,241 29,946 17,913 154 89,259 3,586 7,046 51,094 1,169 62,895 9,823 72,718 December.. 39,063 27,792 18,291 165 85,312 3,187 7,4*0 47,364 1,378 59,375 9,204 68,579 1922. I January 33,972 24,565 17,710 241 76,488 2,861 7,032 51,824 1,429 83,147 8,459 71,608 February.. 32,257 20,220 16,576 322 69,375 2,754 6,869 48,000 712 58,335 10,174 68,509 March 45,261 22,095 20,309 215 87,879 3,270 8,465 51,760 1,085 64,581 10,154 74,735 April 40,097 21,401 18,962 199 80,661 3,011 7,376 44,336 785 55,508 9,200 64,708 May 43,075 25,358 20,207 176 88,814 3,045 8,757 45,073 1,171 53,045 8,965 67,018 June 39,936 25,242 18,857 263 84,298 3,044 7,671 40,556 875 52,146 8,720 60,866 July 38,817 24,237 18,579 151 81,784 2,806 8,041 48,455 1,117 60,419 8,317 98,738 August 37.762 24,141 20,326 432 82,661 3,105 8,900 47,149 878 60,032 7,504 67,536 September. 35,555 21,848 19,244 296 76,944 3,154 10,099 48,361 897 62,511 6,381 68,89J October .... 38,617 26,409 19,726 262 85,015 3,066 9,211 47,010 1,112 60,399 8,277 68,678 November.. 45,501 30,223 19,587 95,600 3,407 10,101 51,964 1,018 66,491 9,148 75,639 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

90 FEDERAL RESERVE BULLETIN. JANOABY, 1923. FOREIGN TRADE OF FRANCE.1 In thousands of francs. In thousands of francs. In In Year and month. thou- thou- Food. m r R i a a a t l w s e . - M a t r a u t n i r c u e l f d e a s c . - Total. s 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 s e . - 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. s m a t n o e d n tr s s i . c of Monthly average: 1913 151,465 412,144 138,169 701,778 3,685 154,841 301,421 47,182 573,S51 l,S40 1920 v 989,576 2,096,379 1,072,787 4,158,741 4,211 217,733 509,485 1,413,548 100,479 2,241,245 1,071 1921 •517,15S 1,033,170 412,045 1,962,373 3,165 161,031 463,219 1,067,413 104,430 1,796,092 1,333 1921 .* November 564,012 1,446,125 323,593 2,333,730 5,161 157,180 478,875 992,256 120,343 1,748,654 1,516 December 754,671 1,856,148 543,445 3,154,264 5,197 259,605 549,495 1,193,181 180,059 2,182,320 2,507 1922.» J»nuary 352,572 887,253 247,827 1,487,652 121,526 458,460 994,852 63,903 ,638,741 1,564 February 385,021 1,137,855 324,160 1,847,026 4,126 153,892 448,455 1,106,507 144,458 ,853,312 1,520 Mfacrch:::::::::: 4 4 6 3 0 8 , , 7 0 6 0 5 0 1,0 9 0 8 5 3 , , 4 0 6 0 3 0 3 4 2 6 3 5 , , 0 7 0 3 0 7 1 1, , 7 9 4 3 3 1 , , 6 9 4 6 0 5 4 3, , 7 4 8 3 7 4 1 13 3 6 0 , , 0 5 0 9 0 5 4 4 5 6 6 1 , ,0 9 0 3 0 0 1 1 , , 1 2 8 3 9 1 , , 7 00 1 0 2 1 9 3 9 4 , , 4 0 3 0 1 0 , , 9 8 6 7 2 6 , , 9 6 9 8 7 8 1 1 , , 5 79 7 4 0 504,000 996,000 310,000 1,810,125 4,396 132,000 498,000 1,127,000 111,000 ,886,964 1,538 June* 483,356 1,082,371 285,448 1,851,184 4,307 1,799 July 476,813 1,200,764 318,169 1,995,746 4,223 113,435 374,959 885,029 59,619 ,433,042 1,93* August 510,597 1,096,903 352,229 1,959,729 4,512 179,407 408,005 931,066 157,836 ,676,000 1.788 September 473,000 1,087,000 333,000 1,893,000 4,138 141,000 477,000 1,055,000 68,000 ,741,000 2,616 October 570,000 1,190,000 349,000 2,109,000 4,543 195,000 494,000 1,099,000 149,000 1,937,000 2,034 November 517,000 1,478,000 353,000 2,348,000 4,577 196,000 537,000 856,000 117,000 1,706,000 2.0S4 1 Not including reexport trade. ' Imports calculated on basis of actual declared value. ' Calculated on 1919 value units. ' Value of exports not available. Beginning with June, exports calculated on 1921 value units. FOREIGN TRADE OF GERMANY. IMPORTS.' EXTOBTS.' Merchandise. Merchandise. Year and month. Gold and Gold and silver (In silver (In t o h f o m u a sa r n k d s) s . In of m m i a ll r i k on s. s m I e s n a tr n i t d c h s o t o o u n f - s t o h f o m u a sa r n k d s) s . In of m m i a ll r i k on s. s m I e s n a tr n t i d c h s o t o u o n f - s. Monthly average: 1913 36,653 890 6,073 8,450 841 6,141 1920 1,570 17,773 5,776 1,651 1921' 17,756 2,194 34,901 8,295 1,716 1921. October 60,693 13,814 3,0*5 30,013 9,681 1,973 November., 5,312 12,273 2,535 44,073 11,886 1,908 December.. 4,922 13,702 2,086 86,227 14,468 1,930 1922. January 132,336 12,641 2,309 134,054 14,394 2,027 February... 46,409 12,001 1,475 57,425 14,482 1,747 March 7,566 22,919 2,645 46,898 21,285 2,153 April 12,315 28,266 2,889 51,451 22,948 2,176 May 31,910 32,4] 7 3,810 75,844 27,080 2,093 June 18,018 34,364 4,029 109,298 30,232 1,880 July 37,215 45,748 4,798 124,178 36,708 1,636 August 39,445 56,472 4,676 152,906 60,295 1,407 September. 131,409 «422 4,829 297,335 <291 1,587 October 99,050 «532 5,552 296,609 «290 1,539 November.. <536 4,551 •255 1,551 1 Not Including philanthropic gifts. * Average for 8 months. Figures covering first 4 months of 1921 are not available. ' Not including deliveries on reparations account. (In gold marks. NOTE.—Currencies have not been converted to a common unit, nor are methods of valuation the same in all countries. In England, Sweden, India, Japan, and Brazil imports are given c. i. f. values; exports and reexports current f. o. b. values. In France and Germany the value of foreign trade is estimated not in terms of current prices, but in terms of those of some earlier period, usually the preceding year. Danish imports and exports are official valuations determined annually by the Central Bureau of Statistics. In the Netherlands imports are given in declared values for about 110 articles of the import schedule. In other cases official valuations are applied to both imports and exports. Canadian imports and exports are quoted at the fair market value, at the point of origin. In the United States imports represent either actual foreign market value or the export value, including any export tax imposed by the country of exportation, whichever is higher; exports are expressed in terms of their value at the time of exportation, with the exception of reexports from bonded warehouses, which are expressed in their import value. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

JANUARY, 1923. FEDERAL, RESERVE BULLETIN. 91 FOREIGN TRADE OF DENMARK, NETHERLANDS, SWEDEN, CANADA, BRAZIL, INDIA, AND JAPAN. Denmark. Netherlands. Sweden. Canada. Brazil. India. Japan. (In millions of (In millions of (In millions of (In millions of (In millions of (In minions of (In millions of kroner.) guilders.) kronor.) dollars.) milreis.) rupees.) yen.) Year and month. Im- Ex- Im- Ex- Im- Ex- Im- Ex- Im- Ex- Im- Ex- Im- Exports. ports. ports. ports. ports. ports. ports. ports. ports. ports. ports. ports. ports. ports. Monthly average: m 1913 71 60 71 68 56 31 84 82 134 205 61 53 1 1 9 9 2 2 0 1 2 1 6 3 2 6 1 1 5 2 1 1 % 1 « 87 114124 2 1 8 0 1 6 1 9 9 1 1 1 8 0 9 3 1 1 0 0 7 1 1 1 7 4 4 1 1 1 4 4 6 2 2 1 8 7 0 3 2 21 7 4 2 1 1 9 3 5 5 1 1 6 0 2 4 1921. September.. 137 124 197 136 126 105 63 60 101 1S3 197 200 129 96 October 143 113 179 115 101 99 60 81 112 166 235 182 130 112 November 143 102 178 107 95 103 64 88 96 155 264 199 152 121 December 155 107 180 97 112 108 60 87 113 175 232 218 161 146 1922. January 102 80 152 86 77 61 51 47 92 199 276 230 179 87 February 70 76 153 86 49 38 54 47 101 161 189 222 198 101 March 103 100 180 113 109 71 79 61 131 172 215 277 208 115 April 126 76 167 93 102 60 48 33 127 187 178 239 185 129 May 159 108 194 108 97 90 66 70 127 141 191 273 169 154 June 140 125 151 101 93 104 62 73 129 149 164 192 157 146 July 117 101 164 105 83 113 61 72 109 154 182 244 142 144 August 134 90 179 100 105 132 67 74 147 1S2 212 252 137 146 September 134 121 165 128 109 123 60 73 133 202 182 216 135 150 October 118 112 187 124 118 122 67 104 235 182 105 161 1 Italian yearly figures for 1921 based on average for six months only. 1 Dutch figures for 1913 not comparable with later figures. FOREIGN TRADE OF UNITED STATES. [In thousands of dollars.] IMPORTS. Merchandise. Merchandise. Year and month. Gold. Silver. f C m m u a r i s n r f c i a a e o a u g t n t r u . l d i e s u n r e - - - c c F s m f t o a a r t o o i u i u n n n a o n o o f d d d i l n f d d - s e i s - . - w p m t F s u a f t h o a u a r o r o o e n c f t r l f l d - d u l y s y - . - f f m M u u t a i f u s r c f n a a a e t o r t c h n g n e u r - i e . u s u r n r - - - s M r t t u c e f u i f a o a m a o o r c n d n e n r - p - y s u . - - c T d m h i o s a e t e n r a . - - l ! Gold. Silver. f C m m u a r i s r c i f n a a e a o u t n g t u l r d e s i . u r n e - - - c c F s m f o t a a r t o o i i u u n n n a o n o o f d d d i l n d f d - s e i s - . - w p m t F s u a f t h o a u a r o r o o e c n f t r l f l d - d u l y s y - . - f f u m M u a t i s f u r c f a n a a e t o t r n h c g n u e r - i e . u u s r n r - - - s M r t t u c f e u i f a a o m o o a r c n n - r d e n p - u s y . - - c d T m h i o s a e e t n r a . - - * l Monthly average: 5,309 2, 50,,414 18,399 16,529 28,351 34,453 149,383 7,650 5,231 64,072 14,132 27,069 33,077 64,998 207,002 1920'.'.'.'.'.'.'.'.'.'.'.'.'.34,756 7,3381.4465,,9951488,,113366103,178 66,871 73,060 439,873 26,841 9,46815555,897 76,499 93,050 79,875 267,071 685,068 1921 57,606 5270 71,090 2—5, 3—31 30 737 28,669 51,877 209,085 1,991 1,298 82,002 57,681 55,809 33,323 135,450 373,760 1921. November 51,860 5,912 70,039 29,338 26,205 30,398 53,365 211,027 607 4,804 88,545 30,052 41,449 33,260 95,538 294,437 December 31,685 5,516 94,016 32,707 25,473 32,083 51,171 237,373 2,162 7,145 89,950 28,737 38,282 35,145 98,370 296,306 1922. January 26,571 6,496 82,639 27,498 25,900 30,272 49,811 217,185 3,977 72,838 31,054 43,019 35,143 91,810 278,898 February 28,701 4,771 80,971 22,370 27,762 34,041 49,375 215,743 1,732 7,092 55,895 27,799 45,164 32,193 84,684 250,748 March 33,488 6,953 86,910 28,756 36,014 42,820 59,880 256,178 963 4,302 73,001 34,507 58,899 43,632 112,765 330,267 April 12,244 4,800 69,804 25,711 32 482 37,252 50,820 217,023 1,579 5,109 79,511 31,174 47,372 37,969 113,876 318,100 May 8,994 5,512 88,088 31,264 34,785 39,398 58,254 252,817 3,407 5,677 64,441 34,143 50,376 40,467 112,112 307.689 June 12,969 6,346 91,146 26,170 37,346 46,471 58,439 260,461 1,601 6,004 70,219 41,000 55,485 39,086 121,284 334,684 July 42,987 6,957 87,298 27,596 38,511 48,398 49,164 251,772 645 6,289 60,024 41,958 49,226 35,676 109,544 301,311 August 19,092 4,944 H11o0i,285 22,489 42,404 48,130 55,858 281,376 956 3,861 47,872 61,339 46,071 35,708 104,871 301,804 September' 24,464 6,370 86,818 18,769 24,023 41,026 51,038 '298,000 1,399 3,735 66,619 55,142 43,231 35,666 106,542 313,092 October* 20,866 3,940 319,000 17,592 3,26913~3V;03 40,798 17,919 32,943 110,177 370,720 November* 18,308 5,855 3,431 6,599144,329 33,615 51,471 33,593 110,532 380,053 1 Including miscellaneous merchandise imported. 1 Including miscellaneous and foreign merchandise exported. 'Imports under old tariff law September 1-21,1922, only. 'Import figures delayed owing to change in tariff. s Complete September figure. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

92 FEDERAL RESEKVE BULLETIN. JANUARY, 1923. FOREIGN TRADE INDEX. Among raw materials there was a decline in the exports of wheat of 42 per cent and in There are presented below the usual indexes leaf tobacco of 32 per cent. Corn, oats, and designed to reflect the movements in foreign barley also showed decreases. Cotton exports trade of the United States, with the fluctua- continued to increase. tions due to price changes eliminated. Delay The rise in the producers' goods index was in receiving import figures, due to the new caused by increases in the exports of steel and tariff provisions, makes it necessary to omit copper products, and of cottonseed oil. the index of import trade in October and Exports of refined sugar continued to fall. November. The November figure was 8,707,000 pounds in contrast to 368,000,000 pounds in June, INDEX OF VALUE OF FOREIGN TRADE IN SELECTED 1922. Other commodities which fell are cotton COMMODITIES AT 1913 PRICES.i cloths, boots and shoes, lard, and illuminating [Monthly average values, 1913-100.1 oil. Exports. Imports. SAVINGS DEPOSITS. m R ri a a a t l w e s - d P e u r r o s c - - s C e u o r m s n ' - - T ( o 2 t 9 al m R ri a a a t w l e s - d P e u r r o s c ' - - s C e u o r m s n - - T ( o 2 t 7 al 1,1 C 9 o 2 m 2 p , w ar i i t s h o n d e o p f o s s a it v s i n o g n s N d o e v p e o m si b ts e r o n 1 ,1 D 9 e 2 c 2 e , m a b n e d r (12 goods goods com- (10 goods goods com- December 1, 1921, are shown for 885 banks discom-' (10 modi- com- (12 (5 modimodi- com- com- ties). modi- com- com- ties). tributed throughout all sections of the United modi- modi- modi- modities). ties). ties). ties). ties). ties). States. The figures for the Boston and New York districts are those of large mutual savings 1913, year.. 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 banks, but in all other districts reports of other 1919, year.. 88.9 155.1 183.6 115.3 157.5 192.9 147.5 168.4 1920, year.. 92.2 158.7 133.6 107.5 135. 8 227.5 138.8 168.8 banks are included to make the figures thor- 1921, year.. 103.1 116.9 1241 108.9 113.6 162.8 141.4 135.6 oughly representative. In all districts where 1921. reporting commercial banks subdivide their January 105.2 208.0 126.2 120.2 74.5 130.9 123.9 102.6 time deposits, statistics of sayings deposits sub- February.. 91.0 162.4 119.4 104.1 118.2 143.7 135.4 130.1 March 78.2 135.1 120.2 92.7 160.6 177.2 178.9 169.5 ject to notice (excluding time certificates of April 76.5 132.5 116.4 90.5 153.3 177.6 185.1 167.1 May 97.6 96.4 110.8 100.3 98.7 150.0 162.1 127.2 deposit) are used. This is in accordance with June 107.9 94.2 132.2 111.5 94.5 152.3 130.4 120.8 July 111.6 78.6 133.8 112.9 99.3 126.6 121.4 112.6 the definition given in the Federal Reserve August 142.7 99.6 160.7 142.1 116.8 165.1 129.8 136.0 Board's Regulation D, series of 1920. September. 115.7 89.7 142.3 118.6 102.8 137.7 99.3 114.6 October 121.7 107.0 113.2 118.4 96.1 173.5 116.5 126.9 Volume of savings increased during Novem- November. 95.1 100.2 106.2 98.1 115.1 199.4 149.2 150.6 December.. 93.8 96.0 107.8 96.9 133.0 219.1 164.8 168.7 ber in all Federal reserve districts except No. 1922. 3 (Philadelphia) and No. 5 (Richmond). The January 82.6 104.3 129.7 94.5 118.4 228.7 135.2 160.1 most important gain was registered in district February.. 68.5 86.0 127.6 82.6 123.3 281.3 133.5 183.4 March 89. S 121.7 156.5 106.9 148.1 306.8 161.1 206.5 No. 8 (St. Louis) and amounted to 2.1 per cent. April. ... 90.5 120.9 150.5 106.0 125.5 236.1 152.0 169.1 May 78.3 128.8 155 4 99.4 144.6 227 9 168 0 177.9 During the year ending December 1, the volume June 86.3 124.3 169.2 107.4 148.7 273.3 137.3 191.0 of savings deposits increased in all Federal re- July 79.1 124.0 133.5 95.0 146.9 266.3 137.5 187.7 August 88.8 90.0 126.3 96.7 174 2 255.5 120.3 194.2 serve districts, increases ranging from 2.3 per S O e c p to te b m er ber. 1 9 2 1 2 . . 2 9 9 9 8 6 . . 9 8 1 12 1 1 1 . . 0 5 1 9 1 6 9 . . 2 8 143.3 182.7 90.6 148.6 cent in district No. 3 (Philadelphia) to 14.3 per November. 112.6 101.6 117.2 112.4 cent in district No. 11 (Dallas). 1 The list includes 27 of the most important imports the value of which in 1913 formed 49.3 per cent of the total import values, and 29 of the most SAVINGS DEPOSITS. important exports the value of which in 1913 formed 56.3 per cent of the total export val ues. The classification of the original list of commodities [000 omitted.] used was given in the July, 1920, BULLETIN. The classification of 11 additional commodities of imports was given in the April, 1921, BULLE- T E I x N p , o a r n ts d o 2 f a g d as d o it li i n o e n a h l a v co e m be m e o n d a it l i t e e s re i d n to th i e n c N lu o d v e e m na b p er h , t h 1 a 9 . 21, BULLETIN. District. o N f u b m an b k e s r . Dec 1,1922. Nov. 1,1922. Dec 1,1921. The index of the volume of exports for Boston 64 1,116,546 1,114,412 1,061,106 New York 30 1.746,127 1,741,543 1,656,392 November showed a decrease of 8 points or Philadelphia 80 419,046 419,573 409,464 6 per cent from the October figure. Notwith- C R l i e c v h e m la o n n d d 9 1 3 8 3 2 9 7 3 6 , , 2 9 1 3 4 6 3 27 8 8 9 , , 0 0 7 1 7 3 3 2 7 4 7 9 , , 1 3 6 0 6 0 standing this decrease, the November level of Atlanta 79 157,669 157,417 146,935 Chicago 219 805,640 795,280 770,989 112.4 is still higher than in*any other month of St. Louis 35 120,589 118,058 106,551 1922 with the exception of October. The Minneapolis 15 81,246 80,891 76,168 Kansas City 61 95,439 93,662 85,517 export volume of raw materials and consumers' Dallas 116 73,196 72,743 64,023 San Francisco 75 796,128 789,559 712,653 goods decreased, while that of producers' goods increased. Total 885 6,081,776 6,050,228 5,716,264 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

93 JANUARY, 1923. FEDERAL RESERVE BTTT.T.KTTTT. are derived from the actual rates quoted on REPORT OF ASSOCIATED KNIT UNDERthe following commodities: Grain, provisions, WEAR MANUFACTURERS OF AMERICA. cotton, cottonseed oil, and sack flour. For The total production of winter and summer the methods used in constructing the index underwear for November is compared with see the August, 1921, BULLETIN, pages 931-934. previous months in the following table: RELATIVE OCEAN FREIGHT RATES IN UNITED STATES AND EUROPE TRADE. Number Actual of report-production [January, 1920, rates-100.] ing mills. (in dozens). United States Atlantic ports to— 1922. June 564,893 J S A O u e u c l p t y g o te u b m s e t r ber 4 5 5 52 2 1 1 4 2 3 9 , , , , 4 8 5 5 8 7 7 1 6 2 2 1 Month. U K d n o i i n m t g e . d - A F t r la e n n t c i h c. l B N e la e a lg n t n h i d u d e s m r - .! j S n c a a v n l d a i . - Medl- Eu A ro ll pe. November 599,891 Winter underwear (November). 321,944 Summer underwear (November) 277,947 1921. January 60.7 30.2 34.1 42.9 43.2 43.3 February 54.7 27.7 i 29.2 30.9 43.8 38.5 Order and production report for the month A M p a r r i c l h 5 4 0 9 . . 1 3 3 24 2 . . 6 e i 2 36 8 . . 6 3 2 3 9 0 . . 4 8 3 4 5 2 . . 7 2 3 3 9 5. . 9 0 ended November 30, 1922, follows. The num- May 50.6 35.0 38.2 31.3 34.6 40.1 June 42.7 34.7 I 38.3 31.3 34.0 37.6 ber of reporting mills was 41. July 42.5 33.2 I 37.0 29.0 34.7 36.8 August 42.9 33.4 ' 36.7 28.4 34.3 36.7 September 41.8 32.7 35.8 28.2 33.6 36.0 Unfilled orders first of month 1,193,149 October 37.0 28.5 30.7 26.7 33.3 32.3 November ! 33.5 25.0 25.2 24.0 32.9 28.8 December i 32.4 22.7 22.9 23.3 32.3 27.2 New orders received during month 632,824 1922. i Total (A) 1, 825, 973 January '> 31.7 22.7 23.3 23.4 32.2 27.1 February ! 34.7 25.7 25.2 23.3 31.8 29.1 March 33.1 26.5 24.9 23.4 30.1 28.3 Shipments during month 391, 920 April j 27.3 24.8 22.7 j 24.0 27.1 25.4 May 27.9 25.5 22.8 ' 23.4 27.4 25.7 June ; 27.5 26.1 23.0 23.4 27.4 25.7 Cancellations during month 9, 022 July ! 28.8 25.9 22.6 23.0 26.4 25.9 August j 29.2 23.4 20.7 22.4 ! 24.0 24.6 Total (B) 400, 942 September \ 27.0 24.1 19.1 22.6 22.2 i 23.4 October 25.3 23.9 18.9 22.9 21.6 ' 22.7 November i 28.0 23.4 21.3 i 22.9 21.3 24.0 Balance orders on hand Dec. 1 (A-B) 1, 425, 031 December j 27.1 25.6 22.2 22.7 21.8 24.4 Production 461, 275 Thirty-three representative mills which reported for October and November, 1922, fur- COMMERCIAL FAILURES DURING NOnish the data for the following table: VEMBER. [In dozens.] ! October. ! November.! Gain. Loss. Nuniber. Liabilities. District. Unfilled orders end of 1922 1921 1922 1921 month 1,127,190 1,351,480 , 224,290 Neworders 591,962 i 569,630 I .....j 22,332 C Sh an ip c m el e la n t t i s o ns 30 5 8 , , 5 3 5 6 2 3 33 7 7 , , 6 6 9 5 0 0 : i 29 2 , , 2 1 87 38 First 3 1 1 4 4 9 3 1 6 3 8 2 $ 9 2 , , 5 6 4 5 8 2 , , 9 7 1 0 0 1 $2 7 ,6 3 7 0 2 2 , 7 1 3 6 2 7 Production 359,752 408,955 49,203 ' Third 81 102 2,945,345 2,944,372 Fourth 122 141 6,395,906 10,689 437 Fifth 121 143 2,938,562 3,825,412 Sixth 122 204 1,928,165 3,711,252 INDEX OF OCEAN FREIGHT RATES. Seventh. 236 238 5,928,921 7,651 665 Eighth 120 98 2,060,085 2,028,340 The accompanying table shows the monthly N Te in n t t h h 8 7 2 4 1 1 2 0 0 0 1,2 7 7 5 0 3 , 8 9 0 8 5 4 3 2 ,4 3 1 7 3 3 , 5 7 0 0 4 0 fluctuations in ocean freight rates prevailing Eleventh . . 83 145 1,361,108 3,484,803 Twelfth 203 197 2,480,805 3,372,455 between United States Atlantic ports and the Total 1,737 1,988 40,265,297 53,469,839 principal European trade regions. The figures Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

94 FEDEKAL EESERVE BULLETIN. JANUART, 1923. PRODUCTION AND SHIPMENTS OF FINISHED COTTON FABRICS. October, 1922. November, 1922. White Dyed Printed Total. White Dyed Printed Total. goods. goods. goods. goods. goods. goods. Total finished yards billed during month: 15,247,370 26,386,804 9,937,645 54,814,665 14,758,940 26,833,193 9,618,701 54,441,296 2 7,802,232 1 659,723 2,814,996 18,357,176 6,554,248 1,520,420 3,808,807 19,253,733 3 9 011 504 7 122 887 16 134,391 8 977 857 7 855 607 16,833,464 8,920,714 38,649 8,959,363 9,103,398 88,065 9,191,463 680 905 680,905 512,534 512,534 8 .... 2,196,519 2,665,253 Total 41,662,725 35,208,063 12,752,611 101,143,019 39,906,977 36,297,285 13,427,508 102,897,743 Total average percentage of capacity operated: District 1 68 90 52 71 65 92 52 71 80 45 50 67 68 63 59 74 3 116 86 101 121 94 107 5 77 77 89 89 6 0 0 39 39 8 86 105 Average for all districts 78 83 52 74 78 88 54 78 Total gray yardage of finishing orders received: District 1 ... 14,728,539 31,259,713 10,053,009 60,173,279 13,339,949 29,678,591 11,633,667 58,289,242 2 7,570,026 5, 207,358 4,215,681 22,376,961 5,966,758 5,510,828 5,005,189 22,239,283 it 10,753, 713 8,358,734 19,112,147 10,535,027 8,512,164 19,047,191 5 9,310,930 110,353 9,421,283 7,974,982 195,484 8,170,466 6 000 000 000 000 8 2,529,315 2,465,306 Total 42,363,208 44,936,158 14,278,690 113,612,985 37,816,716 43,897,067 16,638,856 110,211,488 Number of cases of finished goods shipped to customers (case equals approximately 3,000 yards): District 1 6,288 0,942 2,729 29,408 5,871 8,819 2,647 29,555 2 4 192 373 10 091 4 411 412 11 915 3 5,148 2,584 7,732 5! 623 3,040 8,563 5 2,154 4,530 2,003 4,328 6 000 000 000 000 8 499 425 . Total 17,782 9,899 2,729 52,260 17,908 12,271 2,647 54,786 Number of cases of finished goods held in storage at end of month: District 1 . 5,031 5,312 2,283 22,019 4,982 5,000 2,061 22,216 2 5 402 517 13,553 5,020 481 14,614 3 . . 347 444 7,813 694 405 7,969 5 000 1 297 000 951 6 000 'ooo 000 000 8 219 228 Total 10,780 6,273 2,283 44,910 10,696 5,886 2,061 45,969 Total average work ahead at end of month _ (expressed in days): District 2 1 1 4 3 .8 1 5 6 .2 1 8 7 .9 1 9 2 .9 3.4 IS 7.5 2 1 1 1 1 1 3 1 3 17 19 18 21 19 5 14 14 8.9 8.9 6 0 0 0 0 8 11 8.2 Average for all districts 9.7 15 15 12 7.7 17 19 13 1 The National Association of Finishers of Cotton Fabrics at the request of the Federal Eeserve Board have arranged for a monthly survey within 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: The accompanying figures are compiled from statistics furnished by 32 out of 57 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, 70 per cent; dyed 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

95 JANUARY, 1923. FEDERAL BESERVE BUIXETIN. PHYSICAL VOLUME OF TRADE. The general indexes of business were unusu- than for any month since October, 1920. The ally high in November considering the season unfilled orders of the United States Steel Corof the year. Mining output continued to ex- poration showed a loss of 62,045 tons, which is pand, while there was a seasonal decline in the first decrease in their volume since Februagricultural movements. Manufacturing ary. Tin consumption and copper and silver showed great activity, although the total out- production declined during the month, while put was smaller in some lines than in October, zinc and lead production increased. Bitumion account of the less number of working days. nous coal production expanded moderately, Receipts of all grains at 17 interior centers while anthracite output was practically unwere considerably larger than last November. changed. Both by-product and beehive coke Eeceipts of cattle and calves, sheep, horses, registered substantial gains. and mules at 59 markets declined during No- Cotton consumption continued to increase vember, but there was a marked increase in during November, and the total of 577,561 receipts of hogs. Slaughter of hogs under bales is larger than in any month since January, Federal inspection increased to a total higher 1920. Silk consumption, while not as large as than for any November since 1916. Wheat in October, was exceptionally high. Lumber flour production dropped slightly below the cut by 572 mills reporting to the National Lumhigh peak for October, but remained at a figure ber Manufacturers' Association decreased dur- 132 per cent of the corresponding month last ing November but shipments show a moderate year. Sight receipts and port receipts of cot- increase. A total of 159 locomotives was comton were smaller than in October, but American pleted during November, which is the largest spinners' takings showed a considerable in- number for any month since April, 1921. crease. Railroad car loadings decreased in all operat- Production of steel ingots in November ing regions, the largest reductions being in reached 2,889,207 tons, an increase of almost shipments of ore and of less than carload mer- 17,000 tons over October and a larger total chandise. INDEX NUMBERS OF DOMESTIC BUSINESS 1919 ~ 1922 PER CENT CENT 140 l\ 1«) A 130 /I 130 A V \ 120 i ft A r /, f 120 \ 110 1 t \ i\ M 110 1.A 100 \r \ i • 100 •••'1 *. 1 so \: V j 3v2 \'-•?9 V \ \/ •**'' It 90 80 (/ v l/V i 80 70 V i V '//•'• 70 60 Y 60 50 50 40 40 AGRICULTURE •30 •itlNING 30 IMANUFACTURE 20 20 10 . . ! . . 10 J. F. M. A. M. J. 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. 0. N. D. J. F. M. A. M. J. J. A. S. 0. N. D. 1919 1920 1921 1922 4 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

96 FEDERAL RESERVE BULLETIN. JANUARY, 1923. INDEXES OP DOMESTIC BUSINESS. COMMODITY MOVEMENTS. [Monthly average of 1919=100.] AGRICULTURAL MOVEMENTS. Per cent of average same Date. ag T tu r o i r c t e a u .1 l l- T m a o n a t i l - a s l . g T ra o i t n a s l . Cotton. Fruit. b L a t c e o c a - f o. N 1 o 92 v 2 . . , O 1 c 9 t 22 . . , N 19 o 2 v 1. ., mon 1 t 9 h 2 , 1 1 . 919- Nov., Oct. Nov., 1921. 1922. 1922. 1921. May 73.6 77.3 71.7 67.4 139.0 8.9 June 82.2 81.9 96.0 57.8 183.3 4.1 GBAIN AND FLOOR. J A S O N D u e c u o e l p t y g c v o t e u e b e m s m e m t r b b b e e e r r r . . . . . . . . 1 1 1 1 9 9 0 3 1 1 3 3 4 0 6 5 . . . . . . 9 4 6 9 7 3 1 6 9 8 8 8 0 8 2 9 5 5 7 . . . . . . 0 1 2 4 9 0 1 1 1 1 6 7 5 5 9 2 9 5 1 1 5 1 . . . . . . 0 9 3 6 5 3 1 1 1 1 5 5 3 6 1 9 6 2 3 3 4 5 . . . . . . 0 7 4 2 7 3 1 7 6 8 3 8 2 9 9 3 6 4 3 . . . . . . 9 6 9 4 7 8 1 1 1 5 7 1 1 0 8 4 9 2 7 7 8 . . . . . . 7 3 1 0 6 5 Re (0 c 0 e C W R O i 0 p o y a h t o r e t s e n s m ( a a ( ( b t b b t i u t u u 1 ( t . e b 7 . ) . ) ) d u in ) .) : terior ' c . enters 4 2 2 7 3 3 4 , , , , 7 7 0 8 6 7 2 3 1 9 2 2 4 3 2 7 2 5 8 , , , , 0 9 8 5 9 8 6 7 3 7 7 7 2 1 1 1 5 1 7 , , , , 9 6 6 4 8 9 9 7 7 4 8 2 1 7 7 7 2 7 9 2 1 1922. Barley (bu.) 4,104 4,607 2,102 51 January 88.9 91.8 83.8 76.8 96.1 113.2 February... 77.7 76.5 92.3 43.3 55.5 101.2 Total grain (bu.). 103,498 119,131 58,953 85 March 70.7 79.2 73.0 42.8 130.4 27.5 Flour (bbls.) 3, 305 ' 3,337 3,134 108 April 57.4 71.8 49.6 37.0 103.0 5.5 May 82.6 90.2 92.5 50.1 105.7 3.9 Total grain and flour June 75.1 88.7 77.1 43.0 93.8 1.5 (bu.) 118,372 134,149 73, 054 143 117 July 79.8 81.2 106.4 33.4 59.3 12.3 August 106.7 96.5 153.8 48.3 43.1 55.2 Shipments at 14 interior cen- September.. 128.8 106.6 150.6 139.5 38.0 83.9 ters (000 omitted): October 154.2 132.0 135.7 227.8 40.6 144.7 Wheat (bu.) 27,399 28,019 20,574 93 November.. 137.9 122.2 118.2 204.1 49.0 96.3 Corn (bu.) 13,166 22,062 12, 973 142 Oats(bu.) 18,655 17,186 9,873 82 > Combination of 14 independent series. Rye(bu.) 7,459 4,390 1,650 64 MINERAL PRODUCTS. Barley (bu.) 3,146 2,336 2,071 103 68 Total grain (bu.). 69,825 71,993 47,141 Date. T p u m e r c o r o i t a t n s d a l . - - l 1 t n c u B o o m i a u - l i s . - t c A c h o i r n t a a e l - - . C p le e r u t u r m d o e . - Iron. C p o e p r - . Zinc. Lead. Fl T ou o ( r t b a u ( l b .) b g l r s a . i ) n and flour 98 6 , , 9 47 42 1 9 5 7 , , 6 1 0 9 1 7 6 4 8 , , 6 25 9 2 1 140 119 97 Stocks at 11 interior centers 1921. at close of month (000 May 84.7 87.3 102.0 133.6 47.9 22.6 45.9 78.0 omitted): I June 83.9 88.7 105.9 128.4 41.8 18.1 49.5 74.6 Wheat (bu.) ' 19 796 20,716 27,917 82 July 76.7 79.6 95.9 128.1 33.9 16.6 39.4 72.4 Corn(bu.) j 4,854 5,153 8,105 189 August 82.8 90.5 97.9 130.2 37.4 19.9 37.2 87.8 Oats (bu.) ! 26,999 30,014 55, 368 172 September. 81.6 91.9 96.9 116.3 38.7 19.5 36.6 79.7 Rye(bu.) j 5,966 6,096 3,555 56 October 93.9 114.6 103.1 113.2 48.9 22.9 37.0 100.4 Barley (bu.) j 1326 1,755 1,959 105 November. 86.0 94.2 93.3 120.0 55.5 20.8 53.8 103.3 December.. 82.0 81.1 81.4 133.3 64.7 17.3 56.0 103.2 Total grain (bu.). 58,941 63,734 96,904 75 76 123 J M A M F a e p n a a b r r y u 1 i c r l 9 a h u 2 r a 2 y . ry.. 1 6 9 9 5 1 7 0 8 4 7 . . . . . 8 0 6 9 1 1 1 9 4 5 0 3 8 1 3 7 1 . . . . . 5 3 1 3 5 1 9 8 1 2 5 9 . . . . . 3 6 0 1 1 1 1 1 1 1 4 2 4 3 4 1 9 7 7 9 . . . . . 9 7 7 1 1 6 6 7 8 9 3 9 4 1 0 . . . . . 9 9 3 3 5 5 2 3 7 8 8 1 3 4 4 . . . . . 0 7 7 8 1 6 5 6 6 6 0 5 7 9 7 . . . . . 3 6 3 8 5 1 9 9 8 8 0 3 3 8 9 1 . . . . . 4 0 8 0 0 To o t m a W C O l i o t a h t r t v e e n s d i a ( ( s ) t b b i : b u ( u l b . . e ) ) u .) supply (000 3 3 1 7 2 2 , , , 1 9 8 2 4 4 8 6 0 3 3 1 7 5 0 , , , 4 4 4 6 3 1 4 6 0 1 1 3 8 3 , , 1 7 9 0 7 2 1 2 2 1 5 2 J J N A S O u u e o u c n l p t y v g e o t u e e b m s m e t r b b e e r r - . 1 1 6 6 9 7 1 2 5 7 0 9 8 0 . . . . . . 4 6 5 9 5 1 1 1 1 5 5 4 0 1 1 8 8 4 7 8 8 . . . . . . 4 3 5 3 6 3 1 1 6 1 1 1 2 1 7 6 4 . . . . . . 2 7 1 6 1 1 1 1 1 1 1 1 4 4 4 4 5 5 3 8 7 3 2 0 . . . . . . 8 0 1 8 1 1 1 1 9 9 7 7 1 0 2 4 1 9 1 3 . . . . . . 6 2 1 8 8 5 8 8 9 8 9 9 9 5 3 6 9 5 . . . . . . 0 0 9 7 8 5 1 1 8 7 7 8 0 0 1 9 2 4 1 2 . . . . . . 2 9 6 3 6 3 1 1 8 8 9 9 1 0 9 4 6 5 1 8 . . . . . . 4 7 1 3 6 3 Re (O ce C 0 W R O i 0 o p y a h r t e t o s n e s ( m a a ( b ( t b t b i u u 9 t ( u . t b . s ) . e ) ) u e d a . ) ) b : oard centers 3 4 5 2 7 , , , , 0 3 9 7 5 7 8 3 2 5 6 9 1 2 8 4 7 , , , , 9 9 7 7 0 1 3 9 9 7 8 2 2 3 1 3 , , , 9 1 3 9 9 0 3 7 0 2 0 3 7 5 6 1 1 Combination of 7 independent series. Barley (bu.) 2,002 4,430 2,204 115 PRODUCTION OF MANUFACTURED GOODS. Totai 52,154 31,599 118 115 Flour (bbls.) 2,267 1,955 1,859 79 Total Total grain and flour Date. m uf a ac n - - Steel.L b u e m r. - p P e a r - . P le e u tr m o- . t T il e e x s - . Le e a r t . h-Food. ba T c o c - o. (bu.) 62,357 47,585 39,962 164 114 105 ture.1 Stocks at 8 seaboard centers at close of month (000 1921. omitted): May 84.4 50.3 100.4 72.4 114.7 95.0 83.2 82.2 99.3 Wheat (bu.) 11,781 10,026 16,013 91 June.. 87.1 39.9 89.6 70.2 110.1 101.9 81.1 85.1 106.8 Corn (bu.) 3,515 2,620 1,101 126 July.. 80.1 31.9 85.3 65.6 108.3l 94.5 76.3 85.5 100.6 Oats (bu.)... 3,255 2,177 1,588 74 August 90.7 45.3 99.7 75.6 no. el103.4 85.7 98.5 117.2 Rye(bu.).... 3,006 2,170 2,161 122 S N D O e o c e p t c v o t 1 e e e 9 b m m m 2 e 2 r b b b . e e e r r r . . . . . 8 8 9 9 9 1 0 4 . . . . 5 2 6 3 6 4 6 5 6 6 6 4 . . . . 0 7 8 3 1 1 9 9 0 0 2 2 0 3 . . . . 2 9 6 1 9 9 7 9 4 5 8 0 . . . . 7 8 6 8 1 1 1 11 1 1 1 9 0 9 7 . . . . 6 2 7 1 1 1 1 9 0 0 0 9 0 4 5 . . . . 7 4 8 5 9 9 8 8 3 0 6 0 . . . . 0 9 2 3 9 9 8 8 9 5 2 9 . . . . 4 2 8 8 1 1 1 7 0 1 1 6 2 1 5 . . . . 8 9 6 8 W ( h b e B b a l a t s T r ., o l e t 0 y a f 0 l l 0 o ( g u b o r r u a m i . n ) i . t t p ( e b r d o u ) . d ) uction 2 1 2 4 3 , , , 8 4 4 8 3 2 1 8 4 1 1 2 9 3 , , , 6 6 5 3 3 8 8 1 1 2 1 3 3 0 , , 1 , 9 1 0 6 6 4 7 6 I 1 9 2 7 1 1 9 9 0 5 2 9 January 87.0 63.4 100.7 95.0 119.0 112.2 88.2 91.3 90.6 February... 80.2 69.3 95.4 90.0 108.6 96.8 78.1 88.5 83.8 LIVE STOCK. March 90.9 94.3 102.5 108.4 123.9 107.6 78.5 96.5 98.4 Receipts at 59 principal April 84.7 97.0 98.1 99.9 124.4 91.3 70.7 84.9 89.6 markets (head, 000 omit- May S8.1 107.8 121.1 112.3 132.2 108.9 70.4 96.8 108.1 ted): June 99.1 104.8 104.4 110.6 133.8 107.1 72.4 98.9 119.8 Cattle and calves 2,408 2,917 1,916 103 82 July 95.3 98.9 104.3 99.9 146.2 95.0 72.1 97.8 114.8 Hogs 4,397 3,657 3,666 117 9S August 104.6 88.1 116.2 110.7 141.2 115.7 80.4 104.5 134.1 Sheep 2,241 3,253 2,029 j 93 85 September. 100.3 94.4 101.5 107.8 139.1 110.7 79.5 97.8 121.6 Horses and mules (43 October 107.5 114.2 115.3 112.8 147.2 120.0 82.7 106.7 115.0 markets) 52 56 28 i 82 45 November..H09.3 118.9 112.9 113.4 125.0 79.1 114.0 112.4 Total. 7,639 107 114 i Combination of 34 independent series. ' Partly estimated. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

97 JANUABT, 192S. FEDERAL RESERVE BULLETIN. COMMODITY MOVEMENTS—Continued. COMMODITY. MOVEMENTS—Continued. Per cent of I Per cent of average same I average same month, 1919- J month, 1S19- Nov., I Oct., Nov., 1921. Nov., Oct., Nov., 1921. 1922. i 1922. 1922. 1922. 1921. Nov.JOet./Nov., INov.,Oct.,Nov. 1922. il922. 1921. J1922.1922.1921. LIVE STOCK—continued. OTHER AGRICULTURAL PEODUCTS. Shipments at 54 principal markets (head, 000 omit- Cottonseed (tons): ted): Received at mills :69G, 748|959,340 603,932 90 95 78 Cattle and calves 1,333 1,557 , 992 114 121 Crushed 1609,6791590,235 573,776 90 91 85 Hogs 1, 495 |1, 287 i 1, 290112 : 114 On hand at mills at close Sheep 1, 436 2,158 ! 1,077104 i 113 of month [857,734 1771,197 762,726' 121126 107 Horses and mules (43 Cottonseed oil (lbs., 000 t markets) 52 : 55 27 85 84 omitted): Production 183,522 [173,574 88 83 Total 4,315 5,058 3,386 109! 115 86 Stocks 115,247I 98,872 111,916 I 81 90 I 79 Oleomargarine consumption Receipts at 15 western mar- (lbs., 000 omitted) 19,806 j 16,180 17,565 I 69 57 i 61 kets (head, 000 omitted): Tobacco sales at loose-leaf Cattle and calves 1,773 2,240 1,394 102 j 119 warehouses (lbs., 000 omit- Hogs 2,982 2,394 2,560 114 ! 120 : ted): Sheep 1,383 1,952 1,244 85 ! 64 : Dark belt—Virginia ;,154 i 1,850 i 7,725 56 127 13S Horses and mules 34 39 19 88 I 93 Bright belt— , Virginia 13,477 19,153 22,730 107 Total.. 6,171 ! 6,624 5,217 I 105 j Ill North Carolina 35,465 61,578 73,207 108 South Carolina Shipments atl5 western mar- Burley 4,8 882 ! 3,595 kets (head, 000 omitted): Western dark : 1)279 316 5,090 259 Cattle and calves Sale of revenue stamps for Hogs manufacture of tobacco, [ Sheep excluding Porto Rico and Horses and mules Philippine Islands (000,000 ! omitted): Total i 2,724 j 3,120 2,177 Cigars (large) j 679 694 ! 615 105 95 Cigars (small) I 51 54 ! 53 92 96 Shipments of stockers and Cigarettes (small) ! 4,524 4,498 j 4,230 108 101 feeders from 34 markets Manufactured tobacco ' (head, 000 omitted): (lbs) 31 33 ' 28 116 ' 105 Cattle and calves Fruit shipments (carloads):1 Hogs Grapefruit 1,548 219 1,377 Sheep Oranges 314 496 588 Lemons 2,561 1,173 3,111 Total.. 2,017 | 1,032 j 109 i 112 Apples 29,303 13,903 35,117 . White potatoes, shipments Slaughter at principal centers (carloads) 19,547 33,711 16,729 j. under Federal inspection Sugar, 7 ports (long tons): (head, 000 omitted): Receipts 312,725 J221,485 275,755 Cattle Meltings 309,274 ! 280,003 268,283 Calves , Raw stock at close of Hogs month 69,185 i 94,043 82,253 Sheep FOREST TEODUCTS. Total- Lumber: Meats, cold storage holdings Number of mills— first of following month National Lumber (lbs., 000 omitted): Mfg. Assn 572 564 475 j Beef. Southern pine 174 175 184 Pork products Western pine 50 56 Lamb and mutton Douglas fir 112 104 Exports of certain meat prod- Production (ft., 000,000 ucts (lbs., 000 omitted): omitted)— ' Beef- National Lumber Canned Mfg. Assn 1,306 813 136 119 90 Fresh Southern pine 402 j 412 109 104 i 111 Pickled and other Western pine 168 I 66 130 ' 70 cured Douglas nr 417! 260 137 115 i 92 Hogproducts— Shipments (ft., 000,000 Bacon omitted)— Hams and shoulder.. National Lumber Lard Mfg. Assn 1,066 880 133 105 j 102 Pork, pickled Southern pine 336 423 115 85 117 Receip D t A s IB a Y t P 5 R p OD ri U n C c T i S p . al mar- Rece D W ip o e t u s s g t a e la t r s n O f p i m i r n e e ago and 291 3 1 2 0 0 9 22 9 1 8 "129" 1 10 0 2 2 ; 1 9 0 8 7 kets (000 omitted): St. Louis (M ft.). 479,660 507,934 |496,195 118 123 122 Butter (lbs.) Shipments at Chicago Cheese (lbs.). and St. Louis (M ft.)... 312,856 321,713 J305,188 123 i 127 i 125 Oak flooring (M ft.)— Cold-storage Production 26,828 28,357 16,933 j. following Shipments. 26,431 29,185I 19,544 ' L om C A i r m t e t a e e m r d i ) c e : a ry n b ch u e t e te s r e ( ( l l b b s s . . ) ) . . . . . . 4 3 7 7 , , 8 1 0 6 7 9 7 4 3 0 , , 8 8 5 3 0 7 3 6 4 5 , , 0 1 6 3 2 8 S U t n o f c i k ll e a d t e o n r d d e o r f s month 3 1 5 9 , , 2 1 0 3 9 2 3 1 2 9 , , 2 0 9 1 6 4 I 2 2 0 1 , , 9 0 2 2 2 2 i I j I . . 3,257 5.723 ' 2,402 1 Figures for October, 1922, September, 1922,October, 1921. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

98 FEDERAL RESERVE BULLETIN. JANUARY, 1023. COMMODITY MOVEMENTS—Continued. COMMODITY MOVEMENTS—Continued. Per cent of Per cent of average same average same month, 1919- month, 1919- Nov., Oct., 1921. Nov., Oct., i Nov., 1921. 1922. 1922. 1922. 1922. ! 1921. iNov.,|Oct.,iNov., Nov.,Oct.,Nov. ;1922. 1922. !l921. 1922. 1922. 1921. FOREST PRODUCTS—COlltd. METALS—continued. Naval stores at 3 southeastern Tin (lbs., 000 omitted): I ports: Deliveries to factories | 10,779 12,551 7,280 109 196 73 Spirits of turpentine Stocks at close of mouth..j 2,699 • 2,859 j 1,316 (casks)— Receipts 25,092 30,519 24 801 112 130 , 110 TEXTILES. Stocks at close of month 40,161 30,681 62 072 86 ! 68 | 133 Cotton (bales, 000 omitted): Rosin (bbls.)— Sight receipts 2,156 2,331 1,704 109 133 | 86 Receipts 99,591 98,804 98 260 116 ! 130 i 114 Port receipts 1,162 1 278 760 116 122 i 76 Stocks at close of Overland movemen t 237 160 232 | 120 122 | 117 month 52,465 320,213 321 478 137 ' 13S ' 125 American spinners' tak- I 1'UEL AND POWER. St i o n c g k s s at ports and inte- 1,150 788 1,076 | 130 129 i 122 rior centers 2,224 2 188 2,679 i 85 92 102 Coal and coke (short tons, 000 Stocks at mills 1,721 : 1,380 1,655 i 117 112 112 omitted): Stocks at warehouses 4,198 I 4,330 r 293 i 87 115 110 Bituminous coal produc- Visible supply 3.876 ! 3,3X5 4^623 ! 89 ! 87 ; 106 tion (est.) 45,262 45,154 35,955 127 102 Consumption by mills 578 ' 534 528 ! 128 i 110 ' 117 Anthracite coal produc- Spindles active durin;; tion (est.) 8,385 8,530 6,859 114 105 ' 93 month (number, 000 i Anthracite coal shipments 6,420 6,568 5,314 omitted)! ; 34,665 33,859 34,428 : 103 99 103 Coke- Wool: Beehive production Consumption ' 63,313 59,282 53,463 ; ! ;.... (est.) 1,139 S78 477 91 c 72 3S Percentage of active ina- j Petroleu B m y t , - i p o ro n c d r ^ u u . c d ) t, e pro (b du b c ls - . 2,908 2,806 1,751 o to h t i o n t e a r l y r o ep n o ls rt t e o d f — mo nth i Looms wider than j 000,000 omitted): 50-inch reed space.. I 80.8 ; 77.1 73.4 116108 j 106 Production 48 47 38 132 131 105 Looms 50-inch reed I Stocks at close of month.. 276 274 178 190 190 123 space or less 1 82.0 79.1 ' 78.3! 115 110 Producing oil wells com- Sets of cards ' 85.7 85.8 77.5 119 107 Oil ref p i l n e e t r e i d e s ( :l n umber) | 1, 150 1,388 899 SS | 86 j 55 C Sp o i m n b n s i ng spindles, '• | 87.0 86.8 83.9 110 106 Production (000.000 omit- woolen ! S4.4 84.4 77.6 | 116110 107 ted)— ' I Spinning spindles, : Crude oil run (l>bls.).' •14 43 38 117 I 101 worsted 90.0 89.1 89. S ! 112 I 107 Gasoline (gals.) I .566 536 441 133 j 104 Percentage of idle hours ; ' Kerosene (gals.) ' 215 198 182 108 8S on 1st of month to total : Gas and fuel oils I reported— (gals.) ! 922 918 834 118 I 119 107 Looms wider than Lubricating oils I 50-inch reed space.. 80.0 7... | (gals.) 87 82 76 106 109 92 Looms 50-inch reed | Stocks at close of month ; space or less 72.7 77.7 74.3 (000,000 omitted)— Set of cards 93.7 93.8 78.8 Crude oil run (bbls.)J 33 34 190 199 107 Combs 111.4 106.4 93.8 Gasoline (gals.) \ 724 690 456 195 176 ] 123 Spinning spindles, Kerosene (gals.) 256 271 335 73 78 | 96 woolen 89.7 90.6 78.1 Ga ( s g als a . n ) d fuel oils • ! 1,369 1,365 1,238 143 143 I 1.30 Sp w in o n rs in te g d spindles, 94.0 87.4 Lubricating oils Raw silk: (gals.) ! 21S 215 217 129 124 129 Consumption (bales) 35,467 . 37,47124,955 Electric power produced Stocks at close of month by public utility plants (bales) 47,159 45,893 19,601 (000,000 kw. hrs.): Produced by water. p, ower, 1,36!) 1,3.51 1,218 86 73 2,799 2,422 142 123 HIDES AND LEATHER. Produced by fuels j 3,030 4,399 4,330 3,639 121 I 121 i 100Sales of raw hides and skins Total during month (number, 000 omitted): METALS. Cattle hides 1 536 I 475 Iron and steel (long tons, 000 Calfskins 906 1 1?1 r>R omitted): Kip skins 336 ">54 Pig-iron production2 3,087 2,850 1,649 133 ; 127 71 Goat and kid 1 508 1097 774 Steel-ingot productions.. 2,780 2,889 1,427 133 12S i 68 Cabretta 52 61 10"> Unfilled orders, U. S. Sheep and lamb 3,001 3 876 1646 I Steel Corporation 2 6,746 6,840 4,268 98 ! 101 i 62 Stocks of raw hides and skins Fabricated structural at close of month (number steel contracted for 000 omitted): (tonnage) 99,040 121,150 I 99,800 Cattle hides 6,163 5,838 •5,902 lOfi 91 89 Silver production (troy ozs Calfskins 3,692 3,4«H 3,148 133 113 111 000 omitted) '. 4,870 5,161 I 3,790 Kip skins 1,153 1,089 1,002 101 95 83 Copper production (lbs., 000 Goat and kid 3,202 8 681 11 2«7 63 64 91 omitted) 102,593 103, S81 j' 22,348 Cabretta 1,036 841 .527 58 47 Zinc (lbs., 000 omitted); Sheep and lamb 9,409 9,561 13,364 79 81 113 Production . 80,400 79,880 42,270 Production of leather (000 Shipments. 77,492 81,406 49,820 omitted): Stocks, close of montJi 38,994 36,086 134,098 Sole leather (sides) 1,484 1, 1705 Skivers (dozens) 34 3,5 18 1 Figures for October. 1922, September, 1922, October, 1921. Oak and union harness 1 Figures for December, 1922, November, 1922, December, 1921. (sides stuffed) 135 133 60 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

JANUARY, 1923. FEDEKAL RESERVE BULLETIN. 99 COMMODITY MOVEMENTS—Continued. COMMODITY MOVEMENTS—-Continued. Per cent of Per cent of average same average same month, 1919- month, 1919- Nov., Oct., Nov., 1921. Nov., Oct., Nov., 1921. 1922. : 1922. 1921. 1922. 1922. 1921. NovJOct.,!Nov., 1922. 1922. J1921. ! HIDES AND LEATHER—contd. MISCELLANEOUS MANUFAC- TUEES-continued. Boots and shoes, output (pairs, 000 omitted): Vessels built in United States Men's 8,759 8,557 6,780 and officially numbered by Women's ; S,938 9,495 6,875 the Bureau of Navigation: Other 12,912 13,042 9,937 Number 89 71 79 78 ! 69 Gross tonnage 27,720 33,815 61,599 13 j 30 Total ' 36,609 31,093 23,593 TRANSPORTATION. MISCELLANEOUS MANUFAC- Kailroad operating statistics:1 TURES. Net ton-miles, revenue, Wood pulp (short tons): and nonre venue (000,000 Production :300, 284,642 271,787 j 99 omitted) :9,260 i 34,270 36,670 I 98 92 Consumption l2U, 261,320 212,927 110 114 Net tons per train 732 ' 721 702 98 96 Shipments ! 58. 64,908 62,142 88 96 Net tons per loaded car .. 27.7 i 27.3 27.2 97 95 Stocks, end of month I124J 136,931 158,555 : 76 Revenue freight loaded and Paper (short tons): received from connections, Newsprint— classified according to Production 127, 130,682 104,604 111 91 nature of product (cars, Shipments 128, 129,747 104,492 | 90 loaded, 000 omitted): Stocks, end of month. 19, 19,745 23,127 100 I 96 118 Grain and grain products. 230 • 226 164 143 102 Book paper production... 93, 92,865 73,544 I 113 i 109 89 Livestock 168 , 175 135 111 89 Paper-board production..198, 196,769 172,582 I 122 102 106 Coal 849 846 677 121 97 Wrapping-paper produc- Coke 54 46 28 120 tion 77, 74,630 65,905 i 119 j 109 101 Forest products 268 258 212 118 Buil F d i i n n e g p m a a p t e e r r ia p l r s o ( d 0 u 00 c t o io m n it . - .. 31, 33,774 24,609 , 108 ! 108 84 M Or e e rchandise, l.c.l 1 97 2 5 6 2 9 0 9 3 8 95 3 5 5 1 1 0 2 9 1 1 3 1 0 8 ted): Miscellaneous 1,435 j 1,549 ! 1,083 111 84 Clay fire brick- Production 55,996 31,921 121 ; 110 6!) Total. 4,105 I 4,301 3,289 117 102 94 Shipments 59,299 29,230 111 ! 107 59 Stocks, close of month 52,101 142,002 123 109 112 Revenue freight loaded, clas- N Un ew fil l o e r d d e o r r s ders 5 7 1 0 . , 1 8 2 6 0 0 2 2 5 9 , , 8 9 8 6 3 4 1 8 41 7 I11 7 1 6 3 7 2 8 s g i r f a ie p d h ic a a c l c d o i r v d i i s n i g o ns: to geo- Silica brick- Eastern 1,041 1,061 840 Production 15,755 I 4,572 Allegheny 874 889 672 91 Shipments 13,161 I 5,282 j Pocahontas 131 130 130 92 Stocks, close of month 39,730 41,379 Southern 590 592 498 98 Face brick- Northwestern 564 663 407 82 Production 57,185 I 45,582 99 I 105 Central western 610 656 484 95 Shipments 41,062 I 28,280 ] ! Southwestern 295 310 258 99 Stocks in sheds and kilns 01,782 1142,135 ' 78 i S2 119 Total. 4,105 i 4,301 j 3,389 117 102 94 Unfilled orders, close Freightcarsurplus (number): of month 65,558 ; 35,891 86 i 76 60 Total : 5,209 i 4,475 182,452 Cement (bbls., 000 omit- Box. 739 I 119 72,680 ted)— Coal 2,10S ! 1,993 78,140 Production 12,287 | 8,921 Freight car shortage (num- Shipments 12,854 5,195 ber): Stocks, close of month 4,149 9,091 Total 154,771 160,787 j 1,775 Rubber (lbs., 000 omitted): Box ' 79,818 80,237 522 Consumption by tire Coal 43,722 44,833 ' 806 manufacturers 30,894 17,609 Bad order'cars," total.'. '..!.'•'. 1 226^ 288 J249,960 ^345,201 Pneumatic tires (000 omitted): Production 2,675 1,757 Vessels cleared in foreign : ; | Shipments, domestic. -. -. 2,589 1,343 j trade (tons, 000 omitted): ( : Stocks 4,683 3,908 American I 3,446 3,358 2,748 125 114 Inner tubes (000 omitted): Foreign | 2,799 ! 2,778 ' 2,200 120 97 95 Production 3,788 2,126 ! Shipments, domestic 3,421 1,540 i Total 6,245 | 6,136 i 4,949 97 Stocks 5,488 5,204 I Percentage of American Solid tires (000 omitted): to total 55.2 ' 55 50 102 Production 85 44 Panama Canal traffic (tons, Shipments, domestic 71 35 000 omitted):l Stocks 214 173 Total cargo traffic 1,446 1,138 986 110 Automobiles: American vessels 649 I 543 ' 383 Production (number)— British vessels 432 372 367 Passenger cars 1215, 214,090 Commerce of canals at Sault Trucks 20, 20,591 Ste. Marie (000 omitted): I Shipments- Eastbound— [ Railroads (carloads).. 27,232 27,100 14,264 i Grain other than i Driveways (ma- wheat (bu.) j 18,295 | 8,572 : 13,541 124 127 Bo c a h t i n ( e m s) achines) 3 7 5 , , 6 2 0 0 5 3 1 1 0 , , 4 5 0 28 2 W Flo h u e r a t ( b (b b u ls . . ) ) I ! 75 1 , ,4 0 4 8 1 7 I 1 5 1 6 ,4 , 0 70 2 7 ! i 1 5 ,8 3 8 , 7 333 1 9 8 3 4 1 12 4 3 8 Iron ore (short tons)..! 3,658 i 5,872 383 98 12 Locomotives (number): Total (short tons) ! 6,559 ' 7,996 2,519 110 Domestic shipped 144 133 14 167 West bound— j Foreign completed 15 12 Hard coal (short tons).' 282 26S 159 70 ! 50 Soft coal (short tons). 2,455 2,689 474 US 54 Total 159 145 ! 29 83 24 Total (short tons) I 2,909 : 3,237 746 140 : 56 Unfilled orders- Total freight (short j Domestic .. 1,501 1,420 tons) 9,468 i 11,233 3,265 j 159 115 i 55 Foreign 118 118 Total 1,619 1,538' ' i Figures for October, 1922, September, 1922, October, 1921. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

100 FEDERAL RESERVE BULLETIN. JANUARY, 1923. BUILDING STATISTICS. BUILDING PERMITS IN 168 SELECTED CITIES. [Collected by the 12 Federal Reserve Banks.) NUMBER OF PERMITS ISSUED. D N i ( s o 1 tr . 4 i 1 ct ' D N is ( o 2 tr . 2 i 2 c t D N is ( o t 1 r . 4 i 3 c t D N i ( s o 1 t . r 2 i 4 ct D N is ( o 1 tr . 5 i 5 c t I ' D N is ( o 1 t . r 4 i 6 c t! 1 \ D N is ( o t 1 r . 9 i 7 c t i i ! D N is o ( t 4 r . i 8 ct i i D N is (( o t 99 . r i 9 c t! I II D N i ( s o (11 t . r 44 i 1 c 0 t D N i o s (( t . 9 r 1 ic 1 t D N i ( s o 2 t . r 0 1 ic 2 t c T i ( t 1 o i 6 e ta s « l ). cities), cities), cities), cities). cities), cities), cities). cities), cities), jj ciittiei)s ),j citiies). cities). 1921, November 1,795 7,549 2,103 2,998 3,110 2,677 6,594 : 1,451 i 1,105 2,084 2,479 | 10,162 44,107 1922,January 878 4,176 1,623 1,724 2,188 2,155 3,498 1,141 : 523 1,336 1,653 i 8,298 28,884 February 1,024 1 4,210 2,081 2,619 2,305 2,566 4,815 1, 434 i 517 j 1,758 2,114 7,600 33,043 March 2,364 13,284 3,557 4,986 4,101 3,211 8,806 2,218 1,493 ! 2,711 2,623 11,196 60,450 April.. 3,023 i 9,056 4,386 6,149 4 397 3,215 11,546 2,650 , 3,342 3,103 2,686 10,966 64,499 May 3,446 ! 10,136 3,991 6,666 5,321 3,443 13,799 2,955 3,391 3,554 2,794 11,266 70,762 Juno , 2,943 i 9,572 3,624 5,839 4,509 3,085 11,898 2,507 2,422 2,888 2,545 i 10,156 61,988 July 2,597 | 7,761 3,029 4,680 3,756 2,978 10,385 2,291 2,125 2,467 2,238 : 9,415 53,722 A Se u p g t u e s m t ber • i 2 2, , 7 8 3 7 4 3 1 1 7 8 , , 8 4 2 2 8 4 . . 3 3 , , 0 6 4 8 4 0 5 4 , , 0 7 9 8 3 9 : , 4 3 ,9 0 9 1 7 8 3 3, , 1 1 1 3 4 0 1 1 1 0 , ,5 1 5 1 3 2 2 2 , , 3 3 5 7 4 3 . 2 1 , , 2 92 4 3 4 2 2 , , 7 6 7 2 8 9 2 2 , , 5 2 3 2 4 3 i j 1 1 1 1 , , 5 2 9 9 6 1 6 57 8 , , 9 6 1 0 9 4 October ! 2,911 1 9,672 ! 3,169 5,064 ] 3,930 j 3,335 i 11,988 2,492 2,029 2,906 2,470 I 12,254 62,230 November ! 2,301 I 9,022 i 2,504 4,130 ! 3,433 ; 3,010 ! 9,437 2,048 • 1437 2,669 2,184 | 10,490 52,685 VALUE OF PERMITS ISSUED. District No. District No. District No. District No. : District No. ! District No. District No. 1 (14 cities). 2 (22 cities). 3 (14 cities). 4 (12 cities), j5 (15 cities). I 6 (14 cities). 7 (19 cities). 1921, November I 6,159,262 : 53,698,152 9,290,556 ' 11,010,591 0,019,114 ! 3,931,32S 22,328,628 1922, January... 7,380,701 i 50,145, 296 6,878, 523 5,713, 209 8,352,615 i 3, 734,262 18,905,561 February I 9,280,82/ ! 50,372,553 8,275,338 7,829, 585 7,513,542 4,630, 052 20,419, 417 March i 11,089,077 j 119,964,783 14,116,292 13,814, 868 11,329, 049 6,021, 211 33,747,135 April i 14,921,509 i 54,704,292 17,020,500 15,693,183 11,971,471 4,951,558 35,089,303 May i 13,104,967 j 57,843,58", 13,844,813 22,614,084 13,348,592 | 7,262,167 53,806,499 June I 10,600,450 j 73,352, 564 18,177,759 22,428,251 15,736,766 i 6,498,677 49,934,583 July | 9,174,687 ! 47,144,023 15,898,696 26,558,680 15,514,625 7,516,036 38,151,182 August 16,633,819 49,210,637 15,352,655 22,036,882 11,605,153 , 7,985,212 40,452,972 September 8,656,459 56,670,108 15,868,670 25,076, 766 12,969,812 6,326,074 31,550,169 October 9,159,731 66,963,524 13,806,295 ; 14,906,540 11,291,795 8,048,880 34,088.484 November 8,387,694 66,683,756 15,357,321 i 14,712,598 9,519,324 5,124,902 41,424,978 District No. District No. I District No. District No. District No. ! Total (166 8 (4 cities). | 9 (9 cities). ! 10 (14 cities).11 (9 cities). 12 (20 cities).' cities). 1921, November 2,570,707 ! 3,022,961 5,590,210 4,331,965 19,579,992 147,553,466 1922, January... 2,579.894 ! 2,110,424 5,023,603 4,960,078 22,872,876 : 138,631,902 February 4,150,487 | 1,569, 774 4,336,011 4,419,789 18,917,868 141,715,243 March 5,012,607 i 4,526,209 7,165,925 5,630,336 27,432,286 i 259,847,998 April 6,076,684 8,196,110 ' 8,384,652 6,228,385 ! 30,195,052 213,432,799 May 7,443,855 9,913,853 10,807,084 4,752,642 \ 28,271,238 243,013,079 June 5,855,459 6,020,186 8,894,131 5,276,819 ! 29,598,278 252,373,923 July 5,698,792 7,663,443 j 8,040,606 5,861,650 ! 22,391,016 i 209,613,436 August 5 815,805 8,284,659 • 9, 793,352 5,010,204 i 29,424,332 > 221,605,682 September 5,384,042 4,737,015 I 8,352,440 4,980,057 '• 23,968,073 , 204,482,944 October 6,353,637 4,716,802 8,989,079 4,765,340 29,338,159 i 211,525,532 November 5,811,979 5,273,142 8, 277,871 3,859,909 26,200,472 210,633.946 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 District j Total No. 1. No. 2. No. 3. No. 4. No. 5. No. 7. No. 9.1 I (7 districts). 1921," December 25,593,850 63,210,850 15,551,500 17,820,882 19,552,333 32,219,285 9,685,054 183,633,754 1922, January 15,302,453 54,962.847 12,128,900 21,066,282 14,002,399 29,182.324 3,613,148 150,258,353 February 14,799,476 60,152,424 11,828,700 20,602,823 16,518,079 32,344,424 5,192,824 161,438,750 March 26,212,330 90,088,870 24,558,100 29,661,058 24,116,011 58,081,526 11,933,270 264,851,165 April .• 42,196,915 117,814,585 24,795,800 38,089,754 25,618,120 64,236,566 9,878,501 322,630,241 May 31,589,783 91,441,141 25 739,294 58,432,714 32,268.767 71,117,055 12,455,410 323,044,164 June 36,259,420 81,614,205 26,630,900 46,801,800 30,668,191 77,560,940 12,153,061 311,688,517 July 24,910,926 79,819,084 28,768,377 52,224,001 25,362,187 83,159,795 9,304,325 303,548,695 August 26,780,103 80,810,922 43,818,911 50,811,596 20,983,619 56,954,434 ' 8,249,905 288,409,490 September 29,245,087 64,298,556 24,947,916 34,634,723 22,997,450 62,219,681 5,868,200 244,261,613 October 25,305,051 65,060,956 20,439.852 35,164,630 19,684,627 52,048,241 4,523,126 222,226,483 November 25,297,599 77,700,081 16,929,289 29,337,240 19,848,004 45,428,673 4,810,120 219,351,006 December 19,739,632 58,684,871 18,706,115 28,041,621 15,677,542 45,128,035 5,285,253 191,263,069 VALUE OF CONTRACTS FOR RESIDENTIAL BUILDINGS. 1921, December. 16,847,210 ! 44,582,990 6,669,200 I 6,903,193 5,970,062 i 10,740,666 j 2,633.254 94,346,575 1922, January... 4,767,597 j 35,652,203 6,280,200 6,279,459 6,597,861 [ 10.601.761 I 1,049,694 71,228,675 February 4,179,944 38,657,156 5,647,700 6,545,073 7,299,608 i 9,388,615 i 962,757 ! 71,680,853 March 11,897,086 j 51,116,514 9,552,500 10,641,177 9,796,405 ; 17,225,204 I 2,348,511 I 112,577,397 April 13,524,827 ! 53,677,473 10,408,700 16,127,627 10,297,280 17,661,586 4,176,963 : 125,873,466 May 14,018,303 ! 39,943,547 11,168,868 19,121,798 13.009,760 ' 24,574,835 4,240,047 ' 126,077,158 June 12,518,840 j 40,483,063 11,275,517 17,434,095 16,036,790 i 28,206,838 2,677,184 128,632,327 July 12,644,574 ! 33,364,787 7,826,581 15,406,301 8,074,163 20,633,345 : 2,415,438 100,365,189 August 11,945,451 j 29,091,738 8,828,667 13,409,258 6,320,030 18,833,050 2,535,590 90,963,784 September 11,509,627 i 34,536,710 8,142,367 12,736,605 8,595,717 15,011,664 2,453,723 92,986,41$ October 13,552,663 33,237,936 10,072,260 13,729,840 ! 7,416,108 20,291,379 2,227,614 100,527,800 November 13,667,239 51,891,842 7,397,453 11,405,407 7,997,513 22,307,994 2,847,452 117,514,900 December 13,962,708 42,981,478 11,526,372 17,809,202 5,002,996 ; 17,949,393 2,046,342 i 111,278,491 1 Montana not included. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

101 JANCARY, 1923. FEDERAL RESERVE BULLETIN. RETAIL TRADE. uary, 1921, is shown in the second of the following tables. The 176 department stores are The following tables are a summary of the located in districts Nos. 1, 2, 3, 5, 6, 9, 11, and data obtained from 488 representative depart- 12, while the mail-order houses do business in ment stores in the 12 Federal reserve districts. all parts of the United States. The United In districts Nos. 1, 2, 3, 5, 6, 7, 9, 11, and 12 the States index for department stores is computed data were received in (and averages computed by weighting the districts according to the buyfrom) actual dollar amounts. In districts Nos. ing power, as measured by population and 4, 8, and 10 most of the material was received banking resources. 'Chain-store figures are in the form of percentages, and the averages for based upon the total sales of the same reportthe cities and districts computed from such per- ing chains for each month, but the actual numcentages were weighted according to volume of ber of stores in these chains varies slightly. business done during the calendar year 1921. Chain stores selling groceries, shoes, and The tables for the month of November are musical instruments increased their sales in based on reports from 25 stores in district No. 1 November, while drug stores, cigar stores, and (Boston), 64 stores in district No. 2 (New York), 5-and-10 cent stores reported decreases. All 141 stores in district No. 3 (Philadelphia), 36 reporting lines had larger sales than in Novemstores in district No. 4 (Cleveland), 25 stores in ber, 1921, the most substantial increases being district No. 5 (Richmond), 36 stores in district reported by grocery, 5-and-10 cent, and music No. 6 (Atlanta), 54 stores in district No. 7 chains. The accompanying chart shows the (Chicago), 20 stores in district No. 8 (St. course of business of department stores and Louis), 25 stores in district No. 9 (Minneapolis), mail-order houses since 1919. It will be noted 18 stores in district No. 10 (Kansas City), 21 that sales of department stores were larger in stores in district No. 11 (Dallas), and 33 stores the fall months of 1922 than in either 1919 or in district No. 12 (San Francisco). 1921, but smaller than in 1920. Mail-order business this autumn was substantially larger than A comparison of monthly changes in activity in 1921, but less than in the two previous years. of different types of retail business since Jan- COMPARISON OF SALES OF DEPARTMENT STORES AND MAiL ORDER HOUSES 1919 - 1922 ( AVERAGE MONTH. 1919 = 100 ) 180 160 140 120 100 80 80 60 60 40 40 •DEPARTMENT STORES (159) 20 -MAIL ORDER HOUSES (-4) 20 J. F. M. A. M. J. J. A. 5. 0. N. D. J. F. M. A. M- J. J. A. S. 0. N. D. J. F. M. A. M. J. 0. A. S. 0. N. D. J. F. M. A. M. J, J. A. S. 0. N. D. 1919 1920 1921 1922 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

102 FEDERAL RESERVE BULLETIN. JANUARY, 1923. CONDITION OF RETAIL TRADE IN THE FEDERAL RESERVE DISTRICTS. [Minus sign (—) denotes decrease.] Percentage of Percentage of average stocks outstanding Pe P rc ° e e n S ta & ge a o rp f i e n r c ^ r f e y as e e a i r n e S n P e O t n s < a U le n s g j !P er ^ epn M taM o S f jn(. ' rea, S e in ^ ctn S ets S at -* m at o c n lo th s e t o o f a e v a e c r h - o m rd o e n rs t h a t t o c l t o o s t e a o l f age monthly purchases sales for same during previous period. calendar year. District and city. mIiL1^t0 [ SalvKLpre- i ***»» -<»«>.; July 1,1922, to close of— j Novem- Octo- Novem- Octoiber, 1922.ber, 1922. ber, 1922.ber, 1922. | Novem- Octo- I Novem- i Octo- iNovem- Octo- Novem- Octojber, 1922. ber, 1922.|ber, 1922. ber, 1922.!ber, 1922.ber, 1922.ber, 1922.ber, 1922. District No. 1: Boston 8.3 5.6 9.0 9.2 5.4 3.8 6.8 324.2 333.4 6.6 7.5 Outside 6.7 -3.6 4.3 3.6 1.1 -2.4 '• 4.6 7.6 422.5 424.0 6.5 6.8 District.. 7.9 3.6 7.8 7.9 3.6 4.7 I 4.0 7.0 345.3 354.0 6.5 7.4 District No. 2: New York and Brooklyn... 7.3 3.8 7.6 7.7 1.3 7.0 2.0 345.5 363.0 7.7 I 8.5 Bridgeport 9.5 2.8 5.6 4.5 2.9 i -0.3 3.8 5.2 410.9 408.2 8.7 i 7.2 Buffalo 4.3 9.1 ! 4.8 4.9 -2.9 [ -7.8 5.1 3.9 j 392.3 379.2 6.i: 8.9 Newark 14.1 9.6 : 7. 5 5.2 6.4 i -3.7 n.7 ; 3.1 342.7 362.7 2.3 6.5 R S O y o u D r c t a i s h s c i e t d u r s e s i t e c e t r 6 2 3 8 . . . . 6 1 3 8 6 3 4 g . . . 5 9 8 1 _ i , ! i_ 5 6 1 1 . . . . 6 9 9 8 6 6 0 1 . . . . 5 4 4 5 - - - l 1 8 . 1 . o . 1 . 5 ! 1 I — - - - 1 7 2 3 . . . 7 3 5 .4 -0 4 4 5 . . . . 5 6 0 2 I 3 7 8 1 . . . . 6 0 4 6 ; ! | | 3 5 3 3 4 4 7 5 4 8 4 7 . . . . 7 6 7 0 3 3 5 3 6 8 6 6 0 4 2 5 . . . . 2 7 0 1 6 4 7 . . . 7 5 0 ! | 6 7 7 8 . . . . 8 2 3 3 District No. 3: Philadelphia 10.9 5.4 7.5 6.0 -2.1 -0.7 0.2 7.0 337. 0 363.7 8.7 i 9.1 Allentown 24.1 11.9 12.4 7.0 -4.1 1.8 1.9 1.3 589.3 595.0 5.0 ! 4.8 Altoona 16.2 -1.0 3.0 -0.8 -9.5 -11.7 2.3 9.1 477.6 479.3 12.8 | 13.5 Chester 55.6 33.7 28.9 20.4 Harrisburg 15.0 5.5 12.0 11.0 10.1 11.3 1.9 7.2 488.6 502.3 Johnstown IS. 1 1.8 | -1.2 -6.3 1.2 1.5 1.3 7.4 446.9 466.4 Lancaster 8.9 -4.1 j 0.7 —0.9 -0.4 0.4 3.6 1.3 514.7 534.8 10.6 I 9.5 Reading 11.4 2.3 I 8.2 7.4 0.1 -0.6 -0.4 2.4 590.1 619.2 5.0 4.4 Scranton 3.9 -5.6 -11.2 -12.7 15.4 10.8 5.3 -0.6 409.6 452.6 Trenton 12.7 6.6 8.9 7.6 -0.1 -1.7 2.1 1.8 435.3 458.0 Wilkes-Barre 1.1 -1.1 -4.7 -7.8 -8.1 -8.8 0.3 4.2 459.9 493.2 Williamsport 5.3 -7.9 ; -2.0 -5.4 2.6 6.2 -1.8 6.4 501.3 433.4 Wilmington 19.2 17. 5 12.9 11.1 -5.7 -2.6 4.0 7.0 ! 680.1 694.9 5.6 • 7.3 York 5.3 -5.4 3.4 3.7 — 7.3 —4.7 -1.8 488.1 545.9 3.3 i 5.1 Outside 6.4 10.7 , 3.8 3.3 12.0 IS. I 2.1 7.9 579.1 595. 9 7.5 6.5 District 11.4 1.7 6.1 -0.5 0.4 0.9 6.0 413.0 435.4 8.1 8.5 District No. 4: Cleveland. Akron Canton Cincinnati. Pittsburgh. Toledo Outside District. District No. 5: Richmond. Baltimore.-- Washington. Outside.... District.. District No. 6: Atlanta Birmingham Chattanooga. Nashville.... New Orleans Savannah Outside. District District No. 7: Chicago Des Moines Detroit Indianapolis Milwaukee. Outside District Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

JANUARY, 1923. FEDERAL, RESERVE BULLETIN. 103 CONDITION OF RETAIL TRADE IN THE FEDERAL RESERVE DISTRICTS—Continued. [Minus sign (—) denotes decrease.] Percentage of Percentage of averagestocks outstanding Pe c p r o e c m r e i n o p t d j i r g p e e r d e o v f i o w i u n i s t cr y e e as a e r in net sales ; ! Pe c r l c o e se I l o t f a m ge o o n f th i n c cr o e m a P s a e r i e n d s w to i e th k — s at m at a o g c n l e o t m h se D ; o o n f a t e h v a l e y c r h - o m rd o e p n r u s t r h c a t h t o a c s l t o e o s s t e a o l f sales fcr same during previous perod. calendar year. District and city. i Jul c y l o 1 s , e 1 9 of 2 — 2, to ! ' Sam v e i o m u o s n y t e h a p r. r e-1 ! p l _ r . e ,Tviln, o , u 5 month. Jul c y lo l s , e 1 o 9 f 2 — 2, to Novem- Octo- Novem- October, 1922.ber, 1922. ber, 1922.ber, 1922. Novcm-! Octo- ] Novem-! Octo- j Novem- Octo- Novem- October, 1922.!ber, 1922.!ber, 1922. ber, 1922.jber, 1922.ber, 1922 ber, 1922.ber, 1922. District No. 8: 4.1 8.6 4 7 4.8 0.2 -0.8 ; 2.3 3.3 366.6 383.7 6.0 7.1 Little Rock. 1.8 0.1 —6 0 —13.9 5.7 0.6 2.9 1.9 443.2 477.2 5.3 6.4 Louisville 6.6 —3.6 1.7 -0.1 -15.4 -18.1 ' 1.2 7.9 364.0 373.5 3.8 6.3 15.7 7.7 11.2 9.6 —2.7 —5.9 6.3 5.4 468.0 488.5 12.4 12.4 3.1 0.7 2 6 7 5 5 2 ' 4 5 1 l 538 5 539 2 3.2 4.7 District ' 6.1 6.0 4.3 3.4 1 -1.9 -4.0 : 2.7 4.1 392.8 409.2 6.4 7.7 District No 9 -0.5 8.2 '> 7 3 8! 1 7 0 5 ' 2 1 4 3 306 3 452 9 4.5 6.2 District No. 10: 10.5 3 6 7 0 4 1 13 4 9 2 1 9 466 4 487 2 2.7 5.0 Denver... 1.3 6.3 —2.1 0.8 — 1.5 — 1.6 2.3 -2.0 533.3 486.0 11.9 10.9 2.6 0.9 3 1 4 0 1 8 3 3 ' 478 3 542 1 6.2 7.6 District... 2.3 -0.5 -l.i -3.8 -0.1 -6.4 | -0.8 0.2 490.1 507.0 6.8 7.1 District No. 11: Dallas " 4 -9.2 2 8 : 2.9 —8.1 — 7.9 i -2.0 2.9 437.6 453.4 8.5 9.2 Fort Worth... 6.4 -5.6 1.5 1 0 -7.4 -8.8 ! 0.6 2.9 1 491.2 508.9 5.8 7.1 2.8 1.4 0 1 0.7 -11.4 9.1 : —0.9 3.2 ! 510.0 538.6 3.7 5.0 Outside -6.8 -14.4 — 10.21 —12.3I -15.9 — 16.6 1 1.6 -1.9 458.4 475.1 6.6 5.7 0.4 -8.4 -1.8 , -2.8 | -10.9 -10.8 | -0.4 1.6 464.3 483.3 7.2 7.6 District No. 12: 12.3 9.6 6.9 5.4 -0. S —2.9 ; 9 7 3.0 i 431.0 435.7 10.6 10.8 Los Angeles 18.4 16.0 10.6 i 8.6 -7.0 -12.9 ! 8.4 -0.4 ! 386.9 390.9 10.8 12.7 7. S 6.5 0 7 ! 1 5 —3.9 4.1 : 0.7 2 4 545 7 541. 8 Salt Lake City 2.1 7.2 1 1 i 0.8 0.9 —1.4 , 2.3 3.0 53S. 0 549.3 3.6 Seattle 22.3 10.6 12 8 10 5 3.2 4.4 2.5 5.9 393 2 389.1 8.2 6.3 Spokane 5.1 -1.4 -2.6 —4.4 -0. % 0.7 —2 1 -2.2 582.5 593. 5 8.9 6.5 14 o 10.3 6.0 -2.5 -4.7 : 3.5 LSI , 431.0 434.4 9.8 10.7 • United States 9.0 4.5 6.0 4.6 : -0-7 -2.8 i 2.2 4.1 397. 9 426.5 7.4 8.2 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

104 FEDERAL RESERVE BULLETIN. JANUARY, 1923. AVERAGE MONTHLY VALUE OF RETAIL TRADE. [Average month 1919=100.1 Chain stores. Department Mail-order stores houses Grocery Five and Drug (7 Cigar (3 Shoes (5 Music (4 (176 stores) (4 houses). (17 chains). (4 c t h e a n ins). chains). chains). chains). chains). 1919. January 75.7 86.1 89.8 70.2 92.7 74.8 68.1 65.3 February. -. 68.9 73.1 86.5 72.3 83.7 77.0 59.6 78.2 March 85.4 82.6 96.1 90.8 96.6 93.7 76.2 89.7 April 98.3 91.5 93.3 93.9 95.3 91.7 107.6 86.0 May 98.1 81.3 94.5 96.4 94.4 102.1 103.3 81.6 June 93.1 74.5 90.4 86.3 93.1 92.2 92.4 75.7 July 77.2 76.1 100.8 87.9 100.8 98.2 88.6 76.2 August 77.6 82.1 98.2 94.6 101.5 99.9 104.0 86.9 September.. 96.4 102.1 99.8 92.5 98.5 96.2 107.1 105.6 October 124,6 155.9 119.0 107.9 104.6 110.2 128.8 133.7 November.. 122.1 148.2 111.5 112.1 103.8 114.9 127.2 127.3 December.. 182.7 146.4 120.1 195.1 135.0 149.0 136.9 193.5 1920. January 104.9 120.2 129.9 85.6 114.9 106.8 90.1 94.7 February... 85.4 122.2 127.5 82.6 107.5 106.1 76.2 95.0 March April 1 1 2 1 0 7 . . 0 5 1 1 0 3 7 0 . . 5 7 1 1 4 5 6 3 . . 7 1 1 1 1 1 0 1 . . 6 1 1 11 1 0 7 . . 0 2 1 12 2 3 0 . . 2 3 1 1 2 3 1 3 . . 6 6 1 9 1 1 2 . . 3 9 May June 1 1 1 2 8 4 . , 0 0 9 8 0 7 . . 4 3 1 1 4 5 8 1 . . 6 7 1 1 0 1 8 2 . . 9 9 1 1 1 1 7 5 . . 0 8 1 1 2 3 9 5 . . 6 6 1 1 2 4 8 6. . 6 3 9 9 3 1 . . 9 9 July 92.2 80.7 157.4 112.0 123.8 137.3 119.8 84.7 August September.. 1 9 0 0 6 , . 9 9 9 8 0 0 . . 5 2 1 14 4 1 1 . . 8 8 1 1 1 1 1 1 . . 7 1 1 1 1 1 9 9 . . 4 8 1 1 3 2 6 9 . . 6 2 1 9 1 1 1 . . 6 7 1 1 0 1 1 8 . . 6 7 October November.. 1 1 3 3 5 1 . . 9 9 1 1 2 0 5 3 . . 5 7 1 1 3 4 9 1 . . 3 7 1 1 2 2 9 5 . . 9 7 1 1 2 1 3 4 . . 4 2 1 1 3 5 3 1 . . 9 0 1 1 3 4 5 3 . . 2 2 1 1 3 2 2 6. . 6 1 December.. 180,7 97.9 137.0 214.6 149.5 180.5 155.0 179.1 1921. January 101.6 69.1 124.5 86.1 117.3 119.9 85.8 79.0 February... March 87.3 64.8 118.5 92.9 110.7 116.5 82.5 78.3 April 116.3 95.1 128.2 121.1 123.6 131.8 141.0 81.9 111,7 77.5 121.3 111.9 121.8 134.7 139.7 75.1 May June 1 1 1 0 1 8 . . 3 5 6 6 0 2 . . 2 1 1 1 1 1 8 5 . . 4 6 1 1 1 0 2 9 . . 2 7 1 12 1 0 9 . . 6 2 1 12 2 7 9 . . 8 5 1 1 2 3 7 6 . . 6 5 6 59 5 . . 9 1 July August 79.7 49.3 114.4 108.0 122.1 128.5 100.9 65.6 September.. 83.2 56.4 120.6 116.0 119.8 127.6 86.6 71.6 October 92.7 72.7 118.0 113.4 119.4 128.0 103.1 82.3 November.. 127.8 88.6 134.7 141.9 124.2 138.0 135.4 99.2 December.. 1 1 7 2 5 1. . 3 8 8 8 0 3 . . 3 3 1 1 4 3 3 2 . . 5 8 2 1 4 3 1 4 . . 6 1 1 1 4 1 6 5 . . 1 2 1 1 7 2 2 4 . . 7 8 1 1 4 1 9 9 . . 6 1 1 1 7 0 2 7 . . 6 0 1922. J F a e n b u r a u r a y ry... 87.2 65.3 135.0 94.6 117.0 111.0 80.0 71.7 March 80.0 59.4 127.1 100.8 114.5 109.3 80.7 75.0 April 101.5 83.5 144.3 118.4 123.2 124.3 102.0 80.6 May 111.9 77.1 136.5 134.9 120.3 124.5 156.3 78.9 June 113.9 69.9 135.5 129.6 122.9 128.8 127.1 80.9 July 105.8 68.8 132.1 124.9 123.5 105.8 121.9 81.3 August 78.4 58.4 134.0 126.3 125.7 127.3 101.3 83.0 September.. 84.8 57.2 136.0 130.4 127.9 126.9 86.8 99.1 October 102.5 >76.1 137.6 136.1 128.* 135.4 117.8 118.2 November.. 131.2 • 110.0 146.2 156.6 133.0 127.1 121.2 118.8 130.0 i 112.5 159.1 152.3 122.3 126.9 122.0 120.7 ' Partly estimated. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

105 JANUARY, 1923. FEDERAL EESERVE BULLETIN. CONDITION OF WHOLESALE TRADE. PERCENTAGE OF INCREASE (OR DECREASE) IN NET SALES IN NOVEMBER, 1922, AS COMPARED WITH THE PRECEDING MONTH, OCTOBER, 1922. Groceries. Dry goods. Hardware. Boots and Furniture. Drugs. Auto sup- Stationery. Farm imshoes. plies. plements. 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. N f b ir e 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. N f b ir e u m r m o s - . f c P en er 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 r m m o s - . f No.2 0.6 42 -12.6 8 -3.6 11 -11.7 10 —13.5 6 —11.3 6 No.3 1.5 64 -6.5 23 -4.6 35 -7.6 13 -3.3 16 No.4 4.6 27 —8.R 14 -3.2 12 —2.1 14 No. 5. —.4 47 — 13. n 16 -2.0 17 -9.8 20 1.6 9 1.1 14 No. 6. . . 35 —19.6 25 -6.5 26 -21.3 12 -1.4 19 —.8 4 -1.3 3 No.7 -3.0 34 —13.9 9 -10.9 16 -19.0 12 -9.7 10 -13.4 7 No.8 -3.3 14 -9.6 6 -.3 3 -13.6 9 -6.0 3 No.9 -2.1 56 —15.5 6 -9.6 15 -1.7 —11.8 x No. 10 -6.3 8 -16.5 3 -9.0 7 -10.9 3 —14.0 4 -17.9 2 43.5 No. 11 -13.1 12 -28.4 11 -10.1 12 2 -14.2 8 -.5 No. 12 7.8 30 2.6 15 -4.3 21 -4.8 14 4 6 16 —4.3 10 -3.5 18 \ -9.2 28 23 8 23 PERCENTAGE OF INCREASE (OR DECREASE) IN NET SALES IN NOVEMBER, 1922, AS COMPARED WITH NOVEMBER, 1921. Groceries. Dry goods. Hardware. Shoes. Furniture. Drugs. su A pp u l t i o es. Stationery. imp F le a m rm ents. Auto tires. District. c P e e n r t. b f N i e r u r m m o s - f . c P e e n r t. b f N i e r u r m m o s. - f c P e e n r t. b f N i e r u m r m o s. - f c P e e n r t. b f N i e r u r m m o s. - f c P e e n r t. b f N i e r u r m m o s - f . c P e e n r t. b f N i 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 f N i e r u m r m o s. - f c P e e n r t. b f N i 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 No.2 16.7 42 9.3 8 22.2 11 -6.4 10 14.0 6 5.6 6 No.3 10.1 64 10.2 23 25.4 35 19.0 13 7.7 16 No.4 11.1 27 14.7 14 25.3 12 7.3 14 No.5 7.2 47 21.0 16 19.0 17 6.0 20 27.1 9 16.2 14 j No.6 21.4 35 26.0 25 15.9 26 -10.2 12 22.7 19 22.9 4 45.6 i 3 No.7 6.4 34 6.8 9 24.3 16 -9.9 12 13.2 10 93.4 7 No.8.. . . 8.3 14 35.2 6 24.5 3 6.9 9 -2.3 3 No.9 13.7 56 10.3 6 20.3 15 20.4 6 37.3 8 No. 10.. 8.4 8 4.0 3 13.8 7 16.8 3 -5.0 4 12.4 2 110.9 3 No. 11 29.0 12 8.4 11 2.2 12 26.8 2 1.3 8 146.6 5 No .12. 24.4 30 19.3 15 24.9 21 17.1 14 15.2 16 10.9 10 12.2 IS 22.4 28 16.7 23 4.3 16 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

106 FEDERAL RESERVE BULLETIN. JANUARY, 192:1. BANKING AND FINANCIAL STATISTICS. DISCOUNT AND OPEN MARKET OPERATIONS OF FEDERAL RESERVE BANKS. VOLUME OF OPERATIONS DURING NOVEMBER. 1922. United States securities purchased. Munic- Total. Bills dis- | t ipal war- Federal reserve bank. co m u b e n a m n te k b d s e . f r o r i I I B o i p ll e s n b m ou a g rk h e t t i , n j ! Bo n n o d t s e s a . nd o C f e i r n n ti d e f e s ic s b a . t t e e d s - ! | [ c r h p a a u n s r t e - s d, Nov 19 e 2 m 2. ber, Nov 19 e 2 m 1. ber, Boston $330,811,292 $29,648,402 $3,481,100 $1,291,210 . $365,232,00! $348,527,045 New York 1,703,058,213 58,712,701 40,417,800 i 9,803,500 j. 1,811,992,214 1, 538,318,774 Philadelphia 251,390,183 6,611,724 13J800 258,136,207 288,992,271 Cleveland 179,572,807 25,117,050 628,000 205,317,857 261,617,152 Richmond 150,202,195 74.5,000 150,947,195 200,050,166 Atlanta 45,776, S48 3,646,764 199,250 200,000 49,822,862 111,240,449 Chicago 188,976,455 15,012,881 4,520,400 5,545,000 214,084,736 250,409,880 St. Louis 108,448,73S 7,515,195 28,400 30,000 116,022,333 151,381,290 Minneapolis...: 12,535,539 2,176,600 150,000 83,000 14,865,139 49.844,098 Kansas City 30,628,842 ""so9,'666' 5,000 37,442,842 68,476,080 Dallas 13,472,283 6,907,252 '425,'566"" 20,804,533 53.515,388 San Francisco 134,902,221 20,622,082 155,524,303 203,418,898 Total: November, 1922 3,155,775,616 175,378,051 51,382,850 ; 17,652,710 I 3,000 3,400,192,227 November, 1921 3,231,270,854 161,998,551 3,525,792,091 11 months ending 9,183, 200 i 122,676,000 \ 663,486 November 30,1922.. 18,767,295,334 1,752,120,698 24,204,964,574 11 months- ending 1,120,217,500 , 2,559,178,210 j 152,832 November 30,1921.. 53,590,561,720 1,304,299,407 58,271,174,029 OS, OSS, 250 3,307,556,557 i 673,095 VOLUME OF BILLS DISCOUNTED DURING NOVEMBER. 1922, BY CLASSES OF PAPER; ALSO NUMBER OF MEMBER BANKS ACCOMMODATED. I Customers' i Member banks' collateral i Bankers' acceptances. paper se- jj nottee s. ; i cured by I • j Commercial Agricul- } Live-stock ; Dollar ex- Federal reserve bank. ! Govern- I Secured by ' PaPer> n- e- s- tural paper.! paper. change. | ment obli- j Government ; Foreign. Domestic. i gations. [ obligations. I Boston $318,500 $132,120,400 , $197,745,401 $373,161 ; $14,500 i. New York 900,509 I1,511,099,300 [ 189,599,878 456,220 I 2,953 I $35,000 Philadelphia... 251,150 I 156,644,050 i 94,147,566 271,095 j. Cleveland 346,984 134,111,450 I $38,000 43,446,000 241,547 I 238,792 Richmond 131,170 131,985,969 1,321,000 14,014,082 2,242,340 71,048 Atlanta 216,136 12,859,650 1 266,056 28,170,436 3,497,617 191,969 Chicago 246,332 ! 136,240,210 ! 58,430 42,331,017 9,985,656 |. S M t. i n L n o e u ap is olis 12 6 1 , , 1 8 6 4 9 4 i i 9 4 4 , , 0 5 0 14 5 , , 9 5 5 2 0 5 ! ! '802,'045' 1 3 1, , 2 4 4 8 2 5 , , 8 6 3 % 3 1 3 , , 4 2 2 9 6 5 , , 0 8 5 1 4 5 i 9 5 3 0 8 , , 5 6 9 8 4 2 I. 225,000 $310,000 Kansas City 53,458 : 25,136,125 i 5,974,296 1,646,387 ! 3,816,799 !. Dallas 275 I 5,757,500 507,151 3,581,392 1,938,887 I 1,548,055 I San Francisco. 88,900 64,166,522 16,802,258 51,569,465 878,859 j 685,064 I 258,187 I 178,943 Total: November, 1922. 2,681,427 1 2,408,641,651 19,794,940 685,308,062 26,253,638 7,558,456 518,187 488,943 i October, 1922... 3,792,661 I 1,495,246,596 21,907,272 610,030,580 28,238,469 I 9,268,977 73,550 437,828 I $2,700 November, 1921, 41,791,530 1,888,859,330 35,352,233 1,177,681,766 56,521,118 22,574,635 640,322 October, 1921... 45,023,385 |1,826,563,751 35,224,090 1,498,064,426 50,197,467 20,665,438 3,848,470 Total reduced to a common Trade acceptances. maturity basis.* Member banks. Total all — ; Federal reserve bank. Foreign. Domestic. classes. Amount. Per t o c t e a n l. t of Nu d m ist b r e ic r t in Accommodated. Nov. 30. Number. Per cent Boston $239,330 $330,811,292 i $419,998,970 13.31 428 230 53.7 New York $822,140 142,213 1,703,058,213 ! 733,050,441 23.23 806 341 42.3 Philadelphia... 76,322 2ol,390yJ83 j 215,979,056 6.84 714 338 47.3 Cleveland 1,150,034 179,572,807 193,852,676 6.14 881 311 35.3 Richmond 436,586 150,202,195 1 150,147,157 4.76 633 289 45.7 Atlanta 574,984 45,776,848 . 210,391,437 6.67 543 230 42.4 Chicago 114,810 188,976,455 i 586,105,077 18.57 1,443 788 54.6 St Louis 557,463 108,448,738 i 135,975,204 4.31 608 211 34.7 Minneapolis... 1,607 12,535,539 96,402,205 3.05 1,014 350 34.5 Kansas City... 1,777 36,628,842 155,452,037 4.93 1,154 330 28.6 Dallas 139,023 13,472,283 I 75,526,072 2.39 863 175 20.3 San Francisco. 274,023 134,902,221 182,895,284 5.80 829 32.1 Total: November, 1922 ] 822,140 3,708,172 3,155,775,616 3,155,775,616 100.00 9,916 3,859 38.9 October, 1922 | 461,300 2,654,172 2,172,114,105 |. 9,918 3,793 38.2 November, 1921. 7,849,920 3,231,270,854 9,836 5,622 57.7 October, 1921 9.681,170 3,489,268,197 9,813 5,572 56.2 1 Total discounts multiplied by ratio of average maturity of bills discounted by each bank to average maturity (8.43) for system. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

JANUARY, 1923. FEDEKAL RESERVE BULLETIN. 107 VOLUME OF BILLS DISCOUNTED DURING NOVEMBER, 1922, BY RATES OF DISCOUNT CHARGED; ALSO AVERAGE RATES AND MATURITIES. Federal reserve bank. 4 per cent. 4J per cent. Total. r A at v e e r (3 ag 65 e - m A a v t e u r r a i g ty e . day basis). Per cent. Days. Boston $330,811,292 $330,811,292 4.00 10.71 New York.. 1 703 058 213 1 703 058,213 4.00 3.63 Philadelphia $251,390,183 251,390,183 4.50 7.25 Cleveland . . 179 572 807 179 572 807 4.50 9.10 Richmond . 150 202 195 150,202,195 4.50 8.43 Atlanta. 45 776 848 45 776 848 4.50 38.76 Chicago.... . 188,976 455 188,976,455 4.50 26.16 St. Louis 108,448,738 108,448,738 4.50 10.57 Minneapolis. . 12,535,539 12,535,539 4.50 64.86 TCansasCity 36,628,842 36,628,842 4.50 35.79 Dallas... 13 472 283 13,472,283 4:50 47.28 San Francisco 134,902,221 134,902,221 4.00 11.43 Total: November, 1922. 2,168,771,726 987,003,890 3.155,775,616 4.29 8.45 October, 1922 1,417,609,155 754,504,950 2,172,114,105 4.34 9.99 VOLUME OF BANKERS' AND TRADE ACCEPTANCES PURCHASED DURING NOVEMBER, 1922, BY CLASSES. Bankers' acceptances. Trade acceptances. Total. T m ot o a n l r m ed a u tu c r e i d t y t o b a a s c i o s m .' - Federal reserve bank. bills. Foreign. [ Domestic. ex D ch o a ll n a g r e. Total. Foreign. Domestic.| Total. purchased. Amount. P o e f r to c t e a n l t . Boston $16,982,432 $12,165,754 $500,216 $29,648,402 $29,648,402 $15,707,210 9.0 New York 41,659,411 12,947,085 3,288,000 57,894,496 $818,205 $318,205 58,712,701 23,313,858 13.3 Philadelphia 4,948,955 1,387,769 275,000 6,611,724 6,611,724 12,301,328 7.0 Cleveland 20,544,855 3,822,775 695,000 25,062,630 $54,420' '54,'420 25,117,050 45,071,141 25.7 Richmond 210,000 535,000 745,000 745,000 1,296,524 .7 Atlanta 2,862,864 783,900 3,646,764 3,646,764 3,744,245 2.1 Chicago 11,022,880 3,870,001 150,000 15,042,881 15,042,881 25,557,013 14.6 St. Louis 5,687,152 1,628,043 200,000 7,515,195 7,515,195 12,869,806 7.3 Minneapolis Kansas City 809,000 809,000 809,000 1,371,373 I .8 Dallas 5,374.975 1,532,277 6,907,252 6,907,252 12,316,768 7.0 San T F o ra ta n l c : i s N co ov., 1922.. 1 1 2 4 3 , , 4 7 4 3 6 9 , , 1 6 4 6 1 5 "45 5 , , 4 9 4 6 8 7 , , 6 08 84 0 5,2 1 7 6 5 7 , , 8 6 1 0 6 0 "1 2 7 0 47 ,5 4 8 6 0 4, , - 8 1 2 6 1 5 "8 4 5 1 9 ^ , 2 4 6 6 1 6 1 ! 547420~! I 9 4 1 1 3 , , 2 8 6 8 1 6 1 2 7 0 5 , , 6 3 2 7 2 8 , , 0 0 8 5 2 1 ^ _ 1 2 7 1 5 , , 8 3 2 7 8 8 1 , 7 0 8 5 5 1 _ 1 1 0 2 0 . . 5 0 Oct., 1922.. 126,389,315 73,251,328 6,206,053 205,846,696 625,515 I 143,325 : 768,840 206,615,536 N Oc o t v ., . . 1 1 9 9 2 2 1 1 . . . 1 8 1 7 4 , ,4 9 5 1 2 2 , , 1 6 7 9 3 2 3 44 7 , , 2 0 1 0 1 1 , , 3 4 6 6 9 2 1 6 0 , , 9 3 5 0 7 7 , , 2 0 6 7 4 1 1 1 3 6 9 1 , , 0 82 8 0 1 , , 7 3 0 2 6 5 177,845 i ; 177,845 1 1 6 3 1 9 , , 9 0 9 8 8 1 , , 5 3 5 2 1 5 1 Total purchases multiplied by ratio of average maturity of bills purchased by each bank to average maturity (43.41) for system. VOLUME OF ACCEPTANCES PURCHASED DURING NOVBMBEB, 1922, BY RATES OF DISCOUNT CHARGED; ALSO AVERAGE RATES AND MATURITIES. Federal reserve bank. 3 per cent. 3& per cent. 3} per cent. 13 j per cent, j 3J per cent., 3J per cent.! 3} per cent. 3I per cent. $190,000 SI -526,396 $3,233,533 $120,679 $10,366 $16,483 $105,928 7,099 11,255 539,967 Philadelphia 501 850 $3,915 .. 1,500 1,618,673 Atlanta 808,486 38,625 j. 1 457 531 St. Louis 25,000 ! Kansas City j Dallas San Francisco 4,541,118 Total* November, 1922 120,679 10,366 16,483 105,928 42,540 | 197,699 1,564,151 12,701,158 October, 1922 176,125 629,002 48,742,755 23,139,046 45,816,496 1 18,871,324 23,036,490 11,721,968 i 1 Average Average Federal reserve bank. 4 per cent. 4J per cent, j 4J per cent. 4| per cent. 4J per cent. Total. (36 ra 5 t - e day tu m ri a t - y. i basis). Per cent. Bays. $17,448,118 $6,064,458 $1,077,687 $108,210 $29,648,402 4.04 23.00 56,276,184 250,375 556,160 818,205 58,712,701 4.08 17.24 4,332,468 1,616,303 87,500 $73,603 6,611,724 4.11 80.76 15,629,576 6,925,481 795,506 138,999 3,400 25,117,050 4.11 77.89 489,000 146,000 110,000 745,000 4.16 75.54 1,574,993 1,263,285 3,646,764 4.24 44.57 7,914,893 5,476,438 155,394 15,042,881 4.11 73.75 6,769,287 600,523 120,385 7,515,195 4.07 74.34 809,000 809,000 4.56 73.58 Dallas 6,077,803 792,859 36,590 6,907,252 4.07 77.40 San Francisco 6,691,853 8,522,938 779,371 40,945 45,857 20,622,082 4.11 45.95 Total: November, 1922 . 123,204,175 30,395,375 3,608,593 253,547 3,157,957 175,378,051 4.10 43.41 October, 1922 25,429,905. 3,187,138 467,564 21,296 5,370,727 1206,615,536 3.68 46.23 1 Includes $5,700 of acceptances purchased at 4i per cent. 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

108 FEDERAL BESERVE BULLETIN. JANUARY, 1923. HOLDINGS OF EARNING ASSETS, BY CLASSES. AVERAGE DAILY HOLDINGS OF EACH CLASS OF EARNING ASSETS. EARNINGS THEREON, AND ANNUAL BATES OF EARNINGS DURING NOVEMBER, 1922. Average daily holdings of— Earnings on- Annual rate of earnings on— Federal reserve bank. A of l l e c a l r a n s i s n e g s co D un is t - ed ch P a u s r e - d U S n ta it t e e d s cla A o s l f s l es co D un is t - ed ch P a u s r e - d U S n ta i t t e e s d cla A o s l f s l es 'co D u i n s t - ed ch P a u s r e - d U S n ta i t t e e s d assets. bills. bills. se ti c e u s r . i- e a a s r s n e i t n s g . bills. bills. se ti c e u s r . i- earning bills. bills. se ti c e u s r . i- Perct. Perct. Per ct. Per ct. Boston $116,235,113 $62,821,378|S30,662,397i$22 751,3381$366,277 $206,727 $90,204 $69,346 3.~i 4.00 3.58 3.71 New York.... 238,861,102 161,976,02468,835,942 58;049,136: 902,115 532,626 195,035 174,454 3.811 4.00 3.45 3.67 Philadelphia- 102,000,412 53,514,51517,601,244 884,653! 351,598 197,864 50,223 103,511 4.19; 4.50 3.47 4.07 Cleveland 126,908,505 46,374,419 45,956,839 ,577,247! 423,816 171,519 140,806 111,491 4.06 4.50 3.72 3.92 Richmond 48,898,825 42,953,207 2,161,385 784,233 172,788 158,868 7,551 6,369 4.30 4.50 4.25 2.05 Atlanta 53,549,673 36,170,99513,258,6471 4,120,031 180,305 129,335 41,413 9,557 4.24 4.50 3.93 2.92 Chicago 136,357,836 82,142,108 13,767,355! 40,448,373 459,293 303,906 39,022 116,365 4.10! 4.50 3.45 3.50 St. Louis 62,877,033 29,775,22710,621,808 22,479,998 216,003 110,131 32,735 73,137 4.18 4.50 3.75 3.96 Minneapolis.. 33,847,324 21,342,013 ....I 12,478,411 120,385 80,897 39,387 4.33 4.61 3.84 Kansas City.. 70,295,591 28,903,856 571,9671 40,819,768 241,840 107,994 2,145| 131,701| 4.19 4.55 4.56 3.93 Dallas 48,724.262 16,878,97518,863,412 12,981,875 157,835 63,841 59,537 34,4571 3.94 4.60 3.84 3.23 San Francisco. 121,569,917 40,972,88137,677,595! 42,919,441 388,180 135,138 108,597 144,445i 3.89! 4.01 3.51 4.10 Total: Nov., 1922 1,210,125,593) 623,825,598 259,978,591 [326,294,504 3,980,435 2,198,846 767,2681,014,220 4. OOi 4.29 3.59 3.78 Oct., 1922 1,184,700,479 484,443,599 251,618,886 448,615,722 3,902,715 1,794,655!692,798!1,415,176' 3.881 4.36 3.24 3.71 Nov., 1921 1,520,283,2451,232,575,771 78,867,348 208,579,059 6,237,929 5,459,506J 318,5281 458.8031 4.99! 5.39 4.91 2.68 Oct., 1921 1,640,739,5111,376,914,379 56,196,411 207,624,721 7,318,159J6,658,343 240,400 419,396: 5.25! 5. 5.04 2.38 NOTE.—The figures in the first, fifth, and ninth columns include average daily holdings of municipal warrants, earnings, and annual rate of earnings thereon, as follows: Minneapolis, $26,900, $101, and 4.56 per cent. HOLDINGS OF DISCOUNTED BILLS, BY CLASSES. [End of November figures. In thousands of dollars.] i ! Custom- c M o e ll m at b e e ra r l b n a o n t k e s s ' . Bankers' acceptances. acce T p r t a a d n e ces. i ers' paper secured Com- Agricul- \ Live- Federal Reserve Bank. Total. G o m o b b v l e i y e g n r a t n - - G S o m e o b c b v l e u i y e g n r r a e t n - d - se O w c t i u h s r e e e r d - . n m . p e a e r p c . e i r a s l . p t a u p r e al r . i . p s a t p o e ck r. ! F e o ig r_ n m D es o t - ic. | ch D l e a a o x n r l - g - e e F i o gn r- . m D es o t - ic. tions. tions. Boston 77,121 716 27,272 ' 48,021 831 19 ; 262 New York 137,022 447 108,487 : 27,323 466 i 35 75 183 Philadelphia.. 57,317 239 38,397 18,090 437 i 154 Cleveland 54,606 660 33,716 15 j 17,901 690 : 566 I 1,058 Richmond 47,217 360 19,510 528 i 20,662 5,225 i 146 I 786 Atlanta 37,513 311 4,108 152 I 24,958 7 027 276 I 681 Chicago 93,109 339 33,752 27 ; 28,842 29,737 ! 412 St. Louis 31,261 209 15,294 ; 11,214 3,436 j 150 ! 73 885 Minneapolis... 21,883 15 1,896 483 ; 4,327 10,108 4,844 210 Kansas City... 28,858 111 7,64ft ! 7,007 4,960 9,130 4 Dallas 15,056 11 1,068 254 I 2,820 2,518 I 8,371 14 San Francisco. 49,133 117 20,599 8,047 14,085 3,612 j 1,983 247 114 329 Total: Nov. 29,1922 ! 650,096 3,535 311,745 9,506 225,250 69,047 | 25,485 ; 282 193 : 75! 4,978 Oct. 31,1922 1 576,435 3,265 265,777 10,266 188,777 74,804 28,533 ; 74 275 297; 4,364 Nov. 30,1921 1,182,301 ! 48,896 427,464 | 17,350 486,313 139,164 ' 51,715 55 392 10,936 Oct. 31,1921 1,313,027 49,485 412,951 ! 17,553 i 621,900 141,923 ! 57,154 570 304 25 11,108 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

JANUARY, 1923. FEDERAL RESERVE BUT,T,KTIN. 109 HOLDINGS OF BANKERS' AND TRADE ACCEPTANCES PURCHASED OR DISCOUNTED, BY CLASSES OF ACCEPTANCES. [End of November figures. In thousands of dollars.] All classes. Bankers' acceptances. Trade acceptances. Federal reserve bank. Pur- Dis- Total. i c n h o as p e e d n f c o o r u m n e te m d - Total. Foreign. Do ti m c. es- e D xc o h l a la n r ge Total. ! Foreign. market. ber banksl Boston I 29,093 28,831 262 28,831 15,963 10,806 2,062 262 262 New York ; 56,674 56,375 299 54,963 42,588 9,732 2,643 1,711 1,383 328 Philadelphia i 19,479 19,325 154 19,325 11,456 7,579 I 290 154 154 Cleveland i 55,349 54,291 1,058 54,187 41,556 11,151 I 1,480 1,162 1,162 Richmond ; 2,969 2,183 786 2,183 670 1,513 I 786 786 Atlanta i 13,181 12,500 681 12,500 3,820 681 681 Chicago ! 12,689 12,277 412 12,277 9,680 2,349 248 412 | 412 St. Louis | 12,543 11,585 958 11,658 8,302 3,136 220 i 885 ! 885 Minneapolis I 210 210 210 ; 210 Kansas City j 406 402 4 402 I 402 4 1 4 Dallas I 21,167 21,153 14 21,153 ! 14,620 5,144 1,389 14 ! 14 San Francisco I 40,994 40,304 40,624 i 30,271 10,052 301 370 ! 329 Total: Nov. 29,1922 | 264,754 258,103 i 183,786 65,684 8,633 ! 6,651 1,424 5,227 Oct. 31,1922 | 263,178 257,186 j 181,079 67,308 8,799 i 5,992 1,336 4,656 Nov. 30, 1921 i 84,353 73,271 20,019 4,263 ! 11,082 i 146 10,936 Purchased in open market: i Nov. 29,1922 ' 259,226 257,628 183,504 ! 65,491 ! 1,598 ' 1,349 249 Oct. 31,1922 i 258,165 256,834 181,005 j 67,033 | 8,796 : 1,331 1,039 292 Nov. 30,1921 72,954 72,824 48,934 ! 19,627 | 4,263 ' 130 130 Discounted for member banks: i Nov. 29,1922 ' 5,528 475 , 282 i 193 5,053 75 4,978 Oct. 31, 1922 1 5,013 352 | 74 | 275 3 ; 4,661 297 4,364 Nov. 30, 1921 j 11,399 447 i 55 392 10,952 16 10,936 i HOLDINGS OF BANKERS' ACCEPTANCES PURCHASED OR DISCOUNTED, BY CLASSES OF ACCEPTING INSTITUTIONS: [End of November figures. In thousands of dollars.] Member banks. Non- Branches Federal reserve bank. Total. Non j ! ba b m n a e k n m s k i b a n e n g r d P b r a i n v k a s te . o a f g a e fo n n r d c e i i e g s n National. „n aVti-o°n ali, j c t o i£rp ns ora- banks. Boston 28,831 15,173 9,532 3,038: 464 624 New York 54,963 18,368 17,488 7,755 8,103 3,249 Philadelphia.. 19,325 7,557 6,950 2,100 1,512 1,206 Cleveland 54,187 16,716 20,268 6,168 7,614 3,421 Richmond 2,183 1,293 526 361 Atlanta 12,500 1,663 6,446 4,391 Chicago 12,277 5,687 5,915 571 104 St. Louis 11,658 3,915 5,227 1,472 584 460 Minneapolis... Kansas City... 402 402 Dallas 21,153 7,356 8,284 2,736 1,545 1,232 San Francisco. 40,624 15,939 11,169 4,547 4,448 4,521 Total: Nov. 29,1922 258,103 94,069 91,805 32,778 • 24,634 14,817 Oct. 31,1922 257,186 96,182 | 94,238 32,148 I 20,734 13,884 Nov. 30,1921 73,271 30,289 I 23,579 8,942 I 4,960 5,501 Purchased in open market: Nov. 29,1922 257,628 93.736 I 91,790 32,778 i 24,629 14,695 Oct. 31,1922 256,834 96,075 I 94,039 32,144 I 20,705 13,871 Nov.30,1921 72,824 30,208 23,282 8,873 i 4,960 5,501 Discounted for member banks: NOT. 29,1922 475 333 15 5 122 Oct. 31,1922 352 107 199 29 13 Nov. 30,1921 447 81 297 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

110 FEDERAL KESEKVE BULLETIN. JANUARY, 1923. BANKING CONDITIONS, BY FEDERAL RESERVE DISTRICTS. Between November 15 and December 20 increased in all the districts except Boston, loans and discounts of reporting member Cleveland, Richmond, Dallas, and San Franbanks in leading cities increased by $48,000,000. cisco, the largest increase, amounting to Increases are shown for the New York, San $62,000,000, being shown for the New York Francisco, Cleveland, Richmond, St. Louis, and City banks. Time deposits also increased, the Kansas City districts, while the other districts largest addition, amounting to $44,000,000, show reductions, the largest of which, amount- being shown for the Cleveland district. Meming to $20,000,000, is shown for Boston. As ber banks in New York City show a reduction a result of the Treasury operations on Decem- of $26,000,000 in time deposits. ber 15, member banks in all the districts show Accommodation at the reserve banks was increases in their holdings of Government reduced by $52,000,000 during the period, securities, the aggregate increase amounting smaller figures being shown in eight of the to $273,000,000, of which $116,000,000 is re- twelve districts. The reduction for the memported for New York City members alone. ber banks in New York Citv alone was$61,000,- Only moderate changes are shown in member 000, bank holdings of corporate obligations, New Following is a table showing the increases York City banks showing a reduction of and decreases in the principal assets and $11,000,000 and Chicago banks an increase of liabilities of reporting member banks for the $15,000,000 for the period. Demand deposits five weeks under review: CHANGES IN PRINCIPAL RESOURCES AND LIABILITIES OF REPORTING MEMBER BANKS I> EACH FEDERAL RESERVE DISTRICT BETWEEN NOVEMBER 15 AND DECEMBER 20, 1922. United States Other bonds, Accommodad L i o s a c n o s u a n n ts d . G s o e v c e u r r n it m ie e s n . t s s t e o c c u k r s it i a e n s d . d D e e p m os a i n ts d . de T p i o m si e ts. t r i e o s n e r o v f e F b e a d n e k r s a . l Federal reserve district. In- De- In- De- In- De- In- De- In- De- In- Decrease. crease. crease. crease. crease. crease. crease. crease. crease. crease. crease. crease. Boston 20 6 1 15 4 10 27 126 6 n 24 60 New York City. .. . 26 4 11 1 6 8 1 11 6 9 2 1 26 6 5 1 Cleveland 27 25 13 15 44 14 5 1 2 3 9 Atlanta 4 8 1 13 43 16 2S 6 5 21 29 15 26 4 3 St. Louis 10 8 1 16 1 Minneapolis 6 7 2 Kansas City 5 2 3 I 5 Dallas 8 12 12 o 1 San Francisco 20 13 6 25 7 6 Total 48 273 21 60 35 52 1 Changes in the condition of Federal reserve with deposits showing but moderate changes, banks between November 22 and December 27 the reserve percentage of the reserve banks were caused partly by the requirements of holi- declined from 76.7 per cent on November 22 day trade. Total cash reserves decreased by to 72.1 per cent on December 27. Reduced $64,800,000, smaller figures being shown for all ratios are shown for every Federal reserve bank, Federal reserve banks except Cleveland, At- except Atlanta. lanta, and San Francisco. These decreases Changes in discounts at the reserve banks were caused largely by the demand for gold for the period were relatively slight. The and currency for Christmas presents and New York reserve bank reported a reduc- Christmas shopping. This demand is also tion of $16,200,000, the Atlanta bank one of reflected in an increase of $164,700,000 in Fed- $7,500,000, smaller reductions being shown eral reserve note circulation, an increase in also for the Minneapolis and Dallas banks. On which every district except Dallas particithe other hand, the largest increase, amountpated. As a consequence of the reduction in ing to $11,800,000, is shown for the Richmond reserves and the increase in note circulation, bank, and smaller increases were reported Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

JANUARY, 1923. FEDERAL EESEKVE BULLETIN. Ill for the remaining seven banks. Government Following is a table showing the increases security holdings of the reserve banks in- and decreases of the principal items in the creased by $162,800,000 during the five weeks, Federal reserve bank statement between Nolarger figures being shown for all banks except vember 22 and December 27: Atlanta and Dallas. CHANGES IN PRINCIPAL RESOURCES AND LIABILITIES OF EACH FEDERAL RESERVE BANK BETWEEN NOVEMBER 22 AND DECEMBER 27, 1922. [Amounts m millions of dollars.] Total reserves. Discounts. G s o e v c e u r r n it m ies e . nt Total deposits. Fe c d i n e rc r o a u t l e l a s r t e i i s n o e n r . ve Ee c s e e n n i r a e g e p . er- Federal reserve bank. In- De- In- De- ' In- De- In- De- In- De- Nov. Dec. crease. crease. crease. crease. crease. crease. crease. crease. crease. crease. 22. 27. 7.2 6.3 12.8 1.8 17.6 68.3 62.9 New York.. . . 37.6 16.2 67.2 18.6 18.8 82.9 80.0 Philadelohia 2.2 6.3 12.4 1 6 21 5 '• 76.7 70.7 18.1 8.1 5.0 9.9 29 8 73.5 70.8 17 0 11. 8 | 4.9 .9 6.5 73.1 60.2 7.3 7.5 1.5 1.1 74.8 76.1 7.4 3.2 41.7 11.4 32.0 1 82.3 76.1 2.1 9.4 8.0 .3.4 i 69.8 59.8 .3 2.0 .1 2 9 75.9 73.8 3.9 1.9 1.0 3.1 3.5 62.4 57.3 Dallas 7.0 1.0 1.4 3.2 1.0 61.3 56.7 San Francisco 1.5 1.0 9.3 .2 24.2 70.8 66.7 Total 64 8 15.7 162.8 10.3 164. 7 76.7 72.1 CASH RESERVES, TOTAL DEPOSITS, FEDERAL RESERVE NOTE CIRCULATION, AND RESERVE PERCENTAGES FOR DECEMBER AND NOVEMBER, 1922. [Daily averages. Amounts in thousands of dollars.] Federal reserve notes Total cash reserves. Total deposits. ' in circulation. Eeserve percentages. Federal reserve bank. December. November. December. November. December. November. December. November. 217 540 213,006 126,318 127,020 205,408 194,925 65.6 66.2 1,040,668 1,079,813 717,518 724,217 600,336 594,222 79.0 81.9 Philadelphia. 240.579 23(1,862 111,717 111,875 218,185 203,403 72.9 75.1 277 021 274,568 148,009 147,638 245 797 228,591 70.3 73.0 110 658 i18,164 60,257 61,703 101,149 97,106 68.6 74.4 140 169 135,483 54,870 54,690 126 993 125,294 77.1 75.3 540 243 549,879 269,748 265,787 416,250 397,490 78.8 82.9 St. Louis . 111 677 113,895 71,464 07,849 95,770 94,574 66.8 70.1 SI 772 80,631 50,267 48,801 58,661 57,120 75.1 76.1 89,825 93,03<i 85,357 83,313 70,460 68,601 57.7 61.2 Dallas . 53 184 60,207 55,819 57,302 39,559 41,858 55.8 60.8 San Francisco 262,683 253,165 140,083 139,827 236,947 221,615 69.7 70.0 Total- 1922 3,166,019 3,208,752 1,891,427 1,890,022 2,415,515 2,324,865 73.5 76.1 1921 2,994,982 2,964,419 1,755,226 1,732,504 2,416,090 2,402,442 71.8 71.7 1920 . . 2,221,573 2,182,795 1,821,740 1,830,011 3,342,520 3,327,632 !«.7 M3.7 1919 2,149,653 2,185,149 1,990,221 2,013,944 2,956,470 2,812,247 '45.7 M6.8 1 Calculated on basis of net deposits and Federal reserve notes in circulation. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

112 FEDERAL RESERVE BULLETIN. JANUARY, 1923. CONDITION OF FEDERAL RESERVE BANKS. RESOURCES AND LIABILITIES OF EACH FEDERAL RESERVE BANE ON WEDNESDAYS, NOVEMBER 29 TO DECEMBER 27, 1922. RESOURCES. [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 i e s. - K C a i n t s y a . s Dallas. F c S i r s a a c n n o - . Gold and gold cer- I tificates: Nov. 29 303,219 19,139 168,961 6,420 13,826 5,058 5,629 41,626 3,217 7,645 2,770 9,760 19,168 Dec.6 298,094 19,138 138,893 27,254 13,798 5,206 5,628 45,407 3,218 7,650 2,790 9,850 19,262 Dec. 13 304,810 17,471 145,468 26,954 13,593 5,587 5,659 47,171 3,168 7,629 2,735 10,065 19,310 Dec. 20 291,081 16,616 129,803 26,396 13,312 5,493 5,567 51,533 2,844 7,589 2,687 10,060 19,181 Dec. 27 273,825 15,984 121,730 19,256 13,338 5,549 5,542 50,724 2,443 7,581 2,661 10,046 18,971 Gold settlement fund—F. R. Board: Nov. 29 644.959 33,485 224,522 45,495 65,678 31,912 23,218 92,537 17,940 24,810 30,364 14,148 40,850 Dec.6 616,574 47,871 194,562 21,400 67.007 34.118 25,770 83,887 25,624 30,024 30,176 11,551 44,584 Dec. 13 596,851 43.937 190,228 25.861 63,963 27,904 25,639 90,996 22,457 22,790 32,781 8,081 42,214 Dec. 20 582.494 33,124 223,249 13,871 68,678 23,706 25.552 80,121 16,969 25,616 25,014 13,833 32,761 Dec. 27 509,580 28,822 186,672 12,909 84,638 14,583 24,769 47,795 17,433 I 22,493 29,405 12,657 27,404 Gold with F. R. agents: Nov.29 2,048,084 127,708 659,850 165,487 181,157 66,319 96,625 76,529 i42,701 53,702 25,487 183,021 Dec.6 2,045.210 125.191 659,653 169.761 181,479 64,759 100,961 360,835 73.853 44,051 52,908 25.994 185.765 Dec. 13 2,103.069 141,718 659,409 172,299 181,226 67,899 100,644 384.314 76.519 43,736 52,628 25,404 197,273 Dec. 20 2,117,688 143.119 659,225 180,371 181,466 66,118 99.631 390,117 74,513 44,822 50,743 22,444 205,119 Dee. 27 2,198,846 150,228 709,059 186,110 183,0S6 65,003 103,668 405,216 72,522 46,372 52,250 22,587 202,745 Gold redemption fund: Nov.29 76,596 15,460 12,257 5,081 4,685 5,186 2,209 19.010 3.110 2,834 1,722 1,398 3,644 Dec.6 85.914 17,057 10,738 6,604 3,716 5,776 2,250 26,398 3,143 3,130 2,182 1,243 3,677 Dec. 13 56,493 9,645 9.156 4,030 4,046 3,442 1,701 11,239 2,749 3,004 1,978 1,233 4,270 Dec. 20 54,647 12,414 7,627 5.994 4,127 3,922 2,091 3.996 3,088 3,525 2,336 1,484 4,043 Dec. 27 58,188 9,074 10,919 4,925 4,764 4,061 2,489 7,542 2,345 3,593 2,323 1,789 4,364 Total gold reserves: Nov.29 3,072,858 195,792 1,065,590 222,483 265.346 108,475 127,681 522,671 100,796 77,990 88,558 50,793 246,683 Dec.6 3,045,792 209.257 1,003.846 225.019 266,000 109.859 134,609 516.527 105.838 84,855 88.056 48,638 253,288 Dec. 13 3.061.223 212.771 1.004.261 229.144 262.828 104.832 133.643 533,720 104,893 77,159 90,122 44.783 263,067 Dec. 20 3,045,910 205.273 1,019.904 226,632 267.583 99.239 132.841 525,767 97,414 81,552 80,780 47,821 261,104 Dec. 27 3,040,439 204,108 l,028,3S0 223,200 285,826 89,196 136,468 511,277 94,743 80,039 86,639 47,079 253,484 Legal-tender notes, silver, etc.: Nov.29 129.952 12,605 31.983 14,535 8,135 9.769 5,730 20,159 10,241 1,010 4,863 6,808 4,114 Dec.6 127,189 10.736 32.162 14.635 6,892 8.910 6,621 20.876 10.289 712 4,668 6,590 4,098 Dec. 13 123.665 10,503 29.742 14,613 5.898 9,113 6.315 21.006 11,048 706 4,314 6,366 4,041 Dec. 20 110,799 8.842 26,292 13.607 5,565 8.353 5,888 19,679 8,836 . 872 3,245 6.332 3,288 Dec. 27 108,398 7.937 27,602 13,887 5,050 9,329 4,936 18,575 8,158 3,160 6,092 2,869 Total reserves: Nov.29 3,202,810 208,397 1,097,573 237,018 273,481 118,244 133,411 542,830 111,037 79,000 93,421 57,601 250,797 Dee. 6 3,172,981 219,993 1,036,008 239,654 272,892 118,769 141,230 537,403 116,127 85,567 92,724 55,228 257,386 Dec. 13 3,184,888 223,274 1,034,003 243,757 268,726 113,945 139,958 554 726 115,941 77,865 94,436 51,149 267,108 Dec. 20 3,156,709 214,115 1,046,196 240,239 273,148 107,592 138,729 545,446 106,250 82,424 84,025 54,153 264,392 Dec. 27 3,148,837 212,045 1,055,982 237,087 290,876 98,525 141,404 529,852 102,901 80,842 89,799 53,171 256,353 Bills discounted: Secured by U. S. Government obligations— Nov.29 315,280 27,988 108,934 38,636 34,376 19,870 4,419 34,091 15,503 1,911 7,757 1,079 20,716 Dec.6 374,409 25,068 177,085 39,346 24,792 19,162 4,209 39,870 13,839 1,985 9,893 753 18,407 Dec. 13 344,793 22,702 160,669 36,955 31,241 20,875 3,937 31,787 13,451 2,091 9,136 776 11,173 Dec. 20 314,851 23,543 126,029 40,545 28,459 20,496 3,868 30,788 13,696 2,156 11,751 1,523 11,997 Dec. 27 316,495 25,036 125,487 39,618 28,147 25,024 3,036 29,106 16,549 2,177 9,767 992 11,556 Other bills discounted— Nov.29 334,816 49,133 28,088 18,681 20,230 27,347 33,094 59,018 15,758 19,972 21,101 13,977 28,417 Dec.6 330,536 43,289 30,961 18,334 22,345 25,790 27,721 62,715 15,952 19,460 21,833 13,777 28,359 Dec. 13 314,965 40,439 23,213 15,873 22,375 28,320 26,756 56,366 14,258 19,208 22,209 13,718 32,230 Dec. 20 300,707 36,986 16,327 13,151 22,371 30,939 28,194 53,002 15,099 19,275 22,315 13,955 i29,093 Dec. 27 313,390 44,935 19,323 14,020 22,534 31,813 26,632 58,994 13,638 18,902 20,669 13,208 I28,722 Bills bought in open market: Nov.29 259,226 28,831 56,375 19,325 54,291 2,183 12,500 12,277 11,585 402 21,153 40,304 Dec.6 266,827 28,602 58,925 19,413 60,181 2,037 11,592 11,491 12,439 402 22,942 38,803 Dec. 13 262,572 28,365 51,224 20,255 6i;568 1,969 11,386 8,553 12,660 402 24,827 41,363 Dec. 20 251,728 27,100 41,225 21,655 58,975 1,659 11,608 10,168 12,680 602 24,959 41,097 Dec. 27 246,293 25,706 45,789 22,817 53,302 1,614 10,579 11,762 12,623 402 23,397 38,302 TJ. S. bonds and notes: Nov.29 162,336 5,911 28,853 23,987 11,852 1,241 163 6,309 16,765 9,759 26,925 2,951 27,617 Dec.6 169,413 5,912 35,264 23,987 11.896 1,241 544 7,014 16,765 9,594 26,925 2,654 27,617 Dec. 13 170,020 5,466 36,173 23,987 11,896 1,241 165 6,347 16,765 10,385 27,325 2,653 27,617 Dec. 20 174,958 6,395 39,518 24,096 11,896 1,241 179 6,435 16,767 10,608 27,577 2,629 27,617 Dec. 27 179,192 7,282 41,497 24,325 11,896 1,241 143 7,270 16,765 11,109 27,418 2,629 ! 37,617 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

JANUARY, 1923. FEDERAL RESERVE BULLETIN. 113 RESOURCES AND LIABILITIES OF EACH FEDERAL RESERVE BANK ON WEDNESDAYS, NOVEMBER 29 TO DECEMBER 27, 1922—Continued. RESOURCES—Continued. [In thousands of dollars.] Total. Boston. Y N o e r w k. ! i d P e h l i p l h a i - a . C l l a e n ve d - . m R o ic n h d - . Atlanta, Chicago Lo S u t. is. M ap i o n l n is e . - K C a i n ty sa . s Dallas. c F S i r s a a c n n o - . U. S. certificates of indebtedness: One-year certificates (Pittman Act)— Nov. 29 1 23,500 1,250 5,500 1,500 I000 1,960 1,499 2,167 2,071 1,500 1,321 1,900 1,832 Dec. 6 1 21,500 1,250 4,500 1,500 1,000 1,960 1,499 2,167 1,571 1,500 1,321 1,900 1,332 Dec. 13 ! 18,500 j 1,250 4,000 ] 1,000 1000 1,360 999 2,167 1,571 1,500 1,321 1,000 1,332 Dec. 20 14,000 ' 750 3,500 ' 500 500 1,360 999 1,667 571 1,000 821 1,000 1,332 Dec.27 12,000 : 750 3,000 ! 500 500 1,360 11 1,667 571 500 821 500 1,332 Other certificates— Nov. 29 118,625 | 12,564 i 24,590 j 4,148 13,833 2,031 31,477 2,874 499 10,946 8,310 7,353 Dec.6 120,889 12,357 I 24,963 I 4,148 13,823 2,031 33,580 2,874 499 10,951 8,310 7,353 Dee. 13 118,718 ! 12,144 i 23,143 i 4,148 13,823 2,031 . 33,740 2,780 499 10,951 8,310 7,149 Dec. 20 242,282 J 24,069 ; 85,450 j 10,747 17,827 i 2,000 2,031 ! 55,726 8,780 1,499 13,694 8,310 12.149 Dec.27 266,691 ! 24,054 ; 72,190 ! 17,750 19,827 6,000 2,031 ! 70,452 13,781 2,499 12,647 8,310 17.150 Municipal warrants: Nov.29 24 ! Dec.6 26 I Dec.13 34 ! Dec. 20 26 Dec.27 10 i Total earning assets: Nov.29.; 1,213,807 i 125,677 252,340 ! 106,277 1135,582 I52,601 53,706 145,339 i64,556 j33,665 68,452 49,373 | 126,239 Dec.6 1,283,600 j 116,478 331,698 i 106,728 !134,037 50,190 47,596 156,837 I63,440 I33,064 71,325 50,336 I 121,871 Dec. 13 il, 229,602 ! 110,366 '298,422 j 102,218 I141,903 !53,765 45,282 138,980 j61,485 33,709 71,344 51,284 120,864 Dec. 20 11,298,552 I 118,843 1312,049 ! 110,694 1;40,028 i57,695 46,879 157,786 :67,593 !34,564 76,760 52,376 123,285 Dec.27 1,334,101 !127,763 | 307,286 I 119,030 136,206 !67,052 42,920 179,251 S73,927 > 35,227 71,724 49,036 124,679 Bank premises: Nov.29 46,282 | 5,252 | 10,325 ! 624 6,882 l 2,571 1,988 7,766 • 971 ; 1,020 5,136 2,094 1,653 Dec.6 46,394 : 5,251 | 10,325 624 6,937 1 2,571 1,997 | 7.765 | 971 ! 1,020 5,136 2,094 1,703 Dec. 13 46,455 | 5,251 I 10,325 i 639 6,970 ! 2,571 2,007 7.766 ' 971 j 1,020 5,136 2,094 1,705 Dec. 20 47,181 ! 5,251 ! 10,744 : 639 ' 7.042 ' 2,571 2,108 7,781 ! 971 1,042 5,169 2,095 1,768 Dec.27 47,227 ! 5,251 ' 10,760; 639 : 7.043 ! 2,571 2,110 | 7,781 971 1,057 5,169 2,095 1,780 5 per cent redemption fund against F. R. bank notes: Nov.29 3,130 : 422 ' 2/4 250 123 468 665 103 i 196 300 146 i 94 Dec.6 2,780 422 j 224 75 98 408 665 103 ' 196 200 146 ' 94 Dec. 13 2,680 1 422 i 199 75 98 468 : 665 »03 196 I 200 146 ! 19 D D e e c c . .2 2 7 0 2 2 , , 6 5 2 2 5 0 : 4 4 2 2 2 2 I 1 1 4 7 9 4 7 7 5 5 , 8 8 9 9 j 6 6 8 8 4 4 6 6 8 8 ' ' 6 6 6 6 5 5 1 2 0 3 3 : ; 1 1 9 9 6 6 2 20 0 0 0 | ! 1 1 4 4 6 6 ! j 1 1 9 ? Uncollected items: Nov.29 599,826 49,886 !124,770 49,398 59,319 '55,988 22,785 I 81,852 37,916 16,541 40,888 : 25,083 j 35,400 Dec.6 660,119 60,665 I 139,803 50,904 ;60,775 57,769 28,116 i 80,267 I 43,759 19,523 44,333 i 27,850 i 46,355 Dec. 13 709,289 68,766 j157,056 ! 58,926 64,117 59,430 29,552 j87,572 j 43,955 18,648 43,913 | 29,705 47,649 Dec. 20 759,392 71,758 163,328 ' 63,723 j 70,931 61,781 31,754 99,051 i48,627 19,823 49,446 28,594 50,576 Dec.27 757,500 73,504 | 154,328 i 58,364 74,612 58,543 33,340 93,849 50,454 19,362 51,577 29,741 59,826 All other resources: Nov.29 15,050 ! 478 • 1,769 i 646 i 693 i 528 235 720 489 1,743 874 1,926 4,949 Dec.6 15,379 I 495 1,810 ; 669 : 780 ! 533 349 772 501 1,679 913 1,913 4,965 Dec. 13 15,729 ' 508 2,037 692 | 766 i 530 304 795 512 1,710 965 1,922 4,988 Dec. 20 14,840 I 416 1,875 i 431 721 533 342 841 385 1,685 846 1,817 4,948 Dec.27 15,226 I 446 2,175 | 432 527 696 354 892 379 1,731 845 1,856 4,893 Total resources: i Nov.29 5,080,905 i390,1121,487,051 394,213 I 476,046 230,055 212,593 779,172 215,072 132,165 209,071 136,223 419,132 Dec.6 5,181,253 i403,304 1,519,868 398,654 I 475,510 229,930 219,756 783,709 224,901 141,049 214,631 137,567 432,374 Dec. 13 5,188,643 j408,587! 1,502,042 406,307 482,571 230,339 217,571 790,484 222,967 133,148 215,994 136,300 442,333 Dec. 20 5,279,299 410,80511,534,366 415,801 j 491,959 230,240 220,280 811,570 223,929 139,734 216,446 139,181 444,988 Dec.27 5,305,411 !419,431il, 530,680 415,627 ! 509,353 227,455 220,596 812,290 228,655 138,415 219,314 136,045 «7,550 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

114 FEDERAL RESERVE BULLETIN. JANUARY, 1923. RESOURCES AND LIABILITIES OF EACH FEDERAL RESERVE BANK ON WEDNESDAYS, NOVEMBER 29 TO DECEMBER 27, 1922—Continued. LIABILITIES. [In thousands of dollars.] Total. Boston. Y N o e r w k. d P e h lp il h a i - a. C l l a e n v d e . - m R o ic n h d - . Atlanta. Chicago. Lo S u t. is. M ap i o n l n is e . - K C a i n ty sa . s Dallas. F c S i r s a a c n n o - . Capital paid in: Nov. 29 107,207 8,144 28,673 9,326 11,708 5,594 4,309 14,743 4,812 3,532 4,593 4,204 7,569 Dee.6 107,265 8.144 28,681 9,326 11,70S 5,598 • 4,309 14,743 4.812 : 3,533 4,631 4 204 7,576 Dec. 13 107,244 8,126 28,681 9,326 11,708 5,599 4,309 14,753 4,813 3,533 4,630 4 196 7,570 Dec, 20 107,261 8,126 28,681 9,327 11,708 5,600 , 4,309 14,772 4.813 , 3,536 4,623 4,105 7,571 Dec. 27.... 107,256 8,126 2.X, 688 9,327 11,708 5,595 j 4.309 14,772 4,813 I 3,535 4,623 4,195 7,565 Surplus: Nov. 29 215,398 16,483 60,197 17,945 22,509 11,030 ' 9.114 29,025 , 9,388 7,468 9.646 7,394 15,199 Dec. 6 215,398 16,483 60,197 17,945 22,509 11,030 ! 9,114 ! 29,025 ! 9,388 , 7,468 9;640 7,394 15,199 Dec. 13 215,398 16,483 CO, 197 17,945 22,509 11,030 j 9,114 29,025 i 9,388 7,468 9,646 7,394 15,199 Dec. 20 215,398 16,483 60,197 17,945 22,509 11,030 I 9.114 29,025 I 9,388 7,468 9 646 7,394 15,1'99 Dec. 27 215,398 | 16,483 60,197 17,945 22,509 11,030 9; 114 ! 29,025 9,388 7,468 9;646 7,394 15,199 Deposits: Government— Nov. 29 33,449 ! 2,817 7,273 2,214 2,534 3,893 1,693 1,730 1 2,525 1,241 2,6S4 1,617 3,228 Dec.6 46,976 I 5,072 18,145 1,810 1,160 1,818 3,194 4,871 ! 3,129 1,851 2,191 1,422 i 2,313 Dec. 13 23,136 I 2,317 2,476 1,544 2,610 2,182 1,596 1,001 : 1.939 421 1,938 1,464 j 3,648 Dec. 20 6,715 ' 386 766 874 749 089 128 532 ! 463 580 1,027 135 386 Dec. 27 7,809 119 979 761 123 336 •J5S 384 1,283 893 862 1,076 I 735 Member bankreserve account— Nov. 29 1,807,631 i 120,446 , 679,289 I 107,994 149,579 60,919 , 52,202 i 203,238 03,584 45,534 77,392 53,931 133,523 Dec. 6 1,843,(501 !122,709 704,183 I 112,585 148,260 60,661 52,519 j 261,045 66,913 I 50,024 79,539 53,653 130,910 Dec. 13 1,817,744 i 122,106 680,828 107,877 145,161 j 57,893 52,720 265,810 68,211 j 45,554 82,875 53,854 134,849 Dec. 20 1,840,205 !122,130 700,790 | 108,583 141,804 54,938 53,632 270,369 68,396 ! 49,555 80,773 54,482 134,753 Dec. 27 1,861,281 !124,810 707,106 ! 112,257 151,807 I 59,123 55,253 I 264,175 71,362 47,914 80,60S 52,499 134,367 Other deposits— Nov.29 19,143 i 308 10,936 ! 1S6 836 ' 94 186 1,081 561 374 270 3,450 Dec.6 19,527 I 211 10,725 I 247 1,344 • 132 172 1,190 510 385 968 . 323 3,320 Dec. 13 20,230 I 222 11,437 ! 480 1,021 i 107 213 1,175 '• 575 325 1,135 I 285 3,255 Dec. 20 35,039 ! .,982 13,555 942 1,668 j 764 782 3,759 2,173 i 1,602 I 2,638 ! 678 4,496 Dec. 27 31,165 i 869 12,251 766 ' 1,543 752 527 3,252 i 2,154 ! 3,085 583 4,414 Total deposits: Nov.29 1,860,223 I 123,571 697,498 110,394 152,949 64,906 54,081 I 266,049 60,670 ! 47,149 80,937 55,818 140,201 Dec.6 : '1,910,104 I 127,992 733,053 114,642 150,764 02,611 55,885 I 267,100 70,552 ! 52,860 82,698 55,398 136,543 Dec. 13 1,861,110 |124,645 694,741 109,901 148,792 60,182 54,529 i 267,992 70,725 ! 46,300 85,948 55,603 141,752 Dec. 20 1,881,959 ' 124,498 715,111 110,399 144,221 56,391 54,542 274.660 71,032 51, 737 84,438 55,295 139,635 Bee. 27 1,800.255 |125,798 720,336 113,78-1 153,473 I 60,211 56,238 267, SI1 74,799 I 49,576 84,555 54,158 139,516 F. E. notes in actual circulation: Nov.29 i2,329,814 ; 193,717 594,003 208,762 i 234,214 96,959 123,170 400,932 94,302 56,691 67,705 39,896 219,457 Dec.6 •2,361,222 ! 202,145 593,520 209,098 1 234,555 97,918 125,432 405,704 94,451 58,005 69,501 39,938 230,955 Dec. 13 •2,379,185 201,671 591,809 216,166 241,974 99,045 124,479 407,848 94,501 57,894 69,022 38,937 235,842 Dec. 20 [2,456,711 ! 209,360 605,539 I 224,773 252,370 103,844 127,843 422,690 96,834 59,183 71,552 39,719 243,004 Dec. 27 B,464,121 | 211,213 599,001 | 221,536 257,372 103,398 129,493 428,298 97,272 i 60,027 72,230 39,685 244,596 F. E. bank notes in circulation—net liability: Nov.29: 20,868 i 589 4,837 1,083 ' 944 1,406 j 1,182 1,870 1,942 859 3,328 2,236 583 Dec.6 19,259 ! 646 3,818 • 1,008 l 031 1,441 j 1,268 1,882 1,456 963 3,469 2,302 75 Dec. 13 16,497 ! 650 , 3,559 ! 508 921 j 867 I 777 1,853 1,457 : 976 3,467 1,397 65 Dec. 20 12,499 j 150 3,048 j 8 i 430 924 i 797 1,394 457 485 3,037 1,709 00 Dec. 27 10,632 : 150 ' 2,450 I 76 i 444 914 349 1,269 457 115 3,034 1,274 100 Deferred availability items: Nov.29 520,497 45,695 96,173 44.658 ! 51,040 ! 48,896 19,370 i 63,064 36,864 14,944 41,435 24,884 33,468 Dec.6 540,233 45,931 94,703 44,503 521240 [50,042 22,378 j61,627 43,122 16,675 43,198 26,491 39,323 Dec. 13 580,883 55,059 116,995 50,317 53,789 I52,338 22,984 j65,336 40,922 15,408 i 41,745 26,909 39,081 Dec. 20 576,997 50,177 115,707 51,127 57,850 i 51,117 22,294 65,383 40,219 15,748 * 41,607 29,069 36,699 Dec. 27 578,502 55,609 113,477 50.659 j 60,901 I 44,959 19,702 | 67,447 40,694 16,106 ! 43,652 27,532 37,764 All other liabilities: Nov.29 26,898 i 1,913 5,670 2,045 2,682 1,264 j 1,355 ! 3,480 1,094 1,522 1,427 1,791 2,655 Dec.6 27,772 '. 1,963 ; 5,896 2,132 2,803 1,290 1,370 ' 3,622 1,120 1,545 1,488 1,840 2,703 Dec. 13 28,326 [ 1,953 I 6,060 2,144 2,878 1,278 1,379 : 3,680 1,161 1,569 '• 1,536 1,864 2,824 Dec. 20 28,474 ! 2,011 : 6,083 2,222 2,871 1,334 I 1,381 3,646 1,186 1,577 ^ 1,543 1,800 2,820 Dec. 27 29,247 | 2,052 6,531 2,300 2,946 1,348 | 1,391 3,668 1,232 1,588 1 1,574 1,807 2,810 Total liabilities: Nov.29 5,080,905 390,112 1,487,051 394,213 476,046 230,055 212,593 779,172 215,072 .132,165 209,071 136,223 419,132 Dec.6 5,181,253 403,304 il,519,868 398,654 475,510 229,930 219,756 783,709 224,901 141,049 ! 214,631 137,567 432,374 Dec. 13 5,188,643 408,587 1,502,042 406,307 482,571 230,339 217,571 790,484 222,967 ' 133,148 1 215,994 136,300 442,333 Dec. 20 5,279,299 410,805 '1,534,366 415,801 491,959 230,240 220,280 811,570 223,929 139,734 ! 216,446 139,181 444,988 Dec 27 5,305,411 419,431 1,530,680 415,627 509,353 227,455 220,596 812,290 228,655 138,415 '. 219,314 136,045 447,550 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

JANUARY, 1923. FEDERAL, RESERVE BULLETIN. 115 RESOURCES AND LIABILITIES OF EACH FEDESAL RESERVE BANK ON WEDNESDAYS, NOVEMBER 29 TO DECEMBER 27, 1922—Continued. [In thousands of dollars.] San 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 sa . s Dallas. F ci r s a c n o - . MEMORANDA. Ratio of total reserves to deposit and F.R. note liabilities combined—per cent: Nov.29 76.4 65.7 85.0 I 74.3 70.6 73.1 75.3 81.4 69.0 76.1 62.8 60.2 69.7 Dec.6 74.3 66.6 78.1 74.0 70.8 74.0 77.9 79.9 i 70.4 77.2 60.9 57.9 70.0 Dec. 13 75.1 68.4 80.4 74.8 68.8 71.6 78.2 82.1 70.2 74.7 60.9 54.1 70.7 Dec. 20 72.8 64.1 79.2 71.7 I 68.9 67.1 76.1 78.2 63.3 74.3 53.9 57.0 69.1 Dec. 27 72.1 62.9 80.0 ; 70.7 I 70.8 60.2 76.1 76.1 59.8 73.8 57.3 56.7 66.7 Contingent liability on bills purchased for foreign correspondents: Nov.29 31,512 2,328 11,733 j 2,143 2,615 I 1,563 1,148 3,795 1,499 861 : 1,531 829 1,467 Dec.6 31,007 2,285 11,614 ' 2,095 2,556 | 1,534 i 1,127 3,724 1,471 845 1,502 814 1,440 Dee. 13 il,360 2,318 11,673 2,132 ! 2,604 ; 1,556 I 1,143 3,779 1,493 S57 1,524 826 1,461 Dec. 20 33,152 2,430 12,492 ' 2,254 2,729 I 1,631 ; 1,198 3,961 1,564 899 ' 1,598 865 1,531 Dec. 27 33,9S1 2,509 12,639 : 2,340 2,818 [ 1,683 I 1,237 4,089 1,615 928 I 1,649 893 1,581 MATURITY DISTRIBUTION OF BILLS, CERTIFICATES OF INDEBTEDNESS, AND MUNICIPAL WARRANTS HELD BY THE 12 FEDERAL RESERVE BANKS COMBINED. [In thousands of dollars.| Total. Wi d t a h y in s . 15 16 d a t y o s. 30 31 d a to y s 6 . 0 61 d a to y s 9 . 0 O d v a e y r s 9 . 0 Bills discounted: Nov. 29 650, 445,401 ; 56,419 73,103 ' 45,218 I 29,955 Dec. 6 704, 499,882 i 58,631 69,028 48,689 28,715 Dec.13 659, 462,861 j 54,344 65,992 45,942 30,619 Dec.20 615, 419,329 I 49,405 66,519 48,794 31,511 Dec. 27 629, 436,465 j 48,609 ; 63,372 50,059 31,380 Bills bought in open market: Nov. 29 259, 60,451 I 44,747 ' 47,121 18,038 Dec. 6 266, 71,874 ; 53,195 | 83,830 47,247 10,681 Dec. 13 262, 73,985 i 56,663 78,029 45,649 8,246 Dec. 20 251 72,811 ' 65,693 | 70,654 34,461 8,109 Dec. 27 246, 83,210 I 50,737 | 69,056 38,083 5,207 United States certificates of indebtedness: Nov. 29 142, 3,484 i 1,007 : 1,720 j 76 135,838 Dec. 6 142, 2,258 I 720 1,000 i 576 137,835 Dec. 13 137, 225 i 1,720 76 135,197 Dec. 20 253, 76,670 i 500 62,383 113,729 Dec. 27 278, 103,595 i. 76 62,670 112,350 Municipal warrants: Nov. 29 Dec. 6 Dec. 18 Dec. 20 Dec. 27 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

116 FEDERAL, RESERVE BULLETIN. JANUARY, 1923. FEDERAL RESERVE NOTES. FEDERAL RESERVE AGENTS' ACCOUNTS ON WEDNESDAYS, NOVEMBER 29 TO DECEMBER 27, 1922. [In thousands of dollars.] San Total. Boston.; New Ph p i h la i d a e . l- \ C la le n v d e . - m R o ic n h d - . Atlanta. Chicago.] St. M ap i o n l n i e s. - K C a i n t s y a . s Dallas F ci r s a c n o - . Net amount of F. B. notes received from Comptroller of the Currency: Nov.29 3,609,182 304,795 ; 1,190,850 268,654 281,054 134,158 '202,544 539,392 137,704 I 70,612 94,939 j 62,616 315,864 Dec.6 3,606,113 i 306,278 j 1,194,730 271,929 !280,777 132,598 '202,3S0 530,730 S138,148 \ 72,442 94,345 62,147 319,609 Dec. 13 3,640,536 302,805 ! 1,194,690271,466 :291,423 137,698 201,564 547,168 ,137,854 l 73,928 96,865 61,558 323,517 Dec. 20 3,666,113 308,208 i 1,188,744 279,599 295,164 140,417 2m, 551 548,971 j136,848 ;73,013 99,379 61,098 331,123 Dec. 27 3,679,260 310,515 i 1,181,133 282,837 306,624 139,302 203,587 551,631 137,732 I 72,843 98,887 60,740 333,429 F. R. notes on hand: Nov.29 890,711 87,700 ;404,410 i 39,760 I 31,140 29,020 73,239 101,040 !25,720 I 10,613 15,560 18,299 54,210 Dec.6 875,231 88,100 !399,610 ! 42,360 I 27,840 24,340 71,999 92,800 I 25,220 I 11,753 15,560 18,079 57,570 Dec. 13 865,216 80,900 j 399,610 ]34,640 27,940 28,120 70,519 102,360 24,220 12,558 16,560 18,019 49,770 Dec. 20 847,308 80,900 399,610 38,160 !24,640 27,200 69,6S0 86,800 i 23,270 10,950 17,060 17,359 51,070 Dec. 27 844,168 83,100 399,610 37,360 '29,940 26,400 67,189 78,920 22,470 9,710 19,060 16,939 53,470 F. E.notes outstanding: Nov.29 2,718,471 217,095 792,440 228,894 249,914 i 105,138 i129,305 438,352 : 111,984 59,999 79,379 44,317 261,654 Dec.6 2,730,882 218,178 795,120 '2•29,569 252,937 j 108,258 130,381 437,930 i 112,928 60,689 78,785 44,068 262,039 Dec. 13 2,775,320 221,905 795,080 !236,826 283,483 ! 109,578 1I31,045 444,808 113,634 61,370 80,305 43,539 273,747 Dec. 20 2,818,805 227,306 789,134 : 241,439 270,524 j 113,217 ]133,862 462,171 113,578 62,063 81,719 43,739 280,053 Dec. 27 2,835,092 227,415 781,523 ,245,477 276,684 I 112,902 !130,398 472,711 ! 115,262 63,133 79,827 I 43,801 279,959 Collateral security for F.E. notes outstanding: Gold and gold certificates— Nov.29 346,317 15,300 j283,184 13,275 j. 2,400 11,610 13,052 7,496 Dec.6 346,292 15,300 2S3,184 13,275 |. 2,400 11,610 13,052 ",471 Dec. 13 346,292 15,300 283,184 13,275 I. 2,400 11,610 13,052 7,471 Dec. 20 346,292 15,300 !283,184 13,275 . 2,400 11,610 13,052 7,471 Dec. 27 353,657 15,300 !283,184 : 7,000 13,275 . 2,400 11,975 13,052 7,471 Gold redemption fund— Nov.29 131,560 19,408 35,666 11,598 ,12.S82 j 2,524 ' 5,225 14,853 4,619 1,649 3,342 2,991 16,S03 Dec. 6 131,716 16,891 35,469 13,872 13,204 ! 3,964 4,061 14,191 3,943 2,999 4,548 3,523 15,051 Dec. 13 131,365 13,418 35,225 12,410 '12,951 i 2,104 ; 3,244 16,669 4,609 2,684 4,268 2,933 20,850 Dec. 20 137,454 19,819 35,041 ' 13,982 13,191 j 3,323 5,231 15,472 4,603 1,770 3,383 2,473 19,166 Dec. 27 133,090 16,928 34,875 16,221 14,811 i 2,208 • 4,268 15,571 4,047 1,320 2,616 17,335 Goldfund—F. R. Board— Nov.29 1,370,207 93,000 341,000 153,889 155,000 63,795 89,000 354,645 ,60,300 28,000 50,360 15,000 166,218 Dec.6 1,567,202 93,000 [341,000 155,889 155,000 60,795 94,500 346.644 !58,300 28,000 48,360 15,000 170,714 Dec. 13 1,625,412 113,000 i341,000 159,889 155,000 65,795 95,000 367.645 j60,300 28,000 48,360 15,000 176,423 Dec. 20 1,633,942 108,000 341,000 166,389 155,000 62,795 92,000 374,645 I 58,300 30,000 47,360 12,500 185,953 Dec. 27 1,712,099 118,000 391,000 162,889 155,000 62,795 97,000 389,645 '56,500 32,000 49,360 12,500 185,410 Eligible paper... 1,712,099 118,000 391,000 162,889 155,000 62,795 97,000 389,645 | 56,500 32,000 49,360 12,500 185,410 Amount required— Nov.29.. 670,387 89,387 j132,590 63,407 j68,757 38,819 32,680 68,854 j 35,455 17,298 25,677 18,830 78,633 Dec.6... 685,672 92,987 i 135,467 59,808 j 71,453 43,499 29,420 77,095 !39,075 16,638 25,877 18,074 1 76,274 Dec. 13.. 672,251 80,187 |135,671 ,64,527 !82,257 41,679 30.401 60.494 I 37,115 17,634 27,677 18,135 76,474 Dec. 20.. 701,117 84,187 I 129,909 61,068 j 89,058 47,099 34,231 72,054 j39,065 17,241 30,976 21,29? ! 74,934 Dec. 27.. 636,246 77,187 : 72,464 '59,367 93,598 47,899 i 32,730 67.495 i 42,740 16,761 27,577 21,214 !77,214 Excess amount held— N D De o e c. v c . . 1 2 6 3 9 .. . . . . . 2 1 3 9 9 7 , ,2 1 9 1 6 6 1 3 6 , , 9 5 7 6 2 5 1 3 0 7 8 , , 1 8 7 2 4 7 3 2 , , 6 5 6 1 1 5 3 29 7 , , 1 3 7 2 4 2 7 1 , ,7 8 3 3 9 9 1 1 7 4 , , 3 0 1 9 4 5 3 36 6 , , 8 4 6 8 5 0 j 3 7 , ,3 1 9 2 1 5 3 3 , , 3 3 5 8 4 5 3 6, , 2 5 3 8 9 3 ! 1 18 7 , , 9 1 6 1 0 7 1 9 0 , , 0 6 7 4 4 2 Dec. 20.. 215,096 11,319 76,135 1,759 31,462 7,758 11,674 36,212 I 3,235 2,472 4,065 20,851 8,154 Dec. 27.. 131,013 3,442 31,236 5,663 20,341 4,221 9,410 21,880 ! 2,407 2,897 3,675 18,818 7,023 200,687 18,490 93,556 6,576 9,785 8,336 7,482 32,336 20 3,321 3,261 i 16,220 1,304 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

JANUART, 1923. FEDERAL RESERVE BUTJLETIN. 117 CONDITION OF MEMBER BANKS IN LEADING CITIES. PRINCIPAL RESOURCES AND LIABILITIES OF MEMBER BANKS IN LEADING CITIES ON WEDNESDAYS, FROM NOVEMBER 22 TO DECEMBER 20. 1922. ALL REPORTING MEMBER BANKS IN EACH FEDERAL RESERVE DISTRICT. [In thousands of dollars.] Total. Boston. Y N o e r w k. p P ad h h e i i a l l - - . C la le n v d e . - m R o ic n h d - . A t tl a a . n- Ch g i o c . a- Lo S u t. is. n M e l a i i s p n . o - - K C s i a a t n s y - . Dallas. c F S i r s a a c n n o - . Number of reporting banks: NOT. 22 784 46 108 56* 84 78: 41! 109 37 31 79 52 68 Nov.29 784 46 105) 56' 84: 78; 41 10S 37 31 79 52 6« Dec.6 784 46 105! 56! 841 78: 41 10E 37 31 79 52 66 Deo. 13 784 46 105: 56| 84: 781 10S 37 31 79 52 M Deo. 20 782 46 104; 56! 84! 78 10£ 37 30 79 52 U Loans and discounts, including bills rediscounted with F. R. banks: Secured by U. S. Government obligations— Nov.22 302,349 16,954 114,844 18,511 30,073 11,929. 7,657! 44.5721 18,214 8,294 10,612 4,982| 18,707 Nov.29 297,401 15,907 109,794 18,832 31,115! 12,552; 7,732; 43,521 18,269' 8,318 10,632 4,926 15,803 Dec.6 309,271 17,186 117,993 20,375' 30,623] 12,026i 7,732 45,122 18,622: 8,233 10,597i 4,527 16,235 Dec. 13 300,224 16,601j 107,115 19,475 31,192 12,256| 7 6411 46,885! 18,760 9,108 10,425| 4,500 16,266 Dec. 20 287,157 16,205| 94,338 21,075 31,392: 12,135! 7,472! 46,078' 18,680 8,193 10,445: 4 651! 16,493 Secured by stocks and bonds (other than U. S. Government obligations)— Nov. 22. 3,658,497 237,29911,628,878 249,160' 354,520; 119,835 56,939 551,507: 137,329 44,719 75,295; 54,180 148,836 Nov. 29. 3,688,457 238,48611,667,940 247,134 356,1231116,837 56,531 543,436; 136,491 45,139 75,828' 54,897 149,615 Dec.6 3,704,074 241,229:1,653,267 248,704! 383,695' 120,663 56,700 538,592 136,762 45,046 74,321! 54,458 150,637 Dec. 13 3)680)485 241,22711,630,285 249,068 374,7431111199,663322! 5555,778800 547,096 138,931 43,777 73,797; 54.075 152.074 Dec. 20 3.714,832 245,38911,671,481' 247,992 372,036|123,055! 55,416 541,101 135,387 45,463 73,304: 52,407 151)801 All other— Nov.22 7,229,1481 584,005 2,216,209 334,284! 649,314 311,252 332,730 1,003,673 289,375 193,847 359,9941 215,827 738,638 Nov.29 """""•"• 576,946 2,204,537 337,5981 646,873! 315,793 339,7641,012,043 289,115 198,098 360,078| 213,149 738,879 Dec.6 570,702 2,211,876 338,672| 647,041 314,327 337,088 1,007,303! 289,463 196,374 364,325! 212,293 743,987 Dec. 13 7', 277; 383 I 567,881 2,247,948 335,271! 651,223 319,507 337;805 '©98^676j 298)848 197,841 364,598: 212,515 748,370 Dec. 20 7, ,2„7,„9 ,5.7,„0 562,757^2,250,282! 330,256 654,790| 321,048| 335,0551,008,095! 297,049 192,588 366,312! 211,974 749,364 Total loans and discounts, including bills rediscounted with F.E. banks: Nov.22 11,189,994 «8,258 3,959,931 601,9551,033,907 443,016 397,3261,599,7521 444,918 246,860 445,9011 274,9 903,181 Nov.29 |ll,218,731 831,339 3,982,271 603,5641,034,111 445,182 404,0271,599,0001 443,875 251,555 446,538 272,972 904,297 Dec.6 11,246,796 829,117 3,983,136 607,7511,061,359 447,016 401,5201,591,017 444,847 249,653 449,243 271,278 910,859 Dec. 13 11,258,09211 825,709 3,985,3481603,8141,057,158| 451,395 401,2261,592,557 453,539 250,726 448,820 271,090 916,710 Dec. 20 11,281,559! 824,351)4,016,101!599,3231:,058,218' 456,2381397,9431,595,274 451,116 246,244 450,061 269,032 917,658 U.S. bonds: I ' ' I Nov.22 l,496,899il 102.274J 607,261! 62,707 178,522| 65,462 27,884 138,535 52,716 25,815 63,558 35,145J 137,020 Nov.29 1,510,8401 102,0761 618,3691 62,5051 178,280] 65,631 28,011 139,610 52,707 26,007 64,325 35,557 137,462 Dec. 6 1,503,677]! 103)824 607,510 63,833 177,9201 65,643 28,198 139,812 52,669 27,293 63,688 35,391 137,896 Dec. 13 1,489,4-16!, 102,748 597,730 61,920 177,218| 65,335 28,645 140,604 52,937 28,756 62,666 35,224 135,663 Dec. 20 1,485,6241 1'"0 1,1"5"8 590,089| 62,750 176,444j 65,443j 29,963 143,457 50,975 29,273 63,119 35,721 i 136,932 U. S. Victory notes: Nov.22 32,242 636 11,903 1,072 1,347; 475 1,471 4,209 2,712 237 1,630 756: 5,774 NOV.29 34,165 651! 12,188 848 1,647: 482 1,409 4,458 2,755 719 1,719 657 6,632 Dec.6 33,539 11,140 748 2,087! 491j 1,517 4,728 2,833 219 l,737j 956 6,185 Dec.13 ! 35,464 10,312 1,015 2,854: 557 1,503 5,331 2,917 224 2,010 956 7,044 Dec.20 24,536 8,376 915 1,942; 691 1,210 3,288 1,472 181 1,479 918 3,935 U. S. Treasury notes: Nov.22 657,993 21,410 26,102 j 31,953! 3,905 4,521 85,635 12,284 10,009i 15,331 7,610 25,490 Nov.29 653,766 21,882 25,864 33,916! 3,828 3,950 83,193 12,487 10,029 14,791 7,900 25,024 Dec.6 655,190 20,974 25,849 33,500! 3,744 3,615 82,964 12,639 10,029 14,544 7,705 24,523 Dec.13 657,064 20,741 25,479 33,796: 3,855 3,625 84,539 12,514 10,039 14,630! 8,160 25,138 Dec.20 810,211 29,5991 41,633 48,293 7,133 8,853 118,476 18,92lj 12,003 19,163 15,055 35,498 U. S. certificates of indebtedness: Nov.22 •. i 96,053 12,1 3,260 3,866 3,287 8,256 28,680 3,432 4,385! 6,548 4,747 12,699 Nov.29 ! 95,094 12,755 3,267 3,946 3,283 7,519 29,092 3,472 4,387 6,808 3,902 12,033 Dec.6 | 95,132 12,136 3,185 4,013 3,202 7,458 29,172 3,545 4,493 7,105 4,788 11,478 Dec.13 | 88,972 12,465 2,760 3,496 3,177 7,103 28,382 3,635 2,774 7,183 4,713 10,109 Dec.20 i 241,863 125,924 6,274 13,338 4,192 9,920 33,076 5,935 5,937 6,141 8,520! 16,908 Other bonds, stocks, and securities: Nov.22 2,245,50* 169,374 757,849 182,611 281,804 56,762 35,129 412,305 87,916 27,867 59,302 8,793 165,792 Nov.29 2,249,041 171,071 753,214 183,495 282,410 56,740 35,298 419,044 8—7 ,4-1-9 28,845 59,216 8,651 163,638 Dec.6 2,251,450 170,174 748,730 181,894 292,283 86,352 36,897 418,413 88,008 27,109 59,820 9,053 162,717 Dec.13 2,260,483| 170,306 757,197 181,637 292,288 88,097 36,489 420,801 87,922 29,595 60,660 9,204 159,287 Dec.20 2,272,643! 170,586! 761,848 182,900 293,670 54,71" 35,769 427,794 88,668 28,167! 61,830! 8,653 158,028 Total loans and discounts and investments, including bills rediscounted with F. R. banks: Nov.22 1•1«5, ,7.«18*,„6,8«5 1,136,499 5,763,053; 877,7071,831,399 572,907 474,587 2,269,116! 603,978 315,173 592,2701 332,04011,,249,956 Nov.29.. 15,761,337 1,131,649 5,789,699 879,8431,834,310 575,146 480,214 2,274,397 602,715 321,542 593,397! 329,63911,,249,088 Dec.6.. IS, 785,784 1,129,543 5,777,756 883,2601,571,162 576,448 479,205 2,266,106 604,541 318,796 596,137 329,1711,1,253,659 Dec. 13. 15,789,52l! 1,123,420 5,777,600 876,625 1,566,810 579,416 478,59lj2,272,214 613 464 322,114 595,969 329,34711,,253,951 Dec.20. 16,116,436! 1,131,79115,957,9221 893,795 1,591,905 588,457 483,658 2,321,3651 617,087 321,805 601,793! 337,8991.,268,959 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

118 FEDERAL RESERVE BULLETIN. JANUARY, 1923. PRINCIPAL RESOURCES AND LIABILITIES OP MEMBER BANKS IN LEADING CITIES ON WEDNESDAYS, FROM NOVEMBER 22 TO DECEMBER 20, 1922—Continued. ALL REPORTING MEMBER BANKS IN EACH FEDERAL RESERVE DISTRICT—Continued. [In thousands of dollars.] I Total. Boston. Y N o e r w k. p P ad h h e i i a l l - - . C la le n v d e . - m R o ic n h d - . A t tl a a . n- Ch go ic - a- Lo S u t. is. n M e l a i i s p n . o - - K C s i a a t n s y - . Dallas. F ci r s a c n o - . Reserve with F. R. banks: Nov.22 1,375,792 85,392 650,381 68,026 96,145 36,11: 33,821 188,095 37,950 23,041 45,530 27,040 84,253 Nov.29 1,356,129) 81,516 614,170 68,694 104,444 35,732| 32,418 198,363 37,793 20,554 45,104 26,043 91,298 Dec.6 1,392,010: 83,686 640,286 71,509 104,137 35,242 32,052 197,883 40,100 25,156) 48,010 25,930 88,019 Dec.13 1,360,204 84,363 616,3611 67,421 93,987' 34,869i 32,533 201,146 42,267 20,3641 50,723 26,434 89,736 Dec.20 1,384,597, 83,286) 635,125: 69,220 97,944; 31,984! 33,540! 202,959 41,736 O2O3 ,8O5CO2!! 4AT7 ,8Q4A4i1* 27,648 89,459 Cash in vault: j i I Nov.22 294,259! 18,797 88,629! 17,289 31,936! 14,701! 10,256 55,918 7,777! 6,432 12,137! 9,900 20,487 Nov.29 286,463! 17,689 89,2191 17,468 29,464! 13,5401 9,979 54,077 8,064! 5,769 11,762 9,687 19,745 Dec.6 1 308,777, 20,120 92,543! 17,843 34,52Si 15,1611 11,001 57.539 8,325! 6,274 12,577 10,311 22,555 Dec.13 ! 320,341! 21,471! 96,865, 18,892 36,21)7; 14,900 10,720 59,329 9,008: 6,771 12,904] 1O;37O 22,904 Dec.20 344,814; 22,677 107,656: 2.1,818 40,3271 15,624' 11,587| 62,762 10,080! 6,302 12,973! 10,268 23,740 Net demand deposits: Nov.22 11,038,867' 809,742 4,775,836: 693,958 S57,527 330,030 270,278;!, 422,158342,273' 200,587 436,529 240,279 659,670 Nov.29 11,094,036' 798,593 4,831,684! 692,61)1 861,747 332,001 271,688:1,434,443 337,315) 203,471) 437,060 240,187 653,246 Dec.6 11,010,180' 802,0114,752,265! 698,028 868,276 336,539 273,8631,399,470 343,229. 205,437 440,131! 241,729 649,202 Dec.13 111,111,839)! 814,868 4,789,6581693,307 855,138| 333,238 279,56711,448,244 356,617! 206,071 443,706 238,628 652,797 Dec.20 (11,186,196! 809,405 4,861,749 703,025 847,757 331,459 277,12011,464,504 356,509; 207,652 440,561 236,770 649,685 Time deposits: ! ! Nov.22 ! 3,658,822' 238,637 789,401! 59,853 516,623 148,263; 160,138 733,856 178,078 81,669! 122,353 68,697 561,254 NOV.29 ) 3,647,977;: 238,964 774,207 58,116 519,322 147,065 159,189 732,092 178,201! 82,988 122,384 69,468 565,981 Dee.6 ! 3,694,727': 239,230 779,825! 57,971 552,767 146,022 160,916 733,975 177,745! 83,601! 123,974 70,646 568,055 Dec.13 |3,691,373;! 237,431' 778.203 58,302 555,823 144,4421 160,041 734,628 176,4191 83,918! 123,592 70.2S5 568,289 Gov D er e n c m .2 e 0 n t deposits: I 3,687,168,1 !j 235,895! ' 760,520 I 58,8-41 560,122 145,494! 160,007 740,206 ,1-,7-7,, 1,2„9„!! s4414; 126,043 70,597 567,810 Nov.22 i 171,551;, 17,647 73,9111 15,258 11,311; 5.7611 5,475! 15,944 12,152 3,2281 3,348 2,013 5,503 Nov.29 j 170,6371 17,648! 73,911 15,284 11,362! 5; 836 5,472! 15,393 12,145 2,738! 3,348 2,010 5,490 Dec.6 ! 162,592!) 16,767! 70,215 14,518 10,693 5,553 5,1681 14,796 11,542 3,024 3,181 1,909 5,226 Dec.13 151,209:: 16,767) 70,215 2,889 10,693! 5,543' 5,167! 15,005 11,541 3,051 3,201 1,911 5,226 Dec.20 511,368), 26,204' 273,266 33,539 25,830 10,860) 13,2511 55,712 14,848 7,862 9,095 14,475| 26,426 Bills payable with F. R. banks: Secured by U. S. Government obligations— Nov.22 209,245! 9,116 117,300 13,826 10,7601 12,976 2,450 19,844 6,402! 703 4,963 300 10,605 Nov.29 ! 204,014)! 13,639 87,301 16,362 21,186 12,550 1,624 19,535 703 5,931 425 18,175 Dec.6 ! 270,877: 11,889 159,423 15,502 11,853 12,116 1,500 25,870 1,023 8,008 160 15,565 Dec.13 233,128 7,000 138,447 13,218 17,414 14,169! 1,350 17,025 7',Sli\ 1,023 7,308 160 8,500 Dec.20 201,6911! 9,485 103,426 16,2221 13,996 13,026 1,325 15,993 7,351! 1,013 475 9,520 All others— ; |; Nov.22 ! 396). 20 275 101 Nov.29 66l). 201 500 141 Dec.6 ! 650!. 20; 500 130 Dec.13 | 835!. 20! 688; 127 Dec.20 : 647). 20! 500! 127 Bills rediscounted with F. R. banks: Secured by U. S. Government obligations—, Nov.22 j 1,239 i 203! 123 125! 188 79 189 131 111 1 26 9i 54 Nov.29 1,640; 203 408 125; 207 147 203 162 92 1 27 9! 56 Dec.6 2,719! 203 1,555 253 160 145 241 92 1 2 9 58 Dec.13 1,621 203 500 238 116 191 193 104 1 17 8 50 Dec.20 1,554) 200 500 175 167 112 212 47 1 108 3 29 Allother— 1 i Nov.22 1 149,464 34,186 21,344 8,149 13,313 11,329 12,099 15,268 8,554 2,171 9,664 3,461 9,926 N D o ec v . . 6 2 9 ! 1 1 7 7 6 5 , , 1 5 9 7 7 8 3 4 5 0 , ,0 3 8 0 7 1 2 2 2 6 , , 8 0 4 6 7 3 1 1114 4 ; , ,4 t4O 5 14 2 0i 1 1 5 3 , , 4 4 0 6 1 7 1 1 2 1 , , 5 6 4 1 1 1 1 1 5 0 , , 3 5 0 0 7 8 2 24 0 , , 6 6 0 6 1 3 9 9, , 8 2 5 7 0 8 2 3, , 0 8 2 1 1 6 8 9, , 6 5 1 4 7 8 3 3, , 2 2 4 3 0 2 1 1 2 2 , , 5 34 7 0 4 Dec.13 1 161,298 34,545 17,503 11,848 15,122 13,867 9,192 18,391 8,940 2,555 9,836 3,088l 16,411 Dec.20 146,789! 29,282 10,565 8,911 15,499 16,248 10,930 15,287 9,985 2,729 10,313 3,595 13,445 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

119 JANUAET, 1923. FEDERAL RESERVE BULLETIN. PRINCIPAL RESOURCES AND LIABILITIES OF MEMBER BANKS IN LEADING CITIES ON WEDNESDAYS, FROM NOVEMBER 22 TO DECEMBER 20, 1922—Continued. MEMBER BANKS IN FEDERAL RESERVE BANK CITIES. [In thousands of dollars.] Total. Boston. Y N o e r w k. p P ad h h e i i a l l - - . C la le n v d e . - m R o ic n h d - . Atlan- Ch go ic - a- Lo S u t. is. n M e l a i i s p n . o - - K C s i a a t s n y - . Dallas. c F S i r s a a c n n o - . Number of reporting banks: Nov. 22 , 264 23 64 43 8 10 7 50 13 16 8 15 Nov.29 264 23 64 43 S 10 t 50 13 7 16 8 15 Dee.6 264 23 64 43 8 10 7 50 13 7 16 8 15 Dec. 13 264 23 64 43 8 1(1 7 50 13 7 16 8 15 Dec. 20 282 23 «S 43 8 10 / 50 13 6 16 8 15 Loans and discounts, ineluding bills rediscounted with F. R. banks: Secured by U. S. Government obligations— I I Nov. 22 209,717,| 14,042 104,238: 16,613, 6,524. 2,120 1,5841 34,253 14, 5831 5,378; 2,490; 2,241: 5,651 Nov.29 203,918' 12,983 99,7651 16,892, 0,475! 2,319 3,5341 33,299: 14,723' 5,422i 2,473| 2,2031 5,830 Dec.6 217,577;! 14,2781 108,030; 18,392 6,494i 2,337 1,595! 35,61l| 15,046J 5,4041 2,501 1,785! 6,104 Dec. 13 207.234: 13,731] 97,238; 17,575 6,415 2,327 1,5751 36,664 14,918: 6,259: 2,437 l,806! 6,289 Dec. 20 195,709! 13,300; 85,090: 19,237 6,630 2,337 1,4241 37,002' 14,651- 5,347: 2,323! 1,965! 6,403 Secured by stocks and j : ' bonds (other than U. ; S. Government obligations— ] j N N D D D e e o o e c c c v v . . . . . 2 6 2 2 1 0 9 2 3 2 2 2 2 2 , , , , , 6 7 7 7 6 8 1 3 0 9 8 7 0 5 0 , , , , , 9 4 3 3 3 2 7 3 1 1 2 2 5 8 1 : 1 1 1 1 1 8 8 9 8 8 9 2 6 9 5 , , , , , 5 9 7 3 5 5 2 3 6 6 1 4 9 2 0 1 1 [ 1 1 1 1 l , , , , , 4 4 5 4 4 5 9 0 5 7 7 5 2 4 5 , , , , , 9 7 3 2 3 1 9 5 6 9 5 2 6 4 0 ; ! ! : 2 2 2 2 2 2 2 2 2 2 0 8 7 8 7 , , , , , 0 4 1 6 8 7 8 3 9 3 7 4 0 3 S - ! ! ; 1 1 1 1 1 3 4 4 3 4 9 7 0 8 1, , , , , 9 4 6 9 4 2 6 3 8 7 1 5 4 4 7 2 2 1 1 1 0 0 9 8 9 , , , , , 4 8 1 6 8 1 9 9 9 8 6 6 0 9 2 1 1 1 1 1 0 0 0 0 0 , , , , , 3 2 5 5 3 6 8 ? 6 1 5 1 0 1 5 ! ; | 4 4 4 4 4 1 2 1 0 1 9 7 2 4 1 , , , , , 2 9 9 3 7 3 6 2 4 0 6 o 6 9 5 , | | : ; 1 1 1 1 1 0 0 0 0 0 5 1 5 3 3 , , , , , 2 8 9 8 9 2 5 4 2 3 2 0 7 6 8 : | 2 — 2 2 2 2 3 2 2 2 2, , , , , , 5 9 8 2 2— 2 5 5 0 8, 7 0 0 6 8 ! l : ' ; _ 2 - 2 2 2 2 0 , 1 0 0 0- , , , 2 , ,. 0 9 0 2 7 - 7 5 7 5 7 0 3 9 .9 1 1 1 1 1 1 1 1 0 1 0 , , , , , 1 9 1 0 8 3 6 4 1 0 5 1 0 4 8 ! ! ! ! | 6 6 6 6 6 7 7 6 6 7 , , , , , 2 5 1 9 7 2 6 4 3 2 3 5 0 0 8 AUother— : I ; Nov.22 4,438,374; 440,823| 1,932,171 303,176! 296,171 62,715, 52,687 616,703 163,1591 95,813! 117,583 298, 786 Nov. 29 4,429,079 434,616; 1,920,100: 306,464J 295,367 65,025; 55,352 620,377 161,209' 98,670' 118,403 57,819 295,677 Dec.6 4,425,399 428,6751,927,01.31307,415j 294,108! 64,169 53,1041 617,108 160,835 96,549, 119,650 57,336j 299,437 Dec. 13 4,460,3711 426,7311,982,1231304,273: 295,698! 65,073| 53,6531 607,287 166,587 96,775: 119,573 57,422 305,176 Dec.20 4,452,748,j 423,6251,961,9031299,051! 295,6741 66,083 52,993| 614,9641 166,257 94,374! 120,612 56,880 300,332 Total loans and sidcounts, | I \ including bills rediscounted with F.R. banks: ; I i Nov.22 7,338,402: 640,425 3,494,324.1 548,487: 442,160 85,251 64,636 1, 073,192282,964 123,3971 141,026 71,963 370,577 Nov.29 7 350,469; 634,338 3,515.6611 550,033 440,319 86,034 67, ,068,641 279,872 126,942! 141,946 70,830 368,437 Dec.6 7,348,2911 632,477 3,510) 433! 553,641 448,236| 86,402 65,2601,062,065 279,819 124,903! 142,230 70,061 372,764 Dec. 13 7,356,5331 629,824 3,513,625 550,328! 444,034j 87,282 65,5-i431,061,656 287,331 125,322' 142,269 70,289 379,030 Dec.20 7,378,789! 629,876J3,549,34a1 545,421 443,2881 88,619 64,6"981,083,895 282,765 123,248| 143,212 69,959 374,463 U. 8. bonds: ! > Nov.22 819,418" 45,456 ; 516,65S:• 47,727;! 30,663! 5,448' 5.196 54,926; 33,345 6,699! 24,374. 10,711 68,215 Nov. 20 !S60,760i! 45,2511 527,264: 47,622; 30,726: 5,449 5, 196 55,910l 33,228 7,005' 24,432 10,711 67,966 Dec. 6 852,059;j 47,240; 515,972! 48,863: 30,557' 5,459 5, )96 .56,099: 33,071 7,146! 23,767' 10,497 68,192 Dec. 13 839,784' 46,647j ."W5,2S7: 47,003i 31,120' 5,489 5, 196 56,380 32,619 8,645, 22,433 10,415! 68, 550 Dec.20 S2<i,2U6!J 46,1201 491,524 47,802i 3O,7SS: 5,-170 .">, 196 55, 392! 31,298 8,964! 22,410, 10,3441 67,991 U.S. Victory notes: :! 1 Nov.22 lfl,13i:; 08J 1(1,692; 1,025; 207: 729 3,650i 211 6, 442: 30 2,041 Nov.29.... 20,62(1 90 1(1.974- 79:>: 190'.. 729 :',, 8881 241 6 533! 188 2,983 Dee.6 19,4931 3351 9) 869 091 340i • 729 -4,113! 351 6 572: 4871 2,000 Dec. 13 20,3421 14.il 9,016 887 579' 729 4,361! 101 6 702' 4871 3,029 Dec. 20 14,5»7.: 72:{S: S54 S>0, ' 729 2, 429! 369! 556 464 j 1,852 U. 8. Treasury notes: ! Nov.22..*. 534,559'' 17,8141 395,744 23,575 0,228 413- 1.080 61,545: 9,018! 5,107 3.629 10,406 Nov.29 530,478-, 18,286: 392,904 23,534 6,228' 413' 1)080 59,279j 9,250! i 4,709 3', 824 10,971 Deo.6 532,126;; 17,378;; 397,105: 23,320 6,4I.V 413 680 59,137 9,089 ! 4,661! 3,629 10,299 Dec. 13 532,675:' 1177,114455 396,988 23,292 6,415! 413; 680 61,007 8,964 : 4,731! 3,529 9,511 Dec.20 637,903!] 22,216! 443344,001166 38,441 8,499! 1,103' 679 S5,353 14,279 250. 7,945! 8,240 16,885 V. 8. certificates of indebtcdness: i \ Nov.22 52,122;' 3,995. 9,008 2,86!-! 1,869 1,315; 3,360 17,600 2,6761 2,128 1,174- 1,564 4,565 Nov.29 50,203:! 3,98:1 9,366 2,875 1,844; 1,315! 2,558 17,741 2,707 2,130! 1,127! 1,110 3,447 Dcc.6 49,833!' 4,007! 8,738 2,870 1,869 1,3151 2,558 17,917 2,758 2,179! 1,218! 1,605 2,799 Dec. 13.. 46,213i; 2,626! 9,067 2,370 1,8771 1,315; 2,122 17,087 2,824 l,660| 1,2201 1,530 2,515 Dec.20 174,114!! 4,349 120,258, 5,712 2,3321 1,8251 2,713 21,692 3,352 4,389I 1,591 3,811 2,092 Other bonds, stocks, and ; : securities: Nov.22 1,197,204 78,537 561,487 146,124 1 7,012 2,981 174,029 55,795 11,718| 13,377| 1,767 80,091 Nov.29 1,197,097 80,231 555,132 146,031 64,286] 7,025 2,989 180,520 55,537 11,8161 13,456 1,867 77,396 Dec.6 1,186,820 7799,,775555 554488,,669900 145,709 65,097 7,139 3,007 180,132 56,001 10,342 13,041! 1,860 76,591 Tota D D l e e l c c o . . a 2 1 n 0 3 s and discounts 1 1 , , 1 2 9 0 4 5 , , 3 5 4 8 6 4 ! ! 7 7 79 8 2, , 5 9 2 8 5 3 1 ' 5 5 5 6 55 0 55 , ,2 8 28 9 8 4 22 I 1 11 4 6 5 , , 3 3 6 0 4 9 ! 6 6 6 4 5 4 , , , 4 5 5 7 5 53 8 4 ! : 6 0 , , 1 1 8 6 5 5 2 2, , 9 9 7 8 3 9 1 1 8 S 2 9 , ,O 07 S 7 5| 5 5 ""6 7 , , 1 0 5 0 "3 5 ! 1 1 2 0 , , 2 4 2 3 8 6 ! ! 1 1 3 2 , , 3 7 2 0 5 7 ! 2 1 , , 0 3 6 1 0 5 7 7 4 4 , , 1 7 0 3 3 5 and investments, includii ng bbiiHHs redisdcoiunttded with F. R. banks: N N D D D e o e o e c c v c v . . . . . 6 1 2 2 2 3 0 9 2 . . J . J J 1 : 1 1 0 9 9 9 0 , , , , , 0 9 9 2 9 0 9 8 3 8 9 0 9 7 8 , , , , , 6 2 8 8 6 2 7 3 9 2 7 6 6 3 2 7 7 7 7 7 8 7 8 8 8 5 6 2 1 1 , , , , , 9 3 1 1 6 1 2 7 9 1 2 9 5 2 0 1 4 5 5 4 4 , , , , , 9 1 0 9 9 9 6 1 8 8 0 6 1 9 7 , , , , , 8 2 9 2 3 0 7 1 6 0 7 3 3 5 1 7 7 7 7 7 6 8 7 6 7 9 4 5 9 0 , , , , , 5 1 0 8 8 9 8 9 0 9 4 9 4 6 3 5 55 5 5 5 5 4 5 4 5 4 0 8 1 4 5 0, , , ) , 6 4 6 5 9 4 8 1 8 0 7 0 88 3 3 0 4 !! ! 1 1 1 — 1 11 0 9 0 0 0 0 0 0 9 0 0 3 0 3 ) , , , , , 2 1 7 4 2 „1 6 3 2 3 3 8„8 8 6 8 2 6 9 2 4 . ! ! : ! ! ' 77 7 7 7 7 7 77 6 7 7 9 9 , , , , , , 9 9 9 2 4 9 2 8 6 8 5 3 6 5 2 , 8 8 9 0 9 8 , 1 l ! 1 1 ! 1 l l 1 l , , , , , 3 3 , 4 3 3 3 3 8 88 1 7 8 8 22 5 7 9 5 4 ,5 , , , 9 , 5 8 4 9 9 6 ,7 6 4 , 6 7 4 8 9 8 6 3 9 2 1 1 ! ! 3 3 3 3 3 3 3 , 8 8 8 8 8 8 8 0 4 0 8 1 8 8 , , , 8 , , 2 0 0 8 2 8 3 9 0 8 3 9 6 5 2 9 9 5 2 8 1 ! , 1 1 1 1 1 1 1 , 4 4 4 4 4 4 4 7 7 7 4 77 3 , 8 , , , , 8 2 8 5 8 9 9 6 8 9 7 6 4 9 1 7 9 6 1 8 ! 1 1 1 1 11 1 , 8 8 8 88 8 8 6 8 4 6 4 5 5 , , 2 ,6 , , , 4 6 4 2 5 0 8 2 8 8 0 0 0 3 1 0 9 0 3 1 1 1 : ! , 8 8 9 8 88 8 8 8 4 8 8 9 8 5, , , , , , 3 5 1 1 3 6 3 1 3 3 3 1 6 0 0 0 9 3 0 4 5 5 5 5 5 3 3 3 3 3 1 7 7 5 2 , , , , , 3 3 2 8 6 7 8 0 9 4 0 6 0 5 5 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

120 FEDERAL RESERVE BULLETIN. JANOABY, 1923. PRINCIPAL RESOURCES AND LIABILITIES OF MEMBER BANKS IN LEADING CITIES ON WEDNESDAYS, FROM NOVEMBER 22 TO DECEMBER 20, 1922—Continued. MEMBER BANKS IN FEDERAL RESERVE BANK CITIES—Continued. [In thousands of dollars.] Total. Boston. v New p a h de ia l- . C la le n v d e . - m R o ic n h d - . At t l a a . n- Ch go ic . a- Lo S u t. is. n M e l a is i p n . o - - K C s i a a t n s y - . Dallas. c F S i r s a a c n n o - . Reserve with F. R. banks: Nov.22 999,620 68,488 605,177! 62,326 31,038! 6,386 5,918 131,050 25,624 12,131 15,110 7,933 28,439 Nov.29 970,050 65,674 569,973; 62,672 30,749! 5,734 5,058| 141,759 24,961 9,530 14,048 7,043 32,849 Dec.6 1,007,807 66,330 594,145! 65,652 33,025] 6,082 5,841 "1"4 2,5"1"6 26,433 13,718 16,774 6,368 30,923 Dec. 13 973,703 67,853 563,936! 62,046! 30,814' 5,782 5,231; 143,658 26,742 9,111 18,101 7,248 33,181 Dee. 20 1,002,192 67,828 588,054] 63,785 31,248' 5,983! 6,317' 144,546 26,927 12,603 15,861 7,864 31,176 Cash in vault: I Nov.22 154,395 ,| 74,555j 13,932' 7,717i 1,004 1,992 31,404 3,705] 2,176 2,252 1,444 6,104 Nov.29 153,612 7,992] 75.7621 14,655i 7,635: 986 1,967 29,838 3 77ll 1,844 2,287 1,198 5,677 Dec.6 161,000 8,958] 77,373; 14,404 8.6571 993 2,057 32,055 3,709! 2,070 2,479 1,256 6,989 Dec. 13 169,786 9,833 81,728' 15,162] 9,954] 1,082 2,017: 33,011' 4,155: 2,022 2,595 1,382 6,845 Dec. 20 185,933 11,161! 90,351; 16, 441! 10,428| 1,330 2,300 35,596 5,147; 2,086 2,697 1,521 6,875 Net demand deposits: ! Nov.22 7,634,599 629,288 4,,2289,380'614,8971 223,768! 54,756 45,008 978,585 233,465 95,367 153,194 66,225 250,666 Nov.29 7,680,078 618,0414,,3346,583;612,413 225,9201 56,653 45,523 990,967 226,500 96,736 153,556 65,791 241,395 Dec.6 7,581,599 620,10214,,2256,352;616,305] 233,237; 58,180 45,264 964,528 229,1961 96,937 153,738 65,083 242,697 Dec. 13 7,642,316 629,558i4,,2279,097;612,090! 232,457: 54,518 45,806 988,508 241,085! 95,303 157,207 65,719 240,962 Dec. 20 7,745,415! l 628;639|4,360,530:619,616! 224,897; 57,045 47,2811,011,973 235,972' 100,575 154,634 64,181 239,972 Time deposits: Nov.22 1,800,120 104,150 558,137 43,7471 305,321' 24,432 20,195 352,168] 104,377] 33,599 14,640 9,913 229,441 Nov.29 1,788,148], 104,288 542,7541 42,037; 307,396! 24,373 20,327 350,499 104,226! 34,670 14,563 9,953 233,062 Dec.6 1,794,5871 104,628; 549,306! 41,786 305,121! 24,258 20,348: 351,427 103,849 35,878 14,6541 10,816 233,316 Dec. 13 1,791,824! 103,152! 547,055; 42,102! 305,140 23,927 20,247; 352,062 103,469 35,145 14,686; 10,750 234,089 Dec. 20 1,775,8331' 101,552j 527,5491 42,029, 309,070, 24,129J 20,300 357,860] 103,455 35,478 14,807! 10,697 228,907 Government deposits: Nov.22 126,767 14,089! 66,298l 14,377' 2,702 7401 1,4801 8, 733; 9,887. 1,655 1,841: 1,064 3,921 Nov.29 126,662i 14,070! 66.298] 14,403! 2,702! 818; 1,479, 8,532' 9,887 1,655 1,841: 1,064 3,913 Dec.6 120,421 ] 13,366i 62,983 13,682; 2,529: 778; 1,400' 8,250 9,391 1,556 1,748s 1,013 3,725 Dec. 13 109,362: 13,366! 62,983 2,724; 2,529 7781 1,400! 8,151! 9,390 1,555 1,748] 1,013 3,725 Dec. 20 400,827; i 19,141! 260,944 31,739] 5,582 3,067' 1,792: 33,626' 11,526 4,172 5,743! 8,524 14,971 Bills payable with F. R. Secured by U. S. Government obligations— PT V Nov.22 i 140,370 4,701, 101,855j 11,251, 725 2,826! 1,710' 4,909 9,500 Nov.29 i 120,950 9,1991 69,330 13,642 225; 775' 1,384| 3,645' 16,650 r"! Dec.6 190,557 8,924; 141,195 12,752! 945 394 l,230i 5,550! 14,550 Dec. 13 i 152,344 5,575! 115,530 11,768 930: 2,947! 730! 4,618i 8,450 Dec. 20 ! 121,053 6,3451 82,060] 14,422; 958. l,960! 9,500 ill other— . £ Nov.22 Nov.29 Dec.6 ! Dec. 13 1 Dee. 20 j Bills rediscounted with F. ' R. banks: Secured by U. S. Government obligations—; Nov.22 : 4941 203 123! 125]. Nov.29 768 203 408; 125. Dec.6 1,866 203 1,555. Dec. 13 806 203 500 . Dec. 20 816 200 500!. All other— Nov.22 i 77,354 33,560 10,711 8,139 3,971! 3,407! 518] 4,953 Nov.29 i 97,439 39,475 11,498 14,452 5,645' 3,362] 1,079 7 408J Dec.6 104,517 34,624 16,420 14,410 5,873! 3,189! 690] 13,098] Dec. 13 : 91,514 33,335 9,653 11,848 5,338 3,976! 708 7 350 Dec. 20 74,407 28,862 4,072 891l! 5,165; 4,207j 950 5,180' Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

JANUARY, 1923. FEDERAL BESEEVE BULLETIN. 121 BANK DEBITS. Bank debits are reported to the Federal Reserve Board for banks in about 250 centers. Figures for each center for the four weeks ending December 20, 1922, and for the corresponding four weeks in 1921 are presented below and summarized, by Federal reserve districts, in the following table: DEBITS TO INDIVIDUAL ACCOUNTS BY BANKS IN REPORTING CENTERS. SUMMARY BY FEDERAL RESERVE DISTRICTS. [In thousands of dollars.] 1922 1921 Week ending— Week ending— Federal reserve district. Nov. 29. Dec. f Dec. 13. Dec. 20. I Nov. 30. Dec. 7. Dec. 14. Dec. 21. No. 1—Boston 463,208 485,413 462,025 547,704 420,983 485,402 454,002 522,988 N N N N N N N N N N N o o o o o o o o o o o . . . . . . . . . . . 6 2 4 5 7 8 1 1 1 9 3 — — — — — — 2 1 0 — — — — — N C C A R S M P S D K t e h l i t h . e a c l w i i a a a c v i n n h L l l n a n e l m n a o Y a g s l t F e d a a a u s o o o r a n e s i n a s p r d l n d k C p o c h l i i i t i s s y a c . . . . o . . . . 4,6 4 4 2 9 2 2 5 1 1 1 7 3 1 8 5 4 3 4 9 4 5 7 1 3 8 9 9 3 7 1 8 0 , , , , , , , , , , , 7 3 3 0 9 3 4 7 0 1 7 7 2 6 2 2 3 3 0 1 5 9 1 4 1 8 2 7 6 8 5 5 1 I, 4 2 5 2 9 2 2 5 1 1 5 0 1 1 2 3 4 4 1 5 5 2 8 2 8 9 5 2 9 4 3 0 7 , , , . , , . , , , , 4 0 3 9 2 8 2 0 3 4 1 0 2 4 7 8 7 8 8 5 8 5 0 1 9 6 3 4 1 5 8 8 4 4, 4 5 2 2 2 5 3 9 2 1 1 3 3 2 7 2 5 5 5 4 4 M 1 9 3 7 4 0 3 4 6 9 , , , , , , , , , , , 3 2 3 2 7 0 1 7 2 2 6 9 5 4 2 4 0 8 8 9 6 1 4 1 1 8 5 8 3 6 4 2 6 5 1 , , 4 2 2 3 5 2 2 5 1 1 1 4 7 3 9 7 6 9 9 1 6 6 7 2 9 9 5 2 6 6 1 4 3 , , . , , , , , , , , 6 0 4 1 5 7 1 2 9 2 8 3 9 4 7 3 0 0 0 9 9 1 6 9 5 3 2 2 4 4 7 0 7 4 ' , 3 3 2 1 8 2 4 1 1 1 1 5 0 6 7 0 1 6 4 3 9 1 2 7 4 2 4 8 1 8 4 5 8 , , , , , , , , , , , 8 3 8 2 3 1 6 6 8 1 0 3 2 3 8 8 4 9 0 6 9 4 3 5 3 0 1 0 1 4 4 8 1 4, , 4 4 2 9 2 5 9 1 2 1 1 , 3 2 4 3 2 6 5 3 8 3 4 2 7 6 6 8 1 4 3 0 7 9 , , , , , , , , , , , 7 8 1 4 6 4 1 4 7 2 2 2 1 6 4 4 6 6 3 2 6 1 5 5 3 3 0 3 7 2 7 8 4 4, 3 4 2 1 9 2 2 4 6 1 1 0 2 7 7 1 2 8 0 0 3 4 8 6 6 4 5 1 0 9 8 1 1 , , , , , , , , , , , 4 9 9 2 2 3 4 4 8 2 0 7 9 2 9 4 5 1 2 0 7 1 1 0 8 4 1 1 3 0 8 2 0 5 1 , , 4 4 2 2 2 2 5 0 1 1 0 3 9 4 0 6 3 3 9 3 5 4 9 3 8 1 2 6 6 2 2 8 9 , , , , , , , , , , , 2 4 2 2 7 3 9 5 5 3 3 6 9 8 0 3 2 7 2 4 1 2 3 1 0 8 9 3 6 0 0 5 0 Total 8,754,056 8,626,682 8,515,133 10,076,703 7,599,171 8,973,459 ! 8,348,2009,373,963 DATA FOR EACH REPORTING CENTER. [In thousands of dollars.) 1922 1921 Week ending— Week ending- Nov. 29. Dec. 6. Dec. 13. Nov. 30. Dec. 7. Dec. 14. Dec. 21. District No. 1—Boston: Bangor, Me 2,835 3,184 3,211 3,225 3,335 I 3,693 3,578 4,483 Boston, Mass 318,482 335,063 304,807 369,965 299,565 342,536 318,886 364,359 Brockton, Mass 4,904 3,945 5,387 6,410 Fall River, Mass 8,760 7,046 8,390 9,308 6,341 5,863 4,600 7,964 Hartford, Conn 20,362 21,677 21,364 26,969 20,765 22,608 21,209 21,966 Holyoke, Mass 3,936 3,715 3,731 4,336 2,575 2,806 2,828 3,311 Lowell, Mass 4,863 4,410 5,568 5,681 3,917 4,424 5,051 5,183 Lynn, Mass 5,576 6,279 6,181 6,413 Manchester, N. H 4,035 6,498 6,964 6,437 3,975 6,197 6,728 4,965 New Bedford, Mass 7,460 6,435 7,092 8,822 5,732 5,966 6,785 8,152 New Haven, Conn 16,414 17,447 17,833 20,297 13,123 10,825 16,513 17,658 Portland, Me 7,793 8,143 10,593 7,547 7,023 8,510 6,807 7,815 Providence, R. I 32,522 34,832 32,912 39,502 27,704 30,439 29,699 37,684 Springfield, Mass 14,882 15,353 14,920 17,849 10,643 14,015 11,724 14,992 Waterbury, Conn 6,532 7,918 6,776 8,802 5,104 6,669 5,042 7,034 Worcester, Mass 14,332 13,692 17,864 18,964 11,181 14,851 14,552 17,422 District No. 2—New York: Albany, N. Y 19,018 23,554 23,9S5 30,760 18,540 SO, 973 22,572 22,939 Binghamton, N. Y 3,898 4,661 4,251 4,884 3,197 4,326 3,914 3,873 Buffalo, N. Y 68,127 61,470 63,297 72,143 47,941 56,709 57,271 63,268 Elmira.N. Y 3,138 3,126 3,225 3,789 Jamestown, N. Y 3,744 3,841 3,916 4,414 Montclair, N. J 2,839 3,056 3,166 4,147 Newark, N. J 59,340 53,739 59,389 73,459 New York, N.Y 4,531,560 4,379,083 4,180,662 5,229,239 4,038,837 4,819,118 4,470,028 4,949,793 No. New Jersey Clearing House Association 37,171 42,143 46,014 50,999 Passaic, N. J 6,329 6,950 7,236 8,040 4,750 5,583 5,350 7,361 Rochester, N. Y 33,262 36,042 30,236 36,028 23,109 31,793 29,435 30,814 Stamford, Conn 2,748 2,598 2,646 3,231 Syracuse, N. Y 15,577 15,394 13,674 18,438 11,766 14,712 11,850 14,322 District No. 3—Philadelphia: Allentown, Pa 6,046 5,933 6,005 7,312 Altoona, Pa 2,977 3,268 3,654 3,457 2,737 2,901 3,108 3,068 Camden,N. J 9,697 12,304 12,519 13,873 Chester, Pa «,959 4,202 4,250 6,277 4,054 ! 4,176 3,686 Harrisburg, Pa 7,387 7,098 8,828 5,768 ' 6,923 6,978 Hazleton, Pa 2,783 2,184 2,345 2,786 Johnstown, Pa 5,372 5,210 6,174 5,706 5,095 4,612 4,452 5,158 Lancaster, Pa 5,233 4,871 5,173 6,192 4,348 4,980 4,728 5,319 Lebanon, Pa 1,501 1,313 1,482 1,595 Norristown, Pa 831 752 996 926 Philadelphia, Pa 343,098 326,013 340,309 369,974 279,275 352,474 295,669 356,605 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

122 FEDERAL RESERVE BULLETIN. JANUARY, 102!?. DEBITS TO INDIVIDUAL ACCOUNTS BY BANKS IN REPORTING CENTERS—Continued. DATA FOB EACH REPORTING CENTER—Continued. [In thousands of dollars.] 1922 1921 Week ending- Week ending— Dec. 20. Nov. 30. Dec. 7. Dec. 14. Dec. 21. District No. 3—Philadelphia—Continued. Reading, Pa 9,799 8,398 9,316 10,365 7,223 8,513 7,142 7,986 Scranton, Pa 16,886 13,433 16,352 16,998 13,543 14,320 15,414 16,758 Trenton, N. J 11,663 11,935 13,692 14,814 9,262 11,290 11,601 13,593 Wilkes-Barre, Pa 9,661 7, 753 9,423 10,018 8,834 7,597 9,048 9,998 Williamsport, Pa 3,S36 4,060 4,181 4,237 3,344 4,086 4,633 4,541 Wilmington, Del 6,963 6,8S9 7,197 9,618 5,974 7,108 5,993 7,300 York, Pa 3,490 4,700 4,409 5,615 3,376 3,745 3,842 4,290 District No. 4—Cleveland: Akron, Ohio 12,499 13,349 14,301 15, 8,916 11,257 10,198 13,758 Butler, Pa 2,164 2,102 2,417 2, Canton, Ohio 8,951 8,954 11,762 11, Cincinnati, Ohio 68,276 71,654 69,084 82, 49,423 61,155 60,607 75,441 Cleveland, Ohio 132,690 128,845 131,458 148, 107,038 124,471 115,502 144,371 Columbus, Ohio.'. 29,059 31,442 ! 31,664 34, 22,775 26,821 26,417 30,648 Connellsville, Pa 1,508 1,259 j 1,540 1, Dayton, Ohio 12,051 15,270 ! 14,225 15, 12,948 13,714 12,852 12,728 Erie, Pa 6,415 6,231 | 6,388 7, 5,364 5,717 7,062 6,357 Greensburg, Pa 5,338 4,195 ! 4,439 4, 3,133 3,705 4,347 6,270 Homestead, Pa 718 730 I 752 Lexington, Ky 4,814 5,165 ! 5,951 6, 3,364 4,205 3,856 4,208 lima, Ohio 3,333 3,217 | 3,537 4, Lorain, Ohio 1,086 1,261 j 1,415 1, New Brighton, Pa 2,353 2,166 2,343 2, Oil City, Pa • 3,112 2,637 3,019 3, 2,290 2,854 2,456 2,994 Pittsburgh, Pa 190,435 220,312 269,068 216, 137,511 151,063 144,867 173,251 Springfield, Ohio 4,524 5,489 4,938 4, 2,747 3,509 3,297 3,630 Toledo, Ohio 27,166 33,738 j 35,234 45 Warren, Ohio 2,752 2,370 ! 3,107 2, Wheeling, W. Va 8,264 11,195 j 9,993 10, 8,034 8,721 7,358 9,309 Youngstown, Ohio 10,551 13,565 I 13,217 12 8,731 10,623 10,171 10,315 Zanesville, Ohio 2,364 2,378 ! 2,704 2, District No. 5—Richmond: Asheville, N. C 4,542 3,857 i 4,217 4,228 Baltimore, Md 82,386 I 79,944 j 80,500 97,500 101,394 112,746 100,000 109,915 Charleston, S. C 5,000 I 5,986 ! 6,607 5,784 5,875 5,455 5,109 6,960 Charleston, W. Va 9,557 9,839 j 9,028 10,551 Charlotte, N. C 8,063 9,656 | 8,843 9,614 6,717 6,365 6,6i3 7,704 Columbia, S.C 4,138 5.189 ! 5,072 5,395 3,950 5,526 4,690 5,029 Cumberland, Md 1,971 1,563 ! 2,267 2,240 Danville, Va 3,043 3,533 | 3,389 3,862 Durham, N. C 4,983 5,000 ' 5,288 5,081 Greensboro, N. C 6,169 5,073 5,875 4,859 H H L G y a u re n g n e c e t n i r h n s v b t g i o u l t l w r e o g , n n , S , , V . W M C a d . Va 5 5 4 2 1 , , , , , 7 9 2 0 4 1 1 8 0 1 1 6 3 4 0 4 5 1 5 2 , , , , , 9 8 7 0 0 5 1 1 3 0 2 9 6 6 0 5 4 1 2 4 , , , , , 8 6 2 0 5 2 0 7 3 6 7 0 6 7 2 4 5 2 7 1 , , , , , 5 7 9 1 4 8 1 0 6 6 6 7 0 6 4 3 3 , , 2 9 7 0 4 0 4 5 , , 1 1 8 0 1 3 3 4 , , 9 4 1 3 2 5 3 5 , , 7 7 4 91 4 Newport News, Va Norfolk, Va. 17,094 20,807 23,147 17,449 13,913 i8,978 17,265 i5,904 Raleigh, N. C 5,800 7,400 8,700 9,300 3,050 3,400 3,900 3,100 Richmond, Va 31,250 31,583 33,285 35,388 28,269 37,319 32,387 31,115 Roanoke, Va 5,362 6,475 7,675 8,821 Spartanburg, S. C ; 2,634 2,225 2,567 2,385 Washington, D. C 42,220 41,388 42,752 49,459 32,838 42,151 44,554 44,533 Wilmington, N. C 6,694 5,349 5,225 5,881 4,145 4,939 4,663 5,468 Winston-Salem, N. C 6,848 5,960 7,254 11,995 Dittrict No. 6—Atlanta: Albany, Ga 1,014 1,300 1,128 1,300 Atlanta, Ga 27,064 26,182 28,521' 32,606 21,957 25,489 24,629 30,993 Augusta, Ga 6,601 7,340 6,648 7,276 5,621 6,337 5,379 8,115 Birmingham, Ala 24,834 20,823 23,309 25, 799 12,031 13,920 15,331 16,453 Brunswick, Ga 584 . 662 663 734 Chattanooga, Tenn 7,226 8,307 8,626 9,064 5,963 8,491 8,112 9,114 Columbus, Ga 3 177 ! 3,019 3,027 I 3,701 Cordele, Ga 450 444 452 379 Dothan, Ala 1,088 610 644 ! 705 Elberton, Ga 207 t 237 244 ; 302 Jackson, Miss 2,410 ! 3,165 2,959 3,172 Jacksonville, Fla 10,554 12,330 12,104 ! 13,023 i6,072 10,279 9,767 11,976 Knoxville, Tenn 5,831 6,224 6,632 9,279 4,770 6,032 6,163 6,657 Macon, Ga 4,227 4,487 5,227 5,407 3,505 4,027 3,923 4,980 Meridian, Miss 1,702 2,220 2,165 1,922 Mobile, Ala 5,404 7,633 6,621 7,139 6,279 6,180 6,179 6,676 Montgomery, Ala 4 550 ! 5,278 4,796 5,281 3,230 3,780 3,883 4,414 Nashville, Tenn 14,762 i 16, 111 16,027 17,414 12,060 14,123 14,823 15,765 Newnan, Ga 250 I 342 383 527 New Orleans, La 61,307 78,432 66,576 86,310 62,245 60,596 57,472 66,514 Pensacola, Fla 1,025 1,814 1,555 1,781 1,344 1,570 1,626 1,452 Savannah, Ga 9,242 8,879 7,876' 8,996 9,198 11,370 9,599 12,109 Tampa, Ha 6,528 6,766 6,960 7,267 4,797 6,482 5,902 4,910 Valdosta, Ga 1,129 969 1,123 1,191 Vicksburg, Miss 2,000 2,370 1,916 2,803 1,761 1,756 1,683 1,611 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

JANUARY, 1923. FEDERAL RESERVE BULLETIN. 123 DEBITS TO INDIVIDUAL ACCOUNTS BY BANKS IN REPORTING CENTERS—Continued. DATA FOR EACH REPORTING CENTER—Continued. [In thousands of dollars.] 1922 1921 Week ending— Week ending— Nov. 29. Dec. 6. Dec. 13. Dec. 20. Nov. 30. Dec. 7. Dec. 14. Dec. 21. District No. 7—-Chicago: Adrian, Mich 650 815 789 Aurora, 111 2,102 3,519 2,973 3,345 Bay City, Mich 2,333 2,022 2,741 2,701 2,667 2,787 2,531 2,987 Bloomington, 111 1,853 2,911 2,265 2,692 1,898 2,117 2,230 2,454 Cedar Rapids, Iowa 4,575 5,288 5,443 5,133 7,798 9,608 9,623 8,898 Chicago, 111 637,012 587,641 586,073 686,220 548,462 648,920 596,510 675,522 Danville, 111 2,600 j 2,100 2,800 2,900 Davenport, Iowa 6,652 j 8,979 7,346 7,940 5,785 6,947 6,076 7,045 Decatur, 111 2,960 I 3,278 3,365 3,551 2,200 3 162 3,242 3,290 ' Des Moines, Iowa •. 16,203 15,439 17,119 17,024 12,900 15,729 16,175 16,057 Detroit, Mich 121,098 124,012 129,692 170,854 91,324 103,518 103,204 144,503 Dubuque, Iowa 2,644 3,098 3,011 3,648 2,597 2,763 2,401 2,858 Flint, Mich 6,634 6,032 6,184 6,904 4,338 4,716 4,183 5,425 Fort Wayne, Ind 7,271 6,871 7,488 7,467 6,002 7,742 7,044 8,468 Gary, Ind 3,221 2,573 3,216 3,240 Grand Rapids, Mich 14,398 12,140 14,419 15,980 17,719 21,071 21,828 25,526 Green Bay, Wis 2,376 2,544 Hammond, Ind 3,670 3,000 2,890 3,820 Indianapolis, Ind 27,978 38,583 37,945 43,738 25,070 30,844 34,130 36,058 Jackson, Mich 4,472 3,340 3,760 4,506 2,514 3,124 3,217 4,332 Kalamazoo, Mich 4,416 4,733 4,325 5,067 3,406 4 243 4,207 5,546 Lansing, Mich 5,100 7,400 5,700 7,400 3,863 4,596 4,188 5,019 Mason City, Iowa 1,913 2,417 2,659 2,469 Milwaukee, Wis 52,816 54,500 59,752 66,377 43,377 53,350 53,291 58,659 Moline, 111 1,584 1,978 1,642 1,086 1,197 1,947 1,578 2,052 Muscatine, Iowa 1,115 1,322 1,386 1,419 Oshkosh, Wis 2,300 2,700 2,500 2,600 Peoria, 111 6,757 10,516 10,837 10,118 6,027 I 8,190 7,824 8,709 Rockford, III 3,978 5,619 4,784 5,086 3,959 ! 5,137 4,108 4,522 Saginaw, Mich 5,087 3,664 5,159 5,483 Sioux City, Iowa 14,169 15,284 15,600 16,230 6,225 7,456 6,856 South Bend, Ind 7,065 6,641 8,201 10,924 5,282 5,464 6,089 6,027 Springfield, 111 5,093 5,130 j 5,021 6,544 5,075 5,103 5,376 5,888 Waterloo, Iowa 2,861 3,839 3,549 3,917 1,919 2,933 2,361 2,669 District No. 8—St. Louis: East St. Louis and National Stock Yards, 111 10,148 9,090 11,310 10,416 6,497 i 8,824 9,514 8,055 Evansville, Ind , 6,940 7,440 7,939 •7,140 4,520 i 5,060 4,660 5,281 Fort Smith, Ark 3,296 2,957 3,032 2,951 Greenville, Miss 878 1,373 1,296 1,107 Helena, Ark 1,446 1,455 1,380 1,611 Little Rock, Ark 14,349 14,555 15,165 14,366 9,349 10,544 10,044 11,211 Louisville, Ky 32,581 31,513 35,397 43,112 33,629 ! 30,107 32,432 30,420 Memphis, Tenn 39,220 39,581 41,256 23,434 28,937 26,293 27,453 Owensboro, Ky 1,579 1,530 1,911 2,351 Quincy, 111 2,313 2,357 3,016 2,688 1,805 2,722 2,245 2,242 St. Louis, Mo 141,217 134,488 140,670 173,709 114,359 145,004 127,162 148,986 Springfield, Mo 2,569 3,261 3,406 3,517 2,298 2,965 2,891 3,278 District No. 9—Minneapolis: Aberdeen, S. Dak 941 1,490 1,305 i: 1,418 1,536 1,221 1,706 Billings, Mont 2,350 2,642 2,242 1,831 2,338 1,827 1,684 Dickinson, N. Dak 460 483 326 Duluth, Minn 25,317 21,465 22,359 20, 16,411 14,761 19,682 15,995 Fargo, N. Dak 2,721 2,489 2,582 2, 2,663 2,795 2,464 2,461 H G e ra le n n d a , F M or o k n s t , N. Dak 2 1 , , 7 72 5 3 3 2 2, , 7 1 4 7 3 8 2 1 , ,8 6 6 5 1 8 k 2 1 , , 4 4 0 8 1 2 2 3 , , 0 5 1 5 0 8 3 1 , , 6 6 4 7 7 8 3 1 , ,5 4 3 3 1 5 Jamestown, N. Dak 451 561 615 Lewistown, Mont 1,419 2,319 2,912 Minneapolis, Minn 76,256 76,547 79,379 60,821 72,262 65,886 69,482 Minot, N. Dak 1,120 1,174 1,159 Red Wing, Minn 621 673 569 St. Paul, Minn 133,075 133,796 i 35,130 •40, '24," 812' "3i,"086' '28,'257 29,565 Do 37,877 38,925 42,264 Sioux Falls, S. Dak 2,965 3,640 3,593 3,631 3,422 4,060 4,000 3,858 Superior, Wis 1,645 1,891 1,804 1,851 1,929 2,119 1,724 1 774 Winona, Minn 1,045 1,200 1,381 1,289 851 1,202 1,027 1,032 District No. 10—Kansas City: Atchison, Kans 1,324 1,361 1,551 1,484 1,179 1,163 1,289 1,295 Bartlesville, Okla 2 523 2,861 2,244 2,382 2,068 1,623 2,416 1,972 Casper, Wyo 2,846 3,635 3,630 3,714 Cheyenne, Wyo 4,177 2,896 2,146 2,253 2,002 2,135 1,943 2,276 Colorado Springs, Colo 2,509 2,394 3,007 2,948 2,096 2,468 3,045 2,535 Denver, Colo 37,799 34,439 36,599 35,262 30,774 34,153 31,678 36,200 Enid, Okla 1,899 3,103 2,754 3.189 Fremont, Nebr 802 944 762 918 Grand Island, Nebr 1,071 1,298 1,300 1,294 Grand Junction, Colo 627 772 679 834 Guthrie, Okla 605 886 793 1,312 Hutchinson, Kans 2; 811 3,326 3,776 3,941 i Debits of banks which submitted reports in 1921. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

124 FEDERAL, RESERVE BULLETIN. JANUARY, 1923. DEBITS TO INDIVIDUAL ACCOUNTS BY BANKS IN REPORTING CENTERS—Continued. DATA FOR EACH REPORTING CENTER—Continued. [In thousands of dollars.] 1922 1921 Week ending- Week ending- NOT. 29. Dec. 6. Dec. 13. Dec. 20. Nov. 30. Dec. 7. Dec. 14. Dec. 21. District No. 10—Kansas City—Continued. Independence, Kans I 1,914 2,1R4 1,748 2,115 Joplin, Mo 2,593 2,869 3,207 3,152 1,900 2,243 2,322 2,444 Kansas City, Kans... 4,190 3,952 3,817 4,320 2,980 3,491 3,250 3,946 Kansas City, Mo 72,848 69,213 70,750 87,152 57,280 67,995 64,355 68,889 Lawrence, Kans 963 1,148 994 1,085 McAlester, Okla 1,363 1,193 896 1,249 Muskogee, Okla 6,119 7,585 6,848 7,028 3,837 3, Hi 3,045 3,703 Oklahoma City, Okla. 17,761 17,887 16,432 21,218 19,122 21,897 17,470 18,851 Okmulgee, Okla 2,281 1,911 2,142 2,222 Omaha, Nebr 43,450 47,159 48,126 48,387 32,300 40,818 36,270 37,521 Parsons, Kans 853 1,091 785 1,179 Pittsburg, Kans 1,331 1,300 1,501 1,510 Pueblo, Colo... 5,631 3,657 3,151 4,079 5,157 3,794 2,979 4,969 St. JosephJ Mo 14,899 16,913 15,413 16,020 14,016 16,211 16,361 16,368 Topeka. Kans 2,841 3,644 3,465 3,353 3,141 3,112 5,051 3,997 Tulsa, Okla 19,651 21,138 22,040 24,702 17,294 14,615 21,200 22,199 Wichita, Kans... 8,700 11,390 11,390 11,433 9,235 9,811 8,677 9,375 District No. 11—Dallas: Albuquerque, N. Mex 2,286 2,312 2,264 2,520 1,954 2,141 1,580 1,937 Austin, Tex 2,966 4,247 4,486 3,370 2,436 3,655 2,983 2,196 Beaumont, Tex j 2,806 3,792 3,752 4,321 2,477 3,005 3,209 3,673 Corsicana, Tex i 1,249 1,190 1,314 1,240 Dallas, Tex 39,401 41,258 38,951 47,488 34,334 36,752 33,549 40,312 El Paso, Tex 6,772 8,144 6,871 7,588 6,997 7,913 7,297 7,678 Fort Worth, Tex 24,772 25,186 26,420 27,116 29,440 30,420 31,312 31,246 Galveston.Tex 19,095 19,496 17,076 17,822 14,115 18,598 16,169 16,012 Houston, Tex I 26,349 28,119 26,594 29,102 25,090 26,583 23,626 33,257 Roswell, N. Mex • 539 632 630 755 San Antonio, Tex ] 6,249 6,357 7,355 7,467 5,482 7,205 6,877 6,783 Shreveport, La • 10,155 7,538 7,325 8,249 5,625 5,815 6,946 7,727 Texarkana, Tex i 1,820 1,565 2,444 2,543 1,088 1,179 2,262 2,003 Tucson, Ariz ; 1,703 1,752 1,915 2,005 1,504 1,899 1,622 1,659 Waco, Tex i 4,362 4,117 4,163 4,226 3,654 4,103 3,578 3,832 District No. 12—San Francisco: ; Bakersfleld, Calif i 2,732 2,515 2,787 2,562 Bellingham, Wash ! 1,487 1,751 1,688 1,021 Berkeley, Calif ! 3,294 4,312 4,255 4,069 2,399 4,280 3,904 3,673 Boise, Idaho 2,951 2,923 4,011 3,286 2,519 2,900 2,851 2,901 1,809 1,400 2,740 2,400 Fresno, Calif 16,832 18,188 17,791 14,444 11,438 i6,043 ii,6Ii 12,929 Long Beach, Calif 8,632 11,484 11,605 12,799 6,007 7,373 6,915 6,164 Los Angeles, Calif 129,692 126,368 139,481 158,223 108,789 113,380 116,726 140,442 Oakland, Calif. 22,421 31,249 26,219 28,676 17,851 23,122 20,136 23,791 Ogden, Utah 7,466 8,246 7,755 8,895 4,626 4,871 3,426 3,360 Pasadena, Calif 6,223 7,018 7,514 7,400 4,809 6,086 3,939 4,724 Phoenix, Ariz 4,932 4,833 4,893 4,501 Portland, Oreg 30,748 29,491 34,241 34,669 29,325 30,269 32,632 32,500 Reno,Nev 2,517 2,599 2,360 2,754 2,255 2,699 2,366 2,632 Ritzville, Wash 150 220 178 151 Sacramento, Calif 10,877 17,273 21,432 22,847 13,338 19,S8i 19,285 17,617 Salt Lake City, Utah.. 15,708 19,545 16,261 19,435 15,454 19,683 18,055 27,520 San Bernardino, Calif. 1,487 1,636 1,780 1,768 San Diego, Calif. 9,212 9,694 11,250 11,504 7,i44 9,876 9,398 9,081 San Francisco, Calif... 190,952 156,732 162,995 193,489 178,454 211,581 169,374 204,795 San Jose, Calif. 5,863 5,605 5,082 5,702 4,797 6,129 6,898 4 117 Seattle, Wash 43,031 35,247 37,517 39,071 35,998 28,455 31,615 37,150 Spokane, Wash 10,826 11,788 10,871 11,840 8,129 11,854 10,369 10,887 Stockton, Calif 5,460 5,794 6,317 5,588 5,085 6,013 5,947 5,462 Tacoma, Wash 8,319 8,306 9,763 10,094 7,701 8,504 9,018 9,617 Yaldma,Wash 2,384 2,626 2,531 2,209 2,546 3,444 2,939 3,129 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

FEDERAL RESERVE CLEARING SYSTEM. OPERATIONS DURING NOVEMBER, 1922. [Numbers in thousands. Amounts in thousands of dollars.] Items drawn on banks located Total items handled, including Number of nonmember in own district. Items for- Items for- duplications. banks. Feder o a r l r b e r s a e n r c v h e . bank re b s I e r n a r v n F e c e h b d a e c n r it a k y l - o r lO re u b s t r e s a r i v d n e c c h b F a e c n d it k e y r . o al r o ^ n ) f S T U t r a e n a t i e s t u e r d e ? d T le d o d u t ' a p l e l x i i c t c e a l m u ti s o s i n v h s e a . o n f - r o e t w s h b a e e n r a r a r d v r n d e F c t e h e b h d e d a e i e t n s r o r . k a s l j p o a w r r i d t a n e o i r n s d s t t b a r e r i m d b c a a n t e t . n c o k h Number. N m u b m e a m n b k e b s r e . r of O l n i s p t. ar Not l i o s n t. ' par ; I N h u e m r. -! Amount, j Amount. \ i ! b N e u r m . - N b u e m r. - •; N b u e m r. - j i Amount. 1922 19212: 1922 19212 ! • ! 1 3 N 9 0 o 2 , v 2 . . N 19 1 o 2 5 v 1 , . . N 1 3 9 o 2 0 2 v , . . 1 N 9 1 2 o 5 1 , v . . N 1 3 9 o 0 2 , v 2 . .! I N 1 1 9 o 5 2 v , 1 . . Boston 015: 604,946 3,850! 447,042j 1721 14,882 4,637 1,087,470! 221 53,128:. 4, 858 4, 593! 1,120,598 1,047,8271 428 436 259] 256 New York l,990j 4,547,347 5,311 676,156! 1,117] 95,489 8,418 5,318,992 1,235 146,277, 26; :>, 345 9,679, 8,238, 5,470,614 722 712 264 252 C Ph le i v l B C a e d l u i a n e f n f c l a p d i l n h o n ia ati 1,8 7 2 2 5 1 5 0 0 7 0 0 ! 8 2 1 1 2 5 2 0 5 8 9 0 , , , , 8 2 2 5 5 5 4 7 2 1 1 3 2 1, , 4 2 8 4 0 8 2 8 3 9 1 5 2 1 8 5 8 6 3 8 8 3 , , , , 0 1 9 0 5 0 5 6 0 2 4 1 1 9 8 7 1 2 0 2 8 2 2 5 4 , , , 3 8 5 9 5 2 6 8 1 '1 4 2 , , , 1 3 2 7 2 0 4 1 0 7 6 5 1 « , 1 2 4 1 3 2 2 6 8 2 8 1 , , , , 4 0 0 4 8 3 5 3 0 2 6 8 i 4 1 5 4 1 4 8 9 3 4 2 9 5 5 5 3 , , , , 3 7 6 9 4 7 8 8 6 5 5 7 ! , ! !. 2 3 1 9 4 3 ; 1 5 4 8 , , , 8 4 1 7 3 1 5 7 5 1 ! ! 2 4 1 , , , 3 7 1 8 5 3 4 9 6 2 7 3 ) : ! ; 4 1 1, , ) 1 4 7 8 1 2 4 6 * 9 8 1 1 1 1, 4 2 2 2 3 3 0 3 9 2 5 2 , , , , 2 3 1 4 3 2 6 9 9 8 0 9 ,0 3 2 8 5 0 5 7 6 , , , 1 3 2 8 1 2 8 2 8 3 2 7 1 2 8 1 3 4 4 4 3 2 7 1 2 0 8 7 2 1 5 4 5 3 1 1 7 8 5 4 8 4 5 3 4 2 2 7 7 1 1 7 1 l: fa o a ed Pittsburgh 538 258,469 928 102,050 53 5,116 1,519 365,635 84 42,1811 32; 9,505! 1,635: 1,378] 417,321 352,392 344 342 252 242 Richmond 119 149,026 2,179 320,121 53 5,""" 2,351 475,095| 163 69,355 36] 9,562! 2,550! 2,32ll 554,012 516, 813 472 464 699 732 568] 573 Baltimore 279 157,263 773 77,363 59 7,494 1,111 242,120! 139 38,520! 83! 9,053! 1,333! 1,128] 289,693 264,409 161 160 263 269 Atlanta 638 189,760 390 50,592 43 4,256 1,071 244,608 24 9,09l! 25! 4,094' 1,120! 565! 257,793 135,507 227 224 91 104 458 514 Birmingham 224 48,597 205 18,541 14 1,475 443 "8,613! 20 14,815; 28; 35,182: 491; 451! 118,610 78,500 93 76 35| 33 143i 119 Jacksonville 61 21,678 15,582 12 1,149 232 32 4,951i 71 1,226 271 237! 44,586 40,163 78 70 61 63 1471 146 m Nashville 64 31,949 233 20,890 16 1,279 313| 54,118! 5 1,633: 3 601! 321 2901 56,352! 55,156! 89 86 145 146 159 157 New Orleans 74 50,869 119] 15,561 40 5,380 233! 71,810! 41 12,831i 809! 280 260! 85,4501 75,488 56 55 51 50 223] 229 Chicago 1,060 609,859 4,036 337,942 424 48,223 5,520! 996,0241 333 34,145i 2,620! 5,863 5,3511 1,032,789 981,044 1,318 1,319 3,986 3,979 Detroit I 295 170,186 611 53,864 41 4,r- 947 228,139| 21 6,423| 865.! 973 766: 235,427 207,361 125 124 259 256 1 St. Louis 311 257,211 1,515 93,445 142 12,831 1,968! 363,4871 38! 3,564j 11 1,051, 2,017 1,871 368,102 311,676 384 367 1,701 1,741 Little Rock ! 72 31,953 388! 26,964 9 898 469! 59,8151 3 10 1,264| 482 411 61,934 52,767 70 69 233 228 1 Louisville ] 107 63,411 4471 24,905 41 3,427 595 91,743 9, ! I; 182! 605 550j 92,702| 80,218 95 94 344 340 Memphis : 80 54,353 249! 20,810 12 1,551 341! 76,714: 2; 394i 2; 275 345 299] 77,383 55,644 59 55 188 186 160 167 Min H ne e a l p e o n l a i s : 2 2 6 9 0 1 1 2 1 8 , , 0 3 6 9 0 7 1,8 2 6 3 5 8 ! 9 1 4 7 , ,4 4 2 1 9 5 4 1 7 2 7 1 , ,1 7 4 6 6 4 3 1,8 2 7 79 7 | | '23 2 6 9 ,0 ,6 6 3 8 5 ! S 7 4 1 4 7 , , 3 1 8 5 3 5 1 | 1 2 0! 1,7 6 7 4 4 8 1,9 2 7 8 1 8 1,8 2 2 5 6 2 2 3 5 5 3 , , 7 8 9 7 2 1 2 3 3 0 4 , , 6 3 6 4 2 3 8 1 2 9 3 1 8 2 1 0 9 1 2,4 1 1 9 1 3 2,4 2 7 1 4 8 ; 18 7 C 13 1 0 B Kansas City 345 216,411 1,312 93,114 95 9,681 1,752: 319,206 241 32,409 64, 11,280 2,057 2,147! 362,895 400,063 330 331 1,421 1,452| 3 Denver" : 140 53,132 36S1 24 896 29 5,316 537, 83,344 71 18,066 48: 14,551 656 590J 115,961 107,880 161 161 263 278 1 Oklahoma City i 70 58,661 1,018! 73,858 11 1,185 l,099! 133,704 52 8,947 171 6,652 1,168 149,303 154,772 414 337 422 549 7 Omaha ' 104 55,009 592; 34,589 39 2,638 3 736! . a 92,614! 41 5,816 18. 4,962 795 103,392 91,762 249 256 913 922 154'"i82 Dallas | 209 95,420 l,442j 220,834 34 1,685! 320,137 78 41i 4,542 V 1,573 334,368 305,714 660 657 736 842( 52 San E H L S S S P F p a e l o o o r l a o a s r P u t t t n k s A t a l L c l a a t s e o n i n n a o s n g e k d c e e o l e C s i ty : ] 3 3 1 4 6 2 9 8 5 3 3 6 7 4 0 8 2 1 1 4 3 4 1 3 2 4 2 5 5 0 1 0 4 6 7 , , , , , , , , 5 3 1 0 9 6 7 8 1 5 8 1 6 1 1 3 6 6 6 6 4 4 3 3 1,4 3 7 2 4 2 2 1 4 5 0 3 0 3 4 1 2 9 2 9 2 9 4 8 ; : | 1 ' ] 1 3 4 1 3 1 1 1 0 2 9 3 1 6 0 0 9 , , , , , , , , 8 5 3 2 8 4 1 3 8 9 2 7 2 9 4 4 7 4 5 5 1 5 8 1 3 7 5 2 3 1 1 1 8 3 4 7 2 3 7 8 3 1 3 2 1 1 7 1 7 0 , , , , , , , , 7 5 5 8 7 4 0 6 5 8 1 3 8 9 2 9 0 2 3 4 9 8 3 1 1 1, , 9 1 3 4 2 1 4 4 0 0 0 2 6 7 9 9 S 2 0 2 0 1 4 9 | ! 1 , ' | 2 2 2 8 5 6 6 3 6 1 4 0 3 8 3 2 6 4 , , , , , , , , 0 7 1 1 0 6 0 8 6 5 5 1 6 7 9 5 2 2 4 5 1 4 1 5 1 3 2 1 0 1 1 6 2 6 5 8 3 5 1 3 2 2 3 5 l 8 , , , , , , , 3 1 7 8 9 0 0 6 6 2 3 3 6 9 0 0 4 0 6 i 5 ; ! 3 4 5 3 1 2 8 9 4 0 6 5 ; ! : ' ! ! i 3 4 2 4 2 1 8 , , , , , , , 0 9 3 5 5 7 5 6 7 3 8 4 3 0 5 1 7 6 2 3 8 3 3 3 2 1, , 1 0 2 4 3 5 4 2 7 6 9 9 6 1 7 1 7 7 3 0 6 9 4 1 1, 4 8 3 4 4 2 5 2 9 5 7 5 6 7 1 0 8 6 3 3 8 6 4 1 1 2 2 5 3 9 2 2 8 7 7 9 8 2 1 5 3 4 4 , , , , , , , , 6 5 7 4 2 6 2 4 2 5 9 9 2 5 5 8 2 5 9 9 3 7 7 8 2 2 2 2 7 6 7 6 4 2 9 1 4 0 4 5 0 4 , , , , , , , , 0 8 8 8 9 9 8 3 9 1 8 1 7 4 0 8 1 3 3 1 2 2 6 8 1 1 1 1 1 1 6 6 3 0 6 6 9 3 5 6 6 9 1 3 4 8 2 1 1 1 1 1 1 6 3 0 8 7 7 3 1 1 3 2 0 4 1 3 2 2 1 1 1 1 9 4 7 5 5 0 8 3 2 9 4 9 5 3 7 6 2 2 1 1 1 16 7 7 9 6 6 6 1 4 3 9 7 8 6 0 0 ! ! i . 2 l 5 ! Total: November.11,840 9,641,082;36,67li 3,728,616 3,149 352,937!51,677U3,730,270( 3,836! 705,189! 774 182,815 56,287 49,660 14,618,274110,880,891 9,916 9,805 17,836 18,319 2,286! 2,218 October... 12; 492 10,701,685138,392,3,942,331 3,629 447,233 54,531| 15,098,723! 3,900] 766,012! 844; 205,464 59,2—7 549,086 16,070,19911,253,327 9,918 9,80317,85118,388 2,281 22,00 1 Incorporated banks other than mutual savings banks. «Includes items drawn on banks in other Federal reserve districts forwarded direct to drawee banks as follows: Cincinnati, 11,000 items, $1,765,000; Minneapolis, 5,000 items, $5,492,000; Omaha, 1,000 items, $378,000. Total, 17,000 items, $7,635,000. NOTE.—Number of business days in period for Boston, Cleveland, Cincinnati, Little Rock, and Salt Lake City was 25, for New York, Buffalo, Atlanta, Birmingham, Detroit, Louisville, and Omaha 24, for New Orleans 22, and for other Federal reserve bank and branch cities 23 days. to Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

126 FEDERAL RESERVE BULLETIN. JANUARY, 1923. GOLD AND SILVER IMPORTS AND EXPORTS. IMPORTS INTO AND EXPORTS PROM THE UNITED STATES, DISTRD3UTED BY COUNTRIES. Gold. Silver. 11 months ending 11 months ending Countries. November. November. November. November. 1921 1922 1921 1922 1921 1922 1921 1922 Denmark $3,410,344 $17,769,576 $370 France $15,051,331 $1,910,844 186,958,082 21,516,936 $6,143 177,634 204,494 Germany 2,494,144 21,476 19,456,752 35,118 56,702 $9,103 5,250,347 707,137 Netherlands 470,682 92,842 19,219,739 9,929,505 2,474 Norway 64S 1,534,985 8,423,894 3,656 1,764 7,767 11,732 Spain 26,828 20,720 3,319,281 55,663 143 44,364 16,471 116,485 Sweden 5,916,524 68,055 64,993,365 32,865,047 6,604 1,790 United Kingdom: England 18,407,191 11,762,865 188,361,912 106,131,504 1,036 1,186,219 199,073 Scotland "i" 151,320 Canada !, 375,255 836,322 34,541,659 9,876,375 273,318 1,388,090 3,551,385 6,051,706 Central America 498,694 276,724 5,845,086 4,178,033 131,566 256,293 1,947,578 1,377,940 Mexico 584,349 568,456 5,259,135 5,418,970 4,668,636 3,897,071 37,407,525 43,251,880 West Indies 298,238 43,461 6,892,685 1,764,688 7,308 25,007 306,083 537,829 Argentina , 1,059,237 20,983 18,592 6,149 Chile 96,719 675 386,119 355,328 143,741 5,381 1,702,117 1,518,073 Colombia 708,748 356,055 10,921,077 6,592 671 15,460 7,597 164,169 241,368 Peru 266,182 60,732 1,447,519 1,337,086 551,689 203,577 4,802,827 6,999,579 Uruguay 319,013 6,446,757 273,689 12 3,866 2,167 Venezuela 61,778 67,334 1,197,758 848,172 583 84 3,243 3,638 China 201,634 1,367,664 17,813,101 7,760,702 102 768 8,004 7,817 British India , 027,921 31,814,386 440 12,368 Dutch East Indies.. 1,025,798 1,301,999 383,019 530,808 Hongkong 5,660,825 14,730 396 75 Philippine Islands.. 98,434 1,261 1,181,030 714,335 1,286 3 19,956 10,477 British Oceania 563,402 164,180 14,815,734 4,135,016 113 144 4,542 1,456 ,568,718 637,155 5,972,392 981,763 169 12,730 169 12,788 262,841 50,618 20,047,712 6,277,005 49,976 3,429 743,042 1,163,635 Total. 51,298,626 18,308,087 659,582,470 248,730,108 5,912,079 5,855,405 57,726,767 62,959,083 EXPORTS. Spain 1,000 200 717,000 Sweden , 2,643,013 78,000 600 United Kingdom—England. 2,254 5,518 1,260,706 1,576,514 11,712,143 8,787,613 Canada 256,732 2,192,534 2,707,574 20,504,822 1,017,995 166,606 3,934,494 2,087,011 Central America 12,127 284,843 7,350 Mexico 54,935 175,135 5,405,039 3,848,659 195,6 206,002 2,046,197 2,087 351 West Indies 250,844 5,749 708 421,614 Colombia *5o6,"666' 500,000 239,500 805 703 China 100,000 1,029,993 1,512,003 10,253,264 17,932,214 British India "35,'666' 1,179,000 4,445,339 1,894,282 3,149,057 9,857,305 Dutch East Indies 60,000 435,010 French East Indies 528,000 1,320,000 Hongkong 245,770 512,600 9,409,525 3,270,625 673,725 1,240,856 8,402,224 12,561,625 Japan 625,805 3,458,116 47,237 Allother "50," 666' ""3," 542' ""74," 600 242,454 2,200 900 371,111 Total. 607,437 3,431,065 21,729,795 34,165,303 4,803,832 6,599,171 44,430,352 55,894,086 DISCOUNT RATES OF FEDERAL RESERVE BANKS IN EFFECT DECEMBER 31, 1922. Paper maturing within 90 days. Agricultural Bankers' and live-stock Secured by- acceptances paper Federal reserve bank. Commercia . maturing maturing T c r e e r a ti s f a u ic n r a y d t e n s o o te f s V U i b n c o i t t o n e r d d y s S n a t o n a t d t e e s s . acc T ep r t a a d n e ces. a p n a a g d p r e l i i c r v , u e n l - t s . u t e r o a . c l s k , 3 w m i o th n i t n hs.. af b 0 te u m r t 9 o w 0 n i t t d h h a i s y n . s, indebtedness. Boston 4 4 4 4 New York.... 4 4 4 4 Philadelphia. 44 4i 44 44 44 Cleveland 44 44 44 44 44 .C M A S R h t i t . i c i l n c a L h n a n m o g e t u a o a o i p n s o d lis.. 4 I4 * § 4 4 4 4 4 4 4 * * 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 Kansas City.. Dallas 4 4 * 4 4 4 4 4 4 4 4 4 4 4 4 44 San Francisco 4 4 4 4 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

JANUABY, 1923. FEDERAL RESERVE BULLETIN. 127 GOLD SETTLEMENT FUND. INTERBANK TRANSACTIONS FROM NOVEMBER 24, 1922, TO DECEMBER 28, 1922, INCLUSIVE. [In thousands of dollars.} Changes in ownership Transfers. Daily settlements. of gold through trans- Balance in fers and settlements. fund at Federal reserve bank. close of period. Debits. Credits. Debits. Credits. Decrease. Increase. Boston 17,000 583,348 618,782 18,434 35,958 New York 20,000 47,000 2,256,858 2,230,426 568 195,974 Philadelphia... 4,000 1,000 783,051 783,515 2,536 10,444 Cleveland 500 7,000 638,578 18,493 Richmond 1,000 590,974 577,380 14,594 17,100 Atlanta 7,000 1,500 255,654 273,657 i2,"503 19,429 Chicago , 21,000 10,500 1,123,959 1,116,756 17,703 37,613 St. Louis 4,000 1,000 570,142 563,100 10,042 14,953 Minneapolis 500 600 167, OK I 167,852 22,085 Kansas City.... 4,000 411,005 401,261 5,744 29,678 Dallas , 3,000 245,222 243,718 4,504 13,710 San Francisco.. 5,500 316,663 315,455 4,292 37,548 Total, 5 weeks ending- Dee. 28,1922 78,000 78,000 7,930,480 ! 7,930, 480 55,123 55,123 516,580 Nov. 23, 1922 86,000 86,000 8,375,343 8,375,343 653,862 Dec. 29,1921 181,617 181, 617 6,577,616 6,577,616 541,973 Nov. 23, 1921 178,866 178, 860 6,329,987 6,329,987 425,831 MONEY IN CIRCULATION DECEMBER 1, 1922. [Source: United States Treasury Department circulation statement.] Money held by Money in circulation. Stock of money in the United States Kind of money. the United States. Treasury and the Fede S r y a s l t R em es . erve Amount. Per capita. Gold coin and bullion i S3,908,616,985 13,491,973,577 $416,643,408 $3.77 Gold certificates 2(687,677,239) 433,947,295 253,729,944 2.30 Standard silver dollars 428,274,404 367,512,575 60,761,829 .55 Silver certificates 2(330,623,591) 45,210,055 285,413,536 2.58 Treasury notes of 1890 2(1,490,323) 1,000 1,489,323 .01 Subsidiary silver 269,664,609 26,913,811 242,750,798 2.20 United States notes 346,681,016 68,827,445 277,853,571 2.52 Federal reserve notes 2,718,474,010 406,050,141 2,312,423,869 20.94 Federal reserve bank notes. 49,044,400 6,542,892 42,501,508 .38 National bank notes 761,499,127 38,558,854 722,940,273 6.55 Total 8,482,254,551 3 4,885,537,645 4,616,508,059 41.80 Comparative totals: Nov. 1,1922 8,438,661,623 s4,879,914,140 4,570,280.827 41.44 Dec. 1,1921 8,156,446,983 3 4,777,506,737 4,561,218,902 41.93 April 1,1917 5,312,109,272 3 3,896,318,653 4,100,590,704 39.54 July 1,1914 3,738,288,871 3 1,843,452,323 3,402,015,427 34.35 Jan. 1,1879 1,007,084,483 3 212,420,402 816,266,721 16.92 1 Does not include gold bullion or foreign coin outside of vaults of the Treasury, Federal reserve banks, and Federal reserve agents. 2 These amounts are not included in the total, since the money held in trust against gold and silver certificates and Treasury notes of 1890 is included under gold coin and bullion and standard silver dollars, respectively. 3 Includes gold held in trust against gold certificates and standard silver dollars held in trust against silver certificates and Treasury notes of 1890, the aggregate of which should be deducted from the sum of money held by the United States Treasury and the Federal reserve system and money in circulation to arrive at the stock of money in the United States. The amounts of such gold and silver held in trust as of the date of this statement are shown in parentheses in the first column. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

to DISCOUNT AND INTEREST RATES. oo In the following table are presented actual discount and interest rates pre- A comparison of the discount and interest rates prevailing in various centers vailing during the 30-day period ending December 15, 1922, in the various during the 30-day period ending December 15 and the 30-day period ending cities in which the several Federal reserve banks and their branches are November 15 shows relatively little change. The upward tendency which located. A complete description of the several types of paper for which has been noted during the past few months is barely apparent, and only in the quotations are given will be found in the September, 1918, and October, 1918, cases of prime commercial paper and interbank loans. Compared with the FEDERAL RESERVE BULLETIN. corresponding period last year, all rates are lower. DISCOUNT AND INTEREST RATES PREVAILING IN VARIOUS CENTERS DURING THE 30-DAY PERIOD ENDING DECEMBER 15, 1922. Bankers' acceptances, Prime commercial paper. 60-90 days. Collateral loans—Stock exchange. Ordinary loans to District. City. Customers'. Open market. In l t o e a rb n a s. nk C lo a a t n t s le . S w e a c r u e r h e o d u b s y e s c e u c s u t r o e m d e b r y s Unin- 3 to 6 receipts. Liberty 30 to 60 4 to 6 30 to 60 4 to 6 Indorsed. dorsed. Demand. 3 months. months. bonds. days. months. days. months. H. L. H. L. C. H. L. C. H. L. C. H. L. C. H. L. C. H. L. C. H. L. C. H. L. C. H. L H. L. C. H. L. C. H. L. C. N N o o . . 2 1 . . . . N B Bu e o w f s f t a o l Y n o ork.. 5} 6 6 5 } } 4 5 5 } 5 6 4 1 J-5 5 5 } 5 4} 4J-S 5 5 5 1 4 o 4 1 } 4 4 J J-5 6 5 8 1 5 4 41 i 6 5 - 5 7 4 4 } 4 4 4 4 £-4} 44 4 4 6 5 7 } 5 5 4 } 6 5 51 6 6 7 4 5 5 1 5 6 5 } 6 6 6 4 5 5 } 5 5} 1 4 4} * 5 41-5 No. 3.. Philadelphia 6 4} 5 5} 4} 4J 51 4J 4j 6 5 5 6 6 5 5 6 5 5J 5 — 6 4J 5 No. 4.. Cleveland... 7 41 6 6 4} 5 6 4} 5 7 5 6 7 5 6 7 5 7 6 7 6 5 6 Pittsburgh 6 5} 6 4f 4}4| 6 5} 6 4| 4| 4} 4|4J4i 6 5 6 6 5 6 6 5 6 6 6 6 6 6 Cincinnati. 6 5} 6 6 516 6 5 5-5} 4 4 4 4 4 4 6 5 51-6 6 5} 6 5} 6 5 6 6 5 5-5} No. 5... Richmond 6 5 6 5J 41 51 51 4} 51 6 4} 6 5i5|5J 5|5}5| 6 5 6 6 5 6 6 5 6 5 6 6 4}6 Baltimore 6 5 5} 6 5 5} 6 5 5} 6 5 5} 6 5 6 5} 5J 6 5 5} No. 6... Atlanta 7 4} 6 41 4 4J 41 4 41 8 5 6 7 7 7 8 4} 6 8 4} 6 8 4} 6 8 5 6 8 5 6 Birmingham 8 5 6-7 8 4 4f-6 8 4 4j-( 8 5 6 8 5 5-6 8 5 5-6 8 6 8 6 8 6 6-7 W Jacksonville. 7 6 7 6 41 5 6 4J 5 6 6 6 7 6 7 7 6 7 7 6 ' 8 6 7 7 6 7 New Orleans 7} 5 6 4| 4i 4J 4J 41 41 6} 5 6 6i 4 4 6} 4} 5 8 4*51 8 5 6 8 5} i 7} 5 6 7 5 6 Nashville No. 7... Chicago 5} 5 5} 5 5 4J 5 4f 5 5-5} 4 4 4 6 5 5-5} 6 5 5-5} 6 5 5} 6 5 5} 6 5 5-5} 5} 4} 5 Detroit 6 5 6 6 5 6 6 6 6 6 5 6 6 5 6 6 6 6 6 5 6 No. 8... St. Louis 4 5 6 4 5 b"4i 5 5, ??§* ??? 6 4J 5} 7 5} 6 6 5 6 6 4} 5} Louisville 4J6 6 5 6 4} 4} 5 6 6 5 6 6 6 6 6 5 6 Memphis 5} 6 6 6 6 6 6 6 6 6 6 6 6 6 6 6 6 6 6 6 6 6 Little Rock 6 7 8 6 7 5 4f 5 5 4} 5 6 6 4J 41 4} 8 6 7 8 6 7 8 6 7 8 6 7 8 6 7 No. 9... Minneapolis 5 5} 6 5 4J 4f 4f 4 41 41 6 6 6 6 6 6 6 6 6 5} 5} 5} Helena 7 8 8 7 8 7 7, 8 7 7} 8 7 7 7} 7 7} 8 8 8 No. 10.. Kansas City 5 6 7 5 6 5 4 4 7 5 6 7 5 6 8 5 8 5 6 8 6 6 8 5} 6 7 5 6 Omaha 7} 5 6} 71 5 6} 5 4, 8 6 7 71 5} 6} ,6} ??? 8 6 7 8 6 7 7 6} 6} Denver 8 5 6-7 8 5 5-7 5 4; 8 6 6 8 5 6 6 8 6 7 8 6 7 8 5 6 Oklahoma City •9 t il 10 6 7 8 6 7 7 6 6 10 3 6 10 10 6 8 10 6 8 10 6 t8 10 6 7 No. 11.. Dallas 6 5 6 5 5 5J 5 51 6 5 5} 8 6 6* 7 8 6 7 8 8 8 5 6} El Paso 6 8 10 8 8 5J 4 41 10 8 8 9 6 8 10 8 8 8 10 8 8 10 8 8 10 10 8 8 Houston 6 6 7 6 7 5 6 7 6 7 6 7 8 6 7 8 6 6 8 6 6 No. 12.. San Francisco 5 5-5* 6 5 5J-6 6 5J 5} 4} 4 4 i 4} 4 4 6 5 51-6 5 6 6 6 6 6 6 6 6 5} 5} Portland 4|6 8 5 6 7} 6" 7 7 4J 41 8 4 7 6 7 7 8 6J 7 8 6 7 8 6 7 Seattle I 8 4} 7 7 6 6} 6J 5} 51 8 41 7 6 7 8 6 7 6 6 6 8 6 7 8 6 7 5 7 ! 8 6 6}-7 8 6 7 7 6 7 7 6 7 8 6 7 6 7 8 6 7 8 7 8 8 6} 6} 8 6 6 Salt Lake City. 6 7 ! 8 6 7 7 6 6 7 7 7 7 7 8 7 7 8 8 8 7 6 7 Los Angeles 416 (12 41 5J 7 5 6 41 3} 4J 4} 4 41 7 4} 6 5 6} 5 61 8 6 6} 10 6 6| 8 5 61 i Bates for demand paper secured by prime bankers' acceptances—high, 5}; low, 3}; customary, 4-5. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

JANUARY, 1023. FEDERAL RESERVE BULLETIN. 129 FOREIGN EXCHANGE IN 1922. The outstanding feature in foreign exchange cents in December, compared with 12.7 cents in during 1922 was the precipitate fall of the Ger- December, 1921. man mark. From an average rate per hundred The price of silver per fine ounce in the New marks of 52.6 cents in December, 1921, it fell York market rose from 66 cents in December, steadily to an average of about 1.4 cents in 1921, to 72 cents in May, 1922, and then de- December, 1922, which is about one-sixteen clined to 64 cents in December. Shanghai hundredths of its parity of 23.8 cents per mark. taels followed a course similar to that of silver, Sterling rose steadily during the year, from rising from 75.3 cents in December, 1921, to a an average of $4.16 in December, 1921, to $4.61 high of 79.02 cents in June, 1922, and averaging in December, 1922, or from 85.4 per cent to 71.04 cents for December. Indian rupees rose 94.7 per cent of parity. This improvement reflects in part shipments of over $100,000,000 of gold from Great Britain to the United States, GERMAN MARK RATE the general improvement in the British finan- ( PER CENT OF PAR ) cial position, and the decline of British prices 8.0 1 1 8.0 from 20 per cent above to slightly below the 6.0 =*d ' - : 6.0 American level. 5.0 5.0 4.0 4.0 The course of the French and Belgian francs 3.0 3.0 and of the Italian lira during 1922 was similar \ to that of the preceding year, but during the first half of 1922 all three currencies were on a 1.0 ^ 1.0 somewhat higher level. During the latter half 0.8 A 0.8 \ a decided decline of the franc is noted, due 0.6 \ O.6 0.5 i O.5 mainly to unfavorable developments in the Ger- 0.* 1 0.4 man reparation situation. A slight recovery in 0.3 0.3 December brought the French franc to 7.23 0.2 0.2 cents, compared with 7.84 cents in December, 1921. The lira, with an average of 5.03 cents 0.1 \ 0.1 for December, stood somewhat higher than a 0.06 0.08 year ago. Neutral European exchanges gained 0 0 . . 0 0 6 5 1 0 0 . . 0 0 6 5 during the year, both the Swiss franc and the O.04 0.04 Dutch florin going somewhat above par for a 0.03 0.03 short time. 0.02 0.02 Canadian exchange rose from an average of 92.77 cents in December, 1921, until it prac- J. F. M. A. M. J. J. A. S. O. N. D. J. F. M. A. M. J. J A. S. O. N. D. 1921 1922 tically reached parity in August, 1922. October and November averages were slightly above par, but the December average receded to 99.45 from 27.45 cents in December, 1921, to 30.65 per cent. cents in December, 1922, owing to improved Of the leading South American exchanges, conditions in India and to the advance m sterthe Argentine and Chilean pesos improved con- ling. Japanese yen remained fairly steady siderably. From December, 1921, to Decem- throughout the year, with fluctuations between ber, 1922, the Argentine peso rose from an aver- 48 and 49 cents per yen. age of 74.8 cents to an average of 85.6 cents, The general foreign exchange index, based on and the Chilean peso from 10.8 cents to 12.4 the weighted average of 17 leading countries not cents. The Brazilian milreis, after a rise dur- including Germany, rose from 64 for December, ing the earlier half of the year, declined to 11,9 1921, to 70 (preliminary) for December,1922. i Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

130 FEDERAL RESERVE BULLETIN. JANUARY, 1923. FOREIGN EXCHANGE INDEX 1918 - 1923 —•FRANCE -GENERAL INDEX (EXCLUDING GERMANY) •ARGENTINA ITALY -ENGLAND ---.--~—~ NETHERLANDS -JAPAN CENT 110 PAR 90 SO 70 60 50 40 30 20 10 - 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. J. F. M.A. M. J. 0. A. S. 0. N. D. d. F. M. A. R J. J. A. S. 0. N. D. J. F. M.A. M.J. J. A. S. 0. N. 0. 1318 1919 1920 1921 1922 1923 FOREIGN EXCHANGE BATES. [General index for December, 1922, 70 (preliminary); for November, 1922, 67; for December, 1921, 64. Noon buying rates for cable transfers in New Yon u> published by Treasury. Rates in cents per unit of foreign currency.] COUNTRIES INCLUDED IN COMPUTATION OF INDEX. Index (per cent Low. High. Average. of par).1 Par'of Monetary unit. exchange. Decem- Novem- Decem- Novem- Decem- Novem- Decem- November. ber. ber. ber. ber. ber. ber. ber. "l- Belgium Franc. 19.30 6.4200 5.6400 6.9500 6.7600 6.6448 6.3700 34.43 33.01 Denmark "rone.. 26.80 20.3800 20.1300 20.9900 20.4100 20.6700 20.2071 77.13 75.40 France Franc. 19.30 6.9700 6.2000 7.6100 7.2100 7.2296 6.8583 37.46 35. 54 Great Britain Pound. 486.65 451.9800 444.8800 467.9900 452.1000 460.9800 447.9921 94.73 92.06. Italy ., Lira.. 19.30 4.8200 4.0600 5.1300 4.8200 5.0340 4.5063 26.08 23.35 Netherlands Florin.. 40.20 39.5200 39.0700 i 40.1300 39. 5800 39.8368 39.2729 99.10 97.69 Norway Krone.. 26.80 18.4900 18.1900 ! 19.2400 18. 5400 18.9396 18.3658 70.67 68.53 Spain ... Peseta. 19.30 15.3600 15.1600 15.7900 15.3900 15.6356 15.2750 81.01 79.15 Sweden .• Krona.. 26.80 26.9000 26. 7600 27.0300 26.9600 26.9484 26.8442 100.55 100.16 Switzerland Franc. 19.30 18.7100 18. 2100 19.0000 18.7900 18.9100 18. 4358 97.98 95.52 Canada Dollar 100.00 98.5605 ! 99.9236 99.9S74 100.1014 i 99.4484 100.0290 99.45 j 100.03 Argentina j Peso (gold) 96.48 83.7500 [ 81.5100 I 86.3700 84.0500 85.5688 82. 22S3 88.69 85. 23 Brazil j Milreis , 32.44 11.6200 I 11.2700 | 12.2400 12.6200 11.9452 11.9488 36. 82 36. 83 Chile j Peso (paper) | 2 19.53 11.8500 11.8100 i 13.0500 13.4200 12.1064 12.3825 63.52 63.40 China j Shanghai taol... *66.85 70.4500 ! 70.4300 72.0700 73.8400 71.0444 71.8725 106.27 107. 51 India Rupee 48.66 30.0300 29.1000 31.1100 30.0600 30. 6488 29. 5108 62.99 60.65 Japan Yen 49.85 48.5100 48.1000 48.9900 48. 5200 48.8500 48.3729 97.99 97.04 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

JANUARY, 1923. FEDERAL RESERVE BULLETIN. 131 FOREIGN EXCHANGE RATES—Continued. OTHER COUNTRIES. Tndex (per cent of Low. High. Average. par).' Monetary unit. Par of exchange. Decem- Novem- Decem- Novem- Decem- Novem- Decem- November. ber. ber. ber. ber. ber. ber. ber. Austria i Krone 20.26 0.0014 0.0013 0.0014 0.0014 0.0014 0.0014 0.01 0.01 Bulgaria ! Lev 19.30 .6783 .0550 .7180 .7000 .6997 .6835 3.63 3.54 Czechoslovakia j Krone 2. 7256 3.1500 3.1878 3.2439 3.0969 3.1758 Finland i Markka 19.30 2. 488S 2.4975 2. 5263 2.7463 2. 5124 2.5609 13.02 13.27 Germany i Reichsmark 23.82 .0118 .0118 .0186 .0224 .0136 .0147 .06 .06 Oreece ! Drachma 19.30 1.0000 1. 4300 1.4200 2.0400 1.2337 1.5925 6.39 8.25 Hungary Krone 20.26 .0396 . 0399 . 0437 .0429 .0430 .0413 .21 .20 Poland Polish mark.... . 0054 .0060 .0060 .0072 .0057 .0065 Portugal | Efcudo 108.05 4. 2500 4. 3400 4. 8500 6. 4100 4. 5212 4.9921 4.18 4.62 Rumania ' Leu 19.30 . 5775 .6169 .6338 .6628 .6111 .6417 3.17 3.32 .2681 .3319 .3497 .4128 .3047 .3912 19. 30 1.0750 1.3329 1.4014 1.6500 1.2231 1.5691 6.34 8.13 Cuba i Peso 100.00 99. 8875 99.8063 I 100 0500 99.9250 99.9450 99.8779 99. 95 99.88 Mexico do. 49.85 48. 3125 48.2625 I 48. 7625 49.7344 48. 4468 48.7620 97.19 97.82 Uruguay do.. 103.42 i 80.9800 77.5500 ! 85.4500 I 81.1300 84. 2120 | 79.4613 81.43 76.83 China i Mexican dollar.. M8.ll 51. 4200 51. 3300 52. 9000 I53.8300 52.0288 I 52.4842 108.15 109.09 Hongkong Dollar 2 47.77 52. 5000 52.9300 54. 0500 55.1300 53. 2288 53.8150 111.43 112.65 straits Settlements • Singapore dollar. 56.78 51.9600 51. 7500 53. 6700 52.3300 53.0100 52.005S 93.36 91.59 1 Based on average. U913 average. SILVER. [Average price per fine ounce.] December. November London (converted at average rate of exchange) $0.65104 JO. 66331 New York .64250 .65485 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

132 VKDEUAT., KESIUiVE BUIJ.KT1K. .IAN'UAUY, 19:2". FINANCIAL STATISTICS FOR PRINCIPAL FOREIGN COUNTRIES. A summary of banking and financial conditions abroad is presented statistically in the accompanying tables. ENGLAND. [Amounts in millions of pounds sterling.) D c l e a p o n o u d s n i t t a s n , d a B n a d T n r k e n a o o s t f u e r l y in a . c g - - Nine Lo h n a d n o k n s ." clearing Gove i r n n g m d e e n b t t. float- Discount rates. 3 I Year and month. as "6 ! S3= xi §3 i1 I © a 2 i s S 2 H . m Average of end ot Per Per i P«r month figures: I cent. een(. ! cent. 1913 29 57 38 15 i 4J 1 1JJ 1 1 9 9 2 2 1 0 1 1 0 0 8 3 3 3 2 4 7 8 1 1 3 4 6 7 1 1 5 4 7 6 1,176 309 [ 1,768 1 1 , , 1 0 3 7 9 8 1 1 , , 2 3 1 2 1 2 7 6J 6 51 T' 5 « ! « 7 1 ,'j 1 9 10 9 .5 0 1 7 ) 1921, end of— November.. 106 313 144 157 ,205 311 1,793 ' 1,108 : n \ n 112.4 December.. 107 32<i 123 157 ,191 315 ! 1,818 1,060 J 200 i,260 38 I 3J 112. 1 1922, end of— January 103 305 135 157 114 ,192 333 i 1,826 1,039 116 1,154 31 118.2 February... 102 298 138 157 111 ,152 357 1,802 957 I 112 1,069 3 3ft 118.0 March 103 300 151 157 103 ,097 369 j 1,747 882 | 147 1,030 118.3 April 102 303 134 157 107 ,06.', 378 1,737 759 ' 193 951 28 118.0 May 103 298 130 157 109 ,061 3U2 1,745 771 172 943 2k 2H 118.2 June 103 295 i;u 157 113 , 070 388 1,755 761 j 205 96.'. 2 if i 2! 2* 118. 2 J A S u e u l p y g t u e s m t ber. 1 1 1 0 0 0 1 4 3 2 2 2 9 8 9 6 9 3 1 1 1 2 2 2 1 4 2 1 1 1 5 5 5 4 4 4 1 1 n 0 0 o 4 5 , , , 0 0 0 2 0 5 0 7 6 3 3 3 » 8 8 0 1 6 1 1 1 , , , 6 7 6 8 6 3 8 0 0 7 7 72 1 5 4 5 5 ! 1 1 U 5 5 S 3 9 I 8 8 9 7 6 1 2 8 4 2 1 J A 2 I ^ ll 1 1 1 2 2 2 2 0 1 . . . 7 3 3 October 101 2X7 125 154 105 ,033 370 1,686 740 179 919 f 2«" 123.0 November . 102 288 121 154 98 1,031 365 1,667 732 ISO 911 2J 124.6 December.. 104 301 133 154 719 222 941 24 125.8 nab -nru o Q 2 o o a "§8 % Per cent • 1,370 11.7 3,252 15.2 2,911 10.3 2,921 3,173 3,399 6.1 3,088 3,452 3,305 "7.2' 3,307 2,917 3,236 5.9 2,885 2,690 3, 124 2,989 2,769 tebm 3 1 sV. 21 40 33 71 100.0 73 102.1 158 105.8 71 107.3 40 11.3.3 100 113.1 52 112.8 29 111.1 43 114.7 21 114.0 7 31 19 15 1 Less notes In currency notes account. ! Held by the Bank of England and by the Treasury as note reserve. s Average weekly figures. * Statist figure revised to exclude Germany. » Compilation of London Economist. Ratio of net profits to ordinary and preferred capital of industrial companies, exclusive of railways, mines, insurance companies, and hanks. Applies to earnings disclosed during the quarter aud has therefore a probable lap of six months. • Compilation of the Bankers Magazine. 7 Compilation of the Statist. FRANCE. [Amounts in millions of francs.1 Bank of France. Government finances. Savings Value of Year and month. res G e o rv ld es. re S s i e l r v v e e r s po D si e t - s .- Ci t r i c o u n l . a- A m p G u d t e o o r v n p v o a t t o e f n h r s f e c n o e e - s r s r G e m v o e v e n e n u r t n e - / t D io B d e N n f e o e a a l n n a - l s s e e .' In d t e e b rn t. al E d x e te b r t n .' al i c P e p r 3 e n r e n i t t c p t u e e e p a . r e o « l r f - c A b l o d e P a f v a a a n e r i r r l i t k i y h a n s s e g g . e s p b o e d o w s a x r f i o n c i a t d t r s e w k h e ( s s - - - s - l , -) a u n F p p i s d s n l o r t a s e o e n u c b n w c e e k o c t d s h h n e d the war. als (-). market. 1913, average. 3,343 629 830 5,565 320 35,000 8677 I 59 -65 1920, average. 3,586 253 3,527 38,066 26,000 1,005 ! 57.34 I '- 554 +18 1,654 1921, average. 3,568 274 2,927 37,404 25,300 1,103 56.56 550 + 67 1,100 1921. October 3,575 278 2,563 37,151 , 25,100 1,305 35,286 54.30 463 +33 i 3,355 November 3,576 279 2,563 36,336 24,500 1,051 54.90 505 -0.5 1 434 December 3,576 280 2,743 36,487 24,600 1,228 1 242,758 ! 34,779 54.75 527 +38 1 853 1922. January 3,576 280 2,392 36,433 23,000 1,323 56.55 489 +41 February 3,577 281 2,429 36,151 ! 22,500 1,011 59.55 489 + 100 5,062 March 3,578 282 2,236 35,528 21,500 1,154 60,839 j 213,857 35,716 56-70 455 +19 377 April 3,579 283 2,412 j 35,787 i 22,100 1,381 61,528 i 57-60 411 +58 159 May 3,579 284 2,303 35,982 ! 23,100 1,176 62,890 I 57.70 451 +55 644 June 3,580 285 2,418 36,039 ! 23,300 1,225 57-95 171 +53 947 July 3,582 285 2,432 36,050 : 23,000 1,472 62,525 218,283 35,685 58.25 562 +62 485 August 3,583 286 2,170 I 36,385 ! 23,900 1,168 62,936 60.10 512 +66 151 September 3,584 287 2,199 : 36,603 j 21,000 1,154 63,101 61.10 484 +58 636 October 3,635 288 2,170 36,691 I 23,600 1,503 58.25 556 + 17 421 November 3,636 289 2,184 I 36,111 I 22,900 1,207 59.00 +13 December 3,670 289 2,309 J 36,359 j 23,600 59.02 »Not including gold reserve held abroad. ' Figure for the last Wednesday in the month. 2 Includes Treasury and individual deposits. s Average for 11 months. ' Foreign debt converted to francs at par. 8 Estimate in the French Senate. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

JANUARY, 1923. FEDERAL RESERVE BULLETIN. 133 ITALY. [Amounts in millions of lire.] Banks of issue. Leading private banks.1 Government finances. Index Loans, Y m ea o r n a th m . i c L o a d o u i n s a n d - n t s s. s ( e i r r o e v - ld e. s T e r o r e v t - a e l . i l D m t i t s a d i e a b e e p a n - s i n o l . d i s d - - l c C a m i c t r o i i e c a o m r u l n - - - . a C ti c o s o i t c r f n a c o t t u u h e f l o n . e a r t - Cash. d c s u c o p e d a o u o i n r s f n n r - r d e o d ts - m - , i s D d c t e p s u o e n o e r p a t n r o s n e d t . s o d - - - n r S e c o t n u a te c r t - e s y . m T s li e u r c e r e r t v a y a r e e s l - . - - S t t b r u h e e i r r o l a l m y r s s t . - - p d T e u o b b t t l a . i * l c m d P r n u r o e p u i r n v n a i e l n t e c s h - i g - .3 p s b e r t e i i c r e c u s s e r s o i . - f ' ents. 1913,end of Dec 857 j .175 1 661 318 2,284 129 2,007 1,674 499 117 1920,endof Deo. 7,074 ,058 2,077 2,563 8,988 10,743 1,308 16,539 15,810 2,268 161 13,200 1921, average.. 7,509 , 07-1 2 O'O 2 352 9,304 9,061 1,200 16,242 16,001 2 267 170 1,019 87 12 1921, end of— October ...! 7,8lti , 08B 1,990 2,243 9,746 8,554 1,364 17,185 17,022 2,267 159 22,997 110,754 1,401 91.07 November., 7 810 089 1 948 2 151 9 435 8 485 1 174 12 844 '12 778 2 267 159 648 83 99 December .> 10,020 ,092 1,999 2,913 10,304 8,505 1,997 11,797 12,502 2,267 170 24,600 111,900 1,458 80.13 1922, end of— January ... 10,15(5 ,109 1,996 2,848 10,183 8,570 1 426 11,334 11,616 2,267 170 909 96.61 February.. 10 029 I 100 1,971 2 562 9,631 8,626 1 081 11 446 11 482 2 267 170 1,366 94 10 March I 9,833 118 1 956 2 687 9,589 8,523 965 11,407 11,403 2,267 170 759 88.82 April 10 113 122 1 904 2 473 9,360 8,350 908 11,752 11,708 2,267 170 1 337 88.43 May.. ' !>, 323 104 1,963 2 572 9,259 8,081 841 11,732 11,698 2,267 169 667 93.13 June.. D,.r.05 ,106 1,976 2,740 9,615 8,049 845 11,980 11,863 2,267 170 24,108 113,204 1,454 94.83 July | !), O.'l ,125 1,991 2,524 9,947 8,050 861 12,118 11,896 2 267 170 783 95. IS August j 0 OHO 125 2 024 2 605 9 695 8 050 763 12 164 11 883 2 267 1 306 103 01 September.1 8,801 125 2 024 2 499 9,924 8,066 769 12,106 11,897 2,267 25,202 682 105.68 October.... 8 501 136 2 039 2 641 9 782 8 075 2 267 1,354 109.90 November.! 8, («25 ,141 2,034 2,480 9,892 8,074 730 111.94 1 Includes Haiioa Commerciale Italiana, Credilo Italiano, Banco di Roma, and Banca Italiano di Sconto until November, 1921. - Includes paper circulation of the State and of banks on account of the State. 3 Revenues from State railways; from post, telegraph, and telephone; from State domain; from import duties on grain; and from Government sales of sugar are not included from November, 1921. ' Figures for IU2I Iwsed on quotations of Dec. 31, 1920-100; those for 1922 on quotations of Dec. 31, 1921=100. GERMANY. [Amounts In millions of marks.) Index of securi- Reicbsbank statistics. Government finances. ties prices.1 Value of Darlehns- new stock kassen- and bond V m eu o l* n t a h n . d se (i r r o e v - l e d .1 t c r o e b D u a i s n l is l u t - s e r . y d i: m p o C a e u d o p r i n s c m e - t i e r a - . d l . l c a N i t r i o o c t u n e - .1 Deposits. Clearings. i s l n a c t h c i e i o r i n c n u . e 1 - R t e f a r c x o e e m i s p . ts r R o a f e i l v w s e t a n a y t u e s e .s T b ta i r l e n l a s d s i o u n u g r t y . - 1 sto 2 c 5 ks. bo 1 n 5 ds. p m G la e a c r r e m k d e a o t n . n 1913, average...! 1,068 1,958 0,136 207 13 = 220 1920, average...; 1,092 47,980 53,964 17,702 57,898 13,145 1921, average... j 1,056 83,133 80,952 20,213 89,297 8,861 6,285 2,358 192,832 2,658 1921. November 994 114,023 1,446 100,944 25,313 140,493 7,330 7,044 3,397 226,676 «269 • 181 7,135 December 995 132,331 1,062 113,839 32,906 120,835 8,325 8,016 4,329 246,921 '206 »147 5,965 1922. • January ! 996 12U,16J 1,592 115,376 23,412 116,680 8,046 8,802 4,415 255,678 223 152 4,831 February 996 131,252 1,857 120,026 26,526 109,816 7,977 9,014 4,659 262,817 222 154 2,101 March ! 997 146,531 2,152 130,671 33,358 170,357 8,701 14,065 7,096 271,935 274 169 6,416 April i I 001 155,618 2,403 140,420 31,616 175,977 9,183 13,193 8,997 280,935 205 268 3,992 May 1,003 167,794 3,377 151,949 33,128 179,370 9.440 17,619 10,984 289,246 242 297 4,152 June 1,004 186,126 4,752 109,212 37,174 191,414 10,374 17,776 12,781 311,600 224 298 2,762 July | 1,005 207,858 8,122 189,795 39,976 243,493 12,234 21,547 15,396 307,810 282 430 2,330 S A e u p g t u e s m t ber ! j 1 1 , , 0 0 0 0 5 5 2 34 4 9 9 , , 7 7 7 6 0 6 2 5 1 0 , , 2 7 3 0 4 4 2 31 3 6 8 , , 8 1 7 4 0 7 1 5 1 6 0 , , 1 0 2 1 4 2 4 3 7 7 3 4, , 8 7 5 1 6 5 1 13 3 , , 9 3 9 8 5 3 3 3 1 1 , , 4 0 6 9 6 2 2 1 5 8 , , 3 0 3 5 2 3 3 4 3 5 1 1 , ,0 0 0 0 0 0 2 4 9 4 9 5 1,9 66 3 2 3 2 7 , , 4 9 6 3 8 7 O N D c o e t c v o e e b m m e b r b e e r r 1 1 1, . , 0 0 0 0 0 0 7 5 5 1, 6 1 4 7 8 7 2 4 7 , , , 2 4 2 2 0 6 2 1 4 2 4 1 4 2 0 6 2 1 , , , 9 2 1 3 1 5 5 9 5 1, 4 2 7 6 8 5 9 4 0 . , , 4 0 0 5 8 9 7 6 5 2 1 5 4 4 3 0 0 0 , , 9 5 7 6 2 7 9 6 9 1 1 13 4 3 , . , 4 0 8 5 0 0 0 9 9 1 5 0 0 3 , , 1 6 7 5 5 8 58,161 , 1, 6 8 4 1 3 9 4 9 5 . . , 0 0 0 0 0 0 0 0 0 2 2 , ,6 1 6 2 6 5 3 9 3 2 4 5, , . 1 6 « 1 6 2 9 2 1 7 5 , , 1 2 8 2 7 3 I • End of month. 2 End of March, 1913. 3 Calculated by the Frankfurter Zeitung with prices of 25 stocks, 10 domestic and 5 foreign bonds (prices as of Jan. 1, 1921 = 100). These figures, recently revised, now include subscription privileges which were heretofore omitted. Figures are as of beginning of month. < As of Nov. 10,1921. As of Dec. 30, 1921. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

134 FEDERAL RESEBVE BULLETIN. .lANUARl', 1923. NORWAY. [Amounts in millions of kroner.] ]Gorges Bank Private commercial banks (103). Bankrupt- Year and month. ho G ld o i l n d gs. circ N u o la te tion. Deposits. L di o s a c n o s u a n n ts d . C C l h e r a i r s i t n ia g n s ia a . t di L sc a o o n a u d n n s ts. Deposits r a e g s T g o o r u e t r g a c l a e t s e . cies. Number. 1914, end of July.... •84 123 14 8<! 147 451 102 419 652 3,921 3,382 32 1921,average. 147 417 111 443 537 3,840 3,338 5,164 86 1921, end of— 147 395 121 439 538 3,(177 3,231 5,113 88 147 410 -141 476 551 3 508 3,305 4,944 84 1922, end of— 147 378 131 433 524 3 413 3,202 4,805 89 147 376 141 428 494 3,346 3,172 4,755 87 147 385 151 449 628 3 280 3,124 4,690 107 April 147 386 143 447 516 3,302 3,118 4,755 78 Mav 147 152 446 525 3,307 3 086 4,783 129 117 385 133 441 532 3,354 3,080 4,804 94 July 147 382 137 445 466 3,364 3,083 4,810 68 H7 385 133 445 468 3,295 3,036 4,781 79 147 384 135 444 447 3,260 3,004 4,737 59 October 1-17 383 173 490 581 3,178 2,936 4,636 72 147 372 141 446 2,172 2,887 4,640 73 1 Includes balances abroad. SWEDEN. [Amounts in millions of kronor.) Joint-stock Government foreign Protested banks. finances. cb e a i n - ge during month.' Busi- Index o V fs a t l o u c e k index, Year aud mouth ( c a b J o u u o i d l l n d - l c a N i t r o i c o t u e n - . po D s e i - ts C in le g a s r . - co R w B d u i i n i i k s l t t l - h s e s - d a c L n o d o u a n d n t i s s s . - F S d u e n ta b d t t e e . d F S d i l e t n o a b g a t t e t . - v ( a r a f k e b o l c r n u r r u o e o c e r n i i a - g o e a d n s f N b u e m r. - Value. m du u f o a r r n i i e l t n s - h g .' p A b s r t e i o l r c i c s e o k t s f . - ' d m r t u e e t o h r r g i n e e i n s d t g - h. lion. bank. 1913, end of December.. 102 235 108 585 139 2,287 628 20 4,314 2 309 258 24 1920, average 269 733 226 3,596 476 6,008 1,281 248 112.9 3,586 6 196 176 61 1921, average 280 661 193 2 715 389 5 948 121 8 6,907 15 432 121 31 1921, end of— October 276 650 126 2,310 341 5,837 1,393 63 124.9 6,449 13 505 107 17 November 275 628 188 2,364 354 5, 735 1,409 77 124.0 6,089 13 491 104 IS December 275 628 331 3,305 464 5,656 1,433 78 126.3 6,298 10 528 107 21 1922, end of— January 275 563 337 2,332 421 5,654 1,434 84 126.6 6,345 9 509 109 18 February 274 579 346 2,122 429 5,572 1,435 87 129.2 6,272 10 398 94 ia March 274 626 312 2,354 447 5,474 1,435 90 128.3 7,559 13 513 89 29 April 274 582 301 1,936 404 5,430 1,434 92 126.6 6,965 12 400 100 15 May ' 274 567 293 2,162 380 5,378 1,642 97 121.8 7,581 10 430 115 50 June 274 585 247 2 118 320 5,388 125 6 6 599 10 ^62 113 63 July 274 551 243 2 015 307 5,268 127.0 6,417 12 374 113 35 August 274 559 213 1,8C3 293 5 221 128.8 5,461 6 300 110 22 September 274 605 180 1,902 288 5,181 130.5 4,993 5 371 103 14 October 274 569 178 1,995 206 5,149 131.7 5,357 6 335 98 15 November 274 575 191 252 5.099 132.2 5,009 4 353 90 59 1 Source: Kommersiella Meddelanden. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

JANUARY, 1923. KKDERAI, RESERVE JUII.LBTXN. 135 JAPAN.' [Amounts in millions of yen.] Capital Year and month. projected. 1913, average 1921, average 1921. Knd of— November December 1922. I!nd of— January 1,377 1,241 2,246 9.02 February 1,246 1,223 2,438 9.02 2,162 1,362 j March 1,289 1,289 3,099 9.09 2,185 1,359 ! April 1,226 1,263 2,809 9.34 2,235 1,359 May 1,203 1,203 3,143 9.42 2,264 1,359 June 1,344 1,223 3,178 9.45 2,241 1,359 July 1,224 1,220 2,766 9.38 2,277 1,359 August 1,280 1,132 2,582 9.42 2,304 1,359 September 1,237 1,069 2,750 9.38 2,369 1,359 October 1,236 1,068 2,697 9.38 November 1,241 1,066 2,971 December 1,590 1,064 1 Figures apply to last day of month in case of Bank of Japan to last Saturday of the month for other items. ' This includes the specie segregated against notes only. It includes gold credits abroad as well as bullion and coin at home. 3 During January, February, April, October, November, and December, 1913, Government deposits averaged 4,198,000 yen. During the rest of the year there was an average monthly overdraft of 8,942,000 yen. «Tokyo market. ARGENTINA. [Amounts in millions of pesos.] Banco de la Naeitfn. Banks.1 Caja de Conversi6n. Liabili- Clear- ties of Year and month. (p p a D o p s e i e - t r s ). c v o a D a a n u n d is c n d - - e ts s Gold C . as _ h _ p . P e a r - _ . _ (p p a o D p s e i e - t r s ). ( v c p o a D a a a n u n p d is c n d e - - e t r s s ). Gold C . as P h a . per. (p l N a a t p o io e te n r). s G e r r e o v - ld e. p b G o l o e d s i o g n e n it l - a d e d - s d ( B p A i u a n i i p e n r g n e e s s o r) s . ( m d p b r u c a u a o r i p n p e n i e n k t s t - r h g - ). (paper). tions. End of— 1913.. 541 478 32 180 1,464 1 541 62 435 823 263 1,471 14 1919.. 1,250 676 39 268 3,010 2,113 66 771 1,177 320 79 2,805 3 1920.. 1,412 804 25 406 3,530 2,505 46 1,081 1,363 476 4 3,612 5 1921.. 1,310 866 23 410 3,375 2,543 36 1,087 1,363 476 4 3,045 12 End of— October 1,311 S03 TJ 448 3 391 2 467 36 1,172 1,363 466 4 2,909 16 November. 1,293 840 23 463 3,359 2,501 36 1,150 1,363 466 4 2,133 13 December.. 1,310 866 23 410 3,375 2,543 36 1,087 1,363 466 4 3,482 13 1922. End of— January 1,310 S87 23 419 3,362 2,52!) 36 1,064 1,363 466 4 3,014 10 February.. 1,310 913 23 383 3,362 2,565 36 994 1,363 466 4 2,593 t March 1,272 884 23 383 3,313 2,512 36 981 1,363 466 3,298 It April 1 283 887 9'} 393 3 304 2 489 36 999 1 363 466 11 May 1,294 906 23 386 3,278 2,461 35 1,016 1,363 466 3,016 13 June 1,329 933 23 395 3,326 2,461 35 1,060 1,363 466 2,716 * July 1,322 920 23 399 3,308 2,473 35 1,013 1,363 466 2,814 7 August 1,353 946 23 407 3,356 2,491 35 1,041 1,363 466 2,570 7 September. 1,346 950 23 402 3,379 2,514 35 1,048 1,363 466 2,725 1( October 1,328 921 23 405 3,354 2,549 35 1,028 1,363 466 4 2,827 11 > Including figures of Banco de la Nacidn. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

INDEX. Acceptances: Page. Denmark: Held by Federal reserve banks 109 Foreign trade 91 Purchased by Federal reserve banks 107 AVholesale prices 82 Agricultural movements, index of 96 Deposits of member banks with city correspondents Argentina: and Federal reserve banks 25 Banco de la Nacion, condition of 71 Deposits, savings, of commercial banks 92 Bond issues 70 Directors of Federal reserve banks, election of 24 Business and financial conditions 69,135 Discount and open-market operations of Federal re- Business failures 69 serve banks: Foreign trade 69 Acceptances held 109 Government finances 70 Acceptances purchased 107 Wool exports 69 Bills discounted 106 Australia, wholesale prices in 82 Bills held 108 Austria, cost of living in 86 Earning assets held 108 Automobile financing 41 Number of banks discounting 106 Bank debits 121 Rates of earnings 108 Banking and credit during 1922 1 Volume of 106 Belgium: Discount rates: Cost of living 86 Federal reserve banks 126 Wholesale prices 82 Prevailing in various centers 128 Brazil: Dutch East Indies, wholesale prices in 82 Business and financial conditions 72 Egypt, wholesale prices in 82 Coffee crop 72 England: Foreign exchange 72 Cost of living 86 Foreign trade 72,91 Financial statistics 132 Government and State finances 73 Foreign trade 89 Building statistics 100 Index of industrial activity 87 Bulgaria, wholesale prices in 82 Prices, course of 50 Business and financial conditions: Wages 51 Argentina 69,133 Wholesale prices 50,78, 82, 84 Brazil 72 Failures, commercial: England 50,132 Argentina 69 France 53,132 United States 93 Germany 61,133 Federal reserve agents, election of 25 Italy 133 Federal reserve banks: Japan 133 Condition of 110,112 Mexico 73 Directors, election of 24 Norway 133 Discount and open-market operations of 106 Sweden 133 Federal reserve note account 116 United States 7 Fiduciary powers: Index of 95 Exercise of, by national banks in Pennsylvania. 20 Canada: Granted to national banks 24 Foreign trade 91 Finance companies 37 Retail prices 86 Foreign exchange index 129 Wholesale prices 77, 79, 82, 85 Forged Government check, opinion of court on Cannes Conference 31 right of Federal reserve bank to charge back. ... 22 Charters issued to national banks 24 Check clearing and collection: Foreign trade: Gold settlement fund transactions 127 Argentina 69 Number of banks on par list 125 Brazil 72,91 Operations of the system during December .. . 125 Canada 91 Rehearing denied in Richmond par clearance Denmark 91 case 20 England 89 China, wholesale prices in 82 France 90 Clearing-house bank debits 121 Germany 90 Commercial failures 93 India 91 Condition statements: Japan 91 Argentine banks 71 Netherlands 91 Federal reserve banks 110,112 Sweden 91 Member banks in leading cities 110,117 United States 91 Correspondent banks, deposits of member banks Index of 92 with 25 France: Cost of living, foreign countries, index of 86 Bons de la defense nationale 53 Cotton fabrics, production and shipments 94 Financial statistics 132 Currency in circulation 127 Foreign trade 68,90 Czechoslovakia, retail prices in 86 Index of industrial activity 87 Debits to individual account 121 Internal floating debt 53 i Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

ii INDEX. France—Continued. National banks: Page. Retail prices in Paris 86 Charters issued to 24 Wholesale prices 68, 79,82, 84 Fiduciary powers granted to 24 Freight rates, ocean 93 Netherlands: Germany: Foreign trade 91 Cost of living 86 Wholesale prices 82 Financial statistics , 133 New Zealand: Foreign trade 90 Cost of living 86 Index of industrial activity 88 Wholesale prices in 82 Mark, stabilization of 45,61 Norway: Report of foreign experts on 45 Financial statistics 134 Reparations, review of past three years 29 Wholesale prices 82 Wholesale prices 82,84 Ocean freight rates 93 Gold imports and exports 18,126 Par list, number of banks on 125 Gold-settlement fund transactions 127 Per capita circulation 127 Imports and exports of gold and silver 18,126 Physical volume of trade 95 Index numbers: Poland: Cost of living, foreign countries 86 Cost of living 86 Foreign exchange 129 Wholesale prices 82 Foreign trade 92 Prices: Industrial activity—England, France, Ger- Course of, in England 50 many, Japan, and Sweden 87-89 Retail, in principal countries 80 Ocean freight rates 93 Wholesale, abroad 77,82 Physical volume of trade 95 Wholesale, in the United States 78,80,82,84 Retail prices in principal countries 86 Rates, discount 126,128 Wholesale prices abroad 77, 82 Regulation B, amendment to 19 Wholesale prices in the United States... 78, 80, 82, 84 Reparations, German, review of, for past three India: years 29 Cost of living 86 Reserve ratio of Federal reserve banks Ill Wholesale prices 82 Resources and liabilities: Foreign trade 91 Federal reserve banks 112 Interbank deposits of member banks 25 Member banks in leading cities 117 Interest rates prevailing in various centers 128 Retail prices in principal countries 8G Italy: Retail trade, condition of 101 Financial conditions 133 Richmond par clearance case, rehearing denied.. 20 Retail prices 86 Rulings of the Federal Reserve Board: Wholesale prices 82, 85 Amendment to Regulation B 19 Japan: Savings deposits of commercial banks 92 Financial statistics 135 Silver imports and exports 18,126 Foreign trade 91 South Africa: Index of industrial activity 89 Cost of living 80 Wholesale prices 79, 82 Wholesale prices 82 Knit goods production 93 Spa agreement respecting German reparations 29 Law department: Spain, wholesale prices in 82 Petition for rehearing denied in Richmond par State banks admitted to system 24 clearance case 20 Sweden: Exercise of fiduciary powers by national banks Financial statistics 134 located in Pennsylvania 20 Foreign trade 91 Right of Federal reserve banks to charge back Index of industrial activity 88 forged Government check 22 Retail prices 80 London Conference, third, August, 1922 33 Wholesale prices 82,85 Manufactured goods, index of 96 Mark, German, stabilization of 45,61 Switzerland: Report of foreign experts on 45 Cost of living 86 Maturities: Wholesale prices 82 Acceptances purchased 107 Trade: Bills discounted and bought 107,115 Foreign. (See Foreign trade.) Certificates of indebtedness 115 Physical volume of 95 Member banks: Retail 101 Condition of 110,117 Wholesale 105 Deposits with city correspondents and Federal Treasury financing 5 reserve banks 25 Victory notes, redemption of 5 Number discounting 106 War savings certificates, redemption of 5 Number in each district 106 Wholesale prices: State banks admitted to system 24 Abroad 77,82 Mexico, banking conditions in 73 In the United States 78,80,82,84 Mineral products, index of 96 Wholesale trade 105 Money in circulation 127 Wiesbaden agreement 30 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

FEDERAL RESERVE DISTRICTS 8 NJ I f V J f ^ . t— { 7} ) ^4/~%X- Omaha* C 1 ^ OHIO W^^rZ A 1 r*\— lr>ir>rinnau f ,„„.. «• , [j11 TEXAS V'\ 'BOUNDAhrES OF FEDERAL RESERVE DISTRICTS \ 1* 8^ BOUNDARIES OF FEDERAL RESERVE BRANCH TERRITORIES N. \ ^ FEDERAL RESERVE BANK CITIES ^ L,^ FEDERAL RESERVE BRANCH CITIES V/"1 \ FEDERAL RESERVE BANK AGENCY ^v^J o Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis