Federal Reserve Bulletin, 1928-01

FEDERAL RESERVE BULLETIN JANUARY, 1928 ISSUED BY THE FEDERAL RESERVE BOARD AT WASHINGTON Business Record of 1927 Return of Italy to Gold Basis Foreign Exchange Rates, 1919-1927 Condition of all Banks in the United States UNITED STATES GOVERNMENT PRINTING OFFICE WASHINGTON 1928 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

FEDERAL RESERVE BOARD Ex officio members: ROT A. YOUNG, Governor. EDMUND PLATT, Vice Governor. A. W. MELLON, Secretary of the Treasury, Chairman. ADOLPH C. MILLER. CHARLES S. HAMLIN. J. W. MCINTOSH, GEORGE R. JAMEB. Comptroller of the Currency. EDWARD H. CUNNINGHAM. WALTER L. EDDY, Secretary. WALTER WYATT, General Counsel. J. C. NOELL, Assistant Secretary. E. A. GOLDENWEISER, Director, Division of Research E. M. MCCLELLAND, Assistant Secretary. and Statistics. W. M. IMLAT, Fiscal Agent. CARL E. PARRY, Assistant Director, Division of Re* J. F. HERSON, Chief, Division of Examination, and Chief Federal search and Statistics. Reserve Examiner. E. L. SMEAD, Chief, Division of Bank Operations. FEDERAL ADVISORY COUNCIL District No. 1 (BOSTON) » ARTHUR M. HEARD. District No. 2 (NEW YORK) JAMES S. ALEXANDER. District No. 3 (PHILADELPHIA) L. L. RUE. District No. 4 (CLEVELAND) HARRIS CREECH. District No. 5 (RICHMOND) _ JOHN F. BRUTON, Vice President, District No. 6 (ATLANTA) P. D. HOUSTON. District No. 7 (CHICAGO) __ FRANK O. WETMORE, President. District No. 8 (ST. LOUIS) BRECKINRIDGE JONES. District No. 9 (MINNEAPOLIS) THEODORE WOLD. District No. 10 (KANSAS CITY) _ P. W. GOEBEL. District NO. 11 (DALLAS) B. A. MCKINNEY. 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 BANES Federal Reserve Bank of— Chairman Governor Deputy governor Cashier Boston Frederic H. Curtiss W. P. G. Harding. W. W. Paddock W. Willett. New York Q. W. McGarrah Benj. Strong J. H. Case A. W. Gilbart.1 L.F. Sailer J. W. Jones.i G. L. Harrison Ray M. Gidney.i. E. R. Kenzel L. R. Rounds.» Philadelphia R. L. Austin Geo. W. Norris Wm. H. Hutt C. A. McDhenny. W. G. McCreedy.i Cleveland George DeCamp E. R. Fancher M. J. Fleming H. F. Strater. Frank J. Zurlinden Richmond Wm. W. Hoxton George J. Seay C. A Peple Geo. H. Keesee. R. H. Broaddus JohnS. Walden, Jr.» | Atlanta Oscar Newton Eugene R. Black Hugh Foster M. W. Bell. | Creed Taylor Chicago Wm. A. Heath J. B. McDougal C. R. McKay W. C. Bach man. i John H. Blair K. C. Childs.i J. H. Dillard.i D. A. Jones.i 0. J. Netterstrom.i St. Louis Wm. McC. Martin D. C. Biggs 0. M. Attebery 0. M. Attebery. Minneapolis John R. Mitchell W. B. Geery B. V. Moore Gray Warren. Harry Yaeger Frank C. Dunlop.1 Kansas City M. L. McClure W. J. Bailey C. A. Worthington J. W. Helm. Dallas C.C.Walsh Lynn P. Talley R. R. Gilbert Fred Harris. R. B. Coleman San Francisco Isaac B. Newton J. U. Calkins Wm. A. Day _ W. N. Ambrose Ira Clerk L. C. Pontious » Controller. 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 City: Cincinnati branch C. F. McCombs. Omaha branch L.H. Ear hart. Pittsburgh branch J. C. Nevin. Denver branch J. E.Olson. Richmond- Oklahoma City branch C. E. Daniel Baltimore branch A. H. Dudley. Dallas: Charlotte branch _ _. Hugh Leach. El Paso branch W. 0. Ford. Atlanta: Houston branch D. P. Reordan New Orleans branch. Marcus Walker. San Antonio branch M. Crump. J ackson ville branch Geo. R. DeSaussure. San Francisco: Birmingham branch A. E. Walker. Los Angeles branch Wm. M. Hale. Nashville branch J. B. Fort, Jr. Portland branch _ R. B. West. Chicago: Salt Lake City branch. W. L. Partner. Detroit branch W. R. Cation. Seattle branch C. R. Shaw. St. Louis: Spokane branch D. L. Davis. Louisville branch W. P. Kincheloe. Memphis branch W. H. Glasgow. Little Rock branch A. F. Bailey. SUBSCRIPTION PRICE OF BULLETIN THE FEDERAL RESERVE BULLETIN is the board's medium of communication with member banks of the Federal reserve system and is the only official organ or periodical publication of the board. 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. Outside of the United States, Canada, Mexico, and the insular possessions, $2.60; single copies, 25 cents. in Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

TABLE OF CONTENTS Page Review of the month—Business record of 1927 1 Return of Italy to gold basis 27 Report x>f Agent General for Reparation Payments 28 Election of directors of Federal reserve banks 7 New edition of board's regulations 7, 63 Revised figures of condition of reporting member banks 8 Condition of all banks in the United States 9, 103 Foreign exchange rates, 1919-1927 9, 56 Changes in membership in Federal reserve system 9 Treasury finance 10 National summary of business conditions 11 Financial, industrial, and commercial statistics: Reserve bank credit— Reserve bank credit in use 13 Discounts and deposits of Federal reserve banks 13 Monetary gold stock and money in circulation 14 Money rates in New York City 15 Federal reserve bank rates 15 Open-market rates 15 Rates charged customers by banks in principal cities 16 Member bank credit— Member bank reserve balances and borrowings at Federal reserve banks 17 Loans, investments, and deposits of reporting member banks 17 Bankers' balances in Federal reserve bank and branch cities 18 Commodity prices, security prices, and security issues 19 Industrial production 20 Factory employment and pay rolls 21 Building 22 Commodity movements 23 Wholesale trade 23 Retail trade 24 Bank suspensions and commercial failures 25 December crop report 26 Financial statistics for foreign countries: Condition of central banks 47 Condition of commercial banks 49 Discount rates of 33 central banks 49 Money rates in foreign countries 50 Gold exports and imports of principal countries 51 Foreign exchange rates 52 Price movements in principal countries— Wholesale prices 53 Retail food prices and cost of living 55 Law department—Regulations of the Federal Reserve Board, series of 1928 63 Changes in national and State bank membership 88 Fiduciary powers granted to national banks 88 Detailed banking statistics for the United States 89 IV Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

FEDERAL RESERVE BULLETIN VOL. 14 JANUARY, 1928 No. 1 REVIEW OF THE MONTH showed increasing activity following upon a recession in the preceding three months. In Industrial and trade activity in the United the first quarter of the year the output of States showed a further decline in the last minerals exceeded all previous records, reweeks of 1927, when allowance flecting the large production of bituminous Business in is made for the usual seasonal 1927 coal, stimulated by the threatened strike. trend, and at end of the year Output of manufactures increased during this production and wholesale trade were in smaller period and in the spring months was larger volume than at the close of any year since 1924. than for the corresponding period of any pre- Notwithstanding the recession in business in vious year. With the beginning of the coal recent months, however, the volume of activity strike on April 1, however, mineral production for the year as a whole was nearly as large as was sharply reduced and later in the spring the record established in 1926 and larger than manufacturers also began to reduce operations. in any previous year. The output of mines and factories and the volume of building construction were somewhat smaller than the year before, though larger than in preceding years. Factory employment showed a slight decline for the year and earnings of industrial workers were somewhat reduced, while the value of farm products was larger than in 1926. Distribution of commodities to consumers was maintained on a high level and there was no evidence of undue accumulation of inventories. The general level of commodity prices, 90 which had been declining for about two years, turned upward in the early summer of 1927 and at the close of the year was only about 1 80 per cent lower than at the end of 1926. Jan. Feb. Mar. Apr. May June July Au$. Sept. Oct. Nov. Dec. Throughout the year bank credit was ample Except for minor fluctuations, industrial profor all classes of enterprise, and money rates duction declined steadily for the remainder of were relatively low, particularly after midthe year, falling in July below the level of 1926 summer and early autumn when discount and after October below that of 1925. The rates at the reserve banks were reduced from accompanying chart shows fluctuations in the 4 to 33^2 per cent. The supply of capital funds daily average volume of industrial production arising from national savings was exception- for corresponding months of the past three ally- large and flotations of domestic and years, as indicated by the board's index. This foreign securities were in record volume. index includes both manufactures and min- This record for 1927 as a whole and for the erals, and, as given on this chart, is not adentire United States is the resultant of dif- justed for seasonal variations. A chart appearferent developments at differ- ing on page 11 of this issue shows that, when Industrial acent times of the year and in allowance is made for customary seasonal tivity the various parts of the coun- movements, the production of manufactures in try. Industry at the beginning of the year November, the latest month for which com- 1 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

FEDERAL RESERVE BULLETIN JANUARY, 1928 plete figures are available, was smaller than in union fields and partly in consequence of any month since November, 1924. the large stocks accumulated at the beginning Increase in manufacturing activity during of the year. Although these stocks were rethe early months of the year from the low point duced somewhat in the autumn, they conreached in December, 1926, was tinued relatively large throughout 1927. Prices Developments j ^ h h f for both anthracite and bituminous coal deby industries & . .&_ clined during the year. Crude petroleum also industries. Although increases was in excess supply owing to large production at that time were especially large in iron and from new w^ells, which began in the latter part steel, automobiles, and rubber tires, the higher of 1926 and continued until late in 1927 when level of production in the spring as compared there was some curtailment in output. Alwith the corresponding period of 1926 reflected though consumption of petroleum was the chiefly the output in the textile and leather largest on record, stocks were accumulated, industries. Cotton and silk consumption was and prices fell to the lowest level for the postlarger in 1927 than in any previous year, and war period. Production of nonferrous metals the wool and leather industries, recovering was reduced during the year and totaled somesomewhat from the depression of recent years, what less than in 1926. The smaller producwere more active than for any year since 1923. tion of copper strengthened the market con- In October and November these industries siderably, and in recent weeks the price of showed some decline in output along with copper has advanced. other industries but continued somewhat more active than a year earlier. The largest part of Building construction continued in large the decrease during the last half of the year volume during 1927, and the total value of occurred in the two industries showing the building contracts awarded for ill ing con- ^ country as a whole during greater increases in the earlier months—iron struction . , and steel and automobiles. Production of the year was estimated by the automobiles, estimated on the basis of figures F. W. Dodge Corporation as $6,800,000,000, for 11 months, was smaller in 1927 than in about $100,000,000 below 1926 but above any any earlier year since 1922, and the output in other - year. There were decreases of over November was smaller than in any month since $100,000,000 in contracts for residential build- February, 1922. Much of this decline was due ings and of nearly $200,000,000 in those for to suspension of production in the Ford plants industrial buildings, while awards for public during most of the last half of the year while works and public utilities increased by nearly preparations were under way for the manufac- $150,000,000, and there were also increases in ture of the new model. Curtailment of auto- institutional, public, religious, and recreational mobile production was a factor in the decline of buildings. Considered by sections of the activity in the iron and steel industry, in which country, there was a large expansion of conoutput wras in the smallest volume since 1924. tract awards in the Middle Western States and In addition to those recorded for the auto- small increases in the Middle Atlantic States, mobile and iron and steel industries, there were while the other areas showed decreases, the decreases in production during the last half of largest decline being in the Southeast. The the year also in nonferrous metals, building continuation of a high level of building activity materials, rubber tires, and food products, and during the past year has meant a further large all industries except textiles, leather, petroleum demand for building materials and sustained refining, and tobacco manufactures were less employment of labor, although decreases in active toward the end of 1927 than a year residential building and increases in construcearlier. tion of public works and public utilities re- Bituminous coal production was curtailed sulted in some shifts in the types of materials partly as a result of the miners' strike in and labor employed. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

JANUARY, 1928 FEDERAL RESERVE BULLETIN Agricultural developments during the year These figures indicate somewhat smaller rewere in contrast to the course of industry. turns from crops this year than in 1924 or Agricultural prospects, which at 1925, but income from cattle and dairy prod- Agricultural developments & b . &i nnin & f 1 . 927 were not ucts was larger than in those years. Furthermore, farmers have succeeded in recent years as bright as the industrial outin reducing somewhat their costs of production, look, improved considerably in the latter part so that increase in net returns has been relaof the year. At the opening of the year the tively greater than increase in the total value buying power of agricultural communities had been reduced by relatively small returns from of their products. 1926 crops, and, in addition, in the first half of As between different sections of the country, agricultural conditions were far from uniform. 1927 cotton prices were low, there was a sharp In the cotton region the prinbreak in hog prices, and a serious delay in the eograp ica . ^ smaller in volprogress of the corn crop; also in this half year lfferences i i i i occurred the disastrous flood in the Mississppi ume but larger m value than Valley. Late in the spring prices of agricul- in 1926. Winter-wheat production was smaller tural commodities began to rise, reflecting than in 1926, owing to decreases in yield in the chiefly increases in the price of cotton, corn, Southwestern and East North Central States, and cattle. Subsequently, prices of other while the spring wheat crop in the Northwest products also advanced, and the Department showed an increase in output of about 50 per of Agriculture's index of farm commodity cent. Although the corn crop was slightly prices, which was in April at the lowest point larger than in 1926, the increases were confined since 1922, rose by about 11 per cent during to the Western States, while in the eastern part the next five months. Since wholesale prices of the Corn Beit production decreased, and of nonagricultural commodities showed little there was also a decline in the returns from change during this period, the purchasing power hog production. Feeding of hogs was enof agricultural products increased. Thus dur- couraged last year by low corn prices, and when ing the period from September to November, the price of corn rose last spring, large sup- 1927, farm prices averaged about 6 per cent plies of hogs were offered for sale and prices higher than in the same period of 1926, while declined sharply. The Western and Northwholesale prices of nonagricultural products in- western States, on the other hand, profited in cluded in the index of the Bureau of Labor 1927 by higher prices for cattle and dairy Statistics showed a decline of about 6 per cent products. The cattle market recovered during for the corresponding period. the past year irom the depression consequent Unusually favorable weather in the autumn upon the general liquidation which has been permitted the harvesting of larger crops than in process ior several years, cattle prices rising had been expected earlier in the season, and, to the highest levels since 1920. This improvealthough yields were nevertheless generally ment has been aided by a similar recovery in smaller than last year, the total value of about the hide and leather markets. Production of 50 crops at prices prevailing on December 1 was dairy products increased in the last half of estimated to be about $635,000,000 larger than 1927, and with prices at a higher level, their in 1926. The estimated aggregate farm value value exceeded that for 1926. of these crops on December 1 for the past four Changes in the volume of production during years was as follows: the year were reflected in changes in the demand for transportation. In Distribution of i Value of 50 farm Year I crops commodities the first few months, when the tonnage of coal mined was the 1924 ; $9,364,600,000 largest on record, and later when manufactur- 1925._ i 8,948,730,000 1926-_ | 7,793,480,000 ing operations were at a high level, freight-car 1927. ! 8,426,626,000 loadings exceeded those of the corresponding Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

FEDERAL RESERVE BULLETIN JANUARY, 1928 period of any previous year. Later in the year, volume than in 1926. Sales of wholesalers when mining and manufacturing activity de- were relatively small during the spring and clined, car loadings also showed a decline when early summer months, but increased considercompared with previous years. In the autumn ably in August, owing to unusually cool months loadings of grains exceeded those of the weather in that month; in September and Ocsame period in 1926, reflecting the influence of tober, however, owing to the warmer weather, this year's larger spring wheat crop, but load- the sales fell below the level of 1926 and continued below that level in November. In genings of all other classes of commodities were eral, the last part of the year showed smaller smaller than a year earlier. During November decreases in wholesale trade as compared with and December total car loadings were below the corresponding period of 1926 than did the those of the same months of any year since first part of the year, and this was particularly 1922, and, when allowance is made for the true for the western and southern districts, in usual seasonal changes, the movement of which crop returns were larger than a year ago. miscellaneous commodities and of merchandise Department-store sales for the country as a in less-than-car-load lots was the smallest since whole, the course of which is indicated on the 1924. 120 120 DEPARTMENT STORE SALES AND STOCKS WHOLESALE DISTRIBUTION Adjusted for Seasonal Variations, 1323-25-100 110 80 Adjusted for Seasonal Variations Without Seasona/j4<// I 70 1923 1924- 1925 1926 1927 J80 1923 1924- 1925 1926 1927 Federal Reserve Board's index of sales in nine lines of wholesale Federal Reserve Board's index of sales and stocks of department trade combined. Average for 1923-1925=100 stores Distribution of merchandise at wholesale and chart, averaged about the same for 1927 as for retail in 1927, although somewhat smaller than 1926. In the first half of the year the volume in 1926, when all lines are of sales declined, reaching a low point in the Trade a \ taken into consideration, conearly summer, increased considerably in Auwholesale and ' tinued in large volume. Sales gust, reflecting the influence of the cool weathretail of wholesale firms in the nine er, and showed somewhat less than the usual lines of trade included in the board's new index seasonal expansion in the three subsequent of wholesale distribution,1 as shown on the months. Early reports indicate that the chart, were about 4 per cent smaller in 1927volume of holiday sales in December was somethan in 1926, this decrease reflecting in part what larger than in previous years. For the the decline in prices. The largest declines in year as a whole, sales in eastern and central sales as compared with last year were in dry industrial districts, with the exception of Philagoods, hardware, groceries, and meats. Sales delphia, were larger than in 1926, while those of men's clothing, boots and shoes, and drugs for the southern and western districts were were in about the same or in slightly larger smaller. Toward the end of the year, however, there was some improvement in the dis- 1 See page 23 of this BULLETIN and pp. 817-828 of the BULLETIN for tricts where crop returns were good. December, 1927. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

JANUARY, 1928 FEDERAL RESERVE BULLETIN During the year the marketing of industrial of the Bureau of Labor Statistics was 94 per and farm products proceeded smoothly, and cent of the 1926 average, as compared with there appeared to be little 105 per cent in March, 1925, the postwar high Stocks of comtendency toward accumulation point. The decline in 1926 was general for modities of inventories. Stocks of the all the main groups of commodities except more than 50 commodities shown in the table fuels, which were affected by unusual circumon page 6 show about an equal number of stances in that year. The sharpest decreases increases and decreases for the 12 months were in agricultural products, which had shown ending in November. Supplies of wheat ex- relatively the most rapid rise in 1924 and 1925. ceed those of last year, owing to the large Prices of most of the n on agricultural commodicrop, and those of dairy products and pork also ties as indicated by indexes for groups and subincreased during the year, but stocks of cotton, groups, however, declined almost steadily from oats, beef, lard, and eggs are smaller than a 1923 to the early months of 1927, when indexes year ago. Among the minerals, stocks have for clothing materials and fuels reached new generally increased somewhat, increases being low points for the postwar period and those for especially large for coal as a result of reduced metals, building materials, chemicals and drugs, consumption and for petroleum owing to the and house furnishings were the lowest since unusually large increase in production. In early in 1922. Farm products and foods, on textiles, manufacturers' stocks of most of the the other hand, remained above the low points products for which figures are available have of 1923 and 1924. In the summer months the increased, while stocks of leather have declined general level of prices began to rise, a result at to new low levels. Crude-rubber supplies first of increases in the prices of corn, wheat, have increased, but those of tires and tubes cotton, and hides and later also of advances in held by manufacturers have declined slightly. livestock, food products, cotton goods, and Changes during the past two years in stocks of leather. Prices of most of the other commodithese industrial commodities show no importies remained relatively stable, while some, tant sustained increases except in some of the notably building materials, fuels, and iron metals, in fuels, and in crude rubber. Stocks and steel, continued to decline. The all-comof merchandise carried by wholesale firms were modities index rose from 94 in May to 97 in smaller in value in 1927 than in 1926 in most October, and remained near this level for the lines from which reports are received, while remainder of the year. department-store stocks continued in about the same volume in 1927 as in 1926. Efficient Declining prices and curtailed industrial actransportation, which assured prompt delivery tivity in the course of the year has had the effect of orders, and the absence of rapid price of reducing profits of industrial Industrial advances w^ere among the influences against corporations below the high profits the undue accumulation of inventories. level of 1926. Net profits of 171 corporations, for which reports are summarized For the year as a whole the average level of by the Federal Reserve Bank of New York, wholesale commodity prices was lower in 1927 were about 5 per cent smaller for the first three than in any year since 1921. Commodity quarters of 1927 than for the same period of ement of prices The downward moV 1926, but considerably larger than in the same wholesale prices, which began period of 1925 or 1924. Profits of these corpolate in 1925, continued practically without rations in the first quarter of 1927 were in interruption through 1926 and the early months approximately the same volume as in the of 1927. The low point of the movement was reached in April and May, when the price index first quarter of 1926; in the second quarter 79290—28 2 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

6 FEDERAL RESERVE BULLETIN JANUARY, 1928 however, profits were more than 5 per cent REPORTED STOCKS (^[AGRICULTURAL AND INDUSTRIAL less than in 1926, and the third quarter's COMMODITIES AT THE END OF NOVEMBER l returns showed a decrease compared with last year of 10 per cent. Volume of member bank credit in use in- Commodity creased rapidly during 1927, the growth being largely in investments and in Bank credit loans on securities; there was AGRICULTURAL and m o n ey no increase in the demand for rates Cotton (thousands of bales) 8,010i ioans to finance trade and in- Cottonseed (thousands of tons)_ 1,392 Wheat (thousands of bushels) _ 78,412 dustry owing to the smaller volume of busi- Corn (thousands of bushels).._ 32,219! Oats (thousands of bushels)... 50,063 ness and the lower level of commodity prices. Cheese (thousands of pounds).. 81,084 Apples (thousands of barrels) _ _ 10,468| Reserve bank credit outstanding throughout Butter (thousands of pounds). 64, 377; Frozen poultry (thousands of the year was influenced chiefly by the effects of pounds) Beef (thousands of pounds) international gold movements. In the early Pork (thousands of pounds) Lard (thousands of pounds) months of the year large gold imports were Eggs (thousands of cases) Tobacco (millions of pounds). _ used by member banks to reduce their indebt- ^ INDUSTRIAL edness at the reserve banks and the volume of Metals: reserve bank credit declined considerably be- Iron ore (thousands of long tons) 41,472 42,761 41,686 -0.5 -3.0 low the level of 1926. From May to the end Copper, refined (short tons). 90,874 73,856 67,838 +34.0 +23.0 Copper blister (short tons). 250, 071 277,479j 249,064i +0.4 -9.9 of the year, however, gold exported and ear- Zinc, slab, at refineries (short tons). 39,320 14,481! 6,922+468.0+171.5 marked for foreign account far exceeded gold Lead, crude (short tons)... 3155,868 3118,31113104,999; +48.0 +31.7 Fuels: imports, with the consequence that there was Bituminous coal (thousands of short tons) «61,900 43, 000i < 48,000| +29. 0 +44. 0 an increased demand for reserve bank credit, Petroleum, crude (thouand at the end of the 3rear total bills and securi- Ga s s a o n l d in s e o f ( m ba i r ll r i e o l n s) s of gal- 3345,357 77,099 296,690: +17. 6; +25.9 lons) 3 1,241 1,508 1,590 -19.7: -15.3 ties of the reserve banks were in larger volume Gas and fuel oil east of California (millions of than at any time in the past six years. The gallons) 3 1,394 1,128 1,037: +23.4 +25.3 Building materials: growth in the demand for reserve bank credit, Yellow pine, southern (millions of board feet).. 856 812 929 -7.9 +5.4 however, was'met by the reserve banks largely Yellow pine, western (millions of board feet) 1,073 1,143 1,102 -2.6 -6.1 through the purchase of securities in the open Hardwoods (millions of board feet) 3 890 898 788 +12.9 -0.9 market, so that borrowing by the member Flooring, oak and maple (thousands of board feet). 97,059 93, 764 68,276 +42.2 +3.5 banks increased less than is usual in the autumn Common brick, burned (thousands).-. 451, 563 279,188 +93.0 +19.3 and early winter months, and was in consid- Paving brick (thousands). 3 66,183 •82,7213 111,155-40.5 -20.0 Cement (thousands of barerably smaller volume at the end of 1927 than at rels) 15, 971 16,243 14,450+10. 05 -1.7 Enameled sanitary ware the same period of the two preceding years. (thousands of pieces) 695; 620 +12.1 -16.2 Textile materials and products: | As the consequence of the relatively small Co ( t t t h o o n u , s r a a n w ds , a o t f w b a a r l e e h s) ouses 5,969* 6,517 5,207 +14. 6 -8.4 volume of indebtedness of member banks at the Co ( t t t h o o n u , san r d a s w o , f b a a t l es) mills 1,5511 1,493 1,457 +6.5 +3.9 reserve banks, due largely to security purchases Cotton fabrics, finished (cases).. 41,350* 37,113 40,511 +2.1 +11.4 by these banks, conditions in the money market W ( o t o h l o , u r s a a w nd , s m o a f n p u o fa u c n t d u s r ) ers H75,436! ! 2161,943'182,506 -3.9 +8.3 remained easy, notwithstanding the large Wool, raw, dealers (thousands of pounds) !«181,671i«213>7702190,504 -4.6 -15.0 growth of member bank credit and the export 1 Stocks in every case are as of Nov. 30 unless otherwise noted. These demand for gold, and money rates in thefigures are derived from various sources and all, except those referring to bituminous coal, are published regularly in the Survey of Current second half of the year were considerably be- Business of the Department of Commerce. Coal stocks are compiled at irregular intervals by the Bureau of Mines. low the levels prevailing at the same season of 2 Stocks as of Sept. 30. 3 Stocks as of Oct. 31. 1926 and 1925. * Stocks are as of report dates Nov. 1, 1925, Oct. 1, 1926, and Oct. 1, 1927. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

JANUARY, 1928 FEDERAL RESERVE BULLETIN REPORTED STOCKS OF AGRICULTURAL AND INDUSTRIAL as experience had proven to be necessary or COMMODITIES AT THE END OF NOVEMBER—Continued desirable. The full text of the new regulations and a brief introductory statement calling attention to the more important changes are Per cent of change in published in this issue of the BULLETIN, be- 1927 over— Commodities 1927 : 1926 1925 ginning on page 63. 1925 1926 Textile materials and prod- ELECTION OF DIRECTORS ucts—Continued. Silk, raw, at warehouses (bales) 52, 009 47,130 46,813 +11.2 +10.5 The following directors of Federal reserve Hosiery (thousands of doz- banks have been elected for the three-year en pairs) 3 7,959 3 6,843 3 5,476 +45.3 +16.3 Knit underwear, (thou- term beginning January 1, 1928: sands of dozen garments). 1,073 1,011 95' +12.1 +6.1 Leather: Sole leather (thousands of CLASS A DIRECTORS backs, bends, and sides). 3 2,965J 3 4,312 3 6,87 -56. 91-31.2 Upper leather, cattle (thou- Boston—EdwardS. Kennard, Rumford, Me. (reelected). Up sa p n e d r l o e f a t s h id e e r, s ) calf and kip 3 2, 81' 3 3,644 3 3,912 -28.0 -22.7 New York—Delmer Runkle, Hoosick Falls, N. Y. (thousands of skins) 3 5,264 35,964| 3 6,308 -16.6 -11.7 (reelected). Upper leather, goat and Philadelphia—George W. Reily, Harrisburg, Pa. Rubbe k r i : d (thousands of skins) 3 17, 521 3 19,3521 3 18,360 -4.6 -9.5 Cleveland—O. N. Sams, Hillsboro, Ohio (reelected). Rubber, crude (long tons). 2 90,801 -'58,883 2 33,131+174.2 +54.3 Richmond—Chas. E. Rieman, Baltimore, Md. (re- Pneumatic tires s 7, 660 7, 798 5,216 +46.9 -1.8 elected) . Woo I d n n p e u r lp tu a b n e d s paper: «10,296 12,453| 7,119 +44. 6 -17.3 Atlanta—H. Lane Young, Atlanta, Ga. Wood pulp, chemical Chicago—George B. Reynolds, Chicago, 111. (reelected). (short tons) 39,310 43, 638 38,888 +1.1! -9.9 St. Louis—Max B. Nahm, Bowling Green, Ky. Wood pulp, mechanical (short tons) 141.163 200,932 194,346 -27.4! -29.7 Minneapolis—Karl J. Farup, Park River, *N. Dak. Newsprint (short tons) 28,543 13, 592 17,418 +63.91+110.0 Kansas City—C. C. Parks, Denver, Colo, (reelected). Book paper (short tons) 55,212 43,0481 45,026 +22.6| +28.3 Dallas—J. H. Frost, San Antonio, Tex. (reelected). Wrapping paper (short tons) 46,871 38,444i 46,191 +1.5! +21.9 San Francisco—Howard Whipple, Turlock, Calif, Fine paper (short tons) 40,138 42, 367 40,207 -0.2 -5.3 (reelected). Paperboard (short tons).... 41,976 52,014; 29,867 +40.5 j -19.3 CLASS B DIRECTORS 2 Stocks as of Sept. 30. 3 Stocks as of Oct. 31. ^Preliminary. Boston—Charles G. Washburn, Worcester, Mass. (reelected). New York—Samuel W. Reyburn, New York, N. Y. CHANGE IN GOVERNORSHIP OF ATLANTA (reelected). BANK Philadelphia—Arthur C. Dorrance, Camden, N. J. Cleveland—S. P. Bush, Columbus, Ohio. Gov. M. B. Wellborn, of the Federal Reserve Richmond—Edmund Strudwick, Richmond, Va. (re- Bank of Atlanta, resigned effective December elected) . 31, 1927, and the directors of the Atlanta bank Atlanta—-J. A. McCrary, Decatur, Ga. (reelected). Chicago—August H. Vogel, Milwaukee, Wis. (rehave appointed Eugene R. Black as Mr. Wellelected). born's successor. Mr. Black has served as St. Louis—Rolla Wells, St. Louis, Mo. (reelected). class A director of the Atlanta bank since Jan- Minneapolis—John S. Owen, Eau Claire, Wis. (reuary 1, 1925. elected) . Kansas City—Thos. C. Byrne, Omaha, Nebr. (reelected) . Dallas—J. R. Milam, Waco, Tex. NEW EDITION OF BOARD'S REGULATIONS San Francisco—William T. Sesnon, San Francisco, Calif, (reelected). Under date of December 22, the Federal Reserve Board issued a revised edition of its reg- APPOINTMENT OF CLASS C DIRECTORS ulations, to become effective January 3, 1928, and to be known as " Regulations of the Federal The following class C directors have been Reserve Board, Series of 1928." The primary appointed for the three-year term beginning purpose of this revision is to bring the regu- January 1, 1928: lations into conformity with the provisions of Boston—Allen Hollis, Concord, N. H. (reappointed). the Federal reserve act as amended by the New York—Clarence M. Woolley, New York, N. Y. McFadden Act of February 25, 1927. The (reappointed). board took this occasion to review all of its Philadelphia—Alba B. Johnson, Philadelphia, Pa. Cleveland—William W. Knight, Toledo, Ohio (reexisting regulations and to make such changes appointed) . Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

8 FEDERAL RESERVE BULLETIN JANUARY, 1928 Richmond—Frederic A. Delano, Washington, D. C. to about 650 in 1927, but this decline has not (reappointed). appreciably impaired the comparability of the Atlanta—George S. Harris, Atlanta, Ga. figures, because it has reflected for the most Chicago—W. A. Heath, Chicago, 111. (reappointed). St. Louis—William McC. Martin, St. Louis, Mo. (re- part the consolidation of banks that had appointed) . previously been reporting separately. When a Minneapolis—Homer P. Clark, St. Paul, Minn, (re- reporting member bank has withdrawn from appointed) . the system, as has happened at infrequent Kansas City—E. M. Brass, Grand Island, Nebr. Dallas—S. B. Perkins, Dallas, Tex. (reappointed). intervals, it has generally been possible to San Francisco—Walton N. Moore, San Francisco, substitute for it therafter another member Calif, (reappointed). bank of corresponding size in the same city not previously on the reporting list. In APPOINTMENT OF CHAIRMEN AND DEPUTY general, however, changes in the reporting CHAIRMEN list have not been of importance, and the figures may be considered as relating in effect The following have been designated as Fedto an identical group of banks. eral reserve agents and chairmen of the board A recent change, however, arising from the of directors of the Federal reserve banks for consolidation on December 1, 1927, of a large terms of one year, expiring December 31, 1928: nonmember bank at Chicago with a reporting Boston—Frederic H. Curtiss. member bank, occasioned an increase in the New York—Gates W. McGarrah. total loans and investments of the reporting Philadelphia—Richard L. Austin. Cleveland—George DeCamp. member banks in that city—and consequently Richmond—William W. Hoxton. in the corresponding national total for all Atlanta—Oscar Newton. reporting member banks—of about $123,- Chicago—W. A. Heath. 000,000; smaller changes were occasioned in St. Louis—William McC. Martin. Minneapolis—John R. Mitchell. the totals for other items shown on the con- Kansas City—M. L. McClure. dition statement. In order to enable the Dallas—C. C. Walsh. board to provide back figures comparable with San Francisco—Isaac B. Newton. the new totals the incoming bank has furnished The following have been designated as weekly condition statements for all dates back deputy chairmen of the Federal reserve banks to December 8, 1926, and by using these for terms of one year, expiring December 31, figures the board has been able to show in each 1928: of its weekly statements, beginning with that Boston—Allen Hollis. for December 7, 1927, revised figures for the New York—Owen D. Young. preceding week and the corresponding week Philadelphia—Alba B. Johnson. a year ago. In this issue of the BULLETIN, Cleveland—Lewis B. Williams. furthermore, all of the regular retrospective Richmond—Frederic A. Delano. tables affected by the revision (those showing Atlanta—W. H. Kettig. Chicago—James Simpson. monthly averages of weekly figures, pages St. Louis—John W. Boehne. 17-18) have been put on the new basis for the Minneapolis—Homer P. Clark. period December, 1926-December, 1927. At Kansas City—W. L. Petriken. Dallas—Clarence E. Linz. the same time one other revision covering the San Francisco—Walton N. Moore. year 1927 has been made, affecting the figures shown for the different classes of loans in New York City and the corresponding national totals. This revision, which was made neces- REVISED FIGURES OF CONDITION OF sary by revised reports from two banks in REPORTING MEMBER BANKS New York City, has had the effect of trans- The board's weekly statements of condition ferring from the class of "all other loans" to of reporting member banks in leading cities, "loans on securities" of an amount aggrewhich for more than nine years have been gating about $80,000,000 in January and given to the press currently and published smaller amounts down to about $30,000,000 regularly in the FEDERAL RESERVE BULLETIN, in subsequent months. The weekly figures have been made up as far as possible on a for December shown on pages 96-99 are all strictly comparable basis, from month to month on the new basis, and back figures, by weeks, and from year to year. The number of banks on this basis will appear in the board's next included has declined from about 800 in 1919 annual report and can be had upon request. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

JANUARY, 1928 FEDERAL RESERVE BULLETIN CONDITION OF ALL BANKS IN THE UNITED of exchange for the entire period for which STATES they have been computed, both by months At the beginning of October, 1927, according and years; in most cases the period covered is to figures which have recently become avail- from November, 1918, to December, 1927. able, all banks in the United States, including both members of the Federal reserve system and nonmembers, had loans and investments CHANGES IN MEMBERSHIP IN THE FEDERAL RESERVE SYSTEM aggregating about $54,650,000,000—about $720,000,000 more than at the end of the first During the third quarter of the year the half of the year, as shown by the table, which number of national bank members of the gives separate figures for member and non- Federal reserve system increased by 8 and the member banks. number of State bank members decreased by 20, making a net decline of 12 in the number LOANS AND INVESTMENTS OF ALL BANKS IN THE of member banks in active operation as indi- UNITED STATES cated by the number of banks submitting [In millions of dollars] required reports of condition on June 30 and October 10, 1927. The decrease in the number Member j Non- All banks banks member of member banks was the net result of 57 losses banks to membership, for the most part the result of October 10, 1927: ! suspensions and mergers between member Loans 37,616 j 23,492 14,124 Investments 17,036 i 9,959 7,077 banks, and 45 additions. Changes in the status of banks which affected membership in Total 54,652 | 33,451 21,201 the system are summarized for the period in Change from June 30, 1927: i1 Loans +485 :j +343 +142 the following table: Investments. +233 |; +141 +92 Total +71S !; +484 +234 CHANGES IN MEMBERSHIP IN THE FEDERAL RESERVE SYSTEM, JULY 1, 1927, TO OCTOBER 10, 1927 The increase for the third quarter of the year, which reflected a growth both of loans Class of change Number and of investments, was only about two-thirds of banks as large as that of the second quarter but somewhat larger than for the first quarter of the Active member banks, July 1, 1927 9,099 year. Banks joining the system 45 Figures showing the principal resources and Banks withdrawing from the system__ _. 120 liabilities of all banks on October 10, 1927, are Net increase from banks joining and withdrawing 25 Decrease in membership through mergers between member given in detail elsewhere in this issue of the banks, suspensions, and voluntary liquidation 37 BULLETIN, by Federal districts and by States, Net decrease for the period -12 with comparative figures for preceding call Active member banks, October 10, 1927 9,087 dates. These figures, as compiled by the Federal Reserve Board, are now available for 1 Includes 7 withdrawals which were incidental to the absorption o£ every call date since June 30, 1923. Back member banks by existing nonmember banks. figures are given in Table 72 of the board's As against 45 banks that joined the system annual report for 1926. there were 20 that withdrew from membership, resulting in a net voluntary accession^ of 25 banks. Of the banks that joined the FOREIGN EXCHANGE RATES3 1919-1927 system, 24 were newly organized national Figures showing the movement of rates of banks (one of them succeeding a national bank exchange at New York City have been pub- that had previously suspended), 17 were nonlished in the FEDERAL RESERVE BULLETIN for member banks that became members—7 as several years for a considerable number of state institutions and 10 taking out charters countries. These figures are monthly averages as national banks—and 4 were banks which (and yearly averages) of daily quotations, and resumed operations after having previously most of them, since July, 1921, are based upon suspended. Of the banks that withdrew from quotations furnished by the Federal Reserve the system, 7 were State banks that volun- Bank of New York in accordance with tariff tarily relinquished membership after advance legislation passed in May of that year. The notice to the Federal Reserve Board, 1 was a others are taken from unofficial sources. member State bank which failed to renew its In this issue of the BULLETIN (pp. 56-62) membership in the system at the expiration tables are given showing these average rates and renewal of its State charter, 5 were con- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

10 FEDERAL RESERVE BULLETIN JANUARY, 192S verted into nonmember State banks, and 7 $250,000,000, which had been provisionally were absorbed by existing nonmember banks. specified for the issue. The net gain in membership from banks Treasury disbursements on December 15 joining and withdrawing from membership included payment of interest which came due was more than offset by losses incidental to on that date in the amount of some $75,000,000; mergers between member banks and suspen- and payment of 4J^ per cent Treasury notes— sions. Ninteen losses to membership resulted an issue of January, 1923, which matured on from mergers between member banks, making December 15 in the amount of some $336,000,a total o 127 since the first of the year. Sus- 000. These notes were accepted in subscrippensions accounted for the loss of 17 banks tion for the new certificates, but in making and voluntar3r liquidation for the loss of one. allotments no preference was given to such Changes for the period are shown in detail in subscriptions over subscriptions in cash. the following table, by class of member bank: Payments received December 15 under foreign debt settlements, on account of prin- CHANGES IN THE NUMBER OF MEMBER BANKS cipal and interest, included a payment by THE FEDERAL RESERVE SYSTEM, BY CLASS OF Great Britain of $92,575,000, which was MEMBER, JULY 1 TO OCTOBER 10, 1927 tendered in the 43^ per cent Treasury notes maturing December 15; and payments in cash Number of member banks received from Belgium, Czechoslovakia, Es- Class of change tonia, Finland, Hungary, Lithuania, and Total National State Poland, amounting in the aggregate to some $3,970,000. Active member banks, July 1, 1927 -. 7,790 1,309 Provisional settlement of the indebtedness Additions to membership: of the Greek Government to the United Organization of national bank 23 | Conversion of nonmember bank to States, amounting on January 1, 1928, to national ... 10 $19,659,836, principal and interest, was an- Admission of State bank 7 Resumption following suspension. __ 4 nounced by the Secretary of the Treasury on Conversion within the system Other additions. _ December 5. The Secretary proposed to recommend to Congress the concluding of an Total additions.. 45 41 agreement for funding this indebtendess over Losses to membership: Merger between member banks— a period of 62 years, on the basis ol the British Intraclass j settlement with Greece effected last April. Interclass. _ I Voluntary liquidation (terminal) _ _ _ \ As a part of this settlement, under credits Suspension and insolvency... j Absorption of member bank by non- j established in 1918-19, a further advance to member bank _ j the Greek Government of $12,167,000 at 4 Conversion of member bank to non- j member bank _ j per cent is proposed, with provision for amor- Withdrawal of State bank ! Conversion within the system tization over a period of 20 years. This loan will be added to the loans secured on the Total losses.. 57 ; 33 27 Greek revenues now under the control of the Net change- -12 ! +8 -20 International Financial Commission, and the Active member banks, October 10,1927- 9,087 7,798 1,289 proceeds of the loan are to be applied to the 1 Succession between members of one class and members of the othe work of the refugee settlement commission. without effect on the number of banks in the system. 2 National bank organized to succeed a national bank that suspended during the preceding quarter. SUBSCRIPTIONS AND ALLOTMENTS, BY FEDERAL RE- 3 Includes 1 bank which failed to renew its membership in the system at the time of the expiration and renewal of its State charter. SERVE DISTRICTS [3M per cent Treasury certificates of indebtedness, dated December 15, 1927, maturing December 15, 1928. Series TD-1928] [In thousands of dollars] TREASURY FINANCE Federal reserve district Subscriptions: Allotments To provide for its cash requirements until March, in so far as these requirements may Total. $1,290,117 | $261,761 exceed tax and other receipts, the Treasury Boston ._ 96,171 22, 741 announced early in December an offering of New York 480,678 82,066 one-year Zx/i per cent certificates. This offer- C Ph le i v la e d la e n l d phia.. 1 9 34 2 , , 1 3 6 5 0 4 2 20 5 , , 6 42 1 2 3 ing was freely subscribed for, as is shown in Richmond 50, 043 12, 788 Atlanta 59, 239 16,619 the table following. Total subscriptions of Chicago 131, 630 27,119 St. Louis 25, 604 7,007 some $1,290,000,000 were scaled down in Minneapolis... 14. 553 4,247 making allotments to $261,760,000, which Kansas City.. 17', 839 5,382 Dallas. 47, 345 13, 381 was somewhat in excess of the amount, San Francisco.. 140,498 24, 372 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

JANUARY, 1928 FEDERAL RESERVE BULLETIN 11 NATIONAL SUMMARY OF BUSINESS CONDITIONS Industrial activity and freight-car loadings production of the 17 principal crops was about declined further in November, while retail trade 2 per cent less than last year, but 3 per cent showed more than the usual seasonal increase. above the average of the last 10 years. The general level of wholesale commodity Trade.—Retail trade increased slightly more prices, after advancing for four months, re- than is usual in November. Compared with a mained practically unchanged in October and year ago, retail trade of department stores, November. mail-order houses, and chain stores was larger, Production.—Output of manufactures and while wholesale trade continued in slightly minerals was reduced in November, and the smaller volume in nearly all reporting lines. combined index of production, after adjust- Freight-car loadings declined during Novemments for customary seasonal variations, fell ber, and in the early part of December were below the 1923-1925 average for the first time smaller than in the corresponding period for since 1924. The largest decline was in the the past four years. There were large deoutput of automobiles, owing largely to'prep- creases in loadings of all classes of commodities. PERCENT 150 150 100 100 50 50 PRODUCTION OF MANUFACTURES AND MINERALS WHOLESALE PRICES 0 1923 192A- 1925 1926 1927 1923 1924 1925 1926 1927 Index of production of manufactures and minerals. (1923-1925 Index of United States Bureau of Labor Statistics. (1926 =100, average=100.) Latest figures, November base adopted by bureau.) Latest figure, November aration for production of new models. Iron Prices.—The general level of wholesale comand steel production has also declined further modity prices, as measured by the index of the and in November was the lowest since 1924. Bureau of Labor Statistics, after a continuous In December, however, inquiries for iron and advance since early in the summer, remained steel increased. Textile-mill activity was at practically the same level in November as in slightly curtailed in November but continued October. Changes were relatively small in all at a higher level than in previous years. There groups, increases occurring in foods and hides were decreases in the production of coal, building and leather, and decreases in farm products, materials, and leather and shoes. Building textiles, fuels, and building materials. In the contract awards showed seasonal declines in first two weeks of December prices of wheat, November and in the first two weeks of Decem- cattle, hogs, cotton, pig iron, and softwood ber and were slightly smaller than in the corre- lumber declined, while those of silk, woolen sponding period of last year. goods, hides, and sole leather advanced. The total value of about 50 crops in 1927 is Bank credit.—Between the middle of Noestimated by the Department of Agriculture at vember and the middle of December total $8,430,000,000, an increase of $635,000,000 over loans and investments of member banks in 1926. The greatest increases in value were leading cities showed a considerable increase, shown for cotton, corn, barley, and oats, while reflecting continued growth in the volume of the largest decrease for any individual crop was loans on securities and in the banks' investment shown for potatoes. The physical quantity of holdings. In the same period loans chiefly for Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

12 FEDERAL RESERVE BULLETIN JANUARY, 1928 BILLIONS OF DOLLARS BILLIONS OF DOLLARS commercial purposes, which reached a seasonal 10 10 peak in October, showed a further slight decline. At Federal reserve banks the seasonal increase in currency requirements and the continued demand for gold for export during the four weeks ending December 21 were reflected in a growth in member bank borrowing. At the end of this period the total volume of reserve bank credit in use was larger than on any other date in the past six years. Somewhat firmer conditions in the money market in December were reflected in increased rates on call money. Rates on prime commercial paper and bankers' acceptances remained 1923 1924- 1925 1926 1927 unchanged during the month. Monthly averages of weekly figures for banks in 101 leading cities. Latest figures are for December FEDERAL RESERVE BOARD INDEXES OF PRODUCTION, EMPLOYMENT, AND TRADE ! Building contracts Department-store Produc-1 awarded 1 tion of miner- Year and als i month Monthly average 1923-1925=100 Monthly average 1919=100 1926 July 107 107 107 126 124 108 1 91 97 93 104 99 133 125 133 August 111 111 109 146 129 108 : 107 97 94 108 105 134 130 130 September. _. 112 112 111 137 130 109 117 100 96 108 131 144 142 132 October 111 110 115 126 126 109 j 111 94 96 112 158 139 153 137 November. __ 108 106 118 119 130 108 97 95 109 156 138 156 138 December... 105 103 119 131 136 106 [ 84 94 108 234 146 128 137 1927 January 107 105- 116 94 123 105 ; 87 94 ' 92 102 114 130 I 124 139 February 109 107 118 96 131 109 | 91 % ' 94 109 107 139 131 139 March 111 110 118 151 131 109 ! 103 96 : 94 110 129 129 142 140 April. 108 109 104 147 128 108 | 90 94 03 108 143 140 143 138 May 111 111 108 135 126 107 i 87 95 93 108 132 127 138 138 June. 108 108 104 154 144 104 ! 87 93 ! 92 106 130 130 129 136 July 106 106 100 130 128 101 ! 88 95 ; 91 101 97 130 125 133 August 107 107 106 135 119 104 : 111 100 ! 91 104 113 144 130 130 September... 105 105 105 127 121 104 ! 112 96 ! 92 104 130 143 143 133 October 103 102 105 137 137 101 I 106 91 I 92 105 151 133 152 136 November... 98 98 101 114 125 93 95 90 101 156 139 154 137 i The indexes of production and car loadings are adjusted to allow for seasonal variation; the indexes of building contracts, wholesale disribution, and 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

JANUARY, 1928 FEDERAL RESERVE BULLETIN 13 FINANCIAL, INDUSTRIAL, AND COMMERCIAL STATISTICS RESERVE BANK CREDIT RESERVE BANE CREDIT IN USE [Monthly averages of daily figures. In thousands of dollars] Ril.liONS OF DOLLARS BILLIONS OF DOLLARS 2 Bills disi Month c R r b e e a d s n e it r k v in e m co e u f m o n r t b e e d r bo B u il g ls ht U s S e t n t c i a i e u t t s r e e i s d banks 1926— July : 1,166, 564 231,132 379,745 August. ; 1,158,264 555, 799 245, 094 353,903 September ! 1,225,236 641, 797 263, 992 315,747 October j 1,269,356 665, 566 294,296 306, 413 November ! 1,270,057 618, 367 346,859 302, 30» December ! 1,380,571 671, 722 384,826 321, 446 1927—January _ | 1,146, 523 486, 875 345, 448 310, 637 February I 1,007,624 305, 013 306, 707 March | 1,029,319 427, 716 254, 618 344, 921 April. 1,038,857 447,286 248, 429 341, 081 May 999,504 472, 984 233, 224 291, 495 June 1,033,123 428,563 205,273 397,764 July 1,026,152 453,997 189, 774 381,081 August 1,021,830 409, 439 173,122 438, 511 September- 1,139, 342 422,192 215, 926 500, 637 Acceptance's October 1,213,191 424,413 281,903 506,177 November.. 1, 331,008 415, 216 335, 908 579, 238 December.. 1,513,119 528, 624 377, 712 605, 841 1925 1926 1927 Monthly averages of daily figures for 12 Federal reserve banks. i Total holdings of bills and securities by all Federal reserve banks Latest figures are averages for December including "other securities" and foreign loans on gold. DISCOUNTS AND DEPOSITS OF FEDERAL RESERVE BANKS [Monthly averages of daily figures. In thousands of dollars] Federal Reserve Bank Month Total New Rich- At- Minne- ! Kansas San Boston York mond lanta Chicago apolis City !Dallas Francisco Discounts: 1926—June 476,044 24,816 117,785 49,243 43,977 47,366 38,384 52, 547 28,536 6,254 18, 472 11,921 37, 745 July 548,966 34,529 165,983 48,135 37,221 41,775 42,011 60,854 30,642 7,556 16,164 16.138 47,958 August 555,799 36,653 163,270 45,851 33,666 44,918 47,585 54,591 35,196 13,076 12,693 20.139 48,161 September.. 641,797 45,498 182,447 46,224 44,966 46,359 65,345 67,736 43,462 11,212 13,542 25,000 60,006 October 665,566 42,180 164,579 49,918 70,386 45,664 55,681 89,224 42,163 11,145 12,455 19,451 62,720 November- 618,367 38,031 134,908 43,826 75,602 35,516 50,455 105,702 37,548 8,613 16,866 17, 223 64,077 December.. 671,722 I 55,726 154,570 60,785 90,051 29,620 47,553 119,165 37,844 5,101 13,663 10,320 I47.324 1927—January 486,875 34,476 120,787 44,184 62,107 22,498 34,435 90,847 19,072 4,146 10,256 5,606 38,461 February... 393,636 28,669 90,232 36,158 39, 424 23,409 26, 738 78,297 14, 531 4,324 9.437 3,215 ! 39,202 March 427, 716 35,538 114, 391 41,819 31, 888 22,221 31,389 70,691 14, 374 4,609 8,584 3,197 j 49,015 April 447,286 23,201 121,628 43,744 53,890 22,506 34,140 56,281 16,202 6,058 11,902 4,403 53,331 May 472,984 37,129 137, 765 45,841 43,624 25,450 34,625 52, 679 24,024 6,737 17, 333 4,670 43,107 June 428, 563 33, 843 91.932 45,227 41,801 22,374 32, 618 63,917 26, 251 6,514 16, 524 6,172 41,390 July 453, 997 29,689 122, 892 46,791 21,839 36, 273 59,685 29,818 5,952 12, 460 7,374 45,831 August 409,439 29,854 118,418 39,566 27,804 19,671 34,671 40, 470 24, 749 6,109 9,330 12,742 46, 055 N S D O e o c e p t c v o t e e e b m m m er b b b e e e r r r . . - . . 4 4 5 4 1 2 2 2 2 8 5 4 , , , , 2 4 6 1 1 1 2 9 6 3 4 2 3 3 4 2 6 3 0 8 , , , , 1 3 3 2 8 7 5 9 9 7 4 0 1 1 1 1 0 2 4 7 6 6 2 1 , , , , 1 5 8 3 1 1 6 6 4 1 2 0 3 4 3 3 8 7 8 8 , , , , 0 8 4 2 6 2 5 4 4 5 4 0 4 4 5 3 3 8 6 4 , , , , 8 7 6 7 3 4 2 6 3 0 0 2 2 2 2 2 1 4 8 6 , , , , 5 8 4 2 1 8 1 5 6 8 2 1 3 2 3 3 2 1 6 5 , . , , 9 0 6 0 9 8 9 8 9 5 5 4 4 3 6 3 6 6 5 1 , , , , 8 4 0 4 8 4 8 1 7 0 3 4 2 2 1 1 1 8 7 9 , , , , 4 1 2 9 8 3 9 9 4 5 9 2 2 2 2 4 , , , , 6 6 9 4 0 7 9 3 3 2 0 5 1 1 1 1 5 8 0 5 , , , , 1 1 7 6 1 7 3 9 6 5 0 8 1 8 7 5 0 , , , , 1 3 3 9 5 8 9 8 1 9 8 1 3 4 4 3 3 9 5 2 , , , , 1 4 7 5 1 2 0 9 4 8 9 7 Deposits: 1926—June 2,241,415 145,362; 865,577 135,361 181,333 66, 556 72,477 329,191 81,270 51,698 88,155 57, 087 167,348 July 2,262,420 148,013' 857,668 137,621 185,981 71,418 73,453 335,306 82, 917 51, 538 92, 651 57,478 168,376 August 2,253,350 145, 625i 847,061 136, 502 188,314 70, 054 71,873 340, 386 82,092 49, 787 94,619 57, 595 169,442 September 2,273,205 147,447I 862,912 137,152 188,048 70,061 72, 718 338,071 I 80,937 50,099 93,706 58,913 173,141 October... 2,280,180 153,231| 853,359 139, 637 185,945 72,240 74,640 336, 643 83,745 51, 574 92, 848 60,984 175, 334 November 2,279,135 | 155,409 856,416 139, 260 184, 749 72, 626 72, 938 332, 040 82, 771 53,070 91, 393 61,148 177,315 December. 2,289,632 150, 252! 879,596 139,419 181,215 71,010 71,802 329,801 82,823 52,550 !91,127 62,902 177,13« 1927—January 2,300,204 148, 810i 885,641 141,195 182,290 73,335 72,723 331, 215 83,325 52, 278 |90,880 62,156 176, 356 February 2,266,460 149,134i 856,053 139,360 183,035 72,276 72,531 329,680 83,754 50,759 91, 425 63,763 174,690 March 2,284,809 146,177I 878,285 188,427 70,484 71,134 328,167 82,780 51,484 !90,789 63,170 175,018 April 2,301,120 148,394 140, 451 188,122 71,211 72,766 332,363 83,827 50,371 i90,832 62,587 177,810 May.. 2,326,816 148,045! 908, 188 138,961 188,376 72, 586 71,126 338,974 83,193 49,156 I89, 378 61, 645 177,188 June 2,355,428 149,846; 941,867 137,874 190, 247 71,679 !68,810 338,545 82,434 49,678 !88,342 59,765 176,341 July 2,339,478 152, 568! 918,918 137,993 189, 620 74, 262 68, 471 337,875 82, 622 50,607 '90,916 60,209 175,417 August I 2,331,452 151,977! 902, 138 138, 571 192,145 74,478 i67,482 345,465 81,589 49,714 !91,611 59, 759 176, 523 September 2, 350,875 153, 393| 911,090 140, 911 190, 489 74, 618 i 343, 955 81, 575 52,578 |90,155 63, 044 180, 219 October. 2,380,856 157,165i 921,315 141,539 190,085 74,666 !70,827 346, 798 84, 745 55,623 !90, 542 66,429 181,122 November- 2,429, 976 161, 702 946,306 142,328 192, 759 76,719 !70, 412 345, 669 87. 920 57, 823 94,240 69,165 184,933 December.. 2,435, 984 156, 775 959,131 140,113 188, 794 75,111 !70, 524 350, 010 87, 915 56,427 93, 282 69,849 '188, 053 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

14 FEDERAL RESERVE BULLETIN JANUARY, 1928 MONETARY GOLD STOCK AND MONEY IN CIRCULATION MILLIONS OF DOLLARS MILLIONS OF DOLLARS INCREASE OR DECREASE (-) IN MONETARY GOLD STOCK 100! ~ 1 CHANGES IN I 1100 [In thousands of dollars] MONETARY GOLD STOCK 80- Month 1922 ! 1923 ! 1924 1925 1927 January... 24, 689',23,716 45,473 -76,592 12,199 72,268 February.. 38,388 10,864; 33,794 -53,500 11, 540 21,313 March 36,7061 6,8731 40,496 -23,245 18,386 11, 083 April 4,178! 11,380: 47,327 3,618 -3,392i 12,944 May.. 7,171 46,185j 44,204 11,472 -4, 7681 -1,427 June.. , 13,217 21,719| 33, 228 3,398 14,007 j-20,943 July ._ 43,966j 29,250i 22,962 5,488 23,7191 -7,465 August. !, 096132,639! 9,611 12, 631 2,008 8,527 September.. 18,087! 25,021! -1,212 -7,363 -17,519 October 15,0721 30, 601! -1,967 25,938 7,688-30,159 November.. 18,142! 39,997| 17,362 -10,037 3,181 -89, 723 December.. 22,801' -27,178 1,985 15, 432 1 70, 487 1 Preliminary. NET IMPORTS OR NET EXPORTS (-) OF GOLD [In thousands of dollars] Month 1921 1922 1923 1924 I 1925 1926 1927 January. 30,909 25, 708 24,348 44,855 • 16,264 44,465 I „ llOO February 41, 59127,007 6,984 34,606,-46,997 21, 565 19,895 1321 1S22 S923 1925 192S 1927 March 86, 56232, 525 5,559 33,505--17, 768 39,188 10,758 April 80,278 10,665 8,533 44,027--12,734 -4,768 11,911 May 57,109 5,587 45,332 40,481| -1,997! -6,408' 31,702 MONETARY GOLD STOCK OF THE UNITED STATES» June 42,803 11,376 18,885 24,913! -2,287j 15, 544 12, 771 July ... 60,513 42,343 27,407 18, 507 j 5,787: 14,751 8,935 [First of month figures. In millions of dollars] August 84,230 18,136 30, 655 15, 752! 2,726!-17, 764 6,353 September 63, 63723,066 26,941 2,076i -2, 656 -7, 094-11,465 October.. 39,531 3,275 28,488 15, 5771 22,702! 7,701! -8,642 Month 1922 1923 1924 1925 1926 1927 1928 N De o c v e e m m b b e e r r 2 5 9 0 , , 6 5 9 0 1 42 1 3 4 , , 8 7 7 3 7 0 3 31 9 , , 9 0 3 1 0 0 -2 1 9 3 , , 4 1 0 7 1 3--13 1 , , 9 2 0 4 4 8 : ! 9,011- 1 5 6 3 6 ,1 ,0 8 0 4 0 January 3,660 3,929 4,244 4,499 4,399 4,492 M,380 1 Preliminary. February . _ 3,685 3,953 4,289 4,423 4,412 4,564 ! March __ 3,723 3,963 4,323 4,369 4,423 4,586 : INCREASE OR DECREASE (-) IN GOLD STOCK April 3,760 3,970 4,364 4,346 4,442 4,597 i THROUGH CHANGES IN GOLD UNDER EAR- May 3,764 3,982 4,411 4,350 4,438 4,610 i MARK FOR FOREIGN ACCOUNT June 3,771 4,028 4,455 4,361 4,433 4,608 [In thousands of dollars] July 3,785 4,050 4,488 4,365 4,447 4,587 ! August . .. 3,829 4,079 4,511 4,370 4,471 4,580 September 3,855 4,111 4,521 4,383 4,473 4,588 Month 1921 1922 1923 1924 1927 October 3,873 4,136 4,511 4,382 4,466 4,571 ! November __ 3,888 4,167 4,509 4,407 4,473 4,541 December.. 3,906 4,207 4,527 4,397 4,477 4,451 January __ 3,990 -1,629 _._! -810| -6,043 19,487 F M e a b r r c u h a . r . y -1,990 4,329 -2,4 5 5 9 2 3 - - 6 1 , , 8 3 2 6 5 6 1 - - 1 2 1 2, , 9 0 8 0 8 0 -1 3 , , 5 1 0 8 2 0 i Revised figures; see BULLETIN for December, 1927, p. 800. April 1,000 -558 14,850| -1,000 » Preliminary. May 1,000 12,725 -95,000 June -3,000 2,000 5,075 -580 -500 July 5,000 -1,500 -2, 583 -3,901 4,000 184 UNITED STATES MONEY IN CIRCULATION » August -7,984! 8,725 19,200 -2, 501 September 10,000 500-13,229! 901 -2,400 -9,000 [First of month figures. In millions of dollars! October 8,000 -1, 500 -2,000 -17,000; 2,870 4 -25, 001 November. _ -200 -500! 2,000 -7,498 -40,000 December.. -2,000 -l,500! -2,000 1,008 -8,500 Month 1922 1923 1924 1925 1926 1927 , 1928 i i NOTE.—Earmarking of gold for foreign account has January... 4,690 4,817 5,044 5,047 5,104 5,095 2 5, 005 the effect of decreasing the country's monetary stock February.. 4,441 4,614 4,777 4,802 4,841 4,846 and withdrawal from earmark has the opposite effect. March 4,491 4,703 4,887 4,853 4,904 4,885 The actual increase or decrease in the monetary gold April 4,497 4,747 4,899 4,818 4,860 4,862 May 4,468 4,759 4,853 4,789 4,907 4,891 stock, however, during any given month, which is accu- June 4,455 4,797 4,905 4,841 4,923 4,893 rately shown in the table at the head of this column, July.. 4,463 4,823 4,849 4,815 4,885 4,851 does not correspond exactly with the sum of the figures A Se u p g t u em st ber. 4 4 , , 4 4 2 8 4 0 4 4, , 8 7 7 8 6 7 I4 4 , , 8 7 5 5 9 6 4 4 , , 8 7 6 9 7 5 4 4 , , 9 9 3 0 0 9 4 4, , 8 8 5 4 4 6 given in the other twTo tables because (1) some incom- October.... 4,608 4,945 4,863 4,916 4,978 4,948 ing gold is not in monetary form, (2) gold earmarked in November. 4,646 4,925 4,942 4,969 5,021 4,946 one month is sometimes exported in a subsequent December. 4,704 5,018 5,052 5,044 5,037 4,952 month, and (3) the total change reflects also domestic production of gold and the movement of gold into and 1 Revised figures; see BULLETIN for December, 1927, p. 800. out of use in industry and the arts. 2 Preliminary. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

15 JANUARY, 1928 FEDERAL RESERVE BULLETIN MONEY RATES IN NEW YORK CITY 1922 1923 192** 1925 1926 1927 FEDERAL RESERVE BANK RATES OPEN-MARKET RATES RATES IN NEW YORK CITY DISCOUNT RATES IRates on all classes and maturities of eligible paper] Prevailing rate on- A veragerate j A verage_yield Hate in ! Previous Federal reserve bank effect on Date established 1 rate Jan. 1 Month or week Boston Aug. 5, 1927.. . New York Aug. 5, 1927... Philadelphia.. Sept. 8, 1927... Cleveland Aug. 6, 1927... Richmond Aug. 16, 1927.. Atlanta Aug. 13,1927.. Chicago Sept. 7, 1927.. 1926 St. Louis Aug. 4, 1927... October Minneapolis... Sept. 13, 1927.. November Kansas City... July 29,1927_. December Dallas Aug. 12, 1927.. 1927 San Francisco. Sept. 10,1927.. January. February March BUYING RATES ON ACCEPTANCES April May- [Buying rates at the Federal Reserve Bank of New York] June. July August. September j Maturity Date established I Pr!jJ°118 October rate November. December ! 1-15 days... Aug. 5,1927... 16-80 days.. Aug. 22, 1927.. 31-45 days.. do 46-60 days.. Aug. 5,1927... 61-90 days.. do 91-120 days. do 121-180 days July 29, 1927 __ i Stock exchange call loans; new and renewal rates. NOTE.—Rates on prime bankers' acceptances. Higher rates may be i Stock exchange 90-day time loans. tharged for other classes of bills. » Three issues—%%, 4, and 4K per cent; yields calculated on basis of last redemption dates—1956, 1954, and 1952. * Change of issues on which yield is computed. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

16 FEDERAL RESERVE BULLETIN JANUARY, 1928 PREVAILING RATES CHARGED CUSTOMERS BY BANKS IN PRINCIPAL CITIES The rates shown are those at which the bulk of the loans of each class were made by representative banks during the week ending with the 15th of the month. Rates reported by about 200 banks with loans exceeding $7,500,000,000. FEDERAL RESERVE BANK CITIES New Phila- Cleve- Rich- Minne- Kansas San Fran- Month Boston York delphia land mond Atlanta Chicago St. Louis apolis City Dallas cisco Prime commercial loans 1926—December ; 534-6 5 -6 4*4-5 4*4-534; 4^-534! 5 -b\ 4^-6 1927—January _: .. i 434-534 6^-6 5 -6 " ' -* - 5 -51, 434-6 J J A M M F u u e p n l a a b y r e r i y r l c u h a . ry ! j 4^- 4 4 4 4 3 > 3 } g > 4 1 1 U I 1 4 4 4 4 3 3 3 4 4 4 - - - - 5 - 5 5 5 5 3 ; 4 " _ 1 4 5 5 5 5 5 H ^- - - - - - 6 6 6 6 6 6 4 5 5 5 5 5 3 4 - - - - - - 6 6 6 6 6 6 $ 4 4 4 4 4 3 3 3 3 4 ^ 4 4 4 4 . - - 4 - - - - 4 4 5 5 5 3 * * , , . 4 4 4 4 3 3 3 ^ 4 4 4 - ^ - - 5 5 5 5 4 4 4 * 4 / i 3 3 H ^ 4 - : - - 5 5 5 5 H 3 " J 3 72 4 * 4 ( , ! 5 5 5 5 5 5 4 4 4 4 4 5 3 3 3 3 * 4 4 4 4 4 - - - - - - 6 6 6 6 6 6 A Se u p g t u e s m t ber | 4 4 >ix-l 5 5 ^- - 6 534 5 5 - - 6 6 4^-5 4 4 3 4 - - 5 5 43I-5 1 5 5 4 4 ^- - 5 6 N D O e o c c t v o e e b m m e b r b e e r r I | ; 4 4 4 - - - 4 4 4 3 > j 4 4 4 1 4 4 4 ^ ^ - - - 5 5 6 I 5 5 -5 - 3 r ^ : ; 4^-5 4 4 4 3 4 - - - 5 5 5 4^-5 5 5 5 4 4 4 3 ^ 4 - - 6 - 6 6 Loans secured by prime stock exchange collateral I 1927—June 434-4*4 4^-5 434-5 1414-6 6 5 -6 434-5 5 -534 434-3 5 -6 5 _7 5 -6 J A u u ly gust 43/2 4 43 3 4 4 - - 5 5 4 4 V 34 £ - - 4 5 *4 1 14 4 3 ^ 4 - - 6 6 4 5 « 4 - ~ 6 6 5 5 - - 6 6 4 4 3 1 4 4- - 5 5 4 4 3 ^ 4 -6 -6 5 5 - - 6 6 5 5 - - 6 7 5 5 - - 6 6 September 434-5 4M-434 14^-6 5 -6 5 -6 434-5 5 4^-6 5 -6 5 -6 5 -6 October 4*^-5 434-4% 1 434~6 4*4-6 5 -6 4^-5 4H~6 5 -6 5 -7 5 -6 N D o ec v e e m m b b e e r r 4 4 3 3 4 4 - - 5 5 4 4 3 34 4 - - 4 4 3 3 4 4 4 5 H- - 6 6 4 5 5 - - 6 6 434-53^ 4 4 V H s - - 5 5 3 y 42 5 5 - • 6 o 5 5 - - 7 7 5 5 - - 6 6 Loans secured by warehouse receipts 1927—June 5 -6 15 -6 5 -6 5 -6 5 -7 5 -« July 15 -6 5 -6 434-5 5 -6 5 -6 5 -6 August 5 -6 15 -6 15 -6 434-5 5 -6 5 -6 5 -6 September 434-6 14*4-6 6 5 -6 5 -6 5 -6 5 -6 October 5 -6 1 434-6 5 -6 5 -6 414-5 5 -6 5 -6 5 -6 November 5 -6 5 -6 4^-5 5 -6 h -6 5 -6 December 5 -6 43|-6 5 -6 5 -6 5 5 -6 Interbank loans 1927—June _ 4H 434-5 5 5 5 -6 5 5 -534 5 -6 6 5 5 -6 July 434 434-5 434-5 5 5 -534 5 -6 5 5 -534 5 -6 6 - 5 5 -6 August 4 -4M 4 -5 4H5 5 5 5 -6 5 5 -534 5 -6 6 5 5 -6 September 4M-434 434-5 5 5 5 -6 5 5 -534 5 -6 6 5 5 -6 October 4 4 -434 434 434-5 5 5 -6 5 4*.4-5J4 5 -6 6 5 -6 5 -6 N De o c v e e m m b b e e r r 4 4 4 4 - - 4 4 3 J4 4 434-5 434 4M5 4H-5 4M 5 5 - - 6 6 5 5 4 4 >/~5v 4 5 2 -6 6 6 5 5 -6 FEDERAL RESERVE BRANCH CITIES Loans secured by prime Loans secured by warehouse Prime commercial loans stock-exchange collateral receipts Interbank loans City October Nojam- Decem- October No b v e e r m- De b c e e r m- October No b v e e r m- De b c e e r m- October N™ be F r " Dicl b m e - r Buffalo. 5 -6 5 -6 5 -6 5 -6 5 -6 5 -6 6 6 6 5 5 4 Cincinnati 5M-6 534-6 5M-6 534-6 5 -6 5 -6 6 -7 534-7 6 -7 5 -5^2 5 -5 5 -6 Pittsburgh 5 -6 5 -6 5 -6 5 -6 5 -6 5 -6 6 6 6 £ -6 5 -6' 5 -6 Baltimore 334 5 -6H 4 -6 4^-6 5 -6 434-6 6 534-6 534-6 5 -534 5 -534 5 -6 Birmingham. _ 5 -6 5 -6 5 -6 6 6 6 6 6 6 5 -6 5 -6 5 -6 Jacksonville 5 -6 5 -6 5 -6 5 -8 5 -8 5 -8 6 -8 434-7 6 6 Nashville- 6 6 6 6 6 6 3344 534-6 534-6 534-6 New Orleans 34 534-6 534-6 534-6 534-6 534-6 5 -6 534-6 5 -6 5 -6 5 -6 Detroit 5 -6 5 -6 4H6 434-6 5 -6 5M-6 534-6 5 2-6 5 -534 5 -534 5 -6 Little Rock 5 -6 5 2-6 6 -7 6 -7 6 -7 6 -7 5 -7 5 -7 H6 6 6 Louisville 5 -6 5 -6 5 -6 5 -6 5 -6 5 -6 6 6 6 5 5 6 Helena 8 8 8 8 8 8 6 -8 6 -8 6 -8 6 -8 6 -8 Denver 4 -6 4^-6 6 5^-6 5 -6 5H-6 534-7 534-8 534-6 6 -634 6 -634 Oklahoma City 5 -6 5 -6 5 -6 6 6 6 6 6 6 6 6 6 Omaha 434-6 434-6 434-6 534-6 534-6 5H-6 6 -634 6 -6 6 534-6 534-6 6 El Paso 8 8 8 6 -8 6 -8 6 -8 7 -8 7 -8 7 -8 6 6 6 Houston 5 -6 5 -6 5 -6 5 -6 5 -6 5 -6 5 -6 5 -7 5 -7 5 5 5 -$y. San Antonio 434-6 4M-6 434-6 6 -8 6 -7 6 -7 6 -8 6 -8 6 -8 5 -6 ! 5 -6 5 -6 Los Angeles 6 -7 6 -7 6 -7 6 -7 6 -7 6 -7 6 -7 6 -7 6 -7 6 I 6 6 Portland 6 6 6 6 6 6 6 -7 6 -7 6 -7 6 I 6 6 Salt Lake City 6 6 6 6 6 -8 6 -7 7 7 -8 7 6 I 6 ! 6 Seattle 6 6 6 -7 6 -7 6 -7 6 -7 634-7 6 -7 5 -634j 6 -634 6 Spokane 6 6 6 6 7 7 6 ! 6 1 Revised. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

JANUARY, 192S FEDERAL RESERVE BULLETIN 17 MEMBER BANK CREDIT MEMBER BANK RESERVE BALANCES AND BORROWINGS AT FEDERAL RESERVE BANKS [Monthly averages of weekly figures. In thousands of dollars] Reserve balances Borrowings at Federal reserve banks Reporting member banks Reporting member banks Month Other Other New York le O a t d h i e n r g ! Total m b e a m nk b s er Total Ttfftw Ynrlr Other Total m b e a m nk b s er Total City cities ; ! 1926—December 725,298 960,263 1,685,561 579,291 2,264,852 99,611 347,515 447,126 200,647 647,773 1927—January 717,310 960,239 i 1, 677, 549 587,647 2,265,196 75,894 223,259 299,153 177,141 476,294 February 682,026 962,691 , 1, 644, 717 584, 612 2,229,329 59,907 j 172,986 232,893 158, 791 391, 684 March 709,853 961,184 1,671,037 593,492 2,264,529 73,118 i 195,001 268,119 150, 734 418, 853 A M p a r y il 6 7 8 2 7 0 , , 2 9 5 7 5 2 9 9 7 7 6 1 , , 3 1 4 0 6 8 ; 1 I, , 6 6 9 5 6 9 , , 6 0 0 8 1 0 5 5 9 9 3 4 , , 5 9 2 0 8 0 2 2 , ,2 2 5 9 3 0 , , 1 9 2 8 9 0 9 7 0 8 , , 1 4 6 5 7 9 ' 2 1 1 9 3 1 , , 4 8 7 8 6 3 2 30 7 3 0 , , 3 6 4 4 2 3 1 1 5 5 5 1 , , 4 0 7 8 6 6 4 4 2 5 1 9 , , 4 1 2 1 8 9 June 775, 900 973,318 ; I, 749, 218 592, 650 2, 341,868 51,485 219,307 270, 792 163, 753 434,545 July 728, 491 967,062 ! 1, 695,553 603, 200 2,298, 753 59,383 : 213,252 272,635 160, 970 433,605 August 724, 240 983, 241 L, 707,481 605,427 2,312,908 73,865 ! 182,027 255,892 156,838 412,730 September 726, 262 982,785 I, 709, 047 613, 709 2,322, 756 90,420 • 176,509 266,929 150, 495 417, 424 October 728, 171 996,927 L, 725. 098 629, 976 2,355, 074 74,502 • 208,435 282, 937 145, 245 428,182 November 768.193 998,659 ! L, 766,852 633,627 2,400,479 72.923 i 203.001 275,924 144,600 420,524 Dece riber 769,189 1,017,774 ! L, 786, 963 623, 491 2, 410, 454 126,850 261,369 388, 219 143,342 531, 561 LOANS, INVESTMENTS, AND DEPOSITS OF REPORTING MEMBER BANKS [Monthly averages of weekly figures. In thousands of dollars] Loans and investments Net demand, time, and Government deposits Month Loans Total Total Allother I m nv e e n s ts t- Total de N m e a t nd T.ine G m ov e e n r t n- In New York City: 1926—December 6,308,886 4,575,021 2.018, 731 2,556. 290 1. 733,865 6,030,809 5,093,951 901. 789 35,069 19i7—January 6.341,114 4, 593, 379 1 2,167, 859 1 2,425, 520 1, 747, 735 6,080, 894 5,127,308 917, 608 35,978 February 6,189.052 4, 436, 601 1 2,047,374 1 2,389,287 1,752,391 5, 894, 478 4,935,006 929, 499 29,973 March 6.349, 701 4,525, 865 1 2,097.179 1 2,428,686 1, 823, 836 6,063,771 5,068,281 929,103 66, 387 April 6,421,165 4,570,029 1 2,156,122 ' 2,413,907 1,851,136 6,079,869 5,066,081 950,045 63,743 May 6,534,882 4, 628, 567 1 2, 200, 5571 2,428,010 1, 906, 315 6,169, 518 5,179, 092 956. 334 34,092 June 6. 692, 243 4, 767,162 i 2,325, 708 1 2,441,453 1,925,081 6. 421,358 5,389,740 ! 1,009,999 21. 619 July 6, 601,841 4, 720,139 ' 2,281, 2711 2,438,868 1,881, 702 6, 268,844 5,264,543 992,370 11,931 August 6,578,660 4,748,052 I1 2,275,360 1 2,472, 692 1,830.608 6,229,475 5,213,235 I 1,010,441 5,799 September 6, 705,170 4,910,943 1 2,313,326 1 2,597,617 1, 794, 227 6, 291, 879 5, 224. 056 ! 1,003,913 . 63,910 October 6, 782, 502 5, 009, 556 1 2,369,631 1 2,639, 925 1, 772, 946 6, 371, 720 5,254,646 ! 1,014,507 I 102, 567 November 6,953,615 5,115,427 1 2,464,515 2, 650, 912 1,838,188 6, 527,526 5,429,851 i 1,055,123 42,552 Dece: nber __ 7,124, 260 5, 227, 528 2, 605, 321 2, 622, 207 1, 896, 732 6, 633, 578 5.570,702 ! 1,034,280 29,096 In other leading cities: | .-.. 1926—December i 13, 740,317 9, 889, 494 3, 675,386 6, 214,108 3,850.823 I13. 006, 541 7,975,653 ! 4,938, 409 92,479 '.tj 1927—January i 13, 651, 504 9, 824, 286 3, 670, 959 6,153, 327 3, 827, 218 13, 079, 750 7.976,287 i 5, 010, 800 92,663 February1 13, G57, 458 9, 771,198 3, 657,172 6,114, 026 3, 886, 260 13, 096, 404 7,981,144 ! 5,035, 513 76, 747 March i__. 13,910,871 9, 856, 564 3, 693,105 6,163, 459 4, 054, 307 13, 303, 572 8,000,681 ! 5,138, 307 164, 584 ApriP 13, 912, 285 9, 830, 525 3, 697, 859 6.132, 666 4, 081, 760 13. 307, 731 8,003,200 i 5,147, 212 157, 319 May1.... 14, 007, 537 9, 873, 865 3, 740, 226 6.133, 639 4,133, 672 13, 352, 576 8,035,509 i 5, 233, 452 83, 615 June1.— 14, 087,136 9, 917, 768 3, 820, 286 6, 097,483 4,169,368 13, 403, 771 8,058,941 ! 5, 228, 600 116, 230 July1 14,080, 003 9, 896,145 3, 832,740 6, 063, 405 4,183, 858 13, 431, 721 8,075,561 ! 5, 260,489 95, 671 August1 14, 062,703 9,917,931 3, 849, 786 6, 068,145 4,144, 772 13, 439, 247 8,096,256 I 5,296,376 46,615 September1 14, 240, 742 10, 002, 087 3, 908,128 6, 093,959 4, 238, 655 13, 611, 488 8,150,313 ! 5, 344,921 116, 254 October1.- 14,439,193 10,098,127 3, 955, 742 6,142, 385 4, 341, 066 13, 778, 209 8,191,931 | 5, 409, 019 177, 259 November1 14, 504, 002 10, 077, 941 3, 945, 977 6,131, 964 4,426,061 13, 836, 359 8,304,009 ! 5, 427, 714 104, 636 December1.. 14, 599, 809 10,113, 543 3,988, 333 6,125, 210 4, 486, 266 13,860, 204 8,333,209 | 5, 456, 570 69,925 Total: 1926—December! _ 20, 049, 203 14, 464, 515 5,694,117 8, 770, 398 5, 584, 688 19, 037, 350 13,069,604 ! 5, 840,198 127, 548 1927—January i 19, 992, 618 14,417,665 5, 838, 818 8, 578, 847 5, 574, 953 19,160, 644 13,103, 595 i5, 928, 408 128, 641 February1 19, 846, 510 14, 207, 859 5, 704, 546 8, 503, 313 5, 638, 651 18,990, 882 12,919,150 !5,965,012 106, 720 March1 20, 260, 572 14, 382,429 5, 790, 284 8, 592,145 5, 878,143 19, 367, 343 13,068,962 j6, 067, 410 230,971 Aprili 20, 333, 450 14, 400, 554 5, 853, 981 8, 546, 573 5, 932,896 19, 387, 600 13,069,281 6, 097, 257 221,062 May1 20, 542, 419 14, 502,432 5,940, 783 8, 561, 649 6, 039, 987 19,522, 094 13,214,601 6,189,786 117, 707 June1 20, 779,379 14,684,930 6,145, 994 8, 538, 936 6, 094,449 19, 825,129 13,448,681 6, 238, 599 137, 849 July1. 20,681,844 14, 616, 284 6,114,011 8, 502, 273 6, 065, 560 19, 700, 565 13, 340,104 !6, 252,859 107, 602 August1 20, 641, 363 14, 665,983 6,125, 146 8, 540, 837 5, 975, 380 19, 668, 722 13,309,491 i 6, 306, 817 52, 414 September1 20, 945,912 14, 913, 030 6, 221, 454 8. 691, 576 6, 032, 882 19, 903, 367 13,374,369 I 6, 348, 834 180,164 October1 21, 221, 695 15,107, 683 6, 325, 373 8, 782, 310 6,114,012 20,149,929 13,446,577 I 6, 423, 526 279, 826 November1 21. 457, 617 15,193, 368 6,410, 492 8, 782, 876 6, 264, 24920, 363, 885 13,733,860 I 6, 482, 837 147,188 December1.. __ 21, 724, 069 15, 341, 071 6, 593, 654 8, 747,417 6, 382,998 20, 493, 782 13,903,911 I 6, 490, 850 99,021 1 Revised; for explanation see p. 8. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

18 FEDERAL RESERVE BULLETIN JANUARY, 1928 BANKERS9 BALANCES IN FEDERAL RESERVE BANK AND BRANCH CITIES FEDERAL RESERVE BANE a TIES [Weekly reporting member banks. Monthly averages of weekly figures] [In thousands of dollars] City Month 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 St. Louis M ap in o n lis e- K C an it s y as Dallas San ci s F c r o an- Due from banks: 1926—June 44,282 107,617 65,922 30,018 15,778 12,226 168,279 29,300 21,620 37,831 24,447 61,296 July 39,468 104,846 58,791 27,113 14,862 12,826 157,130 27,859 22,568 46,989 23,372 53,980 August 38,732 91,973 53,441 25,607 14,083 11,833 148,873 26,235 19,252 46,947 19,679 60,277 September. 40,258 102,496 69,256 26,090 15,934 12,274 151,706 25,582 20,264 44,939 24,416 63,917 October ... 36,083 111,081 63,385 27,646 16,341 14,420 155 581 28,037 22,264 43,654 28,156 68,016 November. 41,031 102,636 66,828 27,057 18,465 12,688 154,680 29,503 22,794 50,466 29,069 50,606 December . 37,755 96,640 55,079 24,340 17,680 12,082 1161,824 28,400 22,239 43,733 26,309 54,380 1927—January... 40,246 100,303 55,212 27,459 12,839 14,923 1164,201 31,673 21,532 44,621 27,975 60,798 February. _ 39,050 93,479 58,036 23,250 7,520 13,323 i 144,494 29,850 20,017 41,884 20,241 62,112 March 40,963 100,235 55,362 22,318 7,544 11,744 1154,938 29,852 19,822 40,646 19,184 64,371 April 48,196 106,574 54,430 22,912 6,820 11,658 i 151,752 28,208 19,836 38,649 18,768 50,832 May 42,815 101,680 53,447 22,674 6,713 11,467 1173,890 27,296 19,602 33,490 16,613 51,325 June 45,846 94,870 56,374 24,499 6,718 10, 511 i 160,565 26,503 19,932 33,445 15,795 63,615 July 45,947 92,480 50,668 22,948 6,847 11,675 1148,335 25,626 21,744 36,041 15,162 52,269 August 44,126 85,330 52,333 24,15fi 6,214 10,867 i 146,775 26,995 19,844 33,086 13,406 53,313 September. 43. 066 95, 323 51, 233 26, 380 6,444 12, 578 i 152,156 25, 581 27, 654 32, 942 18,152 58,846 October 52,594 110,715 52,330 24,880 6,237 12,874 i 152,718 27, 958 29,302 36, 058 19, 211 56,817 November.. 45, 687 104,024 60,908 24,307 7,017 12, 706 i 158,101 30,629 24,518 35,064 20,569 66, 798 December.. 42, 233 102, 507 52, 607 22,319 6,455 12,177 150,433 33,107 20,489 35,999 19,368 70,496 1926—June." 126,416 1,097,672 179,362 46,344 29,568 15,505 381,543 81,441 48,613 93,669 24,860 94,849 July 130,199 1,066,912 174,699 49,529 30,812 15,438 373,312 83,870 46,733 108,780 25,516 101,182 August 119,858 1,040,250 167,796 48,949 29,173 14,802 371,742 82,664 43,113 110,499 24,072 106,473 September. 119,490 1,061,770 169,984 49,932 30,147 16,554 374,605 80,331 45,627 103,734 26,679 109,046 October. _. 125,816 1,066,954 170, 767 48,214 31,654 17,927 359,722 79,292 50,364 98,413 32,764 107,215 November. 128,262 1,052,188 165,589 46,647 33,067 18,363 349,234 78,936 52,698 97,038 33,771 105,774 December . 126,533 1,078,048 163,054 45,143 33,095 18,257 1349,069 79,495 50,771 . 96,657 32,340 107,583 1927—January. .. 136,801 1,107,405 173,041 48,845 33,256 19,413 1372,379 88,533 53,080 101,170 32,575 105,868 February.. 135,794 1,090,437 173,142 53,578 33,585 18,623 1364,528 88,347 55,471 95,337 33,234 127,068 March 134,562 1,118,300 172,512 54,017 33,460 17,063 i 374,110 87,039 53,586 90,268 31,913 104,055 April 142,243 1,104,366 170,573 55,613 31,223 15,427 1 364,826 86,085 50,934 86,741 28,624 94,916 May 137, 294 1,116, 781 169,109 55,089 29, 585 15, 544 1374,373 81, 810 47, 521 82,551 27,036 98,387 June 143,113 1,170, 711 164,173 56,135 30,346 14,113 1 347,948 81,401 47, 514 82,674 24,894 99,877 July 160,660 1,164,095 169,079 60,290 30,359 15,394 1363,382 81,920 46,463 91,837 24,801 108,422 August 152,083 1,159,580 167,855 60,420 31,266 14,872 i 363,859 78,639 45,525 91,238 24,222 107,400 September- 141, 354 1,177,091 168, 581 61, 395 32, 428 18, 682 1371,952 78,697 57, 555 87,872 32,023 105, 736 October 146,826 1,208, 959 172, 928 61.232 33, 786 20, 058 i 376,762 78, 930 63, 751 83,780 37,433 110, 056 November.. 156, 487 1,323, 719 173,491 63,112 39, 679 19,927 i 368,062 85,293 62,327 83, 848 40,945 127,897 December.. 150, 748 1, 281, 767 168,043 59,639 37,636 18,939 370,021 86,384 58,359 88,072 38,164 126,280 * Revised; see explanation on page 8. FEDERAL RESERVE BRANCH CITIES [Weekly reporting member banks. Monthly averages of weekly figures for 1927] [In thousands of dollars] Due from banks Due to banks City July August \ October No b v e e r m- De b c e e r m- July August Sep b t e e r m- October No b v e e r m- De b c e e r m- Buffalo 12,893 14,341 12,834 13,244 13,056 14,071 25,380 24,510 25,175 24,886 25,924 26,382 Cincinnati 14,042 14,685 14,013 16,367 17,196 15,279 34,863 38,047 36,454 36,298 37,697 38,896 Pittsburgh 36,096 39,674 38, 310 41, 016 37, 273 125,049 128,467 127,284 130, 753 132,935 131,207 Baltimore 14,333 14,687 13,837 15,648 14, 993 14,021 38,346 40.449 38,644 35,806 35,819 33,998 Charlotte... ._ 5,516 6,092 7,216 7,847 7,513 6,388 6,512 6,946 8,498 10,162 11,403 13,745 Birmingham __ 9,988 9,181 10,481 !12,331 10,263 8,514 7,479 7,224 9,123 11,800 10,359 9,456 Jacksonville 11,236 10,836 10,632 !11,377 10, 948 11,816 12,942 18,559 18,048 17, 707 17,169 18, 929 Nashville.. 5,753 4,337 5,287 ! 6,977 9,229 8,279 12, 507 10,851 11,114 12, 872 13,362 13,016 New Orleans 15,363 15,489 18,833 !21,552 19, 815 18, 787 37,384 36, 782 42,629 46,041 45,207 43,176 Detroit 34,705 33, 738 34,237 | 34,004 34,303 32,147 41,897 41,888 43,650 38,847 41,850 40,004 Little Rock 3,450 3,029 3, 761 ! 4,349 4, 718 3,885 10,489 9,417 9,832 12,589 14,051 13,718 Louisville 7,410 6,534 7,227 7,425 7,240 8,284 27,085 26.450 27, 795 31,599 33,696 Memphis 13,268 11,392 11,825 I15,526 16,535 11,628 12,303 10,870 12,888 18,584 19,870 18.421 Helena 1,891 1,878 2,172 I 2,468 2,665 2,441 2,381 2,406 2,868 3,862 4,136 4,142 Denver 14,074 14,436 15,465 16,411 19,101 15, 750 13,836 16, 792 17,958 20,764 25,513 23,838 Okalhoxna City 12,219 10,161 10, 023 13, 263 16,294 14,010 18,639 16,290 15,900 21,103 25,559 26,239 Omaha 17,978 17,396 17, 526 19,482 18,026 17,357 33,298 40,604 38,142 35,349 31,771 33,391 El Paso 2,742 2,397 2,275 3,024 4,043 5,183 2,173 2,091 1,977 2,566 3,480 4,139 Houston 15,951 16,286 19,105 17,654 16,937 16,153 22,659 26,243 34,484 35,757 34,899 32,767 San Antonio 7,137 8,082 8,077 7,350 8,471 8,770 7,017 8,401 9,086 7,801 8.523 8,352 Los Angeles 54,264 54,476 52, 582 55,124 55,283 53,947 59,987 56, 718 44,688 48,061 49, 856 48,084 Portland I 10,131 10,586 11,108 10, 643 11,651 10,641 15,863 17,098 20,467 18,663 19,879 19,264 Salt Lake City | 4,959 4,561 4,909 5,457 6,209 6,304 10,007 9,418 10,464 12,890 14, 917 17,013 Seattle ..! 16,638 17,646 18, 514 18, 243 17,918 18,087 16, 790 18,010 19,464 19,094 18, 772 18,564 Spokane ' 3,912 4,857 4,840 4,637 4,778 4,630 7,783 8,633 10,124 10,304 10,005 10,903- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

JANUARY, 1928 FEDERAL RESERVE BULLETIN 19 COMMODITY PRICES, SECURITY PRICES, AND SECURITY ISSUES WHOLESALE PRICES, BY COMMODITY GROUPS 1 [1926=100] Month m Al o l d c i o ti m es - pr F o a d r u m cts Foods p l r H e o a a i d n t d h u d e e c s r ts p T ro e d x u ti c le ts F li u g e h l t i a n n g d p M r m o a e e d n t t u d a a c l l s ts m B a u t i e ld ri i a n l g s c C a d l h r s u e a m g n s i d - i f n H u g r o n g u i o s s o e h d - - s l M an is e c o e u l s - 1926 September 99.7 99.3 99.8 98.8 98.9 101.5 101.2 99.5 100.2 99.5 94.2 October 99.4 97.9 100.8 101.0 97.7 101.3 101.0 99.5 99.1 99.4 93.4 November 98.4 94.7 100.5 100.4 96.3 102.5 100.8 100.1 98.6 99.1 90.8 December 97.9 94.9 100.7 100.4 95.2 99.4 100.4 99.2 98.8 9a 8 89.9 1927 January 96.6 96.5 96.9 101.0 94.3 97.7 98.8 97.5 97.6 97.9 90.3 February-_ 95.9 95.4 95.9 100.2 94.6 95.8 98.0 96.2 97.6 97.9 90.0 March 94.5 94.2 94.5 100.5 94.0 90.0 98.2 95.3 97.1 97.8 90.9 April 93.7 94.3 94.6 101.7 94.2 84.9 97.8 95.0 97.8 97.8 91.3 May 93.7 96.3 94.4 103.7 93.9 83.9 98.6 95.1 95.4 97.8 91.3 June 93.8 96.5 94.4 107.3 94.3 84.2 98.2 94.6 95.8 98.0 90.2 July 94.1 97.6 93.9 111.7 94.3 84.2 97.7 93.7 95.3 98.0 89.3 August 95.2 102.2 94.2 111.7 96.2 84.1 98.0 92.9 95.4 98.6 89.9 September _ 96.5 105.9 96.5 112.5 98.5 84.2 97.6 92.1 96.4 98.6 89.2 October... 97.0 105.0 100.0 113.0 98.4 83.8 97.1 91.6 97.1 98.5 88.3 November _ 96.7 104.3 101.5 114.3 97.5 82.9 97.0 90.2 97.4 98.9 88.3 » New index of Bureau of Labor Statistics. See BULLETIN for October, 1927, pp. 696-699. PRICES OF FARM PRODUCTS AT THE FARM i SECURITY PRICES [August, 1909-July, 1914 -1001 Coinmon stocksi Bonds: Month m it 3 o i 0 e d s - Grains I i i ; t v F a a e n r b g u d l e e it - s M m an a e i l a - s t p D p o a r a u n o i d l d r t y r - y c C o o s a t e t n t e t d o d o n n - cl U f a i n s e s - d i- Month or week s I t n o t 1 r d c i 9 a k u 7 l s s - » r s a t i o l 3 c r 1 o k a s d » s T t 2 o o 2 c t 9 a k l s , A i v p o s e r s f i r u c 4 a e e 0 g s e ucts 1926—November 157.5 132.4 150.2 95.66 1926 December 161.7 135.2 153.9 96.05 S N O D e o c e p t v c o t e e b e m m m er b b b e e e r r r . . . . 1 1 1 1 3 3 3 2 4 0 0 7 1 1 1 1 2 2 2 2 1 1 3 0 | ! | 1 1 1 1 3 4 3 3 6 2 7 6 1 1 1 1 4 4 4 4 0 8 2 8 1 1 1 1 3 4 6 5 9 4 1 7 13 9 8 8 4 4 8 1 i 1927— F A M J e p a a b n r r i r u c l u a h a ry ry __ 1 1 1 1 6 6 5 6 5 3 8 5 . . . . 0 7 4 1 1 1 1 1 3 4 4 4 6 7 2 3 . . . . 7 4 1 1 1 1 1 1 5 6 5 5 9 6 3 6 . . . . 0 2 5 9 9 0 9 9 6 7 6 6 . . . . 4 4 6 2 3 4 3 4 J J J S N M A O D A F M u u a e e p o u e c l n a n a p y b r g c v y t e r u t i o r e 1 u c e l _ e a u 9 h b m m s _ m r 2 a t y e 7 b b b r r y e e e .. r r . r . . . . . . . . . . 1 1 1 1 1 1 1 1 1 1 1 1 2 2 2 2 3 2 3 3 3 4 3 3 6 7 6 6 7 5 9 0 0 0 2 7 1 1 1 1 1 1 1 1 1 1 1 1 2 2 3 2 4 3 1 2 2 3 2 2 2 1 9 0 0 4 9 8 0 8 7 3 ! ! i i i 2 1 1 1 1 1 1 1 1 1 1 1 0 4 4 4 4 9 7 3 5 4 3 4 1 2 5 0 0 5 2 6 8 7 8 1 | | 1 1 1 1 1 1 1 1 1 1 1 1 4 2 4 4 3 3 3 4 4 4 4 3 0 9 3 4 1 6 8 7 1 2 3 5 1 1 1 1 1 1 1 1 1 1 1 1 4 5 3 2 3 3 4 2 2 5 5 3 2 2 7 4 3 0 6 7 5 3 8 3 1 1 1 1 1 1 1 1 1 1 9 8 7 1 0 2 1 0 6 5 3 6 4 5 9 9 1 4 3 2 9 1 6 2 Wee D D D D D k e e e e e D J c c c J N M S A O e c . . . c u u e . e . o c n u n a l p c t v 3 y 3 2 g 1 1 y d e o t e 1 e 7 0 e 4 u i b m m m n s . e . t b . r g b b e - e e r r r . 2 2 2 2 2 1 1 1 2 2 1 1 1 0 0 1 9 1 0 7 9 0 0 8 7 7 . 4 5 2 1 9 7 2 5 8 9 9 4 7 . . . . . . . . . . . . . 9 6 6 2 4 0 0 7 3 0 1 5 5 1 1 1 1 1 1 1 1 1 1 1 1 1 5 5 5 5 5 6 5 6 6 5 5 5 6 3 9 1 2 8 6 0 0 8 0 9 7 0 . . . . . . . . . . . . . 7 9 9 5 9 6 9 0 5 5 6 5 1 1 1 1 1 1 1 1 1 1 1 1 1 1 9 7 9 9 8 6 8 6 9 7 9 9 9 1 3 1 4 9 7 8 6 7 5 9 6 1 . . . . . . . . . . . . . 7 0 6 0 7 4 5 2 5 0 5 3 1 9 9 9 9 9 9 9 9 9 9 9 9 9 9 9 7 9 9 9 7 8 7 8 7 8 9 . . . . . . . . . . . . . 2 2 2 2 0 2 6 7 9 5 0 2 0 6 1 8 2 6 7 2 6 8 5 0 5 3 i Index numbers of Department of Agriculture. 1 Index numbers of Standard Statistics Co. » Average of 1917-1921 prices=100. DOMESTIC CAPITAL ISSUES ' Average of yearly high and low prices, 1913-1922—100. fin millions of dollars! FOREIGN CAPITAL ISSUES [In millions of dollars] January-November— November, January-November November, 1927 1927 1926 1927 j 1927 1926 Class of issue Class of issue New fu R in n e- g d- New fu R in n e- g d- New fu R in n e- g d- m G er e o n n v - t - C r o a r t p e o- m G er e o n n v - t - C r o a r t p e o - I I m G er e o n n v - t - C r o a r t p e o- Total. 59.4 123.5 922.3 i 617.8 640.9 528.2 Total 379.5 206.9 5,483.8 1,704.7 4,710.8 835.5 New issues 53.1 810.9 i 506.0 534.5 413.4 C orporate issues. _ 278.0 204.8 4,084.3 1,586. 53,449.1 778.4 Europe 24.7 42.9 307.6 , 236.8 222.7 183.7 Bonds and notes- Canada and New- Long-term 156.8 200.2 2,647.3 1,287. 52,205.3 617.0 foundland 17.3 7.6 119.0 93.5 i 66.5 149.3 Short-term 14.2 200. 6 72.7 236.0 39.0 Latin America 5.8 13.1 258.4 76.7 ! 213.4 30.3 Stocks 107.0 4.6 1,236. 2 226.4 1,007. 6 122.4 United States insular Farm loan issues .5 86.9 92.8 91.3 40.2 possessions 5.3 2.0 10.7 ; 19.3 12.2 2.4 Municipal issues 101.0 2.1 1, 312. 7 25.3 1,178. 7 16.8 Miscellaneous 4.0 114.8 ! 79.6 19.7 47.7 Refunding issues. ~6.T 53.9 111.4 j 111.8 106.4 114.8 Total new and refunding 586.4 7,188. 6 5,546. 4 To a t n a d l c G or o p v o e ra rn te ment 182.9 1,416.7 1,169. 1 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

20 FEDERAL RESERVE BULLETIN JANUARY, 1928 INDUSTRIAL PRODUCTION f Index numbers, adjusted for seasonal variations. 1923-1925 average -1001 Index of Industrial Production Month Total Manufactures Minerals 1922 1923 1924 1925 1926 1927 1922 1923 1924 1925 1926 1927 1922 1923 1924 1925 1926 1927 January 100 100 105 106 107 73 100 99 106 109 105 77 101 102 104 92 116 February.. 100 102 105 107 109 75 100 102 106 108 107 85 100 104 100 96 118 March 103 100 104 107 111 78 103 101 106 108 110 92 103 99 96 106 118 April 107 95 103 107 108 81 107 95 103 107 109 53 109 92 98 106 104 May 107 89 103 106 111 86 106 88 103 107 111 54 108 93 104 104 108 June 105 85 102 107 108 90 104 84 102 107 108 59 108 92 101 106 104 July 103 103 107 106 91 102 82 103 107 106 67 111 92 104 107 100 August 84 102 103 111 107 87 100 102 111 107 62 110 92 108 109 106 September. 88 100 94 102 112 105 89 101 104 112 105 81 98 97 90 111 105 October 94 99 94 105 111 103 94 98 95 107 110 102 90 104 91 115 105 November. 97 97 97 106 108 98 96 97 109 106 94 105 94 118 101 December.. 100 96 101 108 105 100 101 110 103 100 100 119 Annual index. 85 101 95 104 ! 108 87 101 94 105 108 74 105 96 99 107 Index of Production of Manufactures, by Groups Month Total s I a t r n e o d e n l Textiles p F u r o c o o t d d s - pr P i a a n n p t d e i r ng Lumber [i m A o u b t i o l - es L s e a h a n o t d e h s e r a C n b e d r m i g c e l k n a , s t, s f m e N r e r o t o a n u l - s s I I r P e l f e e i u t n r m i o n - g R t u i b re b s er f T m a o c a b t n a u u c r * e c s o 1926 August 111 120 105 i 102 115 95 ! 128 101 118 110 128 128 113 September... 112 117 109 I 103 116 99 i 124 105 117 112 128 132 113 October 110 115 110 i 102 117 97 ! 105 106 114 112 129 126 116 November 106 104 110 116 95 i 88 99 107 119 133 | 108 115 December 103 102 110 113 65 100 95 118 135 ! 112 111 1927 Tanuary 105 105 108 112 96 j 95 99 101 116 135 118 ! 114 February 107 113 108 113 95 i 99 102 107 112 134 117 113 March 110 114 114 113 91 ! 104 98 119 108 135 123 116 April ; 109 115 112 | 114 88 j 104 98 ! 109 112 134 ! 131 122 May 111 116 116 : 103 ! 113 95 105 100 108 111 132 i 127 122 fune 108 104 121 j 102 112 93 93 105 109 108 134 ! 131 116 July.. 106 102 118 96 113 95 83 113 111 106 136 i 124 109 August 107 101 119 \ 97 111 95 88 106 115 108 136 | 119 119 September 105 • 97 118 ' 93 113 99 81 112 113 107 139 113 123 October 102 93 113 i 94 113 95 71 109 108 106 142 116 121 November 87 111 | 94 111 91 47 106 106 140 113 122 Index of Production of Minerals, by Products Month Total n B o i u t s u m co i a - l Anth c r oa a l cite C tr r o u l d e e u m pe- sh Ir i o p n m e o n re ts Copper Zinc Lead Silver 1926 August 109 107 118 105 126 108 120 116 96 September 111 109 127 106 116 113 121 117 96 October 115 112 125 113 132 113 121 118 November 118 124 114 117 97 116 120 116 93 December 119 121 115 121 112 119 122 107 1927 January 116 119 101 120 114 113 113 97 February 118 125 95 123 111 113 112 95 March 118 131 88 123 100 114 115 90 April 104 87 108 119 106 110 120 90 May 108 94 117 120 120 i 107 108 113 90 June 104 91 102 120 101 ! 105 114 112 93 July _. 100 87 75 124 99 I 101 109 116 94 August 106 92 107 123 99 ! 101 114 112 94 September 105 92 100 124 87 104 111 111 90 October 105 90 107 124 95 102 110 105 91 November _ 101 85 106 124 49 105 107 110 100 NOTE —These tables contain, for certain months, index numbers of industrial production, together with group indexes for important components. The combined index of industrial production is computed from figures for 60 statistical series, 52 of manufactures, and 8 of minerals. Adjustments have been made in the different industries for the varying number of working days in each month and for customary seasonal variations, and the individual products and industries have been weighted in accordance with their relative importance. The sources of data and methods of construction were described and monthly indexes for the above groups were published in the BULLETINS for February and March, 1927. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

21 JANUARY, 1928 FEDERAL RESERVE BULLETIN PRODUCTION OF MANUFACTURES, BY INDIVIDUAL LINES Novem- October, Novem- ! Novem- ; October, Novem-1 ber, 1927 1927 ber, 1926 i ber, 1927 | 1927 ber, 1926 Iron and steel: Leather and products: j Pig iron 90 110 Leather, tanning— i Steel ingots 87 104 Sole leather^ ; 93 99 88 Textiles: Upper leather— i Cotton consumption 118 120 110 Cattle ! 69 81 102 Wool- Calfandkip _ : 108; 114 89 Consumption 90 95 93 Goat and kid.. ! 126 j 128 117 Machinery activity 1 92 100 Boots and shoes \ 98 | 111 101 Carpet and rug loom activity 1. 91 92 Stone, clay, and glass: | ! Silk- Cement I 111 115 109 Deliveries 139 140 141 Brick— | Loom activity 1 103 107 114 Face brick i 105 107 105 Food products: Paving brick ! 96 68 Slaughtering and meat packing- Plate glass. j 104 106 118 Hogs 80 81 78 Nonferrous metals: ! Cattle 100 93 107 Copper.. : 106 106 123 Calves 104 96 109 Lead ! 110 105 117 Sheep 116 115 114 Zinc J 107 110 120 Flour 97 96 97 Tini i 100 104 104 Sugar meltings 108 118 127 Chemicals and allied products: ! Paper and printing: Petroleum refining— i Wood pulp and paper- Gasoline1 J 160 162 145 Newsprint 94 91 | 113 Kerosene .! 93 94 103 Book paper 108 107 | 111 Fuel oil i j 123 124 119 Fine paper 113 115 I 118 Lubricating oil i._ j 107 115 118 Wrapping paper 98 105 103 Coke production— i Paper board 116 lie ; 115 By-products _ j 111 122 119 Wood pulp, mechanical _ 93 94 : 116 Beehive | 34 40 84 Wood pulp, chemical 103 107 111 Rubber tires and tubes: i Paper boxes 114 127; 125 Tires, pneumatic ! 117 121 111 Newsprint consumption 127 123 ! 125 Inner tubes. __ i 83 85 85 Lumber: Tobacco products: i Lumber, cut 92 94 Cigars. \ 103 108 104 Flooring _ 91 102 114 Cigarettes _ | 140 135 127 Transportation equipment: Manufactured tobacco and snuff J 96 95 94 Automobiles. _ 47 71 Locomotives 33 49 84 Shipbuilding 176 117 168 1 Without seasonal adjustment. FACTORY EMPLOYMENT AND PAY ROLLS tfndex numbers without seasonal adjustment. Monthly average, 1919=100] Metals and Month Total I;" Gro p u ro p d ! uc s l a t i t s n e o e d n l G T r e o x u t p il es F a a b n r d i c p s rod P u n r c c o t L d s : - L p u a b r u c n o e m t d d r s - - R v r c o e a l a e h i d l s i - - m A o u b t i o le - s p a r in n in g d t- F p u a o r n c o o d t d d s - s L p e u a r a c n o t t d d h s - er S c g a t l l o n a a n d s y e s , , b p u T a r c o c o t c d - s o - C p ii u a n h c r c n o oa e t d li d m s os - - Employment: 1926—October... 96.3 93.3 93.0 93.7 ! 95.9 90.8 100.2 83.9 119.9 109.8 90.4 90.6 126.6 82.7 78.2 November- 05.2 91.7 91.5 93.6 j 97.0 89.4 99.4 83.0 110.2 111.1 | 88.6 89.0 123.9 82.3 78.2 December— 94.1 90.5 90.4 95.0 ! 97.5 91.9 97.3 82.3 104.0 110.7 86.7 87.1 117.9 81.8 - 77.8 1927—January 92.4 88.9 88.7 95.2 ! 97.6 92.2 92.9 79.8 104.2 108.8 i 85.1 88.5 109.6 73.5 77.6 February._ 93.6 90.1 90.1 96.9 i 98.5 94.7 91.8 79.2 117.3 109.0 ! 84.9 88.9 110,1 79.0 77. & March 93.9 90.6 ; 90.3 96.6 ! 98.3 94.5 91.2 78.0 122.4 109.0 84.1 88.6 115.9 78.9 78.2 April. 93.2 89.9 89.6 95.1 97.5 92.0 91.0 78.4 123.4 108.1 ! 83.1 84.2 121.5 77.3 78.1 May 92.6 88.7 88.4 93.6 ! 96.5 89.9 91.6 78.5 123.7 107.3 ! 83.7 82.6 124.0 78.2 75.3 June 92.4 87.8 87.5 93.1 96.3 88.9 91.8 78.9 117.2 106.9 87.6 82.2 124.2 80.3 75.9 July 90.7 85.7 85.4 91.0 94.8 , 86.2 91.2 78.2 109.9 ! 106.3 I 86.7 85.3 119.5 80.3 75.0 August 91.2 85.4 ! 85.0 92.3 95.6 i 88.2 92.4 76.7 114.3 106.9 85.8 88.2 120.2 74.4 75.3 September. 91.9 85.1 I 84.7 93.9 ; 96. 5 ! 90.5 93.0 76. 1 111.0 I 107.8 S8.7 88.5 119. 3 83. 5 76.9 October . ._ 91.7 84.4 ! 84.0 94.5 •7.0 j 91.4 92.4 75.5 109. 9 108.6 89.2 86.5 116.2 85.3 77.8 November. 90.1 82.8 | 82.3 94.2 97.2 90.3 91.2 73.4 100.7 109. 7 , 87.7 8.1.5 114.7 84.6 78.5 Pay rolls: 1926—October 112.4 102.6 ! 102.2 105.3 108.2 101.7 117.8 93.4 151.3 151.0 ! 105.6 97.3 159.5 91.3 109.0 November..; 108.8 99.3 ' 99.0 102.0 107.3 95.5 116.4 92.1 I 131.3 152.3 i 102.9 90.4 154.6 90.6 108. 6 December.. 107.8 99.3 99.1 106.3 109.8 102.0 112.9 91.9 111.5 154.7 ! 102.1 88.5 147.6 88.4 109.1 1927—January _.. I101.9 94.1 93.8 105.3 107.6 102.6 101.6 84.6 94.0 150.3 i 99.3 90.0 129.5 76.2 107.0 February ! 108.5 99.1 98.7 111.0 111.7 110.3 103.4 89.3 140.2 150.8 99.3 95.6 136.8 79.2 108.9 March ' 109.9 100.7 ! 100.1 110.8 111.3 110.3 104.6 87.0 153.4 152.2 99.1 93.2 144.9 80.9 111.7 April 108.4 99.5 99.1 105.1 108.1 101.4 103.2 88.0 157.7 150.7 98.0 87.0 151.6 77.9 109.9 May 108.1 96.8 96.2 103.3 107.6 98.1 105.3 89.8 158.7 150.3 100.7 84.4 157.6 83.6 107.0 June 105.8 95.2 ; 94.7 102.8 107.0 97.6 104.8 87.9 131.4 148.2 104.6 85.1 154. 5 86.7 109.1 July 101.0 87.4 86.7 9.9.1 102.8 94.6 101. 1 83.0 125.2 145.4 103.1 90.2 143.7 85.7 103.6 August 104.4 90.4 89.8 102.7 105.8 98.9 105.8 85.4 136.3 147.2 101.7 97.5 149.0 79.7 105.2 September. 103. 8 87.3 104.8 107. 3 101.9 107.3 81.3 128.7 148.9 104.4 95.2 145.7 90.5 105. 7 October... 105.1 88.2 106. 9 108.9 104. 3 109.1 83. 6 133.6 151.0 104.8 88.5 145.0 91.3 110.0 November. 101.2 6.0 I 85.2 102. 9 106. 9 98.1 106.3 82.2 117.6 149.0 103.0 76.8 140.8 90.5 109.7 NOTE.—This table contains for certain months general index numbers of employment and pay rolls, together with group indexes for important industrial components. The general index is a weighted average of relatives for 34 individual industries. The method of construction was described in detail and indexes for the above groups since January, 1919. were published in the BULLETIN for May, 1925. See also p. 668 of BULLETIN for September, 1925, for certain revisions. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

22 FEDERAL RESERVE BULLETIN JANUARY, 1928 BUILDING BUILDING CONTRACTS AWARDED ' [Index numbers based on value of contracts. Monthly average, 1923-1925=100] Without seasonal adjustment With seasonal adjustment Month 1922 1923 1924 1925 1926 1927 1922 1923 1924 1925 1926 1927 January. _ 48 61 76 75 111 94 70 85 101 101 146 123 February 52 71 78 76 99 96 70 97 101 104 136 131 March _ 85 94 109 120 146 151 83 87 99 107 128 131 April... .*. 102 101 121 138 139 147 82 79 96 112 120 128 May 105 109 108 124 134 135 85 89 95 115 125 126 June. . 100 93 101 137 133 154 82 81 91 125 125 144 July 102 79 87 133 126 130 92 76 84 128 124 12? August 93 75 89 149 146 135 86 72 85 135 129 US September 79 73 87 138 137 127 81 76 90 135 130 121 October 73 91 103 129 126 137 71 88 100 129 126 137 November.. 71 80 95 116 119 114 82 90 103 127 130 125 December 62 76 83 129 131 116 77 90 94 138 136 121 BUILDING CONTRACTS AWARDED, BY FEDERAL RESERVE DISTRICTS i [Value of contracts in thousands of dollars] I! Federal Reserve District Month Total New Phila- Cleve- Rich- Minne- Kansas Boston York delphia land mond Atlanta Chicago St. Louis apolis City Dallas 1926 September.. 562,371 42,427 151,251 39,189 55,226 38,704 37,194 110,760 35,187 12,955 • 18,445 21,033 October 515,727 29,297 127,176 28,843 55,236 35,250 34,979 108,944 40,981 13,712 I 22,935 18,374 November.. 487,013 34,584 118,757 28,609 38,733 44,318 40,084 114,456 30,586 9,752 11,979 15,155 December... 537,396 31,570 228,021 31,018 41,795 92,113 22,504 8,588 11,520 19,439 1927 January 384,455 15,848 116,973 32,353 48,509 27,776 32,454 56,372 21,633 | 4,337 11,419 16,881 February... 393, 583 20,298 105,958 33,088 45,741 24,944 31,928 69,698 25,697 I 5,548 16,173 14,510 March 620,738 42,806 157,873 52,351 62,733 34,694 45,921 121,426 42,704 i 16,107 16,342 27,781 April 604,391 40, 649 168,170 52,925 74,366 31,192 31,004 112,070 34, 888 13,944 22,644 22,539 May. 552,349 39,023 141,177 36,172 72,782 39,736 31,100 103,226 31,344 12,999 21,528 23,262 June 632,478 33,569 175,991 47,632 72,266 35,502 31,188 138,187 44,171 14,134 17,598 22,240 July 534,390 29,658 157,597 37, 578 54,707 34,241 28,093 105,070 32,205 15, 521 17,203 22,517 August 552, 488 37,461 143,088 45, 433 71,494 31,813 28,176 107, 554 34,134 14, 463 19,061 19,811 September.. 521,611 32,863 107, 969 43,237 61, 651 57,464 30,917 104,015 32,573 ! 10,319 22,253 18, 350 October 562,816 27,486 168,641 32,911 51,273 29,553 26,023 138,662 41,405 ! 12,166 19,317 15,379 November.. 40, 070 131,414 28, 702 41, 639 24,811 39,151 82,794 27,793 I 8,526 16, 516 24,977 BUILDING CONTRACTS AWARDED, BY TYPES OF BUILDING PERMITS ISSUED, BY FEDERAL RESERVE BUILDING i DISTRICTS [Value of contracts in thousands of dollars] Public [Value of permits in thousands of dollars] Month d R en e t s i i a - l In tr d ia u l s- m C e o r m c - ial u p w t a u i o l n b i r d t l k i i e c s s E ti d o u n c a a l - o A th ll er Federal reserve district N of u c m it b ie e s r b N er o , ve 1 m 92 - 7 Oc 1 t 9 o 2 b 7 er, b N er o , ve 1 m 92 - 6 1926 September. 225,516 49,113 97,378 98,167 34,531 57,666 United States. 168 | 251,643 232,308 250,681 October.... 226,794 46,465 63,601 103,757 23,567 51,543 November. 229,821 64,781 59,657 50,129 34,572 48,053 Boston... 14 | 14,064 j 8,318 9,605 December. 203,966 51,181 75,196 120,290 22,178 64,585 New York.... 22 ! 92,495 ! 84,423 99,158 1927 Philadelphia.. 14 ; 11,265 i 12,021 12,611 January 167,866 27,875 80,116 58,955 17,012 32,631 Cleveland 12 i 14,230 i 16,893 15,822 J M A F M u e p a a n b y r r e i r c l u h ary.. 2 2 2 2 1 3 6 1 5 6 9 7 9 0 3 , , , , , 4 8 0 9 0 1 1 8 7 8 7 4 8 8 0 4 4 4 3 4 1 3 4 4 8 , , , , , 2 8 0 6 8 4 7 7 0 8 7 7 9 2 9 1 8 6 8 7 1 8 7 2 0 3 , , , , , 1 8 5 7 7 9 4 2 5 6 6 1 2 4 6 1 1 1 1 5 1 5 1 0 2 6 1 1 6 , , , , , 1 2 8 3 3 8 2 6 9 6 0 7 4 9 8 4 2 3 3 3 5 2 2 4 6 , , , , , 0 5 5 1 6 4 4 2 2 7 6 5 2 2 8 4 5 6 6 7 9 7 5 9 7 , , , , , 1 4 1 0 6 2 6 4 2 7 6 8 2 6 6 R A S C t i . h t c l i a L c h n a m o g t u a o o i n s d 1 1 1 5 5 5 9 4 9 7 8 2 , , , , 0 9 9 8 3 8 6 5 3 3 0 1 ( 4 8 6 5 8 , , , , 4 7 3 5 0 0 4 7 1 8 9 4 5 1 9 0 5 0 , , , , 4 0 9 7 6 1 9 8 1 3 0 2 J N A S O u e u o c l p y v g t t o u e e b m m s e t b b r— e er r. . 1 2 2 2 2 8 0 0 1 4 6 2 9 4 3 , , , , , 9 8 4 9 5 3 7 5 6 6 5 7 6 3 2 3 4 4 5 5 0 0 8 1 2 , , , , , 3 5 0 8 7 0 4 3 9 1 3 6 9 0 2 8 4 7 5 7 3 6 3 9 9 , , , , , 0 6 7 5 9 1 1 2 2 1 0 7 0 1 5 1 1 1 1 4 7 2 1 0 3 6 6 9 8 , , , , , 9 0 2 7 2 1 8 3 4 1 6 9 0 1 0 3 2 4 3 3 6 9 1 0 1 , , , , , 4 2 0 7 1 3 4 3 4 7 4 4 5 1 0 5 6 5 4 5 3 7 5 4 0 , , , , , 7 1 0 3 4 9 8 9 0 4 2 9 7 2 2 D K M Sa a a n i l n n l s a n F a s e r s a a n p C c o i i l t s i y c s _ o . . . . . 3 2 6 6 5 , , , , 4 5 5 2 2 0 7 5 7 7 2 6 I ! ! | 2 9 2 5 3 , , , , 3 5 7 8 6 9 7 9 1 3 3 4 2 3 5 3 4 , , , , 5 5 8 2 1 4 8 9 9 2 0 8 i Figures for building contracts awarded are for 37 States east of the Rocky Mountains, as reported by the F. W. Dodge Corporation. Adjusted indexes by months from 1910 to date given in the BULLETIN for August, 1927, p. 563. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

23 JANUARY, 1928 FEDEEAL RESERVE BULLETIN COMMODITY MOVEMENTS FREIGHT-CAR LOADINGS, BY LINES AGRICULTURAL MOVEMENTS [Index numbers, adjusted for seasonal variations. 1923-1926=1001 [Inde* numbers, without seasonal adjustment. 1919=1001 Merchan- Ani- Month Total G p g a r r r n o a a d i d i n n - s L t i o v c e k - Coal F p u o r c o re t d s s - t 1 d a .0 n is . d 1 e . Month Total s L t i o v c e k - p u m r c o a t d s l - Grains C to o n t- t V ab e l g e e s -Fruits b T a o cc - o ucts miscellane- 1926—October... 190 113 96 125 375 251 435 261 ous November.. 165 107 117 99 343 135 204 286 December.- 138 95 126 82 251 98 104 344 1926—October 109 104 97 113 100 110 1927—January 115 99 86 86 152 118 99 404 November 108 93 90 128 94 106 February. >. 104 81 95 84 118 113 97 383 December 106 99 86 124 90 106 March 103 91 118 71 117 146 100 212 1927—January 105 96 88 114 94 108 April 85 82 137 50 74 146 128 31 February 109 102 87 121 95 109 May 94 95 161 63 58 140 174 8 March 109 98 92 122 91 110 June. 94 91 169 84 32 162 127 1 April 108 97 92 107 90 110 July 95 79 149 135 13 133 140 May 107 100 95 103 93 108 August 123 93 129 195 80 119 142 """50 June 104 105 93 96 91 108 September.. 165 87 102 207 205 233 267 255 July 101 97 89 89 94 107 October 185 111 95 182 284 266 357 323 August 104 98 91 102 95 109 November.. 149 105 110 122 244 145 154 328 September 104 108 87 102 95 108 October. 101 106 94 94 93 106 For description and early figures see BULLETIN for March, 1924, and November 96 94 87 87 87 102 for certain revisions see p. 739 of the BULLETIN for October, 1925. For description and early figures see p. 562 of August BULLETIN. WHOLESALE TRADE INDEX OF WHOLESALE DISTRIBUTION—NINE LINES OF TRADE [1923-1925 average=100] Sales with seasonal adjustment Sales without seasonal adjustment Month 1922 11992233 1924 j 1925 1926 i 1927 1923 1924 1925 1926 1927 January 79 102 103 102 ' 102 94 72 93 94 93 94 87 February , 81 100 102 I 101 ! 101 95 . 77 96 98 97 97 91 March 85 104 94 : 100 i 100 96 93 114 102 109 107 103 April 83 100 99 i ioo ; 97 94 80 97 96 98 94 90 May 89 103 95 : 99 j 99 95 82 94 87 90 91 87 June 91 102 91 ! 100 99 93 | 84 92 82 91 91 87 July 86 101 93 102 97 95 79 92 86 94 91 88 August 91 103 95 101 97 100 101 115 105 113 107 111 September 91 99 101 I 100 ! 100 96 107 115 118 117 117 112 October 93 103 99 i 105 ; 94 91 110 123 118 124 111 106 November 97 100 99 j 100 ! 98 95 98 100 97 99 97 93 December 97 95 101 95 83 82 88 89 84 Annual average. 89 101 98 101 98 "I" SALES IN INDIVIDUAL LINES OF TRADE With seasonal adjustment Without seasonal adjustment Month i i i c G eri r e o s -Meats g D oo ry ds M cl i o e n t n g h 's - W c e l i o o n n t g m 's h- - B s a h o n o o d e t s s H w a a r r d e - Drugs n F it u u r r - e c G er r i o e - s Meats g D oo ry ds M cl i o e n n t g h - s W c e l i o o n n m t g ' h s - - B s a h o n o o d e t s s H w a a r r d e - Drugs n F i u tu r r - e ! 1926 ! September 100 117 97 97 70 103 101 109 103 109 125 122 148 101 126 109 116 117 October...' 95 110 90 83 69 90 97 108 101 107 123 104 105 111 113 109 125 120 November 96 116 99 82 66 99 102 111 106 102 112 98 61 45 104 100 112 111 December.1 96 113 89 87 66 94 100 107 100 94 106 71 44 42 76 93 100 94 1927 j January... 93 113 83 88 77 112 92 104 100 86 113 78 68 71 92 82 102 88 February. 93 112 87 101 75 108 93 103 96 81 107 88 128 95 85 82 94 96 March i 96 108 90 105 67 97 98 106 96 94 104 95 144 108 111 102 117 100 April 95 111 86 90 68 94 94 106 95 90 104 76 88 64 100 96 108 96 May 97 109 87 90 69 110 91 104 93 95 109 76 54 39 111 93 98 88 June 98 104 88 94 62 90 92 106 100 101 106 78 48 27 85 96 99 88 July 91 102 88 94 79 134 92 105 104 92 104 81 82 43 107 90 100 85 August 97 109 102 105 72 111 97 112 106 97 111 125 172 98 122 98 110 109 September; 94 109 91 96 66 104 99 114 104 102 117 113 146 95 127 106 122 118 October... 90 109 86 84 54 91 94 111 96 102 122 99 105 87 114 105 128 114 November i 94 105 90 89 67 105 100 112 99 100 101 89 63 45 110 98 113 104 NOTE.—The basic data used and the methods of construction of the index of wholesale distribution were described and monthly indexes from January, 1919, to October, 1927, were published in the BULLETIN for December, 1927, pp. 817-828. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

24 FEDERAL RESERVE BULLETIN JANUARY, 192b RETAIL TRADE SALES OF DEPARTMENT STORES, MAIL-ORDER HOUSES, AND CHAIN STORES [Index numbers.* Average monthly sales 1919=100] Sales without seasonal adjustment Sales with seasonal adjustment Chains Chains Month De- Mail- De- Mailpart- order part- order s m ( t 3 o e 5 r n 9 e t ) s ho ( u 4 s ) es G c ( e 2 r r 7 o y - ) 1 5 0 -a ( -c 5 n e ) d n - t D ( r 9 u ) g C ( i 3 g ) ar S ( h 6 o ) e M ( u 4 s ) icCa (5 n ) dy s m ( t 3 o e 5 r n 9 e t ) s ho (4 u ) ses c G ( e 2 r r 7 o y - ) 1 5 0 - ( a - 5 c n e ) d n - t D ( r 9 u ) g C ( i 3 g ) ar S ( h 6 o ) e M ( u 4 s ) ic Ca (5 n ) dy 1926 June 130 113 309 204 184 152 153 118 204 130 133 314 222 187 156 144 149 218 July 99 97 317 206 195 155 145 108 210 133 131 329 227 194 157 159 145 214 August.__ 105 98 296 204 193 148 122 121 194 134 130 310 215 192 151 155 136 193 September- 131 121 307 211 192 153 142 137 218 144 128 323 227 195 152 148 137 221 October _. 158 151 334 257 206 162 158 151 227 139 116 324 237 202 155 140 125 221 November. 156 153 347 247 198 150 150 146 232 138 123 344 237 210 151 138 117 244 December. 234 166 373 466 261 222 215 223 303 146 139 357 252 215 164 164 118 208 1927 January 114 108 347 177 209 134 106 94 178 130 110 345 243 217 154 140 114 212 February— 107 107 332 191 201 137 110 98 194 139 118 346 256 222 162 164 119 230 March 129 132 392 213 224 153 125 108 216 129 113 361 222 222 158 126 120 213 April 143 128 385 244 223 157 198 104 257 140 125 380 261 230 163 170 122 257 May 132 106 383 224 206 157 143 88 216 127 119 382 236 209 154 124 106 224 June 130 114 399 224 210 151 155 87 215 130 135 405 244 213 155 145 109 229 July 97 100 373 221 217 153 145 80 211 130 135 388 243 214 154 159 107 215 August 113 113 382 237 215 147 132 98 208 144 150 401 249 215 150 168 110 207 September. 130 126 384 232 210 146 140 126 223 143 134 404 250 214 146 146 125 226 October. _. 151 158 426 278 234 154 157 128 233 133 122 414 257 229 147 139 106 227 November. 156 160 422 265 223 146 155 128 235 139 128 419 254 237 148 142 103 247 i For description of retail trade indexes see BULLETINS for January and March, 1924. Index of sales of grocery chains revised in February, 1925; comparable figures since January, 1919, obtainable from Division of Research and Statistics, Federal Reserve Board. DEPARTMENT STORE SALES AND STOCKS, BY FEDERAL RESERVE DISTRICTS [Index numbers Monthly average 1919=100] Federal Reserve District United States Boston New Phila- Cleve- Rich- Atlanta Chicago Minne- Dallas I San York delphia land mond apolis | Francisco I Sales (unadjusted): 1926—September.. 131 122 136 116 123 110 92 164 103 114 158 October 158 154 177 160 152 j 154 125 171 109 i 134 169 November.. 156 157 170 166 147 ! 155 129 169 102 i 126 168 1927—September.. 130 124 138 110 118 ! 109 101 160 97 i 109 161 October 151 145 168 146 142 I 141 129 165 109 ; 131 171 November.. 156 156 176 160 139 149 124 176 101 : 124 176 Sales (adjusted): 1926—September.. 144 135 j 155 143 I 138 : 129 103 172 ! 102 ! 114 168 October 139 139 I 148 139 : 138 i 135 ! 104 156 96 : 114 155 November.. 138 143 147 128 : 135 ! 133 112 153 95, 110 166 1927—September.. 143 137 ! 157 136 133 ! 128 113 168 97 ' 109 172 October 133 131 ! 140 128 : 129 123 108 150 97 ! 112 I 157 November. _ 139 142 ! 152 123 ! 128 • 128 107 159 94 ! 109 ! 174 Stocks (unadjusted): 1926—September.. 142 125 142 180 136 I 135 122 163 103 126 143 October 153 136 152 221 144 ! 146 128 175 105 129 151 November.. 156 141 157 216 150 | 149 177 105 126 156 1927—September.. 143 127 142 194 134 I 132 126 165 : 99 115 146 October 152 136 151 209 140 j 143 132 176 103 118 156 November.- 154 139 153 209 145 ! 147 136 179 103 117 160 Stocks (adjusted): 1926—September. _ 132 ! 118 133 168 126 122 111 152 99 112 136 October 137 121 137 198 129 126 114 156 , 97 114 140 November.. 138 122 138 194 133 130 114 157 ! 96 113 143 1927—September.. 133 120 133 181 125 119 116 155 i 95 103 139 October 136 121 136 188 126 123 118 157 • 95 104 144 November.. 137 120 135 188 128 129 122 159 ; 94 105 146 NOTE.—Number of reporting firms included in sales and stocks indexes, respectively, for department stores are as follows, by Federal reserve districts: United States, 359-314; Boston, 24-24; New York, 63-63; Philadelphia, 22-13; Cleveland, 54-52; Richmond, 23-19; Atlanta, 35-22; Chicago, 63-51; Minneapolis, 23-22; Dallas, 21-19; San Francisco, 31-29. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

JA.MARV, 1928 FEDERAL RESERVE BULLETIN 25 BANK SUSPENSIONS AND COMMERCIAL FAILURES BANK SUSPENSIONS, BY CLASS OF BANK COMMERCIAL FAILURES, BY CLASS OF ENTERPRISE i [Amounts in thousands of dollars] [Amounts in thousands of dollars] Member Nonmember Number Liabilities All banks banks banks Num-; Total Num-! Total Num- Total Total M fac a t n u u r- - j :T ^ "b d r i o A k g e e r n s ts , ,! Total M fac a t n u u r - - Trad- ! ber deposits' ber deposits ber deposits ing i mg etc. ing ing 1926 192C January- 65 13,384 | 11 3,992 54 9,392 January 2,296 510 1,696! 90: 43,651 16,094121,502 February 52 i 11,763 10 ! 2, 861 42 8,902 February 1,801 447 1,282! 72 34,176 10,822120,317 March 51 i 10,249 6 710 45 9,539 March 1,984 469 1,4241 91! 30,623 9, 862i 18,623 April 56 !12,512 6 3,534 50 8,978 April 1,957 494 1,378! 85; 38,487 16, 734: 19,094 May 68 !16, 324 i 10 4,234 58 12,090 May 1,730 437 1, 216! 77 33,543 16,157! 15, 710 June 77 i34, 229 | 16 5,318 61 28,911 June 1, 70Si 435 1,160i 113 29,408 10,092 15, 525 July 140 48, 618 5 1,637 135 46,981 July :.:: 1, 605| 396 1,122 87 29,680 11,167 14,614 August 52 10, 001 9 2.127 43 7,874 August 1,, 593, 449 l,07l| 73 28,130 12, 516 14,096 September.. 37 12,050 : 8 4,317 29 7,733 September... i 1,437' 374; 958! 105 29,990 10,093 11, 243 October 88 18, 209 19 6,280 69 11,929 October I 1,763' 450 1,205! 108 33, 231 11,650 15,874 November.. 154 45,983 33 19,389 121 26, 594 November 1,830 440 1,285| 105 32,694 16,097 14,158 December... 116 39,166 ; 27 14,413 89 24, 753 December 2,069| 494, 1,471, 104 45,620 16,758 20,579 Total.. 956272, 488 ; 160 68,812 796 203, 676 Total 21, 773! 5, 395 15, 268' 1,110 409, 232 158,042,201,335 1927 1927 .! | January.. 133 38,298 ; 27 11,836 106 26,462 January 2, 465!^ 501 , 842: 122 51,290 19, 996 24,530 February.. 82 32.918 16 8, 895 66 24, 023 February i 2,035j: 411 , 508 116 46, 941 10, 518 23,406 March 75 44, 8! 3 16 8, 019, 59 35, 894 March 2,143 569 ., 468 106 57,891! 22,368 28,191 Ap'il 48 12.492 ' 10 5.471 38 7,021 April 1,968 .,342 134 53, 156 25, 27822,308 Mty 47 14.185 11 7,172 1 36 7.013 May .: 1,852' ,292 116 37.785 13,8021 19,978 June 41 12,072 ! 9 5, 521: 32 6, 551 June _ 1.833: 427 ,310 9< 34.465; 13,5871 17.856 July 38 14,012 2 2, 0381 36 11,374 July... l.756:: 448 ., 1871 ' 121 43,150 16,743! 16,832 August 27 20,111 1 5 9, 439i 22 10. fi72 August 1,708" 438 , 174| 96 39, 196 14, 9211 14.702 S O e c p to te b m er ber. 3 4 6 4 1 9 1, , 5 2 6 0 6 6i 6 9 3 1 . , ( 3 . 1 i2 5 21 £ 3 5 0 7 7 , , 8 6 9 4 1 4 S O e c p to te b m er b er 1 1 , , 5 7 7 8 3 7: 3 48 8 8 9 , , 1 0 7 8 0 3 1 1 0 2 1 9 3 3 2 6 , . 7 2 8 3 6 6 ; 1 1 7 5 , , 1 3 3 4 4 9 ! 1 1 4 2 , , 6 0 5 5 7 2 November. 43 12,139 ! °3, 39(5 I 37 8, 743 November 1, 864: 478 ,276 110 36,147 12,786' 16,949 Total, 11 months 614221,892 117 68, 004i 497 153, 288 Total, 11 mos..20,984' 5.085.14-., 6521 1,247 469.043 182,4821211,461 i BANK SUSPENSIONS i IN NOVEMBER 1927 BY DISTRICTS COMMERCIAL FAILURES, BY DISTRICTS i [Amounts in thousands of dollars] [Amounts in thousands of dollars] I Member j Nonmember Number Liabilities All banks ! banks 2 banks Federal reserve Federal reserve district | district ! Nov., | Oct., Nov., • Nov., Oct., Nov., ber p T o d o s e i t t - a s l 3 N b u e m r - i i p T o d o s e i t t - a s l 3 N b u e m r - p T o d o s e i t t - a s l 3 1927 1927 1926 1927 1927 1926 Boston 185 175 221 5,590 3,396 3,426 New York 350 276 363 8,368 9,502 5,932 Boston Philadelphia. 72 51 72 1,487 953 2,620 New York Cleveland 147 175 134 3,449 7,010 2,775 Philadelphia.,. Richmond... 137 104 120 2,556 1,762 3,068 Cleveland 813 523 290 Atlanta 99 101 92 1,205 902 1,875 Richmond 110 110 Chicago 210 264 237 3,183 4,857 5,633 Atlanta. 1,858 450 1,408 St. Louis 63 69 3,477 1,345 807 Chicago. 3,831 1,956 1,875 Minneapolis.. 83 1,153 660 721 St. Louis 2,061 2,061 Kansas City.. 113 105 2,194 1,704 778 Minneapolis... 2,438 2,438 Dallas.. 68 38 95 818 555 1,543 Kansas City... 903 467 436 San Francisco.. 322 353 239 2,668 3,591 3,516 Dallas 125 125 San Francisco.. Total. 1,864 1,787 1,830 36,147 32,694 Total _ 443 12,139 i 3,396 37 8,743 i Figures furnished by R. G. Dun & Co. 1 Banks closed to the public by order of supervisory authorities or by the directors of the banks on account of financial difficulties. 2 Comprise 5 national banks with deposits of $1,521,000 and 1 State member bank with deposits of $1,875,000. 3 Figures represent deposits for the latest available date prior to the suspensions and are subject to revision when information for the dates of suspension becomes available. 4 Includes 2 banks for which deposit figures are not available. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

26 FEDERAL RESERVE BULLETIN JANUARY, 1928 DECEMBER CROP REPORT, BY FEDERAL RESERVE DISTRICTS [District figures derived from revised estimates, by States, made by the Department of Agriculture] [In thousands of units] Corn (bushels) Total wheat (bushels) Winter wheat (bushels) Spring wheat (bushels) Estimate Estimate Estimate Estimate Yield, 1926 Dec. 1,1927 Yield, 1926 Dec. 1,1927 Yield, 1926 Dec. 1,1927 Yield, 1926 Dec. 1,1927 Boston 10,140 8,493 160 92 160 92 New York 28,125 26, 394 5,771 7,216 5,609 6,994 162 222 Philadelphia.. 51,468 45,929 21,450 18,761 21,450 18, 651 110 Cleveland 197, 337 150, 323 46, 354 33, 931 46, 222 33,817 132 114 Richmond 158,323 163, 753 32, 516 25, 233 32, 516 25,233 Atlanta _ 195, 055 184,477 8,579 4,528 8,579 4,528 Chicago 910,389 800, 566 69,715 66,035 66, 262 60,731 3,453 5,304 St. Louis 393, 007 342,426 54,976 42,210 54, 574 41,701 402 509 Minneapolis... 261, 995 304, 986 161, 683 273, 522 10, 722 19,718 150,961 253, 804 Kansas City.. 308, 674 612,496 293, 519 248, 270 283,469 235, 557 10,050 12,713 Dallas 121,782 134,969 34, 860 18, 357 34, 596 18, 214 264 143 San Francisco. 10, 558 11,476 103, 226 133, 536 63, 434 87, 240 39, 792 46,296 Total- 2,646,853 | 2,786,288 j 832, 809 871,691 j 627,433 552,384 205,376 319,307 Oats (bushels) Cotton (bales) Tobacco (pounds) White potatoes (bushels) Yield, 1926 D E e s c. t i 1 m ,1 a 9 te 2 7 ; VY i lQe i/ l i d '1 I 9 Q 2 O 6 A De E c. s t 1 i , m 19 a 2 te 7 j Y ' Vl i eQl i d / ' i 1 I 9 Q 2 O 6 PJ D e E c. s t 1 i , m 19 a 2 t 7 e , 1926I \ D E e s c t . i 1 m ,1 a 9 te 27 Boston 9, 558 9,215 38,465 I 37, 280 45,968 40,091 New York 36,111 36,636 2,493 1,249 32,763 ! 33,152 Philadelphia... 22, 319 24, 844 43,560 ! 44,880 21,507 | 25,998 Cleveland 92,130 78, 362 143,155 : 92, 002 18,183 I 21,501 Richmond 28,482 i 26,104 2,272 1,624 620,352 706,036 30.451 i 40, 798 Atlanta 21,571 i 14. 282 3,772 2,839 128,897 123,435 10,593 i 12, 303 Chicago 490,757 459,849 34,715 31,383 59,417 i 52,171 St. Louis 59,031 j 40,547 i i 3, 349 2 2, 275 304,603 196, 722 13,003 ! 14,061 Minneapolis. _. 229,006 287,622 2.001 1,897 53,259 I 65,968 Kansas City... 143,132 140,303 1,689 j 926 3,182 2,948 26.452 I 36,927 Dallas 86, 680 ! 43, 807 6,654 ! 4,947 ; 2,819 | 3,129 San Francisco. 31,242 ! 33,435 241 j 178 : 41,708 ! 56,050 Total J 1,250,019! 1,195,006 17, 977 12,789 1,321,423 1,227,832 356,123 402,149 1 Includes 17,000 bales grown in miscellaneous territory. 8 Includes 7,000 bales grown in miscellaneous territory. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

JANUARY, 1928 FEDERAL RESERVE BULLETIN 27 FOREIGN BANKING AND BUSINESS CONDITIONS RETURN OF ITALY TO GOLD BASIS On December 22, 1927, the Italian Govern- total of the internal debt; and a notable ment reestablished Italian currency on the gold conversion of short-term into perpetual debt basis. A decree issued on that date made it took place. compulsory for the Banca d'ltalia to redeem Banking developments further prepared the its notes on demand in gold coin or foreign ground for the currency reform. In the first currencies of countries on a gold basis at the half of 1925 borrowing at the Bank of Italy and rate of 3.67 lire in paper for 1 lira in gold. bank note expansion were still under way, and The new lira has a fine gold content of 0.0791911 in June the lira began to decline on the exgramnes, and its mint parity is 5.26315 cents, changes and prices in Italy rapidly advanced. or approximately at the rate of 19 lire to The Bank of Italy met this situation by three the dollar and 92.46 lire to the pound sterling. successive increases in its discount rate from In recent months the lira has fluctuated 5}/2 per cent, the level at which it had been between 18 and 18.5 lire per dollar, so that its since 1922, to 7 per cent, at which point it new parity will be somewhat lower than its has remained. Money rates in the open recent exchange value. The Bank of Italy market advanced correspondingly, and this is required to retain gold or foreign gold stiffening of money rates, together with strict currency reserves amounting to at least 40 regulation of exchange transactions, was an per cent of the total of outstanding note circulation and all other demand liabilities. CENTS PER LIRA The bank is authorized to revalue its reserves, 6 which have been carried on its books at the old par of 5.18 to the dollar, on the new basis, and the resulting excess is to be applied in the reduction of the debt of the State to the bank. In accordance with the practice followed in other European countries when returning to a gold basis and to insure the maintenance of monetary stability the Bank of Italy arranged for a $50,000,000 credit from a group of private banks headed by J. P. Morgan & Co., and for a $75,000,000 credit with a group of central banks. According to the arrangement made with the Federal Reserve 1925 1926 1927 Bank of New York, in association with other The figures for wholesale prices are those of Professor Bachi's revised index (sea p. 63), recomputed on the base 1925-1927=100 Federal reserve banks, these banks have agreed to buy from the Bank of Italy, if desired, up influence in bringing the lira back to its preto a total of $50,000,000 of prime commercial vious level in September and in causing prices bills of the kinds and maturities made eligible steadily to decline. for purchase by the Federal reserve act. This In the spring of 1926, however, the lira broke agreement is similar to those made with the again, and this break was followed by a series National Bank of Belgium and with the Bank of measures by the Government. On June of Poland. 30, 1926, the Bank of Italy was made the sole The present measures are the culmination of bank of issue in the Kingdom, taking over the a series of preparatory developments. In the circulation of the Bank of Naples and the fiscal year 1925 the Italian budget was bal- Bank of Sicily. On September 7, 1926, the anced for the first time since the war, and the bank was given supervisory powers over the balance then achieved has been maintained. entire banking system, and the Government Early in 1926 the terms of Italy's debts to announced several measures designed to bring England and to the United States were defi- about "deflation." In the first place, the nitely fixed at amounts that were considered State undertook to repay gradually its debt to be within Italy's capacity to pay. During to the Bank of Italy. A first reduction was the year a large reduction was effected in the made by transferring to the bank an amount Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

28 FEDERAL RESERVE BULLETIN JANUARY, 1928 equal to $90,000,000 arising from an earlier by the process of turning over to the bank loan in the United States, thus reducing the foreign balances acquired largely through the debt by 2,500,000,000 lire. A limit was borrowing abroad by Italian industries and placed on the amount of bank notes outstand- public bodies. Reestablishment of confidence ing, and the Government undertook to convert in the lira, together with the higher level of its 5 and 10 lire notes into silver coin and to money rates, also led to a considerable movewithdraw entirely its 400,000,000 of 25-lire ment of funds to Italy from abroad, thus notes outstanding. Meanwhile the Govern- increasing the demand for lira exchange and ment's finances were in a much strengthened affording the Bank of Italy the opportunity condition, and control of exchange operations of strengthening its reserve position by the was in the hands of the central authorities. purchase of foreign balances. Since last July Almost immediately the lira began to rise on the value of the lira has been stabilized in the exchanges, and wholesale prices began to effect at slightly more than 18 lire to the decline rapidly. dollar, and its new parity is thus somewhat During this period loans and discounts at lower than the value it has maintained in the the Bank of Italy were substantially reduced market for the past six months. REPORT OF THE AGENT GENERAL FOR REPARATION PAYMENTS The report of the Agent General for Repara- GERMAN CREDIT CONDITIONS AND THE CURRENCY tion Payments, submitted to the Reparations The broad activity which German industry Commission under- date of December 10, 1927, and commerce have maintained during 1927 and covering the third annuity year, gives a has been associated with credit expansion and comprehensive account of the execution of the more recently with credit tension. It is true experts7 plan, in relation to the German that in this period German business enterbudget, the German public debt, German prises have been getting the benefits of the credit conditions, Germany's foreign trade, and searching process of rationalization under- German business conditions in general. It taken two years or more ago, have reemployed also includes in annexes copies of the Agent often at higher wages by far the greater part General's memorandum of October 20, 1927, to of the workers on the unemployment lists the German Government, calling attention to last year, and have much enlarged the volume certain general tendencies believed to be of goods produced and distributed. But dangerous both to the execution of the experts' industrial and commercial growth has been plan and the general German economy, the confined mainly to the internal market, where memorandum submitted in reply by the in recent months the prices of goods entering Finance Minister under date of November 5, into consumption have risen; and quickened and the speech of the Finance Minister before domestic business has called for a much larger the budget committee of the Reichstag on volume of imports than a slowly rising volume October 26. of exports has as yet been able to balance. The conclusions drawn by the report empha- Along with this revival of internal activity, size the fundamental conceptions of the plan partly the result of it and partly causing it, itself, in the light of experience, and point out credit expansion has taken place, not only as the principal lesson to be drawn from the in the form of increased dependence on the past three years that: Reichsbank, but also in the shape of further As time goes on, and practical experience accu- loans and credits from abroad. mulates, it becomes always clearer that neither the The inflow of foreign credit in recent months, reparations problem, nor the other problems depending upon it, will be finally solved until Germany has been by reason of its size and speed, raises the quesgiven a definite task to perform on her own responsi- tion whether foreign loans in such volume are bility, without foreign supervision and without transfer still serving the purposes of German reconstrucprotection. tion. In so far as they have provided the That part of the report (about one-sixth) public authorities with additional spending which deals with credit conditions in Germany power at a time when industry was already is as follows: actively engaged, the incoming foreign loans Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

29 Y, 1923 FEDERAL RESERVE BULLETIN have merely stimulated expansion, and so and the expensive process of rationalization have interfered with the solid work of recon- was still to be carried through. Over and struction. There remains, no doubt, a proper above these internal requirements, Germany field for the use of foreign credit, which may needed foreign goods, particularly raw cominclude some of the undertakings committed modities with which to replenish depleted to the charge of the public authorities. At stocks and to furnish mills and factories with this moment, in fact, the Reich, in coopera- working materials. If it had been necessary tion with the States and communes, is engaged for Germany to depend exclusively upon doin a survey of present conditions and of prob- mestic resources for building up so large a able future requirements. It is essential to fund of credit, the process would have been the stability of German reconstruction that painfully slow and German reconstruction this survey should lead to a general program would have been subject to manifold political which will at once maintain the confidence of and social as well as economic hazards. the foreign investor and adjust the inflow of The experts themselves made a foreign loan foreign funds to the dimensions that currency an essential part of their plan. In specifying stability presupposes. the purpose of this loan, which was issued in Foreign loans.—At the time the experts' the autumn of 1924 in the effective amount of plan went into effect, one of the problems at 800 million gold marks, they said: the root of German reconstruction was the re- External money is indeed an essential part of our plenishment of the stock of working capital scheme, in part for the establishment of a new bank of lost through the war and scattered during the issue; in part to prevent an interruption of deliveries inflation. The first balance sheet of the re- in kind during the transition period; and essentially, to create the confidence upon which the whole success constituted Reichsbank, issued on October of the scheme depends. But we do not propose that 15, 1924, reported reserves amounting to 818 it should be confined, or devoted specially, to meeting million reichsmarks, of which 614 millions deficits on ordinary expenditure even during a tranwere in gold and the rest in foreign bills, sition period. On the contrary, as will be seen, we think that, from the beginning, internal resources should checks, and deposits, classified together as meet internal ordinary expenditure and at a very devisen. In addition, Germans possessed an early date should suffice in addition to make substantial indefinable amount of claims against the rest contributions toward the external debt. of the world in the shape of foreign securities, The restrictions mentioned by the experts deposits in foreign banks, foreign currencies, were in fact applied to the proceeds of the loan and numerous other less liquid items. The when they became available, and the German second committee of experts estimated that Government has not since that time issued any at the end of 1923 German capital abroad of foreign loan for the purpose of making up every kind, including capital of varying degrees deficits or otherwise. of liquidity and capital invested in foreign com- In addition to the loan for which they thempanies and firms, amounted to around 8,000 selves provided, the experts looked forward to million gold marks. But in the interval be- a more general flow of investment credit toward tween the making of the estimate and the be- Germany as a natural consequence of the ginning of operations under the plan, credit restoration of confidence. In this connection stringency at home, together with confidence they said briefly: in the ultimate goodness of the German cur- * * * the success of our proposals to attain rency, had attracted back to Germany a large financial stabilization depends essentially upon the portion of the available funds, but to an return of confidence. Without this the return of Geramount much less than the estimate. man capital invested abroad, the attraction of foreign capital for the purposes mentioned in the scheme and Manifestly the Reichsbank's reserves plus of foreign credits for the current conduct of business, such German-owned funds held abroad as might and even the proper collection of taxes, will alike be still be susceptible of conversion into gold were impossible. far too slight to support the credit struc- The part which foreign loans have played ture which German rehabilitation demanded. in building up the reserves of the Reichsbank, Quite aside from the additional reserves re- in supplying a broader basis for domestic quired against a growing currency, credit was credit, in providing funds for agricultural required for the uses of agriculture and to cover and industrial rehabilitation, and in replenishthe ordinary interchanges of commerce and ing stocks of foreign raw materials and goods, industry. Moreover, the readjustment to con- has already been described in previous reports. ditions of a stable currency was still incomplete It needs no further comment here than that 79290—28 3 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

30 FEDERAL RESERVE BULLETIN JANUARY, 1928 the progress already made could not have been October, 1927, wore above the total for the attained without them. full year 1925 and not far below the total for But the question at present is not what 1926. foreign funds have done in the past for the FOREIGN CAPITAL ISSUES benefit of Germany, but how far they can be usefully absorbed in the future and to what [In millions of reichsmarks] extent they might even prevent, if they continue to flow in their recent volume, the con- Jan. 1 1925 1926 to Oct. Total solidation of the advancement already made. 31,1927 This suggests an examination of specific consequences already observed and a discussion Loans of the States 138.6 270.6 267.3 676.5 Provincial or communal loans, 256.0 249.5 109.0 614.5 of the general function of foreign credit with Loans of public and semipublic unrespect to the German economy as a whole. dertakings: (a) Of the Reich 161.7 25.2 336.0 522.9 Volume of foreign loans.—There have been (b) Of the States and communes. 202.8 346.5 184.7 734.0 Loans of private enterprises 470.7 736. 5 523.5 1, 730. 7 only brief periods since 1924 when foreign Loans of various church organizations. 25.1 47.1 3.7 75.9 funds in volume have not been flowing toward Total 1,254. 9 1,675. 4 1,424. 2 4,354. 5 Germany. At times they have taken the form mainly of long-term loans, at others of short loans, often of both together. The first two The foregoing table does not take account months or thereabouts of 1927 covered one of of the German external loan, 1924, issued the few periods when foreign funds were not under the experts' plan in the nominal amount flowing in. This was the period, described in of 960 million gold marks, because its service, detail in the interim report, when under the in so far as the Reich is concerned, is included influence of a 5 per cent rate at the Reichs- in the reparation annuities. Without it, the bank and low rates in the domestic money total German capital issues sold abroad during market generally, money was being drawn away the three years have been in the nominal from Germany. Thereafter, in response to amount of about 4,400 million reichsmarks. high and rising money rates in Germany, the Since certain of the loans included in that inflow set in again, but at the outset in the total have already matured and been refunded form almost exclusively of short-term loans. or otherwise paid off, and because amortiza- The amount involved in this inflow can not be tion of other loans has made some progress, determined exactly, but up to the end of May the present obligation as estimated by the it was probably not less than 1,000 million statistical office stands at about 3,950 million reichsmarks, not including commercial and reichsmarks; and it has probably been reduced industrial credits. somewhat further by repurchases for German Long-term borrowing was unimportant from account. December until June. During that period, the Out of the nominal total, about 1,300 income-tax exemption which had formerly been millions represent direct loans to the States, granted in favor of the foreign lender remained Provinces, and communes, and about 1,250 in suspense. On June 3, 1927, however, the millions the loans to public and semipublic Finance Minister announced that he was pre- undertakings. The latter sum is in turn pared again to recommend tax exemption "if divisible into about 525 millions of loans to the loans are to be used for desirable economic undertakings which are related directly to the purposes and if their conditions correspond to Reich and 725 millions of loans to underthe conditions of the money market." The takings related to the States and communes. resumption of the practice of granting tax The borrowings of undertakings related to the exemption was immediately followed by re- Reich have included, for example, the loans newed negotations with foreign bankers and by to the Rentenbank Credit Institution for new offerings to the foreign public of German relending to agriculture, and the loan to the capital issues. These rapidly increased in United Industries Corporation, known as the volume until in the one month of October Viag, which the Reich owns. The loans to German capital issues were issued abroad in the undertakings related to the States and the nominal amount of about 525 millions. In communes provided funds to a great variety of consequence of the very heavy borrowing enterprises, including electric light and power during the summer and autumn, and notwith- plants, canal concerns, waterworks, industrial standing the slight borrowing during the first concerns, mortgage institutions, electric railfive months of the year, the total German ways, and concerns for the development and capital issues offered abroad up to the end of carrying on of agriculture. In each case Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

JANUARY, 1928 FEDERAL RESERVE BULLETIN 31 these enterprises have an intimate relation to as compared, for example, with the position the States, Provinces, and communes; fre- in the early summer. The proceeds of certain quently they are owned outright by individual long-term loans have been used expressly for States or communes, sometimes jointly owned the purpose of retiring short debt, and favorby several, and in one or two cases their stock, able rates of exchange may have induced some while in majority owned by public bodies, is further repayment of short loans. But foreign in part privately owned. In many instances bankers continue to offer short money at the issues bear the unconditional guarantee favorable rates of interest, and when German of a State or commune, and often the borrower bankers refuse these offers it is evidence of is not distinguishable except in name from an self-restraint on their part rather than the operating department of the State or commune result of conditions in the local market which to which it belongs. make transactions of that sort unprofitable These various foreign loans—that is, the Short-dated debt owing by the communes U direct loans of the States, Provinces, and foreign lenders, either directly or through the communes and the loans of the enterprises medium of German banks, remains a pressing related to them—have now reached a nominal and difficult problem. The amount is indefiamount in round figures of 2,000 million nite but is at present the subject of inquiry reichsmarks. In the memorandum of October at the instance of the Reich. 20, 1927, to the German Government figures Effects of foreign Joans.—The whole Gerof an earlier date were used, in the amount of man economy has been under the influence 1,600 million reichsmarks. In his reply, the of inflowing foreign credit and in some respects Finance Minister, limiting his observations to has been dominated by it. To attempt at only such loans as had been dealt with by the this point to trace its effects over the entire advisory office, stated that this total was too field of German economic activity would burhigh, and that it included loans made to the den unduly this section of the report. Con- Rentenbank Credit Institution for relending sequently it is intended here merely to outline to agriculture. This statement apparently the bearing which foreign loans have had upon results from some misunderstanding of the the development of German business conditions figures. The total given in the memorandum, in general and upon foreign trade, both of now increased by 400 millions, did not in which are treated in detail in subsequent fact include the Rentenbank loans, but it took chapters. In addition a somewhat more deinto account loans to various enterprises tailed discussion is given of the effects of these related to the States and communes which the loans upon the foreign exchanges and upon advisory office for one reason or another did stock-market speculation. not review. It is noteworthy that in total The development of business conditions in the loans of this category have somewhat Germany during the last year has been entirely exceeded the loans to private industry. The characteristic of a period when large supplies importance of these loans from the standpoint of fresh funds become available for production of State and communal administration has and consumption. Many of the changes manialready been dealt with in the chapter on the fested were in the direction of relief from budget; their relation to the general credit conditions which had been seriously adverse. situation will be discussed below. For example, severe and wide-spread unem- In addition to the external capital issues of ployment decreased until by October, 1927, about 4,400 millions nominal amount, there more persons were gainfully employed in Geris a large volume of short loans, the amount many than at any previous time. The number of which can only be estimated. These com- of commercial failures and the amount of disprise foreign deposits in German banks, loans honored bills also much diminished. The to bankers for stock-market purposes, bankers' physical volume of production in the basic loans to States and communes, industrial and industries, which was already high in the commercial credits, and so on. The Reich latter half of 1926, has been running well above Minister of Economics, in the course of a the average for that year, and less precise hearing before the budget committee of the reports from the finishing industries point in Reichstag, estimated the short-term credits the same direction. Building activity, railway as at the end of October at 3,600 millions traffic and domestic trade at both wholesale gross amount—that is, without deducting and retail have shown on the whole a similar short credits owing to Germans from abroad. advancement. The larger volume of goods The amount of German short-term debt does produced has in general passed into connot appear to have increased appreciably sumption, and only within recent weeks have Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

32 FEDERAL RESERVE BULLETIN JANUARY, 1928 reports appeared that stocks of goods ready sen) or in securities or in goods, but it is, of for consumption were accumulating. The course, not to be assumed that the making of larger volume of goods consumed is explained a loan necessarily precedes the import of goods. on the score of wide employment and higher In Germany the process has been more comwages. But the price index for consumers' plex, in that foreign loans have often been used goods at wholesale rose about 18 points from as the basis for domestic credit, which in turn February to October, and now stands at almost has stimulated domestic production and conthe same level as when the arduous process sumption, calling for further goods from of rationalization was begun. These develop- abroad and further loans. The foreign trade ments are described individually in a later deficit, viewed both as cause and as effect, is chapter. To attribute all of these changes intimately bound up with foreign borrowing, to the single fact of foreign borrowing- would and each is a part of the same problem. The be a misapprehension, for they were in reality narrowing of one is apt to be associated sooner the result of a complicated set of forces. But or latter with the narrowing of the other. the stimulating effect of new funds, in this For somewhat more than a year the quotaa€ se derived largely from abroad, is to be seen tions of the reichsmark in the foreign exchanges in all of them, whether favorable or the reverse; have moved more or less freely in response to and the signs of expansion which are visible supply and demand. On August 23, 1926, the are largely the reflection of incoming foreign Reichsbank released the reichsmark from its credit. technical adherence to the dollar, and since The growth of German business activity then quotations have varied both upward and briefly indicated above has brought with it downward from the rate of 4.20 reichsmarks some growth in export trade, but up to the to the dollar at which it was previously mainpresent time exports still remain far below tained. The dominating influence at all times imports. In the interim report of this year it has been the international flow of funds; interwas said: national movements of goods or changes in the relative levels of commodity prices from one It is only natural that the first benefits of so sweeping international market to another have been of a process of reconstruction should be visible in a distinctly secondary importance. strengthening of conditions at home, and in a revival of internal consumption and trade. But the real test During the first half of 1927, the reichsmark, of the value of the readjustment depends upon a fur- for reasons which were explained at length in ther question, as to the power of German commerce the interim report, was at a discount in terms and industry to compete again with the rest of the world. If what has thus far been done results only in of the other principal gold currencies, and quickening the pace and enlarging the volume of within a period of five months the Reichsbank domestic business, the readjustment may be regarded was called upon to supply the market with the as still incomplete and its present advantages as only equivalent of about 1,000 million reichsmarks transitory. It might even lead to over-development internally with possibilities of new difficulties in the from its stock of gold and devisen. During future. But if better domestic markets and the larger that period the demands upon the Reichsbank production therein implied bring more active foreign diminished as foreign funds for use at short trade both ways, export as well as import, then it will term were attracted to the German market, be clear that German industry has reestablished itself on a competitive basis and the process of read- and when in July the proceeds of long-term justment may be regarded as having been successfully loans began again to be available, the value of completed. the reichsmark in the foreign exchanges Since July, it is true, the value of exports abruptly increased. As far as the dollar was has shown an encouraging rise, but the foreign concerned, this strengthening of the reichsmark trade deficit for the twelve months ended received an additional impulse from the re- October 31, 1927, amounted none-the-less to duction of discount rates at the Federal reserve about 3,600 million reichsmarks. While it is banks early in August, which stimulated further rto be assumed that some part of the imported the outflow of American funds to Europe. raw materials which contributed to the making With respect to sterling, the strength of the of this deficit will flow out again in the form of reichsmark has been less pronounced, thereby finished goods, the very size of the import reflecting the rise of sterling in terms of the ibalance gives some indication of the strength dollar. But nevertheless, the reichsmark durt)f the demands of internal consumption. ing most of the autumn has been above par In paying for the excess of imports, Germany with sterling, and on the whole has been one relied mainly on loans and credits from abroad. of the strongest gold currencies in the world. It is axiomatic that a borrowing country im- The influence on the exchanges of the inports the proceeds of its loans in gold (or devi- coming funds was magnified by the policy of Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

JANUARY, 1928 FEDERAL RESERVE BULLETIN 33 the Reichsbank, which declined during this the market has now much diminished, but the period as a matter of principle to buy the speculative profits which have now been withdollars or other foreign currencies derived drawn represent an all but total loss to the from State or communal loans. The affects German economy. of this policy upon the Reichsbank itself will The rise in stock prices anticipated the rebe described in a later section of this chapter vival of German industry and under stress of but it may be observed at this point that the speculative activity, supported by ample funds, abruptness of the fall of the dollar in terms of unduly discounted it. At the end of 1926, the reichsmarks was largely due to the fact that average return on stocks listed on the Berlin the States and communes, in realizing in Ger- Bourse, taking into account the dividend rates man currency on the proceeds of their foreign and the current market prices, was about V/i loans, had to offer them on the market for per cent; at the end of April, after allowing for what they would bring. The decline of the the intervening rise in prices and advances in dollar, while it did not reach the point at which dividends, the average return was still 33^; it would be profitable to buy gold in New and by the end of October, when a decline in York and bring it to Germany, did approach stock prices had been going on for almost six the point at which it would pay to convert months, the average return was less than 4^. dollars into sterling, buy gold in London and The precipitating cause of the decline was the bring the gold to Germany. That no such decision of the Berlin Bankers' Association, transactions took place in any substantial taken on May 12, 1927, to restrict the funds sums w^as owing mainly to the fact that on loanable for stock market purposes. Their October 18 the Reichsbank lowered its buy- action was offset to some extent by foreign ing rate for gold from the statutory mint lenders who furnished funds directly to brokerequivalent of 2,790 reichsmarks per kilo of age houses, but the decline nevertheless has fine gold to 2,784 reichsmarks, the lowest proceeded with occasional periods of recovery point at which it is legally qualified to buy up to the present. gold. This reduction took place on the day Movements of bond prices, in which the before the dollar reached 4.183, the lowest speculative factor has been relatively absent, point at which it had been quoted up to that did not rise so far as stock prices and have time since stabilization. Early in November, fallen less. At their highest point, the rate of after it became manifest that foreign borrow- return was still above 7 per cent and at the ing by the States and communes would be end of October was at about 7,V£. To some for a time interrupted, the reichsmark lost some extent the high yield on bonds is due to the of the strength it had gained. This loss, attitude of the investor whose experience during however, was only temporary; in the last the inflation with fixed-term securities was half of November the strength of the reichs- disastrous. But more fundamentally it illusmark has proved to be more sustained than at trates the scarcity of investment capital which any previous time. This is to be explained, still obtains in Germany, and by contrast with apparently, both on the ground that foreign the movements on the stock market it shows funds are being borrowed at short term and the degree to which foreign and domestic funds that Germans are finding it necessary to bring have been attracted to speculation rather than back funds formerly placed abroad, including investment. some funds which had been invested in foreign Measures of control over foreign borrowsecurities. ing.—No steps have been taken by the public The long rise in share prices on German authorities or the Reichsbank to control the stock exchanges which began at the close of access of German private industry and com- 1925 and continued until May, 1927, was merce to foreign money markets, unless the closely related to the inflow of foreign funds, occasional suspension of the tax exemption though not fully explained by it. The direct privilege is to be taken in this sense. Genparticipation of foreign money in the stock erally speaking, it may be assumed with markets, aside from loans to banks and brokers, industry and trade that the ordinary safeincluded the purchase of shares by foreigners guards against overspending and overboron speculative or investment account. In rowing will prevail, and that private entersome cases foreign syndicates were formed for prise will not borrow unless it sees its way the purpose of buying interests in German clear to profit by fresh funds or unless it is industries, but for the most part they confined driven to it by necessity; and in such cases, themselves to buying and selling shares on the it may be expected that the lender on his side stock market. The foreign participation in will form his own judgments and act accord- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

34 FEDERAL RESERVE BULLETIN JANUARY, 1928 ingly. These considerations furnish a natural for State and communal borrowings that have already check on the borrowings of private industry been given. and commerce, and may be relied upon to From the very beginning the efforts to proprovide their own penalties quickly enough in vide a supervisory procedure have presented a cases of unsound or excessive borrowing. vexed problem full of complications. Imme- With respect to the States and communes diately after the experts' plan went into effect and the public enterprises the position has it was seen that the States and communes been different. Here varying factors entered would be in the market for numerous loans, into the considerations of a loan: Matters of and that the revival of confidence in German prestige of one city against another; questions credit would make funds freely available from of social or political advantage; needs for abroad. On November 1, 1924, the president extension of transportation, lighting and water- of the Reich issued a decree, terminable in works facilities neglected during the war; three months, making it necessary for the demands for housing, agricultural develop- States and communes to obtain the approval ment and so on. The productive activities of the Reich Finance Minister for loans made of State and city administrations in Germany abroad. Against this the States vigorously often led them to borrow for extensions and protested on the ground that it encroached improvements. The proceeds of such loans upon their constitutional rights. Accordingly might easily release for unproductive and a compromise arrangement was devised wherenonessential expenditures revenues which in by the consent of the Reich was not to be the absence of borrowing would normally required for loans to the States or for loans to have been devoted, in part at least, to pro- such communes as were already subject to ductive purposes. The foreign bankers on controlling authorities. On this basis, the their part have been mainly interested in the Finance Minister's approval would be needed amount of bonded debt already outstanding only for those communes whose foreign borrowand in the sufficiency of the revenues to meet ing was not under the control of a State. These the service of the loans. Owing to inflation, principles were incorporated in another decree State and city debts in Germany, even after dated January 29, 1925, and were also put in revalorization, remain relatively low, and the the form of law under date of March 21, 1925. general taxing power can be relied upon for But by common consent changes had already the service of their securities. Thus, most been made in the control procedure which of the ordinary restraints upon private bor- went considerably beyond the prescriptions of rowing have been lacking in the case of the the law. States and communes, not only as regards the At the center of the control procedure is the borrower but with the lender as well. so-called Beratungsstelle or advisory office. It The memorandum of October 20, 1927, for is composed of representatives of the Reich the German Government emphasized the Finance Ministry, the Reich Ministry of Ecogeneral importance of taking effective measures nomics, and the Reichsbank; two representato supervise the borrowings of the States and tives of the States, in the persons of the communes. It recognized, of course, that the presidents of the Prussian State Bank and the Reich does not control the States and com- Bavarian State Bank; and a representative of munes in these matters. But it pointed out— the State asking its advice. Its deliberations are held in private and no publicity is permitted when the States and communes go into foreign markets to minority opinions. Its findings were not to finance their budgetary expenditures and internal improvements, they raise fundamental questions of made binding in the beginning, nor have the foreig;n policy which have the most direct interest for successive changes in the procedure made them the Reich. And under the Constitution itself the so; but in practice they have been generally Reich has a unique opportunity and even responsiobserved. bility for leadership, not merely because of its large transfers of revenue to the States and communes but It is impossible to summarize within reasonalso because of its powers to prescribe the fundamental able compass the classes of loans which the principles and main outlines of their laws in many regulations require shall be brought before the matters of taxation and public finance. The force of Beratungsstelle for its opinion. There are these considerations has been recognized to some extent in the efforts that have been made for the past numerous exceptions and qualifications which two years and more to supervise the foreign borrowings are not susceptible of general statement. But of the States and communes through an advisory the Finance Minister's answering memorandum organization established for this special purpose. of November 5, 1927, gave figures recapitu- These efforts, for whatever reason, have not been successful, and the results appear in the swollen figures lating the Beratungsstelle's activities from Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

JANUARY, 1928 FEDERAL RESERVE BULLETIN 35 January 1, 1925, to September 30, 1927, as restricting imports. The Beratungsstelle also follows: reports that it has been at some pains to make sure that the prospective borrowers had no BERATUNGSSTELLE ACTION ON FOREIGN LOANS funds otherwise available or procurable to carry out the purposes which foreign loans [In millions of reichsmarks] were intended to serve. In applying the principles laid down in the Applica- R m e e c n o d m a- - regulations, the decision in each case has tions tions usually depended on how the facts were to be interpreted. The pressure on the Beratungs- Communal loans 1,076. 8 585.0 State loans 605.9 550.5 stelle, moreover, has been almost wholly in Agricultural loans (Rentenbank-Kreditanstalt)... 241.0 241.0 the direction of liberality, either from the Industrial loans (with State or communal guarantee) 262.0 253.6 interested States and communes, fully repre- Total 2,185. 7 1,630.1 sented on the Beratungsstelle itself, or from the interested representatives of foreign bankers. The Reichsbank under the law is charged The foregoing table shows that the principal with responsibility for regulating the circularevisory action taken by the Beratungsstelle tion of money and for providing for the utili has been in the case of communal loans. The zation of available capital, and as such has a applications of the Rentenbank Credit Insti- primary obligation to see that the influx of tution have been allowed in full, while State foreign loans does not run counter to the loans and industrial loans guaranteed by the interests of the currency. The Reichsbank's States and communes have been only slightly opinion from the beginning has been critical reduced. Aside from these guaranteed indus- of foreign borrowing, certainly in the proportrial loans, there have been numerous loans to tions which it has assumed; but what weight, enterprises intimately associated with the if any, its opinion has had on the Beratungs- States and communes which, for one reason or stelle is not a matter of public record. another, have not been brought before the Toward the end of October a further re- Beratungsstelle at all, amounting in round vision of the regulations governing the action figures to nearly 500 million reichsmarks. of the Beratungsstelle was undertaken, partly According to its owoi summary of its activfor the purpose of bringing currency consideraties, published in January, 1927, the Berations more actively into the foreground. The tungsstelle in considering loans takes into new regulations, it is understood, have received account, among other things, whether the terms the assent of the States, but up to this time the offered by the bankers are satisfactory, whether Beratungsstelle has given no interpretation of the proceeds of a loan are to be used for pro- them. From the published reports, it appears ductive purposes, and— that the definition of the tests to be applied whether the total amount of foreign loans approved or has undergone no change of any importance, the number of applications submitted has reached a but as a matter of procedure the new regulafigure which, in the interests of the currency or of the tions provide that if one of the representatives loan terms which it is desirable to obtain, should not sitting on the Beratungsstelle objects to the in the meantime be exceeded. opinion of the majority, he may demand a In practice, it does not appear what weight, rehearing, and in that case the Reich Finance if any, has been given to the interests of the Minister, the Reich Economics Minister and currency in the votes taken by the Beratungsthe president of the Reichsbank will replace stelle; the question of productivity, however, their representatives on the board and sit in has been much emphasized. The term " productivity77 has been defined by the Beratungs- person. For the time being, it appears, the Berastelle as meaning— tungsstelle has discontinued its sessions. It that foreign loans must be employed for such profit- was clear from the volume of loan applications earning investments as by the direct production of the still pending in October, even after the heavy values guarantee out of their own income the interest borrowing of that month, that it was essential and sinking-fund payments on the capital invested, without having recourse to the general income of a to obtain a comprehensive survey of the public body. requirements of the States and communes, In general, loans for the construction of particularly of their short-dated debts and dwelling houses have not been regarded as their uncovered commitments for projects productive, particularly, it appears, because already under way. Questionnaires have acthey do not result in promoting exports or cordingly been circulated to all the larger Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

36 FEDERAL RESERVE BULLETIN JANUARY, 1928 communes asking for detailed information, but " Subject to such exceptions as the Reparation it will still be some weeks before the results are Commission may approve, a first charge upon all the assets and revenues of the German Empire and its available. This deliberate action has resulted constituent States shall be the cost of reparation and for the time being in a cessation of foreign all other costs arising under the present treaty or borrowing, and it may be that further modi- any treaties or agreements supplementary thereto or fications of the supervisory procedure are in under arrangements concluded between Germany and the Allied and Associated Powers during the armistice prospect. or its extensions." Relation to reparation payments.—The posi- Up to the end of 1926 ten loans of States had tion of the transfer committee and of the Agent been sold in foreign markets, including four General for Reparation Payments has been loans of German cities which have the standing entirely clear at all times. It may be worth of States. In none of these cases was any restating in order to avoid any possibility of application made to the Reparation Commismisunderstanding. sion for an exception under the treaty provi- The German external loan, 1924, is in a class sions, and no such application has been made by itself. This loan was issued pursuant to in connection with any of the five loans placed the terms of the experts' plan and the London in 1927. In only one case, that of the Prussian agreements, and the funds for the service of loan of September, 1926, has the German the loan are provided out of the annuities Government brought a loan formally to the payable by Germany under the plan. The attention of the Reparation Commission or the Reparation Commission, by its decisions of transfer committee, and then on the ground October 13, 1924, made the service of this loan that it was complying with assurances, given a first charge on all receipts under the plan, a first charge by way of collateral security on the year before, that it would notify the transfer the controlled revenues, and a first charge on committee simultaneously with the Reparation any other assets or revenues of Germany to Commission of any impending foreign paywhich the powers of the commission extend ments. The Agent General for Reparation under the treaty of Versailles. The German Payments in replying to this notification under Government in addition recognized the service date of September 20, 1926, called attention of the loan as a direct and unconditional obli- to the fact that the loan prospectus made only gation of the Reich, chargeable on all its assets a partial quotation of article 248 of the treaty, and revenues. The transfer committee, on and said: October 31, 1924, took appropriate action In response to their informal inquiries, which were for insuring the service of the loan, recogniz- first made some months ago, I have consistently ading its priority and giving it an absolute right vised both the Finance Ministry of the Reich and the issuing bankers that in the absence of an express of remittance irrespective of the effect upon exception by the Reparation Commission an external the exchange. The German Government, the loan of the State of Prussia must be regarded as ranking agent general for reparation payments, the secondary to the repayment of reparations under the commissioner for the German railways, the treaty of Versailles as well as under the experts' plan. I have stated, further, that the procedure to be foltrustee for the German railway bonds, and lowed, in case such an exception were desired, has the trustee for the German industrial deben- already been indicated by the procedure actually tures, all took note of the action of the Repa- followed in connection with the German external loan, ration Commission and the transfer committee 1924. To that loan the Reparation Commission granted a priority over the payment of reparations, and gave assurance of their cooperation to the and the transfer committee, by appropriate resolution, same end. recognized that priority as against the transfer of There have been no other external loans of reparation payments. Neither the Government of the Reich, nor the Prussian Government, nor the issuing the Reich since the German external loan, 1924, bankers, so far as the transfer committee is advised, so that no question has arisen in the meantime have made any application for an exception to article as to any loan of the Reich. But there have 248 in connection with the external loan of the State of Prussia, and the transfer committee understands, been numerous external loans of the German therefore, that the secondary character of the Prussian Federal States within the past three years. loan is recognized. As to these loans of the States, it has already been pointed out, in the report of November In the same letter, in commenting upon a 30, 1926, that: statement which appeared in the prospectus over the name of the Prussian Finance Minister The provisions of article 248 of the treaty of Ver- to the effect that— sailles, which affect foreign loans of the States as well as those of the Reich, appear to have exercised less Neither German law nor any international engagements restraining influence than their terms would pre- assumed by the German Government involve any suppose. The treaty says: restrictions upon the acquisition by the free State of Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

JANUARY, 1928 FEDERAL RESERVE BULLETIN 37 Prussia of the foreign exchange requisite to meet the dence exists between lender and borrower, and external obligations to be evidenced by these bonds— as long as natural forces continue to have free the Agent General said: play, the international flow of funds tends to equalize differences in the credit supply from The transfer committee finds itself unable to accept this statement, and feels that in the absence of an one country to another. Since the war these express exception under article 248 of the treaty of differences have been extraordinarily wide; in Versailles this statement can not properly be made, certain countries, as, for example, in the United when any loan of the Reich or any of the Federal States, the supply of credit on the whole has States is concerned, unless qualified by reference to the priority of reparation payments and transfers. In been ample, whereas in other countries, as, for view of the secondary character of the external loan of example, in Germany, the supply of credit has the State of Prussia, as regards both reparation paybeen deficient. Under such conditions, particments and reparation transfers, and in view also of the relatively large share of the annual budget of the ularly as confidence in the goodness of loans State of Prussia which is financed by transfers of to Germany has remained high, it was to be revenue from the German Reich, the transfer com- assumed that Germany should become a large mittee considers that the service of the Prussian exterborrower from the United States and from nal loan must necessarily be regarded as secondary to the obligations in respect to the transfer of reparation European countries having funds to lend. payments which the German Government has assumed Prevailing interest rates furnish a fair measby virtue of the experts* plan and the London agree- ure of the supply of available credit, and if in ments. one country they are far out of line with the Wherever the question has arisen, in other rates in another, they provide the stimulus for words, the transfer committee and the Agent one country to lend and the other to borrow. In General for Reparation Payments have made recent years the international movement of full reservations of the legal rights of the funds which follows disparity in interest rates creditor powers under the treaty of Versailles has exerted a dominating influence over the and the experts' plan. This, indeed, was their German foreign exchange, and has been of far manifest duty. greater importance in that respect than the The plan did not give to the transfer com- fluctuations in the volume of Germany's exports mittee or the Agent General for Reparation and imports of goods. Payments any power to supervise or control Generally speaking, the value of the dollar the issue of foreign loans of the German Reich, in terms of reichsmarks has risen whenever the the States or the communes, or of German private discount rate in Berlin has declined companies or other undertakings, and except toward the bill rate in New York; and, on the in the case of the German external loan, 1924, other hand, the value of the dollar in terms of the funds for the service of these loans, when- reichsmarks has fallen whenever the private ever issues, do not pass through the hands of discount rate in Berlin has risen far above the the transfer committee or the Agent General. bill rate in New York. Though these interest With the one exception, therefore, of the Ger- rates are not strictly comparable, they relate man external loan, 1924, the transfer committee to highly liquid paper demanding favored rates and the Agent General for Reparation Pay- in both markets, and in each case their variaments have always stated, in answer to in- tions are fairly symptomatic of market condiquiries, that they were not in a position to give tions as a whole. any assurances whatever as to the service of As the foreign exchange rate itself indicates, any of these loans that might be floated abroad. this disparity of interest rates has exerted a The general powers of the transfer committee powerful influence in drawing foreign funds and the Agent General with respect to the to the German market. The import of credit transfer of reparation payments and the Ger- is temporarily the equivalent of an import of man exchange are matters of public record, in gold, upon which a further structure of dothe treaty and the plan. In substance, there- mestic credit is erected. In fact, one of the fore, the position is that bankers and investors deceptive aspects of the import of credit is have been left free to make up their own minds that it provides the lawful basis upon which as to the investment merits of foreign loans further internal credit expansion can be carissued by German public authorities or private ried out. In a country adhering to the gold undertakings, in much the same manner as standard, domestic credit expansion based would be done with any other investments. upon domestic resources comes to a natural General observations.—In its broadest sense end when the limit of the note-issuing power German foreign borrowing has been and con- is reached. But foreign credit is capable of tinues to be a phase in the redistribution of constantly enlarging the basis of domestic credit throughout the world. As long as conn- credit, and the limit is not reached until the 79290—28 4 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

38 FEDERAL RESERVE BULLETIN JANUARY, 1928 foreigner declines to lend or the borrower ment of the Reich " recognizes it to be its declines to take. duty to bring this difficult problem to an early The management of foreign credit, in its solution which will take into account the wellvolume and in the rate at which it flows in, is a understood reconstruction and entire interests matter of first importance, surpassing even the of Germany." management of Reichsbank credit in the Domestic credit.—Ever since the early part effects it may have on German economy. of 1927, dating approximately from the issue of Throughout the period since the experts7 the internal loan of the Reich, the domestic plan went into effect, German borrowers have market has shown a much reduced capacity to had constant access to foreign credit in one absorb new capital issues; industry and comform or another and have thus been able to merce have had to rely mainly on foreign loans exempt themselves in large degree from such or upon bank credit to supply the funds which measures of credit control as the Reichsbank their rising activity required. In consequence, administration thought it timely to undertake. a very large increase has taken place in bank A high discount rate at the Reichsbank, aimed credit, which has been reflected in increased at the restriction of credit expansion, has demands upon the Reichsbank and in higher usually furnished all the greater attraction to rates for money. While internal savings have foreign funds and to this extent has defeated made some further progress, the monthly initself. A low discount rate, such as that during creases reported recently by the savings offices the first five months of 1927, resulted at the have been running somewhat smaller than last outset in a withdrawal of funds from Germany year, as is not unusual in times of growing but it also stimulated the use of Reichsbank economic activity. credit; as soon as the bulk of existing paper Reichsbank policy.—The central problem of eligible for rediscount at the Reichsbank had Reichsbank policy has been to reestablish conpassed into its portfolio, foreign funds flowed tact between its discount rate and the money in again in response to rising interest rates, market. The inflow of foreign funds, for reasand carried the expansion still further. ons already explained, has often displaced the The bank law and banking practice surround Reichsbank from its normal position as the the use of Reichsbank credit with many re- elastic medium between credit supply and strictions and safeguards. Yet the manage- credit demand, and has frequently contributed ment of foreign credit, which since stabiliza- toward making its rate ineffective. For at tion has exercised an influence on German least a year and a half, except for a period of economy certainly equal to that of Reichs- about six weeks at the beginning of 1927, the bank credit, has been subject to rules, in so Reichsbank rate has been out of touch with far as they apply at all, which have almost com- the market; and only recently, that is, since pletely overlooked the broad bearing of foreign about the middle of October, have indications loans on currency and credit in general. The developed that contact has again been ten- Beratungstelle, the work of which has already tatively established. been described, appears to have engaged It will be recalled that in the summer and itself principally with the nominal productivity autumn of 1926 money rates in Germany were of State and communal loans. Certainly a low, whereas during the entire period the loan should be productive, but under the con- Reichsbank discount rate remained at 6 per ditions which have prevailed the question of cent. On January 11, 1927, the Reichsbank productivity is distinctly secondary to the reduced its rate to 5 per cent, thereby recogeffects which borrowing is bound to have on the nizing existing market conditions and bringing economy as a whole. Nor does the argument itself more nearly into relation with them. As that "the amount of foreign indebtedness is was described at length in the previous report, not disturbing in view of the magnitude of the this action had the result of stimulating the values given as security " have any bearing on flow of funds away from Germany and ultithe fundamental queston as to whether foreign mately of increasing with great rapidity the money has been entering Germany in an demands for Reichsbank credit. Within six amount and at a speed leading to undue weeks or thereabouts from the time the Reichsexpansion. bank rate was reduced, domestic money rates The answering memorandum of the Finance were again rising and were again attracting Minister, dated November 5, 1927, while it foreign funds, in this case almost exclusively referred to numerous obstacles in the way of at short term, to the German market. The setting up a direct control over the finances of Reichsbank, however, did not raise its discount the States and communes, said that the govern- rate to 6 per cent until June 10, 1927, mainly Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

JANUARY, 1928 FEDERAL RESERVE BULLETIN 39 on the ground that if it had acted sooner the the day's excess in the market. This policy inflow of foreign funds would have been all had much to do with the abrupt rise in the the greater. In the interval the Reichsbank international value of the reichsmark which rate was the lowest representative money rate took place in July and again in October. The in Germany. policy does not appear to have had any effect At the beginning of the summer, the Reichs- in deterring the States and communes from bank found itself with a large portfolio of do- borrowing abroad, notwithstanding the fact mestic bills which the higher discount rate did that it may have reduced appreciably the not reduce but only temporarily kept in check. reichsmark proceeds of the loans. On the By early autumn further increases in interest other hand, the refusal of the Reichsbank to rates put additional pressure on the Reichsbank, buy these foreign funds even at a favorable and on September 30 the Reichsbank's loans price can hardly have failed to stimulate the and discounts, together with the amount of import of goods. An effect perhaps even currency in circulation, stood at the highest more important, and bearing on the position point since stabilization. The Reichsbank ac- of the Reichsbank itself, was that it accounted cordingly on October 4 raised its discount rate in some degree for the expansion of the Reichsfrom 6 to 7 per cent and its rate on collateral bank's portfolio of domestic bills. This arose loans from 7 to 8 per cent. from the fact that borrowers who desired to The situation which the increase in rates use the proceeds of their foreign loans in thus recognized dated back to the previous reichsmarks—and the States and communes spring, when the Reichsbank lost control of belonged peculiarly to this category—were the market. Whether the 7 per cent discount obliged to sell the proceeds in the market, rate, which still remains in force, will prove which in turn had to look to the Reichsbank in the long run sufficient to reestablish control, for the additional currency required, using can not be foretold. Up to the present, neither domestic bills for the purpose when necessary. the Reichshank's portfolio nor the total cur- In the late autumn the Reichsbank modified rency in circulation has risen to the level of its policy to the extent of purchasing the last September, but in part at least these proceeds of a loan issued for agricultural moderations are characteristic of the season. purposes, and saw to it that the domestic Mone}^ rates have also fallen slightly in the portfolio was relieved correspondingly. The market, but the standard borrowing rate at working of these forces is illustrated by a the principal banks, which varies according diagram. to changes in the Reichsbank rate, still stands The reserves shown on the diagram are at 10 per cent. confined to the two items of the Reichsbank In the five months ended May 31, 1927, statement covering gold and eligible devisen, the Reichsbank's stock of gold and devisen and leave out of account such devisen as are decreased about 1,000 million reichsmarks, not reported. The fluctuations since May of which about 450 millions had been reported are accounted for mostly by the changes as part of the reserve against bank notes. This which have taken place in the holdings of decrease has been only partially replaced. On eligible devisen; the gold stock has increased November 30, 1927, the total reported reserves only 41 millions, the result mainly of imports of gold and devisen stood at 2,139 millions, from Russia. The line on the diagram repan increase since May of about 250 millions. resenting loans and discounts combines the In addition, the Reichsbank's stock of devisen two statement items reporting bills and checks not included among the reserves has risen by and collateral loans. These are the principal an unstated amount. Altogether, it appears fluctuating elements of the loan classification* that the increase since May has been somewhat The administration of the public junds.—The less than half the decrease during the pre- administration of the public and quasi-public ceding five months. funds has placed serious obstacles in the way of The slow increase in the reserves during a a consistent Reichsbank policy and has freperiod when foreign funds were flowing freely quently proved a disturbing element in credit toward Germany calls for special comment. conditions as a whole. The successive phases It has already been observed in the section of the problem have been discussed at length dealing with foreign exchange that the Reichs- in previous reports. bank, as a matter of principle, declined to buy The amount of idle treasury funds at the the proceeds of loans placed abroad by the States disposal of the Reich, the States, and communes and communes and confined itself to buying is now much reduced, and their practical such odd amounts of exchange as represented influence over the money markets has dimin- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

40 FEDERAL RESERVE BULLETIN JANUARY, 1928 ished correspondingly. In so far as the public and the public, and were due to expire on the authorities in charge of administrative funds 15th of August. are concerned, the main point of difference Shortly before this date, the Finance Minibetween their financial policy and the credit ster of the Reich took the unusual step of policy of the Reichsbank has largely shifted increasing the interest rate to 6 per cent, for from a question of managing idle balances to a part of the life of the loan. The new rate was question of the use of credit. This latter made to apply as from August 1, 1927, and aspect of public financial practice has already continues in effect until July 31, 1934, the date been discussed in preceding sections of this when the first drawings of bonds are due to report. take place. The increase calls for the disburse- The German Government, in replying to ment on the part of the Reich of about 5 those passages of the memorandum of October million reichsmarks a year in additional inter- 20, 1927, which dealt with the question of est charges. In the market, the quotation for public funds and other matters of divergent the bonds rose to 87.5, and it has stood at policy, made the following statement: about that point ever since; but apparently further support from time to time has been The objections made against a credit policy of the public authorities having a credit policy distinct from required. the credit policy of the Reichsbank may be disposed of The Finance Minister of the Reich has by the statement that, in negotiations between the recently announced his intention of issuing no Reichsbank and the authorities in question, an agreement has now been reached which provides for common further long-term loans during the remainder leadership in relation to the money market and covers of the current year or even during the next important fields of investment of public funds. In financial year. This declaration should give those cases where agreement has not yet been reached, important relief to the long-term market. endeavors are being continued. The government of the Reich too if of the opinion that any thwarting by Under the bank law, it will be recalled, other administrations of the currency and credit policy the Reich is entitled to borrow at the Reichsfollowed by the Reichsbank must be avoided in the bank for administrative purposes up to the interests of the uniformity and effectiveness of Reichslimit of 100 million reichsmarks, but on the bank policy. As it has done hitherto, the government of the Reich will meet together with the Reichsbank at understanding that the Reich is not to be the briefest possible intervals with a view to keeping indebted to the bank at the end of any business the monetary and credit policy in harmony with year. Aside from the short credit facilities internal and external policy in general. thereby provided, an amendment of the bank This general declaration of policy is of the law, which became effective on July 14, 1926, highest importance. No information is avail- made treasury bills of the Reich eligible for reable as to the nature and extent of the cooper- discount or purchase by the Reichsbank when ation with the Reichsbank which may already brought to it from the market. Up to the have been arranged, but it is to be hoped that present, the Reich has offered no treasury the Government's declaration will have a bills to the market, and consequently the determining influence on the development of the authority granted by the amendment has public funds administration in the future. never been used. The German market is It will be recalled that the issue last Feb- notably deficient in this kind of security, which ruary of a long-term internal loan of the Reich of itself would help provide a medium for the in the nominal amount of 500 million reichs- investment of public funds arising from other marks revived for the time being the problem branches of the public administration. The of administering its temporarily idle funds. development of an adequate market for the Under the conditions prevailing since its issue highest type of short-term obligations is a this loan has had other consequences as well. matter of importance, furthermore, to the While it was nominally sold, its distribution to credit situation as a whole. the private investor proved to be very limited, The general changes in respect to public owing largely to the low rate of return from funds administration have already been noted. the 5 per cent coupon at the offering price of The diminution of the funds at the disposal 92. Notwithstanding efforts to support it, the of the authorities in charge of public and market price gradually declined below the offer- quasi-public enterprises should lead, in due ing price, until by the middle of August quota- course, to closer relations with the Reichsbank tions stood at 85.9. The later stages of the if for no other reason than that the Reichsbank decline were in anticipation of the lifting of the serves as a source of credit. Some special restrictions on the transferability of the bonds. problems, however, will require attention, as These restrictions were applicable to about for example, the handling of the funds accutwo-thirds of the 300 millions sold to the banks mulating under the new unemployment in- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

41 JANUARY, 192S FEDERAL RESERVE BULLETIN surance law. The arrangement, moreover, internal loan. The total was substantially between the Verkehrs-Kreditbank and the five times the amount of the bond issues of Gold Discount Bank for handling a portion private concerns, chiefly industrial enterprises. of the funds of the railway company, which The total issues of bonds based on mortgages was described in the interim report, is still on have amounted during the period to about a temporary basis, as is the Gold Discount 1,325 millions; these are almost exclusively the Bank itself. so-called Pfandbriefe, which are secured by The present position of the Verkehrs-Kredit- mortgages on real estate including agricultural bank, in relation to the finances of the land, and are sold from time to time and at railway company, has already been discussed varying prices according to the market. in an earlier chapter of this report. There is also the question of the Reichs-Kredit- BOND ISSUES ON THE GERMAN MARKET Gesellschaft, which is indirectly owned by the [Face value in millions of reichsmarks] Reich and operates as an ordinary banking institution in competition with the private Eeal estate banks. Its position has been summarized in credit instituprevious reports, and apparently remains P tions, Giroverbande unchanged. and related Volume of domestic credit.—Full use has been 6-g institutions made during the past year of such credit facilities as the internal market afforded, but these §3 ! facilities have varied widely from one branch a! of the credit market to another. For nine months the market for internal capital issues 1907-1913 quarterly average 293 29 197 100 620 has been very narrow, whereas the volume of 1925— First quarter 12 304 21 337 bank credit has continued to expand. The Second quarter 11 288 42 346 Third quarter 10 124 24 158 dislocation between these two sections of the Fourth quarter 5 124 26 187 1926—First quarter 40 290 9 436 credit market, which appeared in a fair way Second quarter 165 337 l 77 956 to disappear a year ago, reasserted itself when Third quarter 180 92 451 102 827 Fourth quarter 167 169 550 141 1,053 the long-term market was overtaxed in the 1927—First quarter 523 203 534 86 1,356 first quarter of 1927, and has continued ever T Se h c i o rd n d q q u u ar a t r e t r er 1 3 3 3 3 3 6 5 8 4 3 7 1 6 3 9 6 7 3 7 9 7 2 4 since. The open market for bills has scarcely October 66 74 existed except as the Reichsbank in its capacity as commissioner has been a buj^er for the di 1 s t I r n ib c u lu t d io in n g o f 4 0 w h m i i c l h li o o n v e r r e t i h c e h s v m a a ri r o k u s s o m f o th n e t h K s l i b s c n k o n t e k r n W ow e n rk . e A. G., the account of certain of the public offices. Issues of shares, as tabulated by the statis- The revival of the domestic market for captical office, have found a fair market; the ital issues, which for a time furnished one of the volume of offerings, while limited, has not most hopeful signs of German reconstruction, fluctuated in the same degree as in the case of began tentatively in February, 1926, reached bonds. its maximum about a year later, and then passed into a decline. The turning point was SHARE ISSUES the issue in February, 1927, of the internal loan [Price actually paid in millions of reichsmarks] of the Reich in the nominal amount of 500 million reichsmarks, but before that offering was 1925 1926 1927/ made numerous internal loans of the States and communes had drained off a large part of the S F e ir c s o t n q d u q a u rt a e r r t er ._ __• 2 1 1 4 9 2 1 9 2 9 0 3 4 7 3 9 2, funds available in the market. In the second Third quarter 151 305 248 Fourth quarter 149 374 i ioy and third quarters of 1927, the only issues of important size were offerings by mortgage Total 661 898 2 1,168 banks and other real estate credit institutions 1 October only. 310 months only. of bonds based on mortgages. The following table is made up from figures published by the The fundamental importance of increasing Reich statistical office. agricultural production, in order not only to The loans of the Reich, the States, and the reduce the amount of foodstuffs imported from communes, as reported by the statistical abroad but to improve the well-being of a office for the first nine months of 1927, large section of the German population, has amounted to approximately 1,000 millions, of led to vigorous efforts to supply new credit which half was accounted for by the Reich facilities for agriculture and to refund its short Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

42 FEDERAL RESERVE BULLETIN JANUARY, 1928 debt. Progress has been made during the last might be met. Even after the repayment of year in both directions. these bills, agriculture is under a continuing charge of 60 to 80 millions a year for the further AGRICULTURAL CREDIT retirement of Rentenbank notes. The total of 5,114 millions of agricultural [In millions of reichsmarks] credits listed in the table given above leaves out of account two important parts of the Dec. 31,June 30,Dec. 31,June 30,Oct. 31, 1925 1926 1926 1927 1927 existing agricultural debt. The Institut fur Kon junk turf orschung estimates in round fig- Mortgage credits 1,011 1,465 2,048 2,493 2,667 ures that at the end of 1926 there were 1,800 Intermediate credits 26 47 72 92 147 millions of additional floating debts, including Short-term credits 2,158 2,194 1,893 2,332 2,300 merchandise debts; by now this figure has Total . 3,195 3,706 4,013 4,917 5,114 presumably been somewhat reduced because of conversion or repayment. In addition, also, The foregoing table, made up from figures agriculture has revalorized remainder of its published by the Institut fur Konjunkturfor- old mortgage debt, which is estimated to have schung, shows that the principal changes during amounted before the war to around 13,000 the last two years have had to do with the millions. This debt has now been reduced to aggregate of mortgage credits, which has around 3,500 millions. steadily increased. In the last year the pro- Except as it receives support from the portion of mortgage credit to the total reported Reichsbank, through its purchases of bills for borrowings of agriculture has risen from 46 to the account of certain public offices, an open 52 per cent, owing less to long-term funds discount market in Germany can scarcely be raised on the domestic market than to funds said to exist at all. This is owing not only to borrowed abroad. The two loans of the a narrow demand but to a very limited supply Rentenbank Credit Institution issued in 1927 of prime bankers7 acceptances. The whole in the nominal amount of 336 million reichs- amount of bills circulating on the private dismarks were not fully available during the count market probably does not exceed 600 period covered by the table. million reichsmarks, and of that amount by Apparently the increase in the actual amount far the largest proportion is held by the Reichsof short-term credits since the end of 1926 is to bank as commissioner. The Reich has not be explained in part on the ground that heavy yet issued treasury bills and for the most part commercial credits given for the supply of the States and communes depend upon bank machinery, fertilizer, and other goods have credit for short-term requirements. found their way into the reported figures, New tendencies have been at work to restrict which also include the Reichsbank's holdings the supply of bills. Large industrial and comof bills covering the supply of goods to farmers. mercial concerns have formed the practice of On the other hand a substantial amount of keeping larger cash balances than in pre-war short credit not previously included in the times and are thereby enabled in a measure to statistics is stated to have been converted in finance themselves. The high rates carried in the interval into mortgage credits. the domestic market have resulted also in an Notwithstanding the efforts made, agricul- increased dependence upon foreign credit, and ture has still to face a serious problem in the in some branches of the exporting industries repayment of credits falling due in the near transactions are financed by the importer future. The relatively high prices at which either in his own country or in centers where the last crop was sold have been of some rates are favorable. Furthermore, as in some assistance, but there remains a certain volume other markets, a tendency has developed to of agricultural debts which for the time being rely upon bank credit rather than upon such are not liquid. On November 30, 1927, as credit as is available in the open market. will be seen from the section on the currency, The investor, for his part, has found little the Rentenbank was due to pay nearly 240 to attract him to the open discount market. millions into the retirement fund for Renten- Rates carried by bills in the so-called private bank notes, representing the remainder of the discount market often fall below but almost final installment of agricultural bills then never equal the Reichsbank discount rate, maturing. Agriculture was able to pay only a and have usually proved themselves lower than part of these maturing bills, and a substantial other rates for money. Collateral loans on amount had to be provided for by other means, the stock market, for example, frequently in order that the full requirements of the law carry rates V/^ to 2 per cent higher than bills. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

JANUARY, 1928 FEDERAL RESERVE BULLETIN 43 The main field of expansion, in so far as the past year, with the exception of a period in domestic credit is concerned, has been in credit May and June when the policy of restricting given by the banks. How much of this ex- stock market credits was instituted. The depansion has been in the nature of lending and cline during these two months was neutralized, relending deposits received from abroad can not from whatever cause, during the next bibe stated, because the periodical returns made monthly period, and then during September by the banks do not distinguish deposits so de- and October a further sharp rise brought the rived; but more or less casual estimates indi- total to a new maximum since stabilization. cate that the inflow of foreign deposits was The volume of credit reported by the six banks heavy during the first half of 1927. There- increased 1,350 million reichsmarks or 26 per after, particularly when the proceeds of capital cent during the year ended October 31, 1927. issues began again to come in, acceptance of Of this increase less than 100 millions was due deposits in foreign currencies became less gen- to the growth of the bill portfolio. eral, and among certain banks the policy was The "Glaubiger," which are composed mainly introduced of declining them altogether. In of time and demand deposits, have moved in some cases it appears that proceeds of foreign a course almost exactly parallel to that of loans have been used to repay foreign currency credits during the past three years. The deposits. increase for the year ended October 31, 1927, The following tabulation combines the prin- was 1,355 million reichsmarks or nearly 25 per cipal items from the returns of six private cent. The acceptance liabilities of the banks rebanks, which together represent about three- main low and have shown no increase during quarters of the nonpublic banking strength of the past six months, but they are 123 millions, Germany. The infrequency with which these or nearly 47 per cent, higher than a year ago. returns are published and the period of time The loans of the principal State and prowhich elapses between the date of the state- vincial banks have shown a somewhat larger ment and the date of publication take away relative expansion during the past year than much of the value to the German economy those of the private banks whose statements which these returns might otherwise have. were summarized above. The increase in Returns are published once in two months and, credits during the 12 months ending October except in the case of the December 31 state- 31, 1927, for 20 State and provincial banks, ment, become available one month after the including the Prussian State Bank, known as statement date; in the case of the December 31 the Seehandlung, was 480 million reichsmarks, statement it has proved to be impossible to or 28 per cent. This is in striking contrast assemble the annual reports from these six re- to the previous 12-month period during which porting banks until some three months after the credits of the State banks remained almost the end of the year. Steps are now under way at a standstill/ The "Glaubiger," or deposits to revise the make-up of the statements them- have shown a similar expansion for the year. selves; it would add much to their utility if they were produced frequently and promptly, TWENTY STATE AND PROVINCIAL. BANKS, INCLUDING for in that case they would furnish a guide to SEEHANDLUNG the credit situation which the Germany [In millions of reichsmarks] economy now lacks. Oct. Apr. June Aug. Oct. 31,1926 30,1927 30,1927 31,1927 31,1927 Six PRIVATE BANKS I [In millions of reichsmarks] Cash and amounts due from banks and bankers _. 370 253 234 324 300 Bills and treasury notes 380 491 474 428 410 Jan. 1, Oct. 31,'Dec. 31,iJune 30, Oct. 31, Loans and advances I 1,346 1,481 1, 617 1,652 1,796 1924 1926 1926 1927 1927 "Glaubiger"—mainly time | and demand deposits I 2, 058 2,247 2,319 2,421 2,521 Cash and amounts due from ! banks and bankers ! 565 912 | 1,048 1,061 1,137 The rate of expansion in the credits of the Bills and treasury notes j 42 1,413 j 1,556 1,373 1, 509 Loans and ad vanccs | 609 3,787 ;. 4,024 4, 660 5,042 Girozentralen, the central institutions through "Glaubiger"—mainly time j. | \ and demand deposits j 1,058 | 5,517; 5,970 6,409 6,872 which the various savings offices and communal Acceptance liabilities... ! 2| 264 i 316 387 banks are interrelated, has been greatly reduced during the past six months and the total From the foregoing table it appears that the increase for the year was considerably less than rapid expansion of private bank credit noted during the previous twelve-month period. The in previous reports has continued throughout credits are granted largely out the proceeds of Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

44 FEDERAL RESERVE BULLETIN JANUARY, 1928 long-term loans issued by the Girozentralen SAVINGS DEPOSITS IN GERMANY and the decline in their rate of increase corre- [End of month figures in millions of reichmarks] sponds with a period of comparative inactivity on the market for new security issues. There Month has been some disposition during the year on Savings to month deposits increase the part of the Girozentralen to restrict their ordinary banking activities. 1926 average 2.434.0 121.8 1926—November. 2.956.1 124.2 FIFTEEN GIROZENTRALEN December.. 3,090.8 134.7 1927—January i 3,381.1 i 290.3 [In millions of reichsmarks] February-_ 3, 572. 8 191.7 March 3, 718. 8 146.0 April 3,854. 0 135.2 Oct. Apr. June Aug. Oct. May 3, 965. 6 111.6 31,1926 30,1927 30,1927 31,1927 31,1927 J Ju u l n y e 4 4 , , 0 1 2 2 2 2 . . 4 7 9 5 9 7 . . 7 1 August 4,245. 9 123.5 September. 4,340.3 94.4 Cash and amounts due from October 4,444. 4 104.1 banks and bankers 207 252 194 266 240 Bills and treasury notes _ 165 154 133 116 104 4 L 4 o G a I n S s u a b n ig d e r a d "— va m nc a e i s nly time 1,300 1,550 1,638 1,707 1,742 i Including interest. and demand deposits 1,127 1,218 1,193 1,261 1,236 The savings reported by the Sparkassen constitute of couse only a portion of the annual The statements of the public banks covered savings fund of Germany, but they are the in the foregoing tabulations are issued once in only part susceptible of approximately accurate two months, and one month after the respective statement. Even the Sparkassen savings are statement dates. In this the publications perhaps open to qualification on the score that correspond with those of the private banks, other funds occasionally find their way into but December 31 figures are not assembled in these accounts, but the savings offices endeavor such a way that they can be combined into to make the distinction as clear as possible. composite statements. It may be hoped that As to other components of the savings fund as such changes as are to be effected in the private a whole, such as insurance and business profits bank statements will be made to apply when- reinvested, no accurate figures are available. ever possible to the statements of the public The German currency.—The German curbanks also. Up to the present, it wdll be rency, the stability of which was one of the recalled, the Verkehrs-Kreditbank and the primary objects of the experts' plan, continues Reichs-Kredit-Gesellschaft have limited their to satisfy all the requirements of the gold statements to annual reports. standard. In its external value, as measured Savings deposits in Germany as reported by in the foreign exchanges, it has been for many the savings offices (Sparkassen) have increased weeks above parity with the other principal during the past six months at the rate on the gold currencies of the world, the result of the average of 100 million reichsmarks a month. heavy inflow of credit from abroad and not the This is much above the monthly increase in reflection of a favorable trade balance or a fallpre-war years but lower than the average for ing price level. On the contrary, the level of 1926, or the first four months of 1927. It is prices, which furnishes the measure of the inalso slightly lower, as a rule, than during the ternal value of the currency, has risen; but up months of depression in 1926. Such a falling to the present the decline in the purchasing off in times of business activity was entirely powder of the currency is to be regarded not so characteristic of the course of savings deposits much as a matter already of grave consequence in Germany before the war. At the end of as a tendency to be taken into serious account October, 1927, the total was about 23 per cent in fixing, borrowing, and spending policies, parof the accumulation in 1913. ticularly on the part of the public authorities. Until recently the private banks in Germany Except for such influences as the seasons had not established savings accounts, although exert, the volume of the German currency has in the payment of interest they have distin- continued to rise with remarkable regularity guished between demand deposits and time de- ever since stabilization. The total circulation posits. But as from November 1, 1927, the has now reached about the same level as in Berlin Bankers Association (Stempelvereini- 1913, when it fluctuated around 6,000 millions. gung) has agreed that its members may take Whether the various factors of difference besavings deposits at 5 per cent interest. This tween the pre-war period and the present, such rate compares with a present rate of 4^ per as a higher world price level, a more general use cent at the savings offices. of checks and other means of settlement, the Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

45 JANUARY, 1928 FEDERAL RESERVE BULLETIN disappearance of gold from the circulation, a lation. But for smaller coins the needs of the smaller German territory at home and abroad public are apparently already well supplied. and a smaller population, offset one another in Substantial progress was made during the such a way as to make the 1913 circulation suit last six months in reducing the Reichsbank's present conditions of production and trade, stock of unissued or redundant coins. On can not now be foreseen. A better test is more November 30, 1927, the Reichsbank held 55 likely to be the course which German prices million reichsmarks of such coins, as compared take in comparison with prices in gold standard with about 98 millions at the end of May. countries. This reduction was due in part to the action The gradual change in the composition of the of the Reich in taking back 50-pfennig pieces currency noted in previous years has con- held by the Reichsbank but unfit for circulatinued during the past twelve months; that is, tion. New 50-pfennig coins are now in procthe volume of Reichsbank notes and coins has ess of minting and some have appeared in continued to increase while Rentenbank notes circulation. have been further reduced. Reichsbank notes composed nearly 70 per cent of the total circu- GERMAN CIRCULATION lation at the end of November, 1927, as com- [End of month figures in millions of reichsmarks] pared with about 62 per cent a year before. During that period Reichsbank notes increased Per- 800 million reichsmarks or about 300 millions centage more than the total increase in circulation, due Reichs- Renten- Private- Ren o t f ento the fact that Reichsbank notes replaced the n b o a t n e k s n b o a t n e k s n b o a t n e k s Coins Total n b o a t n e k s greater part of the Rentenbank notes with- in the total drawn from circulation. Reichsbank notes are practically the only elastic element in the 1925 average 2,513. 8 1,621.4 171.6 490.1 4, 796. 9 33.8 currency and after the circulation of coins has 1926 average 3,132. 0 1,290.4 177.7 655.0 5,255.1 24.6 reached the saturation point any changes in 1926—November. 3,374. 5 1,199. 0 175.3 692.2 5,441. 0 22.0 currency requirements must be reflected almost December.. 3, 735. 5 1,164.0 180.6 749.6 5,829. 7 20.0 1927—January 3,409. 6 1,108.1 172.3 721.1 5,411.1 20.5 entirely in changes in the volume of Reichsbank February. _ 3,465. 2 1,114.0 177.2 720.9 5,477. 3 20. a notes. Outside of the Rentenbank notes which March 3, 588. 7 1,095. 5 181.7 723.4 5, 589. 3 19.6 April 3, 676. 2 1,060. 2 182.9 717.8 5,637.1 18.8 are due to be retired within the next seven May 3, 719. 2 1, 033. 2 185.9 722.8 5,661.1 18.3 June 3,815.2 1,017. 1 188.8 725.6 5,746. 7 17.7 years, the inelastic element of the currency is July 3, 928. 2 1,008. 2 185.4 733. 5 5,855 3 17.2 relatively small, consisting of notes of private August 3, 934. 7 1,007. 2 184.7 740.2 5,866. 8 17.2 September. 4,182.4 988.9 188.3 762.7 6,122. 3 16.2 banks of issue and coins. The maximum October 4,230. 6 896.3 188.1 788.7 6,103. 7 14.7 November l 4,181. 3 780.7 187.0 801.0 5, 950. 0 13.1 amount which the private note banks may issue is 194 million reichsmarks and the amount in i Provisional figures. actual circulation during the year ended November 30, 1927, varied between 172 and 189 Rentenbank notes composed about 13 per millions. cent of the total circulation at the end of No- Coins in circulation increased 108 million vember, 1927, compared with about 22 per reichsmarks during the year, due in part to cent a year before. Up to the end of October, putting into circulation new 5-reichsmark 1927, the total redemption of Rentenbank pieces, which are designed to replace the 5- notes had aggregated 1,059 million rentenrentenmark notes of the Rentenbank. On marks. The funds for redemption came from October 31, 1927, there were 35 million reichs- the following sources: marks of these new 5-reichsmark pieces in circulation, nearly all of which had been issued [In millions] in September and October. Altogether, the Interest on the general mortgage on agriculcoins in circulation now amount to nearly 13 tural land 195 Payments by the Reich 180 reichsmarks per head of the population as Share of the Reich in Reichsbank earnings 72 against a legal maximum of 20 reichsmarks, Repayments of agricultural bills 612 exclusive of gold coins, of which none are now in circulation. Further issues of 5-reichsmark Total 1, 059 coins are to be expected, since at the end of The bills last mentioned in the foregoing October there were still 253 millions of Ren- summary were part of the so-called economic tenbank notes of that denomination in circu- credits granted in the early days of stabiliza- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

46 FEDERAL RESERVE BULLETIN JANUARY, 1928 tion through the medium of the Reichsbank help of other banks, among them the Rentenand the private banks of issue. They were bank Credit Institution (as distinguished from mainly for the benefit of agriculture. On the Rentenbank itself), the Gold Discount October 11, 1924, the date when the Ren ten- Bank and the Prussian Zentralgenossenschaftbank liquidation law went into effect, there skasse. were outstanding in virtue of these credits With this retirement, the redemption of 880,334,583 rentenmark notes of equal value Rentenbank notes reached the total amount with reichsmarks. The law provided that of 1,327 millions, plus such other minor conthese credits should mature in equal install- tributions as were payable during the month ments by November 30 of the three years 1925, of November. This is about 100 millions less 1926, and 1927, and that the proceeds should than the organizing committee of the Reichsbe used for the retirement of Rentenbank bank expected would take place in the first notes. three years. Their estimate, which was given |K The repayment of the 1927 installment of in a letter to the Reparation Commission on approximately 293 millions was in part antici- July 11, 1924, fixed the total at about 1,440 pated. In its most recent statement, that for millions. But they included an item of 110 October 31, the Rentenbank reported that the millions for profits on these credits, which credits outstanding amounted to 238 millions apparently the Rentenbank has not utilized and that 25 millions of the November 30 in- in the way outlined, but has applied, as appears stallment had already been paid into the re- from its annual reports, toward meeting the tirement funds. On the due date the last capital amount of the installments themselves part of the final installment was paid in full, or for the benefit of agriculture. The applibut agriculture was able to repay in cash only cation of the interest receipts in this way was an unstated fraction of the amount. A con- the result of an agreement between the Reich, siderable part of it was covered through the the Reichsbank, and the Rentenbank. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

JANUARY, 192? FEDERAL RESERVE BULLETIN 47 FINANCIAL STATISTICS FOR FOREIGN COUNTRIES CONDITION OF CENTRAL BANKS [Figures are for the last report date of monthJ 1927 1926 1927 1926 ve N m o b - er te S m ep b"er ve N m o b - er ve N m o b - er October te S m ep b - er ve N m o b - er Bank of England (millions of National Bank of Bulgaria (milpounds sterling): lions of leva): Issue department- Golds 1,274 1,272 1,266 43 Gold coin and bullion 148.6 150.3 149.5 151.4 Foreign bills, etc.. 648 550 602 607 Notes issued 168.3 170.0 169.2 171.2 Loans and discounts 923 1,037 1,105 1,732 Banking department— Advances to State _ 4,514 4,514 4,516 5,450 Gold and silver coin 1.3 1.5 1.6 j 1.5 Note circulation 3,902 4,039 4,104 I 3,659 Bank notes 31.4 34.3 32.7 33.2 Deposits _ 2,898 2,781 2,719 * 3,308 Government securities 41.3 40.7 56.3 | 33.3 Other securities 57.4 53.0 50.9 I 74.4 Public deposits 18.4 21.0 25.7 | 23.8 Central Bank of Cbile (millions of Other deposits 95.2 90.8 97.5 i 100.8 pesos): Ratio of gold and note re- Gold at home _. 61 60 60 ! 146 serve to deposit liabilities i Gold abroad 422 423 433 | 426 (per cent)... _ 28.9 32.0 27.9 | 27.9 Loans and discounts 27 32 37 41 Bank notes in circulation x 80.7 79.5 80.3 81.8 Note circulation 256 263 268 365 Currency notes and certificates. _ 295.8 292.5 294.8 284.7 Deposits _ 124 115 117 I 191 Bank of France (millions of francs): Gold reserve1 _ -. 3,681 3,682 3,684 Bank of the Republic of Colom- Silver reserve 343 343 343 340 bia (thousands of pesos): Gold, silver, and foreign exchange- 2,355 2,338 2,282 1,450 Gold at home 20,378 20,223 20,314 ! 18,413 Credits abroad 58 56 58 82 Gold abroad 23,687 23, 683 23,077 i 17,983 Loans and discounts 3,482 3, 296 3,567 6,514 Loans and discounts.., 14,494 13, 099 13,849 ! 12,885 Advances to the Government 24,450 24,850 24,400 35,700 Note circulation 42,077 40,671 40,182 j 37,784 Miscellaneous assets _ 24,628 24, 080 23,733 4,832 Deposits.— 8,000 8,229 8,892 | 6,362 Note circulation _ 54,962 54, 700 54,156 53,263 Total deposits _ 11,000 10, 786 10,439 4,385 Czechoslovak National Bank German Relchsbank (millions of (millions of Czechoslovak crowns): reichsmarks): Gold and silver 1,058 1,058 1,057 1,034 Gold at home 1,784 1,785 1,786 | 1,578 Foreign balances and currency... 2,235 2,133 2,132 ! 1,789 Gold abroad _ 73 67 67 | 177 Loans and advances 63 94 142 | 221 Reserves in foreign exchange 282 161 154 ! 418 Assets of banking office in liqui- Bills of exchange and checks 2,483 2,802 2,746 1,286 dation _ 514 519 522 j 620 Miscellaneous assets 512 571 494 581 Note circulation 7,566 7,662 7,650 ! 7,442 Deposits 485 608 630 528 Deposits _ 1,016 659 1,247 Reichsmarks in circulation 4,181 4,231 4,182 3,374 Rentenmarks in circulation 1,021 1,041 1,175 Bank of Italy (millions of lire): Bank of Danzig (millions of Dan- L A N N G C o d o r o o e a l v t t d e d e n a i s n c c r t c e i i a a r r e s n c c n s e d u u d r t l l v o d a a b t t e i a i i t s . o o h l c . a n . n e o n u c f G f o o n e o r r t s s v c t a h e o _ b r e m r n o S m m a t d e a e n t r e c t _ e. __ 1 5 4 4 1 1 3 , , , , , , 1 1 5 2 2 7 7 4 1 2 2 5 4 6 6 7 7 7 1 5 4 4 1 1 3 , , , , , , 1 5 2 6 2 8 7 4 2 2 2 6 4 8 7 7 3 5 1 4 5 4 1 1 3 , , , , , , 4 1 9 2 2 7 7 7 3 2 2 9 8 3 1 7 7 6 1 4 4 7 1 1 3 , , , , , , 0 6 1 2 2 9 5 4 1 2 2 7 2 1 6 9 9 7 zig N B L D F g o o a o e r u l a p t a e e n l o n i d s g s c c e i n i a e t n r s n s c ) b d : u w i l l l d i a s t t i h , i s o e c B n t o c a u n n k ts of Englan i d .. .. 4 3 1 1 1 8 8 9 ! i I 3 1 1 1 4 5 7 6 8 Total deposits 3,259 3,187 3,422 2,939 Bank of Japan (millions of yen): National Bank of Denmark (mil- I Gold 1,063 1,063 1,063 1,058 !l lions of kroner): Advances and discounts 913 927 903 351 i! Gold 182 182 182 209 Advances on foreign bills 10 15 5 51 ii Foreign bills, etc __. 75 84 78 I 29 Government bonds 153 159 167 277;; Loans and discounts 81 73 85 ! 124 Total note and deposit liabilities.- 2,252 2,291 2,306 1,920 Note circulation 346 365 351 ! 378 Notes issued 1,237 1,320 1,163 1,212 I Deposits 21 19 JLL 27 Total deposits 1,015 972 1,142 708 j I Austrian National Bank (millions National Bank of Egypt (thouof schillings): sands of Egyptian pounds sterling): Gold. 84 84 84 48 Gold. 3,706 3,676 3,527 Foreign bills of the reserve 377 389 392 479 English Government securities.... 28,605 27,105 25, 704 Other foreign bills 251 251 245 139 Egyptian Government securities. 23,487 21,441 26,325 Domestic bills 71 83 81 86 Note circulation- 31,143 29,602 28, 370 Treasury bills. 173 173 173 178 Government deposits 19,328 17,332 20,882 Note circulation 926 953 946 873 Other deposits 18,868 17, 529 15,047 Deposits _ 34 30 32 46 National Bank of Belgium (mil- Bank of Estonia (millions of Estolions of belgas): nian marks): Gold — 684 674 620 Gold.. ._ 512 512 512 505 Foreign bills and balances in Cash in foreign currency 46 39 40 26 gold _ 438 468 466 Foreign correspondents' account 1,062 843 576 177 Domestic and foreign bills 509 519 505 510 Foreign bills 56 58 76 89 Loans to State 400 400 400 400 Loans and discounts 5,557 5,632 5,600 6,073 Note circulation 1,975 1,998 1,996 1,745 Note circulation 2,283 2,248 2,048 1,921 Deposits 103 112 97 303 Total deposits _. 4,405 4,283 4,290 4,518 * Notes issued, less amounts held in banking deDartment and in cur- 3 Figures previous to 1927 carried at par. rency note account. 1 Not including gold held abroad. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

48 FEDERAL RESERVE BULLETIN JANUARY, 1928 CONDITION OF CENTRAL BANKS—Continued 1927 1926 1927 'Novem- Octo- Sep- Novem- Novem Octo- Sep- Novem- ! ber ber tember ber ber ber tember ber Bank of Finland (millions of Fin- Bank of Poland (millions of zlotys) nish marks): Gold at home 277 Gold - 318 319 321 328 Gold abroad. 231 327 182 136 Balances abroad and foreign Foreign exchange, etc.— credits 1,390 1,325 1,231 1,006 Serving as note cover 651 Foreign bills ._. 49 63 69 101 All other 230 441 243 138 Domestic bills 611 577 592 564 Loans and discounts 465 488 470 378 State debts 122 122 124 154 Note circulation 940 929 844 558 Note circulation 1,447 1,483 1,476 1,296 Currenct account of the Treasury. 398 96 125 48 Demand liabilities 651 685 491 527 Other current accounts 246 119 130 95 National Bank of Greece (millions Bank of Portugal (millions of escuof drachmae): dos): N T G L G o o o o o a t l t v a d e n e l s r c a d n i a n e r m n d c p d u e o b l n s d a a t i t i l t i s a s l o o c n n o a c n u e s s n t a a s n b d ro s a e d curities.! 4 3 2 3 5 , , , , , 1 1 0 4 8 2 0 3 3 9 6 5 8 3 3 4 4 3 3 2 , , , , , 7 2 3 8 3 5 6 5 2 7 1 3 3 2 7 N D B B G i a o e o l l p l l t a s d e o n s c c i i e t r s s c u a l b a r t o io a n d _ 1,8 2 1 1 0 2 7 2 7 3 4 5 1,8 2 1 2 7 2 5 8 9 8 9 7 1,8 2 2 4 0 5 5 4 4 9 5 National Bank of Rumania (mil- National Bank of Hungary (mil- lions of lei): lions of pengo): Gold* 150 149 148 144 Gold 197 197 197 169 Bills 9,001 9,143 9,087 9,013 Foreign bills, etc 106 103 93 117 Advances to State 16,359 16.359 16,359 10,679 Loans and discounts 316 329 310 193 Note circulation 21,023 21,032 21,022 20,943 Advances to treasury 115 115 115 144 Deposits 10,312 10,006 10,183 9,072 Other assets 258 260 273 287 State Bank of Russia (note-issuing Note circulation 456 508 477 447 Deposits 314 267 261 247 department; thousands of cher- Miscellaneous liabilities 197 203 224 186 vontsi): Gold 18, 880 18,447 17, 363 16,346 Bank of Java (millions of florins): Foreign currency 7,881 7,682 7,440 5,751 Gold 184 184 Loans and discounts 80,900 80,532 76,838 65, 672 Foreign bills 26 25 22 Bank notes 106,847 107,654 102, 657 88,433 Loans and discounts 138 139 108 National Bank of the Kingdom Note circulation 321 321 327 of Serbs, Croats, and Slovenes Deposits 77 75 68 (millions of dinars): Gold 85 Bank of Latvia (millions of lats): Foreign notes and credits 382 384 361 Gold Loans and discounts 1,580 1,550 1,543 1,433 Foreign exchange reserve Advances to State 2,966 2,966 2,966 2,966 Bills Note circulation 5,702 5,793 5,763 5,896 Loans Deposits- 1,187 1,294 1,310 609 Note circulation South African Reserve Bank Government deposits (thousands of pounds sterling): Other deposits Gold 7,393 7,536 7,992 7,144 Bank of Lithuania (millions of Foreign bills 7,325 6,390 6,186 5,592 litas): Domestic bills 621 1,362 1,646 876 G Fo o r l e d ign currency T N o o t t a e l c d ir e c p u o la s t i i t o s- n 7 7, , 7 3 1 5 3 9 6 8 , , 3 4 0 4 8 6 8 7 , , 5 0 8 6 6 3 5 7 , , 1 7 5 7 1 9 Loans and discounts Bank of Spain (millions of pesetas): Note circulation Gold 2,603 2,603 2,598 2,557 Deposits Silver 685 678 678 676 Balances abroad 33 33 39 31 Netherlands Bank (millions of Bills discounted 453 509 464 697 florins): Checks and drafts 1,213 1,258 1,241 1,667 Gold... 386 418 Note circulation 4,129 4,193 4,142 4,286 Foreign bills 145 128 127 182 Deposits 1,035 990 985 975 Loans and discounts 283 304 273 200 Bank of Sweden (millions of kro- N De o p te o s c i i t r s culation _ 81 6 1 7 8 4 5 0 4 7 3 9 5 6 no G r) o : ld— 231 231 231 225 Bank of Norway (millions of kro- Foreign bills, etc 232 228 216 169 ner): I Loans and discounts 228 225 285 268 G D Fo o o r l m e d i e g s n t ic b a c l r a e n d c i e ts s . _ and bills 2 1 4 5 4 1 6 7 % 2 1 2 6 4 3 8 7 2 1 3 6 4 1 6 7 4 1 7 6 47 6 4 I i Swis N D s o e N p te o a s c t i i i t r o s c . n ul a a l t io B n ank (millions of 5 1 1 0 9 4 5 9 2 5 2 560 5 8 1 0 2 Note circulation 318 324 325 321 francs): Foreign deposits 5 5 5 30 Gold 451 462 471 443 Total deposits 101 97 Funds on demand abroad 52 46 26 17 Loans and discounts 343 362 374 Reserve Bank of Peru (thousands Note circulation 841 861 877 807 oflibras): Deposits 101 84 Gold 4,156 4,198 4,199 4,803 Bank of the Republic of Uruguay G Fo o r l e d i g a n g a e i x n c s h t a d n e g m e a re n s d e r d v e e posits. _ 2 7 6 5 0 8 2 7 1 4 8 8 2 7 1 5 7 0 2 69 2 0 8 (thousands of pesos): Bills 1,816 1,769 1,724 1,462 Gold 55,422 55,421 54,944 Note circulation 5,894 5,938 5,949 6,193 Loans and discounts 99,655 5 96, 010 Deposits 521 437 435 460 Note circulation 62,641 63,195 63,547 Deposits 76,562 76,096 68,47 6 1 Not including gold held abroad. * Revised. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

49 JANUARY, 1928 FEDERAL RESERVE BULLETIN CONDITION OF COMMERCIAL BANKS [Figures are for the last report date of month except for London clearing banks, which are daily averages] 1927 1926 1927 1926 No b v e e r m- O b c e t r o- te S m ep b - er No b v e e r m- O b c e t r o- te S m ep b - er August O b c e t r o- Nine London clearing banks Three commercial banks of (millions of pounds sterling): France (millions of francs): Money at call and short notice... 134 142 134 118 Bills and national defense bonds 12,656 12,659 15,278 Advances and discounts 1,148 1,150 1,131 1,106 Loans and advances 5,074 5,198 5,311 Investments 236 238 234 252 Demand deposits. 23,636 23, 523 22,369 Deposits 1,694 1,710 1,668 1,648 Time deposits 450 444 281 Tokyo banks (millions of yen): 1 Six Berlin banks (millions of reichs- Cash on hand 285 195 272 132 marks): Total loans 2 297 1 925 1,923 2,582 Bills and treasury notes . .. 1,509 1,429 1,413 Total deposits 1 942 1,837 1,879 1,952 Due from other banks 921 880 762 Total clearings 2,224 1,856 1,794 3,550 Miscellaneous loans _ 5,042 4,788 3,787 Deposits 6,872 6,600 5,517 Acceptances 410 399 283 1927 1926 Four private banks of Italy (millions of lire): Octo- Sep- August Octo- B C i a l s ls h discounted - . 8 1 , , 8 2 9 4 7 2 8 1 , , 8 3 4 4 9 8 8 1 , , 8 21 95 7 ber tember ber j D ue from correspondents 5,. 454 5,538 5,544 13, 756 13,342 Chartered banks of Canada Deposits.. _ 2, 567 2,533 2,460 (millions of dollars): Joint-stock banks of Norway Gold coin and bullion 2 _. 70 70 69 71 (millions of kroner): Current loans and discounts 1,333 1,312 1,288 1,248 Loans and discounts 1,633 1,626 1,635 1,837 Money at call and short notice. _. 483 461 446 417 Due from foreign banks 92 86 83 96 Public and railway securities 519 533 536 506 Due to foreign banks 170 174 152 235 Note circulation 186 172 167 187 j Rediscounts 138 131 133 178 Individual deposits 2,405 2,347 2,295 2,257 ' Deposits 1 726 1,754 1,789 1,890 Gold reserve against Dominion Joint-stock banks of Sweden notes _ 112 109 106 116 Dominion note circulation 192 183 186 193 (m L il o l a io n n s s a o n f d k d r i o s n c o o r u ) n : ts _ 4,141 4,144 4,151 4,350 Joint-stock banks of Denmark • Foreign bills and credits abroad.. 278 234 197 141 (millions of kroner): '•• Due to foreign banks 129 124 119 131 D Lo u a e n f s r o a m nd fo d r i e s i c g o n u n b t a s nks _ 1,90 6 4 2 1,88 5 8 6 1,89 5 6 4 1,97 5 9 5 D Re e d p i o s s c i o ts unts 3, 5 7 7 1 5 3,5 1 6 1 1 7 3 5 1 5 1 7 5 3, 5 8 5 4 6 Due to foreign banks.. 92 87 121 128 Swiss Cantonal banks (millions Deposits and current accounts 2, 090 2, 056 2,011 2,119 ! of francs): 1 785 1 774 1 761 1 728 Joint-stock banks of Finland ! Mortgages 2,859 2,849 2, 841 2,744 (millions of Finnish marks): i Foreign bills 24 23 20 25 Loans and discounts.. 7,982 7,973 7,955 7,162 ! Due from banks and correspond- Due from abroad 475 414 437 186 ents 307 302 310 248 Due to abroad . 357 356 326 327 • Commercial deposits 728 725 708 646 Deposits 6,933 7,001 7,116 6,007 • Savings deDosits 1,560 1,560 1,560 1,464 1 Beginning in November figures are included for ten banks not previously covered by the reports. 2 Not including gold held abroad. DISCOUNT RATES OF 33 CENTRAL BANKS [Prevailing rates, with date of last change] Country Rate I s n i n e c f e f — ect Country Rate I s n i n e c f e f — ect Country Rate I s n i n e c f e f — ect Country Rate I s n i n e c f e f — ect A Be u l s g t i r u ia m 6V2 A N u o g v . . 1 2 6 5 , , 1 1 9 9 2 2 7 7 E Fi s n to la n n i d a . . . . . . 6 8 N O o c v t. . 2 1 4 , , 1 1 9 9 2 2 6 7 J Ja a v p a an 5 6 .48 M Oc a t y . 1 3 0 , , 1 1 9 9 2 2 5 7 R Po u r m tu a g n a i l a 8 6 S Ju e l p y t . 27 4 , . 1 1 9 9 2 2 6 0 Bulgaria 10 Aug. 31,1924 France 4 Dec. 29,1927 Latvia 7 Jan. 1,1927 Russia 8 Mar. 22,1927 C C C D D h o z a e e i l n n l o c z e m m h ig o a b r s i k l a ovakia. e 7 5 6 5 y2 J J M D M u u e n a n a c y e e r . . 2 2 1 1 8 1 4 2 5 , , , , , 1 1 1 1 1 9 9 9 9 9 2 2 2 2 2 7 7 6 7 4 H I I G G n ta r e u d e l r n i y e m a c g a e a n ry y . . _ 1 6 7 7 0 J J A D O u u u e c n n c g t e e . . . 2 1 2 2 6 8 6 4 , , , , , 1 1 1 1 1 9 9 9 9 9 2 2 2 2 2 7 6 5 7 7 ! N N L P P e i o o e t r l t r h u a h w u n e a a d r n y la i n a, d . _ _ s _ 5 8 6 4 6 H N M N A O o p o c a t r v v y . . . . 1 1 1 1 9 3 3 , , , , , 1 1 1 1 1 9 9 9 9 9 2 2 2 2 2 7 7 7 3 7 S S Y S S w w p o u a u g e i i t t d o n h z e s e n l A r a la f v r n i ic a d a .. 3 6 3 5 6 , H H J S J M O u a e c n n a p t e . r . t . . 2 2 2 1 1 3 3 2 0 , , , , , 1 1 1 1 1 9 9 9 9 9 2 2 2 2 2 2 8 7 3 5 England Apr. 21,1927 Changes: Central Bank of Chile from 7 to 6H P3r cent on December 12, 1927; Imperial Bank of India from 6 to 7 per cent on December 22,1927; Bank of France from 5 to 4 per cent on December 29, 1927; Bank of Sweden from 4 to ZXA per cent on January 1, 1928. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

50 FEDERAL RESERVE BULLETIN JANUARY, 1928 MONEY RATES IN FOREIGN COUNTRIES Switzerland Month 1926 January February March April May June July__ August September October November- December. -- 1927 January February March April May June July August September- October No v ember.._ 1927 January, February March April May. June July. August September October... November i For sources used, methods of quotation, and back figures, see the FEDERAL RESERVE BULLETIN for November, 1926. Rates for Belgium, France, and Italy, added to this table in April, 1927, are from the same source as the figures for Switzerland—viz, Bulletin Mensuel, Banque National 4aisse—and are quoted in the same way. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

JANUARY, 1928 FEDERAL RESERVE BULLETIN 51 GOLD MOVEMENTS [In thousands of dollars] United States Germany Great Britain Netherlands A So fr u i t c h a India Month Net Net Net Net Net Net p I o m rt - s p E o x rt - s im o p r o p e r o t x r s - ts p I o m rt - s p E o x rt - s im o p r o p e r o t x r s - ts p I o m rt - s p E o x rt - s im o P( r o p e r o t x r s - ts p I o m rt - s p E o x rt - s im o p r o p e r o t x r s - ts im o p r p o e r o t x r s - ts im o p r o p r e o t x r s t - s January 19,351 3,087 16,264 5,517| 823 4,694 22,021 11,913 10,108 6,615 35 6,580 -19, 952 8,619 February..__ 25,416 3,851 21,565 14,030| 740! 13,290 16,809 7,611 9,198 156 -327 -14,892 7,062 March 43,413 4,225 9,561| 768! 8,793 6,278 12,750 -6,472 619 20! 599 -8, 479 17,233 April 13,116 17,884 -4, 768, 1,393; 604J 789] 7,188 3,489 3,699 87 28| 59! -29, 737 6,838 May 2,935 9,343 -6,408 i 838' 693, 145! 18,687 6,852 11,835 270 200{ 70i -18,003 i 12,317 June 18,890 3,346 15,544! 571! 631 ^ -60! 16,103 4,881 11,222 1,010 fill 959| -21,002| 7,241 J A S N D O u e u c o e l p y t g c v o t u e e e b s m m m e t r b b b e e e r r r . . . . . . 1 l 1 1 1 l 8 5 7 9 6 , , , , 9 , , 8 9 0 8 7 7 5 8 0 2 3 9 7 4 0 7 8 j J ! 2 2 1 7 9 7 3 1 5 , , , , , , 1 1 0 7 0 7 5 9 8 6 2 4 6 6 1 7 9 3 -1 1 - 7 7 1 , 9 9 7 4 ,0 , . , , 8 7 7 O 7 9 0 5 6 0 4 i 4 8 1 1 l ! ! ! ! ! 1 2 3 1 1 1 3 6 0 6 8 , , , , , 6 6 3 4 4 6 0 3 4 6 0 2 3 2 1 8 7 6 ! : ! 8 8 6 6 7 9 6 5 3 2 0 0 8 4 9 2 1 2 , ! ! | i 3 2 1 1 9 5 2 5 7 , , , , , 5 9 5 4 4 0 6 9 7 9 9 6 0 4 5 7 j ! ! i | : 1 1 1 1 1 1 9 4 6 8 2 8 , , , , , , 5 9 8 1 5 5 3 1 6 3 6 1 1 6 7 7 1 0 2 2 1 8 8 6 5 4 1 , , , , , , 9 2 0 5 2 6 5 1 1 9 6 0 0 7 9 0 2 9 - - - 1 4 6 4 9 7 3 , , , , , 3 0 , 0 1 3 9 4 2 7 2 0 0 6 9 8 0 0 8 3 8 4 5 1 1 3 6 0 8 3 0 0 4 0 0 6 8 2 2 , , 0 6 6 1 1 1 1 5 6 7 5 4 3 0 6 4 0 ! ! ; ; | - - 1 2, ,6 5 4 2 1 8 3 0 9 4 7 4 0 5 6 4 0 : > , ; ! - - - - - - 2 1 1 2 1 8 9 3 5 2 0 , , , , , , 6 3 0 6 5 7 8 7 8 6 2 5 6 6 8 2 3 3 | j 4 4 4 4 3 3 , , , , , , 4 0 8 5 4 0 6 7 3 3 0 0 6 0 6 9 4 4 Total.. 213, 504 115,708 97,796 137,987; 8,720 129, 2671 187,608j 132,140 55, 468! 11,174 6,483| 4,691! -212,152 83,627 1927 January 59,355 14,890 44,465i 14,088 525 13,563; 11,514! 18,181 -6,667, 1,303 74 1,228' -17, 522: 2.518 February 22, 309 2,414 19,895 10,329: 659 9,670! 15,742; 15,480 262 411 411' -14,079' 6,543 March 116,382 5,625, 10,758 6,576 840 5,736J 7,526i 6,894! 632 488! 449 -20,718 10,041 April 14,503 2, 592 11,911 935! 771 1641 24, 678! 3,735 20,943 281! 1,334 -1,053 -23,146 4,941 May 34,212 2,610. 31,702] 705 673 32; 16,464; 26,580-10,116, 47 3,015 -2,968 -15,717, 4,890 June 14,611 1,840 12,771 711 662; 49 8,4351 9,674 -1,239 2,653 5,190 -2,537; -17,470! 7.122 July 10, 738 1,803 8,935 705 685! 20; 13,071i 6,061 7,010 203 4,623 -4,420. 5,936 August 7,877 1,524 6, 353 11, 259 680! 10,579: 21,469! 5,782 15,687! 105| 2.477 -2,372 . 2,860 September... 12, 9791 24,444 -11,465 1, 483 876; 6071 8,381! 7,637 744' 125! ' 47 78,. 3,315 October 2,056 10, 698 -8, 642 1,668 969; 699; 6,126! 4, 726! 1, 400! 189 35 154. 2,685 November... 2,082' 55,266 +53,184 . 15,012! 21, 709 433 102 331. December. „._ 210,000 2 76,0002-66,000'. 1 Revised. 2 Preliminary estimate. MOVEMENTS TO AND FROM UNITED STATES MOVEMENTS TO AND FROM GREAT BRITAIN [In thousands.of dollars] [In thousands of dollars] 1927 1926 1927 1926 Country of origin or destination November venaber ! Calendar year ImportsExports Imports' Exports ImportsjExports C o o r u n d t e r s y t i o n f a t o io ri n gin November N Ja o n ve u m ar b y e - r Calendar year England . 1 39 394 14 i 1 212 i 1 France . . 28 21 048 '351 1 18 Im- Ex- Im- | Ex- Im- Ex- Germany 1 13,994 ; 1 ! 47, 550 ports ports ports ! ports ports ports Netherlands 15 075 5 Canada . 716 20,059 54,364 25,657 1 82,543 42,392 Central America 100 1,140 253 1,516 3,855 France 44 463 627 ! 4,548 802 8,257 Mexico... 512 581 5,777 6,416 23,913 6,202 Netherlands 424 2,291 ! 6,294 1,175 14,704 Argentina 23 31,649 18 438 Russia 142 1,049 7,731 12,349 5,144 Brazil 33,000 33 000 369 Spain and Canaries 122 | 7,437 2,099 Chile 30 7 000 21 180 Switzerland 1,281 J 5,574 4,242 Colombia 158 1,387 1 001 1,663 2 019 United States 50 1 28,042 180 1,138 Ecuador __ 108 2,130 1,307 6 South America 18 2,012 I 6,959 108 1,543 Peru 190 2,235 2,644 British India 1,115 __.! 11,455 12,818 40 491 380 647 1,700 British Malaya 490 i 2,907 7,752 Australia 21, 917 51,119 Egypt 374 i 3,549 1,199 B Br r i i t t i i s s h h I M nd a i la a y a . 2 io 9 i 6 " ; ; 2, 2 6 9 1 8 2 " 5 " 3 " , 5 3 7 3 8 2 T R r h a o n d s e v s a i a a l 14,3 1 6 2 0 1 12 5 4 , , 4 21 5 4 3 j ! _. 153 9 , ,8 2 4 4 2 0 China and Hong West Africa. 281 4,485 i 19 6,293 --is 36 Kong _. 870 1,674 5,562 6, 540 4,495 All other ..countries.. 47 17,439 8,237 ! 41,945 3,557 73,207 Dutch East Indies . 350 1,380 1 1,309 1,707 2,231 Japan _ 20,000 14,000 60 Total 15,012 21, 709 148,419 126,463 187, 607 132,138 Philippine Islands Il8 1,458 1,990 All other countries.. 83 5 606 ! 1,456 1 1,157 463 Total 2,082 55,266 197,104 123,606 ,213, 504 115, 708 1 Revised. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

52 FEDERAL RESERVE BULLETIN JANUARI, 1928 FOREIGN EXCHANGE RATES [Monthly averages of daily quotations.1 In cents per unit of foreign currency] EUROPE (s A ch u i s l t li r n ia g) B ( e b l e g lg iu a m ) Bu (l l e g v a ) ria C ( z c v e r a c o k h w o ia n s ) lo- D ( e k n ro m n a e r ) k E (p n o g u la n n d d ) ( F m i a n r l k an k d a) F (f r r a a n nc c ) e G ( m e re r a m ic rk h a ) s n - y (d G ra r c e h ec m e a) H (p u e n n g g a o r ) y Par value 14.07 13.90 19.30 26.80 486.65 2.52 19.30 23.82 19.30 17.49 1926—December 14. 0802 13.9108 .7244 2. 9620 26. 6369 485.1250 2. 5210 3. 9492 23. 7958 1. 2643 17. 5654 1927—May 14.0674 13.8968 .7238 2.9615 26.6784 485. 7020 2. 5201 3.9168 23. 6924 1.3211 17. 4556 June 14.0625 13.8900 .7218 2.9616 26. 7207 485.6088 2. 5194 3.9169 23.6923 1.3430 17.4438 July 14.0695 13.8980 .7232 2.9626 26.7276 485. 5056 2. 5196 3.9112 23.7428 1.3232 17.4376 August 14.0629 13.9107 .7230 2. 9627 26. 7785 486. 0233 2.5189 3.9193 23. 7859 1.3083 17.4363 September... 14.0816 13. 9220 .7246 2.9626 26. 7680 486. 3528 2. 5189 3.9200 23.8004 1. 3243 17.4688 October 14. 0820 13.9260 .7229 2. 9627 26. 7932 486.9676 2. 5187 3. 9236 23.8624 1.3262 17.4624 November... 14.0874 13.9467 .7230 2.9629 26.7988 487.4012 2. 5191 3.9288 23.8629 1.3242 17.4658 December 14.0946 13.9885 .7235 2. 9630 26. 8192 488. 2542 2. 5191 3.9396 23. 8904 1.3294 17. 4773 I (l t i a r l a y ) N ( l f a e lo t n h r d i e n s r ) - N (k o r r o w n a e y ) P (z o l l o a t n y d ) P (e o s r c t u u d g o a ) l Ru ( m leu a ) nia R (c n u h e s e s t r z i v a ) o 2 - (p S e p s a e i t n a) S (k w ro ed n e a n ) S ( w f l r a a i n t n z d c e ) r- ( Y s d l i a u n v g a i o r a - ) Par value 19.30 40.20 26.80 11.22 108.05 19.30 514.60 19.30 26.80 19.30 19.30 1926—December 4. 4350 39. 9927 25. 2858 11. 2665 5.1196 .5206 3 515. 0000 15.2365 26. 7196 19.3192 1. 7653 1927—May 5.4016 40. 0196 25.8360 11.3816 5.1220 .6176 8 515. 0000 17. 5yi2 26. 7480 19.2324 1.7579 June . 5. 5819 40. 0515 25.8896 11.3065 5.0419 .5964 «515. 0000 17.1988 26.7792 19.2365 1.7577 July... 5.4488 40.0600 25.8352 11.2500 5.0008 .6094 3 515. 0000 17.0856 26. 7784 19.2528 1.7585 August 5.4396 40.0719 25.9374 11.2240 4. 9574 .6163 8 515.0000 16.9000 26.8203 19.2759 1. 7596 September... 5. 4432 40. 0776 26. 3620 11.2168 4.9288 .6181 »515.0000 17.1504 26.8752 19.2816 1. 7604 October •_. 5. 4616 40.1920 26. 3404 11. 2096 4.9456 .6193 • 515. 0000 17. 2540 26.9236 19. 2868 1. 7607 November... 5. 4458 40.3612 26.4871 11. 2063 4.9396 .6155 '514.1700 16. 9400 26.9246 19. 2850 1.7607 December 5.3800 40. 4381 26. 6169 11. 2204 4. 9550 .6188 3 51.5. 0000 16. 6623 27. 0015 19.3150 1.7615 NORTH AMERICA SOUTH AMERICA Canada Cuba Mexico Argentina Bolivia J Brazil Chile Colombia2 Ecuador * Peru « Uruguay (dollar) (peso) (peso) (peso-gold)(boliviano) (milreis) i (peso) (peso) (sucre) (libra) (peso) Par value 100.00 100.00 49.85 96.48 38.93 32.44 12.17 97.33 20.00 486.65 103.42 1926—December 99. 9342 99. 9150 46. 6718 93. 2792 33.7500 11. 8542 12. 0362 97. 3969 18. 3125 357. 3269 101. 2588 1927—May 100. 0658 99. 9606 46. 5867 96.2008 34. 0000 11.8084 12.0204 97.4688 18. 3125 364.6400 100. 7088 June 99. 9360 99. 9150 46.4197 96.4373 34.4231 11.8050 12. 0235 97.4196 19. 6019 374.4231 100.3708 July... 99. 8520 99.9288 46. 5383 96. 5540 34. 5950 11. 7916 12. 0224 97.5345 19. 5750 374. 6000 99.1684 August... ... 99.9404 100.0073 47.3931 96.8448 34.7546 11.8237 12.0292 98.2798 19.3750 374.9626 100.1381 September... 100.0497 99. 9524 47. 7219 97.1248 34.8000 11.8596 12.0736 97.9872 19.3750 388. 5600 100.4052 October 100.1099 99. 9387 47. 6667 97.1572 34.8000 11.9172 12.1712 97. 4736 19. 3750 384.1600 101.8796 November... 100.1369 99. 9289 47.9125 97. 0521 34.8000 11.9333 12.1763 97. 4950 19.3750 376.1458 103.3658 December 99.8974 99. 9154 48. 4506 97. 2304 34. 8000 11.9677 12. 2062 97. 7381 19. 3750 389. 8500 103. 8692 SOUTH AMERICA— ASIA AFRICA continued Straits (b z V o u e l e i n l v a e a * - r) (M C do h e l i x l n a ic a r) a « n (S C h t h a a i e n n l g a ) h * ai ( K d H o o o l n l n a g g r * ) (r I u n p d e ia e) J ( a y p e a n n ) ( J fl a o v ri a n ' ) ( P k e r r a s n ia ) (Si S m n e g e t a t n l p t e s o - re ( T p T o u u u r r k n k e d is y ) h (E p E g o g u y y n p p d ti t ) an dollar) Par value 19.30 48.11 66.85 47.77 36.50 49.85 40.20 9.46 56.78 439.65 494.31 1926—December 19. 0508 43. 7735 58. 9704 47. 5938 36. 0465 48. 9373 40. 2476 9. 2723 55. 9400 50.1900 497.3392 1927-May 18.7500 45.6136 62.1680 49.2716 36.2332 47.0832 40.1638 9. 5692 55.9896 52.2232 497.9792 June 18. 7620 45.5077 62. 7362 49.0742 36.1973 46.6896 40.2079 9. 6562 55.9807 51.9992 497.8950 July 19.1280 44.6004 62.2760 48.9772 36.1108 47.1312 40.1963 9.6976 55. 9600 51.0544 497.7768 August 19.1552 43.3807 60.3781 48.1600 36.1252 47.3322 40.1740 9.6375 55. 9711 49. 9774 498.2844 September... 19.1700 43. 9572 61. 2068 48.4980 36.3356 46.8248 40.1675 9.6132 55. 9908 50.9640 October 19.1700 44. 7376 61.8328 48. 8552 36.4092 46. 5664 40. 2618 56.0332 52.9624 499.2900 November.. _ 19.1700 45. 5958 63. 2663 49. 7917 36.4504 45. 9796 40.4090 56.0687 52. 4871 499. 6888 December 19.1700 45.9092 63. 7884 50.3085 36. 7369 46.1881 40. 5319 56. 7269 1 Based on noon buying rates for cable transfers In New York as certified to the Treasury by the Federal Reserve Bank of New York, In pursuance of the provisions of sec. 522 of the tariff act of 1921. J Averages based on daily quotations of closing rates as published by New York Journal of Commerce. I Nominal. 4 Silver currency. Parity represents gold value of unit In 1913 computed by multiplying silver content of unit by New York average price of silver for 1913. This average price was $0.61241 per fine ounce, which compares with an average price of $0.58267 for December, 1927, $0.57787 for November, 1927, and $0.53778 for December, 1926. The corresponding London prices (converted at average rate of exchange) were $0.58765, $0.58244, and $0.54046. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

JANUARY, 1928 FEDERAL RESERVE BULLETIN 53 PRICE MOVEMENTS IN PRINCIPAL COUNTRIES WHOLESALE PRICES ALL COMMODITIES United States o ( S B f t L i t u c a a r s t e b i ) s a 1 o - u r (B E la n o o n g a f d - rd ( m S F t G t a e i a c d n e t a r e y i l - s r - 3 al Trade) Bureau) 1926 March April May June July August September October November December 1927 January 856 February 854 March 858 April 846 May 848 i June 851 i July 845 August 850 September 837 ! October 839 November 838 December Europe—C ontinued Egypt South (Cairo)! Africa 1926 March 134 April 133 i May 128 > June 129 ! July 129 122 August 129 September 129 October 129 November 130 December 130 i New index—1926=100. 1 First of month figures. 3 New index. NOTE.—These indexes are in most cases published here on their original bases, usually 1913 or 1914, as determined by the various foreign statistical offices which compile the index numbers and furnish them to the Federal Reserve Board. In several cases, however, viz, France, Netherlands, Japan, New Zealand, and South Africa, they have been recomputed from original bases (1901-1910; 1901-1910; October, 1900; 1909-1913; 1910) to a 1913 base. Index numbers of commodity groups for most of the countries are also available in the office of the Division of Research and Statistics and may be had upon request. Further information as to base periods, sources, numbers of commodities, and the period of the month to which the figures refer may be found on pages 769-770 of the November, 1927, BULLETIN. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

54 FEDERAL RESERVE BULLETIN JANUARY, 1928 WHOLESALE PRICES—-Continued GROUPS OF COMMODITIES [Pre-war=100] ENGLAND-BOARD OF TRADE ITALY—CHAMBER OF COMMERCE OF MILAN 1927 1926 1927 1926 ve N m o b - er Octoberte S m e b p e - r August July ve N m o b - er No b v e e r m- Octoberte S m e b p e - r August July No b v e e r m- All commodities 484 484 484 486 491 641 Total food 525 520 509 513 634 656 T A o ll t a c l o m foo m d odities 1 15 4 2 1 1 1 4 6 1 3 1 1 4 5 2 3 1 1 4 5 1 1 1 15 4 4 1 1 1 5 5 2 7 All V A in e n d g i u m e s t t a a r l b i a l f e l o o p f d o r s o o d d - s. 4 5 9 4 6 9 5 49 4 5 1 4 5 8 3 0 3 5 4 4 7 9 0 4 5 9 6 7 3 6 6 8 1 9 5 Tota M C O l, e t e h n r a e e o t a r t l a s f f o n o o o d d d s fish._. 1 1 1 1 6 5 3 3 6 2 5 8 1 1 1 1 6 5 3 3 4 6 6 8 1 1 1 1 6 3 4 5 0 6 2 7 1 1 1 1 6 3 3 6 7 6 6 2 1 1 1 1 3 7 5 3 4 1 6 5 1 1 1 1 5 5 5 6 3 6 0 1 uc T C M ts e h i x e n t m e il r i e a c s l a s l s and 4 4 4 4 4 6 6 1 8 4 4 4 4 5 7 7 0 0 4 4 4 7 6 5 4 6 3 4 4 4 7 4 5 4 3 5 4 4 4 5 3 7 5 6 5 6 5 5 3 7 6 6 2 7 I O ro th n e a r nd m s in te er e a l l . s .. 114 116 116 117 118 135 Bu m il e d t i a n l g s mate- 441 447 456 465 471 744 C O M o t a i h s t n e t c d o r e n l m t l . e a e x n t t a e i l o l s e u s s . . . . . . 1 1 1 1 1 4 6 6 4 4 7 1 1 1 1 1 4 5 1 7 4 9 3 2 1 1 1 1 4 1 5 7 2 4 9 8 1 1 1 1 4 5 1 6 2 8 5 8 1 1 » 1 6 4 5 « 0 2 7 1 1 1 1 4 5 4 8 4 3 1 5 S O u t r p h n i r a d e o l r r s d ie u v s c e t g s etable 5 4 5 5 9 3 3 5 5 5 4 5 7 4 3 _ 8 7 4 4 5 5 6 3 4 5 5 1 5 4 5 5 5 4 7 4 0 4 5 5 4 4 6 5 0 6 6 6 6 3 8 3 4 4 2 FRANCE-STATISTICAL BUREAU SWEDEN—BOARD OF TRADE All commodities 595 687 601 618 617 684 All commodities 148 147 148 146 146 148 All foods 543 530 558 685 697 657 Vegetable products.. 141 144 147 148 151 146 Animal foods 505 486 529 537 551 593 Animal products 146 143 142 135 127 145 Vegetable foods. 551 547 564 618 624 695 Fuels and oils 113 114 114 116 117 124 Sugar, coffee, Raw materials for cocoa 594 577 591 599 622 697 manufacture in All industrial mate- iron and metal rial 636 633 636 645 640 706 industry 115 115 117 117 117 127 Minerals 535 530 542 557 674 709 Paper pulp and pa- Textiles 773 790 813 830 804 748 per . 157 157 158 159 168 171 Sundries 638 625 611 613 606 693 Raw materials for manufacture in leather industry... 140 135 130 122 122 122 GERMANY—FEDERAL STATISTICAL BUREAU Raw and manufactured chemicals ... 166 167 167 168 169 171 A To ll t a c l o mm ag o r d ic it u ie lt s ural 140 140 140 138 S R e a m w i f m ini a s t h e e ri d a ls mate- 142 140 137 138 137 142 pr V A o C d e a n u g t i t m c e l t e t a s a l b le p fo ro o d d - s. 1 1 1 3 0 4 7 9 2 1 1 1 4 1 3 4 5 8 1 1 1 4 3 2 4 9 1 1 1 1 3 5 1 9 0 6 F P C i r o r n o i n i a d s s l u h u s c e m e d r e s r m . ' s ' g a g o te o o . d r o i s d a s ls .. . . . 1 3 1 1 5 3 4 5 6 7 9 0 1 1 1 1 5 3 5 4 6 7 0 9 1 1 1 1 3 5 5 5 7 7 2 1 1 1 1 1 5 5 3 4 4 1 7 8 1 1 1 1 3 5 4 5 8 1 8 3 1 1 1 1 5 5 4 3 2 9 8 6 ucts 163 154 152 Fodder 142 142 142 AUSTRALIA-BUREAU OF CENSUS AND STATISTICS Provisions 132 131 130 Total industrial raw materials and All commodities 166 173 170 165 161 155 semi-finished Metals and coal 176 176 178 178 179 179 products 134 134 134 Textiles 168 164 168 155 150 128 Coal 131 131 130 Agricultural prod- Iron.. 124 124 124 ucts 180 195 181 174 167 191 Nonf errous Dairy products 147 153 157 157 161 134 metals 105 104 105 Groceries and to- Textiles. 152 163 166 bacco 169 168 168 169 168 168 Hides and Meat 148 168 164 153 139 101 leather _ 153 145 139 Building materials.. 141 143 144 153 152 152 Chemicals 124 124 124 186 186 183 183 183 180 Artificial ferti- Te li c z h e n r i s cal oils 80 83 82 INDIA (CALCUTTA)—DEPARTMENT OF STATISTICS and fats 120 121 121 R Pa u p b e b r e r materials 46 42 42 1927 1926 Bu r a i i n l a d d l i . n p .. g a . p e m r ate- 1 1 5 6 2 1 1 16 5 2 1 1 1 5 6 1 2 O b c e t r o- te S i e n p b t e - r August July June O b c e t r o- Total industrial finished products. 155 153 151 All commodities 147 150 151 150 149 144 C Pr o od n u s c u er m s' e g r o o s d r s 132 131 131 C Pu e l r s e e a s ls 1 1 3 5 3 5 1 1 3 5 6 5 1 1 4 5 2 8 1 15 3 2 8 1 1 4 5 0 5 1 1 4 5 0 7 goods 172 169 166 162 Tea 180 181 182 188 179 150 Other foods 172 170 171 169 171 157 Oil seeds _ 142 145 145 151 155 133 SWITZERLAND t—DR. J. LORENZ Raw jute 87 92 114 108 90 86 Jute manufactures... 146 156 161 152 139 146 C A A o l g l n r c i s c o u u m m lt m u e r r o a s d ' l g it o ie p o s r d o s d .. - _ 1 1 4 6 9 0 1 15 4 9 8 1 1 5 4 7 8 1 16 4 7 7 1 16 4 6 7 1 1 4 5 7 7 C Ra o tu w t r t e o c s n o t . t o m n anufac . - .. 1 1 8 6 0 1 2 1 0 6 1 3 1 15 8 8 1 1 1 8 5 5 5 1 15 6 4 9 1 1 3 6 6 1 In u d c u t s s trial products. 1 1 4 2 4 6 1 1 4 2 5 4 1 1 4 2 6 3 1 14 2 4 5 1 14 2 4 6 1 14 1 6 8 M O Hi t e d h t e e a s r l s t a e n x d ti l s e k s ins 1 1 1 2 2 2 9 1 7 1 1 1 0 3 2 9 3 3 1 1 1 0 3 2 2 0 4 1 1 1 3 2 0 0 7 2 1 1 1 2 1 3 9 0 2 1 1 1 2 3 0 7 5 7 * First-of-month figures. Other articles 149 153 160 161 155 145 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

JANUARY, 1928 FEDERAL RESERVE BULLETIN 55 RETAIL FOOD PRICES AND COST OF LIVING RETAIL FOOD PRICES [Pre-war=100] European countries Other countries Month 1926 March 157 114 137 2,719 832 165 136 497 141 1,805 654 147 205 234 161 154 159 151 152 118 April 159 114 139 2,652 832 159 139 503 142 1,821 645 146 198 241 161 153 163 150 151 119 May. 158 113 146 2,808 158 X.39 ' 522142 ', 817 664 146 195 250 159 152 i 163 150 151 119 June 157 116 155 2,717 158 139 544 143 ,870 657 146 194 243 159 149 ! 162 152 151 118 July 154 115 177 2,713 161 139 574 145 ,849 654 146 198 236 159 149 ! 159 155 149 117 August 153 117 187 2,637 161 138 i 587 146 ,871 660 i 146 196 234 157 150 157 153 149 117 September- 156 116 184 2,641 162 128 590 145 652 i 145 193 231 158 147 155 152 148 117 October 157 117 194 2,597 163 127 624 145 654 i 146 191 230 160 147 153 158 147 120 November- 158 117 204 2,618 i 902 169 127 628 148 630 I 147 186 234 159 148 155 152 146 119 December.- 159 118 206 2,598 i 912 169 128 599 150 i; 973 631 i 146 184 235 159 151 158 154 149 117 1927^- January 156 119 207 2,586 914 167 131 : 592 151 2,002 625 | 147 180 158 153 i 158 155 148 118 February. _- 153 119 210 2,569 914 164 132 ; 585 152 1,995 642 146 177 208 157 151 !153 152 146 117 March 151 118 201 2,533 915 162 129 ! 581 151 1,997 635 146 173 205 156 149 !151 152 146 118 April 151 119 200 2,478 923 155 130 150 2,021 617 145 169 203 156 146 |151 151 145 119 May 152 119 196 2,630 930 154 130 151 :2,063 565 145 169 201 156 145 : 152 150 145 121 June 155 122 201 2,699 949 154 131 153 i 2,063 541 145 172 199 157 146 !153 151 144 120 July 150 122 205 2,653 962 159 134 156 i 2,059 524 144 175 199 157 147 !152 154 144 119 August 149 120 202 2,625 914 156 130 150 i 2,044 518 143 175 199 157 147 i 155 155 143 118 September- 151 119 206 2,615 910 157 122 i 151 I 2, 070 509 143 174 198 158 147 I157 151 143 117 October 153 120 210 2,626 907 161 123 i 152 i 2,071 509 146 173 198 158 148 | 159 148 143 119 November- 153 119 163 152 ! 148 171 199 161 149 ; 157 147 119 December. . 163 171 200 149; COST OF LIVING [Pre-war=100] European countries Other countries Massa- Month s c e h t u ts - g B iu e m l- 1s C lo z v ec a h k o ia - l E a n n g d - ' l F a i n n d - F (P ra a n ri c s e ) m G a er n - y G ( e A r n e t s e h ) c - e H ga u r n y -I ( l t a M a n ly i ) - l N a e e n r t d - h s - N w o a r y - l P a o n - d Spain S d w en e- S l z a w e n r i - d t- a C d a a n ^ - A t l r u i a a s- - ( I b B n a o d y m i ) a - S A o fr u ic th a 1926 March 161 136 692 172 1,172 451 138 1,706 119 647 174 225 169 185 163 154 157 155 131 April 161 137 690 168 1,163 140 1,731 119 642 177 187 "I73~ 162 153 153 131 May 159 142 697 167 1,159 140 1,741 118 652 185 183 160 152 153 132 June 159 150 698 168 1,175 485 141 1,791 116 650 171 218 184 183 160 150 161 155 131 July 159 166 723 170 1,183 142 1,808 117 649 178 186 172 160 150 157 130 August 158 175 728 170 1,213 143 1,818 116 652 182 178 159 150 155 130 September. 158 174 727 172 1,203 539 142 1,833 114 647 164 217 189 187 159 149 "I68~ 155 130 October-.. 158 184 732 174 1,197 142 1,862 114 672 193 190 "I7l" 160 149 155 131 November 159 191 740 179 1,193 144 1,895 116 657 197 191 159 150 154 131 December. 159 195 741 179 1,197 545 144 1,889 116 657 168 213 199 193 159 151 157 156 129 1927 January .- 158 198 747 175 1,187 145 1,900 119 655 202 196 171 160 152 156 130 February- 157 200 746 172 1,189 145 1,896 120 667 201 190 160 151 155 130 March 156 195 744 171 1,183 524 145 1,898 119 663 166 203 200 194 159 150 "I56~ 155 131 April 156 195 749 165 1,173 146 1,911 119 651 203 196 170 158 148 153 131 May 157 193 756 164 1,166 147 1,938 119 612 205 179 159 148 152 132 June. 156 196 761 163 1,184 525 148 1,951 121 586 167 201 205 179 160 149 155 154 132 July . 155 199 753 166 1,203 150 1,960 119 548 199 189 169" 160 149 156 132 August 155 198 739 164 1,237 147 1,951 119 543 201 221 160 149 157 131 September. 155 202 736 165 1,230 507 147 1,955 119 537 167 197 202 226 161 149 154 131 October UR 207 734 167 1,237 150 1,956 536 205 227 ~~172~ 161 150 151 132 November. 157 169 1,251 151 210 225 162 150 1*0 132 December. 169 195 151 i 11921 =-100. The cost of living index for Belgium has been changed from an average of seven provinces, on April, 1914, base, to a workingman's budget in 59 cities, on a 1921 base. » First of the month figures. NOTE.—Information as to the number of foods and items included, the original base periods, and sources may be found on page 276 of the April, 1925, issu of the BULLETIN Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

56 FEDERAL RESERVE BULLETIN JANUARY, 1928- FOREIGN EXCHANGE RATES, 1919-1927 [NOTE.—For explanation see pages 9 and 52] YEARLY AVERAGES [In cents per unit of foreign currency] Par Monetary unit of ex- 1919 1920 1921 1922 1923 1924 1925 1926 1927 change Europe: Austria Schilling 14 07 14.0612 14.0740 14.0764 Belgium Franc 19.30 12. 7670 7. 3800 7.4461 7. 6829 5. 2190 4. 6438 4. 7580 3.2649 Belgium Belga 13.90 13. 9157 Bulgaria Lev 19 30 .6883 .8837 .7281 . 7317 .7210 . 7235 Czechoslovakia Crown 2.4151 2. 9550 2.9542 2.9656 2.9618 2. 9622 Denmark Krone __ 26.80 23. 2850 15. 7750 17. 7965 20.9470 18. 3643 16. 7228 21.1310 26.2257 26. 7251 England.. _. . Pound 486. 65 442. 5800 366.4270 384. 9056 442.9165 457.4825 441. 7064 482.8944 485. 8235 486.1024 Finland Markka 2 52 2 1634 2.6831 2. 5076 2.5218 2. 5209 2. 5197 France Franc 19.30 13. 6820 7. 0400 7. 4554 8. 2013 6.0811 5. 2368 4. 7671 3. 2427 3. 9240 Ger nany Reichsmark 23. 82 3. 0440 1. 7510 1. 2045 . 2323 .0020 23. 8013 23. 7996 23. 7638 Greece Drachma 19 30 3.3059 1. 7141 1. 7900 1. 5614 1. 2579 1.3173 Hungary Pengo 17.49 17.5612 17. 4741 Italy Lira 19.30 11. 3690 4. 9700 4. 2936 4. 7559 4. 6016 4. 3580 3. 9776 3. 8894 5.1560 Netherlands Florin 40 20 39.1470 34 4190 33 6470 38 4975 39.1005 38. 2109 40.1601 40. 0984 40.1065 Norway . Krone 26.80 24. 5760 16. 5300 14.9071 17. 5016 16. 6710 13. 9403 17.8836 22. 3347 26. 0477 Poland Zloty 11 22 17. 7432 11.1796 11. 2881 Portugal Escudo 108. 05 6. 6700 4.2527 3. 3850 5.0397 5.1254 5. 0290 Rumania Leu _. . . . .-_ 19.30 . 6<J69 .4937 .4982 .4832 . 4620 .6042 Russia . Chervonetz 514 60 515. 0000 514.9340 Spain Peseta 19.30 19. 8230 15. 9380 13. 5314 15. 4828 14. 4529 13. 3375 14. 3443 14. 8959 17.0592 Sweden Krona 26 80 25 5420 20 4940 22 5397 26.1661 26.5548 26 5223 26 8479 26. 7646 26. 8148 Switzerland. _ Franc 19.30 18. 9830 16. 9030 17. 3539 19.0652 18. 0600 18. 2228 19. 3268 19. 3130 19. 2618 Yugoslavia Dinar . 19.30 1. 3524 1.0722 1. 2818 1. 7054 1. 7647 1. 7598 North America: Canada. .. Dollar 100. 00 95. 5970 89. 2760 89. 5549 98. 4783 98. 0352 98. 7322 99. 9615 99. 9889 99. 9720 Cuba Peso 100. 00 99. 8516 99. 9508 99. 9783 99. 9359 99. 9310 99. 9675 Mexico. Peso 49 85 48. 7150 48.5465 48. 5143 49.3926 48. 3087 47. 2049 South An:erica: Argentina Peso (gold) 96.48 99. 0180 90.7040 72 9999 81. 8166 78. 5727 78. 1308 91. 3822 92.1497 96. 2950 Bolivia Boliviano 38 93 34.0941 34. 3913 Brazil . M ilreis 32.44 26. 7350 22. 5130 13.1153 12. 9486 10. 2285 10. 9403 12.1962 14. 4357 11.8383 Chile Peso 12 17 22 5550 18 4540 12 0574 12 2159 12 2423 10. 5448 11 6031 12. 0766 12.0652 Colombia _ Peso . 97 33 98. 4547 97. 4899 Ecuador Sucre 20 00 i 20. 0571 18. 9724 Peru Libra 486. 65 j 374. 0<J65 373.7739 Uruguay Peso 103 42 79.3966 79. 0615 82. 2695 98.4009 101. 4740 101.3361 Venezuela Bolivar 19.30 19. 2565 18. 9835 Asia: China Mexican dollar M8 11 54 6337 52. 0153 52. 3642 55. 5471 49. 9159 45.0315 China Shanghai tael 1 66. 85 129.8350 118. 5990 70. 7787 74. 9281 72. 0248 72. 6814 75. 7738 68. 4214 62.0994 China.... Yuan dollar 1 47. 50 55 6073 52 6223 52 6973 56 9066 49. 9807 43. 9414 Hong Kong_ Dollar 1 47. 77 55. 7126 52. 8985 52. 4691 56. 5199 53. 3290 49. 2085 India Rupee 36 50 40. 2950 38 8790 26 2198 28. 7409 31.1103 31. 7835 36. 2642 36. 3267 36.3117 Japan Yen 49 85 51 1840 50 3680 48 2485 47.8037 48. 5845 41 1857 41 0362 47.1163 47.4113 Java Florin 40 20 40 2862 40. 2377 Straits Settle- Singapore dollar 56.78 50. 7753 53.4984 51. 2523 56.1546 56. 2705 56.0476 ment. Turkey Turkish pound 439.65 52. 2549 Africa: j Egypt Egyptian pound 494 31 498 0954 i i 1 Silver currency. Parity represents gold value of unit in 1913 computed by multiplying silver content of unit by New York average price of silver for 1913. MONTHLY AVERAGES [In cents per unit of foreign currency] i 1 Austria Belgium 2 Bulgaria Czecho- Denmark England Finland I France Germany 3 Greece ! Hungary slovakia 1918 I j November. 26.9000 476. 5801 1 18.3800 December ! 27.0640 476. 5300 ! 18.3550 ! 1919 ! January.. 26. 7000 476. 5800 ' 18.3500 February i 26.1340 476. 4860 18. 3500 March 25. 8940 471.4700 17. 7000 April-. 15. 8700 25.1880 466.1700 16. 6900 May 15 4800 24 3200 466 7600 15 8000 June ._ 15.1700 23. 8900 462.1100 15 6500 July 13.9700 ! 22. 8300 442. 8700 14. 3900 August i i 21. 8600 427. 2000 12 7600 September . _. 12.4688 i ! 22.0260 417. 9000 : 11.7600 4 2300 i ! October 11. 7500 1 21. 6400 418.4000 • 11 6200 3. 7100 November 11.1500 20. 8300 409. 8200 1 10 6200 2 6400 December 9. 6060 18. 7830 381. 2300 ; 9.2420 2.1000 2 Quotations for Belgian franc from April, 1919, to October, 1926, inclusive. J Quotations for paper mark from September, 1919, to October, 1924, inclusive. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

JANUARY, 1928 FEDERAL RESERVE BULLETIN 57 FOREIGN EXCHANGE RATES, 1919-1927: MONTHLY AVERAGES—Continued [Tn cents per unit of foreign currency] Czechoslovakia Denmark j England Finland ! France Germany Greece Hungary s 1920 January ' 8.4750 -.. 17. 6000 367. 7930 8.4750 1. 6900 February 7.2310 I. 14. 9000 338.1000 7.0370 1. 0500 March 7.4630 ' 17.2340 372. 5800 7.1940 1. 2600 April 6.6710 18.0120 393.1000 6. 2460 1. 6660 May 7.1820 16.8300 384. 7700 6. 8590 2.1900 June ' 8.2990 16.8700 394. 9750 7. 9160 2. 5600 July : 8.6400 16.4200 386.4700 8.1300 2. 5300 August 7. 6700 14.9600 362.1900 7.1820 2.1000 September 7.1600 14. 0100 351. 0250 6. 7400 1. 7220 October 6.9040 13. 8700 347. 5100 6. 5330 1. 4780 November 6.3680 13. 4060 343. 7239 6.0100 1. 3210 December 6.2490 14. 8500 349. 2350 5. 9200 1.3700 January 1921 ' 6. 7700 18. 0600 374.1970 6. 4330 1. 6000 ! February | 7.5000 18. 5430 387. 5800 7. 1730 1. 6400 1 March i 7.3500 17. 3100 391.1100 7. 0345 1. 5953 April ' 7.4400 18. 0900 392. 9200 7. 2414 1. 5720 May 8.3653 18.0700 397. 5380 8. 3688 1. 6250 June 8.0310 17. 2100 378.1500 8. 0740 1.4440 July 0.1417 7.6370 0. 9548 1.3125 15. 7790 363. 2130 1. 6414 7. 8131 1. 3025 5. 5516 0. 3323 August : .1193 7.5270 .8801 1.2247 j 16.1900 365. 3632 1. 5106 7. 7581 1.1896 5. 5460 .2629 September .0936 7.1700 . 7587 1.1601 1 17. 6700 372.4000 1.4059 7. 2800 .9574 5. 2400 .1944 October .0561 7.1316 .6814 1.0493 j 18. 9220 387. 2892 1. 5278 7. 2524 .6832 4. 3792 .1432 N ovember . 0360 6. 9391 .6704 1. 0382 18. 4674 397. 0196 1.8619 7.1991 .3924 4.1426 .1078 December .0387 7.5354 .7224 1. 2494 19.5165 415. 6108 1. 9003 7.8446 . 5258 4.1400 .1512 1922 I January .0325 7. 8144 . 7104 1. 7319 19. 9744 422. 4780 1. 8871 8.1636 . 5204 4.3644 . 1525 February • .C281 8. 3195 .6930 1. 855C 20. 6414 436. 2000 2.0029 8. 7305 .4811 4. 5082 . 1497 March ; .0150 8.4311 . 6880 1. 7333 21.1081 437. 5719 2. 0600 9. 0033 .3585 4. 4407 .1256 April . C134 8. 5192 .6898 1. 9f;C2 21. 2204 441.33C8 1. 9268 9. 2288 .3459 4. 4668 .1258 May ; .0112 8. 3580 .6930 1. 9207 21.3969 i 444.6119 2.0821 9.1196 .3440 4. 2685 . 1261 June ! . 00(57 8.2212 . 7358 1. 9236 21.65(32 |445.1862 2.1616 8.7646 . 3185 3. 8346 .1079 July : . 0038 7. 8008 . 7293 2.1845 21.5364 | 444. 6368 2.1462 8. 2372 . 2041 2. 9596 .0760 August ; . 0017 7. 5451 . 6518 2. 9023 21.5348 i 446. 4678 2.1329 7. 9567 . 0989 3.0830 .0595 September [ . 0014 7. 2332 . 6380 3. 2206 21.0552 j443. 0696 2.1741 7. 6592 . 0684 2.4724 .0423 October . 0014 6. 8580 . 6481 3.2845 20.1908 I 443. 8484 2. 3239 7. 3704 . 0332 2. 3896 .0402 November | . 0014 6. 3700 . 6835 3.1758 20. 2C71 447. 9921 2. 5609 6. 8583 .0147 1. 5925 .0413 December ; .C014 6. 6448 - .6997 3. 0969 20. 6700 460. 9800 2. 5124 7.2296 .0136 1. 2337 .0430 1923 January .0014 6.0765 .6947 2. 8556 19. 7938 465. 4611 2. 4807 6. 6769 .0073 1. 2206 .0392 February . 0014 5. 3955 . 6372 2. 9580 19. G905 469. 0809 2. 6226 6.1459 .0038 1.1739 .C381 March . 0014 5. 48C0 . 6543 2. 9693 19.1970 469. 5693 2. 7553 6. 3237 .0047 1.0962 .0289 April .0014 5. 7560 . 7738 2. 9781 18. 9160 465. 5468 2. 7541 6. 6668 .0041 1.1694 .0217 May .0014 5. 7231 .7982 2. 9791 18. 6481 462. 5677 2. 7705 6. 6365 .0022 1. 6883 .0191 June .0014 5. 3985 1.1749 2. 9934 17.9573 461. 4681 2. 7694 6. 3012 .0010 3. 0975 .0140 July .0014 4. 8824 1.1850 2. 9971 17. 5416 458. 3385 2. 7677 5. 8905 6.34C0 2. 5463 . 0097 August . 001.4 4. 5492 . 9583 2. 9340 18.4612 456. 0338 2. 7723 5. 6500 6.C339 1. 7462 .C056 September.- . 0014 4.9017 . 9590 2.9945 18.1633 454. 2217 2. 6996 5.8550 7.1881 1. 7866 .0055 October . 0014 5. 0877 1. 0150 2. 9705 17. 5262 452. 3745 2. 6732 5. 9488 8.6750 1. 5432 . GC54 November.. .0014 4. 7354 .9221 2. 9057 17. 1992 438.2152 2. 6406 5. 5167 .0431 1. 5578 .0054 December __- . C014 4. 5816 .8162 2.9248 17. 8208 436. 0148 2. 4755 5. 2496 • . 0227 1.8952 .C052 1924 January .0014 4.1819 .1743 2. 8981 16. 9419 425. 9C92 2. 4828 4. 6650 ». 0226 1. 9357 .0039 February .0014 3. 837G .7315 2. 9015 15. 9983 430. 7709 2. 4987 4.4191 9 .0218 1. 6983 .0033 March .0014 3. 8650 .7375 2. 9015 15. 6788 429. 0631 2. 5074 4.6812 9.0220 1. 6297 .0015 April .0014 5. 2319 .7278 2. 9567 16.6446 435.1281 2. 5080 6.1573 ». 0220 1. 8413 .0014 May .0014 4. 8646 . 7231 2. 9392 16. 9242 436. 08C8 2. 5067 5. 7919 9.0228 2.0091 .0012 June .0C14 4.5648 .7173 2. 9364 16. 7776 431.9880 2. 5068 5. 2528 9.0234 1. 7343 .0011 July . 0014 4. 5558 . 7239 2. 9528 16. 0473 437. 0388 2. 5068 5.1185 9.0239 1. 7140 .0012 August .0014 5. C219 .7328 2. 9789 16.2115 449. 9458 2. 5129 5.4635 9.0238 1. 7947 .0013 September... .0014 4. 9380 .7310 2. 9932 16. 9544 446. 0536 2. 5109 5. 3016 9.0238 1.7778 .0013 October .0014 4. 8042 . 7320 2. 9814 17. 3331 448. 7004 2. 5125 5. 2292 9.0238 1.7356 .0013 November. . .0014 4. 8326 .7331 2. 9890 17. 5483 460.9687 2. 5184 5. 2757 23. 7983 1. 7808 .0013 December—_ .0014 4.9650 .7339 3. 0204 17. 6362 469. 5838 2. 5202 5. 3988 23.8031 1.8140 .0013 1925 January .0014 5. 0573 .7335 2. 9987 17.8104 478.1673 2. 5198 5. 3923 23. 8000 1.7553 .0014 February .0014 5. 0750 .7319 2.9600 17.8064 477.2418 2. 5203 5. 2796 23.8000 1. 6134 .0014 March 14.0583 5, 0662 .7335 2, 9665 18.0692 477, 6250 2. 5214 5.1807 23.8000 1. 5484 .0014 April 14. 0593 5. 0546 .7319 2. 9648 18.4404 479.5308 2. 5221 5.1877 23.8000 1. 7774 .0014 May 14. 0599 5. 0225 .7318 2. 9632 18. 8076 485. 4720 2. 5218 5.1632 23.8000 1.7926 .0014 June 14.0518 4.7035 .7322 2. 9625 19.1138 486. 0415 2.5218 4.7696 23.8000 1. 6575 .0014 July ._.. 14. 0541 4.6223 .7341 2.9617 21. 3658 485. 9604 2. 5222 4.6981 23. 8000 1.5956 .0014 August 14.0624 4.5265 .7333 2. 9618 23.3015 485. 6900 2. 5227 4. 6912 23. 8000 1. 5406 .0014 September.. 14.0694 4. 4040 .7314 2.9616 24. 5188 484. 6464 2.5235 4. 7124 23. 8000 1.4613 .0014 October 14. 0728 4. 5258 .7294 2. 9617 24. 5769 484. 2800 2. 5226 4.4312 23.8031 1. 3554 .0014 November.. 14. 0624 4.5270 .7279 2. 9615 24.8561 484. 5861 2. 5221 3. 9622 23.8061 1. 3375 .0014 December... 14.0604 4,5296 .7292 2.9615 24.8642 484.9838 2. 5217 3.7358 23.8069 1.2887 .0014 4 Quotations for Austrian krone from July, 1921, to February, 1925, inclusive. * Quotations for Hungarian crown from July, 1921, to February, 1&25, inclusive. » Per thousand. * Per hundred thousand. s Per ten million. • Per billion. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

58 FEDERAL RESERVE BULLETIN JANUARY, 1928 FOREIGN EXCHANGE RATES, 1919-1927: MONTHLY AVERAGES—Continued [In cents per unit of foreign currency] Austria Belgium Bulgaria s C lo z v ec a h k o ia - Denmark England Finland France Germany Greece Hungary 1926 January _ 14.0566 4.5360 0.7007 2.9616 24.8044 485.7860 2.5211 3.7708 23.8012 1.3541 17.5532 February 14 0556 4.5432 .7046 2.9618 25.3786 486. 3363 2.5206 3.6782 23.8068 1.4349 17.5618 March _. __ __ 14,0607 4.2341 .7204 2. 9618 26.1130 486.0825 2.5216 3.5804 23.8030 1.3744 17.5552 April 14. 0662 3. 6742 .7232 2.9618 26.1738 486.2185 2.5208 3.3885 23. 8019 1.2762 17.5631 May - - -- 14.0735 3.1176 .7238 2. 9617 26.2020 486.1544 2.5209 3.1508 23.8028 1.2742 17.5584 June 14.0796 2.9558 .7219 2.9618 26.4846 486.6096 2.5209 2.9415 23.8050 1.2413 17.5585 July 14. 0832 2.4250 .7266 2.9616 2a 5015 486.3450 2.5209 2.4658 23.8035 1.1758 17.5704 August _ _ __ 14.0787 2.7538 .7262 2. 9618 26.5442 485.8608 2. 5206 2.8327 23.8096 1.1160 17.5604 September 14.0837 2. 7228 .7246 2.9618 26.5540 485.4168 2.5209 2.8548 23.8120 1.1609 17.5620 October 14.0842 2.7784 .7260 2.9618 26. 5744 485.0328 2. 5211 2.9404 23.8028 1.2087 17.5616 November 14.0845 13.9088 .7271 2.9620 26. 6159 484.8758 2. 5208 3.4167 23. 7488 1.2343 17.5642 December 14. 0802 13.9108 .7244 2.9620 26. 6369 485.1250 2.5210 3.9492 23.7958 1.2643 17. 5654 1927 January 14.0794 13.9072 .7230 2. 9618 26. 6488 485.2648 2. 5208 3.9584 23. 7216 1.2895 17. 5332 February 14.0841 13.9023 .7242 2.9618 26. 6495 485.0282 2.5208 3.9232 23. 6977 1.2979 17.5314 March 14.0738 13.9000 .7246 2.9616 26.6456 485.4025 2. 5205 3.9126 23.7137 1.2898 17.5074 April 14.0736 13.9000 .7249 2. 9616 26. 6681 485. 6546 2. 5206 3. 9188 23.7011 1.3295 17.4773 May 14. 0674 13.8968 .7238 2.9615 26. 6784 485. 7020 2.5201 3.9168 23. 6924 1.3211 17.4556 June 14 0625 13.8900 .7218 2. 9616 26. 7207 485. 6088 2.5194 3. 9169 23. 6923 1.3430 17.4438 July 14.0695 13.8980 .7232 2. 9626 26. 7276 485. 5056 2. 5196 3.9112 23.7428 1.3232 17.4376 August 14, 0629 13.9107 .7230 2. 9627 26. 7785 486. 0233 2. 5189 3.9193 23. 7859 1.3083 17.4363 September.. 14.0816 13.9220 .7246 2. 9626 26.7680 486. 3528 2. 5189 3.9200 23.8004 1.3243 17.4688 October 14.0820 13. 9260 .7229 2. 9627 26.7932 486. 9676 2. 5187 3. 9236 23. 8624 1.3262 17.4624 November _«.._. 14.0874 13.9467 .7230 2. 9629 26. 7988 487.4012 2. 5191 3. 9288 23.8629 1.3242 17.4658 December 14.0946 13.9885 .7235 2.9630 26.8192 488.2542 2.5191 3.9396 23.8904 1.3294 17.4773 Italy N la e n th d e s r- Norway Poland *° Portugal Rumania Russia Spain Sweden Sw la i n tz d er- Y sl u av g i o a - 1918 November 15.7600 42.1530 27.5000 20.1000 28.2000 20.1200 December 15.7500 42.6730 28.0140 20.0600 29.1120 20.6200 1919 January 15. 7500 42.3070 27. 9340 20.1700 28.8900 20. 6600 February 15. 7500 41. 3520 27.4000 20.3940 28. 2190 20. 4900 March 14 9700 40.8710 26.7590 20. 7090 27. 7700 20.4500 April 13. 6600 40. 4320 25. 8970 20.3220 26. 8970 20.2800 May 12. 5800 39.8300 25.4520 20.2400 25. 9430 19.9600 June 12.5500 39.1220 25. 3220 20.0100 25.8800 18.9000 July 11.9000 38.0000 24.1000 19.4000 25.0000 18. 0800 August 10.8700 37.2200 23.4200 19.2000 24. 6700 17. 7300 September 10. 2100 37. 5300 23. 2400 19. 0600 24.5600 17. 8900 October 9.8430 38. 0000 23.0500 19.2100 24.3880 17.8600 November 8.4600 37.7640 22.2600 19.7800 23. 0900 18.1500 December 7. 6630 37.8510 20. 6000 19.5100 21.6000 18. 4200 1920 January 7.1430 37. 8000 19.1900 18.9100 20. 7000 17.8900 February 5. 5100 37.3000 17.3000 17.4500 18. 6000 16. 4740 March 5. 3190 36.7900 18.1790 17.6000 20.3680 16.9500 April 4.4600 37.1160 19.8340 17.4770 21. 8730 17. 9300 May 5.1700 36. 6000 18.6300 ! 16.8000 21.2200 17.7322 June 5.9130 36.1360 17. 5440 16.5600 21. 8270 18.2110 July 5. 7800 34.9720 16. 5200 15. 9600 21. 8500 17. 6200 August 4.8900 32. 8970 14.9900 15.1000 20. 5900 16.6500 September 4.3400 31. 2690 13.9850 14.7550 20.2100 16.2600 October 3. 9400 30.8659 13.7900 14. 3300 19. 7000 15. 9000 November _ . 3.6200 30.1860 13.3800 13.0300 19.0990 15.5340 December 3. 4890 30. 9520 14.7400 13.0700 19. 5900 15. 3900 1921 January . 3.5520 32.8800 17.6300 13. 5100 21. 4000 15. 6800 February 3. 6544 34.2010 17. 7800 14.0200 22.2570 16.3610 March 3. 8500 34. 4000 16.1900 13.9700 22.8300 17.0800 April 4. 6010 34. 7500 15.9700 13. 9500 23. 5700 17.3600 May 5. 2960 35. 5600 15. 7700 13.5900 23.4900 17.8600 June 4. 9770 33.2840 14. 6100 13.0800 22. 5600 17.0100 July 4. 5264 31. 7810 13.3800 0.0516 12.0880 1. 3995 12. 8200 21.0400 16. 5460 2. 5634 August 4.3156 31.0000 13.0700 .0489 10.0700 1.2383 12.8900 21.1120 16. 8170 2.3300 September 4. 2000 31. 6600 12. 8600 .0256 9.4160 .9574 13.0200 21. 7800 17.2000 1.9122 October 3.9708 33.4544 12. 6444 .0212 9. 6228 .7785 13. 2520 22. 9364 18.2332 1. 5227 November 4.1213 34.9722 14.1209 .0290 8.4152 .6569 13. 7165 23.2335 18.8035 1.3058 December .. 4.4365 36. 3104 15. 2327 .0313 8. 0196 .8008 14. 6496 24. 5281 19. 3919 1. 5366 Quotations for Polish mark from July, 1921, to May, 1924, inclusive. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

JANUARY, 1928 FEDERAL RESERVE BULLETIN 59 FOREIGN EXCHANGE RATES, 1919-1927: MONTHLY AVERAGES—Continued [In cents per unit of foreign currencyl Italy Ne la t n h d e s r- Norway Poland Portugal Rumania K ( u n n s a s o l i m a ) i i - i Spain Sweden Sw l i a t n z d er- Y sl u a g v o i - a 1922 January 4.3744 36.6772 15. 6636 0. 0327 7.6644 0. 7783 14.9768 24.9488 19.4156 1.3814 February 4.9095 37. 6082 16. 6641 .0286 7. 4895 .7953 15. 6927 26.1495 19. 5227 1 2975 March . 5.1115 37. 8452 17. 6156 . 0236 8.4293 .7485 15. 6533 26.1563 19.4548 1.2899 April 5.3668 37.9332 18 6116 0262 7.9800 .7332 15.5128 26.0480 19.4480 1 3302 May 5.2558 38. 6500 18.4738 .0249 7. 8285 .6967 15. 6819 25. 7746 19.2062 1 4502 June . 4. 9619 38. 7069 17. 0654 .0237 7. 5096 .6584 15.6869 25. 8092 19. 0388 1. 3801 July 4. 5748 38. 7684 16. 6832 .0185 7.1568 .6045 15. 5632 25. 9128 19. 0952 1.2218 August 4. 5078 38. 8489 17.1793 .0135 6. 5849 .8110 15. 5489 26. 3381 19. 0396 1.1863 September 4. 2676 38. 7932 16. 8272 .0127 4. 8256 .6559 15. 2992 26.4568 18. 7908 1.2926 October - 4.1720 38. 9624 17. 8600 .0095 4. 8760 .6261 15.2496 26. 6488 18. 4208 1 6222 November 4. 5063 39.2729 18. 3658 .0065 4.9921 .6417 15.2750 26. 8442 18. 4358 1. 5691 December 5. 0340 39. 8368 18. 9396 .0057 4. 5212 .6111 15. 6356 26. 9484 18. 9100 1. 2231 1923 January 4. 8792 39. 5642 18. 6665 .0043 4. 6050 .5194 15. 6600 26. 8610 18. 7831 .9560 February 4. 8177 39. 5273 18. 5518 .0025 4.3582 .4769 15. 6577 26. 5959 18. 7977 .9681 March 4. 8550 39. 4893 18.1578 .0024 4. 3430 .4842 15.4652 26. 6000 18. 5896 1. 0417 April 4. 9596 39.1788 17. 8420 .0023 4.6032 .4789 15. 3220 26. 6444 18.2424 1. 0173 May 4. 8392 39.1304 16. 5362 .0021 4. 4731 .5097 15.2327 26. 6462 18 0277 1.0499 June ._ 4. 5746 39. 2012 16. 6396 .0013 4. 6604 .5168 14.9242 26. 5596 17.9404 1.1484 July 4. 3260 39. 2296 16. 2040 2. 7240 4. 2140 .5177 14. 2972 26. 5316 17 5536 1 0668 August 4. 3062 39. 3446 16. 2954 2. 4200 4.2119 .4677 13. 6573 26. 6281 18. 0538 1. 0570 September 4. 4375 39. 3025 16. 0758 2. 3546 4.1663 .4642 13. 5783 26. 5496 17. 8621 1. 0940 October 4. 5146 39.1338 15. 5046 2. 1113 4. 0035 .4688 13.4704 26. 3996 17. 8735 1.1748 November 4. 3575 38. 0150 14. 6546 2. 0502 3. 7858 .5029 13. 0800 26. 2867 17. 5458 1.1491 December 4. 3372 38. 0392 14. 9140 2. 0234 3. 5636 .5153 13. 0368 26. 3332 17. 4524 1.1358 1924 January . .. 4. 3400 37. 3496 14.0765 1.0116 3.1831 .4993 12.7462 26.1831 17. 3212 1.1335 February 4. 3452 37. 4161 13. 3248 l. 0109 3.1639 .5182 12. 7357 26.1826 17. 3683 1 2232 March 4. 2769 37. 0650 13. 5527 1.0113 3.1262 .5225 12. 7327 26. 2869 17. 2900 1. 2372 April 4. 4408 37.1931 13. 7942 i. 0114 3.1354 .5188 13. 6435 26. 3804 17. 5996 1.2391 May 4. 4396 37. 4058 13. 8662 1 0113 3. 0373 .4902 13. 7962 26. 5000 17. 7246 1. 2353 June 4. 3328 37. 4352 13. 5132 19. 2928 2. 8600 .4311 13.4552 26. 5416 17. 6604 1.1850 Julv 4. 3035 37. 9419 13. 4235 19. 2465 2. 7996 .4322 13. 2996 26. 5950 18 1946 1 1825 August 4. 4446 38. 8035 13. 8665 19.2254 2. 9704 .4605 13.4088 26. 6142 18. 8219 1.2363 September 4. 3820 38. 4508 13. 8296 19.2188 3.1808 .5178 13. 2396 26. 6028 18. 8820 1. 3515 October 4. 3504 39.1027 14. 2546 19.2181 3. 9315 • .5459 13. 4015 26. 6123 19.1827 1. 4245 November 4. 3335 40. 0513 14. 7152 19. 2074 4. 5104 .5393 13. 5961 26. 8135 19.2765 1. 4490 December 4.3019 40.4162 15.0635 19. 2035 4. 7977 .5079 13.9558 26.9531 19.3781 1.4962 1925 January 4.1669 40.4069 15.2708 19.1788 4. 8808 .5191 14.1808 26.9458 19.3369 1.6347 February 4 1082 40 1700 15 2541 19 1800 4. 9060 .5073 14. 2245 26. 9441 19 2550 1 6216 March 4.0719 39 9212 15 4346 19 1831 4. 9296 .4866 14.2219 26.9496 19.2646 1 6006 April 4.1030 39. 9488 16.1338 19.1780 4. 9554 .4583 14.2862 26.9381 19.3323 1. 6146 May 4.0672 40.1848 16. 8196 19.1872 5.0024 .4722 14. 5332 26.7532 19.3464 1.6268 June 3. 8273 40.1354 17 0115 19.1858 5.0719 .4660 14. 5731 26.7635 19.4019 1.7114 July _. 3. G677 40.1023 18.0673 19. 0815 5.1362 .4875 14. 5073 26. 8558 19.4146 1.7608 August 3. 6573 40.2419 18 8027 17 9527 5.1300 .5117 14. 4104 26. 8715 19.4019 1. 7946 SeDtember 4 0640 40 2084 20 9320 17 5888 5 1356 4890 14.3860 26. 8244 19 3068 1 7795 October 3. 9915 40.2004 20 2042 16 6558 5 0888 .4774 14.3523 26. 7900 19 2742 1 7733 November 4. 0048 40. 2265 20 3126 15 7400 5.1130 .4632 14.2526 26. 7517 19.2713 1. 7704 December 4. 0312 40.1809 20.3119 10. 8435 5.1169 .4609 14.1831 26. 7858 19.2977 1. 7705 1926 January _ _ 4. 0376 40.1812 20. 3488 12. 8664 5.1168 .4476 515.0000 14.1508 26. 7776 19. 3112 1. 7695 February 4. 0264 40. 0795 20 8273 13.1536 5.1227 .4321 515.0000 14.1014 26. 7782 19. 2623 1. 7610 March 4. 0156 40. 0689 21.4670 12.6888 5.1330 .4234 515.0000 14.0933 26. 8125 19. 2518 1. 7611 April 4. 0200 40.1258 21. 6181 11. 3292 5.1396 .4030 515.0000 14.2881 26. 7904 19. 3004 1. 7609 May 3. 8728 40.1980 21. 6568 9 5836 5.1256 .3710 515.0000 14. 5348 26. 7612 19.3464 1.7617 June 3. 6646 40 1750 22 1027 9 3015 5 1423 .4278 515.0000 15. 7619 26. 8004 19.3604 1. 7653 July 3. 3504 40.1773 21. 9304 10. 0654 5.1296 .4601 515.0000 15. 7169 26. 7954 19. 3604 1. 7672 August _ 3. 2950 40.1123 21. 9146 10. 8573 5.1300 .4672 515.0000 15.2942 26. 7654 19. 3235 1. 7649 September 3.6688 40. 0732 21. 9140 10. 9676 5.1256 .5105 515. 0000 15. 2240 26. 7476 19. 3216 1. 7662 October 4.1196 40.0036 23. 6060 11. 0892 5.1108 .5357 515.0000 15.1016 26. 7288 19. 3084 1. 7674 November 4. 2142 39. 9850 25.3046 11.2271 5:1063 .5488 515.0000 15.1533 26. 6904 19. 2846 1. 7659 December 4.4350 39. 9927 25. 2858 11. 2665 5.1196 .5206 515.0000 15.2365 26. 7196 19. 3192 1. 7653 1927 January 4.3448 39. 9868 25. 5700 11. 3076 5.1152 .5306 515.0000 16.0340 26. 7056 19. 2740 1. 7635 February 4.3182 40.0041 25. 7759 11.3391 5.1155 .5743 515.0000 16. 7805 26. 6864 19. 2318 1. 7605 March 4. 5059 40. 0137 26.0474 11.3703 5.1170 .6128 515.0000 17.4088 26. 7452 19.2359 1. 7593 April 5. 0204 40. 0023 25. 8592 11.4226 5.1138 .6157 515.0000 17.6385 26.7788 19. 2323 1. 7581 May.. 5.4016 40.0196 25. 8360 11.3816 5.1220 .6176 515. 0000 17. 5912 26.7480 19. 2324 • 1.7579 June 5. 5819 40. 0515 25. 8896- 11.3065 5. 0419 .5964 515.0000 17.1988 26. 7792 19. 2365 1. 7577 July 5. 4488 40.0600 25. 8352 11. 2500 5.0008 .6094 515. 0000 17. 0856 26. 7784 19.2528 1. 7585 August 5. 4396 40. 0719 25. 9374 11. 2240 4. 9574 . 6163 515. 0000 16. 9000 26. 8203 19.2759 1. 7598 September _ 5.4432 40. 0776 26. 3620 11. 2168 4. 9288 .6181 515. 0000 17.1504 26. 8752 19. 2816 1. 7604 October 5. 4616 40.1920 26. 3404 11.2096 4. 9456 .6193 515.0000 17. 2540 26. 9236 19.2868 1.7607 November 5. 4458 40. 3612 26. 4871 11. 2063 4. 9396 .6155 514.1700 16.9400 26. 9246 19. 2850 1. 7607 December 5.3800 40.4381 26.6169 11.2204 4.9550 .6188 515.0000 16.6623 27.0015 19.3150 1.7615 i Averages based on daily quotations of closing rates as publishedJby New York Journal of Commerce. 12 Per thousand. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

60 FEDERAL RESERVE BULLETIN JANUARY, 1928 FOREIGN EXCHANGE RATES, 1919-1927: MONTHLY AVERAGES—Continued [In cents per unit of foreign currency] Canada Cuba Mexico Argentina Bolivia Brazil Chile Colombia Ecuador Peru Uruguay 1918 November 98.2284 102.1000 25. 8000 22.8000 December 98. 4450 102. 5100 26. 7S20 25.8170 1919 January 97 9669 101. 9100 25. 8000 25. 8400 February 98.0507 101. 9500 25. 9640 27. 7000 March 97 9262 101. 5000 26.1000 29. 6000 April 97 4622 100. 3000 26.2000 26.4000 May 97.1610 100. 8150 27. 6900 24.7400 June 97 1250 99.0400 27. 8700 25. 8000 July 96. 6082 97.1400 27. 3170 19. 3500 August 95.8430 96. 2700 26. 0000 18.1800 September 96. 3300 96. 5800 25. 3700 18. 9400 October 96. 3800 96.4800 25. 7800 20. 0700 November 95 8600 97.6600 27. 5160 19. 2000 December 92.8050 98. 3130 28. 7550 18.7260 1920 January 91 5100 98.2340 27.5340 20. 7400 February 86. 5000 98. 5390 26.1900 21. 3300 IV'larch 89 3800 98. 7150 26. 5000 21.4000 April 91. 6100 98. 3100 26. 8400 21. 2650 May 90.0400 97.0550 26. 3344 19. 7000 June 88 1930 96.1090 25.1000 18. 9850 July 88 0750 92 2660 22 8000 19 1080 August 88 6400 87 1000 20. 7210 18 1000 September 90. 3700 84. 5740 18. 2900 16. 7900 October 90. 8500 81. 3710 17.5100 15 5900 November 89. 2670 76. 8740 16.6000 14.0000 December 86. 3150 78. 7340 15. 2500 14. 2150 1921 January 87. 6370 79.3820 15.1390 14 3200 February 88.0700 80. 3900 15. 5970 14.4030 March 87.8053 78.2020 15.1300 14. 7600 April 89. 0589 73.9580 14.0160 12. 9840 May 89. 6473 71 8480 13.7000 11. 8690 June 88 7600 69 8570 11 6470 10 8570 July 88.1973 99.0232 48.9113 65. 7990 10. 4490 10.4430 60. 6890 August 89. 7819 99. 3225 48. 4954 66. 5550 11.7600 10. 2400 63.9050 September 89.8519 99.3233 48.5990 69. 6300 12.3700 10. 7080 64. 8900 October 91.3906 99. 5258 48.4113 73. 0780 12. 7080 11. 7300 66. 4388 November 91. 5082 99.5892 48.2895 73. 4739 12. 5996 11. 0380 66. 4126 December 92. 7744 99. 6402 48. 4180 74. 8042 12. 6692 10. 7837 68. 9077 1922 January 94 8222 99. 7256 48. 6898 77.1892 12. 5752 10.1302 72. 6472 February 96. 3114 99 8542 48 8076 82. 5764 13. 2459 10 3958 79. 2391 March 96. 8604 99. 8878 49. 2888 82. 7785 13. 6678 11. 4050 80. 7326 April 97. 7580 99. 8145 49. 3574 80. 7480 13. 5696 11.2775 78.1116 May 98. 7880 99. 8517 49.0768 82. 4088 _ _ 13. 7365 11. 8667 79. 7627 June 98. 8401 99. 8357 48.4812 81. 8554 13. 7215 12. 6394 80. 9450 July 98. 9231 99. 7981 48. 5229 81. 8468 13. 5520 12.9701 81. 3956 August 99, 7481 99. 8729 48. 5314 82. 0852 13. 3752 13. 7496 80.8474 September 99. 9332 99. 8700 48. 3006 81. 0832 12. 5392 13. 7276 78. 0132 October 100. 0807 99. 8826 48. 2917 81. 4140 11.3476 13.6068 77. 0756 November 100. 0290 99. 8779 48. 7620 82.2283 11. 9488 12. 3825 79. 4613 December 99. 4484 99. 9450 48. 4468 85. 5688 11. 9452 12. 4064 84. 2120 1923 January 99. 0943 99. 9508 48. 9082 84. 7354 11. 3796 12. 8177 84. 6050 February 98. 6724 99.9554 49. 0234 84.2164 11.4282 11. 9941 83.1582 March 98. 0570 99.9858 48. 8605 84.1452 11. 0874 12. 6725 84. 5496 April 98. 0201 99. 9998 48. 4463 83.1484 10. 6364 12. 3104 83. 7348 May 97. 9403 99. 9977 48. 4267 81. 6785 10. 3477 12. 8250 80. 8638 June __ 97. 6578 99.9753 48. 3721 80.4669 ! 10. 4254 13. 4012 80. 8492 July 97. 4204 99.9303 48. 3692 77. 7376 10. 3685 12. 6340 79.1884 August 97. 6666 99. 8818 48. 3432 74. 4581 9. 7481 12.2115 73. 9662 September 97. 6506 99. 8818 48. 5692 74. 8533 9. 7317 12. 3754 74 4592 October 98. 5518 99. 9086 48. 4303 73. 6581 9. 4758 11. 7512 73. 6381 November . _ _. 98.1334 99.9886 48. 3449 71. 1450 8. 7563 11. 0775 72.1304 December 97. 5920 99.9530 48. 4994 72. 3308 9. 3436 10.6592 77. 2416 1924 January _ . _. 97. 3645 99. 9736 48. 0737 73. 6542 10. 8523 10. 3631 79. 6808 February 96. 9380 99. 9713 48. 2222 76.4517 11. 9757 10.1335 78 2648 March 96.9569 100. 0505 48.2309 76. 5527 11.4462 9. 7712 76. 6927 April 98. 0871 100. 0396 48.2652 74. 8019 11.2288 10. 5354 77. 5073 May _ _ _ _ 98.3048 100. 0375 48. 2265 74. 6308 11. 0458 10. 97J9 78. 0273 June 98.4401 100 0143 48.2199 73. 8912 10. 7488 10.5956 77. 5880 July 99.2555 99.9436 48. 6047 74.1188 9.9219 10.1100 76. 6392 August 99. 8537 99. 9194 48. 9031 76. 6558 9. 9162 10. 0004 78. 5162 September - 99. 9431 99. 9281 48. 9818 80. 0272 10. 0904 10.4368 83. 4448 October 99 9743 99 9459 48. 8575 83. 5458 11.2215 11. 0485 88 5946 November 99.9866 99.9530 48. 7777 85.4865 11.4709 11.2730 95.4626 December 99.6543 99.9586 48.8114 88. 3177 11. 5058 11.3327 97.7408 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

JANUARY, 1928 FEDERAL RESERVE BULLETIN 61 FOREIGN EXCHANGE RATES, 1919-1927: MONTHLY AVERAGES—Continued [In cents per unit of foreign currency] Canada Cuba Mexico Argentina Bolivia" Brazil Chile Colombia" Ecuador H Peruia Uruguay 1925 January 99.6895 99.9561 48.8800 91 0754 11. 7150 11.3469 99.0319 February 99.8620 100.0114 49.2673 90.3314 ! 11. 2673 10. 8432 95.4572 March 99 8714 99 9504 49.7439 89 7115 ' 11.0381 11. 0985 95.3146 April 99.9439 99- 0273 49.8718 86.8835 10. 6342 11.1692 94.3773 May 99.9975 99.9974 49.8962 90 2444 10. 3080 11. 3972 96.0228 June 99. 9982 99.9695 49. 6641 91. 3304 10.8919 11.3173 96.9738 July 100,0293 99.9148 49.6777 91.7477 1- 11. 3619 11.6912 98. 5281 August 100. 0334 99.8907 49.5826 91.7042 ! 12.1335 11.9138 99.8935 September 99. 9860 99.8500 49. 3519 91 7096 ! 13. 5188 12.0156 99. 9492 October 100.0914 ! 99.9209 49.1664 93.3565 14.8131 12.0565 101.1273 November 100.0788 99.9385 48.7879 94.4391 14.6126 12.1913 102.4778 December 99. 9569 99. 9145 48 7507 i 94 2131 14.1738 12.1558 101. 6423 1926 January 99. 8001 99.8976 48.5050 94.1328 34.5000 14.8368 12.0404 98.6250 22. 5000 389.1200 102.8820 February 99.6539 99. 9612 48.4993 93.2718 34.5000 14. 7818 12.1214 98.6250 22. 5000 384. 5909 103.1050 March 99. 6301 99 9542 48 5585 90. 3333 34". 5000 14.4893 12.0815 98.6250 22.5000 385.4722 102.1818 April 100.0385 99. 9213 48. 6571 90. 7873 34.5000 14.0085 12.1165 98. 6250 22. 5000 378. 2019 102. 7138 May 100.0744 99. 9446 48. 2787 91.3100 34.5000 14. 6784 12.0372 98.6250 22. 5000 368. 9000 103.0012 June . - - 100.1027 99.9317 48 8495 flifffi 34.0962 15.5196 12.0438 98.9279 20. 9856 368.4230 101. 7108 July 100.1265 99.9187 48.8692 92.0504 33.8077 15.5631 12.0500 99. 2885 17.6827 376. 5865 100.2504 August 100.1448 99.9206 48 7823 91. 9573 33. 7500 15.3715 12.1162 99.3750 16 8000 383 ifinO 100.1900 September 100.1382 99.9362 48.7301 92.2012 33.7500 15.1908 12.1292 98.2650 18.1875 389.1200 100.4096 October 100.0685 99.9252 48.0545 92. 7536 33.7500 13. 9768 12.1000 97.6656 18.1875 364.2200 100. 2104 November 100.1331 99.9496 47.1958 92.3854 33. 7500 12. 9696 12.0517 97.3200 18.2135 359. 3958 99.9004 December 99.9342 99.9150 46. 6718 93.2792 33.7500 11.8542 12.0362 97.3969 18.3125 357. 3269 101. 2588 1927 January 99.8393 99.9466 46.8267 93.8488 33.7500 11. 6752 12. 0236 98.0280 18.3125 361.1200 101. 5220 February 99. 8382 100.0679 47.0737 94. 7186 33.9432 11.8382 12. 0005 97.9468 18.3096 366.3636 101.4623 March 99. 9019 100.0265 47.0084 95.9811 34.0000 11.8452 12.0041 97.5663 18.3125 366. 5926 101. 2763 April 100.0942 100.0260 46.8681 96.1738 34.0000 11. 7965 12.0327 95.0181 18.3125 363.3077 101.9750 May 100.0658 99.9606 46. 5867 96.2008 34.0000 11.8084 12.0204 97.4688 18.3125 364. 6400 100.7088 June 99. 9360 99.9150 46.4197 96.4373 34.4231 11.8050 12.0235 97.4196 19.6019 374.4231 100.3708 July 99. 8520 99.9288 46. 5383 96.5540 34. 5950 11. 7916 12.0224 97.5345 19. 5750 374.6000 99.1684 August 99.9404 100.0073 47.3931 96.8448 34.7546 11.8237 12.0292 98.2798 19.3750 374.9626 100.1381 September 100.0497 99. 9524 47.7219 97.1248 34.8000 11.8596 12.0736 97.9872 19.3750 388. 5600 100.4052 October 100.1099 99. 9387 47.6667 97.1572 34.8000 11.9172 12.1712 97.4736 19.3750 384.1600 101.8796 November 100.1369 99.9289 47.9125 97.0521 34.8000 11.9333 12.1763 97.4950 19.3750 376.1458 103.3658 December. 99.8974 99.9154 48. 4506 97.2304 34.8000 11.9677 12. 2062 97.7381 19.3750 389.8500 103.8692 V zu e e n l e a - (M d C o e h l x l i a i n c r a ) an (S C h ta a h e n i l n g ) a hai d ( C Y o h l u l i a n a r n a ) H K o o n n g g India Japan Java S S m t e r e t a t n l i t e t s s - Turkey Egypt 1918 November i 123. 5000 35.7500 54.2190 December 124 3200 I 35.8800 52.8700 1919 January 124 3000 35.7500 51.9900 February 118 7000 35. 7500 51. 5400 March ! 112 1600 i 35.8300 51.0590 April ! 113 4500 35. 5240 51.3800 May | 123.1100 38. 3300 51.7450 June 124 8800 i 42.1000 51.4560 July_._ 123.5000 1 41. 6000 51.1000 August 130 0000 ! 41. 7000 51.0000 September 132.1900 j 43. 9400 50.8700 October __ 138. 6000 43. 6800 50.9100 November 153 9000 43.3000 50.9400 December 161.8800 45.5300 50.4180 1920 i January 161 3000 44.0050 49. 9700 February 161.0000 47. 6000 48. 5450 March-. 148.7000 47.8000 47. 5100 April 138.4000 46. 8200 48. 6250 May _- 119 8380 43 3100 51.4500 i June 106. 0500 41 0000 51 4100 July 103. 5500 38.3800 51. 6200 ! August 112.1000 36.4000 51. 5750 September 106.9000 33.6100 51.4100 i October 98. 7400 30. 5900 51 3000 November 91 3000 29.7000 50.7500 December 78.8300 26.9000 50.3450 1921 January 76.9000 28. 6100 48.7000 February 68.4000 27.7000 48. 6900 March 64. 2250 1 25.9500 48.5900 April 67.2970 ( 26.3000 48. 5000 May 68. 2700 1 26. 4700 48.5480 June - - 66. 3500 24. 5490 47.9740 j July 48. 6684 66.9250 49. 3200 23. 0588 48.0114 i 41.9840 August 49.4291 67.8580 50.0700 24. 2240 48.3690 1 41 8090 September 52. 5764 73.0000 52. 4400 26. 3900 48.2000 i 42 4finn October 56.8638 78. 4016 56.4892 27.4188 47. 6552 43.9204 November 54. 5870 75.9043 54.1404 26. 8739 47. 8961 45.4739 December 54. 6027 75.3162 54.2569 27. 4488 47. 9219 46. 8612 13 Averages based on daily quotations of closing rates as published by New York Journal of Commerce. 79290—28 5 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

62 FEDERAL RESERVE BULLETIN JANUARY, 1928 FOREIGN EXCHANGE RATES, 1919-1927 MONTHLY AVERAGES—Continued [In cents per unit of foreign currency] I V zu e e n l e a - " (M d C o e h l x l i a i n c r a ) an (S C h ta a h e n i l n g ) a hai H K o o n n g g India Japan Java" S S m t e r e t a t n l i t e t s s - Turkey Egypt 1922 January 54.1040 74.1456 54. 7536 54.9864 27.8104 47.6244 47.9296 February 52. 7445 72.1532 54.3632 53.9795 28.1427 47.3727 49.2959 March 51. 6278 70. 7541 53.3489 53.1767 27. 8215 47. 3485 49.5307 April 53.9196 73.9396 55.0540 54.7284 27. 8096 47. 3628 49.9928 May 57. 3781 78.9400 57.9819 57. 7796 28. 7508 47. 3554 50. 7592 June. 57.1938 79.0342 57. 6223 57. 7208 28.9112 47. 7504 51.1435 July___ 56. 7528 77. 8176 57. 3824 57. 9404 28. 8908 47. 7688 50. 7184 August 56.2559 76.9637 57. 0533 57. 5422 29. 0144 47. 7019 51. 3974 September __ 56.1500 77. 0140 56. 9696 57. 3080 I 28. 7412 48. 0996 51. 6440 October 54. 5508 74. 8500 55. 6424 55.9552 I 28. 8424 48.0732 51. 7840 November.. 52. 4842 71. 8725 53. 4783 i 53.8150 I 29. 5108 48. 3729 52. 0058 December.._ 52. 0288 71. 0444 52.8144 | 53.2288 30. 6488 48. 8500 ; 53 nmn 1923 January 52. 2985 71.9331 52.8262 53. 4246 31. 7262 | 48. 7454 54.1412 ! _ February— 52.0505 71. 8191 52. 8741 52. 9691 31.8495 | 48. 4359 54. 8532 March. 54. 5333 75. 5300 55. 3144 55. 3804 31. 5659 i 48.4559 54. 8133 April 53. 8192 74. 4964 54. 6136 54. 8180 31.3460 ! 54.7328 May 53. 8415 74. 5342 54. 5512 54. 7958 31.0812 i 49.0785 54.2635 June 52.1315 72.1746 53.2738 53.2085 30.9919 j 49.0450 53. 8458 July... 50. 8260 70.0292 52.1568 52. 0356 30.8036 I 48. 7892 . .. 53.2684 August 50. 5015 69. 7096 51.0748 51. 8746 30. 4608 I 48. 8765 53.2485 September. _ 51.1579 70. 7850 51. 3058 52. 3821 30. 6017 ! 48. 6200 53 1896 October 50.6923 69.9465 51.1050 51. 8512 31.0627 i 48.8092 52.9831 November. _ 50. 7375 70. 7600 50.9250 50. 8592 30.8600 j 48.3742 51. 7292 December— 51. 3356 72.2480 51.2148 50.8648 31.0052 ; 47.0104 50. 8476 1924 January 50. 3727 70.2704 50.4138 50.2081 30. 4473 44. 8965 50. 3481 February 51. 0109 71.2026 50. 8748 50. 6070 30.3235 , 45.4265 50 5587 March 50. 3858 J69.9965 50. 4650 50. 4927 29.8623 I 42.9015 50. 2777 April 50.5235 69.7423 50. 9015 51.1292 30. 4035 40.9300 50. 5012 May 51. 3058 70. 8777 51. 7958 51. 7965 30. 5796 40.1865 50. 5312 June. 51. 2844 71. 3724 51. 9372 51.9368 30.4876 41.0824 50.1892 July... 51. 4646 71. 6708 52.3115 52.2962 31.2531 41.3492 50. 5196 ! August 52. 7200 i 73.3254 53.0692 63. 3154 32.2642 41.2608 51. 7623 September __ 53.9044 I 75.2680 53. 7176 53. 4596 32. 5188 40. 5972 51. 5144 October 55.0792 i 76.9792 55.1500 54. 3600 33. 6922 38. 7942 51.8312 N D o e v ce e m m b b e e r r . . . - . 5 5 5 5 . . 2 3 1 1 1 0 2 0 ! ! 7 7 6 5 . . 4 3 6 0 6 0 9 9 5 5 5 6 . . 2 6 0 7 0 4 0 3 5 5 4 5 . .2 8 4 5 8 8 1 7 3 3 4 5 . . 2 3 8 9 8 2 8 2 3 3 8 8 . . 4 5 4 1 0 8 0 3 5 5 3 3 . . 1 9 0 90 6 5 5 l" " 1925 January 55.4962 75.3423 56.7150 55. 5458 35.7065 38. 4546 55. 3104 February 55. 0854 75.2614 56.4695 55. 3495 35.7309 39. 0791 55. 3423 March 53. 6488 73. 3612 54. 8958 54.2692 35. 6662 40.9009 55.1008 April. 53,5550 73.2320 54. 8050 54. 0973 35. 6023 41. 7596 55.4204 May 54.2324 74. 2588 55.6656 54. 6240 36.2324 41.9130 56.3080 June ._- 55. 8931 76. 0881 56.9085 56.0223 36.4815 40. 8258 56. 5823 July 56.1400 76.5569 57.4646 56.8469 36. 6104 41.0781 56.6300 August 56. 5546 77.2938 57. 6658 57. 3088 36.6227 40.9|8Q7777 56, 035 L September. _ 57.5656 78.4664 59. 2848 59. 3152 36.6332 40. 7488 56. 5876 October 57.4269 77.9004 59.1508 59. 3369 36. 5973 40.9723 50. 5127 November __ 55. 7704 75. 8161 57.2074 57. 8143 36.6187 42. 3252 50.0205 December.._ 55.1781 75.6788 56.6581 57.7119 36. 6412 43.1931 I. 50.0254 1926 l January 19.3500 54.2888 '.74.7528 55.7232 58.0748 36.6852] 44.1696 40.7526 I 56.6150 I 52.65C0 i 498.0496 February 19.3886 53. 7464 73. 7351 55.5132 I 57. 8636 36.7600 i 45.4045 ! 40.5347 56.0327 j 52.2905 498.6159 March 19.4000 52.8466 i 72. 7118 54.6885 | 56. 3130 36.5756 ! 45.3915 ! 40.3856 56.6256 | 51.5152 ; 498.4222 April _ 19.4000 51.4431 ! 70. 8746 52.5431 i 54.6377 36.1823 i 46.6442 i 40.3630 56.5535 i 50.3331 : 498.6135 May 19,4000 52.0716 ; 71.7764 52.8508 i 55.0800 36. 2592 46.9472 :: 40.4838 50.2004 I 52.81% '• 498.4404 June 19.4000 52.2712 72.1704 52.9396 I 55.2185 36.2946 40.8454 ! 40.4315 , 56.2009 I 53.1850 498.8758 July 19. 3231 51.7104 71. 3031 50.8196 ! 54.5919 36.2862 j 47.0085 ! 40.4736 ! 50.2092 : 55.1773 498. 5858 August 19.3500 50.1402 68.6931 49.8431 \ 53.1954 36.3642 i 47.8031 j 40.4700 i 50.1512 | 55.0EG0 ! 498.0808 September.. 19.0000 48.2468 66.6028 47.3080 i 52.2816 30. 3288 i 48.4000 ! 40.3103 ! 50.0730 i 52.4312 | 497.6740 October 19.0000 44.6668 • 59.9760 42.5356 I 47. 7684 30.1490 : 48.6612 I 40.3125 i 56,0728 i 51.0884 ! 497. 2896 November. _ 19.0000 43.7688 ! 59.4254 42.5542 47.4567 36.0207 49.0650 ! 40.2813 : 55.9790 i 50.2033 i 497.1150 December... 19. 0508 43.7735 i 58. 9704 42.4900 I 47. 5938 36.04G5 48.G373 i 40.2470 i 55.9400 i 50.19C0 ; 497. 3392 1927 January 19. 0600 45. 2068 61.6688 43.9196 : 49.0632 36.4104 48. 8108 40. 2375 55.9616 j 50.4452 •. 497.4868 February 18. 7641 46.5273 63. 7764 45.1186 : 50. 3605 36.2968 48. 8350 40.1756 55.9023 50.8891 i 497.2877 March 18. 7500 44.1341 60. 5048 42.8956 : 48. 6855 30. 3004 49.1411 40.1702 55.9556 ! 50.3122 i 497. 6670 April.. 18.7500 45. 5388 62.0138 43.9062 49.6865 30.1423 48.3738 40.1503 55.9535 i 50.9035 i 497. 8981 May 18. 7500 45. 6136 62.1680 43.6964 ' 49. 2716 30.2332 47.0832 40.1038 55.9896 | 52. 2232 497. 9792 June 18. 7620 45. 5077 62. 7362 44.5215 49. 0742 30.1973 46.0896 40. 2079 55.1)807 i 51.£992 497. 8950 July 19.1280 44. 6004 62. 2760 43.5804 i 48. 9772 30.1108 47.1312 40.1903 55.9000 i 51.0544 497. 7768 August 19.1552 43. 3807 60. 3781 42.6259 : 48.1600 36.1252 47. 3322 40.1740 55.9711 I 49.9774 498.2844 September.. 19.1700 43. 9572 61.2068 43.2164 ! 48.4980 36. 3350 46.8248 40.1675 55.0908 ! 50. (JC40 October 19.1700 44.7376 61. 8328 44.0600 ' 48. 8552 36. 4092 46. £664 40.2618 50.0332 i 52. 8024 499. 2S00 November.. 19.1700 45. 5958 63. 2663 44.8638 : 49. 7917 30. 4504 45.9796 40.4090 50.0087 J 52.4871 499. 6888 December... 19.1700 45.9092 45.1877 ; 50.3085 36.7369 46.1881 40.5319 56.7269 ;_ 14 Averages based on daily quotations of closing rates as published by New York Journal of Commerce. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

JAJXTJAHY, 1928 FEDERAL RESERVE BULLETIN 63 LAW DEPARTMENT REGULATIONS OF THE FEDERAL RESERVE BOARD WASHINGTON, Dece?nber 22 1927. are requested to see that each member bank in their } To All Member Banks: respective districts receives at least one copy of this official edition of the board's regulations. The Federal Reserve Board transmits herewith a Instructions which govern only Federal reserve new issue of all of its regulations applicable to member agents or Federal reserve banks will be covered in banks. Since the issuance of the last edition of the separate letters or regulations, as in the past. board's regulations under date of August 15, 1924, the By order of the Federal Reserve Board. Federal reserve act has been amended by the act of February 25, 1927, and it has become necessary to WALTER L. EDDY, Secretary. amend certain of the board's regulations to conform to the amendments contained in that act. The board has also taken this occasion to make a number of other amendments to its regulations which experience has REGULATION A, SERIES OF, 1928 proven to be necessary or desirable. (Superseding Regulation A of 1924) Regulation A has been amended in a number of DISCOUNTS UNDER SECTIONS 13 AND 13a minor details, and there has been inserted in the regulation the substance of the board \s rulings with regard ARTICLE A. NOTES, DRAFTS, AND BILLS OF EXCHANGE to the rediscount by Federal reserve banks of paper acquired from nonmember banks. SECTION I.—General statutory provisions Regulation D has been amended in several particulars, the most important of which is Section IV dealing Any Federal reserve bank may discount for any of with penalties for deficiencies in reserves, which has its member banks any note, draft, or bill of exchange: been changed in such a way as to require member Provided— banks in cities where Federal reserve banks or branches (a) It has a definite maturity at the time of disthereof are located and member banks in such other count of not more than 90 days, exclusive of days of cities as the Federal Reserve Board may designate grace; except that (1) if drawn or issued for an from time to time to compute their reserves on the agricultural purpose or based on livestock, it may basis of average daily net deposit balances covering have a maturity at the time of discount of not more semiweekly periods instead of weekly periods as than nine months, exclusive of days of grace, and (2) heretofore. Provision has also been made for the certain bills of exchange payable at sight or on demand better enforcement of the provisions regarding the are eligible even though they have no definite mamaintenance of reserves. turity (see Section VII, below); Regulation F has been changed so as to regulate (b) It has been issued or drawn for an agricultural, more completely the exercise of trust powers by industrial, or commercial purpose, or the proceeds national banks, and a provision has been inserted to have been used' or are to be used for such a purpose, cover the situation where a State bank, trust com- or it is a note, draft, or bill of exchange of a factor pany, or sayings bank having trust business consolidates issued as such making advances exclusively to prowith a national bank under the provisions of the act ducers of staple agricultural products in their raw of November 7, 1918, as amended by the act of Feb- state; ruary 25, 1927. (c) It was not issued or drawn for the purpose of Regulation G, which formerly regulated the making carrying or trading in stocks, bonds, or other investof loans by national banks on farm land and other real ment securities, except bonds and notes of the Govestate, has been eliminated altogether in view of the ernment of the United States; provisions of the act of February 25, 1927, conferring id) The aggregate of notes, drafts, and bills bearregulatory powers upon the Comptroller of the Cur- ing the signature or indorsement of any one borrower, rency; and there has been inserted, in lieu of the pre- whether a person, company, firm, or corporation, disvious Regulation G, the regulation promulgated by the counted for any one member bank, whether State or board under date of December 9, 1926, governing the National, shall at no time exceed 10 per cent of the rediscount of notes secured by adjusted service certifi- unimpaired capital and surplus of such bank; but this cates, which wTas formerly designated as Regulation M, restriction shall not apply to the discount of bills of Series of 1926. exchange drawn in good faith against actually exist- Regulation H has been amended so as to conform to ing values; the amendments made to section 9 of the Federal (e) It is indorsed by a member bank; and reserve act by the act of February 25, 1927. (/) It conforms to all applicable provisions of this Regulation I has been amended in a few minor par- regulation. ticulars and the provision regarding the surrender of No Federal reserve bank may discount for any Federal reserve bank stock by a member bank which member State bank or trust company any of the goes into voluntary liquidation has been simplified. notes, drafts, or bills of exchange of any one borrower Regulation K was not amended except by the incor- who is liable for borrowed money to such State bank poration therein of amendments adopted from time to or trust company in an amount greater than that time during the year 1927, which have previously been which could be borrowed lawfully from such State announced. bank or trust company were it a national banking No material changes have been made in Regulations association. B, C, J, and L. Any Federal reserve bank may make advances to This issue of the board's regulations becomes effec- its member banks on their promissory notes for a tive on January 3, 1928. The Federal reserve banks period not exceeding 15 days, provided that they are Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

64 FEDERAL RESERVE BULLETIN JANUARY, 1928 secured by notes, drafts, bills of exchange, or bankers* ditional promise, in writing, signed by the maker, to acceptances which are eligible for discount or for pur- pay, in the United States, at a fixed or determinable chase by Federal reserve banks, or by the deposit or future time, a sum certain in dollars to order or to pledge of bonds or notes of the United States. bearer. (b) Evidence of eligibility and requirement of state- SECTION II.—General character of notes, drafts, and bills ments.—A Federal reserve bank must be satisfied by of exchange eligible reference to the note or otherwise that it is eligible for discount, and the member bank shall certify in its The Federal Reserve Board, exercising its statutory application whether a financial statement of the right to define the character of a note, draft, or bill borrower is on file with it. of exchange eligible for discount at a Federal reserve A recent financial statement of the borrower must bank, has determined that— be on file with the member bank if it has discounted (a) It must be a negotiable note, draft, or bill of the note for a nondepositor or a nonmember bank, and exchange which has been issued or drawn, or the proin all other cases unless— ceeds of which have been used or are to be used in (1) It is secured by a warehouse, terminal, or other the first instance, in producing, purchasing, carrying, or marketing goods 1 in one or more of the steps of the similar receipt covering goods in storage, by a valid prior lien on livestock which is being marketed or process of production, manufacture, or distribution, fattened for market, or by bonds or notes of the United or for the purpose of carrying or trading in bonds or States; or notes of the United States, and the name of a party (2) The aggregate of obligations of the borrower to such transaction must appear upon it as maker, discounted and offered for discount at the Federal drawer, acceptor, or indorser. reserve bank by the member bank is less than a sum (6) It must not be a note, draft, or bill of exchange equal to 10 per cent of the paid-in capital of the member the proceeds of which have been or are to be advanced bank and is less than $5,000. or loaned to some other borrower, except as to paper Whenever the borrower has closely affiliated or described below under Sections VI (6) and VIII. subsidiary corporations or firms, the borrower's (c) It must not be a note, draft, or bill of exchange financial statement shall be accompanied by separate the proceeds of which have been used or are to be financial statements of such affiliated or subsidiary used for permanent or fixed investments of any kind, corporations or firms, unless the statement of the such as land, buildings, or machinery, or for any borrower clearly indicates that such note is both other capital purpose. eligible from a legal standpoint and acceptable from a (d) It must not be a note, draft, or bill of exchange credit standpoint or unless financial statements of such the proceeds of which have been used or are to be affiliated or subsidiary corporations or firms are on used for investments of a purely speculative character. file with the Federal reserve bank. (e) It may be secured bv the pledge of goods or A Federal reserve bank shall use its discretion in collateral of any nature, including paper which is taking the steps necessary to satisfy itself as to eligiineligible for discount, provided it (the note, draft, or bility. Compliance of a note with Section II (c) may bill of exchange) is otherwise eligible. be evidenced by a statement of the borrower showing a SECTION III.—Applications for discount reasonable excess of quick assets over current liabilities. A Federal reserve bank may, in any case, require the Every application for the discount of notes, drafts, financial statement of the borrower to be filed with it. or bills of exchange must contain a certificate of the member bank, in form to be prescribed by the Federal SECTION V.—Drafts, bills of exchange, and trade reserve bank, that— acceptances (1) To the best of its knowledge and belief, such notes, drafts, or bills of exchange have been issued or (a) Definition.—A draft or bill of exchange, within drawn, or the proceeds thereof have been or are to be the meaning of this regulation, is defined as an unconused, for such a purpose as to render them eligible for ditional order in writing, addressed by one person to discount under the terms of this regulation; and another, signed by the person giving it, requiring the (2) That such notes, drafts, or bills of exchange have person to whom it is addressed to pay in the United not been acquired from a nonmember bank, or, if so States, at a fixed or determinable future time, a sum acquired, that the applying member bank has received certain in dollars to the order of a specified person; permission from the Federal Reserve Board to discount and a trade acceptance is defined as a draft or bill of with the Federal reserve bank paper acquired from nonexchange, drawn by the seller on the purchaser of member banks. goods sold,2 and accepted by such purchaser. In the case of a member State bank or trust com- (6) Evidence of eligibility and requirement of statepany, every such application must contain a certificate ments.—A Federal reserve bank shall take such steps or guaranty to the effect that the borrower is not liable, as it deems necessary to satisfy itself as to the eligibility and will not be permitted to become liable during the of the draft, bill, or trade acceptance offered for distime his paper is held by the Federal reserve bank, to count and may require a recent financial statement of such bank or trust company for borrowed money in an one or more parties to the instrument. The draft, amount greater than that which could be borrowed bill, or trade acceptance should be drawn so as to lawfully from such State bank or trust company were evidence the character of the underlying transaction, it a national banking association. but if it is not so drawn evidence of eligibility may consist of a stamp or certificate affixed by the acceptor or SECTION IV.—Promissory notes drawer in a form satisfactory to the Federal reserve (a) Definition.—A promissory note, within the bank. meaning of this regulation, is defined as an uncon- * A consignment of goods or a conditional sale of goods can not be con- * When used in this regulation the word "goods" shall be construed sidered "goods sold" within the meaning of this clause. The purchase to include goods, wares, merchandise, or agricultural products, includ- price of goods plus the cost of labor in effecting their installation may be ing livestock j included in the amount for which the trade acceptance is drawn. 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JANUARY, 1923 FEDERAL RESERVE BULLETIN 65 SECTION VI.—Agricultural payer termediate credit bank shall at no time exceed an amount equal to the paid-up and unimpaired capital (a) Definition.—Agricultural paper, within the mean- and surplus of such Federal intermediate credit bank, ing of this regulation, is defined as a negotiable note, (e) Limitations.—The Federal Reserve Board predraft, or bill of exchange issued or drawn, or the scribes no limitation on the aggregate amount of notes, proceeds of which have been or are to be used, for drafts, bills of exchange, and acceptances with maturiagricultural purposes, including the production of ties in excess of three months, but not exceeding six agricultural products, the marketing of agricultural months, exclusive of days of grace, which may be disproducts by the growers thereof, or the carrying of counted by any Federal reserve bank; but the aggreagricultural products by the growers thereof pending gate amount of notes, drafts, bills of exchange, and orderly marketing, and the breeding, raising, fatten- acceptances with maturities in excess of six months, ing, or marketing of livestock, and which has a matur- but not exceeding nine months, which may be disity at the time of discount of not more than nine counted by any Federal reserve bank shall not exceed months, exclusive of days of grace. 10 per cent of its total assets. (b) Paper of cooperative marketing associations.— Under the express terms of section 13a, notes, drafts, SECTION VII.—Sight drafts secured by bills of lading bills of exchange, or acceptances issued or drawn by cooperative marketing associations composed of pro- A Federal reserve bank may discount for any of its ducers of agricultural products are deemed to have member banks bills of exchange payable at sight or been issued or drawn for an agricultural purpose, if the on demand which— proceeds thereof have been or are to be— (a) Are drawn to finance the domestic shipment of (1) Advanced by such association to any members nonperishable, readily marketable, staple agricultural thereof for an agricultural purpose; or products; and (2) Used by such association in making payments (b) Are secured by bills of lading or other shipping to any members thereof on account of agricultural documents conveying or securing title to such staples. products delivered by such members to the association; All such bills of exchange shall be forwarded promptly or for collection, and demand for payment shall be made (3) Used by such association to meet expenditures promptly, unless the drawer instructs that they be incurred or to be incurred by the association in con- held until arrival of car, in which event they must be nection with the grading, processing, packing, prepara- presented for payment within a reasonable time after tion for market, or marketing of any agricultural pro- notice of arrival of such staples at their destination duct handled by such association for any of its mem- has been received. In no event shall any such bill be bers. held by or fpr the account of a Federal reserve bank These are not the only classes of paper of such asso- for a period in excess of 90 days. ciations which are eligible for discount, however, and In discounting such bills Federal reserve banks may any other paper of such associations which complies compute the interest to be deducted on the basis of the with the applicable requirements of this regulation estimated life of each bill and adjust the amount thus may be discounted on the same terms and conditions deducted after payment of such bills to conform to as the paper of any other person or corporation. the actual life thereof. Paper of cooperative marketing associations the proceeds of which have been or are to be used (1) to SECTION VIII.—Factors1 paper defray the expenses of organizing such associations, or Notes, drafts, and bills of exchange of factors issued (2) for the acquisition of warehouses, for the purchase as such for the purpose of making advances exclusively or improvement of real estate, or for any other perto producers of staple agricultural products in their manent or fixed investment of any kind, are not eligible raw state are eligible for discount with maturities not for discount, even though such warehouses or other in excess of 90 days, exclusive of days of grace, irreproperty are to be used exclusively in connection with spective of the requirements of Sections II (a) and the ordinary operations of the association. (c) Eligibility.—To be eligible for discount, agricul- ii (&). tural paper, whether a note, draft, bill of exchange, or SECTION IX.—Paper acquired from nonmember banks trade acceptance, must comply with the respective sections of this regulation which would apply to it if (a) Except with the permission of the Federal Reits maturity were 90 days or less. serve Board, no Federal reserve bank shall discount (d) Discounts for Federal intermediate credit banks.— any paper acquired by a member bank from a non- Any Federal reserve bank may discount agricul- member bank or bearing the signature or indorsement tural paper for any Federal intermediate credit bank; of a nonmember bank; except that Federal reserve but no Federal reserve bank shall discount for any banks may discount bankers' acceptances and other Federal intermediate credit bank any such paper eligible paper bearing the signature or indorsement of a which bears the indorsement of any nonmember State nonmember bank, if such paper was bought by the bank or trust company which is eligible for member- offering bank in good faith on the open market from ship in the Federal reserve system under the terms of some party other than the nonmernber bank. section 9 of the Federal reserve act as amended. In (b) Applications for permission to rediscount paper discounting such paper each Federal reserve bank acquired from nonmember banks shall be made in shall give preference to the demands of its own member writing by the member banks which desire to offer banks and shall have due regard to the probable such paper for rediscount and shall state fully the facts future needs of its own member banks; and no Federal which gave rise to each application and the reasons reserve bank shall discount paper for any Federal in- why the applying member banks feel justified in seektermediate credit bank when its own reserves amount ing such permission. Such applications shall be adto less than 50 per cent of its own aggregate liabilities dressed to the Federal Reserve Board, but shall be for deposits and Federal reserve notes in actual circu- filed with the Federal reserve agent, who shall forward lation. The aggregate amount of paper discounted them promptly to the Federal Reserve Board with his bv all Federal reserve banks»;for anv one Federal in- recommendations. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

66 FEDERAL RESERVE BULLETIN JANUARY, 1928 (c) The Federal Reserve Board hereby grants its accepting bank must remain actually^ secured throughpermission for Federal reserve banks to discount for out the life of the acceptance, and in the case of the member banks paper bearing the signature or indorse- acceptances of member banks this security must conment of Federal intermediate credit banks, if such sist of shipping documents, warehouse receipts, or other paper is otherwise eligible under the law and this regu- such documents, or some other actual security growing lation. out of the same transaction as the acceptance, such as documentary drafts, trade acceptances, terminal re- ARTICLE B.—BANKERS' ACCEPTANCES 3 ceipts, or trust receipts which have been issued under such circumstances, and which cover goods of such a SECTION X.—Definition character, as to insure at all times a continuance of an A banker's acceptance within the meaning of this effective and lawful lien in favor of the accepting bank, regulation is defined as a draft or bill of exchange, other trust receipts not being considered such actual whether payable in the United States or abroad and security if they permit the customer to have access to whether payable in dollars or some other money, of or control over the goods. which the acceptor is a bank or trust company, or a A Federal reserve bank may also discount any bill firm, person, company, or corporation engaged gen- drawn by a bank or banker in a foreign country or erally in the business of granting bankers' acceptance dependency or insular possession of the United States credits. for the purpose of furnishing dollar exchange as provided in Regulation C, provided that it has a maturity SECTION XI.—Eligibility at the time of discount of not more than three months, A Federal reserve bank may discount any such bill exclusive of days of grace. bearing the indorsement of a member bank and having a maturity at the time of discount not greater than that SECTION XII.—Maturities prescribed by Section XII (a), which has been drawn under a credit opened for the purpose of conducting or settling accounts resulting from a transaction or trans- (a) legal requirements.—No such acceptance is eliactions involving any one of the following: gible for discount which has a maturity at the time of (1) The shipment of goods between the United discount in excess of 90 days' sight, exclusive of days States and any foreign country, or between the United of grace, except that acceptances drawn for agricultural States and any of its dependencies or insular posses- purposes and secured at the time of acceptance by sions, or between foreign countries, or between de- warehouse receipts or other such documents conveying pendencies or insular possessions arid foreign countries; or securing title covering readily marketable staples may be discounted with maturities at the time of dis- (2) The shipment of goods within the United States, count of not more than six months' sight, exclusive of provided shipping documents conveying security title days of grace. are attached at the time of acceptance; or (3) The storage in the United States or in any for- (b) General conditions as to maturity of domestic eign country of readily marketable staples,4 proVided acceptances.—Although a Federal reserve bank may that the bill is secured at the time of acceptance by a legally discount an acceptance having a maturity at the warehouse, terminal, or other similar receipt, convey- time of discount not greater than that prescribed under ing security title to such staples, issued by a party (a), it may decline to discount any acceptance the independent of the customer, and provided further that maturity of which is in excess of the usual or customary the acceptor remains secured throughout the life of the period of credit required to finance the underlying acceptance. In the event that the goods must be with- transaction or which is in excess of that period reasondrawn from storage prior to the maturity of the ac- ably necessary to finance such transaction. Since the ceptance or the retirement of the credit, a trust receipt purpose of permitting the acceptance of drafts secured or other similar document covering the goods may be by warehouse receipts or other such documents is to substituted in lieu of the original document, provided permit of the temporary holding of readily marketthat such substitution is conditioned upon a reason- able staples in storage pending a reasonably prompt ably prompt liquidation of the credit. In order to sale, shipment, or distribution, no such acceptance insure compliance with this condition it should be re- should have a maturity in excess of the time ordinarily quired, when the original document is released, either necessary to effect a reasonably prompt sale, ship- (a) that the proceeds of the goods will be applied ment, or distribution into the process of manufacture within a specified time toward a liquidation of the or consumption. acceptance credit or (6) that a new document, similar to the original one, will be resubstituted within a SECTION XIII.—Evidence of eligibility specified time. Provided, That acceptances for any one customer in A Federal reserve bank must be satisfied, either excess of 10 per cent of the capital and surplus of the by reference to the acceptance itself or otherwise, that the acceptance is eligible for discount under the 3 For regulations governing the acceptance by member banks of drafts terms of the law and the provisions of this regulation. and bills of exchange drawn on them, see Regulation C, p. 67. The bill itself should be drawn so as to evidence the *A readily marketable staple within the meaning of these regulations mayrf be defined as an article of commerce, agriculture, or industry of character of the underlying transaction, but if it is such uses as to make it the subject of constant dealings in ready markets not so drawn evidence of eligibility may consist of a with such frequent quotations of price as to make (a) the price easily stamp or certificate affixed by the acceptor in form and definitely ascertainable and (5) the staple itself easy to realize upon by sale at any time. satisfactory to the Federal reserve bank. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

JANUARY, 1928 FEDERAL RESERVE BULLETIN 67 REGULATION B, SERIES OF 1928 REGULATION C, SERIES OF 1928 (Superseding Regulation B of 1924) (Superseding Regulation^ of.1924) OPEN MARKET PURCHASES OF BILLS OF EXCHANGE, T U R N A D D E E R S A E C C C T E I P O T N A 1 N 4 CES, AND BANKERS' ACCEPTANCES ACCEPTANCE BY MEM OF B E E R X C B H A A N N ES G E O * F DRAFTS AND BILLS SECTION I.—General statutory provisions ARTICLE A. ACCEPTANCE OF DRAFTS OR BILLS OF Section 14 of the Federal reserve act provides that, EXCHANGE DRAWN AGAINST DOMESTIC OR FOREIGN under rules and regulations to be prescribed by SHIPMENTS OF GOODS OR SECURED BY WAREHOUSE the Federal Reserve Board, Federal reserve banks RECEIPTS COVERING READILY MARKETABLE STAPLES may purchase and sell in the open market, at home or abroad, from or to domestic or foreign banks, firms, SECTION I.—Statutory provisions corporations, or individuals, bills of exchange of the kinds and maturities made eligible by the act for ^ Under the provisions of the sixth paragraph of secdiscount and bankers' acceptances, with or without tion 13 of the Federal reserve act, as amended, any the indorsement of a member bank. member bank may accept drafts or bills of exchange drawn upon it, having not more than six months' SECTION II.—General character of bills and acceptances sight to run, exclusive of days of grace, which grow out of transactions involving the importation or exportation of goods; or which grow out of transactions in- ^ The Federal Reserve Board, exercising its statutory volving the domestic shipment of goods, provided right to regulate the purchase of bills of exchange shipping documents conveying or securing title are atand acceptances, prescribes that— tached at the time of acceptance; or which are secured at (a) Any banker's acceptance or bill of exchange the time of acceptance by a warehouse receipt or other which is eligible for discount under the terms of such document conveying or securing title covering Regulation A is eligible for purchase by Federal readily marketable staples.6 This paragraph limits reserve banks in the open market, with or without the amount which any bank shall accept for any one the indorsement of a member bank, if— person, company, firm, or corporation, whether in a (1) It has been accepted by the drawee prior to foreign or domestic transaction, to an amount not expurchase; or ceeding at any time, in the aggregate, more than 10 (2) It is accompanied or secured by shipping docuper cent of its paid-up and unimpaired capital stock ments or by warehouse, terminal, or other similar and surplus. This limit, however, does not apply in receipts conveying security title; or any case where the accepting bank remains secured (3) It bears a satisfactory bank indorsement; either by attached documents or by some other actual (6) A banker's acceptance growing out of a transsecurity growing out of the same transaction as the acaction involving the importation or exportation of ceptance. A trust receipt which permits the customer goods may be purchased if it has a maturity not in to have access to or control over the goods will not be excess of six months, exclusive of days of grace, proconsidered by Federal reserve banks to be "actual vided that it conforms in other respects to the applisecurity" within the meaning of section 13. A bill of cable requirements of Regulation A; and lading draft, however, is "actual security" even after (c) A banker's acceptance growing out of a transac- the documents have been released, provided that the tion involving the storage within the United States of draft is accepted by the drawee upon or before the surgoods actually under contract for sale and not yet de- render of the documents. The law also provides that livered or paid for may be purchased, provided that any bank may accept such bills up to an amount not the acceptor is secured by the pledge of such goods, and exceeding at any time, in the aggregate, more than oneprovided further, that the acceptance conforms in half of its paid-up and unimpaired capital stock and other respects to the applicable requirements of Regu- surplus; or, with the approval of the Federal Reserve lation A. Board, up to an amount not exceeding at any time, in SECTION III.—Statements the aggregate, more than 100 per cent of its paid-up and unimpaired capital stock and surplus. In no A bill of exchange, unless indorsed by a member bank, event, however, shall the aggregate amount of acceptis not eligible for purchase until a satisfactory stateances growing out of domestic transactions exceed 50 ment has been furnished of the financial condition of per cent of such capital stock and surplus. one or more of the parties thereto. A banker's acceptance, unless accepted or indorsed by a member bank, is not eligible for purchase until the * For regulations governing the rediscount of bankers' acceptances by acceptor has furnished a satisfactory statement of its Federal reserve banks, see Regulation A, p. 66. financial condition in form to be approved by the Fed- ma • y A b r e ea d d e il n y n e m d a r a k s e a ta n b l a e r t s ic ta le p le o f w c i o th m in m t e h rc e e m , e a a g n ri i c n u g l t o u f r e th , e o s r e i r n e d g u u s la tr t y io o ns f eral reserve bank and has agreed in writing with a such uses as to make it the subject of constant dealings in ready markets Federal reserve bank to inform it upon request con- with such frequent quotations of price as to make (a) the price easily and definitely ascertainable, and (6) the staple itself easy to realize upon by cerning the transaction underlying the acceptance. sale at any time. 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68 FEDERAL RESERVE BULLETIN JANUARY, 1928 SECTION II.—Regulations are authorized to draw on member banks whose applications have been approved for the purpose of furnish- (1) Under the provisions of the law referred to ing dollar exchange. above the Federal Reserve Board has determined that The Federal Reserve Board reserves the right to any member bank, having an unimpaired surplus modify or on 90 days' notice to revoke its approval equal to at least 20 per cent of its paid-up capital, either as to any particular member bank or as to any which desires to accept drafts or bills of exchange foreign country or dependency or insular possession of drawn for the purposes described above, up to an the United States in which it has authorized banks or amount not exceeding at any time, in the aggregate, bankers to draw on member banks for the purpose of 100 per cent of its paid-up and unimpaired capital furnishing dollar exchange. stock and surplus, may file an application for that purpose with the Federal Reserve Board. Such application must be forwarded through the Federal reserve bank of the district in which the applying bank is REGULATION D, SERIES OF 1928 located. (2) The Federal reserve bank shall report to the (Superseding Regulation D of 1924) Federal Reserve Board upon the standing of the applying bank, stating whether the business and banking RESERVES OF MEMBER BANKS conditions prevailing in its district warrant the granting of such application. SECTION I.—Statutory provisions (3) The approval of any such application may be Section 19 of the Federal reserve act provides, in rescinded upon 90 days' notice to the bank affected. part, as follows: ARTICLE B. ACCEPTANCE OF DRAFTS OR BILLS OF BANK RESERVES EXCHANGE DRAWN FOR THE PURPOSE OF CREAT- SEC. 19. Demand deposits within the meaning of this act shall comprise ING DOLLAR EXCHANGE all deposits payable within thirty days, and time deposits shall comprise all deposits payable after thirty days, all savings accounts and certificates of deposit which are subject to not less than thirty days' notice before SECTION III.—Statutory provisions payment, and all postal savings deposits. Every bank, banking association, or trust company which is or which becomes a member of any Federal reserve bank shall establish and Section 13 of the Federal reserve act also provides maintain reserve balances with its Federal reserve bank as follows: that any member bank may accept drafts or bills of (a) If not in a reserve or central reserve city, as now or hereafter deexchange drawn upon it having not more than three fined, it shall hold and maintain with the Federal reserve bank of its months' sight to run, exclusive of days of grace, district an actual net balance equal to not less than seven per centum'of the aggregate amount of its demand deposits and three per centum of drawn, under regulations to be prescribed by the its time deposits. Federal Reserve Board, by banks or bankers in foreign (6) If in a reserve city, as now or hereafter defined, it shall hold and countries or dependencies or insular possessions of the maintain with the Federal reserve bank of its district an actual net balance equal to not less than ten per centum of the aggregate amount United States for the purpose of furnishing dollar of its demand deposits and three per centum of its time deposits: Proexchange as required by the usages of trade in the vided, however, That if located in the outlying districts of a reserve city respective countries, dependencies, or insular pos- or in territory added to such a city by the extension of its corporate charter, it may, upon the affirmative vote of five members of the Fedsessions. eral Reserve Board, hold and maintain the reserve balances specified No member bank shall accept such drafts or bills of in paragraph (a) hereof. (c) If in a central reserve city, as now or hereafter defined, it shall hold exchange for any one bank to an amount exceeding in and maintain with the Federal reserve bank of its district an actual net the aggregate 10 per cent of the paid-up and unim- balance equal to not less than thirteen per centum of the aggregate paired capital and surplus of the accepting bank unless amount of its demand deposits and three per centum of its time deposits: Provided, however, That if located in the outlying districts of a central the draft or bill of exchange is accompanied by docu- reserve city or in territory added to such city by the extension of its ments conveying or securing title or by some other corpoerate charter, it may, upon the affirmative vote of five members of adequate security. No member bank shall accept the Federal Reserve Board, hold and maintain the reserve balances specifid in paragraphs (a) or (&) thereof. such drafts or bills in an amount exceeding at any * * * ** time in the aggregate one-half of its paid-up and un- The required balance carried by a member bank with a Federal reserve impaired capital and surplus. This 50 per cent limit bank may, under the regulations and subject to such penalties as may is separate and distinct from and not included in the be prescribed by the Federal Reserve Board, be checked against and withdrawn by such member bank for the purpose of meeting existing limits placed upon the acceptance of drafts and bills liabilities: Provided, however, That no bank shall at any time make new of exchange as described under Article A of this loans or shall pay any dividends unless and until the total balance regulation. required by law is fully restored. In estimating the balances required by this act, the net difference of amounts due to and from other banks shall be taken as the basis for SECTION IV.—Regulations ascertaining the deposits against which required balances with Federal reserve banks shall be determined. Any member bank desiring to accept drafts drawn The various Liberty bond acts (act of April 24, 1917, by banks or bankers in foreign countries or dependsec. 7; act of September 24, 1917, sec. 8; act of April 4, encies or insular possessions of the United States for 1918, sec. 8) provide, in part, as follows: the purpose of furnishing dollar exchange shall first make an application to the Federal Reserve Board That the provisions * * * with reference to the reserves required setting forth the usages of trade in the respective to be kept by national banking associations and other member banks of the Federal reserve system, shall not apply to deposits of public countries, dependencies, or insular possessions in moneys by the United States in designated depositaries. which such banks or bankers are located. If the Federal Reserve Board should determine that SECTION II.—Definitions the usages of trade in such countries, dependencies, or possessions require the granting of the acceptance (a) Demand deposits.—The term "demand defacilities applied for, it will notify the applying bank posits" shall include all deposits which are payable of its approval and will also publish in the Federal within 30 days except "savings accounts," "time cer- Reserve Bulletin the name or names of those countries, tificates of deposit," and "postal savings deposits," as dependencies, or possessions in which banks or bankers defined below. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

JANUARY, 1928 FEDERAL RESERVE BULLETIN 69 (6) Time deposits.—The term "time deposits" serve bank of its district an actual net balance equal to shall include all "time deposits, open accounts," all 3 per cent of its time deposits plus— "savings accounts," all "time certificates of deposit," Seven per cent of its demand deposits if not in a and all "postal savings deposits," as defined below. reserve or central reserve city. (c) Time deposits, open accounts.—The term "time Ten per cent of its demand deposits if in a reserve deposits, open accounts" shall mean deposits not city, except that if located in an outlying district8 of evidenced by certificates of deposit or savings pass a reserve city or in territory added to such city by the books, in respect to which a written contract is en- extension of the city's corporate limits such bank may, tered into with the depositor at the time the deposit upon the affirmative vote of five members of the Fedis made that neither the whole nor any part of such eral Reserve Board, be permitted to maintain 7 per deposit may be withdrawn, by check" or otherwise, cent reserves against its demand deposits. except on a given date, not less than 30 days after Thirteen per cent of its demand deposits if located the date of deposit, or on written notice which must be in a central reserve city, except that if located in an given by the depositor a certain specified number of outlying district 8 of a central reserve city or in terdays in advance, in no case less than 30 days. ritory added to such city by the extension of the city's (d) Savings accounts.—The term "savings ac- corporate limits, such bank may, upon the affirmative counts" shall mean those deposits in respect to which— vote of five members of the Federal Reserve Board, (1) The pass book, certificate, or other similar form be permitted to maintain 7 per cent or 10 per cent of receipt must be presented to the bank whenever a reserves against its demand deposits. withdrawal is made, No reserves are required to be maintained against (2) The depositor may at any time be required by Government deposits as defined above. the bank to give notice of an intended withdrawal not A member bank exercising trust powers need not less than 30 days before a withdrawal is made, and maintain reserves against trust funds which it keeps (3) The bank's printed regulations, accepted by the segregated and apart from its general assets or which depositor at the time the account is opened, include it deposits in another institution to the credit of itself the above requirements. as trustee or other fiduciary. If, however, such funds (e) Time certificates of deposit.—A "time certifi- are mingled with the general assets of the bank, as cate of deposit" is defined as an instrument evidenc- permitted to national banks under authority of secing the deposit with a bank, either with or without tion 11 (ft) of the Federal reserve act, a deposit liability interest, of a certain sum specified on the face of the thereby arises against which reserves must be maincertificate payable in whole or in part to the depositor tained. In computing reserve requirements, trust or on his order— funds deposited in a member bank by another bank to |- (1) On a certain date, specified on the certificate, the credit of such other bank as trustee or other not less than 30 days after the date of the deposit, or fiduciary must be classified by the member bank as (2) After the lapse of a certain specified time sub- individual deposits rather than bank deposits. sequent to the date of the certificate, in no case less (6) Deductions allowed in computing reserves.— than 30 days, or Member banks in determining the amount against (3) Upon written notice, which the bank may at its which reserves must be carried may deduct: option require to be given a certain specified number of (1) From gross demand deposits, all Government dedays, not less than 30 days, before the date of repay- posits as defined above. ment, and (2) From the amount of balances due to other banks, (4) In all cases only upon presentation of the certifi- the amount of balances due from other banks (except cate at each withdrawal for proper indorsement or Federal reserve banks and foreign banks), including in surrender. the amount due to other banks certified, cashiers', and (/) Postal savings deposits.—The term "postal treasurers' checks outstanding, and including in the savings deposits" shall mean deposits of postal savings amount due from other banks out of town items placed funds in banks under the terms of the postal savings in the mail and charged to the account of correspondent act, approved June 25, 1910, as amended. banks, items with a Federal reserve bank in process of (g) Government deposits.—The term "Government collection, checks drawn on banks located in the same deposits" shall mean deposits of public moneys by the city, and exchanges for clearing houses. United States in designated depositaries.7 (c) Availability of checks as reserve.—Checks forwarded to a Federal reserve bank for collection or SECTION III.—Computation of reserves credit can not be counted as part of the minimum reserve balance to be carried by a member bank with its (a) Amounts of reserves to be maintained.—Every Federal reserve bank until such time as may be specimember bank of the Federal reserve system is required fied in the appropriate time schedule referred to in by law to maintain on deposit with the Federal re- Section IV of Regulation J. If a member bank draw against cheeks before such time, the draft will be charged against its reserve balance if such balance be 7 Deposits made by United States postmasters of Government funds, other than postal savings deposits, received by them in their official sufficient in amount to pay it; but any resulting imcapacity, constitute "Government deposits" within the meaning of this pairment of reserve balances will be subject to all the regulation and, when made in designated depositaries, are exempt from penalties provided by the act and by this regulation. the reserve requirements of section 19. The following classes of deposits, however, are not "Government deposits" within such meaning and are not exempt from reserve requirements: SECTION IV.—Penalties for deficiencies in reserves (1) Deposits of Philippine funds made by the Philippine Government and carried under the title, "Treasurer of the Philippine Islands cur- Inasmuch as it is essential that the law with respect rency reserve fund account." to the maintenance by member banks of the required (2) Deposits of Porto Rican funds made by the Porto Eican Govern- minimum reserve balances be strictly complied with, ment. (3) Deposits of Indian funds under the control of the Department of the Interior. s The term "outlying district" is construed to mean that portion of a (4) Deposits of States, counties, or municipalities. city which is located outside of, and at a considerable distance from, the (5) Deposits of the United States Shipping Board and the'Emergency recognized business and financial center of such city, and includes all Fleet Corporation. suburban districts within the corporate limits of such city. 79290—28 6 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

70 FEDERAL RESERVE BULLETIN JANUARY . 1928 the Federal Reserve Board, under authority vested in of 1 per cent per annum for each consecutive calendar it by section 19 of the Federal reserve act, hereby month thereafter in which the bank's reserve deficienprescribes the following rules governing penalties for cies are subject to the progressive penalty; provided deficiencies in reserves: that the maximum penalty charged shall not exceed (a) Basic penalty. 10 per cent per annum. (1) Deficiencies in reserve balances of member banks (d) Continued deficiencies.—Whenever any member in cities where Federal reserve banks or branches bank has an average deficiency in reserves for each thereof are located and in such other reserve cities as reserve computation period during six consecutive the Federal Reserve Board may designate from time to months, the Federal reserve agent shall promptly time will be computed on the basis of average daily report the fact to the Federal Reserve Board with a net deposit balances covering semiweekly periods. recommendation as to whether or not the board should: Deficiencies in reserve balances of member banks in (1) In the case of a national bank, direct the Compall other reserve cities will be computed on the basis of troller of the Currency to bring suit to forfeit the charter average daily net deposit balances covering weekly of such national bank pursuant to section 2 of the periods. Deficiencies in reserve balances of other Federal reserve act; or member banks will be computed on the basis of average (2) In the case of a State member bank, institute daily net deposit balances covering semimonthly proceedings to require such bank to surrender its stock periods. in the Federal reserve bank and to forfeit all rights and (2) Such computations shall be made as at the close privileges of membership pursuant to section 9 of the of business on days to be fixed by the Federal reserve Federal reserve act; or banks with the approval of the Federal Reserve Board. (3) In either case, take such other action as the Fed- (3) Penalties for such deficiencies will be assessed eral reserve agent may recommend or the Federal monthly on the basis of average daily deficiencies during Reserve Board may consider advisable. each of the reserve computation periods ending in the preceding calendar month. SECTION V.—Loans and dividends while reserves are (4) Such penalties shall be assessed at a basic rate of deficient 2 per cent per annum above the Federal reserve bank discount rate on 90-day commercial paper, in effect It is unlawful for any member bank the reserves of on the first day of the calendar month in which the which are at any time deficient to make any new loans deficiencies occurred. or pay any dividends unless and until the total reserves (6) Notice to directors of banks deficient in required by law are fully restored, and the payment reserves.—Whenever it shall appear that a bank is not of penalties for deficiencies in reserves does not exempt paying due regard to the maintenance of its reserves, member banks from this prohibition of law. As prothe Federal reserve agent will address a letter to each vided above, penalties for deficiencies in reserves are director of such bank calling attention to the situation computed on the basis of the average reserve balances and advising him of the requirements of the law and of for semiweekly, weekly, or semimonthly periods; but this regulation regarding the maintenance of reserves this prohibition of law applies whenever the reserves and the personal liability of the directors permitting are deficient for one day or more, regardless of whether violations of the law. or not the average reserve balances for the semiweekly, (c) Progressive penalty.—The Federal Reserve weekly, or semimonthly period are deficient. Board will also prescribe for any Federal reserve district, upon the application of the Federal reserve bank of that district, an additional progressive penalty for continued deficiencies in reserves, in accordance Vith REGULATION E, SERIES^OF 1928 the following rules: (1) When a member bank which is required to com- (Superseding Regulation[E of 1924) pute its reserves on a semiweekly basis has an average PURCHASE OF WARRANTS deficiency in reserves for 12 consecutive semiweekly periods, there shall be assessed, in addition to the SECTION I.—Statutory requirements penalty at the basic rate, a progressive penalty on semiweekly deficiencies occurring thereafter, until such Section 14 of the Federal reserve act reads in part as member bank has maintained the required average follows: reserve for eight consecutive semiweekly periods. Every Federal reserve bank shall have' power- (2) When a member bank which is required to ed To buy and sell, at home or abroad, bonds and notes of the United compute its reserves on a weekly basis has an average States, and bills, notes, revenue bonds, and warrants with a maturity from date of purchase of not exceeding six months, issued in anticipation deficiency in reserves for six consecutive weekly of the collection of taxes or in anticipation'of the receipt of assured reveperiods, there shall be assessed, in addition to the nues by any State, county, district, political subdivision, or municipality penalty at the basic rate, a progressive penalty on in the continental United States, including irrigation, drainage, and reclamation districts, such purchases to be made in accordance with rules weekly deficiencies occurring thereafter, until such and regulations prescribed by the Federal^ Reserve^ Board. member bank has maintained the required average reserve for four consecutive weekty periods. SE CTION II.—Definitions (3) When any other member bank has an average deficiency in reserves for three consecutive semimonthly Within the meaning of this regulation— periods, there shall be assessed, in addition to the The term "warrant" shall be construed to mean penalty at the basic rate, a progressive penalty on "bills, notes, revenue bonds, and warrants with a semimonthly deficiencies occurring thereafter, until maturity from date of purchase of not exceeding six such member bank has maintained the required average months." reserve for two consecutive semimonthly periods. The term "municipality" shall be construed (4) Such progressive penalty shall be at the rate of mean "State, county, district, political subdivision, or 1 per cent per annum for the first calendar month in municipality in the continental United States, includwhich same is effective and shall increase at the rate ing irrigation, drainage, and reclamation districts." Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

JANUARY, 1928 FEDERAL RESERVE BULLETIN 71 The term "net funded indebtedness" shall be con- assumed by such political division under statutes and strued to mean the legal gross indebtedness of the appropriate proceedings the effect of which is to make municipality (including the amount of any school such warrants general obligations of such assuming district or other bonds which depend for their redemp- political division and payable, either directly or ultition upon taxes levied upon property within the mately, without limitation to a special fund from the municipality) less the aggregate of the following items: proceeds of taxes levied upon all the taxable real and (1) The amount of outstanding bonds or other debt personal property within its territorial limits. obligations made payable from current revenues; (2) Warrants issued by or in behalf of any munici- (2) The amount of outstanding bonds issued for the pality which was, subsequent to the issuance of such purpose of providing the inhabitants of a municipal- warrants, wholly succeeded by a newly organized ity with public utilities, such as waterworks, docks, political division whose term of existence, added to electric plants, transportation facilities, etc.: Provided, that of such original political division or of any other That evidence is submitted showing that the income political division so succeeded, is equal to a period of from such utilities is sufficient for maintenance, for 10 years will be deemed to be warrants of such succeedpayment of interest on such bonds, and for the accu- ing political division: Provided, That during such period mulation of a sinking fund sufficient for their redemp- none of such political divisions shall have defaulted for tion at maturity; a period exceeding 15 days in the payment of any part (3) The amount of outstanding improvement bonds, of either principal or interest of any funded debt auissued under laws which provide for the levying of thorized to be contracted by it: And provided further, special assessments against abutting property in That such warrants were assumed by such new political amounts sufficient to insure the payment of interest on division under statutes and appropriate proceedings the bonds and the redemption thereof at maturity: the effect of which is to make such warrants general Provided, That such bonds are direct obligations of the obligations of such assuming political division and paymunicipality and included in the gross indebtedness of able, either directly or ultimately, without limitation the municipality; and to a special fund from the proceeds of taxes levied upon (4) The total of all sinking funds accumulated for the all the taxable real and personal property within its redemption of the gross indebtedness of the munici- territorial limits. pality, except sinking funds applicable to bonds de- (3) Warrants issued by or in behalf of any municiscribed in (1), (2), and (3) above. pality which, prior to such issuance, became the successor of one or more, or was formed by the consolida- SECTION III.—Class of warrants eligible for purchase tion or merger of two or more, preexisting political divisions, the term of existence of one or more of which, Any Federal reserve bank may purchase warrants added to that of such succeeding or consolidated politissued by a municipality in anticipation of the collec- ical division, is equal to a period of 10 years, will be tion of taxes or in anticipation of the receipt of assured deemed to be warrants of a political division which has revenues, provided— been in existence for a period of 10 years: Provided, (a) They are the general obligations of the entire That during such period npne of such original, succeedmunicipality; it being intended to exclude as ineligible ing, or consolidated political divisions shall have defor purchase all such obligations as are payable from faulted for a period exceeding 15 days in the payment "local benefit" and "special assessment" taxes when of any part of either principal or interest of any funded the municipality at large is not directly or ultimately debt authorized to be contracted by it. liable; (6) They are issued in anticipation of taxes or reve- SECTION V.—Limitations nues which are due and payable on or before the date of maturity of such warrants; but the Federal Reserve (a) Except with the approval of the Federal Reserve Board may waive this condition in specific cases. For Board, no Federal reserve bank shall purchase and the purposes of this regulation, taxes shall be consid- hold an amount in excess of 25 per cent of the total ered as due and payable on the last day on which they amount of warrants outstanding at any time and may be paid without penalty; issued in conformity with provisions of section 14(6), (c) They are issued by a municipality— above quoted, and actually sold by a municipality. (1) Which has been in existence for a period of .10 (b) Except with the approval of the Federal Reserve years; Board, the aggregate amount invested by any Federal (2) Which for a period of 10 years previous to the reserve bank in warrants of all kinds shall not exceed purchase has not defaulted for longer than 15 days in at the time of purchase a sum equal to 10 per cent of the payment of any part of either principal or interest the deposits kept by its member banks with such of any funded debt authorized to be contracted by it; Federal reserve bank. (3) Whose net funded indebtedness does not exceed (c) Except with the approval of the Federal Reserve 10 per centum of the valuation of its taxable property, Board, the maximum amount which may be invested to be ascertained by the last preceding valuation of at the time of purchase by any Federal reserve bank property for the assessment of taxes. in warrants of any single municipality shall be limited to the following percentages of the deposits kept in SECTION IV.—"Existence" and "nondefault" such Federal reserve bank by its member banks: Five per cent of such deposits in warrants of a munic- Warrants will be construed to comply with that part ipality of 50,000 population or over; of Section III (c) relative to term of existence and non- Three per cent of such deposits in warrants of a default, under the following conditions: municipality of over 30,000 population, but less than (1) Warrants issued by or in behalf of any munici- 50,000; pality which was, subsequent to the issuance of such One per cent of such deposits in warrants of a municwarrants, consolidated with or merged into an existing ipality of over 10,000 population, but less than political division which meets the requirements of these 30,000. regulations, will be deemed to be the warrants of such (d) Any Federal reserve bank may purchase from political division: Provided, That such warrants were any of its member banks warrants of any municipality, Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

72 FEDERAL RESERVE BULLETIN JANUARY, 1928 indorsed by such member bank, with waiver of demand, In any case in which the laws of a State require that a corporation notice, and protest if such warrants comply with Sec- acting as trustee, executor, administrator, or in any capacity specified in this section, shall take an oath or make an affidavit, the president, tions III and V (b) of these regulations, except that vice president, cashier, or trust officer of such national bank may take where a period of 10 years is mentioned in III (c) hereof the necessary oath or execute the necessary affidavit. a period of 5 years shall be substituted for the purposes It shall be unlawful for any national banking association to lend any officer, director, or employee any funds held in trust under the powers of this clause. conferred by this section. Any officer, director, or employee making such loan, or to whom such loan is made, may be fined not more than $5,000, or imprisoned not more than five years, or may be both fined SECTION VI.—Warrants of small municipalities and imprisoned, in the discretion of the court. In passing upon applications for permission to exercise the powers Warrants of a municipality of 10,000 population or enumerated in-this subsection, the Federal Reserve Board may take into consideration the amount of capital and surplus of the applying less shall be purchased only with the special approval bank, whether or not such capital and surplus is sufficient under the of the Federal Reserve Board. circumstances of the case, the needs of the community to be served, and The population of a municipality shall be determined any other facts and circumstances that seem to it proper, and may grant or refuse the application accordingly: Provided, That no permit shall by the last Federal or State census. Where it can not be issued to any national banking association having a capital and surbe exactly determined the Federal Reserve Board will plus less than the capital and surplus required by State law of State make special rulings. banks, trust companies, and corporations exercising.such powers. SECTION II.—Applications SECTION VII.—Opinion of counsel A national bank desiring to exercise any or all of the Opinion of recognized counsel on municipal issues powers authorized by section 11 (fc) of the Federal or of the regularly appointed counsel of the municipal- reserve act, as amended by the act of September 26, ity as to the legality of the issue shall be secured and 1918, shall make application to the Federal Reserve approved in each case by counsel for the Federal Board, on a form approved by said board, for a special reserve bank. permit authorizing it to exercise such powers. In the case of an original application—that is, where the applying bank has never been granted the right to REGULATION F, SERIES OF 1928 exercise any of the powers authorized by section 11 (fc)— the application should be made on F. R. B. Form 61. (Superseding Regulation F of 1924) In the case of a supplemental application—that is, where the applying bank has already been granted the TRUST POWERS OF NATIONAL BANES right to exercise one or more of the powers authorized SECTION I.—Statutory provisions by section 11 (k)—the application should be made on F. R. B. Form 61-6. Both forms are made a part of The Federal reserve act as amended by the act of this regulation and may be obtained from the Federal September 26, 1918, provides in part: Reserve Board or any Federal reserve bank. In the case of the organization of a new national SEC. 11. The Federal Reserve Board shall be authorized and empowered: bank, the conversion of a State bank or trust company (k) To grant by special permit to national banks applying therefor, into a national bank, the consolidation of two national when not in contravention of State or local law, the right to act as trustee,banks, or the consolidation of a State bank or trust executor, administrator, registrar of stocks and bonds, guardian of estates, assignee, receiver, committee of estates of lunatics, or in any othercompany with a national bank under the charter of the fiduciary capacity in which State banks, trust companies, or other cor- latter, application for such a permit may be made in porations which come into competition with national banks are per- advance on behalf of the new, converted, or conmitted to act under the laws of the State in which the national bank is located. solidated national bank, and the permit may be issued Whenever the laws of such State authorize or permit the exercise of simultaneously with the consummation of such organiany or all of the foregoing powers by State banks, trust companies, or zation, conversion, or consolidation. In the case of the other corporations which compete with national banks, the granting to and the exercise of such powers by national banks shall not be deemed organization of a new national bank, the application to be in contravention of State or local law within the meaning of this act.may be made on behalf of the new national bank by National banks exercising any or all of the powers enumerated in this the organizers thereof. In the case of the conversion subsection shall segregate all assets held in any fiduciary capacity from the general assets of the bank and shall keep a separate set of books and of a State bank or trust company into a national bank, records showing in proper detail all transactions engaged in under author- the application may be made by the State bank or ity of this subsection. Such books and records shall be open to inspec- trust company on behalf of the national bank into tion by the State authorities to the same extent as the books and records of corporations organized under State law which exercise fiduciary which it is to be converted. In the case of the conpowers, but nothing in this act shall be construed as authorizing the solidation of two or more national banks or the con- State authorities to examine the books, records, and assets of the national solidation of a State bank or trust company with a bank which are not held in trust under authority of this subsection. No national bank shall receive in its trust department deposits of national bank under the charter of the latter, the current funds subject to check or the deposit of checks, drafts, bills of application may be made by the national bank the exchange, or other items for collection or exchange purposes. Funds charter of which is to be retained. deposited or held in trust by the bank awaiting investment shall be carried in a separate account and shall not be used by the bank in the conduct of its business unless it shall first set aside in the trust depart- SECTION III.—Consolidation of two or more national ment United States bonds or other securities approved by the Federal Reserve Board. banks In the event of the failure of such bank the owners of the funds held in trust for invesment shall have a lien on the bonds or other securities so Where twTo or more national banks consolidate under set apart in addition to their claim against the estate of the bank. the provisions of the act of November 7, 1918, and any Whenever the laws of a State require corporations acting in a fiduciary capacity, to deposit securities with the State authorities for the protec- one of such banks has, prior to such consolidation, tion of private or court trusts, national banks so acting shall be required received a permit from the Federal Reserve Board to to make similar deposits and securities so deposited shall be held for the act in fiduciary capacities, the rights existing under protection of private or court trusts, as provided by the State law. National banks in such cases shall not be required to execute the bond such permit pass by operation of law to the consolidated usually required of individuals if State corporations under similar cir- bank and the consolidated bank may exercise such cumstances are exempt from this requirement. fiduciary powers in the same manner and to the same National banks shall have power to execute such bond when so required by the laws of the State. extent as the bank to which such permit was originally Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

73 JANUARY, 1928 FEDERAL RESERVE BULLETIN issued. In order that the consolidated bank's records consolidation becomes effective, unless such national may be complete and its right to exercise such fiduciary bank already has such a permit. powers may not be questioned, however, it is advisable for the consolidated bank to obtain from the Federal SECTION V.—Separate trust departments Reserve Board a permit to exercise fiduciary powers in its own name. Such a permit may be applied for in Every national bank which obtains from the Federal advance of the consolidation and may be issued in Reserve Board a permit to act in fiduciary capacities the name of the consolidated bank effective when the shall establish a separate trust department. Such consolidation is consummated. department shall be established before such bank undertakes to act in any fiduciary capacity and shall be placed under the management of an officer or SECTION IV.—Consolidation of State bank with Na- officers whose duties shall be prescribed by the board tional bank of directors of the bank, either by an amendment to the by-laws of the bank or by a resolution duly entered Section 3 of the act of November 7, 1918, as amended in the minutes of the board of directors. by section 1 of the act of February 25, 1927, which authorizes any bank, trust company, savings bank, or SECTION VI.—Deposit of securities with State authorities other banking institution incorporated under the laws of any State or of the District of Columbia to be con- Whenever the laws of a State require corporations solidated directly with a national bank located in the acting in a fiduciary capacity to deposit securities with same county, city, town, or village under the charter the State authorities for the protection of private or of such national bank, provides in part that when such court trusts, every national bank in such State which consolidation is effected— obtains a permit from the Federal Reserve Board to * * * all the rights, franchises, and interests of such State or district act in fiduciary capacities shall, before undertaking to bank so consolidated with a national banking association in and to act in such capacities, make a similar deposit of securievery species of property, real, personal, and mixed, and choses in action thereto belonging, shall be deemed to be transferred to and vested in suchties. Such securities shall be deposited with the State national banking association into which it is consolidated without any authorities, unless the State authorities refuse to accept deed or other transfer, and the said consolidated national banking as- them. If the State authorities refuse to accept such sociation shall hold and enjoy the same and all rights of property, franchises, and interests including the right of succession as trustee, executor, or securities, they shall be deposited with the Federal in any other fiduciary capacity in the same manner and to the same extent as reserve agent of the district in which such national n w a a ti s o h n e a l l d b a a n n d k i e n n g j o a y s e s d o c b i y a s ti u o c n h . State or district bank so consolidated with such bank is located. Securities so deposited shall be held for the protection of private or court trusts, as provided1 * • • • * The words "State bank," "State banks," "bank," or "banks," as used by the State law. in this section, shall be held to include trust companies, savings banks, or other such corporations or institutions carrying on the banking business SECTION VII.—Custody of trust securities and investunder the authority of State laws. ments The purpose of this provision is to make clear the The securities and investments held in each trust right of such a consolidated national bank to succeed shall be kept separate and distinct from the securities to the specific trusteeships, executorships, and other owned by the bank and separate and distinct one from fiduciary appointments under which the State instituanother. Trust securities and investments shall be tion was acting prior to the consolidation or in which placed in the joint custody of two or more officers or it had been appointed or designated to act under wills other employees designated by the board of directors of or other instruments which had not become effective the bank and all such officers and employees shall be at the time of consolidation through the death of a bonded. testator, the probate of a will or otherwise; but it does not confer upon such national banks the right to act SECTION VIII.—Funds awaiting investment or disgenerally in fiduciary capacities or to undertake any tribution new trust business. It is necessary for the consolidated national bank to have a permit from the Federal (a) In general.—Funds received or held in the trust Reserve Board to act in fiduciary capacities, therefore, department of a national bank awaiting investment or before undertaking to act generally in fiduciary capaci- distribution shall be invested or distributed as soon as ties or to accept any new trust business. If the national practicable and shall not be held uninvested by the bank does not desire to act generally in fiduciary capac- bank any longer than is reasonably necessary. ities or to accept any new trust business, but desires (6) Deposits in commercial or savings department merely to continue to execute the specific trusteeships, of trustee bank.—Funds received or held in the trust executorships, and other fiduciary affairs which were department of a national bank awaiting investment or actually being executed by the State institution at the distribution may be deposited in the commercial detime of the consolidation or which the State institution partment or savings department of the bank to the had been designated to execute under wills or other credit of the trust department; provided that the bank instruments which had not yet become effective first delivers to the trust department, as collateral through the death of the testator, the probate of the security— will or otherwise, it is not technically necessary for the (1) Bonds, notes, or certificates of indebtedness of national bank to have a permit from the Federal the United States; or Reserve Board in order to execute such specific trusts; (2) Other readily marketable securities of the classes but it is advisable for the national bank to have such a in which State trust companies or State banks exercispermit, in order that.its right to continue to execute ing trust powers are authorized or permitted to invest these trusts may not be questioned. In all cases trust funds under the laws of the State in which such involving the consolidation of a State institution bank is located; or having a trust business with a national bank under the (3) Other readily marketable securities of the classes provisions of the above-mentioned act, therefore, the defined as "investment securities" pursuant to section national bank should obtain from the Federal Reserve 5136 of the Revised Statutes of the United States as Board a permit to act in fiduciary capacities before the amended by the act of February 25, 1927. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

74 FEDERAL RESERVE BULLETIN JANUARY, 1928 The United States bonds or other securities so de- furnish information or reports required by the Federal posited as collateral shall be owned by the bank and or State authorities, and such books and records shall shall at all times be at least equal in market value to be open to the inspection of such authorities. the amount of trust funds so deposited in the commercial department.9 SECTION XII.—Examinations Examiners appointed by the Comptroller of the SECTION IX.—Investment of trust funds Currency or designated by the Federal Reserve (a) Private trusts.—Funds held in trust must be Board will be instructed to make thorough and cominvested as soon as practicable in strict accordance with plete examinations of the cash, securities, accounts, the terms of the will, deed, or other instrument creating and investments of the trust department of the bank the trust. Where the instrument creating the trust at the same time that examination is made of the contains provisions authorizing the bank, its officers, banking department, and may make such examinaor its directors to exercise their discretion in the matter tions at any other time. of investments, funds held in trust may be invested SECTION XIII.—Insolvency or voluntary liquidation only in those classes of securities which are approved of bank by the directors of the bank or a committee of directors appointed for that purpose. Where the instrument (a) Insolvency.—Whenever a national bank exerciscreating the trust does not specify the character or ing fiduciary powers becomes insolvent and a receiver class of investments to be made and does not expressly is appointed therefor by the Comptroller of the Curvest in the bank, its officers, or its directors a discretion rency, such receiver will, pursuant to the instructions in the matter of investments, funds held in trust shall of the Comptroller of the Currency and to the orders of be invested in any securities in which corporate or the court or courts of appropriate jurisdiction, proceed individual fiduciaries in the State in which the bank to close such trusts and estates as can be closed is located may lawfully invest. promptly and transfer to substitute fiduciaries all (b) Court trusts.—Except as hereinafter provided, trusts and estates which can not be closed promptly. a national bank acting as executor, administrator, or (6) Voluntary liquidation.—Whenever a national in any other fiduciary capacity, under appointment by bank exercising fiduciary powers is placed in voluntary a court of competent jurisdiction, shall make all invest- liquidation, the liquidating agent shall, in accordance ments under an order of that court, and copies of all with the laws of the State in which such national such orders shall be filed and preserved with the records bank is located, proceed at once to liquidate the affairs of the trust department of the bank. If the court by of the trust department as follows: general order vests a discretion in the national bank 1. All voluntary trusts which can be canceled shall to invest funds held in trust, or if under the laws of be canceled as soon as possible and all assets and the State in which the bank is located corporate fidu- papers thereof shall be delivered to the rightful owner ciaries appointed by the court are permitted to exercise or owners. such discretion, the national bank so appointed may 2. All court trusts and estates under the jurisdicinvest such funds in any securities in which corporate tion of a court shall be closed or disposed of as soon or individual fiduciaries in the State in which the as possible in accordance with the orders or instrucbank is located may lawfully invest. tions of the court having jurisdiction. 3. All other trusts which can be closed promptly SECTION X.—Compensation of bank shall be closed as soon as possible and final accounting made therefor. A national bank acting in a fiduciary capacity is 4. All other trusts which can not be closed promptly entitled to receive for its services such fee or compensa- shall be transferred by appropriate legal proceedings tion as may be allowed by State law or provided for to substitute trustees or other fiduciaries. in the will, deed, court order, or other instrument creating the trust. If the amount of such fee or compensa- SECTION XIV.—Conformity with State laws tion is not regulated by State law or stipulated or pro- Nothing in these regulations shall be construed to vided for in the instrument creating the trust, the give a national bank exercising the powers permitted national bank may charge or deduct not more than a under the provisions of section 11 (k) of the Federal reasonable fee or compensation. Where the bank is reserve act, as amended, any rights or privileges in acting in a fiduciary capacity under appointment by a contravention of the laws of the State in which the court, it may receive such fee or compensation as shall bank is located within the meaning of that act. be allowed or approved by that court. After the deduction of a proper fee or compensation, SECTION XV.—Changes in regulations determined in the manner prescribed above, all income These regulations are subject to change by the derived from the investment of the funds of a trust shall Federal Reserve Board; provided, however, that no be paid over to, or credited to the account of, such such change shall prejudice any obligation undertaken trust. in good faith under regulations in effect at the time SECTION XI.—Books and accounts the obligation was assumed. All books and records of the trust department shall be kept separate and distinct from other books and REGULATION G, SERIES OF 1928 records of the bank. All accounts opened shall be so (Superseding Regulation M of 1926) kept as to enable the national bank at any time to REDISCOUNT OF NOTES SECURED BY ADJUSTED SERVICE CERTIFICATES • The act requires that the bank shall set aside in the trust department "United States bonds or other securities approved by the Federal SECTION I.—Statutory provisions Reserve Board." This provision of the regulations is intended as a general approval by the Federal Reserve Board of all securities which com- Under the terms of the World War adjusted comply with the requirements thereof and specific approval by the Federal pensation act as amended, loans may lawfully be made Reserve Board is unnecessary as to such securities. The board will not approve any securities which do not comply with these requirements. to veterans upon their adjusted service certificates Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

JANUABT, 1028 FEDERAL RESERVE BULLETIN 75 only in accordance with the provisions of section 502 (c) Be held by the offering bank in its own right at thereof. the time it is offered for rediscount; Any national bank, or any bank or trust company (d) Be negotiable in form and otherwise in the form incorporated under the laws of any State, Territory, approved by the director; possession, or the District of Columbia is authorized, (e) Have a maturity at the time of rediscount not in after the expiration of two years after the date of the excess of nine months, exclusive of days of grace; certificate, to loan to any veteran upon his promissory (/) Evidence a loan the amount of which does not note secured by his adjusted service certificate any exceed the loan value of the certificate for the year in amount not in excess of the loan value of the certificate, which such loan was made; which is stated on the face of the certificate. The (g) Be payable with interest accruing after the date law provides that the rate of interest charged upon of the note at a rate stated in the face of the note, the loan by the lending bank shall not exceed by which rate must not exceed by more than 2 per cent more than 2 per cent per annum the rate charged at per annum the rate charged at the date of the loan for the date of the loan for the discount of 90-day com- the discount of 90-day commercial paper by the Federal mercial paper by the Federal reserve bank of the reserve bank of the Federal reserve district in which the Federal reserve district in which the lending bank is lending bank is located; located. (h) Bear the indorsement of the bank offering it for Upon the indorsement of any bank, which shall be rediscount, which indorsement shall be deemed a waiver deemed a waiver of demand, notice and protest by of demand, notice, and protest by such bank as to its such bank as to its own indorsement exclusively, and, own indorsement exclusively; subject to regulations to be prescribed by the Federal (i) Be accompanied by the evidence of eligibility Reserve Board, any such note secured by an adjusted required by this regulation and such other evidence service certificate and held by a bank is made eligible of eligibility as may be required by the Federal reserve for rediscount with the Federal reserve bank of the bank to which it is offered for rediscount; and Federal reserve district in which such bank is located, (j) Comply in all other respects with the requirewhether or not the bank offering the note for redis- ments of the" law and of this regulation. count is a member of the Federal reserve system and whether or not it acquired the note in the first instance SECTION IV.—Evidence of eligibility from the veteran or acquired it by transfer upon the indorsement of any other bank; provided that at the (a) General.—The Federal reserve bank to which a time of rediscount such note has a maturity not in note is offered for rediscount must be satisfied either excess of nine months, exclusive of days of grace, and by reference to the note itself or otherwise that the complies in all other respects with the provisions of loan evidenced by the note or any sale, discount, or the law, the regulations of the United States Veterans' rediscount thereof complies in all respects with the Bureau, and the regulations of the Federal Reserve provisions of section 502 of the act and that the note Board. is eligible for rediscount by a Federal reserve bank SECTION II.—Definitions under the terms of the law and the provisions of this regulation. Within the meaning of this regulation— (b) Affidavit of lending bank.—Any note offered to a (a) The term "the act" shall mean the World War Federal reserve bank for rediscount must be accomadjusted compensation act as amended; panied by the affidavit required by section 502 (h) of (6) The term "director" shall mean the Director of the act and the regulations of the director, in form the United States Veterans' Bureau; approved by the director, made by an officer of the (c) The term "certificate" shall mean an adjusted bank which made the loan, before a notary public or service certificate issued under the provisions pf sec- other officer designated for the purpose by regulation tion 501 of the World War adjusted compensation act of the director, stating that— as amended; (1) Such bank has not charged or collected, or (d) The term "veteran" shall mean any person to attempted to charge or collect, directly or indirectly, whom an adjusted service certificate has been issued any fee or other compensation in respect of any loan by the director under the provisions of the World War made by such bank to any veteran under section 502 adjusted compensation act as amended; of the act, except the interest authorized by such (e) The term "bank" shall mean any national bank section; or any bank or trust company incorporated under the (2) The person who obtained the loan evidenced by laws of any State, Territory, possession, or the Dis- such note is known to be the veteran named in the certrict of Columbia; tificate securing such note; (/) The term "note" shall mean a promissory note, , (3) Such bank has notified the director that it has negotiable in form, secured by an adjusted service made a loan to the veteran named in the certificate, as certificate, and evidencing a loan made by a bank on required by the regulations of the director; and the security of such certificate in full compliance with (4) Such bank has notified the veteran by mail at the provisions of the World War adjusted compensa- his last known post-office address of any sale, discount, tion act as amended and the regulations of the United or rediscount of such note by such bank, as required States Veterans' Bureau. by section 502 (b) of the act. (c) Affidavit of other banks.—If such note is offered SECTION III.—Eligibility for rediscount by a bank other than the bank which made the loan thereon, it must also be accompanied In order to be eligible for rediscount at a Federal by an affidavit of an officer of the offering bank and reserve bank, any such note must— an affidavit of an officer of each other bank which has (a) Arise out of a loan made by a bank to a veteran sold, discounted, or rediscounted such note, which in full compliance with the provisions of the act and affidavit shall be in form approved by the director of any regulation which the director may prescribe; and shall state that the bank of which the affiant is an (&) Be secured by the certificate issued to the maker, officer has promptly notified the veteran by mail at which certificate must accompany the note; his last known post-office address of the sale, discount, Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

76 FEDERAL RESERVE BULLETIN JANUARY, 1928 or rediscount of such note by such bank, as required increased out of net income to equal the capital by section 502 (b) of the act. required under (a). In order to become a member of the Federal reserve SECTION V.—Application for rediscount system, therefore, any State bank or trust company must have a minimum paid-up capital stock at the Every application for the rediscount of such notes time it becomes a member, as follows: shall be made on a form approved by the Federal reserve bank to which such note is offered and shall contain a certificate of the offering bank to the effect Minimum Minimum that, to the best of its knowledge and belief, such note capital if capital if arose out of a loan made in full compliance with the If located in a city or town with a population— ad u m nd it e t r ed ad u m nd it e t r ed provisions of the act and the regulations of the director clause (a) clause (6) and is eligible for rediscount under the provisions of section 502 of the act and of this regulation. Not exceeding 3,000 inhabitants $25,000 $15,000 Exceeding 3,000 but not exceeding 6,000 SECTION VI.—Proper bank for rediscount inhabitants _ 50,000 30,000 Exceeding 6,000 but not exceeding 50,000 inhabitants- 100,000 60,000 No such note shall be rediscounted by any Federal Exceeding 50,000 inhabitants (except as stated reserve bank for any bank not located in its own below)... _ 200,000 120,000 Federal reserve district, except that such notes may be In an outlying district i° of a city with a population exceeding 50,000 inhabitants; provided rediscounted by any Federal reserve bank for any State law permits organization of State other Federal reserve bank. banks in such location with a capital of $100,000 or less SECTION VII.—Rate of rediscount 10 The term "outlying district" is construed to mean that portion of a The rate of interest charged by any Federal reserve city which is located outside of, and at a considerable distance from, the recognized business and financial center of such city, and includes all bank on any such note rediscounted by it shall be the suburban districts within the corporate limits of such city. same as that charged by it for the rediscount of 90-day notes drawn for a commercial purpose, except that Any bank admitted to membership under clause (b) when such notes are rediscounted for another Federal must also, as a condition of membership—the violation reserve bank the rate shall be that fixed by the Federal of which will subject it to expulsion from the Federal Reserve Board. reserve system—increase its paid-up and unimpaired capital within five years after the approval of its SECTION VIII.—Rediscounts for nonmember banks application by the Federal Reserve Board to the amount required under (a). For the purpose of pro- No Federal reserve bank shall rediscount such notes viding for such increase, every such bank shall set for any nonmember bank until such bank has furnished aside each year in a fund exclusively applicable to such to the Federal reserve bank such information as it capital increase not less than 50 per cent of its net may request in order to satisfy itself as to the condition earnings for the preceding year prior to the payment of such bank and the advisability of making the of dividends, and if such net earnings exceed 12 per rediscount for it. cent of the paid-up capital of such bank, then all pet earnings in excess of 6 per cent of the paid-up capital shall be carried to such fund, until such fund is large REGULATION H, SERIES OF 1928 enough to provide for the necessary increase in capital. Whenever such fund shall be large enough to provide (Superseding Regulation H of 1924) for the necessary increase in capital, or at such other time as the Federal Reserve Board may require, such MEMBERSHIP OF STATE BANKS AND TRUST COMPANIES fund or as much thereof as may be necessary shall be SECTION I.—Banks eligible for membership converted into capital by a stock dividend or used in any other manner permitted by State law to increase 1. Incorporation.—In order to be eligible for mem- the capital of such bank to the amount required under bership in a Federal reserve bank, a State bank or (a): Provided, however, That such bank may be trust company must have been incorporated under a excused in whole or in part from compliance with the special or general law of the State or district in which terms of this paragraph if it increases its capital it is located. through the sale of additional stock: Provided, further, 2. Capital stock.—Under the terms of section 9 of That nothing herein contained shall be construed as the Federal reserve act as amended, no applying bank requiring any such bank to violate any provision of can be admitted to membership in a Federal reserve State law, and in any case in which the requirements bank unless— of this paragraph are inconsistent with the require- (a) It possesses a paid-up, unimpaired capital ments of State law the requirements of this paragraph sufficient to entitle it to become a national banking may be waived and the subject covered by a special association in the place where it is situated, under the condition of membership to be prescribed by the provisions of the national bank act; or Federal Reserve Board. (6) It possesses a paid-up, unimpaired capital of at 3. Branches.—In order to be eligible for memberleast 60 per cent of such amount, and, under penalty ship in a Federal reserve bank, a State bank or trust of loss of membership, complies with the rules and company must relinquish any branch or branches regulations herein prescribed by the Federal Reserve established by it after February 25, 1927, beyond Board fixing the time within which and the method by the corporate limits of the city, town, or village in which the unimpaired capital of such bank shall be which the parent bank is situated. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

77 JANUARY, 1928 FEDERAL RESERVE BULLETIN SECTION II.—Application for membership (3) Except after applying for and receivingfthe permission of the Federal Reserve Board, such bank or Any eligible State bank or trust company may trust company shall not acquire an interest in any make application on F. R. B. Form 83a, made a part other bank or trust company, through the purchase of this regulation, to the Federal Reserve Board for of stock in such other bank or trust company. an amount of capital stock in the Federal reserve (4) Such bank or trust company shall maintain its bank of its district equal to 6 per cent of the paid-up loans within the limits prescribed by the laws of the capital stock and surplus of such State bank or trust State in which it is located. company. This application must be forwarded direct (5) Such bank or trust company shall reduce to an to the Federal reserve agent of the district in which amount equal to 10 per cent of its capital and surplus the applying bank or trust company is located and all balances in excess thereof, if any, which are carried must be accompanied by Exhibits I, II, and III, with banks or trust companies which are not members referred to on page 1 of the application blank. of the Federal reserve system, and shall at all times maintain such balances within such limits. SECTION III.—Approval of application (6) Such bank or trust companjr may accept drafts and bills of exchange drawn upon it of any character In passing upon an application the Federal Reserve permitted by the laws of the State of its incorporation; Board will consider especially— but the aggregate amount of all acceptances outstand- (1) The financial condition of the applying bank or ing at any one time shall not exceed the limitations trust company and the general character of its manageimposed by section 13 of the Federal reserve act, that ment; is, the aggregate amount of acceptances;-outstanding (2) Whether the corporate powers exercised by the at any one time which are drawn for the purpose of applying bank or trust company are consistent with furnishing dollar exchange!in countries specified; by the purposes of the Federal reserve act; and the Federal Reserve Board shall not exceed 50 per cent (3) Whether the laws of the State or district in of its capital and surplus, and the aggregate amount of which the applying bank or trust companj' is located all other acceptances, whether domestic or foreign, contain provisions likely to prevent proper compliance outstanding at any one time shall not exceed 50 per with the provisions of the Federal reserve act and the cent of its capital and surplus, except that the Federal regulations of the Federal Reserve Board made in Reserve Board, upon the application of such bank conformity therewith. or trust company, may increase this limit from 50 per If, in the judgment of the Federal Reserve Board, an cent to 100 per cent of its capital and surplus: Proapplying bank or trust company conforms to all the vided, however, That in no event shall the aggregate requirements of the Federal reserve act and these amount of domestic acceptances outstanding at any regulations, and is otherwise qualified for membership, one time exceed 50 per cent of the capital and surplus the board will approve the application subject to such of such bank or trust company. conditions as it may prescribe pursuant to the pro- (7) The board of directors of said bank or trust comvisions of the Federal reserve act. W^hen the conpany shall adopt a resolution authorizing the interditions imposed by the board have been accepted by change of reports and information between the Federal the applying bank or trust company and the applying reserve bank of the district in which such bank or trust bank or trust company has made a payment to the company is located and the banking authorities of the Federal reserve bank of its district of one-half of the State in which such bank is located. amount of its subscription, i. e., 3 per cent of the amount of its paid-up capital and surplus, the appropriate SECTION V.—Establishment or maintenance of branches certificate of stock will be issued by the Federal reserve bank and a certificate of membership will be issued by Every State bank which is, or hereafter becomes, the Federal Reserve Board. The remaining half of a member of the Federal reserve system will be reits subscription shall be subject to call when deemed quired to comply strictly with the following provision Necessary by the Federal Reserve Board. of section 9 of the Federal reserve act as amended by the act of February 25, 1927: SECTION IV.—Conditions of membership Any such State bank which, at the date of the approval of this act, has established and is operating a branch or branches in conformity with Pursuant to the authority contained in the first the State law, may retain and operate the same while remaining or upon paragraph of section 9 of the Federal reserve act, becoming a stockholder of such Federal reserve bank; but no such State bank may retain or acquire stock in a Federal reserve bank except upon which provides that the Federal Reserve Board may relinquishment of any branch or branches established after the date of permit applying banks to become members of the the approval of this act beyond the limits of the city, town, or village in Federal reserve system "subject to the provisions of which the parent bank is situated. this act and to such conditions as it may prescribe This has been interpreted to mean that— pursuant thereto," the Federal Reserve Board will 1. Any State member bank which, on February 25, prescribe the following conditions of membership for 1927, had established arid was actually operating a each bank or trust company hereafter applying for branch or branches in conformity with the State law is admission to the Federal reserve system, in addition permitted to retain and operate the same while remainto such other conditions as the board may consider ing a member of the Federal reserve system, regardless necessary or advisable in the particular case— of the location of such branch or branches. (1) Except with the permission of the Federal 2. Any nonmember State bank which, on February Reserve Board, such bank or trust company shall not 25, 1927, had established and was actually operating a cause or permit any change to be made in the general branch or branches in conformity with State law may, character of its business or in the scope of the corporate if otherwise eligible, become a member of the Federal powers exercised by it at the time of admission to reserve system and retain and operate such branches, membership. regardless of their location. (2) Such bank or trust company shall at all times 3. In order to remain a member of the Federal reconduct its business and exercise its powers with due serve system, every State member bank must relinregard to the safety of its depositors. quish any branch or branches established after Febru- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

78 FEDERAL RESERVE BULLETIN JANUARY, 1928 ary 25, 1927, beyond the corporate limits of the city, REGULATION I, SERIES OF 1928 town, or village in which the parent bank is situated. 4. Any State member bank which establishes any (Superseding Regulation I of 1924) branch or branches after February 25, 1927, beyond the INCREASE OR DECREASE OF CAPITAL STOCK OF FEDcorporate limits of the city, town, or village in which ERAL RESERVE BANKS AND CANCELLATION OF OLD the parent bank is situated must either (a) relinquish AND ISSUE OF NEW STOCK CERTIFICATES such branch or branches or (b) forfeit all rights and SECTION I.—Increase of capital stock privileges of membership and surrender its stock in the Federal reserve bank. (a) New national banks.—Each new national bank, 5. No State bank which has established any branches while in process of organization (including each nonsubsequent to February 25, 1927, beyond the corporate member State bank converting into a national bank,11 limits of the city, town, or village in which the parent while in process of such conversion) shall file with the bank is situated may become a member of the Federal Federal reserve bank of its district an application to reserve system except upon relinquishment of every the Federal Reserve Board on F. R. B. Form 30 (or such branch. as to a nonmember State bank converting into a 6. State member banks may establish branches # national bank, on F. R. B. Form 30a), made a part*of within the corporate limits of the city, town, or village this regulation, for an amount of capital stock of the in which the parent bank is situated without obtaining Federal reserve bank of its district equal to 6 per cent permission of the Federal Reserve Board. of the paid-up capital stock and surplus of such new national bank. Such application shall be forwarded SECTION VI.—Powers and restrictions promptly to the Federal Reserve Board, and if it is found to be in proper form the Federal Reserve Board Every State bank or trust company while a member will grant its approval effective if and when the Compof the Federal reserve system— troller of the Currency issues to such bank his certificate (1) Shall retain its full charter and statutory rights of authority to commence business. If its application as a State bank or trust company, subject to the pro- is approved, the applying bank shall thereupon make a visions of the Federal reserve act, to the regulations of payment to the Federal reserve bank of its district of the Federal Reserve Board, and to the conditions pre- one-half of the amount of its subscription, i. e., 3 per scribed by the Federal Reserve Board and agreed to cent of the amount of its paid-up capital and surplus; by such State bank or trust company prior to its ad- and upon receipt of this payment the Federal reserye mission ; bank will issue a receipt therefor, place the amount in (2) Shall enjoy all the privileges and observe all a suspense account, and notify the Federal Reserve those requirements of the Federal reserve act and of Board that it has been received. When the Compthe regulations of the Federal Reserve Board made in troller of the Currency issues to such applying bank conformity therewith which are applicable to State his certificate of authority to commence business the banks and~ trust companies which have become member Federal reserve bank shall issue a stock certificate to banks; and the applying bank, and the capital stock of the Federal (3) Shall comply at all times with any and all condi- reserve bank represented by such certificate shall be tions of membership prescribed by the Federal Reserve considered as issued as of the date upon which the Board at the time of the admission of such member Comptroller of the Currency issues his certificate of bank'to the Federal reserve system. authority to commence business. The remaining half of the subscription of the applying bank shall be subject SECTION VII.—Examinations and reports to call when deemed necessary by the Federal Reserve Board. Every State bank or trust company, while a member (b) State banks becoming members.—Any State of the Federal reserve system, shall be subject to exbank or trust company desiring to become a member aminations made by direction of the Federal Reserve of the Federal reserve system shall make application Board or of the Federal reserve bank by examiners as provided in Regulation H, and when such applicaselected or approved by the Federal Reserve Board. tion has been approved by the Federal Reserve Board In order to avoid duplication, examinations of State and all requirements of Regulation H have been combanks and trust companies made by State authorities plied with the Federal reserve bank shall issue an will be accepted in lieu of examinations by examiners appropriate certificate of stock as provided in Regulaselected or approved by the board wherever these are tion H. satisfactory to the directors of the Federal reserve bank, (c) Increase of capital or surplus by member and examiners from the staff of the board or of the banks.—Whenever any member bank shall increase the Federal reserve banks will, whenever desirable, be aggregate amount of its paid-up capital stock and surdesignated by the board to act with the examination plus, it shall file with the Federal reserve bank of which staff of the State in order that uniformity in the standit is a member an application on F. R. B. Form 56, ard of examination may be assured. Every State bank or trust company, while a member of the Federal reserve system, shall be required to make 11 Whenever any State member bank is converted into a national bank under sec. 5154 of the Revised Statutes, as amended by sec. 8 of in each year not less than three reports of condition on the Federal reserve act, it may continue to hold as a national bank its F. R. B." Form 105. Such reports shall be made to the shares of Federal reserve bank stock previously held as a State bank, Federal reserve bank of its district on call of such bank, and need not file any application for Federal reserve bank stock, unless the aggregate amount of its capital and surplus is increased, in which on dates to be fixed by the Federal Reserve Board. event it should file an application for additional stock, as provided in They shall also make semiannual reports of earnings Section I (c). The certificate of stock issued in the old name of the and dividends on F. R. B. Form 107. F. R. B. Forms member bank, however, should be surrendered and canceled, and a new certificate should be issued in lieu thereof, in the new name of the 105 and 107 are made a part of this regulation. member bank, as provided in Section III. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

JANUARY, 1928 FEDERAL RESERVE BULLETIN 79 made a part of this regulation, for an additional amount agent and the Federal Reserve Board, the Federal reof the capital stock of the Federal reserve bank of its serve bank shall accept and cancel the stock which the district equal to 6 per cent of such increase. After such applying bank is entitled to surrender and shall refund application has been approved by the Federal reserve to the member bank the proportionate amount due agent and by the Federal Reserve Board, the applying such bank on account of the stock canceled. member bank shall pay to the Federal reserve bank of (b) Insolvency of member bank.—Whenever a memits district one-half of the amount of its additional ber bank shall be declared insolvent and a receiver subscription, and when this amount has been paid the appointed by the proper authorities, such receiver shall, appropriate certificate of stock shall be issued by the within six months from the date of his appointment, Federal reserve bank. The remaining half of such file with the Federal reserve bank of which the insolvent additional subscription shall be subject to call when bank is a member an application on F. R. B. Form 87, deemed necessary by the Federal Reserve Board. which is made a part of this regulation, for the sur- (d) Consolidation of member banks.—Whenever two render and cancellation of the stock held by such inor more member banks consolidate and such consoli- solvent member bank, and for the refund of all balances dation results in the consolidated bank acquiring by due to it. If the receiver shall fail to make such apoperation of law12 the Federal reserve bank stock plication within the time specified, the Federal reserve owned by the other consolidating bank or banks, and agent shall report the facts to the Federal Reserve which also results in the consolidated bank having an Board with a recommendation as to the action to be aggregate capital and surplus in excess of the aggregate taken, whereupon the Federal Reserve Board will either capital and surplus of the consolidating member banks, issue an order to cancel such stock or, if the circumsuch consolidated bank shall file an application for stances warrant it, grant the receiver additional time additional stock, as provided in Section I (c). in which to file such an application. Upon approval (e) Certifying increases of Federal reserve bank of such an application by the Federal reserve agent and stock.—Whenever the capital stock of any Federal re- the Federal Reserve Board, or upon the issuance of serve bank shall be increased the board of directors of such an order by the Federal Reserve Board, the Federal reserve bank shall cancel such stock and shall adsuch Federal reserve bank shall certify such increase just accounts between the member bank and the Fedto the Comptroller of the Currency on F. R. B. Form eral reserve bank by applying to any indebtedness of 58, which is made a part of this regulation. Such certhe insolvent member bank to such Federal reserve tifications shall be made as of the last days of June and bank all cash-paid subscriptions made by it on the December of each year. A duplicate copy of each stock canceled with one-half of 1 per cent per month certificate shall be forwarded to the Federal Reserve from the period of last dividend, not to exceed the Board. book value thereof, and the balance, if any, shall be paid to the duly authorized receiver of such insolvent SECTION II.—Decrease of capital stock member bank. (c) Voluntary liquidation of member bank.—When- (a) Reduction of capital or surplus by member ever a member bank goes into voluntary liquidation, bank.—Whenever a member bank reduces the amount the liquidating agent or some other person duly authorof its paid-up capital stock and, in the case of reducized by the stockholders or board of directors to act on tion of the paid-up capital of a national bank, such behalf of such bank shall, within six months from the reduction has been approved by the Comptroller of the date of the vote to place such bank in voluntary liqui- Currency and by the Federal Reserve Board in accorddation, file with the Federal reserve bank of which the ance with the provisions of section 28 of the Federal liquidating bank is a member an application on F. R. reserve act, it shall file with the Federal reserve bank B. Form 86, if a national bank, and on F. R. B. Form of which it is a member an application for the surrender 143, if a State bank, which forms are made a part of and cancellation of stock on F. R. B. Form 60, which this regulation, for the surrender and cancellation of is made a part of this regulation. When a member the stock held by it and for the refund of all balances bank reduces the amount of its surplus, it is not redue to such liquidating member bank. If such appliquired to, but may at its option, file with the Federal cation is not filed within the time specified, the Federal reserve bank of which it is a member an application for reserve agent shall report the facts to the Federal the surrender and cancellation of stock on said F. R. B. Reserve Board with a recommendation as to the action Form 60. When an application so filed as the result of to be taken, whereupon the Federal Reserve Board a reduction in a member bank's paid-up capital stock will either issue an order to cancel such stock, or, if the or surplus has been approved by the Federal reserve circumstances warrant it, grant additional time in which to file such an application. Upon approval of » Sec. 5 of the Federal reserve act provides that " Shares of the capital such an application by the Federal reserve agent and stock of Federal reserve banks owned by member banks shall not be transferred or hypothecated.'* This provision prevents a transfer of the Federal Reserve Board, or upon the issuance of Federal reserve bank stock by purchase, but does not prevent a transfer by such an order by the Federal Reserve Board, the operation of law. When there is a merger of member banks involving the Federal reserve bank shall cancel such stock and shall liquidation of one of such banks and the purchasing of the assets of the liquidating bank by the bank continuing in existence, it is necessary for adjust accounts between the liquidating member bank the liquidating bank to surrender its Federal reserve bank stock and for and the Federal reserve bank by applying to the inthe purchasing bank to apply for new stock. On the other hand, if debtedness of the liquidating member bank to such member banks consolidate, under a statute which does not require the liquidation of any of the consolidating banks, and the assets and obliga- Federal reserve bank all cash-paid subscriptions made tions of the consolidating banks are transferred to the consolidated bank by by it on the stock canceled with one-half of 1 per cent operation of law, the consolidated bank becomes the owner of the Federal per month from the period of last dividend, not to reserve bank stock of the consolidating banks as soon as the consolidation takes effect and such stock technically need not be surrendered. exceed the book value thereof, and the balance, if any, The certificates of stock issued in the names of the consolidating banks, shall be paid to the duly authorized liquidating agent however, should be surrendered and canceled, and a new certificate of such liquidating member bank. should be issued in lieu thereof, in the new name of the consolidated bank, as provided in Sec. III. A consolidation of national banks under the (d) Consolidation of member banks.—Whenever act of Congress entitled "An act to provide for the consolidation of there is a consolidation of two or more member banks national banking associations,'* approved Nov. 7,1918, meets all of these conditions. which results in the consolidated bank acquiring by Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

80 FEDERAI RESERVE BULLETIN JANUARY, 1928 operation of law (see note 12 on p. 79) the Federal act, as amended by the act approved June 21, 1917, reserve bank stock owned by the other consolidating authorizes each Federal reserve bank to receive from banks, and which also results in the consolidated bank any nonmember bank or trust company, solely for the having a paid-up capital less than the aggregate paid-up purposes of exchange or of collection, deposits of capital of the consolidating member banks, the con- current funds in lawful money, national-bank notes, solidated bank shall file with the Federal reserve bank Federal reserve notes, checks and drafts payable upon of which it is a member an application for the surrender presentation, or maturing notes and bills, provided such and cancellation of stock on F. R. B. Form 60a, which nonmember bank or trust company maintains with its is made a part of this regulation. Upon the approval Federal reserve bank a balance sufficient to offset the of this application by the Federal reserve agent and items in transit held for its account by the Federal the Federal Reserve Board, the Federal reserve bank reserve bank. shall accept and cancel the stock which the applying bank is entitled to surrender, and shall refund to the SECTION II.—General requirements applying bank the proportionate amount due such bank on account of the stock canceled. In pursuance of the authority vested in it under (e) Certifying reductions of Federal reserve bank these provisions of law, the Federal Reserve Board, stock.—All reductions of the capital stock of a Federal desiring to afford both to the public and to the various banks of the country a direct, expeditious, and ecoreserve bank shall, in accordance with the provisions nomical system of chec> collection and settlement of of section 6 of the Federal reserve act, be certified to balances, has arranged to have each Federal reserve the Comptroller of the Currency by the board of direcbank exercise the functions of a clearing house and tors of such Federal reserve bank on F. R. B. Form 59, collect checks for such of its member banks as desire which is made a part of this regulation. Such certito avail themselves of its privileges and for such nonfications shall be made as of the* last days of June and member State banks and trust companies as may main- December of each year. A duplicate copy of each tain with the Federal reserve bank balances sufficient certificate shall be forwarded to the Federal Reserve to qualify them under the provisions of section 13 to Board. send items to Federal reserve banks for purposes of exchange or of collection. Such nonmember State SECTION III.—Cancellation of old and issue of new banks and trust companies will hereinafter be referred stock certificates to as nonmember clearing banks. Whenever a member bank changes its name or, by Each Federal reserve bank shall exercise the funcconsolidation with another member bank, acquires by tions of a clearing house and collect checks under the operation of law (see note 12 on p. 79) the Federal general terms and conditions hereinafter set forth, reserve bank stock previously held by such other and each member bank and nonmember clearing bank member bank, it shall surrender to the Federal reserve shall cooperate fully in the system of check clearance bank the certificate of Federal reserve bank stock and collection for which provision is herein made. which was issued to it under its old name, or which was issued to such other member bank. The certifi- SECTION III.—Checks received for collection cate so surrendered shall be indorsed by the member bank surrendering it or by the member bank to which (1) Each Federal reserve bank will receive at par it was originally issued and shall be accompanied by from its member banks and from nonmember clearing proper proof of the change of name or consolidation. banks in its district, checks 13 drawn on all member and Upon receipt of such certificate of stock so indorsed, nonmember clearing banks, and checks drawn on all together with such proof, the Federal reserve bank other nonmember banks which are collectible at par shall cancel the certificate so surrendered and shall in funds acceptable to the Federal reserve bank of the issue in lieu thereof to and in the name of the member district in which such nonmember banks are located. bank surrending it a new certificate for the number of (2) Each Federal reserve bank will receive at par shares represented by the certificate so surrendered, or from other Federal reserve banks, and from all member if the member bank is entitled to surrender some of the and nonmember clearing banks in other Federal reserve stock which is represented by the surrendered certifi- districts which are authorized to route direct for the cate, and an application for the surrender and cancel- credit of their respective Federal reserve banks, checks lation of such stock is at the same time made in accord- drawn on all member and nonmember clearing banks ance with this regulation, the new certificate shall be of its district, and checks drawn on all other nonmember for the number of shares represented by the surrendered banks of its district which are collectible at par in certificate less the number of shares canceled pursuant funds acceptable to the collecting Federal reserve bank. to such application. All cases where certificates of (3) No Federal reserve bank shall receive on deposit stock are surrendered and new certificates issued in or for collection any check drawn on any nonmember lieu thereof and in a different name shall be reported bank which can not be collected at par in funds acceptto the Federal Reserve Board by the Federal reserve able to the Federal reserve bank of the district in which agent. such nonmember bank is located. SECTION IV.—Time schedule and availability of credits REGULATION J, SERIES OF 1928 (1) Each Federal reserve bank will publish a time (Superseding Regulation J of 1924) schedule showing the time at which any item sent to it will be counted as reserve and become available for CHECK CLEARING AND COLLECTION withdrawal or other use by the sending bank. For SECTION I.—Statutory provisions all checks received, the sending bank will be given Section 16 of the Federal reserve act authorizes the *3 A check is generally denned as a draft or order upon a bank or banking Federal Reserve Board to require each Federal reserve bouse, purporting to be drawn upon a deposit of funds, for the payment bank to exercise the function of a clearing house for its at all events of a certain sum of money to the order of a certain person therein named, or to him or his order, or to bearer, and payable on member banks, and section 13 of the Federal reserve demand. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

JANUARY, 1928 FEDERAL RESERVE BULLETIN 81 immediate credit, or deferred credit, in accordance with cular to charge such items to the reserve account or such time schedule, and as provided below. clearing account of any such bank at any time when (2) For all such checks as are received for immediate in any particular case the Federal reserve bank deems credit in accordance with such time schedule, immediate it necessary to do so. credit, subject to final payment, will be given upon the (5) Checks received by a Federal reserve bank paybooks of the Federal reserve bank at full face value in the able in other districts will be forwarded for collection, reserve account or clearing account upon day of receipt, upon the terms and conditions herein provided, to the and the proceeds will at once be counted as reserve and Federal reserve bank of the district in which such become available for withdrawal or other use by the checks are payable. sending bank. (6) The amount of any check for which payment in (3) For all such checks as are received for deferred actually and finally collected funds is not received shall credit in accordance with such time schedule, deferred be charged back to the forwarding bank, regardless of credit, subject to final payment, will be entered upon the whether or not the check itself can be returned. books of the Federal reserve bank at full face value, but the proceeds will not be counted as reserve nor become SECTION VI.—Other rules and regulations available for withdrawal or other use by the sending bank until such time as may be specified in such time Each Federal reserve bank shall also promulgate schedule,14 at which time credit will be transferred rules and regulations not inconsistent with the terms from the deferred account to the reserve account or of the law or of this regulation, governing the details clearing account subject to final payment and will then of its check clearing and collection operations. Such be counted as reserve and become available for with- rules and regulations shall be set forth by the Federal drawal or other use by the sending bank. reserve banks in their letters of instruction to their member and nonmember clearing banks and shall be SECTION V.—Terms of collection binding upon any member or nonmember clearing bank which sends any check to such Federal reserve The Federal Reserve Board hereby authorizes the bank for collection or to any other Federal reserve Federal reserve banks to handle such checks subject bank for the account of such Federal reserve bank for to the following terms and conditions; and each mem- collection. ber and nonmember clearing bank which sends checks to any Federal reserve bank for deposit or collection shall by such action be deemed (a) to authorize the REGULATION K, SERIES OF 1928 Federal reserve banks to handle such checks subject to the following terms and conditions, (b) to warrant (Superseding Regulation K of 1927) its own authority to give the Federal reserve banks such authority, and (c) to agree to indemnify any BANKING CORPORATIONS AUTHORIZED TO DO FOREIGN Federal reserve bank for any loss resulting from the BANKING BUSINESS UNDER THE TERMS OP SECTION 25(a) OF THE FEDERAL RESERVE ACT failure of such sending bank to have such authority. (1) A Federal reserve bank will act only as agent SECTION I.—Organization of the bank from which it receives such checks and will assume no liability except for its own negligence and Any number of natural persons, not less in any case its guaranty of prior indorsements. than five, may form a Corporation 15 under the pro- (2) A Federal reserve bank may present such checks visions of section 25 (a) for the purpose of engaging in for payment or send such checks for collection direct international or foreign banking or other international to the bank on which they are drawn or at which they or foreign financial operations or in banking or other are payable, or in its discretion may forward them to financial operations in a dependency or insular possesanother agent with authority to present them for paysion of the United States either directly or through the ment or send them for collection direct to the bank on agency, ownership, or control of local institutions in which they are drawn or at which they are payable. foreign countries or in such dependencies or insular (3) A Federal reserve bank may in its discretion possessions. and at its option, either directly or through an agent, accept either cash or bank drafts in payment of or in SECTION II.—Articles of association remittance for such checks and shall not be held liable for any loss resulting from the acceptance of bank Any persons desiring to organize a corporation for drafts in lieu of cash, nor for the failure of the drawee any of the purposes defined in section 25(a) shall bank or any agent to remit for such checks, nor for the enter into articles of association (see F. R. B. Form 151, nonpayment of any bank draft accepted in payment which is suggested as a satisfactory form of articles or as a remittance from the drawee bank or any agent. of association) which shall specify in general terms the (4) Checks received by a Federal reserve bank on objects for which the Corporation is formed, and may its member or nonmember clearing banks will ordina- contain any other provisions not inconsistent with law rily be forwarded or presented direct to such banks, which the Corporation may see fit to adopt for the and such banks will be required to remit or pay there- regulation of its business and the conduct of its affairs. for at par in cash or bank draft acceptable to the col- The articles of association shall be signed _ by each lecting Federal reserve bank, or at the option of such person intending to participate in the organization of Federal reserve bank to authorize such Federal reserve the Corporation and when signed shall be forwarded bank to charge their reserve accounts or clearing ac- to the Federal Reserve Board in whose office they shall counts; provided, however, that any Federal reserve be filed. bank may reserve the right in its check-collection cir- » Whenever these regulations refer to a corporation spelled with a capi i* For rules for computation of reserves and penalties for deficiencies intal C, they relate to a corporation organized under section 25(a) of the reserves, see Regulation D, Sees. Ill and IV, pp. 69-70. Federal reserve act. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

82 FEDERAL RESERVE BULLETIN JANUARY, 1928 SECTION III.—Organization certificate by citizens of the United States, chartered under the laws of the United States, or by firms or companies All of the persons signing the articles of association the controlling interest in which is owned by citizens shall under their hands make an organization certificate of the United States; and (c) that of the authorized on F. R. B. Form 152, which is made a part of this capital stock specified in the articles of association at regulation, and which shall state specifically: least 25 per cent has been paid in in cash and that First. The name assumed by the Corporation. each shareholder has individually paid in in cash at Second. The place or places where its operations are least 25 per cent of his stock subscription. Thereafter to be carried on. the cashier shall certify to the payment of the remain- Third. The place in the United States where its ing installments as and when each is paid in, in accordhome office is to be located. ance with law. Fourth. The amount of its capital stock and the number of shares into which it shall be divided. SECTION VI.—Capital stock Fifth. The names and places of business or resi- No Corporation may be organized under the terms dences of persons executing the organization certificate of section 25 (a) with a capital stock of less than and the number of shares to which each has subscribed. $2,000,000. The par value of each share of stock shall Sixth. The fact that the certificate is made to enable be specified in the articles of association, and no Corthe persons subscribing the same and all other persons, poration will be permitted to issue stock of no par firms, companies, and corporations who or which may value. If there is more than one class of stock, the thereafter subscribe to or purchase shares of the capital name and amount of each class and the obligations, stock of such Corporation to avail themselves of the rights, and privileges attaching thereto shall be set advantages of this section. forth fully in the articles of association. Each class of The persons signing the organization certificate shall stock shall be so named as to indicate to the investor acknowledge the execution thereof before a judge of as nearly as possible what is its character and to put some court of record or notary public who shall certify him on notice of any unusual attributes. thereto under the seal of such court or notary. Thereafter the certificate shall be forwarded to the Federal SECTION VII.—Transfers of stock Reserve Board to be filed in its office. Section 25 (a) provides in part that— SECTION IV.—Title A majority of the shares of the capital stock of any such corporation shall at all times be held and owned by the citizens of the United States, Inasmuch as the name of the Corporation is subject by corporations the controlling interest in which is owned by citizens of the United States, chartered under the laws of the United States or to the approval of the Federal Reserve Board, a pre- of a State of the United States, or by firms or companies the controlling liminary application for that approval should be filed interest in which is owned by citizens of the United States. with the Federal Reserve Board on F. R. B. Form 150, In order to insure compliance at all times with the which is made a part of this regulation. * This applirequirements of this provision after the organization cation should state merely that the organization of a of the Corporation, shares of stock shall be issuable and Corporation under the proposed name is contemplated transferable only on the books of the Corporation. and may request the approval of that name and its Every application for the issue or transfer of stock reservation for a period of 30 days. No Corporation shairbe accompanied by an affidavit of the party to which issues its own bonds, debentures, or other whom it is desired to issue or transfer stock, or by his such obligations will be permitted to have the word or its duly authorized agent, stating— "bank" as a part of its title. No Corporation which In the case of an individual.—(a) Whether he is or has the word "Federal" in its title will be permitted is not a citizen of the United States and, if a citizen also to have the word "bank" as a part of its title. of the United States, whether he is a natural-born citi- £>o far as possible the title of the Corporation should zen or a citizen by naturalization, and if naturalized, indicate the nature or reason of the business contemwhether he remains for any purpose in the allegiance plated and should in no case resemble the name of any of any foreign sovereign or State; (b) whether there is other corporation to the extent that it might result or is not any arrangement under which he is to hold in misleading or deceiving the public as to its identity, the shares or any of the shares which he desires to have purpose, connections, or affiliations. issued or transferred to him, in trust for or in any way under the control of any foreign State or any foreigner, SECTION V.—Authority to commence business foreign corporation, or any corporation under foreign control; and if so, the nature thereof. After the articles of association and organization In the case of a corporation.—(a) Whether such corcertificate have been made and filed with the Federal poration is or is not chartered under the laws of the Reserve Board, and after they have been approved United States or of a State of the United States. If by the Federal,, Reserve Board and a preliminary it is not, no further declaration is necessary, but if it permit to begin business has been issued by the Federal is it must also be stated (6) whether the controlling Reserve Board, the association shall become and be a interest in such corporation is or is not owned by citibody corporate, but none of its powers except such as zens of the United States, and (c) whether there is or are incidental and preliminary to its organization shall is not any arrangement under which such corporation be exercised until it has been formally authorized by will hold the shares or any of the shares if issued or the Federal Reserve Board by a final permit generally transferred to such corporation in trust for or in any to commence business. way under the control of any foreign State or any for- Before the Federal Reserve Board will issue its final eigner, or foreign corporation, or any corporation under permit to commence business, the president or cashier, foreign control; and if so, the nature thereof. together with at least three of the directors, must cer- In the case of a firm or company.—(a) Whether the tify (a) that each director elected is a citizen of the controlling interest in such firm or company is or is United States; (b) that a majority of the shares of not owned by citizens of the United States; and, if so, stock is owned by citizens of the United States, by (6) whether there is or is not any arrangement under corporations the controlling interest in which is owned which such firm or company will hold the shares or Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

JANUARY, 1928 FEDERAL RESERVE BULLETIN 83 any of the shares if issued or transferred to such firm (6) Under the laws of any foreign country or a colony or company in trust for or in any way under the control or dependency thereof; of any foreign State or any foreigner, or foreign corpo- (c) Under the laws of any State, dependency, or ration, or any corporation under foreign control; and insular possession of the United States; if so, the nature thereof. Provided, first. That such other corporation is not The board of directors of the Corporation, whether engaged in the general business of buying or selling acting directly or through an agent, may, before mak- goods, wares, merchandise, or commodities in the ing any issue or transfer of stock, require such further United States; and second, that it is not transacting evidence as in their discretion they may think neces- any business in the United States except such as^is sary in order to determine whether or not the issue or incidental to its international or foreign business. transfer of the stock would result in a violation of the Except with the approval of the Federal Reserve law. No issue or transfer of stock which would cause Board, no Corporation shall invest an amount in excess 50 per cent or more of the total amount of stock issued of 15 per cent of its capital and surplus in the stock or outstanding to be held contrary to the provisions of of any corporation engaged in the business of banking, the law or these regulations shall be made upon the or an amount in excess of 10 per cent of its capital and books of the Corporation. The decision of the board surplus in the stock of any other kind of corporation. of directors in each case shall be final and conclusive No Corporation shall purchase any stock in any and not subject to any question by any person, firm, other corporation organized under the terms of section or corporation on any ground whatsoever. 25 (a) or under the laws of any State, which is in sub- If at any time by reason of the fact that the holder stantial competition therewith, or which holds stock of any shares of the Corporation ceases to be a citizen or certificates of ownership in corporations which are of the United States, or, in the opinion of the board of in substantial competition with the purchasing Cordirectors, becomes subject to the control of any foreign poration. This restriction, however, does not apply State or foreigner or foreign corporation or corporation to corporations organized under foreign laws. under foreign control, 50 per cent or more of the total amount of capital stock issued or outstanding is held SECTION X.—Branches contrary to the provisions of the law or these regulations, the board of directors may, when apprised of that fact, No Corporation shall establish any branches except forthwith serve on the holder of the shares in question with the approval of the Federal Reserve Board, and a notice in writing requiring such holder within two in no case shall any branch be established in the United months to transfer such shares to a citizen of the States. United States, or to a firm, company, or corporation approved by the board of directors as an eligible stockholder. When such notice has been given by the board SECTION XI.—Issue of debentures, bonds, and promissory of directors the shares of stock so held shall cease to notes confer any vote until they have been transferred as required above and if on the expiration of two months A Corporation is not required by law or by this reguafter such notice the shares shall not have been so lation to make application to or obtain the approval transferred, the shares shall be forfeited to the Corpor- of the Federal Reserve Board before making an issue ation. of its debentures, bonds, notes, or other obligations, but Corporations issuing their debentures, bonds, notes, The board of directors shall prescribe in the by-laws or other obligations must comply with the rules, reguof the Corporation appropriate regulations for the lations, and conditions hereinafter set forth. registration of the shares of stock in accordance with (a) General conditions.—All debentures, bonds, the terms of the law and these regulations. The bynotes, or other such obligations issued by a Corporalaws must also provide that the certificates of stock tion (except notes payable to banks or bankers within issued by the Corporation shall contain provisions one year) shall— sufficient to put the holder on notice of the terms of the law and the regulations of the Federal Reserve Board (1) Be payable only in gold coin of the United States defining the limitations upon the rights of transfer. of the standard of weight and fineness existing at the time of issue; SECTION VIII.—Operations in the United States (2) Be payable not more than 20 years after the date of issue; No Corporation shall carry on any part of its business (3) Be secured by collateral which shall— in the United States except such as shall be incidental (i) Consist of lawful money of the United States and/ to its international or foreign business. Agencies may or securities, notes, drafts, bills of exchange, acceptbe established in the United States with the approval ances, including bankers' acceptances, and other of the Federal Reserve Board for specific purposes, evidences of indebtedness and/or shares of stock in but not generally to carry on the business of the which the Corporation is authorized by law to invest Corporation. its funds; (ii) Have an aggregate market value equal at all SECTION IX.—Investments in the stock of other corpora-times to not less than 110 per cent of the aggregate tions principal amount of the obligations issued or to be issued against such securities; and It is contemplated by the law that a Corporation (in) Be transferred and delivered free of any prior shall conduct its business abroad either directly or in- lien, charge, or encumbrance thereon of any kind whatdirectly through the ownership or control of corpora- soever, to a financially responsible bank or trust comtions, and accordingly the Federal Reserve Board pany, which is a member of the Federal reserve system, hereby consents that a Corporation may invest in the as trustee under a trust indenture executed by the stock, or certificates of ownership, of any other cor- Corporation as security for the obligations of the Corporation organized— poration issued or to be issued thereunder, which trust (a) Under the provisions of section 25 (a) of the indenture shall prescribe the general form of such obli- Federal reserve act; gations and shall require that every such obligation Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

84 FEDERAL RESERVE BULLETIN JANUARY, 1928 shall be authenticated by the certificate of the trustee value of the collateral to an amount below 110 per cent noted thereon. of the aggregate principal amount of the obligations (b) Requirements after issuance.—Within 10 days issued or to be issued against such securities. after the issuance of any such debentures, bonds, notes, Such statement shall be accompanied by an acknowlor other obligations (other than promissory notes pay- edgment by the trustee under the trust indenture able to banks or bankers within one year) the Corpora- that there has been delivered to it and that it holds tion issuing the same shall file with the Federal Reserve as such trustee the additional collateral specified in Board— such statement. (1) A statement verified by the affidavit of its presi- The Federal Reserve Board reserves the right to dent or a vice president and its treasurer, cashier, or make public whenever it believes it to be necessary in comptroller setting forth— the public interest any documents filed with it under (1) That the requirements of this regulation in this subsection. respect of the issue of debentures, bonds, notes, or (c) Advertisements.—No circular, prospectus, letter, other obligations have been complied with in all advertisement, or other statement published or issued respects; in any form or manner by a Corporation shall contain (ii) The aggregate amount of the debentures, bonds, any matter to indicate that any issue of debentures, notes, or obligations issued under the trust indenture bonds, notes, or other obligations by such Corporation and the net price received by the Corporation therefor; or the collateral securing same has in any way received (iii) The various items of the collateral security the approval of the Federal Reserve Board or that the pledged under the trust indenture and the market collatera securing same has been appraised or approved value, at the time of the issue of such obligations, of in any way by the Federal Reserve Board. This each and every item thereof; and requirement will be strictly enforced in order that there (iv) The financial condition of the Corporation and, may be no possibility of the public obtaining the in detail, all its assets and liabilities (fixed and contin- impression that the Federal Reserve Board has apgent) as of the day immediately following such issue. proved in any way any such issue of debentures, (2) A copy of the trust indenture pursuant to which bonds, notes, or other such obligations or the collateral such obligations of the Corporation were issued, cer- securing same. tified as correct by the trustee therein named. (3) A certificate of the trustee under such trust SECTION XII.—Sale of securities with guaranty or indenture setting forth— indorsement (i) That it has accepted the trust created by such trust indenture and is acting as trustee thereunder; Whenever a Corporation sells, discounts, or nego- (ii) The securities and/or cash which have been tiates with its indorsement or guaranty any securities, delivered to it and which it holds as trustee under the notes, drafts, bills of exchange, acceptances, bankers' trust indenture; and acceptances, or other evidence of indebtedness, it shall (iii) The name and address of the counsel for the enter on its books a proper record thereof, describing trustee. in detail each such evidence of indebtedness so sold, (4) The latest published balance sheet of the Cor- discounted, or negotiated, the amount thereof, the poration, certified as correct by the president or a vice parties thereto, the maturity thereof, and the nature president and by the treasurer, an assistant treasurer, of the Corporation's liability thereon. Every financial the cashier or assistant cashier or the comptroller of statement of the Corporation submitted to the Federal the Corporation. Reserve Board or made public in any way shall show (5) An opinion of the counsel for the trustee under the aggregate amount of all such liabilities outstanding the trust indenture to the effect that— as of the date on which such statement purports to (i) The trust indenture has been validly executed show the financial condition of the Corporation. in pursuance of due corporate action; (ii) That all necessary legal formalities have been SECTION XIII.—Acceptances •complied with to make such obligations, when executed by the Corporation and authenticated by the trustee, Kinds.—Any corporation may accept (1) drafts and valid and enforcible obligations of the Corporation bills of exchange drawn upon it which grow out of entitled to the benefits afforded by the trust indenture; transactions involving the importation or exportation and of goods, and (2) drafts and bills of exchange which are (iii) That the transfers executed to the trustee of drawn by banks or bankers located in foreign countries the collateral security held by it under the trust in- or dependencies or insular possessions of the United denture are in appropriate and sufficient form. States for the purpose of furnishing dollar exchange as (6) Copies of all prospectuses and other literature required by the usages of trade in such countries, issued fc>y the Corporation or its officers or bankers dependencies, and possessions, provided, however, describing or affecting such issue. that no Corporation shall exercise its power to accept In case there shall be any substitution of or change in drafts or bills of exchange if at the time such drafts or the securities at any time held under any such trust bills are presented for acceptance it has outstanding indenture securing an issue of debentures, bonds, any debentures, bonds, notes, or other such obligations notes, or other obligations the Corporation, each time issued by it. it makes a report to the Federal Reserve Board pur- Maturity.—No Corporation shall accept any draft or suant to the provisions of Section XVI, shall file with bill of exchange which grows out of a transaction the Federal Reserve Board a statement, verified by involving the importation or exportation of goods with the affidavit of the president or a vice president and a maturity in excess of six months, or shall accept any the treasurer, cashier, or comptroller of the Corpora- draft or bill of exchange drawn for the purpose of tion— furnishing dollar exchange with a maturity in excess (1) Giving -the details of such substitution or of three months. change; and Limitations.—(1) Individual drawers: No acceptances (2) Certifying that such substitution or change has shall be made for the account of any one drawer in an not resulted in a reduction of the aggregate market amount aggregating at any time in excess of 10 per Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

JANUARY, 1928 FEDERAL RESERVE BULLETIN 85 cent of the subscribed capital and surplus of the Cor-the discount of commercial or business paper actually poration, unless the transaction be fully secured or owned by the person negotiating the same, and the represents an exportation or imporation of commodities purchase of readily marketable bonds, notes, and and is guaranteed by a bank or banker of undoubted other investment securities offered for sale in the open solvency. (2) Aggregates: Whenever the aggregate market, shall not be considered as money borrowed of acceptances outstanding at any time (a) exceeds the within the meaning of this paragraph. The liability amount of the subscribed capital and surplus, 50 perof a customer on account of an acceptance made by cent of all the acceptances in excess of the amount shall the Corporation for his account is not a liability for be fully secured; or (b) exceeds twice the amount of themoney borrowed within the meaning of this paragraph subscribed capital and surplus, all the acceptances unless and until he fails to place the Corporation in outstanding in excess of such amount shall be fully funds to cover the payment of the acceptance at secured. (The Corporation shall elect whichever maturity or unless the Corporation itself holds the requirement (a) or (b) calls for the smaller amount of acceptance. secured acceptances.) In no event shall any Corpora- Aggregate liabilities of the Corporation.—The aggretion have outstanding at any one time acceptances gate of the Corporation's liabilities outstanding on drawn for the purpose of furnishing dollar exchange in account of acceptances, average domestic and foreign an amount aggregating more than 50 per cent of its deposits, debentures, bonds, notes, guaranties, insubscribed capital and surplus. dorsements, and other such obligations shall not exceed Reserves.—Against all acceptances outstanding at any one time ten times the amount of the Corporawhich mature in 30 days or less a reserve of at least 15 tion's subscribed capital and surplus. In determining per cent shall be maintained, and against all accept- the amount of the liabilities within the meaning of thisances outstanding which mature in more than 30 days paragraph, indorsements of bills of exchange having a reserve of at least 3 per cent shall be maintained. not more than six months to run, drawn and accepted Reserves against acceptances must be in liquid assets by others than the Corporation, shall not be included. of any or all of the following kinds: (1) Cash; (2) Operations abroad.—Except as otherwise provided balances with other banks; (3) acceptances of other in the law and these regulations, a Corporation may banks or bankers; and (4) obligations of the Govern- exercise abroad not only the powers specifically set ment of the United States. forth in the law but also such incidental powers as may be usual in the determination of the Federal SECTION XIV.—Deposits Reserve Board in connection with the transaction of the business of banking or other financial operations in In the United States.—No Corporation shall receive the countries in which it shall transact business. In in the United States any deposits except such as are the exercise of any of these powers abroad a Corporaincidental to or for the purpose of carrying out trans- tion must be guided by the laws of the country in actions in foreign countries or dependencies of the which it is operating and by sound business judgment United States where the Corporation has established and banking principles. agencies, branches, correspondents, or where it operates through the ownership or control of subsidiary corpora- SECTION XVI.—Reports and examinations tions. Deposits of this character may be made by individuals, firms, banks, or other corporations, Reports.—Each Corporation shall make at least twowhether foreign or domestic, and may be time deposits reports annually to the Federal Reserve Board at such or on demand. times and in such form as it may require. Outside the United States.—Outside the United Examinations.—Each Corporation shall be examined States a Corporation may receive deposits of any kind at least once a year by examiners appointed by the from individuals, firms, banks, or other corporations: Federal Reserve" Board. The cost of examinations Provided, however, That if such Corporation has anshyall be paid by the Corporation examined. of its bonds, debentures, or other such obligations outstanding it may receive abroad only such deposits SECTION XVII.—Amendments to regulations as are incidental to the conduct of its exchange, discount, or loan operations. These regulations are subject to amendment by the Reserves.—Against all deposits received in the Federal Reserve Board from time to time: Provided, United States a reserve of not less than 13 per cent however, That no such amendment shall prejudice must be maintained. This reserve may consist of obligations undertaken in good faith under regulationscash in vault, a balance with the Federal reserve bank in effect at the time they were assumed. of the district in which the head office of the Corporation is located, or a balance with any member bank. Against all deposits received abroad the Corporation shall maintain such reserves as may be required by REGULATION L, SERIES OF 1928 local laws and by the dictates of sound business judgment and banking principles. (Superseding Regulation L of 1924) INTERLOCKING BANK DIRECTORATES UNDER THE SECTION XV.—General limitations and restrictions CLAYTON ACT Liabilities of one borrower.—The total liabilities to SECTION I.—Definitions a Corporation of any person, company, firm, or corporation for money borrowed, including in the liabilities Within the meaning of this regulation— of a company or firm the liabilities of the several The term "member bank" shall apply to any namembers thereof, shall at no time exceed 10 per cent tional bank and any State bank or trust company of the amount of its subscribed capital and surplus: which is a member of the Federal reserve system. Provided, however, That the discount of bills of exchangeThe term "national bank" shall be construed todrawn in good faith against actually existing values, apply not only to national banking associations but Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

86 FEDERAL RESERVE BULLETIN JANUARY, 1928 also to banks, banking associations, and trust com- SECTION III.—Exceptions panies organized or operating under the laws of the United States, including all banks and trust companies The provisions of section 8 of the Clayton Act— doing business in the District of Columbia, regardless (1) Do not apply to mutual savings banks not havof the sources of their charters. ing a capital stock represented by shares. The term " resources " shall be construed to pean an (2) Do not prohibit a person from being at the same amount equal to the sum of the deposits, capital, sur- time a director, officer, or employee of a national bank plus, and undivided profits. and not more than one other national bank, State The term "State bank" shall include any bank, bank, or trust company, where the entire capital banking association, or trust company incorporated stock of one is owned by the stockholders of the other. under State law. (3) Do not prohibit a person from being at the same The term "private banker" shall apply to any unin- time a class A director of a Federal reserve bank and corporated individual engaging in one or more phases also an officer or director, or both an officer and a direcof the banking business as that term is generally under- tor, in one member bank. stood and to any member of an unincorporated firm (4) Do not prohibit a person who is serving as engaging in such business. director, officer, or employee of a national bank, even The term "Edge Act" shall mean section 25(a) of the though it has resources aggregating over $5,000,000, Federal reserve act, as amended December 24, 1919. from serving at the same time as director, officer, or The term "Edge corporation" shall mean any cor- employee of any number of State banks and trust comporation organized under the provisions of the Edge panies, provided such State institutions are not located Act. in the same city of over 200,000 inhabitants as the The term "city of over 200,000 inhabitants" includes national bank and do not have resources aggregating any city, incorporated town, or village of more than in the case of any one bank more than $5,000,000. 200,000 inhabitants, as shown by the last preceding (5) Do not prohibit a person from serving at the decennial census of the United States. Any bank same time as director, officer, or employee of any numlocated anywhere within the corporate limits of such ber of national banks, provided no two of them are city is located in a city of over 200,000 inhabitants located in the same city of over 200,000 inhabitants within the meaning of the Clayton Act, even though and no one of them has resources aggregating over it is located in a suburb or an outlying district at some $5,000,000. distance from the principal part of the city. (6) Do not prohibit a person who is not a director, officer, or employee of any national bank from serving [SECTION II.—Prohibitions of Clayton Act at the same time as officer, director, or employee of any Under section 8 of the Clayton Antitrust Act— number of State banks or trust companies, regardless (1) No person who is a director or other officer or of their locations and resources. employee of a national bank having resources aggre- (7) Do not prohibit a person who is an officer or gating more than $5,000,000 can legally serve at the employee but not a director of a State bank from servsame time as director, officer, or employee of any ing as director, officer, or employee of a national bank, other national bank, regardless of its location. even though either or both of such banks have resources (2) No person who is a director in a State bank or aggregating over $5,000,000, provided both banks are trust company having resources aggregating more not located in the same city of over 200,000 inhabitants. than $5,000,000 or who is a private banker having (8) Do not prohibit a person who is an officer or resources aggregating more than $5,000,000 can legally employee but not a director of a national bank from serve at the same time as director of any national serving at the same time as director, officer, or embank, regardless of its location. ployee of a State bank, even though either or both of (3) No person can legally be a director, officer, or such banks have resources aggregating over $5,000,000, -employee of a national bank located in a city of more provided both banks are not located in the same city than 200,000 inhabitants who is at the same time a of over 200,000 inhabitants. private banker in the same city or a director, officer, (9) Do not apply to persons who have obtained the or employee of any other bank (State or National) consent or approval of the Federal Reserve Board located in the same city, regardless of the size of such under the provisions of the Kern amendment, section bank. 25 of the Federal reserve act, or the Edge Act, as The eligibility of a director, officer, or employee hereinafter provided. under the foregoing provisions is determined by the Exceptions cumulative.—The above exceptions are average amount of deposits, capital, surplus," and cumulative. undivided profits as shown in the official statements of such bank, banking association, or trust company filed SECTION IV.—Permission oj the Federal Reserve Board as provided by law during the fiscal year next preceding under Kern amendment the date set for the annual election of directors, and when a director, officer, or employee has been elected or By the Kern amendment, approved May 15, 1916, selected in accordance with the provisions of the Clayton as amended May 26, 1920, the Clayton Act was Act it is lawful for him to continue as such for one year amended so as to authorize the Federal Reserve Board thereafter under said election or employment. to permit any private banker or any officer, director, When any person elected or chosen as a director, or employee of any member bank or class A director officer, or employee of any bank is eligible at the time of a Federal reserve bank to serve as director, officer, of his election or selection to act for such bank in such or employee of not more than two other banks, banking -capacity his eligibility to act in such capacity is not associations, or trust companies coming within the proaffected by reason of any change in the affairs of such hibitions of the Clayton Act, provided such other banks bank from whatsoever cause until the expiration of are not in substantial competition with such private one year from the date of his election or employment. banker or member bank. 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87 JANUABY, 1928 FEDERAL RESERVE BULLETIN Substantial competition.—If the institutions involved on F. R. B. Form 94e showing the character of his are not in substantial competition, the board is author- or his firm's business. ized, in its discretion, to grant, withhold, or revoke such (3) Forward all these papers to the Federal reserve consent; but if they are in substantial competition, the agent of his district, who will attach his recommendaboard has no discretion in the matter and must refuse tion on F. R. B. Form 94b, which is made a part of such consent. this regulation, and forward them in due course to the The board has adopted the following statement of Federal Reserve Board. general principles for its guidance in determining Approval or disapproval.—As soon as an applicawhether banks are in substantial competition within tion is acted upon by the board, the applicant will be the meaning of the Kern amendment to the Clayton advised of the action taken. Act: If the board approves the application, a formal certificate of permission to serve on the banks involved In genera], two banks will be deemed to be in substantial competition if they actually compete for a considerable amount of business, i. e., if will be issued to the applicant. a considerable portion of the business of each is of the same character and Rehearing.—If the board decides that the banks are in doing or seeking such business they actually compete for the same in substantial competition and that it can not approve customers or prospective customers, regardless of whether or not it is probable or possible that an interlocking directorate between them would the application, it will, upon petition of the applicant, result in injury to the public by making credit less available. If the reconsider its decision and afford him every opporstatements of two banks show that each has a considerable amount of tunity to present any additional facts or arguments the same class of deposits or loans and it appears from the evidence submitted that they are so located as to be in a position to serve the same bearing on the subject. customers conveniently, the board will presume, in the absence of Effect of permits.—Permission once granted is conevidence to the contrary, that they are in substantial competition. tinuing until revoked, and need not be renewed. This presumption may be rebutted, however, by any evidence showing that they are not actually competing for such business, e. g., that they Revocation.—All permits, however, are subject to actually serve different classes of customers, that the business in question revocation at any time in the discretion of the Federal is not actually sought by one bank but is merely incidental to its other Reserve Board. The issuance of a permit to any perbusiness, or that competition has already been eliminated through common stock ownership. The existence of substantial competition, son shall have the effect of revoking any or all permits however, may be shown by evidence other than that described above. which may have been issued previously to that person. This is not intended as a precise definition of the term " substantial competition/' but merely as a broad SECTION V.—Permits under section 25 of the Federal statement of the general principles which will be reserve act observed by the Federal Reserve Board in determin- With the approval of the Federal Reserve Board, ing whether banks are in substantial competition. any director, officer, or employee of a member bank Whether or not substantial competition exists in any which has invested in the stock of any corporation particular case is a question of fact which must be principally engaged in international or foreign banking determined in the light of all the facts and circumor financial operations or banking in a dependency or stances involved in such case. insular possession of the United States, under the pro- Burden of proof.—Inasmuch as the Federal Reserve visions of section 25 of the Federal reserve act, may Board has no power to permit a person to serve two or serve as director, officer, or employee of any such formore banks coming within the prohibitions of the eign bank or financial corporation. Clayton Act unless the institutions involved are not in Applications for approval.—The approval of the substantial competition, the applicant for such per- Federal Reserve Board for such interlocking directormission has the burden of proving to the board that ates may be obtained through an informal application such institutions are not in substantial competition. in the form of a letter addressed to the Federal Reserve When obtained.—Inasmuch as the Kern amendment Board either by the officer, director, or employee excepts from the prohibitions of the Clayton Act only involved, or in his behalf by one of the banks which those "who shall first procure the consent of the he is serving. Such application should be sent directly Federal Reserve Board," it is a violation of the law to to the Federal Reserve Board. serve two or more institutions in the prohibited classes before such consent has been obtained. Such consent SECTION VI.—Permits to serve Edge corporations should be obtained, therefore, before becoming an officer, director, or employee of more than one bank in the With the approval of the Federal Reserve Board— prohibited classes. Such consent may be procured (1) Any officer, director, or employee of any member before the person applying therefor has been elected as bank may serve at the same time as director, officer, a class A director of a Federal reserve bank or as a or employee of any Edge corporation in whose capital director of any member bank. stock the member bank shall have invested. Applications for permission.—A person wishing to (2) Any officer, director, or employee of any Edge obtain the permission of the Federal Reserve Board to corporation may serve at the same time as officer, serve banks coming within the prohibitions of the director, or employee of any other corporation in whose Clayton Act should— capital stock such^Edge corporation shall have invested (1) Make formal application on F. R. B. Form 94, under the provisions of the Edge Act. or, if a private banker, on F. R. B. Form 94d. Each Applications for approval.—Such approval may be of these forms is made a part of this regulation. obtained through an informal application in the form (2) Obtain from each of the banks involved a state- of a letter addressed to the Federal Reserve Board ment on F. R. B. Form 94a, which is made a part of either by the director, officer, or employee involved, this regulation, showing the character of its business, or in his behalf by one of the banks or corporations together with a copy of its last published statement of involved. Such applications should be sent directly condition, and, if a private banker, make a statement to the Federal Reserve Board. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

88 FEDERAL RESERVE BULLETIN JANUABT, 1928 Changes in State Bank Membership Powers Name of bank granted The following list shows the changes affecting State bank membership during the month ended December 21, 1927, on which date 1,284 State institutions were Boston, Mass Commercial Security Ito9. National Bank. members of the system: Marblehead, Mass... National Grand Bank.. Ito9. Ellsworth, Me Liberty National Bank. Ito9. ADMISSIONS I N rv ew in a g r t k o , n N , N . J . - J I M rv o i u n n g t t on P N ro a s t p io e n c a t lB N an a k - . I I t t o o 9 9 . . tional Bank. Auburn, N. Y Cayuga County Na- Total re- tional Bank. sources Cortland, N. Y National Bank of Ito9. National Bank of Nia- 9.1 Niagara Falls, N. Y_. gara and Trust Co. District No. 2 Wheatley Hills Na- Ito9. Westbury, N. Y tional Bank. People's Trust Co., Dunellen, N. J $100,000 $50,000 $150,000 Lewisburg National Ito9. Cohocton State Bank, Cohocton, N. Y_. 50,000 25,000 613,999 L Sh ew am is o b k u i r n g , , P P a a Na B ti a o n n k a . l Bank of Ito9. District No. 10 Swarthmore, Pa Swarthmore National Ito9. Bank. Fidelity Savings State Bank, Topeka, York, Pa Drovers & Mechanics Ito9. Kans 200,000 40,000 1,637,273 National Bank. First Security Bank, Rock Springs, Pikeville, Ky First National Bank.... Ito8. Wyo 100,000 100,000 2,576,334 Bellaire, Ohio First National Bank.... 3 and 5.1 Dayton, Ohio Merchants National 2, 3, 5 to 8.1 Bank and Trust Com- j CHANGES Hamilton, Ohio. First National Bank and ! 2, 3, 5 to 7.i Trust Co. Pittsburgh, Pa_. Exchange National 1 to 9. Bank. j District No. 6 Pittsburgh, Pa... Forbes National Bank..1 Ito9. Dothan, Ala Houston National Bank.; 2 to 9.1 Engineers Bank & Trust Co., Birming- Mobile, Ala First National Bank i 9.1 ham, Ala. (title changed to Southern Vicksburg, Miss.. Merchants National 1 to 9. Bank& Trust Co.). Bank. Bank of Locust Grove, Locust Grove, (1 to 3. Ga. (voluntary withdrawal) $25,000 $12,000 | $138,000 Winchester, Tenn Farmers National Bank. \5 to 9. Chicago, 111 National Builders Bank.. Ito9. District No. 8 Paris, 111 First National Bank.....! 1 to 9. Greenwood, Miss First National Bank.....1 2, 3, 5 to 8.* Planters Bank & Trust Co., Ruleville, Springfield, Mo McDaniel National I 1 to 9. Miss, (voluntary withdrawal) 50,000 33,000 ! 290,000 Bank. Golden, Colo. Rubey National Bank...! Ito9. District No. 9 Waco, Tex Citizens National | 1 to 9. Bank. Bank of Boulder, Boulder, Mont, Orange, Calif.. 12 First National Bank....J Ito9. (voluntary withdrawal) 25,000 15,000 District No. 11 i Supplemental. A very State Bank, A very, Tex. Changes in National Bank Membership (insolvent) 25,000 15,000 115,000 First Guaranty State Bank, Tioga, Tex. The Comptroller of the Currency reports the follow- (succeeded by nonmember) 30,000 11,000 114,00 First State Bank, Richland, Tex. (ab- ing increases and reductions in the number and capital sorbed by First National Bank of of national banks during the period from November 19 Richland). __ 25,000 25,000 324,000 to December 23, 1927, inclusive: First State Bank, Denton, Tex. (succeeded by nonmember) 50,000 4,000 504,000 Num- Amount ber of of banks capital Fiduciary Powers Granted to National Banks New charters issued 13 $1,695,000 Restored to solvency 0 i 0 Increase of capital approved1 18 112,000,000 During the month ended December 21, 1927, the Aggregate of new charters, banks restored to i Federal Reserve Board approved applications of the solvency, and banks increasing capital 31 13,695,000 national banks listed below for permission to exercise Liquidations _. _„ 19 2,035,000 one or more of the fiduciary powers named in section 11 Reducing capital2 1 100,000 (k) of the Federal reserve act as amended, as follows: Total liquidations and reductions of capital... 20 2,135,000 (1) Trustee; (2) executor; (3) administrator; (4) Consolidation of national banks under act of Nov. 7,1918 - . 1 \ 100,000 registrar of stocks and bonds; (5) guardian of estates; Consolidation of a national bank and a State bank (6) assignee; (7) receiver; (8) committee of estates of under act of Feb. 25,1927 2 35,100,000 lunatics; (9) in any other fiduciary capacity in which Total consolidations 3 135,200,000 State banks, trust companies, or other corporations Aggregate increased capital for period |13,695,000 which come into competition with national banks are Reduction of capital owing to liquidations, etc | 2,135,000 permitted to act under the laws of the State in which Net increase 11,560,000 the national bank is located. 1 Includes two increases in capital aggregating $10,050,000 incident to consolidations of State banks under act of Feb. 25, 1927. 2 Incident to a consolidation under act of Nov. 7, 1918. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

JANUARY, 1928 FEDERAL RESERVE BULLETIN 89 DETAILED BANKING STATISTICS FOR THE UNITED STATES FEDERAL RESERVE BANKS RESOURCES AND LIABILITIES, BY WEEKS [In thousands of dollars] RESOURCES Federal Reserve Bank Total New Phila- Cleve- Rich- At- Chi- St. Minne Kansas San Boston York delphia land mond lanta cago Louis apolis City Dallas Francisco Gold with Federal reserve agents: Dec. 7 1,530,667;! 108,969 300,068 117,305 202,372 34,925 141,312 257,767 45,476 47,995 53, 445 30,014 191,019 Dec. 14 l,585,009;| 107,475 340,067 121,677 204,036 34,151 141,570 257,767 47,267 45,395 57,052 30, 324 198, 228 Dec. 21 1,505,098: 114,906 285, 067113,117 192,892 33,107 141.134 247,767 39,365 47,031 58,140 33, 544 199,028 Dec. 28 1,469,255: 128,096 225,067 109,211 179,339 32,318 144,817 247,767 41,896 48,729 59,246 34,569 218,200 Gold redemption fund with United States Treasury: Dec. 7 46,190 3,972 12, 354 8,042 3,402 3,239 2,159 2,803 2,127 2,152 1,633 2,339 Dec. 14 47,952 4,674 15, 502 9, 594 2,420 3,276 1,848 1,726 1,674 1,872 2,007 1,572 1,787 Dec. 21 53,925 6,634 14,183 6,847 4,749 3,423 2,127 5,614 1,901 1,997 1,563 2,131 2,756 Dec. 28 54,681 7,841 17,941 4,222 3,505 1,646 4,582 1,673 2,532 2,136 1,436 2,208 Gold held exclusively against Federal reserve notes: Dec. 7 1, 576,857^112,941 312,422 125, 347 205,774 38,164 143,471 260, 570 47, 603 50,147 55,413 31, 647 193,358 Dec. 14 1,632,961 112,149 355, 569 131, 271 206,456 37,427 143,418 259, 493 48,941 47,2«7| 50, 059 31, 896200,015 Dec. 21 1,559,023 121, 540 299, 250119, 964 197,641 36, 530 143, 261 253, 381 41,266 49, 028 59, 703 35, 675201, 784 Dec. 28 1,523,936 135,937 243,008 114,170 183,561 35,823 146,463 252,349 43,569 51,261j 61,382 36,005 220,408 Gold settlement; fund v with Federal Reserve Board: Dec. 7 586,044 35,925 191,978 38,509! 50,446 30, 722 6,710 90, 079 26,455 16, 9531 31, 774 19, 723] 46,770 Dec. 14 487, 463 25, 642 155, 545 31,773j 48,138 27,168 3,155 71, 828 19,192 18, 393 27, 339 15,939 43,351 Dec. 21 554, 358 27, 712 238,205 25,017' 24,800 20, 691 6,967 97,850 19, 354 14,416 25,819 14,831! 38,696 Dec. 28 595,110 11,163 225,513 28,305' 53,875 20,353 10,045 118,007 23,207 18,186 28,657 16,623| 41,176 Gold and gold certificatesjield by banks: Dec. 7 34,179 431,088 24,825j 39,589 7,994 8,095 55,153 11,120 6,498 6,414 7,372! 31.507 Dec. 14 671,778 I 33,023 436, 433 25,695! 39,037 8,565 8, 279 56, 248 12, 015 6,176 7, 203 7, 397i 3i; 707 Dec. 21 _ 628,942 31,873 408,892 23,8511 37,548 7,967 6, 995 50, 608 10, 780 6,104 6.422 7,319 30,583 Dec. 28 620,054 36,288 393,607 24,240! 36,800 9,386 7,293 52,640 10,655 4,788 6,334 7,279 30,744 Total gold reserves: Dec. 7 2,826,7351 183,045 188,6811 295,809 158, 276405, 802 85,178 73,598 93, 601 58, 742271, 635 Dec. 14 2,792.202) 170,814 947, 547188, 739; 293,631 73,160 154, 852387, 569 80,148 71, 836 93, 601 55,232 275, 073 Dec. 21 2,742,3231 181,125 946,347 168,832^ 259,989 65,188 157, 223401,839 71, 400 69, 548 91, 944 57,825 271, 063 Dec. 28 2,739,100 183,388 862,128 166,715; 274,236 65,582 163,801 422,996 77,431 74,235 96,373 59,907 292,328 Reserves other than gold: Dec. 7 126, 540 13,098 23, 658 6, 554J 9, 264 4,887 13, 420 15, 703 12, 568 4,225 5,674 9,563 7,926 Dec. 14 125, 764 12,860 23, 220 5, 7721 9,152 5,426 14,357 15,344 12, 781 4, 330 5, 688 9,420 7,414 Dec. 21 115, 219 12, 568 19,866 5, 284! 8,927 5,140 13,128 13, 773 11, 538 3, 803 5, 750 8,809 Dec. 28 123,096 12,499 22,191 5,799; 10,666 6,359 11,376 15,555 12,680 3,750| 5,444 8,922 7,855 Total reserves: Dec. 7 2,953,275 196,143 959,146 195,235! 305,073 81,767 171,696 421,505 97,746j 77,823 99,275 68,305 279,561 Dec. 14 2,917,966 183,674 970, 767 194,51l| 302,783 78,586 169,209 402,913 92,929| 76,166 99,289 64,652 282,487 Dec. 21 2,857,542 193,693 966,213 174,116 268,916 70,328 170,351 415,612 82,938 i 73,351 97,694 66,634 277,696 Dec. 28 2,862,196 195,887 884,319 172,514 284,902 71,921 175,177 438,551 90,111| 77,985 101,817 68,829 300,183 Nonreserve cash: Dec. 7 53,728 6,665 16,586 819 2,926 4,592 3,913 5,466 3,4701 725 2,345 2,066 4,155 Dec. 14 56,310 7,262 16,509 997 4,043 4,461 3,640 6,308 3,686 1,031 2,193 2,343 3,837 Dec. 21 55,211 7,949 16,609 952 3,499 4,415 3,525 5,833 3,433! 1,103 2,040 2,007 3,846 Dec. 28 69,647 8,071 21,009 1,293 4,911 6,176 4,522 7,861 4,303| 1,226 2,827 2,770 4,678 Bills discounted: Secured by U. S. Govern* I ment obligations— i Dec. 7 294,613 26,652 89, 769 22,456 31,500 7,099 11,310 45,033 7,6931 718 6,705 2,766 42,912 Dec. 14 347,586 26,898 100,046 27,967 43,869 6,722 11, 781 68,452 9,822 1,473 7,737 3,060 39, 759 Dec. 21 390,830 19,948 141,827 35,441 57,397 8,879 13,317 49,694 17,537 1,586 8, 558 3,081 33.565 Dec. 28 410,174 21,361 197,994 43,325 58,145 9,022 9,482 37,909 12,476 484 9,230 1,991 8,755 Other bills discounted— Dec. 7 149,294 9,506 42,740 10,873 12,775 12,710 23,422 14,440 4,756 1,834 8,361 2,755 5,122 Dec. 14 147,387 19,826 28,387 13,4411 12,257 14,118 21,825 15, 482 4,084 2,069 8,268 2,879 4,751 Dec. 21 187,326 21,083 50,967, 13, 688! 18,242 19,872 22,422 18, 750 5,294| 1,985 8,041 1,797 5,185 Dec. 28 199,035 19,602 65,493 12,504! 12,427 19,614 23,203 23,850 7,109! 1,750 6,690 590 6,203 Total bills discounted: Dec. 7.— 443,9071 36,158 132,509 33,329 44,275 19,809 34,732 59,473 12,449 2,552 15,066 5,521 48,034 Dec. 14 - 494,973 46,724 128,433 41,408! 56,126 20,840! 33,606 83,934 13,906 3,542 16,005 5,939 44,510 Dec. 21 578,156! 41,031 192, 794 49,129 75,639 28,7511 35,739 68,444 22.831! 3,571 16,599 4,878 38,750 D«c.28 600,20911 40,963 263,487 55,829 70,572 28,6361 32,685 61,759 19,585! 2,234 15,920 2,581 14,958 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

90 FEDERAL RESERVE BULLETIN JANUARY, 1928 RESOURCES AND LIABILITIES. BY WEEKS-Continued [In thousands of dollars] RESOURCES—Continued Federal Reserve Bank Total Bills bought in open market: Dec. 7 379,998' 6,116 Dec. 14 381,125 5,854 Dec. 21 365,772 9,639 Dec. 28 385,527 10,485 U. S. Government securities: Bonds— Dec. 7— 266,243 14,489 48,682 16, 713 j 34,194 5,957; 5,932 47,443 18,360: 11,292 20,544 17,491 25,146 D D e e c c . . 2 1 1 4 _ 2 2 7 7 6 0 , , 3 9 9 8 0 0 1 15 5 , , 5 0 1 2 6 1 5 5 0 1 , , 0 4 0 7 9 1 1 1 7 7, , 0 4 7 3 2 3 ! i 3 3 4 5 , , 6 0 1 2 1 8 6 o , , 2 o 2 9 5 i ! ; 5 5 , , 9 8 4 6 6 9 ! ; 4 4 8 7 , , 8 9 9 83 4: 18,615! 1 1 1 1 , ,4 6 8 7 4 8 ' 2 2 0 1 , ,2 8 2 8 3 3 1 1 8 7, , 7 1 6 0 6 1 2 2 5 6 , , 5 0 7 0 6 6 Dec. 28 287,746 15,1731 63,120] 17,433| 35,028 6,225! 5,988| 48,904; 18,869 11,678| 21,222i 18,100 26,006 Treasury notes- Dec. 7 56,105i 2,601 8,551 6,526 9,171 810| 2.476: 5,989! 7,523 4,48o! 3,024; 2,489 2,465 Dec. 14 59,245 3,335 9,205 6,744 9,424 892! 2,547! 6,215' 7,677| 4,597 j 3,230: 2,654 2,725 Dec. 21 53,907 2,464 9,315 6,398 8,974 713! 1,145! 5,575! 7,433' 4,41l! 2,723 2,444 2,312 Dec. 28 62,531 2,464 16,890 6,398| 8,974 713; 6,825! 7,433: 4,411; 2,723 2,494 2,313 Certificates of indebtedness: Dec.7 281,853 17,869 114,917 22,191 17,856 5,649 6,810 32,149; 12,116 8,004 14,735' 11,370 18,187 Dec. 14 .. 267,670 17,897 101,113 22,106 17,757 5,616 6,782 32,341! 12,055 7,959 14,654 \ 11,306 18,084 Dec. 21.._ 257,655 18,197 93,242 21,833 17,509 5,514 6,692! 31,744; 11,861 7,811 14,396' 11,099 17,757 Dec. 28 252,849 17,479 88,669! 21,833 17,509 5,514 6,692' 32,229; 11,861 7,811 14,397! 11,099 17,756 Total U. S. Government securities: Dec. 7.... L.- 604,201 34,959 172,150 45,430) 61,221 12,416 .',218| 85,581 j 37,999 23,776 38,3031 31,350 45,798 Dec. 14 597,895 36,253 160,327! 45,922 j 61,792 12,599 15,198! 86,5391 38,347; 24,040 38,767! 31,726 46,385 Dec. 21 _ 587,952 36,177 154,028. 45,664! 61,511 12,452 -1 3,7"8""3•• 86,213! 38,163! ~23*, 9—00 38,342 31,644 46,075 Dec. 28 35,116 168,679 45,664| 61,511 12,452 13,573; 87,958| 23,900 38,3421 31,693 46,075 Other securities: Dec.7 915 100. 260. 555 Dec. 14 950i 100:. 260- 590 Dec. 21 100 :. 260 . 620 Dec. 28 100- 260. 620 Total bills and securities: Dec.7 _ l,429,021i 114,195 424,310; 111,413! 122,8 81,507! 52,751 198,797: 54,835' 47,218 61,678i 59,549 99,948 Dec. 14 1,474,943 133,556 393,193 120,107 137,620 83,320 51,366 230,796', 56,640 48,301 63,394 59,901 96,749 D De e c c . . 2 2 1 8., 1 1 , , 5 59 3 8 2 , , 8 8 4 6 2 0 ! 1 1 2 2 2 4 , , 2 8 3 1 0 7 4 5 2 2 3 8 , ,0 7 9 1 7 8 ! 1 1 4 3 3 6 , , 8 5 7 5 2 4 ! 1 1 5 5 6 1 , , 8 8 9 7 5 7 9 8 2 9 , ,4 1 4 7 0 9 | 5 4 2 8 , , 0 7 8 6 4 9 2 2 2 1 0 3 , ,8 8 2 6 6 0 : ; 6 6 5 2 , , 5 7 63 0 1 7 4 4 7 4 , , 1 6 2 2 5 6 6 6 2 2 , , 9 3 1 3 6 4 ; : 5 5 8 6 , , 2 9 7 5 2 9 9 7 4 1 , , 4 5 6 1 4 8 Due from fofeign banks: Dec. 7 566 37 213 47 52 25 20, 67! 21 18; 34 Dec. 14.._ 566 37 213 47 52 25 20 67' 21, 18 34 Dec. 21 569 37 216 47 52 25 20 67; 21 ; 34 Dec. 28 37 215 47 52 25 20 67; 21 18; 34 Uncollected items: Dec.7 _. 647,516 63,229 160,311 54,800 57,688 53,224 25, 769 34,541 15,560 41,424: 28,526 36,864 Dec. 14 828,912 82,256 225,041 72,372 75,326 66,874 29,772 , 38,570 15,357 45,045! 34,638 49,429 Dec. 21 759,246 68,471 197,059 66,128 71,848 57,403 30,585 94,232 35.683 16,904 45,187! 30,247 45,377 Dec. 28... _ 728,018 68,407 192,263! 61,223 56,839 29, 743 94,354! 38,207 16,323! 42,338! 29,564 44,150 Bank premises: 79, 728| Dec. 7 60,067 3,946 16,284! 1,' 7,116 2,-37! 2,904 8,774! 3, 958 2,774! 1,827 3, 519 Dec. 14 60,176 3,946 16, 287j 1, 749 7,119 2,843 2,904 8,774: 3, 957! 2,7741 4,476: 118,8727 33,552200 Dec. 21 60,190 16, 2971 1, 749 7,119 2,843 2,908 8,774! 3,957 2,774! 4,476; 1,827 3,520 Dec. 28..- 60,185 3,946 16,297 1,749 7,119 2,843 2,908 8,774; 3,957j 2,774; 4,476; 1,827 3,515 All other resources: Dec. 7 14,176 87 5,315 217 1,24' 4G0! 3,383 1,335! 704 1,439' 568; 869 Dec. 14 14, 759! 175 5,897 193 1,275 435! 1,357 1,331. 769 l,419i 556. 481 871 Dec. 21 _. 14,462 91 5, 515 190 1,286 3C01. l,.r)28 l41l! 740 1,435! 4251 579 872 Dec. 28 14,383 91 5,899 212 1,320 434! 1,336 746 1,236; 451! 492 877 Total resources: Dec. 7_.__ 5,158, 349! i 384,3021, 582,165364,280 496, 9251 224,312; 258,43€ 711,524! 195,3351 145,5541 2C9, 784 160,782 424,950 Dec. ll.._ _ 5,353,632!; 4.10,906 1, 627, 907389, 976 528, 218 236,544' 258,2(18 744,421; 190,572 145,063 214,671' 163,859 436,927 Dec. 21 5,280. 080 396,4171, 625, 627379, 736509, 615 227,583! 201,001 746,91l| 192,335 142,707! 212,756' 159, 5831 425,809 Dec. 28 5,333,839 401,256 l,648,099: 380,910 519,414 227.678; 262,475 750,096! 200,052 144,085! 214,261 i 160,458! 424,955 LIABILITIES Federal reserve notes in circulation: Dec.7 _.. 1, 749, 795; 141, 908 300,490 1_4,2,,0_59 217,099! 78,270 147,957 240, 877 54, 409 61,234 06,979: 49,245! 173,596 Dec. 14 1, 766, 735! 145,713 308,018 149,0301 221,024! 77,93o| 140,122 253,911 55, 524 01,204 07,135, 48,055' 171,803 Dec. 21 1,821,332i 150, 681i o3n8n3 ,"8O8J4 150.354! 227,284 81,122 149.379 265,110 57, 300 62,072 68.447^ 49,650; 176,249 Dec. 28 1,813,198' 151,697] 377,204 140,409! 225,939 80,203 147,230 271, 754 57,530! 61,520 68,045 48,789; 170,746 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

JANUARY, 1928 FEDERAL RESERVE BULLETIN 91 RESOURCES AND LIABILITIES, BY WEEKS—Continued [In thousands of dollars] LIABILITIES-Continued Federal Reserve Bank Cleve- St. Minne- Kansas San land Louis apolis City F ci r s a c n o - Deposits: Member bank—reserve account- Dec. 7 _ 2, 397,062 i 153,2891 955,064! 135,047 183,874 73, 648 69,4141 340,012 88,180 59,391 90, 724 68,560 179,859 Dec. 14 2,418, 572 158.428! 953,2461 136,960! 192,513 73,511 66,930; 350.130 84,546 57,046 91,207 68, 399 185,656 Dec. 21 2, 394,335 153,060. 955,770 133,865 180,852 72,208 68,207 354, 294 83,356 54,822 92,860 66,807 178,234 Dec. 28 2,431,845 155,193; 983,668 141,483 186,390 73,190 69,620! 346,85; 86,445 55,712 91,912 68,312 173,065 Government- Dec. 7__ 33j 90 33 609 188 !! G2 82 111! 132 79 342 Dec. 14 4,040 63 72 77 660 191 215; 671 235 551 89 316 900 Dec. 21 15,425 I 1,249 5,763 404 692 808 1,310' 250 891 1,040 1,027 751 1,240 Dec. 28 16,680! j 1,061; 10 698 2, 972; 2,315 1,424 1,038! 1,036 1,266 2.593 Foreign bank- I Dec. 7 5,410 363' 1,911 465 513 252 198! 668 145 179 169 339 Dec. 14 4,473 363| 974 465 513! 252 668 208! 145 179| 169 339 Dec. 21.. 4,338 363; 839 465 513! 252 668 208! 145 179; 169 339 Dec. 28 4,423 363: 924 465 513; 252 198 668 208 j 145 179! 169 339 Other deposits- Dec. 7 23,010 852 11,151! 317 l,534i 579 292 1,046 890; 521 1,412! 125 4,291 Dec. 14.. 20,894 685, 9,920! 373 1,217; 348 142 1,101 650: 542 1,2211 140 4,555 Dec. 21 19, 905 304; 9, 688 384 1,029; 353 227 1,151 638 390 923 i 158 4,660 Dec. 28 20,328 188, 10,162 297 1,149 i 207 113 2,088 451 655! 93 4,592 Total deposits: I i Dec. 7 1 24,27,253 !154,537: 968,216^ 135,862 186,530! 74,667 69,914 341,788 89, 360! 60,168 92, 447 68,933 184,831 Dec. 14 _. 2,447,979 159,539| 964,212) 137,875 194,903; 74, 302 67,485 352, 570 85, 639 j 69,024 191,450 Dec. 21 2,434, 003 154,976 i 972,060 135,118 183,086 73, 62: 69,942 356,363 85,093] 56,397 67,885 184,473 Dec. 28. .._ 2,473,276 156,805; 995,652 143,614 74,347 72,903 351,926 88,628J 57,228 93,782; 69,840 180,589 Deferred availability items: Dec. 7 602, 517 59,968' 141,371 50,331 53, 743| 51, 743 24,932 67,385 34,938i 12,494 36,195! 29,360 40, 057 Dec. 14 758, 776 77,815; 188,542 67, 725 72,011! 64, 69C 29,020 84, 721 38, 716; 13,841 40,976! 33,500 47,219 Dec. 21 644,451 62,844 i 163,400| 58,838 59, 579; 53,20C 26, 051 72,180 33,224; 12,560j 35,180; 28,806 Cap D ita e l c . p 2 ai 8 d . . in: 666,322 64,780| 168,2661 55,329 65,656! 53,431 26,697 73,113 37,256; 13.846J 38,273; I 28,526 41,149 Surp D D D D lu e e e e c c c c s . . . : . 2 7 2 1 _ 1 4 8 _ . _ ... 1 1 1 1 3 3 3 3 2 1 2 2 , , , , 7 4 4 3 3 0 6 1 8 3 0 5 9 9 9 9 , , , , 4 4 4 4 1 0 1 0 2 8 2 8 ; ; : 4 4 4 4 0 0 0 0 , , , , 1 1 3 2 6 9 1 5 8 9 0 8 ! 1 1 1 1 3 3 3 3 , , , , 2 2 2 2 9 3 3 3 2 2 7 7 1 1 1 1 3 3 3 3 , , , , 9 9 9 9 5 7 5 7 8 9 9 9 ! ; ! ; i 6 6 6 6 , , , , 2 2 2 2 5 5 5 5 2 2 3 3 5 5 5 5 , , , , 1 1 1 1 3 3 3 4 6 6 6 5 1 1 1 1 7 7 7 7 , , , , 9 9 9 3 6 7 6 7 9 0 5 0 5 5 5 5 , , , , 3 3 3 3 3 2 4 4 0 6 l 0 ! i | ! 3 3 3 3 , , , , 0 0 0 0 1 1 1 1 0 2 1 1 1 4 4 4 4 , , , , 2 2 2 2 4 3 3 4 0 4 3 0 ! ! 4 4 4 4 , , , , 2 2 2 2 7 7 7 7 3 4 4 2 9 9 9 , , , 3 3 3 0 0 0 2 2 2 Dec. 7 228, 775 17, 606 61,614 21,267 23, 746J 12,19* 9,632 31,881 9,939! 7,527! 9,029! 8,215 16,121 Dec. 14 228, 775 17,606: 61, 614! 21,267 23,746J 12,19* 9, "~ 31,881 9,939; 7,527, 9,029; 8,215 16,121 Dec. 21 228, Ti\ 17, 606 61,614| 21,267 23, 746 12,198 9,632 31,881 9,939 i 7, 527! 9,029; 8,21£ 16,121 Dec. 28 228,775 17,606; 61,614 21,267 23,746| 12,198 9,632 31,881 9,939! 7,527| 9,029; 8,21. 16,121 All other liabilities: Dec. 7 18,271 815! 4,300J 869 1,849' 1,17; 865 3,223 1, 363; 1,120 894! 75. 1,043 Dec. 14 19, 052 825 4,722 841 1,9751 1,17: 873 3,368 1,424! 1,135 895 i 791 1,032 Dec. 21 19,116 898: 4,611 922 1,941' 1,182 861 1,439; 1,140; 878; 754 1,081 Dec. 28 19,808 956 5,053 994 2,032j 1,18£ 868 3,457 1,452: l,048i 898; 8I1 1,048 Total liabilities: ! Dec. 7 .! 5,158,34! 384,302 1,582,165; 364,280' 496,925! 224,312 258,436 711,521 195,335; 145,554; 209,784 j 160,78: 424,950 Dec. 14... _ I 5,353,632 410,006 1,627,907! 389,976J 528,218j 236,544 258,268 744,421 196,572; 145,063; 214,971! 163,85< 436,927 Dec. 21... •• 5,280,080 396,417 1,625,627! 379,736! 509,615, 227,58 261,00l| 746,911 192,335 142,707j 212,756! 159,58; 425,809 Dec. 28.. j 5,333,"" 4.01,256 1,648,099! 380,910! 519,414 227,678| 262,475! 750,096 200,052! 144,185' 214,261j 160,451 424. 955 MEMORANDA ! Ratio of total reserves to Fed- i era! reserve note and deposit j 1 liabilities combined (per j cent): • Dec. 7 ! 70.7 66.2; 71.9; 70.1 75.61 53. 5 78.8 71.2; 68.0; 64.1! 62.3 57.8 78.0 Dec. 14 I 69.2 60.2^ 72.8! 67. 8; 72.7i 51.6 79.21 66.4! 65.8: 63.7; 62.1 55.2 77.8 Dec. 21 _ i 67.21! 63.4; 71.3! 61. Oi 65. 5] 45. 41 77.7! 66.9! 58.2; 61.9! 59.8 56.7 77.0 Dec. 28 ...J 66.8|i 63.5i 64.4! 59. 68.8! 46.5 79.6! 70.3' 6L7; 65. 7! 62.9 58.0 84.0 Contingent liability on bills j purchased for foreign corre- '• spondents: | i | Dec. 7 i 187,5871 13,964 52,972! 17,874; 19, 736 9,682! 7, 634 25, 694! 8,006! 5,586! 6,8891 6, 517 13,033 Dec. 14 ____! 201,112! 15,074 55,795! 19,295! 21,305= 10,451! 8,241 27, 737: 8,643! 6,030: 7,437! 7,035 14,069 Dec. 21 _ 223,870; 16,641: 63,454; 21,300| 23, 519! 11,537| 9,097 30,619! 9,541; 6, 656' 8, 209| 7,766! 15,531 Dec. 28_._. 226,9041 16,790; 65,048j 21,491; 23,730' ll,641i 9,179! 30,894! 9,626; 6, 716, 8,283: 7,835! 15,671 Own Federal reserve notes held | bv Federal reserve bank: I "Dec. 7 i 425,491; 34,888; 136, 91C! 31, 646: 30, 735! 18,238 30,, 527;; 57,043! 6, 772 7, 473 8,352: 8,074 54, S27 Dec. ]4 ! 456,125)! 41,049: 152,367; 29,640! 34,275! 18,3191 31,1601 59, 518; 7,848: 5,903: 10,173; 9,164 56, 709 Dec. 21_ _.i 439,8201 43,512 140,828i 32, 763; 29,870| 15,014! 29,6471 57,264 6, 670! 5,846; 10,270; 9,013 59,123 Dec. 28 _ _ ! 460,382!! 45,585^ 141,833! 37,642! 30,862! 17,424! 32,339! 54,757: 6,834! 5,980' 10,078: 9,850! 57,198 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

92 FEDERAL RESERVE BULLETIN JANUARY, 1928 FEDERAL RESERVE NOTES—FEDERAL RESERVE AGENTS' ACCOUNTS, BY WEEKS [In thousands of dollars] Federal Reserve Bank Total Boston Y N o ew rk - d P e h lp il h a i - a C la le n v d e- ! Atlanta Chicago M ap in o n li e s - 1 I i K C an it s y as F c S r is a a c n n o - Federal reserve notes received from comptroller: Dec. 7 2,975,476 239,856 779,892 214,505 294,664 121,353! 230,704 457,720| 78,801 85,601 112,721! 75,236 284,423 Dec. 14.._ 3,017,610 238,362| 797,465 216,676 121,0781 231,762 473,9291 80,302 85,60l| 114,448| 74,546 284,512 Dec. 21 3,037,792 251,193j 800,992 216,117 296,484 122,4351 231,026 473,074 80,460 85,237 114,3371 73,765 292, 672 Dec. 28 3,043,440 249,382 795,517 214,211 296,131 121,646! 233,209 4AO8O 3O,3il 11OA 8r0\A,i\9i 40O! A 4O8£ 4,4113O 5i iiO1i 13,M4A 43O*1T1 74,371 296,844 Federal reserve notes held^by Federal reserve agent: Dec. 7 800,190 63,000| 276,480 40,200 46,830 24,839i 52,220 150, 800 17,620 16,8941 37,390 17,917 56, 000 Dec. 14 794, 750 51,600| 276,480 38,000 43,0301 24,829 54,480 160,500! 16,930 18,434 37,140 17,327 56, 000 Dec. 21 776, 640 57,000i 276,480 33,000 39,330 26, 299: 52, 000 150, 700^ 16, 490 17,319 35,620 15,102 57, 300 Dec. 28.. 779,8601 52,100' 276,480 30,100 23,959, 53,640 156,800; 16,570j 16,929J 35.320J 15,732 62,900 Federal reserve notes issued to Federal reserve bank: Dec. 7 2,175,286! 176,856| 503,412 174, 305247, 834 96, 514J 178,484 306,920 61,181 68, 707 75,331 57,319 228,423 Dec. 14 2,222,860| 186,762! 520,985 178, 676255,899 96,249 177,282 313,429 63,372 67,167 77, 308 57,219 228, 512 Dec. 21 2, 261,152! 194,193' 524,512 183,117 257,154 96,1361 179,026 322,374 63,970 67, 918 78, 71' 58, 663 235,372 Dec. 28 - 2,263,580 197,282! 519,03^ 184,111 256,801 97,687 179,569 326,511 64,370 67,506 78,123 58,639 233,944 Collateral held as security for Federal reserve notes issued to Federal reserve bank: Gold and gold certificates- Dec. 7 405,467 35,300| 205,150 40,000 29, 830 18,117 7,500 12,267 17,303 40,000 Dec. 14 405,778 35, 300! 205,150 40, 000 29,831 18,077 7,450 12, 667 17,303 40, 000 Dec. 21 _.. 406, 579 35,300! 205,150 40,000 29, 831 18, 978 7,350 12, 667 17, 303 40, 000 Dec. 28 _ 407,928 35,300; 205,150 40,000 29,831 18,977 7,200 14,167 17,303 40,000 Gold redemption fund- Dec. 7 100, 783 14,669* 19, 8,828 12,372 5,095 7,895 2, 767 2,476 728 3,585 4,211 18, 239 Dec. 14 99,126 13,175j 19, 917 11, 200 14,036 4,320 5,993! 2, 767 2,317 728 3,192 3,521 17, 960 Dec. 21 - 100,483 10, 606 19,917 13, 240 12, 892 3,276 8, 656 2, 767 1,515 2,364 4,280 3,241 17, 729 Dec. 28 _ 106, 794 18,796 19, 917 11,334 14,339 2,487 8,240 2, 767 1,196 1,562 3,386 5,266 17,504 Gold fund- Dec. 7 - 1,024,417 59, 000 75, 000 108,477 150,000 115, 300255, 000 35, 500 35,000 49, 860 8,500 132, 780 Dec. 14 1, 080,105 59 000 115 000 110,477 150, 000 117, 500255, 000 37,500 32, 000 53, 860 9,500 140, 268 Dec. 21 998, 036 69, 000 60,000 99,877 140,000 113, 500245, 000 30,500 32,000 53, 860 13, 000141, 299 Dec. 28 - 954,533 74,000 97,877 125,000 117,600 245,000 33,500 33,000 55,860 12,000 160,696 Eligible paper- Dec. 7 790, 318 79,236 232, 211 57, 816 61,140 65,636 37,207 112,940 16, 792 22, 626J 23, 283 28,152 53,279 Dec. 14 826, 502 97, 303 200, 485 63, 759 74,875 67,513! 35,813 144,118 18,184 23,174 24, 501 28,129 Dec. 21... 907, 392 86,053 257,048 76, 646 93,734 73,539 37,959| 134,478 27, 351 22,100 24, 473 26, 579 47,432 Dec. 28... 938,890 89,701 335, 773 75,505 88,496 71,498 34.811J 125,687 24,499 19,814 23,891 25,217 23,998 Total collateral: Dec. 7 2,320, 985 188,205 532,279 175,121 263, 512 100,561! 178,519. 370,707 62, 268 70, 621 76,728 58,166 244,298 Dec. 14 2,411,511 204,778 540,552 1S5, 436278. 911 101,6641 177,383 401,885 65, 451 68, 569 81, 553 58,453 246,876 Dec. 21 2, 412, 490 200,959! 542,115 189, 763286, 626 106,646 179,093! 382,245 66,716 69,131 82, 613 60,123 246, 460 Dec. 28 2,408,145 217,797 560,840 184,716 267,835 103,816 179,6281 373,454 66,395 68,543 83,137 59,786 242,198 MATURITY DISTRIBUTION OF BILLS, CERTIFICATES OF INDEBTEDNESS, AND MUNICIPAL WARRANTS HELD BY FEDERAL RESERVE BANKS [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 d a to y s 90 9 6 1 m da o y n s t h t s o i ! m O o v n e t r h 6 s Bills discounted: Dec. 7 443,907 17,465 21,386 11,440 6,320 1,257 Dec. 14 494,973 438,526 16,835 19, 288 11,844 6,625 1,855 Dec. 21 578,156 515,415 20,455 20,781 13,368 6,704 1,433 Dec. 28 609,209 537,482 18,330 26,892 18,617 6,423 1,465 Bills bought in open market: Dec. 7 379,998 155,324 77,774 115,489 29,346 2,065 Dec. 14 381,125 153,976 88,522 107,092 29,673 1,862 Dec. 21 365,772 141, 772 99,627 24,786 1,319 Dec. 28 385,527 172,348 | 110,201 78,434 23,207 1,337 Certificates of indebtedness: Dec. 7 281,853 59,932 L 170,301 51,620 Dec. 14 267,670 46,165 !. 168, 593 52,912 Dec. 21 257,655 22,479 L 157,098 65,853 12,225 Dec. 28 252,849 20,851 i. 153,370 66,013 12,615 Municipal warrants: Dec. 7.. 155 155 Dec. 14 190 100 90 Dec. 21 220 100 i 120 Dec. 28 220 100 i 120 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

93 JANUARY, 1928 FEDERAL RESERVE BULLETIN FEDERAL RESERVE BANKS—AVERAGE DAILY RESERVES AND DEMAND LIABILITIES IN DECEMBER AND NOVEMBER, 1927 [Amounts in thousands of dollars] December November ! December ! November Boston _ ' 193,933 199,110 156,775 161, 702 147,245 137, 749 63.8 66.5 New York.... 941,022 ., 028, 686 959,131 946,306 378, 762 371, 836 70.3 78.0 Philadelphia _ ..- 184,282 191, 792 140,113 142,328 148,813 134,981 ! 63.8 69.2 Cleveland 294,502 298, 660 188, 794 192, 759 222, 525 212,307 [ 71.6 73.7 Richmond _._ , 76,368 77,115 75, 111 76, 719 79,830 76,246 i 49.3 50.4 Atlanta ' 171,775 180,160 70,524 70,412 148,408 153,033 78.5 80.6 Chicago -...' 421,954 431, 038 350,010 345, 669 259, 758 238,934 I 69.2 73.7 St. Louis : 89,255 88, 061 87, 915 87,920 56,214 53,375 61.9 62.3 Minneapolis 74,479 74, 782 56,427 57, 823 61,613 62,458 63.1 62.2 Kansas City 99,453 93,392 93,282 94, 240 67, 587 65, 754 61.8 58.4 Dallas 66,743 65,477 69,849 69,165 49,142 50, 484 56.1 54.7 San Francisco 279,651 283, 073 188,053 184, 933 175,020 171, 921 77.0 79.3 Total ; 2,893,417 3,011,346 I 2,435,984 | 2,429,976 ! 1,794,917 ; 1,729,078 • i8.4 72.4 GOLD SETTLEMENT FUND—INTERBANK TRANSACTIONS FROM NOVEMBER 17 TO^DECEMBER 21, 1927, INCLUSIVE [In thousands of dollars! Changes in ownership Tran m sf e e n rs t a fo cc r o G un ov t ern- Transit clearing Federa c l l e r a e r s i e n r g ve note t o r f a nsf g e o rs ld and th r c o le u a g r h - in B f a u la n n d c e at Federal reserve bank ings close of period Debits Credits Debits Credits Debits Credits Decrease Increase Boston __ _ j 34,200 8,400 1,142,822 1,166,260 6,262 4,408 4,216 27,713 New York.. _ ! 186,550 212,200 4,106,836 4,136,113 12,577 19,458 61,808 ! 238,205 Philadelphia. I 33,000 16,000 1, 052, 643 1, 069,475 7,472 5,656 1,984 25, 017 Cleveland ! 15,000 32, 600 917,129 885, 518 10, 797 4,823 19,985 24,800 Richmond _ | 23,000 10, 400 953, 579 947, 407 3,173 4,030 17,915 20,691 Atlanta. __ I 28,000 5,600 400, 517 413,267 3,666 4,925 8,391 6,968 Chicago ! 25,000 32, 200 1, 642, 883 1, 641,425 9,447 8,659 4,954 97,850 St. Louis _ j 1,000 26, 300 778, 649 739,464 2,116 4,117 11,884 19, 355 Minneapolis. _ _ 8,600 245, 885 238, 948 2,128 2,011 1,546 ! 14,415 Kansas City _..: 3,000 23, 800 605, 414 589,237 2,946 3,236 4,913 ! 25,818 Dallas _ _! 15, 000 5,550 469,923 481,223 1,941 2,234 2,143 ! 14,830 San Francisco ' 35,000 17,100 618, 343 626,286 3,648 2,616 10,989 Total 5 weeks ending— i Dec. 21, 1927__ j 398,750 398, 750 12,934, 623 12,934, 623 66,173 66,173 75,364 | 75,364 | 554, 358 Nov. 16, 1927... ' 163,200 163,200 13,189, 794 13,189, 794 68, 078 68, 078 603,855 Dec.22, 1926__ ___j 148,000 148, 000 11, 647,788 11,647, 788 62,442 62,442 657,024 Nov. 17, 1926 59,000 59,000 11, 885, 383 11,885, 383 66,914 66,914 709,239 FEDERAL RESERVE BANKS—HOLDINGS OF BILLS AND SECURITIES, NOVEMBER, 1927 [In thousands of dollars] Federal Reserve Bank Total 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 - la A n t t - a c C a h g i o - L S ou t. is M ap in o n li e s - K C an it s y as Dallas F S r a an n cisco HOLDINGS ON NOV. 30,1927 Total bills and securities... 1,380,515 111,826 366,240 117,560 117,942 81,396 57, 618 194, 858 61,061 48,144 66, 518 62, 679 94,673 Bills discounted-. 477,025 38, 570 148,115 40, 682 39,987 18,953 39, 899 60, 896 18, 723 3,723 19,439 6,784 41, 254 Bills bought in open market- 354, 740 39,021 104,063 32,048 17,098 50,026 2, 546 49, 947 4,439 20, 590 8,926 18,414 7,622 United States securities 547, 835 34, 235 114,062 44, 730 60, 857 12, 417 14, 913 84,015 37, 899 23, 276 38,153 37,481 45, 797 Other securities 915 100 260 555 Bills Discounted Rediscounted bills: Commercial and agricultural paper, n e s 94,954 16, 675 6,552 8,431 4,034 6,554 17, 506 15, 877 5,855 1,821 7,621 519 3,509 Demand and sight drafts 391 29 345 11 Bankers' acceptances 28 28 Trade acceptances 1,539 52 101 35 224 254 744 32 40 57 Secured by United States Government obligations 237 54 1 7 14 54 50 48 2 6 1 Member bank collateral notes: Secured by United States Government obligations... 345, 558 21,789 132, 873 27,489 33,477 10, 585 12,973 43, 444 11,374 1,802 10,397 2,686 36,669 Otherwise secured 34, 318 8,589 4,726 2,245 1,546 8,593 1,493 1,061 98 1,381 3,567 1,019 Total discounted bills >.... 477,025 38, 570 148,115 40, 682 39,987 18,953 39, 899 60,896 18, 723 3,723 19,439 6,784 41, 254 1 Includes $20,005 secured by adjusted-service certificates held under discount for nonmember banks and $1,122,707 held under discount for Federal Intermediate Credit Banks. 79290—28 7 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

94 FEDERAL RESERVE BULLETIN JANUARY, 1928 FEDERAL RESERVE BANKS—HOLDINGS OF BILLS AND SECURITIES, NOVEMBER, 1927 [In thousands of dollars] * Federal Reserve Bank Total Boston Y N o ew rk d P e h lp il h a i - 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 o t u . 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 - HOLDINGS ON NOV. 30, 1927—Continued Bills Bought Bills payable in dollars: Bankers' acceptances based on— Imports _ 84,989 8,311 25,049 5,744 3,303 15,326 710 12,966 1,726 3,980 2,482 4,479 913 Exports 109,139 8,508 30, 289 9,070 5,451 17, 544 1,325 14, 786 1,361 7, 746 3,689 5,976 3,394 Domestic transactions 81,880 16,163 19,064 8,688 3,010 9,736 470 11, 750 475 3,603 1,421 4,939 2,561 Dollar exchange 8,188 891 2,872 1,310 231 490 1,153 162 896 2 181 Shipments between on storage of goods in foreign countries 64,185 4,770 23, 265 6,142 4,043 6,917 30 9,253 690 4,358 1,323 2,830 564 All other 4,680 359 2,952 1,070 109 4 14 172 Trade acceptances based on— Imports 446 436 10 Domestic transactions.. 66 66 Bills payable in foreign currencies. 1,167 19 70 24 941 13 11 35 11 7 9 9 18 Total bills purchased 354, 740 39,021 104,063 32,048 17,098 50,026 2,546 49,947 4,439 20,590 8,926 18, 414 7, 622 United States Securities United States bonds. 264, 732 14,054 47, 946 16, 346 33,963 5,931 5,680 46,489 18, 267 11,042 20, 412 19, 542 25,060 Treasury notes 55, 611 2,654 8,305 6,472 9,130 811 2,413 5,379 7,516 4,441 3,013 3,012 j 2,465 Certificates of indebtedness 227, 492 17, 527 57, 811 21, 912 17, 764 5,675 6,820 32,147 12,116 7,793 14, 728 14,927 18,272 Total United States securities - - 547, 835 34, 235 ii4. C\KI 44, 730 60, 857 12, 417 14,913 84,015 37, 899 23, 276 38,153 37 481 dr> 7Q7 DAILY AVERAGE HOLD- INGS DURING NOVEM- BER, 1927 Total bills and securities 1,331,008 108,453 1327,931 112,418 130, 867 82,976 49, 582 182, 999 62, 215 50,454 68,134 62,988 91,991 Bills discounted 415, 216 36 354nofi AH 38,064 46, 833 21,516 32, 695 46, 887 18,135 2,603 18,116 8,388 39,114 Bills bought 335,908 38,720 ! 93,960 28, 723 18,283 48, 656 2,335 45,180 4,937 19, 782 10,668 18,519 6,145 United States securities _ 579, 238 33,379 ! 127,460 45, 531 65, 751 12, 804 14, 526 90,932 39,143 27, 549 39,350 36,081 46, 732 Other securities 646 100 26 520 FEDERAL RESERVE BANKS—VOLUME OF. DISCOUNT AND OPEN MARKET OPERATIONS DURING NOVEMBER, 1927 [Amounts in thousands of dollars] Total Boston Y N o ew rk P p d h h e i l i l - a a- C la le n v d e- m Ri o c n h d - la A n t t - a c C a h g i o - L S o t u . 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 - Total Volume of Operations- 14,139,022 356,347 1,526,543 235,326 514,932 160,871 184,160 474,397 145,256 53,577 112,832 99,266 375,515 Bills discounted for member banks 2 _ 2, 504,200 251,537 842,015 143,695 354,570 122,833 70,653 181,064 99,355 9,541 59,588 62,171 307,178 Bills bought: In open market _. 385,051 55,690 163,537 22,595 11,569 19,133 2,236 46,727 2,694 10,420 4,9 15,623 29,842 From other Federal reserve banks 14,602 1,100 4,801. 900 4,700 1,301 1,800 United States securities bought: In open market. 1,229,141 48,521 519, 371 68,335 147,274 14,059 10,971 245,206 42,157 28,846 46,779 19,272 38,350 From other Federal reserve banks _ ._. 599 1,620 701 419 45 40 1,400| 150 179 400 145 Municipal warrants bought 70 Bills Discounted Rediscounted bills: I i Commercial and agricultural I paper, n. e. s 79,156 3,219 4,713 6,091 3,210 3,950 14,066 20,694' 13,367! 710 5,070 336 3,730 Demand and sight drafts 1,703 208 I 1,1721. 14 309 Bankers' acceptances 28 28 Trade acceptances 1,144 35 95 22 """"250 226 """425 23: 24L 44 Secured by U. S. Government obligations 174 4 9 8 16 135 Member bank collateral notes: Secured by U. S. Government obligations. 1,973,182 150,370 654,997 117,521 319,928 74,118 35,374 151,796; 75,846 8,629 49,068 51,327 284,208 Secured by eligible paper 3__ 448,813 97,909 182,210 20,061 31,182 44,530 20,572 8,551 8,930 202 5,406 10,064 19,196 Total.. 2,504,200 251,53: 842,015 143,695 354,570! 122,833 70,653 181,064! 99,355! 9,541 59,588 62,171 307,178 1 Includes $260,000 Federal Intermediate Credit Bank debentures. 2 Includes $1,000 secured by adjusted-service certificates discounted for nonmember banks; also $125,000 discounted for the Federal Intermediate Credit Bank of St. Louis, Mo., and $1,900,000 discounted for the Federal Intermediate Credit Bank of Berkeley, Calif. 3 Includes bills taken under a resale contract. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

JANUARY, 1928 FEDERAL RESERVE BULLETIN 95 FEDERAL RESERVE BANKS—VOLUME OF DISCOUNT AND OPEN MARKET OPERATIONS DURING NOVEMBER, 1927— Continued [Amounts in thousands of dollarsl Total Boston Y N o ew rk P p d h h e i l i l - a a- C la le n v d e- m Ri o c n h d - la A n t t - a c C a h g i- o 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 - Bills Discounted—Continued Average rate (365-day basis), per cent 3.50 3.50 3.50 3.50 3.50 3.50 3.50 3.50 3.5C 3.50 3.50 3.50 3.50 Average maturity (in days): Member bank collateral notes 5.89 6.34 5.10 8.82 4.06 3.24 12.69 13.32 6.18 5.91 7.00 4.22 4.42 Rediscounted bills 50 58 42 69 49 97 43 88 50 91 47 29 48 01 51 58 30 82 119 35 96 18 33.72 74.41 Number of member banks on Nov. 30 - 9, 067 412 935 779 837 568 464 1,291 596 741 971 805 667 Number of member banks accommodated during month 2,350 145 345 344 231 166 136 400 175 75 193 41 99 Per cent accommodated... . 25.9 35.1 36.9 44.2 27.6 29.2 29.3 31.0 29.4 10.1 19.9 5.1 14.8 Bills Bought in Open Market From member banks 76,191 16, 585 11,823 2,088 5,760 7,059 2,236 17,985 822 3,890 1,592 3,455 2,896 From nonmember banks, banking corporations, etc.: Bought outright 115,923' 10,465 23, 549 20,507 5,809 12, 074 18, 098 1,872 6,530 3,393 7,907 5,719 Bought with resale agreement 192, 937 28,640 128.165 10,644 4,261 21, 227 Total 385,0511 55, 690 163, 537 22, 595 11, 569 19,133 2.236 46. 727 2,694 10,420 4,985 15, 623 29, 842 Bills payable in dollars: Rates charged— 3 per cent. 133,130' 13, 450 28,384 10,642 10.086 6,876 428 32, 601 2,332 9,027 4,239 8,174 6,891 Zx/% per cent... 1,847 155 36 82 783 730 17 38 6 Z\i per cent 237, 036 41, 773 134,186 11,549 1,466 8,721 1,119 7,078 315 1,309 639 6,007 22, 874 3% per cent 9,746 312 410 322 7 2,657 4,972 47 67 106 789 57 3/4 per cent 3,096 377 10 87 689 1,303 1 615 14 3*HJ P^r cent 167 144 23 3/4 per cent 9 9 zy% per cent 15! 15 4 per cent 5 5 Average rate (365-day basis), per cent 3.22 3.24 3.25 3.22 * 3.11 3.27 3.32 3.19 3.12 3.11 3.12 3.21 3.20 Average maturity (in days)4 47.18 56.86 32.92 60.47 37. 73 62.94 60.13 42.53 41.82 41.25 42.34 48.21 44.58 Class of bills:* Bankers' acceptances based on— Imports 40, 364 5,276 6,610 4,492 2,370 3,750 513 8,096 854 2.864 1,749 2,770 1,020 Exports 62,324 6,307 13,851 6,099 4,155 5,582 1,285 10,872 955 3,106 1,690 3,656 4,766 Domestic transactions 52,054 10, 711 8,652 6,661 2,501 5,732 363 9,063 380 1,807 861 2,956 2,367 Dollar exchange 4,799 884 795 935 223 240 902 162 405 2 251 Shipment between or storage of goods in foreign countries . 31, 205 3,872 5,166 3,788 2,210 3,664 7,060 343 2,238 683 1,719 462 All other 1,210 150 620 100 165 75 90 10 Trade acceptances based on imports 158 148 10 Bills payable in foreign currencies ! i j" " Total... 192,114 27, 050 35, 372 22,595 11,569 19,133 2,236 36, 083 2,694 10,420 4,985 11, 362 8,615 United States Securities Bought in Open Market Bought outright: United States bonds 14, 084 1,331 3,442 1,397 921 101 469 2,992 366 974 693 1,072 326 Treasury notes. . 25,176 1,908 5,575 1,934 1, 693 390 958 6,423 880 1,358 1,263 1, 539 1,255 Certificates of indebtedness..5 1,171,111 42, 524 504,815 65, 004 144,660 13, 568 9,544 226,657 40,911 26, 514 44,623 15, 522 36, 769 Bought with resale agreement... 18, 770 2,758 5,539 9,134 200 1,139 Total 1, 229,141 48, 521 519,371 68,335 147,274 14,059 10,971 245,206 42,157 28,846 46, 779 19,272 38, 350 4 Exclusive of bills bought under a resale contract. a Includes special 1-day certificates issued by the Treasury to Federal reserve banks as follows: Boston, $35,000,000; New York, $479,000,000; Philadelphia. $58,000,000; Cleveland, $136,500,000; Richmond, $11,000,000; Atlanta, $6,000,000; Chicago, $211,500,000; St. Louis, $36,000,000; Minneapolis, $21,500,000; Kansas City, $38,000,000; Dallas, $9,000,000; and San Francisco, $28,500,000; and excludes $35,000,000 of special 1-day certificates soldjinder repurchase agreement and subsequently repurchased. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

96 FEDERAL RESERVE BULLETIN JANUARY, 1928 WEEKLY REPORTING MEMBER BANKS REPORTING MEMBER BANKS IN LEADING CITIES PRINCIPAL RESOURCES AND LIABILITIES BY WEEKS [In thousands of dollars] Federal Reserve District Total 1 Boston Y N o e r w ki d P e h lp il h a i - a C la le n v d e- m Ri o c n h d - la A n t t - a Chicago1 L S ou t. is M ap in o n li e s - K C an it s y as Dallas F S ra a n n cisco Loans and investments— total: • Dec. 7 21, 629,725:1, 529,431 8, 218, 557 203,808 100, 237 693,311 626, 056 173, 290 731, 507; 391,931638, 247! 438, 286 885, 064 Dec. 14 121. 659, 259!1,536,159 8, 214,120 206, 573 098, 668 699,195 629,704 175, 221 731, 227 392, 660644, 227j 442,804 888, 701 Dec. 21 i21,787, 659!1, 526, 030 8, 332, 207 206,6052,112,952 703, 727 633, 395 150,122 735,490 387,194 644,610 447,875 907,452 Dec. 28 j21,819,635, 1,539,363:8,403,905 226, 675' 097,043 706,480 634,690 ,122,734 728,177 383,073 641,853| 444,310 891,332 Loans and discounts—total: Dec. 7. 15, 280, 092 1,048,057; 5,867, 370 791.,, 850 1392, 418 524, 636 501.165 294, 205 539,160 262, 696423,016' 339,476 296, 043 Dec. 14 115,293,88511, 054,396 5,861, 302 788,819 1,394, 271 527,482 506, 055 289,608 537,102 263,167 425, £60' 343,389 , 302,734 Dec. 21__ 115,356,960 1,050,555 5,975,443 778, 226 1, 394,838 529, 054 501,620 ,259, 094 539,430 256, 846423,990 341,672 , 306,192 Dec. 28 115,433,3481,057,733 6,061,300 798,055 1,379, 596 531, 551 503,717 , 259,925 535,276 252,340 418,491 339,626 , 295,738 Secured by U. S. ' Government obligations- Dec. 7 132,923 10, 652 53,833 7,449 15,402 3,056 5,132 18,826 4,593 2,345 3,757 2,725 5,153 Dec. 14 124,846' 11,502; 43,011 7,904 15,317 3,163 5,238 19,814 5,095 2,344 3, 612! 2,759 5,087 Dec. 21 128,785 11,3301: 46, 358 8, 005 15, 631 3,722 5,313 18,676 4,233 2,338 3, 513j 4,523 5,143 Dec. 28- 128,253 11,6211 49,416 7, ~ 16,065 3,271 5,351 17,273 4,207 2,304 3, 555! 2, 723 4,776 Secured by stocks and bonds- Dec. 7_- 6,365,161 375, 728 2,804, 688 415, 916 603,355 163,043 118,7521,028,883 212,767 91, 635 122,628 85, 204 342, 562 Dec. 14 6,414,554! 374,280 2,844,324 414,193 163,921 11'8, 4•1"6 •11,,002266,,5 59966 213,038 92,810 124,885! 86,979 346, 752 Dec. 21 6,493,026 372,419.2,952, 016 411,822 615,352 163,120 116,476 1, 000,914 213, 61989,000 123,733! 84,906 349,649 Dec. 28 6,587,067J 379,955 3,041,210 430,151 602,545 165,542 115,9211,002,195! 209,211 85, 591118,786 85,343 350,617 All other loans and discounts— [ Dec. 7 8,782,0081 661,677 3, 008,849 368,485 773, 661358,537 377,2811,246,496 321,800 168, 716296,631 251,547 948,328 Dec. 14 8,754,4851 668, 614|2,973,967 366,722 770, 594360,398i 382,4011,243,198 318,969 168,013 297,063 253,651 950,895 Dec. 21 8,735,149| 666,806 2,977,069 358, 399 763, 85; 362,212i 379,8311,239,504! 321,578 165, 508296,744J 252,243 951,400 Dec. 28 8,718,028 666,157 2,970,674 360,213 760/986 362,738| 382,4451,240,457 321,858 164,445 296,150: 251,560 940,345 Investments—total: Dec. 7- 1 6,349,633! 481, 374 2, 351,18' 411,958 707, 819168,675i 124,891 879,085 192,34' 129, 235215, 231 98,810 589, 021 Dec. 14 i 6,365,374 481,763i2, 352,818 417, 754 704, 397 171,713; 123,649 885,6131 194,125 129,493 218,6671 99,415 585,967 Dec. 21 6,430,699 475, 47512, 356, 764 428, 379 718,114 174,673! 131,775 891,0281 196,060 130, 348220,620; 106,203 601, 260 Dec. 28 1 6,386,287 481,630 2,342,605 428, 620 717,447 174,929| 130,973 862,809 192,901 130,733 223,362j 104,684 595, 594 United States Government securities- Dec. 7 2,806, 259 179, 065 1, 076,73C 107,186' 310,793 73, 515! 60, 547 364,147 78,116 67,425 102,344! 67,54' 318,844 Dec. 14 2.,8 14.,111 183,327 1, 089,726 108,197! 305, 774 73.847i 59,333 365,3371 78,152 67,366 102,308! 67,862 312,882 Dec. 21 ! 2,868,416i 178, 7051, 092, 676 118,885 315,671 77,909! 65,810 366,789: 78, 417 68,464 104,436 74,119 326, 535 Dec. 28 - 2,804,368j 182, 915 1,073,114 118,772 312, 587 78,2631 64,861 334,502 72,651 68,863 106,454 72,414 318,972 Other bonds, stocks, and securities— Dec. 7 3, 543,374 302,309 1,274,4fr 304,772 397, 026 95,160, 64, 344 514,938 114,231 61,810 112,8871 31,263 270,177 ' Dec. 14 3, 551, 263 298, 436|l, 263, 092 309,557i 398,623 97,866 64,316 520,276: 115,973 62,127 116,359 31,553 273, 085 Dec. 21 3, 562, 283 296,770| 1,264,085 309,4941 402,443 96,764 65,965 524,239; 117, 643! 61,884 116,184 32,084 274,725 Dec. 28 3,581,919 298,715 1,269,491 309,848; 404,860 66,112 528,3071 120,250J 61,870 116,908 32,271 276, 622 Reserve balances with Federal reserve bank: Dec. 7 1,768, 918 102,992 821,192 79,453 138,056 44, 330: 41,149 255,198 52,077| 31,122 55,481 33,313 114,555 Dec. 14 | 1,786; 084 107,986 819,83£ 80, 837 134,442 44, 548; 40,373 265, 546 50,898i 30,079 55, 822 33, 81 121,902 Dec. 21 i 1,779,706 102, 735 836,34f 80,433 123, 787 41, 518: 40,859 270,770 49,270| 27,804 57, 618 33, 35C 115, 217 Dec. 28__ I 1,813,1431 103,864 856,03* 84,851! 128, 526 44,2881 42,622 265,156 50,694 29,194 56, 569 34, 00£ 117,336 Cash in vault Dec. 7. 19, 240 18,912 35, 374 14,977| 11,805 8,177 6,126 12,859 10, 01' 23, 480 Dec. 14 314,801 20, 646 91,24: 21,496 37, 406 15, 563; 12, 688 51,090J 9,417| 6,692 13, 719 9,91' 24, 924 Dec. 21 339,76011 24,190 104,11: 21, 536 39, 63" 15,986 12.465 54,931 9,870| 7,346i 13, 578 10, 31: 25, 791 Dec. 28- 317,835 i 25,141 19,832; 36, 763 14,916, 12,272 54,560| 8,7l6j 6,561 13, 723 10,92- 25,603 Net demand deposits: Dec. 7 !13,958,893) 961,123 6,153,13' 783, 2021,075,919 403,3911 344,2961,895,639: 446,726| 249,864 496,896 309, 35£ 839,341 Dec. 14 !14,031,075 1972,1126,189, 20- 781,922 1, 079, 204 403,442, 352,0501,889,285! 448,9941 247,743 501, 684 316,02£ 849, 407 Dec. 21 |13,839,523 953, 052 6,173,02< 752,995 1, 051, 386 391,266, 342,4961,860,4231 430,3931 236,657 496, 325 311,42C 840,081 Dec. 28 113,786,153 953,449 6,144,20c 773,5671,039,063 387,812, 344, 564 1, 845,068' 426,367 234,913 495, 743 309,84£ 831, 559 Time deposits: Dec. 7 6,471,859 493,335 1,542,09C 278,897 242,060; 244,8951,,192,036 234,619' 135,071 160,809 113,266 945,918 Dec. 14 6,471,491 492, 296 1, 537,357 282, 603 887. 839 243,763^ 243, 86111,,199,222 234.414! 133,679 161,323 113, 526 941, 608 Dec. 21 6, 503,971 492, 06011, 559, 678 284, 516 880, 572 243,145! 244,058'L,209,625! 240,065! 135,554 161,493 114, 21 938,987 Dec. 28 6, 516,079 498, 525 1, 563,665 286,040 882,439 243,444 243,1391,200,026, 241,016, 134,259 160,310 114,094 949,122 Government deposits: Dec. 7 5,594 653 1, 46i 489 445 118 343 749! 109! 90 24' 842 Dec. 14 6,700 653 1,461 487 445 9621 346 749 i 374 90 24; 842 Dec. 21 191, 770 16,845 62, 75: 16, 607 19. 216 6, 580! 10,497 16,764! 3,626! 1,6 4,092 10, 511 22,585 Dec. 28 192,020 16,845 62, 75: 16, 607 19, 216 6,580! 10,4961 16,764[ 3,877i 1, 6 4,092 10,511 22,585 1 For comparable figures on monthly average basis, see pp. 17-18; see also explanation of revisions on p. 8. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

97 JANUARY, 1928 FEDERAL RESERVE BULLETIN PRINCIPAL RESOURCES AND LIABILITIES BY WEEKS—Continued [In thousands of dollars] Federal Reserve District Total I 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 - la A n t t - a 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 ncisco Due from banks: Dec. 7 1,206,138 58,918 134,562 58,123 99,467 59,216! 88,055 224,751 58,095 53,129 125,542 74,081 172,199 Dec. 14 1,237,232 55,291 136,329 57,545 103,426 57,967 89,301 252,526 60,701 52,190 125,856 72,980 173,120 Dec. 21— 1,201,3091 62,513 144,079 56,446 98,637 55,433 85,841 230,365 59,051 52,334 124,676 63,724 168,210 Dec. 28 1,216,900 | 57,042 152,414 60,381 95,905 j 57, 548 81,026 239, 742] 58,341 51,919 126,896 64,367 171,319 Due to banks: Dec. 7 _— 3,670,029 166,7766 1., 358,546178,184 268,865! 137,481 133,637 517,125! 167,451 110,089 231,200 136,192 264,493 Dec. 14 3, 584,2551 1591,",983 1.,, 359,877175,093 262,497| 133,373 [ 132,489 485,570! 156,174 102,833 225,838 131,734 258,794 Dec. 21 3,528,859 155,307 1.,, 347,911172,360 247,374 129,443 128,133^ 511,361 149,625 103,460 225,524 123,285 235,076 Dec. 28 _. 3, 566, 544 161,196 I., 335,022174,763 258, 771 129,131 130,479 519,852 153,597 104,912 230,615 127,146 241,060 Borrowings from Federal reserve bank—total: Dec. 7 304,394 ! 21,595 104,446 12,751 11,921 20,734, 39,351 4,577 7,436 4,853 42,892 Dec. 14 353,308:! 30,375 101,398 20,129 45,356 13,375 20,347! 61,128 6,858, 1,250 8,603 5,235 39,254 Dec. 21 432,061 jl 23,833 164,103 26,230 62,959 20,659 22,732 48,390 15,149 1,300 9,333 4,160 33,213 Dec. 28 463,1121! 23, 797 233,946 31,825 58,018 20,507 21,198| 41, 724 12,127 9,082 1,900 Secured by U. S. Govern- I ment obligations— Dec. 7-- 221.393J 17,600 72,377 8,275 22,453! 3,520 8,249 34,589 3,220 4,405 4,780 41,925 Dec. 14 _ 270,354; 16,905 81, 294 13,303 35,805 3,973 9,199 55,739 5,895 1,250 5,571' 2,820 38,600 Dec. 21 313,079 9,046 124,565 19,504 5,442 11,125 38,939 13,635 1,300 6,395: 2,930 32,110 Dec. 28 328, 668 10,418 177, 535 26, 721 48, 520 5,572 7,r~ 26,804 7,920 7,147j 1,840 8,295 All other- Dec. 7 83,001! 3,995 32,069 4,476 11,385 8,401 12,485 4,762 1,357 3,03l! 73 967 Dec. 14 82,954| 13,470 20,10,4 6,826 9,551 9,402: 11,148 5,389 963' 3,032: 2,415 654 Dec. 21 118,982; 14,787 39,538 6,726 14,871 15,217! 11,607 9,451 1,514' 2,938! 1,230 1,103 Dec. 28... 134,4441 13,379 56,411 5,104 14,935: 13,302 14,920 4,207 1,935; 60 Number of reporting banks Dec. 7 _- 658: 36 48 66 96 31 65j 45 57 Dec. 14 658! 36 48 66 i 96 31 65! 45 57 Dec. 21 6581 36 48 96 31 651 45 57 Dec. 28 657: 36 66 96 31 65 45 57 REPORTING MEMBER BANKS IN FEDERAL RESERVE BANK CITIES PRINCIPAL RESOURCES AND LIABILITIES BY WEEKS [In thousands of dollars] I City Total i Boston Y N o e r w ki d P e h lp il h a i - a C l l a e n v d e- moCnd Atlanta Chicago: L S ou t. is M ap in o n li e s -lKa C n it s y as |l Loans and investmentstotal: Dec. 7 13, 805,580 il, 035, 617 7,062, 585 1, 033,841 773,093 117,130! 98,9681,988,231 447,835 188, 676 175,653| 126,355 757,596 Dec. 14... 13, 803, 653: |1, 044,430 7,050, 007 1,035, 320 767, 061 117,980! 100,204|l,988,987 450, 391 189,822 177,113: 126,422! 755,916 Dec. 21.. 13, 892,819J1, 031,167 7,160,898 1, 032,759! 770,286 122,361' 99,9481,969,210 453, 748 186,182 177,294! 129,571 759,395 Dec. 28... 13,952,258! !l, 042,884 7,223,552 1,051,980: 759,527 123,724! 101,424 1,956,480 447,105! 184,581 180,088; 127,734 753,179 Loans and discounts—total: Dec. 7 _ 10,148,707' 790, 36415,165,424 692, 382 j 608,87495,001 73, 364 1, 509, 811 332,150' 129,241 114, 581! 96,854 540, 661 Dec. 14 10,141,779 799, 993 5,152, 364 688,314| 609,182 95,7241 74,216 1, 503, 541 333,210! 130,080 115,323! 96,529 543, 303 Dec. 21 10,197,476! 794,924 5, 258,221 675,739! 607,500 99, 569; 71, 627 1,476,101 335,351! 125,486 113, 283 96,743 542,932 Dec. 28 10,286,471; 800,807 5,334,106 694,792 595,974 101,623 73,43l!l,479,419 331,464i123,645 113,749 97,661 539,800 Secured by U. S. Government obligations- Dec. 7 94,182 8,760 52,104 6,872 4,130 479 1,621 14,120 2,176[ 564 961 409 1,986 Dec. 14 85, 386 9,612 41,319 7, 326: 4,159 445, 1,646 15, 029 2,033! 546 867 422 1,982 Dec. 21. 87,189 9,418 44,644 7,428j 4,226 440: 1,644 13, 596 1,852! 558 959 423 2,001 Dec. 28 89,292 9,710 47,719 7,113! 4,667 440 1,638 12,273 1,837| 552 965! 425 1,953 Secured by stocks and bonds- Dec. 7 _. 4, 571,574 267, 509 2,465,404 365,789; 219,070 23, 565: 17, 637 808,419 154,235 39,144 34,446 21,270 155,086 Dec. 14 4,602,690 363,369! 221,128 23,401! 17, 697 804,106 155,051! 40,563 33,242 21,434! 156,928 Dec. 21 264,673!2,597,315 358, 583 224,888 24,535 17,308 777,739 154, 777,36,844 32, 501 21,382| 156,901 Dec. 28.. 4,752,859 j 227744,117766 22,667755,996600 375,484 214,589 26,558 16,349 776,742 150,39o! 34, 111 31,131 21,346 156,018 All other loans and discounts- Dec. 7.. 5,482,951 514,095 2, 647,916 319, 721 385, 674 70,957 54,106 687,272! 175,739 89, 533 79,174| 75,175 383,589 Dec. 14 5,453,703 521,430 2, 614,225 317, 619 71,878 54,873 684,406i 176,126' 88,971 81,214 74, 673 384,393 Dec. 21 5,442,841 520,833 2,616,262 309,728 378,386 74, 594 52, 675 684,766! 178,722 79,823 74,938 384,030 Dec. 28 5,444,320 516,92112,610,427 312,195 376,718 74,625 55,444 690,404! 179,232 81,653 75,890 381,829 1 Figures not entirely comparable with those published in the BULLETIN for November and preceding months due largely to consolidation with reporting member bank on Dec. 1, 1927, of a nonmember bank in Chicago with loans and investments of $123,000,000; see p. 8 for explanation of this and other revisions. 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98 FEDERAL RESERVE BULLETIN JANUARY, 192S PRINCIPAL RESOURCES AND LIABILITIES BY WEEKS-Continued [In thousands of dollars] City 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 - Investments—total: Dec. 7— 3, 656,873 245>,, 253 1,, 897,161 341,459 164,219 22,129 25,604 478,420 115, 685 59,435 61, 072 29, 501 216,935 Dec. 14 .- 3,661,874 244i,, 437 1,,897,643 347,006 157,879 22,256 25,988 485,446 117,181 59,742 61,790 29,893 212, 613 Dec. 21 - 3, 695, 343 236, 243 1, 902, 677357,020 162,786 22,792 28, 321 493,109 118,397 60, 696 64,011 32,828 216,463 Dec. 28... - 3,665,787 242,077 1, 889,446 357,188 163,553 22,101 27,993 477,061 115,641 60,936 66,339 30,073 213,379 United States Government securities- Dec. 7 1,741, 549 109, 228 982,243 90,092 69,007 4,996 15, 292 214,564 44,067 31, 257 32,105 23,316 125. 382 Dec. 14 - 1, 749, 230 112,973 992, 088 91,086 64, 065 5,196 15, 641 216, 738 44,043 31,054 32, 523 23, 309 120, 514 Dec. 21 1,774,197 108, 209 994,184 100,991 66, 274 5,556 17,890 220,204 44,474 31,734 34,310 25,831 124,540 Dec. 28._ --~ 1,728,065 112,482 974,245 100,835 66,079 5,536 17,541 199,887 39,799 31,765 36,385 23,206 120,305 Other bonds, stocks, and securities— Dec. 7 - 1,915,324 136,025 914,918 251,367 95, 212 17,133 10,312 263,856 71,618 28,178 28,967 6,185 91, 553 Dec. 14 1,912, 644 131,464 905, 555 255,920 93, 814 17, 060 10, 347 268, 708 73,138 28, 688 29, 267 6,584 92, 099 Dec. 21. 1,921,146 128, 034 908,493 256,029 96, 512 17, 236 10,431 272,905 73, 923 28,962 29, 701 6,997 91, 923 Dec. 28 1,937,722 129,595 915,201 256,353 97,474 16,565 10,452 277,174 75,842 29,171 29,9541 6,867 93,074 Reserve balances with Federal reserve bank: Dec. 7 1, 267,419 80, 282 756,480 72,461 39,921 8,979 6,399 182,904 34, 208 17,683 16,889 8, 862 42,351 Dec. 14 1, 280, 278 82. 074 756, 618 72,958 43, 849 8,840! 6,521 187,930 32, 735 16, 521 17,487| 9,332 45,413 Dec. 21 1, 293, 204 79,480 777,375 73,152 38,473 8, 241 7,700! 193, 232 31,499 14,642 17,433 8,646 42, 351 Dec. 28 - 1,310,138 79,187 786,284 75,825 40,548 8,1651 6* 0351 193,815 31,891 16,433 17,094 9,543! 45,318 Cash in vault: Dec. 7 136, 650 8,466 63, 052 15, M6\ 935! 1,325 21, 657 3,936 1,811 2,668 1, 378| 5, 977 Dec. 14 -. 154,868 9, 254 74, 201 18,090! 11,302 1,064 1,373 22, 254 4,804 2,063 2, 8101 1,3641 6, 289 • Dec. 21 .-- 170,108 11, 83f 85,103 17, 848j 10, 553 1,149 1,475 24,925 4,850 2,015 2,773 1,427 6,158 Dec. 28 155,625 12,424 71,252 16,554 11,075 888 1,327 24,862 4,225 2,038 2,767 1,515 6,698 Net demand deposits: ! Dec. 7 9,722,120 717, 707 5, 5C2, 639689,680 293,702 74, 907 53, 970 1,324, 253 290,216 125,287 160, 052 90,902: 338,811 Dec. 14 9, 753, 000 728, 580| 5, 596, 212691,358' 295,838 74,875 55, 991! 1,300,132 294,920 124,444 160,663 90, 334! 339,653 Dec. 21 9,639,415 710,018 5,578,195 661,695; 282,772 72,199: 54,948:1,290,373 281,427 118,655 158,983 88,362 341,788 Dec. 28_ _ -. 9,602,875 708,582 5,543,763 678,932: 278,388 73,639 55,090 1,275,617 274,862; 118,915 159,904 90,050 345,133 Time deposits: Dec. 7__ 3, 222, 552 265, 78811, 027,419 218,674! 468,075 31, 928 37, 672 621,828 131,876| 60,840 19,124 19,511 319,817 Dec. 14 3, 213, 707! 264,910 1,021,657 218,246! 465,627 31, 747 37, 662; 631, 088 131,828] 60,815 19, 085, 19,613! 311,429 Dec. 21 3, 238, 040! 2G3,853 1, 042,459 217,706! 464,470 31, 635 37, 650; 642, 504 137,382 60,145 18,953! 19,807; 301,476 Dec. 28 3,245,700! 270,1901,045,587 218,904' 464,676 31,962J 37,771' 635,646 138,192 60,547 18,825| 19,763 303,637 Government deposits: Dec. 7.__ 4, 094 631 1, 352 464 85 11 44 474 21 65 143; 716 Dec. 14 4,097 631 1,352 462 85 11 44 474 93 21 65 143' 716 Dec. 21 137, 773 16,170 56, 841 15, 987 6,327 825 2,592 9, 629! 2, 939 908 2, 869i 6, 300> 16, 386 Dec. 28 137,769, 16,170 56, 841 15, 987 6,327 825; 2,5921 9,629 2,935 908 2,869 6,300; 16,386 Due D D f e e ro c c . . m 7 1 b 4 - a . n . ks: ._ 5 56 4 4 9 , , 3 7 4 8 0 9 ! 4 38 4 , , 1 2 3 7 7 4 9 9 6 6 , , 5 9 3 1 2 5 5 5 2 2 , , 4 2 4 3 9 4 2 2 3 1 , , 3 3 6 2 4 7 6 6 , , 6 6 3 9 6 8 ' 1 1 2 2 , , 1 4 0 7 6 2 i 1 15 4 6 0 , , 4 3 1 7 2 8 | 3 30 2 , , 6 9 3 2 9 3 2 1 0 7 , , 8 6 4 8 4 9 3 35 6 , , 3 1 1 5 0 8 ; 2 1 1 8 , , 5 2 8 0 9 8 ! ; 7 7 0 0 , , 1 7 M 1 2 2 3 Dec. 2l.._ _ 580, 240! 47, 009 106,348 51, 669| 21, 696 6,075 13,146 150,083; 34, 621 22, 375 36, 722 18, 625! 71, 871 Dec. 28... 578,394 39, 514 110,233 54,076; 22,890 6,410 10,983 154,859 34,247 21,049! 35,806( 19,050 69.,.27.7 H Due to banks: i D D D D e e e e c c c c . . . . 2 2 7 1 8 1 4 2 2 2 2 , , , , 4 4 4 5 8 6 6 2 5 1 5 3 , , , , 2 6 5 7 8 8 0 4 9 8 1 4 ! 1 ! 1 1 1 1 5 4 5 4 5 5 1 9 i, , , , , 6 8 7 7 9 6 6 9 7 5 5 3 1 1 1 , , , , . 1 2 2 6 2 2 9 8 5 8 1 8 , 1 , 6 , , 3 3 5 6 ' 1 1 0 " 3 3 1 1 1 1 6 7 6 6 5 1 7 8 , , , , 0 1 3 6 0 5 6 5 6 6 0 1 J 6 5 6 5 6 0 2 9 , , , , 1 3 2 7 6 7 5 6 7 8 0 2 3 3 3 3 9 9 7 4 , , , , 3 2 2 6 2 7 9 4 9 4 6 7 1 1 1 1 8 8 8 9 , , , , 9 4 5 7 1 8 7 7 6 9 5 5 3 3 3 3 7 7 5 7 1 4 6 7 , , , , 5 6 7 0 8 8 2 9 3 9 1 1 8 8 8 9 5 4 4 1 , , , , 4 3 7 0 2 8 0 2 3 1 4 7 ! 5 5 5 6 7 7 6 1 , , , , 8 6 1 7 9 9 2 2 1 9 8 0 8 8 8 8 7 8 7 9 , , , , 0 4 1 5 9 5 8 6 0 5 5 0 : ! , 3 3 3 3 9 8 8 6 , , , , 4 2 3 5 6 7 9 2 3 6 9 0 ! ' 1 1 1 1 3 2 1 3 8 0 0 4 , , , , 8 6 9 6 3 4 4 9 4 9 8 1 Borrowings from Federal reserve bank—total: Dec. 7 191,123| 19,903 84, 64! 9, 021 8, 704 3,168 2,900 13,482 450 4,083 3, 650 41,113 Dec. 14 217, 809 27, 400 79,189 15, 349] 7,150 3,836 2, 200J 31,514 1, 820; 1, 250 4,979! 4, 550; 38, 572 Dec. 21... 268, 626 21, 751 140, 273 23, 720 11,306 6,275 3,000 17, 680 5,110 1, 000 4, 924! 3,120: 30,467 Dec. 28 307, 775 21,572 203,288 29, 565 6,44 6,461 21,780 5,375 6,313| 400; 6,580 Secured by U. S. Government obligations- Dec. 7 138, 404 16,125 53,771 4,625 800 2,900 12,7 2,500 3, 650 40, 800 Dec. 14 165, 858! 13, 930 62, 205 8, 603 2,425J 2, 2001 30, 025 3,250 2,200! 38,300 Dec. 21... 188,049; 7,288 103, 280 17, 0541 1,900 2,654 15, 589 3,200' 1,950 30,100 Dec. 28 210, 522; 8,393 148,350 24,471 3,249 13,150 6,300 All other- Dec. 7 52, 719] 3,778 30, 874 4, 396 7, 904 703 1,583 313 Dec. 14 51,9511 13,470 16,984 6,746 4, 725 1, 1,729 2,350 272 Dec. 21 80, 577 14,463 36, 993 6, 666' 9,406 346 2,091 1,724 1,170 367 Dec. 28 97,253! 13,179 54,938 5,094 3,192 1,411 400 280 Number of reporting banks: Dec. 7 218; 17 52 13 7 10 Dec. 14 2181 1' 52 13 7! 10 Dec. 21 218 17 52 13; 10 Dec. 28... 217 1' 51 13 10 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

JANUARY, 1928 FEDERAL RESERVE BULLETIN 99 ALL MEMBER BANKS—DEPOSITS, BY SIZE OF CITY, DECEMBER 7, 1927 [In thousands of dollars] Net demand deposits Time deposits Federal reserve district or In places having a population of— In places having a population of— State Total Total Less than 5,000 to 15,000 to 100,000 and Less than 5,000 to 15,000 to 100,000 and 5,000 15,000 100,000 5,000 15,000 100,000 United States 1,749,647 1,184, 590 2,413, 57014,238,463 19,586,270 1,900, 550 1,281,989 2,456,006 7,038,119 12,676,664 DISTRICT Boston 51,952 82,136 217, 740 1,115, 846 1, 467, 674 71,894 94, 788 215,952 590,502 973,136 New York 218, 380 131,176 335,443 6,440, 739 7,125, 738 387, 595 196,960 521, 526 1, 721,742 2,827, 823 Philadelphia 147, 580 76,332 159,950 840,680 1,224, 542 287,840 145,944 272, 274 328, 701 1, 034, 759 Cleveland. 141,493 128,445 201,106 1, 097,145 1,568,189 212, 753 165,247 238,305 929, 291 1, 545, 596 Richmond 102, 919 75,167 185,128 299,586 662,800 151, 565 100,403 165,827 174,434 592, 229 Atlanta - 85,382 75, 057 210, 754 251,241 622,434 63,478 68,048 182, 535 151,265 465, 326 Chicago 180, 785 131,818 398,842 1, 896,455 2, 607, 900 256, 795 187, 564 445,160 1, 242,919 2,132,438 St. Louis --. 107, 049 73, 628 101, 351 498,919 780,947 91,241 58,346 86,374 284,072 520, 033 Minneapolis .108,861 86,902 84,993 199,807 150,920 109,322 79,653 108,819 448, 714 Kansas City 215,686 126,347 232,476 316,458 890, 967 95, 638 63,265 93, 097 92,765 344,765 Dallas 223, 791 110, 636 136,331 258,455 729, 213 18,668 29,963 57,869 79,604 186,104 San Francisco 165,769 86,946 149,456 1,023,132 1,425,303 112,163 62,139 97,434 1,334,005 1,605,741 STATE New England: Maine 11,901 7,158 i 27,271 "I 46,330 35,266 27,414 47,463 110,143 New Hampshire 9,441 13,772 19,471 42,684 6,176 6,267 7,788 20,231 Vermont 7,676 9,441 I 2,695 I 19,812 17,464 18,433 1,898 37, 795 Massachusetts 13,911 38,779 124,832 895,826 I 1,073,348 7,430 33,753 121,293 383, 762 546, 238 Rhode Island 1,198 3,738 128,323 133,259 7 6,336 180,418 186,761 Connecticut 10,630 12,986 49,974 107,096 •"" "" 8,498 8,921 42,361 39,985 99, 765 Middle Atlantic: New York. 158, 778 64, 831 202, 830 6,132,808 6,559,247 287,022 123,059 318, 758 1,476,702 2,205, 541 New j'ersey --. 86,316 86,761 141,194 347,465 661,736 132,961 97,685 211,424 273,302 715,372 Pennsylvania 170,652 112, 805 218,119 1,213, 585 1,715,161 356,147 226,405 364,138 454, 719 1, 401,409 East North Central: Ohio -- 60,909 60,177 94,754 636, 520 852,360 76,367 53,175 100,355 756,944 986, 841 Indiana --- 33, 583 31,968 93, 622 62,431 221, 604 29, 660 25, 648 92, 524 23, 984 171, 816 Illinois 89, 598 59,489 151,106 1, 347, 853 1, 648, 046 93, 350 69, 642 115,210 649,128 927, 330 Michigan 31, 717 40, 728 85, 722 341, 390 499, 557 87,189 95,978 147, 399 487,497 818,063 Wisconsin 22,465 21,829 57, 669 113, 672 215, 635 50, 411 41,459 G9,113 72, 877 233, 860 West North Central: Minnesota 37,83L 26, 086 36, 589 199, 807 300, 353 74, 896 34,818 31,254 108,819 249, 787 Iowa__ 55, 251 21, 358 64, 685 31,109 172, 403 65,082 25, 355 82, 248 9,433 182,118 Missouri 23,732 16, 502 31, 534 531, 042 602,810 16, 282 9, 990 15,024 223, 908 265, 264 North Dakota 23, 257 11,057 I 6,219 40, 533 25, 080 9,823 5,981 40, 884 South Dakota 19,991 12,191 | 6,491 38, 673 17, 598 9,157 2,187 28, 942 Nebraska 28, 078 12,764 ! 14,293 61,954 117,089 25,809 8,380 4,080 13, 740 52,009 Kansas 49, 938 36,418 | 48, 758 7,061 142,175 23,404 16,914 14, 557 2, 927 57,802 South Atlantic: Delaware 3,594 32,787 36, 381 9,662 4,404 14, 066 Maryland 17,486 6,624 3,705 115, 123 142, 938 40,195 17, 639 12,164 80,142 150,140 District of Columbia. 81,151 81,151 41,216 41,216 Virginia 29, 575 16, 065 36, 096 103, 312 185, 048 51, 277 24,661 41, 562 53, 076 170, 576 West Virginia 33, 537 10, 926 52,481 96, 944 35, G80 12, 027 43,975 91, 682 North Carolina 18, 370 30, 278 74, 343 122, 991 18, 991 28, 447 42,177 89, 615 South Carolina 8,019 11,629 28, 284 47,932 11,179 17, 947 37, 455 66, 581 Georgia 19, 025 13, 765 45,448 55, 050 133, 288 11,054 13, 339 38,353 42, 934 105, 680 Florida 21, 647 18,916 77,671 118, 234 16, 111 15, 541 72, 314 103,966 East South Central: Kentucky 35, 390 19, 435 24, 812 82,497 162,134 30, 300 12, 761 22, 498 50, 270 115,829 Tennessee 18, 811 10,161 36,488 69,939 135,399 20,562 7,585 39,136 52,070 119,353 Alabama 25, 764 11, 681 37,989 47,732 123,166 14,411 12, 233 21,541 26, 680 74,865 Mississippi 5,178 20,530 14,247 39,955 3,049 17,068 14,300 34,417 West South Central: Arkansas 24,500 13,732 38,346 76,578 15, 680 6,888 26,401 48,969 Louisiana 6,371 12,740 23,955 123,611 166,677 4,024 7,758 9,064 58,450 79, 296 Oklahoma... 92,274 40, 598 126,149 259,021 22,005 15,114 52,250 89,369 Texas 208,209 99,242 112, 659 258,455 678,565 14,605 25,867 45,989 79,604 166,065 Mountain: Montana 17, 917 22,483 26,129 66, 529 9,402 17,956 22,429 49,787 Idaho 15,456 11,600 9,919 36,975 7,201 6,488 7,965 | 21,654 Wyoming 8,848 15,080 23,928 5,276 9,575 14,851 Colorado _.. 31,970 14,987 15,190 87, 732 149,879 16,840 11,012 10,049 57,063 94,964 New Mexico.. 10,210 8,800 5,905 24,915 1,875 2,082 2,700 6,657 Arizona 3,630 2,872 17,628 24,130 2,012 2,074 8,464 12,550 Utah 8,181 4,959 5,716 39,803 58,659 6,653 4,151 1,685 17,598 30,087 Nevada 4,486 4,657 9,143 4,789 2,544 7,333 Pacific: Washington 31,831 16,379 28,121 116, 537 192,868 26, 990 9,004 24,129 76,984 137,107 Oregon 37,022 21, 629 2,726 66,087 127,464 19,330 16,015 1,480 64,597 101,422 California- 65,453 27,722 87,997 800,705 981,877 45, 298 23,937 56,535 1,174,826 1,300, 596 For back figures see BULLETIN for December, 1927, pages 873 and 886-925. 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100 FEDERAL RESERVE BULLETIN JANUARY, 1928 BROKERS' LOANS LOANS TO BROKERS AND DEALERS, SECURED BY STOCKS AND BONDS, MADE BY REPORTING MEMBER BANKS IN NEW YORK CITY [In thousands of dollars] Demand and time loans | Demand loans Time loans For For For Total For own a o c f c o o u u n t- t ac F co o u r nt Total For own a o c f c o o u u n t- t ac F co o u r nt Total For own a o c f c o o u u n t- t ac F co o u r nt account of-town of others account of-town of others account of-town of others banks banks banks Dec. 7 3,562,805 1,220,398 1,366,278 976,129 2,735,343 !| 899,519 998,625 837,199 827,462 320,879 367,653 138,930 Dec. 14 3,558,355 1,230,124 1,374,106 954,125 2,729,454 1 900,757 1,004,555 824,142 828,901 329,367 369, 551 129,983 Dec. 21 3,644,331 1,302,333 1,337,183 1,004,815 2,799,974 I 962,073 962, 524 875, 377 844,357 340,260 374, 659 129,438 Dec. 28 3,717,622 1,373,536 1,338,291 1,005,795 2,864,107 Hi, 029,490 959,575 875,042 853,515 344,046 378, 716 130,753 BROKERS' BORROWINGS ON COLLATERAL, IN NEW YORK CITY, REPORTED BY THE NEW YORK STOCK EXCHANGE [Net borrowings. In thousands of dollars] Total Borrowings from— New York banks and trust com- Private banks, brokers, foreign Date panies banking agencies, etc. Total On demand On time Total ! On demand On time Total On demand On time 1926—Dec. 31 3,292,860 2,541,682 751,178 2,803,585 2,127,996 675, 589 489,275 413, 686 75,589 1927—Jan. 31._ 3,138,786 2,328,340 810,446 2,670,144 1,963, 554 706,590 468, 642 364, 786 103,856 Feb. 28 3,256,459 2,475,498 780,961 2,757, 385 2,084, 852 672, 533 499,074 390,646 108,428 Mar. 31_ 3,289,781 2, 504, 688 785,093 2, 790,080 2, 111, 565 678, 515 499,701 393,123 106,578 Apr. 30 3,341,210 2, 541,306 799,904 2,864,957 2,146,447 718,510 476,253 394,859 81, 394 May 31. 3,457,869 2, 673,993 783,876 2,967, 546 2,254,153 713,393 490, 323 419,840 70,483 June 30 3,568,967 2, 756, 969 811, 998 3,064, 975 2,316, 440 748,535 503,992 440, 529 63,463 July 30 3,641, 695 2,764,511 877,184 3,144,977 2,343,316 801, 661 496,718 421,195 75,523 Aug. 31. 2,745, 571 928,320 3,169,786 2,330,261 839,525 504,105 415,310 88,795 Sept. 30 3,914,628 3,017, 675 896,953 3,339, 649 2,538,526 801,123 574,979 479,148 95,831 Oct. 31 3,946,137 3,023,238 3,363,010 2, 548,572 814,438 583,127 474,666 108,461 Nov. 30 1 4,091,836 3,134,027 957,809 3, 519,121 2, 674, 722 844, 399 572, 715 459,305 113,410 Dec. 31. COMMERCIAL PAPER OUTSTANDING1 [In thousands of dollars] End of— 922 1923 1924 1925 1926 1927 January... 704,567 806,803 817,880 819,868 654,171 550,918 February.. 717,894 838,041 866,551 819,746 654,943 577,047 March 760,315 863,845 889, 053 812,690 668,000 605,415 April 792,045 867,031 870,956 801,262 662,852 598, 764 May 790, 558 887,644 851, 551 775,517 668,226 581,829 June 795,443 885,216 863, 684 759, 091 652,432 579, 323 July 805,030 854,156 879, 060 727,199 654,944 568,618 August 807,166 830, 743 910,530 721,817 638,110 591,158 September 804, 615 802,676 914,687 708,374 612,058 599, 673 October... 774,755 815,263 925,379 683, 903 593,288 610,945 November. 747,938 799,223 888,256 665,953 566,194 603,145 December. 721,688 763,493 797, 605 621,312 525, 952 » Paper maturing within 7 months. Figures reported by 26 dealers to the Federal Reserve Bank of New York. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

101 JANUARY, 1928 FEDERAL RESERVE BULLETIN BANKERS' ACCEPTANCES OUTSTANDING [In thousands of dollars] All reporting banks1 Banks in New York City Banks outs C id i e t y New York End of— 1925 1926 1927 1925 1926 1927 1925 1926 1927 January... 834,825 788,254 773,604 588,501 574,042 567,554 246,324 214,212 206,050 February.. 767,127 785,488 562,405 559,731 574,202 245,954 207,396 211,286 March 800,137 745, 660 809,446 560,007 543,502 598,536 240,130 202,158 210,910 April 757,074 720, 611 810,966 544,603 524, 608 604,052 212,471 196,003 206,914 May 680,346 685, 333 774,720 499,509 506,012 579,698 180,837 179,321 195,022 June 607,942 621,949 751,270 451,844 461,508 561,274 156,098 160,441 189,996 July 569,386 600,487 741,258 425, 725 440,797 555,262 143, 661 159, 690 185,996 August 555.167 582, 635 782,055 404,247 420,545 573,019 150,920 162,090 209,036 September. 607,025 614,151 863, 823 447,387 442,999 632.139 159,638 171,152 231, 684 October 674.168 681, 647 975,167 502,810 500,186 714, 098 171,358 181,461 261,069 November. 689,768 726,395 1,029,490 507,592 532,166 752, 763 182,176 194,229 276,728 December. 773,736 755,360 560,964 193,900 194,396 1 Figures collected and compiled by American Acceptance Council. LAND BANKS AND INTERMEDIATE CREDIT BANKS LOANS OF FEDERAL AND JOINT-STOCK LAND BANKS LOANS OF INTERMEDIATE CREDIT BANKS [In thousands of dollarsl [In thousands of dollars] Net amount of loans outstanding 1927 1926 Class of loan Date Federal | Joint-stock Dec. 3 Dec.10Dec. 17Dec. 24Dec. 31Dec. 31 land banks ! land banks (12 banks) (54 banks) Direct loans outstanding on- J J J M A F M A S a u u e e p u n a a n l b p r g y y r . e . . t . . . 3 3 2 3 3 3 3 3 1 3 1 1 8 0 1 0 0 _ 1 . . . . . . . . _ . . . . . . . 1926 1 1 1 1 1 1 1 1 1 , , , , , , , , , 6 6 5 6 5 6 6 6 6 2 3 6 4 0 8 7 0 6 5 2 6 4 6 1 7 4 3 , , , , , , , , , 4 1 8 2 8 0 1 9 1 0 4 8 1 5 3 3 0 3 5 4 1 4 6 0 0 2 8 1 1 1 1 1 1 1 1 1 . , , , . , . , , 0 0 0 0 0 0 0 0 0 3 1 4 3 5 4 1 2 5 8 9 3 3 8 7 1 7 3 , , , , , . , , , 0 1 2 0 3 3 4 9 3 4 8 1 8 6 8 8 5 3 5 4 7 8 1 5 6 5 6 5 5 5 6 6 5 5 6 6 1 0 7 6 1 5 9 8 0 0 5 9 7 4 5 7 4 0 , , , , , , , , , 1 0 1 4 5 7 6 7 7 6 2 5 5 9 4 3 5 1 9 8 0 7 4 4 9 6 8 T W A C C R W R o i a l a o v o h c l b n s t e e o e t o i a n g o n a l c t e e n h s t c d t e o a r ble fr s uits a . n _ d . 1 2 4 5 1 1 3 , , , , , , 2 7 6 5 4 8 7 5 6 1 4 3 0 1 3 6 6 9 1 2 0 8 9 2 1 4 2 1 5 1 3 , , , , , , 2 7 5 6 7 9 5 7 5 6 4 3 7 0 5 6 0 0 9 2 6 0 3 6 1 2 4 1 5 4 1 , , , , , , 2 5 8 5 8 1 9 5 1 7 2 3 7 5 1 3 7 9 7 9 6 0 2 4 1 4 2 1 5 1 4 , , , , , , 8 1 9 5 3 9 4 9 o 7 3 3 8 0 5 0 6 5 O 7 2 6 8 5 1 4 2 1 5 1 4 , , . , , , 1 8 2 5 9 9 4 8 4 1 3 5 9 4 1 9 2 5 7 9 0 4 1 3 2 13 3 4 1 2 5 , , , , , , 4 7 5 4 6 2 9 7 6 1 0 0 7 2 7 4 3 1 6 0 4 7 7 7 O N c o t v . . 3 3 1 0 . . . . 1 1, , 6 6 9 8 2 2 , , 8 2 2 6 73 1 1 , , 0 0 6 6 3 8 , , 5 0 9 5 6 6 . 6 6 1 2 9 4 , . 2 2 1 3 7 0 Total 30, 677 31,186 31,634 32,149 31,991 52,705 Dec. 31.. 1, 710,295 1,077,819 I 632', 476 Rediscounts outstanding 1927 j for— Jan. 31 1,724,821 1,085,170 i 639, 651 Agricultural credit cor- Feb. 28 1,745,404 1,097,642 i 647, 762 porations 23, 089 22, 957 22,721 22,604 22,520 23,864 Mar. 31.. 1,765,365 1,109, 354 I 656,011 National banks. Apr. 30 1,732,395 1,117, 914 ! 614, 481 State banks May 31 _ _ 1,741,275 1,124,055 I 617, 220 Livestock loan com- June 30 _ 1,738,165 1,130, 648 607, 517 panies 118,660 19,394 20,305 July 31 _ ; 1,742,575 1,134,896 ! 607, 679 Savings banks and Aug. 31_... ! 1, 749, 393 1,139, 502 609, 891 trust companies Sept. 30 J 1,752,665 1,143,130 609, 535 Oct. 31 __• 1, 757,185 1,147,135 610,050 Total 41,942 142,541 43.207 43,436 43,924 I 39,757 Nov. 30 _ i 1,758,834 1,150, 943 C07,891 BANK DEBITS PAR COLLECTION SYSTEM x DEBITS TO INDIVIDUAL ACCOUNTS BY FEDERAL RESERVE MEMBERSHIP BY FEDERAL RESERVE DISTRICTS DISTRICTS [Number of banks at end of November] [In thousands of dollars] Nonmember banks o N f u c m en b t e e r rs Nov 1 e 92 m 7 ber, Nov 1 e 92 m 6 ber, Fede d r i a s l t r r ic es t erve Member banks | On par list Not on par list New York City 1 33,281,668 25,790,318 1927 ! 1926 Outside New York City 140 23,808, 741 21, 593,299 Federal reserve district: United States 9,067 9,301 Boston 11 3,019,481 2,666,956 New York 7 34,098,534 26,555,199 Boston 413 416 Philadelphia 10 2,265,642 2,108,355 New York 935 911 Cleveland 13 2,464,748 2,386,738 Philadelphia.. 779 769 Richmond 7 796, 815 732,881 Cleveland 837 856 Atlanta 15 1,126,168 1,100, 578 Richmond 568 584 Chicago 21 5, 729,394 5,226,833 Atlanta 464 481 St. Louis 5 1,294,180 1,229,843 Chicago 1,291 1,342 Minneapolis. 9 858,626 712,588 St. Louis 596 617 Kansas City 15 1,287, 696 1,239,058 Minneapolis. . 741 771 Dallas 10 710,014 647,026 Kansas City— 971 999 San Francisco 18 3,439,111 2, 777,562 Dallas 805 833 Total 141 57,090,409 47,383, 617 San Francisco. 667 722 1 Incorporated banks other than mutual-savings banks. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

102 FEDERAL RESERVE BULLETIN JANUARY, 1928 CONDITION OF ALL BANKS IN THE UNITED STATES TABLE 1.—ALL BANKS IN THE UNITED STATES—PRINCIPAL RESOURCES AND LIABILITIES ON CALL DATES, BY FEDERAL RESERVE DISTRICTS, 1923-1927 [In millions of dollars. Figures are for dates indicated or dates nearest thereto for which figures are available] Federal Reserve District Call date Total Boston Y Ne o w rk - P p d h h e i l i l - a a - C la le n v d e- m R o ic n h d - A tlanta Chicago L S o t u . 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 - Loans and investments: 1923—Dec. 31 44,254 5,021 12,442 3,228 3,927 2,230 1,497 6,200 1,913 1,605 1,827 1,018 3,346 1924—Mar. 31 44,622 5,031 12,631 3,284 4,010 2,246 1,493 6,271 1,899 1,552 1,773 1,010 3,422 June 30 _ 45,299 5,147 13,237 3,336 4,062 2,242 1,457 6,328 1,883 1,488 1,739 963 3,417 Oct. 10 46,588 5,302 13,729 3,452 4,173 2,272 1,477 6,539 1,908 1,530 1,744 997 3,465 Dec. 31 47,464 5,323 14,205 3,513 4,177 2,281 1,536 6,572 1,940 1,564 1,784 1,018 3,551 1925—Apr. 6 48,150 5,476 14,038 3,630 4,278 2,320 1,652 6,723 1,951 1,574 1,819 1,044 3,645 June 30... 49,014 5,541 14,521 3,654 4,322 2,337 1,700 6,846 1,986 1,571 1,824 1,016 3,696 Sept. 28 50,019 5,664 14,669 3,759 4,409 2,380 1,889 6,936 2,044 1,586 1,846 1,049 3,788 Dec. 31 50,919 5,738 15,144 3,815 4,374 2,399 2,002 7,011 2,069 1,567 1,849 1,071 3,880 1926—Apr. 12 51,081 5,788 14,993 3,903 4,472 2,410 1,995 7,062 2,074 1,565 1,840 1,063 3,916 June 30 51, 769 15,533 3,923 4,493 2,402 1,850 7,189 2,086 1,549 1,848 1,044 3,944 Dec. 31. 52,272 5,970 15,910 4,038 4,487 2,398 1,792 7,183 2,060 1,495 1,828 1,030 4,081 1927—Mar. 23 52,667 6,003 16, t)64 4,090 4,601 2,385 1,749 7,241 2,066 1,496 1,838 1,075 4,059 June 30 _ 53, 934 6,220 16,851 4,120 4,640 2,424 1,729 7,415 2,071 1,485 1,832 1,064 4,083 Oct. 10 54, 652 6,351 16, 985 4,206 4,704 2,466 1,745 7,486 2,087 1,519 1,856 1,123 4,124 Loans: 1923—Dec. 31.... 30,646 3,146 8,040 1,881 2,622 1,715 1,244 4,471 1,464 1,258 1,496 2,478 1924—Mar. 31 30, 978 3,155 8,229 1,933 2, 668 1,734 1,243 4, 522 1,461 1,201 1,457 833 2,542 June 30 31,218 3,227 8,540 1,940 2,680 1,742 1,221 4,519 1,456 1,142 1,423 801 2,527 Oct. 10 31,832 3,347 8,768 2,020 2,714 1,751 1,237 4, 593 1,485 1,145 1,407 829 2, 536 Dec. 31 32,339 3,371 9,119 2,043 2,729 1,748 1,284 4,600 1,476 1,132 1,421 847 2,569 1925—Apr. 6 32,856 3,487 9,051 2,142 2,828 1,779 1,373 4,690 1,479 1,108 1,430 852 2,637 June 30 33,657 3,548 9,479 2,159 2,879 1,804 1,413 4,822 1,495 1,099 1,429 837 2,693 Sept. 28 34, 621 3, 666 9,682 2,264 2, 964 1,850 1,565 4, 890 1,549 1,104 1,440 865 2,752 Dec. 31 35, 533 3,716 10, 251 2,368 2, Q63 1,866 1, 652 4,949 1,564 1,070 1,432 875 2,827 1926—Apr. 12 35, 530 3,700 10,110 2,445 3,043 1, 873 1,638 4,979 1,567 1,051 1,411 867 2,846 June 30 35,965 3, 796 10,478 2,438 3,043 1,866 1,519 5, 063 1,575 1,031 1,417 855 2,884 Dec. 31 36, 599 3,847 10,976 2, 551 3,074 1,868 1,462 5,102 1.543 987 1,374 841 2, 974 1927—Mar. 23 36, 304 3,834 10, 928 2,523 3,094 1,829 1,404 5,043 1,518- 960 1,372 866 2,933 June 30 37,131 3,951 11,546 2, 509 3.104 1,842 1, 3^6 5,174 1,517 948 1,355 853 2,956 Oct. 10 _ 37, 616 4,029 11, 731 2,573 3,137 1, 857 1,384 5,211 1,527 968 1,359 895 2,945 Investments: 1923—Dec. 31 13, 608 1,875 4,402 1,347 1,305 515 253 1,729 449 347 331 187 1924—Mar. 31 13, 644 1,876 4,402 1,351 1,342 512 250 1,749 438 351 316 177 June 30 14,081 1,920 4,697 1,396 1,382 500 236 1,809 427 346 316 162 890 Oct. 10 14, 756 1,955 4,961 1,432 1,459 521 240 1,946 423 385 337 168 929 Dec. 31. 15,125 1, 952 5,086 1,470 1,448 533 252 1,972 464 432 363 171 982 1925—Apr. 6. 15,294 1,989 4,987 1,488 1,450 541 279 2,033 472 466 389 192 1,008 June 30 15, 357 1,993 5,042 1,495 1,443 533 287 2,024 491 472 395 179 1,003 Sept. 28. 15, 398 1,998 4,987 1,465 1,445 530 324 2, 046 495 482 406 184 1,036 Dec. 31 _ 15,386 I 2,022 4,893 1,447 1,411 533 350 2,062 505 497 417 196 1,053 1926—Apr. 12 15, 551 2,088 4,883 1,458 1,429 537 357 2,083 507 514 429 196 1,070 June 30 15, 804 2,112 5,055 1,485 1,450 536 331 2,126 511 518 431 189 1,060 Dec. 31 15, 672 2,123 4,934 1,487 1,413 530 330 2,081 517 508 454 189 1,107 1927—Mar. 23 16, 363 2,169 5,136 1,567 1,507 556 345 2,198 548 536 466 209 1,126 June 30 16, 803 2, 269 5,305 1,611 1, 536 582 '353 2,241 554 537 477 211 1,127 Oct. 10. 17,036 2,322 5,254 1,633 1,567 609 361 2,275 560 551 497 228 1,179 Deposits (exclusive of bank deposits): 1923—Dec. 31 42,143 4,687 11,971 2,898 3, 662 2,041 1,410 5,951 1,737 1,538 1,765 1,059 3,424 1924—Mar. 31 V" 41, 958 4,677 12, 023 2,887 3,728 1, 992 1, 398 5,950 1,707 1,507 1,725 961 3,403 June 30 43,369 4,867 12.970 2,971 3,808 1, 982 1,363 6,119 1,720 1,481 1,732 917 3,439 Oct. 10 44,162 5,003 12, 818 3,066 3,870 2,030 1,416 6,254 1, 763 1,548 1,809 1,019 3,566 Dec. 31 45,813 5,032 13, 547 3,166 3,855 2,103 1,553 6,446 1,873 1,596 1,901 1,075 3,666 1925—Apr. 6 45, 837 5,108 13,169 3, 222 3,962 2,093 1,670 6,486 1, 865 1,602 1,902 1,078 3,680 June 30... 47, 575 5,218 14,334 3,278 4,042 2,083 1,704 6,737 1,904 1,602 1,922 1,006 3,745 Sept. 28 47, 968 5,286 14,141 3,318 4,087 2,127 1,917 6,747 1,950 1, 626 1,935 1,033 3,801 Dec. 31.... 49, 202 5,402 14, 398 3,450 4, 078 2,217 2,107 6,855 2,031 1,622 1,950 1,099 3,993 1926—Apr. 12 48, 713 5,427 14,180 3,445 4,121 2,174 2,009 6,844 1,989 1,603 1,918 1,056 3,947 June 30 49, 695 5,579 14.971 3,479 4,226 2,170 1,805 7,005 1,985 1,576 1,920 1,008 3,971 Dec. 31 50,009 5,593 15,153 3,602 4,145 2,222 1,741 6,970 1,965 1,526 1,924 1,053 4,115 1927—Mar. 23 "~_ 49, 777 5,583 15, 071 3,587 4,281 2,194 1,687 6,906 1,979 1,504 1,916 1,069 4,000 June 30 51, 612 5,810 16, 233 3,645 4,325 2,244 1,674 7,167 1,970 1,507 1,916 1,049 4,072 Oct. 10 52,084 5,939 16,075 3,713 4,370 2,300 1,695 7,246 1,990 1,571 1,940 1,140 4,105 Rediscounts and bills payable: 1923—Dec. 31 1,223 110 235 97 79 92 96 175 77 17 60 1924—Mar. 31 965 70 150 79 64 106 84 133 58 23 71 June 30 787 36 95 54 49 111 80 106 59 36 46 Oct. 10 " ' 663 30 111 40 45 97 71 81 43 23 27 Dec. 31.... 747 81 176 81 80 49 96 28 10 26 1925—Apr. 6 _ 812 79 235 66 86 46 121 23 7 40 June 30 920 80 220 80 71 119 57 119 26 20 53 Sept. 28 1,064 71 313 85 92 119 69 106 25 22 70 Dec. 31 1,104 104 357 95 103 89 52 155 20 9 40 1926—Apr. 12 980 56 242 104 91 90 76 141 18 19 58 June 30 1,010 73 207 98 84 105 153 20 37 53 Dec. 31 1,084 91 253 111 120 73 182 19 15 43 1927—Mar. 23 805 47 176 83 70 56 133 17 13 70 June 30 816 70 136 93 69 67 131 18 19 54 Oct. 10__ 800 45 245 58 63 60 13 13 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

JANUARY, 1928 FEDERAL RESERVE BULLETIN 103 TABLE 2.—MEMBER BANKS—PRINCIPAL RESOURCES AND LIABILITIES ON CALL DATES, DEC. 31, 1923, TO OCT. 10, 1927 [In millions of dollars] Federal Reserve District Call date Total Boston Y N o ew rk 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 )hicago Lo S u 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 - Loans and investments: 1923—Dec. 31 26,738 2,049 7,656 1,973 2,742 1,210 985 3,909 1,188 864 1,098 812 2,252 1924—Mar. 31 26,832 2,026 7,693 1,994 2,799 1,217 970 3,940 1,181 854 1,059 777 2,322 June 30 27,262 2,060 8,121 2,033 2,839 1,198 937 4,014 1,162 825 1,040 733 2,300 Oct. 10 28,451 2,172 8,554 2,139 2, 941 1,220 957 4,227 1,187 867 1,059 767 2,361 Dec 31 - 29,027 2,172 8,849 2,170 2,934 1,228 1,000 4,220 1,226 907 1,081 791 2,449 1925-Apr. 6 29, 285 2,207 8,638 2,232 3,007 1,250 1,061 4,290 1,249 907 1,117 814 2,513 June 30... _. 29,702 2,252 8,869 2,251 3,033 1,256 1,085 4,382 1,230 1,116 792 2,548 Sept. 28.._ _ 30,369 2,325 8,957 2,312 3,098 1,281 1,201 4,443 1,283 1,137 823 2,613 Dec. 31... 31,199 2,395 9,516 2,341 3,061 1,297 1,250 4,491 1,312 1,133 833 2,677 1926—Apr. 12 31,070 2,391 9,213 2,412 3,131 1,298 1,241 4,503 1,335 890 1,139 833 2,684 June 30 __ 31,391 2,426 9,477 2,423 3,167 1,282 1,173 4,582 1,320 881 1,157 808 2,695- Dec. 31 31,896 2,458 9,849 2,482 3,139 1,278 1,163 4, 552 1,314 862 1,136 808 2,855 1927—Mar. 23 32,154 2,460 9,743 2, 520 3,243 1,290 1,159 4, 597 1,332 862 1,160 842 2,946- June 30 __ 32,967 2,557 10, 284 2,536 3,274 1,312 1,144 4,720 1,337 851 1,154 831 2,967 Oct. 10 33,451 2,621 10,341 3,333 1,361 1,161 4,757 1,359 882 1,168 877 2,998 Loans: 1923—Dec. 31.. 19,052 1,471 5,225 1,192 1,843 950 2,878 854 656 849 650 1, 686 1924—Mar. 31 19,176 1,458 5,278 1,220 1,864 959 787 2,922 856 640 823 629 1,740 June 30 _ 19,264 1,450 5,452 1,241 1,877 954 764 2,952 844 611 800 597 1,722 Oct. 10 _. 19,820 1,536 5,625 1,287 1,900 959 780 3,079 874 629 795 625 1,731 Dec. 31 20,182 1, 542 5,901 1,289 1,903 960 816 3,039 885 631 801 646 1,769 1925—Apr. 6-... 20,390 1,580 5,771 1,352 1,978 980 862 3,082 892 612 812 651 1,818 June 30.._ 20,814 1,620 5,970 1,382 2,016 991 878 3,190 878 597 805 638 1,84$ Sept. 28_. 21,450 1,690 6,104 1,450 2,071 1,019 963 3, 252 930 600 817 664 1,890 Dec. 31 22, 275 1,726 6,726 1,489 2,064 1,033 1,000 3,284 951 586 805 668 1,943 1926—Apr. 12 22,006 1,686 6,380 1,552 2,117 1,030 992 3,295 972 576 794 668 1,944 June 30 22, 267 1,707 6,567 1,578 2,141 1,017 940 3,377 952 568 811 650 1,959 Dec. 31. 22,906 1,738 7,044 1,620 2,151 1,014 931 3,39S 948 554 777 652 2,079 1927—Mar. 23 22, 532 1,710 !6,748 1, 596 2,170 1,009 907 3,335 934 541 787 669 2,126 June 30 23,149 1,765 j7,184 1,609 2,186 1,015 888 3,469 931 531 776 654 2,141 Oct. 10. 23,492 1,810 |7,317 1,623 2,208 1,037 901 3,495 949 553 776 2,134 Investments: 1923—Dec. 31. _. 7,686 578 i 2,431 781 899 260 187 1,031 334 208 249 162 566 1924—Mar. 31 7,656 568 I 2,415 774 935 258 183 1,018 325 214 236 148 582 June 30 7,998 610 |2, 669 792 962 244 173 1,062 318 214 240 136 578 Oct. 10 8,631 636 i 2,929 852 1,041 261 177 1,148 313 238 264 142 630 Dec. 31 __.. 8,845 630 2,948 881 1, 031 268 184 1,181 341 276 280 145 680 1925—Apr. 6 8,895 627 2,867 880 1, 029 270 199 1.203 357 295 305 163 695 June 30 8,888 632 2, 899 869 1,017 265 207 1, 192 352 291 311 154 699 Sept. 28 8,919 635 2,853 862 1,027 262 238 1,191 353 296 320 159 723 Doc. 31 8, 924 669 2, 790 852 997 264 250 1,207 361 307 328 165 734 1926—Apr. 12 . 9, 064 705 2,833 860 1,014 268 249 1,208 363 314 345 165 740 June 30 9,124 719 2,910 845 1, 026 265 233 1,205 368 313 316 158 736 Dec. 31. 8, 990 720 2,805 862 988 264 232 1,154 366 308 359 156 776 1927—Mar. 23 9, 622 750 !2, 995 924 1,073 281 252 1,262 398 321 373 173 820 June 30 9, 818 792 3,100 927 1,088 297 256 1,251 406 320 378 177 826 Oct. 10. 9,959 811 3,024 970 1,125 324 260 1,262 410 329 392 188 864 Deposits (exclusive of bank deposits): 1923—Dec. 31.._ 24,974 1,879 | 7,418 1,727 2,494 1,044 879 3,618 1,016 807 1,021 779 2,292 1924—Mar. 31... 24, 768 1,850 ! 7,425 1, 699 2,536 1,026 855 3,568 1,005 800 997 719 2,288 June 30... 25, 675 l,ls38 j 7, 925 1,757 2,604 1,018 850 3,762 1,014 805 1,013 676 2,313- Oct. 10... 26,282 2,041 ! 7,818 1,849 2,659 1,052 877 3,873 1,050 842 1,050 754 2,417 Dec. 31 27,814 2,050 ! 8,800 1,894 2, 637 1, 092 953 4,004 1,121 876 1,082 795 2,510 1925—Apr. 6.. 27,145 2,023 i 7,994 1,915 2,730 1,084 1,004 3,986 1,122 875 1,091 796 2,525 June 30 28,403 2,112 ! 8,838 1,959 2,781 1, 090 1,027 4,185 1,097 871 1,113 764 2,566 Sept. 28 28,172 2,148 I 8,346 1,986 2,806 1,105 1,127 4,166 1,114 868 1,113 791 2,602 Dec. 31 30, 007 2,245 ; 9,453 2,076 2,804 1,157 1,220 4,285 1,182 880 1,140 822 2,74a 1926—Apr. 12 29, 021 2,228 ; 8,631 2,079 2,856 1,137 1,168 4,224 1,196 869 1,126 805 2,702 June 30 29, 743 2,296 j 9,177 2,094 2,929 1,138 1,108 4,340 1,171 861 1,154 761 2,714 Dec. 31 30,454 2,285 ! 9, 686 2,166 2,882 1,164 1,092 4,316 1,186 847 1,148 800 2,882 1927—Mar. 23 29,844 2,260 j 9, 051 2,163 3,002 1,153 1,074 4,246 1,197 827 1,142 815 2,914 June 30 31,227 2,358 9, 971 2,186 3,031 1,193 1,066 4,462 1,187 842 1,158 800 2,973 Oct. 10 31,247 2,425 ! 9, 587 2,230 3,055 1,232 1,076 4,504 1,229 885 1,166 862 2,996 Rediscounts and bills payable: 1923—Dec. 31 _ 74 166 58 64 65 109 64 27 53 12 48 1924—Mar. 31 615 41 ! 107 47 72 59 71 47 18 25 17 59 June 30 443 21 S 32 68 47 51 31 19 23 24 33 Oct. 10 326 10 29 51 39 35 37 12 10 15 18 Dec. 31 408 39 56 48 27 44 14 6 7 19 1 1 1 9 9 9 2 2 2 5 6 7 — — — J J J S D D O A A M u u u e e e c p p n n n c p c a t r . r . e e e . r t . . . . 1 3 3 3 3 3 6 1 2 2 0 1 0 1 0 0 2 8 3 4 7 7 6 6 5 7 5 5 5 1 8 3 1 5 3 4 4 2 6 2 6 2 2 9 0 1 6 8 0 4 4 4 4 8 5 7 3 6 2 1 6 8 4 6 2 8 0 2 2 2 1 1 1 1 1 1 1 3 5 1 5 3 6 1 0 6 1 1 8 2 6 9 8 1 0 1 3 4 4 6 7 6 9 4 5 4 6 0 8 6 7 6 1 5 9 9 1 4 5 6 6 5 2 5 3 3 3 8 3 7 9 5 7 9 7 5 5 2 3 3 3 5 4 5 4 4 3 5 1 8 2 2 9 3 7 2 7 1 9 8 9 6 7 6 7 6 3 0 4 1 9 0 1 7 2 8 4 8 2 4 2 3 3 1 3 3 2 1 5 8 9 0 5 7 6 8 0 9 2 1 1 1 1 1 1 9 0 7 7 7 1 7 2 2 5 2 1 1 1 1 1 8 5 4 6 6 2 0 3 2 2 4 3 2 4 3 5 5 4 5 9 6 9 7 2 9 8 8 1 2 I 185 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

104 FEDEKAL RESERVE BULLETIN JANUARY, 1928 TABLE 3.—NONMEMBER BANKS^-PRINCIPAL RESOURCES AND LIABILITIES ON CALL DATES, DEC. 31, 1923, TO OCT. 10, 1927 [In millions of dollars. Figures are for dates indicated or dates nearest thereto for which figures are available] Federal Reserve District Call date 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 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 - Loans and investments: 1923—Dec. 31 17,516 2,972 4,786 255 1,185 1,020 512 2,291 725 741 729 206 1,094 1924—Mar. 31 17,790 3,005 4,938 290 1,211 1,029 523 2,331 718 698 714 233 1,100 June 30- 18,037 3,087 5,116 303 1,223 1,044 520 2,314 721 663 699 230 1,117 Oct. 10 18,137 3,130 5,175 313 1,232 1,052 520 2,312 721 663 685 230 1,104 Dec. 31.. - 18,437 3,151 5,356 343 1,243 1,053 536 2,352 714 657 702 227 1,102 1925—Apr. 6 18, 865 3,269 5,400 398 1,271 1,070 591 2,433 702 667 703 230 1,132 June 30 19,312 3,289 5,652 403 1,289 1,081 615 2,464 756 683 708 224 1,148 Sept. 28 19,650 3,339 5,712 447 1,311 1,099 688 2,493 761 690 709 226 1,175 Dec. 31 19,720 3,343 5,628 474 1,313 1,102 752 2,520 757 674 716 238 1,203 1926—Apr. 12 _ _... 20,011 3,397 5,780 491 1,341 1,112 754 2,559 739 675 701 230 1,232 June 30.-- 20,378 3,482 6,056 500 1,326 1,120 677 2,607 766 668 691 236 1,249 Dec. 31 20,376 3,512 6,061 556 1,348 1,120 629 2,631 746 633 692 222 1,226 1927—Mar. 23 20,513 3,544 6,321 569 1,358 1,095 590 2,644 734 634 678 233 1,113 June 30--_ 20,967 3,663 6,567 584 1,366 1,112 585 2,695 734 634 678 233 1,116 Oct. 10 21,201 3,730 6,644 613 1,371 1,105 584 2,729 728 637 246 1,126 Loans: 1923—Dec. 31 11,594 1,675 2,815 779 765 446 1,593 610 602 647 181 792 1924—Mar. 31 ___ 11,802 1,697 2,951 713 804 775 456 1,600 605 561 634 204 802 June 30 11,954 1,777 3,088 699 803 788 457 1,567 612 531 623 204 805 Oct. 10 12,012 1,811 3,143 733 814 792 457 1, 514 611 516 612 204 805 Dec. 31 12,157 1,829 3,218 754 826 788 468 1,561 591 501 620 201 800 1925—Apr. 6 12,466 1,907 3,280 790 850 799 511 1,608 587 496 618 201 819 June 30... 12, 843 1,928 3,509 777 863 813 535 1,632 617 502 624 199 844 Sept. 28 „_. 13,171 1,976 3,578 844 893 831 602 1,638 619 504 623 201 862 Dec. 31 13,258 1,990 3,525 879 899 833 652 1,665 613 484 627 207 884 1926—Apr. 12 __. 13,524 2,014 3,730 893 926 843 646 1,684 595 475 617 199 902 June 30 13,698 2,089 3,911 860 902 849 579 1,686 623 463 606 205 925 Dec. 31 13,693 2,109 3, 932 931 923 854 531 1,704 595 433 597 189 895 1927—Mar. 23 13,772 2,124 4,180 927 924 820 497 1,708 584 419 585 197 807 June 30 13, 982 2,186 4,362 900 918 827 1,705 586 417 579 199 815 Oct. 10 14,124 2,219 4,414 950 929 820 1,716 578 415 583 206 811 Investments: 1923—Dec. 31.. 5,922 1,297 1,971 566 406 255 66 698 115 139 25 302 1924—Mar. 31 5,988 1,308 i;987 577 407 254 67 731 113 137 80 29 298 June 30. _ _. 6,083 1,310 2,028 604 420 256 63 747 109 132 76 26 312 Oct. 10 6,125 1,319 2,032 580 418 260 63 798 110 147 73 26 299 Dec. 31 6,280 1,322 2,138 589 417 265 68 791 123 156 83 26 302 1925—Apr. 6. 6,399 1,362 2,120 608 421 271 80 825 115 171 84 29 313 June 30 _. 6,469 1,361 2,143 626 426 80 832 139 181 84 25 304 Sept. 28 6,479 1,363 2,134 603 418 86 855 142 186 86 25 313 Dec. 31 6,462 1,353 2,103 595 414 269 100 855 144 190 89 31 319 1926—Apr. 12 6,487 1,383 2,050 598 415 269 108 875 144 200 84 31 330 June 30 6.680 1,393 2,145 640 424 271 98 921 143 205 85 31 324 Dec. 31 6,6S2 1,403 2,129 625 425 266 98 927 151 200 95 33 331 1927—Mar. 23 6,741 1,420 2,141 642 434 275 93 936 150 215 93 36 306 June 30 1,477 2,205 684 448 285 97 990 148 217 99 34 301 Oct. 10 7,077 1,511 2,230 663 442 285 101 1,013 150 222 105 40 315 Deposits (exclusive of bank deposits): 1923—Dec. 31 17,169 2,808 4,553 1,171 1,168 997 531 2,333 721 731 744 280 1,132 1924—Mar. 31 17,190 2, 827 4,598 1,188 1,192 966 543 2,382 702 707 728 242 1,115 June 30 17,694 2,929 5,045 1,214 1,204 964 513 2,357 706 676 719 241 1,126 Oct. 10__ 17,880 2,962 5,000 1,217 1,211 978 539 2,381 713 706 759 265 1,149 Dec. 31 ..__ 17, 999 2,982 4,747 1,272 1,218 1,011 600 2,442 752 720 819 280 1,156 1925—Apr. 6 18,692 3,085 5,175 1,307 1,232 1,009 666 2,500 743 727 811 282 1,155 June 30 _. . 19,172 3,106 5,456 1,319 1,261 993 677 2,552 807 731 809 242 1,179 Sept. 28 19,796 3,138 5,795 1,332 1,281 1,022 7D0 2,581 836 758 822 242 1,199 Dec. 31 19,195 3,157 4,945 ! 1,374 1,274 1,060 887 2,570 849 742 810 277 1,250 1926—Apr. 12 19,692 3,199 5,549 1,366 1, 265 1,037 841 2,620 793 734 792 251 1,245 June 30 19,952 3,283 5,794 1,385 1,297 1,032 697 2,665 814 715 766 247 1,257 Dec. 31 19,555 3,308 5,467 1,436 1,263 1,058 649 2,654 779 679 776 253 1,233 1927—Mar. 23 -II"! 19,933 3,322 6,020 1,424 1,279 1,041 613 2,660 782 677 775 254 1,086 June 30 20,385 3,452 6,262 1,459 1,294 1,051 608 2,705 783 665 758 249 1,099 Oct. 10-. 20, 837 3,514 1,483 1,315 1,068 619 2,742 761 774 278 1,109 •Rediscounts and bills payable: 1923—Dec. 31 415 36 28 21 28 31 66 35 33 12 1924-Mar. 31 1""""' 350 29 28 17 34 25 62 25 31 12 June 30 344 15 21 17 43 33 55 32 29 12 13 Oct. 10. 337 20 17 16 46 32 46 27 22 9 Dec. 31 339 42 25 25 32 22 52 22 10 7 1925—Apr. 6. 1.1'.'.'.'. 326 38 19 26 38 21 61 17 9 11 June 30_ 361 24 25 23 52 26 48 28 14 14 Sept. 28 352 25 30 26 50 31 39 21 12 12 Dec. 31 372 32 34 26 34 20 61 21 14 13 1926—Apr. 12... ~_. 350 14 38 25 37 24 60 22 13 12 June 30 _. . . 398 25 31 25 46 39 54 25 15 14 Dec. 31 324 7 36 29 36 36 74 31 14 1 1927—Mar. 23.... ~~~~ 259 9 30 25 29 22 61 30 11 12 June 30 275 10 27 20 32 27 63 25 15 11 Oct. 10__ 272 7 19 2 25 28 55 38 13 13 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

105 JANUARY, 1928 FEDERAL RESERVE BULLETIN TABLE 4—ALL BANKS IN THE UNITED STATES i—PRINCIPAL RESOURCES AND LIABILITIES ON OCTOBER 10 AND JUNE 30, 1927,2 BY STATES [In thousands of dollars] Loans and investments Deposits Rediscounts Number exclusive of bank and bills of reporting State Total Loans 3 Investments deposits) payable banks I October June October j June October June October June O b c e t r o- June O b c e t r o- June New England: Maine 416,619 409,901 198, 793 i 196,150 217, 826 213, 751 390,009 382,467 4,497 5,410i 143 144 New Hampshire.. 283, 385 282,499 140, 381! 139,991 143, 004 142, 508! 258, 367 254,279 1,681 3,295: 123 123 Vermont 237,249 235, 595 153,401! 155,049 83, 848 80, 546! 223,950 222,424 2,107 3,203: 105 105 M Rh a o s d sa e c I h s u la s n e d tts 3,9 5 8 1 4 6 , , 8 27 8 8 0 3,8 5 8 13 3 , , 8 5 9 5 7 2 2,7 2 2 7 0 5 , , 4 1 8 9 8 3 ! j 2,6 2 5 74 8 , , 3 3 3 7 4 4! L, 2 4 2 1 6 , 4 , 0 8 3 5 921,2 2 2 3 5 9 , , 5 1 6 7 3 8 ! 3,7 49 1 7 5 , , 0 6 9 1 8 7 ( 4 , 9 5 6 , 15 1 , 5 5 80130,7 5 2 6 0 3 51, 2 5 2 07 7 ; ! 44 3 2 7 44 3 2 7 Connecticut 1,181, 497 1,159, 090 672, 621 658,080;•j 508, 876 i 501,004j 1,110,438 :, 090,252 5,717 8, 379: 232 232 Middle Atlantic: New York _.. 14,838,681114,739,511 10, 410,110 10,239, 456j 4, 428, 5714, 500,055114,034,053 14,209, 376 214, 335 107,313| 1,150 1,151 New Jersey 2,286,849 2,255,429 1,472,852 1,464,821! 813,997 790,608 2,165,270: 2,149,075 38, 402 43, 859! 572 568 Pennsylvania 5C, 5C0r\11, 5E9ft/44 5C, 4A1Ti1 ,3O5K2O 3,209,3~3~9" 3,141,264'; 2,292,2552,270,088 4,833,4851 4,783,977 74, 579 98,853 1,629 1,640 East North Central: Ohio 2, 611, 593 2, 559,223 1,935,866' l,902,901! 675, 727 656, 322 2,511,444 2,457,787 < 34, 348< 40, 388; 1,063 1,064 Indiana 882,155 880,900 669,866! 673,763; 212,289; 207,137 833,268 831,338 47, 087 48,734i 1,063 1,065 Illinois 3, 712, 360 3, 665,212 j2, 758,177| 2, 702,246! 954,183 962,966 3,519,509! 3,477,447 21,954 36,299! 1,837 1,843 Michigan.. 1,849, 604 1,835,373 895, 513: 911,157 954, 091 924,216 1,804,911 1,794,383 18, 573 33,144: 749 743 Wisconsin _._.| '898,220 904, 950 622, 487 633,489 275, 733 271,461 901,933 893,310 6,335 14,422 970 973 West North Central: Minnesota __! 917,644 896,096 562, 728 546, 64l| 354,916 349, 455 895,416 883, 086 7,9991 8,832! 1,174 1,195 Iowa.__ j 792,5621 783, 289 680, 326: 675,998: 112,236 107,291 «825,143! 5 818,843 7,482 8, 8391 1,370 1,383 Missouri ! 1,246,584' 1,242,337 894, 6381 891,151j 351, 9461 351,186 1,181, 72651,171,623 24,287| 33,968! 1,439 1,457 North Dakota I 132,770 129,045 101,935 99, 880' 30,8351 29,165 157,1321 136,261 2,117 3,686! 529 530 South Dakota. 125,237 120,276 93,487 90,981 31, 750: 29,295 144,578! 130,495 1,845 3, 3031 418 417 Nebraska _._ 413,848 404,599 339,021 338, 697 74, 827: 65, 902 428,857 416, 717 7,064 7,664! 1,021 1,025 Kansas _.i 399,043 400,679! 305,153 311, 515 93,890| 89,164 5 417,099 5 418,177 5,389 6,927: 1,168 1,180 South Atlantic: i Delaware.- 135,981 131, 657! 80, 508 78,429 55,473: 53,228 118, 380 115,966 1,073 1,279! 49 47 Maryland 803,145 788,627 479,226 476,537i 323,919 312,090 750,272 731,951 10, 709 17,5471 244 244 District of Columbia__. 241,269 241, 527 j 181, 635 181, 836! 59, 634, 59, 691 240, 547 242, 306 1,144 9541 42 43 Virginia 546,116 537,152 461, 925 457,872 84,191 i 79,280 459,168 457,196 19,055 13,916! 497 497 West Virginia 364,737 365, 400; 298,173 299,920! 66, 564! 65,480! 342, 075 345,696 9,168 9, 618' 338 339 North Carolina- 403, 758 387,847. 352, 358 342,445! 51, 400 45,402 391, 462 364,410 18, 384 19,369! 465 470 South Carolina 184, 322 180, 725! 143,548 144, 053! 40, 774 36, 672 189, 723 176,556 2,"' 6,310! 279 281 Georgia _ .-! 366,8921 352,299! 308,461 297,945' 58,431 54, 354 346, 789| 320,737 10,145 14,341; 469 471 Florida | 385,1001 401, 944! | 258, 384 278,430| 126, 716, 123, 514 383,2851 425, 37" 16,846 13, 042, 322 327 East South Central: ! Kentucky 484,528 477, 5571 371, 984 370,521 112, 544! 107, 036 422,340 413, 805 9, 600 11,907 602 603 Tennessee 387,424 383,2921 337.198 334,173 50, 226 j 49,119 5 390, 522 «388, 253 10, 289 8,431 520 520 Alabama __ 284,8031 271, 975| 231, 47" 221, 667 53,325! 50, 308 s 293, 235 s 259, 761 5,052 11,804 356 356 Mississippi 226, 502 212, 529| 176,770 163, 0G4 49,732! 49,465 236, 303 218,158 10,753 7,321 326 325 West South Central: Arkansas 203,914 198, 853 173, 309 170,529 30, 605 28, 324 205,328 199,816 9,886 8,226 453 455 Louisiana 400,049 400, 022 334,472 334,020 65, 577 66,002 376, 548 373,240 23,167 23,464 232 232 Oklahoma _.. 373,966 370, 636 245,999 245, 376 127,967: 125, 260 414,109 416,785 6, 275 3,897 693 696 Texas 991,611 942, 857 791,973 756,276 199,638; 186,581 1,000,330 925,309 9, 542 16,0351 1,416 1,416 Mountain: Montana 135, 510 130, 243 86,949 83, 826 48,561! 46,417 157,196 141,098 596 1,520 209 210 Idaho 75,074 73, 264 47,738 47, 823 27, 336: 25, 441 86, 286 79, 509 1,116 1,832] 144 144 Wyoming 51,768 51,719 37,059 37,367 14,709; 14, 352 59, 378 55, 361 638 892 8 88 Colorado 265, 204 256, 042 166,676 159,360 98, 528j 96, 682 283, 591 274, 600 3, 376 2,584 297 297 New Mexico 38,426 31,778 25,913 20,261 12,513 11,517 42, 471 33,925 615 3(35 59 59 Arizona 62,398 61,945 42,37 42, 534 20,021 19, 411 s 72, 767 5 71, 221 6 1,512 6 1, 029 46 46 Utah..., 144,003 140,875 114.199 111,538 29,804; 29, 337 124, 544 121, 005 2,585 2,175 107 107 Nevada 36,278 35, 746 28,302 27,902 7,976: 7, 844 38,416 38, 111 426 35 35 Pacific: Washington 419,778 406,720 265,884 261, 233 153,894' 145,487 436, 228 421,945 2,543 3,462 357 358 Oregon _ 260, 503 252,991 161, 517 160,889 "'9,046; 92,102 276, (520 266,616 1,758 4,115 251 1 253 California 3,149, 789 3,134, 719 2, 299, 6: 2, 319,200 3,097, 048 3,100,681 53,474 41, 893 536 544 Total _ 54,651, 560 53,933, 746 37, 616, 012 37,130,970 17,1035, 548; 16,802,776 52, 084, 264 51, 611, 66' 799,706 815, 580 26, 665 26,780 1 Includes all National, State, and private banks in the United States except a certain number of nonreporting private banks not under State supervision. 2 Figures for State institutions are taken from the table on p. 107, and represent in some cases the condition of banks as of dates other than Oct. 10 and June 30. 3 Includes acceptances of other banks and foreign bills of exchange sold with indorsement by member banks. 4 Includes bonds borrowed. 5 Includes due to banks. • Includes other liabilities. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

106 FEDERAL RESERVE BULLETIN JANUARY, 1928 TABLE 5—NATIONAL BANKS—PRINCIPAL RESOURCES AND LIABILITIES ON OCTOBER 10 AND JUNE 30, 1927 [In thousands of dollars] Loans and investments Deposits Rediscounts Number (exclusive of bank and bills of reporting deposits) payable banks Total Loans Investments State Octo- Octo- October June October June October June October June ber June ber June New England: Maine 146,709 143,829 74, 712 74,025 71,997 69, 804 135,928 131,682 1,890 1,877 57 57 New Hampshire 67,805 66,919 40,354 39,964 27,451 26,955 58, 960 54, 872 1,593 3,207 55 55 Vermont 64,947 63,599 37. 685 37,419 27, 262 26,180 56,310 54,133 1,000 2,021 46 46 Massachusetts 1,218, 5731,166,834 865,033 832,152 353,540 334, 682 1, 097, 2561,047, 780 19,935 37,465 153 153 Rhode Island 56,443 55, 535 34,518 33,482 21,925 22,053 45,615 44,422 563 187 13 13 Connecticut 261,456 253,126 179,579 173, 634 81,877 79,492 240, 637 233, 651 2,701 65 65 Middle Atlantic: New York. 4,607, 8614,483,375 3,150, 2483,027, 681 1,457,613 1,455,694 4, 060, 9834,197, 605 69,389 56, 815 560 554 New Jersey 822,362 801,212 502,438 498,353 319,924 302, 859 782, 664 764,317 14, 653 23,161 294 291 Pennsylvania 2,587,188 2, 557,255 1, 547,8601,544, 7531,039,328; 1,012,502 2, 222,1902, 218,116 40,955 52, 589 867 East North Central: Ohio -- 727,181 715,732 476,376 473,086 250,8051 242, 646 672, 266 669,189 14,334 10, 662 338 340 Indiana 343,521 342,266 232, 219 236,116 lll,302J 106,150 317, 640 315,710 3,129 4,776 231 233 Illinois 1,414,"" 1,411,232 1,064, 7401, 052, 674 349, 348 358, 558 1, 263, 6721,268, 551 8,369 16, 750 489 490 Michigan 442,962 449,996 295,124 307, 875 147,838 142,121 432, 200 445, 747 7,794 8,072 133 134 Wisconisn 370, 780 372,622 251,162 254, 055 119, 618 118,567 352, 033 344, 695 2,454 8,092 156 156 West North Central: Minnesota 520,662 497,020 332,903 313, 077 187, 759 183,943 492,758 477, 005 1,251 I,1 281 277 Iowa --- - 277, 804 273,462 190, 793 191,237 87, 011 82, 225 263, 838 258,926 2,089 2,902 286 287 Missouri 506, 762 501, 868 374,800 371, 554 131, 962 130, 314 422, 086 402,150 6,402 19, 655 135 135 North Dakota 74, 254 72, 255 49,830 49,052 24, 424 23, 203 84,545 73,400 745 1,412 142 141 South Dakota 57,882 55,440 35, 804 34,949 22, 078 20, 491 63, 011 57,322 595 1,043 98 98 ' Nebraska 171, 286 165, 275 130,352 126,457 40,934 38, 818 154, 239 149,693 2,745 2,341 154 153 Kansas... 191, 277 190, 567 132,938 134,466 58,339 56.101 191, 646 190,967 2,291 2,390 258 257 South Atlantic: Delaware 22, 683 21, 630 12,402 12,176 10,281 9,454 19,241 18,192 501 703 19 19 Maryland 259,496 244,852 160, 004 157,189 99,492 87, 663 230, 718 212,397 5,315 12,153 84 84 District of Columbia... 126,278 125,286 94,344 92,923 31,934 32,363 123,994 125,471 1,017 169 13 13 Virginia 333,186 324, 083 271, 261 267,069 61,925 57, 014 281, 559 279,587 11,978 6,839 167 167 West Virginia ._ 167,738 167, 817 129,591 130, 241 38,147 37, 576 154,380 154,168 3,406 3,769 122 122 North Carolina 153,920 147,765 129,566 126, 540 24, 354 21, 225 141, 238 132,160 7,201 7,841 76 77 South Carolina 104,64r 101, 201 77,497 76, 791 27,145 24,410 102, 816 98,490 1,102 2,045 65 65 Georgia 220, 462 207, 394 180,913 170, 951 39, 549 36, 443 204,445 192,219 2,364 4,363 83 83 Florida 203,173 212,184 123, 803 133, 814 79,370 78,370 193,205 211,095 6,567 6,117 63 62 East South Central: Kentucky 254,056 247,085 178,373 176, 910 75, 683 70,175 215, 738 207,203 4,913 7,220 141 142 Tennessee 200,038 195, 906 168, 056 165, 031 31, 982: 30,875 181, 378 179,109 4, 297 2,439 104 104 Alabama 182,038 158, 388 139, 788 118, 761 42, 250! 39, 627 176, 752 148,084 2,305 5,344 106 105 Mississippi 74,983 72, 724 54, 635 51, 237 20, 348 21, 487 72, 460 71,83;" 3,714 2,773 36 36 West South Central: Arkansas 79, 358 75, 809 60, 399 58, 027 18, 959 17, 782 74, 960 75,179 2,171 1,087 78 79 Louisiana 94, 320 91,197 81,092 78, 709 13, 228 12, 488 86, 364; 82, 467 3,468 2,100 32 32 Oklahoma 306, 866 304, 501 197, 562 197, 698 109, 304i 106, 803 332,136: 334, 997 5,300 2,728 349 350 Texas 774, 758 735,967 604, 959 575,474 169,799! 160,493 753, 754 706, 507J 6,229 8,313 651 649 Mountain: Montana 70, 205 66, 253 45, 438 42, 597 24, 767i 23, 656 80, 651 71, 829| 211 717 74 74 Idaho 43,055 42, 758 28, 216 28, 847 14, 839^ 13, 911 48, 053! 45, 013! 677 1,104 52 52 Wyoming 32,421 32, 666 21, 388 21, 857 11, 033: 10, 809 36,144 34, 232 245 172 30 30 Colorado 207, 411 198, 249 126, 528 119, 212 80, 883 79, 037 220, 574! 211, 583 2,438 1,646 124 124 New Mexico 23, 53r 23, 248 15, 282 14, 305 8, 255i 8,943 25, 754! 24, 723 306 219 29 29 Arizona.. 20, 864 20, 581 13, 617 13, 609 7, 247J 6,972 24, 275| 23, 561 668 336 15 15 Utah.. 42,145 42, 311 30,073 31, 578 12, 0721 10, 733 38, 372j 37, 745 497 391 20 20 Nevada 15, 685 15, 298 10, 854 10, 508 4, 831; 4,790 15, 262J 14, 972 42G 10 10 Pacific: I W C O a r a e li s g f h o o i n r n n g ia ton— 1, 2 1 6 7 5 1 5 4 2 , , , 2 7 3 1 0 8 8 8 81, 2 4 1 4 7 1 5 0 7 , , , 7 2 3 3 2 0 5 4 5 1,1 1 1 6 5 0 0 6 4 , , , 1 1 2 4 0 1 1 0 51,0 1 1 2 5 0 4 3 3 , , , 5 2 9 0 4 3 3 5 3 45 9 7 2 8 1 , , , 1 0 6 7 0 7 3 8 7 < 1 | 39 9 6 2 1 7 , , . 6 1 8 7 0 0 2 2 1, 2 1 5 6 8 7 2 2 8 , , , 1 7 6 2 4 73 5 9 1 j | 1, 2 1 3 5 7 8 4 7 1 , , , 3 4 9 9 4 5 1 4 2 i | 32 1 , , 3 4 3 4 6 3 2 4 1 22 1 1 , , , 6 4 9 7 7 5 0 8 3 2 1 9 3 1 5 9 0 2 1 9 4 0 5 0 9 Total. 20, 987,435 20, 347,836 14, 375, 565 13, 959, 796 6, 611, 870: 6, 388, 040 19, 268, 247 18, 906, 538 316, 330 368, 042 7,798 7,790 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

JANUARY, 1928 FEDERAL RESERVE BULLETIN 107 TABLE 6— STATE BANKS i—PRINCIPAL RESOURCES AND LIABILITIES ON OCTOBER 10 AND JUNE 30, 1927,2 BY STATES [In thousands of dollars] Loans and investments Deposits Rediscounts i Number (exclusive of bank and bills | of reporting deposits) payable | banks State Total Loans Investments October June October June October June October June O b c e t r o- June | "b- June New England: Maine. ___ 269,910 266,072 124,081 122,125 145,829 143, 947 254,081 250, 785 2,607 3,533 87 New Hampshire 215, 580 215, 580 100, 027 100, 027 115, 553 115, 553 199,407 199,407 88 88 68 V M R C h o e a r o n s m d n sa e e o c c n I h t t s i u c l s a u e n t t d ts . ! 4 9 1 , 5 2 7 9 0 2 7 , , , 6 0 8 3 4 4 2 0 , 1 6 2 345, 4 9 1 7 5 0 7 1 7 1 5 4 , , , , 7 9 9 9 3 6 8 9 5 4 9 6 1, 2 4 1 8 4 1 9 5 5 0 3 3 , , , , 6 0 7 4 6 4 1 9 6 2 6 31, 2 4 1 8 4 8 1 2 7 0 4 3 , , , , 8 4 8 6 6 5 5 3 4 2 4 0 9 2 4 1 2 1 5 0 6 6 9 , , , , 9 1 8 5 9 6 5 8 9 0 2 6 8 4 2 2 9 5 1 1 0 4 7 , , , , 8 3 1 5 8 6 2 1 1 6 5 2 2, 8 4 1 6 6 5 6 1 2 7 9 7 , , , , 8 0 6 8 0 0 4 4 1 2 0 22, 8 4 1 5 5 5 6 6 6 0 8 8 , , , , 2 7 6 0 9 3 0 2 1 3 1 1 10 3 1 , , , 0 1 7 1 0 8 6 7 5 1 3 1 4 , , , 4 1 0 8 8 4 4 1 2 0 2 j i j 2 1 5 2 8 6 9 4 9 7 2 1 5 2 8 6 9 4 9 7 Middle Atlantic: New York 10,135,46510,169,752 7,164, 5077,125,391 2, 970, 9583,044,361 9,973,070 10,011,771 82, 576 50,498.1 590 597 New Jersey 1, 464, 4761,454,212 970,403 966,463 494,073 487,749 !l, 382, 6061,384, 758 21,099 20,698 I 278 277 Pennsylvania 2,914,124 2, 853,84711,661,197 1, 596, 2611, 252, 9271,257,586 2,611,295 2, 565,861 33, 624 46,264 ! 762 772 East North Central: Ohio 1,881, 9441, 839, 9501,457,022 1,426,274 424,922 413, 6761,839,178 1, 788, 5983 20,0143 29,726 725 724 Indiana ._ _ 538, 634 538, 634 ! 437,647 437, 647 100, 987 100, 987 515, 628 515, 628 43, 958 43, 958 832 832 Illinois 298, 2722, 253, 980'1,693,437 1, 649, 572 604,835 604, 408 255, 8372,208,896 13, 585 19, 549 1,348 1,353 Michigan 1,406, 6421, 385, 3771 600,389 603, 282 806,253 782, 0951,372,711 1,348, 636 10, 779 25,072 616 609 Wisconsin 527,440 532, 328 371, 325 379, 434 156,115 152, 894 549, 900 548, 615 3,881 6,330 814 817 West North Central: Minnesota _ 399,076 229, 825 233, 564 167,157 165, 512 402, 658 406, 081 6,748 7,794 893 918 Iowa 514, 758 509,827 489, 533 484, 761 25,225 25,066 4 561, 305 4 559, 917 5,393 5,937 1,084 1,096 Missouri 739, 822 740, 434 519, 838 519, 562 219,984 220, 872 4 759, 640 4 769,473 17, 885 14,313 1,304 1,322 North Dakota 58, 516 56, 790 52.105 50, 828 6, 411 5,962 72, 587 62, 861 1,372 2,274 387 389 South Dakota 67, 355 64, 836 57, 683 56, 032 9,672 81, 567 73,173 1,250 2, 260 320 319 Nebraska 242, 562 239,324 208, 669 212,240 33,893 27,084 274, 618 267,024 4,319 5,323 867 872 Kansas 207, 766 210,112 172,215 177,049 35, 551 33, 063 * 225, 4534 227,210 3,098 4,537 910 923 South Atlantic- Delaware. 113,298 110,027 68.106 66,253 45,192 43, 774 99,139 97, 774 572 576 28 Maryland 543, 649 543, 649 319,222 319,222 224,427 224,427 519, 554 519, 554 5,394 5,394 160 160 Districts of Columbia. ._ 114,991 116,241 87,291 88, 913 27, 700 27, 328 116, 553 116,835 127 785 29 30 Virginia 212,930 212, 930 190, 664 190, 664 22,266 22, 266 177, 609 177, 609 7,077 7,077 330 330 West Virginia 196,999 197, 583 168, 582 169, 679 28,417 27, 904 187, 695 191, 528 5, 762 5,849 216 217 North Carolina 249,838 240, 082 222, 792 215, 905 27,046 24,177 250,224 232,250 11,183 11, 528 389 393 South Carolina 79, 680 79, 524 66,051 67,2fi2 13, 629 12,262 86, 907 78, 066 1,796 4,265 214 216 Georgia 146,430 144, 905 127, 548 126, 994 18,882 17,911 142, 344 128, 518 7,781 9,978 386 388 Florida 181,927 189, 760 134, 581 144, 616 47,346 45,144 190, 080 214,282 10,279 6,925 259 265 East South Central: Kentucky 230,472 230,472 193,611 193, 611 36,861 36,861 206, 602 206,602 4,687 4, 687 461 461 Tennessee 187, 386 187, 386 169,142 169,142 18, 244 18, 244 4 209,144 4 209,144 5,992 5,992 416 416 Alabama. 102,654 113, 587 91, 579 102,906 11, 075 10, 681 4 116, 483 4 111, 677 2,747 6,460 250 251 Mississippi 151, 519 139,805 122,135 111,827 29, 384 27,978 163, 843 146,323 7, 039 4, 548 290 289 West South Central: Arkansas _ 124, 556 123, 044 112,910 112, 502 * 11,646 10, 542 130, 368 124, 637 7,715 7,139 375 376 Louisiana _ 305, 239 306, 744 252,890 253, 230 52, 349 53, 514 290,184 290, 773 19, 699 21, 364 200 200 Oklahoma 67,100 66,135 48, 437 47, 678 18,663 18,457 81, 973 81, 788 975 1,169 344 346 Texas... 216, 853 206,890 : 187, 014 180, 802 29, 839 246, 576 218,802 3,313 7,722 765 767 Mountain: Montana 65, 305 63, 990 41,511 41, 229 23, 794 22, 761 76, 545 69, 269 385 803 135 136 Idaho 32, 019 30, 506 19, 522 18, 976 12, 497 11,530 38, 233 34,496 439 728 92 92 Wyoming 19, 347 19,053 15,671 15, 510 3,676 3, 543 23, 234 21,129 393 720 57 58 Colorado 57, 793 57, 793 40,148 40,148 17, 645 17, 645 63,017 63,017 938 938 173 173 New Mexico 14,889 8, 530 10, 631 5, 956 4, 258 2, 574 16, 717 9,202 309 146 30 30 Arizona .__ 41, 534 41,364 28, 760 28, 925 12, 774 12, 439 4 48,492 4 47, 660 8 844 « 693 31 31. Utah 101,858 98,564 84,126 79,960 17, 732 18, 604 86,172 83, 260 2,088 1,784 87 87 Nevada 20, 593 20, 448 17,448 j 17, 394 3,145 3,054 23,154 23,139 25 25 Pacific: Washington 165, 560 161,496 I 109, 743 107, 688 55, 817 53,808 173, 555 167, 601 1,201 1,984 247 249 Oregon 84,854 82,683 i 57,416 57,683 27, 438 25, 000 93, 875 89,125 1,294 2,445 156 158 California 1, 532, 7121, 712, 3951,134,718 jl, 289, 678 397,994 422,717 1, 518,9191, 718, 729 21,143 18,940 297 304 Total... 33,558,74733,486,401 ;' 23,135,069 '23,071,66510,423,678 10,414,736 132,816,017 32,705,129 418,356 447, 538 18,867 18, 990 1 Includes all State and private banks in the United States except a certain number of nonreporting private banks not under State supervision. 3 Or dates nearest thereto for which figures are available. 3 Includes bonds borrowed. 4 Includes due to banks. 5 Includes all other liabilities. NOTE.—All figures used in the June columns are as of June 30 except as follows: Connecticut, savings banks, Mar. 31; Tennessee, May 18; Missouri, Apr. 12; Kentucky, June 30, 1926. All figures in the October columns are as of Oct. 10 except as follows: Maine, Sept. 24; New Hampshire, June 30; Massachusetts, savings banks, Oct. 31; Rhode Island, State banks, Sept. 7, savings banks, June 30; Connecticut, savings banks, Mar. 31; New York, State banks, Sept. 30, savings banks, June 30; New Jersey, Sept. 30; Pennsylvania, Oct. 5; Ohio, Sept. 12; Indiana, June 30; Wisconsin, Oct. 3; Minnesota, Nov. 7; Missouri, Aug. 25; Nebraska, Sept. 30; Kansas, Sept. 12; Maryland, June 30; Virginia, June 30; North Carolina, Nov. 4; Georgia, Oct. 3; Kentucky, June 30,1926; Tennessee, May 18; Alabama, Oct. 17; Louisiana, Sept. 28; Colorado, June 30; Utah, Sept. 30. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

FEDERAL RESERVE DISTRICTS KANSAS CITY KANS. DALLAS® TEXAS ) i 'BOUNDARIES OF FEDERAL RESERVE DISTRICTS --—BOUNDARIES OF FEDERAL RESERVE BRANCH TERRITORJES ® 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