Federal Reserve Bulletin, 1925-03

FEDERAL RESERVE BULLETIN MARCH, 1925 ISSUED BY THE FEDERAL RESERVE BOARD AT WASHINGTON Gold Exports and the Reserves of Foreign Banks Business Conditions in the United States The Bank of France in 1924 WASHINGTON GOVERNMENT PRINTING OFFICE 1925 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

FEDERAL RESERVE BOARD Ex officio members: D. R. CRISSINGER, Governor. EDMUND PLATT, Vice Governor. A. W. MELLON, Secretary of the Treasury, Chairman. ADOLPH C. MILLER. CHARLES S. HAMLIN. J. W. MCINTOSH, GEORGE R. JAMES. Comptroller of the Currency. EDWARD H. CUNNINGHAM. WALTER L. EDDY, Secretary. WALTER WYATT, General Counsel. J. C. NOELL, Assistant Secretary. WALTER W. STEWART, Director, Division of Research W. M. IMLAY, Fiscal Agent. and Statistics. J. F. HERSON, E. A. GOLDENWEISER, Assistant Director, Division of Chief Division of Examination, and Chief Federal Research and Statistics, t Reserve Examiner. E. L. SMEAD, Chief, Division of Bank Operations. FEDERAL ADVISORY COUNCIL District No. 1 (BOSTON) __ CHAS. A. MORSS. District No. 2 (NEW YORK) PAUL M. WARBURG, President. District No. 3 (PHILADELPHIA) L. L. RUE. District No. 4 (CLEVELAND) GEORGE A. COULTON. District No. 5 (RICHMOND) JOHN M. MILLER, Jr. District No. 6 (ATLANTA) OSCAR WELLS. District No. 7 (CHICAGO) FRANK O. WETMORE. District No. 8 (ST. LOUIS) BRECKINRIDGE JONES. District No. 9 (MINNEAPOLIS) G. H. PRINCE. District No. 10 (KANSAS CITY) E. F. SWINNEY, Vice President District No. 11 (DALLAS) W. M. MCGREGOR. District No. 12 (SAN FRANCISCO) HENRY S. MCKEE. II Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

OFFICERS OF FEDERAL RESERVE BANKS Federal Reserve Bank of— Chairman Governor Deputy governor Cashier Boston Frederic H. Curtiss. W. P. G.Harding.. W. W. Paddock W. Willett. PierreJay Benj. Strong J. H. Case L. H. Hendricks.i New York.. L. F. Sailer A. W. GilbarU G. L. Harrison J. W. Jones.1 E. R. Kenzel G. E. Chapin.1 Ray M. Gidney. * L. R. Rounds.1 Philadelphia- R. L. Austin Geo. W. Norris__ Wm. H. Hutt W. A. Dyer. E. R. Fancher... M. J. Fleming J. C. Nevin. Cleveland D.C.Wills Frank J.Zurlinden.. Richmond., George J. Seay~_ C. A. Peple Geo. H. Keesee. Wm. W. Hoxton. R. H. Broaddus John S. Walden, jr.1 Atlanta M. B. Wellborn.. J. L. Campbell M. W. Bell. Oscar Newton Creed Taylor. _ Chicago J. B. McDougal.. C. R. McKay W. C. Bachman.i Wm. A. Heaths- John H. Blair K. C. Childs.1 J. H. Dillard.i D. A. Jones.1 O. J. Netterstrom.i Clarke Washburne.1 St. Louis Wm. McC. Martin. D. C. 0. M. Attebery J. W. White. Minneapolis.. John R. Mitchell. .. R. A. Young W B. . V B . M Ge o e o r r y e F G r r a a n y k W C a . r D re u n n . lop.1 Harry Yaeger * Kansas City.. M. L. McClure. W. J. Bailey C. A. Worthington J. W. Helm. Dallas , Lynn P. Talley. B. A. McKinney.. R. R. Gilbert R. B. Coleman. Val. J. Grand San Francisco. John Perrin J. U. Calkins..... ! Wm. A. Day I W. N. Ambrose. Ira Clerk L. C. Pontious.- 1 Controller. * Assistant deputy governor. MANAGING DIRECTORS OF BRANCHES OF FEDERAL RESERVE BANKS Federal Reserve Bank of— Managing director Federal Reserve Bank of— Managing director New York: Minneapolis: Buffalo branch W. W. Schneckenburger. Helena branch R. E. Towle. Cleveland: Kansas Citv: Cincinnati branch L. W. Manning. Omaha branch L. H. Earhart. Pittsburgh branch Geo. DeCamp. Denver branch J. E. Olson. Richmond: Oklahoma City branch._ C. E. Daniel. Baltimore branch... A. H. Dudley. Dallas: Atlanta: El Paso branch. D. P. Reordan. New Orleans branch Marcus Walker. 1 Houston branch Fred Harris. Jacksonville branch Geo. R. DeSaussure. San Francisco: Birmingham Branch A. E. Walker. Los Angeles branch C. J. Shepherd. Nashville branch J. B. Fort, jr. Portland branch Frederick Greenwood. Chicago: Salt Lake City branch R. B. Motherwell. Detroit branch W. R. Cation. Seattle branch.. C. R. Shaw. St. Louis: Spokane branch W. L. Partner. Louisville branch W. P. Kincheloe. Memphis branch V. S. Fuqua. Little Rock branch A. F. Bailey. SUBSCRIPTION PRICE OF BULLETIN THE FEDEBAL 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 contains, in addition to the regular official announcements, the national review of business conditions, detailed analyses of business conditions, research studies, reviews of foreign banking, and complete statistics showing the condition of Federal reserve banks and member banks. The BULLETIN will be sent to all member banks without charge. To others the subscription price, which covers the cost of paper and printing, is $2. Single copies will be sold at 20 cents. in Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

TABLE OF CONTENTS The month: Page Review of the month—Changes in the banking situation 147 Business conditions in the United States 151 Special articles: South Africa and the gold standard 172 Changes in membership in the Federal reserve system, 1919-24 218 Bankers'acceptances, 1923-24 180 Official: Law department— State laws relating to branch banking- 182 State banks admitted to system 187 Fiduciary powers granted to national banks 188 Charters issued to national banks 188 Business statistics for the United States: Industrial activity 189 Commodity movements 192 Wholesale and retail trade 193 Foreign banking and business conditions: Continental banks in 1924 195 International price comparisons 195 Financial statistics for principal foreign countries , 197 Foreign trade of principal countries 200 Industrial statistics for foreign countries 201 Price movements in principal countries— Federal Reserve Board wholesale price indexes 202 Wholesale prices in principal countries 203 Retail prices and cost of living in principal countries 204 Banking and financial statistics: Federal reserve banks— Condition of Federal reserve banks 205 Federal reserve note account 209 Holdings of earning assets 210 Discount and open-market operations of Federal reserve banks 211 Gold settlement fund 226 Discount rates of Federal reserve banks . 225 Member banks— Condition of reporting member banks in leading cities 212 Bankers' balances at reporting member banks in Federal reserve bank cities 213 Deposits of all member banks 214 All member banks—Abstract of condition reports on December 31,1924 215 Bank debits 224 Money rates in principal cities 227 Money in circulation 225 Gold and silver imports and exports 228 Foreign exchange rates and index 229 IV Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

FEDERAL RESERVE BULLETIN VOL. 11 MARCH, 1925 No. 3 REVIEW OF THE MONTH $231,000,000 in the volume of discounts carried them to a higher point than at the December Factors influencing the use of reserve bank peak, and to a level higher than at any time credit in January and February were chiefly since the spring of 1924. This upward turn the seasonal return flow of cur- in discounts, which is in contrast with the Influence of rency from circulation and the decline during the corresponding period of gold exports. export demand for gold. The last year, reflects chiefly the increased borrowdecline in earning assets which usually occurs ing by member banks for the purpose of mainin the early part of the year has lasted a taining their reserve balances at a time when shorter time and has been less marked in 1925 the reserve banks were selling United States than in 1924. A year ago, in addition to the securities in the open market and when there inflow of currency from circulation, there were was a demand upon member banks for gold net gold imports of $80,000,000 during the first for export. Sales of United States securities two months, both of which decreased the de- by the reserve banks reduced their holdings mand for reserve bank credit, while in 1925 net to $365,000,000 on February 25, compared gold exports of about $90,000,000 in January with $538,000,000 two months earlier. While and February tended to offset the influence on the larger part of the reduction in these holdthe reserve banks of the seasonal decrease in ings, as shown in the table, occurred at a time the demand for currency, with the consequence when there was a decreasing demand for that liquidation came to a close earlier this reserve bank credit as reflected in decreases year. In fact, after the middle of January in both discounts and acceptances, further there was a considerable growth in the de- sales of securities by the reserve banks in the mand for reserve bank credit. latter part of January and in^February were a Extent of liquidation at the Federal reserve factor in increasing borrowings of member banks during the month following the peak of banks. The largest increase in discounts was currency demand in December and the sub- at the Federal Keserve Bank of New York, sequent increase . in reserve bank credit are with the result that at the end of February shown in the table. The decrease of $386,- borrowings by member banks in that dis- 000,000 in total earning assets between De- trict represented a considerably larger procember 24 and January 21 was the outcome of portion of the total for the system than at the opening of the year and were in larger volume a reduction of $115,000,000 in holdings of than at any time in the past year and a half. United States securities and of a seasonal Increased borrowings at the reserve banks decline of $84,000,000 in acceptances and of were also occasioned by the export demand $193,000,000 in discounts for member banks. for gold, first felt at member banks which During the five weeks ending February 25 obtained the gold by drawing upon their the increase in earning assets reflected a balances at the reserve banks, and then regrowth in discounts, partly offset by some furplenished these balances by increasing their ther decline in the holdings of securities discounts. bought in the open market. The growth of 147 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

148 FEDERAL RESERVE BULLETIN MARCH, 1925 EARNING ASSETS OF THE FEDERAL RESERVE BANKS additions to reserve balances due to gold imports of $238,000,000 were used to meet the [In millions of dollars] currency demand, though a part remained as a basis for the growth in deposit liabilities of Increase (+) or decrease (-) member banks which occurred during the first Dec. 24, Jan. 21, Feb. 25, half of the year. In 1923 practically the entire 1924 1925 1925 1 D 92 e 4 c. - J 2 a 4 n , . Jan. 21- amount of net gold imports of $294,000,000 21, 1925 Feb. 25 was used by member banks in lieu of additional borrowing at the reserve banks to meet Total earning as- demands for currency, and the earning assets sets 1,332 945 1,130 +185 of the reserve banks remained practically un- Discounts 396 203 434 -193 +231 changed. In 1924, though the volume of U Ac n c it e e p d t a S nc ta e t s e s secur ._ it . i '_ e _ s. . 3 5 9 3 0 8 3 42 0 3 6 3 3 6 1 5 7 -115 - + 5 1 8 1 earning assets of the reserve banks and the volume of money in circulation fluctuated considerably during the year, at the end of the The turn in the direction of the gold moveyear they were both at about the same levels as ment, which has recently influenced the relaat the beginning, and the $258,000,000 of net tion of member banks to the gold imports are reflected in a growth of mem- Four years of i -i i P, ber bank balances. For the entire four-year gold imports. r c e o S n e t r i V n e uo ba u n s k g s> o ld h a i S m C p O o m r e t s, a w ft h er ich period the net gold imports and the net decline in currency in circulation have been reflected have been for several years the largest factor in a decrease of nearly $2,000,000,000 in the decreasing the degree of dependence of memearning assets of the Federal reserve banks and ber banks upon the reserve banks. In com- a growth of $3,000,000,000 in the loans and menting upon the use made by member banks investments of member banks. This divergof this gold received from abroad and upon its ence in the movement of Federal reserve bank credit and member bank credit since 1920 is influence upon the domestic credit situation, shown in the following table: the Federal Reserve Board in its annual report for 1924 says: RESERVE BANK AND MEMBER BANK CREDIT, 1920-1924 In 1924, as in other recent years, the most [Amounts in millions of dollars] important single influence affecting the volume of Federal reserve bank credit in use was the End of— Change continued inflow of gold. While net imports o 1 f 9 2 g 3 o , ld t h i e n y 1 r 9 ep 2 r 4 e s w e e n r t e e d s o a m e c w o h n a ti t n u le a s t s io n th a o n f in a 1920 1921 1922 1923 1924 1 1 9 9 2 2 0 4 - 1923-24 movement which has lasted for over four years, and since their effect upon the relative position Federal reserve banks: Total earning assets. 3,235 1,524 1,326 1,211 1,249 -1,' +38 of Federal reserve banks and member banks Member bank reserve balances 1,780 1,753 1,934 2,220 +440 +322 has been cumulative, their influence is clearer All member banks: when considered in perspective. Gold re- Total loans and investments 25,888 23,644 25,769 26,738 29,027 +3,139 +2,289 ceived from abroad is deposited by member Deposits on which I reserves are combanks with the reserve banks, and its immediate puted 17,616 16,816 18,966 19,505 21,985+4,369 +2,480 effect is to increase their reserve balances. Ratio of earning assets of reserve banks to The use made by member banks of these addi- loans and investments of member tions to their reserve balances depends upon banks (per cent) 12.5 6.4 5.1 4.5 4.3 the extent of the currency demand and upon Ratio of reserve balances to deposits on the indebtedness of member banks at the which reserves are reserve banks at the time the gold is received. computed (per cent).. 10.0 10.5 10.2 9.7 10.1 In 1921, when liquidation was under way, balances arising out of the $667,000,000 of net The large increase in the loans and investgold imports, as well as the currency returned ments of member banks and the decline in the From domestic circulation, were used to reduce earning assets of the reserve banks, shown in indebtedness at the reserve banks. In 1922, the table, has reduced the ratio of Federal when the volume of member bank borrowing reserve bank credit to member bank credit was at a low level and there was an increased in use from 12.5 per cent in 1920 to 4.3 per demand for currency, the larger part of the cent in 1924. The ability of member banks Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

MARCH, 1925 FEDERAL RESERVE BULLETIN 149 to increase the volume of their own outstand- and in loans being in about the same volume. ing credit and at the same time to decrease At the end of 1924 total loans for the first their use of reserve bank credit was due princitime exceeded the peak of 1920, though total pally to the receipt during the four years of loans and investments have been above the $1,500,000,000 of gold from abroad. While the proportion of the amount of reserve bank high figure for that year since early in 1923. credit outstanding to loans and investments Total deposits increased by $3,875,000,000 of member banks is only a fraction of what it during the year, of which $1,679,000,000 was was in 1920, the ratio between reserve balances the increase in demand deposits, and the maintained by member banks at the reserve remaining $2,200,000,000 was about equally banks to member bank deposit liabilities, as shown by the table, has remained practically divided between the growth in time deposits constant at about 10 per cent, which repre- and bankers' balances. Comparison of the sents on the average the minimum required by end of year figures with those for October 10 law. This constancy reflects the fact that show that during the last quarter of 1924 member banks have currently utilized the full loans and investments of member banks inamount of credit that could be supported by the increase of $440,000,000 in their reserve creased by $576,000,000, of which more than balances. Thus, notwithstanding the large one-half represents the increase at banks in addition to their balances, the member banks the New York Federal reserve district. were obliged in the autumn of 1924 to increase The much larger part of the growth of their borrowings at the reserve banks in order to meet the seasonal demand for currency. member bank credit at banks in the financial centers than at banks outside those cities is The unusually large growth in member bank brought out in the following table, which credit during 1924 and its distribution between shows changes in the principal items for banks in financial centers and member banks in reserve and central reserve Fi?W u °i outside are reflected in condimember bank cities and for so-called country banks: credit in 1924. ^lon reports lor all member, banks for December 31, 1924 ; MEMBER BANKS IN RESERVE CITIES AND OUTSIDE which have recently become available and are [In millions of dollars] shown in detail on pages 215-216. Changes in principal items for all member banks for the Amount Incr 1 e 9 a 2 s 4 e in year and for the last quarter of 1924 are shown in the following table: Banks in re- Banks outside serve cities reserve cities Banks Banks ALL MEMBER BANKS in outside reserve reserve [In millions of dollars] End of End of End of End of cities cities 1923 1924 1923 1924 Increase (+) or decrease (—) since- Loans „_ 11,527 12,713 7,525 7,469 1,186 156 Dec. 31, Oct. 10, Dec. 31, Investments 4,029 4,931 3,657 3,914 902 257 1923 1924 1924 Dee, Oct., Total loans and 1923 1924 investments... 15, 556 17, 644 11,182 11,383 2,088 201 Demand deposits 10,435 11,999 5,652 5,768 1,564 116 Time deposits 3,820 4,552 4,830 5,252 732 422 Loans 19,052 19,820 20,182 +1,130 +362 Due to banks 3,066 3,999 446 549 933 103 Investments 7,686 8,631 8,845 +1,159 +214 Due from banks 919 1,171 905 1,168 252 263 Total loans and investments 26, 738 28, 451 29,027 +2, 289 +576 1 Decrease. Demand deposits1 16, 087 16,383 17, 766 +1,679 +1,383 Total loans and investments of member Time deposits 8,651 9,597 9,805 +1,154 +208 Due to banks 3,512 4,490 4,548 +1,036 +58 banks in the larger cities increased by about 13 United States deposits- 237 302 243 +6 -59 per cent, while at the banks outside of the Total deposits 28,487 30,772 32, 362 +3,875 +1, 590 financial centers they increased by less than 2 1 Including certified and cashiers' checks. per cent. Compared with a growth of more Total loans and investments of member than $1,000,000,000 in loans at banks in reserve banks increased by $2,289,000,000, or 9 per cities, country banks show a slight decrease in cent, during 1924, the increase in investments loans for the year. Investments increased in Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

150 FEDERAL RESERVE BULLETIN MARCH, 1925 both classes of banks, but the increase in the these recent developments were reflected in an larger cities was much greater. The absence increase of rates on commercial paper to a level of an active demand for credit for commercial higher than at any time since the middle of last purposes during 1924 resulted in a flow of funds year. Rates on bankers' acceptances, after an to the money centers reflected in a growth of almost continuous rise for more than six bankers7 balances, which furnished a consid- months, were in February more than 1 per cent erable part of the funds used by city banks in above the rates prevailing during the summer increasing their loans and investments. months of 1924. On February 27 the discount Since the beginning of this year banking rate at the Federal Reserve Bank of New York, developments, as shown by the weekly reports which had been at 3 per cent since August 8, of member banks in leading 1924, was advanced to 3*^ per cent, the rate Recent changes j j t st with the rapid prevailing at the Boston, Philadelphia, Clevecties? n con ra anking SUUa increase in loans and inYest" land, and San Francisco reserve banks. ments and in deposits during the greater part of 1924, have been characterized by some decline in total loans and invest- NOTES ments and a considerable reduction in demand Annual report of Federal Reserve Board. deposits. In 1924 the continuous inflow of gold The text of the annual report of the Federal both directly increased the deposits of member Reserve Board, covering operations for the banks and provided them with reserve balances calendar year 1924, has been submitted to to support a growth in their credit, and the Congress and is now available. The full report, including detailed statistical tables, is recent outflow of gold has been a factor in in preparation. reducing deposits and in diminishing the balances of member banks at the reserve banks. Meeting of Federal Advisory Council. The Federal Advisory Council held its first In New York City, where the growth of memquarterly meeting in 1925 on February 16. ber bank credit in 1924 was largest, there has Paul M. Warburg was reelected president and been a considerable decline in investments, E. F. Swinney, vice president. In addition to which were at their peak in the middle of these officers the following members were elected to constitute the executive committee: November, and since January also a decrease C. A. Morss, vice chairman, L. L. Rue, J. M. in loans. Both loans and investments for Miller, jr., and F. O. Wetmore. reporting member banks outside of New York Index-Digest of the Federal Reserve Act. City have continued to increase, though at a The third edition of the Index-Digest of the slower rate than in 1924, and total loans for Federal Reserve Act and amendments has all reporting member banks at the middle of recently been issued. A limited number of February were larger than at any time in recent copies is available for distribution at $2 per years. During the first two weeks of February copy. Persons wishing to obtain copies should address the secretary of the Federal Reserve there was an increase in commercial loans, Board. which have continued near the high level Report of Gold and Silver Commission. reached during the autumn months of 1924. The Commission of Gold and Silver Inquiry More recently there has also been some increase of the United States Senate has issued a report in the demand for currency. Since the latter on European currency and finance by John part of January there has been a considerable Parke Young. This volume, in addition to a growth in borrowing by member banks at the discussion of the relation of the United States reserve banks, particularly at the Federal to currency problems of Europe and a detailed account of currency and financial conditions Reserve Bank of New York. in principal European countries, contains a In the money market, following the brief series of papers on currency and finance by period of decline after the turn of the year, leading American and European economists. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

MABCH, 1925 FEDERAL BESEKVE BULLETIN 151 BUSINESS CONDITIONS IN THE UNITED STATES Further growth in production during January carried the output of basic commodities to the highest point reached since the spring of 1923. Employment at industrial establishments increased slightly, but remained below the level of a year ago. Prices of farm products continued to advance, and there were smaller increases in the wholesale prices of most of the other groups of commodities. Production.—Production in basic industries, after a rapid increase in recent months, advanced 9 per cent in January and was 35 per cent above the low point of last summer. The most important factor in the increase in the level of production since August has been the greater activity in the iron and steel industry, but in January the output of lumber, minerals, food products, and paper, and the mill consumption of cotton, also showed considerable increases. The woolen industry was somewhat less active in January, and output of automobiles, though larger than in December, was considerably smaller than a year ago. Further increases during the month in employment in the metal, textile, and leather industries were largely offset by seasonal declines in the number employed in the building materials and food products industries. Building activity, as measured by contracts awarded, though less in January than during the closing months of 1924, was near the high level of a year ago. Trade.—Railroad shipments were in record volume for this time of year, and loadings of merchandise and miscellaneous products were particularly heavy. Wholesale trade in January, however, was slightly smaller than in December. Sales of groceries, shoes, and hardware were in smaller volume, while sales of .dry goods and drugs increased. Department-store sales in most districts were somewhat smaller than a year ago, but sales of mail-order houses were considerably larger. Prices.—Wholesale prices, as measured by the index of the Bureau of Labor Statistics, rose 2 per cent during January to the highest level in four years. The increase of 10 per cent in the index since last June represents an advance of 19 per cent in prices of agricultural commodities and 3 per cent in other commodities. In the first half of February prices of grains, wool, coal, and lead declined, while petroleum and gasoline prices advanced sharply, and cotton silk, and rubber showed smaller increases. Bank credit.—Loans and investments of member banks in leading cities, following the rapid growth during the last half of 1924, declined by about $100,000,000 between the middle of January and the middle of February. This decrease represents a reduction in the holdings of investments, chiefly at banks in New York, partly offset by an increase in loans. Loans on stocks and bonds increased, though less rapidly than in the latter part of 1924, while loans for commercial purposes declined slightly from the high level reached in the middle of January. PER CENT PER CENT PER CENT ibO 150 200 200 f ft 150 150 / \ / 100 AT 100 100 50 50 50 50 PRODUCTION IN BASIC- INDUSTRIES WHOLES/\LE PRICES 0 1322 1323 1925 1922 1923 1924- 1925 Index of 22 basic commodities adjusted for seasonal variations. (1919= Index of United States Bureau of Labor Statistics. (1913=100, base 100.) Latest figure, January, 127 adopted by bureau.) Latest figure, January, 160 33405—25 2 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

152 FEDERAL RESERVE BULLETIN MARCH, 1925 BILLIONS OF DOLLARS BILLIONS OF DOLLARS BILLIONS OF DOLLARS BILLIONS OF DOLLARS 2 10 1922 1923 192A- 1925 1922 1923 1924 1925 Weekly figures for 12 Federal reserve banks. Latest figures for Weekly figures for member banks in 101 eading cities. Latest figures February 18 February 11 Net demand deposits, owing largely to decreases at New York City banks, declined sharply from the high point reached in the middle of January. At the Federal reserve banks the seasoned liquidation resulting from the return flow of currency from circulation came to a close by January 21, and during the following four weeks there was an increase in total earning assets. This increase reflected largely the demand for gold for export, which led member banks to increase their discounts at the reserve banks. Reserve bank holdings of United States securities declined further, while acceptances showed relatively little change for the period. Money rates, after remaining comparatively steady during most of January, showed a firmer tendency during the early part of February, when rates for prime commercial paper advanced to 3% per cent. BUSINESS INDEXES OF THE FEDERALJRESERVE BOARD [Monthly average 1919-100] Produc- Department store Department store Bank tion in Factory Building Railroad Whole- stocks» debits basic employ- contracts car sale outside oi i t n ri d e u s s * - ment awardedl loadings * trade j U u n st a e d d - ju A st d e - d j U u n st a e d d - ju A st d e - d Ne C w i Y ty o * rk 1923 October 118 101 151 118 148 130 146 131 105 November.. 116 100 167 120 142 126 149 133 105 December.. 110 99 172 113 202 126 123 132 105 1924 January---- 120 170 118 109 125 115 131 105 February... 120 163 125 102 127 127 135 110 March 116 164 115 115 115 138 137 109 April 114 150 121 133 130 140 136 112 May 103 129 117 127 123 135 135 109 June 94 125 103 120 120 127 133 103 July 94 121 111 91 122 122 130 108 August 94 133 111 93 119 126 126 108 September- 103 150 117 119 131 137 128 107 October 109 166 120 141 124 147 132 112 November.. 107 196 116 141 126 148 131 107 December., 117 180 124 211 132 124 133 112 1925 January - 127 168 123 78 109 124 119 134 120 i The indexes of production in basic industries, building contracts, car loadings, and bank debits are adjusted to allow for seasonal variations. The indexes of department store sales and stocks are shown both with and without seasonal adjustments. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

MARCH, 1925 FEDERAL RESERVE BULLETIN 153 BANK CREDIT and changes for this period and since February, 1924, are shown in the following table: On February 18 the loans and investments of reporting member banks in leading cities PRINCIPAL RESOURCES AND LIABILITIES OF FEDERAL were about the same in volume as at the RESERVE BANKS beginning of the year, a decline in the invest- [In millions of dollars] ment holdings of these banks, chiefly in the Earning assets New York district, being slightly in excess of the growth in their loans. During the first seven weeks of the year loans secured by stocks Date and bonds continued to increase, and com- •Si mercial loans at the end of this period were slightly above the level of the first of the year. Demand deposits declined sharply from the 1925 high figure reached at the beginning of the Jan. 21 945 203 306 423 3,083 2,216 1,699 Jan. 28-__ 989 274 308 394 3,083 2,265 1,684 year, while time deposits continued-to increase. Feb. 4 1,032 322 308 389 3,065 2,268 1,690 The following table shows the principal re- F F e e b b . . 1 11 8 _. 1 1 , , 0 0 6 4 0 6 3 3 3 4 2 2 3 3 2 1 5 2 3 3 9 7 0 8 3 3 , , 0 0 4 4 1 5 2 2 , , 2 2 4 5 2 7 1 1 , , 7 6 1 9 4 9 sources and liabilities of member banks in Feb. 25-___ 1,130 434 317 365 3,030 2,270 1,729 Increase (+) or decrease leading cities for December 31, 1924, and for (—) for six weeks ending each week between January 14 and February Feb. 25 +185 +231 +11 -58 -53 +54 +30 Year ending Feb. 25 +179 -98 +54+209 -200 +284 -293 18, as well as changes for the seven weeks and for the year ending February 18. * Including foreign loans on gold and all other earning assets, CONDITION OF ALL MEMBER BANKS LOANS, INVESTMENTS, AND DEPOSITS OF MEMBER During the latter months of 1924 loans of BANKS IN LEADING CITIES member banks continued the growth which [In millions of dollars] became pronounced in June, and on December 31, as indicated by the quarterly reports of Loans and investments Deposits condition recently become available and published on page 215 of this issue, the total for all Loans All member banks was $29,026,000,000, an in- Date secured other Total sto b c y ks l l a o rg a e n l s y , - I m nv e e n s t t s - N m e a t n d d e- Time c $ r 2 e ,2 as 8 e 8 , o 00 f 0 $ ,0 5 0 76 0 , 0 s 0 in 0 c ,0 e 0 0 th s e i n c c lo e s O e c o t f o b 1 e 9 r 2 3 1 . 0 a T n o d t a o l f and combonds mercial deposits (including demand and time deposits, balances due to banks, and United States 1924—Dec. 31 _. 18,600 4,862 8,206' 5,531 13,254 4,849 Government deposits) were $32,361,000,000 on 1925—Jan. 14 18,680 4,878 8,261 5,557 13,355 4,853 Jan. 21 18,635 4,894 8,193 5,548 13,143 4,869 December 31, 1924, or $3,875,000,000 in excess Jan. 28 18,539 4,888 8,163 5,488 13,014 4,876 of the total on the same date in 1923. Feb. 4 18,567 4,930 8,184 5,453 13,040 4,900 Feb. 11 18,547 4,933 8,182 5,432 13,093 4,925 The growth in total loans and investments dur- Feb. 18 18,575 4,937 8,234 5,404 12,995 4,936 Increase (+) or de- ing the year, the greater portion of which occrease (—): Dec. 31-Feb. 18. -25 +75 +28 -127 -259 +87 curred in the last six montns, represented about Feb. 20, 1924- equal increases in loans and in investments. Feb. 18 +2,154 +859 +385 +910 +1, 760 +760 Total loans of all member banks were $20,- 181,000,000 at the close of 1924, $361,000,000 The total volume of reserve bank credit in above the amount on October 10 and $917,use, after a marked decline from the high 000,000 above June 30. This growth was point reached in December, 1924, increased entirely in the loans of member banks in reserve during the latter part of January and in and central reserve cities, the loans of country February, due to growth in the volume of banks showing, in fact, a slight decline during the reserve banks' discounts for member banks the period—more particularly between June 30 which more than exceeded declines in the and October 10. Investment holdings of holdings of United States Government securi- member banks, at $8,845,000,000 on December ties. Acceptances, after declining in the open- 31, were $848,000,000 above the total for June ing weeks of the year, remained practically 30; the increase for the last three months of the constant between January 21 and February year was about one-fourth of that amount. 25. The principal resources and liabilities The largest additions to the banks' holdings of the Federal reserve banks for the period consisted of securities other than United between January 21 and February 25, 1925,States Government securities. The growth Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

154 FEDERAL RESERVE BULLETIN MARCH, 1925 in the total investments of member banks in February. Commercial paper was in less during the last six months of 1924 occurred active demand, and by the third week in the both in reserve cities and outside; for the last month the rate on 4-6 months maturities had quarter of the year, however, investments of increased from 3% per cent to Z% per cent, member banks in New York City showed some the rate prevailing at the end of 1924. decline. Demand deposits of member banks, Moderately increased sales of bankers7 accontinuing the increase which began in the ceptances to the Federal reserve bank early spring months, rose rapidly during the closing in February and an advance in the reserve months of the year to the highest point on bank's minimum rate on short maturities record. Bank balances held with city corre- was followed by a general rise in open-market spondents, after a rapid growth prior to Octo- bill rates. Despite these advancing money ber 10, increased only slightly during the last rates, the prices of Government securities quarter of the year. Time deposits continued and the yields on both short and long term to grow throughout the period. issues remained practically constant through- In the following table are shown the amounts out the month. The renewal rate on call of the principal resources and liabilities of all loans averaged higher in February than in member banks, by class of banks, on December January. The table below shows the rates 31, 1924, and the extent of changes since June prevailing in the New York market during 30. the past three months: PRINCIPAL RESOURCES AND LIABILITIES OF ALL MONEY RATES IN NEW YORK MEMBER BANKS DECEMBER 31, 1924 [Per cent] [In millions of dollars] Yield on Dec. 31, 1924 P c r o i m m - e b P an ri k m er e s1 c c a e t i r e n t s i - f i o - f A y 4 i J v J e e ii l p d ra o g n e ne R w e- al All Central mercial accept- debted- cent rate on m b e e m r - re c se it r y ve Re c s i e ty rve C t o r u y n- p m ap o e n r t h 4 s -6 90 a n d c a e y , s m n a e t s u s r- L b ib o e n r d ty s lo ca a l n l s banks banks banks banks ing June 15, 1925 Total loans and investments. 29,026 7,660 9,983 11,383 Tota T T U D T D O l o o i n e d u t m h t t m e i e a a t e p e l e l t r a o o d l d i n b o s n b e d o i S a v p t a n n s t e d o n a s d s e s k t s t p e i 1 s m t s o a s n s e s i d n e t c s t s s u 2 t r o i c ti k e s s . . . 2 3 1 2 8 3 4 4 9 0 7 , , , , , , , , 9 9 8 5 8 1 7 3 4 0 4 4 0 8 6 6 3 8 2 1 7 5 4 2 2 5 9 1 6 1 1 , , , , , , , 1 1 1 5 9 4 3 9 5 1 1 4 4 5 6 6 4 7 4 7 6 4 5 0 1 2 1 7 1 5 2 1 3 , , , , , , , , 8 1 4 3 6 0 4 2 6 5 1 6 4 5 3 7 4 3 7 6 5 2 5 8 1 3 7 2 1 5 1 5 , , , , , , , 9 4 5 3 6 7 5 2 1 6 9 1 1 4 6 5 4 5 9 9 9 9 8 2 D J A a e v n c e u e J r F F F F a a m a e e e e g r n b b b b y b e . . . . . , e 3 f r 2 7 2 1 1 o 1 , 4 1 8 , 9 , r 1 , , , 1 2 1 1 9 w 9 5 1 1 9 9 2 2 9 9 e 2 2 5 4 2 2 e 5 5 5 5 k ending: k : 2 2 2 2 2 2 2 . . . . . . . 5 5 6 5 6 6 6 7 7 1 9 1 1 1 4 4 4 4 4 4 4 . . . . . . . 0 0 0 0 0 0 0 4 5 2 1 2 1 3 3 3 3 3 3 3 4 . . . . . . . 3 5 3 4 5 6 0 0 0 2 9 0 3 6 United States deposits- 242 46 146 50 In the L/ondoh market rates were very Changes since June 30,1924 stable during January and early February at levels lower than those prevailing at the b m a b A e n e m l r k l s - r C b e c e s a e i n n t r t y k v r s a e lR b e c a s i n e ty k rv s e b C a t o r n u y k n s - m r e a n o t d e n s t o h f s o t f h b e a O n v k c e t a o b r b , i l e l b r s u t w a h n e i r d g e h e q N r u o o t v h te e a d m n b t a e h t r e . 3 a % v T e h r r p a e g e e r e cent the first week in February and Treasury Total loans and investments +1,765 +696 +848 +221 Total loans 1 +917 +508 +453 -44 bills were tendered that week at an average Total investments +848 +188 +395 +265 rate of 3.72 per cent. United States securities. +295 +66 +223 +6 Other bonds and stocks. +553 +122 +172 +259 Total deposits +2,832 +880 +1,176 +776 ACCEPTANCE MARKET Demand deposits 2 +1,474 +645 +406 +423 D Ti u m e e t o d b ep a o n s k i s ts + + 6 6 9 01 4 + + 1 3 8 7 8 + +2 5 3 0 4 0 + +1 1 7 5 9 7 During the first half of the period from United States deposits.. +63 +10 +36 +17 January 22 to February 18 there was little change in the condition of the New York 1 Including rediscounts and overdrafts. acceptance market, although some increase * Including certified and cashiers' checks outstanding. in the supply of bills was reported from MONEY RATES Boston, with a consequent increase in the Somewhat firmer conditions in the New portfolios of dealers. There were moderate York money market, accompanying exports offerings to reserve banks. On February 6 of gold and the flow of funds to the interior, the New York Federal Reserve Bank's buying were evidenced by advances in money rates rates on 30 and 60 day maturities were raised Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

MARCH, 1925 FEDERAL RESERVE BULLETIN 155 to 3 per cent, and dealers subsequently ad- The total of capital flotations in the United vanced their rates y$ per cent on all maturities States during 1924 was greatly augmented by up to 90 days. There was an increase in the the issue here of foreign securities. A comforeign demand for prime member bank pilation of these issues made by the New York bills of 30 and 60 day maturities, and with Federal Reserve Bank gives a volume of easier money conditions a more active de- $1,264,512,000 for the year, including refundmand on the part of both local and out-of- ing issues, as compared with $431,657,000 for town banks, including savings banks, de- 1923, so that the combination of these figures veloped, so that toward the end of the period with the Chronicle's statistics of domestic New York dealers found the supply nardly issues gives for 1924 a total of $6,334,000,000, sufficient to fill orders. Rates in New York which exceeds that for 1923 by more than on February 18 ranged from 3J^ per cent $1,000,000,000. The foreign issues in Decembid and 3 per cent offered on 30-day bills to ber amounted to $179,716,000, as compared 3% bid and 3J^ offered on 5 and 6 months with $130,600,000 in November and $49,375,maturities. 000 in December, 1923. December ranked as CAPITAL ISSUES the fourth month of the year 1924 in the size of foreign flotations, being exceeded only by According to the compilation of the Com-February, when the $150,000,000 Japanese mercial and Financial Chronicle, $396,000,000 loan was put out, by September, when unof domestic securities were issued in the United usually large Canadian issues were floated States in December, 1924. This exceeds the here, and by October, when $110,000,000 amount of the November issues but is con- of the international loan to Germany was siderably less than the large volume of flota- issued in New York. The more notable tions in October. Sixty-one per cent of the foreign flotations in December were $30,000,domestic issues were corporate issues, and 23 000 of bonds issued by the Argentine Govper cent of these were for refunding purposes, ernment, $50,000,000 by the Kingdom of industrial corporations issued the largest Belgium, and $40,000,000 by the Andes proportion of securities, with public utility Copper Mining Co. in Chile. Foreign issues offerings next in size, and railroad issues of in January, 1925, were in substantial volume, small importance in December. The new but much smaller than those of the preceding domestic flotations during the month were six months. slightly less than during December, 1923, but the total for the year 1924 was $500,000,000 SECURITY PRICES above that for the year 1923, and larger than for any year previously recorded. The follow- The prices of representative stocks continued ing table shows the domestic securities issued early in February the rapid advance which in December, 1924, and during the year 1924, began in November, declined somewhat during as compared with the issues of December, 1923, the third week of the month, but in the next and the year 1923, classified as to type of week recovered to approximately their former security: level. These movements were shared in gen- DOMESTIC CAPITAL ISSUES eral by both industrial and railroad stocks, [In millions of dollars] but certain groups, including coal stocks and textile stocks, were exceptions to the general December, December, Year, 1923 Year> 1924 advance in January and early February. The rise in prices was accompanied by activity in Re- Re- Re- Re- the market, and the daily volume of sales has New fund- New fund- New fund- New funding ing ing ing averaged over 1,000,000 shares each week since November 1. Bond prices showed little change Total corporate __248.3 55.9 261.-6 14.8 3,027.8 491.8 2,648.8 560.3 in January, but advanced somewhat in Feb- Long-term bonds and ruary. The following table gives indexes of notes 151.0 160.6 13.4 1,923.8 395.7 1,846.3 416.3 stock prices computed by the Standard Sta- Short-term bonds and tistics Co. of New York, the average prices of St n o o ck te s s 8 1 6 1 . . 1 2 1 2 9 . . 4 7 92 8 . . 7 3 1 . . 3 2 8 2 2 7 8 6 . . 0 1 5 3 9 6 . . 6 5 6 1 5 4 9 3 . . 2 3 3 76 7 . . 8 2 40 bonds computed by Dow, Jones & Co., and Farm loan issues. 2.3 2.1 179.1 337. 55.0 the average number of shares of stock sold Municipal 86.3 3.4 111.9 1.81,, 353.7 17.41,043.1 20.0 dailv for the last four months and for each Total 336.9 59.3 375.6 16.6 4,560.6 509.2 4,029.4 635.3 week of February. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

156 FEDERAL RESERVE BULLETIN MARCH, 1925 INDEX NUMBER OF SECUKITY PRICES sued $30,000,000 of 10-30 yea* 4K per cent bonds, which brought the total of Federal land Price indexes of— » Average bank bonds outstanding to $946,819,307 on number Average of shares January 31, as compared with $914,763,416 on i s n t t o 2 r d i 0 c u a 2 k l s s - 3 s r 1 to o r c a a k d i s l- sto 23 c 3 ks p b r o o i f c n e 4 d 0 s o 8 f o s ( a f d t s n h a o s d o i t l l o d s u y ) c - k 3 j 4 D o 0 e i 0 n c t e o - m s n t b o J e c a r k n u l 3 a a 1 n r . y d 3 b T 1 a h . n e k s n a e m t o m un o t r e t d g a t g o e $4 lo 3 a 5 n ,0 s 6 7 o , f - Average for— AGRICULTURE November, 1924 113.4 106.3 111.3 91.01 2,080 December, 1924 119.7 111.3 117.2 90.66 1,788 In most sections of the country farm opera- January, 1925 125.8 112.6 122.0 90.91 1,774 Average for week end- tions were retarded in January on account of ing— Feb. 2, 1925, 128.9 113.0 124.2 91.36 1,684 the generally unsatisfactory weather for out- Feb. 9, 1925 129.4 113.7 124.8 91.61 1,847 door work. Throughout the Western States Feb. 16, 1925 124.6 111.1 120.6 91.61 1,570 Feb. 24,1925 127.1 113.6 123.1 1,833 low temperatures were accompanied by heavy snows, and the growing grain crops, livestock, JFor the industrial stocks, the average of 1917-1921 prices equals 100; for the rails the average of the high and low prices made in the 10 years and ranges were injured to some extent, but 1913-1922 equals 100. The indexes are weighted by the number of shares some of the losses were offset by the excepof each stock outstanding. 1 Arithmetic average of daily peak and low prices as published in Wall tionally favorable weather during the early Street Journal. 3 Average for 5 days ending on preceding Friday. weeks in February. Some areas in the Kansas AGRICULTURAL CREDIT BANKS City and Dallas Federal reserve districts are still suffering from a lack of moisture, which Intermediate credit banks closed direct loans is causing a delay in winter plowings and early amounting to $4,206,931 during January, 1925, seedings. In the Richmond and Atlanta disas compared with $1,447,457 during December, tricts rainfall in January was excessive which, 1924, and rediscounts of $2,688,045, as com- in addition to delaying farm work, caused pared with $3,813,680 in December. The frequent floods and heavy losses, particularly Springfield, Baltimore, and Columbia banks in the latter district. each made loans of $1,000,000 or more, while 6|of the 12 banks made no direct loans in PER CENT PER CENT 250 250 January. All except the Louisville bank re- EXPORTS 0F AGR1CULTURAL PRODUC,TS ( JULY. 1909 -JUNE,1914- = 010 ) discounted a certain amount of agricultural paper, but the bulk of the total rediscounting was done by the middle western banks. The following table shows the rediscounts outstand- V r \ ing on February 14, 1925, classified by borrowing organizations, and the direct loans classified by commodities on which the loans were based: Y \ 1 j DIRECT LOANS \ Cotton $11, 913, 500 Tobacco 21, 650, 121 Raisins 4, 000, 000 Wheat- 1, 724, 366 Prunes 1, 222, 750 1921 -22 1922-23 1923-'24 Canned fruit and vegetr1 les_ 427, 146 While marketing of the 1924 crops was Peanuts 200, 462 Rice 349, 774 seasonally smaller m January than in Decem- All other 148, 647 ber, it continued in larger volume than in the corresponding month last season. Tobacco Total 41, 636, 766 and vegetables were distributed in larger vol- REDISCOUNTS ume than in December, vegetable shipments Agricultural credit corporations $9, 643, 878 being about 50 per cent greater, the largest National banks 18, 177 increase over December in the last six years. State banks.- 744, 740 Exports of agricultural commodities, as Livestock loan companies 8, 640, 216 Savings banks and trust companies 151, 644 measured by the Department of Agricul- Cooperative associations ture's index and shown in the chart, were seasonally smaller than in December. All Total 19, 198, 655 groups of products showed reduction except Federal land banks increased their mortgage meats. As compared with last year, total exloans during January by $7, 762, 131 and is- ports were 26 per cent larger, due principally Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

MARCH, 1925 FEDERAL. RESERVE BULLETIN 157 to a continuation of heavy exports of cotton the end of the period which, for most of the and wheat. grains, was the highest since 1920. Early in ^1 Agricultural prices advanced further during February there were considerable declines in the month and reached the highest level since prices, amounting to 27 cents for winter wheat November, 1920. Practically all groups, as and about 22 cents for rye. Exports of grains contained in the Department of Agriculture's and grain products fell off in January from the index, except dairy and poultry products and high levels reached in the autumn months, a few miscellaneous items, were higher. In but were in about the same volume as in Janview of this rapid rise, the index of agricultural uary last year. prices at wholesale markets was 161 as com- Cotton. pared with 165 for nonagricultural commodities, and the margin between agricultural and A further increase in the consumption of raw nonagricultural prices was narrower than at cotton by American mills, continuation of any time since June, 1920. large foreign demand, heavy exports, and generally unsatisfactory weather for farm Grains. operations were the most significant factors The early weeks of January were accom- affecting the cotton market in January. panied by generally cold and unfavorable Since last July the consumption of cotton by weather for the winter wheat crop and there domestic mills has increased each month with ; was some damage by alternate freezing and the exception of a slight hesitation in Novemthawing, although the extent of such damage ber, and in January about 590,000 bales is yet uncertain. In February the weather were consumed, the largest monthly volwas milder, and considerable improvement was ume since May, 1923, when 621,000 bales noted in all sections except in some areas of the were consumed. Exports were larger in Jan- Kansas City and Dallas Federal reserve dis- uary than in December and were the largest tricts, where there was a lack of moisture. for that month since 1915. In connection Seeding of oats in the Southern States made with the exceptionally large volume of exports good progress, and by the middle of February it is significant to point out that for the six planting was being done as far north as Okla- months of the cotton marketing season ending homa. Winter seeded oats in the Richmond with January, 5,420,000 bales were exported as and Atlanta districts continued in good condi- against a total of 5,656,000 bales for the tion and the outlook is much more satisfactory entire season ending last July. The movement than last year, when the crop was practically of cotton from the plantations and small towns killed late in the winter. of the South to the larger markets is continuing Marketing of grains in January was season- at a rapid rate, and for the season to the middle ally smaller than in December, and while it of February approximately 12,427,000 bales was heavier than in January last year it was had reached the markets, about 1,000,000 bales in considerably lighter volume than in Jan- less than the total yield. Notwithstanding the uary, 1921, 1922, or 1923. Receipts of wheat large demand for the crop in this country as at principal markets declined from 32,500,000 wefl as abroad, reports indicate that mills have bushels in December to 24,166,000 bushels in been producing largely to fill current orders, January, as compared with 16,861,000 bushels and spinners in Great Britain have recently in January last year. Notwithstanding the curtailed production schedules. reduction in the size of the corn crop, market- Weather conditions for the season to date ing in January was 17 per cent larger than have been decidedly unfavorable for the new last year, but this increase may be attributed crop. In the Richmond and Atlanta Federal in part to the considerably smaller marketings reserve districts excessive rains in January in rTovember and December, which were due delayed farm operations and in the Dallas in a measure to the delay of the new crop in district a continuation of the drought caused reaching the market. Oats were sold in the the ground to dry out to such an extent that largest January volume in the past seven years. plowing has been retarded and preparations Trading in grain futures in January, as re- delayed. flected in reports from the Chicago Board of With a continuation of the demand for the Trade, was the largest for the period for which old crop and unfavorable weather in most of records are available- Prices advanced rap- the growing areas the price of cotton strengthidly during the month and reached a peak near ened late in January and early in February. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

158 FEDERAL RESERVE BULLETIN MARCH, 1925 For the week ending February 13 the price of jcontinued to decline in January for the third middling cotton at New Orleans was 24.5consecutive month and was smaller than in cents a pound, as compared with 23.8 cents a January of last year. pound a month earlier. Fruits and Vegetables. Tobacco. With the exception of the heavy rains in the During the late autumn months the market- southeastern States early in January, which ing of tobacco was delayed, but in January in- delayed plantings and damaged growing truck creased activity was noted in almost all pro-crops, weather conditions were generally favorducing areas, and the aggregate volume of the able for the winter fruit and vegetable crops in crop marketed was larger than in the preceding the southern sections of the United States. month and exceeded sales in January last year. Shipments of potatoes, grapefruit, and lemons In the Kichmond district a slightly larger per- increased sharply in January and were in larger centage of the total crop was sold prior to volume than in the same month last year. February 1 than for the same period in 1924. Marketing of oranges and apples was seasonally Prices in January were slightly higher than last smaller than in December, but shipments of year, the greatest increases being in the prices oranges were in the largest January volume on paid for the North Carolina crop. Weather record. Throughout the autumn months conditions were generally favorable for hand- apples were marketed in smaller volume than ling the crop in the St. Louis districts, and deliv- in the corresponding months in 1923, and a eries and sales were in large volume. Receipts continuation of lighter shipments was evident and offerings of the 1924 crop of both burley in January. The crop in 1924 was smaller dark varieties were greater than last year and than in 1923, and, in view of the smaller availprices were well sustained. Late in January, able supplies, the price of apples at the New however, and early in February the quality of York market on February 20 was 25 per cent the new burley crop was poorer than earlier in higher than a year ago. Cold-storage holdings the season and prices for such grades were lower. of apples were 35 per cent lighter on February 1 Heavy sales in January were reported by the than last year and 16 per cent lighter than on Burley Tobacco Growers' Cooperative Associ- the same date in 1923. After advancing ta ation, which amounted to approximately 110,- $3.75 a bushel at New York for the week end- 000,000 pounds. Since December 1 sales by ing February 13 from the low level of $3 a the association have aggregated 172,000,000 bushel at the first of the month, the price of pounds, and, in view of this decided improve- potatoes declined to $3.25 a bushel on Febment in demand, sentiment in the growing areas ruary 20. A year earlier the price was $4.35 has changed and the proposed "cut-out" move- a bushel. ment is less serious than early last autumn. Stocks of all tobacco held by manufacturers and dealers were smaller at the beginning of Livestock. January than at the beginning of October, but During 1924 the most significant developthey were still larger than last year. The ments in the livestock industry were reductions table shows the stocks of the different types at in the number of hogs and beef cattle and the beginning of 1924 and 1925: increases in the number of milk cows and sheep. The total number of hogs on farms STOCKS OF TOBACCO and ranges on January 1, 1925, was 18 per cent smaller than at the beginning of 1924 and the [In pounds] number of cattle was 5 per cent smaller. A short corn crop, accompanied by high prices, Types Jan. 1,1924 Jan. 1,1925 made hog raising less profitable, and in order to make losses as light as possible producers Chewing, smoking, snuff, and export... 1,219,694,350 1,266,082,988 Cigar 358,356,222 371,043,245 marketed their stock rapidly in the closing Imported 73,979,605 76,543,662 months of the year. Continuation' of low Total 1,651,930,177 1,713,669,895 prices for beef cattle, the drought in a considerable part of the range territories, and the Production of cigarettes and manufactured short corn crop resulted in heavy marketing of tobacco products in January exceeded the vol- range cattle, while the relatively higher prices ume in December, but it was smaller than for dairy products, lambs, and wool resulted in that of January last year. The output of cigars a further increase in the number of milk cows- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

MARCH, 1925 FEDERAL RESERVE BULLETIN 159 and sheep. Since 1922 the dairy industry has sale markets on May 1 for the past five years been expanding rapidly, and the total number were about 6,300,000 pounds, and average of milk cows in the country is the largest on holdings on February 1 for the same period record. were 29,250,000 pounds, the average reduction In January ranges, pastures, and livestock being about 78 per cent. With stocks amountsuffered from the continuous cold weather and ing to 45,812,000 pounds on February 1 this much feeding was necessary; but in February year, a reduction of about 86 per cent will be the weather was milder throughout the western necessary in the three months February, grazing districts and many of the snow-covered March, and April to bring holdings to the averranges were opened, and the stock showed con- age level for the past five years. In view of siderable improvement, particularly in the the large stocks and a continuation of heavy northwestern grazing districts, where the production there was a considerable decline in drought was not serious. In Texas and other prices in January, which reached a low point sections of the Southwest the drought has con- of 373^ cents a pound for 92-score butter at tinued, and the condition of the ranges is New York for the week ending January 23, considerably lower than last year. approximately 73^ cents a pound below the Marketing of all livestock was smaller in high level reached in December. Late in January than in December, and all animals January, however, and early in February the were sold in fewer numbers than in January market was stronger, and for the week ending last year. After reaching the unprecedented February 20 the quotation was 41 cents a level of 6,604,000 head in December, the num- pound. ber of hogs marketed declined to 6,104,000 head Contrary to the situation in the butter in January, which, with the exception of Jan- industry, stocks of other dairy products are uary, 1924, was the largest number on record not excessive, and condensed milk is in a more for that month. The number of cattle and favorable position than a year earlier. Procalves that reached the market in January was duction and stocks of cheese are slightly larger 10 per cent smaller than in December, but only than in 1924 and the prices at several of the slightly below that of last year. Sheep, on the wholesale markets are somewhat lower, but other hand, were marketed in 14 per cent the change from last year is much less prosmaller volume than in January, 1924. nounced than in the case of butter. In view of the relatively better position of the cheese Dairy products. and condensed-milk industries, there is a tend- A sharp increase in the shipments of butter ency among some of the butter manufacturers to principal markets in January and a slowing in Wisconsin to increase the output of cheese down in the rate of movement out of storage and condensed milk and to reduce the producresulted in a much smaller reduction in aggre- tion of butter. gate stocks in January than a year ago. At the beginning of February stocks of butter MINING Coal and coke. were the largest on record for that date, and while they were approximately 200 per cent Recessions in both production and prices larger than on the same date in 1923 and 1924, characterized the market for bituminous coal they were not exceptionally heavy when com- during the latter half of January and the first pared with some of the earlier years, as is half of February. The Coal Age index of spot shown in the table: prices for bituminous coal, after touching $2.12 on January 12, declined weekly to $2.03 STOCKS OF BUTTER ON FEBRUARY 1 on February 9 and stood at $2.04 on February Pounds. 16. Daily average production per working 1919 36, 777, 000 day declined during the same period from 1920 38,359,000 2,098,000 tons for the week ending January 1921 41,486,000 10 to 1,624,000 tons for that ending February 1922 35,047,000 1923 16, 122, 000 14. This recession, which was in contrast to 1924 15, 243, 000 the movement during the preceding four weeks, 1925 45, 812, 000 carried mid-February production below and During the months of February, March, and prices to about the same levels as those at the April stocks of butter are rapidly reduced and middle of December. Despite the lower rate a low point is reached by the beginning of of output during the latter half of the month, May. Average stocks at the principal whole- January production of bituminous totaled 33405—25 3 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

160 FEDERAL RESERVE BULLETIN MARCH, 1925 51,914,000 tons, a figure that has been exceeded of the year, and following this reduction in in only two months since 1920. Little change the supply there were advances in the prices characterized the market for anthracite during of gasoline. The tank-wagon price at 30 cities the period. January production of 7,400,000 supplied by eastern and mid-continent refiners tons was slightly in excess of December but averaged 15.7 cents a gallon at the end of well below January of last year. January, as compared with 13.59 cents a Production of by-product coke during Jan- gallon in October, the low point for 1924. uary reached 3,406,000 tons, a new maximum, Prices for other refined products were stronger while output of beehive at 1,170,000 tons was in January and February than last autumn, the largest since March, 1924. Production but the increases were not as significant as of beehive for the week ending February 14 those for gasoline. was 264,000 tons, as against 276,000 tons the previous week, which was the highest weekly Metals. figure attained on the present movement. In contrast to December activity and price advances lasting well into January, a quieter Petroleum, tone dominated the nonferrous metal markets Improvement in the oil industry, which during the latter part of January and the first began late in the autumn, continued in Jan- half of February. With primary producers uary and February. Although the rapid frequently out of the market and large conincrease in the output of crude petroleum at sumptive requirements for the first quarter the Wortham, Tex., field, reaching a peak of apparently filled, the markets both here and 167,000 barrels a day in the middle of January, abroad were influenced largely by second-hand caused a larger total production in January and odd-lot dealers, and price recessions from than in December, the larger supply was not the January highs were recorded in copper, sufficient to check the rising prices. After the zinc, lead, and tin. The price of refined middle of January, however, the flow at electrolytic copper delivered at New York, Wortham fell off, and by the week ending which had advanced to 15 J^ cents on January February 14 the daily average output for the 14, fluctuated between 143^2 and 15 cents and entire country had declined to 1,935,100 on February 18 was again quoted at 143^ barrels, as compared with a peak production cents. Production of 144,544,000 pounds in for the year of 2,023,650 barrels a day in the January was well above the high levels of the middle of January. Although a rapid increase last quarter of 1924 and the highest monthly in the supply of crude petroleum from the production since the war. Shipments of lead Wortham field is no longer a serious problem from Joplin district during January made a for the oil industry, reports indicate that ad- new high, while prices of both lead and zinc, vancing prices have stimulated expansion in after continuing the December rise during the Mexico and wildcatting in the West and South- first half of the month, broke sharply and west. The rapid advance in the price of crude closed the month lower than at the opening. petroleum since the beginning of the year is Shipments of slab zinc from refineries during pointed out in the following table: January were slightly under the high levels of November and December, but still in excess of production, which made a new high, so that Price of stored stocks were further reduced and at crude pe- Date troleum per about 19,000,000 tons were the lowest since barrel June, 1923. Production of silver in January was 5,374,000 Jan. 2 $0.90 " 9-_ .90 ounces, the lowest since July, 1924. Quota- " 16 .90 " 23- 1.15 tions for bar silver in New York continued to " 30 1.35 recover during January and reached 6934 on Feb. 6 1.35 " 13 1.55 the last day of that month, but fell off sub- " 20. 1.55 sequently and stood at 68^ on February 18. In spite of deliveries of tin in the United Improvement in the crude petroleum in- States during January that were higher than dustry was preceded by improvement in the for any month since April, 1924, stocks within refined products industry. Stocks of gasoline the country increased to 4,394 tons, the highest were reduced from 1,650,000,000 gallons at the since July of last year. Straits tin averaged end of May to 1,180,000,000 gallons at the end slightly over 57 cents during the four weeks Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

MARCH, 1925 FEDEKAL RESERVE BULLETIN 161 ending February 18 and ended the period at present prices. As a result of large slaughterthat price, in contrast to a high of 60 J^ on ings of hogs and cattle, cold-storage holdings January 3. of pork and beef products are considerably MANUFACTURING larger than last year, but lamb and mutton Food products. products were in about the same volume. Greater activity was noted in the flour and Both domestic and foreign demand for meats sugar manufacturing industries in January and meat products were larger than in Decemthan in December, but the production of meat ber and dollar sales by 41 packers reporting to products as measured by the number of animals the Chicago Federal Reserve Bank were 7 per slaughtered was smaller. The output of flour cent greater than in January last year. Exports was 6 per cent larger than in December and of hams, bacon, lard, and most beef products with the exception of January, 1920, was in the increased during the month, but practically all largest volume for that month in the past five products were shipped abroad in smaller volyears. Milling operations in the Chicago, ume than last year. Minneapolis, and Kansas City Federal reserve districts were higher than in December, but Textiles. production in the St. Louis district was 4 per Buying of textile products was fairly active cent smaller than in the preceding month. during January and February, markets on the Rapid advances in the ""price of wheat in whole continued rather strong, and production January were accompanied by higher quota- was increased or maintained at relatively high tions for flour, which, for the week ending levels to cover orders previously received. January 30, reached $10.50 a barrel for spring The few price changes noted recently have patents at Minneapolis. Early in February, varied in extent and direction, but some ^Tere with the decline in the price of wheat, flour important, such as the increases in men's quotations dropped to $9.45 a barrel, but part suitings at the openings of fall lines. of this loss was recovered during the remaining Demand for cotton goods has been well weeks of the month. Average flour prices for maintained, and although orders in general the entire month of January were the highest are probably not as numerous as they were a for any month since October, 1920, and were few weeks ago, buying of certain constructions about $3.50 a barrel higher than last year. In of print cloths and finished goods has been view of the violent fluctuations in the grain rather active. Prices have remained without markets buyers were purchasing only for im- significant changes for several weeks; the mediate requirements. Exports were in con- Fairchild index of cotton goods prices has siderably smaller volume than in December fluctuated within a narrow range around and were in the smallest volume for January 15.65 since November 22. In fact, fluctuations in the last six years. of cotton goods quotations since last April The output of sugar in January increased 75 have been smaller than during any similar per cent over December and was in the second period since the war. The cotton-yarn market, largest volume on record for that month. on the other hand, has weakened somewhat Prices of both raw and refined sugar declined since the first of the year, and the Fairchild in January, and on February 20 refined sugar yarn index has fallen from 44.44 in the first was 46 per cent and raw sugar 56 per cent week of January to 42.44 for the week ending lower than last year. February 21. Manufacturing operations were All animals except sheep were slaughtered in increased further during January, as indicated fewer numbers in January than in December. both by mill consumption of raw cotton and As compared with January a year ago there were by active spindle hours, which were the largest increases in the slaughterings of cattle, calves, recorded since May, 1923. In the cottonand hogs, but the increases were compara- growing States consumption and the number tively small. The number of hogs slaughtered of spindles active during January were the in January was the second largest monthly greatest on record. Imports of cotton goods figure on record and followed from the excep- have been heavy recently; in January receipts tionally heavy marketings in December and at principal ports totaled 18,682,690 square January. Reports indicate that while market- yards, the largest figure reported for any month ing has been large the hogs have been lighter of the past year. in weight than ordinarily, which is indicative Early in February the American Woolen Co. of the tendency among producers to sell their opened its fall lines of men's wear at an average herds rather than attempt to feed corn at advance over last year's prices of 6.6 per cent Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

162 FEDERAL RESERVE BULLETIN MARCH, 1925 on 50 staple suitings. Increases in woolens advances in yen exchange were important were greater than in worsteds. Buying since factors in the recent price rise. the openings has in general been only fairly Demand for knit goods has been fairly active, but woolens continued to be more strong since the first of the year. Orders have popular than worsteds. Manufacturing opera- increased and production schedules have been tions in the industry were at a somewhat lower somewhat enlarged. Production of practirate in January than in December, according cally all classes of hosiery increased in Decemto the percentage of machinery hours active. ber and was much greater than a year earlier. Consumption of raw wool, on the other hand, Preliminary reports indicate further increases was slightly greater during January than in January in shipments and orders as well in December. December figures from the as in production. Production and orders for men's clothing industry show a much larger knit underwear also increased considerably number of garments cut than in the same in December, but shipments were somewhat month a year before. The raw-wool market smaller and stocks were enlarged. Early in has been weaker since the first of the year, and February prices of wool underwear were adprices throughout the world have declined. vanced by a leading producer. Fairchild's index of domestic raw wool prices fell from 144.976 in the week of January 24, Iron and steel. the highest figure since 1920, to 140.590 in the Orders for iron aitd steel products have been week of February 21. Wool stocks on Decem- much lighter since the first of the year than ber 31, as reported by the Bureau of the Cen- during the last few months of 1923. Specifisus, were the smallest recorded since the cations on contracts placed at that time for figures began in 1922. The accompanying first quarter delivery are large, and production table shows the data for domestic and foreign is at a high level; furthermore, unfilled orders wools for certain recent dates. In recent are probably sufficient to maintain active manmonths imports have increased considerably; ufacturing operations for several weeks, but they totaled 47,503,591 pounds in January, the orders for second quarter requirements are not largest figure recorded since April, 1923, and being booked in large quantities. The level of weekly data indicate a continuation of ship- prices is now higher than when contracts were ments at the same rate. made last fall. The recent advance, however, ,has been checked and some declines have been STOCKS OF RAW WOOL IN THE UNITED STATES noted, but the general level, as indicated by [Actual weight in thousands of pounds] the Iron Trade Review's composite price, has been relatively stable since the first of Janu- Total Domestic Foreign ary. Quotations on steel scrap were particularly weak, and several reductions were made. Dec. 31, 1924. 131,373 131,123 Sept. 30, 1924 304,215 185,527 118,689 Production of pig iron and steel ingots in June 30, 1924. 323, 713 182,298 141,415 January was the largest ever before recorded in Mar. 31, 1924. 273,971 112, 701 161, 270 Dec. 31, 1923. 315,471 148,537 166,934 that month, and the total output of ingots has Mar. 31, 1923. 373, 534 81,624 291,910 Sept 30, 1922 420,655 177,656 242,999 been previously exceeded only twice—in May, 1923, and March, 1924. The daily average Marked improvement was noted in the silk production of steel ingots has increased 115 per industry during January and February—buy- cent since the low point in output last July. ing increased considerably, productive opera- In February the rate of operations was retions were enlarged, and prices rose. Takings of duced slightly and toward the end of the month raw silk by American mills totaled 39,885 bales averaged about 88 per cent, as compared with in January, more than in any month since the 92 per cent at the end of January. Furnaces statistics began in 1920. Imports continued in blast on February 1 totaled 251—61 per large, but were smaller than in December and cent of the total number of stacks. Unfilled were less than mill takings. Consequently orders of the United States Steel Corporation, warehouse stocks were reduced for the first in face of large production and shipments, intime since July. Stimulated by large orders, creased 220,000 tons during January to 5,037,producers of both tjirown silk and silk goods 323 tons, the largest total since August, 1923. nave increased production. The price of raw Railroad buying, particularly of bridge masilk again turned upward in February and ad- terial, continues to be an important factor in vanced to the highest point since last March. the market, but car and locomotive awards Greater strength m the Yokohama market and during January were the smallest recorded in Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

MARCH, 1925 FEDERAL RESERVE BULLETIN 163 several months. Some increase in car orders Lumber. were noted in February. Although prospec- Shipments of lumber in January, as reported tive building is large, structural steel bookings by the National Lumber Manufacturers' in January totaled less than in any month last Association, totaled 1,287,000,000 feet arid year. Automobile manufacturers continue to production 1,225,000,000 feet. Production be conservative buyers. Demand for semi- in this month exceeded the cut of lumber in finished products has been fairly heavy, al- November and in December, and was in exthough here also some slowing down in buying cess of production in any preceding January has been noted. The pig-iron market has like- since 1918. The Federal Reserve Board index wise been dull in recent weeks. for lumber production, corrected for seasonal variation, rose from 128 for December to Automobiles and tires. 145 for January. Shipments in January were Slight seasonal increases in production and above the corresponding total for December factory shipments of automobiles were report- and also above that for January, 1924. They ed in January, but both sales and output con- exceeded the total production in January, as was tinued small as compared with previous the case in the same month last year. Last year months. The current situation presents a in January shipments were running above prosharp contrast to that of a year ago, when duction. As reported by the West Coast Lumproduction was at a high rate and dealers were berman's Association, shipments of Douglas fir placing large supplies of cars in storage in ran below production during October and Noanticipation of the spring demand, which vember and exceeded production in December failed to develop to the extent expected. and January. Shipments of southern pine, as Production of passenger cars totaled 204,000 reported by the Southern Pine Association, exin January, as compared with the recent low ceeded production in October, November, and point of 179,000 in December and with 287,- December, and fell below production in Jan- 000 a year ago. Railroad shipments were uary. In the seven weeks ended February 14, practically the same as in December and con- 1925, lumber cut reported for eight associations siderably smaller than during January, 1924. totaled 1,516,000,000 feet, shipments 1,589,- Manufacturers report an increase in sales to 000,000 feet, and orders 1,535,000,000 feet. dealers as compared with December, while For these weeks production was 4.6 per cent, dealers' sales to users were smaller. Certain and orders were 3.4 per cent below shipments. dealers in the Middle West reported to the Federal Reserve Bank of Chicago an increase in the Hides, leather, and shoes. number of cars on hand at the end of January as Hide and leather markets have noted some compared with those held a month earlier and a decrease in activity since the first of the vear, decrease within the past year. A number of but on the whole business has been fairly price reductions were made in December and good for this season. Sales of hides and skins in the first part of January, but few have been were reported to be less active on the Chicago announced since the middle of January. The market, and prices have declined since the demand for trucks has continued fairly good, middle of January, but lower prices are usual and production has been relatively stable since at this season because of the poorer quality of the middle of 1923. hides and skins offered. Raw stocks of cattle For the second successive month production hides increased in December, but those of of automobile tires and tubes in January calf, goat, and sheep skins were further reexceeded shipments, and stocks increased. duced, and all were smaller than a year earlier. Inventories are rather large as compared Stocks disposed of were much larger than in with those on corresponding dates of previous December, 1923. years, but the increase is not so great when the Demand for leather has lessened a little year-to-year growth in shipments and produc- recently, but on the whole has been fairly tion is considered. After a sharp decline in well maintained. Prices have been firm, with prices in January, the crude-rubber market advances noted in a few cases. Stocks of strengthened and quotations rose about the finished leather were in general reduced during middle of February. Imports in January December, and production was greater than totaled 73,700,000, as compared with 59,000,- in November, although for some types of 000 in December and 49,000,000 in January, leather output was less than in December, 1924. 1923. Stocks in process on December 31 were Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

164 FEDERAL RESERVE BULLETIN MARCH, 1925 all smaller than at the end of the previous as values—9.5 per cent, from 46,800,000 feet in year. Preliminary figures show a decrease of December to 42,342,000 feet in January. Five 6 per cent in the production of sole leather out of eight classes of construction show deduring January to 1,294,319 backs, bends, and creases, the most considerable being that for sides. Tanners' finished stocks were reduced residential building contracts. This year's and stocks in process were increased. January total for all classes of construction is Shoe manufacturers are now producing in 15 per cent below that of January, 1924. preparation for deliveries of shoes for Easter. The number of square feet of residential con- Producers report more activity in the buying struction contracted for in January of this year of women's shoes than in the case of men's was 23,518,000, which is less by nearly onelines. In general, factories are booked up third than the corresponding total of 34,693,until Easter, but few orders have been received 000 for January, 1924, and below the total of for later delivery. Shipments have been 24,586,000 for January, 1923. seasonably dull. Production of shoes was Number and value of building permits issued about 7 per cent greater in January than in in 168 selected cities of the United States also December, totaling about the same as in declined in January from the totals of the January, 1924. Decreases in output were month preceding. Number of permits issued noted in the Philadelphia and Chicago dis- decreased from 41,519 in December to 38,735 tricts, whereas increases occurred in the other in January, and values from $247,000,000 to important producing sections. Sales of shoes $213,000,000, the decrease in values amountat wholesale were smaller in January than in ing to 13.7 per cent. Value decreases from the the corresponding month last year. December totals are shown for the cities of 10 Federal reserve districts, and relatively small BUILDING increases for the Dallas and San Francisco districts. In January of 1924 these same cities Contracts awarded in 11 Federal reserve disissued 42,096 permits, covering values totaling tricts during January indicated for this month $222,000,000. In comparison with January a in comparison with the month preceding a deyear ago decreases in values are shown for the crease of nearly 9 per cent in the value of procities of eight districts, and increases for the jected building. Statistics compiled by the cities of four districts, the net decrease for F. W. Dodge Co. show decreases for the Bosthe 168 cities combined amounting to 4.2 per ton, Cleveland, Richmond, Atlanta, Chicago, cent. and St. Louis districts, and increases for the On February 20 the price of Portland cement New York, Philadelphia, Minneapolis, Kansas per barrel was $1.85, which was the price re- City, and Dallas districts. January values corded for the preceding week, for a month ago, contracted for a year ago in 10 of these disand for a year ago. The price of bricks on tricts combined held very close to the preced- February 20 ($14 per thousand), while materiing December total, but the December-Janually lower than in February a year ago, has ary decrease this year in these districts from not changed in recent weeks, and the price $327,000,000 to $294,000,000, although conindexes for lumber also indicate only inconsidsiderable in amount, leaves the volume of new erable price changes. The Bureau of Labor building contracted for at a high figure for statistics price index for building material, January—only 2 per cent below the excephowever, advanced in January to 179.3 from tionally high total for January a year ago and 175.1 in December. more than 20 per cent above that for January two years ago. The New York district, TRANSPORTATION which in January of this year reported more than one-third—$110,000,000 out of $310,- Freight-car loadings in January of 3,991,557 000,000—of the values represented in contract cars for all classes of freight combined ran close wards in the 11 districts, reported an increase to the December total of 3,931,109 cars, the of $8,500,000 in January over December, the increase of January over December being some- January total this year, which is close to that what under average seasonal change for these for January, 1924, being in excess of the Jan- months, with the result that the Federal uary, 1923, figure by $44,000,000 and double Reserve Board index of car loadings corrected the January, 1922, total. for seasonal variations declined slightly—from Square feet contracted for in 27 northeastern 124.2 to 122.9 per cent. Car loadings in Janu- States decreased in nearly the same proportion ary were, nevertheless, greater than in any Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

MARCH, 1925 FEDEKAIi RESERVE BULLETIN 165 January of the six years, 1919 to 1924, for all TRADE classes of freight combined, and specifically for Wholesale trade. miscellaneous freight, merchandise 1. c. 1., grain Total volume of wholesale trade in the and grain products, forest products, and coal. United States in January was smaller than in Loadings of ore and coke, while not in record December. For the past three years trade in volume, were in excess of, and loadings of live- January has increased over December, but stock were close to last year's movement. this year the Federal Reserve Board's index Loadings in January ran above the December was about 1 per cent less than in the precedtotals in the Allegheny, Pocahontas, northwest- ing month. Sales of groceries, shoes, hardern, and central western districts, and fell off in ware, machine tools, diamonds, jewelry, and the eastern, southern, and southwestern dis- electrical supplies showed the greatest declines, tricts. They ran above the 1924 January totals while sales of meat, dry goods, drugs, milliin all districts excepting the eastern. nery, and farm implements were larger. Re- Weekly figures show that in the week ended ductions in the distribution of shoes occurred February 14 loadings of coke, ore, merchan- in all Federal reserve districts except in the dise, and miscellaneous freight were running Atlanta, St. Louis, and San Francisco disabove, and loadings of grain and grain products, tricts, and were heaviest in the Cleveland, livestock, coal, and forest products, and of all Philadelphia, Minneapolis, and Chicago disclasses combined, below last year's totals for tricts. this week. Aggregate dollar sales were 2 per cent In February, as in January and in each smaller than last year. Declines were noted month of the preceding year, the roads were in all leading lines except groceries, meat, furmaintaining a large surplus of serviceable niture, and agricultural implements, but incars, with practically no shortage attributable creases in the sales of groceries were not to failure on their part to provide for traffic general, since six Federal reserve districts needs. Reports for February 14 show a reported a smaller distribution than last year. surplus of 220,798 cars and a shortage of 511 Greater sales of agricultural implements, on cars. the other hand, were indicated in all reporting Toial operating revenues for Class I railways districts. Sales of dry goods were about 16 in December, amounting to $505,522,950, were per cent smaller than last year, and declines $10,908,235, or 2.2 per cent above, while total were noted in all Federal reserve districts exoperating expenses, amounting to $381,415,252, cept in the Minneapolis district. were $6,738,761, or 1.7 per cent below the corre- Stocks of merchandise at wholesale firms in sponding totals for 1923. The operating ratio six Federal reserve districts from which reof expenses to revenue was accordingly lower ports were received were larger than at the in December of 1924 than in the corresponding end of December, and stocks of groceries and month of 1923, being reduced to 75.45 from drugs were larger than at the close of January 78.48 per cent. last year. Smaller sales of dry goods in Jan- Final figures for the calendar year 1924 give uary resulted in large increases in stocks, vatotal operating revenues of Class I roads as rying from 11 per cent in the Philadelphia $5,986,492,120, which falls short of the 1923 district to 32 per cent in the Dallas district. aggregate by $373,931,093, or 5.9 per cent. Shoe stocks were heavier in all reporting dis- Operating expenses totaled $4,558,307,781, tricts at the end of January than in Decemgiving in comparison with the preceding year a ber, but smaller than in January a year ago. decrease of $386,827,617, or 7.8 per cent. In Collections were smaller than in December, 1924, according to compilations of the Bureau but larger than in January last year. Acof Railway Economics, operating revenues were counts outstanding, however, were smaller for 3.4 per cent above and operating expenses 6 most lines at the end of the month than at the per cent below the average of the five preceding end of December and were somewhat smaller years. The operating ratio on the year's than a year ago in most sections of the counaccount as a whole was brought down from try. 77.75 for 1923 to 76.14 for 1924. Net railway Retail trade. operating income for Class I roads in 1924 gives a rate of return on the book investment of the Trade at retail stores in January was seasoncarriers of 4.33 per cent, which is below the ally smaller than in December, but when adrate of 4.48 per cent earned in the preceding justment is made for the usual seasonal change year. in January, sales at grocery, 5-and-10, drug, Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

166 FEDERAL BESERVE BULLETIN MARCH, 1925 music, and candy chain stores were larger. orders of department stores at the end of Although sales at mail-order houses and at all January were in about the same volume as at chain stores were larger than last year, the end of January last year. business at department stores was no larger than in January, 1923. Mail-order house and PRICES drug chain sales were in approximately 10 per Wholesale prices increased in January by cent greater volume than last year and in- 1.9 per cent, according to the index of the creases at grocery and 5-and-10 chains were Bureau of Labor Statistics. The largest inabout 20 per cent larger than a year ago. crease, of 4.3 per cent, was in the index for Sales at department stores, after correction farm products, but all the groups, with the for seasonal variation, were 5 per cent smaller exception of cloths and clothing and misthan in December, and declines were evident cellaneous commodities, showed advances for in all Federal reserve districts except Dallas. the month. From the low point of June, 1924, As compared with January last year, aggregate the general level of prices advanced 10 per cent. dollar sales at these stores were in about the This advance reflects a rise of 22 per cent in same volume, but there were increases in the price of farm products and of 18 per cent sales in the three mid-western districts— in the price of foods, with smaller advances in Chicago, Minneapolis, and Dallas. Retail most of the other groups and an actual decline distribution in the New York district was in the fuel and lighting group. approximately the same as last year, but it When regrouped by stage of manufacture, was in smaller volume in other eastern districts raw materials snowed an advance of 3.3 per and the southern districts. Analysis of these cent, which reflects the rise in crops, animal data, by departments, indicates that sales of products, forest products, and a slight increase silks, velvets, neckwear, veilings, toilet articles, in mineral products. Producers' goods and leather goods, misses7, juniors', and girls' consumers' goods each rose 1 per cent. For ready-to-wear, corsets, brassieres, negligees, the period June, 1924, to January, 1925, all aprons, house dresses, and shoes were all in groups showed increases; raw materials admore than 6 per cent larger volume than last vanced 13 per cent, reflecting a 19 percent year. Departments selling cotton dress goods, rise in crops and a 22 per cent rise in animal ribbons, silverware, men's clothing, women's products. Consumers' goods increased 12 per coats and skirts, waists, sweaters, gloves, toys, cent, and producers' goods showed an advance and sporting goods, on the other hand, reported of less than 3 per cent. a substantially smaller volume of business In the following table are shown index than last year. numbers of wholesale prices in the United - The aggregate dollar value of stocks of States, as grouped by the Bureau of Labor merchandise at department stores was 5 per Statistics and as regrouped by the Federal cent smaller than at the end of December, but Reserve Board: was about 3 per cent larger than in January last year. Reductions from December oc- WHOLESALE PRICES IN THE UNITED STATES curred in all Federal reserve districts except in [1913=100] the Atlanta district, where they were 10 per cent larger than at the close of the preceding 1925 1924 month. Inventories of departments carrying neckwear, veilings, handkerchiefs, silverware, leather goods, boys' wear, women's coats, January ce D m e b - er June January misses' ready-to-wear, negligees, aprons, and glassware showed the greatest increase in All commodities 160 157 145 151 Bureau of Labor Statistics groups: stocks over last year. Stocks of women's Farm products 163 157 134 144 suits, misses' ready-to-wear, sweaters, mil- Foods 160 158 136 143 Cloths and clothing 191 191 187 200 linery, and men's and boys' shoes, on the Fuel and lighting 168 165 175 169 other hand, were substantially smaller than Metals 136 133 132 142 Building materials 179 175 173 181 last year. The rate of turnover for depart- Chemicals and drugs. _ 135 135 127 132 House furnishings 173 172 172 176 ment stores, as measured by the relation of the Miscellaneous 127 129 111 117 volume of sales to stocks, was slower than in Federal Reserve Board groups: Raw materials 167 161 147 156 January last year. Goods moved more slowly Crops 196 186 165 182 Animal products. _ 133 129 109 115 in all Federal reserve districts from which data Forest products _. _ 193 187 182 194 were received except in the Atlanta, Minne- Mineral products _ 172 169 168 170 Producers' goods 134 132 130 136 apolis, and Dallas districts. Outstanding Consumers' goods 169 167 151 156 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

MARCH,, 1925 FEDERAL RESERVE BULLETIN 167 In February the prices of many commodi- force of employees. The former figure was ties, including wheat, oats, rye, sheep, flour, unchanged and the latter 1 point larger than eggs, copper, and hides, declined, while ad- in December. As in preceding months, the vances were shown for corn, barley, hogs, only important wage changes during January potatoes, lumber, and petroleum and gasoline. were reductions of about 10 per cent in the Retail food prices, according to the index wages of cotton-mill operatives. These deof the Bureau of Labor Statistics, increased creases affected 20,000 employees, making a by about 2 per cent in January, reflecting an total from that industry of over 75,000 whose advance in prices of cabbages, eggs, potatoes, wages have been lowered in the past 10 months. flour, corn meal, oranges, cheese, lard, bread, ham, and coffee. Over a year ago the advance SAVINGS DEPOSITS in food prices has been about 4 per cent. Cost of living also showed some advance in The total of savings deposits reported by January. 907 banks distributed throughout the United States was $7,675,205,000 on February 1, EMPLOYMENT 1925, as compared with $7,656,758,000 on Increases in the volume of employment in January 1, 1925, and $7,183,402,000 on certain important industries during January February 1, 1924. This represents an increase were largely offset by seasonable declines in of 0.25 per cent during January, a month others. The index of employment in manu- when the growth of savings deposits is apt to facturing industries increased only slightly— be checked by withdrawals following the from 92.7 in December to 93.1 in January. crediting of interest, and an increase over the Pay rolls actually decreased during the period. year from February 1, 1924, to February 1, Declines in both employment and wage earn- 1925, of almost 7 per cent. The Atlanta and ings is considered usual at the first of the year, Chicago districts were the only ones showing owing to the temporary closing down of many decreases in savings deposits during January, plants for inventories and repairs. In New while increases of over 1 per cent occurred in the England, however, pay-roll totals were larger Boston, Philadelphia, Minneapolis, and Dallas than in December, although they were smaller districts. A comparison of savings deposits on in every other section, and the decrease for the February 1, 1925, with a month and a year country as a whole was nearly 3 per cent. previous, is shown, by Federal reserve dis- Despite the fact that the volume of production tricts, in the following table. In the Boston is higher than it was a year ago, factory em- and New York districts the figures represent ployment and wage payments are about 5 per only deposits of mutual savings banks; in cent smaller. all other districts, where there are but few By industries, iron and steel, textiles, and mutual savings banks, savings deposits of leather and shoes reported more employees other banks are included. in January. On the other hand, in lumber, stone, clay and glass products, food products, SAVINGS DEPOSITS, BY FEDERAL RESERVE DISTRICTS and tobacco there were seasonal declines. {In thousands of dollars] The automobile industry reported a larger number than in several months, but as com- Nump th a e r ed l a w rg i e th s t la d st e c J r a e n a u se a . ry F t u h r is t h i e n r d m u o s r tr e y , s i h n o w th ed e District b b a e n r k o s f ' F 1 e 9 b 2 . 5 1, Ja 1 n 9 . 2 5 1, Fe 1 b 92 . 4 1, east north central section of the country, where the automobile industry is important, Boston 64 1,295,931 1, 282,074 1, 227, 742 New York 30 2, 058,549 2,056,333 1,922, 678 there have been larger declines in pay-roll Philadelphia... 79 517,463 512, 550 483,826 Cleveland 69 825,337 825,020 761,251 totals within the past year than in any other Richmond 89 329,862 327,741 293,099 section. Of the more important industries Atlanta 94 235, 533 238, 829 221,692 Chicago 197 929,765 937,486 897,435 the greatest increase in January was noted in St. Louis 31 141,167 140,326 135,025 Minneapolis.-.. 14 91, 957 90,774 88,478 iron and steel and in boots and shoes. Kansas City... 58 104, 057 103,709 99,990 Establishments reporting to the Bureau of Dallas 111 98, 698 97, 337 93,377 San Francisco.. 71 1,046,886 1, 044, 579 Labor Statistics operated at 92 per cent of Total,-.. 907 7,675,205 7,656, 758 7,183,402 full time in January with 82 per cent of a full 33405—25 1 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

168 FEDERAL RESERVE BULLETIN MARCH, 1925 COMMERCIAL FAILURES AND BANK SUSPEN- BANK SUSPENSIONS, JANUARY, 1925 SIONS During January there were 96 banks, with During January 2,317 commercial failures capital and surplus of $6,222,000, reported to were reported by R. G. Dun & Co., indicating the Federal reserve banks as having been an increase of nearly 14 per cent from the total closed (including in this number 1 nonmember of the preceding month. These insolvencies bank in the Dallas district which was closed involved liabilities amounting to $54,354,032— and reopened within the month). This tot-il, 20 per cent above the total for December. which compared with 60 for December, was Both the number and liabilities were higher higher than for any month since January of than in the same month of 1923 or 1924. last year, when 136 banks were reported closed. Of the total number of insolvencies 480 oc- Of the total number of suspensions for the curred among manufacturing enterprises, 1,757 month 63, with capital and surplus amounting in the trading group, and 80 among agents and to $3,260,000, were nonmember banks and 33, brokers. Although manufacturing and trading with capital and surplus of $2,962,000, were insolvencies were considerably more numerous member banks; 9 of the latter were nonnational in January than in December of last year, member banks and the remaining 24 were the increase in the total amount of indebt- national banks. Increases in the number of edness in default was largely attributable suspensions occurring during January this year, to the occurrence of a few failures of unusual as against the latter months of last year were size among agents and brokers. There were six more marked in the Atlanta, Chicago ; , and failures in this group, which had average liabili- Dallas districts, and more particularly in the ties of about $2,804,000, which compares with States of Georgia, Iowa, and Texas, than elsean average of $23,459 for all commercial fail- where. During the month 5 nonmember banks ures during the month taken together. previously closed were reopened, 3 in the Min- It is usual for failures to be more numerous neapolis district and 1 each in the Dallas and in January than in December; in fact, de- San Francisco districts. Although the figures creases have occurred between these two for bank failures represent so far as could be months in only two years, 1919 and 1920, out determined banks which had been declared of the past 20 years. Although the number of insolvent or were closed by order of superinsolvencies in January of this year was higher visory authorities, it is not known how many than in the same month of 1923 or 1924, the of the latter institutions may ultimately prove relative increase from the month of December to be solvent. was less this year than for January, 1923 or 1924. BANKS CLOSED DURING JANUARY, 1925 Commercial failures were more numerous [Amounts in thousands of dollars] in January than in the same month last year in all except the Philadelphia, St. Louis, Min- All banks Member Nonmember neapolis, and Kansas City districts. Compari in n g o t n h l e y s th am e e N m ew o n Y th o s r , k l , ia R bi i l c i h ti m es o n w d e , re A t h l i a g n h t e a r , N b u e m r - C su a a r p n p i d l t u a s l N b u e m r - s C u a a r p n p i d l t u a s l N b u e m r - C su a a r p n p i d l t u a s l Dallas, and San Francisco districts. Comparative data, by districts, for the month of All districts 6,222 133 2,962 7 63 3,260 Richmond 417 23 209 5 208 January are presented in the following table: Atlanta 765 499 8 266 Chicago 2,047 903 21 1,144 FAILURES DURING JANUARY S M t. i n L n o e u a i p s olis _ 6 5 8 6 6 7 305 9 5 6 2 8 6 6 2 Kansas City 823 241 11 582 Dallas 548 507 73 41 Number Liabilities San Francisco 369 64 298 1 71 Federal reserve district 1925 1924 1925 1924 1 Comprises 24 national banks, capital and surplus of $2,012,859, and 9 nonnational member banks, capital and surplus $948,870. Boston 217 203 $3, 742,645 $7,173,862 2 One nonnational member bank, with capital and surplus of $40,000. New York 416 407 20, 028,016 8,884,038 s Two nonnational member banks, with capital and surplus of $163,350. Philadelphia.. 80 113 1, 747,846 2,157,916 4 Two nonnational member banks, with capital and surplus of $425,440. Cleveland 199 175 4,937,059 6,160,933 6 Two nonnational member banks, with capital and surplus of $188,630. Richmond 188 152 4,029,401 3, 505,170 • Two nonnational member banks, with capital and surplus of $131,450. Atlanta • 156 136 2, 750, 320 2,452,051 7 Includes one bank closed and reopened within the month. Chicago 345 251 9, 753, 298 12,641, 812 S M t. i n L n o e u a i p s olis-. 1 1 2 0 7 3 1 1 4 0 3 4 1,0 4 9 3 5 3 , , 1 7 4 2 9 4 1 1 , ,1 6 2 6 9 9, , 8 2 8 2 0 5 FOREIGN TRADE Kansas City.. 134 168 1,678, 389 2,035, 090 Dallas 78 1,312,836 1,170,988 Imports of merchandise during January San Francisco. 274 2,845,349 2, 291, 543 totaled $346,000,000, an increase of $13,000,- Total... 2,317 2,108 54,354,032 51,272,508 000 over the previous month, of $50,000,000 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

MARCH, 1925 FEDERAL RESERVE BULLETIN 169 over January of last year, and the highest GOLD MOVEMENT figure shown since May, 1923. Exports of merchandise were $447,000,000, an increase of UNITED STATES about $2,000,000 over December and of $52,000,000 over January last. Net exports In January there were net exports of $68,declined by $12,000,000 as compared with 000,000 of gold from the United States, the December, from $113,000,000 to $101,000,000, largest for any month in the history of the but rose slightly as compared with January, country. 1923. Gold imports into the United States during The total visible export balance during January totaled $5,038,000, the smallest figure January amounted to $174,000,000, compared shown since November, 1919, about 49 per with $57,000,000 a year ago. The great excess cent of the imports in December and about of exports for the month vas brought about 11 per cent of those for January, 1924. By by the fact that the gold export balance was countries, the largest decreases in the two $68,000,000, compare^^ith an import balance recent months as compared with a year ago are of $45,000,000 during January, 1923. shown in imports from England, which declined from about $23,000,000 to a negligible amount, and from Canada, which declined from about MERCHANDISE TRADE BALANCE OF THE UNITED $8,500,000 to about $3,000,000. Imports from STATES the Netherlands a year ago were about $6,- [In thousands of dollars] 000,000, wThereas none were shown during the Month Imports Exports E im xc p e o ss rt s of E e x x c p e o s r s t s of last two months. Gold exports during January totaled $73,- 489,000, the largest figure shown since June, 1924 January 295,506 395,172 99,666 1919, when exports were $82,973,000. Jan- February. 332,323 365, 775 33,452 uary exports rose by more than 85 per cent March 320,482 339,755 19,273 April _ 324.291 346,936 22,645 as compared with December, while for Jan- May 302,988 335,099 32, 111 June 274,001 306,989 32, 988 uary, 1924, gold exports were negligible—only July 278, 594 276,649 1,945 $281,000. The greatest increase for the month August— 254, 542 330,659 76,117 September 287,144 427,460 140,316 under review was shown in exports to British October 310,752 527,172 216,420 November 296,148 493, 573 197,425 India—about $36,500,000 compared with $5,- December 333,173 445,742 112,569 700,000 during December, and none a year ago. Year 3, 609,944 4, 590,981 981,037 Exports of gold to Germany, $20,000,000 1925 during December and $17,500,000 during Jan- January 346,184 446, 577 100, 393 uary, are, with two negligible exceptions, the first exports of gold from this country to Germany since the armistice. Most of this TRADE BALANCE OF THE UNITED STATES FOR JANUARY, 1924 AND 1925 gold appears to have gone into the reserves [In thousands of dollars] of the Reichsbank, which show between the end of November and the end of January an ch M an e d r i - se Gold Silver Total increase of 139,000,000 gold marks, or over $33,000,000. Another notable item is an export during January of $6,354,000 of gold 1924 Imports.. 295, 506 45,136 5,980 346, 622 to Australia. Exports.. 395,172 281 8,209 403,662 Silver imports during January totaled $7,- Net imports (—) or ex- 304,000, of which over $4,000,000 came from ports (+) I +99,666 -44,855 +2,229 +57,040 Mexico and about $2,000,000 from Peru. 1925 Imports I 346,184 5,038 7,304 358, 526 Exports of silver totaled $11,308,000, of Exports. 446, 577 73,489 11,308 531, 374 which about $4,000,000 was sent to British Net imports (—) or ex- India, $3,600,000 to England, and $3,000,000 ports (+) .1+100,393 +68,451 +4,004 +172,848 to China. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

170 FEDERAL RESERVE BULLETIN MARCH, 1925 GOLD IMPORTS INTO AND EXPORTS FROM THE UNITED balance of net exports for November of STATES £163,000. [In thousands of dollars] For the 12 months ended December, 1924, gold imports were £35,794,000, a decline as January, Decem- January, compared with 1923 of £8,193,000, which is 1925 ber, 1924 1924 accounted for by the smaller imports from the Transvaal. Gold exports declined by an al- IMPORTS most equal amount, £8,015,000. The greatest England 128 11 22,940 decrease was shown in exports to British France 71 3,036 2,120 Netherlands 5,915 India, which declined frc a £19,000,000 to Canada.. 3,120 2,730 8,466 Mexico _ 517 473 560 £12,000,000. Exports to the United States Argentina 2,715 203 declined from £33,000,000 to £29,900,000, China.- 20 512 Egypt 2 486 and to Egypt from £2,000,000 to £1,385,000. Allother __. 1,180 1,309 3,934 Exports to Russia during 1924 totaled £2,000,- Total.. 5,038 10, 274 45,136 000, while in 1923 t>ere were none. Net EXPORTS exports for 1924 showed an increase of £178,000 England . 5,078 10,264 as compared with 1923. France 1,309 34 Germany 17, 500 20, 000 Netherlands 3,284 1,324 Sweden 1,003 1,001 GOLD IMPORTS INTO AND EXPORTS FROM GREAT Canada... 33 188 128 BRITAIN Mexico _. . _ 343 466 138 Uruguay 750 30 British India... 36,466 5,674 12 months 12 months Hongkong. 942 220 13 Decem- Novem- ended ended Australia __ 6,354 ber, 1924 ber, 1924 December, December, All other . 427 474 2 1924 1923 Total 73,489 39, 675 281 IMPORTS Net imports.. 44, 855 Net exports 68,451 29,401 Sweden £132,900 £173,100 £8,217 Netherlands _ £5,888 3,360 123,841 66,333 United States _ 2,623,103 2,564 2,767,197 2, 654,877 Egypt. 10,525 57,678 Rhodesia 211,627 189,447 2,447, 348 2, 263, 388 GREAT BRITAIN Transvaal 1,883,917 1,085,176 28, 533, 217 37,474,494 West Africa 151, 824 114,095 1,450,808 1,252,362 Imports of gold into Great Britain during All other 25,218 143,155 287,828 209, 306 December totaled £4,900,000, the largest Total — 4,901,577 1,670,697 35,793,864 43,986, 655 amount shown since April, and almost three EXPORTS times as large as the figures shown for Novem- Belgium 8,241 724 90, 872 82,478 France 23, 822 6,070 409, 653 131, 697 ber, The largest increase was shown in im- Netherlands _ 177, 796 62,821 1,224,840 1,470,586 ports from the United States, which rose by R Sw us e s d i e a n _ 1, 922, 470 1 4 3 4 6 , , 5 5 0 8 0 0 2,0 6 0 0 0 1, , 4 5 9 9 7 0 56,993 more than £2,600,000, almost as much as the Switzerland 152, 554 160,710 United States 29,188 29,906,220 33,005,253 total received from the United States during British India. 1, 688,376 1,421,754 12, 264, 600 19,092, 740 Java .. . 17,916 48,194 238,407 the preceding 11 months or during the year Straits Settlements 11, 364 34,208 252, 007 289,512 1923. Indeed, for a figure at all comparable, Egypt 26,350 25, 385 1, 385, 710 2,030,500 All other 330, 855 54,325 1,082,870 875,479 it is necessary to go back to 1910, when im- Total 4,189, 274 1,833,471 49,419,607 57,434,355 ports from the United States totaled £6,700,- 000. Imports from the Transvaal during Net imports 712,303 Net exports 162,774 13,625,743 13,447,700 December rose by about £800,000 as compared with November. INDIA Exports of gold during December totaled £4,189,000, an increase of £2,356,000 over In view of the important r6le of gold exports November and the largest figure shown since to India in the international gold movement, a last May. Exports to Russia, which occurred brief statement of the statistics is here prelast October for the first time since the Rus- sented. sian revolution, showed the largest increase Below is given a table showing the gold for the month, being £1,900,000 as against movement into and from British India for the £45,000 for November and £33,000 for Oc-15 years ending March 31, 1910 to 1924, inclutober. An increase of £267,000 was also sive, with subtotals for the five pre-war, war, shown in exports to British India during and post-war years. It will be noted that of December as compared with November. Net the 15 years for which figures are given, only 3 imports for December (£712,000) were the show a net export of gold, and of those 3 years, largest since April, 1923, and compare with a 2 fall within the period of the war. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

MARCH, 1925 FEDERAL RESERVE BULLETIN 171 TOTAL GOLD IMPORTS INTO AND EXPORTS FROM GOLD IMPORTS INTO AND EXPORTS FROM BRITISH BRITISH INDIA INDIA, BY PRINCIPAL COUNTRIES—Continued [In thousands of dollars] [In thousands of dollars] 1920 1921 1922 1923 1924 1 Total Year ended Mar. 31 Imports Exports im N p e o t rts ex N po e r t ts EXPORTS 1 I H 0 t U i 1 l O 2 l 1 8 8 32 9 0 , , , 2 0 7 5 9 8 6 9 0 1 1 1 0 2 1 , , , 5 9 7 2 4 2 4 8 5 1 7 6 2 9 6 0 , , , 3 7 8 7 3 3 4 2 2 J A U a l n p l i a t o e n t d h e S r tates... 2 4 4, , 7 9 2 4 4 0 0 3 4 5 2 0 8 , , 6 6 4 9 6 6 2 8 5 213 420 559 5 5 2 5 2 , , , 5 4 8 9 9 1 7 6 1 l 1 t U »1 1 3 4 1 9 3 0 2 , , 3 1 2 3 4 1 2 15 3 , , 3 6 2 8 7 8 10 7 8 4 , , 6 8 3 0 6 4 Total _ 29,887 79,825 213 420 559110,904 Total, 1910-1914 524,590 74,212 450,378 * January to November, inclusive. 1015 34,252 9,780 24,472 IUI0 16,901 20,451 3,549 FOREIGN EXCHANGE 1917 42, 681 328 42, 353 Leading European exchanges showed slight IMS 96, 508 12,990 83, 517 1&1U 8,174 28,154 19,980 declines during February. Sterling declined Total, 1915-1919 198, 516 71, 703 150,342 23, 529 from $4.79 on February 2 to $4.76 on the Net imports 126,813 18th and remained at atout that level during 207,144 55,471 151.673 the remainder of the month; French francs de- 80,340 73,121 7,219 36, 458 41,015 7,557 clined from 5.41 cents per franc during the first 122, 691 395 122,296 five days of February to 5.13 on the 28th; 11*2-1 89, 924 205 89, 719 Italian lire declined from 4.16 on the 2d to 4.03 Total, 1920-1921 536, 557 173,207 370, 907 7,557 Net imports 363, 350 cents per lira on the 25th; the Netherlands florin from 40.31 cents per florin on the 2d to Total, 1910-1924 1, 259, 663 319,122 971,027 31,080 N't't imports 940,541 40.01 cents on the 27th. Swedish kronor, however, remained practically steady at 26.95 cents per krona. The Canadian dollarf luctuatedb e- The following table shows the gold movement tween 99.80 and 99.92 cents per dollar. into and from India since 1920, by principal South American exchanges also showed slight *M>untries. Imports from Great Britain for the recessions; the Argentine peso from 91.31 whole period reviewed in the table amounted cents per peso on February 3 to 89.63 cents on ««» 56 per cent of the total, and, except for the 13th; Brazilian milreis from 11.63 cents on 1021, this proportion is fairly evenly susthe 2d to 10.99 cents on the 26th; and the tained. Imports from the United States vary Chilean peso from 10.80 cents per peso on the from 14 per cent during 1920 to nothing 2d to 10.65 cents on the 14th, after which it during the 11 months of 1924, while the amount rallied to 10.95 cents on the 24th. received from Australia and New Zealand nvwages 10 per cent of the total and is in Of the Far Eastern exchanges the Shanghai relatively constant proportion. tael fluctuated between 74.73 and 75.75 cents per tael; the Indian rupee between 35.59 and Exports during 1920 and 1921 went almost 35.86 cents; and the Japanese yen between entirely to Japan and to the United States, 38.52 and 39,73 cents. since that time gold exports from India have !»wn negligible. FOREIGN EXCHANGE RATES HOLD IMP I O N R D T I S A , I B N Y T O P R A IN N C D I PA EX L PO C R O T U S N T F R R IE O S M BRITISH Feb 1 r 9 u 2 a 5 ry, January, 1925 J a a r n y u , - [In thousands of dollars] Exchange v P al a u r e a 1 v 92 e 4 r- , Low High I Low High age 1920 1921 1922 1923 I 19241 Total Sterling 486.65' 475.78 479.33 474.99 480.37 478.17 425.91 French franc 19.30! 5.13 5.41 5.30 5.43 5.39 4.67 German reichs- IMPORTS mark 23. SOi 23.80 23.801 23.80 23.80 23.80 »«..i Britain 140,195 5,277 54,988 78,774 i 46,34132;5, 575 Italian lira 19. 30! 4.03 4.16 4.03 4.24 4.17 4.34 »n««<l States 29,772 3,153 3,140 14,286! 4,091 54,442 Netherlands florin. 40. 20! 40.01 40.31 40.30 40.61 40.41 37.35 » . U .- i - n . » i l i l l . H -il T ia and New Zca 2 1 G 7, , 5 0 9 0 0 9 1 2 7 , , 4 4 1 9 5 1 1 1 0 8 , ,2 3 7 9 1 0 1 18 0 , , 5 S 0 3 5 5 ! j 1 6 0 7 , , 0 2 3 8 3 814 51 ^ , , 5 2 6 6 4 3 S S A C w w a rg n i e s e a d s n d i s t f i i h r a n a n e n k c r d p o o n e l a s la o r . . . . _ 1 2 9 0 1 6 0 0 9 . . . . 4 3 0 8 S 0 0 0 i ! ! i 2 9 8 1 9 6 9 9 . . . . 2 9 8 ( 1 5 3 0 3 2 9 9 1 9 1 6 9 . . . . 9 3 9 3 5 0 2 1 1 ! 2 9 9 1 0 9 9 6 . . . . 5 9 4 2 3 2 5 6 1 2 9 9 1 6 9 1 9 . . . . 9 9 5 3 6 6 0 9 2 9 9 1 9 6 1 9 . . . . 3 6 9 0 4 9 5 8 2 9 1 7 7 3 6 7 . . . . 1 3 ? 6 ' 8 2 > 5 Total._ 213, 5GGJ 28,336 86,789 122, 400; 127, 753J578,844 Shanghai tael 06. 85 j 74. 73! 75. 75 i 74.32 75. 96 75.34 70.27 ! Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

172 FEDERAL RESERVE BULLETIN MARCH, 1925 SOUTH AFRICA AND THE GOLD earlier, and will thus act in accordance with STANDARD the commission's recommendations. The report of the commissioners was printed Gold redemption was suspended in South in the South African Cape newspapers for Jan- Africa in 1920 for a period which was succes- uary 16,1925, in its entirety, with the exception sively extended to last until July 30, 1925.1 of the first 10 sections, which relate to the ap- Under the law as it now stands conversion pointment of the commission, etc., and is here will be restored automatically June 1 of the reproduced from that newspaper. The occacurrent year, or whenever the market price of sional subheadings have been added for congold is 77s. 103^d. per standard ounce (i. e., venience and form no part of the original report. when sterling reaches parity), whichever date is earlier. In view of the approach of the date REPORT OF THE COMMISSIONERS set for the resumption of specie payments, Mr. RELATION OF SOUTH AFRICAN POUND TO STERLING Hayenga, the minister of finance of South Africa, invited Prof. E. W. Kemmerer, of 11. Under present conditions, the problem practically narrows itself down to the question: Should Princeton University, and Dr. G. Vissering, South Africa in determining now her future monetary president of the Netherlands Bank, as com- policy, decide to tie up definitely with sterling, hoping missioners, to visit South Africa and to study that sterling will return to a gold basis soon, but being the question of the desirability of a return to prepared to follow sterling wherever it may go, or should she decide to tie up definitely with gold? For the gold standard. In the middle of January some time the South African pound has been conthe commissioners made a report recommend- siderably more valuable then the pound sterling, but ing the resumption of gold payments by South not until within the last few days has it been, as Africa, regardless of whether similar action is measured by exchange rates, as valuable as the gold sovereign. Although bearing the name of a pound, taken by England. The text of the report is the South African monetary unit has been for several printed below. years, both in its gold value and in its value as measured It may be stated by way of introduction that by its purchasing power over commodities, a different pound than the pound sterling. the currency unit of the South African Union is It has responded very incompletely, and with suba pound of identical gold value with the pound stantial lags in time, to the ups and downs in the value sterling. Until recently the South African of sterling. This fact has led to confusion and mispound has stood at a substantial premium over understanding among bankers, merchants, and the the pound sterling. With the rise of the latter public generally. Your commissioners believe that South Africa is too unit nearly to dollar parity in early January, small a country from an economic point of view to have the South African pound actually rose some- a monetary standard so independent of the monetary what above dollar parity and consequently standards of other countries, and that it is clearly to above its nominal gold value, a situation pres- South Africa's interest to tie up definitely, either with sterling, as Egypt has done, or with gold, as Canada is ently corrected by a reduction in the quoted doing. The question is, which? premium on South African exchange in Lon- 12. It has been suggested that South Africa might don. While this situation lasted, however, tie up to sterling with the condition that should sterling there was a suspension of offerings of South depreciate in its gold value further than a certain point, say, for example, further than 10 per cent below gold African gold in the London bullion market, parity, South Africa should break with it at that point, the gold being taken instead to the Pretoria and either wait there for sterling to come back or then mint for coinage into sovereigns. At the same begin to deflate at once the South African currency toward gold parity. time there was a rapid increase in the holdings Your commissioners do not believe that such a plan of gold coin and bullion by the South African would be desirable, and they doubt if it would be Reserve Bank, the item rising from £552,458 carried through if once adopted. Should sterling depreon January 3, 1925, to £1,020,343 on the 10th ciate below the limit fixed, this plan, as contrasted and £2,237,589 on the 17th and £2,728,947 on with the early adoption of the gold standard, would increase the probability of wide fluctuations in the the 24th—a net increase of £2,176,489. value of the South African pound—10 per cent is about Since the South African Government has a year and a half's interest in South Africa—and would announced that no legislation will^be intro- thereby increase the uncertainties and the risks of South African business. It is improbable that if South duced postponing the resumption of specie Africa should follow sterling down 10 per cent she payments beyond June 30, it would appear would be willing to break with sterling at that point. that the South African Union will return to Should sterling decline further, the same arguments the gold standard on July 1 of this year or and sentiments that have prevailed in the past, and that would be determining such a decision in the present, would be likely to prevail in the future. W » For discussion of currency and banking in South Africa, including a Prof. Edwin Cannan recently well said: "As usual, summary of the law establishing the South African Federal Eeserve Bank, see BULLETIN, 1922, p. 1324. when currency has once become depreciated, it is a Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

MARCH,, 1925 FEDEKAL EESERVE BULLETIN 173 case of jam yesterday and jam to-morrow, but never This fact, together with the great unstability of the jam to-day." (Economic Journal, December, 1920, p. sterling-dollar rate during the past five years and the 524.) many failures of the exchange prophets during that It is usually exceedingly difficult to stop an inflation period, are calculated to make one very modest in his movement after it has once gained momentum. prophecies as to what will happen to sterling during 13. If, however, the plan were adopted; if sterling the year 1925. should depreciate below the 10 per cent limit, and if the It is sufficient to say if sterling returns to parity by plan were then carried out. South Africa would find her- July 1 next South Africa's problem will have been self in the awkward position of having a monetary largely solved. standard that was neither gold nor sterling—her own little standard, different from that of any country of the NECESSITY FOR PROMPT DECISION world—and she would be confronted with the problem 17. In accordance with the present law (act No. of either immediately undergoing the pains of de- 22 of 1923), South Africa will automatically return to flating toward gold parity or of temporarily debasing the gold standard on July 1, 1925, unless legislation to her monetary unit to the 10 per cent gold discount the contrary is passed between now and that date. level while awaiting the return of sterling, and then, •Perhaps, in no other field is the old adage: "To be when and if sterling should come back to this level of forewarned is to be forearmed," the embodiment of a deflating with sterling to gold parity. This might well sounder philosophy than in the field of monetary take a long time. reforms. Dangers cease to be dangers when they Your commissioners see no advantage in such a are anticipated and when their probable effects can plan at all commensurate with the risks of the serious be discounted. evils that its adoption would involve. The public of South Africa ought to know at the 14. At the time of this writing (January 3, 1925), the earliest possible date what course is to be taken on London-New York telegraphic register transfer rate is July 1, so that they can prepare for it, and this is quoted as 4.75, or only 2.2 per cent below gold parity. particularly true of that part of the public upon The South African telegraphic transfer buying rate is whom the responsibility will largely fall for making 3^2 per cent discount, and the selling rate is 2$^ per preparations for the resumption of gold payments and cent discount, making the mean rate between the buyfor maintaining the gold standard after it has once ing rate and the selling rate 3.06 discount; so that the been reestablished. South African pound to-day is 0.86 per cent above For this reason your commissioners believe that a gold parity. decision should be reached at an early date and that a It has, in fact, been within 2 per cent of gold parity public announcement of the decision should be made ever since your commissioners left London ,in the promptly. latter part of November. 18. If a decision is to be arrived at now, and to be 15. The present high sterling dollar rate is the highest announced promptly to the public, South Africa should quoted since March 19, 1919, when the rate was be ready to stand by that decision regardless of what unpegged. The London-New York rate advanced may happen to sterling during the next six months. almost continuously throughout the year 1924, begin- In the interests of the public the South African Governning with an average rate for the month of January, ment should take whatever risk may be involved and 1924, of 4.259, or a rate of about 123^ per cent below assume full responsibility to support the carrying out gold parity and of about 10 per cent below the rate of the decision. of to-day. If the rate should advance half as rapidly during the next six months as it has advanced during the past CONDITIONS FAVOR RETURN TO GOLD STANDARD year, it would be at gold parity before July 1. 19. Conditions in South Africa at the present time are favorable to a prompt return to the gold standard, PROGRESS TOWARD GOLD STANDARD IN 1924 more favorable than they have been at any time since The experiences of the year 1924 improved the gold payments were suspended December 15, 1920. situation generally throughout the world as a result For two months and over the South African pound, as of settlements growing out of the Dawes committee measured by the banks' telegraphic transfer rates on report, and the declared policy of Great Britain to London the mean between the buying rate and the ; carry out the recommendations of the Cunliffe com- selling rate, taken in connection with the dollar rate in mittee are all encouraging signs of a speedy return to London, has been very near gold parity, having never gold parity. been below 2 per cent of gold parity since the middle of Your commissioners hope and expect to see sterling November last. at par with gold by July 1 next. In that contingency At the time of writing (January 3,1925), as previously the situation in South Africa would, be practically the noted, it is approximately 0.86 per cent above gold same whether she should now decide to tie up with parity, and if a rate so favorable as this continues long sterling or to tie up with gold. South Africa may find itself practically back on a gold 16. But, while expecting sterling to return to gold standard with gold coin in circulation long before July 1. parity within the next six months, your commissioners 20. Money is worth what it will buy, and, therefore, would not feel justified in basing their recommenda- the best test of the value of money is to be found in tions on the assumption that such a return will take price index numbers. Fortunately South Africa posplace. They recall that the dollar-sterling rate, after sesses, for the period 1910 to the present time, good advancing from the low figure of 3.56 (July 29, 1921) index numbers covering wholesale prices of some 188 almost continuously to the high figure of 4.72 (February different commodities. 21, 1923), an advance of 323^ per cent in about 19 months and after the public had largely made up LOW SOUTH AFRICAN PRICE LEVEL its mind that sterling was to return soon to a gold basis, suddenly turned around and declined from 4.72 These index numbers show that the wholesale price (February 21, 1923) to 4.28 (November 17, 1923), a level here (excluding the price of gold) is lower in reladecline of 934 per cent in nine months. tion to the price level immediately preceding the Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

174 FEDERAL RESERVE BULLETIN MARCH, 1925 European war than is the price level in any other by simply diverting a small stream from her annual country of the world for which we have comparable outflow of gold—an outflow which is now back to pracstatistics. tically pre-war volume—to her local mint. She no The following table shows the wholesale price index longer needs to wait until gold can be coined in London numbers for the latest month of 1924 for which figures and shipped to her shores, and, being the premier are available for 20 different countries. The countries gold-producing country of the world—producing about are arranged in the numerical order according to three-fifths of the total world's annual product—she which their currencies, as evinced by their respective can tap the supply at its source, and no country, by price levels, have been deflated toward their pre-war embargoes or otherwise, can prevent her from getting value: promptly all that she is willing to pay for. South Africa, 133 (October); Egypt, 148 (Septem- 24. The fact that the year 1924 has been a successful ber); United States, 149 (September); Canada, 154 year for the gold mines, and that the agricultural pros- (September); Netherlands, 159 (September); Switzer- pects at the present time in South Africa are excellent, land, 160 (October); Australia, 162 (September); are both favorable to an easy return to the gold Sweden, 163 (September); United Kingdom (Board of standard. Trade), 167 (September); United Kingdom (" Statist"), 25. If, on the other hand, South Africa should now de- 166 (September); Dutch East Indies, 174 (July); cide to tie up to sterling, and if sterling should depreciate British India, 179 (September); New Zealand, 181 as a result of inflation in Great Britain, South Africa (August); Spain, 184 (September); Japan, 206 (Sep- would be practically compelled to follow sterling down, tember); Denmark, 234 (September); Norway, 275 no matter how low it should go or how long it should (September); France, 486 (September); Belgium, 550 continue to decline and then later to follow it back to (September); Italy, 580 (September); Czechoslovakia, gold parity if it should come back in harmony with the 997 (September). declared policy of Great Britain, as expressed in the 21. South Africa, it will be noted, heads the list. Cunliffe committee's report. As measured by her price index numbers, South Africa This would mean that South Africa would be comis to-day deflated more, in comparison with the situa- pelled to undergo again all the evils of inflation and tion immediately preceding the war, than gold standard subsequently again to go through all the evils of deflacountries like the United States or than countries tion. Her experiences during the long inflation period y whose exchanges have been for some time practically culminating about the middle of 1920, and her subseat par with gold, like Canada and the Netherlands. quent four years and more of deflation experiences, are The best evidence available, therefore, seems to show too recent to make necessary here any long description that South Africa's currency is already deflated, not of the hardships of inflation and deflation. only to the gold standard level, but probably somewhat It is perhaps sufficient to recall that a widely below. fluctuating monetary unit brings a spirit of uncer- In this connection it is significant that the South tainty into all business transactions, encourages dan- African wholesale price index number rose from 125 gerous speculation, and, with blind injustice, robs one for July, 1924, to 133 for October. The return to gold class of people in the community for the benefit of standard in South Africa would probably require, another. therefore, no more deflation. That disagreeable job When the currency is depreciating and the price has already been done during the last four and a half level is, therefore, rising, it is the creditor who isyears. robbed for the benefit of the debtor, the bondholder 22. It has been claimed that South Africa's price for the benefit of the stockholder, the laborer for the level immediately preceding the European war was ab- benefit of the capitalist or the consumer, the insurnormally high in comparison with the years just before ance-policy holder, the savings-bank depositor, and when compared with other countries. Your commis- the pensioner for the benefit of stockholders and mortsioners have made comparisons of the index numbers gagors. of South Africa for the years 1910 to 1913 with those When the currency is depreciating, the cost of living of a number of other countries, and do not find that usually advances more rapidly than wages, with rethe evidence supports its claim. In this connection it sulting hardships to wage earners and the labor disshould be added that Mr. C. W. Cousins, who was content that usually results from inflationary movedirector of the Bureau of Census and Statistics of South ments. The French have a saying: "The guillotine Africa for the seven years ending 1924, stated in his follows the paper-money press; the two machines are testimony that he did not believe that the year 1913 complimentary one to the other." was abnormal in this respect in South Africa when com- m When, on the other hand, the currency is apprepared with other countries. ciating in value and prices are falling, namely, during periods of deflation, the debtor suffers for the benefit of the creditor, the stockholder for the benefit of the STRONG RESERVES OF SOUTH AFRICAN BANKS bondholder, the farmer or the home buyer with a 23. A third favorable factor is South Africa's mortgage on his place for the benefit of the money present strong gold position. lender, the employer and the capitalist for the benefit The reserve bank at the time of writing is carrying of the laborer. the large gold reserve of £10,775,746, representing 64 When the currency is appreciating, wages usually per cent of its outstanding notes and deposits combined. lag behind the cost of living on the decline, with the The two principal commercial banks in South Africa result that employers find themselves under economic are holding heavy sterling balances in London. The pressure to reduce wages, as the prices of their pro- Pretoria branch of the Royal Mint was opened in ducts are declining, and also to discharge employees. January, 1923, and began issuing silver coin in June Such reductions and threatened unemployment are of that year. It has a capacity for coining 12,000,000 usually resisted by laboring men, with resulting labor sovereigns a year and, with a few additions to plant discontent and strikes and labor troubles during inflaand equipment, could increase that capacity to tion, and labor troubles during deflation are the rule. 24,000,000 sovereigns. South Africa can, therefore, 26. Both inflation and deflation have their bright now replenish her supply of gold coins at short notice spots, but the predominating color of both is black. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

MARCH, 1925 FEDERAL RESERVE BULLETIN 175 Within the last 10 years most countries of the world (c) Stability of exchange with gold standard counhave experienced it, and the world now struggles for tries which are continually increasing in number and monetary stability. in which a large proportion of South Africa's exports Any government which has the choice of two mone- (e.g., gold and diamonds) find their consumers' market, tary policies and deliberately chooses the one which the market which is most influential in determining appears to be the more likely to lead to inflation and the ultimate demand for these products and, therefore, subsequent deflation assumes an enormous responsi- in determining the price which South Africa will bility to its people. receive. 27. Gold itself, unfortunately, is not highly stable (d) Greater confidence abroad in South Africa and in value, although, since the end of the postwar gold- resulting encouragement to the investment of foreign deflation period, the middle of 1921, the value of gold capital here. Conservative capital seeks markets has been reasonably stable. The wholesale index num- where the prospects of currency stability are good and bers of the Bureau of Labor Statistics in the United will prefer, for some years to come, countries on the States, a country which has been on the gold basis gold standard to countries with managed paper throughout this period, have been as follows: 1921, standards. 147; 1922, 149; 1923, 154; 1924 (10 months), 149. (e) Greater confidence of labor which, we have been told, widely believes that it has been taken advantage PAPER-MONEY STANDARD LESS SATISFACTORY THAN of by the introduction of inconvertible paper money in GOLD STANDARD South Africa, and which has more confidence that it is "getting a square deal" when it is paid in gold or in 28. The world's experiences with paper-money paper convertible into gold on demand than when it is standards up to the present time have been much less paid in inconvertible paper. satisfactory than with the gold standard. Managed (/) Money, which, in the denominations of 10s. and paper-money standards have proved to be more £1 will be more convenient for many people, particususceptible to manipulate than is a gold standard and larly laboring people, than are notes, and which will more likely to vary in value under the pressure of also be much more sanitary. political forces. In saying this, your commissioners do not overlook the reasonable stability of the British (g) A benefit to the gold industry in South Africa price level during the past three years. through encouraging, by example, the return of other countries to the gold standard. We have frequently 29. Under present conditions it seems to us that a heard abroad statements to the effect that "If South gold standard is much more likely to be reasonably Africa, the largest gold-producing country in the stable in value during the next few years than is any world, can not or will not return to the gold standard, managed paper-money standard. This statement inhow can our country be expected to do so?" cludes sterling in case Great Britain should be unable or unwilling to hold sterling at gold parity now that parity, as measured by exchange rates, has been POSSIBLE DISADVANTAGES practically attained after years of effort to carry through the Cunliffe Committee's plan. 32. In mentioning the advantages of a return to the gold standard, your commissioners are not blind to 30. Your commissioners, therefore, believe that the certain very real disadvantages that South Africa will wise and conservative action for South Africa to take suffer if she breaks entirely with sterling and if sterling at this time is to clinch gold parity while it is here and should fluctuate for some time rather widely in terms to that end to announce to the public, at the earliest of gold. Any alteration in a country's monetary possible moment, the intention of the Government to standard, no matter how desirable it may be as a longlet existing legislation stand and to return definitely run policy, is bound to affect some interests adversely to the gold standard on July 1 next. over considerable periods of time and many interests AD\ ANTAGES TO SOUTH AFRICA OF RETURN TO GOLD adversely during a brief transitional period. South STANDARD Africa will be no exception to this rule if sterling should again depreciate substantially. 31. The advantages, briefly summarized, are as In the judgment of your commissioners the greatest follows, and we believe that South Africa will obtain disadvantage that South Africa is in danger of suffering these advantages by tying up her monetary unit with is that incident to a more variable exchange rate than gold, a commodity the supply of which on the world's she has had. in the past with Great Britain, the country market is so large and the demand for which is so with which she carries on the major part of her foreign universal that manipulation of its value is always trade. difficult and is destined to be increasingly difficult as While not wishing to belittle this disadvantage, your the world continues its present rapid return to the gold commissioners would call attention to the fact that basis. there are certain offsetting factors and that, estimating (a) A greater stability in the value of her monetary the disadvantages and the advantages that are likely unit—namely, in its purchasing power, both internal to result from a fluctuating exchange, the following and external—than she would probably obtain by fundamental principles should always be taken inta tying up her sterling in case sterling does not very soon account: return permanently to gold parity. (a) There is no permanent advantage to the exporter (b) Greater stability in interest rates and a lower or permanent disadvantage to the importer in a high level of real interest rates—namely, interest rates rate of exchange, and, likewise, there is no permanent measured in purchasing power, because the risks and advantage to the importer or permanent disadvantage uncertainties incident to an unstable currency are, at to the exporter in a low rate of exchange. Neither least in part, compensated for by variations in the party gained, for example, and neither party lost prior nominal interest rate and the greater the market's to the European war, in the trade between France and estimate of the risk the higher will be the charge it Germany by reason of the fact that the gold value of will make under the guise of interest to cover the the franc was about 20 per cent lower than the gold risk. value of the mark. Prices and wages in both countries 33405—25 5 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

176 FEDERAL RESERVE BULLETIN MARCH, 1925 had long been adjusted to, these differences in the gold making forward exchange contracts. An exporter, for value of their respective monetary units. example, who is buying wool now for shipment, say, 60 It is not a question, therefore, of high rates of ex- days hence, which he has already sold in London for change or low rates, but of changing rates. Whatever £10,000, and who does not wish to assume the risk of a advantages and disadvantages occur result only from decline in the exchange between now and the date on rising rates of exchange and falling rates of exchange. which he is to sell his export bill to the bank, namely, These advantages and disadvantages are at best does not wish to gamble on exchange, goes to his temporary in character, continuing only during the banker and tells him that he will have £10,000 sterling period of the lag in the adjustment of prices, wages, and on demand wool bills to sell 60 days or so hence, and exchange rates to a new equilibrium level, and these he asks the banker to quote him now a rate at which readjustments are effected to a very large degree in the bank will agree to buy these bills when they shall most countries usually within a few months' time. be presented 60 days later. The banker quotes him a The evidence available to us here seems to show that rate, and he accepts it. Now, no matter what hapthis conclusion applies to South Africa. Whatever pens to the exchange rate during the next 60 days the benefits the exporter or importer receives from these wool exporter is safe. If the rate goes down he does temporary maladjustments between exchange rates, not lose, and if it goes up he does not gain. He is a prices, and wages, he is soon compelled by the forces wool exporter and knows wool, but he does not know of competition to pass on to others. In order that the intricacies of exchange. He wisely sticks to his the exporter might benefit continuously, it would be last and lets the banker, whose business it is to deal necessary to have a monetary unit that was continually in exchanges, assume the risk of what will happen to declining in value in comparison with the unit of the exchange during the next 60 days. The wool exporter, country to which the bulk of the exports were being of course, must pay the banker a small compensation sent. No sane person would advocate a permanent in one form or another for rendering him this service. monetary policy of the kind in order to benefit the At about the same time, we will say, for illustration, export trade. a merchant, who is contemplating the importation of (6) Every movement of the exchange that benefits machinery from Great Britain that will cost £10,000 the exporter per contra harms the importer, and every sterling and which must be paid for 60 days hence by a movement that benefits the importer harms the ex- demand sterling draft for £10,000, likewise does not porter. Inasmuch as most concerns in South Africa want to run the risk of exchange fluctuations between that produce heavily for export are required to import the time he has ordered his machinery and the date from abroad supplies and equipment gains on the one for making payment. He, likewise, explains his situside from a given movement in exchange are likely to ation to his banker, and that banker now agrees to sell be offset completely or largely by losses on the other him a demand draft 60 days hence for £10,000 sterling side. Taking into account both visible and invisible at a certain rate. items of trade, a country's exports and imports must The importer now knows what to count upon, not be equal. only what he must pay for his machinery in sterling, So that, taking a long-run view of the situation, but also what he must pay for his sterling in South what a country gains on the side of exports by a African pounds in terms of which he has contracted to fluctuating exchange it is likely to lose on the side of sell his machinery or will sell it. If, during the next imports and vice versa. 60 days, the exchange rate rises, the importer of the If South Africa should now return to the gold stand- machinery does not lose, and if it falls he does not gain. ard, and if gold should continue reasonably stable in He likewise has shifted the risk of exchange to a value, as it has during the past three years, and if banker whose business it is to deal in such risks. sterling should depreciate rapidly for a time and then But the banker, meanwhile, has not assumed any turn around and come back to gold parity, the South appreciable risk—he has hedged. The sterling that African exporter would suffer while the decline was in will be paid to the credit of his London account out of process, and, for a few months after bottom should the proceeds of the wool bill which he will receive 60 have been reached, because the prices he would pre- days hence will provide the funds in London out of sumably realize in Great Britain for his exports would which the draft will be paid which he must deliver probably not rise as rapidly as the value of sterling to the machinery importer 60 days hence. would decline in terms of the South African pound. The bank's profits come from the margin between During this period the South African importer would its buying rate and its selling rate. If the bank bebenefit, for the amount of sterling his South African lieves that sterling will go down in the near future, it pound would buy would probably be increasing more may sell more sterling futures than it buys—namely, rapidly than would the prices in Great Britain of the oversell—and if it believes that sterling will rise in the goods he was purchasing; but if the declared policy of near future it may buy more sterling futures than it Great Britain, as embodied in the Cunliffe Committee sells—namely, overbuy. But, in either of these cases, report, was still to be carried out the depreciation of it is speculation. The conservative banker tries to sterling would need to be followed by a subsequent keep his forward contracts for purchases covered by appreciation, and during the period of the apprecia- forward contracts for sales, and thereby limits his tion the South African exporter would benefit and the profits to interest, commission, and the margin between South African importer would suffer because prices his buying and selling rates. would probably not go down in Great Britain as rapidly as the price of sterling in terms of South African RESERVE BANK TO ENCOURAGE FORWARD EXCHANGE pounds—i. e., sterling exchange rate in South Africa TRANSACTIONS would rise. 33. Your commissioners have been surprised to learn UTILITY OF FOKWARD EXCHANGE CONTRACTS that the making of forward contracts in exchange is almost unknown in South Africa, and they believe that (c) The risks incident to a fluctuating exchange can the introduction of this practice would be highly debe to a large extent avoided, and in most important sirable in any event and particularly so if South Africa countries are so avoided by the simple expedients of returns to the gold standard, independently of Great Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

MARCH, 11)25 FEDERAL RESERVE BULLETIN 177 Britain, and if sterling exchange rates prove to be un- whereas she received only £9,500,000 South African, or stable in the future. its equivalent. In addition to this, she would have paid The reserve bank might well render valuable assist- most of her interest during the period of the loan in a ance by encouraging the introduction of the use of more valuable monetary unit than the one she received forward exchange contracts, both by making such con- so that the loan would cost her about 5.4 per cent in tracts directly with the public and by assisting the addition to this interest, an agio item (exchange commercial banks in getting cover at times when the premium). exchange operations in the two directions are not rea- 36. If, however, at the time that South Africa borsonably well balanced. rowed the £10,000,000 sterling there was a strong In this connection the reserve bank might be aided prosDect that sterling would appreciate to gold parity by the Government through a timely distribution of within a short time and if, as a consequence of this Government transfers. prospect, foreigners were buying sterling securities 34. Before leaving this subject of the disadvantages heavily as a speculation, the interest rate on long-time of an unstable exchange with the country with which loans would probably be considerably lower in London you are carrying on your principal business, it should than, say, in a gold standard money market like New be noted that there are very few stable international York, because, in dollar loans, there would be no such exchanges in the world to-day and that most countries, expectation of a substantial exchange profit* The including Great Britain, the United States, France, nominal rate of interest, therefore, would be lower, Germany, Holland, and Italy, are carrying on the and should be lower for sterling loans in England than principal part of their foreign trade with countries for dollar loans in New York by an amount representing with which they have unstable exchanges. One im- the market's estimate of the value of this prospect for portant reason why this is possible without greater in- an approximately 5 per cent rise in the value of sterling convenience is the widespread use of forward exchange during the life of the loan. If such a rise were praccontracts. tically certain within the 20 years the loan was to run, a London sterling rate of interest of 5 per cent would be approximately equivalent to a New York dollar rate EFFECT OF GOLD STANDARD ON PUBLIC BORROWING of interest of 5.4 per cent (exclusive of the agio in the 35. Another disadvantage in South Africa's breaking annual interest payments). with sterling that is of sufficient importance to demand On the other hand, if South Africa, by borrowing brief discussion is the disadvantage of her doing her sterling, should put herself in a position to lose by a public borrowing in a market having a monetary rise in sterling during the life of the loan, she would standard different from her own. also put herself in a position to gain should sterling It is argued that South Africa's political, commercial, decline during the life of the loan. and financial ties are chiefly with Great Britain; that 37. Another compensating factor is the probability she must borrow frequently for public purposes, and that South Africa's credit standing abroad would be that London is the natural market for her to borrow in. improved by the fact that South Africa had stabilized London knows South African conditions better than her currency on a gold basis. does any other great money market and for this reason 38. After all is said, however, there is no denying will presumably give her better terms than she could the claim that it is a risky policy for any country to obtain elsewhere. borrow heavily in another country which has a mone- If then it is argued South Africa should return to the tary standard different from its own when that standard gold standard while sterling should continue to be an is a managed paper-money standard. inconvertible paper money standard, South Africa 39. While such conditions continue, South Africa might suffer a serious handicap in borrowing in London. would do well, in the judgment of your commissioners, Let us assume, for example, that, at the time South to reduce her public borrowing to the minimum, and Africa returns to the gold standard the banks buying to do such borrowing as may be necessary, as far as exchange rate here for sterling telegraphic transfer is 95, possible, on a gold basis either at home or abroad. that that rate has persisted for several months, and that prices and wages have been so adjusted that this rate SOUTH AFRICA CAPABLE OF MAINTAINING GOLD represents approximately the purchasing power parity STANDARD between South Africa and Great Britain. Under such conditions if South Africa borrows 40. A few witnesses have made much of the claim £10,000,000 sterling in London on bonds maturing in 20 that South Africa is not in a position to maintain the years at 5 per cent interest, payable semiannually, she gold standard independently of Great Britain. Your would receive either £10,000,000 sterling in London or commissioners have no anxiety on this point, and they £9.500,000 South African pounds here but since by are confident that, unless this country has recourse hypothesis £95 here would have the same purchasing to a policy of currency and credit inflation, she will power and therefore the same value as £100 would have have no difficulty in maintaining gold payments after in London, it would make no difference to South Africa they have once been resumed. South Africa successwhether the proceeds of the loan were transferred to the fully maintained the gold standard for many decades Government here in British goods or in African money prior to the European war, und your commissioners see or goods. There would be a nominal difference of nothing new in the present situation of a character to £500,000, but no real difference. prevent her maintaining it successfully in the future. If gold should remain stable in value during the period In fact there are certain new elements in the situaof the loan, she would be able to purchase £10,000,000 tion which should strengthen her position. The recent sterling of the loan and sterling should remain at 95. establishment in Pretoria of a branch of the Royal The loan would cost South Africa 5 per cent because, at Mint will enable South Africa to mint sovereigns here, the maturity of the loan she would be able to purchase and by so doing to meet her needs for specie more £10,000,000 sterling for the redemption of the bonds promptly than in the past. Then, too, the new reserve at the price of £9,500,000 South African. But if bank, through its centralization of the country's bank sterling should advance to gold parity by the time the reserves, its liberal powers of note issue, its rediscount loan matured South Africa would be required to pay functions, and its authority to operate in the open marback the equivalent of £10,000,000 South African ket, is in a position to exercise a conserving influence Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

178 FEDERAL RESERVE BULLETIN MARCH, 1925 on the South African money market and to check any drained off and the gold standard maintained through dangerous credit expansion that may seem to threaten the adjustment of the amount of money in circulation the gold standard. to the changing trade demands. 41. South Africa is now producing practically as much gold per annum as she produced before the war, FUNCTIONING OF RESERVE BANK UNDER NEW REGIME and is producing a substantially larger percentage of the world's total production of gold than she did in 43. This brings your commissioners to their last 1913. On the other hand, only a small part of the problem: What action should South Africa take to world is now on the gold standard as compared with strengthen her position for returning to the gold standpre-war years, and therefore exercising much of a mone- ard on July 1 next and for maintaining that standard tary demand on South Africa's product. after it has been once restored? The United States, which now holds about four and 44. In this connection, the principal suggestions your a half milliards of dollars of monetary gold, or nearly commissioners have to make relate to the functions of half of the world's total supply, has much more gold the reserve bank. than it needs for maintaining a stable gold standard 45. The act creating the reserve bank was assented under present conditions, and could probably release to on August 16, 1920—namely, shortly after the time upward of two milliard dollars of her present supply when the postwar currency and credit inflation in without deflation or danger to her gold standard. That South Africa, as well as of Great Britain, the United large amount is practically impounded awaiting the States, and many other countries was at its maximum, day when the world will want it back for the restora- and just as the long period of the after-war world tion of the gold standard. deflation was setting in. The United States is a free gold market, and will Most of the reserve banks' history, therefore, until undoubtedly let this gold go out freely to any country recently has been during the period of South Africa's that wishes it and is willing to pay the market price. deflation, a deflation that was necessary if the country The danger, therefore, that the world will want South was to return to the gold basis without reducing the Africa's 12 to 14 million pounds of gold specie so much gold content of its sovereign. A period of deflation as to be willing to pay more for it than South Africa is no time for a newly organized bank to extend its is willing to pay in order to enjoy the advantages of business by low rates and liberal credits either to the the gold standard is very remote. banks or to the public. The long period of deflation, 42. Gold, like any other commodity, seeks the best however, is now apparently over, and with the prosmarket—in other words, goes to the highest bidder. pective return of South Africa to the gold standard It has been our experience that gold when it leaves any in the near future the time is opportune for considering gold-standard country in undue quantities is usually the question of the proper functioning of the reserve pushed out by paper money and deposit currency in- bank under the new order of things. flation at home, not drawn out by newly created demands from abroad. Whenever a country inflates its DIRECT OPERATIONS IN MONEY MARKET RECOMMENDED currency and circulating credit, it makes its currency relatively redundant at home and, therefore, relatively 46. In the judgment of your commissioners a country cheap. Its money, therefore, seeks the better markets like South Africa, with only three commercial banks, which are abroad. The outflow of currency takes the one of which is small, does not offer an adequate field form of an exportation of gold since the country's of operation for a reserve bank that is exclusively, or paper money and silver money can not be used abroad. almost exclusively, a banker's bank. A central bank As gold specie goes out, the currency is contracted and possessing a monopoly of the bank-note issuing privmoney at home becomes increasingly scarce. Bank ilege, and holding in its vaults the legal reserve money reserves decline, banks curtail their loans, discount of other banks in any country, would be a quasi public rates tend upward, and prices tend downward, par- institution "affected with a great public interest." ticularly the prices of the more sensitive commodities; The first duty of such a bank is to serve the public. commodity imports are retarded, while exchange rates This it does through conserving the mone}7" market by are high and commodity exports are stimulated; ex- preventing undue credit expansion or undue credit change rates finally recede from the gold-export point, contraction by maintaining the monetary standard and gold stops going out because it has become more through regulating the supply of currency to the varyvaluable as money at home than it is abroad. ing demands of trade and through assuring the public But if the country refuses to let these restricting as far as possible equitable rates of discount and exinfluences operate and keeps pumping more paper change. To perform these functions properly, a money into circulation or expanding its deposits credit central bank must be ready at any time to operate through excessive loans to take the place of the gold in the open market in order by so doing to make its going out,, the drain of gold will, of course, continue rates effective, and thereby enforce its policy. Otheruntil the gold is all gone and the gold standard is broken wise the commercial banks, so long as they did not down. Any rapid depletion of the country's gold need to call upon the central bank for aid, might refuse reserve under such circumstances will weaken public to follow its leadership, and so prevent it from disconfidence in the currency' and by so doing will cause charging its duties to the public to some extent. runs on the gold reserve, thus accelerating the run Therefore open-market operations directly with the of its depletion. public are absolutely necessary, even by a reserve Unless, however, the gold is being pushed out of the bank if it is to perform its functions properly. country by inflation, there is no more reason, why a 47. A second reason why a central bank should have country's currency should starve because of an undue reasonable powers of dealing directly with the public exportation of its gold specie than that its people should is to enable it to earn sufficient to cover its expenses, starve because of an undue exportation of its mealies. build up a reasonable reserve, and to pay adequate Under ordinary circumstances an outflow of specie is dividends on its capital during normal times when the simply a proof that the supply of money at home is market is outside the bank—in other words, when the relatively redundant and the outflow is merely part market conditions are such that the commercial banks of the machinery by which the excessive supply is are making no demand upon the reserve bank for Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

MARCH, 1925 FEDERAL RESERVE BULLETIN 179 advances. A central bank, whose existence is desirable (4) That the limit of the usance for bills, notes and in the interest of public welfare, should be self-support- other commercial paper discountable by the reserve ing. Self-preservation is Heaven's first law for such a bank at the time such discount is made be extended bank, as it is for an individual. This means that it from 90 days to 120 days. (Article 13 of the reserve should be in a position to earn a moderate income at bank act.) all times. If, however, it is to be always strong, and Your commissioners are informed that there is its assets are to be highly liquid so that it may be considerable high-grade 120-day commercial paper in always prepared to meet emergency demands, such the Union, and they see no reason why, in meeting earning assets as it may hold in normal times should the need for extending the field of operations of the consist wholly of high-grade liquid paper, the bulk of reserve bank this paper should not be made eligible which should be self-liquidating, commercial paper of for discount and/or rediscount by the reserve bank. short maturities. 48. In order, therefore, that the reserve bank may GOLD BALANCES function so as to perform effectively the duties which the public imposes upon it, and that it may be (5) Article 17 (par. 2) of the reserve bank act proself-supporting, your commissioners believe that it vides that "the bank may, with the consent of the should operate in the open market in future much Treasury, hold gold balances outside the Union in more actively than it has in the past. the custody of its own branches or agencies or deposited For this purpose its present statutory powers are in other banks earmarked for the bank's account to broad and nearly adequate, but your commissioners an amount not exceeding one-fourth of the total believe that, in view of the limited amount of high- reserve requirements." grade, short-time commercial paper now available in This apparently prevents the bank, no matter how the South African market, there should be some ex- much its gold reserves may exceed the 40 per cent tension of the bank's power to make advances. normal minimum required by law to be held against its outstanding notes and its deposits, from holding SUGGESTED CHANGES IN RESERVE BANK LAW more than one-fourth of this amount in the form of earmarked gold abroad. Your commissioners recom- The following suggestions requiring minor changes mend that the last proviso of the above article be in the present law are therefore made: amended by deleting its last phrase, beginning with the (1) That the bank be authorized to lend money to words "to an amount," and substituting in place the public or to the banks for periods not exceeding 120 thereof the following: "Provided that the gold held in days on bills or on one-name promissory notes secured the Union does not fall below 75 per cent of the normal by warehouse receipts against staple commodities fully legal reserve requirements." insured and possessing broad and active markets to an A corresponding alteration should be made in article amount in each case not exceeding 75 per cent of the 23 of the act. The bank should not be restricted by value of such commodities at current market prices. law as to the physical location of assets in the form of The granting of this authority would require some gold coin or bullion which it owns in excess of legal remodifications in South Africa's present laws regarding quirements. Conditions might arise in which there warehouse receipts. would be a distinct advantage to the bank to con- Bills and notes so secured play an important role in vert earning assets located abroad into earmarked the portfolios of the central banks in many other gold abroad, and the bank should be free to do so whencountries, and your commissioners see no reason why ever its interests seemed so to require. they should not be held, under proper restrictions as to 49. The following administrative changes are also their character, by the Reserve Bank of South Africa. suggested for the purpose of enabling the reserve bank (2) That the bank be authorized to lend directly t© function more effectively: to other banks on the promissory notes of the said (1) That in order to afford the bank broader facilities banks with maturities not exceeding 15 days secured for enabling it to earn profits sufficient to pay its exby any collateral properly indorsed that it is legal penses and, more importantly, to enable it to exercise a for the bank to rediscount. stronger control over the money market, it should be Your commissioners believe further that the reserve encouraged to invest in the treasury bills of the Union bank might safely be authorized to accept, as collateral Government, having maturities of not greater than 90 for such short-time loans, Union Government securi- days, and that to this end the Union Government ties or securities of a local governmental authority should again issue such 90-day treasury bills and coopof the Union, and that such collateral securities might erate with the reserve bank and with the other banks safely be made to include such governmental securities in every way possible to create in South Africa a broad as have maturities exceeding six months to an amount and active market for such bills. which, when added to the amounts of such governmental securities with maturities exceeding six months, PROPOSED DEVELOPMENT OF AN ACCEPTANCE MARKET owned by the reserve bank and mentioned in the succeeding paragraph of this report, shall not exceed (2) That the present campaign to further the wider the total amount of the reserve bank's paid-in and use of trade acceptances in lieu of open accounts in the unimpaired capital. Union should be encouraged, and that to this end it is (3) That the reserve bank should be permitted to desirable that merchants should give preferential terms invest in Union Government securities and/or securi- to purchasers who are willing to accept such bills in lieu ties of a local authority in the Union, with maturities of obtained credit on open account. exceeding six months an amount which, when added That commercial banks should give rates that are to the amount of such governmental securities held more preferential than those now prevailing to meras collateral for advances of 15 days or less, mentioned chants who obtain their advances from the banks by in the preceding paragraph of this report, shall not discounting such bills as compared with merchants exceed the total amount of the reserve bank's paid-in who borrow from the banks on current account, and unimpaired capital. viz, overdrafts, or on one-name promissory notes, and Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

180 FEDERAL, RESERVE BULLETIN MARCH, 1925 that the reserve bank give substantially preferential member-bank acceptance liabilities to a level discount and rediscount rates on trade acceptances. higher than in the two preceding years. The (3) That the Government should look forward to the following table compares the volume of memtime when it will use the reserve bank as the chief depository of Government funds, and should gradually ber-bank acceptances reported on correspondincrease the proportion of its funds that are kept on ing dates in 1922 and 1923: deposit in the reserve bank. If a commercial bank needs the use of Government funds, it should obtain MEMBER-BANK ACCEPTANCES OUTSTANDING ON CALL them by loans or rediscounts from the reserve bank, DATES, 1922-1924 not by Government deposits. The reserve bank is in a better position than is the Government to measure [In millions of dollars] such needs and to control such advances. In lieu of the interest which it now receives on its funds Date Amount Date Amount Date Amount deposited in commercial banks, the Government would receive increased returns from its participation in the 1922 1923 1924 profits of the reserve bank. Mar. 10 317 Apr. 3 421 Mar. 31 413 June 30 321 June 30 365 June 30 305 KESERVE BANK BRANCHES. Sept. 14.... 318 Oct. 10 357 Dec. 29 400 Dec. 31 426 Dec. 31 498 (4) The reserve bank should open branches at early dates in the principal cities of the Union, and a branch in London. An analysis of these figures, by Federal 50. A return to the gold standard will render reserve districts, indicates the geographic useless article 32 of the reserve bank act, which has distribution of member-bank acceptances. always been rather ineffective. This article provides that no person shall make a charge for receiving or From 50 to 65 per cent of all member-bank cashing any bank note or gold certificate issued in the acceptances during the last six years were Union, and no person may sell or purchase any bank executed by banks in the New York Federal note or gold certificate issued in the Union, or any reserve district, and this proportion has tended coin current in the Union for an amount exceeding its face value, and any person acting in contravention to increase in more recent years. The volume of this section shall be guilty of an offense and liable of acceptances in most of the other districts on conviction to a fine not exceeding £500, or to has fluctuated considerably during the six imprisonment for a period not exceeding two years or years. In 1921 acceptances declined rapidly to both such fine and imprisonment. It is, therefore, recommended that this article be m all the districts, and in nearly all there has repealed. been some recovery since that time. The following table shows the volume of member- RESTORATION OF FREE GOLD MARKET bank acceptances outstanding in each district 51. With the return of the Union to the gold standard the present gold certificates will no longer be necessary, on December 31, 1918, 1922, 1923, and 1924, and as they tend to replace reserve bank notes in the the proportion that the amount in 1924 was country's circulation your commissioners recommend of the amount in 1918, and the percentage that they cease to be issued and that those now outdistribution of the 1924 amount by Federal standing be promptly retired after July 1. 52. The effective functioning of the gold standard reserve districts: requires that all restrictions on the free movement of gold coin and bullion into and out of the Union, and all VOLUME OF MEMBER BANK ACCEPTANCES OUTSTANDrestrictions on the melting of gold coin be withdrawn, and ING AT THE END OF 1918, 1922, 1923, AND 1924 your commissioners therefore recommend that this be done and that the market for gold in South Africa [Amounts in millions of dollars] be made an absolutely free market. End of— Percentage Volume distri- BANKERS' ACCEPTANCES, 1923-1924 in 1924 bution as by Federal reserve per- Federal Unusually heavy exports of agricultural district centage reserve commodities in the autumn of 1924 were re- 1918 1922 1923 1924 of districts volume of flected in a considerable growth in the volume in 1918 acceptances of outstanding acceptance credit. The total in 1924 amount at the end of the year has been esti- Boston 61.5 57.8 45.6 60.0 97.5 12.1 mated by the American Acceptance Council New York 246.8 238.9 264.5 317.2 128.5 63.7 at $821,000,000, the largest amount since the Philadelphia 20.9 14.3 14.1 19.4 93.3 3.9 Cleveland 21.0 4.8 6.9 8.7 41.6 1.7 closing months of 1919. Condition reports for Richmond 13.9 8.8 9.9 14.1 101.4 2.8 Atlanta 15.2 14.1 18.9 17.2 113.2 3.5 all member banks on December 31, 1924, Chicago 50.6 34.1 33.6 37.1 73.3 7.5 show a total liability for acceptances executed St. Louis 22.0 2.2 4.1 .9 4.1 .2 Minneapolis 5.9 2.8 6.2 3.1 53.4 .6 for customers of $498,000,000, compared with Kansas City _.. 2.0 .8 1.2 $357,000,000 on October 10. This growth, S D a a n l la F s r anc . isco 1 4 6 . . 2 6 1 3 7 . . 7 9 1 3 7 . . 5 8 1 4 5 . . 1 9 9 9 5 7 . . 8 6 3.2 s largely seasonal in character, brought the total Total 480.6 400.2 426.3 497.7 103.6 100.0 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

MARCH, 1925 FEDERAL RESERVE BULLETIN 181 It will be observed that in the eastern dis- ume of acceptances outstanding at a given time. tricts, both north and south, and in the San Actually the maturities of acceptances vary Francisco and Dallas districts the volume of widely, and the average of those outstanding is member-bank acceptances at the end of 1924 probably much longer than 30 days. For mis was about as large as or larger than in 1918, reason it is certain that the ratio of memberthat in the Middle West there was a marked bank acceptances outstanding to the volume of decline in member-bank acceptances, and in the foreign trade overstates the proportion of trade Kansas City district member banks reported no financed through such acceptances. On the liability on acceptances at the end of 1924. other hand, there is a volume of acceptances, Changes in the volume of acceptances in the estimated at different times at from 20 to 40 different districts may be due in part to changes per cent of the total outstanding, that is exein the volume of foreign trade of the various cuted by banks not members of the Federal geographical areas and in part to changes in reserve system. At the close of 1924, when methods of financing this trade. The close member bank acceptances totaled $498,000,000, relation between acceptances executed and the the total volume of acceptances has been estimovement of commodities which enter into mated at $821,000,000. foreign trade may be seen in the Atlanta and Although there is a close relationship between Richmond districts, in which sharp peaks in the volume of acceptance credit and foreign acceptance figures are shown in the December trade, a considerable part of outstanding acreports each year, reflecting the financing of ceptances are based upon domestic transaccotton exports. Similar seasonal increases tions, as is seen in the table below. This is appeared in earlier years in the Dallas and St. evidenced by the fact that of the bills held by Louis figures, but acceptance liabilities of Federal reserve banks on December 31, 1924, member banks in the St. Louis district have 24 per cent were based on domestic transacdeclined over the last six years to less than tions. Of these bills the larger part are based $1,000,000. The proportion of the acceptance on goods held in warehouses, and they are in business done by member banks in the New many cases related to the export business and York district shows a marked increase for the show the same character of seasonal fluctuasix-year period. tions as do acceptances based on imports or Among the factors influencing the total vol- exports. The Acceptance Council estimates ume of bankers' acceptances executed in this that of the acceptances outstanding at the end country the most important is the volume of of 1924 35 per cent were based on imports, 37 foreign trade. The late autumn and early win- per cent on exports, 20 per cent on goods in ter, when export trade is at the maximum, and warehouses, 5 per cent on other domestic transthe spring, when imports are in largest vol- actions, and 3 per cent were for the purpose of ume, are the periods 01 the year when the largest creating dollar exchange. volume of acceptances is reported by member banks. The volume of acceptance business FEDERAL RESERVE BANKS' HOLDINGS OF BANKERS' ACCEPTANCES PURCHASED IN OPEN MARKET apparently is influenced about equally by changes in the volume of exports and of im- [Amounts in thousands of dollars] ports, although the classification of acceptances Proporbought by Federal reserve banks indicates that tion of more than half of them (58 per cent in 1921, 56 Date Foreign Domestic ex D c o h l a l n a g r e Total d t o o m t e o s ta ti l c per cent in 1922, 64 per cent in 1923 x) are based (per cent) on imports. It is not possible to determine what proportion of our foreign trade is financed June 30, 1922. 124,142 31,655 4,535 160,332 19.7 Dec. 30, 1922 195,921 65,280 9,743 270,944 24.1 by the use of member-bank acceptance credit, June 30, 1923 160,117 37,115 7,833 205,065 18.1 Dec. 30, 1923 241,077 90,445 20,452 351,974 25.7 but the volume of foreign trade per month is June 30, 1924 28,784 6,790 925 36,499 18.6 generally about twice as large as the volume of Dec. 31, 1924 284,620 94, 556 6,882 i 386,873 24.4 member-bank acceptances outstanding. Comi Contains $815 all other. parisons of these figures are inconclusive, how- It will be noted that at the close of each ever, because of the absence of statistics of year, when the volume of outstanding acceptmaturity of the acceptances. If the bills were ances has been largest, the proportion of all of 30-day maturity, for example, and so Federal reserve bank holdings of acceptances arranged as to mature in regular succession, the based on domestic transactions has also been monthly volume of trade financed by acceptlarger than in the summer months. During ances would be represented by the actual volrecent months the acceptance holdings of the Federal reserve banks increased considerably, i Average holdings at the end of each month. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

182 FEDEKAL, RESERVE BULLETIN" MARCH, 1925 reflecting the larger volume of outstanding ac- portation of coffee, sugar, silk, hides, and wool. ceptances and the seasonal demand for reserve With this large volume of acceptances in the bank credit. A large part of the total accept- market the seasonal tightening of money rates ances purchased by the reserve banks arose resulted during the last quarter of the year in out of the financing of export and import trade heavy offerings of bills to the reserve banks, with many countries, covering principally the with a consequent growth of acceptance holdexportation of cotton and grains and the im- ings by these banks. LAW DEPARTMENT State laws relating to branch banking. „ town, or city as to which the application has been • made." (Sec. 13 of act 113 of the act of 1913, as The following digest of State laws relating to amended by the act approved Mar. 23, 1923; Acts of branch banking, which was prepared by the Arkansas, 1923, p. 519.) counsel's office of the Federal Reserve Board with the assistance of the counsel to the vari- CALIFORNIA ous Federal reserve banks, shows the status of Branches permitted.—"No bank in this State, or branch banking legislation in the various any officer or director thereof, shall hereafter open or keep an office other than its principal place of busi- States at the close of the year 1924. It conness, without first having obtained the written approval tains a digest of only such laws as relate to of the superintendent of banks to the opening of such branches established within the United States branch office, which written approval may be given and does not cover laws relating to branches or withheld in his discretion, and shall not be given by him until he has ascertained to his satisfaction that established in foreign countries. the public convenience and advantage will be promoted by the opening of such branch office." (Bank ALABAMA Act, 1923, sec. 9.) Branches prohibited.—"From and after the passage Capital requirements.—For each branch office loof this act no bank or any officer, agent, or director cated in the place of principal business of the parent thereof shall be permitted to establish a branch or bank the paid-in capital, in cash, must exceed by office for the transaction of the banking business $25,000 the capital required for a bank in that place. other than at its principal place of business." (Banking For each branch office of a bank other than an exclu- Laws of Alabama, 1922, sec. 28; Session Laws, 1911, sive trust company located in any place in the State p. 77, sec. 28.) other than the place of principal business of the parent Own stock in other banks.—"No bank shall sub- bank, the amount of the paid-in capital, in cash, of scribe for or own exceeding 10 per cent of the capital the parent bank must exceed the amount required by stock of any other bank or invest or have invested an law in the sum required for an independent bank organamount exceeding in the aggregate 25 per cent of its ized in that locality, exclusive of the capital required own paid-in capital stock in the capital stock of any for a trust department. other bank or banks." (Banking Laws of Alabama. For each branch of an exclusive trust company estab- 1922, sec. 29; Session Laws, 1911, p. 77, sec. 29.) lished or maintained in a place other than the place of principal business of the parent bank, the paid-in capital in cash of the parent bank must exceed the sum otherwise required by law in the sum of $25,000. Branches permitted.—The law provides that (Bank Act of California, 1923, sec. 9.) branches may be established if the consent of the There are also provisions regulating the discontinusuperintendent of banks is obtained. He may give ance of a branch, fees for the opening of a branch, penhis consent if the public convenience and advantage alties for the violation of the law covering establishwill be promoted by the opening of such branch and ment of branches, advertising by branch banks, pubif it has the capital required by the act and may with- lishing of reports of condition by such banks, and the hold such consent if he is satisfied that the opening of establishment of branches by banks located in a city such branch office is undesirable or inexpedient. which is annexed by or consolidated with a city of a (Banking Laws of 1922, p. 17, sec. 21; Special Session class requiring a larger capitalization. (Bank Act of Laws of 1922, ch. 31, sec. 21, p. 131.) California, 1923, sees. 9, 28, 132a, 23, 60, and 82.) Capital requirements.—"Before any such branch office is authorized the corporation proposing to estab- COLORADO lish the same shall have a paid-in capital and surplus of not less than fifty thousand dollars, plus fifteen Branches prohibited.—"Every bank shall be conthousand dollars of additional capital and surplus for ducted at a single place of business, and no branch each and every branch so authorized." (Banking Laws thereof shall be maintained elsewhere." (Banking 1922, p. 17, sec. 21; Special Session Laws 1922, ch. 31, Laws, 1923, sec. 48; Compiled Laws, 1921, sec. 2703.) sec. 21, p. 131.) ARKANSAS CONNECTICUT Branches prohibited.—"The return of which said Branches prohibited.—"No State bank or trust comcopy (certificate of incorporation) so endorsed and the pany shall make any loan or discount on a pledge of its filing of the same for record with the county clerk of own stock, and no State bank, trust company, mutual the county in which the said institution is located, shall savings bank, or building and loan association shall authorize it to proceed with its business, but with only establish any branch office or agency thereof, or employ one office for the transaction thereof in only the one any agent or person to make loans or discounts at any Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

MARCH,, 1925 FEDERAL RESERVE BULLETIN 183 other place than its banking house." (Banking Laws, municipalities, and districts in which they are located, 1923, p. 16, sec. 3920; General Statutes of 1918, sec. and the parent bank shall be relieved of taxation to the 3920 as amended by ch. 10, Bank Act 1923, p. 3481.) extent of the capital set aside for the exclusive use of such branches." (Banking Laws, 1920, sec. 3; Bank DELAWAKE Act 1919, art. 1, sec. 3.) Branches authorized.—"No bank or trust company IDAHO shall open any branch office or place of business in this State unless authorized so to do by the certificate of Branches prohibited.—"No banking corporation or the State bank commissioner." (Banking Laws, 1921, trust company shall maintain any branch bank, receive p. 15, sec. 4; Laws of Delaware, 1921, p. 288, ch. 103, deposits or pay checks, except over the counter of and sec. 4.) in its own banking house. And, Provided, That noth- Capital requirements.—"No such certificate shall be ing in this section shall prohibit ordinary clearing-house issued by the said commissioner, unless satisfied that transactions between banks. the applicant has a paid-in capital stock to an amount "Corporations created under the terms of this chapequivalent to at least twenty-five thousand dollars for ter shall not be authorized to engage in the business each office or place of business then established by said at more than one place, which shall be designated in * corporation in this State and for the branch sought to their charters." (Banking Laws 1919, sec. 5244; Idaho be established, and a surplus to an amount equivalent Comp. Stat. 1919, sec. 5244.) to at least twenty-five thousand dollars for each office or place of business then established by said corpora- ILLINOIS tion." (Banking Laws, 1921, p. 15, sec. 4; Laws of Delaware, 1921, p. 288, ch. 103, sec. 4.) Branches prohibited.—By act approved June 23, 1923, the Illinois Legislature prohibited branch bank- Must be authorized by charter.—"Nothing in this ing, subject to the approval by the people at general section contained shall be deemed to confer on any election in 1924; and at the general election the act corporation the power to establish branches not exwas approved. (Smith-Hurd Illinois Revised Statpressly authorized by its charter." (Banking Laws, utes, p. 108.) 1921, p. 15, sec. 4; Laws of Delaware, 1921, p. 288, ch. 103, sec. 4.) INDIANA Branches prohibited.—"That it shall be unlawful for any person, firm, or corporation engaged in the business Branches prohibited.—"That the place of business of operating a State bank, private bank, savings bank, of each banking company shall be in the city or town or loan, trust, or safe deposit company to open or specified in its charter, and the usual business of any establish a branch bank or branch office: Provided, such banking company shall be transacted at an office That the provisions of this section shall not apply to or banking house located in the city or town so specified branch banks or branch offices for which charters have and not elsewhere." (Banking Laws, 1921, sec. 4139; heretofore been granted." (Banking Laws, 1921, p. Fla. Rev. Gen. Stats. 1920, sec. 4139.) 124; Session Laws, 1921, ch. 141, p. 367.) GEOKGIA Branches authorized.—"Banks whose capital has No provision.—There is no specific provision covering been fully paid in and is unimpaired may establish branches in the laws of Iowa. branches in the cities in which they are located or elsewhere, after having first obtained the written approval KANSAS of the superintendent of banks, which approval may be given or withheld by the superintendent in his dis- No provision.—There is no specific provision in the cretion, and shall not be given until he shall have ascer- laws of Kansas concerning branch banks. tained to his satisfaction that the public convenience and advantage will be promoted by the opening of such KENTUCKY branch." (Banking Laws, 1920, sec. 3; Bank Act No provision.—There is no specific provision in the 1919, art. 1, sec. 3.) laws of Kentucky regarding the establishment of Operation.—The law provides for the appointment branches. The Court of Appeals of Kentucky has of officers for the management and operation of each held, however, that in the absence of such a provision branch. (Banking Laws, 1920, sec. 3; Bank Act 1919, it is not within the power of a State bank to establish art. 1, sec. 3.) a branch bank, though it may have agents to receive Capital.—-"At the time of the establishment of any and forward money to the bank or transact other branch the board of directors of the parent bank shall necessary business. (Bruner v. Citizens Bank of Shelset aside for the exclusive use of said branch such probyville, 120 S. W. 345.) portion of its capital or surplus as may be required by the superintendent of banks; in no event less than is LOUISIANA required for the organization of a bank in the city, town, or village in which the branch shall be located: Branches authorized.—"Every increase or decrease, Provided, That the parent bank shall not by such modification, alteration, or addition to the capital or assignment of a portion of its capital reduce the capital of the number of the shares, shall be submitted to a to an amount less than is required for the organization general meeting of the stockholders, held after thirty of a bank in the city, town, or village in which said days' notice by publication and by mail, and shall be parent bank is located, nor shall the parent bank by approved by two-thirds of the amount of the capital such assignment of a portion of its surplus reduce the stock; and shall be executed, recorded, and published as surplus account to an amount less than twenty (20) provided for the original articles, which shall provide for per cent of its capital." (Banking Laws, 1920, sec. 3; the location in the parish of domicile of any bank- Bank Act 1919, art. 1, sec. 3.) ing association of not more than two branch offices. Taxation.—"Branch banks shall be taxed on the Provided, that no banking association or savings bank capital set aside to their exclusive use in the counties, with capital stock of less than $50,000 may locate or 33405—25 6 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

184 FEDERAL, RESERVE BULLETIN MARCH, 1925 operate branch offices; but this provision shall not any such corporation to maintain not more than one apply to existing branch offices." (Banking Laws, branch office, which shall be in the town where its main 1923, p. 5, sec. 7; Wolf's Const, and Stats, of La., 1920, office is located. p. 116, sec. 7.) "No such corporation shall maintain a branch office Certificate of bank examiner.—No branch may be except as provided in this and the two following sections, opened until a certificate of authority has been ob- but the restrictions of this section shall not extend to tained from the State bank examiner. (Banking branch offices authorized prior to April twenty-ninth, Laws, 1923, p. 6, sec. 8; Wolf's Const, and Stats, of nineteen hundred and two. (Trust Company Laws, La., 1920, p. 116, sec. 8.) 1923, p. 26, sec. 45; Gen. Laws, 1921, ch. 172, sec. 45.) Trust companies, sayings banks, and safe deposit "Any office of a trust company the business, of which companies.—"Any savings, safe deposit, or trust and has been taken over under section forty-four by, or any savings bank may have one or more offices of discount office of a national bank purchased by or merged in, and. deposit within the limits of the municipality or a trust company located in the same town, may be parish in which the said bank is located; and provided maintained as a branch office of such corporation, if further, that whenever any such banks shall have in the opinion of the commissioner public convenience taken advantage of the provisions of this act and will be served thereby/' (Trust Company Laws, section, and shall have established one or more offices 1923, p. 26, sec. 46; Gen. Laws, 1921, ch. 172, sec. 46.) of discount and deposit within the limits of said municipality or parish, no future political or legal MICHIGAN subdivision of said municipality or parish shall have the effect of. in anywise affecting the right of such *'Industrial" bank may establish branches.—"To banks aforesaid to continue the existence, maintenance, establish branch offices or places of business within the and operation of any such offices already established." crty or village in which its principal office is located, (Banking Laws, 1923, p. 28, sec. 7; Wolf's Const, and but not elsewhere." (Banking Laws, 1923, p. 48, Stats, of La., 1920, p. 112, sec. 7.) sec. 4; Compiled Michigan Laws, Supplement, 1922, sec. 8032 (6).) MAINE There is no specific provision in the laws of Michigan in regard to the establishment of branches by other "Trust and banking company" branches authorbanks. ized.—"No trust company now or hereafter organized shall establish a branch or agency until it shall have MINNESOTA received a warrant so to do from the bank commis- Branches prohibited.—"No bank or trust company sioner, who shall issue such warrant only when satisfied that public convenience and advantage will be organized under the laws of this State shall maintain promoted by the establishment of such branch or a branch bank or receive deposits or pay checks within agency, * * * no trust company shall be per- this State except at its own banking house, and the mitted to establish a branch or agency except in its superintendent of banks shall take possession of and own or an adjoining county." (Maine Laws, 1923, liquidate the business and affairs of any State bank or ch. 144, sec. 88; Banking Laws, 1923, sec. 88.) trust company violating the provisions of this act in the manner prescribed by law for the liquidation of Capital requirements.—Banks are required to have insolvent State banks and trust companies." (Banking a capital varying with the size of the place in which it Laws, 1923, p. 31; Session Laws, 1923, ch. 170, p. 194.) is located. Banks with branches must have the capital required of a bank located in a place with a population equal to the aggregate population of the place in which MISSISSIPPI the parent bank is located and the population of the Branch offices in same city.—"The creation or places in which its branches are located. (Banking organization of any branch bank in this State shall be Laws, 1923, sees. 69 and 88; Maine Laws, 1923, ch. 144, and the same is prohibited and forbidden, and no branch sees. 69 and 88.) bank shall be hereafter established in this State, and MARYLAND no parent bank chartered under the laws of this State shall establish any branch bank either within or without Branch banks and trust companies authorized.—The the State: Provided, however, That when the superlaws of Maryland provide for the capital of branches intendent of banks shall believe the convenience and established by banks and trust companies and, thereinterest of the public will be served he may permit fore, impliedly authorize the establishment of such banks in cities of not less than ten thousand population branches. The capital required for a bank or trust to establish branch offices within the corporate limits company depends upon the size of the place in which of the city where the bank is domiciled, and such offices such bank or trust company is located, and a bank or shall not be considered branch banks within the meantrust company hereafter establishing a branch outside ing of section 261, code of Mississippi of 1906. But an of the city, town, or village in which it is located must established bank or branch bank may with the consent add to its capital stock for each branch so established of the superintendent of banks be removed from one a sum equal to the amount of capital which would be municipality to any other municipality." (Banking required of a bank (as distinguished from a trust Laws passed in 1924, p. 14, House Bill 574; Laws of company) located in the place in which such branch is Miss. 1924, p. 226.) established. No bank or trust company shall establish Capital requirements.—"Every parent bank operata branch in the city, town, or village in which the parent ing one or more branch banks shall set apart and bank or trust company is located unless such parent devote from its capital a sum of not less than ten bank or trust company has the capital required by the thousand dollars for the exclusive use of each of said act. (Bagby's Annotated Code, 1911, art. 11, sees. 20 branch banks in its business, and the amount of the and 42 as amended by the'acts of 1924, ch. 266.) capital of the parent bank employed by each branch bank shall never at any time be less than the said MASSACHUSETTS amount of ten thousand dollars." (Banking Laws, Branches of trust companies authorized.—" The 1920, sec.*3522; IHemingway's Annotated1'Miss. Code, board of bank incorporation may authorize in writing 1917, sec. 3522.) Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

MARCH, 1925 FEDERAL RESERVE 185 MISSOURI NEW YORK Branch banks prohibited.—" Provided, however, Branch banks authorized.—"No bank, or any officer that no bank shall maintain in this State a branch or director thereof, shall transact its usual business of bank or receive deposits or pay checks except in its banking at any place other than its principal place of own banking house." (Banking Laws, 1919, sec.business except that a bank in a city which has a popu- 11737; Revised Stat. of Mo. 1919, sec. 11737, p. 3674.) lation of more than fifty thousand may open and Branch trust companies prohibited.—" Provided, occupy in such city one or more branch offices for the however, that no trust company shall maintain in receipt and payment of deposits and for making loans this State a branch trust company or receive deposits and discounts to customers of such respective branch or pay checks except in its own banking house." offices only, provided that before any such branch or (Banking Laws, 1919, sec. 11799; Revised Stat. of branches shall be opened or occupied: Mo. 1919 sec. 11799, p. 3702.) "1. The superintendent shall have given his written approval, as provided in section fifty-one of this MONTANA chapter; "2. The actual paid-in capital of such bank shall No provision concerning branches.—There is no exceed by the sum of one hundred thousand dollars specific provision concerning the establishment of the amount required by section one hundred of this branch banks in the laws of Montana. article for each branch opened since the twenty-seventh day of April, nineteen hundred and eight; and by the sum of fifty thousand dollars for each branch opened NEBRASKA previous to said date and hereafter maintained." No provision concerning branches.—There is no (Morgan & Parkers N. Y. Banking Laws, 1923, sec. specific provision in the laws of Nebraska in regard 110.) to the establishment of branch banks. Branch trust companies.—"No trust company or any officer or director thereof, shall transact its usual business at any place other than its principal place of business, except that a trust company may open and Branches prohibited.—"No bank in this State shall occupy in the city in which its principal place of hereafter open or maintain any branch bank or office." business is located one or more branch offices, provided (Banking Laws,. 1915, sec. 8; Rev. Laws Nev. 1912,that before any such branch or branches shall be sec. 623.) opened or occupied: "Bank" defined.—"The words 'corporation,' 'bank- "1. The superintendent shall have given his written ing corporation,' 'bank/ 'trust company/ or 'banker/ approval, as provided in section fifty-one of this as used in this act, shall refer to and include banks, chapter; savings banks, and trust companies, individuals, "2. The actual paid-in capital of such trust comfirms, associations, and corporations of any character pany shall exceed by the sum of one hundred thousand conducting the business of receiving money on deposit dollars the amount required by section one hundred or otherwise carrying on a banking or trust company and eighty of this article for each branch opened." business, except as herein specially provided." (Bank- (Morgan & Parkers Banking Law, 1923, sec. 195.) ing Laws, 1915, sec. 75; Rev. Laws Nev. 1912, sec. Provision is also made in the law requiring the 690.) approval of the superintendent of banks before a NEW HAMPSHIRE branch may be opened. (Morgan & Parkers Banking Law, 1923, sec. 51.) No provision concerning branches.—There is no specific provision in the laws of New Hampshire in regard NORTH CAROLINA to the establishment of branch banks. Branches authorized.—"Any bank doing business under this act may establish branches in the cities in NEW JERSEY which they are located, or elsewhere, after having first No provision concerning branches.—There is now no obtained the written approval of the Corporation specific provision in the laws of New Jersey with regard Commission, which approval may be given or withheld to the establishment of branch banks or trust compa- by the Corporation Commission, in its discretion, and nies. It appears that a law enacted in 1913 authorized shall not be given until it shall have ascertained to trust companies to establish branches, but that law its satisfaction that the public convenience and adwas repealed in 1915. Trust companies, however, were vantage will be promoted by the opening of such not prohibited by the latter statute from establishing branch." (Banking Laws, 1921, sec. 43.) branches, and it appears that ;there is now no law either Capital requirements.—"Provided, that the Corpoauthorizing or prohibiting the establishment of branches ration Commission shall not authorize the establishby trust companies. (Laws of 1913, ch. 140; Laws of ment of any branch, the paid-in capital stock of whose 1915, ch. 274.) parent bank is not sufficient in an amount to provide for the capital of at least fifteen thousand dollars for NEW MEXICO the parent bank, and at least twenty thousand dollars Branches prohibited.—"Every bank shall be con-for each branch which it is proposed to establish in ducted at a single place of business, and no branch cities or towns of three thousand population or less; thereof shall be maintained elsewhere; provided, how- nor less than thirty thousand dollars in cities and towns ever, that nothing herein contained shall be construed whose population exceeds three thousand, but does not to prohibit any mercantile corporation which maintains exceed ten thousand; nor less than fifty thousand a banking department in accordance with the provi- dollars in cities and towns whose population exceeds sions of this act, from receiving deposits and buying ten thousand, but does not exceed twenty-five thouand selling exchange at any of its branch stores." sand; nor less than one hundred thousand dollars in (Banking Laws 1923, sec. 47; Session Laws 1915, ch.cities and towns whose population exceeds twenty-five 67, sec. 47.) thousand. All banks operating branches prior to the Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

i86 FEDERAL RESERVE BTJLLETTH MARCH, 192& passage of this act shall, within a time limit to be principal place of business is located, one or more subprescribed by the Corporation Commission, cause said offices or subagencies, for the purpose only, however, of branch bank to conform to the provisions of this receiving and paying out moneys; and provided, that section." (Banking Laws, 1921, sec. 43.) a full report of the operations of each day is made at The law also contains requirements for the proper the close thereof to the principal place of business, and management of the branches. (Banking Laws, 1921, that the assets of the bank in its suboffices or subsec. 43.) agencies are transferred to the main office of the bank NORTH DAKOTA on or before the close of each business day. This act does not authorize the establishment or maintenance No provision concerning branches.—There is no of branch offices or agencies for the transaction of the specific provision in the laws of North Dakota in general business of any corporation formed under the regard to the establishment of branches. act to which this is a supplement." (Act July 28, 1917; Laws 1917, p. 1235.) OHIO Branches authorized.—"No branch bank shall be RHODE ISLAND established until the consent and the approval of the Branches authorized.—"Any bank or trust company superintendent of banks has been first obtained, and no may establish a branch or branches within this State at bank shall establish a branch bank in any place other any other place than its principal place of business than that designated in its articles of incorporation, upon obtaining the consent of the board of bank incorexcept in a city or village contiguous thereto. If such poration thereto." consent and approval is refused, an appeal may be Detailed provision is also made for obtaining the taken therefrom in the same manner as is provided in consent of the Board of Bank Incorporation to estabsection 45 of this act." (Banking Laws, 1923, sec. lish branches. (Banking Laws, 1922, ch. 229, sec. 9; 710-73.) Gen. Laws of R. I. 1909, ch. 229, sec. 9.) Fees for each branch.—" * * * provided, that all banks which operate a branch bank or branch SOUTH CAROLINA banks in addition to the charges above to be paid, shall pay at the time prescribed above the sum of Branches authorized by implication.—"All banks or fifty dollars for each branch bank operated by it institutions engaged in the banking business in this * * *." (Banking Laws, 1923, sec. 710-17.) State that maintain or operate a branch bank or an office for business other than its regular or home office, OKLAHOMA shall pause to be published statements of the assets and liabilities of such branch bank or office in the county No provision concerning branches.—There is no wherein such branch bank or office is located, the same specific provision in the laws of Oklahoma in regard to as other banks or banking institutions." (Banking the establishment of branch banks. Laws, 1923, sec. 78; Code of 1922, sec. 3989). Provision is also made for examination of branch banks. (Code of 1922, sees. 3984 and 3988.) Branches prohibited.—"No bank in this State, or any officer or director thereof, shall open or maintain SOUTH DAKOTA any branch bank or receive deposits or pay checks No provision covering branches.—There is no specific other than at its principal place of business: Provided,provision in the laws of South Dakota in regard to the That this provision shall not apply to branch banks establishment of branch banks. now existent in compliance with the provisions of section 4591 of Lord's Oregon Laws; provided further, TENNESSEE that every such branch bank shall hereafter in every respect be governed by and comply with the provisions Branches authorized by implication.—"Any prinof this act to the same extent as other State banks now cipal bank must pay out the notes made payable at its organized and doing business in this State." (Banking branches, but such bank notes shall by law, be also pay- Laws, 1921, sec. 36; sec. 6211, Oreg. Laws as amended able at the counter of the principal bank." (Shannon's by ch. 294, p. 546, Gen. Laws 1921.) Code, 1917, sec. 3224.) Branches authorized if national banks are permitted to establish branches.—"Provided, further, that whenever national banks, operating under acts Branches prohibited.—"No such corporation [bank] of Congress, are given the privilege or authority to shall maintain any branch bank, receive deposits, or pay open and maintain branch banks in this State, the checks, except over the counter of and in its own banksuperintendent of banks may authorize banks organized ing house, except where such corporation is a county and existing under the laws of this State to open and or State depository, in any county other than that of maintain branch banks on similar terms as are granted its home, or is a county depository and is not located at to national banks, and the State banking board is the county seat; and provided, that nothing in this hereby given power and authority to prescribe rules article shall prohibit ordinary clearing house transacand regulations from time to time for the opening and tions between banks. Corporations created under the maintaining of said branch banks." (Banking Laws, terms of this title shall not be authorized to engage in 1921, sec. 36; sec. 6211, Oreg. Laws as amended by business at more than one place which shall be desigch. 294, p. 546, Gen. Laws, 1921.) nated in their charters." (Banking Laws, 1923, sec. 94; Rev. Civil Stats, p. 104, art. 379.) Branches are prohibited by the Texas Constitution. PENNSYLVANIA (Const. Act XVI, sec. 16.) Suboffices permitted but branches prohibited.— "Section 1. Be it enacted, etc., That any bank of discount and deposit already incorporated, or hereafter Branches prohibited.—"The business of every bankformed * * * is hereby authorized to establish and ing institution shall be conducted only at its banking maintain in the city, borough, or township in which its house, and no bank in this State or any loan, trust, or Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

MARCH, 1925 FEDERAL RESERVE BULLETIN 187 guaranty company or trust company conducting a cashier of the bank is sufficient." It is understood, banking business, or any officer, director, or agent there- however, that the Commissioner of Banks and Bankof, shall open, establish, or maintain any branch bank ing does not permit the operation of branches. (Barnes or office, and shall receive deposits and pay checks 1923 Code, ch. 54, sees. 2, 23, 76, 78a (5) and ch. 50, only at its banking house: Provided, That all branchsec. 37.) banks or offices in operation at the time of the approval WISCONSIN of this chapter shall be closed and discontinued within one year from the date this chapter goes into effect. Branches prohibited.—"No bank shall establish "Any bank or officer thereof violating any of themore than one office of deposit and discount or estabprovisions of this section is guilty of a misdemeanor." lish branch offices or branch banks, provided that this (Banking Laws, 1923, sec. 1005; Comp. Laws Utah, prohibition shall not apply to any branch office or bank 1917, sec. 1005. established prior to May 14, 1909." (Banking Laws, VERMONT 1922, p. 36, sec. 61 (f); Wis. Stat. 1921, ch. 555, sec. 2024-9.) No provision covering branches.—There is no specific Branch trust companies prohibited.—" Nor shall such provision in the laws of Vermont in regard to the estab- corporation establish more than one office of deposit lishment of branch banks. nor establish nor maintain branches." (Banking Laws, 1921, p. 83, sec. 164; Wis. Stat. 1921, sec. 2024-77 N.) VIRGINIA WYOMING Branches authorized.—"No bank or trust company heretofore or hereafter incorporated under the laws of Branches permitted by implication.—"It shall be this State shall be authorized to engage in business in lawful for any number of persons, not less than five in more than in one place, except that, in its discretion, any case, to associate themselves together and form the State corporation commission may authorize companies for the purpose of carrying on a general banks having a paid-up and unimpaired capital of banking, savings bank, and loan and trust business in twenty-five thousand dollars or over to establish such place or places in this State as shall be designated branches. This section, however, shall not apply to in their articles of association, subject, however, to the branch banks already established. But any branch contingencies, restrictions, conditions, and liabilities bank heretofore or hereafter established shall not beprescribed in this chapter. The persons uniting to operated or advertised under any other name than that form such association, shall execute and acknowledge, of the identical name of the home bank. Any bank oraccording to law, a certificate of articles of association, trust company violating the provisions of this section which shall specifically state: shall be liable to a fine of one thousand dollars, to be "Fourth. The place or places where its offices shall imposed and judgment entered therefor by the State be located, and its operations are to be carried on." corporation commission, and enforced by its process." (Banking Laws, 1921, sec. 5135; Comp. Stat. 1920, (Banking Laws, 1922, sec. 4101; Code of 1919, sec. sec. 5135.) 4101.) Taxation of branches.—Provision is made for local taxation of branches in the places in which they are State Banks and Trust Companies established. (Banking Laws, 1922, sec. 4102; Code of 1919, sec. 4102.) The following list shows the State banks and trust WASHINGTON companies which were admitted to membership in the Federal Reserve System during the month ended Branches prohibited.—" Nor shall any bank or trust February 21, 1925, on which date 1,554 State institucompany establish any branch. The practice of tions were members of the system: collecting or receiving deposits or cashing checks at any place or places other than the place where the ADMISSIONS usual business of a bank or trust company and its operations of discount and deposits are carried on shall be held and construed to be establishing a branch." Capital Surpius ] (Banking Laws, 1921, sec. 28; Session Laws, 1919, ch. 209, sec. 7.) Definition of branch.—"The term 'branch bank,' District No. 1 where used in this act, means any office of deposit or Carroll County Trust Co., Conway, discount maintained by any bank or trust company, N.H $75,000 $15,000 $1,209,363 domestic or otherwise, other than its principal place of business, regardless of whether it be in the same city District No. 5 or locality." (Banking Laws, 1921, sec. 27; Session The Home Bank, St. Matthews, Laws, 1917, ch. 80, sec. 14.) S. C. (readmitted under new charter) 70,000 20,000 ! 564, 992 WEST VIRGINIA District No. 9 Branches apparently authorized.—The corporation Trout Creek State Bank, Trout laws of West Virginia provide for the incorporation of Creek, Mich 25, 000 184,578 banks of issue and circulation and of discount and deposit District No. 11 and for savings institutions and also provide that any corporation may have offices at any other place than Texas State Bank & Trust Co., at the place of its principal office; cooperative banking San Antonio, Tex.__ 300,000 I 30,000 !, 684, 343 associations and trust companies are also made subject District No. 12 to the above laws. The law also provides that "If a suit against a bank of circulation be brought in a county Multnomah Commercial & Savings Bank, Multnomah, Oreg 25,000 i 5,000 120,844 where it has a branch, service on the president or Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

188 FEDERAL. RESERVE BULLETIN MARCH, 1925 CHANGES (1) Trustee; (2) executor; (3) administrator; (4) registrar of stocks and bonds; (5) guardian of estates; (6) assignee; (7) receiver; (8) committee of estates of luna- Capital Surplus Total tics; (9) in any other fiduciary capacity in which State banks, trust companies, or other corporations which come into competition with national banks are per- District No. 1 mitted to act under the laws of the State in which the First National Bank, Fall River, national bank is located. Mass (absorbed by B. M. C. Durfee Trust Co., Fall River, Mass., a member) $400,000 $150,000 $4,192,630 Dis- Powers District No.« t N ri o c . t Name of bank granted Metropolitan Trust Co., New York, N. Y. (converted into a national Houlton, Me.. First National Bank 1 to 5 & 9. bank) 2,000,000 3,000,000 60,602, 214 South Side National Bank 1 to 9. Citizens Bank of Cape Vincent, N. Newark, N. J_. & Trust Co. Y. (voluntary withdrawal) 50,000 10,000 468,141 Paterson, N. J ! Labor Co-Operative Na- 1 to 9. tional Bank. District No. 6 New York, N. Y... Metropolitan National Bank 1 to 9. & Trust Co. Atlantic Exchange Bank & Trust Perry, N. Y First National Bank.__ 1 to 9. Co., Baltimore, Md. (consolidated Smyrna, Del National Bank of Smyrna... 1 to 9. with Baltimore Trust Co., a mem- Gettysburg, Pa Gettysburg National Bank.. 1 to 9. ber) - 2,000,000 2,000,000 34,273,440 Mechanicsburg, Pa. Second National Bank 1 to 9. Farmers Bank & Trust Co., St. Phoenixville, Pa Farmers and Mechanics Na- 1 to 9. Matthews, S. C, a nonmember tional Bank. (consolidated with and under title Columbus, Ohio First National Bank 1 to 7 & 9. of The Home Bank, a member Dayton, Ohio i Third National Bank....... 1 to 7 & 9. newly chartered) 70,000 30,000 450, 000 Greenville, Pa_ Greenville National Bank__ 1 to 9. Harrisonburg, Va... National Bank of Harrison- 1 to 9. District No. 6 burg. Portsmouth, Va First National Bank 1 to 9. Bank of Cartersville, Cartersyille, Knoxville, Tenn Holston National Bank 1 to 3, 5 to 9. Ga. (converted into a national Greenville, Ala First National Bank 1 to 3 & 5. bank) 100,000 60,000 566, 733 Great Falls, Mont.. do 1 to 9. Anthony, Kans Citizens National Bank !1 to 8. District No. 7 Hutchinson, Kans.. American National Bank I1 to 9. Winfield, Kans Winfield National Bank !1 to 9. Farmers State Bank, Auburn, 111., a Fort Worth, Tex.... Fort Worth National Bank.i5 to 8. nonmember (absorbed by the Auburn State Bank, Auburn, 111., a member) 25,000 11,070 287, 420 Citizens State Bank, Wapello, Iowa, a nonmember (absorbed by the New National Bank Charters Wapello State Savings Bank, Wapello, Iowa, a member) 25,000 6,500 321, 500 The Comptroller of the Currency reports the follow- District No. 11 ing increases and reductions in the number and capital Security State Bank, Cooper, Tex. of national banks during the period from January 24, (closed) _ 100,000 420,644 to February 20, 1925, inclusive: District No. 12 Bank of Jordan Valley, Jordan Valley, Oreg. (closed).. 50,000 25,000 435,227 Amount banks of capital Change of title—The Montclair Essex Trust Co., Montclair, N. J., ha T s h c e h a G ng u e a d r d i i t a s n tit S le a v t i o n g th s e & M T on ru tc s l t a i C r o T ., r u C s l t ev C e o la . nd, Ohio, has changed New charters issued.. 11 $2, 775,000 its title to The Guardian Trust Co. Restored to solvency _. 0 0 Change of location.—Commercial & Savings Bank Co., Buckeye City, Increase of capital approved 20 12,975,000 Ohio, name of city changed to Danville. Change of title and location.—The Stockmens State Bank, Corona, Aggregate of new charters, banks restored to N. Mex., has changed its title to the First State Bank and its location solvency, and banks increasing capital 31 15,750,000 to Estancia, N. Mex. Liquidations 27 2,117,500 Reducing capital 2 40,000 Fiduciary Powers Granted to National Banks Total liquidations and reductions of capital- . 29 2,157,500 Consolidations of national banks under act of Nov. During the month ended February 21, 1925, the 7,1918.... 0 0 Federal Keserve Board approved applications of the Aggregate increased capital for period.-. 15,750,000 national banks listed below for permission to exercise Reduction of capital owing to liquidations, etc 2,157,500 one or more of the fiduciary powers named in section Net increase.- _ _ 13,592,500 11 (k) of the Federal reserve act as amended, as follows: Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

MARCH, 1925 FEDERAL RESERVE BULLETIN 189 BUSINESS STATISTICS FOR THE UNITED STATES INDUSTRIAL ACTIVITY Industrial activity during January continued taking of raw silk by mills exceeded all previous the recovery which began last summer and records. Building-material industries, on the in many lines attained levels equaling or ex- whole, were seasonably less active, but the ceeding those of a year ago. The index of amount of lumber cut was larger than in any production in basic' industries, which is ad- January since 1918. Of the important industries justed for seasonal variations, advanced from automobile manufacturing has shown the great- 117 to 127. This figure equals the maxi- est decrease in production since last spring. mum of all time recorded for May, 1923,The output of passenger cars in January was and compares with 120 last January and about 40 per cent below the total for March, 94 for the summer months. The manu- 1924, the month of maximum production. facturing index, which is unadjusted, increased Production of rubber tires and tubes and of from 116 to 123, slightly above the level of gasoline continues to show substantial year-to- January, 1924. Employment has not risen year increases. to the same extent as production, and, al- Among the minerals, copper and zinc prothough the number employed increased slightly duction was the greatest since the war years, in January, wage earnings were seasonably and lead output was the largest recorded in less, and both were smaller than a year before. the four years for which figures are available. Mineral production was particularly heavy Furthermore, bituminous coal output was in January, and the mining index at 140 has close to the largest amount ever mined in been exceeded only twice in the pre-war any month. Anthracite coal and petroleum period. The index of agricultural marketings kept the general index below its previous declined in January as is usual, but main- high point, as the output of these products tained its increase over the corresponding was not up to the levels reached in the fall of month in previous years. 1923. In agricultural movements receipts of Iron and steel has been relatively the most cotton were the largest recorded for any active of all industries, and the production January since 1920, when the crop w^as of pig iron and steel ingots in January was marketed late. Tobacco sales were also rather close to previous maximums. Textiles also large. Grain receipts were greater than during showed some increases. Active machinery last January, but have been larger in that month and employment in the woolen industry of other previous years. Vegetable shipments declined, but cotton consumption and spindle were heavy, but those of fruits were somewhat activity were the greatest since 1923, and the lighter than usual. INDEXES OF INDUSTRIAL ACTIVITY PERCENT ( MONTHLY AVERAGE, 1919=100 ) PER CENT 1751 ]175 150 150 125 100 75 50 50 • —— MANUFACTURING PRODUCTION MINERAL PRODUCTION 25 25 1919 1920 1921 1922 1923 1925 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

190 FEDERAL RESERVE BULLETIN MARCH, 1925 INDEX OP EMPLOYMENT IN MANUFACTURING INDUSTRIES 1 [Not adjusted for seasonal variations. MoDthly average, 1919—100] Year and month , ! i G e n r d e a e n l x - M p e r t o a d ls u c a a t n s n d a > T n r e d o x e u x t p iles F a a b n r d i c p s rod P u u r c c o t t d s s - L p u a b r u n c e o m d t r d s - - M v c e o l h e to s i- r p a b n a C u i i d n r i a l i g r d r n e - g - P p a i r a n n i p n g d e t r - F p u a o r c n o o t d d d s - s L p e u a r a c n o t t d h d s e - r S c g t a l o l a n a n y d s e , s , | b p u T a r c o c o t c d - s o - C p u a c h r n o a c e l t d d m s s - i- I steel 1924 January .• 98 97; 96 98 118 103 90 106 104 105 i 78 February i 99 98 97 100 123 105 89 106 102 87 106 87 78 March I 99 97 94 100 124 107 89 | 106 101 87 110 85 78 April 97 92i 89 94 123 101 89 | 105 98 82 i 115 I 83 77 May ! 93 87! 86 89 119 90 87 i 104 i 97 79 I 117 i 82 74 June I 90 85| 85 86 117 81 85 I 103 | 73 ! 115 I 83 70 July ! 87 79i 78 79 113 76 85 I 101 74 ' 111 I 82 ! 67 August ! 87 81! 81 82 114 78 85 I 101 I 78 110 | 82 | 68 September ; 90 85! 85 86 115 80 103 | 101 I 81 108 I 86 j 71 October j 91 89| 90 87 114 81 104 102 | 82 109 i 81 I 71 November 91 88i 91 85 114 80 105 102 i 81 109 I 87 | 72 December ...; 93 92 94 88 112 82 105 103 I 3 80 108 i 87 3 73 1925 i January I 93 93 95 89 111 84 105 100 i 103 1 This table contains for certain months the index numbers of employment, together with group indexes for its important industrial components The general index is a weighted average of relatives for 33 individual industries. The method of construction was described in detail and indexes for the above groups since January, 1919, were published on pages 1272-1279 of the BULLETIN for December, 1923. 2 Preliminary. 3 Revised. INDEX OF PRODUCTION IN BASIC INDUSTRIES i [Index and relatives for each industry adjusted for seasonal variations. Monthly average 1919=* 100] Food products Year and month Animals slaughtered Lumber Wheat Sugar flour meltings Cattle i Calves Sheep | Hogs 1924 January 89 97 95 i 133 119 February 100 127 94 i 137 116 130 March 107 115 90 : 112 90 132 124 April _ 105 115 116 102 136 127 May 105 109 111 109 124 117 June 107 111 108 102 116 104 July 3 122 125 117 99 141 106 August 100 104 118 91 136 105 September-. 3 110 141 128 91 132 108 October 3 97 141 143 93 121 120 November-- 3 84 111 129 82 122 116 December. . 82 91 155 87 130 128 1925 January 94 122 100 140 90 ; 145 Tobacco products le S a o th le er N p e r w in s t - Cement P le e u tr m o- rs r C e i t g te a s - M to t a u b n r a u e c f d c a o c- January. 107 239 183 98 176 113 February 108 192 189 94 140 93 March 103 187 186 90 143 91 April. 111 | 169 189 88 157 91 May 116 i 172 192 95 173: 96 June 103 ! 173 187 91 163 94 July 102 j 193 185 98 155 97 August 101 190 190 95 157 93 September 1*7 ! 186 191 100 162 98 October.. . 110 ! 183 185 97 158 99 November 104 ! 187 183 96 145 89 December 103 | 182 182 92 170i 94 1925 January. 68 106 188 i 105 * This table contains for certain months the index numbers of production in basic industries which are shown in the chart at the bottom of page 151, together with the series of relatives used in constructing the index. In making the final index the relatives are adjusted to allow for seasonal fluctuations and are weighted The methods of construction were described in detail and all relatives for each series since January, 1913, were published on pages 1414-1421 of the BULLETIN for December, 1922. 2 All bituminous coal figures for 1924 revised. 3 Revised, Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

MARCH, 1925 FEDERAL RESERVE BULLETIN 191 INDEXES OF INDUSTRIAL ACTIVITY » [No seasonal adjustment. Monthly average 1919—100] Agricultural movements Mineral production Year and month Ani- An- Bitu- Total2 s L to iv ck e - 2 p m ro a d l - Grains C to o n t- t V ab eg le e s - Fruits b T ac o c - o Total2 t c h i r t a e - n m o i u - s P le e u tr m o- i P ro ig n C p o e p r - Zinc Lead Silver ucts coal coal2 1924 January 105 123 98 91 83 120 90 238 138 108 135 179 118 132 126 114 111 February 96 101 101 120 41 123 102 133 130 104 122 176 121 130 112 124 115 March 81 98 90 87 33 138 92 75 128 110 106 189 136 129 122 134 121 April. 77 97 129 54 34 113 93 17 110 93 78 189 127 131 114 125 97 May 87 98 148 62 34 119 178 20 114 106 83 196 103 130 121 137 123 June... 87 95 165 67 19 146 140 6 111 105 81 191 79 127 111 143 111 July 100 96 166 118 21 137 148 2 113 106 86 194 70 129 109 138 95 August 121 90 127 218 38 107 144 63 116 97 92 196 74 132 106 139 104 September 152 109 107 195 175 165 163 127 124 106 109 189 81 126 104 146 116 October 189 123 100 230 278 226 248 165 134 105 125 190 97 137 108 148 119 November 160 120 105 156 271 136 157 148 122 92 108 179 99 136 109 145 119 December 143 132 121 120 3 231 86 86 184 130 101 119 180 116 135 121 146 123 1925 January 118 122 93 112 129 130 74 281 140 101 134 188 132 143 128 150 114 Manufacturing production Total s I a t r n e o e d n l m A o u b t i o le - s T ti e le x s - p F u r o c o o t d s d - L b u e m r - p P ri a a n n p t d i e n r g L s e a h a n o t d e h s er P le e u tr m o- C b e a r m n ic d e k ntTob co ac- R t b i u r e e b r s - 1924 January - _ 122 126 196 lie 109 128 122 98 172 118 118 152 February 123 131 228 106 105 132 117 96 166 123 103 154 March 127 145 237 10C 105 141 120 94 180 140 109 162 April 122 122 231 98 98 149 126 89 181 154 106 152 May. . 112 96 193 83 100 162 120 83 171 167 122 144 June 97 75 151 77 97 139 113 76 176 156 123 126 July. 97 67 163 81 103 136 102 75 176 154 127 125 August 104 87 172 83 102 142 107 84 182 166 123 158 Septein ber 112 96 178 98 112 143 109 90 180 157 126 175 October 123 108 178 na 114 160 126 101 186 169 132 191 November 112 108 141 105 108 132 116 84 185 148 114 155 December 3 116 124 126 3 111 117 122 3 117 90 196 3 138 106 163 1925 January 123 145 141 121 104 143 120 128 118 > For description and early figures see BULLETIN for March, 1924. 2 Practically all figures for 1924 revised. 3 Revised. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

192 FEDERAL RESERVE BULLETIN MARCH, 1925 COMMODITY MOVEMENTS With this month's issue the publication in the Bulletin of detailed statistics regarding January, Decem- January 1925 ber, 1924 1924 movements and stocks of commodities is discontinued. Certain figures compiled by Grain and Flour—Continued the board's division of research and statistics Revenue freight loaded and received from connections (cars loaded, 000 will still be published in order that users of omitted): Classified by nature of productsthese data may continue to have comparable Grain and grain products 221 212 202 series of data. Information as to current Livestock _ _ 159 169 161 Coal 891 812 880 figures for any of the discontinued series will Coke 59 54 54 be furnished upon request. Forest products 312 282 301 Merchandise, 1. c. 1 1,016 1,044 975 Miscellaneous _____ 1,289 1,316 1,233 January, Decem- January, 1925 ber, 1924 1924 Total 3,992 3,931 3,843 Classified by geographical divisions- Grain and Flour Eastern 909 912 932 Allegheny 792 789 783 Receipts at 17 interior centers (000 Pocahontas 213 194 175 omitted): Southern _ 620 628 597 Wheat (bushels) 24,166 32,542 16.861 Northwestern 518 470 479 Corn (bushels) 36,359 29,694 31,075 Central western 641 625 615 Oats (bushels) 25,589 21,132 18,176 Southwestern.. 297 312 264 Rye (bushels) 2,134 3,802 1,807 Barley (bushels) 4,940 5,405 2,916 Total . 3,992 3,931 3,843 Total grain (bushels) •_ 93,188 92,575 70,834 Flour (barrels) 2,423 2,358 1,902 BUILDING STATISTICS Total grain and flour (bushels) _ _. 104,089 103,188 79,395 Shipments at 14 interior centers (000 January, Decem- January, omitted): 1925 ber, 1924 1924 Wheat (bushels)... _ 19,256 28,846 12,244 Corn (bushels) 11, 929 8,289 17,579 Oats (bushels) 15, 089 12,135 14,829 Rye (bushels) _ 2,822 7,449 582 Building permits issued in 168 cities, Barley (bushels). _. 2,840 3,632 2,066 grouped by Federal reserve districts: Number of permits- Fl T ou o r t a ( l b g a r r a re in ls ) (bushels) 5 3 1 , , 3 9 7 3 4 7 6 3 0 , , 6 3 8 5 2 0 4 3 7 , , 1 3 8 0 2 0 N B Ph o e i w s l t a o d Y n e o l ( r p 1 k h 4 i ( c a 2 i t 2 ( i 1 e c s 4 i ) t c ie it s i ) es) 5 1 1 , , , 2 1 3 1 9 3 2 4 3 1 1 , , 6 87 2 7 9 8 1 1 , , , 7 3 4 5 1 6 4 3 0 Total grain and flour (bushels) 67,120 76,921 61,619 R C i le c v h e m la o n n d d ( ( 1 1 2 5 c c i i t t i i e e s s ) ) 2 2 , , 6 0 1 7 1 5 2 3 , , 9 0 6 2 8 3 2 2 , , 5 4 2 2 4 8 St m oc o B W R O C k n s a y o a h t r e r t h a e s l n e t a ( ( y ( b t ( 0 b 1 b u 0 1 u ( ( u s 0 b b s h s i u h u n o h e s e s t m e l h e l h s l s e r ) s i e ) i t ) l l o t s s e ) r ) d . c ) e : nters _ at c _ lose o _ f . 4 2 6 7 4 2 2 9 , , , , , 6 5 9 9 2 5 2 2 2 7 7 8 8 8 0 I I i 5 6 1 5 4 1 3 , , , , 3 7 0 4 6 3 7 2 1 8 2 4 5 1 1 9 6 4 6 1 , , , , , 7 8 8 7 6 8 2 3 8 5 5 8 8 2 2 A S M K D C Sa t h t a a . i n l i l n n a c L l n s a n F a o a s e g t r s u a a a o ( i p n 9 C s ( o ( c 1 1 i c ( i l 5 t s 5 9 i i y s t c c i c c o e i ( ( i i s t 1 t 9 t i ) i i ( 4 e e e 2 c s s s 0 c i ) ) ) t i . i c t e i i s e ti ) s e ) s) 1 2 6 2 1 1 0 , , , , , , 1 6 4 9 5 8 7 7 6 2 0 9 4 0 7 0 6 7 3 5 2 2 8 7 1 1 1 , , , , , , 6 9 5 7 6 7 7 9 5 3 0 5 2 9 6 0 5 3 3 9 3 1 2 2 1 1 1 , , , , , 7 4 5 3 2 6 4 2 8 4 3 2 5 1 7 3 5 0 Total grain (bushels) 147,310 143,886 99,885 Total 38,735 41,519 42,096 "Value of permits (dollars, 000 Receipts at 9 seaboard centers (000 omitted)— omitted): Boston (14 cities) _ 7,737 9,991 7,895 Wheat (bushels) 12,841 27,785 12,794 New York (22 cities) ._._ 78,341 84,679 88, 553 Corn (bushels) 987 904 3,213 Philadelphia (14 cities) 8,719 12,666 11,959 Oats (bushels) 1,241 1,912 2,327 Cleveland (12 cities) 12,919 20,080 12,181 Rye (bushels) 1,955 6,116 326 Richmond (15 cities) 10,828 13,740 12,209 Barley (bushels) 2,062 4,591 1,573 Atlanta (15 cities) _ 7,233 10,187 7,138 Chicago (19 cities) .._. 36,546 39,168 27,124 Total grain (bushels) 19,085 41,308 20,232 St. Louis (5 cities) 5,703 8,607 6,528 Flour (barrels) _ 2,117 2,028 1,931 Minneapolis (9 cities) 2,417 3,404 2,143 Kansas City (14 cities) 4,648 7,490 5,209 Total grain and flour (bushels) 28,612 50,436 28,920 Dallas (9 cities) 6,257 5,794 8,054 San Francisco (20 cities) 31,464 30,909 33, 230 Stocks at 8 seaboard centers at close of month (000 omitted): Total _ 212,812 6, 715 222,223 Wheat (bushels) __ 9,493 14,202 6,039 Building contracts awarded, by Federal Corn (bushels) 1,369 719 1,484 reserve districts (dollars, 000 omitted): Oats (bushels) _ 1,530 2,215 1,025 Boston 22,941 25,920 20,789 Rye (bushels) 3,851 9,242 751 New York _ _ 109,625 101,127 107,039 Barley (bushels) 1,531 3,197 2,164 Philadelphia _. 18,316 17,899 18,497 Cleveland 32,033 44,123 22,495 Total grain (bushels) 17,774 11,463 Richmond 21,784 23,299 27,354 Atlanta _ 24,885 27,471 26, 575 Wheat flour production (barrels, 000 Chicago 36,836 51,198 49,288 omitted) 11,705 St. Louis _ 14,648 22,794 18,869 Minneapolis _ 5,895 5,713 5,062 Tobacco sales at loose-leaf warehouses Kansas City 1 7,469 6,983 4,653 (pounds, 000 omitted): Dallas 15,119 12,963 Dark belt Virginia 7,623 7,088 6,476 Bright belt Virginia 9,165 12,075 10,397 Total (11 districts) 309,551 339,489 2 300,621 North Carolina _ 16, 591 29,327 28,377 Burley 39,950 j 14,324 27,213 Western dark _ 20,222 I 8,862 12,563 1 District No. 10, excluding Colorado. 2 Total, 10 districts. No figures available for Dallas district. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

MARCH, 1925 FEDERAL RESERVE BULLETIN 193 WHOLESALE AND RETAIL TRADE WHOLESALE TRADE IN THE UNITED STATES, BY LINES CHANGE IN CONDITION OP WHOLESALE TRADE, BY LINES AND DISTRICTS—Continued [Average monthly sales 1919—100] Percentage change in January, 1925, i G n e d r e a e n l x - c G er r i o e - s Meat g D oo ry ds Shoes H w a a r r d e - Drugs w sa i l t e h s — compared Decem- January, 1923 ber, 1924 1924 October 112 117 129 November... 90 102 111 December... 66 90 Shoes—Continued Atlanta district 2 0 -8.4 1924 Chicago district -26.1 -24.2 January 80 97 91 116 St. Louis district 24.3 3.7 February— 77 98 90 110 Minneapolis district -26.5 7.9 March 80 90 104 118 San Francisco district . 13.3 -15.5 April 79 81 108 114 Hardware: May 81 72 104 110 United States -10.4 -2.3 June 83 70 96 105 New York district- -14.7 -1.8 July 83 79 93 110 Philadelphia district.. -20.0 -5.2 August 83 102 93 108 Cleveland district 0.2 —1.0 September... 93 116 106 117 Richmond district. _ 8.9 -8.3 October 100 104 111 128 Atlanta district 3.9 5.5 November... 88 98 109 Chicago district -12.9 -2.9 December... 77 99 109 St. Louis district 19.3 1.9 Minneapolis district -19.8 0.5 1925 Kansas City district -18.4 13.5 January . 78 82 44 114 Dallas district -7.8 4.1 San Francisco district -0.7 -5.7 Drugs: United States... . 3.9 -1.9 CHANGE IN CONDITION OF WHOLESALE TRADE, BY LINES New York district _ _. 7.6 —1.1 AND DISTRICTS Philadelphia district -2.1 7.7 Cleveland district 3.7 0.9 Richmond district 9.3 —2.5 Pe i r n c e J n a t n ag u e a ry c , h 1 a 9 n 2 g 5 e , A S C t h t . l i a c L n a o g t u a o i s d d i d i s s i t t s r r t i i r c c i t c t t . - — 1 0 4 . 1 6 . . 3 3 - 1 0 1 2 .1 . . 2 1 Kansas City district ._ 5.6 4.2 with— S D a a n ll a F s r a d n i c st is ri c c o t dist . rict.. H_ 1 8 3 . . 2 0 1 5 0 . . 8 8 Furniture: Decem- January, Richmond district 29.2 24.2 ber, 1924 1924 Atlanta district... -19.4 9.2 St. Louis district 44 6 25.2 Kansas City district-_ . _. -15.1 7.1 Groceries: San Francisco district —6.3 -8.0 United States -2.9 1.3 Agricultural implements: Boston district -5.0 8.5 United States 14.3 28.5 New York district -6.5 -4.4 Atlanta district _ .._ —19.4 17.7 Philadelphia district... -11.3 -0.1 Minneapolis district -6.8 83.7 Cleveland district -7.0 -3.7 Dallas district 56.8 6.2 Richmond district -2.8 4.6 San Francisco district. . . _. 21.7 7.1 Atlanta district 0.6 8.1 Stationery: Chicago district 2.0 1.4 New York district 3.0 -7.4 St. Louis district 5.4 -3.8 Philadelphia district 3.4 7.9 Minneapolis district — 1.3 -2.6 Atlanta district —0.5 0.3 Kansas City district- -0.6 0.5 San Francisco district -9.7 -3.2 Dallas district 7.0 7.7 Automobile supplies: San Francisco district- 8.8 -2.2 San Francisco district -4.2 -9.0 Dry goods: Clothing: United States 6.9 -15.6 New York district 60.3 -0.4 New York district 8.6 -1.1 St. Louis district -33.4 54.5 Philadelphia district... -15.8 -22.7 Machine tools: Cleveland district -21.6 -22.2 New York district-- -15.8 -16.3 Richmond district 36.2 -24.7 Diamonds: Atlanta district 8.1 -12.8 New York district- -6.5 0.2 Chicago district 11.9 -20.5 Jewelry: St. Louis district 44.8 -13.8 New York district -54.7 —0.6 Minneapolis district -2.3 12.3 Philadelphia district -71.3 -2.3 Kansas City district—_ 19.1 -6.3 Electrical supplies: Dallas district 44.9 -27.2 Philadelphia district -29.5 -8.7 San Francisco district.. 10.9 -13.3 Atlanta district -31.3 15.0 Shoes: St. Louis district . 5.5 -3.6 United States -22.7 -10.6 San Francisco district -_.-.,.- -3.3 4.0 Boston district -21.4 0.9 Millinery: New York district -19.9 -14.9 Kansas City district 17.2 -49.1 Philadelphia district... -30.0 -13.4 Stoves: Cleveland district -35.3 9.1 St. Louis district . . -4.1 -16.5 Richmond district -9.3 -19.1 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

194 FEDERAL, RESERVE BULLETIN MARCH, 1925 RETAIL TRADE BY REPORTING LINES [Average monthly sales 1919=100] Sales without seasonal adjustment Sales with seasonal adjustment 3 ll II 23 Pi ll •3-a tn S3 03 CO o Xi m 1923 October., i 148 134 200 180 152 138 139 136 186 130 104 193 166 149 132 123 November 142 122 201 176 141 134 131 149 180 126 200 168 150 135 121 December 202 118 201 331 185 193 171 214 270 126 192 179 152 143 130 1924 January 109 203 126 141 119 99 84 154 125 100 202 173 146 137 130 February 102 198 140 143 124 93 97 167 127 101 198 179 150 140 132 March 115 105 197 163 149 136 118 184 115 91 182 170 147 140 118 April 133 114 208 178 145 130 178 205 130 111 205 190 149 136 153 May. 127 90 211 174 150 143 150 82 186 123 100 211 183 153 141 130 June 120 89 197 162 143 131 140 75 169 120 104 200 176 146 134 132 July 91 69 204 163 148 128 113 72 177 122 93 211 179 147 129 123 August 93 74 198 172 152 138 108 91 180 119 98 208 181 151 141 138 September 119 106 207 169 145 137 124 110 189 131 112 218 183 147 137 129 October 141 141 238 203 159 144 138 124 199 124 109 230 188 156 137 122 November 141 131 229 199 145 138 146 111 186 126 105 227 191 154 139 134 December 211 148 250 366 187 192 186 184 282 132 123 239 198 153 142 142 1925 January 108 245 155 122 107 92 162 124 244 161 141 141 sniahc )snia •2*3 Bs 113 181 119 189 113 185 102 184 112 190 110 182 103 205 99 193 94 181 97 181 102 179 110 192 102 194 89 195 98 188 112 193 DEPARTMENT STORE SALES, BY FEDERAL RESERVE DISTRICTS [Average monthly sales 1919=100] Sales without seasonal adjustment Sales with seasonal adjustment Number District o p f o r r t e - - 1925 1924 1923 1925 1924 1923 insr firms Jan. Dec. Nov. Oct. Sept. Jan. Dec. Jan. Dec. Nov. Oct. Sept. Jan. Dec. United States 359 109 211 141 141 119 109 202 124 132 126 124 131 125 126 Boston 24 113 215 140 137 115 120 210 126 135 128 124 127 133 132 New York 63 120 226 153 161 127 120 215 132 138 132 135 145 132 130 Philadelphia 22 105 213 153 144 109 110 203 119 133 118 126 134 125 130 Cleveland 54 107 207 139 134 117 109 204 123 131 128 122 132 125 129 Richmond- _ -__.._ _ _ 23 93 214 137 137 106 94 195 113 124 117 120 124 114 113 Atlanta- 35 83 173 113 120 94 85 168 102 106 98 100 106 104 103 Chicago 63 113 219 154 136 133 112 209 133 140 139 123 139 132 134 Minneapolis _._ _ . 23 92 162 111 116 102 88 156 107 110 103 103 102 103 106 Dallas 21 92 171 115 126 114 85 158 106 105 100 107 114 99 97 San Francisco . 31 128 238 144 157 130 132 236 145 151 142 144 139 149 150 DEPARTMENT STORE STOCKS, BY FEDERAL RESERVE DISTRICTS [Average monthly stocks 1919=100] Stocks without seasonal adjustment Stocks with seasonal adjustment Number of re- District port- 1925 1924 1923 1925 1923 ing firms Jan. Dec. Nov. Oct. Sept. Jan Dec. Jan. Dec. Nov. I Oct. Sept. Jan, Dec. United States. 314 119 124 148 147 137 115 123 134 133 131 132 128 131 132 Boston 24 112 120 141 135 125 111 123 124 123 122 120 118 123 126 New York 63 118 125 147 146 133 113 123 132 132 129 131 124 127 129 Philadelphia .- 13 147 151 172 171 160 132 145 164 157 155 153 148 148 150 Cleveland 52 114 120 145 146 136 110 120 136 129 128 130 126 131 129 Richmond 19 109 118 145 143 128 104 112 129 130 127 ; 124 116 124 125 A M D C Sa h t a i n l i n l a c l n a n a F e s g ta r a o a p n o c l i i s s c _ o . 2 2 2 5 1 2 2 9 1 9 1 1 1 9 9 3 0 2 6 6 9 6 3 1 1 1 9 9 4 0 2 6 9 1 5 4 1 1 1 1 1 2 2 6 3 4 3 3 7 1 8 1 1 1 1 1 2 2 6 3 4 1 6 9 3 7 1 1 1 1 1 5 1 2 1 4 9 5 9 8 0 1 1 1 1 9 0 2 0 2 7 9 8 7 5 1 1 1 1 1 0 4 0 0 2 6 0 9 4 3 1 1 1 1 1 5 1 0 1 3 6 7 8 1 4 1 1 1 1 1 0 0 5 2 3 8 7 2 2 5 1 1 1 1 1 3 4 1 1 1 8 5 8 2 0 I ! I ! 1 1 1 1 1 1 5 1 1 2 0 8 1 1 1 1 1 3 1 0 1 4 3 0 8 4 9 1 1 1 1 1 3 2 4 2 1 7 1 4 4 0 1 1 1 1 1 2 3 1 5 1 7 5 9 0 4 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

MARCH, 1925 FEDERAL RESERVE BULLETIN 195 FOREIGN BANKING AND BUSINESS CONDITIONS CONTINENTAL CENTRAL BANKS IN 1924 shortage of currency and that with the introduction of more stable monetary conditions it To the financial statistics previously pub- was necessary rapidly to make up the shortage. lished in the BULLETIN is added with this issue This expansion of circulation has not been a condensed statement of the principal items attended by any weakness of the exchange, of 20 European central banks. Of these, but it has been accompanied by a considerable three—Germany, Poland, and Hungary—were rise in prices, at least in Poland and Austria, organized in the course of 1924 and conse- which has had the effect of bringing the gold quently comparisons of the current statement price indexes of those countries much nearer with that of a year ago can not be made. the world level of prices. This phenomenon is Furthermore, comparisons of the statement of discussed at some length below, under " Interone bank of issue with another are subject to national Price Comparisons.'7 the limitations arising from differences in the A similar situation appears to exist in a numform of statements. ber of other countries which recently have Despite these difficulties of exact compari- practically stabilized the foreign value of their son, two rather general observations can be currencies and whose circulation shows a modmade covering banking developments in Euro- erate expansion. pean countries during 1924—one applying to countries in which expansion of note circulation was never extensive, and the other covering countries in which note issues had reached INTERNATIONAL PRICE COMPARISONS enormous volume. In the three European countries whose exchange returned to gold The movement of wholesale prices throughparity during the year, namely, Sweden, out the world in 1924 was in general similar to Switzerland, and the Netherlands, there has that of the United States. The price indexes been a material reduction in the circulation of practically every country for which figures between January, 1924, and the same month are available were higher last December than of the current year. In each case this has been a year before, the principal exceptions being accompanied by a decline in gold holdings and Australia, India, and Switzerland. In some an increase in foreign bills and balances abroad. countries, such as Norway and Spain, the rise In the case of both Sweden and the Nether- was almost continuous during the year, while lands the holdings of gold and foreign bills com- in a larger number the course was more nearly bined increased, while for Switzerland there has parallel to that of American prices. In the been little change. latter countries there was a moderate decline Among the countries which had previously in the first half of the year, followed by an experienced an enormous inflation of currency, advance which more than made up the previous but which have stabilized their exchanges, recession. there has recently been a considerable expan- When these indexes are adjusted to a sion of circulation. This is true of Austria, common basis by allowing for the depreciation which has possessed a stable currency since of the different currencies in terms of the September, 1922; and it is likewise true of dollar, it appears that in most European Russia, Poland, and Germany. This fact does countries the rise in the index on a gold basis not show in the statement of the Reichsbank, exceeded both the advance in the index owing to the presence in circulation of other calculated in the domestic currency and forms of currency than the notes of the Reichs- the rise in American prices. Usually this has bank. The total monetary circulation in been due in part to a rise in the exchange Germany at the end of 1924 was 4,273,900,000 value of the currency without a corresponding reichsmarks, against only 2,273,600,000 the decline in domestic prices. In other instances, year before. In Russia the circulation of such as Austria, which has had a stable rate chervontsi doubled during 1924. Such in- throughout the year, and in Poland, where the creases, extraordinary though they seem, are gold zloty was introduced in May and where not of themselves indicative of currency the rise in prices amounted to nearly 25 per inflation. They indicate rather that with the cent, the advance in the gold index apparently cessation of inflation there was an actual represents a general lifting of internal prices Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

196 FEDERAL RESERVE BULLETIN MARCH, 1925 toward a closer adjustment with prices in other taken, for what is tabulated below as the countries. Frankfurter Zeitung index for December re- As a result of these movements, the gold- cords prices as of the first day of January. price indexes of most countries were closer to But this does not explain the divergence bethat of the United States in December, 1924, tween the two indexes amounting to over 10 than they had been a year earlier. This per cent. tendency is indicated in the price movements of Notwithstanding these differences in price a number of countries shown in the table levels, as measured by index numbers, these below. In considering the data in this table indexes, when reduced to a common basis, it should be kept in mind that these indexes show a world-wide tendency to move in the are calculated by different methods and include same direction, and, with increasing stability a varying list of commodities. For this reason of exchanges, a growing tendency to fluctuate the figures, though they reflect price levels in in a manner similar to the movement of- prices different countries with a fair degree of accur- in the United States. acy, should not be used as a basis of comparing The following table is presented to show the price levels. For example, in December, 1923, price indexes of a number of European countries the price index of the Canadian Department of compared with those of the United States in Labor stood at 164, that of the Dominion December, 1923 and 1924, both in domestic Bureau of Statistics at 154, and that of the currency and on the gold basis. Federal Reserve Board for Canada at 144. In the same month the Bureau of Labor Statis- PRICE INDEXES OF EUROPEAN COUNTRIES COMPARED tics index for the United States was 151 and WITH THE UNITED STATES that of the Federal Reserve Board 163. The question of whether Canada or the United Domestic currency Gold basis States had the higher "price level" in that m ind o e n x th es , t s h e e le r c e t f e o d re , f o d r e t p h e e n d c s o m en p t a i r r i e s l o y n . up O on n t t h h e e Country b D e e r, c e 19 m 2 - 3 b D e e r, c e 1 m 92 - 4 C c h ( e p a n e n t r g ) e c b 1 D e 9 e m e 2 r - , - 3 c b 1 D e 9 e m e 2 r - , 4 - C c h ( e p a n n e t r g ) e other hand, all three Canadian indexes show similar trends during the year and about the United States: same degree of change. These trends are Bureau of Labor distinctly parallel to those of the United States, Statistics 151 157 +4 151 157 Federal Reserve and, adjusted for the exchange, the various Board 163 165 +1 163 165 +1 Canadian indexes show about the same per- Aust B ri r a adstreet'si-_.P- 1,818,1 1 0 4 0 4 2,075,4 1 0 5 0 1 + + 1 5 4 1 1 4 2 4 5 1 1 5 4 1 3 + + 1 5 4 centage rise as do the two American indexes. Belgium 545 566 +4 129 146 +13 Denmark * 210 234 +11 140 154 +10 In making comparisons for other countries than England: Board of Trade 163 170 +4 146 164 +12 Canada and the United States, even greater Economist 170 180 +6 152 174 +14 allowance for differences in index numbers must Statist 156 174 +11.5 140 168 +20 Federal Reserve be made. For England there are several Board 177 177 159 +7.5 France: well-known indexes, usually in agreement as to Statistique G6n§rtrend, but showing wide differences in level Fe a d le eral Reserve 459 507 +10 125 142 +14 since 1913. For France both the index of the Board 427 451 +6 116 126 +9 Germany: Federal Reserve Board and that of the Statis- Federal Statistical tique G6nerale agree in showing a rise in prices Fr B an u k re fu au rter Zei- 126 131 +4 126 131 +4 during the year; but reduced to a gold basis tung i 140 145 +3.5 140 145 +3.5 Hungary2 791,500 2,309,500 + 186 122 154 +26 the former stands about as far from the latter Italy: as the latter does from the Bureau of Labor M Ba i c la h n i Chamber of 577 640 +11 130 143 +10 Statistics index for the United States. In Commerce 535 +11 120 132 +10 Netherlands 154 160 +4 146 160 +10 the case of Germany, the Frankfurter Zeitung Norway 244 278 +14 136 156 +15 index and that of the Federal statistical bureau S P p o a la in nd 1 9 7 5 6 1 1 9 1 8 8 + +2 1 4 2.5 1 9 1 5 6 1 14 1 3 8 + + 2 1 4 5 both indicate a slight advance; the small Sweden ___ 150 163 +9 147 164 +12 Switzerland l 183 170 165 170 difference might be accounted for in part by the varying dates on which the actual prices are 1 First of January figure. 2 Figures for November, 1924. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

MARCH, 1925 FEDERAL RESERVE BULLETIN 197 FINANCIAL STATISTICS FOR PRINCIPAL FOREIGN COUNTRIES (Bank figures are for end of month, except for London clearing banks, which are daily averages) ENGLAND FRANCE [Millions of pounds sterling] [Millions of francs] 1925 1924 1925 1924 Janu- Decem-Novem- Janu- Jan- Decem-Novem- Jan- ary ber ber ary uary ber ber uary Bank of France: Bank of England: Gold reserve I 3,681 3,681 3,680 3,677 Issue department— Silver reserve 305 306 304 297 Ban N k G i o o n l t g d e s d c i o e s i p s n u a e r a t d n m d e n b t u — llion 1 1 2 4 7 6 1 1 2 4 7 6 1 1 2 4 7 6 1 1 2 4 6 6 W No m a t r e e n c a t i d r v cu an la c t e io s n to the Govern- 2 40 1 , , 2 5 0 1 0 6 4 2 0 2 , , 6 6 0 0 4 0 4 2 0 2 , , 4 6 4 0 7 0 2 38 2 , , 8 8 3 0 4 0 G B G O P O u a o o t t h h b n l v d e e k l e i r r c r a n n s d n d o e m e d e c t p e e u p s o s n r o i s . l i t s _ v i t t i i _ s e s e t e s r s c c u o r i i n ties 1 2 5 7 2 0 2 2 0 4 3 7 1 1 6 1 0 6 2 9 9 8 4 6 1 4 8 2 1 1 2 1 2 3 2 9 1 4 7 0 1 1 2 8 0 5 9 6 C C C Pr o o l b i e m m c a a e T n r m m i o k o n e e t s f g a r r 3 c s c l , i i p a d a e l l e d r p b b a c o a a i e s l n n y n i k k t t s p l d a o e v e a r p e n p r o s e a s t g i u t e s a l o r f e nt P e aris 2 4 , 8 0 . 1 4 2 5 1 5 1 0 , , 9 0 .0 7 4 0 3 3 1 1 5 5 1 5 , , , 0 9 3 3 9 . 9 0 4 7 5 0 4 2 6 6 1 1 4 2 5 1 4 , , 4 , , 3 4 7 8 . 4 0 0 1 1 6 4 0 7 6 Ratio of gold and note re- j serve to deposit liabilities.. 18.4 11.5 19.3 17.5 * Not including gold held abroad. Bank notes in circulation 98 101 101 104 Currency notes and certificates- 281 296 285 280 CANADA Nine London clearing banks: Money at call and short notice.._ 112 113 102 100 [Millions of dollars] Discounts and advances.. 1,063 1,046 1,045 1,053 Investments.. , 296 303 307 346 Total deposits 1,653 1,656 1,628 1,674 1924 1923 Total clearings 3,771 3,448 3,317 3,467 Government floating debt: Decem- Novem- Octo- Decem- Total 786 846 788 827 ber ber ber ber Treasury bills. 631 626 624 651 Temporary advances 155 220 164 176 Index of security prices (December, Chartered banks: 1921=100) 117.5 117.5 117.4 112.2 Gold coin and bullion » 52 54 55 54 Index number of foreign exchange Current loans and discounts. 1,123 1,139 1,170 1,183 value of the pounds sterling 126.5 128.7 128.1 125.4 Money at call and short notice... 315 309 269 291 Public and railway securities 536 497 554 427 Note circulation 166 177 173 180 Individual deposits 2,166 2,108 1,708 2,040 Gold reserve against Dominion notes. 139 138 123 114 ITALY Dominion note circulation 262 244 240 249 Bank clearings 2 1,709 1,647 1,772 1,574 Bank debits 2,825 2,849 2,963 [Millions of lire] i Not including gold held abroad. 2 Total for month. 1924 1923 JAPAN [Millions of yen] De b c e e r m- No b v e e r m- October De b c e e r m- 1925 1924 Banks of issue: Janu- Decem-Novem- Janu- Gold reserve 1,132 1,132 1,132 1,118 ber ber Total reserve _. . . 1,826 1,831 1,829 1,848 Lead N N T L C i o o n a o o s t a g t t a h e e n l p s c c r d i i a i r r e v n c c p a d u u o t l l e s a a d i t t i t b i i s s o o a c n n n o u k f f o o n s r r : t s t c h o e m S m ta e t r e c e L - 1 8 3 7 0 , , , , 1 3 2 8 9 2 4 7 4 4 2 3 1 2 7 7 0 , , , , 6 5 2 6 9 8 8 4 4 7 4 4 8 6 3 1 7 2 7 0 , , , , 8 6 7 2 9 1 7 0 9 7 0 4 3 7 7 8 9 2 7 1 , , , , , 1 4 5 7 1 4 9 8 5 1 4 1 2 4 6 Bank A N R L G o e d o o o s a v t v f e e n a e r J s n r c v a n c i e a p r e m n c a s f d o u e n o r l : n d a n t n t i i s o d f o c o t e n o e r p e s u o i n g i s t n i s t s bills 1 1 , , 0 3 3 2 1 5 9 2 2 3 9 0 5 4 5 1 1, , 6 0 5 1 1 9 5 7 8 9 4 9 3 8 3 1 1, , 3 0 3 2 1 6 6 9 8 1 4 1 0 6 8 1 1, , 5 0 5 3 1 2 5 8 7 8 0 7 9 2 1 Loans and discounts 8,637 8,370 7,953 Private deposits 31 52 37 45 D Pa u r e t i f c r i o p m at i c o o n r s r es . pondents 4,092 4,0 3 8 9 8 9 3,4 2 6 9 3 2 Toky C o a s b h a o n n k s h : and 123 108 121 118 S In t d at e e T x o n o t o a f t l e s e d i c e s u s p u r o i e s ty it s prices 2 2 5 , 3 4 . 0 8 0 5 1 2 2 2 4 , , 9 4 6 . 0 4 1 0 9 6 2 1 2 4 2 , 0 , 4 4 . 0 2 9 0 4 0 1 1 2 1 7 , , 9 4 2 . 2 7 6 8 7 4 T T T o o o t t t a a a l l l l c d o l e e a p a n o r s i s n it g s s 2 2 1 , , ,8 3 6 5 9 3 9 8 2 2 3 1 . , , 5 8 3 6 5 7 1 4 5 2 2 1 , , , 6 8 8 2 0 4 0 8 5 I 1 2 1 , , , 9 8 3 7 7 2 2 5 8 1 Not including gold held abroad. i Gold abroad, gold coin and bullion in Japan. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

198 FEDERAL RESERVE BULLETIN MARCH, 1925 GERMANY LATVIA [Millions of reichsmarks] [Thousands of lats] 1925 1924 1925 1924 Janu- Decem-Novem- Octo- Janu- Decem- January ber ber ber ary ber ber ary Gold 834 760 695 694 Gold 23, 587 23,600 23, 604 16, 770 Reserves in foreign exchange. - 278 253 232 231 Foreign Exchange Reserve 40, 876 42,984 48, 286 49,927 Bills of exchange and checks _ _ . _ 1,771 2,064 2,290 2,340 Bills 46, 860 44, 798 43, 289 20, 985 Miscellaneous assets 1,507 1,654 1,655 952 Loans 50, 831 48, 660 44, 789 21, 974 Note circulation . _ 1,901 1,941 1,863 1,781 Note circulation 27, 897 30, 727 26,000 23,000 Deposits 747 821 704 709 Government deposits 80, 335 77, 289 78, 529 39, 991 Other deposits 45, 428 44, 256 50, 211 43, 785 PORTUGAL [Millions of escudos] LITHUANIA 1924 1923 [Thousands of litas] Decem-Novem- Octo- Decem- Gold 30, 947 30, 779 30, 713 16, 827 ber ber ber ber Foreign exchange reserve 62, 667 62, 258 61, 241 53, 583 Loans and discounts 38, 062 36, 681 38, 097 19,010 Note circulation 94. 708 92, 982 89, 344 63,140 Gold 9 9 9 9 Deposits 29, 816 31, 349 40,126 24, 358 Balances abroad . 348 319 305 37 Bills 164 173 152 Note circulation 1,762 1, 746 1,747 1,396 Deposits 76 72 61 41 NETHERLANDS [Millions of florins] RUMANIA [Millions of lei] Gold 505 505 480 582 Domestic bills __ 115 120 143 236 Gold 563 563 555 Foreign bills 125 112 48 25 Bills 7,338 7,143 5,825 Loans 157 172 168 149 Government loan. - 10, 787 10, 793 11,561 Note circulation 893 935 933 1,008 Note circulation 19 487 19, 227 17, 941 Deposits 63 59 20 30 Deposits 6,818 7,132 6,802 BELGIUM NORWAY [Millions of francs] [Millions of kroner] 1925 1924 Janu- Decem-Novem- Janu- Gold 147 ary ber ber ary Loans and discounts. 447 Balances abroad 15 Gold 272 272 270 270 Note circulation 365 Foreign bills and balances abroad 30 18 18 18 Deposits: Bills 1, 545 1,479 1,312 1, 353 State 17 Note circulation ... __. 7,648 7, 590 7, 603 7, 590 Private 84 Private deposits _. _...._ 258 435 293 192 DENMARK POLAND [Millions of kroner] [Millions of zlote] Gold 209 209 210 210 Bills 214 187 231 230 Loans 56 61 59 58 1925 1924 Foreign bills and balances abroad 29 43 26 17 Note circulation 456 478 479 446 Current accounts 67 82 72 79 Janu- Decem-Novem- Octoary ber ber ber RUSSIA [Note issuing department. Thousands of chervontsi] Gold 104 103 103 ! 101 Foreign exchange, etc __ 242 269 247 242 Bills 270 257 250 245 Gold 14 914 14,195 13,140 8,754 Note circulation 553 551 498 ! 504 Foreign currency 10,248 11,165 10,139 6,502 Current accounts, etc.: Loans and discounts 31,289 34, 013 •33,749 14,592 Treasury 3 6 40 ; 4 Bank notes 55 025 59, 597 57,719 30, 300 Private 50 58 43 ! 48 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

MARCH, 1925 FEDERAL RESERVE BULLETIN 199 SPAIN FINLAND [Millions of pesetas] (Millions of F. marks) 1925 1924 1925 1924 Janu- Decem-Novem- Janu- Janu- Decem-Novem- January ber ber ary ary ber ber ary Gold 2,536 2,535 2,535 2,528 Gold . . . . .. 43 43 43 43 Balances abroad _ 31 33 30 30 Balances abroad, etc 874 8 4 617 674 Bills discounted 926 909 813 964 Finnish and foreign government Note circulation 4,529 4,535 4,474 4,336 securities . 473 486 496 529 Current accounts 957 912 921 1,039 Domestic bills 598 540 766 620s Note circulation 1,205 1,250 •1,228 1,279 Current accounts: Private 53 46 79 63 SWEDEN Treasury 284 158 213 365 [Millions of kronor] GREECE (Millions of drachmae) Gold 234 237 239 272 Balances abroad and foreign bills 108 100 56 41 Domestic bills 390 455 328 346 1924 1923 Government securities: Swedish 13 13 14 14 Decem-Novem- Octo- Decem- Foreign 43 38 41 74 ber ber ber ber Note circulation _. 483 537 537 509 Deposits - -. 291 304 133 232 Gold and balances abroad. 2,182 2,399 2,084 Government loans and securities 3,987 3,979 4,196 Discounts and loans 2,528 2,407 1,815 SWITZERLAND Note circulation 4,826 4,754 4,681 Private deposits: [Millions of francs] Sight 1,779 1,669 1,701 Time 1,066 1,070 1,008 Gold 506 506 505 537 Domestic bills 304 311 284 259 HUNGARY L B o a a la n n s ces abroad and due from corre- 52 70 67 51 (Milliards of H. crowns) spondents - - 70 88 64 41 Note circulation. 825 914 859 884 1925 1924 Deposits -, 164 120 123 74 Janu- Decem-Novem- Octoary ber ber ber AUSTRIA Gold 510 533 508 503 (Milliards of krone) Foreign exchange 1,967 1,933 1,816 1,659 Bills, etc 1,849 1,977 1,985 1,872 Note circulation... 4,450 4,514 4,443 4,635 Gold. 111 111 111 91 Current accounts: F O o th re e i r g n fo r b e i i l g ls n ( b re il s l e s rve) 3 1 , ,9 2 8 2 5 7 4,771 4,312 3,811 P P u ri b v l a ic te -. -. ... 2,0 1 1 2 2 7 1,8 2 6 0 5 4 1,6 2 6 6 5 4 } 1,465 Domestic bills, etc 1,544 1,880 1,944 1,251 Note circulation 7,902 8,388 8,072 6,735 Deposits.. 438 553 485 537 YUGOSLAVIA (Millions of dinars) CZECHOSLOVAKIA 1925 1924 (Millions of Cz. K.) Janu- Decem-Novem- January ber ber ary Gold and silver 1,029 1,050 1,051 1,038 Balances abroad and foreign currency. 643 737 714 1,126 Gold 72 72 72 69 A Bi d l v ls a n d c is e c s o o u n nt c e o d llateral _. lt0 5 8 5 3 3 1,3 62 1 5 4 1, 6 1 6 1 6 5 7 7 8 2 0 2 B Fo il r l e s ig .. n currency and balances abroad 1,2 3 0 7 8 5 1,2 3 8 8 9 5 1,3 3 1 9 6 7 1,2 3 9 6 7 5 Note circulation 7,917 8,810 8,501. 8,810 Note circulation _ __ 5,795 6,002 6,034 5,774 Checking accounts 497 1,164 676 719 Current accounts 345 307 247 263 DISCOUNT RATES OF 27 CENTRAL BANKS [Prevailing rates with date of last change] Country Rate In effect Country Rate In effect Country Rate In effect Country Rate In effect since— since— since— since— P.ct. P.ct. P.ct. P.ct. Austria 13 Nov. 6,1924 England 5 Mar. 5, 1925 India 7 Jan. 22,1925 Portugal 9 Sept. 12,1923 Belgium Jan. 22,1923 Esthonia 9 May 19,1924 Italy 5H July 11,1922 Rumania ... 6 Sept. 4,1920 Bulgaria _ 10 Aug. —, 1924 Finland. 9 Mar. 6,1924 Japan 8.03 Nov. 18,1919 South Africa Jan., 1925 Czechoslo- France 7 Dec. 11,1924 Latvia 8 Feb. 16,1924 Spain 5 Mar. 23,1923 Da v n a z k i i g a 1 6 0 M Se a p y t . 2 1 8 1 , , 1 1 9 9 2 2 4 4 G Gr e e r e m ce any. __ 9 IV* J F a e n b . . 2 1 6 4 , , 1 19 9 2 2 3 5 N N e o t r h w er a l y a . n . ds 4 J N a o n v . . 2 1 6 5 , , 1 1 9 9 2 2 4 5 S S w w e it d z e e n rland- 4 5V2 J N u o ly v . 1 9 4 , , 1 1 9 9 2 23 3 Denmark 7 Jan. 17,1924 Hungary 12H Sept. 17,1924 Poland 10 Nov. 28,1924 Yugoslavia. . 6 June 23,1922 Changes.—German Reichsbank from 10 to 9 per cent on February 26, 1925; Bank of England from 4 to 5 per cent, March 5, 1925. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

200 FEDERAL, RESERVE BULLETIN MARCH, 1925 FOREIGN TRADE OF PRINCIPAL COUNTRIES UNITED STATES FOREIGN COUNTRIES [Thousands of dollars] 1925, 1924, 1925, 1924, cumu- cumu- I cumu- ! cumu- 1925, 1924, lative lative : 1925, 1924, lative lative Janu- Decem- through through Janu- Decem- through through ary ber last last ary ber last last month month month month noted noted noted noted IMPORTS France (million francs): By classes of commodities: Imports 3,173 4,118 3,173 ; 2,882 Total 346,184 : 333,562 346,184 295, 506 Exports 3,563 4,042 3,563 ! 2,697 Crude materials for manu- Germany (million gold marks): facturing 147,597 131,701 147, 597 106,434 Imports 1,372 1,309 1, 372 | 568 Foodstuffs in crude condi- Exports... 697 740 697 ; 431 tion 38,066 40,098 38,066 32, 584 United Kingdom (thousand £ Foodstuffs partly or wholly sterling): manufactured,- __. 32,336 ' 27,896 32,336 38, 202 Imports 128,907 131,610 • 128,907 101,187 Manufactures for use in Exports 69,051 69,308 69,051 64, 235 manufacturing 63,104 , 62,692 63,104 58,044 Reexports 13,284 12,052 13,284 13,311 Manufactures ready for con- Canada (thousands of dollars): sumption 62,813 ! 68,990 62,813 57,605 Imports 58,376 60,946 : 58, 376 66,568 Miscellaneous 2,268 j 2,185 2,268 2,637 Exports 75,999 125,462 75,999 70,355 By countries: Japan (million yen): Total Europe __. 102,803 110,721 102,803 87,989 Imports 226 185 226 214 F G r e a r n m ce any 1 11 3 , , 4 9 0 2 2 4 = 1 1 4 2 , , 7 4 9 3 3 6 1 1 1 3 , , 4 9 0 2 2 4 1 11 0 , , 7 2 8 4 7 6 Sout E h x p A o f r r t i s c a (thousand _ £ _ ster- 147 180 147 111 Italy 8,463 9,084 8,463 5,992 ling): United Kingdom 35,178 1 39,349 35,178 30,835 Imports 5,489 5,845 5,489 4,932 Total North America 77, 546, 69,136 77,546 75,167 Exports ' 4,778 7,928 4,778 7,366 Canada __ 32,950 36,489 32,950 31, 954 Total South America 42,253 ; 44,524 42,253 37,967 Tota A l r A g s e i n a t i a n n a d Oceania 11 6 2 , , 5 92 2 8 3 9 6 8 , ,0 2 1 9 7 4 11 6 2 , , 5 92 2 8 3 8 4 2, , 6 0 7 9 9 9 1924 Japan 33,284 39, 626 33,284 34,812 1924 1923 Total Africa 10,651 11,165 10,651 11,704 Decem- Novem- EXPORTS ber ber By classes of commodities: Denmark (million kroner): Total 446, 577 445,716 446,577 395,172 Imports 225 212 2,361 2,031 Crude materials for manu- Exports _ 179 191 2,152 1,694 facturing.__ 168,194 168,273 168,194 132,848 Italy (million lire): Foodstuffs in crude condi- Imports _ 2,495 1,646 19,387 17,225 tion _ _ 25,873 39, 516 25,873 13,810 Exports 1,778 1,414 14,313 11,059 Foodstuffs partly or wholly Netherlands (million guilders): manufactured 54,044 54, 389 54,044 59,315 Imports 220 218 2,364 2,009 Manufactures for use in Exports. 136 159 1,661 1,303 manufacturing _. 58, 271 53, 704 58,271 54;619 Norway (million kroner): Manufactures ready for con- Imports 139 144 1,548 1,343 sumption 133,059 122,093 133,059 127,826 Exports. 95 103 1,064 833 Miscellaneous 997 676 997 639 Sweden (million kroner): Reexports 6,139 7,066 6,139 6,115 Imports 119 129 1,402 1,295 By countries: Exports 124 123 1,252 1,142 Total Europe 269,415 273, 342 269,415 202, 668 Brazil (million milreis): i France._____ _. 29,210 . 27,862 29,210 23,195 Imports 262 261 1,977 1,606 Germany ___ 49, 615: 50,671 49, 615 40,966 Exports __ 387 357 2,543 2,196 Italy 22,668 23,914 22,668 16,858 Australia (thousand £ sterling): ! United Kingdom 113,136 115, 884 113,136 84,863 Imports 12,389 12,275 145,463 136,273 Total North America 77, 948• 76,398 77,948 74,557 Exports 20, 639 16, 537 140,194 110,690 Canada 37, 063 38,123 37,063 40,752 India (million rupees): Total South America 31, 745 29, 752 31,745 23,874 Imports 172 225 2,437 2,269 Argentina _. 12,893 10, 702 12,893 8,959 ! Exports 361 336 3,824 3,413 Total Asia and Oceania _. 60,885 58, 362 60,885 87,034 Japan 27,875 26,451 27,875 47,637 : Total Africa 6,584 7,026 6,584 7,039 1 Figures for August and September and cumulative through September, 1924, and 1923. The following table presents the Federal Reserve Board's index numbers of the monthly volume of foreign trade of the United States and monthly fluctuations in ocean freight rates prevailing between this country and principal European trade regions. For methods of construction of these indexes reference may be made to the FEDEKAL RESERVE BULLETINS for July, 1920, and August, 1921. 3N TRADE INDEX INDEX OF OCEAN FREIGHT RATES [1913=100] [January, 1920=100] 1925 1924 1925 1924 Janu- De- No- Octo- January cember vember ber ary ; Febru- Janu- De- No- February ary cember vember ary Imports: Total 217.1 194.7 186.7 198.5 182.2 : United States Atlantic ports Kaw materials 186.4 185.4 150.8 133.7 149.4 to- Producers' goods. 296.9 226.3 258.0 308.0 239.1 United Kingdom 27.8 29.8 29.7 32.2 29.9 Consumers' goods. 134.7 153.2 138. 0 152.2 168.4 French Atlantic 27.6 27.6 27.8 28.8 25.3 Exports: Netherlands and Bel- Total 127.8 136.7 155. 6 157.8 101.0 gium 25,1 25.6 25.3 27.5 25.0 Raw materials 123.2 135.3 166. 6 164.4 79.3 Scandinavia - 23.5 23.5 23.5 23.5 23.4 Producers' goods. 181.2 186.0 184.9 174.7 162.2 Mediterranean 20.7 23.8 23.5 22.9 19.9 Consumers' goods 117.2 117.4 104. 7 127.8 142.9 All Europe 25,5 26.9 26.7 28.1 25.8 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

MARCH, 1925 FEDERAL RESERVE BULLETIN 201 INDUSTRIAL STATISTICS FOR FOREIGN COUNTRIES ENGLAND GERMANY 1925 1924 1924 1923 Ja a n ry u- De b c e e r m-No b v e e r m- Ja a n ry u- De b c e e r m- No b v e e r m- Octoberl Dlc b/f e in r ' Production: Exports: Coal (thousand long tons) 19,958 19,743 126,024 20,788 Iron and its manufactures Pig iron (thousand long tons) | 569 580 584 637 (metric tons) 357,560 278, 049 189,671 134,411 Steel ingots and castings (thou- j Machinery and electrical supsand long tons) | 605 551 674 694 plies (metric tons) 37,939 32, 793 29, 763 37,694 Raw cotton, visible supply2 j Dyes and dyestuffs (metric (thousand bales) I 1,264 1,067 1,138 tons) 12,090 11,243 7,479 8,739 Exports: Coal (metric tons) 889,310 637,795 33399, 3377001 122996,63388 Iron and steel and manufactures Imports: (thousand long tons) 325 303 312 338 Raw wool (metric tons) 4,371 5,056| 5,958 Cotton manufactures (million Silk, half manufactured (metric yards) _ 406 413 333 357 tons) _ 531 614 434 374 Coal (thousand long tons) 4,366 5,168 4,759 5,441 Cotton (metric tons) 42,455 25,020 24,018 22,302 Imports: Iron ore (metric tons) 875,'"" ., 023,593 172,060i 70, 299 Raw cotton (million pounds) 297 277 207 222 Coal (metric tons) 1,109,446 .!, 180,907 979,779;!, 541, 716 Raw wool (million pounds) 79 68 37 | 61 Raw hides, wet (thousand Transp p o o r u t n a d ti s o ) n . : 8,472 6,565 8,910 6,338 1925 1924 Ships cleared with cargo3 (thousand tons). _ __' 5,495 5,126 Janu- Decem- Novem- Janu- Freight-train receipts (thousand 5,352 5,174 ary ber ber ary pounds sterling) 8,744 | 8,074 Freight-train traffic (million ton- Ship arrivals in Hamburg (thoumiles) 1,565 ! 1,434 sand net reg. tons).. 1,391 1,462 1,378 1,179 Unemployment: Unemployment: Among trade-unionists (per cent). 9.0 9.2 8.6 | 8.9 Applicants for every 100 posi- In insured trades (per cent) 11.5 10.9 11.0 | 11.9 tions 314 299 650 Capital issues (thousand pounds Number receiving State aid 592,479 529,161 436,607 1,439, 780 sterling) 18,382 27,712 22,122 i 6,995 Business failures--_ 793 616 621 29 Capital issues 2 101.9 31. 74.9 147.9 1 Five weeks. Index of security prices: 1 2 End-of-month figures. 25 domestic stocks, Jan. 4, 8 Figures include Irish Free State. 1924=100 111.6 82.6 1 Last week of month figures. 2 in millions of gold marks. FRANCE CANADA 1925 1924 1925 1924 Janu- I Deeem-Novem- January ber ber Janu- Decem-Novem- January ber ber ary Production: Pig iron (thousand tons) 28! 64 Crude steel.__ 27 41 Production: Railway receipts (thousand dollars).. 28, 305 31,412 P C C i o r g u a l d i r e i o n ( t s h ( t t e o h e u o l s u a s n ( a t d h n d o m u e m s t a r e n i t c d r i t c o n t m o s) e n t s r ) ic .. 5,0 6 2 6 4 5 4,7 6 4 3 0 4 4,9 5 2 8 8 6 U Bu n is s e t i m s n e ( p s p l s o e f r y a c m i e lu n e r n t) e t s a ( m nu o m ng b e t r r ) a 1 de-union- 64 54 9 4 .7 9 7 6 .5 4 tons).. 605 558 541 Authorized capital of new companies Cotton stocks at Havre 2 (thou- (thousand dollars) 1 14, 280 17,168 13, 602 17,811 sand bales) 1207,324 177,788 123,345 133,851 Bond sales (thousand dollars) 44,643 43,808 28, 514 86,361 Exports: ; Security prices, average market Total volume (thousand metric prices, 20 industrial stocks 105.6 102.0 99.9 92.3 tons) _. 2,322 2,512 2,949 1,768 Receipts of wheat at Fort William Imports: and Port Arthur (thousand Total volume (thousand metric bushels) 20,341 42, 660 12,662 tons) __ 3,522 4,731 4,360 3,927 Receipts of livestock at stockyards in Raw cotton for consumption Toronto and Winnipeg: (metric tons).__ 47,372 34,817 31,779 Cattle (number) 53,774 78, 533 41,800 Raw silk (metric tons) _. 1,762 493 271 Hogs (number)... 110077, 66889911 7799,223377 81,037 Coal (thousand metric tons) 2,547 2,030 1,824 Transportation: 1924 1923 Ships cleared with cargo (thousand tons) _ 2,522 2,607 2,238 I Decen Novem- Octo- Decem- Railway receipts (thousand 1 ber ber ber ber francs) _ <84?,270681,005 519,061 Freight-car loadings (average Exports: daily number) 61,815 64,284 64,256 57,362 Planks and boards (million feet).. 180,831 189,508 220,255 161,597 Une N m u p m lo b y e m r e in n t: Paris receiving aid 3_. 278 118 596 W Pr o es o e d r v p e u d l f p i s ( h th ( o th u o s u an sa d n p d o p u o n u d n s d ) s - ) . . 1 1 4 4 5 ,4 ,6 7 6 1 5 1 1 7 7 7 , , 2 7 5 8 2 0 1 2 5 0 2 , , 1 8 3 1 6 2 1 1 4 0 3 , ,3 4 4 7 7 8 De fi m lle a d n d ( s n u f m or b e e r m m p e l n o y in m F e r n a t nc n e o ) t 3. 8,563 6,452 7,829 8,454 W Im h p e o a r t t s ( : thousand bushels) 29,847 26,982 14,288 57,378 Coal (thousand tons) 1,354 1,408 1,416 1,416 1 Coal and lignite, including Lorraine and the Saar. Raw cotton (thousand pounds) __ 14,636 15,765 7,920 11,097 * Bale of 50 kilos. End-of-month figures. Machinery (thousand dollars) 2,207 2,023 2,009 2,169 * End-of-month figures. 4 Five weeks. 1 Average for weeks reported. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

202 FEDERAL RESERVE BULLETIN MARCH, 1925 PRICE MOVEMENTS IN PRINCIPAL COUNTRIES The tables below give the all-commodities series indicates relative price levels in the several and group index numbers of wholesale prices in countries when all prices are expressed in dollars. the five countries included in the Federal Re- The wholesale price index of the Bureau of serve Board's indexes. In the first table the Labor Statistics for the United States, with all-commodities index for each country is shown the group indexes shown by that bureau and both in terms of paper currency and converted the regrouping made by the Federal Reserve to a gold basis. The latter figure takes into Board, has oeen transferred from this section to account the depreciation of the foreign currency the section on business conditions in the United in terms of the American dollar (or gold) and the States and appears on page 166 of this issue. FEDERAL RESERVE BOARD WHOLESALE PRICE INDEXES FOR ALL COMMODITIES i On paper currency basis Converted to gold basis Year and month England France Canada Japan U S n ta it t e e d s England France Canada Japan 1913, average - 100 100 100 100 100 100 100 100 100 100 1919, average - 211 241 207 235 211 219 198 241 1920, average - 239 | 310 512 250 240 239 233 187 223 242 1921, average 149 198 344 167 181 149 156 133 150 175 1922, average - - 158 165 319 149 182 158 150 136 147 175 1923, average - 165 | 170 394 150 188 166 159 124 147 183 1924, average - - 159 | 176 446 147 200 159 160 121 145 166 i 1923 July - 159 168 391 151 183 159 158 119 I 147 179 August - 159 164 391 150 179 159 154 115 j 146 176 September - - 163 165 404 149 191 163 154 123 145 186 October 163 166 404 147 196 163 154 125 145 192 November - 163 171 416 145 199 163 154 119 142 193 December - 163 177 427 144 205 163 159 116 | 140 193 1924 j January - 163 178 445 146 205 163 156 108 | 142 185 February 163 180 469 148 200 163 160 107 I 144 182 March - - -- 160 180 483 147 200 160 158 117 ! 143 172 April - 158 181 428 143 201 158 162 137 140 165 May -• - - 156 177 428 143 200 156 158 128 141 161 June 154 174 442 145 189 154 155 120 142 156 July" -•-— 156 174 440 147 191 156 156 117 146 158 August --- 158 173 442 149 196 158 160 125 149 163 September - 156 172 436 146 198 156 158 120 145 161 October - 159 175 442 148 206 159 161 120 148 161 November 160 176 449 148 210 160 167 123 148 162 December - 165 177 451 149 209 165 171 126 149 161 1925 January - 168 | 178 455 157 168 175 127 156 FEDERAL RESERVE BOARD WHOLESALE PRICE INDEXES FOR GROUPS OF COMMODITIES 1 Grouped by stage of Grouped by Grouped by stage of Grouped by manufacture origin manufacture origin Year and month m c t A o o ie m d l s l i - - te R m r a i a a w - ls d g u P o c r o e o d r - s s' g s C e o u o r o m s n d ' - - s g m D o ti o e o c s d - - s p g o I o m r o t ' - e d $ g p E o o o x r d - t s Year and month m c t A o o ie m l d s l i - - t R e m r a i a a w - ls d g u P o c r o o e d - rs s ' g s C e o u o r o m s n d ' - - s g m D o t o i e o c s d - - s p g o I o m r o t d e - s dg p E o o x o r - d t s UNITED STATES FEANCE—contd. 1924—January 163 169 156 160 165 143 196 1924—November 449 478 439 424 430 541 461 August 158 164 149 156 160 139 177 December ___ 451 480 440 424 431 545 463 September-_. 156 161 148 156 158 143 163 1925—January.. .... 455 480 442 435 436 546 464 N O o ct v o e b m er ber 1 1 6 5 0 9 1 16 6 5 5 1 14 4 7 6 1 1 6 5 2 8 1 1 6 6 1 0 1 1 5 4 0 6 1 16 6 9 7 CANADA December 165 171 151 165 166 149 171 1924—January 146 128 166 166 143 166 133 1925—January 168 176 151 167 170 147 175 August 149 134 153 169 148 157 152 September 146 133 153 162 145 155 150 ENGLAND October 148 137 151 161 147 157 160 1924—January 178 178 169 186 177 179 186 November 148 137 155 161 147 160 161 August 173 171 165 184 173 174 176 December 149 139 153 163 148 159 164 September— 172 168 166 183 173 169 172 1925—January 157 149 152 169 157 159 180 N O o ct v o e b m er ber 1 17 7 6 5 1 17 7 4 1 1 16 6 9 8 1 1 8 8 7 7 1 17 7 6 5 1 1 7 7 4 8 1 1 7 7 8 4 JAPAN December 177 175 171 187 177 179 180 1924—January 205 222 203 196 204 211 215 1925—January 178 176 171 188 178 179 179 August 196 206 194 192 194 207 194 September 198 198 202 196 200 189 200 FRANCE October 206 211 212 202 208 200 204 1924—January 445 459 469 416 423 548 489 November 210 217 216 204 212 202 213 August 442 456 455 419 427 511 451 Decembe* 209 216 218 201 210 202 214 September 436 464 441 402 420 516 443 1925—January October. 442 469 442 411 423 534 454 i Complete descriptions of these index numbers may be found in the following issues of the BULLETIN: United States—May and June, 1920, June, 1921, and May, 1922; England—February, 1922; France—August, 1922; Canada—July, 1922; Japan—September, 1922. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

MARCH, 1925 FEDERAL RESERVE BULLETIN 203 WHOLESALE PRICE LEVELS IN PRINCIPAL COUNTRIES ALL-COMMODITIES INDEX NUMBERS [Pre-war-100] Europe Ger- Year and Eng- many; I month Austria g B i e u l m - I i ga B ri u a l-C v z a s e k lo c i - a h o l - m D a e r n k - 1 B la o o n a f d r ; d Finland France F S e t t d i a c e t a i r s l a - l ] I H ga u r n y - Italy N l e a t n h d e s r- ( N w O o a s r l y - o) Poland Russia2 Trade Bureau \ Gold 1924 basis January 1,874,800 580 2,711 974 210 165 1,071 494 117.3 123 571 156 250 107 209 February 1,915,800 642 2,658 999 223 167 1,078 544 116.2 131 573 158 262 112 207 July 1,913,300 566 2,737 953 220 163 1,085 481 115.0 145 567 151 271 102 184 August 2,013,600 547 2,853 233 165 1,111 477 120.4 145 572 151 274 109 184 September 1,937,300 550 2,848 231 167 1,117 486 126.9 142 580 158 275 112 180 October 2,008,600 555 2,988 234 170 1,114 497 131.2 144 602 161 276 116 177 November 2,076,600 569 3,132 1,013 231 170 1,120 503 128.5 154 621 161 277 117 December 2,075,400 566 3,181 1,024 232 170 507 131.3 640 160 278 118 1925 January 559 1,045 234 171 514 138.2 657 160 279 120 February 234 281 North and Europe—C ontinued South America Asia and Oceania Africa Year and United month Spain Sweden S l w an it d z ^ er- o ( S B f S t t u L a a r t a t e i e b s a s - o u r Canada Peru t A ra u l s i - a ( C S h h h a a i i n n ) g a - D I E n u d a t i s c e t h s c I ( u n C t d a t i a l a - ) (T Ja o p k a y n o) Ze N a e la w nd ( E C g a y ir p o t ) A So fr u ic th a tics) 1924 January | 178 161 183 151 157 190 174 156 180 172 211 175 133 131 February 180 162 183 152 157 189 170 160 178 208 180 135 July 182 157 173 147 153 192 163 152 174 179 195 180 132 125 August 182 160 171 150 157 193 162 149 177 180 200 181 143 September 184 163 170 149 154 190 162 149 177 179 206 181 148 October 186 167 169 152 157 192 163 153 175 181 213 180 156 "133 November.... 181 167 169 153 158 191 163 155 173 180 214 181 158 December___ 168 170 157 161 195 165 157 176 213 181 156 1925 January.-. 171 160 ! 165 199 163 160 171 213 157 February.. 170 194 159 I 1 First of month figures. 8 Wholesale price index of industrial products on the base of 1913=100. First of the month figure. The foreign index numbers of wholesale prices are cabled to the Federal Reserve Board by the various foreign statistical offices. Index numbers of commodity groups for most of the countries are also available in the office of the Division of Research and Statistics of the board, and may be had upon request. Wherever possible the indexes nave been shifted from original bases to a 1913 base. Further information as to base periods, sources, number of commodities and period of the month to which the figures refer may be found on page 48 of the January, 1924, issue of the BULLETIN. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

204 FEDERAL RESERVE BULLETIN MARCH, 1925 RETAIL FOOD PRICES AND COST OF LIVING IN PRINCIPAL COUNTRIES INDEX NUMBERS OF RETAIL FOOD PRICES [Pre-war=100] European countries Other countries United States cit ( i 5 e 1 s) ( A V u ie s n tr n i a a ) g B iu e m l- ' g B a u ri l a - l E an n d g ^ - n t E h ia s o - * - F (P r a a r n i c s e ) m G a e n r y - I ( l t a M a n l i ) y - N la e e n r t d - h s - N w o ay r- S l z a w e n r i d - t- a C d a a n - i t A ra u l s ia - ( I B b n a o d y m i ) a - N l Z a e e n a w d - A So fr u ic th a 1923 October 147 1,263,600 117 2,219 172 106 349 502 145 217 162 144 157 147 146 117 November 148 1,264,700 121 2,365 173 104 355 503 149 221 166 144 157 147 147 120 December 147 1,286,000 124 2,547 176 107 365 151 499 149 226 167 145 156 152 147 118 1924 January 146 1,352,700 126 2,674 175 111 376 127 515 150 230 168 145 155 154 150 120 February 144 1,382,100 130 2,537 177 113 384 117 516 151 234 167 145 153 151 149 122 March 141 1,393,000 128 2,497 176 115 392 120 523 152 241 167 143 152 147 150 122 April 138 1,383,800 121 2,501 167 115 380 123 524 152 240 165 137 150 143 150 123 May . 138 1,416,900 113 2,438 163 111 378 126 519 151 241 165 133 151 143 150 122 June 140 1,445,700 118 2,687 160 111 370 120 518 151 241 168 133 149 147 150 120 July 140 1,436,200 123 2,626 162 115 360 126 508 150 248 168 134 148 151 148 117 August 141 1,565,200 124 2,727 164 119 366 122 507 150 257 166 137 147 156 146 117 September... 144 1, 562,300 127 2,723 166 116 374 125 514 152 261 166 139 146 156 145 117 October 146 1,584,500 135 2,856 172 110 383 134 543 154 264 169 139 146 156 146 120 November... 147 1,619,800 140 2,994 179 110 396 135 567 156 269 170 141 147 157 148 122 December 149 1,624,800 139 3,040 180 113 404 135 579 157 274 170 143 148 156 150 121 1925 January 151 1,644,600 178 408 137 157 168 145 148 152 120 February 1,661,800 176 145 152 INDEX NUMBERS OF COST OF LIVING European countries Other countries Massas c e h t u ts - ( A V u ie s n tr n i a a ) g B iu e m l- v C a o z k s e l i c o a h - - i l E an n d g * - l F a i n n d - F (P ra a n ri c s e ) m G a e n r- y I ( l t a M a n l i ) y - N la e e n r t d - h s - N w o a r y - la P n o d - Spain S d w en e- l S z a w e n r d i - t- a C d a a n 1 - A t l r i u a a s - - ( I B b n a o d y m i ) a - A So fr u ic th a 1923 October 158 1,102,700 458 901 175 1,193 61 502 47 174 177 164 149 152 132 November. 157 1.114.900 463 898 175 1,190 126 502 55 177 167 150 153 133 December.. 158 ]L, 124,900 470 909 177 1,170 345 125 499 178 231 80 182 168 150 152 157 133 1924 January 157 L, 174,000 480 917 177 1,155 110 510 121 17S 176 169 150 158 133 February.. 156 L, 194,000 495 917 179 1,143 104 517 127 190 168 149 156 134 March 156 L, 199, 600 510 908 178 1,141 365 107 521 179 236 126 180 168 148 150 153 134 April 151 L, 197,300 498 907 173 1,121 112 522 127 195 173 166 145 150 134 May 154 L, 220,900 485 916 171 1,121 llo 518 126 180 166 143 150 134 June 154 L, 244,200 492 923 169 1,147 366 112 518 173 244 124 186 168 143 "149" 153 133 July 155 L, 239,100 493 909 170 1,154 116 512 127 182 "In" 169 143 156 132 August 155 L, 314,200 498 897 171 1,198 114 511 135 180 166 145 160 132 September. 157 L, 316, 200 503 908 172 1,199 367 116 516 176 258 141 189 166 146 160 132 October 157 :L, 330,700 513 916 176 1,219 122 546 150 185 "l74' 169 146 160 133 November. 157 L, 357,400 520 922 180 1,222 123 563 152 175 170 147 161 134 December.. 158 , 365,000 521 928 181 1,217 377 123 573 181 266 153 190 170 147 160 133 1925 January 158 1, 376,200 521 931 180 1,199 124 130 149 157 133 February. _ 1,382, 500 517 179 149 157 1 First of the month'figures. 21921=100. Information as to the number of foods included and the items entering into the cost of living indexes is available in the board's office. The original bases of the indexes have been shifted to July, 1914, wherever possible. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

MARCH, 1925 FEDERAL RESERVE BULLETIN 205 BANKING AND FINANCIAL STATISTICS FEDERAL RESERVE BANKS AVERAGE DAILY CONDITION FOR JANUARY, 1925, AND DECEMBER, 1924 [Amounts in thousands of dollars] Total earning assets Total cash reserves Total deposits Fede in ra c l i r r e c s u e l r a v ti e o n notes Reserve percentages Federal reserve bank January December January December January December January December January December Boston 101,042 112,368 245,088 245,869 141,612 138,686 191,272 207,709 73.6 71.0 New York 294,557 365,813 977,395 941,996 899, 025 899,828 358,065 382,558 77.8 73.5 Philadelphia-. 74,027 88,304 234,489 236,295 131,363 128,863 156, 295 173,893 81.5 78.0 Cleveland 124, 709 136, 643 256, 595 270,314 178,287 177,483 188,817 209,295 69.9 69.9 Richmond 32,680 34,518 123,094 131, 744 68,898 68,159 80,873 89,592 82.2 83.5 Atlanta 25,322 33,829 177,168 174,400 67,105 64, 731 139,857 143,811 85.6 83.6 Chicago 138,645 150,874 388, 747 383,465 320,256 315, 770 189,112 199,720 76.3 74.4 St. Louis 42,430 44, 934 103, 561 100, 680 83,989 80, 503 55, 705 57,972 74.1 72.7 Minneapolis 28,183 31,328 102, 903 103,740 58,314 59,355 68, 689 72, 599 81.0 78.6 Kansas City 49, 737 54, 679 114,314 109, 201 92,432 90, 243 69, 501 73,299 70.6 66.8 Dallas __.. 49,431 51,711 74,873 76, 554 66,103 63,498 51,480 57,383 63.7 63.3 San Francisco 111,314 115,705 274,450 282,451 169, 527 168,227 204,690 216,487 73.3 73.4 Total: 1925-24 1,072,077 1,220,706 3, 072,677 3,056, 709 2,276,911 2,255,346 1, 754,356 1,884,318 76.2 73.8 1924-23. 1, 000, 668 1,200,351 3,241, 596 3,168,984 1,979,913 1,931,408 2,112,873 2,292,306 79.2 75.0 1923-22. 1,191,191 1,304,433 3,201,969 3,166, 019 1,981, 717 1,891,457 2,288,527 2,415,515 75.0 73.5 1922-21. 1,304,165 1,517,194 3,043,984 2,994,982 1,800,989 1,755,226 2,272,057 2,416,096 74.7 71.8 1921-20. 3,034,655 3,313, 502 2,287,274 2,221,573 1,822, 600 1,821, 746 3,177,656 3,342,520 147.5 144.7 1920-19. 3, 043,952 3,034,224 2,098,498 2,149,653 2, 027,861 1,990, 221 2,887,846 2,955,476 144.9 145.7 1 Calculated on basis of net deposits and Federal reserve notes in circulation. FEDERAL RESERVE BANKS—RESOURCES AND LIABILITIES, BY WEEKS RESOURCES [In thousands of dollars] Total Boston Y N o e r w k d P e h lp il h a i - a C la le n v d e- m Ri o c n h d - Atlanta Chicago L S ou t. is M ap in o n li e s - K C an it s y as Dallas F c S i r s a a c n n o - Gold with Federal reserve agents: Jan. 28 1, 730, 679 150,085 444,0.47 159,128 170,417 78,458 144,054 165,795 53,533 67,945 61,179 33, 719 202,319 Feb.4__ 1,726,231 156,839 442,197 155,124 170,005 77,118 147,054 165,765 53,000 67,294 60,663 32,919 198,253 Feb. 11 1,712,410 153,706 442,098 151,936 170,400 75,727 146,056 165,720 52,413 67,049 59,946 32,058 195,301 Feb. 18 1,701,939 150,683 442,060 149, 709 170,076 74, 745 145,144 165,695 51,238 67,359 58,961 32,797 193,472 Gold redemption fund with U. S. Treasury: Jan. 28 53, 660 15, 777 5,018 9,431 3,537 1,807 1,380 3,926 3,677 1,438 3,182 2,404 2,083 Feb. 4 51,637 8,106 8,507 12,315 2,471 1,801 2,185 2,804 3,695 1,744 3,089 2,532 2,388 Feb. 11 48,298 10,413 7,230 4,270 2,677 2,129 1,402 5,767 3,786 1,681 3,312 2,675 2,956 Feb. 18 50,139 12,750 6,342 5,537 2,960 2,107 1,617 4,892 3,985 1,136 3,833 2,390 2,590 Gold held exclusively against Federal reserve notes: Jan. 28 784,339 165,862 449,065 168, 559 173,954 80,265 145,434 169,721 57,210 69,383 64,361 36,123 204,402 Feb. 4 777,868 164,945 450,704 167,439 172,476 78,919 149,239 168,569 56,695 69,038 63,752 35,451 200,641 Feb. 11 760,708 164,119 449,328 156,206 173,077 77,856 147,458 171,487 56,199 68, 730 63,258 34, 733 198,257 Feb. 18 752,078 163,433 448,402 155,246 173,036 76,852 146,761 170,587 55,223 68,495 62,794 35,187 196,062 Gold settlement fund with Federal Reserve Board: Jan. 28 590,815 53,554 212,088 29,764 55,595 11,963 8,675 78,534 20,699 23,163 43,441 19,876 33,463 Feb.4 570,035 55,491 173,960 25,676 53,812 17,495 11,255 88,452 23,052 25,839 48,746 22,286 23,971 Feb. 11 576,593 52,448 141,343 45,008 61,115 17,785 14,944 93,436 18,580 26,516 47,297 25,240 32,881 Feb. 18 578,550 57,477 137,428 47,693 51,181 13,634 16,309 93,327 21,998 23,626 46,270 29,989 39,618 Gold and gold certitificates held by banks: Jan. 28 564,232 20,839 289,632 26,147 23,547 21,900 9,602 110,067 8,772 6,345 4,276 10,003 33,102 Feb. 4 572, 987 21,730 294,404 23,979 23,686 22,140 8,419 106,201 9,289 6,413 3,897 10,144 42,685 Feb. 11 559,039 23,275 297,195 21,458 24,423 22,596 8,.681 102,054 9,071 6,447 3,418 10,182 30,239 Feb. 18 574,647 24,463 307, 725 23,081 25,766 22,990 8,709 102,702 9,459 6,501 3,957 8,808 30,486 Total gold reserves: Jan. 28 2,939,386 240,255 950,785 224,470 253,096 114,128 163,711 358,322 98,891 112,078 66,002 270,967 Feb.4 2,920,890 242,166 919,068 217,094 249,974 118,554 168,913 363,222 89,036 101,290 116,395 67,881 267,297 Feb. 11 2,896,340 239,842 887,866 222,672 258,615 118,237 171,083 366,977 83,850 101,693 113,973 70,155 261,377 Feb. 18 2,905,275 245,373 893,555 226,020 249, 983 113,476 171,779 366,616 86,680 113,021 73,984 266,166 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

206 FEDERAL RESERVE BULLETIN MARCH, 1925 FEDERAL RESERVE BANKS—RESOURCES AND LIABILITIES, BY WEEKS—Continued RESOURCES—Continued [In thousands of dollars] Total Boston Y N o e r w k d P e h lp il h a i - a C la le n v d e- m Ri o c n h d - . Atlanta Chicago L S ou t. is M ap in o n li e s - K C an it s y as Dallas F c S r is a a c n n o - Reserves other than gold: Jan. 28 143,160 12,764 33,018 5,726 11,406 6,670 12,898 19,637 19,487 2,128 4,107 9,646 5,673 Feb. 4 143,704 13,984 31,301 6,972 11,941 6,446 13,161 19,636 19,080 I 1,854 4,173 9,502 5,654 Feb. 11 144, 693 15,061 33,412 7,902 10,303 6,226 13,093 18,840 19,017 ! 1,845 4,126 9,375 5,493 Feb. 18 139,929 14, 970 28, 202 7,478 9,755 5,981 13,180 20,438 19,146 j 1,714 3,825 9,435 5,805 Total reserves: Jan. 28 082, 546 253,019 983,803 ! 230,196264, 502 120,798 176,609 377,959 106,168 ! 101,019 116,185 75,648 276,640 Feb. 4 064, 594 256,150 950,369 ! 224,066261,915 125,000 182,074 382,858 108,116 I 103,144 120, 568 77,383 272,951 Feb. 11- 041,033 254,903 921,278 230, 574 268,918 124,463 184,176 385,817 102,867 I 103,538 118,099 79,530 266,870 Feb. 18 045,204 260,343 921,757 233,498 259, 738 119,457 184,959 387,054 105,826 100,336 116,846 83,419 271,971 Nonreserve cash: Jan. 28 74,371 3,856 28,509 1,927 5,200 3,805 6,058 10,019 4,412 943 2,676 2,831 4,135 Feb. 4 62, 930 3,531 22,130 1,915 4,842 3,287 5,202 8,610 4,163 736 2,281 2,397 Feb. 11 58,045 3,939 18,980 1,910 2,818 3,456 5,338 8,008 4,172 890 2,043 2,602 Feb. 18 60,160 3,969 19,073 2,146 4,364 3,074 4,818 4,188 786 2,236 2,572 3,948 Bills discounted: Secured by U.S. Government obligations- Jan. 28 164,892 14,673 69,291 18, 572 22,643 6,436 784 21,130 3,642 120 684 200 6,717 Feb. 4 207,325 12,109 111,733 19,413 26,209 5,595 671 20,767 2,973 200 622 138 6,895 Feb. 11 190,515 13,179 108,916 18,717 21,216 4,952 627 16,467 2,760 173 601 176 2,731 Feb.18 196,460 11,120 104,388 18,687 30,916 7,905 505 8,948 3,798 168 1,248 306 8,471 Other bills discounted— Jan. 28 108,800 5,913 15,210 6,785 10,166 19,203 13,482 16,591 4,131 3,931 4,137 2,674 6,577 Feb. 4 115,042 5,243 21, 513 10,046 9,868 18,914 11,665 15,643 4,766 4,039 4,166 2,468 6,711 Feb. 11 141,291 7,788 40,155 10,017 11,467 17, 523 11,347 14,778 4,612 3,913 4,056 1,721 13,914 Feb. 18 146,011 6,604 43,958 13,287 19,701 11,183 14,687 8,524 3,724 4,030 2,204 9,276 Total bills discounted: Jan. 28 273,692 20,586 84,501 25,357 32,809 25,639 14,266 37,721 7,773 4,051 4,821 2,874 13,294 Feb. 4 -_. 322,367 17,352 133,246 29,459 36,077 24, 509 12,336 36,410 7,739 4,239 4,788 2,606 13,606 Feb. 11 331,806 20, 967 149,071 28,734 32,683 22,475 11,974 31,245 7,372 4,086 4,657 1,897 16, 645 Feb. 18 342> 471 17,724 148,346 27, 520 44,203 27, 606 11, 688 23,635 12,322 3,892 5,278 2,510 17,747 Bills bought in open market: Jan. 28 307, 767 45,406 67,191 37,963 1,258 4,901 30,483 20,074 12,424 22,006 49,372 Feb. 4 308,004 43,178 67,731 17,781 37, 553 1,347 4,051 31,223 20,378 11,944 21,663 51,155 Feb. 11 324,647 47,744 75,884 19,088 37,322 1,900 3,404 36,627 20,147 121 11,509 21,031 49,870 Feb.18 311,747 49,369 64,114 34,206 4,602 5,514 39,235 18,252 2,124- 12,416 18,822 43,707 U, S. Government securities: Bonds— Jan. 28 76,174 2,472 12,440 1,345 11,126 1,340 1,806 19,461 1,264 10,077 7,940 3,718 3,185 Feb.4 75,216 2,662 12,461 1,415 10,948 1,407 1,510 19,649 1,057 9,401 7,938 3,654 3,114 Feb. 11 74,965 2,662 12,461 1,416 10.948 1,407 1,548 19,649 1,136 8,855 8,114 3,654 3,115 Feb. 18 74,945 2,662 12,461 1,415 10.949 1,407 1,563 19,649 1,175 8,781 8,114 3,654 3,115 Treasury notes- Jan. 28 279,665 18,125 93,870 22,245 27,148 1,960 1,160 37,042 8,943 10,427 14,925 13,429 30,391 Feb.4 273,252 17,446 91,089 23,577 26.530 1,910 1,158 36,152 8,296 9,807 14,572 13,000 29,715 Feb. 11 274,539 17,831 91,977 23,577 26.531 1,910 1,156 36.152 8,296 9,812 14,583 13,000 29.714 Feb. 18 273,082 17,267 91,089 23,577 26,530 1,910 1,155 9,807 14,583 13,000 Certificates of in- 36.153 29.715 debtedness— Jan. 28 38,225 4,750 8,202 2,262 7,505 230 658 3,482 104 675 2,495 1,070 6,792 Feb.4 40,360 4,806 9,370 741 7,872 181 716 3,721 853 1,015 2,646 1,337 7,102 Feb. 11 40,592 4,831 9,7£2 741 7,871 181 716 3,553 853 1,009 2,645 1,337 7,103 Feb. 18 30,178 4,103 5,648 465 6,863 109 685 2,128 514 2,155 806 6,079 Total U. S. Government securities: Jan. 28 394,064 25, 347 114,512 25,852 45,779 3,530 3,624 10,311 21,179 25,360 18,217 40,368 Feb.4 388,828 24,914 112,920 25.733 45,350 3,498 3,384 59,522 10,206 20,223 25,156 17,991 39,931 Feb. 11 390,096 25,324 114,190 25.734 45,350 3,498 3,420 59,354 10,285 19,676 25, 342 17,991 39,932 Feb. 18 378,205 24,032 109,198 25,457 44,342 3,426 57,930 19,211 24,852 17,460 Foreign loans on gold: Jan. 28 10,500 3,055 1,032 1,220 603 462 1,564 519 374 474 798 Feb. 4 10,500 3,055 1,032 1,220 603 462 1,564 519 374 474 399 Feb. 11 10,500 3,055 1,032 1,220 603 462 1,564 519 374 474 399 Feb. 18 10,500 3,055 1,032 1,220 603 462 1,564 519 374 474 399 All other earning assets: Jan. 28 2,559 2,050 500 Feb.'4 2,559 2,050 500 Feb.'ll 2,559 2,050 500 Feb. 18 3,458 2,950 500 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

MARCH,, 1925 FEDERAL RESERVE BULLETIN 207 FEDERAL RESERVE BANKS—RESOURCES AND LIABILITIES, BY WEEKS—Continued RESOURCES—Continued [In thousands of dollars] San Total Boston Y N o e r w k d P e h lp il h a i - a C la le n v d e- m Ri o c n h d - Atlanta Chicago L S ou t. is M ap in o n li e s - K C an it s y as Dallas F ci r s a c n o - Total earning assets: Jan. 28 988,582 91,339 269,259 70,980 117,771 31,030 23,253 129,753 38,677 25,613 43,579 43,496 103,832 Feb. 4 1,032,258 85,444 316,952 76,055 120,200 29,957 20,233 128,719 38,842 24,845 42,862 42,659 105,490 Feb. 11 1,059,608 94,035 342,200 76,638 116, 575 28,476 19, 260 128,790 38,323 24,266 42,482 41, 318 107,245 Feb. 18 1,046,381 91,125 324,713 76,345 123,971 36, 237 21,067 122,364 41,078 25,609 43,520 39,191 101,161 Uncollected items: Jan. 28 572,000 50,867 125,787 51, 777 52,960 50, 386 28, 350 71,812 31,893 12, 631 36, 319 26,078 33,140 Feb.4 567, 815 51,803 124,005 55, 766 50, 725 47,896 27,700 72,002 31,337 11, 740 35,252 26, 651 32,938 Feb. 11 589,040 54,026 132,137 50,850 53,425 52, 231 28, 982 69,167 34, 706 12,845 37,854 27,314 35,503 Feb. 18 __. 682,314 65,598 152,482 66,660 64,781 55,822 33, 391 84,453 34,400 14,286 40, 226 30,903 39,312 Bank premises: Jan. 28 57, 939 4,190 16,250 1,114 7,573 2,446 2,780 8,099 3,385 2,982 4,024 1,833 3,263 Feb.4 58,004 4,190 16,303 1,114 7,573 2,446 2,780 8,099 3,395 2,981 4,024 1,833 3,266 Feb. 11.. 58,057 4,190 16, 303 1,114 7,573 2,446 2,780 8,099 3,404 2,981 4,067 1,833 3,267 Feb. 18 58,323 4,190 16, 304 1,114 7,573 2,446 2,780 8,099 3,615 3,034 4,067 1,833 3,268 All other resources: Jan. 28 24,831 189 7,963 293 421 652 2,110 2,317 316 3,352 767 1,831 4,620 Feb.4_ 24,317 164 7,816 298 426 505 2,107 2,247 319 3,277 745 1,810 4,603 Feb. 11 24,399 176 8,193 360 409 473 2,096 2,127 323 3,154 740 1,767 4,581 Feb. 18 24, 500 230 8,108 336 428 491 2,088 2,170 319 3,154 721 1,827 4,628 Total resources: Jan. 28 4, 800, 269 403,460 1,431, 571 356,287 448,427 209,117 239,160 599,959 184, 851 146,540 203, 550 151, 717 425, 630 Feb.4 . 4,809,918 401,282 1, 437, 575 359,214 445,681 209,091 240,096 602,535 186,172 146, 723 205,732 152,733 423,084 Feb. 11_ |4,830,182 411, 269 1,439,091 361,446 449,718 211,545 242, 632 602,008 183, 795 147, 674 205, 285 154,364 421,355 4,916,882 425,455 1,442,437 380,099 460, 855 217,527 249,103 613,126 189, 426 147,205 207,616 159, 745 424, 288 Feb. 18... __ LIABILITIES Federal reserve notes in actual circulation: Jan. 28 _ 1,684,311 185,549 338, 531 149,462 182,839 76,297 138,471 183,189 54,088 66, 725 66,846 48,076 194,238 Feb. 4 _____ 1,690,385 346, 783 150,183 176, 557 75, 893 139,168 180, 505 53,858 66, 972 66, 818 47,266 195,489 Feb. 11 ___1,713,662 192, 516 348,623 161, 771 188, 264 75,426 139, 753 179,716 53, 067 66,865 66,508 46, 334 194,819 Feb. 18 193, 690 346,315 156,101 180,856 75, 403 140,458 178,615 53,174 67,921 66,289 45,899 194,169 Deposits: Member bank reserve account- Jan. 28 _ 2,171, 723 140, 331 845, 739 127,155 179, 858 67, 564 64,604 304,609 81, 534 55,309 86, 525 60, 394 158,101 Feb.4 2,193,624 134,393 857, 509 128, 372 183,683 68,349 63,295 303, 714 83,673 55,552 89,838 63,066 162,180 Feb. 11 _ 2,174, 546 140, 248 850, 215 120, 989 175,466 66, 230 64,169 310,210 78,870 56,386 88, 524 65,082 158,157 Feb. 18 2,190, 651 142, 674 843,450 129, 771 182, 760 68, 755 66,897 308,201 81, 539 53,952 88,803 65,666 158,183 Government— Jan. 28 52,114 3,688 18,364 2,665 2,336 2,460 2,051 1,699 2,672 1,538 2,938 2,123 9,580 Feb. 4 29,049 1,980 6,343 1,605 2,627 925 2,076 5,064 1,208 1,171 2,347 1,368 2,335 Feb. 11 27, 601 2,745 6,112 1,408 1,850 2,498 2,171 1,118 2,558 670 2,260 1,396 2,815 Feb. 18 26,129 2,164 5,945 1,829 880 1,399 2,574 1,632 1,849 998 1,783 2,094 2,982 Other deposits- Jan. 28 41, 379 151 30,934 376 143 332 1,100 1,169 358 925 121 4,862 Feb. 4 __ 44,896 180 32,833 526 1,027 236 237 1,368 1,915 495 913 201 4,965 Feb. 11 40,308 507 29,185 471 1,236 232 206 1,422 737 449 815 214 4,834 Feb.18 40, 341 210 29,818 531 1,118 165 180 1,123 1,089 345 695 153 4,914 Total deposits: Jan. 28 __2,265, 216 144,170 895,037 130,196 183,102 70,167 66,987 307, 408 85,375 57,205 90,388 62,638 172,543 Feb. 4 _____ 2,267, 569 136, 553 896, 685 130,503 I 187,337 69,510 65, 608 310,146 86,796 57,218 93,098 64,635 169,480 Feb. 11 2,242,455 143, 500 885, 512 122,868 178, 552 68,960 66,546 312, 750 82,165 57, 505 91,599 66,692 165,806 Feb. 18 ___2, 257,121 145,048 879, 213 132,131 184,758 70,319 69,651 310,956 84,477 55,295 91, 281 67,913 166,079 Deferred availability items: Jan. 28 510, 336 49,046 106,895 45,836 46,374 44,448 19, 530 62,006 29,893 10,957 32, 568 28, 517 34,266 Feb.4 511,833 49,173 103,065 47, 727 45, 750 45,444 21,176 64,538 30,054 10,874 32,056 28,376 33,600 Feb. 11_._ 533,398 50, 526 113,714 46,022 46,842 48,936 22,183 62,133 33,002 11, 620 33,424 28,830 36,166 Feb.18 619,074 61,974 125,278 60, 469 58,966 53,572 24,851 76,128 36,224 12,309 36,301 33,481 39,521 Capital paid in: Jan. 28 112,246 8,004 30,165 10, 510 12, 735 5,901 4,591 15,405 5,090 3,272 4,331 4,139 8,103 Feb. 4 _ 112,316 8,004 30,172 10, 510 12,735 5,937 4,587 15, 452 5,086 3,270 4,333 4,131 8,099 Feb. 11__ 112,328 8,008 30,172 10, 510 12,735 5,940 4,587 15,458 5,086 3,270 4,331 4,131 8,100 Feb.18 113,466 8,008 30, 531 11,068 12,951 5,915 4,595 15,464 5,102 3,270 4,332 4,130 8,100 Surplus: Jan. 28 217,837 16, 382 58, 749 20, 059 22,462 11,701 8,950 30,426 9,971 7,497 8,977 7,592 15,071 Feb.4 217,837 16,382 58, 749 20,059 22,462 11, 701 8,950 30,426 9,971 7,497 8,977 7,592 15,071 Feb. 11 217, 837 16,382 58, 749 20,059 22,462 11, 701 8,950 30, 426 9,971 7,497 8,977 7,592 15,071 Feb. 18 217, 837 16,382 58,749 20,059 22,462 11,701 8,950 30,426 9,971 7,497 8,977 7,592 15,071 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

208 FEDERAL RESERVE BULLETIN MARCH, 1925 FEDERAL RESERVE BANKS—RESOURCES AND LIABILITIES, BY WEEKS—Continued LIABILITIES—Continued [In thousands of dollars] San Total Boston Y N o e r w k d P e h lp il h a i - a C la le n v d e- m Ri o c n h d - Atlanta Chicago L S ou t. is M ap in o n li e s - K C an it s y as Dallas F c r is a c n o - All other liabilities: Jan. 28 10,323 309 2,194 224 915 603 631 1,525 434 884 440 755 1,409 Feb.4 9,978 277 2,121 232 840 606 607 1,468 407 892 450 733 1,345 Feb. 11 10,502 337 2,321 216 863 582 613 1,525 504 917 446 785 1,393 Feb. 18 „ 10,494 353 2,351 271 862 617 598 1,537 478 913 436 730 1,348 Total liabilities: Jan. 28 4,800,269 403,460 1,431, 571 356,287 448,427 209,117 239,160 599,959 184,851 146, 540 203,550 151,717 425, 630 Feb. 4 4, 809,918 401, 282 1,437,575 359, 214 445, 681 209,091 240,096 602, 535 186,172 146, 723 205, 732 152,733 423,084 Feb. 11 _4,830,182 411,269 1,439,091 361,446 449,718 211,545 242,632 602,008 183,795 147,674 205,285 154,364 421,355 Feb.18 4,916,882 425,455 1,442,437 380,099 460, 855 217, 527 249,103 613,126 189,426 147, 205 207,616 159,745 424,288 MEMORANDA Ratio of total reserves to deposit and Federal reserve note liabilities combined (per cent): Jan. 28 78.0 76.7 79.8 82.3 72.3 82 5 86.0 77.0 76.1 81.5 73.9 68.3 75.4 Feb. 4 77.4 78.2 76.4 79.8 72.0 8&0 88.9 78.0 76.9 83.1 75.4 69.2 74.8 Feb.11 76.9 75.9 74.6 81.0 73.3 86.2 89.3 78.3 76.1 83.2 74.7 70.4 74.0 Feb. 18 77.0 76.9 75.2 81.0 71.0 82.0 88.0 79.1 76.9 81.4 74.2 73.3 75.5 Contingent liability on bills purchased for foreign correspondents: Jan. 28 47,174 13,646 4,729 5,438 2,743 2,081 7,046 2,364 1,655 2,081 1,797 3,594 Feb. 4 45,157 13, 029 4,531 5,211 2,628 1,994 6,752 2,266 1,586 1,994 1,722 3,444 Feb. 11— 43, 210 12,198 4,374 5,030 2,537 1,925 6,517 2,187 1,531 1,925 1,662 3,324 Feb. 18 44,581 12,860 4,474 5,145 2, 595 1,969 6,666 2,237 1,566 1,969 1,700 3,400 Own Federal reserve notes held by Federal reserve bank: Jan.28 388,857 16,273 169,969 44,094 17,340 19, 635 21, 712 14, 675 8,055 2,878 7,377 8,104 58, 745 Feb. 4 365,582 15, 783 157,441 39, 768 20,360 18, 699 20, 654 15, 008 7,752 2,536 7,289 6,764 53, 528 Feb. 11 341,976 16,427 152, 745 26,592 16,989 17, 775 20,147 14,048 7,956 2,944 7,132 6,835 52,386 Feb.18 358,841 17,130 158, 017 34,036 23, 772 16,816 19, 529 12, 886 7,173 2,499 7,466 6,910 52, 607 FEDERAL RESERVE BANKS—MATURITY DISTRIBUTION OF BILLS, CERTIFICATES OF INDEBTEDNESS, AND MUNICIPAL WARRANTS [In thousands of dollars] Total Wi d th ay in s 15 16 d a to y s 30 31 d a to y s 60 61 da aa t y o ys s Q O | 1 d F m a r y o o s m n t t o h 9 1 s 6 m O o v n e t r h 6 s Bills discounted: Jan. 28 273, 692 202,035 17,691 28, 531 15,069 9,031 1,335 Feb. 4 322,367 253,097 18,292 26,847 14,393 1 8,211 1,527 Feb. 11 331, 806 264, 095 18,976 24,611 14,345 ! 8,131 1,648 Feb. 18 342,471 264, 345 20, 229 27, 716 20,213 | 8,137 1,831 Bills bought in open market: Jan. 28 307, 767 90, 251 78, 374 96, 502 34,973 I 7,667 Feb. 4 308,004 93, 789 85, 541 83, 259 40,048 S 5,367 Feb. 11 324, 647 108, 570 83, 785 75, 542 52,488 ! 4,262 Feb 18 311, 747 107, 286 71, 762 75, 660 52,551 j 4,488 United States certificates of indebtedness: Jan. 28 38, 225 14 196 296 ' 3,022 34, 697 Feb. 4 40,360 14 196 286 i 8,165 31, 699 Feb.11 - . . . 40, 592 617 285 3,022 36, 668 Feb. 18 30,178 14 491 i 3 022 26,651 Municipal warrants: Jan 28 9 9 Feb. 4 . 9 9 Feb. 11 9 8 1 Feb. 18 8 8 i i Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

MARCH, 1925 FEDERAL RESERVE BULLETIN 209 FEDERAL RESERVE NOTES—FEDERAL RESERVE AGENTS' ACCOUNTS, BY WEEKS fin 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 Ri o c n h d - Atlanta Chicago L S ou t. is M ap i o n l n is e- K C an it s y as Dallas F c S r is a a c n n o - Net amount of Federal reserve notes received from Comptroller of Currency: Jan. 28 3,088,368 267,972 838,040 239,556 267,729 121,376 223,014 457,401 87, 803 87,746 104,096 75,452 318,183 Feb. 4 3,063,692 264,726 833,764 235,551 265,317 120,036 222, 633 454, 650 87, 270 87,096 103, 780 74,652 314, 217 Feb. 11 3,049, 551 261, 593 830,908 238,163 262, 713 118,645 221, 636 452, 901 86, 850 103, 263 73, 791 312,405 Feb. 18.._. 3,053,445 267, 970 830,272 241, 937 262,188 117, 664 221/923 450, 638 86,007 87,161 103,178 73,031 311,476 Federal reserve notes on hand: Jan. 28 1,015,200 66,150 329, 540 46,000 67, 550 25,444 62, 831 259. 537 25, 660 18,143 29, 873 19, 272 65,200 Feb. 4 1,007,725 58,050 329, 540 45, 600 68,400 25.444 62,811 259', 137 25, 660 17, 588 29, 673 20, 622 65, 200 Feb. 11 993,913 52, 650 329,540 49,800 57,460 25, 444 61, 736 259,137 25, 660 17,041 29, 623 20, 622 65,200 Feb. 18 995, 714 57,150 325, 940 51, 800 57, 560 25.445 61, 936 259,137 25, 660 16, 741 29,423 20, 222 64,700 Federal reserve notes outstanding: Jan. 28 2,073,168 201,822 508, 500 193,556 200,179 95, 932 160,183 197,864 62,143 69,603 74,223 56,180 252, 983 Feb. 4 2,055,967 206,676 504, 224 189,951 196,917 94,592 159,822 195, 513 61,610 69, 508 74,107 54,030 249,017 Feb. 11. 2,055, 638 208, 943 501,368 188,3"63 205, 253 93,201 159,900 193, 764 61,023 69, 809 73,640 53,169 247,205 Feb. 18 2,057,731 210,820 504, 332 190,137 204,628 92, 219 159, 987 191,501 60,347 70,420 73, 755 52, 809 246, 776 Collateral security for Federal reserve notes outstanding: Gold and gold certificates- Jan. 28 281, 849 35,300 188, 531 6,000 8,780 3,500 12,175 13,052 14,511 Feb. 4 281, 564 35,300 186, 746 6,000 8,780 5,000 12,175 13,052 14,511 Feb. 11 281, 516 35,300 186, 698 6,000 8,780 5,000 12,175 13,052 14,511 Feb. 18 282, 516 35,300 186, 698 6,000 8,780 5,000 11, 675 13,052 16,011 Gold redemption fund- Jan. 28 107, 412 12, 785 29, 516 10, 739 11,637 1,663 7,554 5,151 3,358 1,393 4,819 3,708 15,089 Feb. 4.... 102, 970 9,539 29,451 11, 735 11,225 3,323 6,054 5,121 2,825 1,742 4,303 2,908 14, 744 Feb. 11 108, 767 16,406 29,400 13, 547 11,620 1,932 5,056 5,076 3,238 1,497 3,586 3,047 14,362 Feb. 18 105, 841 13,383 29,362 11,320 11, 296 3,950 4,144 5,051 3,598 1,807 4,601 3, 286 14,078 Gold fund—Federal Reserve Board— Jan.28.. 1,341,418 102,000 226,000 142, 389 150,000 76,795 133,000 160, 644 38,000 53, 500 56, 360 15, 500 187, 230 Feb. 4 1, 341,697 112,000 226,000 137,389 150,000 73,795 136,000 160, 644 38,000 52, 500 56,360 15, 500 183, 509 Feb. 11 1, 322,127 102,000 226,000 132,389 150,000 73, 795 136,000 160, 644 37,000 52, 500 56, 360 14, 500 180,939 Feb. 18 1,313, 582 102,000 226,000 132, 389 150,000 70, 795 136,000 160, 644 36,000 52, 500 54,360 13,500 179, 394 Eligible paper— Amount required- Jan. 28 342,489 51, 737 64,453 34,428 29, 762 17,474 16,129 32,069 8,610 1,658 13,044 22, 461 50, 664 Feb. 4 329, 736 49, 837 62,027 34,827 26,912 17,474 12, 768 29, 748 8,610 2,214 13,444 21, 111 50, 764 Feb. 11 343, 228 55, 237 59,270 36, 427 34, 853 17,474 13,844 28,044 8,610 2,760 13, 694 21, 111 51,904 Feb. 18 355, 792 60,137 62, 272 40, 428 34, 552 17,474 14,843 25, 806 9,109 3,061 14, 794 20,012 53,304 Excess amount held— Jan. 28 214, 821 14, 255 71, 525 3,467 38, 543 9,333 2,871 35,887 19,058 1,865 4,080 2,322 11, 615 Feb. 4 266, 292 10, 693 113,491 7,510 45,460 2,777 37, 659 19, 250 1,472 3,136 3,043 13,513 Feb. 11 278,145 13, 474 139,201 7,121 33,120 6,693 1,220 39, 587 18, 066 955 2,335 1,693 14,180 Feb. 18 269,401 6,956 130,076 1,915 42, 231 14,170 1,914 36, 812 21,125 2,525 2, 767 1,270 7,640 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

210 FEDERAL, RESERVE BULLETIN MARCH, 1925 FEDERAL RESERVE BANKS—EARNING ASSETS HELD AND EARNINGS THEREON, JANUARY, 1925 [In thousands of dollars] Total Boston Y N o e r w k d P e h lp il h a i - a C la le n v d e- m R o ic n h d - Atlanta Chicago L S ou t. is M ap in ol n is e - K C an it s y as Dallas F c S i r s a a c n n o - HOLDINGS ON JAN. 31, 1925 Total earning assets 1,028,903 ,94,4571 296,092 77,263 118,318 32,065 21,796 131,782 39,905 25,638 44,274 43,845 103,468 Bills discounted for members 311,885 25,948: 113,350 31,110 33,103 26,531 13,385 38,002 8,079 4,162 5,071 2,706 10,438 Bills bought in open market 313,006 43,595 66,311 17,338 38,645 1,433 4,583 31,834 21,138 13,078 22, 750 52,301 United States securities 390,953 24,914 113,376 25,733 45,350 3,498 3,366 60,382 10,169 21,093 25,151 17, 990 39,931 A Fo ll r e o i t g h n e r lo e a a n r s n i o n n g g a o s l s d ets 1 2 0 , , 5 5 5 0 9 0 I 3,055 2 1, , 0 0 3 5 2 0 1,220 603 462 1,564 519 374 4 5 7 0 4 0 798 Bills Discounted Customers' paper secured by Government obligations 1,035 211; 58 345 222 72 27 18 30 Member bank collateral notes: Secured by Government obligations 168,415 13,896; 75,207 19,970 21, 924 6,157 665 22,147 3,637 200 831 150 3,631 Otherwise secured 45,623 31, 688 5,945 949 2,665 1,006 10 126 60 1,148 1,967 Commercial, agricultural, and livestock paper, n.e.s 94,063 11,6 6,301 5,100 9,231 17,081 11,388 15,135 4,169 3,825 4,142! 1, S 4,634 Trade acceptances, domestic 2,749 1721 96 95 654 406 254 634 249 11 176 Total discounted bills 311,885 25,948| 113,350 31,110 33,103 26,531 13,385 38,002 8,079 4,162 5,071 2,706 10,438 Bills Bought Bankers' acceptances based on— Imports 119,538 20,321 19,114 5,625 50 188 9,778 5,188 8,513 24,444 Exports _ 111, 751 11,419 25,680 6,627 13. 695 12 3,209 8,950 9,397 5,474 9,102 18,186 Domestic transactions 75, 60£ 11, 822 18,643 4,816 5,810 1,371 1,186 12,437 3,736 2,164 4,674 8,946 Dollar exchange 5,226 33! 1,991 270 451 377 252 461 725 All other 611 611 Trade acceptances—foreign, imports _- 272 272 Total purchased bills 313,006 43,595! 66,311 17, 338 38, 645 1,433 4,583 31, 834 21,138 13,078 22, 750 52,301 Purchased Bankers' Acceptances, by Classes of Acceptors National banks__ 105, 797 19, 033 20,077 6,974 10, 052 1,462 15,848 7,153 3,854 6,413 14,931 Other member banks 100,212 8,359| 21,222 6,107 11,286 1,518 14 579 8,227 4,221 7,697 16,996 Nonmember banks and banking corporations 106, 997 16, 203 25,012 4,257 17,307 1,433 1,407 5,758 5,003 8,640 20,374 United States Securities United States bonds 75, 537 2,472 12,440 1,345 11,126 1,340 1,561 19,461 1,263 9,685 7,941 3,718 3,185 Treasury notes 273,995 17, 550 91,879 22,070 26, 519 1,913 1,112 36,158 8,737 10,563 14,617 13,097 29,750 Certificates of indebtedness 41,421 4, 892 9,057 2,318 7,705 245 663 4,763 169 84f 2,593 1,17; 6,996 Total United States securities _-. 390,953 24,914 113,376 25, 733 45,350 3,498 3,366 60, 382 10,169 21,093 25,151 17,990 39,931 DAILY AVERAGE HOLD- INGS DURING JANUARY Total earning assets 1 1,072,077 101,042 294, 557 74,027! 124,709 25,322 138, 645 42,430 28,183 49, 737 49,431 111, 314 Bills discounted . 267,424 19,657 76,094 26,100 34,819 14,719 35,953 8,790 4,715 5,032 2,976 11,681 Bills bought 328, 644 50, 841 73,129 17,386| 36,696 1,265 6,822 31,407 20, 748 6 14, i 24,191 51,853 United States securities_ 465, 246 30, 544 142,955 27,693 52,225 4,059 3,421 70,067 12,489 23 160 29, 533 21,953 47,147 Foreign loans on gold 8,224 2,379 814 1,218 403 297 372 311 633 EARNINGS DURING JAN- UARY Total earning assets i 2,97! 257 780 220 349 107 414 114 142 133 B B i i l l l l s s b di o s u co g u h n t t . e .. d 8 7 0 5 6 2 11 5 1 8 1 1 9 6 4 6 78 10 9 4 1 92 3 12 7 2 2 3 4 0 8 3 1 2 7 5 1 5 0 1 3 1 5 8 United States securities _ 1,386 414 152 11 217 35 90 67 133 Foreign loans on gold 21 6 1 3 1 1 1 2 ANNUAL RATE OF EARN- INGS Total earning assets * 3.27 2.99 3.1: 3.50 3.29 3.86J 3.62 3.52 3.17 3.36 3.16 3.05 Bills discounted 3.55 3.50 3.00 3.50 3.50 4.00 4.00 4.00 4.00 4.08 4.00 4.00 3.50 Bills bought 2.70 2.57 2.6' 2.67 2.92 3.04 2.95 2.70 2.72 2.32 2.66 2.68 2.69 United States securities. 3.51 3.38 3.41 4.05 3.43 3.27 3.39 3.65 3.34 3. 76 3.59 3.57 3.33 Foreign loans on gold 3.00 3.00 3.00 3.00 3.00l 3.00 3.00 3.00 3.00 3.00 3.00 3.00 1 Including municipal warrants, as follows: Minneapolis, average daily holdings, $5,462; earnings, $18; annual rate of earnings, 3.97 per cent; also including Federal intermediate bank debentures, as follows: Philadelphia average daily holdings, $2,033,870; earnings, $5,788; annual rate of earnings, 3.35 per cent; Kansas City, average daily holdings, $500,000; earnings, $1,451; annual rate of earnings, 3 42 per cent. * Less than $500. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

MARCH, 1925 FEDERAL RESERVE BULLETIN 211 FEDERAL RESERVE BANKS—VOLUME OF DISCOUNT AND OPEN MARKET OPERATIONS DURING JANUARY, 1925 [Amounts in thousands of dollars] Total Boston Y N o e r w k d P e h lp il h a i - a C la le n v d e- m Ri o c n h d - AtlantaChicago L S ou t. is M ap i o n l n is e-K C an it s y as Dallas F c S i r s a a c n n o - Volume of Operations Total discount and openmarket operations il, 735,109 88,184 1,002,939 194,649 182,027 61, 265 28,846 128,120 33,890 10,935 12,801 17,902 73,551 Bills discounted for member banks 1,488,088 73,039 894,806 81,715 166,232 60,400 23, 921 108,927 23,273 2,485 4,708 5,633 42,949 Bills bought in open market.. 182,897 14,052 69, 327 11, 721 14,102 534 2,180 14,507 10,082 5,995 11,101 29, 296 Bills bought from other Federal reserve banks 21 21 United States securities bought in open market 59,094 1,093 37,476 263 1,175 70 2,547 4,016 310 8, 283 1,900 997 964 Foreign loans on gold 4,500 1,309 450 518 261 198 670 225 158 198 171 342 Municipal warrants purchased 9 9 Bills Discounted Customers' paper secured by Government obligations 980 540 38 72 188 50 29 1 17 18 27 Member bank collateral notes: Secured by Government obligations 1,134, 534 44, 713 709, 591 64, 541 123, 602 41,515 3,551 98,850 12,006 1,029 3,314 772 31,050 Otherwise secured 247, 737 179,808 14, 064 32,036 7,577 3,366 315 384 219 60 2,003 7,905 Commerical, agricultural, and De li m ve a s n t d o ck a n p d ap er s , i g n h . t e. d s rafts 100,193 27, 592 5,247 3,066 9,875 10,706 16, 594 9,615 9,934 1,227 1,317 1,192 3,828 (based on agricultural products) .. 2 Trade acceptances, domestic- 21,,880431 194 122 44 645 414 2 13 2 7 3 118 8 1 2 21 7 10 1 648 1 3 0 6 3 Total bills discounted... 1,488,088 73,039 894, 806 81,715 166, 232 60,400 23,921 108,927 23, 273 2,485 4,708 5,633 42,949 Average rate (365-day basis)— per cent .. 3.53 3.50 3.00 3.50 3.50 4.00 4.00 4.00 4.00 4.00 4.00 4.00 3.50 Average maturity (in days).. 8.37 11.28 4.42 12.14 8.12 14.04 39.59 15.58 30.60 68.81 38.72 30.71 15.32 Total reduced to a common maturity basis (exclusive of demand and sight drafts) 1,485, 285 98,490 473,103 118, 604 161,384 101, 347 112,123 202, 826 82,095 20,436 21, 787 14,626 78,464 Per cent of total 100.0 6.6 31.8 8.0 10.9 6.8 7.5 13.7 5 5 1 4 1 5 1 0 5.3 Number of member banks on Jan. 31 9,674 421 859 744 870 625 516 1,418 629 908 1,080 837 767 Number of banks accommodated during the month. 2,554 161 312 329 284 243 182 472 175 86 111 39 160 Per cent accommodated.. 26.4 38.2 36.3 44.2 32.6 38.9 35.3 33.3 27.8 9.5 10.3 4.7 20.9 Bills Bought in Open Market Bankers' acceptances: Foreign 133, 877 10, 250 50,894 8,770 10, 824 25 1, 573 6,921 7,812 4,889 9,198 22,721 Domestic 45,497 3,792 16, 599 2,821 2,863 509 607 7,351 2,070 986 1,688 6,211 Dollar exchange . 3,400 10 1,711 130 415 235 200 120 215 364 Trade acceptances—foreign... 123 123 Total bills bought 182, 897 14, 052 69,327 11, 721 14,102 534 2,180 14, 507 10,082 5,995 11,101 29,296 Distribution by rates charged (360-day basis): 2% per cent-- 45,941 1,363 14,096 43 4,153 869 4,242 3,585 2,680 4,683 10,227 2J^5 per cent-- 29, 969 3,069 4,729 599 3,600 514 4,113 3,645 1,202 2,187 6,311 3 per cent 99, 224 8,987 49,809 10, 766 5,385 534 3,970 2,833 2,104 3,601 11, 235 3M$ per cent-- 2,689 170 82 233 125 1,810 269 334 per cent 4,008 433 544 80 765 372 19 9 630 1,156 3/^ per cent- 213 41 74 98 s' per cent 56 30 26 4 per cent 797 797 Average rate (365-day basis)— percent 3.01 3.00 3.00 3.04 3.02 3.04 3.44 3.01 2.95 2.96 3.01 3.00 Average maturity (in days).. 39.19 38.89 21.90 76.90 55.87 41.03 29.26 53.81 48.12 47.35 50.04 41.76 Total reduced to a common maturity basis __. 182,897 13,945 38, 733 22,999 20,102 559 1,627 19,918 12, 379 7,243 14,174 31, 218 Per cent of total 100.0 7.6 21.2 12.6 11.0 .3 .9 10.9 6.7 4.0 7.7 17.1 United States Securities Bought in Open Market United States bonds 10, 258 2 1,367 7,002 1,382 500 5 Treasury notes 18, 332 410 16,139 53 913 200 560 57 •Certificates of indebtedness... 30, 504 681 21,337 263 1,122 70 267 3,816 310 721 461 497 959 Total United States securities bought 59,094 1,093 37,476 263 1,175 70 2,547 4,016 310 8,283 1,900 997 964 i Includes $500,000 Federal intermediate credit bank debentures. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

212 FEDEBAL EESERVE BULLETIN MARCH, 1925 REPORTING MEMBER BANKS IN LEADING CITIES PRINCIPAL RESOURCES AND LIABILITIES, BY WEEKS [In thousands of dollars] Federal reserve district Total Boston Y Ne o w rk i | d P e h lp il h a i - a C la le n v d e- m Ri o c n h d - Atlanta Chicago L S o t u . is M ap i o n l n is e- K C a i n ty sas Dallas Fra S n a c n isco Number of reporting banks: Jan. 21 736 108: 100 25 Jan. 28-_ 740 108 100 25 70 Feb. 4 740 108| 100 25| 70 Feb. 11 739 108; 100 25J 70 Loans and discounts, gross: Secured by U. S. Government obligations- Jan. 21__ 192,355 8,772 73,398 10,424 19, 355 6,412 7,547 32,706 10, 694 2,831 4,247 5,018 10,951 Jan. 28._ 181,332 8,520 64,467 10, 5231 19,418 5,873 7,643 33,209 11,447 2,819 4,273 3,738 9,402 Feb. 4 184,354 8,639 66,192 10,462 i 18,934 6,413 7,658 33, 794 12, 249 2,786 4,143 3,710 9,374 Feb. 11 190,981 8,487 70,828 10,6371 19,132 9,131 7,453 33,355 12,034 2,733 4,190 3,664 9,337 Secured by stocks and bonds- Jan. 21_ _ 4,701,798 292,703 2,162,223 313,632 417,413 124, 271 71,167 708,100 182,989 54,600 96,800 64,622 213,278 Jan. 28 4,706,936 291,278 2,166,620 310,375 420,545 124,466 71,508 698,347 184,319 53,923 101,748 66,217 217, 590 Feb. 4 4,745,246 292,459 2,200,084 314,1791 424,434 122,302 71,191 698,146 185,680 54,195 100,402 67,384 214,790 Feb. 11 4,742,220 298,060 2,175,753 315,317' 423,873 127,185 72,894 695,317 188,850 57,757 102,010 69,705 215,499 All other loans and discounts— i Jan. 21 1 8,192,860 666,492 2,619, 357, 598 722,980 341,465 367,218 1,200, 726 316,548 209,470 332,139 232, 564 826,345 Jan. 28__ I 8,163,152 661,254 2, 573,874 354, 676 724,459 346, 795 367,57911,205,918 317, 579212,318 334, 629233,625 830,446 Feb. 4 8,183,713 662, 668 2,574, 604 354,307 726,375 348,877 374,01311,213,792 313,742 208, 569 336,322 235,652 834,792 Feb. 11. 8,181,533 659,809 2, 538, 796 358,432 735,325 347,779 374,256 1,221,117| 314,800 206,124 239,316 846,894 Total loans and discounts- Jan. 21 13,087,013 967,967 4,854,936 681,654 1,, 159,748472,148 445,9321,, 941,532510,231 266,901 433,186 302,204 1:, 050,574 Jan. 28. _ 13,651,420 961,052 J4,804, 961 675,574 1,;164,422 477,134 446,7301, 937,474513,345 269,060 440,650 303,580 1,057,438 Feb. 4.. |13,113,313 963,76614,840,880 678, 948 1,, 169,743477,592 452,8621;, 945, 732511,671 265.550 440,867 306,746 1, 058,956 Feb. 11 113,114,734 966,356 4,785,377 684,38611,,178,330 484,095 454, , 949,789515,684 266,614 445,085 312,685 1,071,730 U. S. pre-war bonds: Jan. 21- 260,709 13.474 53,124 10, 568! 45,419 25,714 14,958 21, 670 14,341 8,206 18, 248 25,003 Jan. 28 261,018 13.475 53,122 10, 568 i 45, 231 25,714 15,058 21, 671 14,341 8,206 18, 648 25,000 Feb. 4 232,192 10,658 44,417 9,568 32,050 25, 716 14,968 20, 272 13,775 7,801 9,545 17, 545 25,877 Feb. 11 224,879 10, 683 37,674 9,568 32,031 25,341 15,078 19,655 13,775 7,911 9,535 17,744 25,884 U. S. Liberty bonds— Jan. 21 1,402,629 81,484 53,446 184,408 37,176 8,611 163, 519 27,637 26,539 42,771 14,035 124,513 Jan. 28 1 1,394,042 81,200 635,781 53,401 174,938 37,793 10,120 163,668 27,749 25,917 42,934 13,981 126,560 Feb. 4 1,389,377 80,213 635,045 53,544 168, 503 38, 111 8,623 164,722 26. 387 25,920 43,166 13,985 131,158 Feb. 11.. 1,381,615 79, 625 626,214 50,376 171,199 37,954 7,973 167,190 25,348 25,932 43,078 14,263 132,463 U. S. Treasury bonds: Jan. 21__ 375,472 17,531 170,352 26,421 26,474 5,013 2,839 6,376 9,385 13,117 5,557 43,518 Jan. 28 365,913 17,422 154,721 26,040 30,015 4,835 2,499 49,133 6,908 9,385 12,721 5,857 46,377 Feb. 4 360,192 17,125 156,557 15, 933 30,006 5,058 2,511 51,2861 7,903 9,885 12,316 5,907 45,705 Feb. 11 ! 349,133 16,832 147,135 14,497 29,313 4,925 3,111 8,427 9,953 13,022 5,886 45,149 U.S. Treasury notes: Jan. 21 ! 520,150 238, 676 20,941 56,081 2, 2,494 102,981 12,080 18, 973 20, 835 9,457 26,490 Jan. 28 510,421 8,450 229,512 21,058 55, 695 2,653 1,987 102,094| 12,061 18,973 20, 578 9,450 27,910 Feb. 4 509,432 8,701 228, 540 21,024 55,806 2,475 2,486 12,066 19,074 20, 540 9,477 26,454 Feb. 11 516,875 8,552 239,189 21,0731 56, 385 2,357 2,857 11,978 19,074 20,499 9,176 26,807 U. S. Treasury certificates: Jan. 21 150,713 1,764 84, 253 7,452 8,146 444 2,037 16, 596 1,658 6,320 2,97, 2,176 16,892 Jan. 28 124,624 1,763 58,324 7,449 8,167 430 2,037 17,2391 1,651 6,320 3,665 2,183 15,396 Feb. 4 119,542 1,764 56,048 7,618 6,913 430 14, 639 1,620 5,720 3,664 2,238 16,900 Feb. 11 118,562 1,753 56, 599 7,518 7,065 430 l| 209 14,059 1,713 5,720 3,857 lr~' 16, 653 Other bonds, stocks, and securities: Jan. 21 2,838,135 193, 621 1,,094,975 257, 540 348,915 64, 523 41,240 416,129 103,941 36, 608 72,330 21, 286 187,027 Jan. 28 2,832,427 194,097 1:, 081,101259, 502 348,920 63,645 41,828 419,976 104,665 36, 651 72,147 21, 535 188,360 Feb. 4 - 2,842,484 194,004 1., 072,759256,172 355,462 62,054 41, 288 433, 737 102, 796 36,907 73,073 21,277 192,955 Feb. 11 2,841,013 193,860 1, 074,247 257, 732 348,319 61, 743 41,459 437,829 101,886 37,240 72,193 20,198 194,307 Total investments: Jan. 21 5,547,808 316,323 2, 279,870 376, 368 669,443 135, 563 72,179 769,784 166,033 106,031 162,012 70, 759 423,443 Jan. 28 5,488,445 316,407 2,212, 561 378,018 662,966 135,070 73, 529 773,781 167,375 105,452 162,029 71, 654 429,603 Feb. 4 5,453,219 312,465 2,193,366 363,859 648,740 133,844 71,864 787,445' 164,547 105,307 162, 304 70,429 439,049 Feb. 11 5,432,077 311,30512,181,058 360, 764 644,312 132, 750 71, 687 788,544 163,127 105,830 162,184 69,253 441, 263 Total loans and investments: k Jan. 21 18,634,821 1, 284,290 ,71,34,806 1,0058,022 1,829,191607, 711 518, 111 2,711, 316 676, 264372,932 595,198 372,963 , 474,017 Jan. 28 - 18,539,865 1, 277,445599 7 ,70,17, 522 10,503, 592 1,827,388 612,204 520,259 2, 711, 255| 680, 720374,512 602,679 375,234 , 487,041 Feb. 4 18,566,532 1, 276,231 ,,70,3,4j, 246, j0 41,20,807 1 611,436 524, 72612,733,177 676,218370,857 603,171 377,175 , 498, 005 Feb. 11.... 18,546,811 1, 277,6 6616 16 ,6996666,443355JJ11,0045,150 1,822,642616,845 526,290 2, 738, 333 678,811372,444 607,269 381,938 , 512,993 Reserve balances with Federal reserve banks: Jan. 21 1,602,152 91,546 724,577 80, 535 117, 609 41,040 239,136 46,982 27,686 54,395 32,913 107,007 Jan. 28 1,639,647 95,818 759, 741 81,022 126,159 40, 237 38,085 230, 515 51,167 27, 524 52, 242 28,799 Feb. 4 1,655,453 769,050 80,196 130,020 41,284 37,473 228,647 52,207 27,493 57,081 31,154 110,989 Feb. 11 1,651,126!' 96,103 774,169 74,132 122,1221 39,156 37, 953 235, 279 47,524 28,275 56,513 32,694 107,206 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

MARCH., 1925 FEDERAL RESERVE BULLETIN" 213 PRINCIPAL RESOURCES AND LIABILITIES, BY WEEKS—Continued [In thousands of dollars] Federal reserve district 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 Ri o c n h d - Atlanta Chicago L S o t u . is M ap i o n l n is e- K C a i n t s y as Dallas Fra S n a c n isco Cash in vault: Jan. 21 286,092 20,471 79,764 15,806 31,012 14,087 11, 263 54,891 7, 870! 6,126 12.122 10,693 21,987 Jan. 28 279,486 20,085 78,421 15, 759 29, 388 13,084 10,876 53,005 7,444 5,981 12, 255 10,428 22, 760 Feb.4 278,070 20,283 80,034 14,931 29,125 13, 589! 11, 043 52, 779 7, 593! 5, 625 10, 941 10,495 21, 632 Feb. 11 294,532 21, 293 89,044 17,813 29,895 13, 659i 11,002 53, 955 7,406! 5,! 12.123 10,615 21,867 Net demand deposits: Jan. 21 _ 13,143,171 896,871 5,808,806 765, 752 1, 019,139 364,430 313,051 1.,, 751, 384 416, 684 254,360 487,473 281, 643 783, 578 Jan. 28 13,013,949 887, 543 55,, 771177,, 669922 759I, , "5 14' J1.,, 014, 240 366,8371 309I,, 558. ,1 732, 588 421,495 252,176 488,875 279,282 784,149 Feb. 4 13,039,813 877,122 55,, 772255,,111133 745>,, 319 .1, ,014, 724 370,680 312!,, 599. ,1 7,52,548 419,244 248,205 492,204 283,065 798,990 Feb. 11 13,093, 391 885,766,5, 701, 992 749>,, 080 .,1 ,022,483 376,939! 327,, 182 L1,. 767, 508424,690 249,690 496,849 286,599 804,613 Time deposits: Jan. 21 4,868, 758 326,4711,153,177 179,335 698,338 182,9331 189,219 920,549 212,366 102,825 136,080 92,149 675,316 Jan. 28 4,875,615 326,364 1,140,890 178,470 698,843 183,234 189,460 921,035 214,156 103,612 135,879 92,794 690,878 Feb. 4 4,899, 797 3331,,671 1,132,614 180,264 707,452 185,780 189,737 923,669 213,701 104,444 136,294 93,925 698,246 Feb. 11... 4,924, 543 336i,, 622 1, 139,846 179,502 707,648 186,733 189,950 930,133 213,603 105,503 136,459 95,703 702,841 Government deposits: Jan. 21 135,454 26,079 30,676 13,811 14,281 3,068 3,711 21,276 7,286 1,850 2,142 10,276 Jan. 28 135,670 26,080 30,676 13,811 14,281 3,068 3,703 21,276 7,281 1,854 2,143 10,499 Feb. 4 133,850 26,080 30,676 12,000 14,244 3,068 3,703 21,276 7,281 1,853 2,172 10,499 Feb. 11 _ 113,437 22, 516 25,096 10,572 11,439 2,136 2,939 21,000 6,469 1,602 657 1,648 7,363 Bills payable and rediscounts with Federal reserve banks: Secured by XJ. S. Government obligations- Jan. 21.... 39, 568 1,300 18,331 2,210 3,020 1,505 488 10,430 150 234 1,900 Jan. 28... 97,083 3,360 55,220 2,475 13,145 1,675 57 15,629 57 5,465 Feb. 4 153,265 1,760 109,615. 3,47, 16,364 1,824] 57 14,501 1 18 5,650 Feb. 11 129,933 2, ' 97,485! 3,155 12, 663 1,4441 57 10,315 200 15 67 50 1,650 All other- Jan. 21 25,474 1,070 2,750|_ 5,591 6,411 4,125 877 488 145 2,403 1,614 Jan. 28 32,228 1,764 8,070] 835 3, 7,756 4,939 699 406 46 75 2,311 1,334 Feb. 4 29,667 957 4,8711 3,425 4,214 7,941 3,218 593 904 269 2,081 1,194 Feb. 11 63,651 3,734 31,685| 3,405 4,807 6,399 2,930 614 203 "l79 1,297 8,273 REPORTING MEMBER BANKS IN 12 FEDERAL RESERVE BANK CITIES—BANKERS' BALANCES [In thousands of dollars] City Total (12 cities) Boston Y N o ew rk d P e h lp il h a i - a C l l a e n v d e- m Ri o c n h d - Atlanta Chicago L S ou t. is M ap in o n li e s - K C an it s y as Dallas F S ra an n - • cisco Due to banks: Jan. 21 2, 550,924 142,4581, 189, 521 199,099 54,127 40,269 19,760 423,270 113,706 72,166 131,464 45,600 119,484 Jan. 28 2,435,488 134:, ,6"6-0 -'1,130,659 191,209 51,400 37,305 20,102 412,414 108,112 68,914 128,940 44,231 107,542 Feb.4 2,525,869 1391,,779 1,181,823 192,963 51,849 38,158 20,280 427,300 108,440 69,458 131,064 48,280 116,475 Feb. 11 2, 540,802 132!,, 020 1,213,425 189,089 51,142 40,536 20,721 416,546 108,762 69,892 132,461 47,921 118,287 Due from banks: Jan. 21 666,606 44,284 94,077 72,193 25,104 17,226 18,858 158,071 43,442 21,562 51,971 33,781 86,037 Jan. 28 627,682 35,065 96,733 64,573 27,208 14, f 20,975 152,192 36,374 16,850 54,389 34,794 73,534 Feb. 4 632,577 36,449 95,502 63,667 23,595 17,105 16,724 158,962 38,329 21,003 51,873 33,773 75,595 Feb.11. 645,886 34,289 98,579 67,032 23,687 16,681 18,560 158,466 37,973 24,341 48,995 36,014 81,269 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

214 FEDERAL RESERVE BULLETIN MARCH, 1925 REPORTING MEMBER BANKS IN NEW YORK CITY AND CHICAGO—PRINCIPAL RESOURCES AND LIABILITIES, BY WEEKS [In thousands of dollars] Banks in New York City Banks in city of Chicago Jan. 21 Jan. 28 Feb. 4 Feb. 11 Jan. 21 Jan. 28 Feb. 4 Feb. 11 Number of reporting banks 67 67 67 67 46 46 46 46 Loans and discounts, gross: Secured by United States Government obligations 68,970 60,022 61,250 65, 989 25,523 26,066 26,618 25,931 Secured by stocks and bonds 1,941,911 1,951,085 1,979,355 1, 950,125 532,008 528,012 525,944 524,221 All other loans and discounts 2,322,920 2,276, 797 2,277,464 2, 241,079 699,562 701,480 697,387 705,918 Total loans and discounts | 4,333,801 4,287, 904 4,318,069 4,257,193 1,257,093 1,255, 558 1,249,949 1,256,070 United States pre-war bonds __ 42,597 42,595 34,440 27,147, 4,066 4,067 3,853 3,838 United States Liberty bonds. 541,425 538,023 538,549 527,048 81,369 81, 276 82,100 83,187 United States Treasury bonds 153,580 138,248 139,999 131,301 28,519 28, 525 27, 993 27,800 United States Treasury notes 220,890 211, 726 210, 755 221,247 74, 557 73,600 75,148 71,360 United States Treasury certificates.. 82, 640 56, 711 54, 435 54,986 10,996 11, 603 9,142 8,552 Other bonds, stocks, and securities. 829,683 814,021 807,962 200,021 201,976 216,720 220,861 Total investments 1,870,815 1,801,324 1,786,140 ! 1,768,277 399,528 401,047 414, 956 415,598 Total loans and investments.. 6, 204,616 6,089,228 6,104,209 6,025,470 1,656, 621 1,656,605 1,664,905 1, 671,668 Reserve balances with Federal reserve bank..! 670,832 702,173 713,405 720,061 170,595 159,620 158,145 156,473 Cash in vault ! 64,864 64,227 65,596 72,241 28,386 26,507 27,001 27,320 Net demand deposits _ 5,267,842 5,185, 734 5,185, 759 5,153,810 1,183,392 1,171,409 1,178,314 1,171,996 Time deposits I 804,960 793,810 785,148 791,012 454,119 454,812 456,408 460,354 Government deposits ' 20,499 20,499 20,499 16,279 16,096 16,096 16,096 14,343 Bills payable and rediscounts with Federal reserve bank: \ Secured by United States Government i I obligations.. _ _ | 7,350 39,150 91,200 77,300 870 2,965 840 1,420 All other.. ! 1,011 6,228 3,528 30,277 173 190 100 Total borrowings from Federal reserve i bank.. _ _j 8,361 45,378 ! 94,728 107,577 1,043 2,965 1,030 1,520 ALL MEMBER BANKS—DEPOSITS. BY FEDERAL RESERVE DISTRICTS AND BY SIZE OF CITY Net demand deposits Time deposits Federal reserve district 1924 1925 1924 1924 1925 1924 Oct. 29 Nov. 26 Dec. 24 Jan. 28 Jan. 23 Oct. 29 Nov. 26 Dec. 24 Jan. 28 Jan. 23 Boston 1,385,832 1,327,141 1,299,657 1,330,862 1,233,878 704,918 694,406 685,226 702,350 606,068 New York _ 6,348,865 6,496, 559 6,527,806 6,383,028 5,383,722 2,026,426 2,066,104 2,018,700 2,041,042 1, 699,871 Philadelphia 1,144,321 1,151,727 1,129,471 1,139,390 1,037,462 753,331 765,488 759,663 777,518 664,436 Cleveland. __ 1,483,196 1,486,119 1,468,404 1,486,655 1,382,490 1,263,367 1,269,256 1,245,613 1,272,991 1,142,992 Richmond 570,215 585,396 581,375 594,503 589,933 482,159 483,033 478,845 443,304 Atlanta 516,106 540,472 561,575 585,609 519,276 350,041 350,961 348,636 356,070 318,538 Chicago... 2,411,790 2,352, 603 2,344,909 2,380,790 2,122,350 1,682,211 1,723,047 1,729,770 1,735,739 1,564,897 St. Louis 668,086 690,224 710,319 732,021 655,261 431,116 436,085 429,809 438,340 398,521 Minneapolis _ 475, 674 503, 546 493,540 481,231 400,884 416,047 420,176 425,748 434,954 409, 569 Kansas City 830,032 858, 629 861,150 739, 111 298,851 300,293 296,288 300,970 293,686 Dallas 609,594 641,603 670,487 660,847 624, 577 159,889 158,722 158,107 160,584 151, 263 San Francisco 1,320,788 1,322,964 1,310,823 1,291,093 1, 253,902 1,106,225 1,128,308 1,150,727 1,171,200 1,000, 648 Total 17, 764,499 17,946,742 17,956,995 i 17,927,179 15,942,846 9, 674, 581 9,795,879 9, 727,132 9,878,624 8,693,793 Banks in cities and towns having a population of— Less than 5,000 1,678,287 1, 689,928 1,673,199 1,626,219 1,633,480 1,640,059 1,636,887 1,668,381 1,569,463 5,000 to 14,999 1,066,959 1, 076; 740 1,080,944 1,081,342 1, 073,144 1,039, 513 1,045,668 1,042,716 1,062,598 981,949 15,000 to 99,999... 2,093, 059 2,132,304 2,144,113 2,170,162 2,046,474 1,958,130 1,967,007 1,957,014 1,990,335 1,807,711 100,000 and over 12,926,194 13,039,022 13,042,010 |13,002,476 11,197, 009 5, 043, 458 5,143,145 5,090,515 5,157,310 4,334,670 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

MARCH, 1925 FEDEKAL RESERVE BULLETIN 215 ALL MEMBER BANKS—CONDITION ON DECEMBER 31, 1924 ALL MEMBER BANKS (8,043 NATIONAL BANKS AND 1,544 STATE BANKS AND TRUST COMPANIES)—ABSTRACT OF CON- DITION REPORTS ON DECEMBER 31, 1924, BY FEDERAL RESERVE DISTRICTS [In thousands of dollars] D N i ( s 4 o t 1 . r 9 i 1 ct D N i ( s 8 o t 5 . r 5 i 2 ct D N i ( s 7 o t 3 . r 8 i 3 ct D N i ( s 8 o t 7 . r i 1 4 ct D N i ( s 6 o t 1 . r 7 i 5 ct D N i ( s 5 o t 1 . r 0 i 6 ct D N ( i 1 s o , t 4 . r 0 i 7 c 8 t D N i ( s 6 o t 2 . r 4 i 8 ct D N i ( s 8 o t 8 . r 5 i 9 ct D N ( i 1 o s ,0 . t r 6 1 i 6 c 0 t D N i ( o s 8 . t 2 r 1 8 ic 1 t D N i ( o s 7 . t 6 r 1 6 ic 2 t U S T n t o a i t t t a e e l s d banks) banks) banks) banks) banks) banks) banks) banks) banks) banks) banks) b ( a 9 n ,5 k 8 s 7 ) RESOURCES Loans and discounts. 542,0195,899,017 ,289,050 L, 901,848 959,432 814,311 ,036,546 883,295 629,831 799,505 643,210 ., 767,537 20,165,601 Overdrafts 512 1,499 283 791 668 1,738 2,196 1,828 643 1,333 2,303 1,914 15,708 United States Government securities.. 243,138 [, 323,614 258,029 137,000 81,419 526,141 135,632 143,873 151,171 101,266 363,112 3,902,793 Other bonds, stocks, and securities 386,624 L, 624,815 622,402 592,570 130,698 102,962 655,289 205,593 132,465 128,879 43,805 316,384 4,942,486 Total loans and investments 173,293 8,848,9452,169,764 !, 933,607 ,227,798 ,000,430 ,220,1721,226,348 906,812 ,080,888 790,5842,448,947 29,026,588 Customers' liability on account of acceptances 56,836 297,440 18,385 8,584 13,218 10,102 34,613 844 3,131 1 4,087 14,495 461,736 Banking house, furniture, and fixtures. 61,686 157,866 61,689 118,331 50,507 45,714 129,979 36,055 25,528 41,068 38,833 93,358 860,614 Other real estate owned 6,877 10,690 8,455 18,095 11,256 10,508 24,301 8,239 15,219 15,674 13,870 17,949 161,133 Cash in vault 49,344 130,090 47,682 63,941 30,608 27,845 98,223 24,441 21,846 29,905 25,825 47,722 597,472 Reserve with Federal reserve banks 63,489 Items with Federal 140,840 885,556 129,361 163,593 69,632 314,698 80,758 55,513 65,708 164,529 2,227,569 reserve banks in Du p e ro c f e r s o s m o f c b o a lle n c k ti s o , n. 63,221 214,662 66,350 64,127 45,310 84,666 44,452 8,920 37,635 34,196 35,304 724,926 bankers, and trust Ex c c o h m an p g an es ie s fo . r clear- 102,551 203,212 119,997 169,935 109,057 161,860 365,987 153,630 151,229 313,260 214,390 274,380 2,339,488 ing house, also checks on other banks in same place 56,178 ,416,754 66,722 54,217 32,186 26,547 138,430 28,828 12,891 24,959 18,052 59,350 1,935,114 Outside checks and other cash items 9,172 32,350 5,713 8,690 4,410 6,528 17,827 3,753 6,813 7,341 4,332 26,737 133,666 Red e m p t i o n fund and due from United States Treasurer 2,661 4,912 2,946 5,000 3,194 2,153 4,538 2,139 2,058 2,297 2,717 36,284 United States securities borrowed 1.._. 418 170 5,741 6,470 4,519 465 68 19,087 Other securities borrowed l 123 50 2,238 60 11 59 2,541 Other assets 296,303 14,982 15,961 6,133 10,881 34,423 4,336 3,798 4,318 4,421 25,125 4W, 649 Total. 2,762,045 12,498,780 2,712,216 3,629,945 1,603,848 1,392,821 5,476,5651,618,402 1,213,434 1,651,010,0217,071 3,210,740 38,986,867 LIABILITIES Capital stock paid in. 141,561 492,359 138,723 212,830 112,277 94,570 291,912 110,203 70,135 95,538 93,04^ 184,326 2,037,481 Surplus fund 125,134 505,620 228,611 218,485 83,832 56,983 219,728 58,936 37,001 44,869 42,442 85,845 1,707,486 Undivided profits, less expenses and taxes paid. 72,226 269,144 74,404 82,026 32,905 21,419 105,395 27,03: 17,914 18,250 17,963 48,076 786,759 Due to Federal reserve banks.. 14,32C 5,122 2,312 10,676 1,538 1,751 228 42 2,070 592 43,648 Due to banks, bankers, and trust corn- 170,2851,650,222 238,277 278,955 138,142 170,680 622,272 222,398 169,065 359,079 207,109 277,831 4,504,315 Certified and cashiers' or treasurers' checks outstanding. 24,941 777,158 16,954 51, 778 16,037 10,334 46,470 13,049 14,178 32,485 29,558 49,489 1,082,431 Demand deposits... 1,303,345 5,960,703 1,076,816 1.,, 314,913580,517 557755,,3"0"9 2,1L8899,,997777 663,025 424,828 747,239 608,250 1,,2 53399,,111166 166,,668844i,038 Time deposits 685,8755 2,011,599 774,356 l!, 246,764 483,072 359,373 1.732,371 431,261 430,315 295,985 150,856 1,202,911 9,80'4,738 United States deposits 36,150 5_0.,,5.3.8 25,549 22,816 12,472 7,904 35,548 13,823 6,321 6,538 6,382 18,441 242,482 Total deposits 2,225,584 10,464,541 2,137,074 !, 917,538 1,240,916 1,125,138 4,628,389 1,343,784 1,044,716 1,441,368 1,004,225 2,788,380 32,361,652 Bills payable (including all obligations representing money borrowed other than rediscounts).. 26,126 89,763 36,014 42,733 27,824 11,104 24,789 8,859 2,146 1,559 4,452 13,884 289,253 Notes and bills rediscounted (including acceptances of other banks and foreign bills of exchange or drafts sold with indorsement) 52,24S 190,592 12,417 19,469 22,691 18,675 27,078 5,936 4,238 4,697 2,04C 7,407 367,490 Cash letters of credit and travelers' checks outstanding 17, or 205 373 250 42 2,048 48 35 58 776 21,709 Acceptances executed for customers 56,1L 292,521 15,249 8,708 12,667 16,54C 35,247 857 2,825 64 4,062 15,524 460,383 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

216 FEDERAL RESERVE BULLETIN MARCH, 1925 ALL MEMBER BANKS (8,043 NATIONAL BANES AND 1,544 STATE BANES AND TRUST COMPANIES)—ABSTRACT OF i CONDITION REPORTS ON DECEMBER 31, 1924, BY FEDERAL RESERVE DISTRICTS—Continued [In thousands of dollars] D b N a i ( s 4 n o t 1 . k r 9 i s 1 c ) t D b N a i (8 s o n t 5 . k r 5 i s 2 c ) t D b N a i ( s 7 o n t 3 . k r 8 i s 3 c ) t D b N a i ( s 8 o n t 7 . k r 1 i s 4 c ) t D b N a i ( s 6 n o t 1 . k r 7 i s 5 c ) t D b N a i ( s 5 o n t 1 . k r 0 i s 6 c ) t D b N ( a 1 is o n ,4 t . k r 0 i s 7 8 c ) t D b N a i (6 s o n t 2 . k r 4 i s 8 c ) t D b N a i ( s 8 o n t 8 . k r 5 i s 9 c ) t D b N ( a 1 i o s n , . 0 t k r 6 i 1 s 6 c 0 ) t D b N a i ( o s 8 n . t 2 k r 8 1 i s c 1 ) t D b N a i ( o s 7 n . t 6 k r 6 1 i s c 2 ) t U b S T ( a 9 n t o n , a 5 i t k t t 8 a e e s 7 l s d ) LIABILITIES—COn. Acceptances executed by other banks for account of reporting banks 3,862 24,662 4,150 29 1,468 621 l,833i_ 306 391 37,322 National bank notes outstanding 52,444 96,453 57,914 98,881 61,374 42,610 90,285! 42,492 32, 744 40,534 45,279 53,323 714,333 United States securities borrowed 547 2,008 815 17,344 4,927 1,691 9,246 6,720 261 1,425 1,153 1,880 48,017 Other securities borrowed._- 27 50 100 404 305 1,294 2, 287 76 540 180 683 5,946 Other liabilities 5,331 54,046 6,540 11,125 2,412 2,134 38,328! 13,454 1,113 2,098 2,210 10,245 149,036 Total 2, 762,045 12,498,780 2,712,216 3,629,945 1,603,848J1, 392,821 5,476, 565 1,618,402 1, 213,434 1, 651,000 1,217,071 3,210, 740 38,986,867 1 Exclusive of securities borrowed by national banks. ALL MEMBER BANKS (8,043 NATIONAL BANKS AND 1,544 STATE BANKS AND TRUST COMPANIES)—ABSTRACT OF CON- DITION REPORTS ON DECEMBER 31, 1924, BY CLASSES OF BANKS [ In thousands of dollars] Central reserve city banks Other Total United States reserve Country city banks New York Chicago Total banks (8,948 Dec. 31, Oct. 10, (66 banks) (24 banks) (90 banks) (549 banks) 1924 (9,587 1924 (9,635 banks) banks) banks) KESOURCES Loans and discounts ... 4,381,023 1,163,949 5,544,972 7,161,802 7,458,827 20,165,601 19,801,388 Overdrafts 1,104 378 1,482 4,421 9,805 15,708 18,510 United States Government securities—_ 974,021 180,131 1,154,152 1,353,239 1,395,402 3,902,793 3,894,620 Other bonds, stocks, and securities. 797, 537 162,115 959,652 1,463,637 2,519,197 4,942,486 4, 736,126 Total loans and investments _ 6,153,635 1,566,573 7,660, 358 9,983,999 11,383,331 39,936,588 38,450,644 Customers' liability on account of acceptances 294,680 32,833 327,513 119,628 14,595 461, 736 330,716 B anking house, furniture, and fixtures - 89, 521 26,926 116,447 339,382 404,785 860, 614 843,077 Other real estate owned _ 2,866 74 2,940 52,648 105,545 161,133 158,641 Cash in vault 72,627 25,520 98,147 178,538 320,787 597,472 527,889 Reserve with Federal reserve banks.. 738,911 162,709 901,620 726,462 599,487 2,227,569 2,121,428 Items with Federal reserve banks in process of collection.. 159,458 40,935 200,393 419,234 105,299 724,926 613,494 Due from banks, bankers, and trust companies 73, 644 129,600 203, 244 968,035 1,168, 209 2,339,488 2,430,462 Exchanges for clearing house, also checks on other banks in same place 1,390,441 88, 531 1,478,972 367,398 88,744 1,935,114 1,091,300 Outside checks and other cash items 24,163 6,547 30,710 71,330 31,626 133, 666 100,551 Redemption fund and due from United States Treasurer.. 2,034 142 2,176 8,610 25,498 36,284 36, 701 United States securities borrowed * 11,796 7,291 19,087 18,060 Other securities borrowed 1 1 412 2,128 2,541 1,954 Other assets 285, 272 309,170 113,617 37,862 460,649 378,953 Total. 9,287,302 2,044, 289 11, 331,591 13,360,189 14, 295,087 38,986,867 37,103,870 LIABILITIES Capital stock paid in 336,300 89,400 425,700 685,541 926,240 2,037,481 2,034,943 Surplus fund 379,205 88,077 467,282 584,878 655,326 1,707,486 1,682,646 Undivided profits, less expenses and taxes paid 200,093 50,163 250,256 239,631 296,872 786, 759 876,516 Due to Federal reserve banks 265 265 10,232 33,151 43,648 36,508 Due to banks, bankers, and trust companies 1, 547,432 399,643 1,947,075 2,041,306 515,934 4,504,315 4,453,412 Certified and cashiers' or treasurers' checks outstanding... 759,540 23,784 783,324 204,887 94,220 1,082,431 653,342 Demand deposits 4,616,670 953,740 5,570,410 5,440,203 5,673,425 16,684,038 15,729,597 Time deposits 775,270 342,099 1,117,369 3,435,102 5,252,267 9,804,738 9,597,395 United States deposits 28,591 17,724 46,315 146,219 49,948 242,482 301,803 Total deposits 7,737,768 1,736,999 9,464,758 11,277,949 11,618,915 33,361,653 39,773,057 Bills payable (including all obligations representing money borrowed, other than rediscounts) 43,651 225 43,876 104,971 140,406 289,253 167,483 Notes and bills rediscounted (including acceptances of other banks and foreign bills of exchange or drafts sold with indorsement) 180,259 7,125 187,384 85,482 94,624 367,490 265,264 Cash letters of credit and travelers' checks outstanding 16,964 1,897 18,861 2,627 221 21,709 22,514 Acceptances executed for customers 290,128 34,472 324,600 122,771 13,012 460,383 328,526 Acceptances executed by other banks for account of reporting banks 24, 294 1,638 25,932 9,384 2,006 37,322 28,532 National bank notes outstanding 39,884 2,843 42,727 168,637 714,333 723,039 United States securities borrowed 995 995 26,072 20,950 48,017 46,786 Other securities borrowed _ 1 1 1,331 4,614 5,946 » 5,535 Other liabilities _ 47,761 31,458' 79,219 50,915 18,902 149,036 150,029 Total....: 9,287,302 2,044,289 11,331,591 13,360,189 14,295,087 37,103,870 Ratio of reserve with Federal reserve bank to net deposit liability (per cent) 13.3 13.4 13.3 10.1 7.5 10.1 10.0 * Exclusive of securities borrowed by national banks. 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217 MARCH, 1925 FEDERAL RESERVE BULLETIN STATE BANK AND TRUST COMPANY MEMBERS—ABSTRACT OF CONDITION REPORTS OF BANKS ON DECEMBER 31, 1924, BY FEDERAL RESERVE DISTRICTS [In thousands of dollars] Dis- Dis- Dis- Dis- Dis- Dis- Dis- Dis- Dis- Dis- Dis- Dis- Total trict trict trict trict trict trict trict trict trict trict trict trict United No. 1 No. 2 No. 3 No. 4 No. 5 No. 6 No. 7 No. 8 No. 9 No. 10 No. 11 No. 12 States (36 (144 (72 (119 (62 (128 (353 (132 (100 (33 (183 (182 (1,544 banks) banks) banks) banks) banks) banks) banks) banks) banks) banks) banks) banks) banks) RESOURCES Loans and discounts _.. 506,006 2,917,023 281,723 893,647 154, 768 , 360,927336,640 54,161 67,873 66,113 921,796 ', 849, 546 Overdrafts _. 191 957 98 238 152 1,054 643 1,061 77 63 563 818 5,915 United States Government securities _ 70,413 584,669 65,178 115,027 7,547 7,341 233,051 45,136 8,047 14,821 3,024 165,037 ., 319,291 Stock of Federal reserve banks 2,157 13,193 3,009 5,495 975 1,495 6,507 1,990 290 358 3,450 39,396 Other bonds, stocks, and 477 securities _ 110,926 665,576 179,315 216,434 22,884 29,932 349,717 83,828 13,662 9,122 143,565 ,828,325 Total loans and invest- 3,364 ments 689,693 4,181,418 539,333 1,,239,841 186,326 328,6911,950,845 468,655 76,237 92,237 234,66611,042,473 Customers' liability on ac- 73,5411, count of acceptances 8,958 158,609 278 5,498 4,351 8,023 23,590 91 7,585 217,008 Banking house, furniture, 25 and fixtures 12,944 81,345 16,228 49,301 17,683 53,199 14,771 2,056 2,862 48,782 309,439 Other real estate owned 2,281 5,049 3,123 10,462 1,995 4,723 6,796 3,392 1,747 1,775 3,781 8,264 52,177 Gold and gold certificates 1,370! 10,956 433 653 126 239 2,958 452 131 105 2,570 896 18,420 All other cash in vault 14,110; 47,990 8,024 4,515 7,342 33,389 8,045 2,122 1,254 101 19,060 170,785 Reserve with Federal reserve 21,754 3,180 banks 44,203 414,911 29,327 11,059 20,572 126,842 29,402 4,383 8,587 74,740 833,183 Items with Federal reserve 62,331 6,826 bank in process of collection. 15, 634 97,340 14,040 9,124 8,616 27,618 18,055 457 7, 10,923 237,993 Due from banks, bankers, 27,288 1,250 and trust companies. _ 23,109J 95, 769 17,750 16,284 46,563 113,387 45,505 11,939 27,882 91,113 560,983 Exchanges for clearings house, 45,980 25,702 also checks on other banks in same place 16,429 670,057 11,771 28,685 6,535 14,323 63,375 13,607 773 3,477 1,315 23,174 853,521 Outside checks and other cash items 1,933 19,408 663 572 3,154 9,115 1,661 241 1,252 655 18,318 63,055 United States securities borrowed __. 418! 170 5,741 539 631 6,470 4,519 65 465 68 19,087 Other securities borrowed 123 50 2,238 60 11 59 2,541 Other assets 9,855 156,930 7,427 10,096 1,780 9,443 18,337 2,890 225 14,454 237,211 2,535 Total _ 840,937 5,939,782 638,5571,504,836 249,693 470,053 2,438,159 611,105 100,376 150,319 121,957 1,552,102 14,617,8 LIABILITIES Capital stock paid in 33,0001 232,276 40,165 85,265 19,123 31,410 112,609 40,280 6,692 8,610 11,810 82,205 703,445 Surplus fund ^_ 39,495 199,005 72,906 101,367 13,878 107,006 24,598 2,812 3,308 3,510 32,983 619,266 Undivided profits, less expenses and taxes paid 18,710| 119,856 24,631 25,075 4,636 6,197 49,529 8,205 1,674 1,142 22,675 Due to Federal reserve banks. 728 3,767 1,525 1,077 1,883 674 627 44 1,365 13 90 32 10,460 Due to banks, bankers, and trust companies 24,470 645,815 30,623 85,081 24,967 69,249 152,639 63,646 42,151 9,570 80,116 1,235,623 Certified and cashiers' or 7,296 treasurers' checks outstanding 10,720 363,875 5,737 32,189 5,461 4,496 22,330 7,358 936 3,448 2,133 24,519 483,202 Demand deposits.- 444,290 3,004477i,654 285,027 496,009 93,138 190,267 862,228 239,689 34,846 68,577 79,163 484,975 Time deposits 923,937 152,457 638,686 71,646 116,3951,,024,332 196,342 45,311 20,338 12,800 786,414 4,224,966 United States deposits 4,817 24,908 10,680 8,834 858 2,802 19,009 8,057 392 919 4_2_ 1_0_,,1__2.3. 91,441 Total deposits _ 721,333 5»,, 009,956486,0491,261,876 197,953 383,883 2!,, 081,165515,136 88,781 135,446 103,798 1,386,179 12,371,555 Bills payable (including all obligations representing money borrowed other than rediscounts) 3,364 26,435 8,694 10,479 4,503 5,055 13,241 4,125 327 80 709 9,937 86,949 Notes and bills rediscounted (including acceptances of other banks and foreign bills of exchange or drafts sold with indorsement) 12,681 122,763 1,549 4,121 4,165 9,319 11,209 2,252 287 184 12B 2,443 171,094 Cash letters of credit and travelers' checks outstanding 14,642 121 93 41 11' 31 4 532 15,589 Acceptances executed for customers 8,557 162,379 118 5,498 4,214 13,759 22,686 104 7,836 225,151 Acceptances executed by other banks for account of reporting banks 878 9,069 160 448 51 151 10,758 United States securities borrowed 418 170 5,741 539 631 6,470 4,519 465 19,087 Other securities borrowed 123 50 2,238 60 11 59 2,541 Other liabilities 2,501 43,401 3,994 5,198 227 1,259 31,888 11,795 1,012 390 7,034 108,746 Total _ 840,937 5,939,782 638,5571,504,836 249,693 470,053 2,438,159 611,105 100,376 150,319 121,9571, 552,102 14,617,876 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

218 FEDERAL RESERVE BULLETIN MARCH, 1925- STATE BANK AND TRUST COMPANY MEMBERS—ABSTRACT OF CONDITION REPORTS ON DECEMBER 31, 1924, BY CLASSES OF BANKS [In thousands of dollars] Central reserve city banks Total United States Other Country reserve bank New York Chicago Total city banks (1,315 Dec. 31, Oct. 10, (31 banks) (11 banks) (42 banks) (187 banks) banks) 1924 (1,544 1924 (1,566 banks) banks) RESOURCES Loans and discounts _ 2,254,205 584,340 2,838,545 3, 254,390 1,756,611 7,849, 546 7,594,884 Overdrafts _.. 814 146 960 2,315 2,640 5,915 6,277 United States Government securities 426,582 106,458 533,040 559,535 226,716 1,319,291 1,318,766 Stock of Federal reserve banks 9,888 2,759 12,647 17,247 9,502 39,396 39,383 Other bonds, stocks, and securities 378,497 107,844 486,341 788, 294 553, 690 1,828,325 1,800,927 Total loans and investments 3,069,986 801,547 3,871,533 4,621,781 2,549,159 11,043,473 10,760,237 Customers' liability on account of acceptances _. 156,940 22,676 179,616 32,010 5,382 217,008 185,050* Banking house, furniture, and fixtures _. 52,148 14,657 66,805 162.158 80,476 309,439 301,379 Other real estate owned 2,394 2,394 29, 717 20,066 52,177 51,197 Gold and gold certificates 7,740 935 8,675 3,610 6,135 18,420 16,874 All other cash in vault 29,294 6,951 36,245 74,061 60,479 170, 785 151,633 Reserve with Federal reserve banks 354,447 67,409 421,856 282,720 128,607 833,183 817,797 Items with Federal reserve banks in process of collection.. 71,150 16, 424 87,574 119,999 30,420 237,993 185,600 Due from banks, bankers, and trust companies 41,388 51, 966 93,354 269, 519 198,110 580,318 Exchanges for clearing house, also checks on other banks in same place _ 655,019 41,899 696,918 132.159 24, 444 853,521 462,155 Outside checks and other cash items 14,937 3,248 18,185 37,118 7,752 63,055 47,686 United States securities borrowed _ 11,796 7,291 19,087 18,060 Other securities borrowed _ 1 1 412 2,128 2,541 1,954 Other assets 150,287 12,847 163,134 55,333 18,744 237, 211 212,144 Total. 4,605,730 1,040,560 5, 646, 290 5,832,393 3,139,193 14,617,876 13,792,084 LIABILITIES Capital stock paid in _ _ 168,550 39, 650 208,200 300,184 195,061 703,445 703,166 Surplus fund _ _ 150,915 54,317 205,232 289,370 124,664 619,266 Undivided profits, less expenses and taxes paid 92,133 30,088 122,221 99,404 62,070 283,695 319,912 Due to Federal reserve banks _ 265 265 1,960 8,235 10,460 9,166 Due to banks, bankers, and trust companies 597,674 108,928 706,602 438,759 90,262 1,235,623 1,181,620' Certified and cashiers' or treasurers' checks outstanding... 354,662 11,609 366,271 94,582 22,349 483, 202 Demand deposits 2,435,660 432,918 2,868,578 2,186,979 1,270,306 6,325,863 5,938,330- Time deposits 450,141 294,952 745,093 2,200,448 1,279,425 4,224,966 4,138,099 United States deposits 11,377 11, 795 23,172 59, 678 8,591 91,441 116,391 Total deposits _. 3,849,779 860,202 4,709,981 4,983,406 3,679,168 12,371,555 11,672,445 Bills payable (including all obligations representing money borrowed other than rediscounts) 1,800 1,800 51,411 33,738 43,872 Notes and bills rediscounted (including acceptances of other banks and foreign bills of exchange or drafts sold with indorsement) 118,779 5,836 124,615 25,952 20,527 171,094 94,845 Cash letters of credit and travelers' checks outstanding 14,614 68 14,682 860 47 15,589 16,384 Acceptances executed for customers 160,816 22, 683 183,499 36,827 4,825 225,151 187,952- Acceptances executed for other banks for account of reporting banks 8,978 1,374 406 10,758 10,097 United States securities borrowed , 11,796 7,291 19,087 18,057 Other securities borrowed 1 1 412 2,128 2,541 1,954 Other liabilities 39,366 27,715 67,081 32,397 9,268 108,746 114,367 Total. 4,605,730 1,040,560 5,646,290 5,832,393 3,139,193 14,617,876 13,792,084- Ratio of reserve with Federal reserve banks to net deposit liability (per cent)__ 12.8 12.9 12.8 9.5 7.0 10.3 10.4 CHANGES IN MEMBERSHIP IN THE FEDERAL RESERVE SYSTEM, 1919-1924 At the end of 1914, the year in which the of^ member banks represented largely the ad- Federal reserve system was put into operation, mission of State banks into the system. The there were in active operation 7,574 national initial growth in membership continued at banks, which were required by law to become about the same rate until 1922, when the nummembers of the system, and 8 member State ber of member banks reached its highest point. banks. These banks had total resources of On December 29 of that year there were 8,220s $11,444,000,000. Between 1914 and 1918 the national banks and 1,639 member State banks, a number of member banks in active operation total of 9,859 member banks with resources of increased by 1,110, and on December 31, 1918, $33,883,000,000. Although the increase of 709 active membership comprised 7,762 national in the number of member State banks was not banks and 930 State banks, a total of 8,692 c^uite so large as during the earlier period, the member banks, with aggregate resources of increase of 458 in the number of national $27,516,000,000. This growth in the number banks, a considerable part of which was due to- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

MARCH, 1925 FEDERAL RESERVE BULLETIN 219 the conversion of nonmember State banks, was proportional membership in the Richmond, much larger than in the preceding four years. Atlanta, Chicago, St. Louis, Minneapolis, and Since 1922, although the resources of the banks Kansas City districts, in which districts the have continued to increase, there has been a actual membership ranged between 26 and 39 decline of 177 in the number of national banks, per cent of the potential membership, the corand a decline of 95 in the number of State responding range for resources being 62 and 69 banks, a decrease in total membership in the per cent. system of 272 banks. The number and re- On December 31, 1924, there were 9,587 sources of member banks in active operation, member banks in active operation, as indicated as indicated by required reports of condition, by the required reports of condition which are shown for 1914 and for each year from 1918 were submitted by the banks as of that date. to 1924, in the following table: Of this number, 8,043 were national banks and 1,544 were State banks and trust companies. MEMBERSHIP IN THE FEDERAL RESERVE SYSTEM, A net growth in membership of 895 banks dur- 1914 AND 1918-1924 ing the six years between the end of 1918 and the end of 1924 was the result of 2,226 additions Member banks and 1,331 losses, excluding from these such compensating changes as were involved in the End of year Number Resource d s o ( l i l n a r m s) illions of movement of banks between the two classes of members and which were consequently with- Total National State Total National State out effect on the membership in the system as a whole. 1914 7,582 7,574 8 11,444 11,351 93 The largest proportion of the additions dur- 1 1 9 9 1 1 8 9 8 9 , , 6 0 9 6 2 6 7 7 , , 8 7 8 6 5 2 1,1 9 8 3 1 0 2 3 7 2 , , 5 6 1 1 6 6 2 2 0 2 , , 0 7 3 0 4 2 9 7 , , 9 4 1 8 4 2 ing the period were State banks which entered 1920 - .- 9,606 8,125 1,481 31,184 21,357 9,827 the system, either converting into national 1921 9,779 8,165 1,614 29,316 19,411 9,905 1922 9,859 8,220 1,639 33,883 21,966 11,917 banks or, upon approval by the Federal Reserve 1 ]9 9 2 2 4 3 9 9 , , 7 5 7 8 4 7 8 8 , , 1 0 7 4 9 3 1 1, , 5 5 4 9 4 5 3 3 5 8 , , 2 9 3 8 9 7 2 2 2 4 , , 3 3 9 6 6 9 1 14 2 , , 8 6 4 1 3 8 Board, becoming member State banks. In the six years under review, 1,019 State banks were admitted to the system as State bank On June 30, 1924, the latest date for which members and 406 converted into national information is available concerning the number banks. A larger number of State banks joined and resources of all banks in the United States, the system in the San Francisco district than approximately one-third of all the banks in the in any other; the number was also comparacountry were member banks; but the resources tively large in the Kansas City and Dallas of these banks, exclusive of the resources of districts. It exceeded in every district the the reserve banks themselves, aggregated number of banks which withdrew from memnearly two-thirds of the total resources of all bership either by becoming nonmembers or banks in the country. The Federal reserve through absorption by some existing nonmemact imposes certain minimum requirements reber bank or through succession by a new nongarding the amount of capital which member member bank organized for the purpose. Durbanks must have, which renders many noning the same period 763 national banks were member banks ineligible for membership enorganized. The remaining 38 additions were tirely apart from other considerations which banks which had formerly suspended and reare taken into account in passing upon applisumed operations again. In addition, 6 noncations for admittance. At the end of June member banks were absorbed by member banks, last year there were 13,598 nonmember banks, without effect on the number of banks in the with resources of $11,587,000,000, which were system. eligible for membership in the system on the Of the losses to membership, 463 are acbasis of capitalization. On the same date counted for by mergers. There were 296 intrathere were 9,650 member banks, with resources class mergers—that is, mergers between national of $35,777,000,000, representing about 76 per banks or between State banks, and 167 intercent of the aggregate resources of all member and class mergers—that is, mergers of State banks eligible nonmember banks and about 42 per cent with national banks, or vice versa. Voluntary of the total number of such banks. The highliquidation accounted for 123 losses to memberest percentage of membership was in the Phila- ship.1 delphia district, where 72 per cent of all member and eligible nonmember banks, with 89 i In all cases in which voluntary liquidation resulted, as far as could per cent of the aggregate resources, were mem- be determined, in some other outcome than final termination of the inoers of the system. There was much lower stitution, the change was classified according to the ultimate status of the bank. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

220 FEDERAL RESERVE BULLETIN MARCH, 1925 During the six years, 1918-1924, 107 banks of these banks were about $760,000, as comwithdrew from the system. Of these 101 pared with an average of about $3,000,000 for were State banks which availed themselves of all national banks and of nearly $9,000,000 for their option of withdrawal upon advance notice member State banks. Available data show and 6 were compulsory withdrawals. In addi- that in these two years the totals of all bank tion, 266 banks were absorbed or succeeded suspensions in the country were the highest on by nonmember banks. It will be noted that record, and reports to the Federal reserve banks the number of member banks thus lost to the of banks closed during 1923 and 1924, member system by becoming nonmember banks (373) and nonmember, confirm the above indication constitutes only about one-fourth of the number as to the size of the banks, and show that about of nonmember banks which joined the system. 68 per cent of all banks reported closed during There were during these six years 71 suspen- these years had capital of $25,000 or less and sions, 28 among national and 43 among State less than 10 per cent had capital in excess of banks, and 293 insolvencies, 249 of these being $100,000.2 national and 44 State banks. This total of In the following table are shown, by districts, 364 suspensions and insolvencies has occurred the changes in active membership for the years for the most part in the last two years; there 1919 to 1924, excluding from the data changes were 104 member banks closed or insolvent in which represent compensating movements of 1923 and 158 in 1924. These were, principally, banks between the two classes of members and banks located in the agricultural districts. which were without effect on membership in Suspensions and insolvencies occurred more the system as a whole. frequently among the smaller banks, as is indicated by the fact that the average resources 2 The reports for 1923 include only 7 of the 12 districts, but cover probably not less than 90 per cent of the banks closed. CHANGE IN ACTIVE MEMBERSHIPOF FEDERAL RESERVE SYSTEM, B\r DISTRICTS 1919-1924 All districts Districts (number of banks) N b b a e u n r m k o s - f (in o r e f t T s h d o o o o u t u l r l a s c a l a e rs n s ) ds B to o n s- Y N o e r w k P p d h h e i l i l - a a- C la le n v d e- m Ri o c n h d - la A n t t - a c C a h g i o - L S ou t. is a M p n o e in - li - s K C s a a it n s y - D la a s l- F c S r is a a c n n o - Active membership Dec. 31,1918 8,692 27,515,659 423 723 661 814 565 426 1,334 514 867 994 727 644 Additions to membershp: Primary organization of national banks 763 429,362 16 138 54 48 37 40 51 43 66 87 69 114 Conversion of nonmember banks to national banks. 406 297,363 3 11 6 12 40 26 19 19 58 125 41 46 Admission of State banks 1,019 2,595,023 13 62 47 68 46 116 120 107 86 44 137 173 Resumption following suspension 38 18,063 1 2 1 9 6 8 8 Total additions to membership. 2,226 3,339,811 32 214 107 128 123 183 192 170 219 262 255 341 Losses to membership: Merger between member banks— Intraclassl 296 (2,590,387) 17 40 9 21 18 16 31 18 17 34 33 42 Interclass 2 167 (1,023,661) 5 12 3 15 7 10 9 7 5 6 17 71 Absorption or succession by nonmember banks 266 542,234 8 13 16 17 23 37 19 16 20 50 24 23 Voluntary liquidation 123 185,279 3 7 1 5 6 7 6 7 17 22 16 26 Withdrawal 107 242,662 1 7 8 8 9 24 6 11 15 7 11 Suspension _ 71 42,665 2 1 3 11 10 1 20 4 10 9 Insolvency 293 250,910 2 1 5 6 9 16 4 110 58 45 37 Other . 8 348 3 1 1 1 2 Total losses to membership 1,331 1,264,098 36 82 30 71 71 99 118 60 201 190 154 219 Net increase (+) or decrease (—) +895 +11,471,208 -4 +132 +77 +57 +52 +84 +74 +110 +18 +72 +101 +122 Active membership Dec.31,1924 9,587 38,986,867 419 855 738 871 617 510 1,408 624 885 1,066 828 766 1 National banks merging with national banks or State banks with State banks. 2 National banks merging with State banks and vice versa. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

MARCH, 1925 FEDERAL RESERVE BULLETIN 221 During 1924 the number of national banks declared insolvent and resumed operations decreased by 136 and the number of member again. As against these gains there were 357 State banks by 51, a decline in total member- losses. Of these losses 120 were due to mergers ship of 187. Despite this decline in member- between member banks and to voluntary ship, the aggregate resources of all member liquidations and 158 to suspensions or inbanks showed an increase for the year amount- solvencies. ing to about $3,750,000,000. The changes in It will be noted, in addition, that 78 member membership, total and net, are classified in the banks were converted, in effect, into nonfollowing table: member banks, 52 being absorbed or succeeded by nonmember banks and 26 State bank members withdrawing. This did not represent CHANGES IN ACTIVE MEMBERSHIP IN THE FEDERAL a net movement of banks from the system, RESERVE SYSTEM, DECEMBER 31, 1923, TO DECEM- BER 31, 1924 however, since there were, on the other hand, 61 nonmember banks which, as already pointed out, joined the system, and, in addition, six Member banks nonmember State banks which were merged with member banks. In the New York, Number Resources Philadelphia, St. Louis, Minneapolis, and (in thou- Na- sands of Dallas districts there was a net gain of 19 tional State Total dollars) member banks, when the changes in the status of banks, members or nonmembers, are con- Active membership, Dec. 31, 1923. 8,179 1,595 9,774 35,238,606 sidered. Additions to membership: Primary organization of na- Out of the total of 158 banks which were Co ti n o v n e a r l s i b o a n n ks of nonmember 90 90 20,336 closed or declared insolvent during the year, banks to national 19 21,345 125 were national banks and 33 State member Admission of State banks 61,805 Resumption following suspen- banks. These are shown by districts in the Co si n o v n e rsion within the system* _. 17 2(17 1 8 0 , , 7 5 7 4 6 1 ) table below: Total additions. 132 46 170 114,027 MEMBER BANKS INSOLVENCIES AND SUSPENSION, 1924 Losses to membership: Merger of member banks— Intraclass.__ (209,927) Interclass 10 (201,873) Member banks Absorption or succession of member bank by nonmem- Federal reserve bank Vo b l e u r ntary liquidation (termi- 52 42,832 Total National State nal) 35 52,431 Withdrawal 26 66,879 Suspension... 17 38 24,934 All districts 158 125 33 Insolvency... _. 108 120 116,583 Conversion within the sys- Boston 1 1 tem i _ (47, 235) New York . 2 2 Other losses 1,347 Philadelphia 1 1 Cleveland Total losses . 268 97 | 357 305,006 Richmond 4 3 1 Atlanta 13 4 q Net change during the year —136 -51 -187 3+3,748,261 Chicago _ _ 15 6 9 Active membership, Dec. 31, 1924. 8,043 1,544 9,587 38,986,867 St. Louis 2 1 1 Minneapolis 56 47 9 Kansas City . . 35 33 2 1 Compensating items, except for one member State bank which suc- Dallas 18 17 1 ceeded a national bank that did not report on Dec. 31, 1923, and was San Francisco _ _ 11 10 1 therefore not counted among the losses in 1924. Si 2 Resources of nine banks. 3 Includes in addition to increases classified above, those due o growth and reorganization In the following tables are shown in detail the changes in membership in the Federal There were during the year 170 additions reserve system, by districts, between October to membership, of which 61 were nonmember 10, and December 31, 1924, and, for the State banks which entered the system, 90 svstem as a whole, the changes during each of were national banks newly organized, and 18 the past six years; all intrasystem changes are were banks which had formerly been closed or eliminated from the latter. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

222 FEDERAL RESERVE BULLETIN MARCH, 1925 CHANGES IN MEMBERSHIP IN THE FEDERAL RESERVE SYSTEM, BY DISTRICTS AND BY CLASS OF BANKS, OCTOBER 10- DECEMBER 31, 1924 Number Resources, all districts ( s d i a n o n l t d l h a s r o s o u ) f - tr d A i i c s l t l - s B to o n s- Y N o e r w k P p d h h e i i l l a - a- C la le n v d e- m Ri o c n h d - la A n t t - a c C a h g i o - L S ou t. is a M p n o e in l - i - s K C s a a it n s y - Dall as F c S i r s a a c n n o - Totallmembersliip: Oct. 10, 1924 37,103,870 9,635 419 845 736 872 620 515 1,419 625 890 1,082 838 774 Dec. 31, 1924 38,986,867 9,587 419 855 738 871 617 510 1,408 624 885 1,066 828 766 Net increase (+) or decrease 1+1,882,997 -48 +10 +2 -1 -3 —5 -11 -1 -5 -16 -10 -8 National bank membership: Oct. 10, 1924 - 23,311,786 8,069 382 701 664 752 556 384 1,057 495 788 1,049 654 ' 587 Dec. 31, 1924 24,368,991 8,043 383 711 666 752 555 382 1,055 492 785 1,033 645 584 Net increase (+) or decrease 1+1,057, 205 -26 +1 +10 +2 -1 -2 -2 -3 -3 -16 -9 o State bank membership: Oct. 10, 1924 13,792,084 1,566 37 144 72 120 64 131 362 130 102 33 184 187 Dec. 31, 1924 14,617,876 1,544 36 144 72 119 62 128 353 132 100 33 183 182 Net increase (+) or decrease (-) 1 +825, 792 -22 -1 -1 -2 -3 -9 +2 -2 -1 -5 Changes in national-bank membership: Total additions 4,131 26 1 10 2 2 2 2 1 2 3 1 P C r o i n m v a e r r y si o o n rg o a f n i S z t a a t t io e n m . _ e . m ._ - _ 2,071 21 1 10 2 1 1 2 1 2 1 ber bank 563 1 1 Conversion of nonmember banks 374 3 1 1 1 Absorption of State member bank 2 307 (1) (1) Resumption following suspension 816 1 1 Total losses 36,391 52 3 4 4 4 5 16 12 4 Voluntary liquidation (terminal) 5,324 15 1 2 1 6 4 1 Suspension 2,022 2 1 1 Insolvency 10,683 2 3 2 4 4 3 Merger between national 18 banks 3 (51,718) 1 2 4 Absorption by State mem- 7 ber bank 13,833 1 2 Succession by State mem- 3 ber bank Absorption or succession Changes O i b t n h y e r S n o t d a n e t m c e r e e b m a a s n b e k s e 4 r m ba e n m k b s er- 3 1 , , 1 3 8 4 2 7 6 1 2 4 3 1 1 ship: Total additions 37,770 4 3 1 Admission of State banks.. 4,904 3 3 Succession to national banks .- 380 «1 5 1 Absorption of national banks 2 13,833 (3) (1) (2) Absorption of nonmember banks 18,653 (1) (1) Total losses 36,559 26 1 1 2 3 9 1 2 1 1 Voluntary liquidation (terminal) 596 1 1 Suspension 6,641 10 1 2 4 2 1 Insolvency 1,534 3 1 1 1 Merger between State banks8 _ . ... (6,123) 3 2 Absorption by national bank 307 1 1 Conversion to national banks 563 1 1 Absorption by nonmember banks -- Withdrawal 26,918 7 1 1 1 1 3 1 Includes changes in resources due to reorganization, growth, etc., in addition to changes enumerated. 2 Number not increased; both number and resources appear under losses by absorption for the other class of bank. 3 Counted only among losses in number; resources of memberslnot diminished under ordinary circumstances. 4 Succession of one national bank by another which" did not reportjuntilfafter Dec. 31,1924. 8 Succeeded a national bank which did not report Oct. 10 and was numbered among losses of previous period. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

MARCH,, 1925 FEDERAL RESERVE BULLETIN 223 CHANGES IN MEMBERSHIP IN FFDERAL RESERVE SYSTEM, BY CLASS OF BANK AND BY YEARS, 1919-1924 1919 1920 1921 National State All National State All National State All member member member Active membership, beginning of year 7,762 930 8,692 7,885 1,181 9,066 8,125 1,481 9,606 Additions to membership: Primary organization of national banks 170 170 234 234 103 103 Conversion of nonmember banks to national 62 62 102 102 59 59 Admission of State banks .. 280 280 332 332 204 204 Resumption following suspension 5 5 Conversion within the system * 11 5 11 6 1 17 3 Total additions 243 285 512 347 338 669 184 207 371 Losses to membership: Merger of member banks— Intraclass 2_. . 36 1 37 30 7 37 38 10 48 Interclass3 12 4 16 11 2 13 26 7 33 Absorption or succession of member bank by nonmember 59 3 62 39 3 42 27 4 31 Voluntary liquidation (terminal) 4 4 8 11 3 14 6 5 11 Withdrawal 9 9 12 12 18 18 Suspension _ - - 3 3 ' 8 1 9 I C n o so nv lv e e r n si c o y n within the system 1 __ 2 6 12 2 2 6 7 10 1 8 3 3 6 1 17 2 48 Other losses -_ . 1 1 2 Total losses _. . 120 34 138 107 38 129 144 74 198 Net increase (+) or decrease (—) +123 +251 +374 +240 +300 +540 +40 +133 +173 Active membership, end of year 7,885 1,181 9,066 8,125 1,481 9,606 8,165 1,614 9,779 1922 1923 1924 National State me A m ll ber National State me A m ll ber National State me A m ll ber Active membership, beginning of year 8,165 1,614 9,779 8,220 1,639 9,859 8,179 1,595 9,774 Additions to membership: Primary organization of national banks 77 77 89 89 90 90 Conversion of nonmember banks to national 109 109 55 55 19 19 Admission of State banks 95 95 66 66 42 42 Resumption following suspension 8 1 9 4 2 6 17 1 18 Conversion within the system * 20 1 30 6 6 3 1 Total additions 214 97 290 178 74 216 132 46 170 Losses to membership: Merger of member banks— Intraclass 2 49 12 61 43 16 59 45 9 54 Do.3 39 7 46 23 5 28 21 10 31 Absorption or succession of member bank by nonmember _ 28 1 29 49 1 50 45 7 52 Voluntary liquidation (terminal) _. 17 9 26 24 5 29 29 6 35 Withdrawal 13 13 29 29 26 26 Suspension 2 2 19 19 17 21 38 Insolvency _> _ _ _ _ 23 7 30 73 12 85 108 12 120 Conversion within the system * 1 21 1 7 29 2 6 Other losses 2 2 2 2 1 1 Total losses _. - 159 72 210 219 118 301 268 97 357 Net increase (+) or decrease (—)_ _ _ +55 +25 +80 -41 —44 —85 -136 -51 -187 Active membership, end of year 8,220 1,639 9,859 8,179 1,595 9,774 8,043 1,544 9,587 1 Compensating items, except in 1919 when two national banks were succeeded by a single State bank, and in any case in which a bank was succeeded by another that was nonreporting until the following year, as in 1919 when a member State bank converted into a national bank which did not report until 1920. 1 National banks merging with national banks, or State banks with State banks. 3 National banks merging with State banks and vice versa. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

224 FEDERAL RESERVE BULLETIN MARCH, 1925 DEBITS TO INDIVIDUAL ACCOUNTS BY BANKS IN SELECTED CITIES MONTHLY SUMMARY FOR BANKS IN 141 CENTERS [In thousands of dollars] 1924 1925 1923 1924 Number Federal reserve district of centers November December January November December Tanuary No. 1—Boston 2,252,717 2,467,796 2,685,491 2,150,666 2,287,912 2,189,052 No. 2—New York 23, 708,849 28,106,044 28,500,616 20,632,112 22,801,386 22,814,899 No. 3—Philadelphia... 1,820,722 2,242,478 2,173,091 1,738,336 1,999,728 1,925,455 No. 4—Cleveland 1,980,486 2,466,903 2,511,678 1,996,108 2,331,503 2,227,515 No. 5—Richmond 675,127 795,584 767,253 710,408 804,167 733,878 No. 6—Atlanta 973,154 1,154,408 1,201,107 991,989 1,124,910 1,047,405 No. 7—Chicago 4, 500,225 5,326,098 5,490,747 4,428,485 4,886,123 4,701,940 No. 8—St. Louis 1,081,663 1,259, 637 1,306,725 1,094,428 1,194,752 1,130,859 No. 9—Minneapolis. __ 891,171 849, 622 731,307 664,498 660,760 565,332 No. 10—Kansas City.. 1,062,890 1,189,358 1,211,359 1,053,147 1,082,885 1,003,759 No. 11—Dallas 586,644 664,938 658,963 583,636 620,979 567,222 No. 12—San Francisco 2,359,349 2, 634,300 2,720,698 2,460,057 2, 652,946 2,590,948 Total 141 41,892,997 49,157,166 49, 959,035 38,503,870 42,448,051 41,498,264 New York City 1 23, 046, 934 27,327,223 27,681,894 19,982,927 22,081,149 22,113,958 Other cities 140 18,846,063 i 21,829,943 22,277,141 18, 520,943 20,366,902 19,384,306 WEEKLY SUMMARY FOR BANKS IN 249 CENTERS [In thousands of dollars! 1925, week ending— 1924, week ending- Num- Federal reserve district ber of centers Jan. 28 Feb. 4 Feb.11 Feb. 18 Jan. 30 Feb. 6 Feb. 13 Feb. 20 No. 1—Boston 567,126 615,703 586,465 593,455 496,187 562,172 500,160 536, 597 No. 2—New York 6,067,599 6,589,601 6,215,767 5,752,543 5,128,570 5,753,734 4,389,379 5,530,828 No. 3—Philadelphia... 499, 217 528,946 467,103 476,552 480,635 494,106 400,951 510, 749 No. 4—Cleveland 605,838 654, 741 642,526 619,162 551,162 617,778 513,045 643,656 No. 5—Richmond 269,158 300,956 283,355 291,149 303,128 253, 738 270,000 No. 6—Atlanta 249,707 265,438 258,979 268,881 224,397 257,487 230, 292 261,755 No. 7—Chicago.- 1,181,429 1,201,122 1,191,105 1,175, 619 1, 051,596 986,041 1,202,130 No. 8—St. Louis 273, 501 315,838 297, 294 309,432 254,511 275, 321 250, 219 277,778 No. 9—Minneapolis.._ 170,979 179,800 194, 665 171,269 131,026 140,087 125,153 158,996 No. 10—Kansas City.. 269,632 289,948 287, 205 286, 265 229,482 235,469 235,648 260, 011 No. 11—Dallas 141,734 157,566 151,175 156,837 127,805 141,431 116,449 145,325 No. 12—San Francisco. 575,945 650,841 631, 098 621, 253 569, 978 638,029 569,156 675,152 Total 249 10,871,865 11,750,500 11,206,737 10, 722, 417 9, 513,443 10,404, 783 8, 531,158 10,472,977 BANK DEBITS FOR FEDERAL RESERVE BANK AND BRANCH CITIES No. 1—Boston 395, 787 425, 930 415,006 398,180 337, 551 385,106 338, 727 360,122 No. 2—New York 5,781,168 6,279, 720 5,920,001 5,457,373 4,868,735 5,465, 716 4,162, 599 5, 221,896 Buffalo 67,678 72,705 69, 778 73,838 62,694 69,243 56,578 78,435 No. 3—Philadelphia.... 381,540 410,172 345,844 355,255 365,617 373,124 294,490 371,045 No. 4—Cleveland 134,703 149,148 144,008 151, 353 125,532 152, 512 119,039 168,095 Cincinnati 71,633 80,713 79,259 76, 575 69, 725 73, 351 61,745 79,100 Pittsburgh 223,453 241,417 243,424 193,700 191,179 199, 835 171, 943 201.469 No. 5—Richmond 32,156 35,593 33, 541 29,169 29,637 35,132 28, 750 • 29,835 Baltimore 81,959 93,646 81,891 89,206 88,600 95,500 74,300 84,858 No. 6—Atlanta 30,497 38,410 31,836 36,855 29, 263 32, 502 29,016 32,957 Birmingham 27,036 32,295 29,200 20,181 23, 713 25,170 26,505 Jacksonville 15, 575 17,715 17,870 18,609 12,635 13, 571 12,325 14,283 Nashville 19, 924 19,355 18,087 19,346 16, 372 16,635 14, 608 17,075 New Orleans 80, 977 77,204 78,517 78,132 78,606 91,027 77,642 94,444 No. 7—Chicago 731,800 762,030 758, 893 714,009 651,051 563,140 572, 598 730,925 Detroit 168,708 152,426 147,644 163,493 149,004 150, 797 129,786 173, 532 No. 8—St. Louis 152,400 186,350 168, 900 172,100 142,803 157,127 139,034 156,143 Little Rock 14,438 17,402 16,165 16,406 12,042 13,763 .14,208 14,325 Louisville 42,294 40,464 45,102 51,033 38, 401 39, 780 38,661 42,210 Memphis... 33,814 37, 776 33, 941 35,235 31,950 34,379 28,337 35.119 No. 9—Minneapolis 88,706 111, 969 91,448 65,754 67, 797 60,156 77,154 Helena 1,751 1,703 2,013 1,936 1,689 2,244 2,308 1,928 No. 10—Kansas City 74,424 83,092 81,830 82,500 64,613 68,837 68,434 76, 794 Denver 37,831 40,627 40,563 35, 536 36,329 36,823 30,696 35,842 Oklahoma City. 18,269 19,824 19,634 19,031 13,604 17,568 15, 696 16,087 Omaha 47,075 47,392 47,101 46, 624 37,945 32,240 36, 526 45,568 No. 11—Dallas 45,351 51,392 49,131 51,443 40,198 44,868 37, 768 44,649 El Paso 7,617 7,892 7,641 6,824 7,555 8,294 7,277 8,673 Houston . 32,880 36,369 33,957 34,378 28,856 30,180 21,620 33,280 No. 12—San Francisco.. 191,042 241,993 220,558 210,269 172,368 199,890 185,501 215.470 Los Angeles 169,359 181, 537 188,545 173,878 173,436 186,067 167,613 216, 710 Portland 30,321 34,228 32,862 34,074 32,835 39,324 34,415 40,583 Salt Lake City. 13,342 12,655 14,170 14,843 13,372 13,435 11, 730 14,638 Seattle 39,475 41,564 47,093 44,525 37,463 38,184 35,504 39.120 Spokane 10,043 11,254 10, 565 11, 953 8,926 12,085 10,385 11,262 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

MARCH, 1925 FEDERAL RESERVE BULLETIN 225 MONEY IN CIRCULATION [Source: U. S. Treasury Department circulation statements] [In thousands of dollars] Total Total c b o G u in l o l i l a o d n n d G ti o fi l c d a t c e e s r- S d t s a o il n l v l d a e a r r s rd c S c e i a r l t t v i e f e s i r - T n r o e 1 t a 8 e 9 s s u 0 o r f y a S r u y b s s i i l d v i e - r U S n n t o a i t t t e e e s s d F re n e s o d e t e r e r v s a e l F n b e o a d t n e e k r s al Na n b t o a io t n e k n s al- c t c a i i o p r n i c t u a p l a e ( - i r n dollars) 1914—July 1 3,402,015 611,545 1,026,149 70,300 478,602 2,428 159,966 337,845 715,180 34.35 1917—Apr. 1 14,100,591 641,794 1,348,818 70,863 459,680 1,997 191,351 330,353 356,448 3,170 697,160 39.54 1920—Nov. 1 »5,628,428 495,353 231,404 89,725 60,385 1,628 261,556 277,736 3,310,225 209,877 715,023 52.36 1922—Aug. 1 4,337,418 416,282 171,985 58,378 268,802 1,508 229,956 284,343 2,115,350 65,032 725,782 39.47 1924—Feb. 1 4,681,708 405,573 571,381 56,496 357,177 ,440 252,511 294,470 2,008,877 12,729 721,054 41.77 Mar. 1 4,807,778 416,047 633,253 55,910 368, 750 1,437 251,537 302,404 2,030,818 12,091 735,531 42.85 Apr. 1 4,812,861 408,062 687,252 55,202 367,113 ,433 251,639 304,846 1,988,585 11,588 737,141 42.85 May 1 4,760,114 403,649 726,179 54,823 370,093 1,428 252, 702 301,110 1,909,143 11, 025 729,962 42.33 June 1 4,815,401 402,122 779,169 54,078 373,381 ,425 252,557 305,966 1,897,636 10,438 738,629 42.78 Julyl 4,755,403 396,415 801,381 54, 017 364,414 1,423 252,971 297,790 1,843,091 10,066 733,835 42.20 Aug. 1 4,665,187 398,499 800,124 53,644 372,683 1,420 252,407 301,667 1,745,820 9,635 729,288 41.36 Sept. 1 4, 773,878 401,794 872,807 53,915 385, 499 1,417 253, 732 308, 111 1,746,230 9,229 741,144 42.28 Oct. 1 4,806,367 427,970 898,165 54,603 388, 574 1,412 256,467 304,345 1,729,301 9,030 736,500 42.52 Nov. 1 4,879,694 436,160 904,861 55,185 389,201 1,410 259,710 305,840 1,784,046 8,710 734,571 43.12 Dec. 1 4,993,570 437,971 933,688 55,606 389,113 1,407 263,102 304,418 1,862, 055 8,471 737,739 44.08 1925—Jan. 1 4,992,931 458,206 970,564 57,384 388,540 1,405 266,298 295,233 1,841,621 8,238 705,442 44.03 Feb.l.. 4,751,538 455,169 929,650 55, 533 360,808 1,401 256,898 283, 598 1, 688, 662 7,987 711, 832 41.86 1 The figures for the several classes of money do not add to this total, as mutilated currency forwarded for redemption and unassorted currency held by Federal reserve banks have been deducted only from the total. DISCOUNT RATES OF FEDERAL RESERVE BANKS IN EFFECT FEBRUARY 28, 1925 Paper maturing— After 90 days but Within 90 days within 9 months Federal reserve bank Commercial, Secured by Agriculturall a a n g d r i l c i u v l e t s u t r o a c l k , U G n o i v te e d r n S m ta e t n e t s ac B c a e n p k ta e n r c s e ' s acc T ep ra ta d n e ces and p l a iv p e e s r tock paper, n. e. s. obligations Boston New York Philadelphia.. Cleveland Richmond Atlanta Chicago St. Louis Minneapolis.. Kansas City_. Dallas San Francisco. 1 Including bankers' acceptances drawn for an agricultural purpose and secured by warehouse receipts, etc. Changes during the month—New York, on February 27, from 3 to 3J per cent. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

226 FEDERAL RESERVE BULLETIN MARCH, 1925 GOLD SETTLEMENT FUND INTERBANK TRANSACTIONS FROM JANUARY 22, 1925, TO FEBRUARY 18, 1925 [In thousands of dollars] Change in ownership of gold through Transfers Daily settlements transfers and settle- Balance Federal reserve bank ments in f c u lo n s d e at of period Debits Credits Debits Credits Decrease Increase Boston _ _ 3,000 701,194 710,772 6,578 57,478 New York 1,000 2,368,884 2,351,225 18,659 137,428 Philadelphia 2,000 671,698 677,002 7,304 47,692 Cleveland . 616,393 621,602 5,209 51,181 Richmond _. __ 3,000 417,950 411,131 3,819 13,633 Atlanta _ 1,000 292,122 300,016 8,894 16,310 Chicago 1,000 1,104,065 1,105,724 659 93,327 St. Louis 1,500 555,276 551,321 2,455 21,998 Minneapolis 500 149,437 147,539 2,398 23,625 Kansas City 1,000 377,137 374,132 2,005 46,270 Dallas _ 268,961 271,587 2,626 29,989 San Francisco 3,000 303,145 304,211 1,934 39,618 Total, four weeks ending— Feb. 18,1925 8,500 8,500 7,826,262 7,826,262 31,270 31,270 578,549 Jan. 21,1925 . 42,000 42,000 8,308,529 8,308,529 592,392 Feb. 20,1924 43,500 43,500 7,088,226 7,088,226 589,784 Jan. 23,1924 19, 500 19,500 7,204,855 7,204,855 587,324 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

MONEY RATES PREVAILING IN LEADING CITIES, FEBRUARY 15, 1925 The following table shows the customary rates charged on loans comparison between the rates charged since February, 1924 and rates and discounts in the various cities in which Federal reserve banks and charged at earlier periods, it should be borne in mind that the earlier their branches are located, as reported by representative banks. These rates refer to an entire month, while the later figures cover only a rates are not averages but are those rates at which the bulk of paper of week. Attention is also called to the fact that the method of reeach class is handled by reporting banks. Where it appears from the porting the rates has been somewhat modified and that slight changes reports that no one rate clearly covers the bulk of the paper handled, in the rates may reflect these modifications. a range of the rates most commonly charged is given. In making Customers' prime commercial paper Loans secured by stocks and bonds Interbank loans Lo L a i n b s e r s t e y c u b r o e n d d s by w L a o r a e n h s o u se s c e u r r e e c d e i b p y ts Cattle loans 30-90 days 4-6 months Demand Time District and city Week ending— Week ending— Week ending— Week ending— Week ending— Week ending— Week ending— Week ending— Feb. Jan. Feb. Feb. Jan. Feb. Feb. Jan. Feb. Feb. Jan. Feb. Feb. Jan. Feb. Feb. Jan. Feb. Feb. Jan. Feb. Feb. Jan. Feb. 15, 15, 15, 15, 15, 15, 15, 15, 15, 15, 15, 15, 15, 15, 15, 15, 15, 15, 15, 15, 15, 15, 15, 15, 1925 1925 1924 1925 1925 1924 1925 1925 1924 1925 1925 1924 1925 1925 1924 1925 1925 1924 1925 1925 1924 1925 1925 1924 No. 1.—Boston 4-41 5 4-4* 4 4 5 4* 5 -51 4 4* 4*-5 5* No. 2.—New York 4 -5 4 5 4 -5 4 4*-5 4 -5 5-51 31-5 41-5 5 -5* 3*-4! 3 -5 4*-5 4 -5 5 -5* 4 -6 41-5 5 -51 Buffalo 5-6 5 -6 5 5 5*-6 5*-6 5 -6 5 -6 6 5 -6 6 6 No. 3.—Philadelphia.._ 4-41 4 -4i '5~-5l 4-4* 4-4* 4 -4* 4 *5"-U 4 -4* 4 4 4 4-4* 4 ~5~-5* 4 -51 4-5* 5 -6 No. 4.—Cleveland 5 -6 5 -6 6 4 -6 5 -6 4*-5 5 51 5 -6 5 -6 5-6 5 -6 5*-6 5 -6 6 5 -6 4 -6 6 Pittsburgh 5 -6 5 -6 5 -6 5 -6 5 -6 5 -6 5-6 5 -6 6 5 -6 5-6 5-6 5 -6 5 -6 5 -6 5 -6 6 6 6 6 Cincinnati 5*-6 5*-6 5*-6 5*-6 5*-6 5*-6 5 -5* 5 -6 5 -5i 5 -5* 5 -5* 5.-5* 5-5*| 5 -6 5*-6 5J-6 5 -6 5*-6 6 -7 6 -7 6 No. 5.—Richmond 4*-5 5 5*-6 5 -6 5 -6 5*-6 4*-5 5 51-5* 5 -6 4*-5 4*-6 5 -6 5*-6 4*-6 5 -6 5*-6 5 5 5 -& Baltimore 41-5* 5 -5* 5* 4f-5* 5 -5* •5* 4*-5 4*-5* 5f 41-5 41-5 41-5 tf 5*-5! 41-5* 5 -51 5*-5! 5 -51 5* 5*-6' No. 6.—Atlanta 5 -6 5 -6 5 -6 5-6 5-6 5-6 5 -6 5 -6 5 -6 4*-6 4*-6 5 -6 6 5-6 5-6 6 41-6 5-6 6 Birmingham 5 -6 5-6 6-7 5-6 5 -6 6 -7 5 -6 5 -6 5 -6 6 6 6 6 -7 6 6 -7 6 6 6 -7 J N a e c w ks o O n r v le il a l n e s 5-6 4 5 - - 8 6 7 6 5-6 4 5 - - 8 6 6 -7 6 5-6 5 5 - - 7 6 6 5 -6 5 5 - - 6 8 5 6 * 5 -6 5 5 - - 6 8 5*-6 6 5-6 5 5 - - 6 8 5-6 6 5"-6" 4 5 * - - 6 8 6 6 Nashville 5*-6 5*-6 6 6 6 6 5 -6 5*-6 65J 5*-6 5 -6 5 -6 5*-6 5*-6 5*-6 5*-6 6 5*-6 5*-6 5*-6 No. 7.— D C e h t i r c o ag it o 4 4* - - 5 6 4 4* - - 5 6 5 5 - - 6 5* 4 5 1 - - 6 5 4 4 * 1 - -5 6 5 -6 5* 5-6 5 4*-5 5 * 5 -6 514 5 - - 5 6 4*-6 5*- 5 6 * 4 5 - - 5 6 4 4 * - - 5 6 5*-6 4 5 - - 5 6 4 5 - - 5 6 5-6 5* 4 5* - - 5 6 * 4 5 - - 6 5* 5*-6 5* 5 -5* 5 -5* 5* No. 8.—St. Louis 3*-5 3*-5 5 -5* 3*-5 5 -51 4*-5| 41-5* 5 -6 5 -6 4-51 4 -5 51-5* 4-5* 4 -5 5* 4-51 4*-5* 5*-6 Louisville 6 6 6 a o 6 5 5 6 5* 6 6 6 6 6 6 6 6 6 Little Rock 6 6 6 6 6 5 -7 6 6-7 6 6 6 -7 6 6 -7 6 -7 7 ~-~6 No. 9.—Minneapolis 4*-5 4-51 5* 5* 5*-6 4-51 4*-5* 5* 4*-5! 4*-5! 5* Helena 8 8 8 8 7 6-8 7 8 6-8 8 8 8 No. 10.—Kansas City 5 -6 5 -6 5 -6 5 -5* 5 -6 5 -6 6 4*-6 4*-6 5 -6 5 -6 5 -6 5 -6 5 -6 5*-6 6 -7 6 -7 Omaha 4 -6 4 -6 4*-6 4*-6 5*-6 5*-6 6 5 -6 5 -6 3*-6 2*-6 4-8 6 6 6 6 -7 6 -7 5*-8 Denver 5 -6 41-6 31-5 4*-5 6 -7 6-7 7 5*-6 5*-6 5 -6 5 -6 5 -6 5 -6 6 -7 6 -7 7 6-7 6 Oklahoma City.. 5 -7 6 6 5-7 6-7 5 -7 6 6 5 -6 6 5 -6 6 5 -7 6 6 5 -7 6 -7 6 8 8 No. 11.—Dallas 4 -6 4 -6 6 4 -7 4 -7 5 -6 5 -6 5 -6 5 -6 5 -7 6 -8 6 -8 7 -8 5 -8 5 -6 6 6-7 6 -7 7 -8 El Paso 6 -8 6 -8 8 8 6 -8 6 -7 6-8 8 6 -8 8 6 -8 6 -8 8 8 8 8 8 -10 8 -10 Houston 5 -6 5 -6 6 5 -6 5 -6 4H> 5 -6 5 -6 41-6 5 -6 41-6 5 -6 5 -6 5 -6 6 -7 6 -8 7 -8 6 -8 No. 12.—San Francisco... 5 -5* 5 -5* 5* 5-5* 5-5* 5*-6 5*-6 5 -6 5 -6 5 -6 5*-6 5 -6 5 -6 5*-6 5*-6 5 -6 6 6 Portland 6 6 6 6 6 6 6-7 6 -7 6 -7 6*-7 6 -7 6-7 7 7 6 -7 7 6-6* Seattle 6 6 6 6 6 6 6 6 6 6 6 6 6 6 6 7 6 -7 Spokane 5 -7 5 -7 7 4 -6 4 -6 6 6 -7 6-7 6 -7 6 -7 6 -8 8 6 -7 7 7 6-7 7 6*-7 6 -7 7 -8 S L a o l s t A L n a g k e e l e C s ity.. 6 -7 6 6 -7 6 6*- 6 7 6 5 - - 6 7 6-7 6 6 6 - 6 7 6-7 6 6-7 6 6 -7 6 6 -7 5 6 * - - 7 6 6 6 - - 7 7 6 -7 7 6*-7 6 6-7 7 6 -7 7 6*-7 7 -8 to to Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

228 FEDERAL RESERVE BULLETIN MARCH, 1925 GOLD AND SILVER IMPORTS AND EXPORTS IMPORTS TO AND EXPORTS PROM THE UNITED STATES, DISTRIBUTED BY COUNTRIES Gold Silver Countries January, December, January, January, December, January, 1925 1924 1924 1925 1924 1924 IMPORTS France .. . _ _ __ $71,046 $3,036,153 $2,119,621 $28,008 $1,353 $10,779 Germany 6,510 624 8,365 Italy 937 2,367,142 2,059 Netherlands 5,915,000 Spain 7,026 5,910 15,436 12,731 Sweden 41,934 143 England _ . __.-__ - _ 127,636 16, 614 22,939,710 4,212 42,823 Canada 3,120,326 2, 729,944 8,466,428 660,613 279,454 369,446 Central America _ __ 116, 627 209,982 151,020 133,053 121,286 306,453 Mexico 517,656 472,804 560,318 4,207,359 4,547,455 4, 505,555 West Indies ._-_ _ ._ 48,982 34, 564 74,244 27,407 89 19,281 Argentina 2,715, 292 202,966 403 Chile . . .. 7,977 80,603 4,441 188,787 247,302 48,358 Colombia 177,164 268,932 384,185 6,989 11,708 13,509 Ecuador 175,151 92,571 9,855 4,408 Peru 153,842 39,942 104,217 1,926,929 395,577 572,033 Uruguay 6,467 Venezuela _ _- •_ . __ 21,343 21,097 19,491 43 39 33 China _ 20, 055 512,170 4,108 320 Dutch East Indies... 240, 539 154,269 197,038 77,115 104,135 81,127 Philippine Islands 192, 536 148,423 156,888 3,583 7,324 2,357 British Oceania . . . 76,504 76,157 148,712 86 102 227 Egypt 1,631 486,456 129 Portuguese Africa 127, 671" 81,867 4,219 14,927 26,482 3,153 All other 9,239 10,808 181,079 39,151 58,081 23,378 Total 5,037,800 10,274,049 45,135, 760 7,338,559 5,863,892 5,979,758 EXPORTS France 1,308,602 33,500 Germany __ 17,500,000 20,000,000 17,995 67,493 Netherlands 3,283,743 1,324,123 Spain 40,000 130,000 Sweden 1,002,628 1,000,652 650 700 England 5,078,028 10, 263,690 3,559,365 33,000 958,948 Canada _ _ 69,998 187,602 128,278 124,048 146, 745 146,372 Central America 1,000 1,600 775 Mexico. _. 342, 673 466,344 137,695 137,399 155,180 156,303 West Indies 10,000 10,000 1,920 49,000 12,895 Argentina ._ - .- 100,000 98,500 Colombia . _ _ . 1,250 Ecuador - _ 15,000 Peru 384,000 Uruguay __ 750,655 30,566 British India 36,466,268 5,674,442 3,942,430 5,884,364 3, 981,653 Ceylon 20,000 China 1 - ............ 3,121,542 4,943,153 1,675,239 Dutch East Indies 15,000 80,656 Hongkong 941,605 220,000 13,000 478,500 32,250 Japan 1 __ 858,259 British Oceania.. 6,354,405 Egypt 245,493 All other 2,500 135,800 750 45 Total 73,525, 943 39, 674,653 280,723 11,384, 799 11,279, 630 8,208,644 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

MARCH, 1925 FEDERAL RESERVE BULLETIN 229 FOREIGN EXCHANGE RATES [Noon buying rates for cable transfers in New York as published by Treasury. In cents per unit of foreign currency. ] COUNTRIES INCLUDED IN COMPUTATION OF GENERAL INDEX February, 1925 January, 1925 January, 1924 Par of Monetary unit ex- Average Average change Low High Low High Low High Rate P o e f r p c a e r nt Rate P o e f r p ce a n r t index l _ U 59 Franc 19.30 5.0000 5.1800 4.9700 5. 2200 5.0573 26.20 4.0200 4.4300 4.1819 21.67 Krone 26.80 17. 7700 17. 8700 17. 6700 17. 9200 17. 8104 66.46 16. 0200 17. 5800 16.9419 63.22 Franc 19.30 5.1400 5.4100 5.3000 5.4300 5.3923 27.94 4. 3800 5. 0100 4. 6650 24.17 Reiehsmark 23.82 23. 8000 23. 8000 23. 8000 23. 8000 23. 8000 99.92 2.0219 2.0236 2.0226 itain... Pound 486. 65 475.7800 479. 3300 474.9900 480. 3700 478.1673 98.26 420. 9400 430.9600 425.9092 87.52 Lira 19 30 4.0300 4.1600 4. 0300 4. 2400 4.1669 21. 59 4. 2800 4. 3900 4. 3400 22.49 nds . _ Florin 40.20 40.0100 40. 3100 40. 3000 40. 6100 40. 4069 100. 51 36.9200 37. 8200 37. 3496 92.91 Krone 26.80 15.2100 15. 3100 15.1100 15. 3300 15. 2708 56.98 13. 5300 14.4800 14. 0765 52.52 ::::: Peseta 19.30 14.1500 14. 3100 13.9900 14. 3200 14.1808 73.48 12. 6500 12. 8300 12. 7462 66.04 Krona 26.80 26.9300 26. 9500 26.9200 26. 9600 26.9458 100. 54 25.8700 26. 4000 26.1831 97.70 Rwit'7orl' fend. Franc 19.30 19.2100 19.3000 19.2500 19. 5000 19. 3369 100.19 17. 2500 17.4300 17. 3212 89.75 OanadB 1 Dollar 100. 00 99. 7988 99. 9189 99. 5313 99.9568 99. 6895 99.69 97. 0137 97.8573 97. 3645 97.36 Ar£pntiilLS Peso (gold) 96.48 89. 6300 91. 3100 90.4600 91. 3900 91. 0754 94.40 71. 8300 74. 9300 73. 6542 76.34 Brazil *• Milreis... 32.44 10.9900 11. 6300 11. 5700 11. 9900 11. 7150 36.11 9. 8100 11. 7000 10. 8523 33.45 CJhilo i Peso (paper) 3 19. 53 10.6500 10. 9500 10. 8100 11. 5400 11.3469 58.10 9.9500 10. 6800 10 3631 53.06 China r- Shanghai tael 3 66. 85 74. 7300 75. 7500 74. 3200 75. 9600 75. 3423 112. 70 69. 6400 71.3500 70. 2704 105.12 India Rupee 48.66 35.5900 35. 8600 35.4900 35. 8900 35. 7065 73.38 30.1700 30. 8300 30. 4473 62.57 Yen 49.85 38. 5200 39. 7300 38. 3500 38. 5300 38. 4546 77.14 43. 3800 46. 0900 44.8965 90.06 OTHER COUNTRIES f Aust f ia Krone 20.26 0.0014 0. 0014 0. 0014 0.0014 0. 0014 0.01 0. 0014 0. 0014 0. 0014 0.01 Bulgaria.. Lev 19.30 .7279 .7344 .7286 .7371 .7335 3.80 .6833 .7506 .7143 3.70 Czechoslovakia. Crown 2.9518 2.9704 2.9727 3. 0171 2.9987 2. 8726 2.9080 2.8981 Fini and Markka.. 19.30 2. 5183 2. 5216 2. 5179 2.5225 2.5198 13.06 2.4658 2.4943 2. 4828 12.86 Greece Drachma 19.30 1. 5658 1. 6954 1. 6933 1.8167 1.7553 9.09 1. 7610 2. 0207 1. 9357 10.03 Huiigaiy __ Krone _ _ 20.26 .0014 .0014 .0013 .0014 .0014 .01 .0034 .0052 .0039 .02 Pola nd Zloty 19.30 19.1700 19.2000 19.1700 19. 2000 19.1788 99.37 Portugal Escudo 108. 05 4. 8500 4. 9600 4. 8200 4.9200 4. 8808 4.52 2.9700 3. 3700 3.1831 2.95 Rumiania Leu 19.30 .4870 .5180 .5133 .5288 .5191 2.69 .4913 .5096 .4993 2.59 Yugoslavia Dinar 19.30 1. 6017 1. 6384 1. 5524 1. 7788 1. 6347 8.47 1.1169 1.1471 1.1335 5.87 Curva Peso 100. 00 99. 9799 100. 0281 99. 9427 99.9777 99.9561 99.96 99.9349 100. 0000 99. 9736 99.97 Mexico _ .do __. 49.85 48.9750 49.4333 48.8000 48.9833 48.8800 98.05 47.6094 48. 4219 48. 0737 96.44 Un.iguay do 103. 42 94.2800 97. 8200 97. 6600 99. 5600 99. 0319 95.76 77. 4700 83. 2000 79. 6808 77.05 Chitia _ Mexican dollar 3 48.11 54. 5600 55. 6700 54. 7500 55. 9600 55. 4962 115.35 50.0200 51.4200 50. 3727 104.70 Hongkong Dollar 3 47. 77 54.9600 55. 7900 54.9600 55. 8800 55. 5458 116. 28 49.9500 50.7200 50. 2081 105.10 Straits Settlements... Singspore dollar.... 56.78 55. 0400 55. 5900 54. 0000 56. 2500 55. 3104 97.41 49.7100 50. 8500 50. 3481 88.67 i Weighted average, weighted on the basis of trade with each country for the 12 months ended December, 1924. The method of construction was described and all index numbers since November, 1918, were published on page 1260 of the BULLETIN for October, 1922. J Per billion paper marks. ' 1913 average. SILVER [Average price per fine ounce] February January London (converted at average rate of exchange). $0.69323 $0. 69391 New York _ . 68846 . 68817 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

FEDERAL RESERVE DISTRICTS \ MINN. MINNEAPOLIS \ KANSAS KANS. OKLA. Oklahoma City ARK. <£_ , Little*Rock/ ^ New Orleans BOUNDARIES OF FEDERAL RESERVE DISTRICTS BOUNDARIES OF FEDERAL RESERVE BRANCH TERRITORIES FEDERAL RESERVE BANK CITIES • FEDERAL RESERVE BRANCH CITIES o FEDERAL RESERVE BANK AGENCY Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis