Federal Reserve Bulletin, 1929-02

FEDERAL EESERVE BULLETIN FEBRUARY, 1929 ISSUED BY THE FEDERAL RESERVE BOARD AT WASHINGTON Reserve Bank Credit and Money Rates Branch Banking Developments Report of the Agent General for Reparation Payments UNITED STATES GOVERNMENT PRINTING OFFICE WASHINGTON : 1929 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

FEDERAL RESERVE BOARD Ex officio members: ROY A. YOUNG, Governor. A. W. MELLON, EDMUND PLATT, Vice Governor. Secretary of the Treasury, Chairman, ADOLPH C. MILLER. CHARLES S. HAMLIN. J. W. POLE, GEORGE R. JAMES. 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. IMLAY, Fiscal Agent. CARL E. PARRY, Assistant Director, Division of Re- J. F. HERSON, search and Statistics. Chief, Division of Examination, and Chief Federal 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) WM. C. POTTER. District No. 3 (PHILADELPHIA) L. L. RUE. District No. 4 (CLEVELAND) HARRIS CREECH. District No. 5 (RICHMOND) JOHN POOLE. District No. 6 (ATLANTA) J. P. BUTLER, Jr. District No. 7 (CHICAGO) _-s^ FRANK O. WETMORE, President. District No. 8 (ST. LOUIS) W. W. SMITH. 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) F. L. LIPMAN. II Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

OFFICERS OF FEDERAL RESERVE BANKS Federal Reserve Bank of— Chairman Governor Deputy governor Cashier Boston Frederic II. Curtiss. W. P. G. Harding W. W. Paddock W. Willett. New York G. W. McGarrah... Geo. L. Harrison J. II. Case J. W. Jones.* L. F. Sailer.. Ray M. Gidney.1 E. R. KenzeL. J. E. Crane.i I A. W. Gilbart W. B. Matteson.i i L. R. Rounds C.H.Coe.i Philadelphia. . R. L. Austin Geo. W. Norris Wm. H. Hutt C. A. Mcllhenny. W. G. McCreedy.2 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 John S. 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. Bachman.2 John H.Blair K. C. Childs.2 J. H. Dillard.2 D. A. Jones.* 0. J. Netterstrom.2 St. Louis. Rolla Wells Wm. McC. Martin. O. M. Attebery.. A. H. Haill.2 F. N. Hall.2 S. F. Gilmore.2 G. O. Hollocher.2 C. A. Schacht.2 Minneapolis.. John R.Mitchell. W. B. Geery. B. V. Moore. Gray Warren. Harry Yaeger Frank C. Dunlop.2 I Kansas City.. M. L. McClure... W. J. Bailey C. A. Worthington J. W. Helm. i Dallas C. C. Walsh Lynn P. Talley R. R. Gilbert Fred Harris. R. B. Coleman W. D. Gentry.1 San Francisco ! Isaac B. Newton _ J. U. Calkins Wm. A. Day Wm. M. Hale. Ira Clerk 1 Assistant deputy governor. 2 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. Earhart. Pittsburgh branch.._ J. C. Nevin. Denver branch J. E. Olson. Richmond: ;l Oklahoma City branch.. . _.. C. E. Daniel. Baltimore branch A. H. Dudley. Dallas: Charlotte branch Hugh Leach. ;; El Paso branch W. 0. Ford. Atlanta: i Houston branch D. P. Reordan. New Orleans branch Marcus Walker. i San Antonio branch M. Crump. Jacksonville branch W. S. McLarin, jr. i San Francisco: Birmingham branch_ A. E.Walker. ! Los Angeles branch W. N. Ambrose. Nashville branch J. B. Fort, jr. j Portland branch _. R. B. West. Chicago: Salt Lake City branch W. L. Partner. Detroit branch W. R. Cation. j Seattle branch C. R. Shaw. St. Louis: Spokane branch D. L. Davis. Louisv ille 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. Ill Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

TABLE OF CONTENTS Page Review of the month—Reserve bank credit, money rates, and speculation 93 Turn of year developments—Reserve bank credit and speculation—Reserve bank credit—Money rates. Branch banking developments, June 30, 1928 97 Earnings and expenses of Federal reserve banks 104, 172 Report of the Agent General for Reparation Payments 126 Expiration of credit to Bank of Italy 96 Member bank reporting service—Further revision of back figures 96 National summary of business conditions 106 Financial, industrial, and commercial statistics: Reserve bank credit, gold stock, money in circulation, and member bank reserve balances 107-109 Analysis of changes in monetary gold stock 108 Discount rates and money rates 110, 111 Member bank credit 112 Bankers' balances 113 Bankers' acceptances and commercial paper outstanding 113 Brokers' loans 114 Commodity prices, security prices, and security issues 115 Production, employment, and trade 116 Industrial production 117, 118 Factory employment and pay rolls 119 Building 120 Trade and distribution 121-124 Bank suspensions and commercial failures 125 Financial statistics for foreign countries: Condition of central banks 148 Condition of commercial banks 150 Discount rates of central banks 150 Money rates 151 Gold exports and imports 152 Foreign exchange rates 153 Price movements 154-156 Law department: Form of trade acceptance; decision of court 157 Amendment to Regulation J 158 Changes in national and State bank membership 159 Fiduciary powers granted to national banks 159 Detailed banking statistics for the United States 160-171 IV Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

FEDERAL RESERVE BULLETIN VOL. 15 FEBRUARY, 1929 No. 2 REVIEW OF THE MONTH Among the factors which have contributed to this result, an important place must be assigned Banking and credit conditions at the turn of to the operation of our credit system and notathe year were influenced chiefly by changes in bly to the steadying influence and moderating the volume of money in circu- policies of the Federal reserve system. Turn of year lati(m and fe the demand f During the last year or more, however, the developments. . functioning of the Federal reserve system has bank credit m connection with encountered interference by reason of the excesyear-end settlements, including the payment sive amount of the country's credit absorbed in of interest and dividends coming due in Decemspeculative security loans. The credit situation ber and January. The seasonal increase in the since the opening of the new year indicates that demand for currency in December, 1928, was some of the factors which occasioned untoward larger than in the preceding year, reflecting developments during the year 1928 are still at greater activity in retail trade, especially in work. The volume of speculative credit is still industrial districts, and a higher level of factory growing. employment and pay-roll disbursements. As a consequence of the increase in the demand for Coming at a time when the country has lost currency, as well as of a growth in the demand some $500,000,000 of gold, the effect of the for member bank reserve balances, the volume great and growing volume of speculative credit of reserve bank credit outstanding increased has already produced some strain, which has rapidly and was at the end of the year at the reflected itself in advances of from 1 to 1 y% per highest level in more than seven years. After cent in the cost of credit for commercial uses. the Christmas holidays, the return flow of cur- The matter is one that concerns every section rency provided funds for a rapid liquidation of of the country and every business interest, as member bank borrowing at reserve banks, and an aggravation of these conditions may be by the end of January reserve bank credit out- expected to have detrimental effects on busistanding, at $1,500,000,000, was in about the ness and may impair its future. same volume as in midsummer of last year. The Federal Keserve Board neither assumes Notwithstanding this liquidation, underlying the right nor has it any disposition to set itself conditions in the money market remained firm, up as an arbiter of security speculation or and money rates, except on call loans, rose values. It is, however, its business to see to it somewhat in January. that the Federal reserve banks function as The United States has during the last six effectively as conditions will permit. When it years experienced a most remarkable run of finds that conditions are arising w^hich obstruct economic activity and produc- Federal reserve banks in the effective discharge Reserve bank tivity. The production, distri- of their function of so managing the credit credit and spec- . r \ facilities of the Federal reserve system as to ulation. bution, and consumption ol accommodate commerce and business, it is its goods have been in unpreceduty to inquire into them and to take such dented volume. The economic system of the measures as may be deemed suitable and country has functioned efficiently and smoothly. 93 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

FEDERAL RESERVE BULLETIN FEBRUARY, 1929 effective in the circumstances to correct them; credit. When such is the case the Federal which, in the immediate situation, means to reserve bank becomes either a contributing or a restrain the use, either directly or indirectly, of sustaining factor in the current volume of specu- Federal reserve credit facilities in aid of the lative security credit. This is not in harmony growth of speculative credit. In this connec- with the intent of the Federal reserve act, nor tion the Federal Reserve Board, under date of is it conducive to the wholesome operation of February 2, addressed a letter to the Federal the banking and credit system of the country." reserve banks, which contains a fuller statement At the end of January, with seasonal inof its position: fluences of the turn of the year no longer op- "The firming tendencies of the money market erative, it becomes possible to which have been in evidence since the beginning Reserve bank , „ „ , of the year—contrary to the usual trend at this credit present a summary of 1 actors season—make it incumbent upon the Federal influencing the position of the reserve banks to give constant and close atten- reserve banks during the preceding year. This tion to the situation in order that no influence is done in the following table, which shows facadverse to the trade and industry of the country tors increasing and decreasing the demand for shall be exercised by the trend of money condi- reserve bank credit, calculated on the basis of tions, beyond what may develop as inevitable. weekly averages of daily figures for the week ending January 26, 1929, and the correspond- "The extraordinary absorption of funds in ing week in 1928: speculative security loans, which has characterized the credit movement during the past year FACTORS INCREASING AND DECREASING DEMAND FOR RESERVE BANK CREDIT, BETWEEN WEEKS ENDING or more, in the judgment of the Federal Reserve JANUARY 28, 1928, AND JANUARY 26, 1929 Board, deserves particular attention lest it [Weekly averages of daily figures. In millions of dollars] become a decisive factor working toward a still further firming of money rates to the prejudice Factors increasing demand for reserve bank credit: Decrease in monetary gold stock 263 of the country's commercial interests. Increase in unexpended capital funds 43 "The resources of the Federal reserve system Increase in nonmember clearing balances 6 are ample for meeting the growth of the coun- Total 312 try's commercial needs for credit, provided they Factors decreasing demand for reserve bank credit: are competently administered and protected Decrease in member bank reserve balances. _ 33 against seepage into uses not contemplated by Increase in Treasury credit 14 Decrease in money in circulation 13 the Federal reserve act. "The Federal reserve act does not, in the Total 60 opinion of the Federal Reserve Board, contem- Net increase in demand for reserve bank credit 252 plate the use of the resources of the Federal reserve banks for the creation or extension of Volume of reserve bank credit outstanding speculative credit. A member bank is not showed an increase of $252,000,000 for the within its reasonable claims for rediscount facil- year covered by the table. This increase was ities at its Federal reserve bank when it borrows caused, disregarding minor items, by a loss of either for the purpose of making speculative $263,000,000 in the stock of monetary gold and loans or for the purpose of maintaining specula- an increase of $43,000,000 in unexpended captive loans. ital funds of the reserve banks, offset in part "The board has no disposition to assume by a decrease of $33,000,000 in member bank authority to interefere with the loan practices of reserve balances. The decrease in member member banks so long as they do not involve bank reserve balances during a year of conthe Federal reserve banks. It has, however, a siderable growth in bank credit was due in part grave responsibility whenever there is evidence to the fact that deposits against which rethat member banks are maintaining speculative serves are required w^ere diminished by gold security loans with the aid of Federal reserve withdrawals, and in part to the fact that such Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

FEBRUARY, 1929 FEDERAL RESERVE BULLETIN 95 growth in deposits as did occur was in time de- represented the net result of a decrease of posits which require only a 3 per cent reserve. $240,000,000 in the reserve banks' holdings of Additions to member bank capital and surplus, United States securities and increases of $360,which furnish loanable funds without increas- 000,000 in discounts for member banks, of ing reserve requirements, were also large during $110,000,000 in holdings of acceptances purthe year. chased in the open market, and of about Demand for currency showed a decrease of $20,000,000 in other forms of reserve bank $13,000,000 for the year, which should be credit. As the result of gold exports and securconsidered in connection with the fact that ity sales during the year, the indebtedness of money in circulation had decreased by a large member banks to the reserve banks at the end amount during the business recession in 1927, of January was in excess of $800,000,000, a and in the early part of 1928 was more than larger amount than at the same season of the $150,000,000 below its level of a year earlier. year at any time since 1922, but representing Demand for currency arising out of active a decrease of nearly $400,000,000 from the high business in the latter part of the year, however, point of discounts reached last July. carried money in circulation close to the level Liquidation of discounts after the turn of the of a year ago. A factor in the additional de- year, as currency flowed in from circulation, mand for reserve bank credit for the year resulted in easier conditions in Money rates. called briefly "unexpended capital funds," and the money market, reflected amounting to $43,000,000, requires some expla- chiefly in a decline of the rate charged for call nation. As is well known, member banks are loans on the stock exchange. This rate, which required to have 3 per cent of their capital and was 12 per cent at the end of December, desurplus invested in the capital stock of the clined during January to 7 per cent. Rates Federal reserve banks. Increases in the capital on time money, however, continued at 73/£-7% of member banks, therefore, make it necessary per cent, open-market rates on commercial for them to take out additional reserve bank paper advanced somewhat toward the end of stock, and since they pay for the stock by drafts the month, and rates on acceptances were on their reserve balances, the process increases advanced twice during January. In view of the demand for reserve bank credit. The the large holdings of acceptances by the reserve reserve banks, furthermore, currently with- banks, including a relatively large volume of draw funds from the market when they collect bills of the longer maturities and in the absence the discount on rediscounted or purchased of liquidation of bills in January, reserve bank paper, or the interest on securities in their buying rates were advanced by one-fourth of 1 portfolio. To the extent that these funds are per cent on January 4 for all bills with maturipaid out again in expenses of operation or for ties of over 30 days and under 120 days, and buildings, or in the form of a franchise tax to on January 21 further advances of rates were the Government, they are returned to the made for bills of nearly all maturities. market, but to the extent that they are retained The course of money rates in January indiand ultimately transferred to surplus, they cates that, aside from seasonal influences, the cause a corresponding increase in the demand factors that caused rates to rise in 1928 confor reserve bank credit. During the year tinued to be operative in the new year. Prinending in January, 1929, the growth in unexcipal among these factors were gold exports pended capital funds was, next to gold exports, and open-market operations of the reserve the largest factor of increase in the demand banks during the year, which were accompanied for reserve bank credit. by a sustained demand for bank credit, and The growth of $250,000,000 in the outstand- resulted in a large volume of member bank ing volume of reserve bank credit for the year indebtedness to the reserve banks. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

96 FEDERAL RESERVE BULLETIN FEBRUARY, 1929 Appointment of Governor and Agent at St. Louis given for 1928 in this BULLETIN differ from the revised figures for 1928, given on pages Mr. D. C. Biggs, who has been governor of 59-91 of the January BULLETIN. Comparable the Federal Reserve Bank of St. Louis since figures for 1927 and earlier years for the items February 5, 1919, resigned on December 31, enumerated, by Federal reserve districts, are 1928. Mr. William McC. Martin, formerly in process of compilation and will be made Federal reserve agent at St. Louis, has been available as soon as possible. elected governor of the bank to succeed Mr. Biggs, effective January 16, 1929. The Federal Reserve Board has designated Mr. Rolla Wells, of Memphis, Tenn., who had Increase in Bill Rates been governor of the St. Louis bank from October 28, 1914, to February 5, 1919, as chairman On January 21, 1929, the buying rates on of the board and Federal reserve agent to prime bankers' acceptances at the Federal succeed Mr. Martin. Reserve Bank of New York were advanced as follows: On maturities of 1 to 15 days, from 4K per cent to 4% per cent; on maturities 16 to 30 days, from 4}£ per cent to 4% per cent; on Reporting Member Banks—Further Revision of maturities 31 to 45 days, from 4% per cent to Certain Back Figures 4% per cent; on maturities 46 to 90 days, from Experience with the revised schedule used 4% per cent to 5 per cent; on maturities 91 to in January, 1929, by member banks in leading 120 days, from 4% per cent to 5 per cent; on cities for making their weekly reports of condi- bills bought under repurchase agreement, from tion (see January BULLETIN, p. 6) has brought 4% per cent to 5 per cent. Buying rates on out the fact that previous reports were in some maturi ies of 121 to 180 days remained uncases inaccurate with regard to (a) the classi- changed at 5 per cent. fication of loans as between loans on securities and "all other'7 loans and (b) the amount reported as due to banks. The figures of these Expiration of Credit to the Bank of Italy items published for January in this BULLETIN (see pp. 112 and 169) are believed to be sub- The Banca d'ltalia has decided not to apply stantially accurate; back figures of the same for a renewal of the 1-year credit of $75,000,000 items for 1928 are given on a comparable basis extended to it in December, 1927, by a group on pages 112 and 113. So far as "loans on of central banks, including the Federal reserve securities," "all other loans/7 and "due to banks, in connection with Italy's stabilization banks" are concerned, therefore, the figures of the lira. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

FEBRUARY, 1929 FEDERAL RESERVE BULLETIN 97 BRANCH BANKING DEVELOPMENTS JUNE 30, 1928 Branch banking developments during the of all classes were operating 826 branch offices, past year as in other years have been largely such offices constituted nearly two-thirds of confined to certain States within what may be the total banking offices in the State. This called the branch banking area, and only in proportion was not approached in any other particular States and urban communities of State. In New York, the State reporting the this area, composed of States which permit second largest number of branches, where 112 banks to establish branch offices, have such out of 1,146 National and State banks were developments assumed considerable propor- operating 607 branches, and in Michigan, the tions. Approximately 3 per cent of the third State in respect to number of branches, National and State banks of the country were where 64 banks were operating 422 branch operating branch offices on June 30, and if the offices, the proportion of branches in the total number of such offices be added to the number of bank offices was approximately one-third. of independent banks, a total of 29,180 banks It amounted to one-fifth or more also in Louisand banking offices is obtained, of which 3,230, iana, Maryland, Massachusetts, Maine, and Ohio, or 11 per cent, were offices operated as branches. but was much lower for other States of thebranch Of the 3,230 branch offices, 1,855, or more than banking area, which in fact includes two States— one-half, were reported by banks located in West Virginia and Wyoming—in which no three States—California, New York, and Michi- branches whatever were in operation. This gan—and over 1,500 by banks located in four area is defined in the following grouping of cities of these three States—San Francisco, States with reference to provisions of State laws Los Angeles, New York, and Detroit. In the under which State banking institutions may or State of California, where 63 out of 496 banks may not establish branch offices. STATES PERMITTING, RESTRICTING, AND PROHIBITING BRANCH BANKING States which permit the establishment of States which prohibit the establishment of branches—the "branch banking area" branches States which make no provision by law—no branches In and outside the home Only in the home city Operation of existing No branches in opera- in operation 1 city (or county) branches permitted ation i Arizona. Kentucky. Alabama. Colorado. Kansas. j California. Louisiana. Arkansas. Connecticut. New Hampshire. ; Delaware. Maine. 1 Georgia. Florida. Vermont. ! District of Columbia. Massachusetts. Indiana. Idaho. North Dakota. Maryland. Michigan. Minnesota. Illinois. South Dakota. North Carolina. Mississippi. Nebraska. Iowa. Oklahoma. Rhode Island. New Jersey. Washington. Missouri. South Carolina. New York. Wisconsin. Montana. Virginia. Ohio.2 Nevada. West Virginia.* Oregon. New Mexico. Wyoming.3 Pennsylvania. Texas. Tennessee. Utah. 1 Home county and adjoining counties. 3 No branches in operation. 2 Home city and territory contiguous thereto. In the period which has elapsed since the approved prohibiting the establishment of new passage of the McFadden-Pepper Act of Feb- branches, the continued operation of existing ruary 25, 1927, several States have enacted branches being permitted. In June under legislation expressly eliminating them from this permission 19 Georgia banks were operatthe branch-banking area. Acts prohibiting the ing 37 branches. The New Jersey law perestablishment of branches were approved in mitting State banks to establish branches Montana on March 8, 1927, in Nebraska on subject to the same population restrictions as April 1, 1927, and in Iowa on April 18, are imposed upon national banks by the act 1927. With exception of two branches of of February 25, was approved in March, 1927. national banks in Nebraska, however, no A Pennsylvania act of April 27, 1927, permitted branches w^ere being operated in these States continuance of operation of branches estabby any banks, so that the legislation was for- lished prior to March 1, 1927, and prohibited mal and precautionary rather than restrictive the establishment of new branches except in of actual branch-banking developments. In those cities in which national banks were Georgia, also, on August 25, 1927, an act was operating branches prior to this date. In 31379—29 2 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

98 FEDERAL RESERVE BULLETIN FEBRUARY, 1929 Massachusetts a law limiting the number of in 10, decreased in 2, and increased in 16 States branches to one in towns of less than 50,000 and in the District of Columbia. Increase in and to two in towns of 50,000 to 100,000, and the number of banks operating branches and permitting the establishment of branches in larger in the number of branch offices operated is towns subject to approval of the State banking necessarily restricted to the 22 States and the department was approvedMay 4,1928. Finally, District of Columbia which permit the estabit may be noted that the Kentucky State Court lishment of branches either freely or under of Appeals rendered a decision in 1927 to the limitations with respect to the proposed locaeffect that a State bank may under the Ken- tion of the branch, the population of cities, tucky law establish home-city branches. the capital resources of parent banks, or the For the several areas indicated by the fore- number of branches already being operated. going grouping of States, branch-banking For these States as a group, the increase over developments and changes over the period of the period in the number of banks operating 16 months from February 25, 1927, to June branches amounted to 58, and in the number 30, 1928, are summarized in the accompanying of branch offices to 331. Compilations, by table. State totals show that in 12 of the 28 States, show that the largest increases in States which permit the establishment of number of branch offices were those for New branches or the continuance in operation of York (90, all home-city offices), California existing branches, there was no change over (64), and New Jersey (61). Only inconthe period covered in the number of banks siderable changes are shown for the 8 States operating branches, decreases being shown for which, although they have prohibited the 5 and increases for 11 of these States. The establishment of branches, permit the connumber of branch offices remained unchanged tinued operation of existing branches. BANKS OPERATING BRANCHES AND NUMBER OF BRANCHES WITH INCREASE, FEBRUARY 25, 1927, TO JUNE ,30, 1928 Number of banks Number of branches June June 30, 1928 30, 1928 Increase Feb. 25,1927-June 30,1928 Area as classified according to State law June Branches 30, 1928, and class of bank Total O br p a e n r c a h ti e n s g Total H c o it m y e Outside o b p r B e a a r n a n c t k h in s e g s Total H c o it m y e Outside All States: Total 25,950 835 3,230 2,214 1,016 56 330 285 45 National— . 7,685 169 941 603 338 24 551 241 310 State member 1,244 186 1,220 1,059 161 —3 —340 7 —347 Nonmember 17,021 480 1,069 552 517 35 119 37 82 States which permit state-wide branch banking: Total 2,530 228 1,215 492 723 2 95 61 34 National 811 41 527 213 314 3 422 122 300 State member 83 25 240 125 115 —5 —375 —58 —317 1,636 162 448 154 294 4 48 -3 51 States which permit establishment of home-city branches only: Total _ 7,613 562 1,924" 1,683 241 56 236 223 13 National 2,808 117 384 369 15 19 118 116 2 State member 593 151 963 923 40 4 45 66 —21 Nonmember... 4,212 294 577 391 186 33 73 41 32 States which prohibit establishment of branches: (a) Permit operation of existing branches- Total 5,633 45 91 39 52 -2 -1 1 o National 1,197 11 30 21 9 2 11 3 8 State member 181 10 17 11 6 -2 -10 —1 -9 Nonmember __ 4,255 24 44 7 37 -2 o -1 —1 (b) Have no branches in operation— Total _ 7,263 National _ 1,952 State member _ 368 Nonmember _ 4,943 States which have made no provision by law: Total 2,911 National 917 i State member 19 Nonm»mber _ 1,975 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

FEBRUARY, 1929 FEDERAL RESERVE BULLETIN 99 Of the banks which were operating branch system represented the absorption late in offices on February 25, 1927, 10 discontinued December of a national bank'with 35 branches all such offices during the period of 16 months by a nonmember bank operating at the time to June 30, 1928, 4 suspended operations on about 100 branches. Earlier procedures in account of financial difficulties, and 39 were December had included the taking over by the merged with other banks. In the same period nonmember bank of some 35 National and 109 banks initiated branch banking, giving a State banks with their branches, and the net increase, as shown in the table, of 56 for establishment of several branches de novo as the number of banks operating branches. The branches. increase of 330 in the number of branches As indicating the extent to which branch operated also is a net increase—covering 144 banking has developed by way of rendering cases of independent banks acquired and banking service in country districts, it may converted into branch offices, 258 cases of be noted that of the 835 banks operating offices established de novo as branches, and 72 branches on June 30, 316 were located in cities cases of discontinuance of branches. Of the of less than 25,000 population, and that of the 3,230 branches in operation on June 30, 2,206 1,016 branches located outside the home were offices which had been originally estab- city of the parent bank on this date, 700, or lished de novo as branches and 847 represented more than two-thirds, were located in places conversions of independent banks into branches, of less than 5,000 population—572 of these the method of original establishment being un- offices being located in places of less than reported in 177 cases. The decrease in this 2,500. period of 340 shown for the number of branches The number of banks operating branches in operated by State member banks, and the in- and outside the home city, the number operatcrease of 551 in the number of national bank ing specified number of branches, the maximum branches reflects largely the merger and nation- size of branch systems, the location of parent alization of State branch systems, and the banks in cities of specified sizes, the number of development of branch banking under national home-city and of outside branches, and the charters in California. In this State the number number of branches established de novo as of State member and nonmember banks operat- branches and by conversion of independent ing branches decreased by 10 and the number banks into branches are given in the accomof their branches by 352, while the number of panying table for the several dates for which national banks operating branches increased by 1 data have been compiled by the Federal and the number of their branches by 416. The Reserve Board. Although the development of effect upon totals for the country as a whole of branch banking has been restricted to certain changes in the classification and number of Cali- States, it may be seen on reference to the fornia banks may be seen in the table following. table that it has been within these States as a whole fairly continuous over the period covered, and that the rate of increase in num- CHANGES IN CALIFORNIA AND IN OTHER STATES COMBINED ber of branch offices, for example, during the period following enactment of the amending Increase Feb. 25, 1927- law of February 25, 1927, has not been ma- Class of bank June 30, 1928 terially different from the rate maintained in Total Cali- Other the preceding period. Under the provisions fornia States Number of banks operating branches: of the Federal act national banks have been Total 56 -9 65 permitted to replace their limited-power " addi- N St a a t t i e o n m a e l mber -3 24 -6 1 23 3 tional offices"—which they had established Nonmember 35 -4 39 under an administrative ruling of the comp- Number of branches: Total 330 64 266 troller without express legislative authority— National 551 416 135 with full-power branches expressly authorized State member —340 —381 41 Nonmember. . 119 29 90 by statutory provisions, and have been enabled to extend their urban systems of branch offices The branch banking situation in California, in certain communities. As regards the de- Jt should be noted, has been materially modi- velopment of branch systems by member State fied by merger procedures consummated in banks, however, the provisions of the act have November and December of 1928, resulting in been at least potentially restrictive in those the building up of a state-wide nonmember States which permit State institutions to esbranch system which at the end of the year tablish branches freely without limitation as embraced approximately 140 branches. This to number or location of branches. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

100 FEDERAL RESERVE BULLETIN FEBRUARY, 1929 SUMMARY TOTALS COVERING BRANCH BANKING DE- larger number of branches, were country banks VELOPMENTS—1924^1928 operating offices in near-by communities. This has been true throughout the period for which data are available. Nevertheless, an important June, June, Feb. 25, Dec, Dec, June, 1928 1927 1927 1926 1925 1924 development of branch banking during the past two years, in so far as this development can be Number of banks 25,950 26, 781 26,973 27,377 28, 257 measured by growth in number of branches Number operating and in size of individual systems, has taken branches, total 835 792 779 796 785 714 place in the larger urban centers; or, in Cali- National ... 169 152 145 146 132 108 State member 186 186 189 194 196 191 fornia, through the agency of banks located in Nonmember 480 454 445 456 457 415 such centers. Outside of California the more Number operating considerable development of branch systems branches: Only in home city.... 526 490 476 j 481 466 391 with head offices in urban centers has been in Only outside home city..- 262 258 261 I 270 264 283 States which have in the past restricted such In and outside home systems to the urban community of the parent city 47 44 42 | 45 55 40 bank, and in some States, as in New York, to Number operating: 1 branch. 469 446 446 456 446 376 the larger urban communities. In California 2 branches 150 137 127 129 135 129 banks have not been so restricted by State law, 3 to 5 branches. 126 125 124 123 117 6 to 10 branches 35 33 35 38 39 176 although as regards member banks in this N O o v t e r c l 1 a 0 s s b if r i a e n d ches 55 51 47 50 48 2 33 State as in all other States which permit branch banking, the growth of branch systems has Maximum size of branch systems 3 289 284 278 100 been restricted under the act of February 25, Number of parent banks 1927, to the establishment of home-city in cities of— branches and to such developments as may Less than 25,000 316 288 ! 300 25,000 to 50,000 57 i 61 result from merger or absorption of branches 50,000 to 100,000 81 70 I 65 108 in existence on that date. For those cities Over 100,000 372 377 I 353 284 Not classified 2 33 which have shown the more considerable de- Number of branches, velopment of branch banking some detail is tot O al f national banks 3,2 9 3 41 0 2,9 7 9 2 4 2 2,9 3 0 9 0 0 2,7 4 8 0 1 6 2,6 33 4 332 2 2 i 2,2 22 9 44 3 88 given in the following table covering the num- Of State member ber of banks operating branch offices, the banks 1,220 1,301 1,560 1,366 1,277 1,137 Of nonmember banks 1,069 971 950 1,009 1,033 908 number and location of such offices, and the Number of branches lo- size of individual branch systems in December, cated: 1926, and in June, 1928. Although the size of In the home city 2,214 2,022 I 1,929 1,940 1,810 1,508 Outside the home branch systems as shown for these cities, and city 1,016 972 ; 971 841 832 785 the number of branches operated has generally Number of branches es- increased, the number of parent banks has tablished: j De novo as branches. 2,206 2,055 I 1,992 1,962 generally either fallen off or remained unchanged, By conversion of independent banks... 847 757 i 732 645 an increase being shown in only two of the No report 177 182 ; 176 174 cities. One San Francisco bank was operating 289 branches in June, and two other California i March, 1927. 8 Mutual savings and private banks. banks, one in San Francisco and one in Los * Maximum number of branches operated in one system. Angeles, were operating each 97 branches. One A large proportion of the banks operating Detroit bank was operating 93 and one New branch offices on June 30 were operating indi- York City bank 66 branches. vidually only one or two branches. Many of Summary totals for States are given in two these banks, as well as of banks operating a tables following. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

101 FEBRUARY, 1929 FEDERAL RESERVE BULLETIN URBAN BRANCH SYSTEMS Number of banks operating branches City and date (cities ranged by total Number operating number of branches in June, 1928) Total 1 2 3-5 branch branches branches New York: June, 1928 76 32 14 11 December, 1926 77 32 13 14 San Francisco: June, 1928 8 1 1 2 December, 1926 14 2 2 4 Detroit: June, 1928 12 1 1 1 December, 1926 16 2 2 1 Los Angeles: June, 1928... 10 3 December, 1926 13 4 Philadelphia: June, 1928 53 28 13 12 December, 1926 53 35 9 9 Cleveland: June, 1928 13 9 1 December, 1926 9 5 1 Buffalo: June, 1928 6 2 December, 1926 6 1 2 Baltimore: June, 1928 14 3 5 3 December, 1926 16 4 Boston: June, 1928 18 10 3 December, 1926 18 12 1 Cincinnati: June, 1928 12 2 3 December, 1926 11 2 2 New Orleans: June, 1928 5 December, 1926. 5 Toledo: June, 1928 7 1 December, 1926 7 1 1 Grand Rapids: June, 1928 3 December, 1926 3 Nashville: June, 1928 6 2 December, 1926 6 2 1 CM CM CN Number of branches Maximum size of system Total Home Outside 6-10 Over 10 city branches branches 14 66 488 488 7 11 62 409 409 1 3 289 458 104 354 2 4 100 247 75 172 9 93 297 297 1 10 46 284 284 5 97 281 201 80 2 7 95 307 214 93 5 101 101 4 85 86 1 2 52 94 74 20 1 2 52 88 69 19 2 2 33 66 66 1 1 32 61 60 1 3 16 65 61 4 1 2 14 57 1 55 2 1 2 11 53 53 2 1 11 50 ! 4 1 I 12 52 52 5 11 46 44 2 1 3 1 20 48 48 1| 3 1 20 46 46 3 2 1 11 42 42 2 i 3 10 38 37 1 1 2 15 36 36 : 1 2 15 36 36 i 2 12 31 19 12 i 2 12 30 18 12 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

102 FEDERAL RESERVE BULLETIN FEBRUARY, 192S BANKS OPERATING DOMESTIC BRANCHES AND NUMBER OP BRANCHES, BY STATES, JUNE 30, 1928 Banks operating branches Branches Operated by— Number State of banks Total National m S e t m at b e er m N em on b - er Total National banks Total 25,950 835 169 186 480 3,230 941 States which permit Statewide branch banking: Arizona. . 45 8 2 6 23 California 496 63 14 7 42 826 478 Delaware 48 5 1 4 13 District of Columbia 42 12 6 6 22 10 Maryland 238 32 3 2 27 120 7 North Carolina 451 43 4 5 34 79 , 6 Rhode Island 37 11 2 4 5 33 2 South Carolina — 262 15 3 2 10 36 8 Virginia 495 39 9 2 28 63 16 West Virginia 330 Wyoming 86 States which permit establishment of home-city branches only: Kentucky 586 8 4 1 3 25 15 Louisiana 229 43 1 7 35 111 8 Maine 1 _.. 140 22 2 20 54 M assachusetts 446 81 16 15 50 141 52 Michigan __ _. 748 64 9 32 23 422 48 Mississippi 325 11 1 10 25 1 New Jersey 567 50 17 18 15 82 25 New York 1,146 112 35 36 41 607 179 Ohio2 1,048 59 7 23 29 250 7 Oregon 243 1 1 1 1 Pennsylvania 1,628 84 19 16 49 145 29 Tennessee.. .. .. 507 27 7 1 19 61 19 States which prohibit establishment of branches—Oper ation of existing branches permitted: Alabama 357 1 4 19 Arkansas 437 2 2 3 Georgia 454 19 4 3 12 37 16 Indiana 1,028 4 1 1 2 9 2 Minnesota 1 134 2 2 6 a Nebraska 904 2 2 2 W W i a s s c h o i n n s g i t n on 9 3 6 5 7 2 4 1 1 4 1 2 2 6 9 Other States 10,174 7 ot ot ot Located in- M b S e a t m n a k t b e s er m b N e a m o n n k b - s er H c o it m y e O h u c o i t m t s y id e e 1,220 1,069 2,214 1,016 12 11 23 163 185 340 486 1 12 1 12 12 22 21 92 64 56 10 63 11 68 25 6 16 17 2 26 7 29 6 41 31 32 7 3 24 1 42 61 54 57 7 47 5 49 27 62 122 19 315 59 418 4 24 1 24 33 24 71 11 331 97 606 1 168 75 219 31 1 31 85 137 8 2 40 26 35 1 18 19 3 3 II 17 12 25 2 8 1 6 2 2 2 3 3 5 2 8 1 1 * Establishment of branches in home county and counties adjoining permitted. 3 Establishment of branches in home city and territory contiguous thereto permitted. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

FEBRUARY, 1929 FEDERAL RESERVE BULLETIN 103 INCREASE IN NUMBER OF BANKS OPERATING DOMESTIC BRANCHES AND IN NUMBER OF BRANCHES, BY STATES, FEBRUARY 25, 1927, TO JUNE 30, 1928 Increase in number of banks operating Increase in number of branches branches Operated by— Located in— State Total National m S em tat b e er m N em on b - er Total 1 N ba a n ti k o s nal: m b S e a t m n a k t b e s er m b N e a m o n n k b - s er 1 H c o it m y e O h u c o i t m s ty id e e Total 56 i 24 -3 35 330 1 551 -340 119 285 45 States which permit state-wide branch banking: Arizona California.. . . -9 1 -6 -4 64 416 -381 29 43 21 Delaware — 1 -1 — 1 District of Columbia 2 1 1 2 I 1 2 Maryland o -1 -2 7 1 2 4 6 1 North Carolina- 3 1 1 5 2 1 3 2 Rhode Island 4 3 1 4 South Carolina - 1 11 1 10 1 10 Virginia 2 2 3 1 2 1 West Virginia Wyoming States which permit establishment of home city branches only: Kentucky 3 i 2 12 8 2 2 11 1 Louisiana 2 — 1 3 5 -4 9 5 Maine —2 —2 -5 Massachusetts 2 I — 1 4 8 3 -1 6 5 3 Michigan —4 —3 — 1 21 27 -10 20 1 Mississippi — 1 1 -12 12 New Jersey 36 14 12 10 61 21 25 15 61 New York 6 7 -3 2 90 46 39 5 90 Ohio 6 1 1 4 19 1 9 9 19 Pennsylvania 2 -1 3 14 2 2 10 14 Tennessee 5 1 4 6 10 -4 3 3 States which prohibit establishment of k branches — operation of existing branches permitted: Alabama Arkansas Georgia —2 1 —2 — 1 -2 9 -16 -1 -2 Indiana 1 i 1 2 -1 1 Minnesota Nebraska i Washington Wisconsin : i ! Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

104 FEDERAL RESERVE BULLETIN FEBRUARY, 1929 EARNINGS AND EXPENSES OF FEDERAL RESERVE BANKS During 1928 total earnings of the Federal the average yield of bills discounted during the reserve banks, at $64,053,000, were more than year. Earnings from this source amounted to $21,000,000 larger than the year before. Since $38,334,000 in 1928 as against $17,011,000 there was little change in total current expenses, in 1927. Acceptance holdings were likewise current net earnings, amounting to $37,148,000, larger in 1928 and were purchased at rates snowed a corresponding increase for the year. which yielded a return of 3.97 per cent as From these earnings deductions amounting to against 3.49 per cent the year before, so that $5,598,000 were authorized, chiefly for depre- earnings on this class of earning assets, at ciation. After other minor adjustments there $13,021,000, showed an increase of nearly remained $32,122,000 of net earnings available $4,000,000 over 1927. Although the average for distribution by payment of dividends, return on securities was somewhat higher in transfers to surplus, and payment of franchise 1928 than the year before, the volume of these tax to the Government. This figure for net securities held by the banks, and in conseearnings is $19,074,000 larger than the corre- quence the earnings derived from them, were sponding figure for 1927. Earnings, expenses, smaller. The average holdings of discounted and distribution of earnings for all reserve bills, acceptances, securities, and other bills banks combined are summarized in the accom- and securities, together with average rates and panying table for 1927 and 1928. amounts earned on each, are shown in the accompanying table. EABNINGS AND EXPENSES OF FEDERAL RESERVE BANKS DURING 1927 AND 1928 EARNINGS ON BILLS AND SECURITIES [In thousands of dollars] fin thousands of dollars] Increase Bills and securities held by all Federal reserve or banks 1928 1927 decrease (-) 1928 T C o u t r a r l e n e t a r e n x i p n e g n s ses 2 64 6 , , 9 0 0 5 5 3 4 2 3 7 , , 0 5 2 1 4 8 21 -6 ,0 1 2 3 9 Total co B d u i i n s l - l t s ed o B p il e l n s I j I s U S m e t n c a e u i t t n e r e i t s d - s o e b a A t c i n h l u l d l e l r s r i- Current net earnings 37,148 15,506 21,642 market ties ties Additions (withdrawals from reserves, etc.) 572 524 48 Daily average hold- Deductions (for reserves, etc.) _. 5, 598 2,982 2,616 ings: 1923 1,150, 570 738,114 226, 548 185,823 i 85 Net deductions 5,026 2,458 2,568 1924 950, 317 374, 834 172,428 401,365 ! 1,690 1925.. 1,139, 507 481, 515 287,329 358,962 ! 11,701 Net earnings available for distri- 1926. 1, 209,309 570, 613 281,386 349,790 i 7,520 bution 32,122 13,048 19, 074 1927 1,124, 538 442, 287 263,093 417,480 | 1,678 1928 1,467, 371 839,942 327, 806 297,499 i 2,124 Dividends paid 8,458 7,755 703 Average rate of earn- Transferred to surplus 21,079 5,044 16,035 ings (per cent): Franchise tax paid to U. S. Government. 2,585 250 2,335 1923 4.33 4.46 4.14 4.01 4.50 1924 3.83 4.25 3.31 3.67 3.61 1925 . 3.51 3.67 3.17 3.56 3.59 1926 3.76 3.95 3.55 3.60 4.21 Increase during the year in the aggregate 1927 3.60 3.83 3.49 3.41 3.88 amount of the reserve banks7 total earnings 1928 4.24 4.56 3.97 3.64 4.33 Earnings: from $43,000,000 to $64,000,000 is to be 1923 49, 775 32, 956 9,371 7,444 4 1924 36,426 15,943 5,710 14, 712 61 accounted for by the fact that their combined 1925 _ 39, 986 17,680 9,104 12, 783 419 holdings of bills and securities were, on the 1 1 9 9 2 2 6 7 4 4 5 0 , , 4 4 6 8 0 2 2 1 2 7 , , 5 0 5 1 2 1 1 9 0 , , 2 0 0 0 7 3 1 1 2 4 , , 2 5 0 8 6 9 31 5 6 8 average, about 30 per cent larger in 1928 than 1928.. 62, 275 38, 334 13, 021 10,828 92 in 1927, and bore an average rate of return of i 4.24 per cent as compared with 3.60 per cent Total operating expenses of the Federal the year before, owing to the higher levels of reserve banks in 1928 were $26,905,000, which discount and open-market rates prevailing in was somewhat less than the total for the year 1928. As a result of firmer credit conditions before, notwithstanding the fact that the during the year the average volume of member volume of many classes of the banks7 operations bank borrowing was almost twice as large as in were considerably larger in 1928 than in 1927. 1927, and successive increases in the discount Salaries paid to officers aggregated $2,555,000 rates of the reserve banks were reflected in an for the year, and to clerical staff and others increase from 3.83 per cent to 4.56 per cent in $14,505,000, making a total expenditure of Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

105 FEBRUARY, 1929 FEDERAL RESERVE BULLETIN $17,060,000 for all salaries and wages in 1928,beginning, notwithstanding large transfers to compared with $16,784,000 in the preceding surplus, owing to increase in their capital stock. year. Other major expenditures included As a result of growth during the year in the $806,000 covering the cost of printing, issuing, capital and surplus of member banks, and the and redeeming of Federal reserve notes, which consequent increase in the amount of capital compares with $1,845,000 in 1927; taxes on stock of the reserve banks which member banks banking houses aggregating $1,427,000, as are required to hold, the subscribed stock of against $1,402,000 in 1927, and telegraphic all reserve banks combined was increased by and postage charges amounting to $2,345,000, $28,910,000 to $293,870,000 by the end of the as against $2,306,000 in 1927. year (one half of which is paid up). The aggre- In 1928 net earnings of each of the Federal gate surplus of all reserve banks at the end of reserve banks was more than sufficient to cover 1928 was $254,398,000, an increase of $21,079,dividend payments to member banks at the 000 for the year. required rate of 6 per cent on the paid-up Gross and net earnings and the distribution capital stock of the reserve banks. The aggre- of net earnings are shown in the following table gate amount of these payments was $8,458,000 for all reserve banks combined since the in 1928 and $7,755,000 in 1927. For thebeginning of the Federal reserve system; more further distribution of net earnings it is pro- detailed figures for 1928 are shown on pages 172 vided by the Federal reserve act that each and 173 of this issue of the BULLETIN. reserve bank shall transfer to its surplus account the entire balance of such earnings DISPOSITION OF FEDERAL RESERVE BANK EARNINGS, 1914-1928 as remain after payment of dividends until surplus shall equal 100 per cent of its sub- [In thousands of dollars] scribed capital, and that thereafter 10 per cent Franof its earnings in excess of dividend require- Trans- c t h a i x se ( P + ro ) f o it r ments shall be transferred to surplus and the Gross Net d D e i n v d i- s t f o e r s re u d r- p U ai . d S . to l c o a s r s r ie (- d ) balance be paid to the Treasury as a franchise paid plus Gov- fortax. Under these provisions $21,079,000 was ern- ward \ ment transferred to surplus by all banks combined, and an aggregate amount of $2,585,000 was A.11 Federal reserve paid to the Treasury by the Richmond, Atlanta, banks: St. Louis, Minneapolis, Kansas City, and 1 19 9 1 1 6 4-15 2 5 , ,2 1 1 7 8 3 — 2, 1 7 4 5 2 1 1 2 7 1 4 7 3 +1 - , 3 0 5 0 9 8 Dallas banks. The amount paid to the Treas- 1917 16,128 9,580 6,802 1,134 1,134 +510 1918 67,584 52, 716 5,541 48,334 -1,159 ury was larger than for any preceding year since 1923. The surplus accounts of the Boston, 1919 102,381 78,368 5,012 70, 652 2,704 1920 181,297 149,295 5,654 82,916 60, 725 New York, Philadelphia, Cleveland, Chicago, 1921 . . 122,866 82,087 6,120 15,993 59, 974 1922 50,499 16,498 6,307 -660 10,851 and San Francisco banks were less than the amounts of their subscribed capital stock even 1923 _ 50, 709 12, 711 6,553 2,545 3,613 1924 38,340 3,718 6,682 -3,078 114 after transfers to surplus at the end of 1928; in 1925 41,801 9,449 6,916 2,474 59 1926 47,600 16, 612 7,329 8,465 818 fact the excess of the aggregate subscribed 1927.. _. 43,024 13,048 7,755 5,044 249 capital of these banks over their aggregate 1928 . 64,053 32. 122 8,458 21,079 2,585 surplus was larger at the end of 1928 than at the Total.... 833,673 478,813 81,089 254, 898 142, 826 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

106 FEDERAL RESERVE BULLETIN FEBRUARY, 1929 NATIONAL SUMMARY OF BUSINESS CONDITIONS Industry and trade continued active in was one less trading day this year. Increases December, and the general level of prices over a year ago were reported for the New remained unchanged. Banking and credit York and Philadelphia districts, while subconditions at the turn of the year were in- stantial decreases occurred in Atlanta and fluenced chiefly by seasonal changes in the Minneapolis. Distribution at wholesale dedemand for currency and by requirements for clined seasonally and was smaller than a year end-of-year financial settlements. ago. Production.—Output of manufactures de- Freight-car loadings in December and the creased in December, but the decline was less first half of January showed a slightly larger than is usual during the month, and the board's than usual seasonal reduction, but as in earlier index was slightly higher than in November months, were above a year ago. and above the level of a year ago. Smaller Prices.—The general level of wholesale prices than usual seasonal reductions were reported as measured by the index of the United States in the daily average output of steel, pig iron, Bureau of Labor Statistics remained approxiautomobiles, copper, cement, silk, and flour, mately the same during December as in the while cotton and wool textiles declined consid- preceding month. Average prices of iron and erably. Meat packing increased in December, steel, copper, and building materials continued reflecting a larger output of pork products, to advance slowly, and prices of farm products, though beef and mutton production was after declining during October and November, smaller. Volume of factory employment and also rose in December, reflecting higher average pay rolls was larger than at this season of last prices for raw cotton, oats, rye, and some grades year. Production of minerals was in some- of wheat, offset in part by lower prices for corn what smaller volume in December than in and cattle. In the first three weeks of January November, reflecting chiefly a large reduction the price of rubber advanced sharply, and in the output of bituminous and anthracite wheat, corn, potatoes, and flour also increased, coal. Production of copper and zinc ore on while silk and sugar decreased somewhat, and a daily average basis was slightly smaller, hides reached the lowest level in more than a while petroleum output increased. Prelimi- year. nary reports for the first half of January Bank credit.—Banking and credit conditions indicate a steady increase in the output of in January were influenced chiefly by the seapetroleum and greater activity in the steel, sonal decline in the volume of money in circuautomobile, coal, and lumber industries follow- lation. At the reserve banks the return flow ing the temporary lull during the inventory of currency from circulation resulted in a liquiperiod at the end of the year. dation of member bank borrowing and small Building contracts awarded in 37 Eastern declines in reserve bank holdings of acceptances States declined sharply during December, as in and of United States securities. Total bills the preceding month, and were smaller than in and securities showed a decline of about any December since 1924. The decline from $450,000,000 for the period from December 26 November was attributable largely to decreases to January 23 and were in about the same in awards for residential building and public volume as in midsummer of last year. works and utilities. By districts, the largest At member banks there was an increase in declines over the preceding month were in the the total volume of loans at the turn of the Cleveland, Chicago, Boston, and Richmond year, due chiefly to year-end financial settle- Federal reserve districts, while increases were ments and the temporary withdrawal of funds reported in the New York, Philadelphia, and loaned by corporations in the New York mar- Atlanta districts. ket. In January deposits and loans of mem- Trade.—Department-store trade showed ber banks declined to approximately the level greater activity in December than in the pre- of the early part of December. ceding month, after allowance is made for the In the money market, rates on call loans customary holiday increase. Total sales for declined sharply in January, while rates on the month were the largest on record, exceeding time loans on securities remained firm and rates December, 1927, by 1 per cent, although there on acceptances advanced. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

107 FEDERAL RESERVE BULLETIN FEBRUARY, 1929 RESERVE BANK CREDIT RESERVE BANK CREDIT OUTSTANDING AND PRINCIPAL FACTORS IN CHANGES MILLIONS OF DOLLARS NUmOHS OF DOLLARS 5^001 i 1 ' 1 ' 1 1 1 ' 1 ' 1 ' 1 'I ' I ' I 5U00 5200 Member Bank Reserve Balances 1925 1926 1927 1928 1929 Based on weekly averages of daily figures; latest figures are for week ending January 26 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

108 FEDERAL RESERVE BULLETIN FEBRUARY, 1929 RESERVE BANK CREDIT OUTSTANDING AND PRINCIPAL FACTORS IN CHANGES [Averagesof daily figures. In millions of dollars] Reserve bank credit outstanding i Bills and securities held by Federal reserve banks Member Month or week Monetary Money in bank gold stock 1 circulation reserve Total Bills dis- balances volume 1 Total 2 co m u b e n a m t n e k b d s e f r or bo B u il g ls ht se U S c n t u a i r t t i e e ti s d es 1928—January. __ 1,388 1,350 465 373 512 4,377 4,785 2,426 February 1,264 1,237 471 360 406 4,373 4,709 2,368 March 1,295 1,272 513 343 415 4,335 4,710 2,365 April 1,405 1,371 661 358 351 4,287 4,730 2,396 May 1, 472 1,442 836 349 257 4,207 4,722 2,388 June 1, 531 i 1,495 1,019 244 232 4,119 4,736 2. 355 July 1,531 1,488 1,090 185 213 4,113 4,746 2,324 August 1,485 1,449 1,061 178 210 4,118 4,743 2,274 September 1,581 I 1,534 1,064 226 240 4,125 4,804 2,314 October.- 1, 622 1,584 975 368 237 4,133 4,836 2,332 November 1,653 1,610 897 471 238 4,151 4,860 2,352 December 1,824 1,766 1,013 483 263 4,142 5,008 2,367 1929—January 1,613 1,570 859 473 229 4,115 4,748 2,387 Week ending- Dec. 29, 1928 1,882 1,821 1,090 491 230 4,148 5,074 2,366 Jan. 5, 1929 1,832 1,787 1,048 491 239 4,126 4,932 2,429 Jan. 12, 1929.- 1,676 1,629 889 484 246 4,111 4,793 2,402 Jan. 19,1929 1,593 1,540 809 481 240 4,110 4,722 2,387 Jan. 26,1929 1,509 1,471 791 462 209 4,117 4,677 2,358 Increase or decrease of week ending Jan. 26, compared with week ending- Jan. 19, 1929 -84 -69 -18 -19 -32 +7 -46 -30 Dec. 29, 1928 -373 -350 -299 -29 -21 -31 -397 -8 Jan. 28, 1928.._ +251 +236 +359 + 110 -242 -263 -13 -33 1 Includes total bills and securities, amounts due from foreign banks, and reserve bank float (see p. 161). 2 Including "other securities." ANALYSIS OF CHANGES IN MONETARY GOLD STOCK GOLD MOVEMENTS TO AND FROM UNITED STATES [End of month basis. In millions of dollars] [In thousands of dollars] Increase (+) or decrease (—) during 1928 month Gold January * Month m a s t t o o o e n c f n t k d h Total [T n im e h t r o p o g r o u o r g l t d h T m o h a p r r o e k u r i a g n - h g ! d T p o h r m o ro d e u u s g c ti h - c From or to— 1929 December J D an ec u e a m ry b e to r export tions Im- Ex- Im- Ex- Im- Exports ports ports ports ports ports 1927—January 4,564 +72.3 +44. 5 | +19.5 February.. 4,586 +21.3 +19.9 i +3.2 March 4,597 +11.1 +10.8 — 1.5 April 4,610 +12.9 +11.9 I -1.0 Belgium 2,000 May 4,608 -1.4 +31. 7 ! 2-35.5 England _ 7,000 37, 524 32, 525 June 4, 587 -20.9 +12.8 ! 2-36.7 France 1 154 308,002 July 4,580 -7.5 +8. 9 ! 2-23.1 Germany 210 1 28, 759 August 4, 588 +8.5 +6.4 I -2.5 Italy . . 2 26,093 September. 4,571 -17.5 -11.5 ' -9.0 Netherlands 4 000 October 4,541 -30.1 -8. ! ! -25.0 Canada 39,666 23, 896 25 102,371 22, 641 November. 4,451 -89.7 -53. 2 I -40.0 Central America 75 1,041 323 December. _ 4,379 -71.7 -67.4 I -8.5 Mexico 263 15 4,610 4,490 Argentina. 1,000 4,500 69,400 Total (12 mos.). -112.7 +6.2 ! -160.1 +41.2 Brazil 25, 012 Chile _ 25 624 1928—January 4,373 -6.0 -13.8 +5.5 +2.3 Colombia.. 75 1,374 2,053 February. . 4,362 -11.2 -11.1 +2.9 -3.0 Ecuador. _ 141 1,483 March 4, 305 -57.6 -94.9 +35.8 +1.5 Peru. 67 1,458 April 4,266 -38.7 -91.2 +45.7 +5.8 Uruguay 9,000 May 4,160 -105. 7 -81.7 -26. 5 +2.5 Venezuela 300 28 400 481 5,970 June 4,109 -51.0 -79.9 +30.1 -1.2 British India 13 2 1 485 Tuly 4,113 +3.4 -63.9 +60.9 +6.4 China and Hong AUgUSt 4,123 +10. 3 +.7 +5.9 +3.7 Kong 704 9,374 September. 4,125 +2.1 +.5 -1.2 +2.8 Dutch East Indies. . __ 101 201 1,262 2,531 October 4,142 +17.3 +13.3 +1.2 +2.8 Japan 62 4 248 November. 4,128 -14.0 *+6.7 -25.0 +4.3 Philippine Islands 181 1,773 December- 4,141 +13.2 *+23.3 -15.7 +5.6 All other countries.. 2 239 2 920 86 7 10, 225 6,854 Total (12 mos.) _ -237.9 -392.0 +119. e +34.5 Total 47,239 1,220 24, 940 1,636 168,887 560,759 ]929—January 3_. 4,127 -14.8 +46.0 -65.0 +4.2 1 For detailed explanation of this figure, which is derived from pre- St 1 . J L a a n w u r a e r n y c e f , i g a u n r d e s S a a n re F p ra r n el c i i m sc in o a . ry—3 customs districts: New York, ce 2 d i I n n g c l c u o d l e u s m e n f s fe , c s t e e o f B e U a L r L m E a T r I k N i n f g o r o D p e e c ra e t m io b n e s r , c 1 o 9 n 2 n 8 e , c p te . d 8 3 w 1. ith gold held 2 Includes all movements of unreported origin or destination. abroad by Federal reserve banks. 3 January figures preliminary. •Revised. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

FEBRUARY, 1929 FEDERAL RESERVE BULLETIN 109 MILLIONS OF DOLLARS MILLIONS OF DOLLARS 2000 2000 RESERVE BANK CREDIT 1500 15'00 1000 1000 500 500 1925 1926 1927 1928 1929 This chart is based on weekly averages of daily figures; latest figures are for week ending January 26 DISCOUNTS FOR MEMBER BANKS MILL ONS OF DOLLARS MILLIONS OF DOLLARS 700 1700 [Monthly averages of weekly figures. In millions of dollars] DISCOUNTS FOR MEMBER BANKS Reporting member banks in 600 cuies Member All banks Month b m a b e n e m r ks - Total Y N o ew rk Othe c r i t l i e e a s ding l o s i e u i n a d t d g - e - 500 City Chi- cities Total I cago 400 1927—April 421 270 78 | 192 20 151 May 459 302 90 i 212 19 157 June 435 *268 51 *217 20 *167 July 434 *272 59 *212 12 *162 August 413 256 74 182 6 157 September.__ 417 267 90 *176 8 150 October 428 283 75 208 10 145 November... 421 276 73 203 11 145 December 532 388 127 261 21 143 200 1928—January 439 *314 94 *220 23 *125 February 463 338 78 260 13 125 March 489 362 75 287 25 127 April 637 488 145 343 35 149 May 826 644 222 422 49 182 100 June 1,012 796 271 525 61 216 July 1,079 854 274 580 80 225 August 1,045 806 223 583 80 239 September-__ 1,063 *822 266 *556 41 *241 October 960 736 202 534 58 224 November 901 681 157 524 67 220 1925 1926 1927 1928 1929 December 1,039 799 221 578 91 240 1929—January 891 663 190 473 71 228 Based on monthly averages of weekly figures • Revised; see January BULLETIN, p. 7. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

110 FEDERAL RESERVE BULLETIN FEBRUARY, 1929 MONEY RATES IN NEW YORK CITY 3 - 1 - 1923 1924 1925 1926 1927 1928 1929 FEDERAL RESERVE BANK RATES OPEN-MARKET RATES DISCOUNT RATES RATES IN NEW YORK CITY [Rates on all classes and maturities of eligible paper] Prevailing rate on- Average rate Average yield B N P C h o l e e i w s l v t a o F e d n Y l e a e d n o l e p d r r h k a i l . a . r . . . e . serve bank e R f F f a e e c t b e t . i o 5 5 5 5 1 n n A J J J D u u u u l l l a y y g y t . e 2 1 1 1 6 3 9 e , , , , s 1 1 t 1 1 9 a 9 9 9 2 b 2 2 2 8 l 8 8 i 8 . s . _ . h _ . _ e . _ d ! | Pre ra v t i e ous Month or week m m p P 4 c a o r e o t p i r n o m m c e t i r - h 6 e a , s l a P a b c d n e a r c a 9 i r c n e m s y 0 e p k ' s s t e - , - I ! j I d l T o a i a 9 y m n 0 s s e 2 , N C e a w ll lo n a e R n w e s - a i l m c T c n 3 U e a u o a r o r t n e . t r n t o t e S y i a d e t f s s . h 6 i s , - - s b T u o r r n e y a d s s - Richmond 5 July 13, 1928.__ Atlanta 5 July 14, 1928. __ 1928 Chicago 5 July 11, 1928.__ January 4 4.15 4.24 3.31 3.35 St. Louis 5 July 19, 1928 ! February 4 4.33 4.38 3.33 3.36 M Ka i n n s n a e s a p C o i l t i y s. . . . 4H J A u p n r e . 2 7 5 , , 1 1 9 9 2 2 8 8 ! ! March 4 -4H 4.48 4.47 V f 8 3 3 .2 .3 3 0 }i;3.3O Dallas- May 7, 1928 j April 5 5.06 5.08 5 3.62 3.32 San Francisco June 2, 1928 May -5H 5.69 5.70 5 3.90 3.35 June 4%| 4' 5H 6.21 6.32 5 3.92 3.40 July 9*; 6 6.06 6.05 4.12 3. 50 August 6 - 6.91 ' 6.87 4.36 3.56 BUYING RATES ON ACCEPTANCES September m 7.40 7.26 M 4 . . 5 5 7 7 3.54 [Buying rates at the Federal Reserve Bank of New York] October -7H| 7.12 6.98 4.70 3.55 November ' 6.86 6.67 4 4 . .2 2 4 6 3.48 Rate in December 8.86 8.60 4.35 3.53 Maturity ef F fe e c b. t o 1 n Date established Pre ra v t i e ous Januar 1 y 9 29 _ 6.94 7.05 \ H 4 4 . . 6 6 6 3 3.59 Week ending— Jan.4 .! 9.37 10.50 4.46 3.54 1-15 days... Jan. 21, 1929. 4H Jan. 11 5H-5H 7%\ 6.61 6.60 4.54 3.57 1 3 6 1 - - 3 4 0 5 d d a a y y s s ._ .. 4 4 % % . .. . . . . . . . . d d o o Jan. 18 7% 7.27 7.20 *4 4 . . 6 6 2 7 } 3.60 46-60 days.. 5 do 4l Jan. 25 5 7H 6.00 6.00 4.73 3.61 61-90 days.. 5 do 91-120 days . 5 do 1 Stock exchange call loans; new and renewal rates. 121-180 days 5 July 26, 1928. 2 Stock exchange 90-day time loans. 3 3 issues—3%, 4, and 4*4 per cent; yields calculated on basis of last redemption dates—1956,1954, and 1952. NOTE.—Rates on prime bankers' acceptances. Higher rates may be 4 Change of issues on which yield is computed. charged for other classes of bills. 5 Maturities of 6 to 9 months. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

FEBRUARY, 1929 FEDERAL RESERVE BULLETIN 111 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 Month Boston Y Ne o w rk ! ! d P e h lp il h a i - a C l l a e n v d e- m Ri o c n h d - Atlanta Chicago St. Louis M ap in o n li e s - San c is F c r o an- Prime commercial loans 1928—January 4 -4*4 4*4-4*3: 4 -4*6 4 -5 4%-5 4*6-6 4*4-4*6 4 -5 4*3-5 i 5 4*4-6 4*3-5*3 February... 4*3 4*4; 4*4-4*3 4*4-5 4*4-5 4H-6 4*4-4% 4 -5 4*4-5 ' 5 4*6-6 4*3-5 March 4*4-4*3 4*4-4 *3> 4*3-4% 4*4-6 5 4*1-6 4*4-5 4*4-5 4*3-5*3 5 4*4-6 4*3-5 April 4*4-4*3 4*3-4%; 4*3-4*4 4*3-6 5 4*6-6 4 -5 4*6-5 4*3-5 • 5 4*6-6 4*3-6 May 4*3-4% 4*3-5 4*3-6 4*6-5 4*6-6 4*6-5 4*6-5 5 4*3-6 4*3-5 June 4%-5 4%-5 • m-5H 4%-6 5*4-5*6 5*£-6 4%-5*3 4*6-5*6 4%-5*3 5 4%-6 4*3-6 July 5 -6 5 -5*3 5*4-5*3 4%-6 5*6 5 -6 5 -5*6 5 -5*6! 5 -6 5 -5*6 5 -6 4*3-5*3 August 5*4-5*3 5*4-5*3 5*4-5*3 5*3-6 5*6-5% 5*6-6 5 -5*6 5 -5*6! 5 -6 5 -51/2 43/4-6 4*3-5*3 September- 5*3-6 5*3; 5*£-5% 5*6-6 5*3 5*3-6 5*4-53/4 5*6-5%; 5*4-5*3; 5*6 5 -6 4*3-5*6 October 5*3-6 5*3^ 5*3-5% 5*6-6 5*6-6 5*6-6 5*4-5% 5*6-5% I 5*3-5% 5*6-6 5*6-6 4*3-5*3 November.. 5*3-6 5*4-5*3j 5*3-6 5*6-6 5*6-6 5*^-6 5*4-5% 5*6-5%! 5*3-6 5*6 5*6-6 4*3-5*3 December. . 5*6-6 5*3 51/2-6 5*4-6 5*6-6 5*6-6 5*4-6 5*6-6 ! 5%-6 5*6-6 5*6-6 4*3-5*3 1929—January 5*3-6 5*3: 5*3-5% 5*6-6 5K-6 5*6-6 5*6-6 5*6-6 ! 5*3-5% 5Y2 5*3-6*6! 5*6-6 Loans secured by prime stock-exchange collateral 1928—July 5*6-5% 5 -6 5*6-5% 5 -6 5*6-6 5 -6 5*6-6 5*3-6 5*3-6 5 -6 5 -7 5*3-6 August 5*3-6 5*6-6 5*6-6 5*6-6 5%-6 5H-6 5*6-6 5*3-6 5*6-6 5 -6 5 -8 5*2-6 September- 5*3-6 5*6-6 5*6-6 5*6-6 5*6-6 5*6-6*6 51/2-6*2 5*3-6 5*3-6 5 -6 6 -7 5*3-6 October 5%-6 5*6-6 5*6-6 5*6-6 5*3-6 5*6-7 6 -6*3 5*3-6 5*3-6 5 -6 6 -7 5*3-6 November. 5%-6 5*6-6 5*6-6 5*6-6 5*6-6 5*6-7 6 -61/2 5*3-6*3 5%-6 5 -6 6 -8 5*3-6 December.. 6 -6*3 5*6-6 5*3-6 5*6-6 5%-6 5*6-7 6 -7 6 5U-d 5 -6 6 -7 5*2-6 1929—January 6 -6*6 5*6-6 5*6-6 5*6-6 5%-6 5*6-7 6 -7 5%-6 5%-6 5*3-6 6 -7 5*3-6 Loans secured by warehouse receipts 1928—July 5*3-6 5 -6 5 -6 6 6 5 -6 5*3-6 5 -6 4%-5*3 5 -6 5 -6 August 5*3-6 5*6-6 5*3-6 6 6 5*3-6 5*3-6 5*4-6 5 -6 5 -6 5 -6 September. 6 5*3-6 6 6 6 5*3-6 5*4-6 5*3-6 5*4-6 5*4-6 5*3-6 October 5*3-6 6 6 6 5*3-6 5*3-6 5*3-6 5*4-5*3 5*3-6 5*3-6 November. 5*6-6 6 6 6 5*3-6 5*3-6 5*3-6 5*4-5% 5*3-6 6 -7 December.. -6 5%-6 6 6 6 5*3-6 5*3-6 6 5*4-5% 5*3-6 6 1929—January. __ 6 5%-6 6 6 6 5*3-6 5*3-6 5*3-6 5*4-5% 5*6-6 6 -7 Interbank loans 1928—July 5 -6 5 -5*3 5*3-6 I 5 -5*3 5*3-53/4 5 -6 5 -6 5 -5*3 5*3-6 August 5*3 5*4 5*3! 5*4-5*3 5*3-5% 5*3-6 5 -5*6 5*4-5*3 5*3-6 i September. 6 5*3-6 5*3! 5*3 5*3-53/4 5*3-6 5 -5*3 5*3-6 5*3-6 ; October 5*3 5*3-6 5*3-5% 5*4-6 5*3-5% 5*3-6 5 -6 5*3-6 5*3-6 ; November. 5*3-6 5*3-6 5*3-5%: 5*3-6 5*3-6 5*3-6 5*3 5*3-6 5*3-6 | December.. 5*3-6 5 -6 5*3 5*4-6 5*3-5% 5*3-6 5*3-6 5*3-6 5%-6 ; 1929—January. __ 5*6-6 5*3-6 5*3 5*3 5*3-6 5*3-6 5*3-6 FEDERAL RESERVE BRANCH CITIES Loans secured by prime Prime commercial loans stock-exchange collateral City November, 1928 Buffalo _. 5*3-6 Cincinnati... a Pittsburgh 5*6-6 Baltimore 5*3-6 Charlotte 5*3-6 Birmingham 5 -6 Jacksonville- 5 -7 Nashville New Orleans _. 5*3-6 Detroit 5*3-6 Little Kock 5*3-7 Louisville Helena 8 Denver 5*3-6 Oklahoma City 5 -6 Omaha 5*3-6 El Paso Houston 5*3-6 San Antonio 5 -8 Los Angeles 6 -7 Portland 6 Salt Lake City 6 Seattle-. Spokane SO SO Loans secu r r e e c d e i b p y t s warehouse Interbank loans Decem- January, ' Novem- \ Decem- January, Novem- Decem- January, Novem- Decem- January ber, 1928 1929 ber, 1928 ; ber, 1928 1929 ber, 1928 ber, 1928 1929 ber, 1928 ber, 1928 1929 5*3-6 5*3-6 5*3-6 6 5*3-6 6 5*6-6 5*4-6 a 6 6 -6*3| 6 -7 6 -7 6 -7 6 -7 5*6-6 5*6-6 5*3-6 5*3-6 5*3-6 5*3-6 5*3-6 5*3-6 6 6 6 5*3-6 5*3-6 5*3-6 5*3-6 5*3-6 , 5 -6 5 -6 5 -6 5*3-6 5*3-6 5%-6 6 6 i 5*6-6 5%-6 5*6-6 5 -6 5 -6 6 6 I 6 -7 6 -7 6 -7 5 -6 5 -6 5 -6 5 -6 5 -6 6 -8 6 -8 6 -8 : 5*3-8 5*3-8 6 -8 6 6 6 6 6 5*3-6 5*3-6 5H-6 5*6-6 5*6-6 6 -7 5*3-6*3 6 -6*3 6 -7 6 -6*3: 6 -6*3 6 -7 6 -6*3 5*3-6 5*3-6 5*3-6 5 5 * * 3 3 - g 7 6 5 5 * * 3 3 - - 6 6 6 5 *6 - - 7 6 6 *3 5 6 *3 - - 7 6*3 5 6 * - 6 7 - 6 6 i 6-7 6 6 6 -7 6 6 6 -7 £D a0 • 5 5 *3 - - 6 6 5*3 5*3- 6 5 6 *3 5 5 *3 - - 6 5 6 *6 8 8 6 -8 6 -8 6 -8 6 -8 6 -8 6 -8 5*3-6 5 -6 6 -6*3 6 -6*3 6 -6*3 6 -8 6 -8 6 -6*3 6 -6*6 6 -6*6 5 -6 6 66 -7 I 6 -8 6 -7 6 -7 6 -7 6 -7 6 6 5*3-6 5*3-6 6 -6*6! 6 -7 6 -7 6 -7 6* 6*3-7 6 6 -6*6 8 6 -8 I 6 -8 6 -8 7 -8 7 -8 7 -Q 6 6 5 -6 5 -6 5*3-6 I 5 -6 5 -6 6 -7 6 6 5 -5*3 5 -6 5*6 5 -8 5 -8 6 -8 I 6 -8 6 -8 6 -8 6 -8 6 -8 5 -5*3 5 -6 5 -6 6 6 -7 6 -7 -7 6 -7 6 -7 6 -7 6 6 6 -6*3 6 -6*6 6 -7 6 -7 6 -7 6 6 6 7 6 6 -7 -7 -7 ! 6 -7 6 -6*3| 6 -7 6H-7 6 -7 6 6 -7 6 -7 6 -7 6 -7 ! 7 7 7 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

112 FEDERAL RESERVE BULLETIN FEBRUARY, 1929 MEMBER BANK CREDIT REPORTING MEMBER BANKS (REVISED SERIES) [Monthly averages of weekly figures. In millions of dollars] Loans and investments Loans Investments Reserve Borrowwith Cash Net Govern- ings at Month Federal in demand lime ment Federal U.S. reserve vault deposits deposits deposits reserve Total On A 11 Govern- Other banks banks Total securi- All Total ment securities i other i securi- ties ties Total: 1928—January... 21,493 15,441 6,811 8,631 6,052 2,933 3,119 1,799 270 13,982 6,560 115 314 February.. 21,315 15, 223 6,606 8,617 6,091 2,991 3,100 1,758 246 13,673 6,613 45 338 March 21, 502 15,370 6,586 8,784 6,133 2,969 3,164 1,726 245 13,579 6,689 146 362 April 21,944 15, 805 6,924 8,880 6,140 2,988 3,152 1,783 244 13,814 6,762 198 488 May . 22,148 15, 960 7,075 8,884 6,188 3,016 3,172 1.771 243 13,760 6,892 61 644 June 22,063 15,871 6,962 8,909 6,193 3,020 3,173 1,740 248 13,450 6,923 103 796 July 22,006 15,892 6,955 8,937 6,114 2,986 3 129 1,723 248 13, 246 6 861 113 854 August 21,809 15, 825 6,816 9,009 5,984 2,940 3,044 1,672 241 12,902 6,831 178 806 September. 21,871 15,898 6,840 9,059 5,973 2,981 2,991 1,699 248 13,049 6,831 133 822 October-_. 21,938 16, 003 6,874 9,130 5,934 3,024 2,910 1,707 253 13, 216 6,843 126 736 November- 21, 983 16,096 7,082 9,014 5, 888 2,988 2,900 1,714 264 13, 369 6,848 73 681 December. 22,189 16, 253 7,198 9,055 5,936 3,013 2,924 1,748 299 13, 399 6,842 117 799 1929—January... 22, 323 16, 302 7,496 8,806 6,021 3,079 2,942 1,777 259 13,593 6,894 107 663 New York City: 1928—January... 7,040 5,180 2,710 2,470 1,860 1,048 813 781 58 5,633 1,099 34 94 February.. 6,871 4,983 2,527 2,456 L, 888 1,089 799 754 52 5,471 1,093 14 78 March 6,918 5,014 2,449 2,565 L,904 1,081 823 738 51 5,467 1,080 44 75 April . 7,152 5,303 2,675 2,628 L, 849 1,056 793 777 51 5,607 1 120 59 145 May 7,282 5,408 2,787 2,621 L, 874 1,075 799 767 51 5, 566 1,193 18 222 June 7,166 5,248 2,613 2,635 L, 918 1,103 814 749 53 5,379 1,210 30 271 July 7,170 5,270 2,626 2,644 L, 900 1,105 795 730 55 5,273 1,174 32 274 August 6,962 5,186 2,518 2,668 ,777 1,015 762 705 52 5,061 1,161 32 223 September. 7,022 5,221 2,544 2,678 L, 801 1,053 748 716 53 5,092 1,175 32 266 October 7,013 i 5,209 2,559 2,650 L803 1,092 711 720 54 5,152 1,206 37 202 November. 7,056 ! 5,255 2,694 2, 562 1,800 1,085 715 721 58 5,264 1,208 22 157 December. 7,152 1 5,339 2,747 2,592 1,812 1,091 721 752 67 5,305 1,198 32 221 1929—January... 7,262 j 5,378 2,904 2,473 1,884 1,131 753 770 58 5,419 1,199 29 190 Other leading cities: 1928—January... 14,452 ; 10,261 4,100 6,161 4,191 1,885 2,306 1,018 212 8,349 5,460 80 220 February.. 14, 443 1 10,240 4,079 6,161 4,203 1,902 2,301 1,004 194 8,202 5,519 31 260 March 14, 584 '•• 10,356 4,137 6,219 4,229 1,887 2,341 988 194 8,111 5,609 102 287 April 14,793 10, 502 4,249 6,252 4,291 1,932 2,359 1,006 193 8,207 5,642 139 343 May 14,865 10, 552 4,288 6,263 4,313 1,941 2,373 1,004 192 8,194 5,699 43 422 June 14,897 10, 623 4,349 6,274 4,275 1,917 2,358 991 196 8,071 5,713 74 525 July 14,837 10,622 4,330 6 293 4,214 1,881 2,334 993 194 7,973 5,687 80 580 August 14, 846 10, 639 4,298 6,341 4,207 1,925 2,283 967 189 7,840 5,670 146 583 September. 14,849 1 10,677 4,296 6,381 4172 1,929 2,244 984 195 7,957 5,656 101 556 October 14, 925 ; 10,794 4,314 6,480 4,131 1,932 2,199 987 199 8,064 5,636 89 534 November. 14, 928 1 10,840 4,388 6,452 4,087 1,902 2,185 993 205 8,105 5,640 51 524 December. 15, 037 10,913 4,450 6,463 4,124 1,921 2,202 996 232 8,094 5,644 85 578 1929—January... 15,061 10, 924 4,592 6,332 4,136 1,948 2,188 1,007 201 8,174 5,696 78 473 1 Averages for 1928 given in these two columns differ from the revised figures given in the January BULLETIN, page 59, by reason of certain further revisions; see p. 96 of this BULLETIN. The additional revisions are being applied to the weekly data for 1928, also for 1927 and earlier year?, by Federal reserve districts, and will be made available as soon as possible. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

113 FEBRUARY, 1929 FEDERAL RESERVE BULLETIN BANKERS' BALANCES OF REPORTING MEMBER BANKS IN LEADING CITIES [Monthly averages of weekly figures. In millions of dollars] Other leading cities New Total i York City i Total Due to banks: 1926—January 3,484 1,137 2,347 204.2 379.8 57.1 117. 7 February 3,374 1,098 2,276 192.4 375.0 58.1 114.5 March 3,292 1,089 2,203 188.2 378. 61.8 117. 1 April 3,207 1,053 2,154 185.8 381.7 58.5 114.1 May. 3,064 1,020 2,044 174.2 357.7 55.1 96.6 June _ 2,897 933 1,964 162.9 367.4 52.8 101.3 July... 2,936 957 1,979 ., 163.1 353.5 50.9 100.8 August 2,801 901 1,900 I i 153.7 344.0 47.4 90.1 September 2,948 934 2,014 ;! 162.2 352.3 53.2 102.5 October. 3,073 992 2,081 : 166.8 352. 6 60.2 101. November _ 3,040 981 2,059 ii 168.2 335.2 56.2 102.4 December 3,011 956 2,055 i 164.0 339.2 54.1 99. 1929—January 3,074 1,012 2,062 i 172.2 331.0 51.9 96.8 Due from banks: 1928—January 1,2«- 112 1,150 ' 56.7 36. 6 35.2 68.8 671.7 February 1,182 105 1,077 52.1 32. 33.1 64.7 1 March I 1,161 110 1,051 50.3 29. 31.8 61.8 613.6 April. 1,184 123 1,061 57.8 29.6 32.4 56.2 607.3 May 1,152 115 1,037 56.6 28.6 30.1 55.8 577.2 June _ 1,116 104 1,012 53.5 27.2 30.5 58.5 564. 3 July 1,129 102 1,027 53.3 25.8 34.5 54.6 574.3 August 1,046 88 958 50.7 25.3 33.5 49.0 538.0 September _ 1,142 102 1,040 51.5 25.3 35.6 55.8 589.8 October 1,170 100 1,070 56. 5 26.8 32.8 53.3 617.5 November. 1,200 108 1,092 57.0 29.3 29. 54.0 635. 9 December.. 1,180 110 1,070 55.2 29.0 32.3 55.2 622.1 1929—January 1,217 115 1,102 59.2 28.6 33.0 645.3 i Figures for 1928 revised; see page 6 of January BULLETIN and page 96 of this BULLETIN. BANKERS' ACCEPTANCES AND COMMERCIAL PAPER OUTSTANDING [In millions of dollars] Total outstanding Bankers' acceptances1 Commercial paper End of month 1926 : 1927 1928 1929 1926 1927 1928 I 1929 1926 ! 1927 19288 1929 January. _. 1,442 1, 325 788 774 i 1, 058 654 551 577 February. 1,422 1,362 767 785 •: 1, 056 655 577 567 March 1,414 1,415 746 809 | 1,085 668 606 570 April 1, 384 1,410 721 811 1,071 663 599 May 1,353 1, 357 685 775 | 1,041 668 582 541 June. 1,274 1,330 622 751 ! 1,026 652 579 S03 July 1, 255 1,310 600 741 ! 978 655 569 483 August 1,221 1,373 583 782 ! 952 638 591 458 September 1, 226 1,464 614 864 \ 1,004 612 600 430 October... 1, 275 1,586 682 975 i 1,123 593 611 427 November 1,292 1, 632 726 1,029 1,200 566 603 421 December. 1,281 1,636 755 1,081 1,284 526 555 1 Figures collected and compiled by American Acceptance Council. 2 Paper maturing within 7 months. Figures reported by about 21 dealers to the Federal Reserve Bank of Xew York. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

114 FEDERAL RESERVE BULLETIN FEBRUARY, 1929 BROKERS' LOANS BROKERS' BORROWINGS ON COLLATERAL, IN NEW YORK CITY, REPORTED BY THE NEW YORK STOCK EXCHANGE [Net borrowings. In millions of dollars] On demand and on time On demand On time From From From From private From private From private Date New York banks, New York banks, New York banks, Total banks and brokers, Total banks and brokers, Total banks and brokers, trust com- foreign trust com- foreign trust com- foreign panies banking panies banking panies banking agencies, agencies, agencies, etc. etc. etc. 1926-Dec.31__ 3,293 2,804 489 2,542 2,128 414 751 676 75.6 1927—Jan. 31... 3,139 2,670 469 2,328 1,964 365 810 707 103.9 Feb. 28.. 3,256 2,757 499 2,475 2,085 391 781 673 108.4 Mar. 31.. 3,290 2,790 500 2,505 2,112 393 785 679 106.6 Apr. 30.. 3,341 2,865 476 2,541 2,146 395 800 719 81.4 May 31.. 3,458 2,968 490 2,674 2,254 420 784 713 70.5 June 30.. 3,569 3,065 504 2,757 2,316 441 812 749 63.5 July 30.. 3,642 3,145 497 2,765 2,343 421 877 802 75.5 Aug. 31.. 3,674 3,170 504 2,746 2,330 415 928 840 88.8 Sept. 30.. 3,915 3,340 575 3,018 2,539 479 897 801 95.8 Oct. 31 __ 3,946 3,363 583 3,023 2,549 475 923 814 108.5 Nov. 30.. 4,092 3, 519 573 3,134 2,675 459 958 844 113.4 Dec. 31.. 4,433 3,812 621 3,481 2,963 518 952 849 103.4 1928—Jan. 31— 4,420 ! 3,805 615 3,393 2,882 511 1,027 923 104.2 Feb. 29.. 4,323 i 3,737 585 3,294 2,807 488 1,028 931 97.7 Mar. 31.. 4,640 ! 3,947 693 3,580 3,016 564 1,060 931 128.8 Apr. 30.. 4,908 4,246 662 3,739 3,201 537 1,169 1,045 124.2 May 31.. 5,274 4,568 707 4,070 3,455 616 1,204 1,113 90.8 June 30_. 4,898 4,169 730 3,742 3,122 619 1,157 1,046 110.3 July 31.. 4,837 4,150 687 3,768 3,183 585 1,070 967 102.5 Aug. 31.. 5,051 4,260 791 4,094 3,420 674 958 840 117.3 Sept. 29.. 5,514 4,647 866 4,690 : 3,939 751 824 709 115.6 Oct. 31__ 5,880 4,994 886 5,116 i 4,360 756 764 634 129.9 Nov. 30.. 6,392 5,412 979 5,614 4,771 843 777 641 136.1 Dec. 31.. 6,440 5,401 1,039 5,722 4,810 913 717 591 126.2 1929—Jan. 31... 6,735 5,664 1,071 5,983 5,043 939 752 : 621 132.0 LOANS TO BROKERS AND DEALERS IN SECURITIES MADE BY REPORTING MEMBER BANKS IN NEW YORK CITY [In millions of dollars. Monthly data are averages of weekly figures] Demand and time loans Demand loans Time loans Month or date For ac- For ac- For ac- Total F ac o c r o o u w nt n c o o t u o u t w n -o t n f o - f c F o o o t u h r n e a t r c o s - f Total F a o cc r o o u w nt n co o to u u t w n - t o n o f- f c F o o o t u h r n e a t r c o s - f Total F a o cc r o o u w nt n c o o t u o u t w n -o t n f o - f c F o o o t u h r n e a t r c o s - f banks banks banks 1926—December... 2,698 887 1,045 766 2,012 596 737 679 686 291 308 87.0 1927—January 2,778 933 1,104 741 2,094 639 799 656 685 295 305 84.8 February 2,733 841 1,127 765 2,069 548 843 678 664 293 284 87.1 March _ 2,816 901 1,091 824 2,154 615 805 734 661 285 286 89.9 April 2,866 929 1,131 806 2,190 642 830 718 677 287 301 88.4 May _. 2,933 936 1,191 805 2,219 639 861 719 714 297 330 86.4 June 3,115 1,077 1,180 858 2,385 772 851 762 730 306 328 95.8 July 3,096 1,032 1,188 877 2,336 705 857 774 760 327 330 102.9 August. 3,181 1,048 1,225 908 2,366 726 849 791 815 322 376 116.4 September.. 3,261 1,061 1,285 916 2,463 777 891 795 799 284 394 120.5 October 3,392 1,103 1,326 962 2,603 820 942 841 789 283 385 121.4 November.. 3,441 1,175 1,276 990 2,632 879 902 851 809 296 374 138.7 December... 3,621 1,282 1,354 985 2,782 948 981 853 839 334 373 132.3 1928—January 3,802 1,342 1,470 990 2,938 992 1,083 863 863 350 387 126.8 February 3,784 1,167 1,500 1,117 2,871 820 L,084 967 913 347 416 150.0 March _ 3,761 1,064 1,450 1, 247 2,861 741 L, 036 1,084 900 323 414 162.9 April ._ 4,062 1,193 1,617 1,252 3,122 843 1,204 1,075 940 350 413 177.3 May 4, 414 1,272 1,628 1,514 3,368 885 L, 198 1,285 1,046 386 431 229.1 June 4,360 1,048 1,568 1,744 3,309 687 1,143 1,479 1,051 361 425 265.2 July 4,232 929 1,543 1,760 3,207 614 1,136 1,456 1,025 315 407 303.2 August 4,239 835 1,522 1,881 3,359 590 1,178 1,591 880 245 344 290.2 September. _ 4,417 887 1,607 1,924 3,684 675 1,332 1,677 733 212 276 246.1 October 4,701 933 1,720 2,048 4,075 744 1,507 1,825 625 189 213 223.3 November. . 5,102 1,105 1,749 2,248 4,483 895 L, 559 2,030 618 210 190 218.0 December. _. 5,193 1,114 1,760 2,319 4,623 901 1,586 2,136 570 213 174 182.9 1929—January 5,408 1,173 1,801 2,434 4,835 968 L, 633 2,234 572 205 168 199.2 Jan. 2 5,330 1,516 1,648 2,166 4,780 1,304 L,480 1,996 550 212 168 169.7 Jan. 9 5,313 1,163 1,794 2,356 4,748 947 L,626 2,175 565 216 167 181.5 Jan. 16 5,395 1,084 1,859 2,452 4,818 887 1,692 2,239 577 197 167 213.1 Jan. 23 5,443 1,010 1,853 2,579 4,864 813 L,686 2,365 579 197 167 214.6 Jan. 30 5,559 1,091 1,853 2,615 4,967 887 1,682 2,398 592 204 170 217.5 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

FEBRUARY, 1929 FEDERAL RESERVE BULLETIN 115 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 a in n g d p M r m o a e d e n t t u d a a c l l s ts m Bu at i e ld ri i a n l g s c C a d l h r s e u m a g n s i d - i f n H u g r o n g u i o s s o h e d - - s l M an is e c o e u l s - N c c o u o i m l n t t i a u m e g s r o a ri d l - - 1927—October 97.0 105.0 100.0 113.0 98.4 83.8 97.1 91.6 97.1 98.5 88.3 94.8 November... 96.7 104.3 101.5 114.3 97.5 82.9 97.0 90.2 97.4 98.9 88.3 94.6 December... 96.8 104.4 100.7 116.9 97.2 82.5 98.4 90.4 97.2 98.8 89.0 94.8 1928—January 96.3 106.1 98.5 121.0 96.7 80.8 98.1 90.8 96.3 98.6 89.0 93.7 February 96.4 104.5 98.7 124.1 96.6 81.2 98.3 91.0 95.8 98.4 87.3 94.2 March 96.0 103.5 98.0 124.0 96.5 80.8 98.4 91.0 95.6 98.3 86.8 94.0 April 97.4 107.6 99.5 126.7 96.5 80.8 98.4 92.5 95.8 97.9 84.9 94.7 May 98.6 109.8 101.2 126.3 96.6 81.8 98.6 93.5 95.3 97.8 85.1 95.6 June _ 97.6 106.7 100.3 123.7 96.3 82.1 98.7 93.9 94.9 97.0 82.2 95.2 July.. 98.3 107.1 102.3 124.2 96.8 82.8 98.6 94.4 94.5 96.9 80.8 95.9 August 98.9 107.0 104.1 121.0 96.3 84.6 100.4 94.6 94.7 97.2 79.3 96.7 September... 100.1 108.8 106.9 120.7 95.6 85.1 100.5 94.7 95.1 97.2 79.7 97.8 October 97.8 103.5 102.3 117.5 96.1 84.9 101.0 95.0 95.6 96.5 80.3 96.4 November... 96.7 101.6 100.1 115.5 96.1 84.4 101.7 96.0 96.0 96.4 80.0 95.4 December 96.7 103.6 98.0 115.7 96.1 83.5 102.9 96.8 96.1 96.4 80.1 94.8 1 New index of Bureau of Labor Statistics. PRICES OF FARM PRODUCTS AT THE FARM i DOMESTIC CAPITAL ISSUES [August, 1909-July, 1914=100] [In millions of dollars] Month 3 m 0 it o i c e d o s - m- Grains t F v a a e r b n g u l d e e it - s a M nim ea a t ls p D p o u a r a u c n o i t l d d r s t y - ry C co s a o e t n t t e t o d d o n n - cl U f a ie s n d s - i- Class of issue January-December 1927 November _ 137 120 136 141 153 162 86 December.. 137 123 141 138 158 153 90 Total. 1928 Corporate issues January 137 125 144 138 154 152 91 Bonds and notes- February._ 135 128 153 139 144 141 90 Long term.. March 137 136 174 139 137 147 89 Short term April 140 144 179 142 134 154 85 Stocks... May.. 148 160 181 151 134 166 86 Farm-loan issues J J A u u u n l g y e u . st . 1 1 1 3 4 4 9 5 5 1 1 1 2 5 4 0 2 2 1 1 1 3 5 6 7 6 8 1 1 1 6 5 5 2 0 7 1 1 1 3 3 3 4 6 2 1 1 1 6 5 7 2 3 0 8 8 8 7 7 8 Munic T ip o f a t u a l n l i d s i s n n u e g e w . s and re- September. 141 117 127 174 145 142 85 October 137 116 114 160 150 147 83 November. 134 110 109 150 155 146 86 December.. 134 112 108 143 159 148 90 SECURITY PRICES 1929 January 133 115 109 146 149 148 92 Common stocks i (1926 ^ ! Bonds: i Index numbers of Department of Agriculture. Month or week st 3 o 9 c 0 ks in 3 d 2 u 2 s- or Average combined trials FOREIGN CAPITAL ISSUES [In millions of dollars] 1927—September.. 127.7 128.9 125.2 124.1 I 98.00 October 126.7 127.5 124.3 124.5 i 98.62 ! I Dec 1 e 9 m 28 ber, ! J 1 a 9 n 2 u 8 ary-Decem 1 b 92 e 7 r 1928— N D F J e e a o b n c v e u r e m a u m r a b y r b e y r e — . r _ . . . . 1 1 1 1 3 2 3 3 4 9 2 3 . . . . 4 6 3 1 1 1 1 1 3 3 3 3 7 4 1 5 . . . . 4 8 3 5 1 1 1 1 2 2 2 2 1 5 4 6 . . . . 6 3 9 8 1 1 1 1 2 3 2 2 5 0 9 7 . . . . 9 5 2 6 i ! | 9 9 9 9 9 9 8 9 . . . . 3 3 9 2 5 1 8 5 Class of isstiG • March 137.9 : 141.1 125.9 134.4 99.20 Gov- Cor- Gov- Cor- Gov- Cor- April.. _ 145.9 149.5 130.7 142.5 99.18 , em- por- ern- por- ern- por- May.. 152.1 154.9 133.2 155.3 ; 98.79 inent ate ment ate ment ate June 145.3 148.2 126.7 148.1 ! 97.38 July 144.2 : 147.8 124.6 145.3 96.56 Total 38.5 87.1 835.4 662.7 988.5 640.8 A Se u p g t u e s m t ber.. 1 15 4 6 8 . . 1 3 . 1 1 6 5 1 2 . . 6 6 1 1 2 2 9 6 . . 7 5 1 15 4 5 7 . . 2 9 : 9 9 6 5 . . 4 8 7 2 New E C i u a l s a r n s o n u a p d e d e a and . Newfound- ; • 2 3 1 2 8 3 . . . 5 0 5 8 1 4 3 6 . . . 3 3 9 7 3 6 2 1 4 1 7 . . . 2 8 1 2 5 1 6 2 0 5 4 0. . . 2 6 1 8 3 1 5 2 1 3 5 9 . . . 8 7 6 2 5 1 3 2 0 8 3 8 . . . 0 8 1 1929— N D O Ja c e o n t c v o u e e b a m m e ry r b b e e r r . . . . _ 1 1 1 1 6 7 5 8 9 2 3 9 . . . . 2 6 9 1 | 1 1 1 1 6 9 7 8 6 1 0 7 . . . . 2 4 0 1 1 1 1 1 2 3 4 3 8 3 1 5 . . . . 2 7 0 9 1 1 1 1 7 8 5 6 4 8 4 5 . . . . 7 3 5 5 i I 9 9 9 96 6 6 6 . . . . 1 2 9 5 2 4 0 8 U La n t i i t n e d A S m ta e t r e ic s a i nsular pos- 3.0 61.8 257.9 87.1 280.7 79.7 Wee J k a n e . n 5 ding- 182.8 191.1 140.9 184.6 l 96.13 sessions. ... .4 6.2 .6 12.9 19.3 Jan. 12. 182.1 190.0 140. 6 185.4 ; 96.22 Refu M nd is i c n e g l l i a s n s e u o e u s s _ 3.8 1 7 1 6 3 . . 4 6 1 7 3 3 7 . . 6 1 1 1 1 3 4 4 . . 8 6 1 8 1 7 2 . . 3 7 J J a an n . . 1 2 9 6 1 1 8 8 3 6 . . 4 1 ! 1 1 9 9 0 3 . . 9 5 1 1 4 4 0 1 . . 9 4 1 1 8 9 8 4 . . 4 9 I 9 9 6 6 . . 0 0 8 5 To c t o a r l p G or o a v te e rnment and 1 ! 12.5.6 1,4<)8.1 1,62 „. 9 .3 » St 1 a n In d d a e rd x o S f t a c t o is m ti m cs o C n- o s . t o fr c o k m m c a lo rk si e n t g v p a r l i u c e e s s ( o r n e v T is h e u d rs se d r a ie y s . ) computed by Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

116 FEDERAL RESERVE BULLETIN FEBRUARY, 1929 PRODUCTION, EMPLOYMENT, AND TRADE [Index numbers of the Federal Reserve Board] Building contracts Wholesale dis- Department- Departmentawarded i Freight tribution store sales i store stocks i Factory Factory car employ- pay load- Year and month ment rolls Unad- Ad- ings 1 Unad- Ad- Unad- Ad- Unad- | Adjusted justed justed justed justed justed justed j justed Mo. av. 1923-1925=100 Mo. av. 1919 = 100 Monthly averages 1923-1925 = 100 ANNUAL INDEX 1919.. 83 84 77 100 100 64 84 110 79 1920.. 87 87 89 103 124 63 91 114 105 1921.. 67 67 70 82 84 57 79 87 89 1922.. 85 87 74 90 89 81 86 89 88 1923.. 101 101 105 104 ! 113 84 100 101 98 1924.. 95 94 96 95 ! 104 95 98 98 99 101 1925.. 104 105 99 95 i 107 122 103 101 103 101 1926.. 108 108 108 96 I 109 129 107 98 106 103 I 1927.. 106 106 107 92 I 105 128 103 95 107 102 L 1928.. 110 111 106 90 ! 104 135 104 94 108 100 MONTHLY INDEX 1924 September 94 97 91 • 87 90 I 99 118 93 100 105 101 October.. 94 95 89 93 : 103 103 100 99 118 111 95 111 101 N D o e v c e e m m b b e e r r... 1 9 0 7 1 1 9 0 7 1 1 9 0 6 0 9 9 4 2 ! 1 10 0 1 6 9 8 5 3 1 9 0 4 3 1 9 0 9 0 97 1 11 6 1 8 1 10 0 1 0 1 9 1 4 3 1 1 0 0 0 0 1925 ! January 105 106 104 94 ! 103 75 101 103 93 i 102 86 90 102 February 105 106 100 96 j 109 76 104 103 97 i 101 80 103 96 101 March 104 106 96 96 i 110 120 107 100 109 ! 100 95 103 104 101 April 103 103 98 96 1 107 138 112 104 98 I 100 106 102 106 101 May 103 103 104 95 i 107 124 115 105 90 ! 99 100 101 102 100 June 102 102 101 94 ! 105 137 I 125 101 91 " 100 99 100 97 100 July 103 103 104 93 ! 102 133 128 101 94 102 75 100 94 101 August 103 102 108 94 105 149 | 135 105 113 101 78 101 98 102 September 102 104 90 95 104 138 135 102 117 100 95 102 106 102 October 105 107 91 97 111 129 ! 129 100 124 105 129 110 111 101 November 106 109 94 112 116 I 127 104 99 100 114 104 115 102 December 108 110 93 112 129 ! 138 105 89 178 106 97 103 1926 January 106 109 92 107 Ill ! 146 102 94 102 106 93 105 February 107 108 96 97 112 106 j 145 104 97 101 81 105 98 103 March 107 108 106 97 113 146 I 128 105 107 100 102 101 107 104 April 107 107 106 96 110 139 120 107 94 97 103 103 107 103 May 106 107 104 96 109 134 125 108 91 99 107 107 103 101 June 107 107 106 95 109 133 125 109 91 99 101 102 101 July 107 107 107 93 104 126 124 108 91 97 ! 78 104 101 August 111 111 109 94 ! 108 148 131 108 107 97: 83 107 101 September 112 112 111 96 I 108 137 130 109 117 100 I 101 109 107 103 October 111 110 115 96 ! 112 126 126 109 111 94 ! 124 110 114 103 November 108 106 118 95 : 109 119 130 108 97 98 121 106 117 104 December 105 103 119 94 | 108 131 136 106 84 95 184 110 102 i 1927 January 107 105 116 92 : 102 94 123 105 86 94 106 103 February 109 107 118 94 i 109 96 131 109 91 95 83 107 102 March..'. 111 110 118 94 i 110 151 131 109 103 96 100 105 106 103 April 109 109 *106 93 j 108 147 128 108 90 93 111 105 106 102 J M un ay e 1 1 0 1 8 1 1 11 0 1 9 1 10 0 4 8 9 9 3 2 ; • 1 10 0 6 8 1 1 3 5 5 4 1 1 2 4 6 4 1 1 0 0 4 7 8 8 7 8 9 9 5 3 1 10 0 1 2 1 1 0 0 3 3 1 9 0 7 3 1 1 0 0 1 0 July 106 107 100 91 ! 101 130 128 101 88 95 75 104 94 101 August 107 107 106 91 ; 104 135 119 104 111 100 89 111 97 101 September.... 105 106 104 92 ! 104 127 121 104 112 96 100 108 107 103 October 103 102 105 92 : 105 137 137 101 106 91 119 106 113 103 November 99 99 101 90 I 101 114 125 96 93 95 122 107 116 103 December 99 103 89; 102 116 121 94 82 186 111 102 ! January 106 106 103 104 137 100 87 94 105 91 102 February... 109 110 103 89 i 104 113 155 102 93 97 105 97 102 March 109 110 105 90; 105 144 125 103 99 93 103 105 103 100 April 109 110 103 103 157 136 104 89 102 104 104 100 May 109 110 105 i 104 163 152 106 96 107 104 101 99 June 108 110 99 ! 90 i 104 158 | 148 102 84 89 104 105 95 July 109 111 101 ! 88 j 100 142 139 102 87 78 108 92 August 112 113 105 ; 90 | 104 126 111 104 108 85 106 96 100 September.. 114 116 108 ! 91 | 105 143 136 106 109 106 120 101 198 October 114 114 114 ' 92 ! 109 145 | 145 106 111 123 105 110 100 November.. 112 111 113 ! 92 ! 106 115 126 103 95 122 107 113 100 December.. 112 112 112 91 j 107 105 116 102 81 187 117 92 i The indexes of production and car loadings are adjusted to allow for seasonal variation; the indexes of building contracts, wholesale distribution, and department-store sales and stocks are shown both with and without seasonal adjustments. * Revised. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

117 FEBRUARY, 1929 FEDERAL RESERVE BULLETIN INDUSTRIAL PRODUCTION [Index numbers, adjusted for seasonal variations. 1923-1925 average=100] INDEX OF INDUSTRIAL PRODUCTION 1 Total Manufactures Minerals Month 1923 1924 1925 1926 1927 1928 1923 1924 1925 1926 1927 1928 1923 1924 1925 1926 : 1927 j 1928 January 100 100 105 106 107 106 100 99 106 109 105 106 101 102 104 92 116 103 February 100 102 105 107 109 109 100 102 106 108 107 110 100 104 100 96 118 103 March 103 100 104 ! 107 111 109 103 101 106 108 110 110 103 99 96 106 118 105 April. 107 95 103 107 109 109 107 95 103 107 109 110 109 92 98 106 *106 103 May 107 89 103 106 111 109 106 88 103 107 111 110 108 93 104 104 108 105 June.. . _ 105 85 102 107 108 108 104 84 102 107 109 110 i 108 92 101 106 104 99 July 103 83 103 107 106 109 102 82 103 107 107 111 111 92 104 107 100 101 August 102 89 103 111 107 112 100 88 102 111 107 113 ! 110 92 108 109 106 105 September 100 94 102 112 105 114 101 93 104 112 106 116 98 97 90 111 104 108 October 99 94 105 111 103 114 98 95 107 110 102 114 :104 89 91 115 105 114 November.. ... 97 97 106 108 99 112 96 97 109 106 98 111 105 96 94 118 I 101 113 December 96 101 108 105 99 112 96 101 110 103 99 112 99 100 93 119 103 112 Annual index 101 95 104 108 106 110 101 94 105 108 106 111 : 105 96 99 107 | 107 106 * Revised. INDEX OF PRODUCTION OF MANUFACTURES, BY GROUPS 1 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 m A o u b t il o e - s Le s a a h n t o d e he s r a C n b e d r m i g e c l n k a t , s , s f m N e e r o t r a n o l - u s s r P e l e f e i t u n r i m o n - g Ru ti b r b e e s r T f m a o c a b t n a u u c re - c s o ANNUAL INDEX 1919 . 84 82 92 94 76 79 50 104 55 67 54 82 1920 87 99 84 84 87 79 58 97 66 78 64 87 1921 67 46 87 83 70 68 41 90 63 39 64 55 85 1922 87 83 99 94 85 89 66 102 80 69 74 77 89 1923 101 105 105 99 95 99 102 110 95 94 86 86 96 1924 94 88 91 103 99 96 90 94 95 99 99 98 99 1925 105 106 104 98 106 105 107 96 110 107 115 116 105 1926 108 113 104 97 115 100 109 98 113 112 125 116 112 1927 106 *104 113 96 114 94 86 103 109 109 136 121 118 1928.. 111 119 107 98 117 89 113 104 117 115 152 144 124 MONTHLY INDEX 1927 January 105 106 108 95 113 96 96 99 101 116 135 118 114 February 107 114 108 93 113 95 101 102 107 112 134 117 113 March 110 115 114 99 113 91 106 98 119 108 135 123 116 April 109 116 112 98 114 88 106 98 109 112 134 131 122 May 111 117 116 103 113 95 107 100 108 111 132 127 122 June 109 105 121 102 112 93 95 105 109 108 134 131 116 July 107 103 118 96 114 95 84 113 111 106 136 124 109 August. 107 102 119 97 112 95 89 112 115 108 136 119 119 September 106 98 118 93 113 99 81 113 113 107 139 113 123 October 102 94 113 94 112 94 70 108 108 106 142 116 121 November... 99 88 112 94 110 96 47 97 107 106 140 117 122 December . 99 93 105 95 113 93 53 96 105 111 137 110 113 1928 January . 106 110 106 102 116 91 92 99 111 101 135 124 118 February 110 115 107 110 117 92 103 103 115 109 139 139 118 March 110 114 106 105 118 93 114 102 109 107 141 135 119 April 110 125 101 97 119 97 110 97 108 110 147 131 119 May 110 117 107 96 121 92 108 96 113 111 150 134 120 June 110 112 109 93 117 90 119 107 112 115 153 145 126 July _.. 111 121 100 89 117 95 120 112 117 112 155 155 125 August 113 121 109 91 117 86 133 112 124 116 160 154 131 September... 116 127 108 97 118 82 139 111 126 118 162 165 129 October 114 125 111 100 116 81 119 105 119 120 160 166 127 November.. 111 119 *113 103 119 85 90 96 118 126 159 150 125 December 112 122 110 106 116 88 97 92 122 128 159 140 126 *Revised. 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 BULLETIN for February and March, 1927 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

118 FEDERAL RESERVE BULLETIN FEBRUARY, 192& INDEX OF PRODUCTION OF MINERALS, BY PRODUCTS Total n B o i u t s u m co i a - l Ant c h o r a a l cite C t r r u o d le e u p m e- sh Ir i o p n m -o e r n e ts Copper Zinc Lead Silver ANNUAL INDEX 1919 77 89 109 52 91 81 1920 - 89 109 110 61 113 85 87 1921 _ 70 79 112 64 36 30 39 66 84 1922 74 78 65 75 82 62 68 77 87 1923 105 108 115 100 114 93 96 88 102 1924 - 96 92 108 97 82 100 97 102 100 1925 99 100 77 103 104 106 107 111 98 1926 L 108 110 105 104 113 110 116 114 95 1927 _ _ _ _ 107 99 99 121 98 105 111 111 92 1928 - - 106 94 95 122 116 115 112 105 88 MONTHLY INDEX 1927 116 •118 101 120 114 113 113 97 February - 118 •124 •96 123 111 113 112 95 118 •130 •87 122 100 114 115 90 April _ •106 •94 •107 119 106 110 120 90 May - 108 •93 •116 120 120 107 108 113 90 104 •90 •101 120 101 105 114 112 93 JUly _ 100 87 74 124 99 101 109 116 94 August - - 106 92 106 123 99 101 114 112 94 Sentember 104 92 99 124 87 104 111 111 90 October 105 90 106 124 95 102 110 105 91 101 85 105 124 49 106 107 110 100 December 103 87 91 124 105 109 109 95 1928 January 103 92 88 121 102 104 103 93 February - 103 94 88 119 104 107 109 83 Inarch -- - 105 99 79 121 102 112 109 94 April - 103 87 109 119 103 114 100 89 May 105 93 114 119 80 110 113 101 85 June 99 89 74 117 107 110 117 99 93 July 101 94 66 119 103 113 117 97 76 105 91 95 123 105 116 121 107 87 September 108 94 95 125 109 •123 114 115 79 114 99 119 128 115 128 110 108 79 113 98 115 127 105 •131 110 •111 •93 December — 112 95 98 133 133 106 114 103 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 BULLETIN for February and March, 1927. PRODUCTION OF MANUFACTURES, BY INDIVIDUAL LINES Decem- Novem- Decem- Decem- Novem- December, 1928 ber, 1928 ber, 1927 ber, 1928 ber, 1928 ber, .1927 Iron and steel: Leather and products: Pig iron 112 112 89 Leather, tanning- Steel ingots 123 119 94 Sole leather i 93 92 Textiles: Upper leather- Cotton consumption.. 107 104 Cattle 74 Wool- Calf and kip 77 105 Consumption 98 98 85 Goat and kid 126 122 129 Machinery activity i 92 97 87 ! Boots and shoes 92 •98 94 Carpet and rug loom activity » 85 93 92 Stone, clay, and glass: Silk D L - o e o li m v e a r c ie ti s v .. i ty ] . 1 1 5 1 6 7 1 1 4 1 1 9 1 11 4 7 4 F P C a l e a c m t e e e b n g r t l i a c s k s ~ 1 1 1 43 9 ' 1 1 9 3 1 4 4 6 1 9 9 1 9 7 7 Food products: Nonferrous metals: Slaughtering and meat packing- 141 136 117 116 87 114 •ill 109 Cattle _. 81 89 Zinc 106 110 109 Calves 90 95 95 Tin* 123 117 Sheep 109 129 109 Chemicals and allied products: Flour 98 96 100 Petroleum refining— Sugar meltings _ 133 148 108 Gasoline 1 184 186 155 Paper and printing: Kerosene _ 94 91 Wood pulp and paper- Fuel oill -. 136 134 120 Newsprint 95 100 95 Lubricating oilJ 125 119 118 Book paper 128 •119 110 Coke production- Fine paper 116 119 120 By-product _ _ 134 131 113 Wrapping paper 102 *103 103 Beehive 34 37 32 Paper board 125 128 110 Rubber tires and tubes: Wood pulp, mechanical- 97 105 90 Tires, pneumatic 145 157 113 Wood pulp, chemical 111 107 111 Inner tubes 97 91 Paper boxes 153 131 121 Tobacco products: Newsprint consumption 110 127 Cigars.._ 99 76 Lumber: Cigarettes 159 148 139 Lumber, cut. 85 82 93 Manufactured tobacco and snuff. 94 92 95 Flooring _ 119 93 Transportation equipment: Automobiles 97 90 53 Locomotives 21 32 Shipbuilding 25 130 i Without seasonal adjustment. •Revised. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

FEBRUARY, 1929 FEDERAL RESERVE BULLETIN 119 FACTORY EMPLOYMENT AND PAY ROLLS [ Index numbers without seasonal adjustment. Monthly average, 1919 = 100] Metals and Textiles and products Total Gro p u r p oduc I a t r s n o d n Group 'abrics P u r c o t d s - L p u a b r u n c o e m t d d r s - - R v r c o e a l a e h i d s l i - - m A o u b t i o le - s P p a r i a n n i p n g d e t r - F p u a o r c n o o t d d d s - s L p e u a r a c n o t t d d h s - er S c g a t l l o n a a n y d s e s , , b p u T a r c c o o t c d - s o - C p i u a h c r c n o a e t d l m d s s - steel i Employment: 1920 103.1 110.3 110.4 100.5 98.5 103.0 96.2 107.0 102.3 110.5 95.6 ' 91.7 104.5 98.9 101.0 1921 82.1 66.7 66.5 95.7 96.7 94.4 80.6 77.9 62.0 95.9 86.6 81.9 88.4 97.8 76.5 1922 90.4 77.5 76.8 99.7 98.1 101.7 102.2 77.4 83.3 99.1 87.9 91.1 104.6 94.8 73.0 1923 103.9 98.6 98.4 107.5 110.0 104.4 108.1 105.7 116.1 104.7 94.0 99.2 122.0 93.7 81.0 1924._ 94.9 87.3 86.9 95.4 95.9 94.7 102.6 90.3 108.0 104.2 91.0 88.0 119.5 88.8 74.0 1925 95.4 88.6 87.9 96.7 98.0 95.0 100.6 85.9 122.8 105.0 86.9 89.1 121.0 87.1 74.8 1926 95.6 92.8 92.4 93.3 94.6 91.6 99.4 85.4 124.1 107.9 86.2 87.3 123.3 81.0 76.9 1927 91.9 86.8 86.5 94.2 96.9 90.7 91.6 77.1 113.3 108.2 86.1 , 85.4 117.0 79.6 77.0 1928 90.0 85.7 85.5 89.3 90.8 87.4 87.5 71.3 138.1 107.4 85.3 80.8 109.8 78.1 76.4 1927—January 92.4 i! 88.9 88.7 95.2 97.6 ! 92.2 92.9 79.8 104.2 108.8 85.1 88.5 109.6 73.5 77.6 February. _. 93.6 j 90.1 90.1 96.9 98.5 ! 94.7 91.8 79.2 117.3 109.0 84.9 110.1 79.0 77.8 March 93.9 ! 90.6 90.3 96.6 98.3 I 94.5 91.2 78.0 122.4 109.0 84.1 , 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 86.7 85.3 119.5 80.3 75.0 August 91.2 85.2 85.0 92.3 95.6 88.2 92.3 76.7 114.3 106.9 85.8 . 88.2 120.2 74.4 75.3 September.. 91.9 85.1 84.7 93.9 96.5 90.5 93.0 76.1 111.0 107.8 88.7 : 88.5 119.3 83.5 76.9 N D O o c e t c v o e e b m m er b b e e r r . . . . 9 9 8 1 0 9 . . . 7 2 1 8 8 81 2 4 . . . 9 8 5 8 8 8 4 1 2 . . . 0 4 3 9 9 93 4 4 . . . 6 2 5 9 9 96 7 7 . . . 4 0 2 9 9 8 1 9 0 . . . 9 4 3 9 9 8 1 2 8 . . . 3 5 2 7 7 7 2 5 3 . . . 0 4 5 1 1 1 0 0 0 0 9 5 . . . 7 9 0 1 1 1 0 0 1 9 8 0 . . . 7 6 1 8 87 9 . . 7 2 : 8 8 79 6 1 . . . 8 5 5 1 1 1 1 1 0 4 6 9 . . . 7 2 0 8 8 8 4 5 0 . . . 6 3 3 7 7 7 8 7 7 . . . 5 8 2 86.7 i 1928—January 87.9 80.9 80.7 92.9 95.1 84.9 70.5 114.0 108.6 83.8 : 83.2 101.6 73.8 75.1 February.. _ 89.4 83.0 82.7 93.8 95.1 92.3 85.0 70.4 124.8 108.1 84.8 84.6 101.9 77.1 77.2 March 84.3 84.0 92.9 93.6 92.0 86.0 71.3 130.2 107.0 84.4 84.1 105.7 77.9 76.9 April .84.6 84.2 90.0 91.0 88.7 87.0 72.0 133.6 105.9 82.8 79.8 109.1 76.0 76.7 May 89.5 ! 85.3 84.9 87.8 86.3 87 0 72.5 141.2 106.3 83.0 77.7 113.8 76.8 74.5 June 89.6 ! 85.5 85.0 87.4 85.9 87.7 72.7 141.1 106.1 84.2 77.6 114.9 77.5 75.1 July 88.5 \- 84.7 84.6 84.5 86.2 82.2 86 7 71 7 141.0 106.1 84.4 81.2 112.8 73.4 73.9 August 90.0 i 86.0 86.0 85.3 86.3 84.1 89.1 71.6 149.9 106.3 83.9 82.9 115.7 79.0 73.9 September.. 91.2 | 87.2 87.2 86.8 87.0 86.6 89.6 71.2 154.2 106.7 86.8 83.1 114.6 80.6 77.0 October 92.0 j 88.2 88.2 89.4 90.8 87.6 89.5 70.6 152.1 108.1 88 7 81.8 112.1 82.6 78.4 November.. 91.6 I 89.2 89.1 90.2 92.9 86.8 89.7 70.5 138.4 109.5 88.3 77.1 109.3 82.4 79.1 December._ 91.3 I 89.4 89.4 90.6 93.8 86.4 87.4 70.4 136.6 109.5 88.5 76.6 106.2 79.8 79.0 Pay rolls: 1920 123.5 127.0 126.5 121.4 119.9 123.3 125.2 123.2 120.0 135.3 112.8 , 106.0 129.3 116.4 124.6 1921 83.5 60.7 60.0 102.6 100.6 104.9 79.3 83.1 64.0 114.5 96.4 87.8 93.8 98.3 84.9 1922 89.2 69.5 68.4 102.5 98.0 108.1 93.3 81.4 88.0 118.5 93.0 94.5 103.0 92.1 81.7 1923 113.1 102.3 101.9 117.5 119.9 114.6 112.8 111.7 134.6 131.3 104.2 104.5 142.2 96.0 101.4 1924 103.9 90.3 89.9 102.5 103.4 101.4 110.0 94.9 124.1 134.6 103.2 91.9 148.0 93.0 96.7 1925 107.2 93.9 93.2 106.5 107.8 104.8 110.3 91.8 151.5 138.7 100.0 92.9 148.7 90.7 98. e 1926 109.0 100.1 99.6 i 102.4 103.8 100.6 112.2 92.3 148.0 147.7 101.0 90.8 152.0 86.1 104.6 1927 105.0 92.8 92.2 I 104.8 107.4 101.6 104.6 85.2 133.7 149.7 101.7 88.4 144.4 84.1 108.4 1928 103.9 94.2 93.4 96.8 97.4 96.1 99.4 78.8 169.4 147.7 101.4 81.0 134.9 81.3 108.0 1927—Janunry 102.0 94.1 93.8 105.3 107.6 102.6 101.6 84.6 94.0 150.3 99.3 90.0 129.5 76.2 107.0 February._ 108.6 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 110.0 100.7 100.1 110.8 111.3 110.3 104.6 87.0 153.4 152.2 99.1 93.2 144.9 80.9 111.7 April 108.5 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- 101.1 87.4 86.7 99.1 102.8 94.6 101.1 83.0 125.2 145.4 103.1 90.2 143.7 85.7 103.6 August I 104.4 90.3 89.8 102.7 105.8 98.9 105.5 85.4 136.3 147.2 101.7 97.^5 149.0 79.7 105.2 September.. 103.8 88.1 87.3 104.8 107.3 101.9 107.1 81.3 128.7 148.9 104.4 95.2 145.7 90.5 105.7 October 105.1 89.0 88.2 106.9 108.9 104.3 109.0 83.6 133.6 151.0 104.8 88.5 145.0 91.3 110. a November- 101.0 86.0 85.2 101.6 104.5 98.1 106. 3 82.2 117.6 149.0 103.0 76.8 140.8 90.5 109.7 December.. 101.9 87.5 86.6 103.6 106.1 100.6 103.1 80.2 127.8 152.7 102.2 77.8 133.6 87.0 112.4 1928—January 97.8 84.7 84.1 I 100.2 100.3 100.0 91.9 75.1 127.2 148.8 99.0 83.5 122.1 78.1 106. a February... 103.5 91.9 91.2 ! 103.5 102.4 104.8 96.1 78.2 160.0 147.5 100.8 88.9 123.8 78.1 109.3 March I 104.9 93.9 93.3 I 101.9 100.3 103.9 98.1 80.4 168.9 147.7 100.4 87.5 128.7 79.4 110.2 April I 102.6 92.9 92.2 94.7 95.5 93. 98.3 81.2 171.8 146.7 96.5 75.3 134.6 73.8 108.8 May 103.7 95.1 94.3 93.4 95.3 91.1 98.8 80.7 178.8 146.7 99.0 72.7 140.9 77.3 106. 6- June 103.6 94.5 93.7 93.5 94.2 92.6 99.9 81.3 169.5 146.7 101.3 76.3 141.3 82.5 106.1 July 100.1 90.0 89.3 88.7 90.2 86.9 96.4 76.5 166.0 144.6 101.4 82.6 136.1 78.1 103.4 August 103.9 94.1 93.3 91.7 91.4 92.0 100.3 77.0 184.9 144.5 100.1 88.0 143.3 81.6 104.0 September. . 105.0 94.3 93.5 94.4 93.3 95.7 102.6 75.7 185.8 146.8 103.4 87.2 139.6 85.4 105.7 October 109.3 99.6 98.7 100.5 100. 5 100.6 105.5 80.2 193.3 149.6 105.6 84.0 140.8 87.6 112. 3 November.. 105.9 99.2 98.4 97.9 100.7 94.3 104.2 79.7 165.0 149. 104.3 70.2 135.4 86.5 111.5 December.. 106.6 99. 99.0 101.0 104.3 96.9 100.7 79.6 '• 161.9 153.0 105.5 75.2 131.7 86.7 111.2 I 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

120 FEDERAL RESERVE BULLETIN FEBRUARY, 1929 BUILDING BUILDING CONTRACTS AWARDED [Index numbers based on value of contracts. Monthly average, PER CENT PERCENT 1923-1925=100] 200 200 Without seasonal With seasonaI adjustment adjustment Month 150 \ 1925 1926 1927 1928 1925 1926 1927 1928 u January 75 111 94 104 101 146 123 137 100 1 100 February 76 106 96 113 104 145 131 155 March 120 146 151 144 107 128 131 125 v April 138 139 147 157 112 120 128 136 May 124 134 135 163 115 125 126 152 June 137 133 154 158 125 125 144 148 July 133 126 130 142 128 124 128 139 50 50 August . 149 148 135 126 135 131 119 111 September 138 137 127 143 135 130 121 136 BUILDINGCONTRACTSAWARDED October 129 126 137 145 129 126 137 145 — 1*fiMSeosona/Acf/ustment November 116 119 114 115 127 130 125 126 WVMoutAdjustv/)ent December 129 131 116 105 138 136 121 *116 Annual index 122 129 128 135 1924- 1925 1926 1927 1928 ' Revised. BUILDING CONTRACTS AWARDED, BY FEDERAL RESERVE DISTRICTS [Value of contracts in thousands of dollars] Federal Reserve District Month 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 St. Louis M ap in o n li e s - K C an it s y as Dallas I 1927 November.. 466,393 40,070 132,481 30,138 39,136 24, 811 39,151 84,182 27,793 7,138 16,516 24,977 December... 477,364 29,407 130,346 28,634 35,275 37,285 24,816 126,841 33,352 4,473 12,316 14,619 1928 January 427,169 33,410 133,271 35,765 26,403 27,607 27,696 77,806 29,187 4,428 13,318 . 18,278 February-_ 465, 331 21,826 140,227 34,980 37, 841 22, 301 23, 376 108,789 35,294 3,968 13,793 22,936 March 592,567 39,694 155,154 46,317 66,821 42,061 29,826 40,626 8,339 33,174 22,463 April - 643,137 42,957 154,369 60,982 70,184 66, 591 24,371 128,643 43,818 10,249 20,658 20,315 May 668,097 56, 097 188,687 49, 743 63, 813 39,421 32,497 139, 784 36,360 13,178 20,199 28, 318 June 650,466 38, 519 178,448 48, 698 69,605 46,227 28, 600 128,607 44, 225 11,042 28,070 28,426 July 583,432 34,456 139, 821 41,259 56,103 32,884 31,996 140,689 50, 557 11,088 23,807 20,771 August 516,970 36, 370 129, 524 33,967 50,408 30,172 28, 548 108, 306 40,706 12,944 26,177 19,847 September.. 587,674 69,918 156, 588 45,634 67, 748 39, 843 25,989 99,176 33,241 9,213 22, 611 17,715 October 597,104 39, 521 189,696 46,098 57,118 40, 329 36,097 110,795 32,409 12,645 15,699 16,697 November.. 471,482 29,154 136, 525 28,017 56, 684 33,621 18, 550 99,429 27, 302 7,'"' 13,908 20, 397 December.. 432, 756 26,405 140,159 32,082 31,755 29,973 23, 362 76,924 31, 378 16, 511 18, 323 BUILDING CONTRACTS AWARDED, BY TYPES OF BUILDING BUILDING PERMITS ISSUED, BY FEDERAL RESERVE [Value of contracts in thousands of dollars] DISTRICTS [Value of permits in thousands of dollars] Public Month d R en e t s i i a - l in t d ri u a s l - m C e o rc m ia - l p w a u o n b r d l k i s c E ti d o u n c a a l - o A th l e l r Number Decem- Novem- Decemutilities Federal reserve district of cities ber, 1928 ber, 1928 ber, 1927 1927 November 214,963 52,890 43, 521 76,089 31,741 47,189 United States. 168 205,462 207,603 234,216 December ._ 207,281 29,989 86, 933 92,657 23,248 37,256 Boston. 14 7,224 10,377 11,543 1928 New York.._ 22 60, 700 70,161 95,643 January 193,189 37,970 68,852 72,039 23.369 31,750 Philadelphia. 14 9,453 12,971 8,605 February 238,985 34,881 57,695 59, 980 18,651 55,139 Cleveland 12 17, 257 11,418 17,830 March 275,192 48,804 73,075 110,338 33,881 51,277 April 276,586 85,093 82, 758 117,401 32,885 48,413 Richmond- 15 11, 783 13,266 5,316/ May __ 288,826 37,146 91,200 150,223 47,851 52,851 Atlanta 15 11,429 5,450 6,637 June 258,084 63,537 93,942 130,852 46,135 57,917 Chicago 19 42, 692 39, 597 45,589 July 228, 703 31,400 95,697 137,075 36,926 53,632 St. Louis._. 5 5,009 7,514 >3,921 August 213,705 42,607 58,911 118,890 35, 713 47,144 September 202,807 114, 780 60,068 119,014 38,801 52,205 Minneapolis-.. 2,047 3,651 2,045 October.. 239,692 62,259 67,330 148,697 31,293 47,833 Kansas City__. 7,550 6,486 9,081 November 200,226 38,665 68,309 93,228 30, 023 41,032 Dallas 9,200 7,844 7,630 December 178,323 38,248 66,773 80,194 25.370 43,849 San Francisco.. 21,119 18,869 20,376 NOTE.—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

FEBRUARY, 1929 FEDERAL RESERVE BULLETIN 121 TRADE AND DISTRIBUTION FREIGHT-CAR LOADINGS, BY LINES [Index numbers, adjusted for seasonal variations. 1923-1925=100] Grain Mer- Total p g u a r r c n o a t d i d s n - s L t i o v c e k - Coal F p o u r r c o e t d s s - t d m i c s a h i e s n a l c d . n e c - l . - l. laneous Annual indexes: 1925 I 103 97 95 99 100 105 1926-_ i 107 101 93 111 98 108 1927 I 103 100 90 102 92 107 1928 ' 104 105 89 98 90 108 1928—January ' 100 102 91 94 90 106 February i 102 108 101 96 93 106 March • 103 116 96 96 89 108 April ; 104 109 89 99 85 108 May ! 106 102 88 101 90 110 June..__ ; 102 89 86 90 88 107 RAILROAD FREIGHT CAR LOADINGS July • 102 109 80 88 89 109 Adjusted for Seasonal Variations, \S23-2S-\Q0 August : 104 102 82 96 92 111 September : 106 109 93 102 91 111 October j 106 106 92 102 92 111 November ' 103 106 82 104 90 106 1924 1925 1926 1927 1928 December I 102 104 83 102 89 107 For description and early figures see p. 562 of August, 1927, BULLETIN. INDEX OF WHOLESALE DISTRIBUTION—NINE LINES OF TRADE [1923-1925 average=1001 Sales with seasonal adjustment Month 1923 1924 1925 1926 January 102 103 102 February 100 102 101 March... _ 104 94 100 April 100 99 100 May 103 95 99 June 102 91 100 July 101 93 102 August.- _ _ 103 95 101 September 99 101 100 October- 103 99 105 November 100 99 100 December 95 101 98 Annual average 222^ Sales without seasonal adjustment 1927 1928 1923 1924 1925 1926 1927 1928 94 94 93 94 93 94 86 87 95 97 96 98 97 97 91 93 96 93 114 102 109 107 103 99 93 89 97 96 98 94 90 86 99 95 96 94 87 90 91 88 89 99 93 89 92 82 91 91 87 84 97 95 93 92 86 94 91 88 87 97 100 98 115 105 113 107 111 108 100 96 94 115 118 117 117 112 109 94 91 95 123 118 124 111 106 111 98 95 97 100 97 99 97 93 95 95 93 92 82 88 89 84 82 81 101 98 101 98 95 94 SALES IN INDIVIDUAL LINES OI'TRADE With seasonal adjustment Without seasonal adjustment Month c G er r i o e - s Meats g D oo ry ds M cl i o n e t g n h ' - s W c e l i o n n o t g ' m 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 it u u r r - e c G er r i o e - s Meats g D oo ry ds M cl i o n e t g n h ' - s W c e l i o n n o t g ' m 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 it u u r r - e 1927 November— 94 105 89 86 67 105 100 112 100 100 101 88 61 45 110 98 113 105 December.. 92 109 87 93 61 101 97 106 89 90 103 70 48 39 82 90 99 83 1928 January 93 106 89 99 70 115 92 108 89 85 106 85 76 65 94 82 106 78 February 98 113 88 99 70 110 93 110 96 85 108 89 128 88 87 82 101 96 March 97 109 83 94 55 96 91 110 95 95 105 87 131 89 111 95 121 107 April 93 112 78 77 57 94 86 111 87 88 105 70 75 53 99 88 113 88 May 99 109 86 96 62 113 94 117 92 96 109 75 57 35 114 97 110 87 June 94 112 79 76 49 82 92 110 94 97 114 71 39 21 77 96 104 83 July 91 111 80 79 83 123 91 107 95 92 113 74 68 46 98 90 102 78 August 100 116 90 90 68 109 94 117 106 101 118 110 148 93 119 95 115 108 September.. 92 122 84 89 62 90 92 112 112 100 130 105 137 88 110 100 119 126 October 95 111 85 99 62 87 97 116 110 108 125 99 123 100 108 108 134 131 November.. 94 122 91 95 55 100 99 113 105 100 117 90 66 38 105 97 114 110 December-. 89 115 86 101 54 72 93 128 98 87 109 69 51 34 59 86 120 92 Annual average 95 113 85 91 62 88 93 113 99 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. 31379—29 3 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

122 FEDERAL RESERVE BULLETIN FEBRUARY, 1929 DEPARTMENT STORE SALES: INDEX OF SALES, BY FEDERAL RESERVE DISTRICTS [1923-1925 average=100] Without adjustment for seasonal variations 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 ^ j ™ ^ Dallas F c S r is a a c n n o - 1919 94 93 1920 113 105 117 83 1921 86 96 82 ' 90 97 97 79 1922 87 90 85 89 93 90 83 1923 100 97 100 98 99 96 96 1924 99 99 98 98 98 95 ; 100 99 1925 101 104 102 104 : 103 102 100 104 105 1926 103 107 106 111 i 105 95 109 110 1 1 9 92 2 7 8 1 10 0 3 5 1 1 0 0 5 6 1 1 0 0 7 7 1 12 1 1 2 1 1 0 0 3 4 9 8 7 7 ' j • 9 9 5 7 I 1 1 0 0 6 8 1 11 1 6 3 1927 January. _ 85 84 85 84 79 j 81 80 87 February 83 78 90 83 76 76 86 85 March.... 98 99 108 98 I 92 89 97 109 April 116 110 109 117 108 ! 104 98 109 115 May 105 103 108 108 96 I 91 88 112 107 June 99 100 99 107 93 i 91 86 95 95 July 78 72 76 82 68 j 75 68 69 89 August 93 80 86 99 90 ' 92 83 80 114 September 95 91 97 114 97 93 96 105 111 October 113 121 128 119 127 109 106 125 119 November 112 125 119 125 120 100 110 120 121 December. 176 195 191 189 177 155 165 189 195 1928 January 85 81 85 91 82 February. 85 82 91 94 j 85 77 92 March 101 105 110 115 ! 105 93 109 110 April. 101 99 102 113 ! 99 93 102 114 May 106 106 114 122 • 104 94 116 116 June 100 102 98 114 94 84 98 I 101 July 78 75 77 91 73 71 71 94 August 85 78 101 83 85 80 116 September 101 96 135 107 102 112 ! 113 October 112 125 123 132 ; 119 110 125 ! 129 November 110 127 120 136 ; 119 i 111 126 118 December 174 197 180 203 175 I 137 166 186 195 Adjusted for seasonal variations i San Boston d P e h l i p l h a i - a C l l a e n v d e- m Ri o c n h d - Atlanta Chicago apolis F ci r s a c n o - 1927 January 106 114 111 96 105 107 107 105 100 98 105 112 February. _ 107 104 109 97 106 104 109 114 103 103 108 111 March 105 104 107 96 103 102 105 114 101 99 100 112 April 105 102 107 98 107 105 104 106 101 92 108 114 May 103 102 104 96 103 105 105 107 98 90 108 106 June 103 105 111 96 99 99 105 107 98 91 99 103 July 104 105 108 96 107 103 105 112 100 97 100 111 August 111 112 119 100 110 111 110 120 117 103 110 116 September. 108 110 117 98 102 103 107 114 96 95 | 102 120 October 106 104 108 98 102 105 106 109 110 99 I 106 112 November. 107 107 113 95 103 104 104 115 105 94 S 106 117 December.. 111 107 115 102 108 108 114 117 106 ioi! 115 117 1928 January 105 108 108 89 104 103 107 113 104 I 86 107 114 February. _ 105 100 109 89 103 105 108 115 101 ! 94 106 115 March 105 98 106 94 102 105 113 118 105 95 109 110 April 104 97 106 91 100 102 103 110 100 78 108 121 May 104 98 107 92 100 104 107 116 103 85 107 111 June 105 106 114 94 100 101 104 115 99 84 103 109 July 108 108 112 95 106 107 106 124 108 89 103 118 August 106 104 111 89 101 109 110 123 108 89 110 119 September. 120 113 127 108 114 114 112 141 110 102 113 127 October 105 103 110 99 97 104 98 116 99 77 102 116 November. 107 106 114 89 101 106 105 124 104 83 111 114 December.. 117 111 122 105 111 113 112 131 108 92 118 122 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

FEBRUARY, 1929 FEDERAL RESERVE BULLETIN 123 DEPARTMENT STORE STOCKS: INDEX OF STOCKS, BY FEDERAL RESERVE DISTRICTS [1923-1925 average =100] Without adjustment for seasonal variations j U S n ta i t t e e s d Boston Y N o e r w k d P e h l i p l h a i - a C l l a e n v d e- m Ri o c n h d - Atlanta Chicago St. Louis M a i p n ol n i e s - K C a i n t s y a i s las F c S r i a a sc n n o - ANNUAL INDEXES 1919. 79 83 79 63 77 82 90 89 74 1920 105 i 97 108 77 106 107 113 111 120 96 1921 89 |! 88 92 83 90 88 98 i 81 82 94 97 85 1922 88 ! 94 92 89 86 90 96 i 81 82 93 91 88 1923 _ 98 J 100 98 98 97 101 103 j 97 93 99 97 97 1924 101 100 99 101 102 100 101 ' 101 103 100 99 102 102 1925 101 j| 100 103 101 101 99 96 I 102 104 101 100 101 101 1926. 103 ii 100 106 100 101 102 98 ; 104 105 96 114 95 104 1927 102 103 104 99 101 103 ioi j 101 101 89 113 88 106 1928... 100 100 104 92 98 100 101 104 94 82 114 82 106 MONTHLY INDEXES 1927 January 92 91 98 91 87 91 ! 90 92 90 81 96 77 97 February 97 95 97 95 96 97 , 100 97 95 87 109 85 102 March 106 105 107 105 105 107 ; 108 105 102 94 116 92 109 April 106 107 109 103 106 107 110 105 103 95 115 93 110 May 103 106 105 98 102 104 103 101 102 91 112 90 107 June 97 99 98 92 98 98 92 95 97 84 104 83 103 July 94 95 95 89 93 94 91 93 95 83 101 79 101 August 97 94 99 91 97 93 i 96 99 97 87 116 88 103 September 107 106 108 101 107 107 107 108 108 94 123 96 108 October 113 113 116 111 112 118 112 114 112 97 129 97 113 November.. _. 116 118 117 114 116 122 115 116 112 97 128 98 119 December 96 101 99 95 93 97 90 93 93 78 102 74 100 1928 January 91 93 96 88 89 89 92 92 84 78 98 75 98 February 97 97 97 93 96 96 101 99 93 85 111 83 105 March 103 105 105 98 103 103 105 105 96 88 118 86 111 April 104 107 108 97 103 104 108 107 i 98 89 116 87 111 May 101 106 104 93 100 100 103 103 1 96 83 116 83 108 June 95 97 99 87 94 95 96 96 ! 91 79 108 76 103 July 92 91 96 85 91 91 93 93 i 87 78 106 72 101 August _. 96 91 101 86 95 92 95 102 ! 93 81 118 83 104 September 101 98 106 92 100 102 104 109 i 98 84 123 88 106 October _. 110 107 117 101 108 116 109 120 ! 104 87 129 92 112 November 113 113 122 104 111 118 110 122 i 104 86 128 92 116 December 92 95 101 83 91 96 91 72 102 69 96 Adjusted for seitsonal variations U S n t i a t te e s d Boston Y N o e r w k d P e h l i p l h a i - a C l l a e n v d e- m Ri o c n h d - Atlanta Chicago St. Louis M a i p n ol n i e s - Dallas F c S r i a s a c n n o - 1927 January- __ _ 103 101 106 99 103 104 97 104 103 91 89 105 February 102 101 105 100 101 102 102 102 101 90 88 106 March 103 103 105 100 101 103 105 102 ' 100 91 90 107 April _ 102 104 105 99 99 102 105 101 ! 9.8 92 88 104 May 101 105 105 98 98 103 102 100 ! 100 88 89 306 June .. 100 103 103 97 99 102 97 100 ! 101 87 89 106 July 101 104 104 97 100 103 99 101 ' 101 88 85 105 August 101 102 105 97 101 101 98 100 j 97 88 86 104 September. 103 102 103 97 103 102 101 102 102 90 88 104 October 103 102 104 100 102 104 101 103 101 88 88 105 November 103 102 103 100 104 105 105 104 101 88 89 109 December 102 103 103 99 101 103 101 100 102 86 85 110 1928 January.. _____ ___ 102 102 104 96 104 102 101 103 97 87 86 107 February 102 103 104 98 101 101 103 104 j 99 88 86 109 March 100 103 103 93 99 100 102 102 94 85 84 109 April __ _ _ 100 103 104 93 96 99 103 103 94 86 83 106 May 99 105 104 93 96 99 102 102 94 81 81 107 June. _ 98 101 103 91 95 99 101 101 95 81 81 106 July 99 100 105 93 98 100 101 102 93 83 78 105 August 100 98 106 92 98 100 97 103 93 82 81 105 September 98 94 101 88 96 97 98 103 93 80 81 102 October 100 97 106 92 98 101 98 108 94 79 83 104 November 100 97 107 92 100 102 100 109 94 78 83 106 December.. 98 97 105 86 99 102 102 105 93 ! 80 79 105 1 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

124 FEDERAL RESERVE BULLETIN FEBRUARY, 1929 SALES OF MAIL-ORDER HOUSES AND CHAIN STORES [Index numbers of sales. Monthly average 1923-1925=100] Sales without seasonal adjustment Sales with seasonal adjustment Chains Chains 1 Mail- Mailorder order ho ( u 4 s ) es G c (3 e r 4 r o y ) - 1 5 0 - ( a - 1 c n 4 e d ) n - t p A a (5 r p ) e - l D (1 r 3 u ) g C ( i 4 g ) ar S ( h 7 o ) e Ca (4 n ) dy ho ( u 4 s ) es G c ( e 3 r 4 r o y ) - 1 5 0 - ( a - 1 c n 4 c ) d n - t p A a (5 r p ) e - l D (1 r 3 u ) g C ( i 4 g ) ar S ( h 7 o ) e Ca (4 n ) dy ANNUAL INDEXES 1 1919 93 45 53 36 64 72 76 53 1920 96 66 64 52 78 96 91 73 r~::__ 1921 67 59 66 59 79 95 86 75 i 1922 73 69 74 64 82 93 86 77 1923 92 85 88 83 93 98 93 93 1924 98 97 99 98 98 100 101 101 1925 110 118 113 119 109 102 106 106 1926 115 143 125 149 126 111 113 114 1927 120 174 138 189 143 111 115 119 1928 137 208 150 225 166 107 125 125 MONTHLY INDEXES 1927 January 103 155 96 100 134 97 82 95 111 157 130 163 140 113 111 120 February 101 148 104 114 129 99 84 103 112 155 133 173 139 115 121 121 March 125 174 116 148 143 111 96 115 117 163 128 175 139 113 104 116 April 120 172 135 199 144 113 150 136 113 166 137 192 144 115 117 127 May 99 171 123 171 134 113 109 115 118 171 132 172 137 113 99 120 June 107 178 123 172 136 109 118 114 121 178 135 175 138 112 108 121 July 93 166 121 157 141 111 109 112 127 176 139 199 144 114 124 119 August 105 170 130 165 140 106 101 110 133 179 140 193 139 107 121 110 September 118 171 128 198 137 106 108 119 122 182 141 192 141 107 115 118 October 147 190 153 250 151 111 121 124 117 1 187 144 191 152 109 112 122 November 149 188 146 250 144 105 118 125 119 i 185 140 198 152 109 112 124 December 167 204 279 1 350 182 156 178 164 128 188 147 215 148 111 130 115 i 1928 January 105 87 104 121 146 90 87 100 113 189 140 197 153 105 118 126 February _. 108 193 115 137 ! 148 96 86 106 115 194 142 201 153 107 120 120 March 125 227 133 200 163 107 117 119 113 213 142 224 158 109 119 120 April 115 202 135 195 155 100 130 130 117 203 147 205 161 105 109 125 May 115 214 139 221 164 110 130 127 132 206 144 213 161 105 113 127 June _ 127 208 139 216 162 108 147 122 144 209 153 219 164 111 134 129 July 112 198 128 180 163 100 116 117 153 209 148 228 167 103 132 125 August 127 205 133 197 169 104 110 123 160 215 147 230 169 105 132 122 September 143 200 144 246 164 105 131 122 154 222 165 248 177 111 146 127 October 183 228 164 289 : 169 107 126 134 140 216 148 213 164 102 113 127 November 176 218 158 289 169 107 130 130 141 214 151 229 178 111 123 129 December.._ 208 220 305 413 224 155 184 170 165 211 164 258 190 115 140 125 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

125 FEBRUARY, 1929 FEDERAL RESERVE BULLETIN BANK SUSPENSIONS AND COMMERCIAL FAILURES BANK SUSPENSIONS,! BY CLASS OF BANK COMMERCIAL FAILURES, BY CLASS OF ENTERPRISE » [Amounts in thousands of dollars] [Amounts in thousands of dollars] AH banks Member bank; Non b m an e k m s ber Number Liabilities Month N b u e m r - p T o d o s e i t - t a s l 2 N b u e m r - p T o d o s e i t - t a s l 2 N b u e m r - p T o d o s e i t - t a s l 2 Total M '- a 7 n - u- i i n Tr g ad b A ro e g t k e c. n er ts s , , Total M fa i c a n t n g u u r- - T i r n a g d- b A ro e g k t e c n er ts s , , 1927 N D S O e o e c p c t v o t e e e b m m m e b r b b e e e r r r 1927 _ 1 1 1 8 1 , , , 4 2 5 7 1 4 6 0 2 3 3 1 1 , , , , 3 7 1 2 1 5 2 0 0 7 9 5 8 7 7 7 , , , , 1 1 8 7 0 6 1 3 5 6 3 1 J A F M M a e p a n a b r r y u i r c l u a h a ry ry .. . . . 2 2 2 1 1 , , , , , 8 9 1 4 0 5 6 3 4 6 2 8 5 3 5 4 4 4 5 1 9 0 4 1 2 1 4 1 1 1 1 , , , , 5 8 3 2 0 4 4 9 8 2 2 2 1 1 1 1 1 1 1 2 0 3 6 6 2 6 4 4 5 5 5 3 7 7 6 3 1 , , , , , 9 1 2 8 7 4 5 9 9 8 1 6 0 1 5 2 2 1 1 1 2 5 0 9 3 , , , , , 9 8 3 2 5 9 0 6 7 1 6 2 8 8 8 2 2 2 2 1 3 4 2 8 9 , , , , , 4 5 3 9 1 0 3 0 7 9 6 0 8 8 1 1 4 6 7 5 3 , , , , , 7 0 3 5 0 6 3 0 7 1 4 5 2 0 7 Total, 12 months. 662 193,891 124 66,336 538 127, 555 J J u u n ly e 1 1 1 , ,7 8 5 3 6 3 4 44 2 8 7 1 1, , 1 3 8 1 7 0 1 9 2 6 1 4 3 3 4 , ,4 1 6 5 5 0 1 16 3 , , 5 7 8 4 7 3 1 1 7 6 , ,8 8 3 5 2 6 9 3 , , 5 0 7 2 5 2 J A F M a e p n a b r u r i r c l a u h r a y ry. 1 _ 928 2 1 1 9 0 2 9 , , , , 9 7 4 7 1 2 4 6 0 1 3 7 1 4 3 3 0 , , , , 3 4 3 0 5 7 6 8 3 6 1 2 1 1 6 9 5 0 , , , , 5 2 6 0 4 6 8 7 5 9 5 0 A D S N O e u e o c p c g t v o t e u e e b m m s m e t b b r b . e e e .. r r r . . ! | i 2 1 1 1 1 , , , , , 1 8 7 7 5 6 8 0 7 6 4 7 8 3 2 4 4 4 3 5 7 3 8 8 9 8 8 8 9 7 1 1 1 1 1 , , , , , 4 1 2 1 3 7 7 7 0 4 6 0 1 1 1 1 9 3 0 2 1 6 5 1 9 0 5 3 3 3 3 2 6 1 9 6 , , , , , 1 0 1 7 2 9 6 4 8 3 6 2 7 6 6 2 1 1 1 1 9 5 2 4 7 , , , , , 0 9 1 3 7 2 2 3 4 8 4 1 4 9 6 1 1 1 1 1 4 4 6 6 2 , , , , , 7 9 0 7 6 4 3 5 0 5 9 3 2 2 7 4 9 5 6 5 , , , , , 4 5 3 3 4 7 4 8 0 1 3 5 5 5 2 J M un ay e 15 6 , , 9 2 6 0 8 9 2 1 , .6 2 9 8 9 7 1 4 3 , , 6 5 8 1 1 0 Total.. 23,146 5, 682 16, 082 1,382520,104 211,505 228,194 80,405 J A N S D O u e u o e c l p c t g v y o t e u e e . b m _ m s m e t . b r _ b b e e e r r r _ 2 1 6 8 6 9 8 1 , , , , , , 8 0 1 9 9 7 4 3 7 2 8 9 9 4 6 4 7 8 1 3 2 1 5 3 , , , , , 8 1 4 2 7 4 5 6 0 9 0 9 8 4 6 3 4 2 i j j 1 5 4 5 7 6 5 , , , , , , 6 4 0 9 5 1 0 4 3 8 9 9 8 3 4 0 2 4 J F M A M a e p n a a b r r y u 1 i r c 9 l u a h 28 r a y ry .. - . 2 2 2 1 2 , , , , , 1 6 2 8 0 7 1 4 3 0 6 8 3 6 8 ! 4 4 5 4 3 6 4 7 ! 8 6 0 1 1 1 1 1 , , , . , 9 5 5 2 4 4 8 6 7 0 6 1 6 6 7 1 1 1 1 1 4 2 2 1 3 4 7 4 0 1 4 4 5 3 3 7 5 7 4 6 , , , , , 9 8 1 6 0 8 1 1 3 7 5 4 4 7 1 1 ! ' ! 2 1 1 1 1 6 0 4 2 4 , , , , , 8 7 4 2 2 7 5 1 3 3 1 1 2 6 0 2 2 2 1 1 4 6 6 6 8 , , , , , 9 4 1 0 9 5 4 8 4 0 2 6 6 9 0 8 6 7 5 2 , , , , , 2 3 3 7 9 1 6 1 0 8 6 7 8 0 7 Total, 12 months. | 491 156,786 73 52,175 418 104,611 J J u u n ly e 1 1, , 7 9 2 4 3 7 1 j 4 51 5 3 0 1 1 , , 3 1 2 6 5 1 ! 1 1 1 0 1 9 2 2 2 9 9 , , 8 5 2 8 7 7 1 1 2 2 , , 9 7 3 2 2 31 1 3 2 , ,8 7 9 8 9 1 3 3 , , 3 7 2 5 4 5 August 1,852i 493 1, 241! 118 58, 202 16,877 19,096 22, 229 September 1, 635! 454 1, 073' 108 33,957 14,727 13, 567 5,662 BANK SUSPENSIONS i IN DECEMBER, 1928, BY DISTRICTS N O o c v to e b m e b r. e . r .. 2 1 , ,8 0 3 2 8 3 i 5 5 2 1 8 9 1 1 , , 3 2 6 0 9 2 ; ; 1 1 2 1 6 7 3 40 4 , , 6 9 0 9 1 0 1 1 3 5 , ,4 4 4 9 6 0 1 1 7 7 , ,2 2 2 6 4 8 4 7 , , 2 9 3 3 2 2 [Amounts in thousands of dollars] December. 1,943 498 1,324 121 40, 774 17, 783 18,933 4,059 Total..23,842 5,92416,4711 1,447 489,560182,478 225,301 81, 780 All banks M ba e n m k b s e 8 r Non b m an e k m s ber Federal reserve district COMMERCIAL FAILURES, BY DISTRICTS * Num- Total Num- Total Num- Total ber deposits2 ber deposits2 ber deposits2 [Amounts in thousands of dollars] Boston _ _ _ Number Liabilities New York Federal reserve P C h le il v a e d l e a l n p d h . ia 2 1 1,4 4 2 18 1 1 1 4 2 1 4 8 8 1 1,173 district Dec, ! Nov., Dec, Dec, Nov., Dec, Richmond 3 1,036 1 600 2 436 1928 : 1928 1927 1928 1928 1927 Atlanta 6 1,111 6 1,111 I Chicago.. . 2 348 2 348 St. Louis 3 267 3 267 Boston 153 207 202 2,958 3,379 4,432 Minneapolis 13 4,528 2 2,841 11 1,687 New York 542 418 407 17, 565 9,818 15,053 Kansas City 5 544 5 644 Philadelphia-_. 79 97 82 2,350 1,793 2,287 Dallas 7 1,304 3 749 4 555 Cleveland 134 134 202 1,394 2,614 3.455 San Francisco .- 2 821 2 821 Richmond 113 104 146 1,861 4,851 4,424 Atlanta 85 69 131 1,298 1,550 3,026 Total 444 11,798 10 5,204 34 6,594 Chicago 302 235 319 4,654 5,625 3, 597 St. Louis 103 125 84 1,477 5,740 2,923 Minneapolis... 56 55 118 448 711 1,126 1 Banks closed to the public by order of supervisory authorities or by Kansas City... 103 99 117 2,028 1,280 7,028 the directors of the banks on account of financial difficulties. Dallas 52 33 96 840 756 1.011 2 Figures represent deposits for the latest available date prior to the San Francisco.. 221 262 258 3,902 2,485 2,699 suspensions and are subject to revision when information for the dates of suspension becomes available. Total 1,943 j 1,838 2,162 40, 774 40, 601 51, 062 3 Includes 8 national banks with deposits of $4,905,000 and 2 State member banks with deposits of $299,000. 4 Includes 3 banks for which deposit figures are not available. i Figures furnished by R. G. Dun & Co. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

126 FEDERAL RESERVE BULLETIN FEBRUARY, 1929 FOREIGN BANKING AND BUSINESS CONDITIONS REPORT OF THE AGENT GENERAL FOR REPARATION PAYMENTS The report of the Agent General for Repara- equivalent to the year's receipts. Deliveries tion Payments, submitted to the Reparations in kind have considerably increased, in harmony Commission under date of December 22, 1928, with the increased shares of the creditor powers; and covering the fourth annuity year, presents and at the same time there has been a conthe figures of reparation payments and trans- tinuance of the tendency noted in former fers during the year, the situation of the Ger- reports, toward the transfer of an increasing man public debt, the development of the proportion of the annuity in foreign currencies. budget, German credit conditions, foreign During the fourth annuity year, the transfers trade, and business conditions in general. It in the various forms of foreign currency payalso reviews the development of the experts7 ments amounted in the aggregate to about plan as a whole from the time of its inaugura- 943,000,000 gold marks, or more than 54 per tion. Sections of the report dealing with cent of the total transfers, while transfers by credit and currency conditions and with the reichsmark payments within Germany, chiefly balance of payments (about one-fourth of the for deliveries in kind, amounted to 796,000,000, report) are given herewith: or about 46 per cent of the total transfers. During the year, moreover, the specific securi- The fourth annuity year brought to an end ties provided by the plan have continued to the so-called " transition period," and the execudevelop in a satisfactory way. The assigned tion of the plan has now entered upon the revenues are yielding, during the present first standard annuity year. The present refinancial year as in the previous one, a total port, therefore, affords the opportunity for a return which provides a margin of considerably general survey of the results that have been more than 100 per cent over the standard accomplished under the plan during the transibudget contribution of 1,250,000,000 gold tion period, viewed not merely against the marks; and the transport tax is producing each background of four years ago, when the reconyear the standard contribution of 290,000,000 struction of Germany was beginning, but also gold marks, with an increasing margin of in their bearing on the position of the German safety. The funds necessary to cover the economy at the opening of the fifth or standannual service of the industrial charge at the ard annuity year. full amount are also being realized regularly The fourth annuity payable by Germany through the Bank for Industrial Debentures; under the terms of the plan amounted to and during the fourth annuity year, though the 1,750,000,000 gold marks, as compared with industrial charge itself stood for the first time the annuity of 1,500,000,000 that was paid at the standard level, it proved possible for in the previous year and the standard annuity the Government, owing presumably to an of 2,500,000,000 gold marks that is payable increase in the working assets of industry, to in the fifth annuity year, which began Sepmake a material reduction in the rate of astember 1, 1928. With the exception of the sessment levied to produce the charge. The contribution from the German budget, which German Railway Co. is in a strong financial increases by 750,000,000 in the fifth year, all position, owing partly to the recent increase in the payments that go to make up the reparation its tariffs and also to the beginnings of imannuity were at their standard levels in the proved financial control; and the development fourth annuity year, and they included for of its business as a whole amply confirms the the first time the prescribed sums for amortiviews expressed in the previous report, as to zation of the German railway bonds and the the capacity of the railway company to carry German industrial debentures, which has now the full annual charge for the service of its begun at the standard rate. The experts7 plan has continued to operate reparation bonds, provided that it follows a prudent financial policy and that the rights of successfully in the field of reparation payments supervision and control reserved to the German and transfers. As in previous years, Germany Government are not exercised in such a way has made all the payments required by the plan, as to impair the company's ability to earn a and has made them loyally and punctually. fair and reasonable return on its capital. The transfer committee, on its part, has made transfers regularly and currently during the The German budget is still under the influyear, without disturbance to the German ex- ence of the tendencies toward overspending and change, to an aggregate amount substantially overborrowing to which attention was called in Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

127 FEBRUARY, 1929 FEDERAL RESERVE BULLETIN the memorandum of October 20, 1927, princi- revenues, notwithstanding the important repally the increasing expenditures resulting from ductions in taxation that have already been the sweeping increases in official salaries and made. The practical problem, however, is to pensions which were initiated in September, keep the Government's expenditures within 1927, and the continuing drain of the financial the limits of the available revenues, and the settlement with the States and communes, time is approaching when more vigorous which automatically deprives the Reich of the measures in this direction w^ill have to be taken. principal share in the improved revenues from The finance minister of the Reich has recogthe income and corporation income taxes. The nized, in recent statements to the Reichstag, cash position of the Reich is also under pressure the necessity of important reductions in exas a resuU of the overhanging burden of penditure in the coming financial year. He has extraordinary expenditures from previous years, also suggested the possibility of certain increases which were originally intended to be financed in taxation in order to bring the budget as by borrowing but which have had to be met in a whole into balance. Undoubtedly there are large part out of working funds now required reserve sources of taxation still available, and, for current purposes. The States and com- if need be, recourse could be had to some of munes, on their part, while drawing from the them. Undoubtedly, also, there are oppor- Reich this year under the present financial tunities for substantial reductions in expendisettlement about 600,000,000 reichsmarks more tures, not only on the part of the Reich itself, than in 1926-27, are still generally budgeting but also in the reform of the financial settlefor deficits and calling on the Reich for larger ment with the States and communes. Whether and larger payments to meet their own con- and to what extent increased taxation may stantly rising expenditures. The problem of prove to be necessary will depend upon the the financial settlement, in fact, is pressing practical progress that can be made in reducing more and more for solution, in order to main- public expenditures and in working out the tain the stability of the budget of the Reich; various internal adjustments that have to be and when the present settlement expires on made. But there is nothing in the budget March 31, 1929, there will be a fresh oppor- situation which will not yield to the application tunity, in the interests of the country as a of sound principles of budget making, and it whole, to provide a basis of settlement which, is primarily an internal problem for the while recognizing the legitimate needs of the responsible authorities to take the necessary States and communes, will assure to the Reich measures for bringing the budget into proper the necessary means to meet its own require- order. The great productivity of the revenues, ments and a proper control over the revenues even after far-reaching tax reductions, has which it has the responsibility of collecting. established beyond doubt the essential basis The experts, in April, 1924, referred to the for the sound development of the budget of the financial relations between the Reich and the Reich, and it remains clear, as stated in the States and communes as the "existing hole in previous report, that no question can fairly the budget/7 which "must be plugged"; and it arise, in the light of the practical experience is clear now that if the German Government, thus far, as to the ability of the budget of the after more than four years' delay, will take the Reich to provide the full amount of its standard practical steps in this direction that are neces- contribution under the plan. sary for the protection of its own budget, it The plan has realized the other main object can by this means alone save hundreds of for which the experts were originally appointed, millions of reichmarks of which it is now the stabilization of the German currency. The deprived by arbitrary transfers to the States reichsmark continues to satisfy all the requireand communes and at the same time bring ments of stability, as it has at all times since about, for the first time since stabilization, a the experts' plan went into operation. The regime of orderly budget making on the part of gold reserves of the Reichsbank now stand at the States and communes themselves. the highest point ever reached, and for the The necessity of a balanced budget is not in greater part of the past year the reichsmark question, and there is no doubt that the mate- has been one of the strongest currencies in the rial for budget equilibrium exists. The reve- world, from the standpoint of the foreign exnues of the Reich continue to show a favorable changes. There has been a further growth in development, and the most encouraging feature the volume of credit, but the supply from both of the whole four years from the standpoint of the domestic and foreign sources is not yet suffipublic finances is the great productivity of the cient to balance the demand except at high Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

128 FEDERAL RESERVE BULLETIN FEBRUARY, 1929 rates of interest. It is encouraging, however, German business conditions generally appear to observe that the rise in interest rates which to have righted themselves on a relatively high took place during the autumn in the principal level of activity. A year ago, it will be recalled, foreign markets has not been reflected in any German business was in the midst of a process further rise of interest rates in Germany. On of expansion which threatened to result in the contrary, except as the year-end settlements overproduction in certain of the principal inbegan to exert their usual pressure, German dustries. This expansion derived a special money conditions in the past few months have stimulation from the very free use of credit, and tended to become somewhat easier. The de- from the spending and borrowing policies of the mands for long-term credit from the public public authorities. Prices were rising, and authorities are still overtaxing the market, and these in turn called for wage increases which they have rendered more difficult the problem in many cases were promptly offset by further of supplying funds with which to make up price increases. As the year 1928 comes to a arrears of construction and to meet the special close it appears that this overexpansion has been requirements of agriculture. Borrowing abroad checked before it reached dangerous proporduring the last six months has taken the form tions, and that a condition of relative stability chiefly of short-term loans, the proceeds of has now been attained. The volume of inwhich have come to Germany in considerable dustrial production, after the moderate recespart in the form of gold. sion which took place early in the year, has More broadly, it appears that the tendencies proceeded as a whole on the general level toward overexpansion which had developed maintained in the early part of 1927, a period during 1927 have now been checked, and that already of very substantial output. Comin many departments of German economic life modity prices have become relatively stable. normal forces have again reasserted them- The general volume of consumption appears to selves. The fluctuations which were charac- have remained during 1928 at or about the high teristic of the period up to the spring of 1928 level of the year before, giving an impressive in the field of business activity, in foreign trade, indication of the improved standard of living in commodity prices, and in economic conditions among the great mass of the German populagenerally have much diminished in extent and tion. frequency during the past six months, and Great as the progress of Germany has been German production and trade, as well as credit during the last four years it is not to be supposed conditions, have taken on an aspect of greater that she has yet made up for the values steadiness than at any time since the war. All destroyed in the war or for the values which of this reflects the broader basis upon which would have been produced had there been no German business as a whole is now being war. But it should always be remembered conducted. that present dislocations and difficulties are not German foreign trade has made marked confined to Germany. The work of paying for progress toward reaching a position of stability the war even 10 years after its conclusion reand balance. The margin by which imports mains a heavy task for all the countries which have exceeded exports has gradually narrowed participated in it. Of all the former belligduring the past year, and in September, 1928, erents not one has yet freed itself from the the two were in substantial equilibrium, for the debts and burdens left over from the war, and first time since 1926. To some extent this all of them, though in different degrees, have improvement was due to a decline in imports, suffered from its inflationary consequences. but of greater importance in the long run was Moreover, the reconstruction of Germany, as the further growth of exports which have the experts said in their report, is not an end in reached the largest dimensions since stabili- itself but is a part of the larger problem of the zation. Thus exports and imports came into reconstruction of Europe. Since 1924, when equilibrium in September, 1928, at a level of stabilization was achieved and the execution of around 1,100,000,000 reichsmarks, as com- the expert's plan began, Germany's reconpared with the average level of a little more struction has at least kept pace with the rethan 800,000,000 at which equilibrium was construction of Europe as a whole, and it maintained in 1926. The October figures, has played an essential part in the general procowing to changes in the method of reporting ess of European reconstruction. which became effective on the first of the The developments which have thus been month, provide no basis for comparison, and summarized are discussed at length in the no conclusions can be drawn from them. following pages, not merely in relation to the Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

129 FEBRUARY, 1929 FEDERAL RESERVE BULLETIN events of the fourth annuity year but also turbance, had become a matter for administraagainst the background of four years ago, when tion along economic lines. The second was the reconstruction of the German economy that Germany had voluntarily accepted the was beginning. obligations which the plan imposed and, furthermore, that it was to Germany's own interest to carry them out. These two factors, along with measures already undertaken by the Germans VI. GERMAN CREDIT CONDITIONS AND THE themselves, provided the psychological basis CURRENCY for the rebuilding of German credit. Assur- * * * # * ances of a more tangible sort were given in the a. Phases of German credit development.— specific provisions of the plan, particularly The central problem which Germany faced those directed toward the correction of fundawhen she emerged from the inflation was that mental weaknesses in the existing economic of rebuilding her credit resources. The infla- structure. tion had scattered or destroyed them; funds It will be recalled that the first committee of were to be obtained at home only rarely and experts was invited to consider "the means of then at ruinously high rates of interest, and balancing the budget and the measures to be the ordinary sources of foreign credit were taken to stabilize the currency" of Germany. closed. The first efforts to stabilize the cur- On November 15, 1923, some 15 days before rency corrected these conditions only partially the Reparation Commission took its decision and it was not until stabilization was rein- to summon the experts, the rentenmark made forced and insured that German credit began its first appearance in Germany. It was introto attain its present position. The steps re- duced in the final stages of inflation for the purquired to bring about this result were laborious pose of providing a new form of currency which and often painful, but taken together they have it was hoped would remain stable. Two furnished the basis for the progress made in the months later, when the experts began their whole field of German economic reconstruction. inquiries, the domestic value of the rentenmark The term credit in this connection is not used was still stable, but that did not mean that the in any limited sense, but is meant to imply the currency was effectively stabilized. Instead, firm basis of mutual confidence which is es- the experts described it as being in a state of sential in the establishment of human relation- "unstable equilibrium" from which the eleships and the conduct of domestic and inter- ments of permanent stability were wanting. national business transactions. Credit so Nevertheless, even with this uncertainty the understood is not confined to material ques- general position was much improved. The tions of collateral and security, important as improvement was not owing to any technical these are, but involves at its very root the fac- merits of the rentenmark as currency, though tor of good will. Moreover, the factor of good its management commanded respect; the imwill, if it is to produce the results of which it is provement was due rather to the renewal of capable, must work both ways and be exerted confidence resulting from the appointment of from the side of the creditor as well as from the experts, together with fresh efforts on the that of the debtor. This two-sided exercise of part of the German Government to balance the good will was called for in a high degree by the budget and a new and vigorous policy at the experts' plan, both at the time when Germany Reichsbank. and the creditor countries accepted it and The experts regarded the two problems of throughout the four years of its operation. currency and budget as interdependent, neither Accordingly, it is appropriate to recall briefly, one of "them being soluble without the other. as a preliminary to the discussion of other The currency could remain stable only if the phases of credit development during the past budget was kept balanced, and, on the other four years, the special function of the experts' hand, the budget could remain in balance only plan with regard to German credit. if the currency was stabilized. The recom- 1. The experts' plan and German credit.— mendations of the experts for dealing with From the very outset there were two mam both problems are well known, and need not be features of the experts7 plan which were uni- reviewed here except in one or two particulars versally recognized and which exerted a potent of special relevancy to credit. force in the direction of rebuilding German In order to meet the currency problem, the credit. The first of these was that the pay- experts proposed that the Reichsbank should ment of reparations, long a factor of deep dis- be reconstituted and that with certain minor 31379—29 4 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

130 FEDERAL RESERVE BULLETIN FEBRUARY, 1929 qualifications it should have the exclusive right account, in the long run, should exceed the to issue paper money in Germany; its power to sums that could be transferred, provision was make loans to the Government should be made for dealing with the resulting accumulastrictly limited both as to amount and char- tion in the Reichsbank. acter, and its activities must be entirely free The experts7 plan thus laid the necessary from Government control or interference. groundwork upon which other forces have Reichsbank policy as it developed and the built. It put the problem of reparation adadministration of the currency, will be treated ministration on a business basis, and removed in separate sections of this chapter. The reparation payments as a source of danger to experts also made specific recommendations as the currency. More broadly, it offered a to the measures to be taken for balancing the practicable solution of the double problem of German budget and for meeting the treaty stabilizing the currency and balancing the charges on reparation account; these have budget, which, as the experts said, implied the already been discussed in their proper relations restoration of Germany's credit both externally in the chapter on the German budget. and internally. The experts' proposals for dealing with the 2. Reichsbank credit policy.—Reference has reparation charges had a more general but already been made to the beneficial effect upon still important bearing on the question of the currency of a new and vigorous polic}7 at German credit. In the first place, the pay- the Reichsbank during the period of tentative ments due from Germany under the plan were stabilization. The new administration took to be all-inclusive and as to any given year office on January 1, 1924, shortly before the were to be specific in amount, thereby elimi- first meeting of the experts. It was connating a distracting factor of uncertainty in fronted with the practical problem of preventmaking up the expenditure side of the budget. ing a new credit expansion which would weaken Second, the budget during the first 3^ear of the rentenmark and cause a relapse into inflaoperation was to be relieved of reparation pay- tion. The bank rate was 10 per cent, the rate for ments altogether, the bulk of the payments in day-to-day money on the Berlin Bourse ranged this year being financed out of the proceeds of at times as high as 100 per cent, the Reichsthe German external loan, 1924, and thereafter bank's stock of gold was only 467,000,000 the budget was to provide only a portion of marks and tended to fall even from that level, the total, the remainder coming from the and foreign exchange rates though maintained German Railway Co. and German industry. at gold parity at home had been falling to a Third, the experts distinguished between the discount abroad. The demand for credit was internal payment of reparations and their very heavy, in some degree owing to the imtransfer abroad. The experts, though confi- pression on the part of certain borrowers that dent that it was "within the power of the a new inflation was inevitable and that loans German people to respond to the burdens then contracted could be repaid in depreciated imposed by the plan, without impairing a currency, and in part also to the conditions standard of living comparable to that of the which the provisional stabilization itself imallied countries and their neighbors in Europe," posed. These difficulties were indeed severe, were not prepared to "speculate on the amount but the situation was tranquil in comparison which can annually be paid in foreign cur- with the chaos which preceded it; the problem rency." Accordingly, they set up machinery was to keep the currency stable until such which would leave open to current determina- time as adequate measures could be taken to tion the amounts to be transferred each year support it. to the creditor powers. This machinery was The Reichsbank administration did not concentrated in the transfer committee, which raise the discount rate above 10 per cent, bewas charged with the duty of regulating the lieving that the forces at work were moving execution of the programs for deliveries in kind too fast to yield to this method of control. and reparation recovery act payments in such Instead, on April 7, 1924, it announced that a manner as to prevent difficulties arising with the Reichsbank would not discount bills to an the foreign exchange, of controlling the transfer amount in excess of its then existing portfolio, of cash to the creditor Governments by pur- and proceeded to ration credit within that chase ^ of foreign exchange, and generally of limit. An active liquidation of commodities so acting "as to secure the maximum transfers, and shares followed, with a corresponding fall without instability of the currency." In case of prices, a large part of the German-owned the payments by Germany on reparation balances abroad was brought back to Ger- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

FEBRUARY, 1929 FEDERAL RESERVE BULLETIN 131 many, and the weakness of the foreign ex- to the present with the exception of the last changes was gradually corrected. A second named; the law was amended on July 8, 1926, measure taken at the instance of the Reichs- with the approval of all concerned, so as to bank administration was the establishment permit the Reichsbank to discount for the of the Gold Discount Bank, which was effected market short treasury bills of the Reich and to under a law passed on March 19, 1924. In make loans secured by them up to an aggregate some sense the essential purpose which the of 400,000,000 reichsmarks for both classes of Gold Discount Bank was intended to serve— transactions. namely, that of providing a genuine gold- Since the date of the reconstitution of the secured currency—anticipated the currency Reichsbank the stability of the German curfunctions later given to the Reichsbank under rency has not come into question. Domestic the legislation passed in connection with the price movements and the quotations of the experts' plan. As a matter of fact, the Gold reichsmark in the foreign exchanges, the two Discount Bank never exercised its currency chief evidences of the condition of a currency, function, but it did succeed in providing con- have remained within the limits set by the gold siderable credits in foreign currency and as standard. Thus relieved of its emergency such was a factor in maintaining stability character, the administration of the currency pending the adoption of broader measures. has been subordinated to the broader problem The proposals of the experts for the reconsti- of the supply and control of credit. This tution of the Reichsbank were put into form problem has proved to be extraordinarily comof law on August 30, 1924, along with the other plex, and while as a whole it has been within legislation required to make the plan effective. the field of the Reichsbank's influence, only On October 11, 1924, the formal reconstitution certain parts of it have stood directly within took place without disturbance to the Reichs- its authority. For the sake of orderly treatbank's business. Outwardly there were few ment only the latter will be dealt with at this signs of change, except that the old paper- point, and the discussion will be limited to three mark currency began to disappear and new aspects only—the management of Reichsbank reichsmark notes of the Reichsbank began to short credit, the relation of its discount rate take its place, at the rate of 1 reichsmark of to other money rates, and its accumulation of the new currency to 1,000,000,000 marks of the gold reserves. old. The changes were nevertheless fundamen- (a) Control oj ReichsbanTc credit—The policy tal. The Reichsbank's position as a private of rationing credit which the Reichsbank initicorporation independent of the Reich, which it ated on April 7, 1924, had the double purpose of had acquired for the first time some two years preventing abuse of its credit facilities and of previously, w^as strengthened and reinforced; it apportioning the available supply of credit acquired the exclusive privilege of issuing notes, among those borrowers who in its opinion were with only minor and nonessential qualifications; most deserving from the standpoint of the and had the specific obligation "to regulate the general good. By the end of June, 1924, the circulation of money in the whole area of the situation had somewhat clarified, and the Reich." While its independent character as a Reichsbank increased the limit within which it German institution was protected, a general was prepared to grant credits. When the council was created, the membership of which expert's plan went into effect two months later, was to be evenly divided between German the policy was still in operation; its stringency nationals and foreigners; one of the foreign was gradually relaxed up to January, 1926, members was to serve as commissioner of the when it was publicly abrogated. During that Reichsbank, whose primary function was to see period, accordingly, the volume of loans made that the provisions of law with respect to the by the Reichsbank does not fairly reflect the note issue and its gold cover were carried out; demands made upon it, but rather the extent to the gold cover was to amount at least to 40 per which it was prepared to go in meeting them. cent of the notes in circulation, with the proviso, On October 31, 1924, the first month-end however, that one-quarter of that cover could after the reconstitution of the Reichsbank, its take the form of devisen (foreign exchange) total short credit, exclusive of devisen eligible meeting specified requirements; and the power for note cover, amounted to 1,929,000,000 of the bank to discount paper secured by Gov- reichsmarks. This is an adjusted figure, repreernment obligations or to make loans to the senting more accurately than the published Government was narrowly restricted. All of totals the amount of loans actually made by the these provisions have remained unmodified up Reichsbank for the accommodation of bor- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

132 FEDERAL RESERVE BULLETIN FEBRUARY, 1929 rowers. It is based upon the two statement tution is gold and, with somewhat less reguitems, "bills and checks7' and "Lombard larity, devisen interchangeable with gold. loans"; but it eliminates some 700,000,000 of But the effect upon the general level of Reichsagricultural bills later transferred to the bank credit has varied greatly at different Rentenbank and includes the existing liability times. In 1926, for example, the Reichsbank on account of indorsed bills sold from its port- increased its gold and its devisen eligible for folio to various of the public offices. It is cover against the note issue by 740,000,000 necessary to make such adjustments in the reichsmarks, but its short credit was lower at reported totals up to a date as late as the the end of the year than at the beginning by middle of 1926 in order to establish a proper 486,000,000. Thus, nearly 500,000,000 reichsm basis for comparison with the figures for later marks of the incoming gold was neutralized by periods. Such adjusted figures are available a corresponding decrease of short credit, notably showing the fluctuations in the volume of Reichs- bills, checks, and collateral loans; but the net bank short credit during the past four years, effect was an increase of about 250,000,000 in including at the very end of the period small the volume of Reichsbank credit made availamounts of discounted treasury bills of the able to the banks and the public. In 1927, as Reich or loans secured by them. From the total a result of the low discount rate at the Reichsof 1,929,000,000 reichsmarks as it stood immedi- bank during the first five months, the stock of ately after the Reichsbank was reconstituted in gold and eligible devisen fell during the year October, 1924, the total of short credit rose to as a whole by 204,000,000, but the volume of an average during 1925 of about 2,200,000,000. short credit rose by 1,294,000,000, thereby off- Thereafter, under the influence first of the busi- setting the loss of gold and devisen and causing ness depression and then of the rapid inflow of a net increase in Reichsbank credit of 1,090,foreign funds, the total averaged during 1926 at 000,000. In 1928 a similar comparison can not less than 1,600,000,000. In 1927, in response be made because the year is not yet complete. to a low discount rate in the first half of that But, taking as a base the condition at the end year and then in reflection of a large increase in of November, 1927, it is noteworthy that business activity attended by a general credit during the 12 months ended November, 1928, expansion, the volume of Reichsbank short the gold and devisen increased by about credit averaged about 2,450,000,000; and at 660,000,000, whereas the volume of short credit times, as for example over the turn of the year, decreased by about 190,000,000. The net reit stood much above that level. This average sult was a further increase of about 470,000,000 was fairly maintained during 1928 up to the in the amount of Reichsbank credit released. autumn, when the volume of short credit The combined effect in each of the three years tended to fall, in connection with developments has been to enlarge Reichsbank credit, the which will be presently described. latter term being used in its comprehensive The figures for Reichsbank short credit taken sense. In 1926 this growth, which was entirely by themselves do not, of course, represent the result of credit made available in return for fully and exactly the amount of credit which the gold or its equivalent, was very moderate, as Reichsbank has released from time to time to was characteristic of a year hall of which covthe other banks and the public. Other assets ered a period of depression and liquidation. In must also be taken into account, because the 1927, a year of rapidly expanding trade and acquisition of an asset of whatever sort makes production, the growth of credit was excepa corresponding amount of Reichsbank credit tionally large, but it was made up altogether available for use. Credit thus released may of loans, the increase in which was far more return to the Reichsbank by way of repaying than enough to compensate for a decline in the existing debt, or it may pass into general use holdings of gold and devisen. In 1928, a year in the form of currency or banking deposits. thus far of large business but without the If the former, the expansive effect of the newly growth which occurred in 1927, and in some acquired asset is neutralized, because there has respects falling below the levels then attained, been merely an exchange of one asset for an- Reichsbank credit has increased further; but other and the volume of Reichsbank credit the increase has reached the banks and the remains unaltered; if the latter, credit expan- public, not in the shape of additional loans sion in the broad meaning of that term has from the Reichsbank but in payments for gold. taken place. In the past few months—that is to say, in One form of asset which the Reichsbank has the autumn of 1928—this development has been acquired with fair regularity since its reconsti- particularly pronounced. The portfolio has Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

133 FEBRUARY, 1929 FEDERAL RESERVE BULLETIN diminished and the gold stock has rapidly in money rates, during which the Reichsbank risen. The increase in the gold stock is due often found itself widely detached from the to a set of conditions which will be discussed market and with limited power to exercise its at length in the section of this chapter dealing influence except through the adoption of exwith the Reichsbank's gold policy. The decline traordinary measures of control. in the volume of Reichsbank loans taken by The technical ineffectiveness of the Reichsitself and without allowing for the rise in the nk rate during the period up to about a year gold stock, would imply a moderation of busi- ago had its origin largely in the difficult and ness activity and a slackened demand for loans. sometimes contradictory conditions confront- The closing of the steel mills in the Rhenish- ing the credit markets. As has already been Westphalian district during the month of No- seen, the almost complete lack of funds in the vember, 1928, may have exerted, for instance, German market immediately after stabilizasome influence toward liquidating stocks and tion created a pressure on the Reichsbank diminishing the demand for currency for wage which could not be controlled by the rate alone; payments, and other influences may also have in consequence, the Reichsbank at that time f been at work toward restricting the demand for though maintaining a rate well below the marcredit. But after making due allowance for all ket, set a strict limit on the amount of credit such influences, it appears on the face of the it would grant. The gradual relaxation of this figures for loans and gold together that the pressure permitted the Reichsbank to moderate effective demand for Reichsbank credit remains its control and in the early part of 1925 to rehigh. duce its rate to 9 per cent, but it was not Two observations are to be made in connec- until the secondary stabilization crisis in the tion with the foregoing: First, that there has winter months of 1925-26 that the control was been no restriction of Reichsbank credit over lifted altogether and the rate further reduced. a year ago, but on the other hand, that its But even with abrupt and successive reducvolume has increased; and, second, that the tions, the Reichsbank rate remained well above entire increase has been more than covered by the typical rates for short money in the additions to its gold reserves. The position of market. A rising volume of speculative transthe Reichsbank has been consolidated, and it actions on the stock market, beginning early has made itself an even more powerful factor in 1926, was financed in considerable part from than heretofore in maintaining the financial foreign sources, and the inflow of foreign funds stability of Germany. for that purpose and in connection with active (b) Reichsbank rate and market rates.—Duringforeign borrowing on the part of the States and the past year the Reichsbank has been able to communes detached the Reichsbank still furexert its influence over the money market more ther from contact with the market. Its loans •effectively than through any similar length of rapidly declined, because borrowers were able time in the past four years. The Reichsbank to satisfy their needs elsewhere at lower rates has been able to rely mainly on the discount than the Reichsbank charged. In order to rate as the normal means of dealing with the stem the inflow of foreign money, the Reichsmarket, and on the whole its rate has been in bank took advantage at the beginning of 1927 effective relation to money rates in general. of a temporary period of quiet on the stock This marks a change in the direction of stability market and lowered its rate to 5 per cent. from the prolonged period of broad fluctuations This rate it kept in force for the first five months of 1927, with important consequences. The inflow of foreign funds reversed itself and MONEY RATES IN BERLIN German-owned funds began to move abroad, so that the Reichsbank lost about 1,000,000,000 reichsmarks of devisen. The expansion of Reichsbank credit which took place simultaneously was attended by the most active speculation that has occurred in Germany since stabilization, calling ultimately for direct intervention on the part of the Reichsbank and the bankers. It was not until the Reichsbank made two increases in its rate, the second in the autumn of 1927, that contact with the money I I I I I I ! I ! I I I I I I I I ! I I I I I I I I I III I I I I I I I I market was reestablished. This contact has 1925 1926 1927 1928 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

134 FEDERAL RESERVE BULLETIN FEBRUARY, 1929 remained fairly close for a full year—that is, putting a check on the inflow of gold, or conuntil the autumn of 1928. tinue through the sympathetic effect its rate Within recent weeks, however, there has has upon money rates in general to discourage been a well-defined tendency for the margin to the undue use of credit on the part of the widen between the Reichsbank rate and other ultimate borrower. short-term money rates, owing to the fact that Before passing on to a fuller discussion of the bill rate, in common with various other gold imports as they have been related to market rates, has tended to decline. It is Reichsbank policy, it is appropriate to emnoteworthy that this decline in Berlin money phasize the importance of these various develrates has taken place during a period when opments. Normal forces have largely reasmoney rates were ranging exceptionally high in serted themselves. The broad fluctuations of New York, which has been the principal source the earlier periods have given way to comparafor German foreign loans in the past few years tive steadiness in the money markets, and it and continues to be an important one. In has been possible to replace emergency meas- Paris and London also the recent tendency for ures with ordinary methods of control. money rates has been upward. The decline in Nevertheless, the level of interest rates in Berlin rates in the face of a rise in important Germany remains high. Fundamentally, this foreign markets does not appear to be asso- is due, of course, to the fact that the formation ciated with any marked recession in the in- of new liquid capital has not yet caught up ternal demand for money; on the contrary, as with the demand. This is a phase of German will be seen in a later section of this chapter, economic conditions which will be discussed the volume of bills drawn and the loans of the at length in another part of this chapter. To principal German banks rose in October, 1928, some extent, also, the high cost of money to to the highest point reached since stabilization. the borrower is due to the multiplicity and In November the stoppage of work in the steel complexity of the German banking system. mills of Rhenish Westphalia may have exerted But the fact should not be lost sight of that the some influence in the direction of liquidation, present 7 per cent rate of the Reichsbank not but it does not appear to have been sufficient only reached that level but has remained there to account for money market developments. throughout the period of largest business The main influence appears to have had its activity which Germany has seen since the war; source in the long continued import of gold. and, further, that it has helped to attract a The relation of the Reichsbank rate, apart very large volume of gold from abroad which from other money rates, to the inflow of gold, recently has brought a certain relief to short calls for some clarification at this point. The money rates in general. Reichsbank as a lender to German banks a,nd (c) Gold accumulation.—During the 12 bankers is now and has been in competition months ended November 30, 1928, the Reichswith the foreign banker. If the Reichsbank's bank's stock of gold rose by 767,000,000 rate is enough higher than the rate offered by reichsmarks. With a decline of 109,000,000 the foreign banker to offset fluctuations in the in its devisen eligible as reserve against notes, foreign exchange, the German banker desiring the result for the 12 months was a net increase to borrow is likely to borrow abroad. The same in the reserves amounting to somewhat more rule holds good if the German banker possesses than 650,000,000. The bulk of this growth only a limited stock of bills of the sort eligible took place in the second half of the year, the for purchase by the Reichsbank, and yet is able consequence of a rapid flow of gold toward to borrow abroad on other security or against Germany. The nature of this inflow differed deposit credit. One or both of these conditions from that of any earlier period, because by far has prevailed more or less consistently since the largest part of it came to Germany in 1924, with the exception of a period in the early response to natural forces, whereas at earlier part of 1927 to which reference has been made. times the Reichsbank had followed the practice In recent months the inflow of new credit from of buying gold in foreign markets as part of its abroad has to a considerable extent taken the considered policy with respect to the accumuform of gold, which of course strengthens the lation of gold reserves. The importance of position of the Reichsbank as a potential this contrast will appear in the course of conlender and at the same time, other things being sidering the growth of the Reichbank's stock equal, tends to lower rates in the market. It of gold to its present proportions. then becomes a question for the Reichsbank to In the spring of 1924 the Reichsbank's decide whether it will reduce its rate and at- total stock of gold and devisen amounted only tract the demand for credit to itself, thereby to 442,000,000 reichsmarks, the smallest Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

FEBRUARY, 1929 FEDERAL RESERVE BULLETIN 135 amount held since 1893, when, however, gold 000,000 included gold coins withdrawn from was in circulation in the shape of coins. In the circulation and gold ornaments given up by the autumn of 1924, at the time of the Reichsbank's public by way of war sacrifice. reconstitution in connection with the expert's The foreign sources from which the Reichsplan, the stock of gold had risen to 614,000,000, bank has derived its increased gold during the which with 205,000,000 of devisen eligible under past five years have varied not only according the law as cover for notes, gave less than to changes in financial conditions throughout 820,000,000 of legal reserves all told. This the world but according to the Reichsbank's amount was altogether inadequate to support own practice. It appears from the import the substantial increase in the Raichsbank cir- returns published by the Reich statistical culation which future business expansion wxmld office that in round figures the net imports of require. Accordingly, it was necessary for the gold from the United States have amounted Reichsbank to proceed with all reasonable in these years to about 700,000,000 reichsmarks, speed to replenish its stock of gold. from Great Britain also to about 700,000,000, and from Russia, Switzerland, the Scandinavian RESERVES OF GOLD AND ELIGIBLE DEVISEN countries and Holland to a further sum of AMOUNTS RATIO TO NOTES about 700,000,000. 3 M 0 i/ 0 li' 0 o r ns of Reichsmarks Per Cent The bulk of the gold derived from the United States was acquired in the first three years after Z50G / y stabilization. At that time funds from abroad 2000 reached the Reichsbank almost exclusively in r the form of devisen—that is, deposits in foreign 1500 banks, foreign checks, and so on. The Reichs- / 1000 bank from time to time, acting on its own 500 ' MIHIIIIM .iii.ii.i.. initiative, converted these devisen into gold '24- 1325 1926 1927 1928 19Z5 1?26 1927 7928 and in due course brought the gold to Ger- It will be seen from the foregoing diagram many. This practice, which was equivalent to that the growth of the reserves, while not alto- the purchase and import of gold as a comgether consistent as to the extent of the incre- modity, was followed largely in the case of ment month by month, has been seriously inter- dollars acquired by the Reichsbank and to a rupted only once. The force attracting gold, to lesser extent in the case of sterling and conti- Germany has been, of course, the generally high nental currencies. Such imports, deliberately level of interest rates and along with it the high undertaken by the Reichsbank, differ materially level of the Reichsbank discount rates; it was from movements of gold prompted by the indeed the temporary relaxation of the latter position of the foreign exchanges. As the force in the first half of 1927, as has been noted Reichsbank's stock of gold increased, it became in the preceding section, which accounted for less willing to undertake on its own initiative the outflow of gold and devisen at that time. the conversion of devisen into gold, and it also Taking the period as a whole, the pressure of assumed a more reserved position with respect the money rates kept domestic funds at home to buying devisen. In the summer of 1927, and attracted funds from abroad, part of which when the States and communes were borrowing took the form of gold imports. heavily abroad, the Reichsbank declined as a On November 30, 1928, the Reichsbank's matter of principle to buy the proceeds of their stock of gold amounted to 2,624,000,000 reichs- loans, and it has taken more and more definitely marks, somewhat more than double the amount the attitude toward the foreign exchange held by the Reichsbank on July 31, 1914, when market in general that it would buy or sell only the total was 1,253,000,000, with, however, those marginal amounts required to maintain about 1,000,000,000 of gold in circulation. The the market's equilibrium. The Reichsbank, present stock is in addition to about 173,000,000 furthermore, under date of October 18, 1927, of devisen counted as reserve against the note lowered the price it was prepared to pay for issue, and leaves out of the reckoning also a gold offered over its counters to the minimum further undefined amount of devisen held by permitted by law—namely 2,784 reichsmarks the Reichsbank but not designated separately per kilogram of fine gold. This action had the in its statements. The largest gold holding in effect of placing somewhat lower the point in any period previous to the present was on the foreign exchanges at which gold would flow November 7, 1918, when the stock of 2,550,- to Germany in natural course. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

136 FEDERAL RESERVE BULLETIN FEBRUARY, 1929 These steps were in the direction of reestab- placed abroad for German account, exclul lishing fully the conditions under which inter- the value of the German external loan, 1924 national gold movements took place before the has reached a total of about 5,750,000,003 war. Beginning in July, 1928, the quotations reichsmarks, now reduced by redemption > of the reichsmark in the foreign exchanges, for amortization, or otherwise, to an estimated reasons which will be explained in later sections amount of about 5,400,000,000. This leaves of this chapter, reached the point at which it out of the reckoning a large volume of shortbecame profitable to ship gold from several term debt owing abroad, the amount of which foreign countries to Germany. From then remains for various reasons a matter of conuntil the present numerous imports of gold jecture. have taken place as ordinary banking trans- Various aspects of German foreign borrowing actions. In the five months ended November have been discussed at length in previous 30, 1928, gold imports caused an increase in reports. In particular, the large loans which the Reichsbank's stock of gold amounting to the public authorities placed abroad have been 540,000,000 reichsmarks. questioned on the ground that they were often The Reichsbank's technical position with the results of too free spending, and also respect to the world's gold market is, however, because they exercised a frequently unhealthy not yet complete. While it is legally bound to influence upon economic conditions generally. receive gold, it is not yet legally bound to pay Without reference to the merits of any of these it out. As a matter of announced policy, the loans, it is clear enough that foreign credits as a Reichsbank holds itself ready in practice to whole have greatly accelerated the process of redeem its notes in gold, but this obligation German reconstruction. The proceeds of forwill not be binding in the sense of the law until eign loans, upon entering into the German econthe Reichsbank takes the steps which the law omy, have provided the essential material out contemplates but which it left within the dis- of which German labor and enterprise could cretion of the Reichsbank to carry out. There create new and larger domestic values. Conseems to be no reason of principle or financial sidering conditions at the start and the funds policy why the Reichsbank should not now then available, there have taken place in the take the necessary steps in this direction, and last four years a growth of trade and an extenthe recognition on its part of the legal obliga- sion and renovation of plant such as have not tion to pay out gold would mark the full return been equalled in any previous period of equal of Germany to the gold standard and contribute length. The sound character of this growth very much in the long run to the genera] depends, of course, primarily on the magnitude soundness of the credit structure. of the supplemental values created and secondly Aside from the legal step which remains to be upon the capacity of those values to earn a taken, the ordinary forces determining the return in excess of the cost of the borrowed movement of gold have fully reasserted them- funds. Taken as a whole, however, and withselves. Now, as heretofore, the Reichsbank out reference to any individual loan, it appears rate and other money rates exert a dominating from such figures as are available that the new influence in attracting funds to Germany, but values created in Germany during the same the initiative as to whether those funds shall be period have aggregated several times the converted into gold and brought to Germany amount of the foreign debt incurred. has passed from the Reichsbank to private The extent of future demands from Germany hands. Whereas formerly the Reichsbank upon foreign supplies of credit will be govbought gold in foreign markets as a commodity, erned largely by the growth of the domestic bringing it to Germany at its own expense, market. Much progress has already been practically all of the gold acquired in recent made in that field, as will appear in later sections months has been offered to the Reichsbank at of this chapter. But up to the present the its counters, where it is obligated to take it at volume of the demand has been so great, parthe legal price. ticularly from the public authorities and from 3. Function of foreign loans.—The dearth of agriculture, that the supply has been overcapital in Germany in the first years after sta- taxed. A more conservative utilization of credit bilization meant that funds, if they were to be by the States and communes would go far to obtained in anything approaching adequate relieve the pressure and to hasten the time amounts, had to come from abroad. In the when foreign loans will be less in demand. four years since the experts' plan went into (a) Movement of funds and the foreign exeffect the nominal amount of long-term loans changes.—In the first years after the experts' Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

137 FEBRUARY, 1929 FEDERAL RESERVE BULLETIN plan went into effect the movement of funds and, on the other hand, when the margin nartoward Germany was to be regarded as a phase rowed the value of dollars tended to rise. At in the redistribution of the world's available the end of the period shown in the diagram— supply of credit, wThich had been dislocated by that is to say in recent months—the interest the war and the more or less widespread rates in the two markets were nearer together depreciation of national currencies which fol- than at any time since the first half of 1927; lowed. As far as Germany is concerned, the yet the reichsmark remained above par with inflow of funds still belongs in some sense to the the dollar, whereas in the first half of 1927 it phase of redistribution of credit. But, as has had been below par with the dollar. already been seen, Germany has also been This result is noteworthy, because it marks passing into a stage of active internal develop- the return of steadier conditions between ment which independently exercises a strong Germany and one of the principal foreign attraction upon credit wherever it is to be money markets. It was due in part, no doubt, found. to indirect influences upon the reichsmark- The measure of the demand for credit is of dollar exchange of money relations between course the rate of interest w^hich the borrower Germany and other European countries. But is willing to pay. Throughout most of the last the main influence appears to have been that four years the rate of interest in Germany has exerted by a decided and progressive narrowbeen sufficiently high to attract funds from ing of the excess of German merchandise imother countries where the supply of credit was ports over exports. These reached equilibrium large and the going rates of interest lowT. The in September, 1928, thereby removing a heavy funds so attracted exercised a dominating burden upon the exchanges. If borrowed influence over the foreign exchanges, strength- funds continued to flow into Germany, they ening the position of the reichsmark greatly, were free to exert their influence directly upon and often completely submerging the influ- the exchange without first making provision for ences which the merchandise trade balance and an excess of merchandise imports. other factors were simultaneously exerting. (6) Volume of foreign loans.—Out of the gross foreign indebtedness on German account only that part which has taken the form of loans INTEREST AND FOREIGN EXCHANGE RATES publicly issued can be defined in reasonably PerCent BERLIN - NEW YORK Refchsmarto exact terms. The nominal amount of such 4.23 Dollar* exchange in Sen/in Private dhcount rate in Berlin loans at the end of October, 1928, stood at 4.22 —^v about 5,400,000,000 reichsmarks, after making 421 allowance for the estimated redemptions and 4.20 amortizations which have already taken place. 4.19 The other part of the foreign indebtedness is a Bill rate in NewYopftX^^U^3^^ 4.18 matter of conjecture, comprising foreign de- 1 1 1 1 I 1 1 I I 1 ! 1 1 1 4.17 posits in German banks, loans to brokers, bankers' loans to States and communes, indus- The effect which German interest rates have trial and commercial credits, and so on. had upon the position of the reichsmark in Figures for foreign credits granted to the princiforeign exchange rates on New York is illus- pal German banks are reported four times a trated in the foregoing diagram. Since the year to the Reichsbank and if made public Keichsbank did not release the reichsmark would shed some light on the total short debt, from its technical adherence to the dollar until but up to the present time they have not been the end of August, 1926, the diagram leaves the published. Consequently, it is impossible to period up to that time out of account. For the give any reliable estimate either of the short sake of simplicity only one interest rate in each debt owing abroad or of the total. of the two countries is used, a rate which is Except for the German external loan, 1924,. nearly though not absolutely comparable be- the foreign loans in 1924 were negligible. Altween the two markets. It will be seen that most the whole of the long-term debt has been the rate on the private discount market in incurred since the experts7 plan went into effect. Berlin has been higher at all times than the bill The bulk of the loans made in 1924 took the rate in New York. It will be seen also that form of banking deposits or other short credits, when the margin widened between the German but the success of the German external loan, rate and the rate in New York the value of the 1924, offered in connection with the experts' dollar in terms of reichsmarks tended to fall, plan, opened the way for a long series of capital Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

138 FEDERAL RESERVE BULLETIN FEBRUARYJ 1929 issues on German account which has continued In part the small volume of foreign borrowing with periodic interruptions up to the present. by the communes in recent months was owing In 1925, German issues were sold to the public to lack of interest in such issues on the American abroad in the nominal amount of about 1,250,- market. Very recently—that is to say, around 000,000 reichsmarks. This amount was much the end of November—one or two communal exceeded in 1926, when the total reached issues of substantial size were offered in the 1,700,000,000. Thereafter, owing mainly to London market. smaller demands from private industry, this The foreign loans of public and semipublic total was not reached again. enterprises for the entire period since the beginning of 1925 have amounted to nearly 2,000,- [In millions of reichsmarks] 000,000 reichsmarks. Of that amount about 900,000,000 were loans of credit cooperatives, ; Jan.1 ! Foreign loans 1925 1926 1927 ! to Oct. I Total mortgage banks, agricultural credit institu- ! 31,1928<j tions, and the like, mostly for the purpose of relending to agriculture. Such loans reached Loans of States | 138. 6 270.6 267.3 : 676. 5 especially large dimensions during 1927 and Provincial or communal loans] 256.0 249.5 112.5 !! 193.7 811.7 Loans of public and semi- i ; | the early part of 1928. The principal part of pu ( b a l ) i c O u f n t d h e e r t R ak ei i c n h g s: ! 161.7 25.2 , ; 336.0 i ! 152.3 ! 675.2 the remainder was for State and municipal (b) Of the States, Prov- ! enterprises, such as electric plants, gas and inces, and communes.__ 202.8 351.5 205.7 530.8 1,290.8 water works, housing programs, and so on. Loans of private enterprises. _ 472.0 742.0 ' 597. 3 354.5 2,165. 8 Loans of various church or-1 In all of these loans the public credit was more ganizations__ 25.1 57.6 : 4.1 29. g 116.6 or less directly involved; in some cases they Total 1,256.2 1,696.4 1,522.9 1.261.1 ; 5,736.6 carried provincial or communal guaranties and in all cases they represented obligations Somewhat more than 60 per cent of the of enterprises, including banks in which the 5,737,000,000, nominal amount, of foreign capi- public authorities have controlling interests tal issues shown in the foregoing table was for and responsibilities. the account of the States, communes, and the Foreign loans of private enterprises have various public enterprises. In previous reports been diminishing since 1926, when large industhese issues have been discussed at length. It trial concerns were borrowing substantial will be recalled that foreign loans of the States amounts for purposes of rationalization. Since and communes have been open to question on then the principal industries and trading a number of grounds; their large volume, indi- houses have borrowed abroad more sparingly. cating overspending on the part of the public Some have been able to finance themselves by bodies; their frequency, which often brought issuing in the domestic market shares or bonds foreign funds to Germany more rapidly than denominated in reichsmarks, with, however, they could be usefully absorbed and thereby some foreign participation; and others have stimulated speculation and threatened an un- found it possible to do without further longhealthy expansion of trade and prices; and their term financing at all. This development is of relation, especially in the case of State loans, to course an indication both of renewed strength the prior commitments of Germany in respect on the part of the industrial enterprises themof reparations. These and connected ques- selves and also of some periodically recurring tions were considered in an exchange of mem-capacity on the part of the domestic market oranda between the agent general and the to absorb new issues. Smaller industrial con- German Government in the autumn of 1927. cerns whose names were not well known abroad There is no occasion, in view of the extended or whose requirements were too small to warcomment previously given, to review here the rant the incidental expenses of foreign borrowdangers which these heavy borrowings threat- ing, have been debarred thereby from direct ened to the entire German economy or to de- access to foreign funds. Latterly various scribe again the apparatus of supervision credit institutions have been established with which was set up to moderate them. It is foreign participation for the purpose of supplymerely to be observed that up to the end of ing some part at least of the requirements of October no German State loan was issued to small and middle sized concerns. the public abroad during 1928, and that while All told, foreign financing at long term has the loans to the communes were unusually materially fallen off in the last five months, large in the spring of this year, since then they with only a moderate revival at the close of the have been very limited in number and amount. period. From the end of May to the end of Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

139 FEBRUARY, 1929 FEDERAL RESERVE BULLETIN October, 1928, foreign long-term loans of all credits, banking deposits, industrial credits, and categories amounted to less than 400,000,000 so on, almost entirely at short term. Against reicnsmarks as against nearly 900,000,000 this debt there were partial offsets in the shape in the period from January to May, inclusive. of sums owing from foreign countries to Ger- To a considerable extent this reduction has many. After allowing for these items the stabeen due to unusual conditions in the American tistical office estimated the net miscellaneous market, which up to the end of August was debt, mostly at short term, owing by Germany not receptive to new issues. In the autumn to abroad at between 1,400,000,000 "and 2,400,there was some slight renewal of interest in 000,000. Since the end of 1927 the growth in German issues, particularly in those which the deposits of the reporting banks, the state of carried incidental subscription rights for shares, the foreign exchanges, and other evidences indibut on the whole the terms which American cate that the increase in short debt may bankers were able to offer were less favorable have been substantial. Such withdrawals of than previously. This had the double effect funds from Germany as high money rates in of reducing the number of long-term German New York may have caused during the summer offerings and of causing a larger proportion and autumn appear to have been more than than heretofore to be placed in British and offset by an inflow of funds from Great Britain, continental markets. In the light of these Holland, Switzerland, and particularly France. conditions it is interesting to observe that in In recent weeks—that is to say in October and the five months ended October 31, 1928, the November, 1928—there appears to have been foreign loans for public account, including some diminution of the inflow of foreign shortloans to the public and semipublic enterprises, term money, partly on account of the better have exceeded in amount the long-term borrow- position of the merchandise trade balance. It ings of private concerns in the proportion of is also noteworthy that in many cases the profour to one. ceeds of such loans appear to have been brought The total amount of the German foreign to Germany in the shape of gold, so that the loans offered to the public since the experts' increase in short-term indebtedness is to this plan went into effect is, as has been seen, about extent directly offset by the increase in the gold 5,750,000,000. This total leaves out of account reserves of the Reichsbank. the German external loan, 1924, issued under b. Domestic credit position.—Important as the plan in the nominal amount of 960,000,000 foreign funds have been in rebuilding the stock gold marks, the service of which is covered in of capital in Germany, the principal increase the reparation annuities. It also takes no year by year has come from domestic sources. account of such substantial but undeterminable It is impossible, of course, to set foreign funds amounts of securities as foreigners have pur- off against domestic funds and draw a balance chased from time to time on the domestic in terms of figures, because foreign funds have market. Against the latter there are partial served in part as the basis upon which domestic offsets in the shape of foreign securities bought credit has itself expanded. This fact manifests by Germans and foreign issues of German itself, for example, in the case of funds borrowed securities in part repurchased. It is possible, abroad which reach Germany in the shape of however, to estimate with reasonable assurance gold, and upon entering the reserves of the that the total has already been reduced by at Reichsbank serve as the basis for new credit to least 350,000,000, representing loans refunded an amount which may be greater than the or-already paid off or partially amortized. amount of the gold imported. But after mak- This would leave the nominal amount of out- ing due allowance for the direct and indirect standing public issues, other than the German influences exerted by the inflow of funds from external loan, 1924, at approximately 5,400,- abroad, it is clear that the greater part of new 000,000 reichsmarks. credits granted in the last few years has come The present volume of the short debt must from domestic sources. The most tangible remain a matter of conjecture, pending official evidence is to be drawn from the markets for figures. The most recent official estimate is capital issues. On the basis of the figures, the that of the Reich statistical office relating to the new issues of securities offered in the domestic condition at the end of 1927. It was then esti- market in the last four years have reached a mated that the debt other than that represented total of some two and one-half times the Gerin issues offered to the public amounted to man issues offered to the foreign public. Again, between 4,600,000,000 and 5,100,000,000 reichs- the Institut fur Konjunkturforschung estimarks. This consisted of import and export mates that the average annual increase in the Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

140 FEDERAL RESERVE BULLETIN FEBRUARY, 1929 volume of credit in Germany during the last in part at least the old when the latter are at four years is nearly 10,000,000,000 reichsmarks. last satisfied. Yet the fact should not be over- This estimate includes foreign as well as domes- looked that the processes set in motion in the tic credits, but upon the face of all available course of satisfying these demands, assuming figures the share attributable to abroad can that they are not for wasteful purposes, tend be only a fraction, though a substantial fraction, of themselves to stimulate the formation of of the total. new capital, in the way of savings from wages, But large as this annual extension of credit profits to employers, and the increased prois, it has been insufficient to meet the demand ductivity of new enterprise. except as the latter has been restrained by high 1. Formation of capital.—The growth of derates of interest. The demand has come from posits in the savings offices and the amounts a variety of causes, and the effort to satisfy it paid to life-insurance companies in the shape has been concentrated in these few years. of premiums on policies are the chief explicit During the war dwelling construction, for ex- evidences of capital formation available in ample, came to a standstill, and for various German}^. As to the remainder it is necessary reasons was not adequately resumed during the to rely upon semiofficial estimates which are inflation. This left a great unsatisfied demand themselves subject to broad qualification. which the large annual increase since the war Deposits have been accumulating in the in the number of families has aggravated. In savings offices or Sparkassen in considerably the last five years more than" 9,000,000,000 greater volume than in 1927 or in any previous reichsmarks have been spent on new housing year since stabilization. The total increase alone. Other urgent construction, including during the 12 months ended October 31, 1928, the rebuilding incidental to the process of was 2,101,000,000 reichsmarks compared with rationalization, has required immense further 1,613,000,000 during the previous 12 months; sums. Agriculture, for reasons which will and during the last 4 months the increase has appear presently, has been a large and been at the average rate of 164,000,000 a month persistent borrower. The public authorities, as compared with 105,000,000 during the corborrowing on the credit of the Reich, the States, responding period of 1927. The growth for and communes, have exerted continuous pres- the past 12 months as a whole is about double sure on the market in connection with their the average annual increase from 1908 to 1913. various programs of extension and rehabili- It is noteworthy in this connection that at tation, some of which could certainly have been present the amounts credited as interest reprepostponed to the advantage of credit in general. sent only 10 or 15 per cent of the total annual Running side by side with the demands from increase of savings deposits, whereas in the preall of these and other sources there have been war years interest credited amounted to about the requirements of industry and trade for 50 per cent of the total annual increment. funds with which to carry on a rising volume of This difference arises mainly from the fact business. Four years ago Germany was prac- that aggregate deposits are still only about tically devoid of working capital, and the early one-third of the total in 1913. import of credit from abroad did not always With the exception of certain revalorized relieve this need. On the contrary, foreign deposits, relatively small in amount, the total loans brought to Germany in the shape of of about 6,500,000,000 reichsmarks shown for raw materials placed a further burden upon the October 31, 1928, has practically all been credit market as these materials took on greater accumulated since the inflation. The proand greater value in the successive stages of gressive increase in the savings deposits not fabrication and distribution. The vigor of only reflects a recovery of the habit of saving industrial and business activity, itself an impor- on the part of the people, but some increased tant cause of the demand for credit, has been capacity to save. As such it has an important such that it has shown thus far a remarkable re- bearing on the further formation of new capital. sistance to the effects of an inadequate supply. Yet it is not to be assumed that this rate of It is manifest that relief to the credit market saving can be taken to apply proportionately can come only from a diminution of the demand over the population of Germany as a whole. or an increase in the supply. The arrears of A large part of the savings deposits comes from construction left over from the war and the wage earners, whose position in the present inflation have not yet been overtaken, notwith- economic life of Germany is relatively favorable standing the progress already made. It is to on account of the wage increases which have be assumed also that new demands will replace been made in the last few years. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

141 FEBRUARY, 1929 FEDERAL RESERVE BULLETIN In addition to the savings deposits placed provides the basis for the estimate of the annual with the Sparkassen, there is an unstated formation of capital. The underlying qualificavolume of savings placed with the large com- tion was made, however, that the surplus of mercial banks. Since November, 1927, the production often comprises items which can members of the Berlin Bankers7 Association not be converted into cash without causing (Stempelvereinigung), which comprises a large a heavy fall in prices. proportion of the total banking strength of Taking the estimated surplus of production Germany, have been accepting savings deposits at 12,000,000,000 reichsmarks, and deducting on which they pay 5 per cent compared with imported capital, except such as w^as used for 4:% per cent paid by the Sparkassen. Thecurrency cover, the Reichs-Kredit-Gesellschaft amount of these deposits is not shown sepa- arrived at the conclusion that net capital formarately in the published statements of the banks, tion in Germany during 1927 amounted to and their total accordingly can not be esti- 7,600,000,000 reichsmarks. The detailed estimated. mates for 1928 have not yet been published, but Life-insurance premiums, which constitute in its report covering the first half of 1928 the a second important class of savings, averaged Reichs-Kredit-Gesellschaft estimated that doabout 44,000,000 reichsmarks per month during mestic capital formation during the first half the first 10 months of 1928. The figures are of 1928 had proceeded apparently at about the based on reports of about 60 life insurance same average rate as in 1927. companies and are available in comparable 2. Banking and other short-term credit.—It form only since the end of 1927. The total was inherent in the conditions of credit shortage amount of insurance in force at the end of hi the first years after stabilization that the first October, 1928, was some 25 per cent higher marked growth in the volume of credit should than at the end of 1927. have taken place in bankers' and other short- Be3Tond the figures for Sparkassen savings term credits. It was not until the early part deposits and life-insurance premiums there is of 1926 that it became possible to issue longlittle direct evidence upon which to predicate term obligations in the domestic market, thereby an estimate of capital formation in Germany. relieving somewhat the pressure theretofore But by various statistical processes, based concentrated on the short-term market. In the either on the volume of money savings or upon meantime short-term credit has continued to such evidences as are available showing the rise, but its total volume has gradually assumed annual surplus of production over consump- a more normal relation with respect to that of tion, estimates have been made which shed some outstanding long-term issues. light on the question. The latter method The total credits of the six large private has been followed by the Reichs-Kredit- banks, which together represent about three- Gesellschaft, which is owned indirectly by the fourths of the private banking strength of Reich, in the useful economic review which it Germany, increased about 2,000,000,000 reichspublishes twice a year. Certain unofficial marks, or 30 per cent, during the year ended estimates compiled in a different manner tend October 31, 1928. This compares with an generally to agree with that of the Reichs- increase of 26 per cent during the previous 12 Kredit-Gesellschaft. months. Deposits increased in about the same This estimate, which was published early in proportion as credits during each of the two January, 1928, was described in the interim years. No doubt a substantial part of the report of the agent general last June. It expansion during the past two years was based places the surplus of production in Germany upon deposits received from abroad. In defor 1927 at 12,000,000,000 reichsmarks. The fault of actual figures this important factor in calculations upon which this figure was based the banking position remains a matter of were prefaced with the statement that no conjecture, but some indication of the volume reliable estimate of the formation of capital of foreign deposits in German banks appears in Germany is yet possible, but that from a from the public statements made in connection knowledge of the international balance of pay- with the final balance sheets for 1927, when ments and of the conditions of production and certain banks reported that foreign deposits consumption the general limits within which were between 30 and 40 per cent of their total the surplus of production must lie can be de- deposits. A striking item in the bank statetermined. The surplus of production, in turn, ments is a rise in their holdings of bills and after deducting the amount of capital imported treasury notes which increased 823,000,000 (other than that used for currency cover), reichsmarks, or more than 50 per cent, during Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

142 FEDERAL RESERVE BULLETIN FEBRUARY, 1929 the last 12 months. In part, this is merely domestic market has absorbed about 14,000a shift from the Reichsbank to the private 000,000 reichsmarks of new capital issues. banks, inasmuch as the Reichsbank's holdings During 1925, the first year after the experts' of bills and checks declined about 450,000,000 plan went into operation, the market was very during the same period. narrow, and practically no new securities were Since last March there has been further offered except for moderate amounts of securiexpansion among the State and provincial ties issued by the real estate credit institutions banks, but at a rate considerably less than and various issues of shares. But since the with the private banks. From the end of beginning of 1926 new issues in considerable March to the end of October, 1928, the total variety have been offered in the market at the credits of 21 State and provincial banks in- rate of about 4,300,000,000 reichsmarks each creased 69,000,000 reichsmarks, or a little more year. than 3 per cent, as compared with an increase The domestic demand for long-term issues of about 13 per cent for the six private banks has been subject to periodic interruptions. during the same period. The deposits of the At almost all times the volume of loans over- State banks rose by about 11 per cent. hanging the market has been greater than the The Giro-Zentralen, the central institutions market could absorb. Accordingly, at those through which the various savings offices and times and seasons when funds have appeared communal banks are interrelated, have con- in the market, offerings have been made in tinued to expand their credits at a compara- undue amount and frequency, with the result tively rapid rate. The total credits of 17 of that the market has been more or less promptly these institutions increased 15 per cent between overtaxed. For example, the Reich loan March 31 and October 31 of this year. These offered in February, 1927, in the nominal credits were granted largely out of the proceeds amount of 500,000,000 reichsmarks, proved of long-term loans issued by the Giro-Zentralen, beyond the strength of the market, and it was in some cases abroad. not until a year later that new accumulations The volume of bills drawn during October, of investment funds permitted a resumption as reflected in the returns of the stamp tax, of public offerings in volume. In order to was higher than for any previous month. In avoid a second exhaustion of the market, the its main outline the changes in the volume of bankers and the financial authorities of the bills drawn coincides with changes in the Reich and Prussia discouraged too frequent volume of production and trade. The recent offerings, but insistent demands from the States increase does not appear to be wholly attribut- and communes and the requirements of agriable to that cause, but probably reflects the culture made their efforts only partly successful. better market for bills which now prevails and Recently, in common with somewhat easier also some increased inclination to rely on bill money conditions, there has been a moderate credit for transactions formerly done on a cash resumption of demand. basis or carried in the form of banking credits. The open discount market has developed [In millions of reichsmarks] somewhat greater vitality in recent months. Aside from prime bankers' acceptances, which 1907- 1928, have formed the principal offerings on the Domestic capital issues 1 y 1 e 9 a 1 r 3 ly 1925 1926 1927 t J o a n O . c 1 t. average 31 market heretofore, Reich treasury bills have also been offered in greater volume. Small quantities of such bills began to appear on the Germ R a e n i c b h o , nd S s t : ates, com- 1 market last February, the first in recent years. munes, etc 1,172 15 654 698 440 Associations under pub- At the end of November the total amount lic law 4 22 366 16 224 Real estate credit instioutstanding was nearly 400,000,000 reichs- tutions, Giroverbiinde marks, the maximum permitted under the and related institutions: present law. Up to this time very few have (a) Communal loans. 116 465 349 432 been offered to the Reichsbank from the market Priv ( a 6 t ) e M co o n r c t e g r a n g s e bonds- 7 40 8 0 8 ; | 84 7 0 9 1,6 3 2 2 8 2 1,5 1 9 9 7 4 | 1,2 2 5 0 8 8 either for rediscount or as collateral for ad- Total bonds. 2,480 | 994 3,435 2,854 | 2,562 vances. The largest amount so held up to German shares 740 ; 661 1,373 I 1,057 the present was on December 7, 1928, when Total German securi- ; the total stood at 57,000,000 reichsmarks. ties , 3,220 I 1,6554,333 i 4,227 ; 3,619 Foreign securities 472 ! I 58 i 3. New capital issues and the security markets.—In the last four years the German Grand total 3,692 ' 1, 655 i 4,333 i 4,285; 3,619 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

143 FEBRUARY, 1929 FEDERAL RESERVE BULLETIN The foregoing table, made up from figures responding period of 1927. This amount "was published by the Reich statistical office, reports about evenly divided between sales to the pubthe volume of bonds and similar obligations at lic through the medium of bankers' syndicates the nominal amount of the new issues, but and offerings through real estate credit institugives the volume of new shares at the paid-in tions, Giroverbande, and related institutions. amount, omitting new shares issued in con- The high yields carried by domestic issues nection with the consolidation of enterprises. have attracted many foreign purchasers to all Mortgage bonds issued by real estate credit branches of the market. The extent of such institutions have continued as in previous participations can not be determined, but it years to form the largest single item in the list appears to have been an important item in of new issues. These obligations, known as the balance of payments, supplementing direct Pfandbriefe, have composed more than one- borrowing at long and short term abroad. third of the total new issues each year since The markets for outstanding securities have stabilization. They are secured by mortgages continued quiet throughout the year, and the on real estate, including agricultural land, and volume of trading has apparently been small. are sold from time to time and at varying Share prices recovered somewhat in the first rates according to the market. Their issue is half of 1928, and since then they have changed far more constant than in the case of other new on the whole very little. During the first 10 securities. Issues during 1928 have almost all months of 1928 the average return on shares carried 8 per cent interest on the nominal listed on the Berlin Bourse was 4.88 per cent, amount, but they have always been offered as compared with 3.92 per cent during the full below par and so have yielded a return to the year 1927, owing chiefly to an increase in investor considerably above that rate. dividends. The latter largely related to busi- One of the main reasons for high interest ness done in 1927. rates on new issues, as well as for the frequent Bond prices on the Berlin Bourse declined periods of inactivity which have prevailed on gradually from the early part of 1927 until the domestic market, is the pressure to which November, 1928; but in recent weeks they it has been continually subjected from the have shown considerable resistance, partly as a Reich, the States, and the communes. The result of the easier moiw conditions recently Reich loan issued in February, 1927, has not prevailing. The average yield on outstanding yet been fully absorbed and has required spe- bonds in November, 1928, was 7.9 per cent, as cial market support in order to maintain its compared with 7.65 per cent a year earlier. price. The strained cash position of the Reich treasury, which has obliged it to issue a large SECURITY PRICES ON THE BERLIN BOURSE volume of short-term obligations, as already Per Cent 200 mentioned, has also exerted an indirect influ- | SHARES 1 Prices in percent of par ence over the long-term market. Moreover, k since the passage of the war damages liquidation law of March 30, 1928, about 350,000,000 if \ A reichsmarks of so-called registered debt certificates of the Reich have been distributed to tor. ft claimants who have offered a considerable vol- /I ume of them to the banks or for sale on the various stock exchanges. These, together MIIIIMIII liiiililln nliiliiliiiiliiljik with the various classes of loan liquidation -1925 W6 W7 1928 debt, revalorizing the paper-mark debts of the Reich, have placed an exceptionally large burden upon the market. Furthermore, offerings c. The German currency.—In the preceding of the States and communes which might other- pages various instances of the return of normal wise have been placed abroad have in a measure influences have been observed with respect to been shifted to the domestic market because of credit conditions in general. It remains to the obstacles in the wa}T of foreign issues to take note briefly of the changes which have which reference has already been made. The occurred in the particular field of the currency. new capital issues by the States, Provinces, and These changes have all been in the direction of communes during the first 10 months of 1928 bringing the currency into normal relations aggregate about 840,000,000 reichsmarks com- with the Reichsbank, on the one hand, and pared with about 540,000,000 during the cor- with the needs of the German public, on the Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

144 FEDERAL RESERVE BULLETIN FEBRUARY, 1929 other. The accomplishment of these objects about 440,000,000, whereas during the past presupposed the maintenance of currency sta- three months the increase over the correspondbility, which has continued to satisfy all prac- ing period of 1927 has been about 310,000,000. tical requirements. This narrowing of the margin in recent months At the beginning of 1924, when the experts reflects precisely the same tendencies as have were preparing their report, the Reichsbank was been observed elsewhere—the expansion at only beginning to regain its normal position the end of 1927 has been counteracted and more toward the currency which had been completely normal forces have reasserted themselves. lost during the inflation. The gold value of As in previous years, the Reichsbank notes the currency then outstanding was about have furnished the principal element of increase 3,250,000,000 marks, an amountq uite insuffi- in the currency. Indeed, the increase in cient to meet ordinary requirements. The Reichsbank notes has been somewhat larger Reichsbank's own notes were still denominated than the increase in the circulation as a whole. in paper marks which had the value of a million The progressive retirement of Rentenbank millions of paper marks to 1 gold mark, and notes has been compensated by an increase in notwithstanding the fantastic nominal total its the circulation of the Reichsbank and also by equivalent in terms of gold was less than 500,- an increase in the circulation of coins, particu- 000,000 marks, or less than one-sixth of the ag- larly of the 5-reichsmark denomination. At gregate circulation. The principal element of the end of November, 1928, Reichsbank notes the German currency was composed of the new composed about 74 per cent of the total circulanotes of the Rentenbank in the amount of tion, as compared with about 70 per cent a 1,400,000,000 reichsmarks. The rest was made year ago and about 62 per cent two years ago. up of emergency currency issued by the rail- The circulation of Rentenbank notes on ways and industries, gold loan certificates of November 30, 1928, amounted to 524,000,000 various sorts which circulated as currency, and reichsmarks, representing only 8 per cent of the a moderate amount of gold-secured notes is- total circulation as against somewhat more sued by individual banks. than 42 per cent four years ago. These notes The problem of dealing with these various have never had any gold backing of their own; forms of money involved replacing them with a but inasmuch as the Reichsbank has been unified and fully responsive currency, while at prepared to accept them and pay them out, the same time maintaining essential stability. they have constituted a contingent charge The new notes of the Reichsbank issued in the against the Reichsbank's gold and devisen form of reichsmarks after the reconstitution of reserves. Their reduction to the present the bank on October 11, 1924, served this func- moderate total practically eliminates a factor tion. As far as the minor issues were con- of weakness in the German currency position. cerned, they disappeared with considerable It will be recalled, in this connection, that a promptness as the Reichsbank, consistently law providing for the gradual liquidation of the with its improved relation to the credit market Rentenbank notes was passed at the same time in general, gained control over the circulation. w^ith the other laws making the experts' plan The Rentenbank notes remained for some effective. Up to November 30, 1928, Rententime as an important though diminishing ele- bank notes have been retired in conformity ment in the total German circulation, but with with its provisions in the following amounts the reduction of Rentenbank currency to its and from the following sources: present moderate proportions the notes of the In millions Reichsbank have assumed their normal posi- Interest on the general mortgage on agricultural land 275 tion as the principal element in the German Payments by the Reich 240 circulation. Share of the Reich in Reichsbank earnings 78 Except for the usual seasonal fluctuations the Repayments of agricultural bills 880 year-to-year increase in* the volume of the cur- Total 1, 473 rency, in common with the general volume of credit, has been continuous and fairly regular In addition, Rentenbank notes to the amount since stabilization. The average increase from of about 70,000,000 have been withdrawn from 1925 to 1926, for example, was 440,000,000 circulation and placed under earmark at the reichsmarks; from 1926 to 1927, a period of Reichsbank, representing the equivalent of the rapid business and credit expansion, the in- Reichsbank's share in the profits earned on the crease was 540,000,000. During the first half so-called economic credits granted in the early of 1928 the year-to-year increase reverted to days of stabilization. According to the origi- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

FEBBUAEY, 1929 FEDERAL RESERVE BULLETIN 145 nal plan of retirement, the share of the Reichs- Wherever the merchandise balance enters into bank in these profits was to have been applied the statement, imports and exports have been to the liquidation of Rentenbank notes, and adjusted according to the coefficients of the notes to this amount have been set aside under Institut fur Konjunkturforschung in order to earmark in order to make good the deficiency correct the overstatement of imports and the on this account. understatement of exports inherent in the The Reichsbank is required by law to main- official figures. It should also be explained tain reserves against its own notes but not that wherever reparation payments enter into against Rentenbank notes. These reserves the calculations the figures used have been must amount to a minimum of 40 per cent of those for transfers rrjade in foreign currencies gold and eligible devisen, with the additional only. Deliveries in kind have been omitted for proviso that the devisen counted as reserve the sake of simplicity from both sides of shall never exceed one-third of the gold. The the balance; their value has been given neither Reichsbank's reserves since the time of the among the exports from Germany nor among bank's reconstitution have consistently stood the payments made by Germany. at or above the legal minimum as far as its It would be desirable, of course, to state the own notes are concerned. But the gradual balances for all four years in tabulated form, retirement of Rentenbank notes and their but such a table would tend to obscure the partial replacement by Reichsbank notes have essential qualifications to which the figures are placed a burden upon the reserves far heavier subject. Accordingly, the records of the four than the increase in the general circulation of years are given separately, but in as nearly the currency itself would have required. Fur- comparable form as possible. ther, as has already been indicated, the notes 1. Balance during the first annuity year, of the Rentenbank have constituted a con- 1924-25.—In the 12 months7 period from tingent liability which the Reichsbank has had September, 1924, to August, 1925, the excess to recognize in accumulating adequate gold of merchandise imports over exports, as reserves. Accordingly, it is important to note corrected, amounted to about 3,400,000,000 in the* diagram (on p. 135) not simply the reichsmarks. To this deficiency should be course of the Reichsbank's reserves in relation added the payments made in foreign curto its own circulation, but in relation to the rencies on reparation account, 271,000,000 Rentenbank's circulation in addition. gold marks; a further addition must be made On November 30, 1928, the Reichsbank's to cover the year's increase in the Reichsreserves of gold and eligible devisen stood in bank's gold stock, 622,000,000 reichsmarks; relation to the combined circulation of the and an indefinite amount covering the in- Reichsbank and Rentenbank at the highest crease in devisen holdings, a figure not reported point yet reached. for this period. In total and disregarding certain smaller items, such as interest on VII. GERMANY'S FOREIGN TRADE foreign debt, travelers' expenditures, wages of * * * ** foreign workmen, insurance, and so on, the net e. The balance of payments.—In preceding deficiency may be put at about 4,500,000,000 annual reports analyses have been made of the reichsmarks. balance of payments within such limits as the There were only two items, even stated available figures permitted. The essential approximately, to be entered on the other side parts of these analyses are repeated below, of the account. One was the volume of longalong with a similar statement for the past term public issues placed abroad, including the year. Inasmuch as many of the so-called German external loan, 1924, amounting in invisible items entering into a fully compre- terms of effective yield to Germany to a total hensive balance of payments are necessarily of about 1,200,000,000 reichsmarks. The other matters of estimate and deduction, no effort item, adapted from the figures of the Reich has been made to work to a mathematical statistical office, was the net amount paid to balance between the debit and credit sides of Germans on shipping and transportation acthe several accounts. The figures used have count, estimated at about 250,000,000 reichsbeen based upon the complete but partially marks. These items reduced the deficiency to conjectural statements published by the Insti- about 3,050,000,000. Conjecturally, this was tut fur Kon junk turf orschung; but these have covered by short loans, the volume of deposits been adjusted to cover somewhat different placed by foreigners in German banks over and periods of time to suit the annuity years. above the deposits placed by Germans abroad, Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

146 FEDERAL RESERVE BULLETIN FEBRUARY, 1929 the further return of German property previ- and disregarding such undetermined items as ously held abroad, the purchase by foreigners stock market and other profits removed from of property in Germany and retained there, Germany by foreigners, interest on foreign and other smaller items. The value to be debt, travelers' expenditures and so on, the placed upon these several factors remains a deficiency may be said to have been about matter of opinion. 3,400,000,000 reichsmarks. 2. Balance during the second annuity year, Against this deficit were again only two 1925-26.—In the 12 months' period from items which can be stated even approximately. September, 1925, to August, 1926, the official The first was the effective amount of capital figures showed a small deficit in the merchan- issues placed abroad during the period, estidise balance of tra4e, but after correction mated at about 1,275,000,000 reichsmarks. according to the precedent of the Institut fur The other was a net estimate for the amounts Kon junk turf or schung the value of exports paid by foreigners to Germans on shipping and showed an excess over imports in the round transportation account, in the sum of about amount of 300,000,000 reichsmarks. Shipping 300,000,000. These items reduced the defiand transportation earnings increased the sur- ciency to about 1,800,000,000. Conjecturally, plus further by about 300,000,000. In addi- this deficit, together with such supplements as tion, foreign credit in the shape of long-term are represented in various undetermined items, loans produced the effective amount of was covered by short loans, larger deposits of 1,750,000,000 reichsmarks. Without taking foreign money in German banks, sales of forinto account any other items for which figures eign securities for German account, and so on. are not available, such as purchases of property 4. Balance during the fourth annuity year, and shares of stock by foreigners, or remittances 1927-28.—In the 12 months' period from of emigrants or other receipts from abroad, the September, 1927, to August, 1928, the deficit surplus for the year stood at 2,350,000,000 in the merchandise trade balance after correcreichsmarks. tion amounted to about 2,600,000,000 reichs- Against this surplus were to be placed only marks. To this deficit must be added the repatwo items of known size. One was the net ration transfers in foreign currencies, amountfigure for reparation transfers in foreign cur- ing to 943,000,000 gold marks. A further rencies, amounting to 416,000,000 gold marks, substantial addition must be made to cover the and the other was the reported increase for the year's increase in the Reichsbank's reserves of year in the Reichsbank's stock of gold and gold and devisen, amounting to 433,000,000 devisen amounting to 495,000,000 reichsmarks. reichsmarks. In total, and disregarding unde- These items, amounting to about 900,000,000, termined items, such as interest on foreign reduced the surplus to about 1,450,000,000. debt, travelers' expenditures, wages of foreign This amount remained conjecturally to cover workmen, and so on, the deficiency may be such items as the repayment of short debt, the said to have been about 4,000,000,000 reichsservice of long-term loans, some repurchase of marks. long-term German obligations placed abroad, Against this deficit are to be placed only two purchases of securities of foreign origin, credit items which can be stated even approximately. given to foreigners in the form of increased The first is the effective amount of capital issues deposits in foreign banks, and other smaller placed abroad during the period, with a fair items. allowance for foreign participations in domes- 3. Balance during the third annuity year, tic issues, estimated altogether at 1,800,000,000 1926-27—In the 12 months' period from Sep- reichsmarks. The other item covers the net tember, 1926, to August, 1927, the position of amount estimated to have been paid to Germans the German balance of payments was much on shipping and transportation account, about changed from the foregoing. The merchandise 350,000,000. These items reduce the deficiency balance reverted to the condition of 1924-25 to about 1,850,000,000, about the same as that and became heavily adverse. The value of for the preceding year. Conjecturally, this imports exceeded exports after correction by a deficit, together with such supplements to it round amount of 2,700,000,000 reichsmarks. as are represented in various undetermined # To this deficit should be added the reparation items, was covered by short loans, the return transfers in foreign currencies amounting to to German possession of property held abroad, 683,000,000 gold marks, and a further slight increased deposits in German banks, and so on. addition made to cover the year's increase in 5. Summary.—From the foregoing analysis, the Reichsbank's reserves of gold and devisen though it is necessarily superficial and in its amounting to 20,000,000 reichsmarks. In total balancing items conjectural, the character of Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

FEBRUARY, 192& FEDERAL RESERVE BULLETIN 147 the four years is apparent. In the first annuity to the creditor powers. But the fact that there year there was a substantial increase in the was still no final determination of Germany's German debt owing abroad both at long and reparation liabilities has left an element of short time. In the second annuity year the uncertainty in the plan itself and in the affairs increase in the sum total of German debt was of all the countries concerned in reparations, slightly less than the increase in the Reichs- and it has become increasingly clear that a final bank's stock of gold and devisen. In the settlement of the problem to be achieved by third annuity year the debt was again much mutual agreement would be in the best interests increased without substantial increase in the of the creditor powers and of Germany alike. Reichsbank's stock of gold and devisen. In A decisive step has now been taken in this the fourth annuity year there was again an direction. Representatives of the Governincrease in the sum total of the German debt ments of Germany, Belgium, France, Great owing abroad, but with a considerable offset Britain, Italy, and Japan reached an agreement in the shape of further increments to the at Geneva on September 16, 1928, on "the Reichsbank's stock of gold. necessity for a complete and definite settlement of the reparation problem and for the constitu- * * * ** tion for this purpose of a committee of financial IX. CONCLUSIONS experts to be nominated by the six Govern- The first committee of experts was invited ments." Since that date the six Governments by the Reparation Commission in its decision which joined in this decision have been engaged of November 30, 1923, to "consider the in further negotiations with respect to the means of balancing the budget and the practical steps to be taken to carry it into effect. measures to be taken to stabilize the cur- These negotiations have resulted in an agreerency" of Germany; but it was not within ment, announced December 22, 1928, on the its competence to consider the definitive fixa- constitution of the new committee of experts, tion of Germany's reparation liabilities. It which is to meet as soon as possible and which would, indeed, have been impossible, in the will receive from the six Governments a manstate of confusion which then existed, to reach date along the following lines: any final decision as to the number and amounts of the annuities which Germany would have to The German, Belg&n, French, British, Italian, and Japanese Governments, in pursuance of the decision pay or as to the total amount of the reparation reached at Geneva on September 16, 1928, whereby it debt. Accordingly, the committee presented a was agreed to set up a committee of independent plan which it described as providing a " settle- financial experts, hereby intrust to the committee the ment extending in its application for a sufficient task of drawing up proposals for a complete and final settlement of the reparation problem; these proposals time to restore confidence," and as being so shall provide for a settlement of the obligations resultframed as to permit a final and comprehensive ing from the existing treaties and agreements between agreement "as soon as circumstances make this Germany and the creditor powers. The committee possible." shall address its report to the Governments which took part in the Geneva decision and also to the Reparation This report, with those which have preceded Commission. it, presents the record of what has been accomplished during the four years in which the The new experts' committee, in other words, experts' plan has been in operation. Funda- is to draw up " proposals for a complete and mentally, confidence has been restored, and final settlement of the reparation problem/' Germany has been reestablished as a going con- and it is thus expressly empowered by the cern on a relatively high level of economic Governments concerned to consider the fundaactivity. From the very outset, moreover, the mental problem still remaining to be solved and plan has realized its primary object by securing to carry to its logical conclusion the work of the the expected reparation payments and transfers first committee of experts. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

148 FEDERAL RESERVE BULLETIN FEBRUARY, 1929 FINANCIAL STATISTICS FOR FOREIGN COUNTRIES CONDITION OF CENTRAL BANKS [Figures are for the last report date of month] 1928 1927 1928 1927 Decem- Novem- Octo- Decem- Decem-Novem- Octo- December ber ber ber ber ber ber Bank of England (millions of pounds National Bank of Bulgaria (millions sterling): of leva): Issue department- Gold.... 1,323 1,319 1,317 1,277 Gold coin and bullion. 153.8 159.1 163.5 151.5 Net foreign exchange 2,258 Notes issued 413.8 419.1 183.2 171.2 Total foreign exchange 3, 267 1,390 1,092 477 Banking department- Loans and discounts 1,261 1,205 1,238 948 Gold and silver coin .3 1.5 Government obligations 3,781 4,421 4,471 4,514 Bank notes 25.5 52.1 48.7 32.5 Note circulation 4,173 4,379 4,610 3,727 D G O i o t s h v c e e o r r u n s n e m t c s e u n a ri t n t i d s e e s a c d u v ri a t n ie c s es 6 2 1 5 7 8 . . . 9 3 9 2 5 1 0 2 3 . . . 2 6 2 4 4 2 2 . . 6 6 4 7 8 4 . . 6 4 Cent O ra th l er B a si n g k h t o li f a b C il h i i t l i e e s (mill . io ._ ns of 3,425 2,664 2,234 1,387 B P O u a th b n e l k i r e c r d s d e e p d p o e o s p s i o t i s s ts it . s 6 3 1 9 7 3 . . . 5 5 0 2 6 3 2 7 1 . . . 4 2 5 10 1 3 4 . . 1 5 12 14 4 . . 6 0 D G e o p ld o s a i t t s h o ab m r e oad 47 6 7 1 5 6 0 1 5 5 6 7 1 1 40 6 2 1 Bank R e n s o e t r e v s e in ra c ti i o rc 1 u ( l p a e ti r o c n e 2 nt) 3 2 8 1 8 . . 5 2 3 4 6 3 7 . . 6 0 4 7 2 8 . . 6 3 ! ' 24.1 N Lo o a te n s c i a r n c d ul d at i i s o c n ounts . 3 4 3 9 2 31 1 9 1 31 1 2 1 27 4 4 5 Currency notes and certificates... 291.6 82.5 Deposits 157 162 235 107 299.8 ank of France (millions of francs):3 Bank of the Republic of Colombia Gold 31,977 31, 600 30, 786 (thousands of pesos): Sight balances abroad _. 13, 510 13,386 13,983 Gold at home - - 25, 049 24, 950 20, 510 Foreign bills 19,215 18, 865 18, 525 Gold abroad 41,714 41, 729 23, 711 Foreign exchange loaned— 1,300 1,720 Loans and discounts 7,920 7,001 18, 237 Loans and discounts 7,889 5,535 6,252 i Note circulation 52,077 51,091 46,370 Negotiable bonds.__ 5,930 5,930 5,930 I Deposits — 11, 546 11, 777 7,109 Note circulation _ 63, 916 62, 660 61,327 | Public deposits 12, 214 12, 576 11,928 Czechoslovak National Bank (mil- Other deposits. 7,018 6,119 lions of Czechoslovak crowns): Gold and silver 1,199 1,159 1,159 1,108 German Reichsbank (millions of Foreign balances and currency... 2,510 2,339 2,129 2,424 reichsmarks): Loans and advances 483 392 491 126 Gold reserve _ 2, $& 2, 538 2,447 1,783 Assets of banking office in liqui- Gold abroad 86 81 dation 430 437 445 498 Reserves in foreign exchange 155 173 163 282 Note circulation 7,818 7,825 8,417 Bills of exchange and checks 2,627 2,211 2,348 3,129 Deposits 830 777 690 Miscellaneous assets 530 513 513 499 Deposits 816 473 494 779 Bank of Danzig (thousands of Dan- Reichsmarks in circulation 4,724 4,672 4,564 zig gulden): Rentenmarks in circulation 537 537 558 740 Balances with Bank of England.. 18, 242 17,211 15,475 14,139 Foreign bills, etc 18, 647 18, 559 20, 412 34,605 Bank of Italy (millions of lire): Loans and discounts 22, 512 22, 560 22, 356 22, 238 Gold at home 5,052 5,052 4,547 Note circulation 39,416 38, 567 37,886 36, 008 Credits and balances abroad. 5,992 6,125 7,559 Deposits 3,636 2,513 2,121 2,920 Loans and discounts 4,841 5,198 5,414 Total note circulation _ 17,119 17, 236 17,992 Public deposits 300 300 1,106 Danish National Bank (millions of Other deposits _ 2,157 2,319 2,724 kroner): Gold 173 173 173 182 Bank of Japan (millions of yen): Foreign bills, etc 114 96 105 97 Gold 1,062 1,063 1,063 1,063 Loans and discounts 71 63 74 95 Advances and discounts 897 813 826 888 Note circulation... 360 354 361 354 Advances on foreign bills 81 29 29 78 Deposits 53 26 33 47 Government bonds _. 198 192 190 228 Notes issued. 1,773 1,258 1,306 1,682 National Bank of Egypt (thousands Total deposits _ 545 943 702 of Egyptian pounds sterling): Gold 3,829 6 3,720 Austrian National Bank (millions of English Government securities... 28,960 24,305 schillings): Egyptian Government securities. 22,135 22, 055 Gold 169 169 169 84 Note circulation __ 31,637 27,471 Foreign bills of the reserve 243 237 246 379 Government deposits 19,618 16,967 Other foreign bills _ 386 327 323 274 Other deposits. 15,061 16,797 Domestic bills _ _ 208 145 147 132 Treasury bills 116 166 166 173 Note circulation 1,067 984 1,007 1,005 Bank of Estonia (thousands of Deposits _ _ 56 63 47 40 krones): Gold 6,414 10,015 5,137 National Bank of Belgium (millions Net foreign exchange 26,684 24,287 11,957 of belgas): Loans and discounts 30,186 28,465 56, 621 Gold _ „ 903 829 813 719 Note circulation 37, 709 23,623 Foreign bills and balances in gold. 567 539 544 525 Deposits- Domestic and foreign bills. 682 637 617 585 Government 17,182 17,688 37,54 Loans to State (4) 366 371 394 Bankers _ 1,561 1,192 8,725 Note circulation 2,322 2,306 2,325 2,043 Other 4,018 3,509 Deposits 231 109 81 214 1 Ratio of gold and notes in banking department to deposit liabilities. 3 New form of bank statement adopted in June. 2 Notes issued, less amounts held in banking department and in cur- 4 Figures not yet available. rency note account. 6 Figures for November 30, 1927. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

FEBRUARY, 1929 FEDERAL RESERVE BULLETIN 149 CONDITION OF CENTRAL BANKS—Continued [Figures are for the last report date of month] 1928 1927 1928 1927 Decem- Novem- Octo- Decem- Decem- Novem-! Octo- December ber ber i ber ber ber j ber ber Bank of Finland (millions of Fin- Bank of Poland (millions of zlotys): nish marks): Gold at home. _ _. 426 426 408 353 Gold 304 305 306 317 Gold abroad 195 182 j 195 164 Balances abroad and foreign Foreign exchange, etc.— i credits _J 732 710 683 1, 360 Serving as note cover 527 508 482 Foreign bills __ _i 19 26 41 48 All other 187 194 197 207 Domestic bills | 1,378 1, 289 640 Loans and discounts 732 71W0±9 i 727 497 State debts. _-j 122 Note circulation 1,295 1, 270 1,313 1,003 Note circulation j 1,513 1,502 1,539 1,514 Current account of the treasury. _ 287 286 249 361 Demand liabilities i 492 410 339 634 Other current accounts.. 237 247 227 299 Bank of Portugal (millions of escu- \ Ba m n a k e ) o : f 6 Greece (millions of drach- dos G ): o ld I : 9 9 I 9 Gold 548 543 Balances abroad.-. _ i 292 279 286 161 Net foreign exchange in reserve—. 3,628 3,540 Bills [ 249 240 240 213 Total foreign exchange. _ _ 4,565 4,490 Note circulation 1,976 1,924 1,945 1,832 Government obligations 3,790 3, 790 Deposits.. ! 73 70 59 96 Note circulation. _ 5,599 5,759 Other sight liabilities.. ... 2,112 1,851 National Bank of Rumania (millions ! of lei): I National Bank of Hungary (mil- Gold at home ' 156 j 156 150 lions of pengo): Loans and discounts _ _! _. 12,425 ! 12,388 11,416 G Fo o r l e d ign bills, etc 2 5 0 4 1 ! i 20 5 1 7 20 5 1 2 1 11 9 4 7 A N d o v te a n c c ir e c s u t l o a ti S o t n a te • I , 2 1 1 0 , , 7 6 5 7 6 9 ! I 2 1 1 0 , , 9 6 5 7 9 9 2 1 1 0 , , 0 6 2 7 6 9 Loans and discounts 417 384 411 332 State Bank of Russia (note issuing | Advances to treasury 97 104 104 111 department; thousands of cher- | Other assets 105 111 107 244 vontsi): | Note circulation 513 476 542 487 Gold 17, 856 17, 819 15,838 :18,858 Deposits 241 259 213 309 Foreign currency 7,846 7,910 8,530 ; 7,350 Miscellaneous liabilities 94 96 93 179 Loans and discounts. 82, 586 82,490 83,721 i77,445 Bank notes 112, 256 112,130 112, 328 104,404 Bank of Java (millions of florins): National Bank of the Kingdom of Gold - --. 171 171 178 Serbs, Croats, and Slovenes (mil- Foreign bills 38 33 24 lions of dinars): Loans and discounts 111 109 128 Gold 91 91 91 ; 89 N D o ep te o s c i i t r s culation 31 6 5 5 32 6 1 1 32 5 0 4 L Fo o r a e n i s g n a n n d o t d e i s s c a o n u d n c ts r edits _. 1,7 2 2 3 4 1 1, 2 6 6 6 7 0 1, 2 7 7 1 1 0 I ; 1, 3 6 4 8 6 3 Advances to State 2,966 2, 966 2,966 2,966 ank of Latvia (millions of lats): Note circulation 5,528 5,598 5,786 i 5,743 Gold 24 24 24 ! Deposits. 812 639 643 ! 1,087 N L B G F O o o i o o t l h r a l t v e s e e n e i r s g r c n n d ir m e c e p e u x o n l c s a t h i t t a i d s n o e g n p e .. o r s e i s t e s r ,- ve --. 1 4 4 8 6 0 7 6 5 7 6 8 2 1 4 4 7 8 0 7 2 4 1 6 5 7 1 4 4 8 8 0 2 5 4 4 3 | So s u a t n D N F G h d o o o o s r l m t A e d e o i f e g f r c s n i i t p c r i a c c o b n u u i b l l n l a i R s d l t . _ i s l e o s s . . n s e - t . r - e v r e l in B g a ) _ n : k (thou- - 7 9 6 1 , , , , 1 7 2 9 6 4 5 8 8 6 3 1 7 7 7 , , , 2 6 9 7 9 9 8 2 5 9 0 0 ' ; ! j ' 8 7 9 1 , , , , 2 3 7 19 2 0 0 7 6 2 9 Deposits- Bank of Lithuania (millions of litas): Government 2,121 1,703 ! 1,963 Gold Bankers 5,183 5,279 i 4,923 Foreign currency Others 275 237 ! 164 Loans and discounts Note circulation -. Bank of Spain (millions of pesetas): Deposits Gold 2,559 2,559 2,609 2,604 Silver 698 698 685 Ne in t s h F G ) e : o o r r l l e d a i n g d n s bi B ll a s nk (million - s of flor- 4 22 3 0 5 4 20 3 7 5 4 1 3 8 5 7 4 1 0 6 0 8 B L N D o a e o l a p t a e n o n s s c c i i a e t r s s n c d u a l b d a r t i o i s o a c n d ounts 4 1 , , 3 9 9 7 8 9 5 7 3 4 4 4 1 , , 9 3 9 9 3 1 2 1 3 6 7 4 2 , , 3 9 0 8 4 5 1 6 8 4 1 1 , , , 2 7 0 0 3 7 3 2 0 9 7 Loans and discounts 219 172 199 247 Bank of Sweden (millions of kronor): Note circulation 854 818 829 797 Gold 236 237 237 230 Deposits 56 39 34 99 Foreign bills, etc 216 179 156 264 Loans and discounts 465 308 374 Bank of Norway (millions of kroner): Note circulation 546 538 517 526 Gold.... - - 147 147 147 147 Deposits. 285 112 116 268 Foreign balances and bills 41 31 31 47 Swiss National Bank (millions of Domestic credits 272 281 274 261 francs): Note circulation 316 302 307 331 Gold.... -- 533 469 470 517 Foreign deposits 2 2 2 5 Foreign balances and bills 254 263 238 Total deposits 92 105 95 95 Loans and discounts 300 197 234 449 Note circulation 953 878 885 917 Reserve Bank of Peru (thousands of Demand deposits-- 196 109 92 8 153 libra): Gold 4,097 4,105 4,091 3,994 Bank of the Republic of Uruguay Gold against demand deposits 319 311 325 422 (thousands of pesos): Foreign exchange reserve 1,350 1,463 1,185 785 Gold- 57, 357 Bills.. 1,366 1,160 1,493 1,865 Loans and discounts 100,973 99, 638 Note circulation 6,122 6,059 5,994 Note circulation 65, 571 71, 787 Deposits 639 621 650 Deposits 82,153 79,023 • New form of bank statement adopted in May. 7 Foreign balances only. » Total deposits. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

150 FEDERAL RESERVE BULLETIN FEBRUARY, 1929 CONDITION OF COMMERCIAL BANKS [Figures are for the last report date of month except for London clearing banks, which are daily averages] 1928 1927 1928 1927 i De- ! No- Octo- De- j No- ! Octo- Sep- ; November jvember ber cember : vemberi ber tember j vember I Nine London clearing banks (mil- j lio M ns o o n f e y p o a u t n c d a s l l s a te n r d l i s n h g o ): r t no t t ice. _ J . • ; j 143 145 155 Jo l i i n o t n - s s t o o f c k k ro b n a e n r k ) s : of Denmark (mil- j j Advances and discounts i i 1,190 1,187 : 1,149 Loans and discounts 1, 701 1,821 1,879 i Investments ! 241 243 234 Due from foreign banks I 157 140 139 1 53 Deposits - ! 1,752 1,753 : 1,729 Due to foreign banks 82 91 92 i 102 Deposits and current accounts 1,931 1,928 1,975 j 2,059 Six Berlin banks (millions of reichs- ! | marks): ! Joint-stock banks of Finland (mil- Bills and treasury notes i ! 2,399 lions of Finnish marks): • Due from other banks : . 1,059 Loans and discounts I 9,551 9,717 9,621 j 8,066 Miscellaneous loans.. 6,361 Due from abroad. 244 219 279 I 391 A D c ep ce o p si t t a s n ces1 ; -.- I 9,1 3 7 9 6 9 D De u p e o t s o i ts abroad. 7,3 4 0 8 9 5 7,6 4 2 6 6 3 7,6 4 1 6 3 0 I I 6,8 3 6 7 8 2 Tokyo banks (millions of yen): ! Three commercial banks of France Cash on hand 203 j 340 371 i 273 (millions of francs): Total loans I.1 2,093 : 2,038 2,051 2,292 Bills and national-defense bonds.. 19, 675 20,074 14,863 Total deposits 2,096! 2,117 2,139 j 1, 932 Loans and advances 8,673 8,285 5,527 Total clearings . 2, 716 j 2,427 2,660 ; 2,943 Demand deposits 32, 274 31, 753 24,642 Time deposits. 492 477 432 1928 1927 Four private banks of Italy (millions j I of lire): No- Octo- Sep- No- Cash !.. 1,126 3 1,242 vember ber tember vember Bills discounted j. 8,855 3 8,897 Due from correspondents . 5,144 3 5,454 Banks of Buenos Aires, Argentina Due to correspondents j_. 13, 735 3 13, 790 (millions of gold pesos): Deposits._ L. 2,925 3 2, 567 Gold- Bank of the Nation 140 140 152 69 Joint-stock banks of Norway (mil- I Other banks 12 12 12 11 lions of kroner): i Other cash- Loans and discounts • 1,383 1,393 1,394 1,599 Bank of the Nation 155 153 161 164 Due from foreign banks _ _ _ _: 102 104 123 79 Loan O s t h a e n r d b d a is n c k o s unts— 217 217 218 195 D Re u d e is to c o f u or n e t i s g n banks ' 1 8 3 9 9 1 9 3 4 7 1 1 1 3 0 7 1 1 7 3 4 3 Bank of the Nation __. 501 498 487 509 Deposits __! 1,562 1,576 1,591 1,706 Other banks 806 791 776 736 Deposits- Joint-stock banks of Poland (mil- ! Bank of the Nation 783 776 774 718 lions of zlotys): \ Other banks 988 984 970 888 Loans and discounts | <769 760 744 534 Due from foreign banks j 4 34 34 30 26 Chartered banks of Canada (mil- Due to foreign banks «157 146 131 79 lions of dollars): Rediscounts U49 149 149 110 Gold coin and bullion 2 67 68 68 69 Deposits *479 471 476 353 Current loans and discounts 1,477 1,476 1,430 1,329 Money at call and short notice... 527 546 555 522 Joint-stock banks of Sweden (mil- Public and railway securities 488 442 486 488 lions of kroner): Note circulation 187 190 193 181 Loans and discounts 4,155 4,145 4,147 4,116 Individual deposits 2,633 2,585 2,510 2,521 Foreign bills and credits abroad.. 313 319 323 ^303 Gold reserve against Dominion Due to foreign banks 139 136 135 147 notes T 109 84 82 135 Rediscounts | 138 165 231 '*• 70 Dominion note circulation _. 237 220 197 214 Deposits ! 3, 511 3,574 3,562 3,553 1 Checks formerly included under "Acceptances" are included under "Bills and^treasury notes" beginning with the March, 1928, statement. 2 Not including gold held abroad. 3 Figures are for October, 1927. < Preliminary. 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 Austria July 17,1928 i Estonia Jan. 2,1928 Japan 5.48 Oct. 10,1927 Portugal 8 July 27,1926 Belgium 4 2 June 30,1928 Finland... 7 2 Nov. 15,1928 Java __ 6 May 3,1925 Rumania- 6 Sept. 4,1920 Bulgaria 9 Dec. 15,1928 ! France Jan. 19,1928 Latvia 6-7 Apr. 1,1928 Russia 8 Mar. 22,1927 Chile Oct. 22,1928 j Germany. Jan. 12,1929 Lithuania... 7 Feb. 1,1925 South Africa Jan. 9,1928 Colombia _ May 15,1924 1 Greece 8 Jan. 5,1929 Netherlands 43/2 Oct. 13,1927 Spain Dec. 19,1928 Czechoslovakia. 5 Mar. 8,1927 1 Hungary _. 7 Oct. 2,1928 Norway Mar. 27,1928 Sweden Aug. 24,1928 Danzig... 6 June 21,1927 India 7 Dec. 13,1928 Peru 6H May 17,1928 Switzerland- Oct. 22,1925 Denmark June 24,1926 Italy 6 Jan. 7,1929 Poland 8 May 13,1927 Yugoslavia.. 6 2 June 23,1922 England... 5M Feb. 7,1929 I Changes: Bank of Greece, from 9 to 8 per cent on January 5,1929; Bank of England, from \XA to 5% per cent on February 7,1929. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

FEBKUABT, 1929 FEDERAL RESERVE BULLETIN 151 MONEY RATES IN FOREIGN COUNTRIES Netherlands (Amster- Switzer- England (London) Germany (Berlin) dam) land Month Bank f e r 3 s 3 ' Da m y- o t n o e -d y ay o a B n l l a d o n w e k p a e o n r s c s i ' e ts d P is r r i c a v o t a e u t n e t M 1 o m ne o y n t f h o r | Da m y- o t n o e -d y a y | ' rate M 1 o m ne o y n t f h o r | | d P i r s i c v o a u t n e t ths i j | 1927 January 4.17 4.21 3.65 3 4.20 ; 6.06 3.78 2.97 2.93 i 3.16 February 4.19 4.32 3.93 3 4.23 5.77 ! 5.19 3.47 3.02 ! 2.87 March 4.33 4.36 4.07 4. 59 I 6.91 4.87 3.50 3.55 2.98 April 4.04 4.04 3.64 3-234| 4.61 6.57 • 5.63 3.47 3. 72 ; 3.13 May 3.88 : 3.84 3.73 234 4.90 : 6.95 ! 5.99 3.46 3.76 ! 3.19 June 4.34 i 4.36 3.43 234; 5.39 ; 7.73 | 5.79 3.57 3.87 3.42 July 4.33 4.33 3.50 5.90 ! 8.49 : 7.06 3.53 3.25 ! 3.47 A S O e u c p t g o t u e b s m e t r ber... 4 4 4 . . . 3 3 3 3 2 2 ;! 4 4 4 . . . 3 3 3 5 3 3 3 3 3 . . . 5 5 6 5 7 1 2 m 341 l ! 5 5 6 . . . 8 6 9 2 9 0 I 8 8 8. . . 7 3 3 2 0 8 I i ! 6 5 7 . . . 0 8 1 0 1 9 4 3 3 . . .5 4 1 6 5 1 4 3 3 . . . 2 4 8 9 0 2 ! ; 3 3 3 . . . 4 3 3 4 8 9 Noveinber..- 4.33 ; 4.34 3.62 6.76 8.72 • 6.03 4.50 4.73 : 3.39 December... 4.31 4.31 3.44 9.10 i 7.24 4.49 4.85 : 3.40 1928 J F a e n b u r a u r a y ry 4 4. . 1 1 8 9 ; : ' 4 4. . 1 1 8 3 3 3 . .4 6 9 3 2 23 H 4 6 6 . .2 2 7 0 ! 7 7 . . 6 3 6 0 6 5 .6 .1 6 6 '• i • 4 3 . .9 2 7 9 4 3. . 8 1 0 0 ! 3 3. . 1 2 2 9 March. 4.12 4.07 3.63 234 6.72 7.51 6.81 3.97 3.89 ' 3.20 April 4.02 i 4.01 3.57 234 6.71 7.57 6.64 4.18 3.93 ; 3.29 May 3.97 3.95 3.58 234 6.66 i 7.80 7.00 , 4.27 4.17 ; 3.32 June 3.82 3.80 3.26 234 6.59 8.08 6.37 ! 4.18 4.11 I 3.40 July 3.99 3.97 3.27 234 6.74 8.18 7.74 i 4.10 3.84 : 3.44 August. 4.27 4.26 3.50 2H 6.68 8.19 6.12 j 4.13 3.90 ; 3.41 September- _ 4.23 4.19 3.55 234 6.65 8.58 6.65 I 4.39 4.35 ! 3.38 October 4.35 4.37 3.80 2J4 6.57 8.26 6.70 ! 4.40 4.42 ! 3.38 November... 4.38 4.30 3.64 234 6.28 8.15 6.70 i 4.44 4.74 ! 3.35 December... 4.37 : 4.37 I 3.22 6.28 I 8.77 7.30 I 4.42 4.67 3.32 ! ! Sweden Belgium France Italy Austria (Vienna) Hungary (Stock- Japan (Tokyo) (Brussels) (Paris) (Milan) holm) Month d P is r r c i a v o t a e u t n e t d P i r s r i c a v o t a e u t n e t d P is r r c i a v o t a e u t n e t d P is r r i c a v o t a e u t n e t M m fo o o r n n e t 1 h y c c i o a P l m r i p m m a e p e r e - r Da m y- o t n o e -d y ay L m oa t o O n n s t 3 h u s p • | D isc b h o : l l l u lc ls n ; ted ov m e C o rn a n l i e l g y ht T 1927 January 3.90 4.99 9.25 534 -6iMe 6. 39-8. 76 4. 56-7. 30 February 3.99 4.45 9.25 43/4 -5 634-734 6. 21-8. 03 2. 92-7. 30 March 4.19 3.89 9.25 4% -534 634-734 5. 84-7. 67 4. 38-6. 21 April 4.33 3.17 9.25 534 -5% 634-734 634-734 5. 84-8. 03 4. 38-5. 29 May__ 4.23 2.46 8.50 5?4 -5% 634-8 %%i 6. 57-7. 67 4. 38-4. 75 June 4.17 2.25 7.60 5% -51% 6H-7H 7 -7% 5H-6H' 6. 57-8. 76 4. 38-5.11 July 3.84 2.13 i 7.00 5% -6% 7 -8% 734-8 6 -7 i 6. 21-8.40 3. 65-5.11 August 3.84 2.04 ! 7.00 634 -6% 7H-SU 6 -7% i 5. 48-8. 03 3. 65-4. 75 September 3.75 2.01 | 6.81 634 -6Me 7 -834 6 -7H| 5.11-7. 67 2.19-4. 38 October 3.87 1.82 ' 6.50 71/3-8% 6 -7%. 4. 75-7. 30 2.19-4. 38 November 4.09 2.75 6.27 7H-8^ 7 -83.3; 5H-7H\ 5.11-7. 30 2. 74-4. 02 December 4.15 2.95 6.00 6^4-8% m-7%\ 5.48-7. 67 2.19-5. 84 1928 January 4.08 2.81 6.00 5% -6H 4. 38-7. 67 1. 64-5.11 February 3.90 2.75 5.89 5% -5iMe 61/2-734 M/ 4. 38-6. 21 1.46-4. 02 March __. 4.10 2.72 5.75 b% -594 0 6^3-7^3 5 -79*1 4. 02-5. 84 2. 92-4. 02 April 4.25 2.62 5.49 5Me -5H 5H-7*A\ 4. 75-5. 84 2. 56-4. 02 May 4.25 2.62 5.25 534 -5U 6 3^3-7 H! 7H8H 4. 75-5. 84 1. 46-4. 02 June 4.27 2.90 5.25 5iMo-5i34< 6%-81/ij 7%-m 6& i 4. 38-5. 84 1. 46-4. 02 J A u u ly gust 4 4 . .0 0 0 2 I 3 3 . . 1 2 2 3 5 5 . . 2 2 5 5 6 53 3/ 4 ie - - 6 6 3 H 4 6 7H ^- - 8 8 1 1 / / 4 3 ! j 7 7u % -m -m H/ -6 6 H H I ! 4 4 . . 3 3 8 8 - - 5 5 . . 8 8 4 4 2 1. . 9 4 2 6 - - 4 4 . . 0 0 2 2 September-_. 3.96 3.26 5.25 6Me -634 51/2-73^ 4. 75-5. 84 2. 37-4. 02 October 3.94 3.37 5.25 6H 71/4-81/2 4. 75-6. 21 2. 92-4. 02 November 3.94 I 3.37 5.45 7U-9 6}4-8%; 4. 75-6. 75 2. 01-4. 02 December 3.94 ! 3.41 5.50 NOTE.—For sources used, methods of quotation, and back figures, see the FEDERAL RESERVE BULLETIN for November, 1926, and April, 1927. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

152 FEDERAL RESERVE BULLETIN FEBRUARY, 1929 GOLD MOVEMENTS [In thousands of dollars] South United States Germany Great Britain Netherlands Africa India Month Net Net Net Net Net Net Im- Ex- imports Im- Ex- imports Im- Ex- imports Im- Ex- imports imports imports ports ports or ex- ports ports or ex- ports ports or ex- ports ports or ex- or ex- or exports ports ports ports ports ports () () () () () () 1927 | January 59,355 14,890 44,465 14,088 525 13,563 11,514: 18,181 -6,667 1,303 74 1,228 -18,899 2,518 February 22, 309 2,414 19,895 6,231 659 5, 572' 15, 742! 15, 480 262! 411 411 -15,036! 6,543 March 16, 382 5,625 10, 757 6,576 840 5, 7361 7,526 6,894 6321 488 39 449 i -16,924 10, 041 April 14,503 2,592 11,911 935 666 2691 24,678 3,735 20,943 281 1,334 -l,053| -21,7851 4,941 May 34, 212 2,510 31, 702 705 673 32 16, 464 26, 580 -10,116 46 3,01; -14,720 4,890 June 14, 611 1,840 12, 771 711 662 49: 8,435 9,674 -1,239! 2, 653 5,190 -2,537 -16,923 7,122 July_ 10, 738 1,803 8,935 705 685 20; 13,071 6,061 7,010' 202 4, — -4,421 -21,896 5,936 August 7,877 1,524 6,353 11, 259 680 10,579 i 21,469 5,782 15, 687! 103 2,477 -2,373! -12,053 2,860 September 12,979 24,444 -11,465 1,483 876 607. 8,381 7,637 744; 125 47 78 -23,064 3,315 October 2,056 10,698 -8,642 1,668 96! 699; 6,126 4,726 1,400 189 35 154 —15, 435 2,685 November 2,082 55, 266 -53,184 1,627 97i 652 15,012! 21, 709 -6, 696l 433 102 331 -16,456 4,408 December 10,431 77, 849 -67, 418 1,635 925 710: 9,485j 10,546 -1,0601 4,264 2 4,262 -19, r~ 3,916 Total ___! 207,535 201,455 47, 622 9,135 38,487, 157,905 j 137,008 20, 896: 10,498 16,937 -6, 439 -212, 279i 59,175 1928 January 38,320 52, 086 -13,766 1,113 704 409 20, 0421 10,875 9,167; 12, 725 12, 716j -12,834 8,590 February 14, 686 25,806 -11,120 6,074 844 5, 230; 13,0261 19, 257 -6,231 227 1,147 -920 -21, 339 6,952 March 97,536 -94,853 9,018 1,008 8, OlOi 6,289! 78, 605 -72, 316 192 7 185 -18,303! 9,544 April 5,319 -91,150 29,834 822 29,012' 11, 760i 2,943 8,816 66 19 47 —17,923j 8, 250 May -81, 721 1,175 688 487 18, 746 5,498 13, 248 157 379 -222 -17,339 8,664 June 20^ 000 99,932 -79,932 11, 276 707 10,569 39,672 A 409 33, 263' 89 38 51 -21, 0281 6,238 July.. 10, 331 74,190 -63,859 28,024.' 632 27, 392 23,958 0,436 14,522 107 31 76 — 16,919i 2,128 August 2,445 1,698 747 14, 058! 765 13, 2931 24,055 20,180; 3,875. 125 22 103 -22,300 2,994 September 4,273 3,810 463 37,0841 783 36, 30l! 19, 2331 28, 247! -9, 014 389 3 386 -15,315 1,680 October 14,331 992 13,339 34,146! 844 33,302! 15,824 45, 597| -29, 773; 856 36 820 4,604 November 29,591 22,916 6,676 23, 261 943 22, 318 22, 261 41, 989J -19,728. 414 23 392 6,426 December 24,940 ir~ 23,304 26, 923 802 26,121 17, 792 25, 502 -7, 710 170 65 5 Total.. 168,887 560, 759-391,872 221,986 9,542 212,444 232, 658 294,539|—61,881f 15,417 1,778 13, 639 MOVEMENTS TO AND FROM GREAT BRITAIN MOVEMENTS TO AND FROM BRITISH INDIA [In thousands of dollars] [In thousands of dollars! 1928 1927 1928 1927 From or to— December D Ja e n ce u m ar b y e - r Calendar year From or to— November N Ja o n v u em ar b y e - r Calendar year Im- Ex- Im- Ex- Im- Ex- Im- Ex- Im- Ex- Im- Exports ports ports ports ports ports ports ports ports ports ports ports France 750 297 912 97,178 627 14,769 England 1,014 10,333 13,780 Germany 23,191 258 102,423 190 17,034 United States 12 4,086 525 Netherlands 19 56 145 7,081 2,313 16,494 Aden and depend- Russia 69 18, 582 1892 7,732 encies 92 829 1,288 Spain and Canaries. 8 9,733 199 7,445 Arabia 107 736 6 1,089 Switzerland 549 13,493 6,213 British Oceania 626 4,752 2,224 United States 32, 532 32,132 8,567 28,042 Bahrein Islands 285 730 South America 25 1,166 1,074 2,017 19,392 Ceylon 5 720 1,028 2 British India 534 10, 770 12,462 China 23 150 186 British Malaya 331 71 1,810 3,452 Mesopotamia 228 1,399 1,160 Egypt 1,309 1,309 1,384 3,799 Straits Settlements 1 1 200 43 375 Rhodesia 385 5,280 5,958 Egypt 978 6,235 7,361 91 Transvaal- 13,876 144,482 124,348 Natal 3,341 36,438 29,486 West Africa 357 3,384 16 4,705 20 All other countries.. 44 49 11 All other countries- 1,001 536 14,803 26,978 18,079 134,566 Total... 6,427 1 66,163 94 59,280 104 Total 17, 792 25,502 232,658 294,539 1157,697 1141,421 1Revised annual figures. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

153 FEBRUARY 1929 FEDERAL RESERVE BULLETIN 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 l r in 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 i o a 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 a k nd a) F (f r r a a n nc c ) e G ( m e re r a i m c 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 0.72 (2) 26.80 486. 65 2.52 3.92 23.82 1.30 17.49 1928—January 14.0936 13.9444 .7234 2.9628 26.7829 487.5330 2.5187 3.9308 23.8264 1.3255 17.4748 June 14.0685 13.9615 .7199 2.9625 26.8173 488. 0262 2. 5171 3.9311 23.9009 1.3023 17.4475 July _. 14.0852 13.9351 .7212 2.9624 26. 7349 486. 3571 2. 5171 3.9163 23.8626 1.2991 17.4350 August 14.0860 13.9070 .7213 2.9623 26.6890 485. 3525 2. 5169 3.9070 23.8327 1.2952 17.427 September... 14.0788 13.8988 .7213 2.9624 26. 6662 485.0516 2.5166 3.9055 23.8287 1.2937 17.4251 October 14. 6079 13.8959 .7203 2.9627 26.6578 484. 9500 2. 5167 3.9061 23.8143 1.2868 17.4256 November... 14.0602 13.8966 .7193 2. 9626 26. 6541 484. 9213 2. 5173 3. 9066 23.8234 1.2925 17.4220 December 14.0628 13.9073 .7190 2.9624 26. 6868 485. 2442 2. 5170 3.9098 23.8325 1.2924 17.4185 1929—January 14.0598 13.8958 .7191 2.9605 26. 6704 484.9878 2. 5171 3.9082 23.7694 1.2917 17.4246 I ( t li a r l a y ) N ( l f e a lo t n h r d i e n s r ) - N (k o r r o w ne a ) 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 j ! Ru ( m leu a ) nia R (c n u h e s e t s r z i v a ) o 3 - (p S e p s a e i t n a) S (k w r e o d n e a n ) S ( w f l r a a i n t n z d c e ) r- ( Y s d l u i a n v g a o i r a - ) Par value 5.26 40.20 26.80 11.22 108.05 19.30 514.60 19.30 26.80 19.30 19.30 1928—January 5.2881 40.3334 26.5985, 11. 2402 4.9285 .6177 * 515.0000 17.0975 26.8780 19.2695 1.7625 June 5.2607 40.3331 26.7845 11. 2094 4.4258 . 6152 * 515. 0000 16. S681 26.8334 19.2754 1.7605 July 5.2406 40.2479 26. 7270 11.2011 4.4565 .6136 4 515. 0000 16.4759 26. 7843 19.2612 1.7602 August 5.2334 40.1056 26.6881 11. 2053 4. 5260 .6110 * 515. 0000 16.6101 26.7619 19. 2521 1.7598 September... 5.2303 40.0946 26.6656 11. 2032 4.4966 .6098 4 515.0000 16.5325 26.7556 19.2491 1.7596 October 5. 2365 40.0908 26. 6543 11. 2012 4.4993 .6072 * 515.0000 16.1798 26.7378 19. 2447 1.7591 November... 5.2385 40.1374 26.6511 11.1985 4.4708 .6042 * 515. 0000 16.1201 26.7278 19. 2494 1.7581 December 5. 2369 40.1748 26.6728 11.1913 4.4082 .6005 < 515:0000 16.2348 26.7633 19. 2729 1.7587 1929—January 5.2337 40.1096 26.6560 11.1883 4.4281 .6018 515. 0000 [16.2954 26. 7392 19.2405 1.7580 NORTH AMERICA SOUTH AMERICA Canada Cuba Mexico Argentina Bolivia a Brazil | Chile Colombia3 Ecuador3 Peru' Uruguay (dollar) (peso) (peso) (peso-gold)(boliviano) (milreis) | (peso) (peso) (sucre) (libra) (peso) Par value 100.00 100.00 49.85 96.48 36.50 11.96 12.17 97.33 20.00 486.65 103.42 1928—January 99.8159 99.9157 48.6946 97.1136 34.8000 11.9977 12.2098 98.0036 19.3750 390.3400 102.7734 June 99.7605 99.9495 47.8267 96.9438 34.8000 11.9924 12.1980 98.1046 20.0000 399.5000 102.2513 July 09.7894 99.9344 47.2920 96.1408 34.8000 11.9385 12.1390 98.1024 20.0000 400.4800 102.2849 August 99.9958 99.9667 47.4859 95.8955 35.3007 11.9404 12.0779 97.26(04 20.0000 398.0000 102.5100 September.., 100.0382 99.9441 47.8517 95.6642 36.4900 11.9293 12.0860 97.2596 20.0000 398.1250 102.1055 October 99.9667 99.9270 47.5742 95.5933 36.4900 11.9477 12.0843 97.5146 20.0000 399.0385 101.8431 November... 100 0043 99.9300 47.8901 95.8150 36.4900 11.9429 12.0603 97.1109 20.0000 400.3043 102.3049 December 99.7872 99. 9332 47.9841 95.7504 36.4696 11.8900 12.0678 97.0900 20.0000 400.4000 102.6068 1929—January 99.7509 99.9583 48.3678 95.7642 36. 3308 11.9160 12.0630 97.0900 20.0000 400.0000 102.7469 SOUTH AMERICA— ASIA AFRICA continued Straits (b z V o u e l e i n l v a e a - » r) (M d C o e h l x l i a i n r c a ) a * n (S C t h a h a e i n l n ) g « a hai d ( C o Y h l u l i a n a r a n ) « (d i K o o o ll n n a g i r )* : ; I ( / r n run d P nf i el a eO ) \ J ( a y p e a n n ) ( J f a lo v r a in * ) (Si S m n e g e tt a 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 y g u p y n t p d i t ) an dollar) Par value 19.30 44.97 62.48 44.48 44.65 i 36.50 49.85 40.20 56.78 439.65 494.31 1928—January 19.1700 45.7410 63.7548 45.1408 50.4096 36. 7224 46.8784 40.5596 56.7650 51.5040 499.8315 June.— 19.2500 47.7930 66. 2321 47.4815 50.5411 36.4618 46.6149 40 2327 56.1426 51.0877 500.4409 July. 19.2500 47.0840 65.2332 46.8483 49.9917 36. 2571 45.8476 40.1528 56.0416 50.8384 498.9014 August 19.2500 46.9617 64.9965 46.8549 49.8974 36. 2501 45.0505 39.9752 55.9815 51.4607 497.8298 September. ^. 19. 2500 46.1813 63.6945 45.9461 49.7146 36.3312 45. 7832 40.0300 56.0731 51.6896 497.4590 October _ 19. 2500 46. 5591 64.0374 46.1963 49.9471 36.4541 46. 2019 40.1161 56.3404 50.8354 497.4003 November 19. 2839 46. 5538 64.0020 46.1675 49.9763 36.4563 46.3503 40.1226 56.4409 50.0867 497.2970 December 19.3800 46.0455 63.5510 45.6808 49. 7879 36.4653 45.8940 40.1396 56. 2488 49.2924 1929—January 19. 3400 45.6837 63.1168 45.4070 49.8161 36.4487 45.5102 40.0623 56.0027 suance of the provisions of sec. 522 of the tariff act of 1922. For back figures see BULLETIN for January, 1928, pp. 56-62. » The National Bank of Czechoslovakia opened Apr. 1, 1926, under the obligation "to maintain the relation of the Czechoslovak crown to the undepreciated foreign gold currencies at the level of the last two years." During the period Apr., 1924, to Mar., 1926, inclusive, the range of the Czechoslovak crown was between 2.9193 cents and 3.0312 cents; the quotation on Mar. 31,1926, was 2.9616 cents. » Averages based on daily quotations of closing rates as published by New York Journal of Commerce. < Nominal. * Silver currency. The figure given for parity represents gold value of unit in January, 1929, computed by multiplying silver content of unit by New York average price of silver for January, 1929, which was $0.57329 per fine ounce. On the same basis, parity in January, 1928, for the Chinese Mexican dollar was 45.13 cents; for the Shanghai tael, 62.71 cents; for the Yuan dollar, 44.64 cents; and for the Hong Kong dollar, 44.81 cents. 31379—29 5 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

154 FEDERAL RESERVE BULLETIN FEBRUARY, 1929 PRICE MOVEMENTS IN PRINCIPAL COUNTRIES WHOLESALE PRICES ALL COMMODITIES EUROPE United States France Ger- Month r S L t e ( i t a a B c a u b s t u ) i o o - s r i - f b ( A t g a r u s o i i s a l s - d ) g B iu el m - g B a u r l i - a C v z a s e l k c o i h - a o- m D a e r n k - ( T B E l r a a n o o n d f g a d - e rd ) b ( l F a g a i s o n n i d l - s d ) B S t t u i a c r t a e i l s a - u i 1F R B e e o d s a e e r r r v d a e l S c m ( a t e F a l a r t e B a i n d s l y u t - i - - b H ( g a g a u s o r i n l y s d - ) (B It a a c ly hi) N la e n th d e s r- (O N w s o a l r y o - ) reau) 1927 April . . 94 135 846 2,592 979 152 140 143 636 610 135 130 521 143 159 May - 94 137 848 2,751 988 152 141 142 629 ! 618 137 133 496 146 160 June 94 142 851 2,823 990 152 142 144 623 605 138 133 473 148 159 July . . . . 94 140 845 2,775 992 152 141 144 617 > 590 138 133 467 150 160 August 95 133 850 2,745 983 153 141 147 618 578 138 134 465 149 161 September _ _ 97 130 837 2,736 975 153 142 148 601 574 140 133 465 150 158 October 97 129 839 2,747 966 154 141 148 587 554 140 133 468 150 157 November 97 127 838 2,707 967 154 141 149 595 545 140 133 466 152 157 December 97 127 841 2,739 975 154 140 148 604 567 140 135 463 152 156 1928 January 96 129 851 2,782 982 153 141 144 607 569 139 135 463 154 157 February. _ 96 128 848 2,826 985 152 140 143 609 569 138 134 461 151 157 March 96 129 848 2,839 978 153 141 144 623 587 139 135 464 153 157 April 97 131 847 2,891 984 154 143 145 619 601 140 136 464 153 156 May 99 131 844 2,906 987 155 144 143 632 617 141 135 465 152 156 June - - 98 133 844 2,866 986 155 143 145 626 621 141 135 462 152 158 July 98 133 841 2,911 979 155 141 145 624 613 142 133 453 148 160 August 99 133 831 2,790 996 154 139 147 616 607 142 134 456 145 153 September 100 131 830 2,805 986 151 138 146 620 598 140 137 458 146 153 October 98 129 835 2,844 971 150 138 146 617 585 140 138 463 146 151 November __ 97 128 847 957 151 138 145 626 580 140 137 466 148 150 December 97 127 855 955 151 138 144 624 588 140 148 150 1929 January _ 149 EUROPE—continued ASIA ANDOCEANIA AFRICA Month lan P d o - 3 < Russia' Spain Sweden S l w a i n tz d e 3 r- Canada Peru t A ra u l s i - a ( C S h h h a a i i n ) n a g- D In E u d a t i s c e t h s c I ( u n C t d a t i a l a - ) J k ( a T y p o o a ) - n N l Z a e e n a w d - (C E a g i y r p o t ) A So fr u ic th a 1927 April 101 177 177 143 140 149 201 151 173 154 145 170 147 122 126 May 102 175 172 145 142 152 207 152 171 155 146 171 145 124 June 102 174 171 146 141 154 206 155 169 155 149 173 146 123 July__ 102 173 168 146 141 152 205 161 171 153 150 170 146 118 120 August _ _ 101 171 168 146 143 152 204 165 171 154 151 167 146 117 September 101 170 169 148 144 151 205 170 172 153 150 169 146 120 October 101 170 169 147 145 152 200 173 169 152 147 170 146 118 122 November 102 170 168 148 147 152 200 166 166 151 148 168 147 115 "necflTnbfti' , 101 170 169 148 146 152 199 162 164 150 148 168 148 114 1928 January.. . _ 100 171 166 148 145 151 199 163 163 150 145 169 150 114 120 February 99 171 166 147 144 151 195 160 164 149 144 169 147 114 March 102 171 165 149 145 153 193 160 163 149 144 169 147 116 April 105 171 166 151 146 153 197 162 163 150 146 170 147 120 121 May 103 171 164 152 145 153 195 159 165 151 147 171 148 117 June - - 103 172 164 151 145 150 195 158 160 150 145 169 148 117 July 102 172 164 150 144 150 193 157 159 150 148 169 148 117 119 August 100 173 166 149 145 149 190 154 157 148 143 170 147 119 September 100 173 168 146 145 150 188 153 156 149 142 174 148 120 October 104 176 174 145 145 150 187 152 159 149 143 174 147 126 November 106 176 176 145 145 149 186 159 146 173 129 December 177 145* 147 185 160 145 174 126 1929 January 177 160 i New index-1926 = 100. » First of month figures. 3 New official index. « 1927=100. 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 BULLETIN for November, 1927. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

FEBRUARY, 1929 FEDERAL RESERVE BULLETIN 155 WHOLESALE PRICES—Continued GROUPS OF COMMODITIES [Pre-war=100] ENGLAND—BOARD OF TRADE SWEDEN—BOARD OF TRADE 1928 1927 1928 1927 c D b e e e m - r - v N b e e o m r - - O b c e t r o- t S b e e m e p r - - g A u u s - t c D b e e m e r - - c D b e e e m - r - v N b e e m o r - - Octo" ' fern" g A u u s - t c D b e e e m - r t r A T . f o ll t a C M c l o e e f m r o e a o m t a d l a o s . d n i d t ie fi s _ sh.._ 1 1 1 1 4 4 4 3 5 0 8 8 1 1 1 1 4 4 3 4 2 9 8 3 1 1 1 1 4 3 4 3 2 8 8 8 1 1 1 1 3 4 4 4 8 1 1 8 1 1 1 1 4 4 3 5 6 3 9 1 1 1 1 1 4 4 5 5 0 0 1 1 A V A Fu e l n l e g im l c e s o t a a a m l b n m l p e d r o o o p d d i r l i o u s ti d c e u t s s cts 1 1 1 1 5 3 1 4 0 0 5 5 1 1 1 1 4 1 3 4 7 5 1 5 1 1 1 1 1 4 3 4 3 4 1 5 i | 1 1 1 1 4 4 1 3 5 6 2 4 1 1 1 1 1 4 4 4 1 0 3 9 1 1 1 1 1 4 4 4 3 2 2 8 *"*" Other foods 158 159 165 160 163 161 Raw materials for manu- Indu I O s r t o t r h n i e a r a l n p d m ro s i d t n e u e e c r l a ts ls and 1 1 1 3 2 3 1 1 3 1 2 2 1 1 1 3 2 2 1 1 1 3 2 2 1 11 3 2 3 1 1 1 3 4 5 Pa f i p n ac e d r t u u p s re t u r l y i p n a ir n o d n p a a n p d e r metal 1 1 1 6 6 2 1 1 6 1 0 6 1 11 6 5 0 ! 1 1 6 1 1 5 1 11 6 4 1 1 1 1 5 5 7 metals 115 114 113 112 110 114 Raw materials for manu- C O o th t e to r n te .. xtiles 1 1 6 6 0 4 1 1 5 6 9 1 1 1 6 5 0 8 1 1 6 5 2 8 1 1 6 6 6 2 1 1 6 6 2 1 f t a r c y t . u . r . e . in leather indus- 141 139 141 i 145 144 Miscellaneous 138 138 141 141 143 146 Ra c w he m a i n ca d l s manufactured 165 166 165 164 164 166 Raw materials 141 140 139 139 147 142 Semifinished materials j 145 144 145 ; 147 149 150 FRANCE—STATISTICAL BUREAU Finished materials 148 148 148 ; 149 149 149 Producers' goods 137 136 136 i 137 141 137 Consumers' goods 153 152 152 I 154 155 156 All commodities 624 626 617 620 ; All foods.... 601 608 595 603 l Animal foods _ 602 604 573 565 CANADA—DOMINION BUREAU OF STATISTICS Vegetable foods _ 597 608 604 594 | Sugar, coffee, cocoa 592 598 610 690 ! All i T M S n u e d i x n n u t d e s i r l t r e r i a e i s l a s s l material 8 6 5 6 0 4 4 2 8 7 2 4 8 6 5 6 0 2 4 5 7 0 1 1 6 5 7 6 9 3 2 3 4 5 4 6 6 5 7 6 3 8 3 2 4 4 5 7 ' ! I ! A V T To o l e l t g t a a c e l l o t a m m r b a a m l w e n o u p m d f r i a a o t c t i d e e tu u s ri r c a e t l s d s goods. 1 1 1 1 4 4 4 4 6 2 7 6 1 1 1 1 4 4 4 4 9 8 7 3 1 1 1 1 5 5 4 4 0 0 6 7 1 1 1 1 5 5 4 4 0 0 8 4 1 1 1 1 4 4 4 4 9 9 8 8 1 1 1 1 5 5 4 5 2 3 8 7 I Animal products 150 156 159 161 152 150 Textiles.. 164 163 164 163 166 171 GERMANY—FEDERAL STATISTICAL BUREAU Wood and paper products. 155 155 154 156 156 154 Iron and its products 141 141 139 139 139 142 Nonferrous metals 97 98 96 95 96 96 All commodities 140 140 140 140 142 140 Nonmetallic minerals 173 *173 172 172 172 170 Total agricultural products 134 135 135 134 138 136 Chemicals _. 147 148 149 149 149 151 Vegetable foods 126 127 ! 132 134 145 144 Cattle 118 119 I 119 119 120 105 Animal products 162 164 155 149 142 158 AUSTRALIA—BUREAU OF CENSUS AND STATISTICS Fodder 137 139 140 139 149 141 Provisions 125 128 129 131 136 130 Total industrial raw mate- All commodities 154 152 152 153 154 162 i rials 'and semifinished Metals and coal 172 172 174 174 174 175 products 134 133 .134 134 134 Textiles _ 160 154 152 152 155 167 Coal 137 135 135 133 133 131 A gricultural products 161 155 158 157 157 176 Iron _ 128 128 128 128 128 125 Dairy products 149 146 146 147 145 145 Nonferrous metals 110 109 107 105 105 107 Groceries and tobacco 164 165 164 165 165 169 Textiles 154 152 152 155 160 159 Meat _. 111 114 112 116 117 128 Hides and leather 143 142 145 149 151 161 Building materials 161 160 161 161 162 148 Chemicals 127 127 127 127 127 124 Chemicals _ 189 186 186 186 186 186 Artificial fertilizers 84 83 82 81 96 81 Technical oils and fats. 128 129 127 125 124 119 Rubber 25 25 26 25 28 50 INDIA (CALCUTTA)—DEPARTMENT OF STATISTICS Paper materials and paper 151 152 152 151 151 152 Building material 158 159 159 160 160 158 1928 1927 Total industrial finished products 160 160 160 160 160 156 P C r o o n d s u u c m e e rs r ' s ' g g o o o o d d s s 1 17 3 6 8 1 1 7 3 6 9 1 1 3 7 9 6 1 1 7 3 6 8 1 1 3 7 8 6 1 1 3 7 4 2 v N em o- - Octo- t S e e m p- - Au- July v N em o- ber ber ber gust ber ITALY—CHAMBER OF COMMERCE OF MILAN All commodities . > 146 143 142 143 148 148 Cereals 139 135 136 133 133 139 All commodities _ 497 495 492 488 486 483 Pulses .. 183 164 159 154 155 154 Total food. 560 563 563 549 543 525 Tea _ 143 133 128 143 154 192 Vegetable foods 574 581 587 577 576 550 Other foods 153 151 152 153 160 167 Animal foods 543 539 532 515 502 493 Oil seeds 151 148 147 143 139 138 Alllindustri al products , 472 469 465 464 464 466 Raw jute 100 99 94 111 112 86 Textiles ! 450 447 450 446 447 434 Jute manufactures 148 145 145 160 166 146 Chemicals , 450 448 435 435 435 445 Raw cotton 164 159 149 154 180 180 Minerals and metals. _i 439 438 432 428 428 435 Cotton manufactures 160 161 161 161 162 158 Building materials | 529 525 519 516 517 532 Other textiles 140 140 133 139 144 127 Other vegetable prod- ! Hides and skins 131 124 121 115 115 141 ucts... j 515 504 504 519 513 503 Metals 127 126 124 124 121 126 Sundries. | 555 554 556 556 556 563 Other articles 138 139 140 140 142 148 ' Revised. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

156 FEDERAL RESERVE BULLETIN FEBRUARY, 1 RETAIL PRICES FOOD AND COST OF LIVING RETAIL FOOD PRICES [Pre-war=100] EUROPEAN COUNTRIES OTHER COUNTRIES United Month States Aus- (5 i 1 e s c ) it- t ( r V ia i- g B iu e m l- 1 s C lo z v ec a h k o ia - I E d n 2 g- Neth- N w o a r y - R si u a s 2 - S l z a w e n r d i - t- a C d a a n - 2 ' I b B n a o d y m i ) a - ; ! N Z la e e n a w - dA So fr u ic th a enna) 1927 February. _ 153 119 210 2,569 914 1,995 177 208 158 151 152 j 146 117 March 151 118 201 2,533 915 1,997 173 205 157 149 152 118 April - 151 119 200 2,478 923 2,021 169 203 156 146 151 ! 145 119 May 152 119 196 2,630 930 2,063 169 201 156 145 150 ; 145 121 June 155 122 201 2,699 949 2,063 172 199 157 146 151 I 144 120 July 150 122 205 2,653 962 2,059 175 199 156 147 154 | 144 119 August 149 120 202 2,625 914 2,044 175 199 156 147 155 ! 143 118 September- 151 119 206 2,615 910 2,070 174 198 158 147 151 | 143 117 October--.! 153 120 210 2,626 907 2,071 173 198 158 148 119 November_| 153 119 211 2,587 905 2,086 171 199 159 119 December. 153 118 212 2,618 913 2,101 171 200 159 119 I 1928 January-._ 152 118 211 2,660 913 170 201 158 151 147 119 February- 149 117 207 2,701 910 170 202 157 149 152 146 145 118 March I 148 116 201 2,713 902 171 203 156 j147 142 ; 145 118 April ! 149 117 202 2,766 905 171 203 156 146 140 i 144 119 May | 151 117 197 2,778 172 205 156 146 140 146 120 June _-| 150 122 200 2,740 170 206 157 145 142 147 114 July j 150 119 202 2,783 943 173 211 157 146 143 147 116 August 151 120 205 2,667 943 170 211 156 149 142 146 115 September. 155 120 210 2,682 928 164 210 157 150 141 147 115 October 153 120 215 2,719 907 163 211 158 152 142 149 115 November- 154 120 223 2,692 900 161 213 158 152 144 150 118 December. 153 119 222 905 161 215 158 152 145 115 1929 January.. . ' 158 216 COST OF LIVING [Pre-war=100 EUROPEAN COUNTRIES OTHER COUNTRIET Mas- Month sas c e h t u ts - g B iu e m l- 1s C lo ze v c a h k o ia - l E an n d g - 2 l F a i n n d - F (P ra ar n i c s e )m G a e n r- y G ( e A r n e t s e h ) c - e H g u ar n y - I ( l t M a a n l i ) y - N la e e n r t - d h s - N w o a r y - la P n o- d4 Spain S d w en e- S l z a w e n r i d - t- a C d a a n - 2 A t l r u i a a s - - ( I b B n a o d y m i ) a A So fr u ic th a 1927 February 157 200 746 172 1,189 145 1, 896 120 667 194 160 151 155 130 March 156 195 744 171 1,183 524 145 1,898 119 663 166 203 98 197 159 150 155 155 131 April 156 195 749 165 1,173 146 1,911 119 651 100 191 "~170~ 158 148 153 131 May 157 193 756 164 1,166 147 1,938 119 612 101 186 160 148 152 132 June 156 196 761 163 1,184 525 148 1, 951 121 586 167 201 101 1 185 160 149 155 154 132 July 155 199 753 166 1,203 150 1, 960 119 548 98 j 184 "l69~ 160 149 156 132 August 155 198 739 164 1, 237 147 1, 951 119 543 99 i 192 160 149 157 131 September 155 202 736 165 1, 230 507 147 1, 955 119 537 167 197 99 ! ]87 161 149 157 154 131 October... 155 207 734 167 1, 237 150 1, 956 120 536 101 ! 189 "in 161 150 151 132 November 157 208 735 169 1, 251 151 1,964 120 536 103 ]S8 162 150 150 132 December. 157 208 740 169 1,243 498 151 1, 978 120 531 170 195 103 ]86 162 151 ""I59" 151 132 1928 January 157 210 741 168 1,216 151 3 155 121 3 145 102 178 171 161 151 154 132 February 156 207 739 166 1. 206 151 3 154 120 3 145 100 165 161 150 148 131 March 155 204 737 164 ,214 507 151 3 153 119 3 145 169 193 101 176 160 149 157 145 132 April ! 155 205 741 164 L, 212 151 3 153 121 3 145 102 175 171~ 160 149 144 133 May 156 202 743 164 [,207 151 3 153 121 3 144 103 L71 160 149 147 133 June 155 204 741 165 L, 219 3 105 151 3 152 121 3 145 170 193 103 7? 161 148 "I57" 146 132 July 157 205 753 165 L, 236 153 3 148 121 3 143 104 73 173 161 148 146 131 Auffust 157 207 761 165 .258 154 3 146 126 3 142 104 74 161 150 146 131 September 158 211 756 165 [,249 3 105 152 3 145 127 3 143 169 185 104 L78 161 151 155 145 131 October... 157 215 735 166 ,254 152 3 148 126 3 144 7Q "l72" 162 152 146 131 November 157 220 730 .262 152 3 148 125 3 146 181 162 152 147 132 December. 157 219 734 1,260 3 108 153 3 146 3 147 168 183 162 152 148 131 1929 January 153 U921 = 100. 2 First of month figures. 3 Revised on a gold basis. « 1927=100. 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, issue of the BULLETIN. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

FKBKUAIT, 1928 FEDERAL RESERVE BULLETIN 157 LAW DEPARTMENT Form of trade acceptances. agreement between the Cascade Products Co. and On page 510 of the FEDERAL RESERVE BUL- appellee under which certain goods were purchased by appellee on the conditions mentioned in the agree- LETIN for July, 1927, there was published a ment, and the three trade acceptances would only copy of the opinion of the Supreme Court become valid obligations of appellee in the event the of Texas, in the case of Lane Company v. Cascade Products Co. performed its part of such Crum, in which it was held that a trade agreement, and that such company had failed in this respect. Appellee's pleading of this defense contained acceptance is rendered nonnegotiable by a all allegations necessary for a valid defense to apstatement thereon as follows: "The obligation pellant's cause of action. Appellant, by supplemental of the acceptor hereof arises out of the pur- petition, admitted that there was such failure of phase of goods from the drawer, maturity being consideration on the part of the Cascade Products Co., but denied that appellant had any actual or in conformity with the original terms of purconstructive notice of such agreement. chase." Because of the doubt thrown on the The trade acceptances were drawn by the Cascade negotiability of the standard form of trade Products Co. in the ordinary form of such instruments, acceptance by that decision the Federal Re- are of date May 14, 1924, accepted by appellee on said date, and matured, respectively, in 60, 90, and serve Board suggested the advisability of 120 days thereafter. As shown by the petition, each of changing the standard form by eliminating the these acceptances contain the following clause: "The clause giving rise to the doubt and by inserting obligation of the acceptor arises out of the purchase of in lieu thereof "The transaction which gives goods from the drawer." On the theory that the above-quoted clause of the rise to this instrument is the purchase of goods trade acceptances rendered them nonnegotiable, and by the acceptor from the drawer." The Court because of appellant's admission in pleading that the of Civil Appeals of Texas has recently rendered consideration for their issuance had failed, the trial a decision in which it holds that a trade accept- court sustained the general demurrer and entered the judgment adverse to appellant. If the three trade ance containing the clause "The obligation acceptances were rendered nonnegotiable because of of the acceptor arises out of the purchase of the insertion in each of this clause, then appellee goods from the drawer" is nevertheless negotia- could interpose in this suit any defense that he could ble, and distinguishes the holding of the have interposed, if the suit had been instituted against him by the drawer, the Cascade Products Co., and the Supreme Court of Texas in the Crum case. admission by appellant of the failure of consideration The following is a copy of the opinion of the for the issuance of this paper would destroy appellant's court in the recent case referred to: cause of action and render its pleading subject to the general demurrer sustained by the trial court. Consequently the character of these instruments as to AMERICAN EXCHANGE NATIONAL BANK V. STEELEY their negotiability determine the issues of this appeal. (No. 10216) Appellant, by proper assignment of error, supported by appropriate propositions of law, presents the theory Court of Civil Appeals of Texas, Dallas, October that the trade acceptances are negotiable instruments 13, 1928 and that its pleadings are not subject to demurrer, while appellee, by appropriate counterpropositions, Rehearing denied November 10, 1928 presents the opposite theory. Action by the American Exchange National Bank (1,2) It may be stated as the general rule that against C. R. Steeley. Judgment for defendant, and wherever a bill of exchange or promissory note conplaintiff appeals. Reversed and remanded. tains a reference to some extrinsic contract in such a JONES, C. J. This suit was instituted by appellant, way as to make the bill or note subject to the terms of American Exchange National Bank of Dallas, against that contract, the negotiability of the paper is deappellee, C. R. Steeley, as acceptor of three trade stroyed. Rule announced and cases cited in Strand acceptances, each for the sum of $203, drawn by Amusement Co. v. Fox (205 Ala. 183; 87 So. 332; Cascade Products Co., indorsed by such company to 14 A. L. R. 1126-1129; 33 A. L. R. 1174; 37 A. L. R. Howard P. Maye & Co., and pledged by the latter 655; 3 R. C. L. 883). It is also the general rule that company with appellant. where the reference in a bill of exchange or promissory A general demurrer was sustained to appellant's note is simply a recital of the consideration for which pleadings, a judgment adverse to appellant entered, the paper was given, or is merely a reference to the and the appeal is duly perfected to this court. The origin of the transaction, its negotiability is not affected petition contains all necessary allegations for a recovery thereby. (Art. 5932, sec. 3, 1925 Rev. Stat.; 14 of the amount of the three trade acceptances, on the A. L. R. 1129-1133; 33 A. L. R. 1174-1175; 37 A. L. R. theory that appellant was a holder in due course, and 655; 3 R. C. L. supra.) Section 3 of article 5932 defurther alleged that the indebtedness of Howard P. clares in specific terms that an unqualified order Maye & Co. to appellant was in excess of any collateral or promise to pay is unconditional, within the meansecurity held. ing of our negotiable instruments act, "though Among other defenses pleaded by appellee was that of coupled with * * * a statement of the transacfailure of consideration, in that there was a written tion which gives rise to the instrument." This en- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

158 FEDERAL RESERVE BULLETIN FEBRUARY, actment is merely declaratory of the general rule of extrinsic contract in the reported case is in the followlaw above announced. ing language: (3, 4) It remains to determine whether the reference " The obligation of the acceptor hereof arises out to the extrinsic contract to the effect that the obligation of the purchase of goods from the drawer, maturity carried by the trade acceptances arose from the being in conformity with the original terms of purchase of goods by the acceptor from the drawer purchase." destroyed the negotiability of these instruments. It will be noted that to the reference in the instant This question must be determined by the application case there is added in the reported case the additional of the rules of law above announced to the language language, ''maturity being in conformity with the employed in this reference. It is deducible as a original terms of purchase." This added clause corollary to the rule above announced that, if the reasonably and fairly carries notice to a third person, reference to the extrinsic contract reasonably and contemplating the purchase of those instruments, that fairly conveys the fact that the contract, forming the he must look to the terms of the contract upon which basis for the issuance of the trade acceptances, is an the goods were purchased to determine what elements executed one—that is, such contract was completed by enter into their maturity, while, in the instant case, the execution of the trade acceptances—then the there is no language suggesting to a third person that language employed in such reference does not destroy he should look beyond the instruments themselves to the negotiability of the paper. Does the reference in determine their maturity. The instant case imports the trade acceptances in the instant case reasonably an executed contract between the parties to these and fairly convey the idea that their issuance was the trade acceptances; the reported case imports the existfinal act in an executed contract between the drawer ence of a contract of purchase whose terms determine and acceptor? It must be borne in mind that the the maturity of the trade acceptances. In the instant statute above referred to charged appellee with knowl- case the trade acceptances represent an unqualified edge that if he accepted the obligations drawn by promise to pay a certain sum at a certain time; in the Cascade Products Co., containing no other reference to reported case, the trade acceptances represent a the contract between them than a statement of the promise to pay, qualified by an existing contract transaction from which the obligations arose, he would, between the parties. We conclude, therefore, that the by his acceptance of such obligations, create a negoti- reported case is not contrary to the holding in the able instrument with all of the attendant rights of such instant case. paper accruing to a holder in due course. Notwith- It necessarily follows, in our opinion, that the trial standing this knowledge, appellee accepted obligations court erred in sustaining the general demurrer, and carrying on their face a promise to pay to the order of that the case must be reversed and remanded. the Cascade Products Co. within a specified time a Reversed and remanded. named sum of money, in which was shown only the consideration for, or origin of, the transaction. To our minds the only reasonable conclusion to be drawn from the face of these trade acceptances is that their execu- Amendment to Regulation J. tion completed the contract between the parties and Effective February 1, 1929, the Federal that the promise to pay was unqualified. We there- Reserve Board has amended paragraph (4) of fore conclude that the language of the obligation is no more than a statement of the consideration or a Section V of its Regulation J, series of 1928, reference to the origin of the transaction and did by striking out that provision authorizing a not destroy the negotiability of the instruments. Federal reserve bank to reserve the right in its It is strenuously insisted by appellee that the case check collection circular to charge checks to of Lane Co. v. Crum et al. (291 S. W. 1084), a decision the reserve account or clearing account of a by the Commission of Appeals, is conclusive authority drawee bank at any time when in any paragainst the conclusion announced in this case. When the decision in the reported case is analyzed in the ticular case the Federal reserve bank deems it light of the language of the reference clause in the necessary to do so. The paragraph referred trade acceptances then under consideration, we believe to, as amended, reads as follows: it is clearly distinguishable from the instant case. The reported case was tried on its merit, and there (4) Checks received by a Federal reserve bank on was shown to exist the defense of failure of considera- its member or nonmember clearing banks will ordition based upon the same extrinsic contract that the narily be forwarded or presented direct to such banks, pleadings of appellee show to have existed in this and such banks will be required to remit or pay therecase—that is, that the trade acceptances would not for at par in cash or bank draft acceptable to the become binding until the drawer had performed cer- collecting Federal reserve bank, or at the option of tain conditions that he failed to perform, and the such Federal reserve bank to authorize such Federal same conditions that appellan-t in the instant case reserve bank to charge their reserve accounts or admits a failure of performance. The reference to the clearing accounts. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

159 FEBRUARY, 1929 FEDERAL RESERVE BULLETIN Changes in State Bank Membership Fiduciary Powers Granted to National Banks The following list shows the changes affecting State During the month ended January 21, 1929, the bank membership during the month ended January 21, Federal Reserve Board approved applications of the 1929, on which date 1,215 State institutions were mem- national banks listed below for permission to exercise bers of the system: one or more of the fiduciary powers named in section ADMISSIONS 11 (k) of the Federal reserve act as amended, as follows: (1) Trustee; (2) executor; (3) administrator; Capital Surplus res T o o u t r a c l es (4) registrar of stocks and bonds; (5) guardian of estates; (6) assignee; (7) receiver; (8) committee of estates of lunatics; (9) in any other fiduciary capacity District No. % in which State banks, trust companies, or other corpo- Colonial Trust Co., Newark, N. J___ $300,000 $150,000 $2,069,960 rations which come into competition with national Rochelle Park Bank, Rochelle Park, banks are permitted to act under the laws of the State N. J._ 50,000 20,000 75,033 in which the national bank is located. District No. 5 American Bank & Trust Co., Richmond, Va 1,200,000 150,000 3, 204,104 Dis- Powers CHANGES Location t N ri o c . t Name of bank granted District No. 1 Granville, N. Y. Washington County Na- ! 1,2,3 and 5.* Rhode Island Hospital Trust Co., tional Bank. s P o r r M o b v e e i d c d h e t a n h n e c i e c f , o s R l S l . o a w I v ., i i n n m g g e s b m B a b a n e n k r k s , , : h W as o a o b n - - N Su o l r l t i o v n a , n , V a Ind... N Pe a T o ti p r o u le n s s a t l C N B o a a . t n i k on o a f l N B or a t n o k n & Ito9. Na so ti c o k n e a t l , R G . l I o . b ( e n o B nm an e k m , be W r) oon- $331,410 $4, 614, 810 St. Louis, Mo.. South Side National Bank... Ito9. socket, R. I $100,000 75, 000 1,035, 590 Liberty Trust Co., Boston, Mass. * Supplemental. (consolidated with and under title of the Beacon Trust Co., Boston, Mass., member) 750,000 750, 000 13,461,700 Changes in National Bank Membership District No. 2 The Comptroller of the Currency reports the follow- Bank of the Manhattan Co., New ing increases and reductions in the number and capital York, N. Y., has absorbed the following banks: of national banks during the period from December 22, Bronx Borough Bank, New 1928, to January 25, 1929, inclusive: York, N. Y 1,000,000 1,136,000 25,000, 000 First Bank of Brooklyn, N. Y__. 1,000,000 1, 500, 000 24, 672,000 District No. 4 Num- Amount of Lodi State Bank, Lodi, Ohio (volun- ber of capital tary withdrawal) _ __. 40, 000 60, 000 704, 000 banks District No. 5 Shenandoah Valley Bank & Trust New charters issued . __ __ 9 $595,000 i C d o a . t , e d M a w r i t t i h n s a b n u d r g u , n W de . r V ti a t . l e ( c o o f n s t o h l e - I R n e c s r t e o a r s e e d o t f o ca so p l i v ta e l n c a y pproved l _ 4 0 4 13,478,000 0 ' - Peoples Trust Co., Martinsburg, W. Va., member) 100,000 25, 000 775, 000 Ag to g r s e o g l a v t e e n c o y f , n a e n w d c b h a a n r k te s r s in , c b r a e n as k i s n , g re c s a t p o i r t e a d l- 53 14,073,000 District No. 7 Fi M rst i c S h t , at ( e c o S n a s v o i l n id g a s te B d a n w k i , t h C a ro n s d w u el n l - , L R i e q d u u i c d i a n t g i o c n a s p . ital2 2 6 7 8,3 4 4 0 5 2 , , 0 5 0 0 0 0 der title of State Bank of Croswell, Mich., member)___ 30, 000 6,000 653, 000 Total liquidations and reductions of capital 33 8,747,500 Carroll County State Bank, Mt. Carroll, 111 100, 000 50,000 1, 582, 000 Consolidation of national banks under act of First State Bank, Mt. Carroll, 111.... 100, 000 25, 000 1, 562, 000 Nov 7, 1918 3 3,562,500 (Above members consolidated Consolidation of a national bank and a State under title of First Carroll bank under act of Feb. 25, 1927 6 3,145,000 County State Bank, nonmember.) Total consolidations __ _.. 9 6,707,500 District No. 8 Aggregate increased capital for period 14,073,000 Farmers & Merchants Trust Co., Reduction of capital owing to liquidations, etc 8,747,500 St. Louis, Mo., member (absorbed by South Side National Bank of Net increase 5,325,500 St. Louis) 400, 000 200,000 6,486, 560 District No. 11 1 Includes 6 increases in capital aggregating $1,020,000 incident to con- La P m ar a i r s , S T t e a x t . e (a B b a s n o k rb e & d b T y r F u i s r t s t C N o a . - , so 2 l i I d n a c ti l o u n d s e s o f 2 S t r a e t d e u c b t a i n o k n s s u i n n de c r a p a i c t t a l o f a g F g e r b e . g 2 a 5 ti , n 1 g 9 2 $ 7 1 . 87,500 incident to tional Bank of Paris) 150,000 1,168,000 consolidations under act of Nov. 7, 1918. State Bank of Commerce, Commerce, Tex. (insolvent) 50, 000 10, 000 298, 000 First State Bank & Trust Co., Waxahachie, Tex. (succeeded by Re- Acceptances to 100 Per Cent public Bank & Trust Co., nonmember) 200,000 23, 500 1, 209,176 Farmers State Bank, Georgetown, The following member institution has been author- Tex. (voluntary withdrawal) 50,000 30,000 557, 553 ized by the Federal Reserve Board to accept drafts and District No. 12 bills of exchange up to 100 per cent of its capital and Bank of Farmington, Farmington, surplus: Chatham Phenix National Bank & Trust Co., Wash, (closed) 25,000 10,000 I 334, 494 New York, N. Y. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

160 FEDERAL RESERVE BULLETIN FEBRUARY, 1829 DETAILED BANKING STATISTICS FOR THE UNITED STATES FEDERAL RESERVE BANKS BILLS DISCOUNTED, AND DEPOSITS BY CLASS OF DEPOSIT [Monthly averages of daily figures. In millions of dollars] Federal Reserve Bank 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 - tote ChiCag0 L S ou t. is M ap in o n li e s - K C a i n t s y as Dallas F c S i r s a a c n n o - _L I Bills discounted: 1928—January 465.3 23.5 152.9 44.4 51.0 26.9 29.3 59.0 16.6 3.7 12.7 4.3 41.0 February 470.7 45.2 119.3 53.1 50.8 27.3 28.3 50.9 24.0 4.0 11.4 4.1 52.3 March 513.2 49.5 130.0 49.2 57.0 27.8 25.2 67.9 26.1 3.3 10.5 3.8 63.1 April 660.9 44.4 210.9 52.7 60.8 34.6 38.9 87.6 33.1 10.1 18.8 8.0 61.3 May 835.5 59.6 296.9 60.4 68.4 43.0 51.9 109.5 39.0 10.6 22.9 9.0 64.3 June. 1,018. 7 84.8 376.1 80.2 89.3 48.0 59.8 136.1 52.9 8.5 22.4 11.3 49.4 July 1,089.6 68.0 382.6 93.8 100.8 54.9 68.5 156.7 55.1 12.2 23.9 16.7 56.5 August 1,060. 8 61.1 321.3 99.1 80.1 56.6 76.8 159.4 58.8 18.5 22.7 29.8 76.7 September 1,064. 3 50.9 352.3 106.5 77.8 57.2 82.9 113.8 65.0 17.8 24.0 29.6 86.5 October 975.2 45.9 300.7 93.7 75.5 47.8 79.4 134.1 49.8 18.1 31.3 25.3 73.5 November 897.3 50.6 238.1 79.3 85.6 42.5 68.7 138.8 43.9 16.0 43.1 21.3 69.6 December 1,013.0 65.0 298.7 91.3 108.0 40.8 57.8 178.9 39.6 10.4 44.2 17.9 60.3 1929—January 859.2 60.4 245.9 73.1 79.7 40.7 58.5 142.7 37.4 12.0 33.3 20.6 55.0 Total deposits: 1928—January. 2,472.4 158.4 974.4 143.8 192.0 76.0 72.6 355.8 87.6 55.1 94.3 70.6 191.9 February 2,419. 5 154.1 942.7 140.4 192.2 75.1 72.5 349.7 87.5 54.6 95.0 70.6 185.0 March. 2,411. 7 153.7 948.8 140.7 189.5 72.9 71.2 349.7 84.5 55.3 94.4 68.5 182.5 April 2,450. 2 159.0 972.8 142.3 190. 3 73.4 72.4 353.5 84.3 53.9 94.1 67.0 187.3 May, „_ 2,438.8 155.7 965.1 140.8 191.8 71.8 70.9 358.2 84.1 53.1 92.8 66.3 188.0 June. 2,394. 9 150.6 942.1 137.8 188.9 70.2 67.8 355. 9 81.6 54.0 91.8 65.2 189.0 July 2,372. 6 151.4 919.4 137.2 190.1 70.1 66.5 355.4 81.6 53.3 93.7 65.6 188.3 August... 2,330. 2 149.6 889.8 134.4 189.3 69.7 66.4 350.6 80.8 52.6 94.8 64.8 187.4 September 2,370.1 152.6 897.8 137.9 195.8 70.8 65.2 357.0 83.6 55.0 97.5 67.3 189.5 October. 2,380. 6 155.0 902.9 137.0 190.9 71.3 65.8 357.7 83.5 57.0 95.7 70.8 193.1 November 2,401.6 154.7 920.9 136.4 188.9 71.5 67.1 357.7 83.8 57.5 94.8 73.1 195.1 December 2,415.1 150.7 939.1 136.8 186.2 71.7 69.6 357.2 85.3 56.4 94.4 73.7 194.0 1929—January 2,436. 3 152.4 953.2 139.4 190.1 71.9 69.1 358.2 85.9 55.3 95.6 73.3 191.8 Member bank reserve balances: 1928—January 2,426. 4 155.9 957.9 141.7 188.9 73.8 70.7 352.1 86.1 53.3 92.1 68.8 185.2 February 2,368.1 151.0 924.4 138.5 ! 188.1 72.4 70.0 345.8 85.0 53.1 92.4 69.3 178.2 March 2,365. 0 151.2 931.6 138.6 i 186.0 70.6 69.4 345.7 82.8 53.9 92.4 67.1 175.8 April 2, 396. 5 156.3 955.5 139.3 i 186.7 69.9 69.1 348.1 82.5 52.4 91.9 65.4 179.5 May 2, 387. 6 153.6 946.8 138.5 | 188.7 69.0 68.3 353.2 82.3 51.6 90.6 64.9 180.3 June _ 2,354.6 149.3 925.9 136.2 ! 185.9 68.5 66.6 352.0 80.3 52.9 90.3 64.1 182.5 July. 2,323. 5 149.9 902.4 134.7 i 186.8 67.2 64.7 351.0 79.7 52.0 91.7 63.7 179.9 August 2, 273. 9 147.1 872.0 132. 0 | 185.8 66.2 63.7 344.8 78.5 50.7 92.4 62.5 178.2 September 2, 314. 3 149.6 883.2 134.9 i 190.3 67.6 62.7 352.3 80.1 53.0 92.8 65.5 182.4 October. 2,332. 2 152.5 889.7 134.8 I 187.8 68.3 63.4 353.3 80.5 55.1 92.5 68.9 185.2 November 2, 352. 3 152.0 903.4 134.4 i 185.4 69.1 64.8 354.0 81.5 56.1 93.0 71.4 ; 187.3 December 2,366.8 148.6 923.4 134. 5 i 183.4 69.6 67.5 353.0 83.4 55.1 93.0 72.2 183.2 1929—January 2, 386. 7 150.5 936.3 137.2 '[187.0 69.7 67.2 354.3 84.2 53.9 93.9 71.8 180.7 Government deposits: 1928—January. 19.4 1.9 2.6 1.4 1.4 1.8 1.5 1.9 1.0 1.3 1.3 1.4 2.0 February 25.6 2.0 6.8 1.3 2.2 2.3 1.9 2.3 1.4 1.2 1.4 1.0 1.8 March 23.0 2.0 5.9 1.6 1.9 2.0 1.5 2.2 1.2 ; i.o 1.1 1.2 i 1.5 April 26.8 2.1 5.2 2.3 1.7 3.0 2.7 3.0 1.2 1.0 1.3 1.4 i 1.9 May 23.8 1.6 | 5.3 1.6 1.6 2.3 2.0 2.8 1.3 1.1 1.4 1.1 1 1.9 June 12.8 .6 4.1 1.2 .8 1.1 .7 .6 .6 .7 i -9 July 19.5 .7 3.7 1.3 1.0 2.2 j 1.4 1.8 1.1 .9 1.2 1.5 i 2.7 August 27.9 1.6 6.9 1.4 1.2 2.7 ! 2.2 2.7 ' 1.2 1.4 1.4 2.0 3.2 September. _ 17.6 1.6 4.2 1.3 1.3 1.7 i 1.6 1.2 .8 .8 .7 1.2 1 1.1 October 18.7 1.7 3.3 1.2 .9 2.2 1.6 1.4 1.2 .9 1.1 1.6 1.6 November 17.5 1.4 2.9 1.3 1.2 1.9 i 1.8 1.4 1.2 .9 .9 1.4 1.3 December 18.8 1.4 4.6 1.6 1.2 1.7 j 1.7 1.5 .9 .8 .8 1.2 1.4 1929—January 18.2 1.2 3.7 1.3 .9 1.7 i 1.5 1.6 1.1 i.o ! 1.2 I 1.3 i 1.8 All other deposits: 1928—January 26.6 13.9 .7 1.8 .5 i .3 1.8 .4 1.0 .3 4.7 February.. _. 25.8 1.2 11.5 .6 1.9 .4 j .6 1.7 1.0 .3 1.2 .2 5.0 March 23.7 .5 11.3 .6 1.6 .3 i .3 1.8 .4 .9 .2 5.2 April _ 26.9 12.1 .8 1.9 .5 i .6 2.4 .5 .9 .3 5.9 May. 27.3 13.1 .8 1.6 .4 i .6 2.3 .6 .4 .9 .3 5.9 June 27.5 12.1 .9 2.1 .5 .4 2.8 .7 .5 .9 .3 5.6 July 29.7 13.4 1.1 2.3 .7 ' .5 2.7 .8 .5 5.7 August 28.4 10.8 1.0 2.3 .7 ! .6 3.1 1.0 .5 1.0 I 6.0 September 38.2 1.4 10.4 1.7 4.2 1.5 ! 1.0 3.5 2.8 1.2 4.0 6.1 October. 29.7 .7 9.9 1.0 2.1 .8 j .8 3.0 1.7 1.0 2.1 I 6.3 November 31.8 1.3 14.6 .8 2.4 .5 i .5 2.3 1.1 .5 6.6 December 29.4 .6 11.1 .8 1.6 .5 i .4 2.7 1.0 .5 9.4 1929—January 31.3 13.2 .8 2.2 .5 j .4 2.3 .7 .5 .5 9.3 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

FEBRUARY, 1029 FEDERAL RESERVE BULLETIN 161 FEDERAL RESERVE BANKS-RESOURCES AND LIABILITIES AT END OF MONTH [In thousands of dollars] 1929 1928 Jan. 31, Dec. 31 Jan. 31 RESOURCES Total goldreserves 2,656,550 2,584,232 2,797,414 Reserves other than gold 164,354 124,608 168,651 Total reserves 2,820,904 2,708,840 2,966,065 Nonreserve cash 87,814 79,885 84,994 BillsTdiscounted 805,388 1,056,466 423,310 Bills bought: Outright.- _ 384,046 439,003 332,693 Under resale agreement 55, 771 50,066 45,976 Total bills bought 439,817 489,069 378,669 United States securities: Bought outright _ 199,017 199,410 431,196 Under resale agreement 2,710 28,655 6,050 Total United States securities 201,727 228,065 437,246 Other securities 9,025 9,885 500 Total bills and securities _ _ 1,455,957 1,783,485 1,239,725 Due from foreign banks . . 730 568 Reserve bank float1 _ 27,407 24,468 14,170 Total reserve bank credit outstanding . 1,484,094 1,808, 681 1,254,463 Federal reserve notes of other reserve banks.. 22,361 ! 28,706 I 19,616 Other uncollected items not included in float- 597,761 | 659,500 | 563,143 Bank premises 58,608 58,591 , 58,755 All other resources 8,312 ! 7,340 10,439 Total resources.. 5,079,854 I 5,351,543 4,957,475 LIABILITIES Federal reserve notes: Held by other Federal reserve banks. 22,361 ! 28,706 ! 19,616 Outside Federal reserve banks 1,632,948 ! 1,809,488 j 1,561,727 Total notes in circulation _ ] 1,655,309 | 1,838,194 j 1,581,343 Deposits: I Member bank—reserve account . 2,362,002 2,388,964 2,391,373 Government 16,854 23,472 19,900 Foreign bank 6,231 5,775 4,590 Other deposits 22,454 21,475 19,010 Total deposits 2,407, 541 2,439, 686 2,434, 873 Deferred availability items.. 597, 761 659,500 563,143 Capital paid in _ 148,810 146,936 134,441 Surplus 254,398 254,398 233,319 All other liabilities.. _ 16,035 12,829 10,356 Total liabilities... _. .j 5,079,854 i 5,351,543 | Contingent liability on bills purchased for foreign correspondents. 312,814 324,699 i Uncollected items (exclusive of Federal reserve notes of other Federal reserve banks) in excess of deferred availability items. KINDS OF MONEY IN CIRCULATION [End of month figures. In thousands of dollars] Total G co o i l n d i | G ti o f l i d c a c te e s r- n T o 1 r 8 e ^ 9 a 0 s s - V j ! Sub ^ sid- M co in in or U S n n t o a i t t t e e e s s d F re n e s o d e t e r e r v s a e l ! ; | r F e b e se d a r n e v k ra e l t n b i N o o a t n n a e - a k s l 1928—Jan.31... 4, 677, 055 389,364 1,015, 888 46,764 1,312 ; 276,105 109,727 283,119 1, 560,763 4,237 617,290 Feb. 29.. 4,690,430 385,856 1,003,880 46,412 1,311 i 275,101 109, 640 286,187 1, 570,063 4,178 638,866 Mar. 31. 4, 748, 934 383,116 1,024,875 46,188 372, 709 1,308 ! 274,544 109,922 290,046 1, 588,391 4,138 653,696 Apr. 30.. 4, 748,458 381,203 i 1,020,267 46,154 377,946 1,306 276, 089 110, 306 293,119 1, 585,904 4,096 652,068 May 31. 4, 744,074 379,684 j 1, 013,139 46, 228 379,604 1,305 277,404 110,921 296,189 1,586,975 4,072 648, 552 June 30.. 4, 796,621 377,017 1,019,149 46, 223 384, 577 1,304 278,174 111, 067 298,438 , 1, 626,433 4,029 650, 212 July 31.. 4, 700, 535 374,980 I 977,077 ; 46, 082 384,159 1,301 ' 279, 072 111,400 293,235 | 1, 592,137 3,985 637,109 Aug. 31. 4,802,820 373,558 I 981,785 j 46, 241 391,047 1,300 i 280, 661 111,937 300, 563 1,662, 249 3,948 649, 532 Sept. 29. 4, 846,198 372,909 977,673 ; 46,411 397, 589 1, 298 !283, 296 112,431 303,110 1,698,908 j 3,916 648,656 Oct. 31.. 4,806,230 373,202 ! 959,652 I 46, 298 394,328 1,296 ! 285,350 113,427 300, 659 1,689,171 i 3,880 638,965 Nov. 30. 4,990,114 374,306 1,030,546 • 46,342 404,860 1,295 288,002 114,641 306, 015 1,770,184 I 3,848 650,077 Dec. 31- 4,973,168 395,310 990,996 ! 46,475 410, 334 1,294 • 291,314 115, 613 294,199 1,808,053 I 3,820 615, 761 1929—Jan. 311. 4,656,964 380,984 923,243 I 44, 586 381,671 1,291 280,821 114,090 282,172 1,631,412 3,775 612,914 i Preliminary. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

162 FEDERAL RESERVE BULLETIN FEBRUARY, 1929 FEDERAL RESERVE BANKS—AVERAGE DAILY RESERVES AND DEMAND LIABILITIES IN JANUARY, 1929, AND DECEMBER, 1928 [In thousands of dollars] Total cash reserves Total deposits Fede in ra c l i r r e c s u e l r a v ti e o n notes Reserve percentages Federal reserve bank January December January December January December January December Boston 170,746 207,161 152,354 150,683 143,925 164,306 57.6 65. New York— 906,036 830, 845 953, 202 939,104 333,814 355,373 70.4 64.2 Philadelphia.. 185,394 188,415 139,351 136,830 131,801 153,237 68.4 65.0 Cleveland 260,428 237,123 190,097 186, 225 205,441 221,580 65.8 58.1 Kichmond 89,489 94, 540 71,934 71,710 81, 275 86, 648 58.4 59.7 Atlanta 113,999 119, 840 69,123 69, 587 130,349 136, 689 57.2 58.1 Chicago- 461, 262 443, 729 358, 213 357, 218 295,618 315, 845 70.5 65.9 St. Louis 87,670 86,459 85,919 85, 293 61, 571 63, 701 59.4 . 58.0 Minneapolis- 78, 366 81,870 55, 297 56,413 62,024 64,845 66.8 67.5 Kansas City— 116,079 105, 734 95, 591 94, 367 68, 283 69,327 70.8 64.6 Dallas. 64,878 67,842 73, 346 73,664 44,400 49,039 55.1 55.3 San Francisco 243, 416 251,186 191,823 193,958 163,617 171, 379 68.5 68.8 Total— 2,777, 763 2, 714, 744 2,436, 250 2,415, 052 1,722,118 1,851,969 66.8 63.6 FEDERAL RE3ERVE BANKS—RESOURCES AND LIABILITIES, BY WEEKS RESOURCES [In thousands of dollars] Federal Reserve Bank Total Boston Y N o e r w k P a p d h h e i i l l a - - C la le n v d e- m Ri o c n h d - Atlanta Chicago L S ou t. is n M e l a i i s p n o - - K C an i s ty as Dallas F c S i r s a a e n n o - Gold with Federal reserve agents: Jan. 2 1, 233,3321 103,109 119,142 118,811 53,536 83,875 213, 217 29,303 46,967 57,131 27,325 182,232 Jan. 9.- _.. 1, 219,166! 101,093 198, 684 116, 230117,907 52, 215 76,931 233, 217 32,585 46,384 58,722 26,694 158,504 Jan. 16 1,196,417i 78, 615 192,458 110,905 127, 627 50, 679 78,162 233,114 32,239 47,756 56,985 26,107 161,770 Jan. 23 _ 1, 223, 392 66,346! 242,371 110, 328128, 743 54,394 76, 532233,060 27,618 46, 981 56, 295 20,061 160,663 Jan. 30 1, 207, 793 53,999 242,272 108, 201 137,021 52, 503 74, 760232,907 30,443 46,485 55, 211 19,184 154,807 Gold redemption fund with United States Treasury: Jan.2 73, 693 !| 4, 882 19, 875 5,224 7,348 2,545 3,691 9,516 7,222 3,235 3,514 2,732 3,909 Jan. 9 73,4001 6, 296 18,383 6,180 9,091 3,086 4,585 8,577 5,500 3,605 1,522 2,646 3,929 Jan. 16 68,979| 8,174' 17,136 4,837 7," •" 2,187 4,017 7,305 6,134 1,859 2,839 2,413 4,209 Jan. 23 _ 70, 648 • 9, 884! 15,952 5,813 6,933 1,434 4,166 9,006 5,197 2,363 3,055 2,547 4,298 Jan. 30 66,6861: 6, 535; 14,128 7,035 6,622 2,268 4, ,— 7,625 5,483 2,583 3,634 2,509 3,681 I- Gold held exclusively against Federal reserve notes: Jan. 2 1,307,025 107,991, 218, 559 124,366 126,159 56,081 87,566 222,733 36, 525 50, 202 60, 645! 30,057 186,141 Jan. 9 1, 292, 566,107, 389 217,067 122,410 126, 998 55, 301 81,516 241,794 38,085 49,989 60, 244 29, 340 162,433 Jan. 16 1, 265, 396|86, 789 209, 594 115, 742135, 496 52, 866 82,179 240,419 38, 373 49, 615 59,824 28, 520 165,979 Jan. 23 1, 294,040! 76, 230! 258, 323 116,141 135, 676 55,828 80,698 242,066 32,815 49,344 59, 350 22, 608 164,961 Jan. 30 _ _. 1, 274,479 60, 5341 256,400 115, 236143, 643 54, 771 79,343 240,532 35,926 49,068 58,845 21,693 158,488 Gold settlement fund with Federal Reserve Board: Jan. 2 _ 685,346 47,105! 160, 926 32,324! 73, 045 11, 227 15,781 173,418 29,888 22,085 45, 681 30,066! 43,800 Jan. 9- 684,091 25,101! 211, 842 26, 931! 75,450 9,629 14,899 163,438 24,968 21,995 46, 718 27,114! 36,006 Jan. 16 704, 819 30, 344; 264, 790 29, 877, 66,187 10,008 13,886| 142,737 22, 925 20, 567 40, 352 22, 754J 40,392 Jan. 23 _. 683,066 30, 926 280, 225 25,476: 72, 847 5,730 11,276; 119,077 20,603 19,974 41,118 22,055j 33, 759 Jan. 30. _ 725,160 41,5141 282, 271 23, 669 68,355 10,428 16,373 134,014 21,880 22,827 44, 363 21, 690 37, 776 Gold and gold certificates held by banks: Jan. 2 _.. 595, 256 35, 581! 358,968 24, 514| 40,339 12, 585 5, 216 61, 725 9,450 5,262 6,254 7,335 28,027 Jan. 9 _ 655,015 410,023 25, 890, 42, 556 14, 592 6,018; 62,790 10,829 3,989 6,027 7,416 28,497 Jan. 16 660, 355 33,493 415, 642 28, 264! 43,492 14,920 6,189! 60,998 11,202 4,112 6,180 7,523 28,340* Jan. 23 670, 984 31,047j 422,438 31, 517J 44, 786 15,176 6, 528 55,928 11,639 3,684 6,262 12, 734 29,245 Jan. 30 _ 667, 545 29, 689' 419, 602 34,103; 45, 394 14,933 6, 538 53, 501 11, 767 3,817 5,886 12,870 29,445- Total gold reserves: Jan. 2 2, 587, 627 190,677| 738,453 181,204 239,543 79,893 108,563; 457,876 75,863 77,549 112, 580 67,458 257,968- Jan.9 2, 631, 672 168,878 838, 932 175,231 245,004 79, 522102,433 468,022 73,882 75,973 112,989 63,870 226,936 Jan. 16 2, 630, 570150, 626 890,026 173,883! 245,175 77, 794 102,254' 444,154 72,500 74, 294 106,356 58, 797 234, 711 Jan. 23 2, 648, 090 138, 203 960,986 173,134 253,309 76, 734 98,502! 417,071 65,057 73,002 106, 730| 57,397 227,965 Jan. 30-— 2, 667,184'131, 737 958, 273 173,008: 257,392 80,132 102,254! 428,047 69, 573 75, 712 109,094i 56, 253 225, 709. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

163 FEBRUARY, 1929 FEDERAL RESERVE BULLETIN FEDERAL RESERVE BANKS-RESOURCES AND LIABILITIES, BY WEEKS-Continued R E S O U R C E S—C ontinued [In thousands of dollars] Federal Reserve Bank Total Boston Y N o e r w k P a p d h h e i ia l l - - C la le n v d e- m Ri o c n h d - Atlanta Chicago Lo S u t i . s n M e l a i i p s n o - - K C an it s y as Dallas F c S r is a a c n n o - Reserves other than gold: Jan. 2 _ 130,898 17, 754 24,018 6,759 11,590 8,151 9,925 12, 725 15,601 2,449 5,856 5,578 10,492 Jan. 9 151,435 20,156 30, 717 7,867 11,129 9,794 11,151 16, 083 17,816 2, 593 6,389 6,127 11,613 Jan. 16 162,065 19, 889 36,058 8,597 11, 666 10, 567 11,440 17, 657 17, 881 2,7.r 6,209 6,637 12,680 Jan. 23.__ 165,440 19,184 39,131 9,120 11, 272 10,956 11,322 17, 327 18, 669 2,933 6,176 6,945 12,405 Jan. 30 168,013 19,141 40, 212 9,411 11,830 10, 823 11, 619 18,705 2,844 6,199 7,441 12,895 Total reserves: Jan. 2 2, 718, 5251 208, 431 762, 471 187, 963 251,133 88, 044 118,488 470, 601 91,4641 118,436 73, 036 268,460 Jan. 9. _ 2, 783, 1071 189,034 869, 649183,098 256,133 89,316 113,584 484,105 91, 698: 78, 566 119, 378 69, 997 238, 549 Jan. 16 2, 792, 635| 170,515 926, 084 182,480 256, 841 88, 361 113, 694 461,811 90,381! 77, 078 112,565 65,434 247, 391 Jan. 23 2, 813, 530| 157, 387 1,000,117 182, 254 264, 581i 87, 690 109,824 434,398 83, 7261 75, 935 112,906 64, 342 240, 370 Jan. 30 2,835,197 j 150, 878 998,485 182,419 269, 222| 90, 955 113,873, 444,940 88,278 78, 556 115, 293 63, 694 238,604 Nonreserve cash: Jan. 2 83, 308; 11, 605 25,405 1, 490; 6,172 7,627 4, 836 11, 335 3,483 1,286 2, 500 3,243 4,326 Jan. 9-_ 99,091! 14, 240 33, 378 1, 673! 5,190 8,472 5, 480; 12, 641 4,489 1,714 2,337 3,961 5,516 Jan. 16 96, 532! 12, 771 34,092 2,031 5,662 8,724 4, 8961 11,133 4,220 1,559 2,270 3,856 5,318 Jan. 23 96,488| 11,441 36,053 2, 251 5,173 8,907 5, 244 j 9,540 4, 662j 1,170 2,193 3, 718 6,136 Jan. 30 --. 91,881 10, 205 35,009 2,380 5,765 8,013 4,815 4,443! 1,395 2,200 3,690 5,597 Bills discounted: Secured by U. S. Government obligations- Jan. 2 757,451 i 28, 301 378, 891 58, 248 59, 262 19, 529 17,178 111,022 26,920 7,278 16,146 14,036 20,640 Jan. 9 558,186! 34, 941 206, 677 53, 755 55, 219 17,456 20,480! 78,899 21,927 8,099 11,881 16,162 32, 690 Jan. 16 525. 735 29,915 160, 987 51, 355j 49,198 17,401 18,573; 102,487 22,037 8,882 14, 875 15, 572 34,453 Jan. 23 47i; 4431 35,867 97,310 44, 6561 46,157 20, 278 20,494! 102,222 27, 767 9,054 12, 648 18,416 36, 574 Jan. 30 _. 523,778 35,446 169,411 47,953 46,418 19,473 20, 243 88, 204 21,895 6,237 11, 545 17,863 39,090 Other bills discounted— Jan. 2_._ 394,013 27, 558 116, 567 25.475 32, 513 26, 755 38,100 62, 828 11,620 2,179 24,053 2,921 23,441 Jan. 9. _ 318, 361: 12,006; 74, 883 22, 257! 29,4821 22,828 39,858 49, 505 13, 392 4,034 22,376 2,743 24,997 Jan. 16 _ 296,089: 19,787S 56, 679 22, 442; 27,973! 20,918 39,177 i 44, 878 12,959! 4,460 21, 236 3,781 21, 799 Jan. 23 _... 310, 671' 29,0271 55, 847 24, 516 27,112' 19, 398 40, 219 53,477 14,172| 4,308 20,193 3,645 18, 757 Jan. 30 - - 296, 856 38,152 43,497 22, 528! 24,173 j20,010 40, 321 49,485 13, 901 4,218 19, 581 4,709 16, 281 Total bills discounted: | Jan. 2 1,151, 464 i 55, 859' 495,458 83, 723 91, 775 46, 284 55,278 173,850 38, 540! 9,457 40,199 16,957 44,084 Jan. 9 .- 876, 547-I 46, 947 281, 560 76,012 84, 701! 40, 284 60,338! 128,404 35,319! 12,133 34, 257 18, 905 57, 687 Jan. 16 821, 824jj 49, 702 217, 666; 73, 7971 77,17li 38, 319 57, 750: 147,365 34,996 '•13, 342 36,111 19, 353 56, 252 Jan. 23 782,114' 64,894i 153,157! 69,172 73, 2691 39, f~~ 60,713: 155,699 41, 939' 13, 362 32, 841 22, 061 55, 331 Jan. 30 820,634 73, 598 212,908; 70,481 70, 5911 39,483 60,564 137,689 35, 796 j 10,455 31,126j 22, 572 55,371 Bills bought in open market: Jan. 2 __- 484, 358 ! 54, 667; 146, 7891 16, 353 52, 996, 24, 705 31,877 39,494 11,172 21, 671 1, 264 25, 273 58,097 Jan. 9 ._ 477,100 68, 566j 131, 618 17, 2641 49, 268j 22, 703 29,771! 41,679 10, 341! 19, 829 2, 2911 22,062 61, 708 Jan. 16 a 481, 239 74, 200: 137,813! 19, 7051 47, 748i 21,4.73 26,932i 43,4'28 8,122 19, 979 5, 275! »22, 715 53,849 Jan. 23 _._ 454, 218 68, 749! 120,436j 20, 583 45, 246; 19,983 25,329 45,274 8,383 18,416 7,457i 21, 649 52, 713 Jan. 30 435, 609 63,180; 115,440| 22, 915 19, 579 24, 2171 43, 264 8,455 16,973 8,372 20,674 52, 545 U. S. Government securities: Bonds- Jan. 2 52, 666 689: 1, 384; 585 548 1,152 345 19,937 7,125 4,519 8,506 7,813 63 Jan. 9 52, 666! 689 1, 384i 585 548 1,152 346 j 19,937 7,125 4,519 8,505 7,813 63 Jan. 16 _ 52, 679 1, 384 585 548 1,152 359 19, 937 7,125 4,5191 8, 5051 7,813 63 Jan. 23 52,344! 1, 3841 58, 548 1,152 24 19, 937 7,125 4, 519 8, 505! 7,813 63 Jan. 30 — — 51, 599 ! 1, 384| 585 548 1,152 29 19, 937 7,125 4,519 7, 755] 7,813 63 Treasury notes— i jl i Jan. 2 ! 120,818! 3,073 35,136! 10, 307 28, 530 1, 063 3,562 6,794 11, 563 4,618 2,175 13,096 Jan. 9 J 113,425 | 3, 073 28,127 10, 307 28, 530 1,063 3,562 6,409 11, 563 4,618 2,175 13,096 Jan. 16 ! 122,478 I 3,073 37, 222: 10, 307 28, 530 1,063 3,560 6, 369 11, 563 4,618 2,175 13,096 Jan. 23 | 98,383! 3,073 13, 007 i 10, 307 28, 530 1,063 3,560 11, 563 4,618 2,175 13,096 Jan. 30 ! 99, 572 | 3,091 12,682j 10,307 28, 530 1,062 3,558 11, 562 4,618 2,175 13,096 Certificates of indebted- | | ness— ] Jan. 2_ | 70,469 4,411 31,107 10, 555 3,1 1,212 1,372 8,734 2,355 1,770 20 3,943 Jan. 9__ I 73,151 4,411 35,141 10, 555 3,884* 1,212 1,280 7,494 2,355 1,770 3,943 Jan. 16 _ I 63,186 4,411 25, 086 10, 555 3, 884! 1,212 1, 285 7,579 2,355 1,770 3,943 Jan. 23 i 51, 307; 4,411 12,901 10, 555 3,884! 1,212 1,286 2,355 1,770 3,943 Jan. 30 50, 600 4,411 12,121 10, 555 3,884! 1,213 7,954 2,3;55 1,770 3,943 Total U. S. Government securi-! I ties: | Jan. 2 i 243,953 8,173, 67, 627! 21,447 32,962 3,427 5,279 35,465 21,0431 10,907 17,102 Jan. 9_ i 239,242 8,173: 64, 652j 21,447 32, 962| 3,427 5,188 33, 840 21,043 10,907 17,102 Jan. 16 1 238,343 8,173 63,692 21,447 32,962 3,427 5,204 33, 885 21,043| 10,907 17,102 Jan. 23 i 202,034 8,173| 27, 292> 21,447 32,962; 3,427 4,870 34,310 21,043 10,907 17,102 Jan. 30 ; 201,771 8,1911 26,187. 21,447 32,962 3,427 4,875 35,880 21,042 10,907 17,102 Other securities: Jan. 2 9,885 1,635 250 Jan. 9 9,825 1,575 250 Jan. 16. 9,825 1,075 750 Jan. 23 _ 9,025 775 750 Jan. 30 9,025 775 750 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

164 FEDERAL RESERVE BULLETIN FEBRUARY, 1929 FEDERAL RESERVE BANKS—RESOURCES AND LIABILITIES, BY WEEKS—Continued RESOURCES—Continued [In thousands of dollars] Federal Reserve Bank Total Boston Y N o ew rk P a p d h h e i i l l a - - C l l a e n v d e- m Ri o c n h d - Atlanta Chicago L S o t u . is n M e l a i i s p n o - - Ka C n i s ty as Dallas F c S r is a a c n n o - Total bills and securities; Jan. 2 1,889,660, 118,699 709, 874 121,523 177,733 74,416 92,434 248,809 70,755 43, 670 53, 476 58, 738 119,533 Jan. 9_ 1,602, 714 123, 686 477, 830 114,723! 166,9311 66,414 95,297 203,923 66. 703 44,444 48, 561 57,455 136, 747 Jan. 16 1, 551, 231132,075 419,171 114,949| 157,881! 63, 219 89,886 224,678 64,161 45,303 53, 399 58, 556 127,953 Jan. 23 1,447, 391 141,816 300,885 111,202 151,477j 63,086 90,912 235, 283 71,365 43,460 52,311 59,698 125,896 Jan. 30 1,467,039 144,"" 354, 535 114,843 143,548 62,489 89,656 216,833 65,293 39, HO! 50, 761 59,234 125,768 Due from foreign banks: Jan. 2 728 55 205 31 101 31 20 26 25 52 Jan. 9_._ 729: 54 221 70! 34 28 100 29 18 24 24 52 Jan. 16 _ 731! 54 223 701 34 28 100 29! 18 24 24 52 Jan. 23 731: 54 223 70: 34 28 100 29; 18 24 24 52 Jan. 30 730 54 222 70 34 28 100 29| 18 24 24 Uncollected items: I Jan. 2... 826,1871 85.122 224,294 72,092| 79, 757 65, 629 28,356 94,115 35, 357 17,473 46,425 33, 289 44, 278 Jan. 9.__ 691,004 66, 611 188,017 58,845| 60, 578 52, 638 22, 695 80,036 31,426 13,910 40,285 29,511 46,452 Jan. 16. 793, 508 79,480 227,155 64,800; 74,052 57,163 28,091 97,168 34, 314 13,611 41,163 31, 232 45, 279 Jan. 23__ _ 700,026! 64, 786 184,033 59,164! 65,453 54, 349 30, 374 86, 740 33, 537 13,404 37, 882 28,436 41,868 Jan. 30 _ 631,465J 61,338 169, 547 52,558 i 61,902 50,089 21,695 77,572 28,506 11,593 35,836 25,050 35,779 Bank premises: J J J J a a a a n n n n . . . . 9 2 2 16 3 __ _ 6 5 5 5 8 8 8 8 , , , . 6 5 5 5 0 9 9 9 1 6 1 1 1 i 3 3 3 3 , , , , 7 7 7 7 0 0 0 0 2 2 2 2 1 1 1 1 6 6 6 6 , , , , 0 0 0 0 8 8 8 8 7 7 7 7 1 1 1 1 , , , , 7 7 5 7 7 5 5 5 2 2 2 2 ! i ! ! 6 6 6 6 , , , , 5 5 5 5 3 3 3 3 5 5 5 5 3 3 3 3 , , , , 5 5 5 5 7 7 7 7 5 5 5 5 2 2 2 , , , , 7 7 7 7 4 4 4 4 4 4 4 4 8 8 8 8 , , , , 5 5 5 5 2 2 2 2 7 7 7 7 3 3 3 3 , , , , 8 8 8 1 8 1 1 2 2 2 2 6 i ! ! ! 2 2 2 2 , , , , 1 1 1 H 1 H H i 0 i ' 4 4 4 4 , , , , 1 1 1 1 4 4 4 4 0 0 0 0 1 1 1, , , ' 9 9 2 2 1 0 3 3 3 3 , , , , 6 6 6 6 8 8 8 8 7 7 7 7 Jan. 30 58.607 3,702 16,087 1, 752! 6, 535 3,575 2,744 8,527 3,827| 2,110 4,140 1, 9211 3,687 All other resources: Jan. 2____ 7, 715 82 1,157 204 1, 1,453 809 445i 903 271 436 Jan. 9_ _ 7, 678l 80 1,055 230; 1,1! 480 1,450 801! 408! 939 264 450| 401 Jan. 16.— 7,740 83 1,061 232i 1,1361 485 1,448 799! 428! • 805 328 5011 434 Jan. 23_._ 8,42i: 83 1,020 242i 1,154 480 1,415 800; 440i 812 325 500i 1,150 Jan. 30- 8,811 70 1,175 249 1,172 484 1,399 805J 450, 323 498 1,318 Total resources: Jan. 2 5, 584, 714427, 696 1,739,493 385, 093 522,474 239,816 248,342 834,297, 205,347; 145,460 225,274 170,687 440,735 Jan. 9 _ 5, 242, 914 397,407 1, 586, 237360, 391 496,562 220,929 241, 278 790,133 198,565 141,701 214,989 163,318 431,404 Jan. 16___ 5, 300,968 398, 680 1,623,873 366, 314 502,182! 221,561 240, 787 804,216 197,345 140,484! 213,889 161, 523) 430,114 Jan. 23___ 5,125,193 379, 269 1, 538,418350,935 494,448j 218,121 240, 541 775,388 197,585! 136,909 209,781 158,639 419,159 Jan. 30 5,093, 730 371, 216 1,575,060 354, 271 488,218! 215,639 234,210 757,146| 190,826 133,650 208,577 154,111 410,806 LIABILITIES Federal reserve notes in circulation: Jan. 2___ 1,829, 3641 159,884 353,879 140,239 215,057 85, 877 134, 625 321,671 64,120 64, 760 70,690; 48,280 170,282 Jan. 9_ 1,745,262: 150,430 332, 699 128,725! 209,648 81,942 131, 375 304,930 61,912 63,280 69,308! 45,922 165, 091 Jan. 16 1, 697,302: 140,846 326,403 127,897! 201,677 80,415 129, 674 292, 314 61, 258 61,979 68,056J 43,899 162,884 Jan. 23 1,660,967 133, 991 322, 550 126,320 200,533 78, 661 128, 207 280,591 60,304 60,274 67,074! 42,834 159,628 Jan. 30 1,645,494 132,057 319,820 130,310' 199,193 77,150 127,196 275,171 60,056 59,970 66,065! 40,962 157, 544 Deposits: Member bank—reserve account- Jan. 2 2,493,7571 150,187 1,027,921 137,810: 185,823 71, 264 68,041 358,130 86,514 54, 634 96,135: 72, 526 184, 772 Jan. 9 2,404,678 150,001 950, 927 137,617 185,434 71, 204 67,325 351,941 86,019 55,345 94, 752 73, 635 180,478 Jan. 16 2,414,553 150,160 955,615 139, 224 187,070 68,465 67,352 363,30l! 83,054 54,207 93,928 71,222 180,955 Jan. 23 2,358,861 148,6071 915, 506 136,168 184,700 68,809 66,378 357,880! 83,887 53,582 94,058! 72,613 176, 673 Jan. 30 2,390,947: 146, 617 963,955 134, 252 183,537 70,082 66, 261 349, 6651 82,907 51,463 94,110J 72,356 175,742 G 0 ver nment— Jan. 2. 30,999' 1,298 7,271 2,071 1,467 257 3,153 1,287 1,231 1,627 1,966! 2,527 6,844 Jan. 9_ 14,108 989 770 401i 1, 169 2,794 779 978 294 l,36l| 1,197 3,288 Jan. 16 25,535: 932 12,033 1,241! 461 726 720 2,639 891 1,085 722! 1,265 2,820 Jan. 23__ 12,08& 1,962 2,004 274| 1,211 1,115 700 1,295 1,083 533 307 788 816 Jan. 30 18036 718| 2,079 800j 1,624 2,423 2,192 2,016 1,414 736 1,115 2,233 Foreign bank- Jan. 2 5,935J 1,265 618| 676 332 273 904 280 175 234! 228 462 Jan. 9 5, 853| 460 1,524 5961 634 286 242 851 248 155 205[ 205 447 Jan. 16 7,283: 460! 2,954 634| 286 242 851 248 155 205 205 447 Jan. 23 6-, 762 460| 2,433 5y6 634 286 242 851 248 155 205 205 447 Jan. 30 6,903 460; 2,574 596 634 242 851 248 155 205 205 447 Other deposits- Jan. 2 33,042| 127 20, 233 178 1,001 1,123 133 3,029 502 298 344: 52 6,022 Jan. 9 27, 600 139 12,293 192 1,448 209 122 3,609 353 331 293 63 8,548 Jan. 16 25,211 156 11,584 127 1,652 82 168 1,066 278 272 206 62 9,558 Jan. 23 19,379 112 8,075 90 1,453 93 93 758 381 240 252 38 7,794 Jan. 30 21211i 71 1,221 87 821 350 257 212 26 0,311 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

165 FEBRUARY 1929 FEDERAL RESERVE BULLETIN FEDERAL RESERVE BANKS—RESOURCES AND LIABILITIES, BY WEEKS—Continued LIABILITIES—Continued [In thousands of dollars] Federal Reserve Bank Total Boston Y Ne o w rk a P p d h h e i i l l a - - C l l a e n v d e- m Ri o c n h d - Atlanta'Chicago L S ou t. is n M e l a i i p s n o - - K C an it s y as Dallas F c S r is a a c n n o - Deposits—Continued. Total deposits: Jan. 2 _ 2,563, 733 152,100 1,056,690 140, 677 188,967 72,976 71, 600363, 350 88,527 56, 734 98,679 75,333 198,100 Jan. 9- 2,452,239 151,589 965,514 138,806 188, 604 71,868 70,483 357,180 87.598 56,125 96,611 75,100 192,761 Jan. 16 2,472, 582 151, 708 141,188 189,817 69, 559 68,482 367,857 84,471 55, 719 95,061 72, 754 193,780 Jan. 23. 2, 397,090 151,141 928,018!137,128 187, 998 70, 303 67,413 360, 784 85.599 54, 510 94,822 73,644 185,730 Jan. 30 2,437,097 147, 884 977,294|135, 719 187,016 72,871 68, 782353,353 84,919 52, 611 95,213 73,702 187,733 Deferred availability items: Jan. 2 ___ 776, 626^; 85, 472 203,361 65, 299 76,393 61, 522 25,315 92, 044 35,371 13,010 42,033 33, 679 43,127 Jan. 9 629, 574 , 64, 920 162, 470 53, 893 56,125 47, 705 22,478 70, 692 31, 775 11,313 35,190 28,856 44,157 Jan. 16 _.- 713,457| 75, 680 188, 503 58*216 68,304 52,074 25, 703 86, 535 34,312 11, 794 31,422 44,025 Jan. 23 648, 570!! 63, 550 161,117 54, 366 63,491 49, 596 27, 901 76, 214 34,312 11,106 33,946 28, 662 44,309 Jan. 30 ._ --_. 591,235 60,574 150,394 49,081 59,499 46,044 21,167 70,672 28,442 10,047 33,359 25,909 36,047 Capital paid in: Jan. 2 146, 952; 10,156 50,124 14, 536 14, 419 6,142 5,239 18,478 5,416 3,021 4,224 4,329 10,868 Jan.9 146,826^ 10,156 50,064 14, 536 14, 419 6,066 5,254 18,478 5,416 3,021 4,221 4,327 10,868 Jan. 16 147,856 10,165 50,844 14, 536 14,564 6,158 5,224 18, 518 5,416 3,020 4,219 4,324 10,868 Jan. 23 .. 148, 356i 10,165 51,311 14, 536 14, 561 6,154 5,247 18, 526 5,416 3,020 4,232 4,319 10,869 Jan. 30 148,810 10,165 51,870 14,536 14, 561 6,166 5,258 18, 589 5,414 3,028 4,235 4,308 10,680 Surplus: I Jan. 2 254,3981 19, 619 71, 282 24,101 j 26,345 12,399 10, 554 36,442 10,820 7,082 8,690 17,978 Jan. 9 _._ 254, 398 19, 619 71, 282 24,1011 26, 345 12,399 10, 554 36,442 10,820 7,082 8,690 17,978 Jan. 16 _. 254,398: 19, 619 71, 282 24,101 26,345 12,399 10, 554 36,442| 10, 820 7,082 9,086 8,690 17,978 Jan. 23 ._. 254,398 19, 619 71, 282 24,101 26, 345 12, 399 10, 554! 36, 442i 10,820 7,082 9,086 8,690 17,978 Jan. 30 254,398! 19,619 71,282 24,101 26,345 12,399 10,554| 36,442J 10,820 7,082 9,086 8,690 17,978 All other liabilities: I! Jan. 2. 13, 641 i 465 4,157 241 1,293 900 1,009J 2,312| 1,093 853 562 376 380 Jan. 9. 14,615,1 693 4,208 330i 1,421 949 1,134 2,41ll 1,044 880 573 423 549 Jan. 16 15,3731: 662 4,655 376 1,475 956 1,150 2, 550' 1,068 890 578 434 579 Jan. 23 15,812 803 4,140 484 1,520 1,008 1,219 2,831 1,134 917 621 490 645 Jan. 30 917 4,400 524 1,604 1,009 1, 253 2,919 1,175 912 619 540 824 Total liabilities: Jan. 2 5,584,714! 427,696 1,739,493 385,093 522, 474 239, 816 248,342 834,297 205,347 145, 460 225, 274170, 687 440,735 Jan. 9___ .-- 5, 242, 914 i 397, 4071, 586, 237360,391 496, 562 220,929 241, 278i 790,133 198, 565 141, 701 214,989 163,318 431,404 Jan. 16 _ 5,300, 968 398, 6801, 623,873366,314 502,182 221, 561 240,787! 804,216 197,345 140, 484 213,889 161, 523430,114 Jan. 23 5,125,193! 379,269 1, 538, 418356,935 494,448 218,121 240,5411 775,388 197, 585 136, 909 209, 781 158, 639419,159 Jan. 30 _. 5,093, 730 ' 371,2161, 575,060354,271 488,218 215, 639 234, 210| 757,146 190,826 133,650 208,577 154, 111410,806 i MEMORANDA Ratio of total reserves to Federal reserve note and deposit liabilities combined (per cent): I Jan. 2 _ 61.9 66.8 54.1 62.2 55.4 57.5 68.7 59.9 65.8 69. 59.1 72.9 Jan. 9_ 66.3 62.6 67.0 68.4! 64.3 58.1 56.31 73.1 61.3 65.8 71.9 57.8 66.7 Jan. 16 67.0 58.3 70.8 67.8 65.6 58. 57. 4! 70.0 62.0 65.5 69.0 56. V 69.4 Jan. 23... _ 69.3! 55.21 80.0 69. 2! 68.1 58.9 56. lj 67.7 57.4 66.2 69.7 55.2 69.6 Jan. 30 69.4 53.9 77.0 68.6 69.7 60.6 58.1 70.8 69.8 71.5 55.5 69.1 Contingent liability on bills purchased for foreign I correspondents: '' Jan. 2__ _ 325,0641 24, 227 93,131 30, 688 33, 594 16, 474 13,567 44,9011 13, 890 8,722 11, 629 11,306 22,935 Jan. 9 333,971 ! 24, 358 104, 546 31,600 33,574 15,141 12, 837! 45, 095| 13,16 8,229 10, 862 23,700 Jan.16 332,338 24, 783 98, 910 32,150 34,160 15,406 13,061 45,882 13,396 8,373 ll', 052 11,052 24,113 Jan. 23 325,443; 24,195 97, 550 31,388 33,350 15,040 .12, 752, 44, 794! 13, 079 8,174 10, 790 10, 790 23,541 Jan. 30 317,774 i 23, 539 96,059 30,538 32,446 14, 633 12, 4061 43, 580 12,724 7 95r 10,497 10,497 22,903 Own Federal reserve notes held by Federal reserve banks: Jan. 2 449, 9281 48, 672| 111,456 50, 503 37, 716 18, 796 35, 559 45, 928 11, 858 6,864 9,428 10,174 62,974 Jan. 9 _ 497,390 51,610; 137, 656 60, 505 34, 521 21, 571 34, 976 48. 293 13,348 7,161 10, 951 9,361 67, 437 Jan. 16 484,653: 38,441; 142, 062 57,008 39, 732 21, 702 32, 588 42, 49' 13, 016 5,834 10,426 10, 797 70,550 Jan. 23 _. 462, 483 31,477 135, 231 53,808 35, 692 22,171 33, 025 38, 592 13,349 8,304 10, 718 10, 817 69, 299 Jan. 30 _._ 433, 672 26, 714, 127, 279 50,491 33,010 21, 890 31,493 33, 730i 12,422 8,112 10,121 68, 527 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

166 FEDERAL RESERVE BULLETIN FEBRUARY, 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 l l a e n v d e- m Ri o c n h d - Atlanta Chicago L S o t u . is M ap i o n l n is e- Ka C n it s y as Dallas F c S i r s a a c n n o - Federal reserve notes received from comptroller: Jan. 2 3,013,124 241,956 776,190 221,042 279,403 124,614 225,774 462, 619 89,328 87,153 110,328 68,461 326,256 Jan. 9 3,001,234 239,940 774,800 219,530 275,899 123,294 224,391 458,143 89,090 86, 570111,019 67,830 330,728 Jan. 16 2,982,912 237,462 773, 270217, 205275,939 121,758; 223,102 452,331 87, 744 85,942 109,282 67,243| 331,634 Jan. 23 _ 2,963,997 235,193 772, 586215,428 277, 355120,473 223,472 446,403 87, 603 85,167 108, 592 66,1981 325,527 Jan. 30 2, 941,893 235,846 770, 904215, 301274,133 118,581 221, r" 440, 521 86,428 84, 671107, 508 65,330 320,671 Federal reserve notes held by- Federal reserve agent: Jan. 2 733,832 33,400 310,855J 30,300 26,630 19,941 55, 590 95,020 13,350 15,529 30,210 10,007i 93,000 Jan. 9_ 758, 582 37,900 304,445 30,300 31, 730 19, 781 58,040 104,920 13,830 16,129 30,760 12, 547 98, 200 Jan. 16 ___ 800,957 58,175 304,805 32,300 34, 530 19, 641: 60, 840 117, 520 13,470 18,129 30,800 12, 547 98, 200 Jan. 23 840, 547 69, 725314,805 35, 300 41,130 19, 641! 62, 240 127,220 13,950 16, 589 30,800 12,547; 96,600 Jan. 30- 862, 727 77,075 323, 8051 34, 500 41, 930 19, 5411 63, 310 131, 620 13, 950 16, 589 31, 560 14,247j 94, 600 Federal reserve notes issued to Federal reserve bank: Jan. 2 2, 279, 292208,556 465,335 190,742 252,773 104,673^ 170,184 367, 599 75,978 71, 624| 80,118 58,454! 233,256 Jan. 9 2, 242, 652202,040 470,355 189,230 244,169! 103,5131 166.351 353,223 75,260 70,4411 80,259 55,283! 232,528 Jan. 16 2,181,955 179,287 468,465 184,905' 241,409 102,117: 162,262 334,811 74,274 67,8131 78,482 54,696 233,434 Coll J J a a a t n n e . r a 2 3 l 3 0 held as security for 2 2, , 0 1 7 2 9 3 , , 1 4 6 5 6 0 1 15 6 8 5 , , 4 7 6 7 8 1 4 4 5 4 7 7 , , 7 0 8 9 1 9 i 1 1 8 8 0 0 , , 8 1 0 2 1 8 2 2 3 3 2 6 , , 2 2 0 2 3 5 1 9 0 9 0 , , 0 8 4 32 0: ! 1 1 5 6 8 1 , , 6 2 8 3 9 2 3 3 1 0 9 8, , 9 1 0 8 1 3 7 7 3 2 , ,4 6 7 5 8 3 | 1 6 6 8 8 , , 0 5 8 7 2 8 ! 7 7 7 5 , , 9 7 4 9 8 2 5 5 3 1 , , 6 0 5 8 1 3 |I 2 2 2 2 6 8, , 9 0 2 7 7 1 Federal reserve notes issued to Federal reserve bank: Gold and gold certificates— Jan.2 371, 273 35,300 177,998. 50, 000 6,690 27, 350 7, 500 17, 268 35,000 Jan.9 371. 273 35,300, 177,998 . 50,000 6,690 27, 350 7, 500 17, 268 35,000 Jan.16 365,155 35,300 171,880. 50, 000 27, 350 7,500 17, 268 35,000 Jan.23 360,155 35,3001 171,880'. 50,000 6, 27,350 7,500 12, 268 35, 000 Jan.30 360,145 35,300! 171,880L 50,000 6,690 27, 350 7,500 12,258 35,000 Gold redemption fund— Jan. 2 98,442 9,809 15, 686 13,1651 13, 811 7, 8,525 2,217 1,803 3,771 3,057 16, 952 Jan. 9__ ___•_ 101.271 17, 793: 15, 6861 11, 653! 12,907 6,525 6,581 2,217 2,085! 3,362 4,426 16,819 Jan. 16 94,958 15, 315| 15, 578; 9,328 12, 627 4.T" 4,812 2,114 3,739 3,625 3,\" 16,403 Jan. 23 _•_ 96,r~~ 13, 046j 15,491! 12, 551 13, 743 3,704 2,060 3,118 2, 935! 3.793 16,031 Jan. 30 90,144 10, 699 15, 392| 10,424 12,021 6,813 7,210 1,907 1,943 3, 8511 2,926 15, 640 Gold fund- Jan. 2 763, 617 58, 000J 5,000! 105,977 55, 000 39, 000 48, 000211,000 53, 360 7,000 130,280 Jan. 9 746,622 48,000! 5,000 104,577 55, 000 39,000 43,000 231,000 55,360 5,000; 106,685 Jan.16 736, 304 28, 000| 5,000! 101.577 65,000; 39,000 46,000 231, 000 53, 360 5,000 110, 367 Jan. 23 766, 269 18,000 55,000 97,777 65, 000 44, 000 40, 500231,000 53, 360 4,000 109, 632 Jan. 30 757, 504 8,000 55, 000 97, 777 75,000 39,000 40,200 231,000 51, 360 4,000 104,167 Eligible paper- Jan. 2 1, 562, 351110, 450 613, 800| 71,656 139,534 62, 536 86,985 213,068 30,846 40, 915 42,169 100, 786 Jan. 9 1, 314,853 115,438' 400,092; 74,580; 133,405 60,308 89,974 169,825 31, 678 36,099 40,914 116,924 Jan. 16 1, 262, 034123, 8271340, 626; 76,742. 122,714 56,404 84,488 190,523 32, 958 40, 931 42,025 107, 774 Jan. 23._ 1,197,449 133, 568 258, 080i 74,473 117,900 54, 744 85,772 200,712 31, 496 39,854 43, 662106,911 Jan. 30 1, 217,957 136, 702 311,848 78,546 110,353 55,073 84,437 180,700 27,118 39,160 43,194 106, 620 Total collateral: ! Jan. 2 2,795,683 213, 559 812,484! 190,798 258,345 116,072 170,860 426,285 78,909 77,813 98,046 69,494 283,018 Jan. 9 2, 534,019 216, 531 598,776; 190,810 251, 312112, 523166, 905403,042 78. 201 78,062 94, 821 67, 608275,428 Jan. 16 2,458,451! 202,442 533,084 187,647 250, 341107,083 162, 650423, 637 75, 261 80, 714 97,916 68,132 269, 544 Jan. 23 2,420, 841 199, 914 500,451 184,801 246, 643109,138 162, 304433, 772 77, 895 78,477 96,149 63, 723267, 574 Jan. 30 2,425,750 190, 701 554,120 186,747 247, 374107, 576159,197 413, 607 74, 649 73, 603 94, 371 62,378 261,427 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

167 FEBRUARY, 1929 FEDEEAL RESERVE BULLETIN MATURITY DISTRIBUTION OF BILLS, CERTIFICATES OF INDEBTEDNESS, AND MUNICIPAL WARRANTS [In thousands of dollars] Total Wi d th ay in s 15 16 d a to y s 30 31 d a to y s 60 61 d a to y s 90 9 6 1 m d o a n y t s h t s o m O o v n e t r h 6 s Bills discounted: Jan. 2 1,151,464 1,011,198 38,475 54, 282 31,148 15, 111 1,250 Jan. 9 876,547 741,362 37,238 49,880 35,162 11,782 1,123 Jan. 16. _ 821,824 688, 297 36,022 50,422 31,801 13,160 2,122 Jan. 23 782,114 636, 529 33, 076 58,933 40, 430 11,009 2,137 Jan. 30.. . . . . .. 820,634 677,446 37,802 51,437 42,387 9,454 2,108 Bills bought in open market: Jan.2 . . . . .. 484,358 i 156,817 89, 215 129, 680 104,083 4,563 Jan. 9 477,100 ! 146,784 89, 543 139,511 97, 221 4,041 Jan. 16 . .. 481,239 i 156,899 77,198 141, 846 100,252 5,044 Jan. 23 454, 218 i 132,608 81,392 160,109 76,359 3,750 Jan.30 . . .. . 435, 609 133, 502 95,602 156,122 46,947 3,436 Certificates of indebtedness: Jan. 2. 70,469 ! 19,885 28 22, 995 7,403 20,158 Jan. 9 _ 73,151 ! 23,020 22, 888 7,408 19, 835 Jan.16 . 63,186 ! 12,965 22,913 7,273 20,035 Jan. 23 51, 307 j 780 22,928 7,224 20, 375 Jan. 30 50,600 23,073 1, 049 6, 594 19,884 Municipal warrants: Jan 2 60 60 GOLD SETTLEMENT FUND—INTERBANK TRANSACTIONS FROM DECEMBER 20, 1928, TO JANUARY 23, 1929, INCLUSIVE [In thousands of dollars] Changes in ownership Tran m sf e e n rs t a fo c r c o G u o n v t ern- Transit clearing Federa c l l e re a s ri e n r g ve note o fe f r g s o a ld n d th r c o le u a g r h in t g r s ans- Ba fu la n n d c e a t in Federal reserve bank close of period Debits Credits Debits Credits Debits Credits Decrease Increase Boston 4.400 2,000 1,257,150 1,218,535 I 7,105 4,771 43,349 30,927 New York 18, 200 69,900 4,378, 573 4, 458,196 12,. 822 18,905 137, 406 280, 224 Philadelphia 7,500 1,077,427 1,073,617 7,604 12,105 25,476 Cleveland 4,000 2, 500 1, 006, 872 1, 032,852 10, 934 6,515 20, 061 72, 847 Kichmond- 10,000 6,500 984,378 906, 694 4,001 3,454 21, 731 5,730 Atlanta _ 10, 500 431,405 431,453 3,165 5,274 8,343 11,275 Chicago 6,000 6,900 1,816, 718 1, 786, 615 12, 750 10,490 31,463 119, 077 St. Louis 800 740,436 722,648 3, 562 4,543 16, 007 20, 603 Minneapolis 2,600 233, 863 223, 848 2,512 2,778 7,149 19,974 Kansas City 1,000 6,100 530,002 524,436 3,377 3,406 437 41,119 Dallas 10, 500 300 457, 827 464, 858 2,111 2,714 2, 566 22,055 San Francisco 27, 000 1,500 566, 678 577, 577 3, 568 3,852 14, 317 33, 759 Total five weeks ending- Jan. 23, 1929 _. 99,100 99,100 13, 481,329 13,481,329 73,511 73,511 157, 467 157,467 683, 066 Dec. 19, 1928 134, 200 134, 200 14,469,842 14, 469, 842 62,181 62,181 736,445 Jan. 25, 1928 22, 000 22,000 13, 536, 560 13, 536, 560 70, 397 70,397 636,955 Dec. 21, 1927 398, 800 398,800 12,934, 623 12, 934, 623 66,173 66,173 554, 359 i Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

168 FEDERAL RESERVE BULLETIN FEBRUARY, 19291 ALL MEMBER BANKS * BORROWINGS FROM FEDERAL RESERVE BANKS, BY STATES [End of month figures. In thousands of dollars] 1928 State Ja a n ry u- Fe a b r r y u- March April May June July August Sep b t e e r m- October No b v e e r m- De b c e e r m- United States. 581,503 423,310 492,568 598,681 834,228 1,021,352 1,095,423 1,030,9801,107,512 1,070,759 932,2711,087,840 1,056,466 New England: Maine 909 752 718 1,072 2,123 2,672 1,901 1,309 1,378 2,204 2,184 1,810 New Hampshire 805 1,112 1,305! 2,746 1,332| 2,334 2,584 1,340 1,675 1,738 1,502 1,446 1,802 Vermont 558 534 698 992 9341 1,029 1,711 1,358 1,204 937 980 794 1,356 M assachusetts 24, 314 33, 751 49,918 44,350 36,340; 69, 264 62,703 48,727 39,314 34, 270 19,144 58,729 53,583 Rhode Island 304 102 396 1,225 593! 5,918 4,291 8,310 8,923 6,113 7,907 P> Connecticut , 3,083 2,196 3,260 1,809 1,759 5,203 7,619 6,713 6,246 7,092 5,632 5,522 Middle Atlantic: New York 103,025 69,063 128,001 262, 280 328,125 415, 561 273,071 247,904 324,420 218,675 304,468 425,657 New Jersey 19,150 19,923 19,642 23,051 32,784 35, 636 44, 111 52,000 49,245 51,620 48,685 50,341 46,22a Pennsylvania 104,217 59,006 83, 277 80,029 82, 553j 103, 524 143,416 123,920 149,496 135, 274 104,113 112,818 113,477 East North Central: Ohio... 15,535 12, 783 34,405 33,392 28,779| 42,039 43,741 50,436 44,738 39,432 41,622 53,206 50,357 Indiana.. 3,115 3,587 6,209 4,825 5,491 4,361 5,191 8,940 9,992 10,128 6,282 7,047 Illinois.. 14,203 15,356 18,645! 66,447 63,3901 64, 288 74,320 77, 243 99,335 49' 009 88,353 96,613 72,417 Michigan. 27, 231 17,884 23, 093! 23,152 33, 599; 52,692 59,147 50, 501 42,281 47,418 46,584 45, 746 42,224 Wisconsin 6,658 2,735 12,932 16, 557 14,7811 13,837 15,555 12,528 17,025 17,161 21,020 18,906 21,912 West North Central: I Minnesota. __ 722 2,895 2,696 12.814J 8,371 11,674 17,550 12,391 12,479 14,094 3,122 Iowa 4,023 3,772 3,887 3, 599 4,015 1,547 2,927 2,833 4,618 6,835 9,487 6,696- Missouri 11,475 16,228 20, 277 24,168 20, 753: 45,216 43, 707 39,304 52,773 34,464 23,849; 29,146 20,273 North Dakota 319 472 369 543 575 734 688 1,050 1,475 972 395! 523 347 South Dakota... 6401 619 508 381 3911 421 511 558 547 436 414 587 445 Nebraska 4,7051 4,182 2,940 4,429 5,990| 4,992 2,32? 3,723 2,523 4,644 11,066 16,354 13,589 Kansas 1,246 1,199 1,061 1,052 1,452| 963 1,722 4,026 11,799 15,013 10,617 South Atlantic: Delaware 474 620 719 597 979| 1,977 3,063 1,283 1,431 1,295 1,494 1, 1,415 Maryland 5,498 11,744 5,315 3,747 9,547 11, 214 8,323 5,894 8,161 7,652! 6,775 13,727 7,802 District of Columbia 920 320 550 245 1,520 3,895 3,770 1,470 1,320! 2,121 2,447 4,471 Virginia 11,894 9,297 13,347 14, 257 i 15,394 19,755 20,703 22,832 20,4611 16,458 14,408 15,762 West Virginia. „ 5,363l 3,367 3,543 3,497 3,951 5,847 5,665 6,225 4,0521 5,386 4,186 4,702 North Carolina 1,998 4,738 7,449 10,043 10,105 12, 563 18,407 21, 614 18,310; 11, 738 8,065 6,286 South Carolina 1,425 2,172 3,471 4,358' 3,739 2,812 5,101 4,496 4,066 i 3,549 4,169 • 1,390 Georgia. 3, 582' 4,013 7,041 20,600| 23,114 14,191 i 22,523 19,306 20, 242 15,652 15, 528 6,776 Florida i 2,619 1,799 1,345 1,360 2,643 3,353 4,512 3,903 8,281 8,961 3,963 East South Central: j Kentucky j 6, 663 2,177 8,276 14, 597! 14,783 13,935; 15,242 19,175j 17,460| 17,468 16,855 16,044 Tennessee I 2,845 1,842 1,900 4,540; 4,378 5,444 7,349 9,1481 14,607j 8,039 5,736 6,378 Alabama j 2,411 4,641 6,412 10,412' 8,632 11,075; 13,879 19,0191 19,136! 19,330 15,874 11,288 Mississippi j 1, 239 1,225 3,456 4,1031 5,464 5,180; 5,846 6,814J 6,815 4,705 3,218 1,401 West South Central: j i Arkansas | 210 1,606 2, 5291 2,077 2, 680 4,973 7,5591 7,788 6,934 2,543 375 Louisiana i 16, 620 13', 853 9,014 13,889: 20, 703 15,688 21,788 28,9001 30,972 25,162 14,371 11,368- Oklahoma ..! 688. 1,325 2,287 3,656' 5,006 4,646 4,618 4,248 1,406 1,199 497 Texas - 848! 4,~" 3,991 9, 302; 9,938 8,192; 24,133 27,780 26,156 21,350 20, 616 10,918 Mountain: ] Montana 211 41 33 126| 250 231; 275 505 218 60 100 213 Idaho.. --- 161 199 2411 339j 405 554! 664 658 251 150 101 35 Wyoming 48: 48 2 103' 129 96 151| 212 222 139 35 7 Colorado 1,018 1,542 2,527 3,407i 3,773 1,305 2, 792 3,541 5,360 3,630 2,309 New Mexico --. 129 187 175| 77 178: 176 242 152 15 Arizona I 190 164 198 1841 180 187, 205 193 147 (>)uo L33 Utah - 168 255 860 2,163] 1,644 1,2781 1,657 1,912 897 1, 7181 13 Pacific: ! Washington. ; 330 1,543 1,566 3,5401 3,720 2,492i 6,104 5,079 2,011 7,506 6,043i 2,652 Oregon _J 393 958 2,203 3,463! 3,077 1,886! 1,890 1,948 1,763 1,849 1, 718! 1,615 California i 3,978 45,210 48,191 81, 553 66,068 9,8731 55,984 83, 6071 65,784 59, 767 70, 207 i 32,837 1 Figures given include borrowings by Federal intermediate credit banks as follows 1927 1928 ce D m e b - er Ja a n ry u- Fe a b ry ru- March April May June July g A u u s - t te S m ep b - er O b c e t r o- ve N m o b - er ce D m e b - er United States 2,273 723 57 252 572 107 412 962 2,826 6,136 11,700 11,872 12,641 Minnesota .. 1,846 1,627 1,298 683 500 Missouri 123 123 57 7 7 7 7 Nebraska. . . _ 745 481 1,318 1,378 1,672 1,642 Kansas 499 2,160 7,495 7,495 7,495 South Carolina 245 565 100 60 244 506 250 Louisiana 200 400 900 Washington 831 1,285 1,116 1,096 California 2,150 600 405 150 758. . * Less than $500. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

FEBRUARY, 1929 FEDERAL RESERVE BULLETIN 169 WEEKLY REPORTING MEMBER BANKS IN LEADING CITIES PRINCIPAL RESOURCES AND LIABILITIES, BY WEEKS [Revised series; see p. 96. In millions of dollars] Federal Reserve District Y N o ew r - k d P e h lp il h a i - a m Ri o c n h d - lanta Chicago Lo S u t. is K C an it s y as F c S i r s a a c n n o - Loans and investments: Jan. 2__ ..._.... 22,737 1,478 1,227 2,183 682 643 3,350 737 389 682 491 1,965 Jan. 9 _. 22,303 ,486 1,242 2,173 680 639 3,330 742 389 679 496 1,959 Jan. 16 _ 22, 266 ,499 8,395 1,240 2,184 678 I 637 3,334 739 392 688 505 1,976 Jan. 23 22,133 ,508 8,305 1,237 2,189 681 | 638 3,317 737 389 685 501 1,947 Jan. 30 22,175 ,504 8,378 1,231 2,189 681 I 642 3, 300 738 386 684 1,943 Loans: Jan. 2 16, 806 ,132 6,764 887 1,484 525 505 2,597 530 260 444' 362 1,315 Jan. 9_ _. 16, 332 ,125 6,314 900 1,476 522 503 2,581 534 260 443 361 1,312 Jan. 16 16,189 1,130 6,160 890 1,482 519 500 2, 581 533 261 449 367 1,316 Jan. 23 16,062 1,139 6,068 894 1,485 521 501 2,567 534 258 447 364 1,284 Jan. 30 ...- 16,122 1,136 6,141 1,491 521 507 2,551 536 255 447 364 1,285 On securities- Jan. 2 7,807 464 3,687 485 685 193 141 1,200 233 73 138 112 397 Jan. 9 _. 7,430 456 3,310 501 683 193 142 1,180 243 75 138 115 393 Jan. 16 7,452 457 3,269 496 681 196 143 ,188 246 79 146 125 427 Jan. 23 7,356 477 3,169 501 687 198 146 ,179 249 76 145 123 406 Jan. 30 7,438 479 3,226 497 201 157 ,170 255 77 147 125 408 All other- Jan. 2 _ 9,000 668 3,076 403 799 333 3(33 ,397 29C 188 307 251 918 Jan. 9 •._.* 8,902 670 3,004 399 794 329 mo ,401 291 185 304 246 919 Jan. 16— _ 8,737 673 2,891 395 801 323 ,393 288 182 303 242 889 Jan. 23 ._. 8,707 662 2,899 393 799 324 357 L.388 285 182 302 241 878 Jan. 30 657 2,915 392 794 320 355 1,381 282 177 299 239 877 Investments: 350 Jan. 2 5,931 346 2,145 339 157 138 753 208 128 238 129 650 Jan. 9 5,971 360 2,169 343 158 136 755 208 128 236 134 647 Jan. 16 _ 6,077 369 2,235 349 702 159 137 753 206 131 239 138 659 Jan. 23 6,071 2,238 343 703 159 137 750 203 131 238 136 663 Jan. 30. _ 6,053 2,236 342 160 135 749 202 131 237 135 659 United States Government securities- Jan. 2 3,006 141 1,194 105 326 359 83 115 90 Jan. 9 3,050 155 1,214 109 331 358 83 115 94 387 Jan. 16 _. 3,120 164 1,244 114 337 361 83 117 96 390 Jan. 23 3,116 165 1,245 109 335 358 83 117 94 396 Jan. 30 3,101 163 1,238 107 334 360 85 114 93 393 All other- Jan. 2 2,925 205 951 234 373 394 125 123 39 j Jan. 9 2,921 206 956 234 366 397 124 121 40 ! 261 Jan. 16 _ 2,957 205 991 235 365 392 123 123 41 i 269 Jan. 23 2,954 204 992 234 368 87 68 392 120 122 42 267 Jan. 30 2,952 205 234 364 389 117 123 42 265 Reserve with Federal reserve bank: Jan. 2 1,859 102 906 81 129 42 42 269 50 118 Jan. 9 1,765 100 818 129 43 41 263 50 37 116 Jan. 16 _. 1,771 101 820 131 42 42 268 48 36 117 Jan. 23 1,730 100 790 81 128 41 41 264 49 38 113 Jan. 30 1,759 99 832 78 126 42 40 259 48 37 114 Cash in vault: Jan. 2 292 21 82 17 34 14 14 48 10 13 10 24 Jan. 9 - 271 20 74 16 33 12 12 44 8 12 9 23 Jan. 16 242 18 67 15 29 12 10 40 7 11 8 21 Jan. 23 244 18 67 15 31 12 10 38 6 11 8 20 Jan. 30 _ 244 17 15 30 11 10 39 7 11 ! 21 Net demand deposits: i Jan. 2 13,983 742 1,039 373 341 1,929 421 224 512 316 Jan. 9 _ 13,608 937 5,992 757 1,036 371 337 1,888 418 226 509 ! 323 813 Jan. 16 13, 611 950 754 1,043 335 1,875 417 221 514 323 825 J J a a n n . . 3 23 0 _ 1 13 3 , , 3 3 6 9 6 5 9 91 2 9 4 5 5 , ,9 8 1 6 8 9 7 7 3 4 4 0 1 1 , , 0 0 4 4 7 4 372 3 33 3 1 2 1 1, , 8 8 3 3 3 9 4 40 1 8 5 - 2 2 1 1 7 8 5 51 1 4 3 I i 3 31 1 3 9 7 7 8 8 7 5 Time deposits: Jan. 2 6,912 475 1,758 295 957 240 240 1,260 235 140 177 1 142 994 Jan. 9 6,896 476 1,736 292 954 240 233 1,276 241 141 178 I 140 990 J J J a a a n n n . . . 3 2 1 0 3 6 6 6 , ,8 8 8 8 5 5 4 4 4 7 7 7 6 8 7 1 1 1 , , , 7 7 7 2 1 4 0 7 0 2 2 2 9 9 9 6 4 4 9 9 5 5 7 8 2 2 2 4 4 4 1 1 1 2 2 2 3 3 3 0 0 1 1 1 1 , , , 2 2 2 7 6 7 4 4 7 2 2 2 4 4 3 1 1 9 1 1 1 4 4 4 1 1 0 1 1 1 7 7 7 9 9 9 i 1 1 1 3 3 4 9 9 3 9 9 9 9 9 8 5 0 6 Government deposits: Jan. 2 167 50 10 10 4 1 2 15 41 Jan. 9 111 33 7 7 3 1 2 27 Jan. 16 90 27 5 5 2 22 Jan. 23 83 25 5 5 2 8 ! 21 Jan. 30 84 25 5 5 2 21 31379—29 6 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

170 FEDERAL RESERVE BULLETIN FEBRUARY, 1929 WEEKLY REPORTING MEMBER BANKS IN LEADING CITIES—Continued PRINCIPAL RESOURCES AND LIABILITIES BY WEEKS—Continued [Revised series; see p. 96. In millions of dollars] Federal Reserve District Total Boston Y N o e r w k d P e h lp il h a i - a ; C l l a e n v d e- Chicago L S ou t. is Dallas Due from banks: Jan. 2 1 381 70 200 119 61 89 276 60 136 71 157 Jan. 9 -. . 1,190 55 159 97 49 : 86 227 56 125 67 154 Jan. 16 . . 1, 221 53 160 104 90 232 59 135 69 155 Jan. 23_ 1 170 48 148 104 85 226 62 127 00 139 Jan. 30 1,121 48 142 ; 107 51. j SO 212 57 115 65 140 Due to banks: Jan 2 3, 418 134 1,270 ' 204 229 no! 129 511 149 234 128 216 Jan. 9 3,099 122 1,077 | 183 i 218 J10 I 128 482 149 223 118 196 Jan. 16.. _. 3,026 120 1,037 ! 172 224 105 I 124 459 148 224 115 212 Jan. 23 2,962 m 1,026 167 225 104 I 120 451 140 220 112 191 Jan. 30 _ 2,864 946 165 : 218 105 I 116 451 146 219 110 196 Borrowings from Federal reserve 110 bank: Jan 2 930 455 48 ! 30 144 27 39 Jan. 9 055 247 41 ! 22 95 23 51 Jan 16 598 184 39 : 20 116 22 45 Jan. 23 554 119 35 I 20 123 28 44 Jan. 30 _ 580 170 35 ; 20 106 21 44 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

171 FEBRUARY, 1929 FEDERAL RESERVE BULLETIN LAND BANKS AND INTERMEDIATE CREDIT BANKS LOANS OF FEDERAL AND JOINT-STOCK LAND BANKS LOANS OF INTERMEDIATE CREDIT BANKS [In thousands of dollars] [In thousands of dollars] Net amount of loans outstanding 1928 1927 Date Class of loan Total la F nd e d b e a ra n l ks l J a o n i d n t b -s a t n o k ck s1 De 3 c 1 . No 3 v 0 . Oc 3 t 1 . Se 3 p 0 t. De 3 c 1 . (12 banks) 1927 Direct loans outstanding Jan. 31 1,724,821 1,085,170 639, 651 on- A M F M e p a a b r y r . . . 3 2 3 3 0 8 1 1 1 1 1 1 , , , , 7 7 7 7 4 4 6 3 5 1 5 2 , , , , 4 2 3 3 0 7 6 9 4 5 5 5 1 1 1 1 , , , , 1 1 1 0 2 0 1 97 4 9 7 , , , , 3 9 0 6 5 1 5 4 4 4 5 2 6 6 6 6 4 1 5 1 7 4 6 7 , , , . 0 2 7 4 1 2 8 6 1 0 1 2 T W C C o a o h b n t e a t n o a c e t n c d o . fruits and vege- 2 2 3 1, , , 5 4 1 6 0 8 5 0 3 19 2 1 , , , 6 5 5 7 4 1 6 9 9 i I ! 1 2 1 6 , , , 6 7 5 8 1 6 4 7 8 4 2 1 , , , 1 1 9 7 2 5 2 3 5 1 4 2 4 , , , 2 9 5 4 9 3 4 9 7 J J A S O N u u e u c o l n p t g y v . e t . . . 3 3 3 3 3 3 1 1 0 1 0 0 _ I I ! 1 1 1 1 1 1 , , , , , , 7 7 7 7 7 7 3 4 4 5 5 5 8 2 9 8 7 2 , , , , , , 1 3 5 8 1 6 6 9 7 3 8 6 5 3 5 4 5 5 1 1 1 1 1 1 , , , , , , 1 1 1 1 1 1 3 3 3 5 4 4 0 9 4 0 3 7 , , , , , , 1 1 6 8 5 9 3 3 4 9 0 4 0 5 8 6 2 3 6 6 6 6 6 6 0 0 0 1 0 0 7 9 7 0 9 7 , , , , , , 8 6 5 8 0 5 9 7 9 1 5 3 1 9 1 7 0 5 R A W Ri l a t c o l a i o e s b o i l l t n e h s s e . r . 4 2 1 , , ,3 1 6 3 5 6 1 7 0 6 0 8 9 5 4 | 4 2 1 , , , 3 3 6 2 6 9 7 6 5 9 7 0 3 9 6 4 2 , , 6 7 6 2 7 6 2 0 5 2 9 5 0 7 3 2 5 , , 9 9 4 0 1 4 8 3 1 0 6 5 3 9 8 5 1 1, , , 8 4 1 8 9 1 1 4 9 5 1 5 2 3 0 Dec. 31 ! 1,765,121 1,155, 644 609, 477 Total.. 36,174 I 33,129 ! 29,943 17, 741 31,991 1928 Jan. 31 1,767,515 1,158, 717 608, 798 Rediscounts outstanding Feb. 29 1,778,338 1,168, 354 609, 984 for— Mar. 31 i 1, 786, 862 1,175,858 611,004 Agricultural credit cor- Apr. 30 i 1,791,341 1,180, 420 610,921 porations 20,991 ! 23,745 27,112 30,461 22, 520 J M u a n y e 3 3 0 1 1 1 , , 1 1 8 8 3 4 , , 6 6 5 7 6 2 6 6 0 0 9 9 , , 3 5 6 8 3 0 N St a a t t i e o n b a a l n k ba s nks 50 19 3 5 3 3 7 July 31 1,185,714 607, 896 Livestock loan compa- 188 192 305 161 Aug. 31 1,187,365 609, 226 nies 21, 482 Sept. 30 1.189, 345 608, 451 Savings banks and trust 23,784 19,198 19, 992 21, 220 Oct. 31 1.190, 278 607, 632 companies.. __ 131 Nov. 30 1.191, 724 605, 595 90 99 117 16 Dec. 31 1,193, 846 605,199 Total.. 45,103 ! 45,556 46, 604 50, 878 43, 924 1 Number of banks, 1927: January-March, 55; April-May, 54; June- August, 53; September-November, 52; December, 51. 1928: January- April, 51; May-November, 50; December, 49. PAR COLLECTION SYSTEM BANK DEBITS MEMBERSHIP, BY FEDERAL RESERVE DISTRICTS DEBITS TO INDIVIDUAL ACCOUNTS, BY FEDERAL RESERVE DISTRICTS [Number of banks end of December] [In thousands of dollars] Nonmember banks Num- I Member ber of December, November, December, cen- 1928 1928 1927 Federal reserve banks On par list Not on par list* ters district New York City 1 52, 727,136 45,469, 235 38,938,261 1928 1927 1928 1927 1928 1927 Outside New York City 141 29, 659,008 25,879, 883 26,502,520 Fede B r o a s l t r o e n serve district: 3,157,853 2,950,274 3,215,624 United States 8,844 9,034 12,643 13,247 3,911 3,910 A N P C R h l i e t e c l i w a v l h a n e m d Y l t a e a o n o l n p d r d k h , ia 53 3 3 1 , , , , 8 3 0 8 3 0 3 7 6 5 5 5 5 2 0 , , , , , 4 5 2 6 2 6 3 1 3 7 6 4 9 1 7 46 2 2 1 , , , , 4 2 7 7 6 3 0 3 5 5 7 5 7 7 8 , , , , , 1 0 9 6 7 3 4 9 3 3 5 0 1 5 0 39 2 2 1 , , , , 2 5 8 8 9 6 9 6 8 4 9 6 6 8 4 , , , , , 6 1 7 9 0 6 7 9 1 0 6 8 6 6 5 B N P C h o l e e i s w l v t a o e d Y l n a e o n lp r d k hia 4 8 9 7 1 0 3 7 7 8 8 8 4 9 8 7 3 3 1 7 5 7 3 7 1,0 4 4 2 0 1 9 5 7 0 3 1 1,0 4 2 5 2 1 0 4 7 1 1 8 9 10 Chicago 7,829, 706 6,612,726 6,516,965 Richmond 547 564 627 657 572 587 St. Louis 1.523, 407 1,295, 503 1,400,516 Atlanta 453 464 315 312 959 1,016 Minneapolis- 839,418 839,350 777,042 Chicago . 1, 253 1,290 3,570 3,695 213 190 D K Sa a a n l n l s a F a s r s a n C c i i t s y c o -- 4 1, , 4 8 2 8 7 4 8 0 8 , , , 2 3 0 7 2 2 5 9 9 3 1 , , 3 7 7 1 7 5 9 6 8 , , , 6 4 6 2 7 3 7 2 5 * 3 1 , ,4 7 7 0 8 8 1 3 0 , , , 0 6 3 6 8 3 2 0 1 D M K St a a . i l n n L l n s a o a e s s u a i p C s o i l t i y s 5 9 7 7 3 1 8 8 4 9 8 1 5 7 9 7 9 3 6 9 4 5 8 9 2 1, , 7 2 6 6 5 3 2 7 7 4 6 2 2 1 , ,8 3 6 7 9 6 6 6 1 9 7 1 1,1 4 2 2 2 9 0 8 3 0 8 2 1,1 4 2 2 3 5 5 0 7 6 2 4 Total 141 82,386,144 71,349,118 *65, 440,781 San Francisco... 628 658 681 708 55 58 : Revised. i Incorporated banks other than mutual savings banks. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

EARNINGS AND EXPENSES OF FEDERAL RESERVE BANK DURING 1928 EARNINGS Total i Boston New York d P e h lp il h a i - a Cleveland Richmond Atlanta Chicago St. Louis M ap in o n li e s - K C an it s y as Dallas San c is F c r o an- Discounted bills — $38,334.140 !$2,465, 266 $12, 210, 527$3, 498,453 $3, 438, 719 $1,943,947 $2, 529,951 $5,427,825 $1,928,302 $490, 751$1,034,216 $669, 514 $2, 696, 669 Purchased bills 13,020, 535 ! 1,486,467 3,482,649 932,744 1, 249, 560 685,830 687,533 1,301,910 206, 700 609, 535 521,901 680,664 1,175,042 United States securities. __ 10,827, 702 454,142 2,421,172 914,403 1, 393, 522 166, 544 245, 502 1,722,821 725,490 512,433 778,027 685, 693 807,953 Deficient reserve penalties 277,401 12, 791 46,009 7,468 28,838 36, 496 32,996 44, 287 15, 023 7,763 15, 232 13,837 16,661 Miscellaneous. 1, 593,082 \ 46,676 322,685 41,478 139,914 24, 831 82,174 439, 575 26, 410 89,822 248, 592 69,958 60,967 Total earnings.- 64,052,860 ! 4,465,342 18,483,042 5, 394, 546 6, 250, 553 2,857, 648 3,578,156 8, 936, 418 2, 901, 925 1, 710, 304 2, 597, 968 2,119,666 4, 757,292 CURRENT EXPENSES i Salaries: Bank officers 2,554,649 i 120,000 531,920 138,916 215, 800 176,500 207,183 307,419 168,215 117, 503 169,900 155, 299 245,994 Clerical staff 11,786,262 ! 869,837 3,115,314 901,090 1, 060,447 592,268 405, 562 1,712, 899 558, 968 350,452 621, 265 520, 235 1,077,925 Special officers and watchmen _ 870,712 j 35,745 i 187,333 49,293 104.232 55,675 36, 511 129, 351 47,812 29,962 66,840 42,732 85,226 Allother 1, 848,181 ! 94,104 ! 481, 534 93, 669 254, 012 84,098 37, 656 275, 378 83, 202 65, 636 173,036 75, 508 130, 348 Governors' conferences 6,392 j 212 1 694 230 400 243 398 344 400 687 644 682 ! 1,458 Federal reserve agents' conferences _ 3,538 ; 207 I 210 204 206 | 187 i 67 269 430 587 278 295 I 598 Federal Advisory Council 14,078 ! 676 ! 706 533 792 j 832 . 1,089 1,054 1,300 1,150 1,300 1,346 3,300 Directors'meetings _ 150,617 I 6.983 i 18, 605 7,094 7,450 [ 8,128 ! 22,651 9,797 14. 003 6,793 25,076 8,547 | 15,490 Traveling expenses1 222,178 , 4, 860 ! 33,023 14,705 19.148 15,970 : 19, 368 23, 687 21, 849 20,146 10, 970 17,367 : 21, 085 Assessments for Federal Reserve Board's * expenses _ __ 697, 677 51,885 199,975 66,695 ' 71,837 34,939 28, 590 95,764 29, 622 18,931 24,961 24,138 j 50,340 i Legal fees _ _ 108,745 ,. 1,981 10, 620 4,960 | 6,584 1,946; 11,323 3,444 2,187 27,839 7,600 16,397 ! 13, 864 Insurance (other than currency and se- I 1 curity shipments) 413,432 11 28, 789 70,180 ! 35,428 ! 34,818 | 21,093; 24,374 31, 603 23,748 30,899 ! 39,433 27,548 ! 45,513 Insurance on currency and security ' shipments,. _ i 612,459 i 84,354 | 119,751 I 91,508 70,981 34,934 35, 600 67,496 14,132 14,163 i 18,400 21,877 i 39, 263 Taxes on banking house 1,426,929 i 122,220 I 403,230 j 40,640 130,922 38, 370 61,045 281, 601 58,309 86,306 93, 648 34,059 I 76,579 Light, heat, and power ! 328,050 i 20,299 | 72,999 I 20, 513 34,867 10,388 15,182 35,136 18,713 17,370 j 44,785 i 19,785 i 18,013 d Repairs and alterations, banking house._i 193,329 : 6,856 ! 26,828 I 44,529 , 30,455 2,038 18,891 21,373 9,363 7,656 , 10,664 j 10,144 ! 4,532 Rent __ j 264,303 ! 480 21,291 1,420 I 92, 863 19,943 6,120 5,134 19,337 90 ; 8,841 i 88, 789 Office and other supplies j 404,965 I 22, 354 90,587 i 30,632 ] 37, 648 19,431 21, 659 61,235 20,021 19,403 ! "28," 777"! 17,211 ! 36,007 Printing and stationery _j 457,648 ! 40,995 77,456 j 32,620 I 41,975 26, 649 30,321 76, 749 27, 678 19,370 j 22,626 I 22,622 | 38, 584 Telephone | 202,593 ; 20, 649 58,950 ; 26,179 ! 14,708 7,019 6,243 20,638 12,296 5,120 i 7,639 ! 8,153 i 14,997 Telegraph _ 484,788 ; 6,041 50,662 ! 13,416 33,204 34,825 64,419 41, 758 38, 818 17,817 | 60,001 52, 269 71, 558 Postage _ 1,860,311 j 211, 423 306,755 I 177,196 159, 525 125,174 99,074 243, 679 90, 722 63,880 1 148, 795 140,879 Expressage 457,085 40, 549 117,172 I 66,665 33,547 32, 082 36, 918 55, 671 13,976 13,889 16,162 22,055 Miscellaneous expenses 729,989 ! 39, 565 196,586 I 51,382 53,150 31,088 35,621 82,894 37,852 47,814 ] 45, 647 41, 536 66,854 * Total, exclusive of cost of currency. 26, 098, 910 1,831,064 1,192,387 j 1,909,517 2, 509, 571 1,373,820 I 1,225,865 3, 584,373 1,312,953 977,973 j 1,636,174 1,235,962 2,309, 251 Federal reserve currency, including shipping charges: Original cost 678, 721 221,701 ! 64, 720 74,826 23,376 19,914 90, 615 19,051 20,992 20, 577 5,855 90,234 Cost of redemption 127,179 12,079 30,177 ! 12,005 12,417 5,196 7,355 21, 691 4,790 1,509 5,229 . 3,662 11,069 Total current expenses 26,904,810 I! 1,870,003 j 6,444,265 \ 1,986,242 I 2,596,814 1,402,392 1, 253,134 3, 696,679 1,336, 794 1,000,474 1,661,980 1,245, 479 2,410,554 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

PROFIT AND LOSS ACCOUNT Earnings $64,052,860 $4,465,342 $18,483,042 $5,394,546 $6, 250, 553 $2,857,648 $3, 578,156 $8,936, 418 $2, 901, 925 $1, 710,304 $2, 597,968 $2,119, 666 $4, 757, 292 Current expenses 26,904,810 1,870,003 6,444, 265 1, 986,242 2, 596, 814 1,402, 392 1, 253,134 3, 696, 679 1, 336, 794 1,000, 474 1, 661, 980 1, 245,479 2, 410, 554 Current net earnings 37,148,050 2, 595,339 12, 038, 777 3,408,304 3, 653, 739 1,455, 256 2,325,022 5, 239, 739 1, 565,131 709, 830 935,988 874,187 2,346, 738 Additions to current Det earnings: Withdrawn from reserve for probable losses _ _ _ 375,065 86, 065 289,000 Allother ___ 196,412 2,532 97,169 1,481 3,193 1,057 5,462 11, 833 3,957 42,879 17,996 5,491 3,362 Total additions 571,477 2,532 97,169 1,481 3,193 1,057 5,462 11,833 90,022 331,879 17,996 5,491 3,362 Deductions from current net earnings: B ank premises—depreciation 1,959, 289 122,048 545, 545 273, 532 129,151 85, 673 192,810 166, 745 91,982 168,188 42,551 141,064 Furniture and equipment 638,840 43,101 142, 768 38,873 56,027 64,597 49, 980 68,872 51, 596 32,026 22,889 51,992 16,119 Reserve for probable losses 580, 766 50,000 403,018 23, 658 104,090 Reserve for self-insurance 627,973 58 706 19 267 50 000 250, 000 250, 000 Allother 21, 790, 638 116,200 370,494 88, 271 127,391 43, 605 97,828 202, 803 401, 653 52, 997 103,147 71,680 114, 569 Total deductions 5, 597, 506 281,349 1,117, 513 127,144 476,217 337,353 636,499 488,143 869,994 427,005 294,224 166,223 375,842 Net deductions from current net earnings _ 5, 026, 029 278,817 1,020,344 125,663 473,024 336,296 631,037 476,310 779, 972 95,126 276,228 160, 732 372, 480 Net earnings available for dividends, surplus, and franchise tax _ 32,122,021 2,316, 522 11, 018,433 3, 282,641 3,180, 715 1,118,960 1, 693,985 4, 763,429 785,159 614, 704 659, 760 713,455 1,974, 258 Dividends paid . .. 8,458,463 590,830 2, 743,725 843,755 856,843 370, 683 312, 259 1,099, 761 321,855 181, 203 253, 254 258, 544 625,751 Transferred to surplus account _. 21,078,899 1, 725,692 8, 274, 708 2,438,886 2,323,872 74,828 558,425 3,663, 668 423,011 43,350 40,651 163,301 1,348,507 Franchise tax paid United States Gov- B ernment 2, 584, 659 673,449 823,301 40,293 390,151 365,855 291, 610 1 REIMBURSABLE EXPENDITURES OF FISCAL AGENCY DEPARTMENT Salaries $242, 727 $6, 796 $12,112 $9,960 $16,345 $11, 992 $5, 289 $81,152 $10,201 $13, 640 $56,180 $8,657 $10, 403 Allother 128,535 2,012 76, 697 2,360 5,827 3,308 2,321 16,507 3,580 6,212 4,528 1,797 3,386 d Total 371, 262 8,808 88,809 12,320 22,172 15,300 7,610 97,659 13, 781 19, 852 60, 708 10,454 13,789 1 Other than those connected with governors' and agents' conferences and of the advisory council. 2 Includes net loss of $1,594,749 on United States securities sold. 5 CO Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

FEDERAL RESERVE DISTRICTS b "£;r-H 2" ft" Denver, 'Oj k.. DALLAS® n TEXAS — BOUNDARIES OF FEDERAL RESERVE DISTRICTS .——BOUNDARIES OF FEDERAL RESERVE. BRANCH TERRITORIES ® FEDERAL RESERVE BANK CITIES • FEDERAL RESERVE BRANCH CITIES O FEDERAL RESERVE BANK AGENCY O Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis