Federal Reserve Bulletin, 1929-07

FEDERAL RESERVE BULLETIN JULY, 1929 ISSUED BY THE FEDERAL RESERVE BOARD AT WASHINGTON Factors of Change in Reserve Bank Credit Condition of All Banks in the United States Experts9 Report on Reparations 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: ROT A. YOUNG, Governor. A. W. MELLON, EDMUND PUTT, 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 WTATT, General Counsel. J. C. NOELL, Assistant Secretary. E. A. GOLDENWEISER, Director, Division of Research E. M. MCCLELLAND, Assistant Secretary. and Statistics. W. M. IMLAT, Fiscal Agent. CARL E. PARRY, Assistant Director, Division of Re~ J. F. HERSON, 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) 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, Vice President. District No. 12 (SAN FRANCISCO) F. L. LIPMAN. WALTER LICHTENSTEIN, Secretary n Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

OFFICERS OF FEDERAL RESERVE BANKS Federal Reserve Bank of— Chairman Governor Deputy governer Cashier Boston Frederic H. Curtiss. W. P. G. Harding.. W. W. Paddock W. Willett. G. W. McGarrah... Geo. L. Harrison... J. H. Case J. W. Jones.* New York.. L. F. Sailer Ray M. Gidney.1 E. R. KeDzel J. E. Crane.* A. W. Gilbart W. B. Matteson.i L. R. Rounds C.H. Coe.i Philadelphia- R. L. Austin Geo. W. Norris... Win. H. Hutt C. A. Mcllhenny. W G. McCreedy.» 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. Waldenjr.i Atlanta Oscar Newton Y _ Eugene R. Black.. H Cr u e g e h d F T o a s y t l e o r r _. M. W. Bell. Chicago Wm. A. Heath J. B. McDougal— C. R. McKay- W. C. Bachman.' John H. Blair K. C. Childs.a J. H. Dillard.* D. A. Jones.1 0. J. Netterstrom.> St. Louis Rolla Wells Wm. McC. Martin CM. Attebery. A. H. Haill.» F. N. Hall.* S. F. Gilmore.* G. O. Hollocher.* C. A. Schacht.3 Minneapolis.._ John R. Mitchell W. B. Geery Harry Yaeger Gray Warren. H. I. Ziemer Frank C. Dunlop.1 Kansas City... M. L. McClure... W. J. Bailey C. A. Worthington.. J. W. Helm. Dallas C. C.Walsh Lynn P. Talley R. R. Gilbert Fred Harris. R. B. Coleman W. D. Gentry A San Francisco. Isaac B. Newton. Jno. U. Calkins.... Wm. A. Day Wm. M. Hale. Ira Clerk 1 Assistant deputy governor. * 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 R. M. O'Hara. 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: Oklahoma City branch C. E. Daniel. Baltimore branch A. H. Dudley. Dallas: Charlotte branch Hugh Leach. El Paso branch.. W. 0. Ford. Atlanta: Houston branch D. P. Reordan. New Orleans branch Marcus Walker. San Antoni© branch M. Crump. Jacksonville branch W. S. McLarin, jr. San Francisco: Birmingham branch A. E. Walker. Los Angeles branch W. N. Ambrose Nashville branch J. B. Fort, jr. Portland branch R. B. Weet. Chicago: Salt Lake City branch W. L. Partner. Detroit branch W. R. Cation. Seattle branch C. R. Shaw. St. Louis: Spokane branch D. L. Davis. Louisville branch W. P. Kincheloe. Memphis branch W. H. Glasgow. Little Rock branch A. F. Bailey. SUBSCRIPTION PRICE OF BULLETIN THE FEDERAL RESERVE BULLETIN is the board's medium of communication with member banks of the Federal reserve system and is the only official organ or periodical publication of the board. The BULLETIN will be sent to all member banks without charge. To others the subscription price, which covers the cost of paper and printing, is $2. Single copies will be sold at 20 cents. Outside of the United States, Canada, Mexico, and the insular possessions, $2.60; single copies, 25 cents. in Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

TABLE OF CONTENTS Page Review of the month—-Factors of change in reserve bank credit „ 427 Current banking development—Fundamental credit factors—Changes for the year—Unexpended capital funds—Decrease in currency demand—Credit factors, 1922-1927—Summary. Reserve bank credit—Factors in changes (Tables I—III) 432-438 Reserve bank credit outstanding—Yearly averages 438 Balance of international payments of the United States 442 Statistical work of the Federal Reserve Board and banks in 1928-29 439 Experts' report on reparations: Summary—Text of report 458-495 Condition of all banks in the United States 431, 521-524 Annual report of the National Bank of the Kingdom of Serbs, Croats, and Slovenes 496 National summary of business conditions 444 Financial, industrial, and commercial statistics: Reserve bank credit, gold stock, money in circulation, and member bank reserve balances 445-447 Analysis of changes in monetary gold stock 446 Discount rates and money rates 448, 449 Member bank credit 450 Bankers' balances 451 Bankers' acceptances and commercial paper outstanding 451 Brokers' loans 451 Commodity prices, security prices, and security issues 452 Production, employment, and trade 453 Industrial production 454 Factory employment and pay rolls 455 Building 456 Trade and distribution 457 Bank suspensions 520 Financial statistics for foreign countries: Gold holdings of central banks and Governments 499 Gold exports and imports 499 Condition of central banks 500 Condition of commercial banks _ _ 502 : Discount rates of central banks 502 Money rates 503 Foreign exchange rates 504 Price movements 505-507 Law department: Discretion of Federal Reserve Board in approving the organization of foreign banking corporations.. 508 Changes in National and State bank membership 510 Fiduciary powers granted to national banks 511 Detailed banking statistics for the United States 512-520 IV Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

FEDERAL RESERVE BULLETIN VOL. 15 JULY, 1929 No. 7 REVIEW OF THE MONTH narily not of great magnitude. A full state- Member bank credit outstanding increased ment of all the factors for the period since 1918 during June and the early part of July. Total is, however, presented elsewhere in this BULLEloans and investments of re- TIN, together with an explanation of the derivation of the figures and of the way in which P°rtins member banks inlead~ changes in each item are related to the outing cities increased $430,000,000 standing volume of reserve bank credit. from the end of May to the second week in During the past year, comparing averages July; loans on securities increased by $600,for the month of June, there has been a de- 000,000 and all other loans by about $100,crease of $214,000,000 in the 000,000, while the banks' investments showed *" volume of reserve bank credit a further decline of $270,000,000. At the reoutstanding. The principal serve banks there was also an increase in the single factor, as usual in the past decade, has volume of outstanding credit, reflecting chiefly been a change in the monetary gold stock, the demand for currency in connection with which shows an increase of $192,000,000 for the July 4 holiday and the issuance on July 10 the year. This increase, which followed upon of the new small-size currency. The increase an outflow of gold of about $500,000,000 during in money in circulation was offset in part by a the preceding 12 months, has reflected in part further increase in the country's stock of monethe effect of high-money rates in this country. tary gold amounting to $27,000,000 between The incoming gold, by increasing the reserve the beginning of June and the middle of July. funds at the disposal of member banks, dimin- It has been customary for some years to ished the demand for reserve bank credit. present in the July BULLETIN a statistical There was, in addition, a decrease of $49,000,000 summary of banking developin money in circulation and of $41,000,000 in ™^s for the Preceding year. member bank reserve balances, both of which In following this custom this tended correspondingly to decrease the demand year, it is proposed to discuss the developfor reserve bank credit. The only considerable ments of the year, with comparisons for earlier factor tending to increase the volume of reserve 3^ears, primarily in terms of those factors in bank credit was a growth of $54,000,000 in monetary and banking conditions which are unexpended capital funds of the reserve banks. reflected in changes in the condition of the re- This factor is not usually of so great importance serve banks. Banking and credit developas changes in money in circulation or member ments throughout the country have a counterbank reserve balances. During the past year, part under our system in changes in the conhowever, it has been larger than the reduction dition of the reserve banks. This follows necesin member bank reserve balances or the desarily from the fact that practically every crease of money in circulation. banking change reflects or is reflected by Unexpended capital funds of the reserve changes in the volume of money in circulation, banks, in the final analysis, represent for any of bank deposits, or of gold stock, and any given period the excess of changes in these fundamental factors in the money taken in ^ the reSerVS banking situation are currently reflected in caStal banks through earnings and the condition of the Federal reserve banks. There are several other factors of change that through payments for reserve bank stock over are at times of consequence, but these are ordi- their expenditures for the same period. When 427 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

428 FEDERAL RESERVE BULLETIN JULY, 1929 a member bank pays for stock in the reserve law provides that all net earnings of each rebank, this tends correspondingly to diminish serve bank above the 6 per cent dividend be its reserve balances and consequently to in- turned over to its surplus until such time as crease its demand for reserve bank credit. ihis surplus reaches 100 per cent of the sub- Similarly, the discount on bills and the interest scribed capital of the reserve bank. An inon Government securities held by the reserve crease in the paid-up capital of a reserve bank, banks are charges on member bank reserve therefore, authorizes the bank to add twice that balances and add to the demand for reserve amount to its surplus, and it is because of the bank credit. As against funds withdrawn by large addition to surplus that the reserve banks the reserve banks through the sale of stock and have returned only a small part of their net through earnings, the banks return to the mar- earnings for the year 1928 to the market ket, and ultimately to. member bank reserve through the payment of a franchise tax. balances, the funds that they disburse either An offsetting factor against the effect of the in payment for current expenses, in dividends, growth of reserve bank capital and surplus in or in such capital expenditures as are involved increasing the demand for reserve bank credit in the erection of buildings. When the re- is in the effect of capital subscriptions upon serve banks pay a franchise tax to the Govern- member bank reserve requirements. Subment, this amount also is returned to the scriptions to member-bank capital are paid out market, because the Government either dis- of bank deposits, and the decrease in these burses the proceeds or keeps them on deposit deposits results in a decrease of member bank with commercial banks to be used by them in reserve requirements. During the past year their own operations. It is only in the amount the transfer of customer deposit credit to memthat the money taken in by the reserve banks ber bank capital account has been a factor in exceeds their expenditures and their tax pay- the decrease of $41,000,000 in member bank ments that a net charge against member bank reserve balances during the year. reserve balances results, with a consequent in- To summarize the factors of change in recrease in the demand for reserve bank credit. serve bank credit during the year ending in The unusual growth in unexpended capital June, 1929, the principal development has been funds during the past year represents, in addi- a decrease in reserve bank credit, due largely to tion to increased earnings of the reserve banks an inward movement of gold, but also to a arising from increase in the volume of reserve decline both in currency and in bank deposits, bank credit outstanding and advances in the offset in part by a considerable net growth in average rate of earnings, an unusually large unexpended capital funds of the reserve banks. increase in the capital and surplus of member The decrease in the volume of money in banks. In accordance with the law, member circulation, an important factor in the reducbanks are obliged to subscribe to Federal tion since last year in the volreserve bank stock 6 per cent of their capital : ™ie of reserve bank credit, and surplus, and one-half of this subscription, has been a factor in the same or 3 per cent of the capital and surplus, must direction for the last three years. In order to be paid in. The increase of about $600,000,000 bring out more clearly the recent trend in the in member bank capital and surplus during demand for currency a chart has been prepared the year has consequently occasioned an in- in which the course of money in circulation since crease of $18,000,000 in the capital stock of 1922 is shown, after eliminating changes that the Federal reserve banks. The growth of are attributable entirely to seasonal influences. paid-in capital has the further effect, under The chart shows that the volume of money in the law, of increasing the reserve banks' circulation increased rapidly from the middle of transfers to surplus and consequently of di- 1922 to the middle of 1923. This increase was minishing their franchise-tax payments. The due to a recovery of domestic business and a Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

JULY, 1929 FEDERAL RESERVE BULLETIN 429 rise in prices which occurred during that period are not available, however, and it is not possible and which were reflected in an additional de- definitely to verify this supposition. There mand for currency. There was also a demand may also have been some return flow of curfor currency from abroad, caused by the disor- rency from Cuba, where American money is ganization of European currencies and the loss legal tender, and where economic conditions of confidence in them by the public, with the have not been favorable. It would seem, consequence that currencies of stable value, of therefore, that at least in part the recent which American currency was the principal one, decline in currency has represented a return were in demand in Europe for reserves, for flow from foreign countries, which have hoards, and to some extent for general circula- effected monetary reforms, of American curtion. After some additional increase in the early rency which they obtained in 1922-23 when part of 1924, there was a sharp decline in cur- their monetary conditions were disorganized. rency, coincident with some recession in domes- Changes for the past year in the volume of tic business and to a return flow of currency reserve bank credit and in the factors accountfrom Germany after stabilization of the mark. ins: for these changes may be f^ A'4- -f 4- MJ1XI0NS OF DOLLARS MILLIONS OF DOLLARS 1922-1927. °rS: compared with developments 5500 ]5500 MONEY M CIRCULATION for the preceding six years. The ( Seasonal variations eliminated ) following table shows by daily averages for the month of June changes in reserve bank credit 5000 and in all the factors of change, for the years 1922-1929. A chart is also presented showing the course of the principal factors for the same ^500 4500 period. FACTORS IN CHANGES IN VOLUME OF RESERVE BANK CREDIT 4000 1922 1923 1924 1925 1926 1927 1928 1929 [Monthly averages of daily figures. In millions of dollars] Based on monthly averages of daily figures From 1924 to the middle of 1926 there appeared F d a e c c t r o e r a s s o e f Factors of increase to be a moderate year-to-year growth in money in circulation. From the middle of 1926, how- Month of R b e a se n r k ve Mem- Non- June credit Mone- Treas- Money ber mem- Unexever, to the early part of 1928 circulation de- tary ury in bank ber pended gold cur- circu- reserve clearing capital clined sharply, reflecting a recession in domestic stock rency lation bal- bal- funds ances ances business and a downward tendency of prices. The decline appeared to have come to a halt in 1922-23 -14 +264 +138 +350 +47 -6 -3 1923-24 -292 +431 +21 +51 +134 -7 -18 1928, but was resumed again in 1929. The 1924-25 +232 -107 -15 -36 +140 +4 +2 1925-26 +67 +74 +27 +87 +65 -2 +18 reduction in currency during the past 18 1926-27 -104 +168 +6 -50 +95 +11 +14 1927-28 +450 -487 +14 -95 +54 -6 +24 months, in the face of extremely active business 1928-29 -214 +192 -12 -49 -41 +2 +54 and fairly firm commodity prices, may be attributed in part to the efforts of banks, both The volume of reserve bank credit, which member and nonmember, to reduce their cash declined until the middle of 1924, turned up in in vault in order to utilize all their available the following two years, declined again someassets at a time of growing indebtedness and what in the year ending in June, 1927, advanced firm money rates. Another factor in the recent sharply in the following year, and during the decline of currency may be a return flow of year ending in June of the present year de- American money from abroad, after the stabili- clined by about one-half of the previous year's zation of currency in France, Italy, and other advance. In large measure these changes European countries. Satisfactory statistics of are accounted for by the changes in the councurrency movements in and out of the country try's stock of monetary gold, shown in the Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

430 FEDERAL RESERVE BULLETIN JULY, 1929 second column of the table and by the third line During the year ending in June, 1923, howon the chart. There were, however, several ever, large additions to the reserve funds of years in which other factors were of equal or member banks through gold imports and greater importance than changes in gold stock. through the issue of silver certificates by the Thus in the year between the middle of 1922Treasury were largely offset by a growth in and 1923, for instance, when there was an in- the domestic and foreign demand for American crease of $264,000,000 in gold stock, there was currency, so that there was little change in the also a growth of $138,000,000 in Treasury cur- volume of reserve bank credit. Member bank rency outstanding and of $350,000,000 in money reserve balances increased slightly during the in circulation. This was the one year in which year, reflecting a moderate growth in member bank credit. During the following year, that RESERVE BANK CREDIT ending in June, 1924, gold imports were on .U.0M0FD0LURS AND PRINCIPAL FACTORS IN CHANGES MlUflBOFBfllUB a much larger scale and there was only a relatively small demand for additional currency; although reserve bank credit declined by $292,000,000, there was an increase of $134,000,000 in member bank reserve balances, and a correspondingly rapid growth of member bank credit. The year was one of exceptionally easy money conditions, which lasted until the end of 1924 and contributed to a reversal in the direction of gold movements, so that in the following year there was a decrease of more than $100,000,000 in the gold stock of the country. Nevertheless, the year ending in June, 1925, showed a growth of $140,000,000 in member bank reserve balances, the largest amount for any year in the period covered by the table. During that year there was some decrease in the demand for currency and no 1922 1923 192't 1925 1926 1927 192? 1929 material changes in the other items; the loss of Based on monthly averages of daily figures gold and the growth in member bank reserve a change in Treasury currency outstanding was balances were reflected in an increase of of major importance; the large increase during $232,000,000 in Federal reserve bank credit. the year was due to purchase by the Treasury of silver against which it issued silver certifi- During the following year (June, 1925-June, cates. These operations were in accordance 1926) there was some inflow of gold and some with the Pittman Act of 1918, the certificates increase in Treasury currency outstanding, offissued replacing in the circulation Federal set by an increase in money in circulation, in reserve bank notes which under the terms of member bank reserve balances, and in unexthat act had in 1918-1920 been issued to pended capital funds. The net result was an replace silver dollars previously in circulation. increase of $67,000,000 in reserve bank credit. As a result of these operations Treasury cur- This was a year of active business and of conrency was substituted for a considerable volume siderable growth in member bank credit. In of Federal reserve currency, and the demand the year ending in June, 1927, there was a confor reserve bank credit was diminished without siderable inflow of gold from abroad and a reference to changes in the total volume of decrease in money in circulation, with the consemoney in circulation. quence that there was adecrease of $104,000,000 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

JULY, 1929 FEDERAL RESERVE BULLETIN 431 in reserve bank credit outstanding, notwith- for any year during the period covered by this standing a growth in member bank reserve review. During the past year, which was balances, reflecting a rapid growth in member characterized by a high level of money rates, bank credit. the volume of member bank credit showed a In the summer of 1927 the Federal reserve decrease following upon a continuous and rapid system, partly in view of a recession in domes- growth for the six preceding years, and this tic business and partly because of a severe decrease was reflected in a reduction in memstrain on the foreign exchanges which en- ber bank reserve balances. dangered the maintenance of the gold standard, exerted its influence toward easier condi- Condition of All Banks in the United States on March tions in the money market. The consequent 27, 1929 low level of money rates in the United States Bank loans and investments in the United was an important factor in once more reversing States aggregated $58,000,000,000 on March the direction of gold movements, and during the 27, 1929, according to figures for all banks in the year ending in June, 1928, the country's gold country recently made available and given in stock was diminished by nearly $500,000,000. detail, by districts and by States, on pages 521- This loss of gold and some growth in member 524 of this BULLETIN. The decline since the bank reserve balances was offset in part by a first of the year, about $250,000,000, reflects a decline in money in circulation, but was in decrease in loans of $210,000,000 and of $40,large part reflected in a growth of $450,000,000 000,000 in investments. These figures, comin the outstanding volume of reserve bank piled by the Federal Reserve Board, reflect the credit. This carries the analysis up to the condition of 25,341 member and nonmember developments for the latest year, which were banks—including national banks, State comdiscussed in detail in the early part of this mercial banks, trust companies, mutual and review. stock savings banks, and private banks under To summarize, in the middle of 1929 the State supervision. volume of reserve bank credit outstanding was considerably below that in 1928 Change in Central Bank Discount Rate Summary. and approximately at the average for the preceding five years. The following change has been made since Developments during the last year have thus the 1st of June in the discount rates of central largely offset those of the year before, when a banks in foreign countries: June 6, Imperial loss of gold carried the volume of reserve bank Bank of India from 6 to 5 per cent. credit to a high point. The amount of gold returned to this country during the past year, Reprint of Experts' Report on German Reparations however, equaled only about two-fifths of the gold exported during the preceding year. The The complete official English text of the remainder of the decline in reserve bank credit experts' report on German reparations, as has reflected a reduction in money in circula- given elsewhere in this issue of the BULLETIN, tion and in member bank reserve balances. has been reprinted as a separate pamphlet The decline in these balances during the year and can be obtained upon request at a nominal ending in June, 1929, is the only decline shown charge. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

432 FEDERAL RESERVE BULLETIN JULY, 1929 RESERVE BANK CREDIT—FACTORS IN CHANGES There are presented herewith tables of annual, banks, and enable them, other things being monthly, and weekly averages of daily figures equal, to reduce correspondingly the amount of the volume of Federal reserve bank credit of reserve bank credit outstanding. Reducoutstanding and of all the factors that account tions in gold stock have the opposite effect. for decreases and increases in this volume. Treasury currency outstanding.—Treasury These factors represent all the channels con- currency outstanding (or Treasury credit as it necting the general banking and monetary has been called) measures the net contribution system of the country with the Federal reserve of the Treasury to the currency and is computed banks. A brief explanation of each item in by subtracting Treasury holdings of cash from the tables is given in the following paragraphs. the total outstanding volume of those forms of Reserve banls credit.—The total volume of money for which the Treasury is primarily reserve bank credit outstanding at any time responsible. This total includes silver coin and constitutes the contribution of the Federal silver certificates, United States notes, Treasury reserve banks to the supply of funds in the notes of 1890, Federal reserve bank notes, money markets of this country. This credit national-bank notes (which are secured by is released in various ways, namely, through Treasury bonds), and minor coin. The kinds direct loans to member banks on the basis of of currency not included are gold coin and gold discounted or rediscounted paper, through the certificates, the latter being fully covered by purchase of acceptances and United States gold held in trust by the Treasury, and Federal and other securities, through loans on gold reserve notes, which represent Federal reserve made to foreign central banks, through the bank credit. Federal reserve bank notes are deposit of funds in foreign banks, and through included in Treasury currency at the present carrying Federal reserve bank float, which time because the Treasury has taken over the arises on account of transit items deposited liability on these notes; prior to 1922, however, with the reserve banks that are credited prior when these notes were a liability of the reserve to their actual collection. All of these methods banks, they were not included in this item. place credit at the disposal of member banks, The total is reduced by all the cash assets to be used by them either to reduce their which the Treasury has at its disposal without indebtedness at the reserve banks, to meet a drawing on balances with depositary banks. demand for currency, or an export demand for Silver dollars held by the Treasury, against gold, or to build up their reserve balances. which silver certificates have been issued, are It is only in the latter case that an increase not deducted, however, because they are in reserve bank credit provides a basis for represented in the circulation by the certifigrowth in member bank credit. cates issued against them. That is, deductions are made for balances which the Treasury has FACTORS OF DECREASE in the reserve banks, for gold which it holds as reserve against United States notes, for gold in Monetary gold stock.—Increase in the mone- the general fund (excepting the gold-redemption tary gold stock of the United States is the funds held against Federal reserve notes), and most important factor of decrease in the de- for all other currency and coin in its possession mand for reserve bank credit. The monetary except gold which the Treasury holds in trust gold stock includes gold held by the Treasury against gold certificates and for the reserve and the Federal reserve banks, except gold banks in the gold-settlement funds. The item that has been earmarked for foreign account, as presented in the table measures the net and gold coin in circulation in the United States. extent to which currency outstanding is secured It is computed by taking the total of all gold primarily on the credit of the Treasury. actually held by the Treasury and Federal Additions to this item decrease the demand for reserve banks, except gold under earmark, and reserve bank credit and reductions in it inadding to this total an estimated figure for gold crease this demand. coin in circulation which takes into consideration imports and exports, mintings, meltings, FACTORS OF INCREASE and the use of gold coin in the arts as well as payments of gold coin into circulation and Money in circulation.—Changes in money in withdrawals from circulation. Additions to circulation are usually the most important the gold stock furnish funds to the member seasonal factor in the demand for reserve bank Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

JULY, 1929 FEDERAL RESERVE BULLETIN 433 credit, and at times the largest element in of these items in earlier years were carried in annual changes. The figures for money in accounts other than those in which they now circulation include all kinds of United States appear, adjustments have been made to bring money outside of the reserve banks and the the entire series into conformity with the Treasury, except gold coin which has been current figures. exported. They include, therefore, not only Balancing analysis.—For any period the sum money held by the public in this country, but of the three items, reserve bank credit, Treasury vault cash held by banks and such United currency, and monetary gold stock, equals the States money (other than gold coin) as may sum of the other four items, namely, money in have been carried or shipped abroad. In- circulation, member bank reserve balances, creases in the demand for currency increase the nonmember clearing balances at the reserve demand for reserve bank credit, while de- banks, and unexpended capital funds of the creases in money in circulation diminish this reserve banks. The first three items may be demand. considered as sources of reserve funds, and the Member bank reserve balances.—The entire others as uses fco which these funds have been reserves which member banks are required by put. The items are all mutually related, and law to hold against their deposit liabilities changes in any one of them can be accounted have been carried since August, 1917, as reserve for by balancing changes in the aggregate balances with the reserve banks. Aggregate of all the others. reserve balances of member banks usually aver- The tables present averages of daily figures, age close to the minimum required by law, because comparisons between single dates are because member banks do not make it a prac- seriously affected by transient fluctuations in tice to carry excess reserves. The reserve bal- money in circulation and in member bank ances fluctuate largely with changes in member reserve balances. Money in circulation usually bank deposit liabilities, which chiefly reflect rises about $45,000,000 between Wednesday changes in memberbank loans and investments. and Saturday of each week, and the effect of Changes in member bank balances, therefore, changes in the demand for currency would, usually reflect changes in the volume of mem- therefore, be considerably exaggerated in a ber bank credit outstanding. When member single date comparison between a Wednesday bank reserve requirements increase, there is a in one month and a Saturday in another. corresponding increase in the demand for reserve Member bank balances with the reserve banks, bank credit, and reduction in reserve require- which are computed for reserve purposes on an ments decreases this demand. average basis for a reserve period, are also Nonmember clearing balances at Federal subject to wide day-to-day fluctuations. reserve banks.—This item includes all deposits which the reserve banks hold for depositors Table L—RESERVE BANK CREDIT AND FACTORS IN other than the Treasury and the member CHANGES, BY YEARS, 1918-1928 banks, i. e., deposits for nonmember banks, and for others, such as foreign central banks and [Averages of daily figures. In millions of dollars] governments. These deposits are held largely for clearing purposes and when they increase Factors of Factors of increase tend to cause an increase in reserve bank credit, decrease since they are usually built up out of funds m tra e n m sf b e e r r r e b d a nk f s ro . m the reserve balances of Year R c b e r a s e e n d r k i v t e M ta o r n y e- u T r ry e r n e c a c u y s r - - M in o c n i e r y - M b b a e e n m r k - m N b e o e m n r - - U pe n e n d e d x - - Unexpended capital funds of Federal reserve gold out- cula- reserve clear- capstock stand tion bal- ing ital banks.—This item measures the extent to ing ances bal- funds ances which the paying in of capital to the reserve banks and their subsequent earnings have 1918 - .- 1,720 3,157 1,478 4,657 1,497 108 93 taken funds out of the market. It is com- 1919 2,623 3,129 1,252 5,015 1,718 115 156 puted by subtracting from the " capital/7 1 1 9 9 2 2 0 1 3 2 , , 3 2 9 02 0 2 3 , ,2 8 9 6 0 9 1 1 , , 4 4 0 9 2 6 5 4 , , 4 95 7 1 7 1 1 , , 8 6 3 7 5 2 2 6 8 7 2 3 8 3 2 7 "surplus," and "all other liabilities'7 of the 1922 1,226 3,801 1,603 4,534 1,781 30 285 1923 . .. 1,205 4,060 1,736 4,821 1,873 27 280 reserve banks, the items which represent 1924 996 4,438 1,757 4,879 2,023 27 262 amounts returned to the market, namely, 1 1 9 9 2 2 5 6." 1 1 , , 1 25 9 7 5 4 4 , , 3 45 8 2 3 1 1 , , 7 7 5 4 6 3 4 4 , , 8 9 7 3 0 1 2 2 , , 1 2 6 0 7 9 2 3 8 1 2 2 8 6 4 6 "bank premises77 and "all other resources77 1927 1,174 4,564 1,774 4,892 2,290 31 299 1928 1,504 4,207 1,782 4, 783 2,355 29 326 of the reserve banks. Since some components Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

434 FEDERAL RESERVE BULLETIN JULY, 1929 Table II.—RESERVE BANK CREDIT AND FACTORS IN Table II.—RESERVE BANK CREDIT AND FACTORS IN CHANGES, BY MONTHS, 1918-1929 CHANGES, BY MONTHS, 1918-1929—Continued [Average of daily figures. In millions of dollars] [Average of daily figures. In millions of dollars] F d a e c c t r o e r a s s o e f Factors of increase F d a e c c t r o e r a s s o e f Factors of increase Month R c b e r a s e e n d r k i v t e M s g t t a o o o r n l c y d k e- u T s r r o e t y r i a n n e u c n g a c t u - d y s r - - - i j M i c n t u o i o l c n a n i e - r y - r M e a b b b s n a a e e e c n l m r - r e k v s - e m c a N b l n b i e e a n o c e l m a g n - r e r - s - - U p f c u i e a n e t n n p a d e d - d l x s - - Month R c b e r a s e e n d r k i v t e M s g t t a o o o r n l c y d k e- u T s r r o e y t r i a n n e u c n a g c t u - s d y r - - M i c n t o u i o c l n a n i e r - - y r M e a b b s n b a a e e c e n l m r - r e k v s - e m c N b l b i e e a n o e l a m g - n r r - - - U p fu c i e e n a t n n a d p e d d l x - s - - 1918 1924 January 1,170 3,152 1,563 4,306 1,467 36 76 January 1,041 4,266 1,750 4,847 1,911 274 February 1,143 3.159 1,589 4,280 1,468 63 80 February 955 4,302 1,759 4,832 1,892 270 March. 1,263 3,162 1,583 4,373 1,466 85 84 March.. 990 4,340 1,747 4,870 1,915 270 April.. 1,381 3,163 1,563 4,423 1,504 95 85 April... 981 4,383 1,720 4,886 1,905 270 May... 1,412 3,163 1,521 4,401 1,482 126 87 May 879 4,433 1,766 4,866 1,922 266 June... 1,554 3,162 1,471 4,448 1,512 138 89 June 886 4,471 1, 759 4,830 2,001 264 July... 1,631 3,161 1,392 4,520 1,448 124 92 July.... 879 4,503 1,763 4,810 2,046 261 August 1,750 3,157 1,439 4, 666 1,459 126 95 August.. 881 4,516 1,763 4,800 2,072 255 September 2,073 3,156 1,411 4,911 1,507 121 101 September 983 4, 515 1, 763 4,853 2,120 257 October 2,355 3,151 1,402 5,134 1,539 130 105 October. 1,057 4,506 1,755 4,891 2,141 259 November 2,416 3,155 1,378 5,183 1,520 131 115 November 1,135 4,517 1,771 4,970 2,164 259 December 2,491 3,156 1,418 5,243 1,586 117 119 December 1,288 4,507 1,768 5,088 2,182 261 1919 J J J A N F M A M D S O a u u e e o u e c p n n a a p b l c t v g r u y o r e t y r e i e u e c u a b . m l _ . m s m 1 h . . r e a . . . . 9 t . y b . . r r b 2 b y e e e 0 r r r 3 2 3 2 2 2 2 2 2 2 2 2 , , , , , , , , , , , , 2 6 0 5 4 3 5 4 3 4 4 8 3 0 5 3 4 6 8 9 5 5 9 4 6 3 9 1 7 0 9 8 9 1 8 7 3 3 3 3 3 3 3 3 3 3 3 3 , , , , , , , , , , , , 0 1 1 1 1 1 1 1 1 1 0 0 2 2 1 6 6 7 4 6 6 6 8 7 1 0 4 6 0 6 3 1 2 9 7 0 1 1 1 1 1 1 1 1 1 1 1 1 , , , , , , , , , , , , 2 2 2 2 2 2 2 2 2 2 2 4 3 3 0 5 0 7 0 8 4 3 3 0 9 0 9 4 7 7 7 6 8 1 3 0 5 5 4 5 4 4 4 4 4 4 5 4 , , , , , , , , , , , , 1 3 9 8 9 2 8 9 0 9 9 9 0 4 9 4 1 0 9 4 5 3 8 7 6 1 1 2 3 8 6 2 0 2 9 0 1 1 1 1 1 1 1 1 1 1 1 1 , , , , , , , , , , , , 8 8 7 7 6 6 7 6 6 7 6 6 2 3 6 9 5 8 4 1 5 1 9 3 0 7 9 3 6 6 0 2 2 9 6 5 1 1 1 1 1 1 1 1 1 1 9 0 9 2 3 2 0 0 3 2 1 1 9 0 7 1 5 6 8 4 3 3 4 8 2 1 1 1 1 1 1 1 1 1 1 1 0 3 3 4 9 6 5 6 7 4 4 1 1 1 1 5 6 4 7 7 8 2 7 6 J J J A A S N D F M M O u a u e e e o u c p n n a p a l b c t v g r u y r e o t y e r i e u e c a b u . l m 1 . m m s h . . r . e a 9 . . t . y . b 2 r r b b y e 5 e e r r r 1 1 1 1 1 1 1 1 1 1 1 1 , , , , , , , , , , , , 3 0 1 2 5 3 1 1 1 1 1 1 5 9 1 2 0 2 2 0 1 4 2 1 2 4 0 7 7 1 2 0 8 3 5 8 4 4 4 4 4 4 4 4 4 4 4 4 , , , , , , , , , , , , 3 3 4 3 3 3 3 3 3 3 3 4 9 4 0 8 9 7 9 6 6 5 4 6 1 6 7 6 3 4 7 4 5 9 7 8 1 1 1 1 1 1 1 1 1 1 1 1 , , , , , , , , , , , , 7 7 7 7 7 7 7 7 7 7 7 7 4 4 3 4 3 6 6 8 4 7 6 6 0 4 5 9 7 4 9 2 2 8 2 5 4 4 4 4 4 4 4 4 4 4 5 4 , , , , , , , , , , , , 9 7 1 9 8 9 8 8 7 7 8 8 6 9 1 4 0 0 0 1 9 2 9 6 0 4 9 5 8 9 6 9 8 1 7 3 2 2 2 2 2 2 2 2 2 2 2 2 , , , , , , , , , , , , 2 2 2 1 1 1 1 1 1 1 1 1 2 1 0 5 2 6 6 4 3 9 5 3 1 9 3 1 3 1 0 1 2 4 9 7 2 2 2 2 2 2 2 2 2 2 2 2 7 7 7 6 6 6 6 5 6 6 6 5 1 4 2 7 6 4 6 8 3 2 4 8 January 3,205 2,961 1,256 5,231 1,883 210 J J N J A A D M M S F O a u u e e o e p u c n n a a p l b c t v r g u y r y o e t i e r e c e u l a b u . m 1 m h m s . r e a 9 . y t b r 2 r . b b . y e 1 e e r r r 3 3 3 3 3 3 3 3 3 3 3 3 , , , , , , , , , , , , 3 3 3 4 5 3 4 4 4 3 3 1 4 8 5 1 1 6 6 2 9 8 4 1 4 3 4 2 3 7 4 2 5 2 5 0 2 2 2 2 2 2 2 2 2 2 2 2 , , , , , , , , , , , , 8 8 8 8 8 8 8 9 8 8 9 8 7 2 5 9 4 3 6 5 0 3 5 5 3 1 5 4 7 5 2 9 9 1 4 5 1 1 1 1 1 1 1 1 1 1 1 1 , , , , , , , , , , , , 4 4 4 4 4 4 4 3 2 4 4 4 6 2 7 0 5 6 4 1 3 5 5 2 3 6 5 9 4 8 1 2 8 6 8 9 5 5 5 5 5 5 5 5 5 5 5 5 , , , , , , , , , , , , 4 5 6 6 6 4 3 6 4 3 2 4 1 0 6 5 0 4 7 7 7 9 8 0 4 9 2 8 0 8 2 8 3 8 5 1 1 1 1 1 1 1 1 1 1 1 1 1 , , , , , , , , , , , , 8 7 7 8 7 8 8 8 8 8 8 8 0 1 7 5 8 1 4 7 5 7 5 5 7 7 3 8 2 5 0 8 3 0 8 3 1 1 4 2 8 3 2 9 9 5 2 2 0 0 6 4 8 8 7 4 8 4 7 5 3 6 3 3 3 2 3 3 3 2 2 2 2 2 5 1 0 4 7 0 3 3 8 4 6 2 3 6 6 4 3 2 0 6 8 6 2 7 J J A J A S N D M M O F u a u e e e u o p c a n n a p l b c t v g r y y o r u t e e r i e u e _ c . b l u a m . 1 m m . s . h _ . e a r 9 . . . t . . . b y r 2 r b b y e . 6 e e r r r 1 1 1 1 1 1 1 1 1 1 1 1 , , , , , , , , , , , , 4 3 3 2 2 2 2 2 2 1 2 2 1 4 1 2 0 0 1 7 8 0 7 2 8 5 6 2 4 0 8 9 5 3 8 1 4 4 4 4 4 4 4 4 4 4 4 4 , , , , , , , , , , , , 4 4 4 4 4 4 4 4 4 4 4 4 8 7 2 7 4 7 0 3 4 3 6 0 1 1 5 7 8 2 0 8 4 4 7 7 1 1 1 1 1 1 1 1 1 1 1 1 , , , , , , , , , , , , 7 7 7 7 7 7 7 7 7 7 7 7 5 4 7 5 2 1 4 4 0 5 5 4 5 9 1 3 2 9 4 4 7 5 0 6 4 4 4 4 5 5 4 4 4 4 4 5 , , , , , , , , , , , , 1 9 9 8 9 0 0 8 8 8 8 8 3 1 1 0 8 6 5 6 0 7 8 9 1 2 6 1 2 9 4 4 1 1 5 1 2 2 2 2 2 2 2 2 2 2 2 2 , , , , , , , , , , , , 2 2 2 2 2 2 1 1 1 2 2 2 1 0 1 1 1 0 9 9 8 1 3 0 4 6 8 9 2 1 9 8 3 1 6 8 2 2 2 2 2 2 2 2 2 2 2 2 9 8 9 8 9 8 8 8 8 7 7 7 5 1 4 5 3 9 4 3 2 8 4 3 February 2,918 2, 975 1,435 5,263 1,728 26 | 311 J J N D A M J A F M S O a u u e e e p o c u n a l n a p b c t y r v g y u r o e t i r e c e e u l b a u m 1 m h m s r e a 9 y t b r 2 r b b . y e 2 e e r r r 1 2 2 1 2 2 2 1 1 1 1 1 , , , , , , , , , , , , 3 5 2 3 0 2 7 2 5 7 6 5 8 4 1 8 4 3 9 6 6 6 6 4 6 8 1 3 6 9 8 4 9 7 4 3 3 3 3 3 3 3 3 3 3 3 3 3 , , , , , , , , , , , , 6 1 2 3 1 0 7 5 6 3 5 4 7 9 5 9 1 4 0 4 9 0 4 7 2 7 7 4 2 0 4 3 5 5 7 9 1 1 1 1 1 1 1 1 1 1 1 1 , , , , , , , , , , , , 5 5 5 5 5 4 4 4 5 5 5 2 5 5 7 7 1 1 8 2 0 0 1 1 3 1 5 7 3 1 5 7 8 8 0 4 4 4 4 4 4 4 4 4 5 5 4 5 , , , , , , , , , , , , 4 7 5 7 7 9 2 0 0 7 6 8 5 1 2 7 5 3 0 7 4 2 7 5 1 8 7 1 2 6 4 8 2 1 3 7 1 1 1 1 1 1 1 1 1 1 1 1 , , , , , , , , , , , , 6 6 6 6 6 6 6 6 7 6 6 6 8 7 6 5 6 9 6 2 0 5 2 3 9 3 3 2 5 4 4 1 7 9 9 7 2 3 2 3 2 2 2 3 3 2 2 3 9 4 7 2 7 6 8 4 1 6 1 7 ! I ! ! I | i i I | I 2 2 3 3 3 3 3 3 3 3 3 3 S 8 5 5 5 4 3 4 4 3 2 4 6 4 0 0 1 5 1 8 4 7 1 2 J J N S D J A O F A M M u u a e e o e c u p n l n a a p b c t y v g r y e r o u i t e r e u c l e b a u m m 1 h s m e r a 9 t y b r b r 2 b y e 7 e e r r r.. _ .. . ! | I 1 1 1 1 1 1 1 1 1 1 1 1 , , . , , , , , , , , 1 2 0 1 0 0 5 3 0 1 0 0 8 5 1 8 9 6 7 4 4 8 8 5 7 1 8 7 4 3 6 7 5 5 1 3 4 4 4 4 4 4 4 4 4 4 4 4 , , , , , , , , , , , , 5 4 5 5 6 5 4 6 5 6 5 5 6 9 8 7 0 2 1 5 S 0 7 9 6 0 4 6 6 7 6 1 5 1 5 5 1 1 1 1 1 1 1 1 1 1 1 i, , , , , , , , , , , , 7 7 7 7 7 7 7 7 7 7 7 7 9 7 8 7 5 6 6 8 9 7 6 6 6 6 0 7 7 0 8 0 0 6 1 7 4 4 4 4 4 4 4 4 4 5 4 4 , , , , , , , , , , , , 9 9 8 8 0 8 8 9 8 8 9 8 3 1 3 4 7 4 5 6 0 4 3 5 4 7 1 9 9 1 0 3 3 8 6 6 2 2 2 2 2 2 2 2 2 2 2 2 , , , , , , , , , , , , 3 2 3 3 2 2 2 2 2 2 3 3 2 8 0 0 8 4 6 4 1 4 7 9 6 3 1 0 9 3 2 8 2 0 3 9 2 2 3 3 3 3 2 2 2 2 2 2 9 0 0 0 0 9 9 9 9 9 9 9 6 6 0 4 2 8 9 4 7 9 5 8 March 1,207 3, 736 1,576 4,483 1,711 39 ! 286 April. 1.210 3, 756 1, 572 4,482 1, 733 40 > 283 1928 May 1, 208 3, 768 1,576 4, 450 1,783 37 ! 282 January 1,388 4,377 1, 778 4, 785 2.426 | 305 June 1,192 3,776 1, 600 4, 429 1,820 34 ! 285 February 1,264 4,373 1, 776 4,709 2, 368 | 310 July 1, 170 3, 803 1, 595 4,443 1,812 28 I 285 March. 1,295 4,335 1,781 4,710 2,365 312 August 1,102 3, 840 1,613 4,448 1,799 25 I 283 April. 1,405 4,287 1, 778 4, 730 2,396 ! 317 September 1,180 3,860 1,630 4,552 1,811 23 i 284 May... 1,472 4,207 1,779 4,722 2,388 i 321 October 1, 246 3, 884 1, 657 4, 643 1, 836 21 j 287 June.. 1,531 4,119 1,791 4, 736 2,355 ! 322 November 1, 265 3,806 1, 650 4, 671 1,825 27 2X8 July 1,531 4,113 1,782 4, 740 2,324 | 326 December 1, 377 3,917 1, GOO 4,827 1, 840 28 289 August 1,485 4,118 1,774 4, 743 2,274 i 332 1923 September 1,581 i 4,125 1, 787 4,804 2,314 I 337 J M F a e n a b r u r c a u h r a y ry 1 1 1, . , 2 2 2 0 4 2 5 9 8 3 3 , , 9 e 4 e 5 o 1 1 1 , , , 7 6 7 0 9 2 9 0 4 4 4 4, , , 7 6 6 7 1 7 2 3 9 1 1 1 , , , 9 9 8 1 0 7 8 1 3 2 2 4 5 2 6 j 2 2 27 7 ." 6 5 6 N D O e o q c t v o e e b m m e b r b e e r r 1 1 1 , , , 8 6 6 2 5 2 4 3 2 ! | I 4 4 4 , , , 1 1 1 5 4 3 1 2 3 1 1 1 , , , 7 7 7 9 8 8 0 6 7 4 4 5 , , , 8 0 8 f 0 i 3 O 8 6 2 2 2 , , , 3 3 3 5 3 6 2 2 7 I ! ! 3 3 3 1 4 5 7 3 2 April 1,214 3,966 1,711 4,731 1,869 21 279 Mav.. 1, 222 3, 975 1, 740 4,764 1, 874 36 281 1929 'i June- 1,178 3,993 1,738 I4,779 1, 867 28 282 January j 1,613 4,115 1,789 4,748 2, 387 31 351 July. _ 1,179 4,040 1,743 4, 812 1,867 ' 24 280 February j 1,502 4,143 1, 784 4,685 2, 357 29 357 August 1,127 4, 061 1, 747 4, 833 1,835 22 281 March ! 1,481 4,166 1,791 4,709 2,337 31 361 September 1,184 4,097 1,745 4,901 1,848 22 281 April i 1,377 4,226 1, 785 4, 679 2,308 35 366 October 1,204 4,123 1, 753 4,941 1, 864 23 284 Mav... I 1,303 4,292 1,787 4, 684 2.296 32 370 November 1, 204 4,155 1,757 4,953 1, 875 31 284 June __._! 1,317 4, 311 1,779 4,687 2,314 30 376 December 1,260 4,182 1,771 5,071 1,882 22 282 4, 226 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

JULY, 1929 FEDERAL RESERVE BULLETIN 435 Table HI.—RESERVE BANE CREDIT AND FACTORS IN Table III.—RESERVE BANK CREDIT AND FACTORS IN CHANGES, BY WEEKS, 1922-1929 CHANGES, BY WEEKS, 1922-1929—Continued [Averages of daily figures. In millions of dollars] [Average of daily figures. In millions of dollars] F d a e c c t r o e r a s s e of Factors of increase F d a e c c t r o e r a s s e of Factors of increase en W din ee g k — R c b e r a s e e n d r k i v t e M s t g t a o o o r n l c y d k e- u s T r r t y o e r i a n e n u n c a g c t d - u s y - - r- M i c n t o u i o c l n a n i e i - y - r M e a b b b s n a e a e e c n m l r r e - k v s - e m c a N b b l n i e e n o a e c m a g l n r e - r - s - - U p f c u i e n e a t n n a d e p d d l x - s - - en W di e n e g k — R c b e r a s e e n d r k i v t e M s t g t a o o o r n c l y d k e - u T r s r e o t y r i a n e n u c n a g c t u - d s y r - - M i c n t o u i o c n la n i e r - - y r M e a b b s b n a e e a e c n m l r r e - k v s - e m a c N b n l b i e e n o a e c m a g l n r e - r - s - - U p f c u i e n e a t n n a d e p d d l x - s - - 1922 1923 Jan. 7 1,505 3,663 1,553 4,665 1,741 27 288 Mar. 3 1,238 3,963 1,709 4,716 1,898 22 274 Jan. 14 1,335 3,669 1,601 4,558 1,732 27 288 Mar. 10 1,210 3, 966 1,715 4,715 1,881 21 274 Jan. 21 1,269 3,675 1,548 4,483 1,692 30 287 Mar. 17 1,208 3,964 1,730 4,707 1,899 21 275 Jan. 28 1,238 3,676 1,516 4,438 1,675 30 287 Mar. 24 1,229 3,964 1,661 4,705 1,851 21 277 Mar. 31 1,262 3,968 1,648 4,720 1,856 23 279 Feb. 4 1,257 3,684 1,494 4,440 1,678 32 285 Feb. 11 1,263 3,695 1,480 4,438 1, 685 30 285 Apr. 7 1,253 3,970 4,736 1,872 21 280 Feb. 18 1,226 3,706 1,537 4,445 1,700 39 285 Apr. 14 1,202 3,974 :, 715 4,729 1,863 20 279 Feb. 25 1,188 3,715 1,558 4,460 1,683 32 286 Apr. 21 1,220 3,976 ,713 4,725 1,882 23 279 Apr. 28 1,182 , 725 4,727 1,857 21 Mar. 4 1,230 3,721 1,560 4,490 1,702 34 285 Mar. 11 1,202 3,728 1,593 4,490 1,713 35 285 May 5 1,239 3,983 ,721 4,759 1,871 33 280 Mar. 18 1,222 3,737 1,601 4,480 1,751 44 285 May 12 _ 1,218 3,984 :, 736 4, 761 1,867 29 281 Mar. 25 1,181 3,742 1,571 4,477 1,690 42 285 May 19 1,220 3,990 ., 729 4,759 1,870 30 280 May 26 1,216 3,997 ., 755 4,758 1,882 48 280 Apr. 1 1,206 3,746 1,546 4,479 1,693 40 286 Apr. 8 _. 1,216 3,750 1,574 4, 500 1,715 40 285 June 2 1,231 4,017 1,742 4, 795 1,879 36 280 Apr. 15 1,232 3,753 1,565 4,497 1,727 40 286 June 9 1,220 4,029 1,728 4,793 1,872 33 279 Apr 22 1,212 3,758 1,578 4,476 1,747 41 284 June 16 1,159 4,039 1, 768 4,770 1,887 28 281 Apr. 29 1,180 3,762 1,577 4,454 1,744 38 283 June 23 1,132 4,046 1,745 4,763 1,8.51 26 283 June 30 1,172 4,048 1,722 4,778 1,856 25 283 May 6 1,238 3,764 1,560 4,472 1,765 43 282 May 13 1,221 3,768 1,581 4,461 1,789 38 282 July 7 1,250 4,051 1, 745 4,859 1,880 27 280 May 20... . 1,201 3,769 1,584 4,442 1,794 36 282 July 14 1,211 4, 053 1,746 4,829 1,877 25 279 May 27 1,186 3,769 1,573 4,429 1,783 34 282 July 21 1,162 4, 059 1,739 4,791 1,865 24 280 July 28 1,115 4,072 1, 742 4,777 1,851 22 279 June 3_ 1,210 3,770 1, 579 4,454 1,788 35 282 June 10 1,205 3,771 1,589 4,442 1,809 33 281 Aug. 4 1,121 4,080 1,742 4,793 1, 847 22 281 June 17 1,214 3,774 1,601 4,416 1,852 37 284 Aug. 11 1,139 4,088 1, 752 4, 834 1,838 25 282 June 24 1,145 3,780 1,622 4,419 1,807 34 287 Aug. 18 1,142 4,096 1,749 4,843 1,841 21 282 Aug. 25 1,108 4,104 1,748 4,833 1,824 22 281 July 1 . 1.182 3,784 1,601 4,433 1,816 31 287 July 8 ,235 3,788 1,602 4,496 1,814 30 285 Sept. 1 1,135 4,109 1,741 4,851 1,832 21 281 July 15 ,185 3,797 1,609 4,452 1,826 28 285 Sept. 8 1,176 4,112 1,748 4,899 1, 835 21 281 July 22 1,151 3,806 1,592 4,419 1,819 28 283 Sept. 15 1,206 4,117 1,755 4,900 1,875 23 280 July 29 ,120 3,816 1,582 4,407 1,801 27 283 Sept. 22 1,164 4,128 1,752 4,891 1,846 24 283 Sept. 29 1,183 4,134 1,730 4,908 1,835 22 2S2 Aug. 5 ,123 3.829 1,605 4,427 1,818 29 283 Aug. 12 L094 3,836 1,616 4,439 1.798 25 284 Oct. 6 1,212 4,139 1,752 4,942 1, 856 22 283 Aug. 19_ 1,100 3,840 1,616 4,447 ,801 24 284 Oct. 13 1,208 4,150 1, 763 4,959 1,854 25 283 Aug. 26 1,091 3,845 1,611 4,459 1,782 23 283 Oct 20 1,228 4,158 1, 743 4,945 1,879 23 282 Oct. 27 1,175 4,163 1,753 4,927 1,859 23 282 Sept. 2 1,126 3,851 1,601 4,480 ,791 23 284 Sept. 9 1,166 3,855 1,621 4,541 ,797 23 281 Nov. 3 1,199 4,166 1,749 4,939 1,866 25 284 Sept. 16 1,182 3,859 1,641 4, 545 ,829 24 284 Nov. 10 1, 225 4,172 1, 757 4,960 1,880 30 284 Sept. 23 1,185 3,862 1,625 4,555 son 22 286 Nov. 17 1,235 4,180 1,752 4,952 1,8S5 48 282 Sept. 30 1,189 3,867 1,643 4,579 L.812 22 286 Nov. 24 1,165 4,188 1,764 4,936 1,874 24 283 Oct. 7 1,217 3,880 1,653 4,622 1,820 22 286 Dec. 1 1,195 4,200 1, 759 4,976 1,872 23 283 Oct. 14 1,264 3,884 1,658 4,660 1,837 23 286 Dec. 8 1,216 4,210 1,764 5,010 1.876 22 282 Oct. 21. 1,275 3,886 1,669 4,654 1,869 21 286 Dec. 15 1,235 4,223 1,776 5,036 1,892 22 284 Oct 28 1,226 3,885 1,654 4,634 1,824 19 288 Dec. 22 1,266 4,232 1,786 5,117 1,862 23 282 Dec. 29 1,327 4,236 1,764 5,134 1,890 21 282 Nov. 4 . 1,261 3,888 1,640 4,650 1,826 26 287 1924 N N N o o o v v v . . . 2 1 1 5 8 1 . 1 1 1 , , , 2 2 2 8 8 3 0 3 5 3 3 3 , , , 8 8 8 9 9 9 6 1 9 1 1 1 , , , 6 6 6 5 5 5 6 0 2 4 4 4 , , , 6 6 6 7 8 5 4 1 9 1 1 1 , , , 8 8 8 1 2 3 8 6 6 3 2 3 6 0 0 2 2 2 8 8 8 7 7 8 J J J a a a n n n . . . 1 5 1 2 9 1 1 , , 9 2 0 5 9 8 3 4 8 4 4 4 , , , 2 2 2 7 4 5 0 5 8 1 1 1, , , 7 7 7 4 5 6 9 7 7 4 4 5 , , , 8 8 0 0 1 9 6 8 6 1 1 1 , , , 9 9 9 0 3 1 9 2 7 2 2 2 6 5 4 2 2 2 7 7 7 9 4 5 Dec. 2 1,270 3,904 1,649 4,708 1,806 19 290 Jan. 26 959 4,276 1,734 4,780 1,892 24 273 D D D D e e e e c c c c . . . . 9 3 2 1 3 0 6 . 1 1 1 1 , , , , 4 3 4 3 3 2 3 3 2 7 3 1 3 3 3 3 , , , , 9 9 9 9 2 2 1 0 5 1 6 7 1 1 1 1 , , , , 7 7 6 6 1 1 9 5 0 7 1 2 4 4 4 4 , , , , 8 7 8 7 9 9 8 6 4 4 0 1 1 1 1 1 , , , , 8 8 8 8 4 1 2 7 2 7 8 6 2 3 3 1 7 7 1 9 2 2 2 2 9 8 8 8 0 9 9 8 F F F F e e e e b b b b . . . . 2 9 1 2 _ 6 3 9 9 9 9 5 6 4 3 1 4 9 6 4 4 4 4 , , , , 2 2 3 2 9 8 0 9 9 3 8 2 1 1 1 1 , , , , 7 7 7 7 4 6 5 5 4 5 6 9 4 4 4 4 , , , , 7 8 8 8 8 2 4 0 1 6 6 2 1 1 1 1 , , , , 9 8 9 8 0 8 0 8 6 2 2 9 2 2 2 2 2 1 6 1 2 2 2 2 6 7 7 7 9 1 0 2 J J J J a a a a n n n n . . . 2 6 1 2 1 0 3 7 923 1 1 1 1 , , , , 3 3 1 1 9 0 9 7 6 5 7 0 3 3 3 3 , , , , 9 9 9 9 4 4 5 3 2 9 0 2 1 1 1 1 , , , , 7 7 7 7 2 1 3 2 7 7 2 9 4 4 4 4 , , , , 7 6 6 7 0 1 9 4 6 9 8 3 1 1 1 1 , , , , 9 9 9 9 0 1 4 2 9 7 0 3 4 3 5 5 4 4 5 8 2 2 2 27 7 7 7 4 5 6 5 M M M M M a a a a a r r r r r . . . . . 8 2 2 1 1 2 9 5 1, 9 9 9 9 0 7 8 8 7 0 6 7 4 2 2 4 4 4 4 4 , , , , , 3 3 3 3 3 5 1 2 4 3 3 6 5 3 7 1 1 1 1 1 , , , , , 7 7 7 7 7 2 4 9 4 5 4 0 3 9 7 4 4 4 4 4 , , , , , 8 8 8 8 8 7 6 6 6 6 5 7 2 9 9 1 1 1 1 1 , , , , , 9 8 8 8 9 6 8 8 9 2 7 9 5 2 8 2 2 2 2 2 1 1 4 0 3 2 2 2 2 2 6 6 7 7 7 8 8 0 0 0 Feb. 3 1,176 3,953 1,705 4,631 1,901 29 273 Apr. 5 1,040 4,362 1,681 4,897 1,895 19 272 Feb 10 1,166 3,957 1,715 4,647 1,892 24 275 Apr. 12 1,020 4,370 i, 691 4,898 1,893 21 269 Feb. 17. . 1.217 3,959 1,711 4,668 1.911 31 277 Apr. 19 998 4,385 1,722 4,895 1,915 26 269 Feb. 24 L,218 3,962 1,704 4,693 1,893 22 276 Apr. 26 930 4,393 1,750 4,871 1,910 25 267 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

436 FEDERAL RESERVE BULLETIN JULY, 1929> Table HI.—RESERVE BANK CREDIT AND FACTORS IN Table UI.—RESERVE BANK CREDIT AND FACTORS IN CHANGES, BY WEEKS, 1922-1929—Continued CHANGES, BY WEEKS, 1922-1929-Continued [Average of daily figures. In millions of dollars] [Average of daily figures. In millions of dollars] Factors of Factors of increase F d a e c c t r o e r a s s e of Factors of increase e W nd e i e n k g- R c b e r a s e e n d r k i v t e M s t g t a o o o r n c l y d k e- u T r r s y e o t r i a n n e u c n g a c t- u d s y - r- M i c n t o u i o c n la n i e r - y - r M e a b b b s n a e a e e c n m l r r e - k v s - e m a c N b y n l i o e e n o a . c eo m a g n l rr e - r - s - - U p f c u i e n e a t n n a d e p d d l x - s - - en W di e n e g k — R c b e r a s e e n d r k i v t e M s t g t a o o o r n l c y d k e- u T r s ry o e t r k u a n e i f c n g a c c u d s y - r - -i M i c n t o u i o c n l n a i e r - y - r M e a b b s b n a e e a e c n m r l r e - k v s - e m a c N b b n l i e e n o a e c m a g n l r e - r - s - - U p f c u i e n e a t n n d a e p d d l x - s - - 1924 1925 May 3 909 4,408 1,766 4,871 1,819 25 268 July 4 1,172 4,365 1,761 4,832 2,174 264 May 10— 892 4,419 1,777 4,875 1,922 23 268 July 11.... 1,151 4,366 1,764 4,836 2,154 264: May 17— 874 4,431 1,771 4,860 1,926 24 266 July 18.... 1,110 4,366 1,769 4,790 2,166 264 May 24... 851 4,441 1,765 4,849 1,917 24 267 July 25-.-. 1,081 4,364 1,765 4,765 2,155 264 May 31... 879 4,450 1,753 4,872 1,921 23 266 Aug. 1-. 1,075 4,366 1,758 4,767 2,142 264 June 7... 901 4,459 1,759 4,870 1,963 22 264 Aug. 8... 1,133 4,370 1,739 4,797 2,158 262 June 14.. 893 4,466 1,760 4,832 2,003 20 264 Aug. 15.. 1,140 4,372 1,740 4,810 2,153 264 June 21.. 891 4,474 1,771 4,810 2,037 23 266 Aug. 22.. 1,143 4,376 1,744 4,824 2,149 265 June 28.. 871 4,481 1,748 4,806 2,008 21 265 Aug. 29.. 1,153 4,379 1,743 4,838 2,149 264 July 5... 922 4,490 1, 769 4,880 2,013 27 261 Sept. 5... 1,175 4,385 1,749 4,870 2,150 265 July 12.. 897 4,496 1,777 4,858 2,026 25 261 Sept. 12. 1,221 4,390 1,750 4,915 2,157 265 July 19.. 864 4,505 1,764 4,792 2,056 25 260 Sept. 19.. 1,226 4,390 1,761 4,917 2,166 286 July 26.. 842 4,509 1,751 4,758 2,054 30 260 Sept. 26.. 1,245 4,382 1,740 4,910 2,161 269 Aug. 2... 864 4,510 1,743 4,761 2,067 31 258 Oct. 3... 1,284 4,382 1,743 4,936 2,177 268 Aug. 9... 878 4,512 1,753 4,784 2,071 32 25(5 Oct. 10.. 1,319 4,384 1,751 4,959 2,199 269 Aug. 16.. 871 4,515 1,776 4,793 2,081 33 255 Oct. 17.. 1, 347 4, 385 1,740 4, 956 2,213 271 Aug. 23.. 871 4,516 1,771 4,799 2,072 33 254 Oct. 24.. 1,308 4,396 1,729 4,932 2,201 271 Aug. 30.. 893 4,520 1,761 4,820 2,066 34 254 Oet. 31.. 1,314 4,402 1,725 4,928 2,211 271 Sept. 6... 4,518 1,760 4,866 2,075 32 253 Nov. 7... 1,362 4,408 1,734 4,956 2,234 271 Sept. 13.. 970 4,516 1,765 4,854 2,113 31 253 Nov. 14.. 1,340 4,410 1,747 4,950 2,224 272 Sept. 20.. 1,030 4,515 1,784 4,843 2.195 32 259 Nov. 21_. 1,337 4,411 1,733 4,939 2,235 271 Sept. 27. 4,512 1,753 4,844 2,101 30 259 Nov. 28.. 1, 353 4,401 1,728 4,975 2,201 272 Oct. 4.. 1,031 4,509 1, 737 4,875 2,114 28 260 Dec. 5.. 1,411 4,397 1,720 5,016 2,205 274 Oct. 11. 1,053 4,505 1,746 4,885 2,133 27 259 Dec. 12. 1,452 4,398 1,724 5,055 2,214 273 Oct. 18. 1,092 4,506 1,745 4,898 2,159 27 259 Dec. 19. 1,500 4,401 1,747 5,119 2,224 275 Oct. 25. 1,036 4,506 1,773 4,887 2,141 27 260 Dec. 26. 1,599 4,395 1,752 5,235 2,205 275 Nov. 1 1,049 4,507 1,769 4,907 2,132 27 259 1926 Nov. 8 1,121 4,510 1,774 4,956 2,159 32 258 Jan. 2 1,541 4,398 1,758 5,139 2,249 274r Nov. 15.... 1,135 4,514 1,778 4,964 2,175 30 258 Jan.9 1,406 4,403 1,751 2,257 271 Nov. 22. 1,143 4,520 1,766 4,958 2,183 29 259 Jan.16... 1,271 4,403 1,749 4,872 2,248 273 Nov. 29— 1,142 4,524 1,770 4,995 2,154 28 259 Jan.23._. 1,206 4,413 1,741 4,828 2,229 274 Jan.30... 1,180 4,409 1,733 4,815 2,208 274 Dec. 6-. 1,200 4,522 1,772 5,024 2,182 30 258 Dec. 13. 1,228 4,513 1,769 5,043 2,177 31 259 Feb. 6... 1,207 4,416 1,721 4,833 2,215 274 Dec. 20. 1,281 4,502 1,782 5,097 2,174 32 262 Feb. 13.. 1,210 4,426 1,729 4,851 2,210 273 Dec. 27. 1,396 4,498 1,755 5,181 2,173 32 263 Feb. 20.. 1,219 4,429 1,722 4,852 2,217 277 Feb. 27.. 1,228 4,427 1,710 4,871 2,192 277 1925 Jan. 3 1,328 4,498 1,759 5,073 2,214 39 259 Mar. 6... 1,258 4,432 1,701 4,886 2,204 276 Jan. 10—. 1,215 4,492 1, 768 4,954 2,220 43 258 Mar. 13_. 1,204 4,444 1,709 4,867 2,188 277 Jan. 17—. 1,114 4,470 1,776 4,846 2,213 43 258 Mar. 20.. 1,184 4,447 1,754 4,861 2,215 280 Jan. 24.... 1,044 4,455 1,768 4,795 2,170 44 258 Mar. 27.. 1,200 4,446 1,691 4,852 2,178 280< Jan. 31.... 1,052 4,441 1,748 4,778 2,f64 41 258 Apr. 3... 1,269 4,449 1,668 4,878 2,197 281 Feb. 7.. 1,075 4,417 1,768 4,791 2,166 45 258 Apr. 10.. 1,216 4,452 1,695 4,885 2,172 281 Feb. 14. 1,103 4,394 1,783 4,809 2,165 48 258 Apr. 17.. 1,226 4,452 1,717 4,887 2,202 281 Feb. 21. 1,085 4,385 1,782 4,801 2,152 40 259 Apr. 24.. 1,168 4,445 1,746 4,874 2,178 281 Feb. 28. 1,115 4,375 1,779 4,821 2,152 36 260 May 1... 1,178 4,440 1,750 4,875 2,184 283 Mar. 7 1,144 4,356 1,775 4,844 2,143 28 260 May 8... 1,221 4,439 1,734 4,881 2,203 282" Mar. 14 1,149 4,349 1,779 4,827 2,161 28 261 May 15.. 1,196 4,432 1,745 4,866 2,198 282 Mar. 21.... 1,111 4,341 1,803 4,812 2,147 32 264 May 22.. 1,187 4,432 1,746 4,852 2,205 282 Mar. 28— 1,084 4,343 1,781 4,803 2,108 31 May 29.. 1,182 4,432 1,748 4,867 2,189 283 Apr. 4... 1,124 4,344 1,765 4,825 2,115 28 265 June 5... 1,230 4,433 1,760 4,913 2,203 282 Apr. 11.. 1,125 4,344 1,773 4,833 2,116 29 264 June 12.. 1,186 4,434 1,779 4,884 2,209 283- Apr. 18.. 1,109 4,346 1,772 4,814 2,125 25 263 June 19.. 1,181 4,436 1,777 4,873 2,210 286 Apr. 25.. 1,096 4,347 1,763 4,789 2,126 28 263 June 26.. 1,163 4,444 1,764 4,867 2,197 285- May 2._. 1,104 4,351 1,766 4,792 2,135 30 264 July 3... 1,239 4,446 1,766 4,918 2,225 283 May 9... 1,116 4,359 1,766 4,805 2,142 30 264 July 10.. 1,293 4,449 1,760 4,971 2,222 280 May 16.. 1,093 4,358 1,770 4,789 2,140 27 265 July 17.. 1,218 4,462 1,758 4,913 2,220 282 May 23.. 1,075 4,360 1,758 4,781 2,122 26 264 July 24.. 1,171 4,466 1,746 4,880 2,199 282" May 30.. 1,100 4,360 1,755 4,803 2,123 26 263 July 31.. 1,163 4,469 1,747 4,881 2,193 282- June 6... 1,144 4,362 1,746 4,824 2,136 27 265 Aug. 7... 1,210 4,467 1,750 4,900 2,217 283- June 13.. 1,126 4,363 1,736 4,801 2,135 25 264 Aug. 14.. 1,184 4,463 1,771 4,913 2,197 281 June 20-. 1,115 4,364 1,756 4,782 2,161 26 266 Aug. 21.. 1,203 4,468 1,752 4,914 2,199 284- June 27.. 1,093 4,366 1,735 4,774 2,128 25 267 Aug. 28. 1,201 4,470 1,749 4,915 2,191 286. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

JULY, 1929 FEDERAL RESERVE BULLETIN 437 Table m.—RESERVE BANK CREDIT AND FACTORS IN Table HI.—RESERVE BANK CREDIT AND FACTORS IN CHANGES, BY WE EKS, 1922-1929—Continued CHANGES, BY WEEKS, 1&22-1929— Continued [Average of daily figures. In millions of dollars] [Average of daily figures. In millions of dollars] Factors of Factors of decrease Factors of increase decrease Factors of increase en W d e i e n k g- R c b e r s a e e n d r k v it e M ta o r n y e- u T r ry e r n e c a c u y s r - - M in o c n i e r- y M b b a e e n m r k m c N b l e e o e m a n r r - - - U pe n e n d e d x - - en W d e in ek g- R c b e r a s e e n d r k i v t e M ta o r n y e- u T r ry e r n e c a c u s y r- M in o c n i e r y - M b b a e e n m r k - m c N b l e e o e m a n r r - - - U pe n e n d e d x - gold out- cula- reserve ing cap- gold out- cula- reserve ing capstock stand tion bal- bal- ital stock stand tion bal- bal- ital ing ances ances funds ing ances ances funds 1926 1927 Sept. 4 1,232 4,470 1,757 4,944 2,197 286 Nov. 5 1,301 4,530 1,778 4,930 2,338 38 303 Sept. 11— 1,258 4,473 1,779 4,988 2,207 286 Nov. 12 1,370 4,508 1,774 4,949 2,342 56 305 Sept. 18 1,272 4,471 1,773 4,970 2,225 289 Nov. 19 1,411 4,487 1,794 4,926 2,416 48 302 Sept. 25— 1,298 4,470 1,715 4,958 2,203 292 Nov. 26 1,380 4,465 1,803 4,934 2,372 39 303 Oct. 2.. 1,329 4,470 1,720 4,983 2,219 290 Dec. 3 1,437 4,449 1,803 4,956 2,395 33 305 Oct. 9.. 1,328 4,471 1,749 5,005 2,226 292 Dec. 10.._. 1,488 4,437 1,803 4,997 2,399 29 303 Oct. 16. 1,344 4,471 1,755 5,015 2,233 291 Dec. 17.._. 1,546 4,420 1,804 5,033 2,405 27 305 Oct. 23. 1,297 4,472 1,749 4,989 2,213 291 Dec. 24 1,634 4,403 1,789 5,120 2,377 25 304 Oct. 30. 1,305 4,473 1,736 4,988 2,206 293 Dec. 31.... 1,647 4,391 1,783 5,075 2,415 24 307 Nov. 6— 1,349 4,475 1,747 5,016 2, 222 293 1928 Nov. 13.. 1,301 4,478 1,771 5,002 | 2,212 293 Jan. 7 1,593 4,377 1,776 4,951 2, 466 30 299 Nov. 20.. 1,299 4,479 1,753 4,985 ! 2,219 294 Jan. 14 1,422 4,376 1,784 4, 811 2,441 27 303 Nov. 27_. 1,309 4,477 1,750 5,008 ! 2,203 293 Jan. 21 1,329 4,376 1,781 4,729 2,424 27 306 Jan. 28 1, 258 4,380 1,775 4,690 2,391 24 308 Dec. 4__. 1,358 4,475 1,747 5,038 2, 217 294 Dec. 11.. 1,374 4,480 1,758 5,082 2, 208 293 Feb. 4 1,271 4,374 1,770 4,096 2,387 23 309 Dec. 18.. 1,431 4,478 1,765 5,126 I 2,229 295 Feb. 11 1,267 4,376 1,775 4,708 2,378 24 308 Dec. 25.. 1, 539 4,484 1,729 5,221 ! 2,205 297 Feb. 18.... 1,272 4,376 1,777 4.710 2,372 33 310 Feb. 25.... 1,247 4,373 1,780 4,714 2,351 23 312 1927 Jan.1 1,482 4,488 1,748 5,141 2,231 296 Mar. 3 1,285 4,362 1,772 4,719 2,366 23 311 Jan.8 1,378 4,499 1,775 5,023 2,284 293 Mar. 10— 1,292 4, 357 1,772 4,718 2,369 23 311 Jan. 15.... 1,198 4,518 1,764 4,908 2,251 293 Mar. 17—_ 1,308 4,335 1,791 4,705 2,392 24 313 Jan. 22.... 1,124 4,537 1,748 4,850 2,237 294 Mar. 24.... 1, 262 4,324 1,792 4, 699 2,342 25 312 Jan. 29— 1,049 4,551 1,755 4,823 2,213 295 Mar. 31— 1,309 4,310 1,775 4, 705 2,353 23 313 Feb. 5... 1,052 4, 561 1,754 4,831 2,219 294 Apr. 7 1,407 4,304 1, 779 4,751 2,397 28 314 Feb. 12. 1,028 4,571 1,763 4,836 2,204 293 Apr. 14.... 1,392 4,301 1,783 4, 735 2,400 25 316 Feb. 19.. 1,037 4,578 1,761 4,832 2,219 294 Apr. 21.... 1,409 4,280 1,775 4,718 2,401 28 317 Feb. 26.. 1,044 4,585 1,751 4,859 2,203 296 Apr. 28.... 1,397 4,267 1,773 4,710 2,382 26 319 Mar. 5... 1,082 4,588 1,741 4,875 2,218 296 May 5 1,459 4,263 1,772 4,738 2,407 30 319 Mar. 12.. 1,052 4,593 1,761 4,861 2,222 298 May 12 1,456 4, 236 1,781 4,726 2,401 27 319 Mar. 19.. 1,075 4,594 1,776 4,852 2,271 298 May 19 1,477 4,194 1,784 4,717 2,391 26 321 Mar. 26.. 1,028 4,599 1,787 4,848 2,246 298 May 26— 1,472 4,180 1,781 4,709 2,377 26 321 Apr. 2... 1,067 4,598 1,759 4,866 2,240 298 June 2 1,531 4,165 1,774 4,742 2,379 27 322 Apr. 9__. 1,096 4,599 1,767 4,893 2,249 298 June 9 1,525 4,148 1,784 4,737 2,372 27 321 Apr. 16.. 1,110 4,600 1,758 4,894 2,251 298 June 16 1, 556 4,106 1,793 4,728 2,377 27 323 Apr. 23.. 1,089 4,602 1,754 4,869 2, 251 299 June 23 1,499 4,103 1,803 4,727 2,325 29 324 Apr. 30.. 1,049 4,605 1,767 4,855 2,246 299 June 30 1,522 4,105 1,794 4,740 2,326 28 327 May 7... 1,083 4,629 1,769 4,870 2,261 July 7 1,662 4,110 1,769 4,816 2,369 33 323 May 14.. 1,004 4,684 1,774 4,861 2,264 299 July 14 1,558 4,115 1,790 4,769 2,337 31 326 May 21.. 1,002 4,681 1,764 4,850 2,262 300 July 21 1,480 4,114 1,791 4,720 2,308 29 328 May 28.. 1,057 4,627 1,766 4,846 2,270 301 July 28 1,453 4,115 1,778 4,696 2,294 27 329 June 4... 1,127 4,608 1,770 4,880 2,289 300 Aug. 4 1,486 4,113 1,770 4,714 2,298 28 329 June 11_. 1,100 4,614 1,771 4,843 2,311 298 Aug. 11 1,490 4,115 1,760 4,733 2,274 28 330 June 18.. 1,060 4,615 1,789 4,823 2,306 300 Aug. 18— 1,472 4,119 1,784 4,744 2,271 28 332 June 25.. 1,034 4,600 1,780 4,803 2,275 301 Aug. 25 1,474 4,120 1,780 4,752 2,259 29 July 2.. 1,130 4,589 1,771 4,848 2,305 299 Sept. 1 1.506 4,123 1,779 4,769 2,278 29 332 July 9_. 1,194 4,577 1,780 4,911 2,307 37 296 Sept. 8 1,556 4,123 1,782 4,818 2,284 25 334 July 16.. 1,108 4,570 1,784 4,845 2,287 297 Sept. 15 1,581 4,124 1,788 4,797 2,324 36 336 July 23.. 1,077 4,573 1,780 4,819 2,283 297 Sept. 22 1,600 4,126 1,792 4,789 2,335 55 July 30.. 1,053 4,578 1,778 4,812 2,270 297 Sept. 29. 1,582 4,128 1,785 4,806 2,312 38 Aug. 6 1,101 4,579 1,775 4,838 2,291 30 296 Oct. 6 1,634 4,125 1,783 4,836 2,334 33 339 Aug. 13 1,088 4,583 1,785 4,843 2,286 297 Oct. 13 1,637 4,128 1,795 4,852 2,331 34 343 Aug. 20 1,102 4,586 1,777 4,851 2,287 296 Oct. 20 1,634 4,136 1,789 4,846 2,340 30 343 Aug. 27 1,086 4,588 1,777 4,854 2,272 295 Oct. 27 1,598 4,139 1,779 4,824 2,324 26 342 Sept. 3 1,124 4,589 1,779 4,885 2,282 30 295 Nov. 3 1,625 4,143 1,782 4,834 2,342 30 344 Sept. 10 1,194 4,593 1,773 4,935 2,300 295 Nov. 10— 1,662 4,148 1,783 4,865 2,347 35 346 Sept. 17 1,204 4,584 1,783 4,916 2,323 299 Nov. 17.... 1,652 4,158 1,784 4,852 2,357 39 346 Sept. 24 1,164 4,582 1,776 4,909 2,284 300 Nov. 24.... 1,597 4,160 1,797 4,835 2,346 25 348 Oct. 1 1,203 4,574 1,770 4,917 2,299 302 Dec. 1 1,728 4,138 1,785 4,908 2,368 26 349 Oct. 8 _. 1,254 4,571 1,770 4,942 2,322 302 Dec. 8 1,790 4,131 1,777 4,947 2,375 28 348 Oct. 15 1,267 4,573 1,782 4,951 2,332 303 Dec. 15.... 1,794 4,140 1,784 4,968 2,369 31 350 Oct. 22 1,238 4,572 1,784 4,929 2,324 304 Dec. 22.... 1,818 4,149 1,808 5,060 2,332 30 353 Oct. 29 1,250 4,555 1,771 4,909 2,328 304 Dec. 29.... 1,882 4,148 1,795 5,074 2,366 30 355 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

438 FEDERAL RESERVE BULLETIN JULY, 1929 Table HI.—RESERVE BANK CREDIT AND FACTORS IN Table m.-RESERVE BANK CREDIT AND FACTORS IN CHANGES, BY WEEKS, 1922-1929—Continued CHANGES, BY WEEKS, 1922-1929—Continued [Average of daily figures. In millions of dollars] [Average of daily figures. In millions of dollars] F d a e c c t r o e r a s s o e f Factors of increase F d a e c c t r o e r a s s o e f Factors of increase en W di e n e g k — R c b e r a s e e n d r k i v t e M s t g t a o o o r l n c y d k e- u T r s r e y o t r i a n n e u n c a c g t- u d y s- r- M i c n t o u i o c l n a n i e r - y - r M e a b b s b n a e e a e c n m r l r e k - v s - e m c a N b l b n i e e n o a e c m a g l n r e - r - s - - p f U c u e i e n a t n n a d p e d d l - x s - - end W in e g e — k R c b e r a s e e n d r k i v t e M s t g t a o o o r n l c y d k e- u T r s r e o y t r i a n n u e c n g c a t- u d y s- r- M i c n t o u i o c l n a n i e r - y - r M e a b b s b n a e e a e c n m r l r e k - v s - e m c a N b l b i n e e n o a e c a m g n l r e r - - s - - p f U c u i e e a t n n n d a p d e d l - x s - - 1929 1929 Jan.5 1,832 4,126 1,785 4,932 2,429 32 350 Apr. 6._ 1,446 4,193 1,790 4,707 2,320 37 365 Jan.12 1,676 4,111 1,789 4,793 2,402 32 349 Apr. 13 1,363 4,220 1,801 4,679 2,310 31 364 Jan.19 1,593 4,110 1,789 4,722 2,387 32 351 Apr. 20 1,382 4,236 1,775 4,676 2,314 36 367 Jan.26 1,509 4,117 1,790 4,677 2,358 30 351 Apr. 27 1,347 4,239 1,776 4,664 2,297 32 369 Feb. 2 1,501 4,123 1,786 4,664 2,364 29 353 May 4 1,372 4,262 1,776 4,689 2,311 42 368 Feb. 9 1,512 4,130 1,781 4,675 2,366 28 354 May 11 1,332 4,286 1,784 4,687 2,312 34 369 Feb. 16 1,522 4,143 1,789 4,689 2,377 33 355 May 18 1,292 4,298 1,797 4,677 2,310 30 370 Feb. 23 1,476 4,152 1,786 4,691 2,339 27 357 May 25 1,262 4,300 1,787 4,671 2,279 28 371 Mar. 2 1,503 4,154 1,776 4,706 2,343 26 358 June 1 1,295 4,301 1,785 4,703 2,276 30 372 Mar. 9 1,522 4,157 1,775 4,723 2,341 32 358 June 8 1,319 4,303 1,783 4,704 2,298 30 373 Mar. 16 1,495 4,160 1,802 4,703 2,362 31 361 June 15 1,313 4,307 1,792 4,675 2,331 30 376 Mar. 23 1,423 4,168 1,808 4,692 2,318 27 362 June 22 1,294 4,313 1, 778 . 4,669 2,308 31 377 Mar. 30 1,451 4,179 1,788 4, 702 2,317 36 363 June 29 1,320 4,321 1,761 4,683 2,314 28 377 RESERVE BANK CREDIT OUTSTANDING—YEARLY AVERAGES The components of reserve bank credit out- This table is in all respects comparable to, standing, on the basis of annual averages of and may be used in connection with, Table I of daily figures, are presented in the following the foregoing article on Reserve Bank Credit— table. In addition to showing the composition Factors in Changes. The Annual Report of the of the bill and security holdings of the Federal Federal Reserve Board for 1928 gives in Tables reserve banks, the table gives figures of amounts 1 and 3 similar figures on a monthly and weekly due from foreign banks and of reserve bank credit basis, respectively, for the entire periods for extended through float. which they are available. RESERVE BANK CREDIT OUTSTANDING, BY YEARS, 1915-1928 [Averages of daily figures. In thousands of dollars! Bills and securities held by Federal reserve banks Reserve bank Due Year ou c t r i s e n t d g a i n t d- B co il u ls n t d e i d s- 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 se O cu t r h i e ti r es F on l o o r a g e n o ig s ld n f b o f a r r o e n m i k g s n b R an e k s e t f r l v o e at 1915 i 60,000 24,329 10, 370 7,911 17,391 1916 1163,104 24,108 65, 364 47,107 26, 525 1917 521, 459 192, 768 149,806 89,087 6,946 2 82,852 1918 1, 719, 917 1,130, 989 287, 227 134, 399 354 530 » 166,418 1919 2, 623, 358 1, 904, 706 323, 438 254,051 2 2,772 2 138,390 1920 3, 390, 403 2, 522, 460 385, 873 323, 698 793 » 157, 580 1921 2, 202,137 1, 800, 534 91, 556 264, 014 44 692 45, 298 1922 1,226, 230 572,184 158,695 454, 265 67 699 40, 320 1923 . 1, 204, 652 734, 850 226, 546 186, 407 84 701 56,065 1924 996, 243 372, 507 172, 683 401,487 1,210 478 644 47,233 1925 . 1,194, 647 479, 770 287, 633 358, 780 2,476 9,221 671 56,095 1926.. 1,257,416 567, 801 281,204 349. 475 3,397 4,137 675 50, 728 1927 1,174,108 441, 740 263,459 416, 986 1,516 8,532 41, 876 1928.. . . . .. 1, 504,194 838, 713 327,943 297, 735 2,118 603 37, 081 i Exclusive of reserve bank float for which figures are not available. 2 Includes Government overdrafts. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

439 JULY, 1929 FEDERAL RESERVE BULLETIN STATISTICAL WORK OF THE FEDERAL RESERVE BOARD AND BANKS IN 1928-29 During the past year the statistical work of through the gold settlement fund), with special the Federal reserve system has continued to emphasis upon factors affecting and affected develop according to the same principles and by changes in member bank reserve balances. in the same general direction as in other recent It is illustrated by certain tables and charts years.1 Studies pursued have related in con- published currently in the FEDERAL EESERVE siderable part to the general credit situation BULLETIN and discussed for the country as a and the operation of the money market. whole elsewhere in this issue. Corresponding Reserve-bank credit outstanding.—A meas- analysis for the individual Federal reserve ure of the total volume of reserve-bank credit district has had special attention during the outstanding that is more inclusive and more past year at the Federal Reserve Bank of San accurate than that afforded by " total bills Francisco and also, as in previous years, at the and securities" has been developed and is Federal Reserve Bank of New York. Work now published in the board's annual reports along similar lines has also been done at other and currently in the FEDERAL RESERVE BUL- Federal reserve banks, particularly Boston and LETIN. The items which it includes, in addition Philadelphia. to total bills and securities, are balances with Gold.—Averages of daily figures for the monecentral banks in foreign countries and reserve- tary gold stock of the United States, developed bank float, as explained elsewhere in this issue. as part of the elements analysis, have been The new figures are published only on the carried back as far as the data permit—on a basis of daily averages for the week, month, weekly basis to the beginning of 1922 and on a and year, which are more representative of monthly basis to August, 1917. A monthly actual conditions than figures for single analysis of changes in the monetary gold stock, dates. Corresponding figures for the individual on the basis of end-of-month figures, has been Federal reserve district, where account must published in the BULLETIN since last December; be taken both of the new items included and it takes account not only of changes arising also of bills or securities purchased by the from gold exports and gold imports, but also of reserve bank outside the district, or of bills earmarkings and withdrawals from earmark bought within the district and alloted to other and of changes reflecting domestic production reserve banks, are in process of development. and consumption of gold. Current figures of Particular progress along this line has been gold exports and imports, by countries, more made by the Federal reserve banks of New comprehensive and up to date than were pre- York and San Francisco. viously available, have been published in the These statistics are prerequisite to accurate BULLETIN since last October; these figures take and exhaustive analysis of the influences, for account not only of movements through the the country and for each district, which affect port of New York, but also of movements and are affected by changes in the volume of through the two other customs districts—St. reserve-bank credit outstanding. The identi- Lawrence and San Francisco—through which fication and classification of these influences, gold exports and imports are most often of their measurement, and the exploration by substantial volume. statistical methods of their interaction among The metallic gold holdings of central banks themselves has been an important part of the and governments in 40 countries, previously statistical work of the Federal Reserve Board published in the BULLETIN annually, usually and banks for several years; it is commonly in April, have since last May been published designated for convenience of reference by the monthly, with separate figures for each of the term "Elements analysis." countries which have held in recent years Elements analysis.—Standard procedure has more than $90,000,000 in gold. This informabeen developed for making this analysis, which tion is obtained in almost all cases from official recognizes in particular the persistent influence sources, and measures for obtaining more of such important elements in the credit promptly from abroad the most recent figures situation as changes in currency demand and available are in process of development. the direction and size of gold movements (or Money in circulation.—Averages of daily their equivalent—for the district, transfers figures for United States money in circulation, developed as part of the elements analysis, i See annual surveys in FEDEEAL RESERVE BULLETIN for July, 1928 have been carried back, on monthly and weekly (pp. 453-455); July, 1927 (pp. 464-465); July, 1926 (pp. 494-500); July, basis, as far as the data permit. Characteris- 1925 (pp. 471-474). 57856—29 2 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

440 FEDERAL RESERVE BULLETIN JULY, 19» tic changes in the demand for currency from vised to bring the back figures into comparaday to day during the week, the course of bility with current figures. seasonal changes as indicated by daily and The weekly figures of condition returned by weekly figures, and certain year-to-year changes reporting member banks in leading cities have in money in circulation were described in the been systematically compared with the figures BULLETIN for last October. District data on reported by the same banks on recent call currency demand were presented in November, dates, and whenever important discrepancies with an explanation of the method by which have appeared arrangements have been made the statistics are derived—with special empha- to reconcile them and to bring the current sis on the fact that the series, while measuring weekly reports into line with the call reports changes in currency demand as this demand is (Forms 105 and 2130). This procedure, tofelt at the individual Federal reserve bank, do gether with the necessity for taking account not measure at present either the amount of of changes in the weekly reporting group that money in circulation within a given Federal have arisen through mergers, consolidations, reserve district or changes therein. etc., has required revision of back figures for Member and nonmember bank credit.— the reporting member banks; figures for 1927 Continued study during recent years of changes and 1928 that are comparable with those curin the banking and credit situation, both from rently reported are given for the country as a the national and the district points of view, whole in the board's latest annual report. have disclosed the need for more adequate Corresponding series for individual Federal statistics of all banks in the United States, reserve districts appear in that report for loans, including nonmember as well as member investments, and borrowings at Federal rebanks. Figures of the loans and investments serve banks; figures for New York City, other of all banks in the United States, prepared on a leading cities, and individual Federal reserve comparable basis, w^ere published for the life districts have been published in the FEDERAL of the Federal reserve system in the board's RESERVE BULLETIN. annual reports for 1927 and 1928, with corre- Branch banking developments for the year sponding figures by districts back to 1923. ending June 30, 1928, were analyzed in the Similar district figures, altogether inclusive, board's annual report for 1928 and in the have been developed and utilized by the BULLETIN for February, 1929. Federal Reserve Bank of Minneapolis and The Federal Reserve Bank of Chicago has other Federal reserve banks. A tabulation of collected back figures of the condition of the reserve requirements of banks organized Chicago banks, savings deposits of banks under State charters, prepared by the board in reporting this item, commercial paper, and cooperation with the Federal reserve banks, bankers' acceptances. was published in the BULLETIN for last Money rates.—A table showing Federal re- November. serve bank buying rates on acceptances, of Since October of last year member banks which current publication was begun in the have been making their quarterly condition BULLETIN for May, 1927, has been supplereports on a revised schedule (board's Form mented by a table in the board's annual report 105 and comptroller's Form 2130, Revised giving the corresponding figures since 1919; August, 1928) developed largely for the these data have now been made public for the purpose of making the reports more illu- whole period during which the reserve banks minating with reference to the general credit have been buying acceptances. situation. Current figures have accordingly The Federal Reserve Bank of New York has been reported on call dates upon a basis that published during the year frequent analyses of is in respect to certain items somewhat differ- the principal factors affecting the movement ent from that which prevailed previously. of rates in the call loan market, including in For example, acceptances of other banks sold particular an account of the effect of year-end with indorsement of reporting bank, previously withdrawals by out-of-town lenders. Average reported in loans, are now reported separately rates earned by member banks, as distinguished and no longer included in loans; steps have from prevailing rates charged, have continued also been taken to insure that the minority of to be shown in the analyses of the earnings and the member banks which previously reported expenses of member banks that have been real estate mortgages in their investments in- published in the BULLETIN, and in more detail stead of in their loans will report these hold- in the publications of those reserve banks ings in their loans. The tables published in which have made detailed analyses of member the board's annual reports, covering the life bank earnings and expenses; these are enuof th© Federal reserve system, have been re- merated elsewhere in this article. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

JULY, 1929 FEDERAL RESERVE BULLETIN 441 Country banks.—In the course of studies Federal reserve banks of Boston, New York, made by the Federal Reserve Bank of Min- Philadelphia, Chicago, Dallas, and San Franneapolis, with special reference to the position cisco. The Boston study, based on detailed of country banks, figures have been published volunteer reports from certain member banks, showing how the total credit extended by is more detailed than any of the studies which these banks is divided, with particular reference have been made on the basis of the official to the part represented by loans to customers. semiannual reports of member banks. The The trend of the deposits of country banks in studies made by the Federal reserve banks of the Minneapolis district during recent years Boston, New York, and Philadelphia took has also been depicted, with separate figures special account of a classification of banks for the State of Minnesota, for different sections according to the proportion of total deposits of the Minneapolis district—e. g., mixed farm- represented by time deposits. A Chicago ing, wheat raising, etc.—and according to the study related in part to State banks, including size of the community in which the bank is norimember banks in certain States. In a San located. Francisco study attention is given to charac- Statistics of production, employment, and teristic differences in earnings and expenses as trade.—Certain revisions have been made between branch operating and nonbranch during the year in the board's index numbers operating banks. of production and trade which have been cur- Monetary reconstruction abroad.—The FEDrently chronicled in the BULLETIN. The in- ERAL RESERVE BULLETIN for August, 1928, dexes of factory employment and factory pay after the return of France to a gold basis, conrolls are in process of revision. Index numbers tained a review of the world's monetary reconof mail-order house sales and sales by apparel struction during recent years, supplemented by chains, candy chains, and cigar chains have a chronological summary of measures underbeen discontinued, largely in consequence of taken during the six years 1923-1928 by the the fact that the basic data available for use principal countries of the world in reestablishin the construction of these indexes have ing a fixed relation between their currencies become unsuitable for the purpose. and gold. At the same time an analysis of the The measurement of the volume of pro- British currency and bank notes act of 1928, duction in the individual Federal reserve was published. district, primarily in terms of physical volume, Central banks in foreign countries.—The is illustrated by material published during legal reserve requirements of 34 foreign central the year in the monthly reviews of the Federal banks were summarized in the BULLETIN for reserve banks of Cleveland, Minneapolis, and last August, with specific reference to the extent San Francisco. to which the laws require reserves to be held In some of the districts (e. g Boston) there in gold or permit them to be held in the form v has been some further curtailment of the of foreign exchange. Detailed balance sheets, number of wholesale firms reporting sales to the supplementing the abbreviated statements of Federal reserve bank, but in other districts condition that appear regularly in the BULLE- (e. g., Kansas City, Dallas, San Francisco) TIN, have been published for the Bank of Engthe list of reporting firms has been somewhat land (new balance sheet), the Bank of France increased or the reporting service otherwise (new balance sheet), and the central banks of improved. The Federal Reserve Bank of Switzerland, Austria, Italy, Hungary, and Chile. Philadelphia has developed new district indexes Miscellaneous.—The Federal Reserve Bank of wholesale trade in selected lines. of New York published during the year a com- There has been no important extension parison between the increase in velocity of during the year in the retail trade reporting New York City deposits and the increase in service. The quality of the reported figures, loans made to brokers by lenders other than however, has been improved in some districts, banks. The Federal Reserve Bank of Philamore especially in the Philadelphia and San delphia prepared material, including a chart, Francisco districts. relating to the eligibility of paper for redis- Earnings and expenses of member banks.— count at Federal reserve banks. Compilation The publication in the BULLETIN of certain and publication of figures relating to the earnratios between the earnings and expenses of ings of corporations has been continued by the member banks and their total earning assets, Federal reserve banks of New York, Philadeletc., by Federal reserve districts, was continued phia, and Cleveland. The Federal Reserve during the year, Special studies along similar Bank of Minneapolis has developed further its lines but in more detail were published by the estimates of farm income. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

442 FEDERAL RESERVE BULLETIN JULY, 1929 BALANCE OF INTERNATIONAL PAYMENTS OF THE UNITED STATES The Department of Commerce has recently terms of many currencies and closed with published its compilation of the balance of dollar exchange generally at a premium. In the second half year we thrust a "billion-dollar international payments of the United States transfer problem77 upon the outside world by in 1928. (Trade Information Bulletin No. 625— increasing our favorable trade balance by 66 pages.) It includes, in addition to a full $452,000,000 and reducing our underwriting of discussion of the data and methods used in foreign securities by some $610,000,000. That making the estimates, revised figures for but few people even observed the phenomenon previous years, as shown by the accompanying indicates that "problems" of this type are very likely to be exaggerated. table. The study is introduced with a fore- One of the most useful results of these surveys word by the Secretary of Commerce, R. P. is a fairly accurate comparison of the import- Lamont, which is as follows: ance of the various items from the foreign- America's international transactions during exchange viewpoint. For example, in discus- 1928, as set forth herein, can be summarized sing the war-debt payments and the problem roughly in a few words. Foreigners had to of transferring them, several interesting compay us, on balance, $1,109,000,000 for com- parisons are suggested: Their total was less modities and bullion, $882,000,000 for interest than the net remittances to foreign countries on our private investments and deposits abroad, made by our immigrants and our religious and $210,000,000 for war-debt payments, and charitable institutions. It was just two-fifths $67,000,000 for miscellaneous items. (Total, of our net tourist expenditures abroad. It was $2,268,000,000.) These receipts from for- less than a fourth of what foreigners paid us eigners were offset by the following net sums in interest on our private loans and investments paid to foreigners: Our new loans and invest- abroad, and not much more than a fifth of our ments abroad, $962,000,000; our tourist expen- net export of capital. ditures in foreign countries, $525,000,000; our The investigation shows that, as a creditor interest payments to foreign investors and nation, we are no such giant as is often supdepositors, $359,000,000; our immigrant and posed. War debts aside, we are a net creditor missionary remittances, $241,000,000; our nation in the amount of probably less than freight payments to foreign carriers, $84 000,- $9,000,000,000. The growth of New York as 000; and foreign payments by the United States a world financial center has put us in net debt, Government, $57,000,000. (Total, $2,228,- on short-term account, to the extent of some 000,000.) The difference ^ between the two $1,638,000,000; and foreign long-term capital totals is caused by errors in some of the esti- invested in the United States is now over mates. $4,000,000,000. The year was notable for a number of Of the several statistical services instituted records in our international transactions. New in this department under the personal direction records for all time were set by tourist expen- of Herbert Hoover, none has been more widely ditures, by our net gold export, by the yield of used than these annual reports upon the "in- American investments abroad, and probably visible" items in our foreign trade. The results by the net outflow of private capital. The are of more than national concern. The posivolume of net new long-term investments in tion of the dollar in world finance is now such the United States by foreigners, $481,000,000, that these investigations of dollar-exchange has certainly not been equaled since pre-war operations are of world-wide interest. It is, years. Our excess of merchandise exports therefore, especially gratifying to me that over merchandise imports ($1,038,000,000) this important type of financial investigation was the largest since 1921. has been brought to so high a standard in this These record-breaking movements could country—an accomplishment due largely to the hardly fail to upset exchange rates. The year cooperation of a host of private and official opened with dollar exchange at a discount in agencies. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

443 JULY, 1929 FEDERAL RESERVE BULLETIN BALANCES OF INTERNATIONAL PAYMENTS OF THE UNITED STATES, CALENDAR YEARS 1922-1928 [In millions of dollars] 1928 Class of transactions (gross or net) 1922 1923 1924 1925 1926 1927 (unrevised) COMMODITIES (ADJUSTED) Exports _ 4,021 4,368 4,834 5,177 5, 044 5,091 5,334 Imports 3,432 4,162 3,952 4,544 4,766 4,508 4,497 +589 +206 +882 +633 +278 +583 +837 Balance of trade (adjusted) MISCELLANEOUS INVISIBLE ITEMS -83 -64 -84 -95 -66 | -84 Freights: Ocean, Great Lakes, and railway (net) _ Expenditures by American tourists: -100 -131 -159 -185 -201 -231 | -264 Canada and Mexican frontier _ -345 -313 -374 -400 -422 -465 i -518 Overseas.. _ _ _ +87 +104 +107 +112 +148 +163 ! +168 Expenditures by foreign tourists in United States.. _. +53 +60 +53 +63 +69 +89 I +89 Ocean-borne passenger traffic i +555 +594 +635 +689 +740 +800 | +882 Interest on American private funds abroad (long and short term) -144 -180 -192 -229 -268 -281 ! -359 Interest on foreign funds in United States (long and short term) +32 +92 +23 +26 +35 +46 ! +50 War-debt receipts (principal) _ +126 +167 +160 +160 +160 +160 I +160 War-debt receipts (interest)... _ -46 -66 -53 -61 -49 -29 ! -57 Other governmental transactions (net) _ -255 -229 -229 -235 -218 -208 I -189 Immigrant remittances (net) -75 — 70 -55 -50 -46 -49 ! -52 Charitable and missionary contributions ._-_ +46 +57 +68 +74 +74 +74 i +67 Other items (net)2 _ +444 +20S +802 +513 +205 +588 +730 Total, commodity and miscellaneous (net) _ NEW PRIVATE LOANS, INVESTMENTS, AND DEPOSITS -823 -25S -869 -872 -972 -1,339 Net increase in American long-term investments abroad (par value) +101 +43 | +125 | +119 +121 +119 +122 Deduct bond discounts and underwriters' commissions on above Net cash payments for above -722 -210 -744 -753 -687 -853 -1, 217 Net increase in long-term foreign investments in United States. +37 +240 +11 +193 +147 +158 +481 Change in net debt of American banks to foreigners _ +375 +3 +216 -61 +359 -226 Net capital movement (long and short term) _ -310 +33 -517 ) -181 -695 i -962 OTHER BALANCING ITEMS Gold shipped or earmarked (net). -234 -295 -216 +102 -72 +154 j +272 +40 +50 -20 -30 Shipments of American paper money (net). +60 +4 -49 +36 "+48" ~~-47~f "-40 Add for net discrepancy due to inaccurate figures 1 Largely a deduction from American tourist expenditures overseas. 2 Includes insurance, motion-picture royalties, cable charges, Canadian electric power, press subscriptions, patents and copyrights, and advertising. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

444 FEDERAL RESERVE BULLETIN JULY, 1929 NATIONAL SUMMARY OF BUSINESS CONDITIONS Production and distribution of commodities and were 2 per cent larger than in the same continued at a high rate in May. Wholesale month in the preceding year. commodity prices declined further during the Prices.—Wholesale prices continued in May month, but more recently showed some ad- the downward movement of the previous vance. Total loans and investments of mem- month, according to the index of the United ber banks in leading cities have increased since States Bureau of Labor Statistics. The dethe latter part of May. cline of the general level was chiefly the result Production.—Industrial production con- of price declines in agricultural products and tinued large in May and was accompanied by their manufactures, although prices of other a further increase in the volume of factory products also declined slightly. Prices of cotemployment and pay rolls. Output of the ton and grains continued sharply downward in iron and steel industry increased further, and May, and there were marked declines in the shipments of iron ore during May were the prices of hogs, wool, and lambs. Prices of largest for that month of any recent year; pro- mineral and forest products and their manuduction of pig iron, steel ingots, and coke was factures averaged lower in May than in April, at record levels, and semifinished and finished particularly those of copper, lead, and tin; steel was produced in large volume. During petroleum and gasoline, and iron and steel the first half of June steel operations remained advanced in price; while in lumber there was close to capacity, although some decline from a slight decline. the high rate of May was reported. Output Between the latter part of May and the of automobiles, which has been in unusually middle of Juoe prices of cattle and hides large volume since the beginning of the year, advanced sharply, and there were increases in showed a slight reduction in May. Copper the prices of grains, hogs, and cotton. production at mines, smelters, and refineries Bank credit.—Total loans and investments decreased during May but continued large. of member banks in leading cities, which were Combined stocks of refined and blister copper at a low point for the year in the latter part at the end of May were the largest since 1927. of May, increased considerably during the sub- Zinc, lead, petroleum, and bituminous coal sequent three weeks and on June 19 were were produced in larger volume than in April, about $250,000,000 larger than a year ago. while the output of anthracite coal declined. The recent increases reflected a large growth Output in the textile industries continued large in the volume of loans on securities, which had in May, although there was a decline in activity declined during the preceding two months, and in silk mills. Meat production, while larger a further growth in loans chiefly for commercial than in April, increased less than is usual at and agricultural purposes. Investments dethis season. clined during most of the period and on June Value of building contracts awarded declined 19 were at a level about $450,000,000 below in May and was below last year's level, the that of the middle of last year. decrease in comparison with 1928 being chiefly Volume of reserve bank credit outstanding, in residential building. During the first two after increasing in the latter part of May, weeks in June contracts averaged 15 per cent declined in June and, following the Treasury less than in the same period in 1928. financial operations around the middle of the The June 1 crop summary of the Depart- month, showed a small increase for the four ment of Agriculture indicated an increase of weeks ending June 19. Discounts for member $43,000,000 bushels, or more than 7 per cent, banks increased, while holdings of acceptances in the crop of winter wheat. The condition of and United States securities showed a decline. spring wheat, barley, and hay was reported to There were some further additions to the be better than a year ago. country's stock of monetary gold. Distribution.—The volume of freight ship- Open-market rates on collateral loans dements increased seasonally in May and con- clined in June, while rates on prime commercial tinued substantially above the total of a year paper and 90-day bankers' acceptances reago. Department-store sales increased in May mained unchanged. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

445 FEDERAX RESERVE BULLETIN JULY, 1929 RESERVE BANK CREDIT RESERVE BANK CREDIT OUTSTANDING AND PRINCIML FACTORS IN CHANGES MILLIONS Of DOLLABS MILLIONS OF DOLLARS 5400 Member Bank Reserve Balances 1925 1926 1927 1928 1929 Based on weekly averages of daily figures; latest figures are for week ending June 29 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

446 FEDERAL RESERVE BULLETIN JULY, 1929- RESERVE BANK CREDIT OUTSTANDING AND PRINCIPAL FACTORS IN CHANGES [Averages of daily figures. In millions of dollars] Reserve bank credit outstanding Bills and securities held by Federal reserve banks Member Monetary Money in bank Month or week gold stock circulation reserve vo T lu o m ta e l l Total» co B m u b i e l n a l m t s n e k d b d i s e s f r o - r b B ou il g ls ht se U S c n t u a i r t t i e e ti s d es balances 1928—May 1,472 1,442 836 349 257 4,207 4,722 2,388 June 1,531 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 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 January _ __. 1,613 1,570 859 473 229 4,115 4,748 2,387 1929—February _ ___ 1,502 1,468 385 184 4,143 4,686 2,357 March _ 1,481 1,442 265 197 4,166 4,709 2,337 April 1,377 1,338 1,004 156 165 4,226 4,679 2,308 May _.._ 1,303 1,265 956 145 153 4,292 4,684 2,296 June 1,317 1,268 978 99 179 4,311 4,687 2,314 Week ending- May 25 1,262 1,229 935 134 152 4,300 4,671 2, 279 June 1 1,295 1,264 991 120 145 4,301 4,703 2,276 June 8 1,319 1,275 1,000 112 153 4.303 4,704 2,298 June 15 _ 1,313 1,263 945 109 198 4,307 4,675 2,331 June 22 1,294 1,234 941 91 189 4,313 4,669 2, 308 June 29 _ 1,320 1,280 1,004 178 4,321 4,683 2,314 Increase or decrease of week ending June 29 compared with week ending— June 22 __ _ +26 +46 +63 —5 -11 +8 +14 +6 May 25 _ +58 +51 +69 -48 +25 +22 +12 +35 June 30, 1928_._ -202 -212 -43 -138 -43 +216 -57 -12 1 Includes total bills and securities, amounts due from foreign banks, and reserve bank float. * Including "other securities'* and foreign loans on gold. 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 month Gold Month m a s t t o o o e n c f n t k h d Total T n i h e m t r o o p g r u o o g r l t d h T m o h a e p r a o r e k r u r - i a g n - h g d T p o h r t m i o i tr o d o e n u u s , c t g i h - c 1929 export tions etc.* January- From or to— June May May 1927—June 4,587 -20.9 +12.8 * -36.7 +3.0 July 4, 580 -7.5 +8.9 2-23.1 +6.7 August 4,588 +8.5 +6.4 -2.5 +4.6 Im- Ex- Im- Ex- Im- Ex- September. 4,571 -17.5 -11.5 -9.0 +3.0 ports ports ports ports ports ports October 4,641 -30.1 -8.6 —25.0 +3.4 November- 4,451 -89.7 -53.2 -40.0 +3.5 December.. 4,379 -71.7 -67.4 -8.5 +4.2 Total (12 mos.). -112. 7 +6.2 -160.1 +41.2 England 9,285 3 29,290 France .. - 16 3 52 1928—January 4,373 -6.0 i •• +5.5= +2.3 Germany 15, 692 46, 761 686 February 4,362 -11.2 +2.9 -3.0 Italy- 3 March 4,305 -57.6 +35.8 +1.5 Netherlands 5 April 4,266 -38.7 +45.7 +6.8 Canada 5,008 29 2,941 34 51, 975 128 May 4,160 -105.7 -26.5 +2.5 Central America 59 250 64 351 450 June 4,109 -51.0 +30.1 -1.2 Mexico 964 263 462 160 2,546 179 July 4,113 +3.4 +60.9 +6.4 Argentina 14, 502 4,000 15, 675 August 4,123 +10.3 +5.9 +3.7 September 4,125 +2.1 -1.2 +2.8 Chile 52 72 249 October _.. 4,142 +17.3 +1.2 +2.8 Colombia - 108 124 471 November 4,128 -14.0 -25.0 +4.3 Ecuador 113 117 566 December 4,141 +13.2 -15.7 +5.6 Peru 159 197 784 Total (12 mos.) _ -237.9 -392.0 +119. 6 +34.5 Venezuela 14 28 200 142 1,400 1929—January- 4,127 -14.4 +47.1 -65.0 +3.5 B C r h i i t n is a h I a n n d d ia Hong 74 A M J M F u e p a a n b r y r e i r c l u h ary. 4 4 4 4 4 , , , , , 1 1 3 2 3 5 8 2 0 6 3 8 5 1 0 + + + + + 2 3 7 2 4 6 4 2 3 0 . . . . . 4 4 4 6 6 + + + + + 2 2 3 2 2 5 4 3 0 3 . . . . . 5 6 8 2 1 + + + - 4 1 7 7 8 6 . . . . 5 5 6 1 + + + + + 0 2 0 0 0 . . . . . 9 9 7 1 9 J D A P a h l u K p l i t a l o c o i n p n h th p g e E in r a e c s o t I u s In n la d tr n i i e e d s s s . K . 2 1 1 3 1 2 8 9 5 5 2 1 6 0 2 9 5 4 6 1 3 0 1 1,0 3 4 2 6 9 0 1 5 2,3 3 7 12 5 1 9 4 8 0 0 ^ i For detailed explanation of this figure, which is derived from pre- Total 30,762 550 24,097 467 150, 744 6,500 ceding columns, see BULLETIN for December, 1928, p. 831. 1 Includes effect of earmarking operations connected with gold held abroad by Federal reserve banks. 1 Includes all movements of unreported origin or destination. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

447 JULY, 1929 FEDERAL RESERVE BULLETIN MILLIONS OF DOLLARS MILLIONS OF DOLLARS 2000 2000 RESERVE BANK CREDIT 1500 1500 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 June 29 DISCOUNTS FOR MEMBER BANKS MILL ONS OF DOLLARS MILLIONS OF DOLLARS [Monthly averages of weekly figures. In millions of dollars] 7001 700 DISCOUNTS FOR MEMBER BANKS Reporting member banks in leading cities Member 600 All banks mem- Other leading out- Month ber cities side banks Total Y N C o e it r w y k le in a g d- 500 Total Chi- cities cago 1927—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 January 439 314 94 220 23 125 1928—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 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 December 1,039 799 221 578 91 240 January 891 663 190 473 71 228 1929—February 893 659 131 528 96 234 March 978 740 166 574 121 238 April 991 725 162 563 46 266 May 951 661 145 516 56 290 1925 1926 1927 1928 1929 June 972 670 165 505 64 302 Based on monthly averages of weekly figures Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

448 FEDERAL RESERVE BULLETIN JULY, 1929 PERCENT PER CENT MONEY RATES IN NEW YORK CITY - 5 - 3 - i 1923 1924 1925 1926 1927 1928 1929 FEDERAL RESERVE BANK RATES OPEN-MARKET RATES RATES IN NEW YORK CITY DISCOUNT RATES [Rates on all classes and maturities of eligible paper] Prevailing rate on- Average rate j Average_yield U.S. B N o ew st o F Y n ed o e rk ra l . reserve bank e R J f u f a e l c t y e t 1 i o 5 5 n n J J D u u l l a y y t e 1 1 9 3 e , , s t 1 1 a 9 9 b 2 2 l 8 8 ished Pre ra v t i e o 4 4 u V H s $ Month or week m m p P 4 c a e o r o t p r i n o m m c e t i r h - 6 a e , s l a P a b c d n e a r c a 9 i c r n e m y s 0 e p k ' s s t e - , - d l T o a i a 9 y m n 0 s s e , > N C e a w ll lo n a e R n w e s - a 1 l c T c 3 n e a u a r o r t e n t r t o t e i y a d e f s s s 6 i , - - b T o u r n r e y d as s1 Philadelphia _ 5 July 26, 1928 months Cleveland 5 Aug. 1, 1928 % Richmond 5 July 13, 1928 4^ 1928 A S S M D C K a t h a t a . i n l i n l n a c L l n s a n F a o a e s g t r s u a a a o i p n C s o c . i l i t i s y s c . o . .. _ . 5 5 5 5 5 5 5 J J J M M M M u u u a a a l a l l y y y y y y r . 1 1 1 2 2 6 1 4 9 1 0 , , 4 , , , , , 1 1 1 1 1 9 1 9 1 9 9 9 2 9 2 9 2 2 2 2 9 2 9 8 8 8 9 9 4 4 4 4 4 V ^ H H H 6 J J A S N O u u e u o c n p l g v t e y t o u e e . b m s m . t . e . b b r e e .. r r | 5 -5H 4 -AH 6 5 7 H - - - 5 6 6 7 H H H 6 6 6 7 6 7 . . . . . . 0 2 9 8 4 1 6 1 1 6 0 2 6 6 6 6 7 6 . . . . . . 3 8 0 6 2 9 2 7 5 7 6 8 / I < • 3 4 4 4 4 4 4 L . . . . . . . 3 2 9 1 7 5 2 5 6 6 2 2 0 7 4 7 3 3 3 3 3 3 . . . . . . 5 5 4 4 5 5 4 5 0 8 0 6 December 5J4-5H 7 -7H 8.86 8.60 L3B 3.53 BUYING RATES ON ACCEPTANCES 1929 January 7H 6.94 7.05 . . 6 6 6 3 t.89 [Buying rates at the Federal Reserve Bank of New York] February 5 -5 7.47 7.06 ,64 3.66 March 7?4-8 * 9.80 9.10 .79 3.76 Maturity e R f J f a e u t c e l t y i l o n n Date established Pre ra v t i e ous A J M u p n a r y e il 8 7 8 9. . . 4 7 8 6 9 3 8 8 7 . . . 9 7 8 1 0 9 \ M 4 4 4 5 . . . .0 8 8 8 4 9 4 0 3 3 3 . . . 0 6 7 7 7 1 Week ending- June 1 6.00 6.00 5.06 3.73 1-15 days Mar. 25,1929.. June 8 6.96 6.80 5.04 3.72 16-30 days,. .do. June 15 7.56 7.60 5.08 3.72 31-45 days.. do June 22 7.00 7.00 4.73 3.70 46-60 days.. do June 29 9.79 9.40 4.70 3.69 6 9 1 1 1 2 - 1 - 1 9 -1 2 0 8 0 d 0 d a d a y a y s y s . s . . M Ma a r r d . . o 2 2 5 1 , , 1 19 9 2 2 9 9 . . . . 1 1 S S t t o o c c k k e e x x c c h h a a n n g g e e 9 c 0 a - ll d a lo y a t n im s; e n l e o w a n a s n . d renewal rates. •3 issues—394, 4, and 4H 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 Maturities of 6 to 9 months charged for other classes of bills. 8 Change of issues on which yield is computed. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

JTOT, 1929 FEDERAL RESERVE BULLETIN 449 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 $7,500,000,000. FEDERAL RESERVE BANK CITIES Month Boston Y N o e r w k d P e h lp il h a i - a C la le n v d e- m Ri o c n h d - Atlanta Chicago St. Louis M ap in ol n i e s - K C an it s y as Dallas San c is F c r o an- Prime commercial loans 1928—June m-b 4^4-5 4^-534 4*4-6 bH-bH 5H-6 m-bH *H-bH 4*4-534 5 4*4-6 434-6 July.-.- 5 ~6 5 -bH bU-bH 4^4-6 bH 5 -6 5 -534 5 -534 5 -6 5 -bH 5 -6 4H-bH August 534-53,$ b^-bH bH-bH 5H-6 bH-bH 5H-6 5 -bH 5 -534 5 -6 b -bH 4*4-6 4H-bH September 53^-6 bH bH-bH 5H-6 bH 534-6 bH-bH bH-bH bH-bH bH 5 -6 iH-bH October 5H-6 bH 53^-6*4 5}^-6 534-6 534-6 53-4-5% bH-bH bH-bH 5J4-6 534-6 4H-bH November 5H-6 b\i-bH 5H-6 534-6 5^-6 534-6 534-5% bH-bH 5^-6 bH 5^-6 4H-bH December 53^-6 bH 5^-6 534-6 534-6 534-6 534-6 bH-e 5*4-6 534-6 534-6 4H-bH 1929—January bH-e bH bH-bH 534-6 5M-6 534-6 534-6 bH-e bH-bH bH 534-6H bH-e February bH bH bH-6 5fc-B bH-bU 534-634 534-6 534-6 53/4-6 bH bH-Q 514-6 March bH-bH 534-534 bH-e 5H-6 bH bH-GH 534-6 534-6 53/4-6 bH bH-7 bH-Q April _. bH-bH bH bH-e 534-6 bH-bH 5J4-6 534-6 5M-6 53.4-61/4 534-6 6 bH-e May bH-Q 5%-6 51/2-6 534-6 524-6 bH-eH bH-e 534-6 5H-6H 534-6 6 bH-e June 5M-6 5M-6 5H-6 bH-e 5M-6 5K-6H 5^-6 5M-6 b%-&H 5M-6 6 -6H 5M-6 Loans secured by prime stock-exchange collateral 1928—December 6 -%H 534-6 534-6 bH-e 5?4-6 534-7 6 -7 6 5^-6 5 -6 6 -7 5H-6 1929—January 6 -634 bH-e 534-6 bH-e 5^-6 534-7 6 -7 534-6 bH-e 534-6 6 -7 5H-6 February 6 -en bH-e 51/2-6 534-6 6 bH-7 6 -7 53/4-6 bH-e bH-e 6 -8 53/2-6 March 6 -en 6 bH-e 534-6 534-6 bH-7 6 -7 5%-6 bH-e 5V^-6 6 -8 6 April e -6K 6 bU-e 534-6 6 6 -7 5?4-7 6 -en 5^-6 6 -7 6 May _ 6 -7 6 534-6 534-6 6 5*4-7 634-7 6 -634 6 -6i/4 5M-6 6 -7 6 June 6 -7 6 5^-6 6 6 6 -7 6 -7 6 6 -e% 5^-7 6 -7 6 -7 Loans secured by warehouse receipts 1 1 9 9 2 2 8 9 — — D Ja e n c u e a m ry ber 5 -66 5 5 * * 4 4 - - 6 6 6 6 f 6 5 6 6 b b H H - - e e b b H H - - e e bH-e 6 b b H H - - b b H H b b H H - - e e 6 -7 6 February 6 5?4-6 6 6 6 bn-e bH-e bH-e bH-e bH-e 6 March 6 53/4-6 6 6 6 bH-e b%-en 534-6 534-6 bH-e 6 April 6 6 6 6 6 6 bH-en 534-6 5%-6 bH-e 6 -en May 6 6 6 6 -7 6 -7 6 6 6 51^-6 6 -7 June 6 6 6 6 6 -7 6 6 6 by2-e 6 -7 Interbank loans 1928—December bH-e 5 -6 53^; bH-e H bH-e bH-e 5^-6 5 -6 1929—January bH-e 5H-6 6H\ bH 534-6 bH-e bH-e 534-6 5^-6 -bH 5 -6 February oH 51/2-6 53^-534; bH bH-e 534-6 bH-e bH-e 5H-e 6 5 -6 March bH-e 5^-6 5^-53/4! bH-e 534-6 H bH-e 534-6 bH-e -6 5 -6 April bH-e 51/2-6 53^-53-4 i H 53/4 51/2-6 bH-e bH-6 5^-6 bH-e -6 5 -6 May bH-e 5^4-6 534! bH-e 534 bH-e bH-e 6 e 5 -6 June by2-e 5^-6 by2-e bH-e 6 e FEDERAL RESERVE BRANCH CITIES Loans secured by prime Loans secured by warehouse Prime commercial loans stock-exchange collateral receipts Interbank loans City April, May, June, April, May, June, April, May, June, April, May, June, 1929 1929 1929 1929 1929 1929 1929 1929 1929 1929 1929 1929 Buffalo 6 6 6 6 6 6 534-6 534-6 5H-6 Cincinnati 6 6 2 6 2 6 -734 6 -7 6 -7 6 -7 6 -7 6 -7 534-6 534-6 Pittsburgh 6 534-6 6 6 6 6 6 6 6 6 g Baltimore 51/2-6 534 6 6 6 6 6 6 6 534-6 534-6 5H-6 Charlotte ._ 5}4-6 6 2 6 6 6 6 6 6 6 6 g g J B a i c r k m s i o n n g v h i a ll m e 6 " 6 53^-7 6 5 6 34- - 8 7 5 6 34- - 8 7 6 ^-7 6 6 - - 7 8 6 6 - - 7 8 6 6 - - 7 8 534-7 6 534-6 6 by2-e g Nashville 6 6 6 6 6 6 534-6 514-6 bH~e New Orleans. _ 534-634 5H-6H 634-7 6^-7 6 -7 6 -7 6 -7 6 g g D Li e t t t r le o it Rock 6 5!4-6 6 6 6 - - 6 7 34 6 6 - - 6 7 34 6 6 - - 7 ey2 6 5 34 - - 6 7 34 534-8 6 6i -ey2 534-6 6 534-6 g g Louisville _ .. 6 6 Q 6 6 6 6 6 6 534 534-6 g Helena 8 8 8 8 8 8 6 -8 6 -8 6 -8 6 -7 6 -7 6 -8 Denver 6 6 -en 6 6 -7 6 -7 6 -7 6 -7 6 -8 6 -en 6 -63^ Oklahoma City 6 6 6 6 -7 6 -8 6 -7 6 -7 6 -7 6 -7 6 6 6 E O l m P a a h s a o. 5^-6 8 7 -8 6 6 -8 6 6 6 - - 7 8 6 6 - - 8 7 6 6 - - 7 8 6 7 - - 8 7 6 7 - - 7 8 6 7 - e 8 y2 6 -6 6 34 6 -6 g 34 6 -6 g H Houston _ 6 6 6 6 -6H 6 -7 6 -7 6 5 -6 5 -6 5H-6 San Antonio 6 -7 6 -8 6 -8 6 -8 6 -8 6 -8 6 -8 534-6 Los Angeles . _. 6 jj J 6 -7 6 -7 6 -7 7 7 6 6 Portland 6 6 -7 6 -7 6 -6^ 6 -7 6 -7 6 -7 6 g n Salt Lake City 6 6 6 6 6 7 7 7 7 6 6 6 Seattle 6 -634 6 -en 6 -7 6 -7 6 -6H 6J4-7 6^-7 6^-7 6 g Spokane 6 -7 6J4-7 6M-7 7 7 6 6 6 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

450 FEDERAL RESERVE BULLETIN JULY, 1929 MEMBER BANE CREDIT REPORTING MEMBER BANKS (REVISED SERIES) [In millions of dollars. Monthly data are averages of weekly figures] Loans and investments Loans and investments Bor- Borrow- row- Loans ings at Loans ings at; Date Total Fed- Month Total Fedin- eral re- in- eral re- Total Total i | s e t O c i u e n s ri- o A th l e l r m ve e s n t t - s b s a er n v k e s Total i Total e t c O ie u n s ri o A th l e l r m ve e s n t t - s b s a er n v k e s Total: Total: Apr. 3 22, 561 16, 583 7,516 9,068 5,977 766 1928—June 6,962 8,909 6,193 796 Apr. 10 22, 393 16, 455 7,380 9,076 5,938 706 July 6,955 8,937 6, 114 854 Apr. 17 -. 22, 340 16,431 7,353 9,078 5.909 729 August 6,816 9,009 5,984 806 Apr. 24 _.. | 22,259 16, 388 7,335 9, 052 5,871 698 September.. 6,840 9,059 5,973 822- May 1 j 22,313 16,438 7,371 9,067 5. 875 703 October 6,874 9,130 5, 934 736 May8 I 22,094 16,257 7,241 9, 016 5,836 684 November.. 7,082 9,014 5,888 681 May 15. ... 22,156 I 16,301 7,221 9,079 5, 855 626 December... 7,198 9,055 5,936 799 May 22. _ 22, 005 I 16,187 7,144 9,043 5,818 614 1929—January i 7,504 8,796 6,021 663 May 29 22, 001 I 16,202 7,112 i9,090 5,799 680 February. _. 7,522 8,737 6,004 659 June 5__ 22,115 i 16,337 7,197 9,140 5, 779 663 March I 7,580 8,911 5,981 740 June 12. 22,104 16,364 7,209 9,155 5, 740 628 April '. 7,392 9, 073 5. 924 725 June 19 22, 298 16,543 7, 382 9.161 5. 755 674 May ! 7,218 9. 059 5, 837 661 June 26 22, 407 | 16,678 7,537 9,141 5, 729 715 June | 7,331 9,149 5,751 670 New York City: New York City: Apr. 3_ 7,405 I 5,521 2,819 2,702 1,884 135 1928—June I 2,613 2,635 1,918 271 Apr. 10 7,276 5,421 2, 708 2,713 1, 854 158 July ! 2,626 2, 644 1,900 274 Apr. 17 7, 252 5,398 \\2, 682 2, 716 1, 854 179 August i 2,518 2,668 1,777 223 Apr. 24.. 7, 253 5,410 li2,707 2,702 1,844 177 September.. j 2,544 2,678 1,801 266 May 1— 7,332 5,476 2,777 2,699 1,856 157 October I 2,559 2,650 1,803 202 May 8. 7,165 5, 314 2, 647 2, 667 1,852 189 November.. I 2,694 2, 562 1,800 157 May 15..._ 7,194 5,337 2,641 2, 69fi 1, 857 166 December... I 2,747 2. 592 1,812 221 May 22 7,120 5, 294 2, 614 2,680 1,825 111 1929—January 1 2,904 2, 473 1,884 190 May 29.. 7,100 5,299 2, 585 2,714 1,801 103 February i 2,820 2,486 1,885 131 June 5 7,236 5,409 j2,678 2,731 1,827 123 March I 2,823 2, 601 1,872 166 June 12 7,200 5,390 2, 663 2,727 1,810 136 April.. ! 2,729 2, 708 1,859 162 June 19 5, 465 2, 749 2, 716 1,812 170 May.. I 2,653 2,691 1,838 145 June 26._ 7,410 5,610 2,908 2,702 1,800 228 June ; 2, 749 2,719 1,812 165 Other leading cities: Other leading cities: Apr. 3 __ 15,156 11,063 4,697 6,365 4,093 631 1928—June 10,623 ! 4,349 6,274 4.275 525 Apr. 10 — 15,118 11,034 4,671 6, 363 4,084 549 July 10, 622j 4,330 6,293 4,214 580 Apr. 17 15, 088 11,033 4,671 6,362 4,055 550 August 10, 639 ! 4,298 6,341 4,207 583 Apr. 24 15, 004 10. 978 4,628 6,350 4,027 521 September.. 10, 677I 4,296 6, 381 4,172 556 May 1 14,981 10,962 4, 593 6,369 4,019 546 October 10. 794• 4,314 6,480 4,131 534 May 8. 14,932 10,943 4,594 6,350 3,989 495 November.. 10.840 | 4,3-88 6,452 4,087 524 May 15 14,961 10,964 4,581 6,382 3,998 460 December... 10, 913I 4,450 6, 463 4,124 578 May 22 14, 885 j 10,892 4, 530 6,363 3,993 503 1929—January 10, 922! 4,600 6,323 4,136 473 May 29 14, 901 10,902 4, 526 6,376 3,998 577 February 10,954 ! 4,702 6, 251 4,119 528 June 5. 14, 879 10,928 4, 519 6,409 3,951 540 March 11,067 | 4,756 6,310 4,109 574 June 12.. 14, 904 10, 974 4,544 6,430 3,930 492 April 11, 027| 4,667 6,360 4, 065 563 June 19 ._ 15, 021 11,078 4,632 6,445 3, 943 504 May 10, 933 4,565 6,368 3, 998 516 June 26 14, 996 11,068 4,630 6,438 3,928 487 June __. 11,012 4,582 6,430 3,938 505 City of Chicago: City of Chicago: Apr. 3.. 2,068 1,631 914 717 437 1928—June 1, 573 874 502 61 Apr. 10 ._. 2,050 1,599 907 692 451 July. 1,550 854 696 489 80 Apr. 17 _.. 2,036 1,600 908 692 436 August 1,577 848 729 473 80 Apr. 24 2.027 1, 593 890 704 434 September.. 1, 572 850 722 462 41 May 1 2,030 1,601 897 703 429 October 1,604 854 751 456 58 May 8 2,001 1,588 893 695 413 November.. 1,604 869 735 459 67 May 15 2,017 1, 594 895 699 423 December... 1,632 889 742 452 91 May 22 2,009 1,593 896 697 416 1929—January 1, 613 887 726 452 71 May 29 2,017 1,602 905 697 415 February 1,641 911 731 455 96 June 5-.. 2,030 1.616 912 704 414 March 1,676 950 726 454 121 June 12 2,034 1, 616 907 710 417 April 1, 606 905 701 440 46 June 19 2,044 1, 625 910 715 419 May 1, 596 897 419 36 June 26 2,024 1,606 912 694 418 June 1,616 910 417 64 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

451 JULY, 1929 FEDERAL RESERVE BULLETIN BANKERS' BALANCES ACCEPTANCES AND COMMERCIAL PAPER [Monthly averages of weekly figures for reporting member banks in ! leading cities. In millions of dollars [Amounts outstanding in millions of dollars. Figures for acceptances as compiled by American Acceptance Council: for commercial paper as Due to banks reported by 24 dealers] Month Total New York City Othe c r i t l i e e a s ding i End of month Ban o k u e t r s s t ' a a n c d c i e n p g tances Comme st r a c n ia d l in p g aper out- 1928 1929 I 1928 1929 1928 1929 1927 1928 1929 1927 1928 1929 January 3, 484 3,074 1.137 1,012 2,347 2,062 i January 774 1, 058 1,279 551 577 407 February 3, 374 2.918 1,098 949 2, 276 1,969 ; February - 785 1,056 1,228 577 567 411 A'i arch 3, 292 2, 861 1,089 916 2,203 1,945 i March 809 1, 085 1, 205 606 570 387 April _ . 3, 207 2 709 1,053 874 2,154 1,835 April 811 1,071 1,111 599 571 351 May -. _. 3. 064 2, 545 1,020 817 2,044 1,728 i May 775 1,041 1,107 582 541 305 June 2 897 2, 532 933 796 1 964 1 736 J une 751 1 0?6 579 503 Julv 2. 936 957 1, 979 Julv 741 978 569 483 August 2 801 901 1 900 A v gust 78? 952 591 458 September 2, 948 934 2,014 September 864 1, 004 600 430 October 3 073 692 2,081 October 975 1, 123 611 427 November. 3 040 981 2, 059 -.- ! No vem ber 1, 029 1, 200 603 421 December 3,011 956 2, 055 December 1,081 1,284 555 383 BROKERS7 LOANS BROKERS' BORROWINGS ON COLLATERAL IN NEW YORK CITY REPORTED BY THE NEW YORK STOCK EXCHANGE [Net borrowings on demand and on time. In millions of dollars] Total From New York ba From private banks, brokers, , a~n^dv. t„r.„u>s.t„ c~o,m,p^a,u^i^ foreign banking agencies, etc. End of month ! 1926 1927 1928 1929 1926 1927 1928 1929 1927 1928 1929 January 3,513 3,139 4, 420 6, 735 3,043 2,670 3, 805 5,664 470 469 ! 615 1,071 February 3, 536 3,256 4, 323 6, 679 3,080 2, 757 3,737 5, 619 455 499 ! 585 1,060 March 3,000 3,290 4,640 6, 804 2, 553 2,790 3,947 5,713 447 500 693 1,091 April.. 2,836 3,341 4, 908 6,775 2,468 2, 865 4,246 5, 580 367 476 i 682 1,194 May 2,767 3,458 5,274 6,665 2,392 2, 968 4, 568 5,482 375 490 ! 707 1,183 June 2,926 3,569 4,898 1 7, 071 2, 509 3, 065 4,169 5,797 417 504 : 730 1,275 July _ - 2,998 3,642 4,837 2, 583 3,145 4,150 415 497 i 687 August, 3,142 3,674 5, 051 2,698 3,170 4,260 444 504 ! 791 September _. 3,219 3,915 5,514 2,745 3,340 4, 647 474 575 ! 868 October 3,111 3, 946 5, 880 2,668 3,363 4, 994 444 583 i 886 November 3,129 4,092 6,392 2, 636 3,519 5,412 493 573 ': 979 December _._ 3,293 4, 433 6,440 2, 804 3, 812 5.401 489 621 ! 1,039 i Call loans, $6,444,459,000; time loans, $626,752,000. 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] Total For banks For others In New York Outside New Date or month Total City a York City » 1928 1929 1928 1929 1928 1929 1928 1929 1928 1929 Date: * Apr. 3 3,979 5,562 2,765 2,673 1,265 1,021 1, 500 1, 652 1, 215 2,889 Apr. 10 3,994 5,427 2, 793 2, 546 1,144 I 915 1, 649 1,631 1,201 2,882 Apr. 17 4,129 5, 425 2, 867 2, 539 1,164 I 877 1, 703 1, 662 1. 263 2,886 Apr. 24 _ 4,144 5,492 2,814 2, 576 1,200 j 924 1,614 1,652 1', 331 2,916 May 1 4,282 5,532 2, 915 2, 656 1, 329 ! 979 1,586 1,676 1,366 2,876 May 8 4, 361 5, 551 2, 936 2, 598 1, 252 864 1, 684 1,734 1,425 2,953 May 15 4, 502 5,565 2, 967 2, 585 1,312 860 1, 656 1, 725 1,535 2,979 May 22 4,456 5, 520 2, 855 2,478 1. 247 827 1, 607 1,651 1,602 3,042 May 29 4, 469 5, 288 2,827 2,313 1,219 773 1,608 1, 540 1,642 2,975 June 5 4, 563 5,284 2 809 2, 350 1, 167 837 1. 642 1,513 1,755 2.934 June 12_ 4,428 5,284 2,697 2.372 1. 079 821 1. 618 1, 551 1,731 2,911 June 19 4, 270 5,420 2, 532 2. 475 1,004 883 1,528 1,592 1,737 2,945 June 26 4, 178 5,542 2,424 2, 574 941 1, 038 1,483 1, 536 1,754 2,969 Month: January __ 3,802 5,408 2,812 2,974 1, 342 1,173 1,470 1,801 990 2,434 February 3,784 5, 555 2,667 2,899 1,167 1,082 1, 500 1,817 1,117 2, 656 March 3, 761 5, 679 2, 514 2, 800 1,064 1,071 1,450 1,729 1, 247 2,879 April .* 4, 062 5,477 2, 809 2,583 1,193 934 1, 616 1, 649 1, 252 2,893 May.- 4.414 5,491 2, 900 2, 526 1,272 861 1,628 1,665 1, 514 2,965 June_ 4, 360 * 5,383 2,616 2,443 1,048 | 1, 568 1,548 1,744 2,940 July -.. 4,23f 2,472 929 1,543 1, 760 August _- 4,239 2, 357 835 ! 1,522 1, 881 September 4,417 2,494 887 ! 1, 607 1,924 October _- 4,701 2, 653 933 1,720 2,048 November _ .._ . 5,102 2, 854 1,105 ! 1,749 2.248 December _ 5,193 2,874 1,114 ! 1,760 2, 319 1 Dates for 1929; corresponding dates for 1928 are slightly later. 3 Member and nonmetnber banks outside New York City (domestic 2 Weekly reporting member banks in New York City. banks only); includes unknown amount for customers of these banks. * Call loans, $5,037,000,000; time loans, $346,000,000. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

452 FEDERAL RESERVE BULLETIN JULY, 1929 COMMODITY PRICES, SECURITY PRICES, AND SECURITY ISSUES WHOLESALE PRICES, BY COMMODITY GROUPS » [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 ti a n 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 h l r s e u a m g n s i d - in f 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 e m g s r o a r d i l - - 1928—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 1929—January 97.2 105. 9 98.8 113.6 96.4 82.5 103.6 96.6 95.9 96.6 80.5 94.9 February 96.7 105.4 98.1 109.0 96.1 81.3 104.4 97.5 96.1 96.6 80.4 94.3 March 97.5 107.1 98.1 108.3 96.1 80.6 106.4 98.8 95.6 96.5 80.0 94.9 April. 96.8 104.9 97.7 107.9 95.5 80.6 106.4 97.9 94.9 96.7 79.2 94.7 May 95.8 102.2 97.7 106. S 94.2 81.1 105.2 96.8 94.2 96.7 79.6 94.1 June _ 96.4 103.3 98.9 108. 0 93.3 83.3 105.1 96.4 93.4 96.6 80.4 94.6 1 Index of Bureau of Labor Statistics. PRICES OF FAKM PRODUCTS AT THE FARM » SECURITY PRICES [August, 1909-July, 1914=100] Common stocks l (1926=100) Bonds: Month 3 m 0 o co d- m- Grains F v a e r n g u d e it - an M im ea a t ls p D o a a u n i l d r t y ry c C o a o t n t t t o d o n n - cl U as n s - i- Month or week co s m t 4 o b 0 c 5 i k n s ed i t n r 3 d i 3 a u 7 l s s - 33 rails u p ti u l 3 b i 5 t l i i e c s A* A p Cu r l v i ii e c cs r c e st a ui o g Ae f e Bs ities tables prod- seed fied ucts 1928—February. __ 132.3 134.8 121.6 130.9 99.31 March 137.9 141.1 125.9 134.4 99.20 1928 A M p a r y il ... 1 1 4 5 5 2 . . 9 1 1 1 4 5 9 4. . 9 5 1 1 3 3 0 3 . . 7 2 1 1 4 5 2 5 . . 5 3 9 9 9 8 . . 1 7 8 9 M Ap a r y il _. 1 1 4 4 0 8 1 1 4 6 4 0 1 18 7 1 9 1 1 4 5 2 1 1 1 3 3 4 4 1 1 5 6 4 6 8 8 5 6 J J ^ u u l n• y •e•' 1 1 4 44 5 . . 2 3 1 1 4 4 8 7 . . 2 8 1 12 2 4 6 . . 6 7 1 1 4 4 8 5 . , 1 3 9 9 6 7 . . 5 3 6 8 J J u ul n y e 1 1 4 4 5 5 1 1 5 4 2 2 1 15 6 6 8 1 15 5 7 0 1 13 3 4 2 1 1 6 7 2 0 8 8 7 8 A Se u p g t u e s m t ber.. 1 1 4 5 8 6 . . 3 1 1 1 5 6 2 1 . . 6 6 1 12 2 9 6 . . 7 5 1 15 4 5 7 . . 2 9 9 9 5 6 . . 8 4 2 7 August 139 120 137 162 136 153 87 October 159.1 166.2 128.2 154.5 96.58 S O e c p to te b m er ber. 1 1 4 3 1 7 1 1 1 1 7 6 1 11 2 4 7 1 17 6 4 0 1 15 4 0 5 1 1 4 4 2 7 8 8 3 5 D N e o c v e e m m b b e e r. r _ .. _ 1 1 6 7 9 2 . . 2 9 1 1 7 80 7 . . 0 1 1 13 3 5 3 . . 7 9 1 17 6 4 5 . . 7 5 9 9 6 6 . .2 9 4 0 N D o ec v e e m m b b e e r r . . . 1 1 3 3 4 4 1 1 1 1 0 2 1 1 0 0 8 9 1 1 5 4 0 3 1 1 5 5 5 9 1 1 4 4 6 8 8 9 6 0 1929— F J e a b n r u u a a ry ry _._ 1 1 8 8 6 3 .6 8 1 19 9 2 1 . . 4 4 1 1 4 4 2 1. . 0 3 2 1 0 8 3 8 . . 1 3 9 9 6 5 . . 1 6 2 0 1929 M Ap a r r i c l h 1 1 8 89 6 . . 4 6 1 1 9 9 3 6 . . 4 1 1 1 3 4 8 0. . 8 3 2 20 0 1 4 . . 4 4 9 9 4 4 . . 8 5 2 8 January 133 115 109 146 149 148 92 May. 189.7 195.2 138.7 213.2 94.46 February. _ 136 123 111 150 148 149 91 June 188.6 189.3 143.8 228.1 93.49 M Ap a r r i c l h 1 1 3 4 8 0 1 1 2 2 4 0 1 1 1 1 0 2 1 1 6 6 4 0 1 1 4 3 4 8 1 1 5 5 2 5 9 8 0 8 Week ending- J M u a n y e 1 13 3 6 5 1 11 1 1 3 1 1 2 1 0 9 1 16 6 4 3 1 1 3 3 7 7 1 14 4 R 6 8 8 5 6 J J J u u u n n n e e e 1 8 15 1 3 1 8 8 8 0 7 7 . . . 2 9 3 1 1 1 8 8 8 2 8 9 . . . 4 8 1 1 1 1 3 4 4 9 1 3 . . . 7 7 1 2 2 2 0 2 2 8 7 0 . . . 4 7 7 9 9 9 3 3 3 . . . 4 5 5 2 6 6 June 22 191.7 191.5 144.6 237.4 93.55 1 Index numbers of Department of Agriculture. June 29 195.9 194.5 149.7 246.1 93.34 FOREIGN CAPITAL ISSUES i Index of common-stock market values (revised series) computed by [In millions of dollars] Standard Statistics Co. from closing prices on Thursday. DOMESTIC CAPITAL ISSUES January-May [In millions of dollars] May, 1929 1929 1928 January-May Class of issue May, 1929 Gov- Cor- Gov- Cor- Gov- Cor- 1929 1928 ern- po- ern- po- ern- po- Class of issue ment rate ment rate ment rate Re- Re- Re- New fund- New fund- New funding ing ing Total. 37.3 62.4 92.5 258.8 542.0 248.6 New E i u s r s o ue pe 31 0 5 1 8 1 9 3 2 7 3 7 6 0 25 2 3 6 .0 3 4 2 5 2 2 8 0 5 2 1 0 3 3 0 7 9 Total. 1,079.8 392. 5 4,204.0 853.1 2, 566.8 1,196.5 Canada and Newfound- U L M a n l s i a t e s i i n t c s n e s d e d i l o A l a n S m n s t e a e o t r e u i . s c s a insular pos- 31 0 2 1 7 7 2 .7 0 9 3 2 1 0 1 .5 4 5 1 5 1 5 7 2 0 7 . . . 1 t 8 4 1 3 3 5 4 3 0 6 . . 2 5 6 3 4 1 8 5 8 .9 9 0 C Fa o r r m p B S o - t o o l r o n a c a L S t d k e n s h s o o i n a i s s r g n s t s u d u t t e e e e s n r s r m m otes- 8 2 5 2 9 9 7 4 7 8 6 . . . . 5 7 7 5 3 1 28 9 0 6 1 0 3 . . . . 1 9 3 5 3 1 2 , , , 7 0 9 5 0 8 2 3 2 1 7 . . . 0 1 . ' 5 8 3 4 2 5 7 4 1 0 4 6 . . . . 1 9 3 3 1 1 , , 9 0 7 2 5 8 1 9 7 0 3 0 2 . . . . . 0 7 8 0 5 1,1 8 2 8 3 8 6 4 4 6 3 . . . . 2 0 7 5 Refunding issues 6.3 3.5 ~~15.~5~ 5.5 89.5 44.9 M unicipal issues 181.1 1.6| 501.9 629.8 12.3 Total Government and .- • corporate 99.7 351L.3 790.6 To fu ta n l d i n n e g w and re- 1,472.3 5,057.1 3, 763.3 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

JULY, 1929 FEDERAL RESERVE BULLETIN 453 PRODUCTION, EMPLOYMENT, AND TRADE [Index numbers of the Federal Reserve Board] Produc- Building contracts Wholesale dis- Department- Department- Indus- tion of Produc- Factory Factory awarded 1 Freight tribution 1 store sales l store stocks * Year and month p t r t i o r o i d n a u l i c- m tu f a r ac e n - s u 1 - t m i a o i l n n s e o i r- f em m p e l n o t y- r p o a l y ls Unad- Ad- i l n o c g a a s d r - i Unad- Ad- Unad- Ad- Unad- Adjusted justed justed justed justed justed justed justed Mo. av. 1923-1925 = 100 Mo. av. 1919 = 100 Monthly averages 1923-1925 = 100 ANNUAL INDEX 1919 _ 84 77 100 100 64 84 111 78 79 1920 87 87 89 103 124 63 91 115 94 105 1921 67 67 70 82 84 57 79 87 87 89 1922 85 87 74 90 89 81 86 89 88 89 1923 101 101 105 104 113 84 100 100 98 98 1924 _ 95 94 95 104 95 98 98 99 101 1925 104 105 95 107 122 103 102 103 102 1926 108 108 108 96 109 130 107 101 106 103 1927 106 106 107 92 105 128 103 97 107 103 1928 110 111 106 90 104 135 104 96 108 101 MONTHLY INDEX 1925 F M J A M J A S D O N u u e e p u e c o a a n l b p c y t r g v y r e o t i r e c u e l e u b m h s m m a e t b r r b b y e e e r r r 1 1 1 1 1 1 1 1 1 1 1 0 0 0 0 0 0 0 0 0 0 0 5 5 3 3 4 2 3 5 9 2 7 | 1 1 1 1 1 1 1 1 1 1 1 0 0 0 0 0 0 0 0 1 0 0 6 6 4 3 4 2 9 4 1 2 8 1 1 1 1 9 9 9 8 9 9 0 0 0 0 5 9 0 9 4 3 1 4 7 4 96 1 1 1 1 1 1 1 1 1 1 1 0 0 1 0 0 0 0 0 1 1 1 9 5 0 7 7 5 4 2 1 2 2 1 1 1 1 1 1 1 1 1 1 7 3 2 3 2 4 3 2 2 1 3 6 8 4 7 0 9 3 9 9 6 8 1 1 1 1 1 1 1 1 1 1 1 0 0 1 1 2 2 2 4 3 3 2 4 7 3 3 8 8 5 5 5 5 7 1 1 1 1 1 1 1 1 1 1 9 0 0 0 0 0 0 0 0 0 0 9 3 1 1 4 4 6 5 5 0 2 1 1 1 1 1 9 9 9 9 9 9 0 2 1 1 0 5 7 3 5 7 2 5 3 2 7 2 1 1 1 1 1 1 1 1 1 9 0 9 0 0 0 0 0 0 0 0 9 2 8 0 0 6 0 2 2 2 2 1 1 1 1 1 9 9 9 7 7 0 0 3 7 1 5 9 4 5 8 6 0 0 8 4 1 1 1 1 1 1 1 1 1 1 1 0 0 0 0 0 0 0 1 0 0 0 1 1 3 3 1 2 0 1 2 6 4 1 1 1 1 1 1 9 0 9 9 9 0 0 0 1 0 1 6 4 8 8 7 3 5 6 5 7 2 1 1 1 1 1 1 1 1 1 1 1 0 0 0 0 0 0 0 0 0 0 0 1 3 1 3 1 1 1 2 2 2 2 1926 January 107 109 92 107 111 143 102 95 104 105 93 105 February 107 109 95 112 106 145 104 96 103 81 104 98 104 March 108 108 104 113 146 129 104 106 101 101 101 107 104 April.. 108 108 107 110 139 120 107 96 103 103 107 103 May 107 107 104 109 134 123 107 95 101 107 108 104 102 June 108 109 106 109 133 121 109 95 100 101 103 98 101 July_— 108 108 107 104 126 124 108 95 100 79 105 93 100 August 111 111 109 108 148 133 108 111 101 83 107 97 101 September 112 112 110 108 137 134 109 118 103 101 109 107 102 October. 111 111 114 112 126 122 109 111 96 123 109 114 104 November 108 107 118 109 119 130 109 101 101 121 106 117 103 December 106 104 119 108 131 142 107 87 98 184 110 96 102 1927 January 107 105 116 102 94 120 105 88 95 106 93 104 February 109 107 118 109 96 131 109 91 97 83 107 98 103 March 112 110 118 110 151 134 108 102 98 100 105 107 103 April 109 109 106 108 147 127 108 92 95 111 105 107 103 May 111 112 108 108 135 122 106 91 97 102 103 104 102 June 109 109 105 106 154 141 104 91 96 102 103 98 101 July 106 108 99 101 130 128 101 91 96 75 104 95 102 August 107 107 106 104 135 121 104 112 102 89 111 98 102 September 105 106 103 104 127 125 104 113 98 100 108 108 104 October 103 103 105 105 137 133 101 108 94 119 106 114 104 November 99 99 101 101 114 125 97 97 97 122 107 117 104 December 100 102 102 116 126 95 85 95 186 111 96 103 1928 January 105 106 103 K)4 133 100 88 96 104 92 103 February 109 110 102 104 113 153 102 93 99 105 98 103 March 109 110 103 105 144 128 102 100 96 103 104 105 101 April 109 110 105 103 157 135 104 88 92 102 103 106 101 May 109 110 105 104 163 148 105 93 99 108 103 102 100 June 109 111 101 104 158 145 102 89 92 104 105 96 99 July.— 110 111 100 100 142 139 102 90 94 78 107 93 100 August.. 112 113 105 104 126 113 104 110 101 85 105 97 101 September 114 115 107 105 143 140 106 111 96 107 119 103 99 October..* 114 114 114 109 145 141 106 112 97 124 105 112 102 November 112 112 113 106 115 126 104 99 99 122 106 115 102 December 113 114 112 107 105 116 103 84 95 189 116 94 100 I 1929 i January 117 117 117 103 100 128 104 93 101 92 105 89 100 February 117 117 120 110 88 119 107 90 96 86 110 95 100 March 119 | '121 107 113 118 104 103 101 '97 110 113 102 '99 April.- _. 122 i 123 115 114 156 135 111 96 100 104 105 103 '99 May P123 P124 P116 113 143 130 111 96 102 110 107 101 99 i As revised in February, 1929; see BULLETIN for March. 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. p Preliminary. ' Revised. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

454 FEDERAL HESERVE BULLETIN JULY, 1929 INDUSTRIAL PRODUCTION INDEX OP INDUSTRIAL PRODUCTION I PER CENT {Index numbers, adjusted for seasonal variations. As revised in Febru ary, 1929; see BULLETIN for March. 1923-1925 average=100] Month 1923 1924 1925 1926 1927 1928 1929 January 100 100 106 107 107 105 117 February 100 102 105 107 309 109 117 March 103 101 105 108 112 109 119 April 107 95 103 108 109 109 122 May 107 89 103 107 111 109 P 123 June 1C6 85 102 108 109 109 July 104 84 104 108 106 110 August 102 8£ 103 111 107 112 80 September 100 04 102 112 105 1H October . _-„ 99 95 105 111 103 114 November 98 97 107 108 99 112 December 97 101 109 106 100 113 Annual index 101 95 104 108 106 110 60 1925 1926 1927 1928 1929 INDEX OF PRODUCTION OF MANUFACTURES, BY GROUPS f m ac A a t n u ll r u e - s | s I a r t n e o e d n l Textiles pr F o o d o u d ctspr P i a n a n p ti d e n r g Lumber m A o u b t i o le - s L s e a h a n o t d h es er a C n b e d r m i c g e k la n , s t s , f m e N r e r o t o a n u l - s s re P l f e e i u n tr m i o n - g Ru ti b re b s er T f m a o c a b tu n a r u c e c - s o 1928 January.. 106 | 107 107 103 115 92 93 99 114 100 135 124 119 February 110 113 108 110 116 93 101 103 117 108 139 135 120 March _ 110 i 114 107 105 118 94 111 102 112 108 141 134 120 April _._ . , 110 122 101 98 118 95 108 97 111 109 147 134 120 Mav 110 116 107 96 118 93 107 96 116 111 150 133 120 June _ 111 115 108 93 «120 91 117 108 123 115 153 143 125 July 111 124 100 89 117 94 119 112 119 113 156 149 125 August 113 121 107 90 117 87 133 112 126 117 160 151 129 September 115 128 107 95 118 82 139 110 130 117 162 169 128 October- 114 i 126 112 98 116 81 122 103 122 121 160 167 126 November.. . 112 120 113 102 115 85 94 97 122 126 159 155 124 December 114 i 123 111 104 114 87 103 92 130 128 159 143 127 1929 January 117 117 116 103 122 89 154 95 134 124 159 147 131 February. 117 126 113 101 123 78 152 98 123 123 161 152 129 March ' 121 132 116 96 125 83 163 '99 135 129 160 152 126 April 123 i 135 120 102 122 86 157 97 127 ' 137 166 161 142 May.. P124 145 121 97 126 P83 151 101 124 137 168 159 142 INDEX OF PRODUCTION OF MINERALS, BY PRODUCTS Al e l ra m ls in- n B o i u t s u m co i a - l Ant c h o r a a l cite pe C tro ru le d u e m s I h r i o p n m o e r n e ts Copper Zinc Lead Silver 1928 January . _ 103 ! 92 89 121 102 105 103 93 February 102 ! 92 88 119 104 107 109 83 March 103 95 80 121 102 112 109 94 April 105 i 91 107 120 103 113 100 89 May 105 1 93 112 120 80 110 113 101 85 June 101 : 91 76 118 107 110 117 100 93 July . . . 100 i 93 67 119 104 113 117 97 76 August 105 1 91 94 123 104 116 120 107 87 September . . .. 107 j 94 95 124 110 123 114 115 79 October.- .. 114 ! 99 119 127 114 128 110 108 79 November 113 i 99 113 127 106 131 111 111 93 December - . . 112 96 98 132 133 106 ' 109 100 1929 January 117 103 110 138 129 100 111 93 February . _ 120 109 110 138 136 106 99 91 Marclu - 107 89 77 134 135 112 112 93 April 115 100 95 133 141 116 * 125 r 103 May _ P116 102 86 135 143 139 120 125 P100 e Corrected p Preliminary. ' 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 in the BULLETIN for February and March, 1927. Revisions of figures from 1923 to 1928 were published in the BULLETIN for March, 1929, pp. 192-194; corrected annual figures for certain group components are given above. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

JULY. 1929 FEDERAL RESERVE BULLETIN 455 PRODUCTION OF MANUFACTURES, BY INDIVIDUAL LINES 1 May, April May, 1929 1929 1928 Iron and steel: Leather and products: Pig iron 126 117 106 Leather, tanning- Steel ingots 147 137 117 Sole leather" 84 '89 101 Textiles: Upper leather- Cotton consumption 125 119 108 Cattle 78 76 70 Wool- Calf and kip... 96 '93 94 M C C a o a r n c p s h e u i t n m a e p n r t y d i o a r n c u t g iv lo it o y m J activity J. 1 9 0 2 9 '1 '9 0 9 6 6 5 j 82 Ston B e o , o cl t a s y a , n G a d n o d s a h t g o a l e a n s s d s : kid- 1 1 0 1 6 6 '1 1 0 2 0 3 1 9 1 6 8 Silk— Cement 111 '110 119 Food pr D L od o e o u li m c v t e s r a : i c e t s ivity 3 1 1 3 4 0 2 <> 1 1 5 2 9 9 1 1 3 1 4 5 Non P F fe a l r a c r t o e e u b g s r l i a m c s k s etals: 1 1 1 4 0 6 1 1 2 4 7 4 1 9 2 7 4 Slaughtering and meat packing— 145 147 114 Hogs 94 100 96 Lead 126 '125 101 Cattle _ 86 93 92 Zinc 120 116 113 Calves.. 91 101 100 Tin' 145 143 100 Sheep 125 119 105 Chemicals and allied products: Flour 112 107 105 Petroleum refining— Sugar meltings 90 111 83 Gasoline a 197 194 167 Paper and printing: Kerosene 103 93 110 Wood pulp and paper- Fuel oil» 140 141 130 Newsprint 93 Lubricating oil * 126 125 129 Book paper 127 126 Coke production- Fine paper 118 117 By-product 149 145 131 Wrapping paper 103 113 Beehive 58 41 37 Paper board 135 '131 Rubber tires and tubes: Wood pulp, mechanical 91 87 Tires, pneumatic 164 166 136 Wood pulp, chemical 115 112 Inner tubes 121 126 114 Paper boxes 153 131 Tobacco products: Newsprint consumption 132 127 Cigars 101 109 Lumber: Cigarettes 178 173 142 Lumber, cut.. 91 Manufactured tobacco and snuff. 92 95 92 Flooring 90 112 Transportation equipment: Automobiles. _ 157 107 Locomotives. _ 53 28 Shipbuilding 62 56 1 As revised in February, 1929; see BULLETIN for March. J Without seasonal adjustment. ' Revised. ' Corrected. FACTORY EMPLOYMENT AND PAY ROLLS [Index numbers without seasonal adjustment. Monthly average, 1919 =• 100] Metals and Textiles and products Total Gro p u ro p duc I a t r s n o d n Group Fabrics P u r c o t d s - L p u a b r u n c o e m t d r d s - - R v r c o e a l a h e i d s l i - - m A o u b t i o le - s P p a i r a n n i p n g d e t r - F p u a o r n c o o d t d d s s - L p e u a r a n c o t d t d h s e - r S c g a t l l o n a a n d y s e s , , b p u T a r c o c o t c d - s o - C p i u a h c r c n a e o t d l m d s s - steel Employment: 1028—May 89.5 85.3 84.9 87.8 88.9 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 88.6 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 86.0 86.0 85.3 86.3 84.1 '89.0 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 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 '89.1 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 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 1929—January '90.9 90.1 90.3 90.0 93.2 85.9 '84.5 69.6 150.4 | 108.3 85.8 79.4 99.3 70.2 79.0 February. '92.9 92.4 92.6 91.8 94.0 88.9 '84.6 70.7 164.5 109.2 85.9 81.3 98.6 76.7 81.6 March r93.8 94.4 94.6 92.7 93.8 91.3 '85.4 71.4 166.6 108.9 84.9 80.2 101.7 76.8 80.8 April 94.2 95.8 96.3 91.7 93.0 89.9 '86.9 72.8 167.0 108.3 83.6 78.4 107.2 76.1 80.5 94.6 97.1 97.8 91.0 92.9 88.4 88.2 73.2 165.1 108.7 84.4 77.9 111.0 75.4 78.4 Pay'rolls: 1928—April 102.6 92.9 92.2 94.7 95.5 93.8 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 f 104.1 79.7 165.0 149.6 104.3 70.2 135.4 86.5 111.5 December..' 106.7 99.9 99.0 101.0 104.3 96.9 r 100. 8 79.6 161.9 153.0 105.5 75.2 131.7 86.7 111.2 1929—January.... ' 102.9 98.2 97.9 97.2 99.5 94.2 '91.6 73.5 165.0 150.1 101.3 78.9 116.6 70.6 109.6 February.. r110.4 ' 104. 8 104.4 103.3 104.1 102.3 '94.4 80.9 212.3 152.2 101.8 82.7 118.4 76.1 115.2 March 112.9 108.4 107.9 105.9 105.3 106.8 '96.6 84.3 213.6 155.5 100.9 80.0 124.6 78.0 114.1 April 113.5 110.3 110.3 102.5 104.8 99.7 '99.0 86.6 218.9 153.0 100.0 77.1 132.6 79.6 114.9 May 113.3 109.5 109.6 100.7 104.1 96.6 101.1 88.2 211.9 154.6 102.6 77.2 137.5 79.7 112.5 ' Revised. 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. 57856—29 3 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

456 FEDERAL RESERVE BULLETIN JULY, 1929 BUILDING BUILDING CONTRACTS AWARDED [Index numbers based on value of contracts. Monthly average, PERCENT 1923-1925=100] 200 Without seasonal With seasonal adjustadjustment ment i Month 150 1926 1927 1928 1929 1926 1927 1928 1929 January 111 94 104 100 143 120 133 128 February 106 96 113 88 145 131 153 119 March _ 146 151 144 118 129 134 128 104 April 139 147 157 156 120 127 135 135 May 134 135 163 143 123 122 148 130 June ______ 133 154 158 133 121 141 145 122 July 126 130 142 124 128 139 August 148 135 126 133 121 113 September 137 127 143 134 125 140 October 126 137 145 122 133 141 BUILDING CONTRACTS AWARDED November _ _ _ 119 114 115 130 125 126 December 131 116 105 142 126 116 •» With Seasonal Adjustment — Without Adjustment . I . I . Annual index 130 128 135 1925 1926 1927 1928 1929 1 As revised in February; see BULLETIN for March. 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 1928 May 668,097 56,097 188, 687 49,743 63,813 39,421 32,497 139,784 36,360 13,178 20,199 28,31S June 650,466 38, 519 178,448 69,605 46,227 28,600 128,60*7 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 7,896 13,908 20, 397 December... 432,756 26,405 140,159 32,082 31,755 29,973 23,362 76,924 31,378 5,886 16, 511 18,323 1929 January..... 409,968 26, 556 104,447 26,306 54,680 28,748 25,745 77,439 25,479 7,466 15, 668 17, 435 February. _. 361,274 25,352 76,064 32,369 36, 360 34,252 22,363 69, 845 23, 372 4,757 12,874 23, 665 March 484,848 30,044 113,466 35, 399 47,078 32.979 25,398 107, 289 38, 795 8,343 22, 854 23, 204 April , 642,061 38,459 171,551 67,064 51,469 52,139 37,387 108,181 54,363 14,735 22, 365 24, 34fi May 587, 766 41, 095 125,126 37,809 64, 736 37,072 33, 578 141, 450 41,020 17, 309 23,955 24, 616- BUILDING CONTRACTS AWARDED, BY TYPES OF BUILDING BUILDING PERMITS ISSUED, BY FEDERAL RESERVE [Value of contracts in thousands of dollars] DISTRICTS Public [Value of permits in thousands of dollars! Month d R en e t s i i a - l In tr d i u a s l - m C e o r m ci - al w p 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 utilities Number May, April, May, Federal reserve district of cities 1929 1929 1928 1928 April 276, 586 85,093 82,758 117,401 32,885 48,413 United States. 168 238,296 458,302 306,441 May 288,826 37,146 91,200 150,223 47,851 52,851 June___ 258,084 63,537 93,942 130,852 46,135 57,917 Boston 14 13,762 12,017 9,519^ July... 228, 703 31,400 95,697 137,075 36,926 53,632 New York 22 62,035 270,252 107,723 August 213,705 42,607 58,911 118,890 35,713 47,144 Philadelphia.. 14 15,937 13, 362 18,995 September 202,807 114,780 60,068 119.014 38,801 52,205 Cleveland 12 17,588 16,030 22,427 October 239,692 62,259 67,330 148,697 31,293 47,833 November 200,226 38,665 68,309 93,228 30,023 41,032 Richmond 15 8,903 11, 476 12,054 December 178,323 38,248 66,773 80,194 25,370 43,849 Atlanta 15 7,373 7,980 13,58» Chicago 19 58, 090 51, 905 66,031 1929 St. Louis 5 5,183 7,381 8,327 January 138,069 63,109 100,378 66,522 17, 746 24,145 February.__ 129,486 56,092 68, 265 57, 593 22, 577 27, 261 Minneapolis.. 9 3,709 10, 659 4,844 March 197,172 55,837 75, 584 71, 508 37, 525 47, 221 Kansas City.. 14 13,757 10, 568 9,565 April 256, 780 68,230 77,988 152,127 29,857 57,079 Dallas.__ 9 7,122 18, 659 8,753 May 192,015 80,769 86,471 139, 388 38,195 50. 928 San Francisco. 20 24,838 28,014 24, 614 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 back to 1910 were published in the BULLETIN for August, 1927, p. 563. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

457 FEDERAL RESERVE BULLETIN JULY, 1929 TRADE AND DISTRIBUTION FREIGHT-CAR LOADINGS, BY LINES INDEX OF WHOLESALE DISTRIBUTION—EIGHT LINES [Index numbers adjusted for seasonal variations. 1923-1925 = 100] [Monthly average, 1923-1925 = 100] Mer- Sales without seasonal chan- adjustment Grain dise * Month Month 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 u o r c o r t e d s s - t m 1 l . a a i s n c n c . d e e - 1 l . - January 192 8 7 8 ous February _ 91 March 102 April 92 1928—May 105 102 88 100 90 110 May . .. -_ 91 June 102 89 86 92 89 107 June 91 July 102 109 80 89 90 109 July 91 August.. 104 102 81 96 91 109 August 112 September 106 109 93 100 90 111 September October 106 107 91 102 91 111 October November 104 108 82 105 92 107 November December 103 105 85 102 91 108 December 1929—January 104 99 82 108 90 109 February 107 106 82 118 80 109 Annual average March. 103 103 81 89 87 111 April. 111 98 90 102 94 114 May 111 99 86 103 98 114 DEPARTMENT STORE SALES AND STOCKS [Index numbers. Monthly average 1923-1925=100] Without seasonal With seasonal adjustment adjustment Num- Federal reserve ber of district stores 1929 1928 1929 1928 May April May May April May SALES United States... 523 110 104 108 107 105 103 Boston 38 108 97 101 104 95 98 New York 64 113 109 109 112 110 107 Philadelphia 60 93 90 95 90 91 93 Cleveland 59 108 105 106 103 102 100 Richmond 29 109 102 106 107 103 104 Atlanta 44 107 104 114 100 104 107 Chicago 105 122 110 118 116 109 113 St. Louis 19 105 99 104 104 99 103 Minneapolis . 20 97 93 90 92 87 85 Kansas City 1 27 99 99 94 Dallas 22 115 105 116 107 110 107 San Francisco 36 120 111 116 114 117 111 STOCKS United States... 433 101 '103 102 99 '99 100 Boston 38 101 102 106 100 99 105 New York 45 107 110 104 107 106 104 Philadelphia 47 87 90 93 87 86 93 Cleveland 53 98 100 100 94 93 96 Richmond 29 99 102 100 98 97 99 Atlanta 31 100 103 103 99 98 102 Chicago 81 112 114 108 111 108 107 St. Louis. . 19 91 93 96 90 88 94 Minneapolis 16 75 78 83 72 75 81 Kansas City J_ _ _. 21 121 124 116 Dallas 21 81 84 83 80 80 81 San Francisco 32 103 107 108 102 102 107 i Monthly average 1925=100, ' Revised. Index described in BULLETIN for Febrruuary, 1928. 0'—0t OOO OM. Sales with seasonal adjustment 1928 1929 1927 1928 1929 88 93 95 96 101 93 90 97 99 96 100 101 98 96 '97 88 96 95 92 100 93 96 97 99 102 89 96 92 90 96 94 110 102 101 111 98 96 112 94 97 99 97 99 85 84 95 95 97 96 r Revised. SALES IN INDIVIDUAL LINES OF WHOLESALE TRADE [Index numbers. Monthly average, 1923-1925=100] Month c G e r r o i - es Meats g D oo ry ds M cl i o e n t n g h ' - s B s a h o n o o d e t s s H w a a r r d e - Drugs n F it u u r r - e Without seasonal adjustment 1928 May 96 109 75 57 114 97 110 87 June _ 97 114 71 39 77 96 104 83 July.-. 92 113 74 68 98 90 102 78 August 101 118 110 148 119 95 115 108 September. 100 130 105 137 110 100 119 126 October 108 125 99 123 108 108 134 133 November, 100 117 90 66 105 98 114 106 December _ 88 108 69 51 59 86 120 1929 January 91 117 84 74 98 82 131 February 83 113 84 114 84 76 105 91 March '90 117 92 136 110 95 119 105 April 92 115 80 85 100 99 '118 101 May 96 P121 78 60 113 98 111 With seasonal adjustment 1928 May 99 109 86 96 113 94 117 92 June 94 112 79 76 82 92 110 94 July... 91 111 80 79 123 91 107 95 August 100 116 90 90 109 94 117 106 September. 92 122 84 89 90 92 112 112 October 95 111 85 99 87 97 116 112 November. 94 122 91 95 100 100 113 101 December _ 115 86 101 72 93 128 94 1929 January 117 88 96 119 92 133 91 February 119 83 88 107 86 114 91 March 122 88 98 95 92 108 93 April 123 90 88 95 97 116 100 May P121 89 101 112 95 118 104 p Preliminary. ' Revised. Index described in BULLETIN for December, 1927. SALES OF CHAIN STORES i [Index numbers of sales. Monthly average 1923-1925=100] N be u r m o - f Number of stores Sales wit j h u o st u m t e s n ea t s 2 onal ad- Sales with m se e a n s t o 2 nal adjust- Chains reporting May, April, May, May, April, May, May, April, May, firms 1929 1929 1928 1929 1929 1928 1929 1929 1928 Grocery 34 29,675 »29,811 3 28, 947 234 232 214 226 224 206 5-and-10 cent 14 3,430 3,408 2,995 166 142 139 172 153 144 Drug. _ 13 1,225 1,199 984 195 186 164 192 187 161 Shoe 7 713 704 655 144 123 130 124 103 na 1 Indexes of apparel chains and candy chains discontinued. 2 Figures relate to reporting firms—with no adjustment to eliminate the influence of increase in the number of stores operated; thus indexesgiven reflect the full growth of the business of the reporting companies. » Figures revised back to May, 1928. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

458 FEDERAL RESERVE BULLETIN JULY, 1929 FOREIGN BANKING AND BUSINESS CONDITIONS EXPERTS5 REPORT ON REPARATIONS SUMMARY These terms of reference giving broad power A plan for the final settlement of the problem to propose a complete and final settlement of ofiGerman reparations was adopted by the the reparation problem may be contrasted with unanimous signing of a report on June 7, 1929, the terms in which the Dawes committee of by a committee of experts on which the five 1924 was invited by the Reparation Commisprincipal allied countries, the United States, sion. That committee was asked to " consider and Germany were represented. There is pre- the means of balancing the German budget and sented below a summary of the experts7 recom- the measures to be taken to stabilize German mendations, followed by the full text of the currency." report. The report of the committee, having received Creation of committee and terms of refer- the unanimous approval of the experts, must ence.—The committee of experts was ap- now be submitted to the respective Governpointed in accordance with the decision of the ments for their approval. Since the United Belgian, British, French, German, Italian, and States is not a party to the proposed settle- Japanese Governments to entrust to independ- ment, the report as a whole does not require ent experts the task of drawing up proposals the approval of the American Government, for a complete and final settlement of the repa- which must, however, approve the proposed rations problem. The Belgian, British, French, schedule of payments to this country. Until Italian, and Japanese experts were appointed the report shall have been approved by the by the Reparation Commission upon the nomi- Governments concerned, the arrangements nation of their respective Governments; the under which reparations have been paid since German experts were appointed by the German September 1, 1924, continue in effect. The Government, and the experts who were citizens proposal contemplates that the proposed plan, of the United States were appointed by the if ratified in time, should go into effect on Reparation Commission conjointly with the September 1, 1929, at the close of the fifth year German Government. Six members of the under the Dawes plan and the first year under present committee, including the chairman, had the standard annuity. been members of the Dawes committee of 1924, Quotations from 1924 report of experts.—At and several others had been associated with the the outset of the report the committee quotes practical working of the Dawes plan. An im- and adopts from the Dawes report the followportant difference between the present com- ing statement of point of view and method of mittee of experts and the Dawes committee is procedure: that representatives of Germany were members We have approached our task as business men anxof the present committee, whereas their status ious to obtain effective results. We have been conwith reference to the Dawes committee was cerned with the technical and not the political aspects of the problem presented to us. We have recognized, that of witnesses. Mr. Owen D. Young, one indeed, that political considerations necessarily set cerof the American members of the committee, tain limits within which a solution must be found if it is was elected chairman. The first regular meet- to have any chance of acceptance. To this extent, and ing of the committee was held in Paris on Feb- to this extent only, we have borne them in mind. ruary 11, and it was in practically continuous The report ends also with a quotation from session over a period of 17 weeks after that date. the Dawes report, as follows: The terms of reference of the committee of We regard our report as an indivisible whole. It is experts were as follows: not possible, in our opinion, to achieve any success by selecting certain of our recommendations for adoption The Belgian, British, French, German, Italian, and and rejecting the others, and we would desire to accept Japanese Governments, in pursuance of the decision no responsibility for the results of such a procedure, reached at Geneva on September 16, 1928, whereby nor for undue delay in giving execution to our plan. it was agreed to set up a committee of independent financial experts, hereby entrust to the committee Schedule of payments.—In making out a the task of drawing up proposals for a complete and schedule of annual payments, the committee final settlement of the reparation problem. adopted the following three principles: (1) A These proposals shall include a settlement^ of the obligations resulting from the existing treaties and division of the annuity into an unconditional agreements between Germany and the creditor powers. part and a postponable part; (2) the necessity The committee shall address its report to the Govern- for continuing deliveries in kind for a few years; ments which took part in the Geneva decision and also and (3) the arrangement of suitable conditions to the Reparation Commission. 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JULY, 1929 FEDERAL RESERVE BULLETIN 459 for the postponable part in times of exceptional in the form of a reduction of annuity payments, difficulty. and one-third shall accrue to the creditor power. The unconditional part of the annuity con- So long, however, as any German liability sists of 660,000,000 reichsmarks ($157,212,000), remains on the final 22 payments, the creditor payable in foreign currencies in equal monthly power concerned will receive only one-fourth installments without any right of postpone- of the net relief, and the difference between onement of any kind. The remainder of the fourth and one-third will be paid in to the Bank annual payments, also payable in foreign cur- for International Settlements to accumulate rencies, is subject to certain postponements of toward meeting the final 22 payments. During transfer and of payment under prescribed the last 22 years the entire relief from outpayconditions. The committee states, however, ments shall be applied to the reduction of Gerthat "the total amount of the annuity proposed many's liabilities. In addition, certain funds * * * is one which they have every reason accumulated by the Bank for International to believe can in fact be both paid and trans- Settlements, including the funds mentioned ferred by Germany." above, are to be utilized to assist Germany in meeting the final 22 annuities. Under the proposed plan the maximum amount of the annuities and the maximum It is apparent, therefore, that in the new plan period during which they are to run are fixed.1 the maximum amounts and maximum time In the first full annuity year (April 1, 1930- period of the German payments are determined, March 31, 1931) the annuity proposed is 1,707,- while the actual amounts to be paid are subject 900,000 reichsmarks ($406,821,780). In the to reduction. following year the annuity is slightly less; but The payments under the present proposal thereafter it rises practically without interrup- may be compared with those under the Dawes tion to a maximum of 2,428,800,000 reichs- plan. Under the Dawes plan Germany is marks ($578,540,160) in 1965-66. Average obliged to pay a standard annuity of 2,500,payments to the creditor powers during the 000,000 gold marks ($595,000,000). No limit first 37 years are to be 1,988,800,000 reichs- is set to the number of years the annuity is to marks ($473,732,160), to which are to be added run. Furthermore, there is the possibility that installments on the international loan floated a supplementary annuity may be required; for after the adoption of the Dawes plan, bringing beginning with the annuity year 1929-30 Gerthe total average up to 2,050,600,000 ($488,- many is obligated under the Dawes plan to pay 452,920) per year. Payments for the following an additional percentage equivalent to the per- 22 years are then sharply reduced to approxi- centage by which the "prosperity index77 for mately the amount necessary to cover " out- the last calendar year exceeds the base period payments " of the creditor countries as set 1927-1929. There is also a provision perforth in the special memorandum on outpay- mitting an alteration of both the standard and ments which accompanies the report. The the supplementary annuities in case of a 10 outpayments rise from 965,100,000 reichs- per cent change in the general purchasing marks ($229,886,820) in 1930-31 to 1,573,- power of gold as compared with 1928. Thus 700,000 reichsmarks ($374,855,340) in 1965-66; under the Dawes plan there is no definite limit attain a maximum of 1,703,300,000 reichsmarks fixed either for the number of years that the ($405,726,060) in 1983-84; and drop to ap- annuity is to be paid or for the amount of the proximately 900,000,000 reichsmarks ($214,- annual payments. 380,000) annually in the last three years. Distribution of annuities.—The distribution of the annuities among the creditor powers is Concurrently with the execution of the plan set forth in Annex VII. During the period proposed by the experts, Germany, France, 1929-1965 France will receive an annual Great Britain, Italy, and Belgium executed an average amount of 1,046,500,000 reichsmarks agreement, which is not part of the plan itself ($249,276,300); the British Empire, 409,000,000 nor an annex to it, and which was not signed by reichsmarks ($97,423,800); Italy, 213,700,000 the American experts, who considered it a reichsmarks ($50,903,340); Belgium, 115,500,matter for these powers alone to deal with. 000 ($27,512,100); the United States, 66,100,000 Under the terms of this agreement during the reichsmarks ($15,745,020); and other countries, first 37 years two-thirds of "any relief which 138,000,000 reichsmarks ($32,871,600). The any creditor power may effectively receive in distribution of payments after 1965 will be respect of its net outward payments on account approximately in the same proportion. of war debts77 shall be passed on to Germany The experts of the principal creditor Govern- 1 See Part VIII and Annex VII of the plan. ments have agreed that there shall be assigned Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

460 FEDERAL RESERVE BULLETIN JULY, 1929 to France out of the unconditional annuity The committee now proposes to abolish these 500,000,000 reichsmarks ($119,100,000) an- offices and to place full responsibility upon the nually, in order to allow her to mobilize a sut)T German Government for meeting the reparastantial part of her share in the total annuity. tion payments as due. As regards the reve- Out of the remainder of the unconditional annu- nues assigned under the Dawes plan to meet ity, after allowing for the service of the Dawes the budget payment, the committee's language loan, 42,000,000 reichsmarks ($10,004,400) will is as follows: be apportioned to Italy; and the balance will be We have also considered the position with regard to distributed among the other powers. In view the assigned revenues and, having regard to the fact of the large portion assigned to France, and in that these revenues are pledged as collateral security order to protect the other powers in case trans- for the service of the German external loan of 1924, we fer of their shares is postponed, machinery is feel it is impossible to recommend the release thereof. Nevertheless, we are of the opinion that it would be proposed by which France will guarantee to the suitable for the German Government to discuss with other powers the shares they would have the trustees for the bond holders of that loan the posreceived had the nonpostponable annuity been sibility of simplifying, as far as possible, the existing distributed in the same proportions as the total machinery and that the creditor Governments for their part should accept a similar arrangement. annuity. Apart from these special questions the committee Sources of payments.-—The payments are to desires to record its view that the basis of security for be derived from two sources—the German Rail- the payment of the annuities is the solemn undertaking of the German Government, to which no further way Company and the general budget. The guarantee can add anything whatsoever. bonds of the railway company, amounting to !L 1,000,000,000 reichsmarks ($2,620,200,000) Deliveries in kind.—The plan provides for a imposed under the Dawes plan, are to be can- temporary continuance of deliveries in kind in celed according to the experts7 proposal, and decreasing amounts, chiefly for the purpose of the railway is to assume instead the obligation maintaining a transitional period, and to avoid to pay a 660,000,000 reichsmark ($157,212,000) any possible shock to existing economic conannual tax, equivalent to the service payable ditions in Germany. Deliveries in kind are to on the railway bonds now outstanding. The continue for a period of 10 years and are to tax on the railways is to cease after three years. absorb each year a decreasing amount of the postponable portion of the annuity. During Outside of the 660,000,000 reichsmarks to the first year deliveries in kind are to amount be raised from the railroads, the payments are to about 750,000,000reichsmarks ($178,650,000) to come directly and entirely out of the Gerand this amount is to diminish by 50,000,000 man budget. The 5,000,000,000 reichsmarks until the tenth year, when it is to be 300,000,000 ($1,191,000,000) of bonds imposed upon industry and agriculture are to be canceled. The reichsmarks ($71,460,000). These deliveries in contribution from the budget is to increase by kind are to be adapted to the actual annuities an average amount of 24,000,000 reichsmarks of the new plan without increasing the total. ($5,716,800) a year. Conditions of postponement.—In order to Removal of controls.—The committee pro- protect Germany against the danger of having poses to remove most of the foreign controls the annual payments disorganize the German now operative in Germany. Under the Dawes currency, there is a provision under which plan there were created, in addition to the transfers, and even payments, may be post- Agent General, various commissioners and poned. The German Government is given the trustees—for example, commissioners of the right to bring about a postponement of trans- Reichsbank, German railways, and controlled fers by giving at least 90 days' previous notice, revenues, and trustees for the German railway the postponement to be for a maximum period bonds and the industrial debentures. For of two years and not to be applicable to the unthe most part these offices were rendered neces- conditional part of the annuity. In case Gersary by reason of the number of sources from many claims a postponement in any one year, which reparations payments were to be drawn.2 the transfers falling due in any second year can be postponed by no more than one year. At a 1 Under the Dawes plan the standard annuity is derived as follows: time when postponement of transfers is in In millions of gold marks effect, but not until one year after it has become Budget of the Reich 1,250 effective, the German Government has the German railway bonds 660 Industrial debentures _. 300 right to postpone payment for one year of 50 Transport tax 290 per cent of any sum the transfer of which is 2,500 then susceptible of postponement. This per- The contribution of the Reich is derived from certain controlled centage may be increased upon the recomrevenues. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

461 JULY, 1929 FEDERAL RESERVE BULLETIN mendation of the advisory committee provided marks gave rise during the deliberations of the for in the experts' plan. Funds of which the committee to a question as to the interpretatransfer has been postponed shall be utilized tion to be attached to the word "reichsmark." in a manner agreed upon between the Reichs- Under section 31 of the bank law of August 30, bank and the Bank for International Settle- 1924, the Reichsbank is obligated to redeem its ments. Special arrangements about additional notes in gold or gold exchange, thereby assuring deliveries in kind may be made to supplement the stable value of the reichsmark. But under payments in any year when a portion of the section 52 of the same law the coming into force annuit}7 is postponed. Transfers or payments of section 31 requires concurrent resolutions of which have been postponed and which have not the Reichsbank managing board and of the genbeen invested or utilized for deliveries in kind eral council. These concurrent resolutions have shall bear interest at 5% per cent or at a rate 1 not yet been made, but the president of the per cent above the prevailing discount rate at Reichsbank, a representative of Germany on the Reichsbank, whichever is lower. the committee, has undertaken in a letter that Under the Dawes plan the annuities are pay- is incorporated in the report to introduce the able in gold marks, and it is the duty of a necessary resolutions. To avoid possible mistransfer committee acting under the Agent understanding a statement is inserted in the General for Reparations to transfer the marks plan to the effect that "the German Governinto foreign currencies " without threatening ment undertakes for the purpose of the presthe stability of the German currency/' If ent provisions, as well as for the general purnecessary, transfers by the committee may be poses of the plan, that the reichsmark shall postponed. Now that the German Govern- have and shall retain its convertibility into ment itself is to be made responsible for effect- gold or devisen as contemplated in section 31 of ing the transfers, it is given a similar right to the present Reichsbank law and that for these postpone. But in case this right is exercised, purposes the reichsmark shall have and shall payment of the annuities must still be made retain a mint parity of 1/2790 kilograms of fine in marks in Germany, except to the extent gold as defined in the German coinage law of noted above, and the liability of the German August 30, 1924." Government is not extinguished until the Provision for bond issues.—Upon that portransfer into foreign currencies has finally been tion of the annuities which is not postponable, effected. and which is not required for service of the Advisory committee.—On the declaration of Dawes loan, the German Government may at any postponement the Bank for International any time be required by the Bank for Interna- Settlements shall convene a special advisory tional Settlements to create issuable bonds. committee. This committee shall make full The Bank for International Settlements is under investigation of Germany's position in regard to obligation to make this demand upon the request her obligations under the plan and, after having of the creditor Governments only if it considers satisfied itself that the German authorities have such a course opportune. If, however, a used every effort in their power to fulfill their creditor Government is desirous of undertaking obligations, the committee shall recommend internal issues of German bonds in connection to the Governments and the bank what in their with conversion operations, the bank is obliged opinion are the measures that should be taken to accede to its request. Such bonds, however, with reference to the application of the present are to be quoted only on the market of the plan. The committee shall act in a purely country for which they were issued. Bonds consultative capacity, shall play no part in representing the postponable portion of the respect to the unconditional annuity, and shall annuities can be created only with the consent consist of seven ordinary and four coopted of the German Government. members. The seven regular members shall Bank for International Settlements.—As the be the governors of the six central banks and proposed plan does away with the office of the of a Federal reserve bank of the United States Agent General for Reparation Payments, and or some other agreed American financial insti- with the Reparation Commission, so far as tution. These members shall, when they so Germany is concerned, it became necessary to desire, elect four more members, which are to devise some plan for handling reparation paybe the coopted members. ments and deliveries in kind, and for this pur- Convertibility and content of the reichs- pose the plan proposes the organization of the mark.—The fact that the annuities are payable Bank for International Settlements, which will in foreign currencies but are defined in reichs- have two sets of functions; its primary and Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

462 FEDERAL RESERVE BULLETIN JULY, 1929 compulsory function will be to receive and appoint, the remaining governors can select disburse reparation payments, effect transfers two of his nationals as members of the organizain certain contingencies, and handle deliveries tion committee. in kind as long as they are made; its secondary Directorate.—The entire administrative conand permissive functions will authorize it to trol of the bank is vested in the board of act as a bank for other central banks. At the directors, which in the first instance is comoutset the bank will have a capital equivalent posed of the governors of the central banks of to $100,000,000, of which $25,000,000 will be the seven countries mentioned above and their paid up. Shares will be issued in equal amounts appointees to the number of seven. During to the seven countries to which members of the the period of the German annuities the governor experts7 committee belong—that is, Belgium, of the Bank of France and the president of France, Germany, Great Britain, Italy, Japan, the Reichsbank may each appoint one addiand the United States; and the percentage of tional director of his own nationality reprethe total shares issued in these countries shall sentative of industry or commerce. Nine never fall below 55. The shares will carry no remaining directors are to be elected by the voting rights; but voting rights corresponding original group from a list furnished by governors to the number of shares originally issued in of the central banks of each of the other couneach country will be exercised by the central tries participating in the share ownership of bank of that country. In section 12 of Annex 1 the bank. "The functions of a director," the the term "central bank," as used in the report, report says, "are incompatible with those is defined and certain alternatives are indicated: involving national political responsibilities." Power to receive deposits.—The bank will If in any country there is more than one bank of have authority to receive deposits. This issue, the term "central bank" as used in this outline shall be interpreted to mean the bank of issue situated power is limited, by the condition that the and operating in the principal financial market of that "deposits must be of a nature consistent with country. the bank's functions with respect to the facili- If in the process of organizing the bank or in the per- tation of international settlements or in conformance of its functions after establishment it is found that the central bank of any country or its governor is nection with the German annuities." The unable to act officially or unofficially in any or all of board of directors or the executive committee the capacities provided for in this outline, or refrains shall have the right to consider applications to from so acting, alternative arrangements not inconopen deposit accounts, which may include a sistent with the laws of that country shall be made. variety of classes: (1) Deposits on annuity In particular, the governors of the central banks of the countries whose nationals are members of the account; (2) deposits from central banks; (3) present committee, or as many of them as are qualified deposits on clearing account; (4) deposits to act, may invite to become members of the board of originating in connection with the German directors of the bank two nationals of any country, annuities; (5) deposits in connection with the the central bank of which is eligible under this outline to take part in forming the board of the bank but does guarantee fund and relative to the mobilization not do so. The two nationals of that country, upon of the unconditional annuity; (6) special deacceptance of the invitation, shall be qualified to act posits of the German Government. in the full capacity of directors of the bank as provided in this outline. The bank shall have the right to pay interest Further, the directors of the bank shall be author- on deposits that are not susceptible of withized to appoint, in lieu of any central bank not exer- drawal until at least one month from the time cising any or all of the functions, authorities, or priviof deposit. The rate of interest shall be leges which this outline provides that central banks may or shall exercise, any bank or banking house of determined by the board of directors or by the widely recognized standing and of the same nationality. executive committee. Such bank or banking house, upon appointment and Reserve requirements.—Definite reserve acceptance, shall be entitled to act in the place of the requirements are placed against deposits. central bank in any or all capacities appropriate to central banks under this outline, provided only that Against clearing accounts, which constitute in such action is not inconsistent with the laws of the effect a gold settlement fund representing gold country in question. delivered by central banks or earmarked by Organization committee of bank.—The plan them for account of the Bank for International provides for an organization committee to put Settlements, the whole amount of the gold so the bank in operation. This committee is to deposited must be held. Against deposits be appointed by the governors of the central payable in 15 days or less a minimum reserve banks of the seven countries represented at of 40 per cent must be held in gold or in foreign the conference, each governor to appoint two exchange on gold standard or gold exchange members. In case any governor fails to standard countries. Against deposits of longer Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

JULY, 1929 FEDERAL RESERVE BULLETIN 463 maturity than 15 days a reserve of 25 per cent drawable in not less than five years from the in gold or foreign exchange must be held. time of deposit and, after four years, on not Powers of the bank.—The bank has the less than one year's notice." The other 25 power (1) to buy and sell gold, earmark gold, per cent is to go to the German Government and make advances on gold; (2) to buy and sell alone, to aid it in paying the last 22 annuities, bills of exchange and other obligations of prime providing it elects to make a long-term deposit liquidity; (3) to open and maintain deposit of the kind just described and amounting to accounts with central banks; (4) to rediscount 400,000,000 reichsmarks ($95,280,000). If the for central banks bills taken from their port- deposit is smaller, Germany's share in the folios, to make loans to them on security of profits will be proportionately smaller. Aside such bills, or to make advances to them against from sharing in profits, the deposit is to carry the pledge of other securities; (5) to buy and compound interest at the maximum current to sell intermediate or long-term securities rate paid by the bank on time deposits. If up to the amount of its capital and reserve the fund comes to exceed the amount required funds; (6) to invest in Germany reichsmark to pay the last 22 annuities the balance is to be funds standing to the credit of the bank at distributed among the creditor Governments the Eeichsbank, which are not transferable, in proportion to their outpayments during the owing to a declaration of transfer postpone- period. The provisions as to the distribution ment; against funds so invested the bank has of profits do not release the German Governauthority to issue counter obligations and to ment from its absolute liability to pay the sell them in non-German markets and to dis- prescribed annuities, whether any profits exist tribute the proceeds of such sales in the same or not. way as in the case of normal transfers; (7) to Broad view of bank's functions.—That issue its own obligations at long or short term, the committee does not regard the bank secured or unsecured, for the purpose of relend- solely as a factor in facilitating the payment ing to any central bank—in each case upon the of reparations is indicated by the following specific decision of the board of directors by statement: two-thirds vote. The injunction is laid down, It will be seen that the essential reparation functions however, that "the investment powers of the of the bank were such as to form a solid reason for its bank shall never be used in such a way as to existence; but the committee were led inevitably to exercise a predominant influence over business add to those reasons the auxiliary, but none the less interests in any country"; and the bank is material, advantages that it might have in the general position of present international finance * * *. permitted to conduct operations in any country The character of the annuities and the magnitude of the only with the consent of the central bank of payments to be transferred over the exchanges provide that country, and consistently with the policy at once the opportunity and the need for suppleof such bank. menting with additional facilities the existing machinery for carrying on international settlements Distribution of profits.—With regard to the and, within limitations, of the sound use of credit to annuity payments, not only will the bank contribute to the stability of international finance and the growth of world trade. * * * Especially it is carry out all the necessary operations involved to be hoped that it will become an increasingly close in administering them as trustee, but to some and valuable link in the cooperation of central banking extent its profits will be employed in assisting institutions generally—a cooperation essential to the the German Government to cover the an- continuing stability of the world's credit structure. nuities for the last 22 years. How important Complete settlement recommended.—In this assistance becomes will depend upon the connection with the adoption of the proposed volume of profits remaining after prior claims plan, the committee urges that there shall be a have been met. At the outset the bank is general liquidation of the other financial quesexpected to pay a 6 per cent dividend on paid- tions arising out of the war and the subsequent up share capital and to make heavy contribu- treaty of peace within one year from the coming tions to reserves. Thereafter the dividend into force of the plan. It recommends that this will gradually be increased to 12 per cent, if liquidation take place in a broad spirit of mutual earnings permit, and the contributions to re- concession, with the general object of confining serves will be diminished. Of the profits payments to those outlined in the plan. remaining after the payment of dividends and Belgian marks.—An annex to the plan the transfers to reserves, 75 per cent will be provides for machinery of a separate adjustdistributed "to Governments or central banks ment between Germany and Belgium in conof creditor countries or of Germany which nection with the German marks issued t^in maintain time deposits at the bank with- Belgium at the time of German occupation, Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

464 FEDERAL RESERVE BULLETIN JULY, 1929 which are now held by the National Bank of Dawes plan, with the adaptation of the Ger- Belgium. The experts " recognize that the man banking law, and with the adaptation of new plan can not become operative until the the German railway law. When the Govern- Belgian and German Governments have come ments have approved the plan, it is contemto an internationally binding agreement on the plated that a special committee be organized mark claim." to do the administrative work for setting up Organization committee.—In addition to the the organization provided for by the plan and organization committee for the Bank for Inter- for handing over to it the functions of existing national Settlements, which has already been organizations. The task of transferring the mentioned, the experts' report provides for functions of the existing organizations to the other committees to put the other parts of the Bank for International Settlements is to be plan into effect. Each of these other commit- conferred upon a small special committee comtees is to consist of the same number of repre- posed of two members of the organization sentatives of the creditors and of the debtor, committee of the Bank for International Settlewith a neutral chairman to be called in case ments, as well as of representatives of the of disagreement. The committees are to deal, German Government, the Agent General, and respectively, with the adaptation of the Ger- the Reparation Commission, an equitable repreman loan set up under the Dawes plan, with sentation being assured to the powers reprethe handling of the securities assigned to the sented on the present committee. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

JULY, 1929 FEDERAL RESERVE BULLETIN 465 TEXT OF THE REPORT We transmit herewith to the Governments which German experts: Dr. Hjalmar Schacht, Dr. A. took part in the Geneva decision and to the Reparation Voegler. Alternates: Dr. C. Melchior, Dr. L. Kastl. Commission our proposals for a complete and final British experts: Sir Josiah Stamp, G. B. E.; Lord settlement of the reparations problem, including the Revelstoke, G. C. V. O. Alternates: Sir Charles settlement of the obligations resulting from the existing Addis, K C. M. G.; Sir Basil Blackett, K. C. B., treaties and agreements between Germany and the K. C. S. I. creditor powers, and we unanimously recommend the Italian experts: Dr. Alberto Pirelli, M. Fulvio following plan to the Governments concerned. Suvich. Alternates: M. Giuseppe Bianchini, M. Bruno Dolcetta. PART I Japanese experts: Kengo Mori, Takashi Aoki. Alternates: Saburo Sonoda, Yasumune Matsui. APPOINTMENT, TERMS OF REFERENCE, AND CONSTITU- American experts: Owen D. Young, J. P. Morgan. TION Alternates: Thomas N. Perkins, T. W. Lamont. This committee originated with the decision taken We have to record our deep sense of regret at the by the Belgian, British, French, German, Italian, and death of Lord Revelstoke, which took place suddenly Japanese Governments to entrust to independent at an early hour on Friday, April 19. By his untimely experts the task of drawing up proposals for a complete removal from our counsels we suffered the loss of one and final settlement of the reparation problem. Twelve whose unfailing tact and wisdom had gained the affecexperts were to be chosen among the nationals of coun- tion and respect of all of us and contributed greatly tries which participated in this decision and two among to our progress. In honor of his memory all meetings the nationals of the United States of America. Each were suspended until Tuesday, April 23. On April of the experts invited was empowered to appoint an 20 the Reparation Commission unanimously passed a alternate. resolution'' deploring the death of Lord Revelstoke and The appointments of the invited experts as members instructing the general secretary to convey an expresof the committee were made according to the following sion of sympathy to the committee of experts on the procedure: loss of their distinguished colleague." The Belgian, British, French, Italian, and Japanese In a separate communication the Reparation Comexperts were appointed by the Reparation Commission mission advised the committee that they had upon the nomination of their respective Governments. "Unanimously appointed, on the nomination of His The German experts were appointed by the German Britannic Majesty's Government, Sir Charles Addis, Government. K. C. M. G., to be a member of the experts7 committee The experts being citizens of the United States of in succession to the late Lord Revelstoke." America were appointed by the Reparation Commission On May 23 the committee were advised that the conjointly with the German Government. German Government had appointed Herr L. Kastl to The mandate of the committee of experts thus formed be a member in the place of Dr. Voegler, of whose is set forth in the following terms of reference: resignation the committee had learned with regret on "The Belgian, British, French, German, Italian, and the previous day. Japanese Governments, in pursuance of the decision reached at Geneva on September 16, 1928, whereby PART II it was agreed to set up a committee of independent financial experts, hereby entrust to the committee the MEETINGS OF COMMITTEE task of drawing up proposals for a complete and final settlement of the reparation problem: These proposals The experts met for the first time informally at the shall include a settlement of the obligations resulting Bank of France on Saturday morning, February 9, from the existing treaties and agreements between to fix the date of the first meeting of the committee Germany and the creditor powers. The committee and to discuss matters of organization and procedure. shall address its report to the Governments which The first regular meeting of the committee was held took part in the Geneva decision and also to the Rep- on Monday, February 11, at 2 o'clock in the afternoon, aration Commission." in the Hotel George V. At this meeting Mr. Owen D. The committee was constituted with the following Young was unanimously chosen chairman. membership: The committee has been in continuous session over a Belgian experts: M. Emile Francqui, M. Camille period of some seventeen weeks. Subcommittees were Gutt. Alternates: Baron Terlinden, M. H. Fabri. set up as required for the study of particular questions French experts: M. Emile Moreau, M. Jean Par- and met frequently in the intervals between the plenary mentier. Alternates: M. C. Moret, M. Edgar Allix. sessions. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

466 FEDERAL RESERVE BULLETIN JULY, 1929 PART III banish the atmosphere of the war, to obliterate its animosities, its partisanships, its tendencious phrases; ATTITUDE OF THE COMMITTEE and to work together for a common end in a spirit of The report of the Dawes Committee opened with mutual interest and good will. the following words: "We have approached our task as business men anxious to obtain effective results. We have been PART IV concerned with the technical, and not the political, THE STUDY OF GERMANY'S ECONOMIC CONDITIONS aspects of the problem presented to us. We have recognized, indeed, that political considerations necessarily During the course of its deliberations the comset certain limits within which a solution must be found mittee have given close consideration to the various if it is to have any chance of acceptance. To this extent, aspects of Germany's present economic position and and to this extent only, we have borne them in mind." future potentialities, because of their material rela- It is in this spirit that the present committee have tion to her capacity to discharge obligations to foreign addressed themselves to the task of rounding off the creditors. work of their predecessors which was advisedly left The committee had among their number six memincomplete. By determining the number and amount bers of the Dawes committee of 1924, whose contact of the annuities and by providing for the conversion with this aspect of the subject was obviously at that of the reparation debt from a political to a commercial time close and responsible. Further the committee obligation, they have to the best of their ability tried includes several who have been associated with the to perform the task committed to them of devising a practical working of the plan. These members have scheme which might fairly be accepted by all parties naturally had an unusual and continuous interest in concerned. the course of events unrolled during the past five Throughout our deliberations and in our present years. proposals we have endeavored to reach our conclusions Furthermore, the periodical reports made by the on economic and financial grounds. But we have agent general and trustees and commissioners upon realized, like our predecessors, that political factors the working of the Dawes plan and the reports of the necessarily set certain limits within which a solution Reichsbank itself, have given comprehensive reviews of had to be found if our proposals were to secure accept- Germany's position and development. The body of ance. We had therefore to base our decisions not knowledge so available and the public interest and only on economic but also to some extent on political discussion it has stimulated have been of the greatest considerations. Many important juridical questions assistance to the committee. are also involved, and while as financial experts we are Moreover, they have been specially assisted by the not specially qualified for going into details on them, able and lucid descriptions of the present economic their broader aspects have been always in our minds. condition of Germany and the possibilities of German Indeed, it has been clear to us that close attention development which have been made by the German to them would have made our handling of the larger experts, who were well fitted by their respective posiquestions well-nigh impossible; but the committee is tions in Germany to give, in combination, an impressive satisfied that the scheme it recommends is within its review of the subject. The considerations put forterms of reference. ward by them in our numerous discussions and in The meeting of the present committee of experts answer to the questions addressed to them have been marks the first occasion on which representatives of a constant and powerful influence in leading us to our all these six nations chiefly concerned (together with conclusions. American experts) have sat down together to work out The German experts have given the committee on a large scale the common problems of reparations complete information as to the demands for foreign and to cooperate in exploring the various means by capital made by German economy during recent years, which Germany could be enabled to discharge her and as to the items which in their opinion counteracted obligations. this; external assets of Germany, reconstitution of The Dawes report made no attempt to establish the stocks and of the machinery of the country. The the causes leading up to the situation which its provi- productivity of capital thus invested has been dissions sought to ameliorate. In adhering to this pre- cussed by the committee, who have also considered the cedent we have attempted to go further and, through comparison between the fiscal burdens and the burthe proposed creation of the machinery which we dens of public debt in Germany and in other countries. recommend, to set up an institution whose direction The German experts have also made statements befrom the start shall be cooperative and international in fore the committee as to the present state of German character; whose members shall engage themselves to industry and agriculture, the general level of wages, Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

467 JULY, 1929 FEDERAL RESERVE BULLETIN the budgetary situation, the balance of payments, not at that stage ready to reach a conclusion either as the financial effect of compensation to her nationals, to the amount of the annuities or the number of years the influence upon her trade of customs barriers abroad, during which they should continue. and the special situation of an industrial country Moreover, if Germany were to be given a definite such as Germany which has had to reconstitute her task to perform on her own responsibility, and if the working capital, and at the same time assume the bur- committee were to substitute for many of the features den of heavy international obligations. of the Dawes plan machinery of a nonpolitical char- The German experts laid stress on the question acter in the realm of general finance, it was clearly of natural resources available to Germany, whether necessary to elaborate a system for handling the within her borders or not, and on Germany's capacity annuities in a way which so far as it led to their comto pay as affected thereby. mercialization would remove them from the sphere of These statements have been present in the considera- intergovernmental relations. tion of the experts and in a large measure their con- In the first instance, some time was occupied by the clusions have been influenced by them. committee in hearing the statements from the German It is unnecessary for us to set out the various con- experts on German economic conditions and the outsiderations of an economic character which have led look for the future, so far as they affected Germany's to our conclusions on the capacity of Germany to capacity to pay obligations in foreign currencies. It transfer. We believe that in the scale of annuities and then became known that the German group felt that the conditions recommended we have given proper the ability of Germany to undertake a definite annuity regard to the potentialities of all the economic condi- obligation might vary according to the other provisions tions and financial forces normally and naturally comprised in the committee's recommendations, and involved. in particular according to whether the annuity was We believe further that in arranging for a part of entirely unconditional or whether some portion of it the annuity to carry rights of postponement and for was payable under arrangements for postponement in impartial inquiry we have provided for the possibility the event of financial and exchange difficulties. of meeting any abnormal or special difficulty arising The idea was also put forward that if such a situation which might seriously affect Germany's capacity for arose it was desirable for it to be immediately cona time, despite all that might be done by Germany's sidered by an appropriate nonpolitical committee, acting good-will and ingenuity to meet such difficulty without in an advisory capacity to the powers concerned, and having recourse to an altogether exceptional but never- meeting unostentatiously without waiting to be contheless very valuable expedient. stituted by the lengthy process of diplomatic action. As a substitute for the present system of transfer It was quickly realized that since the amount of the protection with its semipolitical controls, its deroga- burden which Germany could agree to accept was dition from Germany's initiative, and its possible reac- rectly related to such concomitant conditions, these tions upon credit, we are recommending a scheme of conditions must be first explored. annuities appreciably smaller than the Dawes obliga- At the same time, the possibility of accepting smaller tions and subject to new and elastic conditions, which annuities than those fixed under the Dawes plan was are described at length in the succeeding chapters of admittedly dependent upon the certitude and ease with the present report. which the creditors could commercialize the obligations As an internal burden to be borne by annual taxation under nonpolitical conditions. the scheme we propose is materially less; it is closely The arrangements that have been in force under the assimilated to commercial and financial obligations; Dawes scheme for liquidating a part of the annuity by it carries with it welcome freedom from interference means of deliveries in kind required consideration from and supervision and it is provided with adequate safe- two points of view: guards against any period so critical as to endanger (a) The substitution for the existing methods of a Germany's economic life. more elastic machinery which, as the Dawes committee recommended, should be nonpolitical; and (b) The gradual termination of the system at the PART V earliest moment consistent with existing relationships and with the interests of Germany, whose economic life COURSE OF THE PROCEEDINGS has been during the past few years gradually adapted The committee addressed themselves, at the outset, to them, and who would feel herself prejudiced in an to the essential task before them, namely, to determine economic sense by their too sudden termination. the number and amount of the annuities to be paid by The inquiries upon these subjects were found to be Germany; but they soon found the amounts were to a converging upon one central point, viz, the nature of considerable extent contingent upon the machinery the authority which should act as the chief medium for and form of payment and, therefore, that they were discharging the various functions under a new plan. 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468 FEDERAL RESERVE BULLETIN JULY, 1929 In the exploration of the problem of substituting Just as it had been difficult at the outset to table authority of an external, financial and nonpolitical char- and discuss a precise program of annuities under a new acter for the present machinery and controls of the system until such a system were agreed in outline^ Dawes plan (viz, the administration of the agent because the amounts were themselves dependent upon general and of the various commissioners in Berlin, and that system, so at this point in the discussions it bethose functions of the Reparation Commission which came difficult for the various members to form definite were involved), they immediately met with the neces- opinions and commit themselves on all details as they sity for a trustee to whom the payments in foreign cur- were elaborated in the new system until a clearer idea rencies and reichsmarks should be made by Germany of the obligations that would be undertaken by Gerand by whom the distribution to the appropriate many under that scheme had been obtained. recipients should be managed. Without, therefore, having resolved all points of In the second place, the problems of mobilization doubt on the new system or done more than sketch it and commercialization demanded a common center of in broad outline, they found that the moment had action and authority for the purpose of coordinating arrived when the discussion of figures became possible and controlling the arrangements, and there were obvi- and necessary. ous advantages in such an authority being of a contin- At this stage the following broad principles were uous or permanent character. understood to be likely to find their way into any final In the third place, the continued existence of settlement: deliveries in kind necessitated special machinery of (1) A division of the annuity into an unconditional direction and control, at any rate for a period of years. and a postponable part. They had already considered the desirability of an (2) The necessity for continuing deliveries in kind advisory committee which could take any necessary for a few years. action in connection with the declaration of a post- (3) The arrangement of suitable conditions for the ponement on the postponable part of the annuity. postponable part in times of exceptional difficulty. A permanent central authority might include among In order to put the question into concrete terms its functions the convening of such an advisory body, memoranda were tabled by the chairman, by the exinternational in character and existing as a constituent perts of the four chief creditor countries, and by the part of this central authority, to consider the situation German experts. A considerable time was spent in which had brought about the necessity for a post- discussing these proposals without agreement being ponement, or the situation which a postponement reached. itself created. Finally the chairman prepared a new and independent Again, the possibility that, either exceptionally or plan in whicn these divergent views were brought regularly as part of the plan, obligations would be closer together. The main feature of his plan was an discharged in marks within Germany necessitated a average annuity of 2,050,600,000 reichsmarks; and, financial authority to arrange for the disposition of subject to certain reserves as to the matters of detail, such funds or assets in the interests of the creditors, this figure was accepted by the entire committee as by arrangement with the Reichsbank or other German the basis of further discussion and led to the unaniauthority. mous recommendations now put forward. Among Moreover, in so far as the task of transferring the those reserves is the question of the settlement of the payments into foreign currencies involved, besides a Belgian mark claim which the committee had conrestriction of imports, an extension of German export tinually in contemplation and the unanimous agreetrade, we envisaged the possibility of a financial insti- ment upon which is to be found in Annex VI. tution that should be prepared to promote the increase of world trade by financing projects, particularly in undeveloped countries, which might otherwise not be PART VI attempted through the ordinary existing channels. These several considerations led the committee to BANK FOR INTERNATIONAL SETTLEMENTS the elaboration of a plan for a bank for international settlements which should, in its various functions, (a) General reasons for the constitution of an meet all of these points. The outline of this scheme institution with banking functions.—A general plan is given in section 6 and Annex I. for a complete and final settlement of the reparation It will be seen that the essential reparation functions problem, being primarily financial in character, involves of the bank were such as to form a solid reason for its the performance of certain banking functions at one or existence; but the committee were led inevitably to more points in the sequence between the initial payment add to those reasons the auxiliary, but none the less of the annuities and the final distribution of the funds. material, advantages that it might have in the general A banking institution designed to meet these requireposition of present international finance. ments justifies and makes logical the liquidation of all Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

JULY, 1929 FEDERAL RESERVE BULLETIN 469 political controls and provides, instead, machinery There is no hard and fast line between the two sets essentially commercial and financial in character which of functions, because the first leads naturally into the carries with it all the support and at the same time all second. the responsibilities that economic engagements imply. (b) Organization of the bank.—In view of the part The process of removing the reparation problem which the bank will have to play in the general interest, from the political to the financial sphere, which was it is advisable to place the control of its management begun in the Dawes plan, will thus be carried a step in the hands of the central banks, since these are further. the organizations responsible in each market for the In general terms, the institution will take over such convertibility of the national currencies and the control functions of the existing agencies as it may be neces- of credit. sary to continue and will perform the whole work of At the time of the bank's constitution the capital external administration, such as the receipt and dis- will be geographically distributed in such a way as to tribution of payments and the commercialization of associate in the bank's working and in its development all those parts of the annuities which are susceptible of of the countries interested in the reparation settlement being commercialized. and all the financial markets which may subscribe to The operations of the institution will be assimilated the bank's issues. to ordinary commercial and financial practice. Its Provision is made for the utilization of the net organization will be outside the field of political influ- profits of the bank, due allowance being made for the ences, and its powers and facilities will be sufficiently payment of cumulative dividends on the capital stock, broad to enable it to deal freely and promptly with to create suitable reserve funds. the problems involved in the settlement of Germany's Provision is also made, in case Governments or obligations. The institution will be equipped with central banks make long-term deposits with the bank, machinery which will provide an elastic element be- whereby they shall share proportionately in the tween the payments to be made by Germany and their remainder of the profits, after the requirements on realization. In consequence, the creditors will have account of dividends and the reserve funds have been further assurance that the effects of economic changes covered. on the flow of payments will be minimized, and Inasmuch as its international basis is an essential Germany, for her part, will have the possibility of feature which distinguishes the institution from all assistance during temporarily unfavorable conditions. others, it has no single fiscal allegiance and it is desir- It is obviously desirable, in the interest of obtaining able that in its movements in the various national results with the greatest efficiency, not to limit unduly markets it should not be hampered or restricted by the functions of the institution. The character of the considerations of relative fiscal burdens. It is therefore annuities and the magnitude of the payments to be recommended that the Governments of the countries transferred over the exchanges provide at once the concerned enter into a convention for the avoidance opportunity and the need for supplementing with of double and triple taxation of the bank along the additional facilities the existing machinery for carry- following lines: ing on international settlements, and within limita- (a) The funds and investments of the bank to be tions of the sound use of credit to contribute to the freed from national taxation at the point wljere they stability of international finance and the growth of derive interest, income, and profit. world trade. We consider that by judicious non- (b) All individuals and corporations receiving profit, competitive financial development the bank should interest, or income from the bank to be fully liable prove a useful instrument for opening up new fields of thereon to such taxation as such individuals and corcommerce, of supply and of demand; and will thus porations would attract if the profit, interest, or help to solve Germany's special problem without income were derived from any other source. encroaching on the activities of existing institutions. 1. Capital.—On the formation of the bank its In designing the plan for the Bank for International authorized capital will be in the equivalent of $100,- Settlements, which is given in outline in Annex I, we 000,000. The entire amount will be issued, but only were, therefore, mindful of the fact that these new 25 per cent of each share shall be called up until the facilities should not supplant, but should augment and board of directors decides on a further call. The perfect existing arrangements for carrying through allocation of shares by countries is provided for in international settlements. The bank will have— section 2 of Annex I. The shares will carry no voting (a) As its essential or obligatory functions those rights, but voting rights corresponding to the number which are inherent in the receipt, management, and of shares first issued in each country will be exercised distribution of the annuities, and (6) as its auxiliary or by the central bank of that country in the general permissive functions those which evolve more indirectly meetings attended by representatives of those banks from the character of the annuities. taking the place of general meetings of shareholders. 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470 FEDERAL RESERVE BULLETIN JULY, 1929 2. Administration.—The entire administrative con- Second, the bank will be in a position, in agreement trol of the bank will be vested in the board of directors. with the Reichsbank, to invest in Germany reichsmarks The functions cf a director of the bank are incompat- currently accruing to its account at the Reichsbank. ible with those involving national political responsi- This measure, to the extent to which it may be bilities, and the statutes of the bank will make the neces- utilized, will return to the German economy a portion sary provision in order to avoid such conflict of func- of the annuity and, through the bank's credit mechations. All the directors and candidates shall be ordi- nism, provide the foreign exchange with which to pay narily resident in Europe or shall be in a position to the current allotments to the creditors on account of give regular attendance at meetings of the board. the annuity. The governor of the central bank of each of the The application of either or both of these measures seven countries to which members of the present ex- is prompt and decisive, and they operate in advance perts' committee belong, or his nominee, will be en- of the time when difficulties present themselves rather titled to be a director of the bank ex officio. Each of than afterwards, and serve to ease any strain until these governors may also appoint one director, being a such time as the discount rate and other corrective national of his country and representative either of measures have had opportunity to exert themselves. finance or of industry or commerce. During the period It is not to be assumed that these two measures of the German annuities the governor of the Bank of should be reserved for emergency use. The use of the France and the president of the Reichsbank may each bank's credit by central banks within moderate limits appoint, if they so desire, one additional director of and over short periods may, in time, become a normal his own nationality, being a representative of industry function scarcely different in its exercise from the use or commerce. These 14 (or as the case may be, 16) of central-bank credit by banks and bankers. All directors will elect not more than 9 additional directors central banks, for ordinary exchange operations or for from lists furnished by and which may include the gov- other purposes, would frequently find it advantageous ernors of central banks in other participating countries. to make use of the facility. The second measure, that If, in the process of organizing the bank or in the of investing within Germany some portion of the annuperformance of its functions after establishment, it is ity receipts, should also find its uses in normal times. found that the central bank of any country or its gov- Both measures are necessarily limited by the funds ernor is unable to act officially or unofficially in exer- which the bank will have at its disposal and by the cising the functions, authorities or privileges accorded requirement that it maintain its liquidity at all to central banks under the plan, or refrains from doing times. so, alternative arrangements not inconsistent with the These are instances of the bank's utility to Germany. laws of that country will be made. These alternative They also illustrate the flexibility which the bank's arrangements are outlined in section 12 of Annex I. facilities give to the handling of the disbursements to 3. Distribution of profits.—The profits shall be di- the creditors. Further instances of joint benefit may vided in accordance with the provisions contained in be briefly indicated. Annex I. The bank will be able to give short-term and inter- (c) General observations on the bank.—The fore- mediate credit to purchasers of deliveries in kind, going outline of the functions and organization of the notably for the construction of public works on delivery* Bank for International Settlements, together with the in-kind account. Intermediate credit operations need fuller presentation of the bank plan in Annex 1, largely not be restricted, however, to any one country or to speaks for itself. It remains, however, to point out the purchase of any one country's goods. On the certain advantages which the bank offers as against the contrary, it would be desirable to broaden such operaexisting reparation procedure, and which advantages tions in the interest of world trade to the extent that accrue both to Germany and to the creditor countries, the directors of the bank approve. because the bank, in putting the payments on a business As a stabilizing factor in the foreign exchanges its basis, makes their receipt the more certain and facili- advantages are obvious, and if, in due time, the arrangetates their movement. ments provided for an international settlement fund The new facilities introduced by the bank are in are put into effective operation, the bank should go addition to the provisions given elsewhere in the plan far to eliminate the costs and risks now incurred in the whereby Germany is entitled to declare a postpone- shipping and reshipping of gold. ment of transfer. They are rather in the nature of The bank excludes from its procedure all political forestalling circumstances which might of themselves influences, and business principles and practice interlead to a transfer postponement. vene to facilitate the settlement of Germany's obliga- These measures of prevention are of two general sorts: tions without in any way qualifying her independent First, the bank may employ its power of giving and sole responsibility. credit to arrange temporary assistance in transferring The office for reparation payments and its associated the annuities. organizations in Berlin will be retired and the Repa- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

JULY, 1929 FEDERAL RESERVE BULLETIN 471 ration Commission's relations with Germany will be The range between the two figures (the unconditional terminated. Germany will assume the responsibility portion and the total annuity) is not to be taken as for raising and transferring the annuities, and the bank evidence of doubt as to Germany's capacity of transfer takes over the work of their receipt and disbursement. (or of payment); it represents, rather, the concession As already stated, the bank is so designed as not to that has been made to the honorable determination of interfere with the functions performed by existing insti- the German experts not to make themselves unconditutions, but it is to create for itself supplementary func- tionally responsible for any obligation which they tions in a special field of its own. To this end every are not certain is within their power of performance in care should be exercised in the organization and ad- all circumstances. It is, however, to be emphasized ministration of the institution. that the total amount of the annuity proposed, while In the natural course of development it is to be being far from covering the claims set forth by the expected that the bank will, in time, become an organ- creditors, is one which they have every reason to ization, not simply, or even predominantly, concerned believe can, in fact, be both paid and transferred by with the handling of reparations, but also with furnish- Germany. The fact that part of it is postponable ing to the world of international commerce and finance obviates the danger of being above Germany's capacimportant facilities hitherto lacking. Especially it is ity to transfer in a period of difficulty, and it was the to be hoped that it will become an increasingly close recognition of this principle which was one of the factors and valuable link in the cooperation of central banking enabling the German experts to accept this scheme institutions generally—a cooperation essential to the as an alternative not inconsistent with their original continuing stability of the world's credit structure. ideas. In recommending that the system of deliveries in kind should be continued for a limited period and in decreasing amounts we recognized, as is pointed out in PART VII section 8(F) of this report, the necessity for maintaining THE INFLUENCE OF THE FORM OF THE ANNUITY ON a transitional period so that all shock to existing THE AMOUNT economic conditions in Germany should be avoided. Germany's power to transfer is thus maintained un- We are proposing a series of total annuities which impeded by the friction of sudden changes in trade should be paid with the regularity of the coupons of conditions. ordinary marketable bonds. But it is well recognized that to the economy of every country there may possibly come at some time or other a year of stress PART VIII and difficulty. To make the economic scope of such a period the determinant of the maximum capacity in ANNUITIES the ordinary course would be to fix a sum quite unacceptable to the creditors and an unreliable test of The committee recommends that— normal capacity to pay. It would be like fixing the (1) The Governments shall fix the exact date of terstandard of physical effort expected from a workman mination of the Dawes plan and the substitution in his years of health and strength by what he is therefor of the new plan. In fixing such date the capable of doing in his occasional weeks of illness. Governments should bear in mind that this committee's While our proposals have made full allowance for calculations were made on the basis that the Dawes all normal and long-run considerations, it is possible plan would cease on August 31, 1929, and the new plan that over exceptional and short periods the natural commence on September 1, 1929. adjustments we contemplate might be insufficient. We In case the Governments should fix a date later than have accepted the argument of the German experts September 1, 1929, it is recommended that financial that, in undertaking a responsibility of this character, adjustments shall be made so that the basis of payments identical in its nature with the solemn covenants of a £>rovided for under the new plan shall nevertheless comdebtor on a commercial and financial basis, Germany mence as of September 1, 1929, and the basis of payis well advised to consider carefully what are the limits ments provided for under the Dawes plan should cease of the burden which are possible for her final accept- as of August 31, 1929. ance. We have, therefore, fully respected their scruples (2) Payments under the plan of the Dawes comas to the undertakings they are prepared uncondition- mittee should continue until the end of the present ally to sign and have introduced a feature which can act scheduled year, that is to say, August 31, 1929. as a safety valve in time of difficulty, viz, a right of (3) The new plan should go into effect September 1, postponement on Germany's initiative of the transfer 1929, with the value of the 37 annuities of 1,988,800,000 (and, to a less degree, of payment) of a portion of the reichsmarks until March 31, 1966, the payments for the annuity. Dawes loan to be added. 57856—29 4 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

472 FEDERAL RESERVE BULLETIN JULY, 1929 (4) Payments to be made under the Dawes plan Thereafter there remains the following schedule of during the five months' period preceding September 1, payments to be made by Germany subject to the special 1929, after allowing for the Dawes loan, should be provisions dealing with these years: treated as payments necessary to cover the require- 1966-67 1, 607, 700, 000 ments of the creditor nations during this transition 1967-68 1, 606, 900, 000 period, including outpayments for the year ending 1968-69 1, 616, 700, 000 March 31, 1930. 1969-70 1, 630, 000, 000 Should there remain any surplus after meeting the 1970-71 1, 643, 700, 000 foregoing requirements, the question of disposing of 1971-72 1, 653, 900, 000 such surplus, as well as all matters and expenses in 1972-73 1, 662, 300, 000 connection with the transition from the operation of 1973-74 1, 665, 700, 000 the existing arrangements to the new plan, shall be 1974-75 1, 668, 400, 000 settled and adjusted between the Governments. 1975-76 1, 675, 000, 000 (5) In order that the new annuities shall coincide 1976-77 1, 678, 700, 000 with the German fiscal years, the schedule of pay- 1977-78 1, 685, 400, 000 ments to be made by Germany on and from September 1978-79 1, 695, 500, 000 1, 1929, will be as follows (in reichsmarks): 1979-80 1, 700, 400, 000 Seven months, Sept. 1, 1929-March 1980-81 1, 711, 300, 000 31, 1930 742, 800, 000 1981-82 1, 687, 600, 000 36 German fiscal years: 1982-83 1, 691, 800, 000 Apr. 1, 1930-Mar. 31, 1931 1, 707, 900, 000 1983-84 1, 703, 300, 000 Apr. 1, 1931-Mar. 31, 1932 1, 685, 000, 000 1984-85 1, 683, 500, 000 Apr. 1, 1932-Mar. 31, 1933 1, 738, 200, 000 1985-86 925, 100, 000 Apr. 1, 1933-Mar. 31, 1934 1, 804, 300, 000 1986-87 931, 400, 000 Apr. 1, 1934-Mar. 31, 1935 1, 866, 900, 000 1987-88 897, 800, 000 Apr. 1, 1935-Mar. 31, 1936 1, 892, 900, 000 Out of the above annuities the following amounts shall Apr. 1, 1936-Mar. 31, 1937 1, 939, 700, 000 be unconditional, namely, payable without any right of Apr. 1, 1937-Mar. 31, 1938 1, 977, 000, 000 postponement of any kind in foreign currencies by equal Apr. 1, 1938-Mar. 31, 1939 1, 995, 300, 000 monthly installments, viz, 660,000,000 reichsmarks per Apr. 1, 1939-Mar. 31, 1940 2, 042, 800, 000 annum, to include whatever amounts are required for Apr. 1, 1940-Mar. 31, 1941 2, 155, 500, 000 the service of the German external loan of 1924. Apr. 1, 1941-Mar. 31, 1942 2, 180, 700, 000 The remainder of the annuity shall be payable in Apr. 1, 1942-Mar. 31, 1943 2, 198, 000, 000 foreign currencies by equal monthly installments, but Apr. 1, 1943-Mar. 31, 1944 2, 194, 300, 000 subject to the conditions as regards postponement of Apr. 1, 1944-Mar. 31, 1945 2, 207, 500, 000 transfer and of payment set out in Annex IV of this plan. Apr. 1, 1945-Mar. 31, 1946 2, 203, 800, 000 The German Government undertakes for the purpose Apr. 1, 1946-Mar. 31, 1947 2, 199, 500, 000 of the present provisions, as well as for the general Apr. 1, 1947-Mar. 31, 1948 2, 215, 200, 000 purposes of the plan, that the reichsmark shall have Apr. 1, 1948-Mar. 31, 1949 2, 210, 000, 000 and shall retain its convertibility into gold or devisen Apr. 1, 1949-Mar. 31, 1950 2, 316, 800, 000 as contemplated in section 31 of the present Reichs- Apr. 1, 1950-Mar. 31, 1951 2, 359, 200, 000 bank law, and that for these purposes the reichsmark Apr. 1, 1951-Mar. 31, 1952 2, 343, 200, 000 shall have and shall retain a mint parity of 1/2790 Apr. 1, 1952-Mar. 31, 1953 2, 346, 200, 000 kilogram of fine gold as defined in the German coinage Apr. 1, 1953-Mar. 31, 1954 2, 353, 300, 000 law of August 30, 1924.1 Apr. 1, 1954-Mar. 31, 1955 2, 364, 600, 000 For the purpose of paragraph (4), above, the outpay- Apr. 1, 1955-Mar. 31, 1956 2, 359, 800, 000 ments for the year ending March 31,1930, are as follows Apr. 1, 1956-Mar. 31, 1957 2, 354, 200, 000 (in reichsmarks): Apr. 1, 1957-Mar. 31, 1958 2, 361, 800, 000 France 338, 100, 000 Apr. 1, 1958-Mar. 31, 1959 2, 393, 800, 000 Great Britain 366, 600, 000 Apr. 1, 1959-Mar. 31, 1960 2, 370, 600, 000 Italy 107, 800, 000 Apr. 1, 1960-Mar. 31, 1961 2, 380, 500, 000 Belgium 23, 400, 000 Apr. 1, 1961-Mar. 31, 1962 2, 398, 300, 000 Rumania 8, 800, 000 Apr. 1, 1962-Mar. 31, 1963 2, 390, 200, 000 Serbia 5, 900, 000 Apr. 1, 1963-Mar. 31, 1964 2, 402, 600, 000 Greece 5, 300, 000 Apr. 1, 1964-Mar. 31, 1965 2, 402, 100, 000 Portugal 7, 200, 000 Apr. 1, 1965-Mar. 31, 1966 2, 428, 800, 000 Total 863, 100, 000 Constant annuity 37 years corresponding to i Attention is called to the letter from the president of the Reichsbank 1,988,800,000; Dawes loan to be added. given in Annex II. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

JULY, 1929 FEDERAL RESERVE BULLETIN 473 Provision is made in paragraph 11 of Annex I whereby of the opinion that the annuities recommended^ by a percentage of the special reserve fund accumulated them should not be drawn wholly from the German in the bank shall be placed at Germany's disposal, if budget, but that one source of payment utilized by required, toward meeting the last 22 annuities pay- the Dawes plan, viz, the railway company, should able under the above scale. be maintained. We desire to make it clear, however y In calculating the above annuities we have taken that the retention of a contribution from the railway into account the expenditures devolving upon Ger- company is recommended, not only from the point many during the period of the new plan such as were of view of security, but also as a suitable method of covered by the Dawes plan. However, we have not raising the necessary revenue. included the costs of commissions and the current We have also considered the position with regard expenses of occupation, as they are to continue only to the assigned revenues and, having regard to the fact until a date to be fixed by the Governments. The that these revenues are pledged as collateral security necessary arrangements for their payment should be for the service of the German external loan of 1924, made by the Governments in connection with the we feel it is impossible to recommend the release thereof. adoption of the new plan. Nevertheless, we are of the opinion that it would be Apart from the foregoing we recommend that, as suitable for the German Government to discuss with from the date of the putting into force of this plan, the trustees for the bondholders of that loan the possi- Germany's previous obligation shall be entirely bility of simplifying, as far as possible, the existing replaced by the obligation laid down in this plan, and machinery, and that the creditor Governments for their that the payment in full of the proposed annuities in part should accept a similar arrangement. The effecaccordance with this plan should be accepted by the tive security of the creditor Governments should be creditor powers as a final discharge of all the liabilities substantially that indicated in Annex III, section 3. of Germany still remaining undischarged, referred to Apart from these special questions the committee in section 11 of part 1 of the Dawes plan, as interpreted desires to record its view that the basis of security by the decisions already given by the interpretation for the payment of the annuities is the solemn undertribunal set up under the London agreement of August taking of the German Government, to which no further 30, 1924. guarantee can add anything whatsoever. That tribunal should be retained in existence, and The committee accordingly recommends that the any dispute that may arise between Germany, on the creditor Governments should take steps to release all one side, and the creditor Governments, or any one controls, special securities, pledges or charges which of them, or the bank, on the other side, as to the ex- may remain in their hands other than those specifically tent of these liabilities or as to any other question of referred to above, and should recognize that their the interpretation or application of this plan, should acceptance of the solemn undertaking of the German be referred to it for final decision. Government replaces any securities, pledges, charges In the course of their proceedings the experts of the or controls as may now exist. principal creditor powers have also dealt with the 2. The contribution from the German Railway Co.— question of the distribution of these annuities among Under the German railway law of August 30, 1924, the creditor powers. Their recommendations, drawn enacted in accordance with the Dawes plan, the German up after careful examination of the existing distribu- Railway Co. is subject to a mortgage for 11,000,000,000 tion arrangements and of other relevant considera- gold marks, in favor of the trustee for the German tions laid before them and with due regard to the railway bonds, and has issued to him a bond for 11,rights and equities of the other countries 1 having a 000,000,000 gold marks. This bond bears interest share in the Dawes annuities, are set out in Annex VII, at 5 per cent per annum and carries a cumulative which they consider an inseparable part of the present sinking fund of 1 per cent per annum, which first report. became operative on September 1, 1927, interest and sinking fund being guaranteed by the Government of the Reich. PART VIII (A) The plan contemplates the abolition of the railway COMPOSITION OP THE ANNUITIES bonds, together with the attendant circumstances of foreign participation in the management of the rail- 1. Source and securities.—The annuities are to be way, and substitutes a contribution from the railway derived from two sources: company as set out in the following paragraphs: 1. The German Railway Co. The railway company shall be under an obligation 2. The Budget of the Reich. to pay for 37 years a direct tax comprising, if neces- The committee, after a careful examination of the sary, the transport tax, to an annual amount of 660,proposals put forward by the German experts, were 000,000 reichsmarks, being equal to the annual amount 1 Greece, Portugal, Poland, Rumania, Serbia, Japan, and the United of the nonpostponable annuity. This tax shall be States of America. imposed by German legislation and the receipts Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

474 FEDERAL RESERVE BULLETIN JULY, 1929 therefrom guaranteed by the German Government. the relief from taxation which this plan will enable the The railway company shall deposit with the Bank for German Government to bring into effect. International Settlements a certificate acknowledging 5. The charge on the budget of the Reich.—Under its liability in respect of this obligation. the Dawes plan the contribution from the budget of The amount payable shall be raised from the gross the Reich in the fifth or current annuity year amounts revenues of the company, ranking after the expenditure to 1,250,000,000 gold marks, or one-half of the total on personnel and on the same footing with expenditure standard annuity. This contribution is a charge on material and consumable stores. It shall enjoy on the budget as a whole, specifically secured by priority over any other tax now levied on the railway the assignment of the revenues from customs, beer, company, or which may be levied in the future, and shall tobacco, sugar, and alcohol to the Commissioner of rank prior to any other charge, by way of mortgage or Controlled Revenues. These revenues are paid by the otherwise, on the company. It shall be paid direct collecting offices directly into the account of the comby the railway company to the account of the Bank for missioner at the Reichsbank. As early as practicable International Settlements at the Reichsbank in install- in each month, out of the funds accumulated in his ments as laid down in part 8. account, the commissioner pays into the account of the The foregoing conditions shall be incorporated in the Agent General at the Reichsbank one-twelfth of the law governing the railway company. annual contribution from the budget, and thereafter in It shall be one of the duties of the organization each month the revenues are automatically transferred committee proposed in Annex V of this report to make by him to the account of the German Government at suitable provision whereby the private and independent the Reichsbank. Under this plan the procedure to be character of the German Railway Co., including its followed will be worked out in detail by the appropriate autonomous administration in economic, financial, and organization committee proposed in Annex V, regard personnel matters, shall continue for the period of the being had so far as necessary to the arrangements which plan without interference from the German Govern- may be accepted by the trustees of the 1924 loan. ment. As the amount contributed by the German Railway 3. The transport tax.—In addition to the 660,000,000 continues for 37 years at the fixed level of 660,000,000 gold marks now payable directly by the railway com- reichsmarks a year, the charge on the budget of the pany, the Dawes plan requires a contribution to the Reich varies with the total amount of the annuity. In standard annuity of 290,000,000 gold marks out of the the second year it stands at the figure of 1,136,400,000 actual yield of the transport tax. This tax is imposed reichsmarks and rises to a maximum of 1,768,800,000 by the German Government, and the German Railway reichsmarks in the thirty-seventh year. Thereafter Company collects it for the Government. The total the contribution from the railway company ceases, the yield of the transport tax, now considerably in excess annuity falls sharply and the budget contribution of 290,000,000 gold marks, appears among the receipts covers the whole of the German liability for the reof the budget of the Reich, and the contribution qf mainder of the plan. 290,000,000 appears among its expenditures. Under The average increase in the budgetary contribution this plan the direct tax on the railway company com- during the first 20 years is about 24,000,000 reichsmarks prises, if necessary, the transport tax which is other- annually, or about 0.24 of 1 per cent of the total revenues wise relieved from any special charge on account of of the budget of the Reich, which at present are just reparations. under 10,000,000,000. This moderate and gradual 4. The charge on German industries.—Under the increase in the budgetary contribution under the industrial charges law enacted in accordance with the definitive settlement plan ought to be met in ordinary Dawes plan, bonds aggregating 5,000,000,000 gold years without recourse to additional taxation. Indeed, marks have been issued in respect of the German the substantial reduction of the budgetary contribution industries by the Bank for German Industrial Deben- as compared with the Dawes plan makes possible an tures to the trustee for the German industrial deben- immediate resumption of the tax-reduction program tures. These bonds bear interest at 5 per cent per which has been in progress since 1924. The committee annum and carry a cumulative sinking fund of 1 per hope that such further tax reductions, coupled with a cent per annum which first became operative Septem- definitive reparation settlement, will give a strong ber 1, 1927; principal, interest, and sinking fund being stimulus to saving and thereby materially assist in the guaranteed by the Government of the Reich. The internal formation of the new capital which Germany present contribution to the annuity from the industrial still requires. debentures thus amounts to 300,000,000 gold marks. This particular charge in no way differs from ordi- PART VIII (B) nary taxation save in the complications it involves in legislation and the machinery of collection. We PROGRESSION recommend that it be discontinued and that its The authors of the Dawes plan believed that they disappearance be taken into account in distributing could count upon a certain, substantial and progressive Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

JULY, 1929 FEDERAL RESERVE BULLETIN 475 increase in the prosperity of Germany, arising not only PART VIII (E) from the employment of the rapidly increasing wealth MEASURES OF SAFEGUARD of that country but also from the steady progress of The essence of the additional margin of safety given world prosperity, and this belief found expression in to a part of the annuities lies in the power to postpone the device of an index of prosperity. The plan contransfer. We are recommending, in order to protect templates that the amounts which Germany pays Germany against the possible consequence of a comupon a fixed scale shall increase, generally speaking, paratively short period of depression, which might, for year by year until 1966, reflecting in some small internal or external reasons, put such a severe strain on measure this anticipated increase in her prosperity. the exchanges as would make the process of transfer However, the annuities proposed are to start at a level abroad dangerous, that the German Government which not only gives immediate and important relief should have the right, on giving 90 days' notice, to to the German budget, to her exchange position and postpone transfers for a period not exceeding two years to her need for additional internal formation of capital, under conditions set out in Annex IV. During the as compared with the standard Dawes annuity of period of postponement the liability of the German 2,500,000,000 gold marks, but also provides the Government with regard to the sums affected would greatest possible assurance that the new scheme will in the first instance be limited to payment in reichsfunction from the beginning without any hitch or marks to the account at the Reichsbank of the Bank disturbance. for International Settlements. Under certain conditions part of this payment may also be withheld. PART VIII (C) Upon the declaration of any postponement the Bank for International Settlements shall convene the special THE NONPOSTPONABLE ANNUITIES advisory committee. At any other time when the Not the least difficult part of the task was the German Government declare to the creditor Governdetermination of the figure which Germany could ments, and to the Bank for International Settlements immediately undertake as a final and unconditional that they have come to the conclusion in good faith obligation. The point at which difficulties might begin that Germany's exchange and economic life may be to arise in making transfers into foreign currencies is seriously endangered by the transfer in part or in full not exactly definable in advance; but every care has of the postponable portion of the annuities, the combeen taken to be so far within this limit as to remove mittee shall also be convened. every possibility of the risk of error. We recognize Upon being convened the special advisory committee that in fixing the figure payable by Germany in foreign shall forthwith consider the circumstances and concurrencies without any right of postponement whatever ditions which have led up to the necessity for postponeat 660,000,000 reichsmarks, we have taken a con- ment, or have created a situation in which Germany servative amount. But we are satisfied that it is considers that her exchange and economic life may be wiser deliberately to underestimate than to run the seriously endangered by further transfers of the postslightest risk of weakening German credit by pro- ponable portion of the annuity, and make a full investiposing a figure which might not command instant gation of Germany's position in regard to her obligaacceptance by well-informed public opinion. tions under this plan. In their report to the Governments and to the bank, having (in case of a postponement of transfer) satisfied themselves that the German PART VIII (D) authorities have used every effort in their power to fulfill their obligations, they shall indicate for considera- THE POSTPONABLE ANNUITIES tion by the Governments and the bank what in their In addition to the unconditional part of the annuity opinion are the measures that should be taken in regard we propose a postponable part, transfer of which to the application of the present plan. may in certain circumstances, set out below, be post- It shall further be the duty of the bank during a poned for a period not exceeding two years. postponement of transfer to direct, in conjunction with This postponable part of the annuity is designed to the Reichsbank, the employment of the reichsmarks meet the situation which might arise in a period of paid to its account at the Reichsbank by the German special economic difficulty and distress. There will be Government. (See sec. 6 of Annex I to this report.) other ways of meeting such a situation, and if they are The following paragraphs sketch the organization of applied our view is that recourse to this abnormal the special advisory committee of the Bank for Intermeasure will not in fact prove to be necessary. Never- national Settlements, referred to in the preceding paratheless, as an additional precaution it is valuable to graphs: Germany and provides by its very existence a safe- (1) The committee shall act in a purely consultaguard against the dangers which too rigid a framework tive capacity. Its findings shall have no effective force might have called into existence. unless confirmed and accepted by the bank as trustee Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

476 FEDERAL RESERVE BULLETIN JULY, 1929 of the creditors and, if necessary, by the Governments creditor powers, and that it would impose difficulties concerned. upon the export trade of Germany which might be (2) The committee shall play no part in connection injurious to her capacity to transfer. with the unconditional annuity accepted by Germany We therefore recommend that the principles of the and referred to in the plan as the "unconditional Dawes plan with reference to deliveries in kind should annuity." continue in existence for a limited period, and that the (3) The committee shall be convened by the bank creditor nations should agree for a period of 10 years to according to the rules of its own constitution when absorb by this means, in respect of each year, a limited notice shall be received from the German Government. and decreasing amount of the postponable portion of It shall not be required to meet at any other time. the annuity substantially in accordance with the (4) The committee shall consist of seven ordinary following table: . and four coopted members. The ordinary members Reichsmarks shall be nominated one by each of the following: The First year 750,000,000 governors of the Reichsbank, the Banque de France, Second year 700, 000, 000 the Bank of England, the Banque Nationale de Bel- Third year 650, 000, 000 gique, the Banca d'Italia, the Bank of Japan, a Federal Fourth year 600, 000, 000 reserve bank of the United States, or some other agreed Fifth year 550,000,000 American financial institution. Sixth year 500, 000, 000 In the last two cases such nominee being ordinarily Seventh year 450, 000, 000 resident in Europe or in a position to give prompt at- Eighth year 400, 000, 000 tendance on a meeting of the committee being called. Ninth year 350,000,000 These nominees of the governors of the banks shall not Tenth year 300, 000, 000 be officially connected with the banking institutions in The foregoing table to be adapted to the actual question nor with the Government departments of their annuities of the new plan without increasing the total. respective countries. After being summoned they may, The creditor powers, by arrangements effected if they so desire, coopt not more than four additional among themselves, will fix the proportions in the total members with the intent that special aspects, whether of each year's volume of deliveries in kind (including in finance, exchange, industry, etc., of the particular deliveries under reparation recovery acts or any situation in question shall be represented. During the equivalent system substituted therefor by agreement course of the proceedings and until the report is made up to 23.05 per cent for Great Britain and 4.95 per cent the coopted members shall be equal in all other respects for France of the total amount provided for each year) to the ordinary members, but they shall thereafter be which each of them will receive. discharged from office. The Bank for International Settlements shall manage (5) The committee may proceed by way of hearing the disbursements on deliveries-in-kind account, and evidence or asking for documents as it may desire, but in making distributions of cash to the creditor countries the president of the Reichsbank, and/or any other shall have due regard for those portions of the annuity person nominated by the German Government, may which are restricted to payments for deliveries in kind. appear before or submit to the committee the reasons The committee also recommends that new regulations for which a postponement has been declared or measbe adopted by the Governments modifying the Wallenures are desirable as indicated above. berg regulations to conform to the new plan and, so The committee shall neither grant nor refuse a postfar as practicable, simplifying and liberalizing them. ponement. After making inquiry it shall report to the The committee recommends that provision be made Governments and the bank as indicated above. in the new regulations permitting the several powers (6) Unless otherwise arranged by consent, the exto dispose of some part of their respective quotas of penses of the special advisory committee shall be borne deliveries outside of their own territories under suitable by the German Government. restrictions. The proposed repartition of the deliveries in kind PART VIII (F) among the several creditor powers is contained in Annex VII, dealing with repartition of the annuities. DELIVERIES IN KIND The system of deliveries in kind under the Dawes plan has come to play an important role in the economic PART IX life of Germany. We would not suggest the unlimited LIQUIDATION OF THE PAST continuation of this system, which is open to many objections of a practical as well as a theoretical nature. In order to arrive as rapidly as possible at a general We have felt, however, that its immediate cessation liquidation of the financial questions raised by the war would not be in the interests of Germany nor of the and the subsequent treaty of peace, a liquidation which Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

JULY, 1929 FEDERAL RESERVE BULLETIN 477 alone can insure the definite return of Europe to normal soon as possible in order to promote the spirit of interfinancial and economic conditions, the committee rec- national harmony and collaboration, the experts unaniommends the clearing up of these questions in a broad mously recommend to the creditor Governments that spirit of mutual concession. within the first year of operation of the new plan they We understand that a settlement on these lines will complete the work of the experts' committee by dealing render obsolete the accounts between the Reparation with and disposing of the claims and debts for ceded Commission and Germany relating to transactions properties and liberation bonds held in the hands of prior to the period of the Dawes plan, together with the Reparation Commission against the so-called succesall accounts involving credits against the original sion States. This question is referred to in Annex VII. capital debt. We are strongly of the opinion that these accounts should be closed at the earliest moment. PART X The creditor Governments, under this plan, will be reducing the whole body of their claims arising out of COMMERCIALIZATION AND MOBILIZATION the war or under the treaty of Versailles to a con- Having recommended the creation of the Bank for siderable extent. The experts of the creditor countries International Settlements in order to provide maare aware that past transactions have given or may chinery for the removal of the reparation obligation from give rise to claims by Germany, some of which are still the political to the financial sphere, we have further conunsettled, and, while they are not able to go into the sidered what procedure is necessary in order to assimimerits of these claims, they consider that the creditor late this obligation as closely as possible to an ordinary Governments are fully entitled to expect that Germany commercial obligation ('' commercialization "). should waive them in consideration of the consolidation Further, certain Governments are known to attach of the creditors' claims at a reduced figure. Any other particular importance to the possibility of raising course would be inconsistent with their intention that, money by the issue to the public of bonds representing just as the new annuities cover all the claims defined the capitalization of the unconditional portion of the in Part XI of the Dawes plan, so they should be paid annuity ("mobilization"). free of deduction in respect of any past transactions. It is, of course, not within our power to advise as The committee recognizes, however, that this is entirely to the time at which such issues can be made with a matter for the Governments to deal with. advantage or as to the terms and conditions on which To assure the general confidence indispensable for issues should be made. The arrangements to be made the successful working of this plan, the committee would, no doubt, vary according as, for example, an recommends that the Governments make no further issue is to be made for cash in the general interest of use, from the date of the acceptance of this report, of all the creditor Governments, or an internal issue is to their right to seize, retain and liquidate property, rights be made in one single country by way of conversion and interests of German nationals or companies con- of government debt. It will be the province of the trolled by them in so far as not already liquid or liqui- bank itself to advise upon such matters; but we have dated or finally disposed of, and that the outstanding thought it necessary to advise a framework within questions concerning such property should be definitely which these operations may take place. cleared up within one year after the coming into force This framework is given in Annex III. It provides, of this plan by arrangements between the Governments first, that the annuities themselves shall be represented concerned and Germany. This recommendation nat- by a German Government certificate of indebtedness urally has no application in cases where special set- deposited with the bank, similar to those in use in tlements have already been made. ordinary commercial practice (a proper distinction The acceptance of this plan necessarily involves the being made in the coupons between the conditional dissolution of the joint liability of Germany on the one and unconditional portions of the annuity). The proside with Austria-Hungary and Bulgaria on the other visions regarding security are given in the annex and side for reparation, and therefore finally abolishes the conditions in which mobilizable bonds should be every obligation, present or future, in either direction created and issued are defined. which may result between these powers from this joint One of the most important provisions of this scheme liability. is that annuity moneys should be distributed by the The committee recommends, in particular, that the bank in strict proportion to the rights of each party— creditor powers should abstain from recovering the whether Government or bondholder. credits of Germany against her ex-allies referred to As far as, according to the conditions of the issue, in article 261 of the treaty of Versailles, Germany reparation loans (general or conversion loans) are for her part renouncing any net balance which might subject to an anticipated redemption, Germany should be due to her as a result of these credits. be entitled to redeem these loans; the part of the annuity In their unanimous desire that the remaining financial destined for the service of the redeemed loan will then questions arising out of the war should be settled as accrue to her. The wish has been expressed that, so Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

478 FEDERAL RESERVE BULLETIN JULY, 1929 far as possible, reparation loans will not be issued 4. Postponement safeguards.—Nevertheless, if an without granting the debtor an appropriate right exceptional emergency interrupts the normal course of of anticipated redemption. economic life to which the scheme is adapted, Germany We recommend that Germany should also have the can, on her own initiative, resort to certain measures of right to redeem all or any part of not yet mobilized temporary relief. annuities on a basis of 5>4 per cent discount. The annuity is divided into two parts, of which one is subject to postponement of transfer and payment. Germany will thus be enabled, under certain circum- PART XI stances, temporarily to relieve her balance of payments and will, in fact, enjoy the advantages of a form of THE NEW PLAN CONTRASTED WITH THE DAWES PLAN transfer protection without its attendant limitations. The Dawes plan, although drawn up at a time of 5. Deliveries.—While the Dawes plan reluctantly intense crisis, has by a test lasting over nearly five accepted the expedient of deliveries in kind, the new years justified by facts the postulates on which it was plan, in spite of the desire of the creditor powers to disbased as regards both the restoration of the public pose freely of their shares of the annuities, recognizer finances of Germany and her economic recovery. the undesirability of a sudden cessation of the system It may be well to summarize briefly the points of at present in force. The creditors are, therefore, to advantage—whether to Germany or her creditors— take deliveries in kind for 10 years, but in decreasing claimed for the new proposal, which justify a departure amounts, beginning with 750,000,000. from a scheme that has in the past rendered signal service. 6. Mobilization.—From the point of view of the The plan drawn up by the committee to afford a creditor powers an essential feature of the new plan definite solution of the reparation question accom- which induces them to agree to reduction on their panies a reduction in the existing obligation of Ger- claims that leave them burdened with a considerable many by an essential modification in their financial part of their expenditure for the damages caused by and political status. In so far as the creditors are the war, is the fact that the annuity is paid in a form relinquishing substantial advantages in the face value lending itself to mobilization. of payments due under the Dawes plan, they are 7. Financial organization.—The organization and doing so only by reason of those improvements in machinery of the Dawes plan were based on the conintrinsic and available values which arise from the viction that it must find its proper guarantee in the practicability and certainty of commercialization and interest of all parties to carry it out in good faith. In mobilization within a reasonable period and in its attend- aiming, as it did, at the transference of the reparation ant financial and economic psychology. payments from the political to the economic and busi- Among the modifications which are considered ness sphere, it presumed constant cooperation of specially important are the following: debtor and creditors alike. 1. Fixation of the period and the debt.—The Dawes The new system goes further along the same road, plan imposes, in virtue of the index of prosperity, in- replacing the collaboration of separate administrative creasing annuities, of which the number is not fixed. and governmental organization by common work in a The new program indicates a definite number of fixed purely financial institution, in the management of which annuities. Germany is to have an appropriate part. The present 2. Disappearance of the index of prosperity.—Only administrative organizations can not have all the elasestimates, which vary very widely, of the ultimate effect ticity necessary for banking transactions of the magniof the index of prosperity can at this date be made. tude of the payment and transfer of the annuities; but But in no circumstances could Germany benefit there- the new bank, in close association with the banks of from, and the disappearance of this element of uncer- issue and with the banking facilities at its command, tainty is wholly to her benefit. will have all the necessary means of effecting these 3. Attainment of financial autonomy.—Under the operations without disturbance to the German econ- Dawes plan Germany can only obtain the discharge of omy or to the economy of other countries. In addiher obligations in marks by the existence of a system tion, it will be in a position to open up to trade new of transfer protection which involves a measure of possibilities of development. The operations which it external control. This brings attendant limiting effects is to undertake can not be disturbed or hampered withon German credit and financial independence which out irreparable damage to the credit of the countries render difficult, if not impossible, any mobilization of concerned. This assurance should make it possible to the German debt. The new plan would be abandoning limit the guarantees established under the present systhe fundamental purposes for which it was intended if tem for the protection of the rights of the creditors it did not cancel this clause and leave to Germany the to the minimum required for the prompt and facile obligation of facing her engagements on her own un- commercialization of the mobilizable part of the trammeled responsibility. annuity. 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JULY, 1929 FEDERAL RESERVE BULLETIN 479 8. Summary.—The proposed plan continues and indivisible whole. It is not possible, in our opinion,, completes the work begun by the Dawes plan, which to achieve any success by selecting certain of our the position alike of Germany and of the other coun- recommendations for adoption and rejecting the others, tries made it impossible to do more than indicate in and we would desire to accept no responsibility for the outline in 1924. By the final reduction and fixation results of such a procedure nor for undue delay in giving of the German debt, by the establishment of a progres- execution to our plan." sive scale of annuities, and by the facilities which the FRANCQUI. A. PIRELLI. new bank offers for lessening disturbance in the pay- GUTT. SUVICH. ment of the annuities, it sets the seal on the inclusion E. MOREAU. KENGO MORI. of the German debt in the list of international settle- J. PARMENTIER. TAKASHI AOKI. ments. If it involves appreciable reduction of payments HJALMAR SCHACHT. OWEN D. YOUNG. to the creditor countries on what might have been an- KASTL. J. P. MORGAN. ticipated under the continued operation of the Dawes J. C. STAMP. THOMAS N. PERKINS. plan, it at the same time eliminates the uncertainties C. ADDIS. T. W. LAMONT. which were inherent in that plan and were equally PARIS, June 7, 1929. inimical to the interest of the debtor and to the creditors by substituting a definite settlement under which the debtor knows the exact extent of his obligations. ANNEX I PART XII SUGGESTED OUTLINE FOR THE ORGANIZATION OF THE BANK FOR INTERNATIONAL SETTLEMENTS CONCLUSIONS In section 3 of the following outline provision is made It has been our object to make proposals for financial for an organization committee, which will have the obligations which, with the conditions and safeguards duty of putting the bank project into effect. This outthat accompany them, shall be within Germany's line has been drawn up for the benefit of the organizacapacity to pay, and we believe that we have achieved tion committee, which will have power generally ta this purpose. modify its provisions or to make substitutions for any We realize the responsibility of this declaration and or all of them, provided always that such modifications we recognize how much depends on the future attitude or substitutions shall not be inconsistent with the toward one another of the peoples which, by ratification essential functions of the bank with respect to the of their respective Governments, are to become parties experts' plan as a whole. to this agreement. 1. Purpose, name, and location.—The bank organ- For the solution of the reparation problem is not only ized under this plan shall be known as the Bank for a German task but in the common interest of all the International Settlements. countries concerned; and it requires the cooperation The purpose of the bank is to provide additional of all parties. If their attitude should be tinged with facilities for the international movement of funds and antagonism, even with suspicion, or a desire to create to afford a ready instrument for promoting internaor continue one-sided economic discriminations, a tional financial relations. In connection with the settlement perfectly feasible with goodwill would sooner German reparation annuities it shall perform, as trustee or later encounter difficulties, so that the long, slow, for the creditor countries, the entire work of external patient task of reconstruction in Europe would be administration of this plan, shall act as the agency for definitely retarded. For without good faith and mu- the receipt and distribution of funds, and shall supervise tual confidence all agreements, all guarantees, are and assist in the commercialization and mobilization of unavailing. certain portions of the annuities. If, on the other hand, our proposals are adopted with It shall be located in a financial center hereafter to good will by all concerned and the rest of the world has be designated. In selecting the country of incorporaconfidence in the constructive value of this mutual tion due consideration shall be given to obtaining accord, then, indeed, there can be no reasonable doubt powers sufficiently broad to enable it to perform its that the agreement will be capable of complete fulfill- functions with requisite freedom and with suitable ment, and the nations it concerns will be brought to a immunities from taxation. higher level of economic stability and of mutual under- 2. Share capital.—The authorized capital of the standing than ever before. bank may be expressed in the currency of the country Finally we would point out, like our predecessors on of domicile and shall amount to the round equivalent the Dawes committee, that " we regard our report as an of $100,000,000. Upon the formation of the bank the Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

480 FEDERAL RESERVE BULLETIN JULY, 1929 whole authorized capital shall be issued, but only into effect a temporary committee shall be created 25 per cent of each share shall be then paid in. The which will be known as the ''organization committee." board of directors of the bank shall have power to call This committee shall be appointed by the governors of for the payment of further installments. It shall also the central banks of the seven countries to which memhave the power to authorize an increase or a reduction bers of the present committee belong. The governor of in the total capital stock of the bank. each of these seven central banks shall be entitled to In each country in which the shares of the bank may designate two members of the organization committee be offered for sale the shares shall be issued through the with due regard for the necessity of including' in its central bank of that country or other agency to which membership persons versed in banking, the issue of the central bank offers no objection. bonds, and the work of the present committee of experts. In the seven countries to which members of the pres- If for any reason the governor of any of these central ent committee belong, issues or allocations of shares banks shall be unable officially or unofficially to desigshall always be made in equal amounts. The central nate members of the organization committee, or rebanks of these countries, or banking groups not ob- frains from doing so, the governors of the remaining jected to by them, shall guarantee the subscription of central banks shall invite two fellow nationals of the the whole of the first issue in the round equivalent of governor not participating to act as members of the $100,000,000; but they may agree with central banks committee. The members thus selected shall have in or groups in other countries (particularly those inter- all respects an equal vote in the work of the committee ested in reparations) that an amount of the first issue with the members otherwise chosen. The decisions of not exceeding the round equivalent of $4,000,000 for the organization committee shall be taken by a threeeach, and not exceeding the round equivalent of $44,- quarters vote. 000,000 in all, may be issued in other countries. As an essential part of its work the organization com- In the event of an increase in the authorized capital mittee shall proceed with drawing up a charter for the and a further issue of shares, the distribution among bank, which shall be consistent with the provisions of countries shall be decided by a two-thirds majority of the plan, and shall take such steps as may be necessary the directors of the bank on the above principles. In to insure its timely granting or enactment by appropriparticular, the percentage of the total shares issued in ate public authorities. the seven countries first mentioned above shall not fall The organization committee shall, until such time below 55. as the board of directors of the bank is appointed and Apart from countries interested in reparations, only takes office, proceed with the physical organization of countries which have, at the time an offering of shares the bank. It shall arrange, in accordance with the prois made, a currency stabilized on a gold or gold ex- cedure prescribed in section 2, for the subscription of the change basis may participate. capital stock, and in accordance with the procedure The shares may be expressed in the currency of the prescribed in section 4 for the appointment of the country in which the bank is domiciled and shall state board of directors. It shall call the first meeting of the amount of the share at the gold mint parity of the the board of directors and designate the temporary currency of the country in which they are issued. chairman to preside at that meeting, pending the elec- They shall be registered and continue to be resigtered, tion of the regular chairman. It shall draw up the but may be freely negotiated. Transfers of the shares statutes for regulating the administration of the bank after issue shall not affect the voting power reserved to and submit them to the board of directors for considthe central banks as described below. eration. These statutes shall make provision for such Payments to the shareholders on account of dividends matters as are usual in banking organization and in or at the liquidation of the bank shall be made in the particular provide for the following: currency of the country of domicile. (1) The qualifications for membership on the board The shares shall carry no voting rights; but voting of directors. rights corresponding to the number of shares originally (2) The nature and duties of the permanent comissued in each country shall be exercised by the central mittees of the board of directors, including the execubank of that country in the general meetings of the tive committee. bank (taking the place of the general meetings of share- (3) The administrative departments to be created holders) , which the representatives of the participating within the bank. central banks will attend. (4) The time and place of the meetings of the board The shares shall be entitled to participate in the of directors and of the executive committee. profits of the bank as indicated in the section " Distri- (5) The form to be used for the convocation of the bution of Profits." general meeting, as well as the conditions and the 3. Organization committee.—For the purpose of tak- methods for exercising voting rights on the part of ing the preliminary steps for putting the bank project representatives of central banks. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

JULY, 1929 FEDERAL RESERVE BULLETIN 481 (6) The form of trust certificates which the bank one additional director of his own nationality, being a shall issue to the creditor Governments under the plan. representative of industry or commerce. (7) Provisions with regard to liquidation of the (3) The governor of the central bank of each of the bank. other countries participating in the share ownership of The organization committee shall cooperate with the bank, as provided in section 2 of this outline, shall the organization committees provided for in this furnish a list of four candidates of his own nationality plan. for directorships. 4. Directorate and management.—The entire admin- Two of the candidates on each list shall be repreistrative control of the bank shall be vested in the board sentative of finance and the other two of industry or of directors, whose duty it shall be to supervise and commerce. The governors in question may themdirect the operations of the bank and in general so selves be included in this list. From these lists the 14 to act as to carry out those purposes of the plan com- or 16 directors mentioned in paragraphs 1 and 2 above mitted to the administration of the bank. shall elect not more than 9 other directors. In particular the board of directors— (4) From those first appointed, four groups of five (1) Shall have the right to adopt, modify, limit, or directors shall be chosen by lot. Their terms, respecextend the statutes of the bank in such a manner as tively, shall end at the close of each of the first, second, shall not be inconsistent with the provisions of the plan. third, and fourth years from the establishment of the (2) Shall have the power generally to modify the bank. Subject to this, the term of office of the direcprovisions contained in the outline of the bank's organi- tors shall be five years, but they may be reappointed. zation or to make substitutions for any or all of them, (5) In case of vacancy in a position on the board of provided always that such modifications or substitu- directors arising from death, resignation, or other tions shall not be inconsistent with the essential func- causes, the vacancy shall be filled in the same manner tions of the bank with respect to the experts' plan as a as prescribed for the original appointments. If a whole and with its existing engagements. vacancy occurs before the expiration of a term, it shall (3) Shall appoint the chief executive officer of the be filled for the remainder of the term only. bank and fix his remuneration. The directors shall elect a chairman annually from (4) May appoint an executive committee and dele- among their own number. The chairman's duties shall gate such powers to it as may be provided for in the be to preside at meetings of the board of directors. At statutes of the bank. the first meeting, until the chairman shall have been (5) May appoint advisory committees to deal with elected, a member of the board selected for the purpose any questions upon which information or advice is by the organization committee, shall act as chairman. desired. The ordinary decisions of the board, including those The functions of a director are incompatible with involving elections, shall be made by a simple majority those involving national political responsibilities. The vote. In case of an even division the chairman shall statutes of the bank shall make the necessary provision have a deciding vote. For decisions involving the in order to avoid such conflict of functions. All the adoption or amendment of statutes of the bank, modidirectors shall be ordinarily resident in Europe or shall fications or substitutions in the present project for the be in a position to give regular attendance at meetings organization of the bank, the distribution among of the board. countries of additional issues of stock in the bank, or The board of directors shall be made up in the fol- other matters for which the statutes of the bank make lowing manner: appropriate provision, a two-thirds majority shall be (1) The governor (or as the case may be, the chief required. Should a member not be able to attend a executive officer) of the central bank of each of the meeting of the board, it will always be open to him to seven countries to which members of the present com- empower one of his colleagues, by registered letter or mittee belong, or his nominee, shall be a director of by telegram, to vote for him and on his behalf. the bank ex officio. Each of these governors shall also If decisions of the board are disputed on the ground appoint one director, being a national of his country that they are inconsistent with the provisions or intent and representative either of finance or of industry or of the plan, recourse may be had to arbitration under commerce. In case the governor of any central bank the procedures laid down in part 8 of the plan. shall be unable to act either officially or unofficially The chief executive officer of the bank shall select according to the provisions of this paragraph, or the officers and heads of the departments of the bank. refrains from doing so, action shall then be taken in For the latter the appointments shall be subject to the accordance with the alternative procedure given in approval of the board of directors. section 12 of this outline. 5. Deposits.—The bank, in carrying out its functions (2) During the period of the German annuities the with respect to the facilitation of international settlegovernor of the Bank of France and the president of ments or in connection with the German annuities, the Reichsbank may each appoint, if they so desire, shall have the right to receive deposits of a nature Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

482 FEDERAL RESERVE BULLETIN JULY, consistent therewith. The board of directors or, as it The bank shall have the right to pay interest on may decide, the executive committee, shall consider deposits, but only on deposits not susceptible of withapplications to open deposit accounts, with authority drawal until at least one month from the time of to determine whether such applications come within deposit. The rate of interest to be paid will be deterthe scope of the bank's functions. mined by the board of directors or, as the case may be, Deposits shall be received in only those currencies by the executive committee. In allowing interest on which satisfy in the opinion of the board of directors deposits the board of directors shall give due considthe practical requirements of the gold or gold-exchange eration to the value of the services performed for the standard. depositor and the size of the depositor's balance. Any classification of deposits which the board of 6. Loans, discounts, and investments.—The board directors may set up shall include: of directors shall determine the nature of the operations (1) Deposits on annuity account.—These deposits to be undertaken by the bank. Such operations shall the bank receives in its capacity as trustee for the be consistent with the policies of the central banks of creditor Governments. They shall be managed accord- the countries concerned. The bank may in particular ing to the procedure given in section 8 of this outline. have the right (a) to deal directly with central banks, (2) Deposits from central banks.—These may be or (b) to deal through central banks which have agreed either current account deposits or investment account to act as its agent and correspondent, or (c) to deal deposits. with banks, bankers, corporations, and individuals of (3) Deposits on clearing account.—The bank shall any country in performing any authorized function, have the right, subject to such terms and conditions provided the central bank of that country does as the board of directors may set down, to accept not enter objection. Whenever any proposed credit % deposits from central banks for the purpose of estab- operation affecting any particular market comes up lishing and maintaining a fund for settling accounts for decision, the favorable vote of the governor of the among them. Such deposits may take the form of central bank concerned (or his nominee if the governor gold deliveries at the counters of the bank or of gold is not present) sitting as a member of the board of held for its account under earmark by any central directors or the executive committee, shall be taken bank participating in the fund for clearing accounts. as giving the assent of his central bank. If he declines The terms under which central banks may enter the to give his assent, the proposed credit operation shall clearing system, the rules and regulations for its not be undertaken in his market. operation, and the rates of exchange at which gold is Thus, the bank may perform such functions as the to be accepted as deposits in the clearing fund or to be following: withdrawn from it, shall be determined by the board (1) To buy and to sell gold coin and bullion, to of directors of the bank. earmark gold for the account of central banks, (4) Deposits originating in the exercise of the bank's and to make advances to central banks on gold as functions in connection with the German annuities and security. tending to facilitate such functions.—No such account (2) To buy and to sell for its own account, either shall be opened without the assent of the central bank with or without its indorsement, bills of exchange and of the country of which the prospective depositor is a other short-term obligations of prime liquidity, includnational. If the governor of the central bank in ing checks drawn or indorsed by central banks or in question (or his nominee) is present and voting at the respect of which three obligees are responsible. time the board of directors (or the executive committee) (3) To open and maintain deposit accounts with of the bank authorizes the opening of the account, central banks. his favorable vote shall be taken as giving the required (4) To rediscount for central banks bills taken from assent. their portfolios, to make loans to them on the security (5) Deposits constituting guarantee funds as providedof such bills, or to make advances to them against the in Annex VIII and relative to the mobilization of the un- pledge of other securities up to such amounts and for conditional annuity.—The interest and the share in the such periods as may be approved by the board of profits which will apply to these deposits are provided directors. for in Annex VIII and in the section on profits in this (5) To buy and to sell for its own account intermedioutline. ate or long-term securities (other than shares) of a (6) Special deposit oj the German Government.—character approved by the board of directors. Its hold- During the first 37 years the German Government shall ings of such securities at any one time shall not exceed maintain at the bank a noninterest-bearing deposit the total of its paid-in capital and reserve funds. equivalent to 50 per cent of the average deposit re- (6) To invest in Germany, with the assent of the maining in the annuity trust account, as described in Reichsbank, reichsmark funds standing to the credit of section 8 of this outline. This German Government the bank at the Reichsbank which are not transferable deposit will not exceed 100,000,000 reichsmarks. owing to a declaration of transfer postponement. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

JULY, 1929 FEDERAL RESERVE BULLETIN 483 The bank may realize upon any such investments, shall hold these certificates and obligations in safeat its discretion, unless at the time the investment was keeping and shall issue to the creditors its trust reagreed to by the Reichsbank some stipulation or ar- ceipts for such certificates and obligations. Upon the rangement affecting the possible sale was made a con- completion of the payments called for under these dition of such agreement. certificates and obligations for any one year, the The income from any such investments and the respective creditor Governments shall give their quitproceeds of such investments, if sold, shall be deposited tance to the bank, which, in turn, shall give its quittance to the credit of the bank at the Reichsbank. Such to the German Government, canceling and returning funds may be held as deposits under the conditions set any coupons representing the payments made. out in Annex IV of the plan or be reinvested consist- (3) Receiving and distributing the service of the ently with the provisions of that annex. German annuities. The specifications of this function If, in the opinion of the board of directors of the bank, are given in section 8 of this outline below. counterobligations issued against its investments in (4) Performing as regards deliveries in kind such Germany as collateral can be advantageously sold on functions as may be entrusted to it by the Governments non-German markets, their net proceeds shall be dis- in connection with the acceptance of the new plan. tributed to the creditor countries in such proportions (5) Dealing with the measures of safeguard provided -and under the same conditions as would have applied in the plan. Upon receiving notification from the in the case of normal transfer. The accounts of the German Government, consistently with the provisions creditor powers shall be charged with the reichsmark of the plan, the bank shall convene the special advisory cost of the securities alienated or pledged in the committee whose composition, procedure, and action course of any such transaction. If the board of direc- are provided for in section 8 (E) of the plan. tors of the bank decides that counterobligations can (6) Acting as trustee under trust agreements. The not be sold advantageously, the income and net pro- bank shall have the power to act as trustee under trust ceeds of the investment, when finally disposed of, shall agreements entered into by it with the approval or on be distributed to the creditors. the initiative of its board of directors, which has as its The foregoing power is in addition to the general purpose the issue by the bank of trust certificates or powers of the bank to make and realize upon invest- other obligations against investments in securities ments for its own account at any time, subject to the pledged as collateral therefor. This power may be provision that such investments are to be made with exercised in addition to the powers with respect to the assent of the central bank concerned. investments provided for in section 6, above. (7) To issue its own obligations at long or short (7) Acting as trustee under special agreements. term, secured or unsecured, for the purpose of relending The bank shall be authorized to act as trustee under to any central bank, in each case upon the specific any special agreements among the creditor countries decision of the board of directors by a two-thirds vote. covering the repartition of the annuities or the guar- The investment powers of the bank shall never be antee of any parts of them. used in such a way as to exercise a predominant in- In particular the bank shall have power to act as fluence over business interests in any country. The trustee under the agreement specified in Annex VIII of board of directors shall guide the investment under- the plan. The bank shall be authorized to pay interest takings of the bank accordingly and shall be entitled, on any guarantee fund deposited with the bank in if necessary, to make special regulations in this respect. connection with any such trust and to arrange the 7. Trustee functions, general provisions.—The bank terms on which the deposit is to be received and the shall be trustee of the creditor Governments in dealing fund managed, all in accordance with the plan. with the German annuities and shall have such general (8) Acting as trustee at the request of a creditor powers of administration consistent with the plan as Government, the German Government or the central are necessary to the prompt and complete exercise of bank of any one of those countries. The bank shall its duties in that respect. The organization committee have the right, upon the approval of the board of direcshall draw up appropriate forms of trust agreement tors, to undertake any trust functions which any between the creditor Governments and the bank. creditor Government or the German Government or The trust functions of the bank shall include the any of their respective central banks proposes that it following: shall undertake, provided such functions are generally (1) Receiving and disbursing to the paying agents consistent with the purposes of the plan. the service on the German external loan, 1924. If (8) Trustee functions: The bank as depositary arrangements can legally be made, the bank shall also for the service of the German annuities. —The bank, act in the capacity of one of the trustees for that loan. in it scapacity as trustee for the creditor Govern- (2) Receiving from Germany the various certificates ments, shall receive and distribute the funds repreand obligations provided for in the plan. The bank senting the service of the German annuities. In Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

484 FEDERAL RESERVE BULLETIN JULY, 1929 fulfilling these functions the bank shall work in co- paragraph 14 below, and it may open other accounts operation with the central banks of the countries at the Reichsbank for use in connection therewith. concerned. The relations thus established shall be Such additional accounts shall be operated according the ordinary relationships obtaining between a bank to ordinary business principles. and its correspondent banks. The bank shall have available at all times sufficient The procedure for conducting these operations, funds in reichsmarks to cover current requirements on subject to the right of the board of directors of the account of payments for deliveries in kind. bank to make modifications, provided the general (5) The bank shall give its receipt to the German purposes of the plan are observed, shall be as follows: Government for all sums which it pays or causes to be (1) The bank shall maintain on its books a general paid into the annuity trust account in the course of deposit account to be known as the annuity trust carrying out its obligations under the plan. account. The receipt of the bank shall make note of the cur- (2) The German Government shall be responsible rencies received, but credit shall be given in the reichsfor the payment to the bank, in installments as provided mark equivalent of those currencies. The German in the plan, of all sums applicable to the service of the Government undertakes for the purpose of the present annuity. These payments shall be credited to the provisions, as well as for the general purposes of the annuity trust account. plan, that the reichsmark shall have and shall retain The organization committee shall make the neces- its convertibility into gold or devisen as contemplated sary provision whereby the reichsmark payments to in section 31 of the present Reichsbank law, and that the account of the bank at the Reichsbank in respect for these purposes the reichsmark shall have and shall to the railway contribution shall be immediately re- retain a mint parity of 1/2790 kilograms of fine gold as leased to the German Government against equivalent defined in the German coinage law of August 30, 1924.1 payment in foreign currencies to the annuity trust Sums paid in foreign currencies into the annuity account. trust account shall be calculated in terms of reichs- (3) Subject to the operation of the clauses of the marks at the average of the middle rates (mittelkurs) plan relating to transfer postponement and except as prevailing on the Berlin bourse during the halfthe bank may request that payments be made in reichs- monthly period preceding the date of payment. marks to the credit of its account at the Reichsbank (6) The bank's receipt giving credit in reichsmarks described in paragraph 4 below, the German Govern- for payments made into the annuity trust account by ment shall make all payments on account of the annuity the German Government, or on -its behalf, shall, under in foreign currencies. Payments in foreign currencies normal operation of the plan, constitute a complete not on a gold or a gold exchange standard shall be and sufficient discharge of the obligations of the Germade only with the consent of the bank. man Government with respect to such paj^ments. As a matter of business practice, the bank, acting If, however, transfer postponement should be in whole in advance of the payment dates, may notify to the or partial effect, the bank's receipt giving credit in German Government or its agent the bank's prefer- reichsmarks shall constitute a complete and sufficient ences with respect to the currencies in which pay- discharge of the obligations of the German Government may be made. In case the bank's preferences ment with respect to all payments into the annuity are not complied with payment shall be made to the trust account made in foreign exchange, and with rebank in the currencies of the seven countries whose spect to such portion of the payments made in reichsnationals are members of the present experts' committee, marks as in the opinion of the bank provide current divided as nearly as may be in proportion to their funds for deliveries in kind or services. As to the rerespective shares in that portion of the annuity accru- mainder, the receipt of the bank shall be in the nature of a temporary acknowledgment only. ing to them. (4) All reichsmark payments for credit to the an- (7) Withdrawals from the annuity trust account nuity trust account shall be paid into an account of shall be made in accordance with provisions to be the bank at the Reichsbank. made by the organization committee. The bank shall The bank shall be entitled to draw upon it in making pay no interest on funds deposited in the annuity trust all reichsmark payments necessary for the operation account. of the plan, including payments for administrative (8) All disbursements for reparation purposes shall expenses incurred in Germany, payments for deliveries be charged against the annuity trust account. A first in kind and any other disbursements on annuity charge against that account shall be the service curaccount. rently due on the German external loan, 1924. The The bank shall also be entitled to withdraw reichs- board of directors shall be entitled also to charge marks from this account or to deposit reichsmarks in against the account such sums as they deem to be fair it in the course of conducting operations referred to in 1 See the letter from the president of the Reichsbank given in Annex II. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

JULY, 1929 FEDERAL RESERVE BULLETIN 485 compensation for the services performed by the bank (14) The bank shall have the right to buy for its own and such out-of-pocket expenses as it incurs in admin- account or for other trust accounts any reichsmarks istering the plan. If, in the opinion of the directors, held in the annuity trust account, giving foreign cursuch service charges or costs can not be equitably rencies in return. The foreign currencies thus acquired charged to the account as a whole, they shall be entitled by the annuity trust account shall be available for to allocate them in such proportions as they see fit to distribution to the creditor countries under the condithe individual shares of any of the creditor countries. tions specified in the preceding paragraphs. The (9) After charging against the annuity trust account reichsmarks which the bank acquires shall be used only the items referred to in the preceding paragraph and as the plan provides. such other items as may be properly chargeable to the (15) The bank at the close of each business year, or annuity as a whole, the bank shall proceed in the fol- more frequently if requested, shall give to the financial lowing manner with the distribution of the remainder authorities of each creditor country a full accounting of the available funds to the accounts of the several showing the disposition of its share in the annuity. creditors in accordance with the provisions of the plan. As soon as any country has received its full share in the (10) During such period of time as payments for annuity for any one year its proper financial authority deliveries in kind and payments under reparation re- shall give to the bank his acknowledgment and covery act and similar procedures continue to be made, shall enter the same upon the trust receipt provided the bank shall make available to the several creditor for in paragraph 2 of section 7 of this outline. Such countries reichsmark credits, which shall be utilized acknowledgment shall constitute a full and sufficient subject to the applicable provisions of the plan. dischargeto the bank with respect to the annuity (11) The bank, out of each installment paid into the covered by it. annuity trust account, shall set aside and accumulate 9. Agency functions.—The bank shall be qualified, funds for the payment of service on any bonds issued on terms to be mutually agreed upon, to act as agent and outstanding which represent commercialized and and correspondent of any central bank and to appoint mobilized shares in the annuity. Funds required for any central bank to act as its agent and correspondent. this purpose shall be charged against the accounts of The services to be performed by either or both parties the creditor countries in proportion to their respec- under such agreements shall be subject, so far as the tive interests in the bonds for which service is being bank's interest is concerned, to the approval of its accumulated. board of directors, and may include the purchase and At a suitable time in advance of the dates fixed for sale of gold, of bills of exchange and other securities, the payment of interest to the bondholders the bank the earmarking of gold, the exchange of information shall pay to the paying agents the amounts due in and advice, and the transaction of any business coninterest and shall make disposition according to the sistent with the functions of the bank under the plan terms of the bond of funds required for purposes of on the one hand and within the lawful functions of amortization. the central bank on the other. (12) Out of the sums remaining in currencies other The bank shall act as agent of any creditor Governthan reichsmarks, and after providing for any other ment in mobilizing any parts of the annuities and in charges called for under the plan, the directors of the managing the service of bonds issued in connection bank shall distribute such aggregate amounts as they with any such mobilization. The procedure for conmay determine to the creditor countries, divided accord- ducting the bank's share in such operations, subject ing to the propositions agreed upon among the respec- to the right of the organization committee or the board tive Governments. In withholding any sums from dis- of directors of the bank to make modifications, protribution and in fixing the dates at which distribution vided the general purposes of the plan are observed, is effected, the directors of the bank shall be guided on shall be as follows: the one hand by the need for prompt action in the (1) Upon the request of the creditor Governments or interests of the creditor countries and on the other by any of them, the bank shall initiate operations for the interests of the plan as a whole, including due marketing bonds if, after examination, it considers consideration to the bank by way of compensation for market conditions warrant such operations. Such its services in managing the annuity. operations may take place in the international markets (13) The bank shall make distribution of cash by or may be restricted to the domestic market or markets crediting the accounts which the central banks of the of the countries concerned in the proposed mobilizaseveral creditor countries maintain with it, notifying tion, as the board of directors may decide. In dethem simultaneously that such credits are for the termining the markets where offerings are to be made, accounts of their respective Governments. The bank the bank shall make inquiries from the central banks shall notify the proper financial authorities of the concerned, and if any central bank offers explicit objeccreditor countries when such credits have been made, tion to an offering being made in its own market the and shall obtain receipts from them accordingly. directors shall decide accordingly. 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486 FEDERAL RESERVE BULLETIN JULY, 1929 (2) The bank shall proceed to carry out requests (3) Deposits on investment account (time deposits).— from any creditor Government for the creation of bonds Deposits payable in 15 days or less shall be classified as to be issued on its domestic market in connection with demand deposits and be subject to the reserve requireconversion operations up to an amount represented in ments specified in the preceding paragraph. Against its share in the annuities. Each State shall be free to investment account deposits of longer maturity the offer such bonds on its own market on whatever con- bank shall hold a minimum of 25 per cent in gold or ditions it can obtain. in devisen at their gold value. Devisen eligible as re- (3) If, in the opinion of the bank, the time is op- serve against investment account deposits shall meet portune for an issue of bonds, even if no request for the same requirements as those eligible as reserve mobilization has been received, the bank may inform against demand deposits. the creditor Governments accordingly. If the board of directors is of opinion that these re- (4) If the creditor Governments so request, the bank serve requirements should be altered, they shall have shall arrange with issuing bankers the conditions upon the right by a two-thirds vote to increase, diminish, or which bonds are to be issued on the open markets otherwise modify them consistently with sound bankeither of one or of several countries, as the case may be. ing principles. The bank shall fix the minimum price at which such 11. Distribution of profits.—The yearly net profits issues shall be made and it shall supervise the execution of the bank shall be applied as follows: of the loan contracts. (1) Five per cent of the yearly net profits shall be (5) If bonds are issued against the annuity shares paid to the legal reserve fund of the bank until that of more than one country, the proceeds shall be de- fund reaches an amount equal to 10 per cent of the posited with the bank, which shall then distribute the paid-in capital stock of the bank as it may stand from proceeds to the creditors according to their participa- time to time. The legal reserve fund on the liquidation tion. The handling of the service of issued bonds of the bank shall be merged with the general reserve shall be carried out as provided in the preceding sec- fund. tion of this outline and in Annex III. (2) After making the foregoing provision for the (6) Apart from the operations described above, the legal reserve fund the yearly net profits shall be applied bank may conduct any other operations (such, for to the payment of an annual dividend up to 6 per cent instance, as contango operations on bonds issued on the paid-in share capital. This dividend shall be against the annuities, advances on coupons, etc.) as cumulative. are involved in the supervision of transactions relating (3) Twenty per cent of the remainder shall be paid to these bonds and their service. to the shareholders until a total maximum dividend of 10. Reserve requirements.—The bank, since its de- 12 per cent is reached. The board of directors of the posits in part will be derived from central banks, shall bank shall have the right in any year to withhold all be administered with particular regard to maintaining or any part of this addition to the regular dividend, its liquidity. For this purpose the bank shall observe and to place it to the credit of a special dividend the following reserve requirements: reserve fund for use in maintaining the cumulative (1) Deposits on clearing account.—All funds held bydividend provided for in the preceding paragraph or the bank on clearing account, whether gold in vault or for subsequent distribution to the shareholders. gold under earmark for the bank's account in central (4) After making provision for the foregoing, onebanks, shall be reserved for exclusive use in effecting half of the yearly net profits then remaining shall be settlements among the depositaries in the account. paid into the general reserve fund of the bank until it (;?) Deposits payable on demand.—Against such de- equals the paid-in capital. Thereafter 40 per cent posits the bank shall hold a minimum of 40 per cent in shall be so applied until the general reserve fund equals gold or in devisen at their gold value. Devisen eligible twice the paid-in capital; 30 per cent until it equals as reserve against demand deposits shall consist of bank three times the paid-in capital; 20 per cent until it notes; prime bills of exchange having not more than 90 equals four times the paid-in capital; 10 per cent until days to run, of a character which central banks ordi- it equals five times the paid-in capital; and from that narily buy for their own account; and checks payable point onward 5 per cent. on demand, drawn or indorsed by central banks or in The general reserve fund shall be available for respect of which three obligees, including a bank of meeting any losses incurred by the bank. In case it known solvency, are responsible. All devisen included is not adequate for this purpose, recourse may be had in the foregoing classifications shall be denominated in to the legal reserve fund provided for under paragraph currencies which satisfy, in the opinion of the board 1. In case the general reserve fund, by reason of losses of directors, all the practical requirements of the gold or by reason of an increase in the paid-in capital, falls or gold exchange standard. Gold in transit, or devisen below the amounts provided for above after having satisfying the foregoing requirements which are in once attained them, the appropriate proportion of the process of collection, may be counted as reserve. yearly net profits shall again be applied until the posi- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

JULY, 1929 FEDERAL RESERVE BULLETIN 487 tion is restored. Upon the liquidation of the bank shall be interpreted to mean the bank of issue situated the balance in the general reserve fund shall be divided and operating in the principal financial market of that among the shareholders. country. (5) The remainder of the yearly net profits after If in the process of organizing the bank or in the permeeting the foregoing requirements shall be paid in formance of its functions after establishment it is found to special funds as follows: that the central bank of any country or its governor is (a) Seventy-five per cent to the Governments or unable to act officially or unofficially in any or all of central banks of the creditor countries or of Germany of the capacities provided for in this outline, or refrains which maintain time deposits at the bank, withdraw- from so acting, alternative arrangements not inconsistable in not less than five years from the time of deposit, ent with the laws of that country shall be made. In and, after four years, on not less than one year's particular, the governors of the central banks of the notice. The fund shall be disbursed annually in countries whose nationals are members of the presamounts proportionate to the size of the deposits ent committee, or as many of them as are qualified to maintained by the respective Governments or central act, may invite to become members of the board of banks aforesaid. The directors of the bank shall have directors of the bank two nationals of any country the power to determine the volume of each of these deposits central bank of which is eligible under this outline to which would justify the distribution provided for. take part in forming the board of the bank but does not (6) Twenty-five per cent to be used to aid Germany do so. The two nationals of that country upon acceptin paying the last 22 annuities, provided the German ance of the invitation shall be qualified to act in the Government elects to make a long-term deposit with full capacity of directors of the bank as provided in the bank, withdrawable only on the terms specified this outline. under subparagraph (a) above and amounting to Further, the directors of the bank shall be authorthe minimum sum of 400,000,000 reichsmarks. If ized to appoint in lieu of any central bank not exerthe German Government elects to make such long- cising any or all of the functions, authorities, or term deposit amounting to a sum below 400,000,000 privileges which this outline provides that central reichsmarks, the participation of the German Govern- banks make or shall exercise, any bank or banking ment shall be reduced in proportion and the balance house of widely recognized standing and of the same shall be added to the 75 per cent in subparagraph (a). nationality. Such bank or banking house, upon ap- The fund shall carry compound interest at the maxi- pointment and acceptance, shall be entitled to act in mum current rate paid by the bank on time deposits. the place of the central bank in any or all capacities If the fund should exceed the amount required to pay appropriate to central banks under this outline, prothe twenty-two last annuities, the balance shall be vided only that such action is not inconsistent with distributed among the creditor Governments in pro- the laws of the country in question. portion to their outpayments during that period. The balance sheet and accounts of the bank shall be In case the German Government elects not to make audited each year by independent auditors of recogany such long-term deposit the fund shall be distrib- nized standing, who shall be appointed by and report uted as provided in subparagraph (a) above. to the board of directors. 12. General provisions.—Any balances remaining in In case the measures proposed in the plan with the hands of the Agent General for Reparation Pay- respect to the avoidance of double and triple taxation ments on the winding up of his accounts shall be trans- of the bank are not fully in effect when the bank ferred to the bank for credit to the annuity trust begins operations, the board of directors shall deal account, subject, of course, to the respective interests with the matter within its discretion. of the creditor countries therein and to any claims and If any administrative act of the bank or any decision commitments which may be outstanding at the time. of the board of directors is disputed on the ground The relations of the Reparation Commission with that it is inconsistent with the provisions or intent of Germany will be terminated. The bank shall take the plan, recourse may be had to arbitration under over as promptly as possible such functions of the the general provisions for arbitration. Reparation Commission with respect to Germany as are required under the provisions of the plan, and also such functions of the Agent General for Reparation ANNEX II Payments, the trustees and commissioners holding office under the experts' plan of 1924, or any of them, PARIS, June 6, 1929. as may be required under the provisions of the plan, DEAR MR. CHAIRMAN: I understand that certain of all according to the general scheme given in part 6 of the creditor groups have raised the question as to the the plan and Annex V. interpretation to be given to the word "reichsmarks/' If in any country there is more than one bank of in which the obligations of Germany under the new issue, the term "central bank" as used in this outline plan are expressed. In my opinion the question is a 57856—29 5 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

488 FEDERAL RESERVE BULLETIN JULY, 1929 purely formal one, as the reichsmark is de facto on 3. Collateral guarantees.—(A) The railway coma gold basis and has proved itself since its creation pany shall deposit with the Bank for International as stable a currency as any other in the world. Settlements a certificate acknowledging its liability in Nevertheless, in order that there should be no possi- espect of the obligations laid down in part 8 (a) of bility of question as to the exact definition of Ger- this plan. many's liability, I am of opinion that the provisions (B) The Reich, furthermore, shall undertake to of section 31 of the bank law of August 30, 1924,assign certain revenues (customs and certain taxes on should be put into effect, and I am therefore prepared onsumption) for the service of the certificates and, as to introduce the necessary resolutions with the man- far as they may be exchanged into negotiable bonds, aging board and the general council of the Reichsbank for the service of such bonds. This assignment will at the latest in connection with the putting into force onstitute a negative pledge and will be ruled by the of the present plan by the Governments. following conditions: Believe me, dear Mr. Chairman, (a) The assigned revenues as estimated for the Yours sincerely, budget 1929 must have a total yield of not less than HJALMAR SCHACHT. 150 per cent of the highest budgetary contribution OWEN D. YOUNG, Esq., payable by Germany under this plan. Chairman of the Committee of Experts, (6) The Reich will not pledge the assigned revenues Hotel George V, Paris. for any other loan or credit except with the consent of the bank. If the assigned revenues should be pledged, with the consent of the bank, for any other loan or ANNEX III credit, the charge for reparation payment will rank MOBILIZATION ahead of the charge for such other loan or credit. 1. Form of indebtedness.—Germany's debt shall be (c) If at any time the total yield of the assigned fixed in the form of annuities. A certificate of in- revenues should fall below 150 per cent of the highest debtedness representative of these annuities shall be budgetary contribution payable by Germany under delivered by Germany to the bank as trustee of the this plan, the bank may require that additional revecreditor powers. nues, sufficient to assure the immediate restoration of To this certificate of indebtedness shall be attached the yield to the above percentage, be assigned. coupons representative of each annuity payable by 4. General form of the bonds.—The value of the Germany. Each annuity coupon shall be divided into issuable bonds may, according to circumstances, be two parts: The first, representative of that portion of expressed in dollars equivalent to so many pounds, the annuity not subject to postponement and corres- reichsmarks, franks, etc., or 'inversely in pounds, in ponding to the portion of Germany's indebtedness reichsmarks, in francs, etc., always provided that the which is mobilizable; the second, representative principal of any bond issued in a particular market of that portion of the annuity which is subject to shall be payable only in the currency of that market postponement and corresponding to the portion of at the equivalent of its gold value. Germany's indebtedness which is not mobilizable. The coupons shall be expressed in dollars, pounds, Each part of the annuity coupon enjoys equal rights francs, etc., and shall be payable at the rate of the day throughout except with respect to the agreed privilege on all the markets on which the bonds are quoted. of postponement. In the event of an issue, the amount and form of 2. Bond issues.—Upon the request of all or of any bonds to be created, as well as the specification of the one of the creditor Governments the bank, as trustee, if currency in which they shall be issued, shall be fixed it considers such a course opportune, has the right to by the bank in accordance with the requests which it require the creation of, and the German Government receives from the creditor Governments, taking into is obligated to create, issuable bonds representing the account the desiderata of the issuing bankers. capitalization of any part of the portion of the annuity After a period of 10 years the bank, in agreement coupons not subject to postponement. with the issuing bankers and the creditor Govern- The bank, however, is obliged under the provisions ments, may consider the issue of bonds the service of set forth in paragraph 7 (d) to accede to requests for which may be paid in different currencies at par at the creation of bonds made to it by Governments which the bearer's option. are desirous of undertaking internal issues of German 5. Status of mobilizable portions of annuity coubonds in connection with conversion operations. pons.—The service of interest and amortization of the The certificate of indebtedness, the coupons attached mobilizable or mobilized portions of the annuity thereto, and such bonds as shall be issued in capitaliza- coupons shall be paid to the bank in foreign currencies tion of any parts of the annuities not subject to post- by the German Reich without any reservation, that is, ponement, shall be made out in the name of the Ger- on its own responsibility; the financial service of these man Reich and shall represent the obligation of the mobilizable or mobilized portions of the annuities shall Reich guaranteed by its general revenues. constitute a final, absolute, and unconditional inter- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

JULY, 1929 FEDERAL RESERVE BULLETIN 489 national obligation in the ordinary financial sense of These bonds shall constitute national tranches which the word. each Government shall be free to offer on its own 6. Status of nonmobilizable portions of the annuity market on whatever conditions it can obtain. These coupons.—The payment of the nonmobilizable portion bonds shall be quoted only on their market of issue. of the annuity coupons shall be made to the bank by The service of these bonds shall, however, be effected the German Government in the same conditions as pari passu with that of the other bonds. The coupons that of the mobilized or mobilizable portion of the of these bonds shall be expressed in pounds, dollars, annuity coupons. Nevertheless— French francs, etc., and shall be payable at the rate of (1) Bonds representing the nonmobilizable portion the day on all the markets on which the mobilizable of the annuity coupons can not be created except with bonds are quoted. the consent of the German Government. (2) It is in respect of the nonmobilizable portion of ANNEX IV the annuity coupons that the German Government may avail itself of the right of postponing transfer or CONDITIONS OF POSTPONEMENT OF TKANSFER AND OF payment granted elsewhere in this plan. PAYMENT 7. Functions of the bank.—(a) Supervision of agreemerits.—It shall supervise, both on behalf of the creditor 1. Postponement of transfer.—The German Govern- Governments and the bondholders and on behalf of ment by giving at least 90 days' previous notice shall the debtor Governments, the strict execution of the have the right to suspend for a maximum period of agreements concluded between them on the established two years from its due date all or part of the transfer bases. of that part of the annuity described as postponable. (b) Distribution without priority.—The bank shall Transfer postponement thus declared shall affect the distribute moneys in payment of the mobilized or postponable annuity as and from that date only on mobilizable portions of the annuity coupon among the which transfer postponement becomes effective. whole of the bondholders and the creditor Governments If, during any annuity year, the German Government in proportion to the rights of each to share in the por- shall avail itself of this power, the transfers falling due tion of the annuity coupons not subject to postpone- during any second year can not be postponed for more ment, without allowing a priority of any kind to any than one year from their respective due dates, unless tranche or to any claim. It will distribute the moneys and until the transfers due during the first year shall relating to the nonmobilizable portions of the annuity have been effected in full, in which case the transfers coupons among the creditor Governments, the trans- due during such second year may be postponed two fer of these moneys taking place only after the transfer years from their respective due dates; and the transfers of the moneys relating to the mobilized or mobilizable due during any third year can not be postponed at all portion of the annuity coupon. until the transfers due during the first year have been (c) Issue of bonds on the markeis.—The bank shall effected in full. inform the creditor Governments whenever the issue of 2. Liability.—The liability of the German Governbonds representing the capitalization of some part of ment with regard to the annuities contemplated in the mobilizable portion of the annuity coupon is prac- this plan is not fulfilled until all sums, the transfer of ticable in its opinion. payment of which may be from time to time postponed, It will be the function of the bank to fix the mini- have actually been transferred in full to the Bank for mum price of issue. International Settlements in approved foreign cur- Each of the creditor Governments shall be entitled, rencies, or utilized for deliveries in kind. but not obliged, to issue its share of the bonds in its 3. Postponement of payment.—At any time when own country. It may come to an understanding with postponement of transfer is in effect, but not until one the bankers of another country to cede to them all or year after it has become effective, the German Governpart of this share, but these bankers shall be obliged ment shall have the right to postpone payment for one to proceed to this issue only on the minimum conditions year of 50 per cent of any sum the transfer of which fixed by the bank. Any of these Governments may shall then be susceptible of postponement under paraalso refuse to allow its quota to be created; in that graph 1 of this annex. This percentage may be inevent the portion of the annuity corresponding to this creased upon the recommendation of the advisory quota shall continue to be paid to the Governments in committee provided for in part 8 (E) of this report. question as before. 4. Utilization of reichsmarks.—Any sum in reichs- (d) Issue of conversion bonds.—Creditor Govern- marks, the transfer of which is postponed, shall (save ments desiring to proceed to internal issues of German as provided for in paragraph 3 above) be deposited to bonds, in connection with operations for the conversion the account of the Bank for International Settlements of national debt, shall have the option of asking the at the Reichsbank for eventual release of balances, not bank to create bonds representing all or part of their absorbed by deliveries in kind, against payment in quota of the mobilizable portion of the annuity coupons. foreign currencies by the German Government. At Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

490 FEDERAL RESERVE BULLETIN JULY, 1929 all times the employment, whether for investment or We recommend such organization eommittees for as indicated below, of reichsmarks so deposited shall be the following questions: subject to agreement between the Reichsbank and the (1) Organization committee for the new bank as Bank for International Settlements. In determining provided for in Annex I of the report. the manner in which these sums shall be employed, (2) Organization committee for the adaptation of regard shall be had to the possibilities that special the German laws set up under the Dawes plan, comprograms of deliveries in kind can be arranged with the posed of members of the subcommittees next mentioned, German Government. with one neutral chairman. (a) During the first 10 years by restricting or This committee should have three subcommittees, extending the program of deliveries in kind laid down to be composed each of two creditor members nomifor those years; nated by the Reparation Commission and two German (b) After the first 10 years by arranging a special members nominated by the German Government: program of deliveries in kind, where the interests of (a) For the adaptation, in agreement with the trusparticular industries in Germany and of particular tees, of the system under which the securities assigned creditor countries which would otherwise suffer, may be to the Dawes loan are managed and of the machinery met without prejudice to the general situation; of the assigned revenues, referred to in Annex III. Provided, however, that any special arrangement (b) Adaptation of the bank law (independence of the which may be made between any creditor country Reichsbank). and Germany with a view to reserving to the said (c) Adaptation of the German railway law (indecreditor the right to receive certain deliveries in kind in pendence of the German Railway Co.). case of moratorium shall be carried through, subject 2. After the Governments have concluded a comto a copy of the agreement therefor being communi- prehensive arrangement for putting into force the new cated to the Bank for International Settlements. plan, it will be necessary to provide some special or- 5. Interest.—Interest at the rate of 1 per cent per ganization which will undertake the administrative annum above the prevailing Reichsbank discount rate, work of setting up the organizations provided for by or at 5}£ per cent, whichever is lower, shall be paid the new plan and of handing over to them the functions half yearty by the German Government on the daily of the existing organizations. amount of the sums the transfer or payment of which As there is only one new organization which is has been postponed and which have not been invested going to centralize all the various functions concerning or utilized for deliveries in kind. This interest shall the execution of the new plan, viz, the Bank for Interbe treated in all respects similarly to the principal sum national Settlements, it is necessary to provide one upon which it accrues, and the return upon that por- special body only for the setting up of this organization, tion of the funds actually invested shall be for the this body to be the organization committee for the new account of the creditor powers. bank referred to above, as provided for in Annex I. The task of transferring the functions of the existing organizations to the Bank for International Settlements ANNEX V should be conferred upon a small special committee composed of two members of the organization commit- ANNEX ON ORGANIZATION COMMITTEES tee for the Bank for International Settlements, as well 1. Just as the Dawes plan was put into force by the as of representatives of the German Government, the agreement of the Governments concerned laid down in Agent General, and the Reparation Commission, and the London protocol, the new plan will have to be put equitable representation being assured to the powers into force by agreement of the Governments. represented upon the present committee. Once the Governments have accepted in principle the new plan, it seems advisable that, in addition to any preparatory measures necessary for the conference of ANNEX VI the Governments, steps should be taken for the elabo- THE BELGIAN MARK CLAIM ration of detailed schemes about certain technical questions. The experts recognize that though the settlement of Generally speaking, it seems advisable to have these the so-called Belgian mark claim is not within the schemes elaborated by special organization committees, terms of reference of this committee, their Belgian colwhich should be composed substantially in the same leagues can not reasonably be expected, in view of the way as the organization committees of the Dawes plan; discussions which preceded the call of the committee, that is, by the same number of representatives of the to join in the report except on the understanding that creditors as of the debtor, with a neutral chairman to an agreement for the settlement of the mark claim be called in case of disagreement. The organization will be reached by direct negotiations between the committee for the new bank would, however, be Belgian and German Governments. The experts undifferently composed. derstand that negotiations for the purpose are about to Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

491 JULY, 1929 FEDERAL RESERVE BULLETIN open as between the two Governments and they recog- ANNEX VI (B) nize that the new plan can not become operative until PARIS, June 4, 1929. the Belgian and German Governments have come to Mr. THOMAS W. LAMONT, an internationally binding agreement on the mark Hotel Ritz, Paris. claim; and in view of the German Government's un- DEAR MR. LAMONT: Confirming my conversation of dertakings as stated in the correspondence annexed this morning with you and Mr. Perkins, I desire to (letters from Doctor Schacht of June 3 (see Annex make clear the following: VI (A), and from Doctor Kastl of June 4 (see Annex (1) The position of the German Government as VI (B), they recommend to their respective Govern- stated in Doctor Schacht's letter to the chairman of ments accordingly. June 3, 1929, is in no way changed. If the settlement of the marks claim takes the form (2) Doctor Ritter, of the German Foreign Office, of an annuity and if the Belgian and German Govern- representative for the settlement of the mark question, ments so request, the experts are ready to recommend has again declared to us on behalf of the German Govto their Governments to offer no objection to the ernment that: annuity taking the identical form of the annuities (a) He is prepared to start negotiations immediately. covered in this report and to its being administered in He suggests that such negotiations should take place in the same way by the Bank for International Settlements. Brussels or Berlin. (6) No territorial questions will be raised in these ANNEX VI (A) negotiations. JUNE 3, 1929. Sincerely yours, Mr. OWEN D. YOUNG, (Signed) KASTL. Hotel George V, Paris. ANNEX VI (C) DEAR MR. CHAIRMAN: Supplementing my talk with you of last Saturday on the Belgian mark matter, I PARIS, June 4, 1929. have the honor to inform you that the German Govern- MY DEAR PRESIDENT: YOU have been so good as to ment is prepared to proceed along the following lines: communicate to me the letters which were sent to you (1) Immediately to enter into a pactum de contra- by Doctor Schacht and Doctor Kastl in the name|of hendo with the Belgian Government (either by ex- their Government on June 3 and 4, respectively. change of notes or by signed protocol) whereby the In the first of these letters Doctor Schacht stated two Governments will agree to enter into negotiations that his Government is ready to accept an engagement on a new basis looking to a definite settlement of the to negotiate with the Belgian Government upon a new mark controversy. basis, in order to arrive at a definitive settlement of the (2) To commence such negotiations promptly and mark question. to agree that these negotiations should be concluded He adds that the German Government is willing to before the new reparation plan has been put into force begin th^se negotiations rapidly and to agree that they by the Governments. should be terminated before the new reparation plan (3) The German Government has appointed Herr has been put into force by the Governments. Ministerial Direktor Ritter as its special representative In the second, Doctor Kastl declares that no territo handle the above matters and he is prepared to open torial question will be raised in these negotiations. discussions promptly. You are aware of the reasons because of which the The substance of the foregoing has been communi- Belgian delegation up to the present has refused to cated to the Belgian Minister in Berlin, whose reply sign the report before a settlement of the mark questhe German Government now awaits. tion had been realized, not desiring to find itself later The foregoing proposal has been made by the German in a position which it knew to be without issue, and on Government in a conciliatory spirit and in an effort in the other hand standing out for reparation of the good faith to remove this impediment to the normal serious damage which Belgium has suffered. development of friendly relations between the two Considering the engagement of the German Governcountries concerned. ment and considering also the recommendation which I hope that the foregoing statements may remove the experts unanimously decided to-day to address to any misunderstandings which exist as to the position their respective Governments and which will be incorof the German Government with respect to the Belgian porated in the report, the Belgian experts agree to sign mark matter, and in view of such misunderstandings the report before the mark negotiations have been heretofore. I would appreciate your advising the other terminated. members of the committee of the position of the German I reserve the right to communicate to the German Government as stated herein. Government the different memoranda which have been With assurances of my personal esteem, I am, exchanged during the course of the work of the experts. Sincerely yours, Believe me, etc., Dr. HJALMAR SCHACHT. (Signed) E. FRANCQUI. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

492 FEDERAL RESERVE BULLETIN JULY, 1929 ANNEX VII DISTRIBUTION OF THE ANNUITIES PROPOSED BY THE EXPERTS OF THE CREDITOR COUNTRIES REPRESENTED ON THE COMMITTEE 1. We recommend that the annuities set out in Part VIII of this report should be distributed among the creditor powers as follows: [In millions of reichsmarks] German financialy ear France E B m rit p i i s r h e Italy g B iu e m l- m R a u n - ia Serbia Greece Po g r a t l u- Japan la P n o- d U S n ta i t t e e s d Total 1929-30 l 418.8 53.1 42.5 70.7 72.1 6.0 13.2 0.5 65.9 742.8 1930-31 . 900.7 366.8 156.0 98.2 10.0 79.4 3.6 13.2 13.2 0.5 66.3 1, 707. 9 1931-32 838.4 362.0 190.8 102.6 12.0 79.3 6.7 13.2 13.2 0.5 66.1 1, 685. 0 1932-33. 879.8 364.5 196.3 105.9 13.0 79.4 6.9 13.2 13.2 0.5 66.1 1, 738. 2 1933-34 _ 879.1 454.8 192.4 100.3 13.9 72.4 7.2 12.6 11.9 0.4 59.4 1, 804.3 1934-35 941.8 450.1 193.6 102.8 14.7 72.5 7.2 12.6 11.9 0.4 59.4 1, 866. 9 1935-36 962.8 444.9 195.2 110.0 16.1 72.6 7.2 12.6 11.9 0.4 59.4 1, 892. 9 1936-37 1, 004.1 438.1 197.2 116.9 17.2 73.8 8.2 12.6 11.9 0.4 59.4 1, 939. 7 1937-38-. 1, 031. 8 452.6 198.6 114.7 18.3 71.5 8.3 12.4 11.4 0.4 57.2 1, 977. 0 1938-39 1, 052. 4 447.1 200.2 114.8 19.1 71.8 8 5 12.4 11.4 0.4 57.2 1, 995.3 1939-40-.. 1, 087. 3 442.5 204.1 117.0 23.7 74.5 8.4 13.6 11.9 0.4 59.4 2, 042. 8 1940-41 1,179. 9 457.1 211.5 117.1 20.1 76.1 8.4 13.6 11.9 0.4 59.4 2,155. 5 1941-42. 1,171.2 456.3 223.1 123.9 20.0 83.9 8.3 14.2 13.2 0.5 66.1 2,180. 7 1942-43 1,191. 4 446.0 225.5 124.1 20.6 88.2 8.3 14.2 13.2 0.5 66.1 2,198. 0 1943-44. . 1,190. 8 439.8 227.8 124.2 21.1 88.3 8.3 14.2 13.2 0.5 66.1 2,194.3 1944-45 1,190. 7 450.5 230.5 123.9 21.1 88.5 8.3 14.2 13.2 0.5 66.1 2, 207. 5 1945-46 . 1,190. 8 439.1 233.3 124.0 25.7 88.7 8 3 14.2 13.2 0.5 66.1 2, 203. 8 1946-47 _ 1,188.1 432.4 235.6 124.1 28.4 88.7 8.3 14.2 13.2 0.5 66.1 2,199. 5 1947-48 1,185. 2 446.6 237.1 124.1 31.2 88.8 8.3 14.2 13.2 0.5 66.1 2, 215. 2 1948-49 1,185.1 439.1 239.4 124.2 31.2 88.8 8.3 14.2 13.2 0.5 66.1 2, 210. 0 1949-50 1, 248. 6 439.6 248.1 134.6 31 3 99.8 8.1 15.1 15.2 0.6 76.1 2,316. 8 1950-51 1, 277.9 440.5 260.1 134.7 31. 99.9 8 1 15.1 15.2 0.6 76.1 2,359. 2 1951-52 1, 248. 5 441.1 272.8 134.7 31. 100.0 8.1 15.1 15.2 0.6 76.1 2, 343. 2 1952-53 1, 248.3 441.4 275.6 134.7 31. 100.0 8 1 15.1 15.2 0.6 76.1 2, 346. 2 1953-54 1, 248. 2 445.6 278.5 134.7 31. 100.1 8.1 15.1 15.2 0.6 76.1 2, 353. 3 1954-55 _. .- 1, 248.1 453.6 281.3 134. 7 31. 100.7 8.1 15.1 15.2 0.6 76.1 2,364. 6 1955-56 1, 248. 2 444.2 285.4 134.7 31. 101.2 8.1 15.1 15.2 0.6 76.1 2, 359.8 1956-57 1, 248.1 434.7 289.0 134.9 31. 101.2 8.1 15.1 15.2 0.6 76.1 2, 354. 2 1957-58__ 1,278.6 407.3 292.6 134.9 31. 102.2 8 1 15.1 15.2 0.6 76.1 2, 361.8 1958-59 1,302.8 410.2 296.7 134.8 31. 103.1 8.1 15.1 15.2 0.6 76.1 2, 393. 8 1959-60. 1, 278.4 408.3 299.8 134.8 31. 103.2 8.1 15.1 15.2 0.6 76.1 2, 370. 6 1960-61 1, 278. 2 406.1 310.8 134.7 31. 104.5 8.1 15.1 15.2 0.6 76.1 2, 380. 5 1961-62- 1, 278. 2 412.0 321.5 134.5 31. 105.9 8 1 15.1 15.2 0.6 76.1 2, 398.3 1962-63 . . .. 1, 278.1 400.5 324.8 134.8 31. 105.9 8.1 15.1 15.2 0.6 76.1 2, 390. 2 1963-64. 1, 278.0 410.1 327.8 134.6 31. 106.0 8.1 15.1 15.2 0.6 76.1 2,402.6 1964-65 1, 277. 9 406.3 331.0 134.9 31. 106.0 8.1 15.1 15.2 0.6 76.1 2,402.1 1965-66 1, 297. 5 410.6 334.0 134.5 31. 106.0 8.1 15.1 15.2 0.6 76.1 2,428. 8 Average, 1929 to 1965 1, 046. 5 409.0 213.7 115.5 20.1 84.0 7.0 13.2 13.2 0.5 66.1 1, 9S8.8 1966-67 . .. 794.2 357.2 290.1 53.1 31.7 22.7 9.7 8.2 40.8 1,607. 7 1967-68 794 1 346 7 295 1 52 8 36 8 22 7 9 7 8 2 40.8 1 606 9 1968-69 790.9 349.4 302 3 53 0 39 8 22.7 9 7 8 2 40.8 1,616.7 1969-70 787.7 355.7 309 3 53 1 42 9 22 7 9 7 8 2 40.8 1,630.0 1970-71 787 5 361 2 317 6 53 2 42 9 22 7 9 7 8 2 40.8 1 643 7 1971-72 .. . 787.3 361.8 327.7 52.8 42 9 22.7 9 7 8.2 40.8 1,653.9 1972-73 787.1 366 1 332 0 52 8 42 9 22 7 9 7 8 2 40.8 1,662. 3 1973-74 786.9 365.4 336.3 52.8 42.9 22.6 9.7 8.2 40.8 1,665. 7 1974-75 ..- . 786.8 364.1 340.5 52.8 42.9 22.6 9.7 8.2 40.8 1, 6C8.4 1975-76 786.6 366 4 344 6 53 2 42 9 22 6 9 7 8 2 40 8 1 675 0 1976-77 786.3 363.8 350.8 53.5 42 9 22.6 9 7 8.2 40.8 1, 678.7 1977-78 786.1 364 8 356 9 53 3 42 9 22 6 9 7 8 2 40.8 1,685.4 1978-79 785 9 365 1 367 1 53 2 42 9 22 6 9 7 8 2 40 8 1 695 5 1979-80 785.7 364.7 372.9 52.9 42.9 22.6 9.7 8.2 40.8 1, 700.4 1980-81 785.5 363 5 385 1 53 1 42 9 22 6 9 7 8 2 40 8 1 711 3 1981-82 785.2 365.7 400.1 53.3 42.9 22.6 9.7 8.2 1, 687.6 1982-83 785 0 362 9 407 2 53 4 42 9 22 6 9 7 8 2 1 691 8 1983-84 784.7 372 0 409 8 53 4 42 9 22 6 9 7 8 2 1 703.3 1984-85 784.4 346.2 416.5 53.0 42.9 22.6 9.7 8.2 1, 683.5 1985-86 784.1 2-414.1 418.8 53.0 42.9 22.6 9 7 8.2 925.1 1986-87 783.9 2—414 1 425 0 53 3 42 9 22 6 9 7 8 2 931.4 1987-88 _ 753.3 2-372.1 382.6 50.6 42.9 22.6 9.7 8.2 897.8 1 The year 1929-30 comprises only the 7 months September, 1929, to March, 1930. 2 These sums correspond to the excess war-debt receipts of Great Britain over the war-debt payments during these years. 2. We recommend that out of the unconditional annu- in accordance with the arrangements set out in Annex ity of 660,000,000 reichsmarks the amount of 500,000,000 VIII. Out of the remainder of the unconditional anreichsmarks should be allocated to France, subject to the nuity, after allowing for the service of the Dawes loan provision of a guaranty fund by the French Government 42,000,000 reichsmarks will be apportioned to Italy. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

JULY, 1929 FEDEKAL RESERVE BULLETIN 493 So far as concerns the balance of the unconditional ment of all the Governments, to the remaining powers annuity and the amounts by which it is increased as entitled to share in the annuities provided for by this the requirements for the service of the Dawes loan plan. become less and cease, Italy will have no claim until 3. The schedule of deliveries in kind set out in part 8 so much of the balance as may be required for an equi- (F) shall be allocated among the creditor Governments table apportionment shall have been allotted, by agree- as follows: [Amounts in millions of reichsmarks] France B G ri r t e a a i t n Italy Belgium Japan Serbia Portugal Rumania Greece Total Per cent 54.45 23.05 10.0 4.5 0.75 5.0 0.75 1.10 0.40 YEAR First 408.4 172.9 75.0 33.7 5.6 37.5 5.6 8.3 3.0 750 Second 381.2 161.4 70.0 31.5 5.2 35.0 5.2 7.7 2.8 700 Third 353.9 149.8 65.0 29.2 4.9 32.5 4.9 7.2 2.6 650 Fourth 326.7 138.3 60.0 27.0 4.5 30.0 ' 4.5 6.6 2.4 600 Fifth 299.5 126.8 55.0 24.7 4.1 27.5 4.1 6 1 2 2 550 Sixth . 272.3 115.3 50.0 22.5 3.7 25.0 3.7 5.5 2.0 500 Seventh 245.0 103.7 45.0 20.2 3.4 22.5 3.4 5.0 1.8 450 Eighth .. 217.8 92.2 40.0 18.0 3.0 20.0 3.0 4.4 1.6 400 Ninth 190.6 80.7 35.0 15.7 2.6 17.5 2.6 3.9 1.4 350 Tenth 163.4 69.2 30.0 12.5 2.3 15.0 2.3 3.3 1.2 300 Proceeds of reparation recovery acts already in force ANNEX VIII or of systems substituted therefor by agreement with GUARANTEE FUND IN RESPECT OF UNCONDITIONAL the German Government shall be reckoned as deliveries ANNUITIES in kind for this purpose. 4. The sums received under the Dawes plan in 1. The experts of the principal creditor Governrespect of the period April 1 to August 31, 1929, shall, ments have agreed that there shall be assigned to after allowing for expenses in respect of administration France out of the unconditional annuity 500,000,000 of the Dawes plan and armies of occupation, be redis- reichsmarks, in order to allow her to mobilize a substantributed to the extent necessary to provide each of the tial part of her share in the total annuity. creditor powers with cover for its net debt outgoings The aforesaid experts consider that this assignment during the year ending March 31, 1930. (These out- should be final and in no case subject to diminution, but goings are as stated in Part VIII of the report). The should continue to be included in the total assigned to necessary adjustments for this purpose could be made France, subject only to the alteration contemplated in against the payments during the last seven months of the special memorandum signed concurrently with the that year. report of this committee. 5. It is suggested that the division between the 2. In order to equalize the short payments to other creditor Governments proposed in the present annex creditors which would arise from a postponement of the should be accepted as a definitive settlement of all postponable portion of the annuity, it was agreed that questions relating to the distribution of German France should deposit a special guarantee fund with payments and should not be affected by any existing the Bank for International Settlements. arrangements or by the result of accounts relating to 3. On the coming into force of this plan France will past transactions. give to the Bank for International Settlements an under- On the other hand, it is not suggested that the taking to deposit in a trust fund on the demand of the present plan should affect or disturb in any way any Bank for International Settlements foreign currencies existing interallied agreements relating to payments, to a total value of 500,000,000 reichsmarks. It is cessions, or deliveries on the part of the powers formerly understood that this demand will not be made until allied with Germany. It may, however, prove neces- action has been taken leading to the calling of the sary to examine any provisions of these agreements advisory committee referred to in section 8 (E) of the under which receipts by the creditor powers could be report. The amount of 500,000,000 reichsmarks will accounted for as between themselves in terms of Ger- be reduced by the amount of any payments made by man C bonds in order that they may be given an France under paragraph 4 below. application consistent with their original practical The Bank for International Settlements may retain purpose. this deposit as long as it deems necessary, but shall pay 6. The approval of the report by the experts of the interest on it at its maximum current rate for longprinciple creditor countries is made formally contin- term deposits. This deposit, if it is agreed that it gent on this distribution. shall remain for more than five years, shall be entitled Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

494 FEDERAL RESERVE BULLETIN JULY, 1929 to participate in the profits of the bank divisible under equal to the amounts they would have received had the part 11 (5) of Annex I. nonpostponable annuity been distributed in the same 4. As soon as mobilization of any part of the French proportions as the total annuity. annuity has been effected, France will deduct from the (b) Debit the trust fund set up under paragraph 2 proceeds 10 per cent thereof, or 500,000,000 reichs- above with the amount of devisen actually utilized marks, whichever is the less, and will deposit it to the under paragraph (a). credit of the trust account of the Bank for International (c) Receive from each creditor, in exchange for Settlements referred to in the preceding paragraph. devisen accepted under paragraph (a), an assignment in 5. Upon postponement of transfer of any payment favor of the trust fund of an equivalent amount of the due from Germany, the Bank for International Settle- annuity, transfer of which has been postponed. ments shall take the following steps: 6. As and when Germany effectively transfers the (a) Offer to the creditors, other than France, devisen postponed amounts, the bank will credit to the trust up to the amount necessary (but not exceeding 500,- fund its share thereof in accordance with the assignment 000.000 reichsmarks divided, if necessan^, proportion- in paragraph 5 (c) above. ately) to insure to each of them receipts in devisen CONCURRENT MEMORANDUM BUT NOT A PART OF THE REPORT SPECIAL MEMORANDUM OF THE EXPERTS OF THE As regards the first 37 years: PRINCIPAL CREDITOR POWERS AND OF GERMANY (a) Germany shall benefit to the extent of two-thirds REGARDING OUTPAYMENTS of the net relief available by way of a reduction in her annuity obligations thereafter. (Signed concurrently with the report of the committee of experts) (6) One-third of the net relief shall be retained by 1. In the annuities provided in the report, the fol- the creditor concerned, in addition to the amounts lowing amounts are required to cover outpayments: otherwise receivable from Germany. (c) Nevertheless, so long as any liability of Germany [In millions of reichsmarks] persists in respect of the period after March 31, 1966, Annuity Amount AnnuityAmount AnnuityAmount AnnuityAmount the creditor concerned will retain annually only onefourth part of the net relief, the balance being paid to the Bank for International Settlements. 2 965 1 17 1,460.9 32 1, 525 4 46 1,627.6 3 942.3 18 1.456.9 33 1, 543. 2 47 1, 634.2 (d) These payments to the Bank for International 4 995.4 19 1,472.3 34 1,535.0 48 1,637. 9 5 1,136.4 20 1,467.1 35 1,547.4 49 1,644.6 Settlements shall accumulate to assist Germany 6 1 1 , , 1 2 9 2 9 4 . . 0 9 2 21 2 . .. 1 L , , 4 5 6 0 1 3 . . 5 9 3 3 6 7. 1 1 , , 5 5 7 4 3 6 . . 7 8 5 51 0. . 1 1, , 6 6 5 5 9 4 . . 6 7 toward meeting her liabilities in respect of the period 8... 1,271.8 23 1,487.9 38. 1, 566.9 52 1, 670. 5 after March 31, 1966; any sums found after application 9 . 1,334.0 24 1,491.1 39 1,566.1 53 1,687.6 10— 1,352. 5 25 . L.498.1 40 .- 1.575.9 54 1,691.8 of the funds provided in Annex I not to be required for 1 12 1, 1 1 , , 3 4 7 8 5 7 . . 0 6 2 2 6 7 1 1 , , 5 5 0 0 9 4 . . 4 5 4 4 1 2 _.- 1 1, , 6 5 0 8 2 9 . . 2 9 5 56 5 1 1 , , 6 7 8 0 3 3 . . 5 3 this purpose (together with the accumulations thereon) 13— 1,437.9 28 1,499.1 43 1,613.1 57 925.1 shall be returned to the creditor by whom they were 14 1,455.1 29. 1, 506.7 44. 1,621.5 58 931.4 15 1,451.5 30 1, 538.6 45 -_. 1,624.9 59. , 897.8 provided. 16_ . . 1,464.7 31 1,515.4 As regards the last 22 years: The whole of such relief shall be applied to the reduc- It is represented that in the event of modifications of tion of Germany's liabilities. those obligations for outpayments, by which the 3. We recommend that the creditor Governments creditors benefit, there should be some corresponding should agree that, if the operation of the relief to Germitigation of the German annuities. The experts of many envisaged in respect of a possible reduction of the four chief creditor countries and of Germany net outpayments is such as to change materially the therefore recommend that Germany and all the proportions in which the total annuities provided for creditor Governments having obligations for outpay- in the present plan are divided among them, they meet ments should undertake between themselves an to consider a revision tending toward the restoration arrangement on the following basis: of the present proportions, but having regard to the 2. Any relief which any creditor power may effec- following conditions set out below and any other tively receive in respect of its net outward payments relevant factors then existing. on account of war debts, after making due allowance for (a) The service of any bonds mobilized by the creditor any material or financial counterconsiderations and country, and the balance of its net outward payments after taking into account any remissions on account of in respect of war debts remaining to be covered must war debt receipts which it may itself make, shall be continue to be met out of the share falling to it in the dealt with as follows: annuities thereafter to be paid by Germany. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

JULY, 1929 FEDERAL RESERVE BULLETIN 495 (b) Due allowance shall be made for any material of the creditor powers. The unconditional part of or financial counter considerations accepted by the the annuity has, therefore, been fixed, while guarantees creditor country in connection with the relief accorded have been provided for the remainder. to it in respect of war-debts payments. PARIS, June 7, 1929. FRANCQUI. 4. It was originally suggested that the amounts of GUTT. the postponable annuities should be regulated by refer- E. MOREAU. ence to the net amounts which the various creditors J. PARMENTIER. were themselves able to postpone in respect of in- HJALMAR SCHACHT. terallied war debts, the general conditions therein gov- KASTL. erning postponements to be applied. J. C. STAMP. For various reasons this method of calculation could C. S. ADDIS. not be adopted, but endeavor was made to adapt the A. PIRELLI. moratorium provisions in such a way that the rights SUVICH. granted to Germany should not be greater than those Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

496 FEDERAL RESERVE BULLETIN JULY, 1929 ANNUAL REPORT OF THE NATIONAL BANK OF THE KINGDOM OF SERBS, CROATS, AND SLOVENES The annual report of the National Bank of demand of members of the information credit the Kingdom of Serbs, Croats, and Slovenes for section are to make reports of the obligations 1928 was presented to the meeting of share- of persons for whom particulars are asked, not holders on March 10, 1929. Selected sections stating, however, to whom the obligations are dealing with credit policy, currency stabiliza- owed. In this way both the National Bank tion, and money rates are given herewith: * and the other members of the information credit Bank's credit policy and the money market.— section will be able to keep posted with respect Throughout the whole of 1928 the bank con- to their clients and prevent the latter from caustinued to discount bills, but from the end of ing them loss through too large or rash com- April onward it stopped granting new lines of mitments. Settlement will thus be possible of credit and increasing lines previously author- the accounts of individuals before they become ized—excepting only credits given directly to too deeply involved. agriculture. The reason for this policy lay in Policy with respect to foreign bills.—Before the pending negotiations for stabilization of the passing to a survey of the policy with respect currency. By decree of the Royal Government, to foreign bills pursued by the National Bank stabilization had to take place within three in 1928, it is necessary to repeat that the Namonths from the date of the conclusion of a tional Bank has always pursued its policy in foreign loan which was in process of negotia- this respect in the past, in cooperation with the tion. However, a break in the negotiations for Ministry of Finance, and will continue to do so the loan, then troubles in Parliament, and a in the future. By the policy pursued the change of Government in July intervened. All National Bank has succeeded in accumulating this caused lack of confidence in the dinar, the necessary reserve for its notes, if not in gold, both at home and abroad. The promise of a at least in foreign bills which can always be large harvest actually eventuated in a serious turned into gold. We may certainly say that reduction in the chief crop, maize, owing to the not only that the value of the dinar has been prolonged drought, and this made conditions stabilized in fact but that the bank holds still worse. The mistrust of the dinar, and adequate reserves against its notes in foreign even a campaign against it, both here and bills, which is the first essential condition for abroad, caused the National Bank to be more legal stabilization. than cautious; hence the prohibition against We have had consecutively two bad agriculgranting new credits, in order to prevent an in- tural years. These were reflected in a deficit crease in the circulation, was still in force at the in the trade balance of 2,276,764,105 dinars end of the year. ($40,071,000), which means that fewer foreign In order that the granting of credit might be bills by this amount have entered the country. as fair and as safe as possible, the National The distrust of the dinar in 1928, for which Bank, in cooperation with commercial banks, there was no real occasion, was reflected in an has established control over the commitments even larger deficit. The deficiency in exports of those accommodated by it. At present two for these unsatisfactory years was made up by kinds of control have been set up to meet the sales by the National Bank from its reserve of special needs and the special circumstances of foreign bills, in so far as it was not counterthe districts to which they are applied. The balanced by the foreign State loan and by loans basis of this control is that the banks which contracted abroad by the local government deal with the National Bank are to send the bodies or by short-time borrowings abroad of latter reports from time to time of all the obliga- private persons or companies. tions of individuals to them. Specially ap- In normal years our foreign trade position is pointed officials in a separate department of the capable of maintaining the value of the dinar, National Bank are to make lists of the obliga- and even of assuring a certain surplus of foreign tions of various firms, companies, or persons, bills for use in years in which there is a shortage. including those to the National Bank, and on But more work is needed, and more saving, also fiscal stability, less unnecessary borrowing abroad, the development of home indusi Taken from the official English version published by the bank, with some textual revisions made with partial indebtedness to the French tries to utilize national raw materials, and version. In addition to the passages included here, the report contains detailed accounts of the relation of the bank with the State, agricultural greater exports abroad, in order to create a conditions, foreign trade, volume of production, etc., as well as figures favorable trade balance and thus to obviate and analyses of the balance sheet and income account of the bank. For earlier reports see FEDERAL RESERVE BULLETIN, June, 1928, July, 1927, borrowing abroad. With these attained the June, 1926, etc. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

JULY, 1929 FEDERAL RESERVE BULLETIN 497 stabilization of the currency could be fully agement of the bank agreed to obtain the apassured. In the period between 1921 and 1928 proval of its shareholders for the necessary we have had both good and bad years, and changes in the national bank law. Then, as have had years with shortages of foreign bills soon as the loan was concluded, and the loan and years with surpluses. The total turnover act passed, the amendments to the national in bills bought and sold through the National bank law might also be passed, having been Bank to the end of 1928 was 42,777,295,070 approved by both contracting parties, the dinars. Of this total 21,780,430,968 dinars State and the bank. were spent on the purchase of foreign bills, and The foreign loan, however, was not obtained, 20,996,864,102 dinars of these bills were and hence neither the dinar stabilization law sold—10,763,477,013 dinars to adjust the bal- nor the amendment to the national bank law, ance of foreign trade payments, and 10,233,- approved at the extraordinary meeting of 387,089 dinars in the interest of public finance. shareholders of the bank on July 8, 1928, could These figures prove that our foreign business be submitted to Parliament, the latter bill affords a large part of the foreign bills needed being conditional on the conclusion of the for making payments abroad. Some years pro- State loan. duced large surpluses in foreign bills, but cer- Legal stabilization of the dinar presupposes tain years produced shortages which were the settlement and stabilization of State fincovered to some extent from surpluses of other ances. It presupposes also complete restorayears. The latter, however, were not always tion of a sound circulating medium, first, by adequate to meet the whole shortage, and obli- the immediate redemption of a large proporgations had to be incurred abroad in order to tion of the notes put into circulation on behalf effect the balance of payments. In a country of the State, in accordance with the national like this, which needs much more capital in bank law, and secondly, by creation at the order to increase the profit from national labor, bank of a supply of foreign bills to serve as a indebtedness to other countries is justified if reserve against note issues. Such a reserve the money obtained from them is used to in- would be necessary in order that the bank might crease the country's productive power. be able actually to redeem its notes in gold or Last year the National Bank negotiated a in foreign bills equivalent to gold. These revolving credit abroad, but did not find it conditions could be realized only by the connecessary at any time in the year to make clusion of a loan abroad. use of it. Although we did not succeed in raising a The stabilization of the dinar and currency foreign loan last year, we took one step toward reform.—The de facto stabilization of the a legalized status for the dinar, which has been dinar, which has now been maintained for stabilized de facto since 1926. This step was three years, continued throughout 1928. The the agreement between the Ro3^al Government Royal Government carried on negotiations in and the National Bank as to the method and England last year for a loan which was to be basis for effecting legal stabilization. The used primarily in making permanent improve- first part of the plan is now complete, and on ments. The banking group, which had that basis all the monetary and banking prepundertaken to investigate the question of arations necessary for carrying out legal stafloating a loan to this country on the markets bilization have been made. When the second of London and New York, represented to our part of the preparations—namely, the adjust- Government that, without legal stabilization, ment of State finances—shall also have been the loan could not be contemplated, and that completed, a foreign loan for effecting the stabilthis was one of the essential preliminaries to ization of the dinar by law will be possible. any discussion of such a loan. On the proposal The work done at the extraordinary meeting, of the Minister of Finance, therefore, the Gov- therefore, was not lost, as actually one of the ernment decided to undertake an investigation most important parts of the scheme of stabililooking toward stabilizing the dinar by law. zation was accomplished. During the course The National Bank was to undertake the of the year, furthermore, the Independent stabilization and to maintain the dinar at the Monopolies Management concluded a loan of legalized par. In pursuance of this decision $22,000,000, in order to repay the State for negotiations were undertaken with the National funds which the latter had lent for the creation Bank immediately with respect to a stabiliza- of working capital. The State was thus ention law and later with respect to possible abled to pay off obligations assumed in earlier changes in the national bank law. The man- years to private citizens, business and indus- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

498 FEDERAL RESERVE BULLETIN JULY, 1929 try, and was thus able to carry out another less, it may be said that more money was preliminary to stabilization. Through the dis- available last year than in 1927, and that charge of these obligations, State finances are this tendency continues to prevail, while at set on the road to recovery and the basis is the same time money rates last year were being laid for proper budgeting. lower than in the previous year. These are the preliminary measures which Agreements made previously concerning the have been taken for legal stabilization. With payment of interest on saving deposits and the the accomplishment of monetary reform, our interest chargeable on loans remained in force country will enter the ranks of those states last year, and thus proved that agreements which have gold as the basis of their monetary may have an effect in making money cheaper. unit. The price of capital on the home market is of Money rates.—The discount rate charged by great importance to business progress, and the the bank has not changed for the last nine question of establishing rates is among the years, being maintained at 6 per cent. The first problems which ought to be solved if management of the bank, however, has sev- progress is to be furthered. The National eral times discussed the possibility of chang- Bank, faithful to its tradition, paid special ing the rate, especially at times when this was attention last year when extending credit to suggested in order to conform with the usual the rate paid by and charged by other banks principles governing a bank of issue with in carrying on their own businesses. The bank respect to its circulation. The reason that the either extended no credit, or else canceled rate was not raised was that, while recognizing grants to banks which, it learned, pay high the efficacy of the rate policy of the large interest on deposits of money, or else charge European banks of issue, the management of too much on money lent by them. Practithe bank could not accept the view that the cally, it is hard to find out which banks charge results of a rate increase here would be the high rates, since ordinarily the rate can not be same as in those other countries. On the ascertained by examination, as means of concontrary it feared that such an increase on the cealing it exist. So far we may fairly say that part of the National Bank might encourage no borrowing bank has obtained credit from other banks to raise their rates, which are the National Bank—nor indeed has any such already high enough. bank even applied for credit—when there was adequate proof that such bank charged exces- The disparity existing between the discount sive rates. On the other hand, as soon as the rate of the National Bank and the rates charged bank learned from its agents that any banks by private banks is very large. However, only borrowing from it were utilizing that credit a few were able to take advantage of this disunsatisfactorily, it canceled the credit granted. parity, as the National Bank satisfied scarcely 10 per cent of the total need for rediscount in Until the end of the year there was no tax the country. Thus a low rate at the bank could on savings deposits nor on money coming into not have any large influence toward lowering the country from abroad as savings deposits or money rates generally throughout the country, on loan. But from January 1 this year, by the more especially because other conditions virtue of the Law of Direct Taxation, the income essential to such a reduction do not exist here. from savings deposits is to be taxed at 8 per The rate charged last year on collateral loans cent, and the earnings of foreign money here by the National Bank remained unchanged are to be taxed at the rate of 15 per cent. throughout the 12 months at 8 per cent. Out- The reasons against a tax on savings deposits side the bank the interest rate is still high, but still hold good—the tax will discourage somevaries according to the size of the bank and the what the deposit of funds in the banks; it may place. It was always lowest in Slovenia. In thus bring about higher rates of interest as a other localities the variations were large. In result of its unfavorable effect on the volume large centers and at large banks and institu- of bank funds. The tax on money from abroad tions money was obtainable at 12 per cent, may do much to prevent such money from and even for less. The rate, however, was coming in, and this will certainly affeco the higher in the small banks of the smaller towns, price of money and the volume of short time rising to 18 per cent or even more. Neverthe- loans. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

JULY, 1929 FEDERAL RESERVE BULLETIN 499 FINANCIAL STATISTICS FOR FOREIGN COUNTRIES GOLD HOLDINGS OF CENTRAL BANKS AND GOVERNMENTS [In millions of dollars] Month I | I tr T c i ( o e o 4 u s t 0 ) n a - l i U St n a i t t e e s d 2 t g A i e n r n a - - 3 A t l r u i a s a - - g B iu e m l- B zi r l a ^ - C ad a a n - s l E a n n g d - " m G a e n r y - d I i n a - 7 Italy p J a a n - s I l N a e e n r t d - s h- R s u ia s- Spain S l z w a e n i r d t - - c o tr o 2 t i h u e 4 e n s r - 1922-December 8, 348 3,506 473 116 52 27 147 752 227 118 217 606 234 3 487 103 572 1923-December 8,607 3,834 466 121 52 49 127 754 709 111 109 216 602 234 45 488 104 I 585 1924-December 8,938 4,090 444 121 53 54 151 757 710 181 109 218 586 203 73 489 98 601 1925-December 8,912 3,985 451 128 53 54 157 703 711 288 109 219 576 178 94 490 90 627 1926-December 9,185 4,083 451 107 86 56 158 735 711 436 109 221 562 166 85 493 91 634 1927-December 9,536 3,977 529 105 100 101 152 742 954 444 119 239 542 161 97 502 100 672 1928-June T 9, 748 3,732 622 109 111 140 104 838 1,136 496 119 259 r541 80 503 86 694 July 9, 840 3, 737 622 110 112 140 98 857 1,173 524 119 263 r541 85 503 86 694 August 9,879 3,749 621 110 112 143 101 856 1,190 536 119 263 r 541 75 503 87 698 September.. _ 9,938 3, 752 633 107 112 143 106 843 1,200 571 119 266 r 541 76 504 90 699 October 9, 944 3,769 611 107 113 146 108 803 1, 207 603 119 266 1-541 82 504 91 701 November... r 9, 9S0 3,754 610 107 115 148 133 778 1,239 625 120 266 '541 175 92 494 91 702 December r9,999 3, 746 607 108 126 149 114 750 1, 254 650 124 266 541 175 92 494 103 702 1929-January 10,032 3,746 605 109 126 149 79 744 1, 333 650 128 266 541 175 92 494 93 702 February 10,054 3,776 603 109 126 150 78 736 ! 1,334 650 128 266 541 175 92 494 93 703 March 10, 085 3, 814 585 110 126 150 78 748 1,340 639 128 270 542 170 92 494 93 7C6 April 10,042 3, 889 569 110 134 150 78 762 | 1, 403 451 128 270 542 174 92 494 95 701 May (•10,118 3,931 P559 116 134 150 78 795 ' 1,435 420 128 270 542 176 93 494 96 P701 June p 3. 956 139 780 i 1,436 455 | 176 93 494 P Preliminary, based on latest available figures. r Revised. 4 Bank of Brazil and stabilization fund. 1 All countries for which satisfactory figures are available; see explana- 5 Includes gold held by Government against Dominion notes and tion in Bulletin for April, 1929 (p. 263), where separate figures for each savings bank deposits, and such gold as is held by chartered banks in country are given by years back to 1913. The 16 countries for which the central reserve. figures are here shown separately by months include all those which 6 Gold held by Bank of England and, prior to 1925, gold held by exhave held gold in recent years to the amount of $90,000,000 or more. chequer in currency note reserve. 2 Treasury and Federal reserve banks. 7 Currency and gold standard reserves. 3 Government conversion fund and Bank of the Nation. 8 Domestic holdings of Bank of Japan and the Japanese Government GOLD MOVEMENTS [In thousands of dollars] United Stsites Germany Great Britain Netherlands S A o fr u i t c h a India Month p I o m r - ts p E o x rt - s Net p I o m rt - s p E o x rt - s Net p I o m rt - s p E o x r - ts Net p I o m rt - s p E o x rt - s Net Net Net 1928 August 2,445 1,698 747 14,058 765 13,293 24,055 20,180 3,875 125 22 103 -22, 300 2,990 September 4,273 3,810 463 37,084 783 36, 301 19, 233 28, 247 -9, 014 389 3 386 -15,315 1,688 October 14,331 992 13,339 34,146 844 33, 302 15,824 45,597-29, 773 856 36 820 -12,847 4,604 November 29,591 22,916 6,676 23, 261 943 22, 318 22, 261 41,989-19,728 414 23 392 -20,081 6,426 December _ 24,950 1,636 23, 314 26, 923 802 26,121 17, 792 25,502 -7,710 170 65 5 -12,253 9,839 Total 168, 897 560, 759 -391,872 221, 986 9,541 212,444 232, 658 294, 539 -61,881 15,417 1,778 13,639 -208,479 75,908 1929 January.. 48,577 1,378 47,199 1,250 577 672 11,844 27,891-16,047 504 14 490 -16,607 4,730 February 26, 913 1,425 25, 488 1,338 764 574 12, 347 21,383 -9.036 181 6 175 -17,848 7,700 March 26, 470 1,635 24, 835 1,701 804 897 25, 734 7,746 17, 987 133 14,320-14,187 -21, 542 13, 063 April . 24, 687 1,594 23, 093 1,768 223, 247 — 221,480 16, 144 3,714 12,430 165 2 163 6,580 May 24, 097 467 23, 630 1,946 781 1,165 28, 284 4,652 23, 632 4,338 23 4,315 MOVEMENTS TO AND FROM GREAT BRITAIN MOVEMENTS TO AND FROM BRITISH INDIA [In thousands of dollars] [In thousands of dollars] 1929 1928 1929 ! 1928 From or to— * May January-May Calendar year April January-April Calendar year From or to— Im- Ex- Im- Ex- Im- Ex- Im- Ex- Im- Ex- Im- Exports ports ports ports ports ports ports ports ports ports ports ports France 45 306 848 1,543 912 97,178 England 1,276 5,942 11.071 Germany 3,152 1,518 3,194 4,352 258 102,423 United States 22 4,086 Netherlands. _ 237 14,368 1,046 145 7,081 Aden and dependen- Russia . 18,582 cies -. 79 346 910 Spain and Canaries- 3 5 4 37 9,733 199 Arabia 151 511 870 fi Switzerland _ 498 5,478 13,493 British Oceania 310 1,204 5,067 United States 64 29,449 32,532 32,132 Bahrein Islands 10 71 285 South America 1,002 2,055 1,166 1,074 Ceylon 463 706 720 British India- 652 5,891 10,770 China 43 93 153 British Malaya 1,450 71 1,810 Mesopotamia.. 176 900 1.543 Egypt 1,081 2,384 1,309 1,384 Straits Settlements.. 15 4 18 18 1 200 48 Rhodesia- .. _ 451 1,879 5,28G Egypt 511 1,517 1 6,714 Transvaal „ 17,994 64, 630 144,482 Natal 3,562 20, 768 44,387 West Africa 545 2 1, 734 8 3,384 16 All other countries.. 13 5 13 44 All other countries... 5,092 353 5, 577 13,748 14,803 26,978 Total.- 6,597 17 32,105 32 76,007 99 Total 28,284 4,652 94,353 65, 386 232, 658 294, 539 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

500 FEDER4L RESERVE BULLETIN JULY, 1929 CONDITION OF CENTRAL BANKS [Figures are for the last report date of month] 1929 1928 1929 1928 May April March May May April March May Bank of England (millions of pounds National Bank of Belgium (millions sterling): of belgas): Issue department- Gold 962 908 780 Gold coin and bullion 162.5 156.0 153.3 160.9 Foreign bills and balances in gold. 491 456 488 476 Notes issued 422.5 416.0 413.3 180.6 Domestic and foreign bills 744 764 746 543 Banking department- Loans to State 345 345 345 391 Gold and silver coin .5 .4 2.1 Note circulation 2,498 2,431 2,412 2,155 Bank notes 62.4 58.8 51.5 44.6 Deposits 102 123 124 1140 Government securities 40.0 44.3 50.6 29.0 Other securities 22.4 15.6 17.1 National Bank of Bulgaria (millions Discounts and advances 8.2 11.0 13.0 54.0 of leva): Public deposits 24.3 18.3 19.7 22.3 Gold 1,361 1,351 1,342 1,296 Bankers deposits 56.3 58.4 58.2 Net foreign exchange 1,614 1,750 1,836 Other deposits 35.3 35.7 36.4 Total foreign exchange 2,095 2,308 2,953 ""339 Reserve ratiol (per cent) 54.5 52.7 45.4 41.8 Loans and discounts 1,523 1,471 1,485 Bank notes in circulation * 360.1 357.3 361.8 79.7 Government obligations 3,645 3,685 3,685 4,471 Currency notes and certificates... 293.7 Note circulation 3,977 4,366 4,101 3,784 Other sight liabilities 2,876 2,711 1,037 Bank of France (millions of francs):» Gold 36,596 35, 788 34,186 Central Bank of Chile (millions of Sight balances abroad 7,805 8,544 10, 577 Foreign bills 18,407 18, 539 18,434 Gold at home 62 61 61 62 Loans and discounts 8,266 8,737 9,160 Deposits abroad 441 463 413 509 Negotiable bonds 5,769 5,930 5,930 Loans and discounts. 85 92 17 Note circulation 64,316 62,848 64,575 Note circulation 370 366 312 Public deposits 11,431 11, 876 11,617 Deposits 148 180 114 166 Other deposits 7,176 7,283 Bank of the Republic of Colombia German Reichsbank (millions of (thousands of pesos): reichsmarks): Gold at home 25, 745 25, 596 25,395 22, 959 Gold reserve 1,705 1,719 2,553 1,955 Gold abroad 29,426 26,14" 26,554 36,307 Gold abroad 59 173 130 86 Loans and discounts 14,509 15, 273 16, 954 7,377 Reserves in foreign exchange 299 99 36 274 Note circulation 47,810 48,302 51,072 48,360 Loans and discounts 3,260 3,189 2,488 2,512 Deposits 10, 391 9,596 9,515 Deposits _ 628 585 478 582 Reichsmarks in circulation 1,606 4,631 4,822 4,487 Czechoslovak National Bank (mil- Rentenmarks in circulation 498 515 610 lions of Czechoslovak crowns): Gold and silver _ 1,206 1,207 1,206 1,119 Bank of Italy (millions of lire): Foreign balances and currency... 1,703 1,688 1,781 1,737 Gold at home 5,126 5,125 5,126 4,885 Loans and advances 640 653 527 359 Credits and balances abroad 4,911 4,879 5,334 7,289 Assets of banking office in liqui- Loans and discounts 5,110 5,523 5,214 3,981 dation _ 407 411 422 477 Total note circulation 16,251 16,274 16,396 17,105 Note circulation 7,183 7,133 7,333 7,111 Public deposits 300 300 300 300 Deposits 404 466 350 586 Other deposits 1,753 1,844 2,125 3,151 Danish National Bank (millions of Bank of Japan (millions of yen): kroner): Gold 1,064 1,064 1,063 1,063 Gold 173 173 173 182 Advances and discounts 781 792 793 1,075 Foreign bills, etc 94 89 88 104 Government bonds 189 175 172 118 Loans and discounts 74 75 71 62 Notes issued 1,1S8 1,247 1,354 1,207 Note circulation 358 359 357 347 Total deposits 941 789 770 1,116 Deposits 29 33 27 Commonwealth Bank of Australia Bank of Danzig (thousands of Dan- (thousands of pounds sterling): zig gulden): Issue department- Balances with Bank of England- 16,176 13,407 16,069 15,118 Gold coin and bullion 21,861 22, 578 22,581 22,561 Foreign bills, etc 11,746 16,032 13,967 25, 794 Securities 20,482 20,340 21, 740 21,973 Loans and discounts 24,245 24,228 25,329 22,208 Banking department- Note circulation 37,028 37,402 38,739 35,709 Coin, bullion, and cash 1,984 1,728 1,524 1,391 Deposits 2,294 2,107 2,116 3,787 Money at short call in London 15,368 15, 460 17,403 13,099 Bank of Estonia (thousands of Loans and discounts 10, 745 11, 733 12, 552 12,423 krones): Securities 12,285 11,448 10, 252 13,482 Gold 6,295 6,271 6,243 10,291 Deposits 39,091 39,649 42,083 42,165 Net foreign exchange 19,296 19, 803 22,257 27,404 Bank notes in circulation 38,343 38,841 39,635 39,877 Loans and discounts 27,970 30, 048 31,628 27,252 Note circulation 31,587 34,728 36,259 37,133 Austrian National Bank (millions of Depositsschillings): Government 10,763 12, 044 14,594 16,318 Gold. 169 169 169 117 Bankers 4,758 3,705 2,208 2,121 Foreign exchange of the reserve.. 195 197 210 289 Other 2,719 2,702 2,934 4,078 Other foreign exchange 343 346 357 279 Domestic bills 225 207 188 126 1 Ratio of gold and notes in banking department to deposit liabilities. Government debt 110 110 110 1 Notes issued, less amounts held in banking department and in cur- Note circulation 998 995 1,004 rency note account. Deposits 48 38 34 » New form of bank statement adopted in June. 1928. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

JULY, 1929 FEDERAL RESERVE BULLETIN 501 CONDITION OF CENTRAL BANKS—Continued [Figures are for the last report date of month] 1929 1928 1929 192$ May April March May May April March May Bank of Finland (millions of Fin- Bank of Poland (millions of zlotys): nish marks): Gold at home 429 428 427 Gold 301 302 302 312 Gold abroad 195 195 195 186 Balances abroad and foreign Foreign exchange of the reserve... 456 483 530 540 credits.-- 580 661 706 784 Other foreign exchange 83 94 129 213 Foreign bills 5 8 11 29 Loans and discounts 831 783 790 618 Domestic bills 1,366 1,323 1,355 936 Note circulation 1,244 1,274 1,333 1,133 Note circulation 1,481 1,556 1,596 1,576 Current account of the treasury. . 351 338 270 361 Demand liabilities. _ 228 217 265 160 Other current accounts 181 153 242 221 Bank of Greece (millions of drach- Bank of Portugal (millions of escumae): dos): Gold.... 581 570 565 879 Gold 9 Net foreign exchange in reserve.. 3,209 3,470 3,472 3,132 Balances abroad 300 314 326 197 Total foreign exchange. _ 5,528 4,893 4,588 3,246 Bills. 280 278 280 227 Loans and discounts.. _ 117 108 123 Note circulation 1,813 1,798 1,852 Government obligations 3,656 3,656 3,790 3,760 Deposits 55 70 72 Note circulation... 5,415 5,617 5,488 5,250 National Bank of Rumania (millions Other sight liabilities 1,802 1,856 2,122 2,148 of lei): Gold at home 5,068 5, 049 5,021 «4,948 Na li t o i G F A L N O o n o n o s o d o t r h a a l v t o e d e e l n a f i r s g n c p n a c B i a e r s e n a n c b s s d n u g e i l t t l k o l o s d a s s t i , ) i s t : o o r e c e f n t o c a u s H n u t r u s y nga _ ry (mil- 3 1 4 9 8 4 7 4 1 2 1 6 7 6 9 3 1 4 9 3 7 5 7 8 2 3 0 9 7 5 2 3 4 0 9 8 4 5 2 4 2 6 5 8 2 3 4 1 1 1 9 5 9 0 0 9 5 1 1 6 7 7 N F L G S D O o t o o o e t a h r a p l t t e d e n e e o i r s g s c a d i n f i a b t e o r s n r c b r e o d e u t x a i l c g d d a h n t i a i s o n c e n o g x e u c h n o a t f s n g th e e reserve.. 1 2 9 9 3 7 , , , , , 3 3 4 5 6 3 6 5 9 6 7 4 2 5 2 8 2 3 1 3 2 9 6 7 9 . , , , , , 3 5 4 9 5 5 6 8 6 2 2 9 6 7 7 8 0 7 2 2 0 2 1 1 0 3 0 3 8 1 0 , , , , , , , 5 0 6 9 1 1 0 9 5 3 6 5 5 8 1 1 4 3 5 1 0 « « 1 2 1 3 2 ( 0 ( 1 1 , , , , , f ) 6 i 4 0 5 6 ) 4 4 3 1 7 4 3 8 4 9 Deposits 190 154 198 283 State Bank of Russia (thousands Miscellaneous li abilities 52 66 137 of chervontsi): Loans and discounts 361, 523358, 798358,006 320,998 Bank of Java (millions of florins): Deposits _ 206,072 197, 325206,156 193,259 Gold 167 167 174 Issue department- Foreign bills 27 28 17 Gold. 18,098 17, 972 17,883 15, 513 Loans and discounts.. 80 82 79 Other precious metals 4, 268 4,375 4,359 2,871 Note circulation 300 304 305 Foreign exchange.. 9,406 9,170 9,165 7,014 Deposits 36 42 41 Note circulation 112,905 115, 450 110, 212 97,373 Bank of Latvia (millions of tats): National Bank of the Kingdom of Gold 24 24 24 Serbs, Croats, and Slovenes (mil- Foreign exchange reserve 53 57 79 lions of dinars): Bills.. 87 86 82 Gold 93 92 92 90 Loans _ 58 54 43 Foreign notes and credits 230 192 192 263 Note circulation 44 45 42 Loans and discounts 1,474 1,619 1,655 1,482 Government deposits. _ 111 105 120 Advances to State 2,966 2,966 2,966 2,966 Other deposits.. 64 Note circulation.__ 5,092 5,212 5,265 5,280 Deposits 747 729 759 Bank of Lithuania (millions of litas): South African Reserve Bank (thou- Gold sands of pounds sterling): Foreign currency Gold - 8,257 8,049 8,206 7,572 Loans and discounts Foreign bills 7,706 7,713 7,637 Note circulation _ Domestic bills 1,207 1,431 1,412 528 Deposits Note circulation 9,709 8,755 9,498 7,851 Deposits- Netherlands Bank (millions of flor- Government 2,050 2,392 1,613 1,911 ins): I Bankers 4,994 5,140 5,613 4,790 Gold 437 423 435 Others 596 311 244 373 Foreign bills 161 42 194 Bank of Spain (millions of pesetas): D L N o e o a p te n o s s c i i a t r s n c d u l d at i i s o c n ounts 7 1 3 9 9 0 7 4 2 8 9 4 2 6 0 7 2 78 5 1 3 2 0 1 7 3 6 9 6 5 7 B G Si a o l l v l a e d n r . c . es abroad 2,5 7 9 6 2 7 0 0 2, 7 5 9 2 6 6 0 0 2, 7 5 9 1 6 5 6 0 2,6 7 3 0 0 9 7 8 Loans and discounts 1,581 1,719 1,837 1,711 ank of Norway (millions of kroner): Note circulation 4,272 4,258 4,243 4,231 Gold 147 147 147 147 Deposits 1,104 1,070 1,054 Foreign balances and bills 46 56 49 41 Domestic credits 278 273 274 290 Bank of Sweden (millions of kronor): Note circulation 305 308 312 313 Gold 234 235 235 231 Foreign deposits. 2 1 2 2 Foreign bills, etc 183 186 189 112 Total deposits 112 114 98 121 Loans and discounts 390 364 374 421 Note circulation 519 518 544 494 Reserve Bank of Peru (thousands of Deposits 208 188 174 202 libra): Swiss National Bank (millions of Gold 4,244 4,169 4,215 4,094 francs): Gold against demand deposits 172 247 201 322 Gold 496 493 481 440 Foreign exchange reserve 738 827 790 1,223 Foreign balances and bills 261 247 218 199 Bills 1,916 1,793 1,717 1,285 Loans and discounts 181 201 242 220 Note circulation 6,199 6,046 6,075 5,847 Note circulation... 872 875 886 831 Deposits 344 493 401 645 Demand deposits.. 110 112 111 76 < Converted into the terms of the leu adopted Feb. 7, 1929. 8 Foreign exchange not reported separately. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

502 FEDERAL RESERVE BULLETIN JULY, 1929 CONDITION OF COMMERCIAL BANKS [Figures are for the last report date of month except for London clearing banks, which are daily averages] 1929 1928 1929 1928 May April March May April March r F u e a b ry - April Nine London clearing banks (millions of pounds sterling): Joint-stock banks of Denmark (mil- I M A D n d e v o p v e n o a s e n s t y m i c t e s a e s t n a c ts n al d l a d n is d c o s u h n o t r s t notice.... 1 1 , , 1 7 2 1 7 3 4 4 2 2 4 3 1 1 , , 1 7 2 1 7 4 4 4 8 3 4 3 1 1, , 7 1 2 1 3 9 4 3 9 5 4 4 1 1, , 6 1 2 8 3 3 8 5 2 lio D L D D n o e s u u a p e e o n o f t f s s r o k i o a t r m s n f o o d a n r n e f e o d i d r g r i ) e s n : c i c g u o b n r u a r n e b n t n a k s t n s k ac s counts._. 1 1 , , 9 7 1 4 3 5 7 6 9 3 8 1 1, , 9 7 1 3 2 9 6 9 2 0 9 1 1 , , 9 1 7 4 9 6 2 0 4 6 3 2 1, , 8 0 1 9 2 6 2 0 8 0 2 Six Berlin banks (millions of reichsmarks): Joint-stock banks of Finland (mil- A B M D D i c u e i l c s l p e s c e o e f p a s r l t o n i l a a t m d n s n - c e . t e _ r o o e s u th a s s e u l r o r b a y n a n n s o k t s es 9 2 7 1 , , , , 1 1 6 0 4 8 3 5 4 9 7 2 9 5 1 10 2 1 7 , , , , 2 1 3 4 0 0 3 6 5 3 9 8 3 9 6 1 2 7 0 1 , , , , 2 1 4 6 4 4 8 4 4 0 3 9 1 4 4 2 6 7 , , , 5 1 9 0 1 4 6 2 1 8 7 5 lio D D D L n o e s u u a p e e o n o f f t s s r o i o F a t m s a i n n b d n r a o i d b s a i h r d s o c m a o d u a n rk ts s): _ __ 9 7 , ,6 8 1 3 5 6 0 0 8 9 7, , 6 7 5 2 2 8 8 0 5 2 7 1 9 7 , , 6 4 5 2 3 6 5 1 8 2 2 8 8 7 , ,5 9 2 4 0 6 2 0 6 3 1 2 Tokyo banks (millions of yen): Three commercial banks of France T T T C o o o as t t t a a a h l l l o l d c o n l e e a p a n h o r s a i s n n i g t d s s _ 2 2 2 , , , 1 2 0 3 0 0 4 4 1 3 7 4 2 2 2 , , , 1 4 2 0 0 5 6 5 9 7 3 6 2 2 2 , , , 2 1 2 0 3 4 6 9 1 0 0 7 2 2 2 , , , 2 0 3 6 8 7 7 2 8 9 4 2 (m B T L D il o i i e l m l a i l m o s n e n a s a s n d n a d e d o n p f d d n o f e a r a s p t a i d i o o t n v s s n c a . i s a . t n ) s l- c : d e e s fense bonds.. 3 1 1 2 9 0 , . , 1 1 6 4 5 0 2 1 3 8 7 0 3 19 9 2 , , , 7 8 6 9 1 0 2 3 8 3 0 9 2 3 1 0 3 0 , , , 2 9 3 7 7 2 0 5 2 6 7 3 : I 2 1 6 8 6 , , , 5 5 9 4 3 4 9 6 9 2 5 1 1929 1928 Four private banks of Italy (millions of lire): April March j April B C i a l s ls h discounted 1,178 8 1, , 1 9 6 3 3 8 1 9 , , 2 0 5 7 0 8 Due from correspondents 5,40; 5,091 5,237 Banks of Buenos Aires, Argentina D ue to correspondents 13, 701 13,523 14,294 (millions of gold pesos): Deposits _ 3,041 3,045 2,839 Gold- Bank of the Nation 106 125 125 129 | Joint-stock banks of Norway (mil- Othe O r th c e a r s h ba - nks 15 12 12 11 I lio L n o s a o n f s k a r n o d n e d r i ) s : counts 1,266 1,294 1,298 1,442 Bank of the Nation 133 125 144 145 Due from foreign banks 102 116 128 78 Other banks 170 190 197 210 Due to foreign banks 86 86 82 138 Loans and discounts- Rediscounts 99 102 101 162 Bank of the Nation 543 531 525 487 Deposits 1, 564 1,568 1,588 1,635 Dep O o t s h i e ts r - banks 881 870 862 751 Joint-stock banks of Poland (mil- Bank of the Nation 773 772 780 744 lions of zlotys): Other banks.. 1,016 1,027 1,011 936 Loans and discounts P821 817 796 642 Due from foreign banks P35 34 36 32 Chartered banks of Canada (mil- Due to foreign banks P169 178 165 100 lions of dollars): Rediscounts P 150 146 152 120 Gold coin and bullion 1 64 63 64 70 Deposits... P511 511 505 429 Current loans and discounts 1,572 1,560 1,506 1,452 Money at call and short notice... 564 560 597 491 Joint-stock banks of Sweden (mil- Public and railway securities 516 524 530 541 lions of kronor): Note circulation 171 189 162 171 Loans and discounts 4,123 4,130 4,137 4,091 Individual deposits 2,560 2,560 2,561 Foreign bills and credits abroad.. 276 265 266 283 Gold reserve against Dominion Due to foreign banks 126 151 122 158 notes 59 58 59 95 Rediscounts 209 230 167 243 Dominion note circulation 205 205 192 192 Deposits 3,524 3,540 3,527 3,509 i Not including gold held abroad. » Preliminary. DISCOUNT RATES OF 34 CENTRAL BANKS [Rate prevailing July 1,1929, with date of latest 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 Apr. 24,1929 England . 5lA Feb. T, 1929 Japan 5.48 Oct. 10,1927 Portugal 8 July 27,1926 Belgium June 30,1928 Estonia... Jan. 2,1928 Java Feb. 25,1929 Rumania m May 14,1929 Bulgaria.._ 9 Dec. 15,1928 Finland... Nov. 16,1928 Latvia 6-7 Apr. 1,1928 Russia Mar. 22,1927 Chile 6 Oct. 22,1928 France 3V6 Jan. 19,1928 Lithuania... 7 Feb. 1,1925 South Africa 8 Jan. 9,1928 Colombia 8 Mar. 18,1929 Germany . Apr. 25,1929 Netherlands &A Mar. 25,1929 Spain 5H Dec. 19,1928 Czechoslovakia. 5 Mar. 8,1927 Greece 9 2 Nov. 30,1928 Norway Mar. 27,1928 Sweden 5^ Aug. 24,1928 Danzig 7 Apr. 30,1929 Hungary.. 8 Apr. 24,1929 Peru.. Mar. 7,1929 Switzerland. 4H Oct. 22,1925 Denmark 5 June 24,1926 India 5 June 6,1929 Poland 9 Apr. 19,1929 Yugoslavia.. June 23,1922 Ecuador 8 June 26,1928 Italy 7 Mar. 14,1929 j* Changes.—Imperial Bank of India from 6 to 5 per cent on June 6,1929. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

JULY, 1929 FEDERAX RESERVE BULLETIN 503 MONEY RATES IN FOREIGN COUNTRIES Netherlands (Amster- Switzer- England (London) Germany (Berlin) dam) land Month B a m a n a c o n c c n e k e s t p e , h r t s - 3 s' T m b re i o l a l n s s t , u h 3 r s y Da m y o -t n o e -d y ay o a B n ll a o d n w e k p a e o n r s c s i e ' ts d P is r r c i a v o t a e u t n e t M 1 o m ne o y n t f h or Da m y o -t n o e -d y ay d P is r r c i a v o t a e u t n e t M 1 o m ne o y n t f h or d P is r r c i a v o t a e u t n e t 1927 May 3.88 3.84 3.73 2H 4.90 6.95 5.99 3.46 3.76 3.19 June 4.34 4.36 3.43 2H 5.39 7.73 5.79 3.57 3.87 3.42 July 4.33 4.33 3.50 2H 5.90 8.49 7.06 3.53 3.25 3.47 August 4.33 4.35 3.61 2H 5.82 8.38 5.81 3.45 3.40 3.44 September . 4.32 4.33 3.55 lYi 5.90 8.30 6.00 3.56 3.82 3.39 October 4.32 4.33 3.57 2H 6.69 8.72 7.19 4.11 4.29 3.38 November.. 4.33 4.34 3.62 2H 6.76 8.72 6.03 4.50 4.73 3.39 December 4.31 4.31 3.44 2tt 6.87 9.10 7.24 4.49 4.85 3.40 1928 January 4.19 4.13 3.49 2H 6.27 7.66 5.16 4.29 4.10 3.29 February 4.18 4.18 3.63 2tt 6.20 7.30 6.66 3.97 3.80 3.12 March.. 4.12 4.07 3.63 2M 6.72 7.51 6.81 3.97 3.89 3.20 April 4.02 4.01 3.57 2H 6.71 7.57 6.64 4.18 3.93 3.29 May . _. _ 3.97 3.95 3.58 2H 6.66 7.80 7.00 4.27 4. 17 3.32 June _ 3.82 3.80 3.26 2H 6.59 8.08 6.37 4.18 4.11 3.40 July 3.99 3.97 3.27 oiz 6.74 8.18 7.74 4.10 3.84 3.44 August 4.27 4.26 3.50 2H 6.68 8.19 6.12 4.13 3.90 3.41 September 4.23 4.19 3.55 2H 6.65 8.58 6.65 4.39 4.35 3.38 October. 4.35 4.37 3.80 2H 6.57 8.26 6.70 4.40 4.42 3.38 November 4.38 4.30 3.64 2H 6.28 8.15 6.70 4.44 4.74 3.35 December. .. . 4.37 4.37 3.22 2\i 6.28 8.77 7.30 4.46 4.68 3.32 1929 January 4.32 4.29 3.41 2H 5.80 7.51 5.13 4.20 4.46 3.28 February 5.05 4.96 4.33 2H-3^ 5.80 7.07 6.33 4.39 4.78 3.31 March . _ 5.33 5.30 4.51 6.31 7.30 6.97 4.64 5.05 3.39 April 5.21 5.18 4.43 6.63 7.57 6.85 r 5.36 r 5 81 3.45 May 5.21 5.21 4.67 m 7.49 9.65 9.32 5.37 5.88 3.34 (B B r e u lg s i s u e m ls) F (P ra a n ri c s e ) (M It i a l l a y n) Austria (Vienna) Hungary S ( h S w o t e o lm d c e k ) n - Japan (Tokyo) Month d P is r c iv o a u t n e t d P is ri c v o a u t n e t d P is r c iv o a u t n e t d P is r c iv o a u t n e t M fo o r n e 1 y co P m ri m m e e r- Day-to-day Loa to n s 3 up Discounted m C o a n l e l y rate rate rate rate month cial paper money months bills 1 overnight 1927 May 4.23 2.46 8.50 5H -5% 6^-8 6H-7H 5^-634 4 -6 4.38-4.75 June 4.17 2.25 7.60 5H -513/ie 6^-734 7 -7H 534-6% 4 -6 4.38-5.11 July 3.84 2.13 7.00 5% -6H 7 -8H 7H-8 6 -7 4 -6 3.65-5.11 August 3.84 2.04 7.00 GVA -65/£ 7^-8?4 7J-6-8H 6 -7?4 4 -6 3 65-4 75 September 3.75 2.01 6.81 6H -6MG 7 -8H 7H-8J4 6 -7H 4 -6 2.19-4. 38 October, 3.87 1.82 6.50 6H -6Ma 7^-8^ 7H-8H 6 -7H 4 -6 2 19-4.38 November 4.09 2.75 6.27 7 -8H 534-734 4 -6 2 74-4.02 December 4.15 2.95 6.00 &H -6M« 6?4-834 7H-8H 5H-734 4 -6 2.19-5. 84 1928 January 4.08 2.81 6.00 5*4 -6H 6^-8 7H-8H 5H-7K 4 -6 1.64-5.11 February 3.90 2.75 5.89 5H -5^6 6H-7H 7?^-8H 5H-734 4 -6 1.46-4.02 March 4.10 2.72 5.75 m -59*e 6H-7H 7H-8VS 5 -7H 4 -6 6. 57-6. 94 2.92-4.02 April 4.25 2.62 5.49 5Mfl -5H 6H-7H 7H-8Vi 5Y4-7M 4 -6 6. 57-6. 75 2. 56-4.02 May 4.25 2.62 5.25 5H -fM 6H-7H 7H-8^ 5H-7H 4 -6^ 6. 39-6. 75 1.46-4. 02 J J u u n ly e 4 4 . . 2 0 7 2 2 3 . . 9 1 0 2 5 5 . . 2 2 5 5 5?4 -654 m-sn 7 7 X \$ - r 8 % U Vl 5V6-7H 4 4 - - 6 6V V £ * 6 6 . . 3 2 9 1 - - 6 6 . . 5 5 7 7 1 1 . . 4 4 6 6 - - 4 4 . . 0 0 2 2 August 4.00 3.23 5.25 6M« -6H 67%H--88HH 7H-8H 5H-7H 4VS-6H 6.21-6. 39 2.92-4.02 September 3.96 3.26 5.25 6fi« -6M 7J4-8H 7H-8M 5^-7^ 4H-6V4 6. 02-& 39 2. 37-4. 02 October 3.94 3.37 5.25 6H 7H-&H 7^-9 6^-834 4H-6V4 6. 21-6. 39 2.92-4.02 November . 3.94 3.37 5.45 6^ 7H-8H 7^-9 6M-8H 4H-6H 6 02-6 21 2. 01-4.02 December 3.94 3.41 5.50 6H -m 7H-m 7Ji-8H 6H-8H 5. 84-6. 21 1.83-6.57 1929 January 3.94 3.50 5.83 6M«-6S* 7W-8W 7^-8% 5.84-6. 21 1.46-5.84 F M e a b r r c u h ary 3 3 . . 9 9 4 4 3 3 . . 3 3 7 9 6 6 . . 0 3 0 1 6 e M n 6 - - 6 m Me 7 7 H U- - & 8H U 7 7 ^ % -8 - H m 6 6 H ^- -8 8 U ^ 5 5 . . 6 6 6 6 - - 5 5 . . 8 8 4 4 2 2. 1 0 9 1 - - 4 4. . 0 0 2 2 A M p a r y il 3 3 . . 9 9 4 4 3 3 . . 4 4 4 9 6 6 . . 7 8 5 3 6M6-7H 734-83/4 8H-9 7H-9 5 5 . . 4 4 8 8 - -5 5 . . 6 66 6 3 2 . . 4 5 7 6 ^ -4 L . 0 0 2 2 714 -7K 8 -9 r Revised. 1 Figures for the rate on discounted bills, as compiled by the Bank of Japan, have been completely revised by the bank from March, 1928, to date. The new series, which is based on more uniform quotations than the old, represents the range for the month of the rates prevailing daily. NOTE.—For sources used, methods of quotation, and back figures, see the FEDERAL RESERVE BULLETIN for November, 1926, and April, 1927. 57856—29 6 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

504 FEDERAL RESERVE BULLETIN JULY, 1929 FOREIGN EXCHANGE RATES [Monthly averages of daily quotations.* In cents per unit of foreign currency] EUROPE (s A ch u i s l t li r n ia g) B ( e b l e g lg iu a m ) Bu (l l e g v a ) ria C ( z c v e r c a o h k w o ia n sl ) o- 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 m ic rk h a ) s n - y (d G ra r c e h ec m e a) H (p u e n n g g a o r ) y Par value 14.07 13.90 0.72 (J) 26.80 486.65 2.52 3.92 23.82 1.30 17.49 1928—June 14.0685 13.9615 .7199 2. 9625 26.8173 488. 0262 2. 5171 3.9311 23. 9009 1. 3023 17.4475 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 February 14. 0543 13.8944 .7202 2.9604 26. 6664 485. 2140 2. 5169 3. 9057 23. 7306 1. 2915 17. 4278 March 14.0522 13.8836 .7206 2.9610 26.6493 485. 2626 2.5165 3.9058 23. 7218 1. 2920 17. 4255 April 14. 0467 13. 8847 .7212 2.9600 26. 6527 485. 3225 2. 5160 3. 9070 23. 7039 1. 2924 17.4239 May 14. 0468 13. 8826 .7210 2. 9599 26. 6473 485. 0785 2. 5155 3. 9071 23. 7570 1. 2924 17. 4269 June 14.0465 13.8832 .7218 2.9602 26. 6332 484. 8230 2.5144 3.9098 23. 8403 1.2921 17. 4280 I (l t i 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 Ru ( m leu a ) nia ( R c n u h e s e t s r z i v a ) o * - (p S e p s a e i t n a) S (k w ro ed n e a n ) S ( w f l r a a i n t n z d c e ) r- ( Y s d l i a u n v g a i o a r - ) Par value 5.26 40.20 26.80 11.22 108.05 0.60 514.60 19.30 26.80 19.30 19.30 1928—June... 5. 2607 40. 3331 26. 7845 11. 2094 4. 4258 .6152 * 515.0000 16. 5681 26. 8334 19. 2754 I. 7605 November. >, 5. 2385 40.1374 26. 6511 11.1985 4.4708 .6042 4 515. 0000 16.1201 26. 7278 19. 2494 L. 7581 December 5. 2369 40.1748 26. 6728 11.1913 4. 4082 .6005 « 515. 0000 16. 2348 26. 7633 19. 2729 L. 7587 1929—January 5. 2337 40. 1096 26. 6560 11.1883 4. 4281 .6018 • 515. 0000 16. 2954 26. 7392 19. 2405 L. 7580 February 5. 2343 40. 0490 26. 6633 11.1942 4. 4069 .6001 < 515. 0000 15. 5587 26. 7275 19. 2318 I. 7573 March _ 5. 2351 40. 0535 26. 6609 11.1923 4. 4495 . 5964 * 515.0000 15.0656 26. 7101 19. 2333 .7563 April 5. 2355 40.1409 26. 6644 11.1910 4.4645 . 5955 * 515. 0000 14. 7495 26. 7054 19. 2468 1.7563 May 5. 2357 40.1984 26. 6550 11.1859 4. 4738 . 5946 * 515. 0000 14. 2245 26.7181 19. 2572 ]L. 7570 June 5. 2313 40.1512 26. 6393 11.1858 4. 4854 .5935 « 515. 0000 14.1315 26. 7623 19. 2409 ].756 8 NORTH AMERICA SOUTH AMERICA Canada Cuba Mexico Argentina Bolivia' 1 Brazil Chile ! Colombia* Ecuador» 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—June 99. 7605 99.9495 48.8267 96.9438 34. 8000 11.9924 12.1980 98.1046 20.0000 399. 5000 102. 2513 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 February 99. 6411 100. 0307 48. 4581 95. 7650 36. 5000 11.9171 12. 0479 97. 0900 20. 0000 399. 7727 102. 6037 March 99. 4030 100.0261 48.0515 95. 5624 36. 5000 11. 8235 12. 0645 96. 7669 20. 0000 400. 0000 101.6177 April _. 99. 2394 99.9721 48. 2419 95. 5563 36. 5000 11. 8348 12. 0644 96. 3900 20. 0000 400. 0000 99.1120 May 99.3012 100. 0101 47. 9715 95. 5184 36. 5000 11. 8634 12. 0423 96. 3900 20. 0000 400. 0000 97. 7018 June 99.1632 89. 9522 47.8536 95. 2760 36. 5000 11. 8553 12. 0362 96. 4320 20. 0000 400. 0000 96. 6934 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 c r a ) a » n (S C t h a a h e n i l n ) g « a hai d ( C o Y h l u l i a n a r n a ) » (d H K o o o ll n n a g g r) i (r I u n p d e ia e) J ( a y p e a n n ) ( J f a lo v r a in * ) (Si S m n e g e t a n tl p t e s o - re ( T p T o u u u r r k n k e i d s y ) h (E p g E o y g u p y n t p i d a t ) ndollar) Par value _. 19.30 41.43 57.57 40. 98 41.14 36.50 49.85 40.20 56.78 439. 65 494.31 1928—June 19. 2500 47. 7930 66. 2321 47. 4815 50. 5411 36. 4618 46. 6149 40. 2327 56.1426 51. 0877 500. 4409 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 497. 6198 1929—January 19. 3400 45. 6837 63.1168 45. 4070 49. 8161 36. 4487 45. 5102 40. 0623 56. 0027 48.7296 497.3430 February 19. 2636 44.7932 62.1973 44. 5558 48. 8849 36. 3629 45. 2103 39.9218 55.9681 49. 2150 497. 5544 March 19 2500 44.8856 62. 2304 44. 6205 48. 8437 36. 3623 44. 5203 39. 9396 56. 0752 48 9973 497. 6292 April 19.2550 44. 2260 61.2516 43. 9839 48.6963 36. 3107 44. 6176 39. 9896 55. 9615 49. 0731 497. 6630 May__ 19. 3300 43. 2824 59.6191 42. 8005 48. 3424 36.1817 44. 6460 40.1000 55. 9824 48. 5304 497. 4362 June... 19.3800 42.1116 57.7650 41.4866 47. 8613 36.0292 43. 8830 40. 0500 55. 9284 1 Based on noon buying rates for cable transfers in New York as certified to the Treasury by the Federal Reserve Bank of New York, in pursuance of the provisions of sec. 522 of the tariff act of 1922. For back figures see BULLETIN for January, 1928, and January, 1929. 1 The NTatioaal Bank of Czechoslovakia opened Apr. I, 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 April, 1924, to March, 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. 4 Silver currency. The figure given for parity represents gold value of unit in June, 1929, computed by multiplying silver content of unit by New York average price of silver for June, 192G, which was $0.52740 per fine ounce. On the same basis, parity in June, 1928, for the Chinese Mexican dollar was 47.40 cents; for the Shanghai tael, 65.85 cents; for the Yuan dollar. 46.88 cents; and for the Hong Kong dollar, 47.06 cents. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

JULY, 1929 FEDERAL RESERVE BULLETIN 505 PRICE MOVEMENTS IN PRINCIPAL COUNTRIES WHOLESALE PRICES ALL COMMODITIES EUROPE United States (Bu- France Ger- Month r S L t e i t a c a a s b u t ) i o s o i r - f b ( A t g a r u s o i i a s l s d - ) g B iu e m l- g B a u ri l a - C v z a s e l k o c i h - a o- m D a e r n k - T (B E l r a a o o n n d a f g d e r - d ) b ( a l F g a s i o n i n s l d - d ) i B S t t u i a c r t a e i l s a - u F R B e e d o se e a r r r v a d l eS c m a ( t e F a l a r t e a i n B d s l y t u - i - - b H ( g g a a u s o r i n l s y 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 September 97 130 837 2,736 975 153 142 101 601 574 140 133 465 150 158 October 97 129 839 2,747 966 154 141 101 587 554 140 133 468 150 157 November. 97 127 838 2,707 967 154 141 103 595 545 140 133 466 152 157 December.. 97 127 841 2,739 975 154 140 103 604 567 140 135 463 152 156 1928 January 96 129 851 2,782 982 153 141 102 607 569 139 135 463 154 157 February 96 128 848 2,826 985 152 140 102 609 569 138 134 461 151 157 March _ 96 129 848 2,839 978 153 141 103 623 587 139 135 464 153 157 April 97 131 847 2,891 984 154 143 103 619 601 140 136 464 153 156 May 99 131 844 2,906 987 155 144 103 632 617 141 135 465 152 156 June 98 133 844 2,866 986 155 143 103 626 621 141 135 462 152 158 July 98 133 841 2,911 979 155 141 103 624 613 142 133 453 148 160 August 99 133 831 2,790 996 154 139 103 616 607 142 134 456 145 153 September 100 131 830 2,805 986 151 138 101 620 598 140 137 458 146 153 October 98 129 835 2,844 971 150 138 101 617 585 140 138 463 146 151 November. 97 128 847 2,875 957 151 138 101 626 580 140 137 466 148 150 December 97 127 855 2,«65 955 151 138 101 624 588 140 135 464 148 150 1929 January _ 97 128 867 2,869 953 151 138 100 630 591 139 134 461 146 149 February 97 130 865 2,945 950 159 138 100 638 599 139 137 463 145 150 March 98 133 869 2,974 964 154 140 100 640 140 138 461 H: 150 April 97 134 862 2,991 963 150 139 99 627 137 138 455 144 148 May 96 135 851 940 136 98 623 136 142 146 June 96 134 848 917 611 135 147 EUROPE—continued ASIA ANDOCEANIA AFRICA Can- Month lan P d o - »« Russia2 Spain Sweden S l w an it d ze * r- ada1 Peru t A ra u l s i - a ( C S h h h a a i n i n ) g a - 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 ro p ) t A So fr u ic th a 1927 September 101 170 169 148 144 97 205 170 172 153 150 169 146 120 October . 101 170 169 147 145 97 200 173 169 152 147 170 146 118 122 November 102 170 168 148 147 97 200 166 166 151 148 168 147 115 December 101 170 169 148 146 97 199 162 164 150 148 168 148 114 1928 January... 100 171 166 148 145 97 199 163 163 150 145 169 150 114 120 February 99 171 166 147 144 97 195 160 164 149 144 169 147 114 March 102 171 165 149 145 98 193 160 163 149 144 169 147 116 April 105 171 166 151 146 98 197 162 163 150 146 170 147 126 121 May 103 171 164 152 145 98 195 159 165 151 147 171 148 117 June . 103 172 164 151 145 97 195 158 160 150 145 169 148 117 July 102 172 164 150 144 96 193 157 159 150 148 169 148 117 119 August 100 173 166 149 144 95 190 154 157 148 143 170 147 119 September 100 173 168 146 145 96 188 153 156 149 142 174 148 120 October 100 176 174 145 145 95 187 152 159 149 143 174 149 126 120 November 100 176 176 145 145 95 186 152 159 149 146 173 150 129 December 100 177 175 145 144 95 185 154 160 149 145 174 149 126 1929 January 98 177 171 144 143 95 186 157 160 150 145 172 147 125 120 February - 99 177 175 145 143 96 186 156 162 150 144 171 146 122 March 99 178 174 144 142 96 189 157 164 151 143 171 146 123 April 98 179 174 141 140 94 185 158 161 149 140 170 146 120 121 May 99 140 139 92 186 156 162 139 169 114 June 93 186 163 168 108 i New index-1926-100. 1 First of month figures. • 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

506 FEDERAL RESERVE BULLETIN JULY, 1929 WHOLESALE PRICES—Continued GROUPS OF COMMODITIES ENGLAND—BOARD OF TRADE SWEDEN—BOARD OF TRADE 1929 1928 1929 1928 May Apr. Mar. Feb. Jan. May May Apr. Mar. Feb. Jan. May All commodities. „ 136 139 140 138 138 144 All commodities _ 140 141 144 145 144 152 Total food 144 148 150 149 148 159 Vegetable products 126 128 131 131 129 152 Cereals 133 137 140 142 140 159 Animal products 137 136 139 144 144 138 Meat and fish 146 146 145 144 144 144 Fuels and oils 118 117 122 126 116 112 Other foods 152 160 165 160 159 175 Raw materials for manu- Industrial products 132 134 135 133 133 135 facture in iron and metal Iron and steel 115 114 113 113 113 112 industry. . 118 120 120 117 116 113 Other minerals and metals.. 119 125 126 118 116 112 Paper pulp and paper 163 162 161 161 161 161 Cotton 155 159 162 159 162 173 Raw materials for manu- Other textiles _ 154 156 158 159 161 169 facture in leather indus- Miscellaneous 134 135 136 137 139 143 try 126 130 132 131 135 149 Raw and manufactured chemicals 153 153 155 165 165 166 FRANCE—STATISTICAL BUREAU S R e a m w i f m ini a s t h e e ri d a l m s aterials . 1 14 3 0 4 1 14 3 2 6 1 1 4 4 3 1 1 14 4 3 3 1 1 4 3 2 9 1 1 4 5 9 7 Finished materials 143 143 145 146 147 151 Producers' goods 133 135 137 137 135 143 All commodities 623 627 640 638 630 632 Consumers' goods... 145 146 150 151 151 159 All foods 621 623 624 625 612 623 Animal foods 608 624 603 614 604 536 V Su e g g a e r ta , b c l o e ff e fo e o , d c s ocoa. 6 5 4 6 9 6 6 5 2 9 9 1 6 59 4 6 8 6 60 3 2 7 6 59 2 0 3 6 67 7 5 8 CANADA-DOMINION BUREAU OF STATISTICS All industrial material. 626 631 653 650 645 640 M T Su e i x n n t d e i r l r e i a e s l s s 6 7 5 0 6 6 4 6 0 6 5 7 0 6 8 5 0 3 8 6 6 1 1 0 1 2 2 8 6 5 2 6 2 4 4 1 8 6 5 2 2 4 2 3 9 8 5 1 3 1 3 A V A l e n l g i m c e o t a a m b l l m p e r o o p d d r i o u ti d c e u t s s cts 10 8 9 9 2 2 1 8 0 9 4 8 4 11 9 8 0 6 9 10 9 9 8 6 0 1 9 8 0 5 7 7 1 1 0 9 0 2 8 2 Textiles 92 92 93 93 93 94 Wood and paper products. 94 95 95 94 98 99 GERMANY—FEDERAL STATISTICAL BUREAU Iron and its products 94 94 93 93 93 94 Nonferrous metals 95 99 102 96 94 90 Nonmetallic minerals 92 92 93 94 94 92 All commodities 136 137 140 139 139 141 Chemicals 95 95 95 94 94 95 Total agricultural products 126 128 134 134 132 136 Vegetable foods 125 130 133 132 130 156 Cattle. 120 122 123 120 118 105 AUSTRALIA—BUREAU OF CENSUS AND STATISTICS Animal products 130 127 142 151 147 132 Fodder... 133 140 142 140 138 162 P T r o a o t n v a I N T C H C A d i r l s o e o h o i r i s d x t i a n o e n i e n e t f l m n f m i i d s e l c s e i u r i i c a r f s a s o i a n l n t l u r d i s i f s s a e h l r l e m e t a i d l r e t i a h z t p a w e e l r r r s o s m du a c te ts rials 1 1 1 1 1 1 1 1 2 3 2 2 3 8 4 2 1 5 6 6 8 1 7 4 0 8 1 1 1 1 1 1 1 1 2 2 3 2 2 2 4 3 8 7 8 6 6 9 7 8 3 8 1 1 1 1 1 1 1 1 2 2 3 3 2 3 5 3 8 8 8 8 4 7 2 0 0 8 1 1 1 1 1 1 1 1 3 2 2 2 3 3 1 4 8 4 8 5 6 9 1 8 9 7 1 1 1 1 1 1 1 1 2 3 3 2 3 2 1 5 8 4 8 4 8 9 7 3 3 7 1 1 1 1 1 1 1 1 3 3 4 2 0 5 6 2 8 1 5 0 8 4 6 7 6 2 T A D A M B M G C e u h l g r a e e l o x e i i r a t l r c t c i m a d i y c t e o l l i u e r s i m n c i p l s e g t a a r m u s l o n s r m d a o d a n d u l a c d i c t p t o e t i r a e s r t o o i l s a d b l u a s c c c ts o 1 1 1 1 1 1 1 1 1 5 8 5 7 4 4 6 6 5 6 9 4 4 5 5 1 4 9 1 1 1 1 1 1 1 1 1 7 5 5 6 5 8 5 6 4 4 4 4 0 4 9 8 4 8 1 1 1 1 1 1 1 1 1 4 5 5 5 7 5 5 6 8 8 0 2 7 4 7 9 6 9 1 1 1 1 1 1 1 1 1 7 5 6 5 6 5 5 8 1 4 5 6 9 0 6 9 9 7 1 1 1 1 1 1 1 1 1 6 5 5 5 5 8 1 6 7 7 9 7 6 9 9 7 3 2 1 1 1 1 1 1 1 1 1 8 5 5 2 6 6 7 6 5 9 8 9 2 3 5 4 9 1 Technical oils and fats 126 126 126 126 127 118 R Pa u p b e b r e m r aterials and paper.. 15 3 1 0 1 2 5 9 0 15 3 1 4 1 3 5 4 1 15 2 1 8 14 2 8 5 INDIA (CALCUTTA)-DEPARTMENT OF STATISTICS Building material 157 157 157 157 157 160 Total industrial finished products 158 158 158 158 159 158 1929 1928 Producers' goods 138 138 137 138 138 136 Consumers' goods 172 173 174 174 175 175 Apr. Mar. Feb. Jan. Dec. Apr. ITALY—CHAMBER OF COMMERCE OF MILAN All commodities 140 143 144 145 145 146 Cereals . 119 129 133 131 131 130 Pulses 147 146 166 171 181 148 All commodities 485 493 499 498 Tea 157 157 157 165 157 169 Total food... 555 562 570 569 Other foods 154 159 149 156 153 162 Vegetable foods 554 569 585 574 Oil seeds. 148 148 150 149 152 139 Animal foods 555 552 552 562 Raw jute 105 105 108 107 97 101 All industrial products 458 466 472 471 J ute manufactures 125 139 138 139 147 152 Textiles 420 433 440 440 Raw cotton 152 161 158 153 159 173 Chemicals.- 441 446 449 454 Cotton manufactures 161 161 162 163 160 157 Minerals and metals 447 452 456 450 Other textiles ..... 136 140 140 140 140 145 Building materials 541 541 541 541 Hides and skins 120 130 125 116 125 156 Other vegetable products 488 501 519 511 Metals 130 127 124 126 127 125 Sundries 501 516 522 527 Other articles 143 139 141 139 138 137 NOTE.—See footnotes on preceding page. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

507 JULY, 1929 FEDERAL RESERVE BULLETIN RETAIL FOOD PRICES AND COST OF LIVING RETAIL FOOD PRICES [Pre-war=100] EUROPEAN COUNTRIES OTHER COUNTRIES United States Month (5 i 1 e s c ) it- A t ( r V u ia i s - - g B iu e m l- 1 g B a u ri l a - slo z v e a ch k o ia - l E a n n g d - 5 E ni s a to 23 - F (P r a a r n i c s e ) m G a e n r- y G ( e A r n e t s e h ) c - e I ( l t a M a n l i ) y - l N a e n e r t d - h s - 4 N w o a r y - R si u a s - 2 S l z a w e n r i d - t- a C d a a n - 2 A t l u r i a s a - -I ( b n B a d o y i m ) a - N Z la e e n a w d - A So fr u ic th a enna) 1927 June _. 155 122 2,699 949 154 120 580 2,063 541 163 172 199 157 146 153 151 120 July 150 122 205 2,653 962 159 122 557 156 2,059 524 175 199 156 147 152 154 119 August 149 120 202 2,624 914 156 118 539 2,044 518 175 199 156 147 I 155 155 118 September. 151 119 206 2,615 910 157 111 532 151 2,070 509 "l63" 174 198 158 147 | 157 151 117 October 153 120 210 2,626 907 161 112 520 2,071 509 173 198 158 148 j 159 148 119 November. 153 119 211 2,587 905 163 113 500 152 I 2,086 510 171 199 159 149 157 147 119 December. 153 118 212 2,618 913 163 113 523 153 2,101 513 167' 171 200 159 151 i 155 149 1928 January... 152 118 211 2,660 913 162 118 530 152 3 146 3140 170 201 158 151 154 119 February.. 149 117 207 2,701 910 159 118 522 151 3144 3 141 170 202 157 149 152 146 118 March 148 116 201 2,713 902 155 122 524 151 3 143 3 141 "lee" 171 203 156 147 142 118 April 149 117 202 2,766 905 155 126 532 152 3H4 3 141 171 203 156 146 140 119 May 151 117 197 2,778 156 126 546 151 3 145 3 140 172 205 156 146 120 June. 150 122 200 2,740 157 126 3 113 152 3 144 3 142 "I69~ 170 206 157 145 142 114 July- 150 119 202 2,783 156 130 Mil 154 3 138 3 140 173 211 157 146 116 August 151 120 205 2,667 943 156 129 3 111 156 3 134 3 138 170 211 156 149 I 150 115 September. 155 120 210 2,682 928 156 124 3 110 153 3 132 3 140 166 164 210 157 150 ! 150 147 115 October 153 120 215 2,719 907 157 125 3 115 152 3 137 3 141 163 211 158 152 149 142 115 November- 154 120 223 2,749 900 159 126 3 119 152 3 137 3 144 161 213 158 152 150 118 December . 153 119 222 2,739 905 160 125 3 121 153 3 133 3 145 164 161 215 158 152 152 152 115 1929 January.._ 151 120 221 2,742 900 159 133 3 121 153 3 133 3 147 158 216 157 152 146 115 February. _ 151 123 221 2,816 911 156 138 3 122 156 3 135 3 147 157 218 157 150 146 115 March 150 121 215 2,843 913 157 142 3 123 159 3 155 "163" 158 223 156 151 146 117 April 149 119 212 2,860 901 150 137 3 124 154 3 151 156 230 154 148 145 115 May. 150 120 211 906 149 136 154 156 147 143 115 June.. -_ 152 124 147 154 156 147 144 COST OF LIVING EUROPEANCOUNTRIES OTHER COUNTRIES Massa- Month s c e h t u ts - g B iu e m l- ' s C lo z v ec a h k o ia - l E a n n g d - 2 l F a i n n d - ( F P r a a r 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 ga u r n y - I ( t l M a an l i y - ) N la e e n r t d - h s - N w o ay r- la P n o d - 5 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 i u a a s - - ( I b B n a d o y m i ) a -A So fr u ic th a 1927 June 156 196 761 163 1,184 525 148 ,951 121 586 167 201 101 185 160 149 155 154 132 July 155 199 753 166 1,203 150 ,960 119 548 98 184 169 160 149 156 132 August 155 19S 739 164 1,237 147 ,951 119 543 99 192 160 149 157 131 September. 155 202 736 165 1,230 507 147 ,955 119 537 167 197 99 187 161 149 157 154 131 October 155 207 734 167 1,237 150 ,956 120 536 101 189 "172" 161 150 151 132 November. 157 208 735 169 1,251 151 ,964 120 536 103 188 162 150 150 132 December. 157 208 740 169 1,243 498 151 ,978 120 531 170 195 103 186 162 151 159 151 132 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 3 145 100 175 161 150 148 131 March 155 204 737 164 1,214 507 151 3 153 119 3 145 169 193 101 176 160 149 157 145 132 April . 155 205 741 164 1,212 151 3 153 121 3 145 102 175 "in" 160 149 144 133 May 156 202 743 164 1,207 151 3 153 121 2 144 103 171 160 149 147 133 June._. 155 204 741 165 1,219 3 105 151 3 152 121 3 145 170 193 103 172 161 148 157 146 132 July 157 205 753 165 1.236 153 3 148 121 3 143 104 173 173 161 148 146 131 August 157 207 761 165 1,258 154 H46 126 3 142 104 174 161 150 146 131 September 158 211 756 165 1,249 3 105 152 3 145 127 3 143 169 185 104 178 161 151 155 145 131 October.. . 157 215 735 166 1,254 152 3 148 126 3 144 104 179 "I72~ 162 152 146 131 November 157 220 730 167 1,262 152 3 148 125 3 146 106 181 162 152 147 132 December . 157 219 734 168 1,260 3 108 153 3 146 126 3 147 168 183 106 187 162 152 155 148 131V 1929 January 157 219 737 167 1,242 153 3 148 126 3 147 106 184 170 161 152 149 131 February 156 220 745 165 1,232 154 3 150 127 3 148 108 183 161 151 149 131 March 157 217 754 166 1,229 3 111 157 3 149 127 3 153 169 180 106 184 . 161 152 149 132 April 157 215 746 162 1,219 154 125 3 150 106 184 "In" 159 150 148 132; May 157 215 744 161 1,210 154 106 160 151 147 June 160 153 179 149 14T i 1921=100. 2 First of month figures. 3 Revised on a gold basis. 4 Amsterdam only. 1911-1913=100. * 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

508 FEDERAL RESERVE BULLETIN JULY, 1929 LAW DEPARTMENT Discretion of Federal Reserve Board in approving This is an appeal from a final order of the the organization of foreign banking corporations. lower court dismissing the appellants' petition The authority of the Federal Keserve Board for a writ of mandamus upon the allegations to exercise its discretion in the matter of ap- of the petition and answer. proving or disapproving the organization of The case arises under the act of Congress of corporations pursuant to the provisions of December 24, 1919 (41 Stat. 378), commonly section 25 (a) of the Federal reserve act, to known as the "Edge Act/7 first enacted as engage in international or foreign banking or section 25 (a) of the Federal reserve act. international or foreign financial operations See Title XII, sections 611 to 631, U. S. C. A. was upheld by a decision of the Court of The act provides that corporations may be organized Appeals of the District of Columbia on June for the purpose of engaging in international or foreign 3, 1929, in the case of United States ex rel. banking or other international or foreign financial Apfel et al. v. Mellon, et al. Certain indi- operations, and may be formed by any number of natural persons not less than five; that such persons viduals had filed with the Federal Reserve shall enter into articles of association which shall Board the articles of association and organispecify in general terms the objects for which the zation certificate of a proposed foreign bank- association is formed, and shall execute an organizaing corporation to be organized under section tion certificate which shall set out the name assumed 25 (a) of the Federal reserve act and had by the corporation, the place or places where its operations are to be carried on, the place in the United requested the board to approve these organiza- States where its home office is to be located, the tion papers and to issue to the organizers amount of its capital stock and the number of shares a preliminary certificate to commence business. into which it shall be divided, the names and places After investigation, the board reached the of business or residence of the persons executing the certificate and the number of shares to which each has conclusion that the experience and business subscribed, and the fact that the certificate is made to qualifications of the organizers of the proposed enable the subscribers and their successors to avail corporation were not such as to hold promise themselves of the advantages of the act. It provides of the successful conduct of such a corporation also that no corporation shall be organized under the act with a capital stock of less than $2,000,000, oneand that it would not be in the public interest to quarter of which shall be paid in before the corporation approve the organization papers and to issue may be organized to begin business; that the persons a preliminary permit for the proposed cor- signing the organization certificate shall duly acknowlporation to commence business. The organ- edge the execution thereof, and forward it to the Federal Reserve Board, and that after the articles of associaizers thereupon filed a petition for a writ of tion and an organization certificate are duly made and mandamus in the Supreme Court of the Dis- filed, and " after the Federal Reserve Board has trict of Columbia to compel the board to take approved the same and issued the permit to begin the action requested. The board filed an business, the association shall become and be a body corporate," with certain specified powers including in answer and the petitioners then demurred to general the right to engage in international or foreign the answer of the board. The demurrer was banking or other financial operations. The act prooverruled by the lower court and its decision vides "that except such as is incidental and preliminary was affirmed by the decision of the Court of to its organization no such corporation shall exercise Appeals of the District of Columbia. The any of the powers conferred by this section until it has been duly authorized by the Federal Reserve Board to opinion of the latter follows: commence business as a corporation organized under the provisions of this section." It also provides that COURT OF APPEALS OF THE DISTRICT OF such a corporation may establish and maintain branches COLUMBIA or agencies in foreign countries at such places as may be approved by the the Federal Reserve Board and No. 4837 under such rules and regulations as the board may prescribe. Charles L. Apfel, Stephen B. Gibbons, Bertrand A. In the instant case the appellants, as relators below, Unger, Joseph Sheldon, Henry Green, Henry M. filed their petition against the appellees as members of Susswein, Edmund J. Horwath, and Milo Ogden the Federal Reserve Board, alleging that the relators Frank, appellants, v. Andrew W. Mellon, J. W. had duly executed and filed with the respondents, a Mclntosh, Roy A. Young, Edmund Platt, Adolph certificate for the organization of a corporation under C. Miller, Charles S. Hamlin, Edward H. Cunthe foregoing act for the purpose of engaging in interningham, and George R. James, as members of the national or foreign banking under the name " Foreign Federal Reserve Board, appellees. Financing Corporation," and that the certificate fully Appeal from the Supreme Court of the Dis- conformed with the requirements of the act; but that trict of Columbia. the respondents nevertheless had wrongfully refused to approve of the same or to issue a permit to relators to Before Martin, chief justice, and Robb and begin business as a body corporate under the act. Van Orsdel, associate justices. The relators prayed for a writ of mandamus to compel Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

JULY, 1929 FEDERAL RESERVE BULLETIN 509 the respondents acting as the Federal Reserve Board Reserve Board has approved the same and issued a to approve the articles of incorporation and the permit to it to begin business. The word "approved" organization certificate aforesaid, and to permit naturally imports the exercise of judgment and disrelators to begin business as a body corporate under cretion; and the power to approve ordinarily implies a the name " Foreign Financing Corporation," in power to disapprove. accordance with the provisions of the act. To "approve" or give "approval" is in its essential The respondents filed their answer admitting that and most obvious meaning to confirm, ratify, sanction, the articles of association and organization certificate or consent to some act or thing done by another. The filed with the board by relators were in proper legal word "approve" does not, ex vi termini, necessarily form, but stating that the board had refused to ap- import the exercise of discretion, but from the connecprove the same on the following grounds: tion in which the term is used it often involves the idea "That the Federal Reserve Board as a board, and of discretion and adjudication, and is seldom construed the respondents as members thereof, deem it their as requiring a mere ministerial act. (4 C. J. 1464.) duty carefully to inquire into the qualifications of the In the case of State ex rel. Dodd v. Hill, Banking organizers of such proposed corporations and to refuse Commissioner, 84 W. Va., 468, the Supreme Court of to approve the articles of association and organization West Virginia dealt with a statute which provided that certificates of su'ch proposed corporations and to issue "hereafter no charter shall be issued to any bank to a permit for such proposed corporations to do busi- do business in this State until the application therefor ness, unless after investigation said board is of the has been approved in writing by the commissioner of opinion that the financial responsibility, experience, banking." Acting under this statute the commissioner training, and other qualifications of the organizers of of banking had refused to issue such a charter to the such proposed corporations are such as may reason- appellants, upon the ground that, for the protection of ably be calculated to hold promise of the financial the public, he had carefully considered the proposed soundness, reliable and competent management, and location of the bank, the territory contributory thereto, proper and successful operation of such proposed cor- its possibilities and probabilities from a banking standporation." point, and other questions connected therewith, and "* * * that relators do not possess the qualifi- that in the exercise of his best judgment as an officer cations reasonably necessary to assure the financial he had arrived at the conclusion that the application soundness, reliable and competent management, or the should not be approved. In denying a writ of manproper or successful operations of a corporation organ- damus to compel the commissioner to issue a charter ized under section 25 (a) of the Federal reserve act to the court held that the statutory provision aforesaid engage in the highly technical activities of interna- vested in the commissioner discretionary power to tional or foreign banking or other international or for- approve or reject such an application, and that the eign financial operations and that it would be detri- commissioner's decision was not subject to judicial mental to the public interest to approve such articles review unless it clearly appeared that he had "willfully of association or organization certificate and to issue and arbitrarily disregarded his duty, or that his decision a preliminary permit for such proposed corporation to was due to caprice, passion, partiality, or corruption." commence business; and that, therefore, the said board In the People ex rel. Schweder v. Brady, Auditor refused to approve the articles of association and the of Public Accounts, 268 111. 192, the Supreme Court of organization certificate and refused to issue a permit Illinois held in relation to similar legislation that a to said proposed corporation to begin business. Re- statute authorizing the State auditor to withhold the spondents say that this determination by the Federal final certificate of organization of a bank when he is Reserve Board was unanimous; that it was adopted not satisfied as to the personal character and standing after impartial investigation and full and impartial of the officers or directors or when he has reason to consideration of all the facts; and that respondents believe that the bank is organized for any purpose believed then and now believe that it would be conother than that contemplated by the act, is not untrary to public policy and contrary to the duty of constitutional on the ground that it confers judicial or respondents as public officers to approve said articles legislative power on the auditor. of association and said organization certificate or to See First National Bank v. Union Trust Co., 244 issue a preliminary permit to the relators to begin U. S. 416. business as a body corporate." In the instant case it is dear that Congress was The relators filed a demurrer to the answTer of re- providing a means for conferring special and important spondents. The lower court overruled the demurrer, privileges upon such corporations as should be orand, relators electing to stand upon their demurrer, ganized under the Edge Act. An abuse by any corthe court dismissed the petition, and the relators poration of the powers thus granted to it might involve appealed. grave consequences to our public service. It is It is contended by appellees that the statute imposes reasonable to believe that Congress intended that a the duty upon the Federal Reserve Board of exercis- careful investigation should be made by the Federal ing its judgment and discretion with respect to the Reserve Board concerning the character and compeapproval or disapproval of the articles of association tency of the incorporators of such an enterprise, as and organization certificates made and filed under the one of the means of determining whether to grant or act, and that the board's action in this instance is withhold their approval of the application for incorwithin the limits of that authority. On the other poration. Moreover it should be noted that the act hand, appellants contend that "Congress has not un- repeatedly provides for an "approval" by the board dertaken to delegate to the board the discretion it has as a prerequisite to proceedings authorized thereunder, assumed to exercise." and in all such instances the term plainly implies the We agree with the contention of the appellees. exercise of consideration, judgment, and discretion by The statute provides that an association formed under the board. The act provides inter alia that any such the act shall not become a body corporate until after corporation may at any time within the two years the articles of association and organization certificate next previous to the date of the expiration of its corhave been duly made and filed, and after the Federal porate existence, by a vote of the shareholders owning Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

510 FEDERAL RESERVE BULLETIN JULY, 1929 two-thirds of its stock, apply to the Federal Reserve Changes in State Bank Membership Board for its approval to extend the period of its corporate existence for a term of not more than 20 years, and upon certified approval of the board such The following list shows the changes affecting State corporation shall have its corporate existence for such bank membership during the month ended June 21, extended period. The board, accordingly, may exer- 1929, on which date 1,183 State institutions were cise its judgment and discretion with respect to what members of the system: is practically a renewal of the corporate charter. This fact is significantly consistent with the view that the ADMISSIONS board possesses a similar power over the granting of the first charter. An examination of congressional legislation with Capital Surplus Total regard to banking since 1864 shows that Congress has consistently used various forms of the wTord "approve" in the sense of conferring discretion upon the Comp- District No. 1 troller of the Currency, the Secretary of the Treasury, or the Federal Reserve Board. Such a consistent use Bristol American Bank & Trust Co., Bristol, Conn $200,000 $200,000 $3, 599, 243 of the term in statutes in pari materia is persuasive. Marks v. United States, 161 U. S. 297. District No. 2 The statutes relating to the organization of national Seaboard Bank of the City of banks are analogous to those now in question. It is New York, N. Y 11, 000,000 14, 000,000 279, 739, 812 therefore proper to note that the Comptroller of the Currency has prescribed the following as one of the District No. 7 regulations governing the investigations to be made by Union Industrial Bank, Flint, the examiners relating to applications for national-bank Mich 1,800,000 700,000 31, 680, 824 charters: District No. 8 "In making this investigation the examiner is instructed to give full consideration to all factors enter- Cass Bank & Trust Co., St. Louis, ing into the proposition. Among other matters to be Mo 300,000 400,000 6, 725, 531 State Savings Bank, Lebanon, considered are: First, the general character and experi- Mo 25,000 15, 000 368,415 ence of the organizers and of the proposed officers of the new bank; second, the adequacy of existing bank- District No. 11 ing facilities and the need of further banking capital; Security State Bank & Trust Co., third, the outlook for the growth and development of Beaumont, Tex 125, 000 10, 000 1, 219, 271 the town or city in which the bank is to be located; Central Trust Co., San Antonio, fourth, the methods and banking practices of the Tex _ _ 250, 000 100, 000 5,474,730 existing bank or banks, the interest rates which they charge to customers, and the character of the service CHANGES which as quasi-public institutions they are rendering to their community; fifth, the reasonable prospects for success of the new bank if efficiently managed." District No. 2 Instructions No. 4 of the Comptroller of the Currency, Corn Exchange Bank, New York, regulations promulgated June 31, 1927, Digest of N. Y. (title changed to Corn Rulings of the Federal Reserve Board with appen- Exchange Bank Trust Co.). dices (1928), pages 394-395. Hanover Bank of the City of New York, N. Y. (merged with See McCormick v. Market Bank, 165 U. S. 538, Central Union Trust Co., New 551-2. York, N. Y., member, under In the present case mandamus will not lie to control title of Central Hanover Bank the exercise of the board's discretion. Th & e T T r r u a s d t e C B o a .) nk of New York, $10, 000, 000$15, 000, 000 $320, 273, 000 "It is a frequently asserted and universally recog- N. Y., has absorbed the Tompnized rule that mandamus only lies to enforce a minis- kins Square Bank, New York, N. Y., nonmember. terial act or duty; in this sense a ministerial duty may Liberty Bank of Buffalo, N. Y., be briefly defined to be some duty imposed expressly member, has absorbed the by law, not by contract or arising necessarily as an Frontier National Bank of Buffalo, N. Y__ 200, 000 50, 000 2,159, 000 incident to the office, involving no discretion in its exercise, but mandatory and imperative. The distinc- District No. 8 tion between merely ministerial and judicial and other Bank of North America & Trust official acts is that where the law prescribes and defines Co., Philadelphia, Pa. (merged the duty to be performed with such precision and cer- with and under the title of tainty as to leave nothing to the exercise of discretion Pennsylvania Co. for Insurance on Lives & Granting Annuities, or judgment, the act is ministerial; but where the act Philadelphia, Pa., member) 5,000,000 5,000, 000 74,122,000 to be done involves the exercise of discretion or judg- Citizens Savings & Trust Co., ment, it is not to be deemed merely ministerial." 18 York, Pa. (merged with and under title of York Trust Co., R. L. C. 116. York, Pa., member) 500,000 300,000 3, 849, 000 The judgment of the lower court is affirmed with Security Trust Co., Camden, costs. N. J., nonmember (merged with and under title of Camden (Signed) GEORGE E. MARTIN, Safe Deposit & Trust Co., Cam- Chief Justice, Court of Appeals of the District of Columbia. den, N. J., member) _ 200, 000 600, 000 5, 862, 72a Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

JULY, 1929 FEDERAL RESERVE BULLETIN 511 CHANGES—Continued lunatics; (9) in any other fiduciary capacity in which State banks, trust companies, or other corporations which come into competition with national banks are Capital Surplus Total permitted to act under the laws of the State in which the national bank is located. District No. 6 Citizens Banking Co., Eastman, Dis- Powers Ga. (reopened) _ ___ $100, 000 $20, 000 $607, 089. Location trict Name of bank granted No. District No. 7 Industrial Savings Bank, Flint, Middletown, Conn. First National Bank.. i 1 to 9. Mich 1,000, 000 300, 000 22, 750, 000 Haver hill, Mass Haverhill National Bank....! 1 to 9. Union Trust & Savings Bank, Peabody, Mass Warren National Bank 1 to 9. Flint, Mich 400, 000 400, 000 9, 410,000 Rochester, N. Y First National Bank & Trust Ito9. (Above member banks Co. merged under title of Union Yonkers, N. Y Central National Bank 1 to 9. Ameri I c n a d n u S st t r a i t a e l B B a a n n k k , , F m or e t m M be a r d ) - . Springfield, Ohio.. La B g a o n n k d . a Citizens National 1 to 7 and 9. ison, Iowa (voluntary with- Erie, Pa... Marine National Bank 1 to 9. drawal)... 100, 000 22, 000 846, 060 Leechburg, Pa First National Bank 1 to 9. Merchants National Bank, De- Albany, Ga City National Bank 1 to 9. troit, Mich, (merged with Dime Harvey, 111. First National Bank.. 1 to 9. Savings Bank, Detroit, Mich., Bluff ton, Ind First National Bank 1 to 9. member, under title of Bank of Noblesville, Ind... American National Bank... 1 to 9. Michigan).__ 2, 000, 000 1, 000, 000 30, 839, 000 Creston, Iowa First National Bank __ 1 to 9. State Bank of Waupun, Waupun, Lebanon, Ky Farmers National Bank 1 to 9. Wis. (voluntary withdrawal).-. 50, 000 50, 000 1, 048,195 St. Paul, Minn.... American National Bank... 1 to 9. Canon City, Colo.. First National Bank Ito9. District No. 8 Kansas City, Mo.. Drovers National Bank in 1 to 9. Kansas City. Cass Avenue Bank, St. Louis, Brownsville, Tex.. Merchants' National Bank . 2 to 9.1 Mo. (succeeded by Cass Bank Paris, Tex... First National Bank 1 to 9. & Trust Co., a member) 300, 000 400, 000 6, 725, 531 Spokane, Wash First National Trust & Sav- 1 to 9. ings Bank. District No. 11 Texas State Bank & Trust Co., i Supplemental. San Antonio, Tex. (withdrawal) 300, 000 36, 000 2, 702, 040 Central State Bank, Sherman, Tex. (voluntary withdrawal) 100, 000 11, 000 454, 240 Changes in National Bank Membership District No. 12 The Comptroller of the Currency reports the follow- Bingham State Bank, Bingham ing increases and reductions in the number and capital Canyon, Utah (title changed to First Security Bank of Bing- of national banks during the period from May 25 to ham). June 21, 1929, inclusive: Growers Bank, San Jose, Calif, (converted into San Jose National Bank) 300, 000 35, 000 1, 834, 957 Number of Am ca o p u i n ta t l of banks Acceptances to 100 Per Cent New charters issued 13 $2, 575, 000 The following member institution has been author- Restored to solvency 0 0 ized by the Federal Reserve Board to accept drafts Increase of capital approved 18 4,050,000 and bills of exchange up to 100 per cent of its capital Aggregate of new charters, banks, restored and surplus: Seaboard Bank of the City of New York. to solvency, and banks increasing capital- 31 6, 625,000 N. Y. Liquidations 18 14, 385,000 Reducing capital 1 50,000 Fiduciary Powers Granted to National Banks Total liquidations and reductions of capital. 19 14,435,000 Consolidation of national banks under act of During the month ended June 21, 1929, the Federal Co N n o so v l . id 7 a , t 1 io 91 n 8 of a national bank and a State 0 0 Reserve Board approved applications of the national bank under act of Feb. 25, 1927 1 100,000 banks listed below for permission to exercise one or more of the fiduciary powders named in section 11 (k) Total consolidations 1 100, 00,0 of the Federal reserve act, as amended, as follows: Aggregate increased capital for period 6, 625,000 (1) Trustee; (2) executor; (3) administrator; (4) regis- Reduction of capital owing to liquidations, etc 14, 435,000 trar of stocks and bonds; (5) guardian of estates; Net decrease . 7, 810,000 (6) assignee; (7) receiver; (8) committee of estates of Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

512 FEDERAL BESERVE BULLETIN JULY, 1929 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 Y N o e r w k d P e h lp il h a i - a C la le n v d e- m Ri o c n h d - la A n t t - a Chicago L S ou t. is M ap in o n li e s -K C an it s y as Dallas F c S i r s a a c n n o - Bills discounted: 1928—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 February _ 889.2 61.9 216.3 85.5 84.7 41.0 55.8 165.9 37.8 12.8 32.5 19.2 75.8 March 968.6 58.6 231.5 101.6 76.0 43.4 51.7 210.6 48.1 15.6 31.8 14.8 85.0 April 1, 004. 4 75.8 264.6 110.0 96.6 52.6 63.6 133.4 51.8 19.3 38.8 18.6 79.3 May 956.3 96.5 234.5 86.7 93.8 58.1 73.4 109.8 48.7 18.1 49.1 23.1 64.4 June 978.0 9,9.4 251.2 84.7 90.9 56.6 65.9 135.9 49.9 15.2 48.3 22.3 57.7 Total deposits: 1928—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 February 2,406. 7 149.2 943.2 135.4 188.7 71.1 69.1 357.0 85.0 54.0 93.8 72.8 187.3 March 2, 384. 7 145.5 944.5 134.9 188.2 69.5 68.9 349.8 81.8 54.1 93.0 70.9 183.6 April 2, 367. 5 146.4 937.1 135.9 186.4 70.2 67.9 346.8 81.5 52.9 91.0 68.6 182.7 May__ _ 2, 350. 9 143.5 932.6 136.7 187.0 68.3 66.1 346.9 80.3 51.5 89.0 66.5 182.6 June _ 2,374.4 146.0 949.6 136.9 188.3 69.5 65.6 347.6 79.6 52.7 90.3 65.4 183.0 Member bank reserve balances: 1928—June 2, 354.5 149.3 925.9 136.2 185.9 68.5 66.6 352.0 80.3 52.9 go. 3 64.1 182.5 July 2, 323. 5 149.9 902.4 134.7 186.8 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 .90. 3 67.6 62.7 352.3 80.1 53.0 92.8 65.5 182.4 October 2, 332. 2 152. 5 889.7 134.8 187.8 68.3 63.4 353.3 80.5 55.1 92.5 68.9 185.2 November 2, 352. 3 152.0 903.4 134.4 185.4 69.1 64.8 354.0 81.5 56.1 93.0 71.4 187.3 December 2, 366. 8 148.6 923.4 134.5 183.4 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 February 2, 357. 3 146.7 928.5 133.5 185.7 68.6 67.6 352". 8 82.9 52.5 91.9 70.7 176.0 March 2, 336. 5 144.3 924.6 133.4 185.6 67.6 67.7 346.5 78.7 53.1 91.8 70.0 173.1 April.. 2,307.9 144.1 915.2 133.2 183.4 67.2 66.2 341. 6 77.8 51.6 89.2 66.8 171.7 May__ 2, 296.4 141.9 914.7 133.8 184.1 65.6 64.5 340.8 76.6 50.2 87.5 65.1 171.6 June 2,314. 3 142.4 931.9 134.7 184.2 65.5 63.4 341.0 75.9 51.3 63.3 172.0 Government deposits: 1928—June 12.8 .6 4.1 .8 .8 1.2 1.1 .7 .6 .7 .9 July 19.5 .7 3.7 1.3 1.0 2.2 1.4 1.8 1.1 .9 1.2 1.5 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 j 1.3 1.3 1.7 1.6 1.2 .8 .8 .7 1.2 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 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 1.7 1.5 .9 .8 .8 1.2 1.4 1929—January 18.2 1.2 3.7 1.3 .9 1.7 1.5 1.6 1.1 1.0 1.2 1.3 1.8 February 20.9 1.3 4.7 1.1 1.3 2.1 1.1 2.3 1.3 1.1 1.3 1.1 2.0 March 16.8 .6 6.3 .8 1.1 1.5 .8 1.3 .7 .6 .6 .7 1.9 April 24.8 1.6 6.5 1.9 1.2 2.6 1.3 3.2 1.1 .9 1.1 1.6 1.9 May. 22.5 .9 4.6 2.1 1.4 2.3 1.1 3.9 1.2 .9 1.2 1.1 1.7 June _. 30.4 2.9 7.6 1.4 2.2 3.6 1.7 4.2 1.1 .9 1.2 1.8 1.6 All other deposits: 1928—June 27.5 .7 12.1 2.1 .5 .4 2.8 .7 .5 .3 5.6 July 29.7 .9 13.4 1.1 2.3 .7 .5 2.7 .8 .5 .8 .4 5.7 August 28.4 .9 10.8 1.0 2.3 .7 .6 3.1 1.0 .5 1.0 .4 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 .5 6.1 October 29.7 .7 9.9 ] 0 2.1 .8 .8 3.0 1.7 1.0 2.1 .3 6.3 November 31.8 1.3 14.6 2.4 .5 .5 2.3 1.1 .5 .9 .3 6.6 December 29.4 .6 11.1 1.6 .5 .4 2.7 1.0 .5 .6 .3 9.4 1929—January 31.3 .6 13.2 2.2 .5 .4 2.3 .7 .5 .5 .3 9.3 February,. 28.5 1.2 10.0 1.8 .4 .4 1.9 .8 .4 .6 1.0 9.3 March 31.3 .6 13.7 1.5 .4 .4 1.9 2.4 .4 .5 .2 8.6 April 34.8 .7 15.4 1.8 .5 .4 2.1 2.5 .5 .7 .3 9.1 May_ __. 32.0 .6 13.3 1.5 .4 .5 2.1 2.5 .4 .4 .3 9.2 June 29.7 .7 10.1 1.8 .5 .4 2.4 2.5 .4 .4 9.4 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

JULY, 1929 FEDERAL RESERVE BULLETIN 513 FEDERAL RESERVE BANKS-RESOURCES AND LIABILITIES AT END OF MONTH [In thousands of dollars] 1929 1928 June 29 May 31 June 30 Total gold reserves 2,857,814 2, 813,403 2, 548, 943 Reserves other than gold. 171, 779 137,320 145,853 Total reserves.. 3,029, 593 2, 950, 723 2, 694, 796 Nonreserve cash 57,234 71, 262 50, 833 Bills discounted 1,037,149 I 1,067,867 1,095, 423 Bills bought: Outright 72, 683 104,448 193,780 Under resale agreement. 12, 331 23,085 Total bills bought.. 81,592 116,779 216,865 United States securities: Bought outright 147,921 137,209 199,183 Under resale agreement. 67, 781 5,785 35,508 Total United States securities.. 215,702 142, 994 235,143 Other securities _ 12,465 | 7,816 490 Total bills and securities. 1, 346, 908 1, 335,456 1, 547, 921 Due from foreign banks 728 727 571 Reserve bank float i 52, 395 24, 060 36,508 Total reserve bank credit outstanding... 1,400,031 1, 360, 243 1, 585, 000 Federal reserve notes of other reserve banks... 19, 036 16,378 16, 481 Other uncollected items not included in float.. 622,742 602, 724 562, 259 Bank premises.. _ 58, 614 58, 581 SO, 039 All other resources 7,121 7,947 7,974 Total resources.. 5,194,371 5,067,858 I 4,977, 382 Federal reserve notes: Held by other Federal reserve banks. 19,036 16, 378 16,481 Outside Federal reserve banks 1, 693,829 1,655,863 I 1, 628,023 Total notes in circulation. 1, 712, 865 1, 672, 241 1, 644, 504 Deposits: Member bank—reserve account.. 2, 355, 652 2, 288,192 2, 324,994 Government 35, 810 32,126 23, 647 Foreign bank 6,273 7,742 9,066 Other deposits 21,441 25, 198 19, 913 Total deposits 2,419,176 2, 353, 258 2, 377, 620 Deferred availability items.. 622, 742 602, 724 562, 259 Capital paid in 158, 603 157, 600 141,198 Surplus _ 254,398 254, 398 233, 319 All other liabilities 26, 587 27, 637 18, 482 Total liabilities 5,194,371 5, 067,858 4, 977, 382 Contingent liability on bills purchased for foreign correspondents.. 422,384 307, 714 i Uncollected items (exclusive of Federal reserve notes of other Federal reserve banks) in excess of deferred availability items. KINDS OF MONEY IN CIRCULATION, BY MONTHS [End of month figures. In thousands of dollars] Date Total G co o i l n d G ti o fi l c d a c te e s r- d S s o t i a a l l r v l n d a e d r r s - c S c e i a r l t t v i e f e s i r - n T o 1 u r t 8 e e r 9 y a s 0 s o - f S s u i i a b lv r s y e id r - 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 F re n b e s o a d e t n e r e k r v s a e l t n b i N o o a n t n a e - a k s l 1928—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, 535 374,980 977,077 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, 558 981,785 46, 241 391,047 1,300 280, 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 3,916 648, 656 Oct. 31.... 4,806,230 373, 202 959,652 46, 298 394,328 1,296 285,350 113,427 300, 659 1, 689,171 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 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 3,820 615, 761 1929—Jan. 31.... 4,656,617 380,952 923,193 44,456 381,672 1,292 280,751 114,007 282,172 1,631,432 3,775 612,915 Feb. 28... 4,698,362 377,512 935, 448 44,075 385,389 1, 291 280, 736 113,692 283, 603 1, 646, 523 3,747 626, 344 Mar. 31—. 4, 747,683 374, 255 937, 247 43,921 390, 583 1,290 280,655 113.536 283,100 1,673,480 3,709 645, 908 Apr. 30__. 4, 675,647 371, 623 905, 513 43, 727 386, 241 1,288 281, 229 114, 085 276, 227 1,648,392 3,680 643,639 May 31... 4,737, 636 369,997 944,058 43, 651 392,411 1,286 282, 936 114, 454 288, 216 1, 654, 757 3,650 642, 221 June 30 P.. 4, 746, 270 934,966 43, 668 387,069 1,283 283, 770 115,190 262,185 1, 692, 712 3,616 652,829 p Preliminary. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

514 FEDERAL RESERVE BULLETIN JULY, 1929 FEDERAL RESERVE BANKS—AVERAGE DAILY RESERVES AND DEMAND LIABILITIES IN JUNE AND MAY, 1929 [In thousands of dollars] Total cash reserves Total deposits Fede in r a c l i r r e c s u e l r a v ti e o n notes Reserve percentages Federal reserve bank June May June May June May June May Boston 182,048 172,675 145,982 143,464 141,464 138, 536 63.3 61.2 New York 980, 765 987,419 949, 587 932, 550 281, 017 284,480 79.7 81.1 Philadelphia.. 202, 043 196, 789 136,947 136, 669 146, 575 144,182 71.3 70.1 Cleveland 293,180 288, 704 188, 304 186, 995 205, 217 207, 346 74.5 73.2 Richmond 82,021 78, 285 69, 485 (8,303 66,105 67, 526 60.5 57.6 Atlanta 125,038 120, 359 65, 572 66,149 129, 479 132, 714 64.1 60.5 Chicago 518,195 542, 543 347, 621 346,855 309, 665 307, 225 78.8 82. & St. Louis 82,663 84,419 79, 576 80, 347 57, 564 58,060 60.3 61.0 Minneapolis- 89,408 88, 553 52, 664 51, 539 62, 455 63, 423 • 77.7 77.0 Kansas City.. 105, 563 93, 825 90,295 89,035 67,447 66, 384 66.9 60.4 Dallas 68,082 66,196 65,369 66,461 37,982 37, 561 65.9 63.6 San Francisco. 282,009 267, 717 183, 037 182, 560 162,041 156,067 81.7 79.1 Total... 3,011,015 2,987,484 2,374,439 2,350,927 1,667,011 1,663, 504 74.5 74.4 FEDERAL RESERVE BANKS—RESOURCES AND LIABILITIES, BY WEEKS RESOURCES [In thousands of dollars] Federal Reserve Bank Total Boston Y N o e r w k d P e h l i p l h a- ia C l l a e n v d e- m Ri o c n h d - AtlantaChicago 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 - Gold with Federal reserve agents: June 5 1, 303, 555 61,600 265. 927 113,082 151,768j 35,037 80,129 279,877 17, 383 58.122 36,859 20, 730 183,041 June 12 _ 1,318, 782 58, 877 265,861 111.136 151,223 34.953 84,341 279,818 21, 745! 59,440 38,297 20,290 192,801 June 19 1,367, 581 78,020 255,861 118, 865 157,499 39,048 97, 886 279,818 23,668; 56,933 43,957 24. 788 191,238 June 26 1, 372, 441 76, 471 255, 861 115,146; 154,445 37,132 100, 516 279,818 25,381 61,933 50,992 26,417 188, 329 Gold redemption fund with U. S. Treasury: June 5 67,988 6,294 14,250 10, 396J 5,252 3,903 4,316 6,134 6,258 2,049 4,024 1,714 3,398 June 12 _ _. 66,118 13,713 4, 919i 5,042 4,358 4,613 5,554 6, 623 2, 573 5,331 1,615 3,310 June 19 69,988 13', 805 13,207 6,4861 5,009 2,753 3,861 4,925 7,4391 2, 892 4,402 2,082 3,127 June 26 71, 589 4,907 17, 719 9, 736 5, 351 4,055 3,196 9,247 7, 463| 2, 714 2,163 1,933 3,105 Gold held exclusively against Federal reserve notes: June 5. 1, 371, 543 67, 894 280,177 123,478 157,020 38, 940 84,445 286,011 23, 641 60,171 22,444 186,439 June 12 1,384,900 67,344 279,574 116,055 156,265 39, 311 88,954 285,372 28,368 62,013 43, 628; 21,905 196, 111 June 19 1,437, 569 91, 825 269,068| 125,351 162, £08 41,801 101, 747 284, 743 31,107 59,825 48, 3591 26,870 194, 365 June 26 -. 1, 444, 030 81, 378 273,580 124,882 159, 796, 41,187 103, 712 289, 065 32,844 64, 647 53,155 28, 350 191, 434 Gold settlement fund with Federal Reserve Board: June 5 679, 733 79,844 201, 957 38, 462 63, 255! 15, 692 17,208 84,101 46,826 20,294 46,023 21, 52' 44, 544 June 12 691,678 83,352 156,051 57, 563 74,451 14, 471 18,043 103,014 40,132 18, 995 51,112 26, 728 47, 766 June 19 637, 598 66, 527 166,905| 49,731 72, 409 19,469 18,299 79,149 37,349 19,103 46,162 31,945 30, 550 June 26.. 644,038 71, 292 125,9l3j 39, 839 84, 829 21,487 19, 721 94, 827 28, 854 20,101 53, 975 30, 362 52, 838 Gold and gold certificates held by banks: June 5 792, 692 23, 916 494, 549 26,919 50, 393 17,483 6,350 113,801 9,626 5,739 5,362 11,041 27, 513 June 12 799,052 25,692 499,063, 28,078 49,003 16, 739 6,425 113,853 10, 004 5,900 5,504 11,162 27, 629 June 19 805,135 24, 793 509, 372 29,310 47, 284 16, 573 4, r " 112, 377 9,695 5,935 5,452 11,110 28, 244 June 26 807,446 24, 739 512,574 29,781 47, 470 16,378 5,091 110, 769 9,713 5,691 5,756 11,190 28,294 Total gold reserves: June 5 2,843,968 171, 654 976,683 188, 859 270, 668 72,115 108,003 483,913 80, 093 86,204 92, 268 55, 012 258,496 June 12 _ 2, 875, 630 176, 388 934, 688 201, 696 279, 719 70, 521 113,422 502,239 78, 504 86, 908 100, 244 59, 795 271, 506 June 19.. 2,880,302 183,145 945, 345 204, 392 282,201 77,843 125,036 476,269 78,151 84, 863 99, 973 69, 925 253,159 June 26 2, 895, 514 177, 409 912, 067 194, 502 292,095 79, 052 128, 524 494,661 71,411 90,439 112,886 69,902 272,566 Reserves other than gold: June 5. 141, 383 10,965 42,024 6,893 7,112 6,115 25,420 8,503 2,172 4,058 4,879 13,414 June 12 149, 559 10, 993 45, 307 7,107 10,419 8,013 6,544 26,464 9,142 2,193 4,758 6,111 12,508 June 19 _ 166,3"~ 10,914 55, 505 8,563 12,189 8,581 7,392 28,090 9,158 2,132 4,745 5,838 13,272 June 26_ 177,040 11, 500 63, 552 9,309 11, 674 8,524 8,759 28,476 9,402 2,229 4,635 5,947 13,033 Total reserves: June 5 2, 985, 351 182, 619 1, 018, 707195, 752 280,496 79, 227 114,118 509, 333 88, 376 96, 326 59,891 271, 910 June 12 3,025,189 187,381 979,995 208,803 290,138 78, 534 119,966 528, 703 87,646 89,101 105,002 65,906 284,014 June 19 3,046, 681 194, 059 1, 000,850212, 955 294, 390 86,424 132,428 504, 359 87, 309 86,995 104, 718 75, 763 266,431 June 26 __ 3, 072, 554 188,909 975, 619 203, 811 303, 769 87, 576 137, 283 523,137 80,813 92,668 117,521 75, 849 285, 599 Nonreserve cash: June 5 _. 79, 385; 5,375 34,800 1,892 4,240 5,138 6,124 8,030 4,219 1,385 1,927 2,792 3,463 June 12 83, 604! 7,176 36, 675 1,766 3,629 4,905 5,802 8,622 4,564 1,336 2,281 3,359 3,489 June 19 74, 841 30,091 1,648 4,744 5,025 5,344 8,122 3,862 1,039 1,700 2,896 3,476 June 26 69,108 7,177 24,288 1,582 3,549 4, "~ 5, 758| 8,066 4,138 1,201 2,087 3,049 3,546 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

515 JULY 1929 FEDERAL RESERVE BULLETIN 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 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 L S ou t. is M ap in o n hs e- K C an it s y as Dallas F ci r s a c n o - Bills discounted: Secured by U. S. Government obligations— June 5 508,912 56,474 119,363 51,328 56, 074 21, 233 16,883 95, 783 24,17 5,082 17,815 13, 748 30,953 June 12 474,086 | 53,321 135, 226 47, 618| 59,120 22, 818 14, 526 68, 864 20, 659 6,405 14, 694 9,180 21, 655 June 19 480, 292 i 49,101 152, 343 40,711 46,906 17, 505 12, 700 87, 759 21,158 7,909 13, 074 6,845 24, 281 June 26 532, 745 i 51, 785 210,141 54,021! 52,884 18, 276 7,359 73,090 23, 218 5,616 12, 202 6,! 17, 764 Other bills discounted— June 5 468,532 ! 42, 848 90, 580 35, 203 37,453 35, 972 60,171 44,16' 27, 256 37, 300 13, 874 33, 859 June 12 459, 825 | 43, 952 90, 475 29, 376! 39, 111 33, 566 55, 058 51, 274 25,i" 8,461 33, 319! 14, 691 34,853 June 19 478,812|j 50, 310 99,313 30, 798: 35, 633! 33, 522 45, 349 63, 862 25, 534 8,726 33,168 10, 846 41, 751 June 26 484,002! 56, 390 107, 44' 31, 082! 32, 592| 35, 043 45, 233 64,596 25, 720 7,769 27, 912 10, 931 39, 287 Total bills discounted: June 5 977,444 j 99,322 209,943 86,531: 93, 527! 57, 205 77,054 139,950 51,432 14, 931 55,115 27, 622 64, 812 June 12 933,911| 97, 273| 225, 701 76, 994; 98, 231 56, 384 69, 584! 120,138 46, 348 14, 866 48, 013| 23, 871 56, 508 June 19 959,104 99,411 251, 656 71, 509! 82, 539 51, 027 58,049| 151,621 46, 692 16, 635 46, 242 17, 691 66, 032 June 26 1,016, 7471 j108,175 317, 588 85,103; 85, 476 53, 319 52,592j 137,686 48, 938 13, 385 40,114 17, 320 57,051 Bills bought in open market: June 5 112,7471! 20,740 18,169 9, 632 9, 681 4,518 8,023,! 11,347 870 12, 514 June 12 114,117! I 15,547 28, 519 10, 348' 7,638 4,046 8,464i 11,091 684' 12, 237 June 19 87, 032 I 12,135 11, 964 9,617! 6,783 3,690 7, 967 8, 242 448: 13,456 June 26 82, 839 j 8,465 14,165j 9,156 6, 3, 398| 7,081 7,775 303 13, 450 U. S. Government securities: Bonds- June 5 48, 625 689 5, 817! 585 2,033 1,152 1,582 June 12 44, 630 689 2,832 585 1,400 1,152 936 June 19 42, 672! 689 2,043 585! 1,149 1,152 680 June 26 42, 738i 689 155 585' 548 1,152 65 Treasury notes- June 5 85, 295 1,794 13, 969 9,081 27,112 4,043 6, 500 June 12 97, 244 1,524 24,1421 8, 835 26, 816 4, 346J 9, 500 June 19 83, 014 1, 5: 10, 932 8, 835 26, 816 3, 327 9, 500 June 26 92, 021 1, 524 19, 437 8, 835 26,816 3, 827 9, 500 Certificates of indebtedness- June 5 13,408 ],350 3,805 June 12 27,999 1,349 18, 365 June 19 13, 772 1,405 2,561 June 26 14, 768 1,055 4,975 Total U. S. Government securities: June 5 147, 328 3,833 June 12 169,873 3,56: June 19 139,458 3,617 June 26 149, 527 3,268 Other securities: June 5 June 12 June 19 June 26. _ Total bills and securities: June 5 1, 247, 436 123, 253, 618 63, 532 88, 592 178,835! 58,802; 31,127 61,500 50, 621 91, 298 June 12 1, 227, 818 116,382 301,474 104,191 134, 540 62, 239 81, 320 157, 6591 58, 657 j 30, 49753, 796 45,296| 81,767 June 19 1,198, 761 115,163 284, 971 97, 985 117, 288 56, 526 69,256 186, 772 58, 765 31, 871 50, 387 37,923 91,854 June 26 1, 262,428 119,908 362,135 111,014 119, 740 58, 526 62, 757 170, 345 65, 866 28, 592 44, 058 36, 984 82, 503 Due from foreign banks: June 5 727 54 221 74 33 100 29 24 24 52 June 12 729 54 222 74 34 28 IOO! 29 24 24 52 J J u u n n e e 2 1 6 9 7 7 3 2 0 9 5 5 4 4 2 2 2 2 3 2 7 7 4 4 3 3 4 4 2 2 8 8 1 i 0 oo 0 2 2 9 9 2 2 4 4 2 2 4 4 5 5 2 2 Uncollected items: June 5 723, 705 70,053 201,637 58, 317 65,300 59,014 27, 246 87,149 32, 543 14,102 38,936 31,356 38, 052 June 12 746, 312 76, 528 199, 784 65, 739 71,300 53,496 21, 627 94, 570 33,57 15, 229 41,395 26, 682 46,386 June 19 812, 097 80,119 235,112 72, 7251 79, 744 56, 653 23, 723 100, 353 33,076 15,434 43,948 27,050 44,160 June 26-i__ 676, 603 67,443 196, 388 58, 917 65,858 46, 283 20,040 82, 614 13, 565 37,862 22, 706 36,129 Bank premises: June 5__ 58, 595 3,702 16,087 1, 762; 6, 535 3,395 2,744 8,529 2,110 4,140 1,922 3,718 June 12 58, 613 3,702 16,087 1, 762! 6, 535 3,395 2,744 8,529 2,110 4,140 1,922 3,718 June 19 58, 613 3,702 16,087 1, 762! 6, 535 3, 395 2,744 8,529 2,110 4,140 1,922 3,718 June 26 58, 614 3,702 16,08: 1, 762J 6, 535 3,395 2,744 8,529 2,110 4,140 1,922 3,719 All other resources: J J u u n n e e 5 12 8 8 , , 1 4 1 8 9 6 6 5 2 6 1 1 , , 2 3 9 2 8 7 2 2 9 2 6 s' | 1 1 , , 4 3 0 7 2 5 4 4 2 3 6 7 2 2 , , 0 0 6 7 3 4 5 5 6 6 1 0 2 2 1 2 6 2 4 41 2 3 9 5 57 6 0 5 June 19... 7,602 295 811! 195 1,081 2,024 581 192 412 386 June 26 7,441 95 931! 189 1,110 2,011 612 195 420 394 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

516 FEDERAL RESERVE BULLETIN JULY, 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 d P e h l i p la h - ia C l l a e n v d e- m Ri o c n h d - Atlanta Chicago L S ou t. is M ap in o n li e s - K C an it s y as Dallas F c S r is a a c n n o - Total resources: June 5 5,103, 318 385, 754 1, 526, 397 371, 276 490, 378 210, 765 240,926 792, 563 188,413 137, 678 203,075 147,035 409,058 June 12 5,150,751 391, 285 1, 535, 535 382, 627 507, 618 203,040 233, 550 798,934 188,858 138,852 206, 854 143,602 419,996 June 19 5,199, 325 400, 286 1, 568,145 387, 340 503,856 208, 755 235, 547 808,841 187,331 138,048 205,109 145,990 410,077 June 26 5,147,477 387, 288 1, 575, 670 377,345 500, 635 200,982 230, 621 793,411 183,976 138, 766 205,887 140,954 411,942 LIABILITIES Federal reserve notes in circulation: June 5 1, 647,435 140, 426 270, 285 140,858 202, 595 65, 741 132,085 309, 593 58,192 62,700 67,419 38,060 159,481 June 12 1, 644, 216 139, 528 269, 748 143,138 207,709 64, 948 128, 978305,488 57,033 61,924 67, 280 37, 716 160,726 June 19 1, 649,187 140, 771 281,102 143, 744198, 693 65, 221 127, 832306, 570 57,132 62,431 67, 242 37,880 160, 569 June 26..- 1, 658, 496 140,712 282, 202146, 474205, 571 64,993 125, 562308, 061 56,424 62,349 67, 255 37,850 161,043 Deposits: Member bank—reserve account— June 5 2,321,343 144,629 941,174 135,002 181, 297 67,887 64,345 339,830 75,970 50,271 86,807 62,865 171,266 June 12.._ 2, 328, 232 143, 374 940,091 136, 547185, 330 65,130 64,480 341,429 77, 230 51,072 87,047 63,840 172, 662 June 19 2, 291, 765 138,000 928,023 135, 797181,037 65, 336 63,060 338, 804 75, 223 50,038 84, 636 63,131 168, 680 June 26._ 2, 343, 813 143,173 962, 823 133, 447184, 965 64, 322 63, 641339, 957 76, 318 51, 838 61, 667172, 001 Government— June 5_ _. 16, 570 3,181 1,111 526 1,755 2,111 1,42; 1,044 566 1,053 1,793 June 12 18, 700 1,336 2,122 1,141 1,726 1,530 1,458 2,633 1,404 1,669 1,827 1,077 Til June 19 _... 46, 731 11,047 14, 292 630 5,349 1,175 2,693 10, 208 275 228 462 341 31 June 26 48,924 4,625 11, 054 1,979 2,486 6,823 4,577 6,475 1,566 1,258 1,572 3,683 2,826 Foreign bank— June 5 _ 6, 744 493 2,104 639 679 306 260 912 166 220 220 479 June 12 6,225 493 1,585 639 679 306- 260 912 266 166 220 220 479 June 19 7,1241 493 2,484! 639 679 306 260 912j 266 166 220 220] 479 June 26 5,606 493 639 679 306 260 166 220 220! 479 Other deposits- June 5 21,668 194 6, 846 32 1,084 73 l,302| 2,232 239 254 28! 9,301 June 12_._ 23,058 153 7,156 38 1,313 100 182 763 2,265 221 137 10, 702 June 19 _ 23,052 134 8.574 169 1,061 185 203 1,305 2,342 277 219 52| 8,531 June 26 21, 312 75 7,099 314 914 69 126 1, ?™ 1,987 221 120 33 i 9,054 Total deposits: June 5 _ 2,365,778 145,886 953,305 136, 784183, 948 68, 792 66,443 344,155 79,893 51, 720 87,847 64,166 182,839 June 12. __ 2, 376, 215 145,356 950,954 138, 365 189,048 67,066 66, 380 345, 737 81,165 53,128 89, 231 65,165 184,620 June 19 2,368,672 149, 674 953,373 137, 235 188,126 67,002 66, 216 351,229 78,106 50, 709 85, 537 63,744 177,721 June 26 2,419, 655 148, 366 981,942 136, 379189,044 71, 520 68, 604 348, 644 80,137 53,483 91, 573 65, 603 184,360 Deferred availability items: June 5 649, 782 67, 612 166, 731 52,363 59, 572 56,162 24, 296 78, 051 32, 787 12,049 33,151 30,884 36,124 June 12 688,296 74,479 178,062 59, 790 66,482 50,944 20,110 86, 5821 32, 968 12, 512 35,610 26, 780! 43,977 June 19__ 739,228 77, 910 197, 054 64, 716 72, 704 56, 431 23,375 89,797) 34,373 13,678 37, 722 30,450 41,018 June 26 625, 73" 66,150 174,465 52, 778 61, 597 44,339 18, 260 75, 312 29,402 11, 690 32, 458 23, 561 35, 725 Capital paid in: June 5 157, 507 10,375 57, 305 15,303 15,121 6,173 5,393 19, 558 5,228 3,06' 4,287 4,443! 11,254 June 12._. 157,931 10,385 57, 584 15,303 15,120 6,173 5,"'" 19, 738 5,193 3,067 4,276 4,445; 11,254 June 19 .-. 158,412 10,385 57, 691 15, 569 15,136 6,165 5,430 19, 735 5,191 3,067 4,284 4,448 11,311 June 26 158, 60" 10, 405 57,821 15, 575 15,144 6,175 5,432 19, 751 5,191 3,068 4,283 4,451 11,311 Surplus: June 5__ 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 June 12 _ 254, 398 19, 619 71, 282 24,101 26,345 12,399 10, 554 36,442 10,820 7, ' 9,086 8,690 17, 978 June 19 254,398 19,619 71,282 24,101 26,345 12, ' 10, 554 36,442 10,820 7,082 9,086 8,690 17,978 June 26 254, 398 19, 619 71, 282 24,101 26, 3451 12, 399 10, 554 36, 442 10, 820 7~~~ 17,978 All other liabilities: i June 5 28, 418 1,836 7,489 1, 2,797 1,498 2,15o| 4,764 1,493 1,060 1,285 792 1,382 June 12 _. 29,695 1,918 7,905 1,930 2,914 1, 510 2,135! 4,947 1,679 1,139 1,371 , 1,441 June 19 _ 29,428 1,927 7,643 1, 97, 2,852 1, 537 2,140! 5,068 1, 709 1,081 1,238 778 1,480 June 26 30, 584 2,036 7,958 2,03! 2,934 1, 556 2, 209J 5,201 2,002 1,094 1,232 799 1,525 Total liabilities: June 5 5,103,318 385, 754 1,526,397 371, 276490,378 210,765 240, 926792, 563 188,413 137,678 203,075 147,035 409,058 June 12 _._ 5,150, 751 391,285 1, 535, 535382,627 507,618 203,040 233, 550 188,858 138,852 206,854 143,602 419,996 June 19_ 5,199, 325 400, 2861, 568,145387,340 503,856 208,755 235, 547808,841 187,331 138,048 205,109 145,990! 410,077 June 26 __ 5,147, 477 387, 288 1, 575, 670377,345 500,635 200,982 230, 621793, 411 183,976 138, 766205, 887140,954 411,942 MEMORANDA Ratio of total reserves to Federal reserve note and deposit liabilities combined (per cent): June 5 74.4 63.8 83.3 70.5 72.6 58.9 57.5 77.9 64.2 77.2 62.0 58.6 79. 4 June 12._ _ _. 75.2 65. 80.3 74. 73.1 59.5 61.4 81.2 63.4 77.4 67.1 64.1 82.2 June 19 _ _... 75.8 66.8 81.1 75.8 76.1 65.4 68.2 76.7 64.6 76.9 68.5 74. 6 78. 8 June 26__ 75.3 65.3 77.2 72.1 77.0 64.2! 70.7 79.7 59.2 80.0 74.0 73. 3] 82. 7 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

JULT 1929 FEDERAL RESERVE BULLETIN 517 FEDERAL RESERVE BANKS—RESOURCES AND LIABILITIES, BY WEEKS—Continued LIABILITIES—Continued [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 ou t. i s M ap i o n l n is e - ! K C an it s y as Dallas F S r a a n n- MEMORANDA—continued Contingent liability on bills purchased for foreign correspondents: June 5_ _ 392, 415 29,019 119,084 37, 647 40,000 18,039 15,294 53, 725 15, 686 9, 804 12, 941 12, 941 28, 235 June 12. 405, 240 29, 971 122, 944 38,882 41,311 18, 631 15, 796 55,487 16,200 10,125 13,366 13,366 29,161 June 19_ 30, 724 127, 606 39, 859 42,350 19,099 16,193 56, 882 16,608 10,380 13,702 13, 702 29,894 June 26 424, 566 30, 724 135,173 39, 859 42, 350 19, 099 16,193 56, 882 16, 608 10,380! 13,702 13, 702 29, 894 Own Federal reserve notes held by Federal reserve banks: June 5 _ 437,107 23, 631 157, 256 41, 244 37, 436 18, 604 31,323 30, 649 8,036 9,504i 9,916 8, 624 60, 884 June 12 469,215 23, 706 183, 305 38, 818 33, 377 17,852 32,032 33, 908 8,677 8,598! 12,344 9, 719 66, 879 June 19 _.. 494,377 25, 506 42,121 45, 868 17,335 33, 383 33, 452 11,101 9,144 11,642 9,053 i 67,073 June 26 _ 532, 801 24, 016 221, 907 41,192! 31, 737 15, 646 33, 963 41, 656 15, 022 9, 226| 14, 824 10,602 73,010 FEDERAL RESERVE NOTES—FEDERAL RESERVE AGENTS' ACCOUNTS, BY WEEKS [In thousands of dollars] Federal Reserve Bank Total Boston Y N o e r w k d P e h l i p l h a- ia C l l a e n v d e- m R o ic n h d - la A n t t - a c C a h g i- o L S ou t. is M ap in ol n i e s - K C an it s y as Dallas F c S i r s a a c n n o - Federal reserve notes received from comptroller: June 5..- 3,487, 024| 288,047 841,886 208,162 352,101 192, 296 277, 448 483, 522 98, 798 154,848 141, 995 74, 416 373, 505 June 12_ 3, 595, 8131 285,324! 881, 238| 212,016 352, 356 192, 011 284,410 529,9761 104,060 154,166 141, 334 73, 977 384, 945 June 19 _. 3,670,046: 281,467 884,626 219,425 350, 631 191,107 289, 415 567.402J 111,223 153, 659 150, 514 75, 475 395,102 June 26 3, 777, 049 j 279,918 922,014 227,506 340, 078 194, 590 293, 065 618,957 118,496 154, 659 151,149 75,104 401, 513 Federal reserve notes held by Federal reserve agent: June 5. 1,402, 482, 123,990 414,345 26,060 112, 070 107, 951 114, 040143, 280 32, 570 82,644 64, 660 27, 732 153,140 June 12. _ 1, 482, 3821 122,090! 428,185 30,060 111,270 109, 211 123, 400190, 580 38, 350 83, 644 61, 710 26, 542 157,340 June 19 1, 526, 4821 115,190! 414,825 33, 560 106,070 108, 551 128, 200227, 380 42, """ 82, 084 71.630 28, 542 167, 460 June 26 1, 585, 752, 115,190 417, 905 39, 840 102, 770113,951 133,540 269, 240 47, 050| 83, 084 69, 070 26, 652 167, 460 Federal reserve notes issued to Federal reserve bank: June 5 2, 084, 542 164, 057! 427,541! 182,102240, 031 84, 345 163, 408 340, 242 66, 228 72, 204 77,335: 46,684 220,365 June 12.__ 2,113, 431 163,2341 453,053; 181,956 241, 086 82, 800 161,010 339, 396 65, 710 70, 522 79,624; 47,435| 227,605 June 19 2, 143, 564 166,277! 469,801! 185,865 244, 561 82, 556 161,215 340, 022 68, 233 71, 575 78, 8841 46,933! 227,642 June 26 2,191,297 164, 728! 504,109, 187, 66(5237, 308 80, 639 159, 525 349, 717 i 71, 446 71, 575 82, 079; 48, 452i 234, 053 Collateral held as security for Federal reserve not^s issued to Federal reserve bank: Gold and gold certificates- June 5_. _ 372, 895 35,300 171, 880; 30,000 43, 800 6,690 13, 250 8,050! 14,167 14, 758 35,000 June 12. ____ 371,145 35, 300! 171.8801 30, 0001 43,800 7,690 10. 500| 8.050J 14,16" 14,758 35,000 June 19 372, 045 35,300 171,880! 30, 000 43, 800 7,690 11,400! 8,050! 14,16: 14,758 35,000 June 26.._ 368, 025 35,300 171,8801 30, 000 41, 800 7,690 9, 380! 8, 050; 14,167| 14, 758 35, 000 Gold redemption fund- J J u u n n e e 5 12. _ ... 10 9 1 0 , , 7 7 7 5 6 3 1 1 3 0 , , 3 5 0 7 0 7 ! 1 1 3 4 , , 0 9 4 8 7 11 1 1 2 0 , , 1 2 8 3 5 9 1 1 2 2 , , 9 4 6 2 8 3 ! ! 6 5 , , 3 2 4 6 7 3 9 6, ? 8 8 4 7 1 9 1 i 2 2 , , 8 8 1 7 8 7 ! | 1,3 6 3 9 3 51 2 2 , . 9 2 5 7 5 3 ! 3 3 , , 4 9 9 3 9 7 3 3 , , 9 5 7 3 2 2 ; 1 1 8, 8 , 4 1 1 7 4 4 June 19 96, 802 14,720 13, 981 j 13, 248| 13, 699| 4,358 5,986 2,818! 1,618 1,766 3,597 3,030 17, 981 June 26 _. 93, 393 13,171 13,981! 9, 529 12, 645! 7,442 4, 6361 2, 81S 1,331 1, 766 3,632 4, 659 17, 783 Gold fund, Federal Reserve Board- June 5 828, 884 13,0001 80,000! 70,897 95,000 22,000 57,000 277,000! 8,000 41,000 33, 360 2,000 129,627 June 12 856, 884 13,000! 80,000 70,897 95, 000! 22, 000 67,000 277,000 13, 000 43,000 34,360 2,000 139,627 June 19 . 898, 734 28,000 70,000 75,617 100,000 27, 000 80,500! 277,000' 14,000 41,000 40. 360 138,257 June 26... _. 911, 023 28, 000 70, 000 75, 617100, 000 22, 000 86,500! 277,000! 16, 000 46, 000 47, 360| 7,000 135, 546 Eligible paper— j j June 5 1,050. 631 119,984; 211,001 83 134 102, 269 55, 306 84 852 151, 029; 51, 951 17, 73S 59, 731 37,008 76, 628 June 12__ 1,010, 892 112,742: 236,445 75, 879 105, 617 54. 976 77,868 130,965| 46, 665J 17- 480 52, 094 32,387 67 768 June 19 1,015,461 111,4681 249,447 69,115 89,142 52 398 65, 889| 159,6121 46,6711 19,111 48, 772 25,137 78, 699 June 26 1, 063, 446 116,562 319,340 78,157 91, 740 52, 080 59,569 145,214! 48,930 15.683 42, 461 24, 587 69,123 Total collateral: June 5 2,354,186 181,584 476, 928 196,216 254,037 90, 343 164. 9811 430,906! 69,334! 75,860 96, 590J 57, 738259, 669 June 12.._ 2,329, 674 171,619 502, 306 187,015 256,840 89, 929 162,209! 410, 783 68, 410! 76.926 90,391 52, 677260,569 June 19 , 2,383,042 189,488 505,308 187,980 i 246,641 91,446 163,775 439,430! 70,339 76,044 92, 729 49, 925269, 937 June 26 _ 2, 435, 887 193, 033575, 201 193,303 246,185 89, 212160,085 425,032! 74, 311 77, 616 93, 453 51,0041 257,452 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

518 FEDERAL RESERVE BULLETIN JULY, 1629 MATURITY DISTRIBUTION OF BILLS, CERTIFICATES OF INDEBTEDNESS, AND MUNICIPAL WARRANTS [In thousands of dollars] Total Within 15 16 to 30 31 to 60 61 to 90 91 days to Over 6 days days days days 6 months months Bills discounted: June 5 _ . . 977,444 756, 686 50, 478 84, 847 53,173 30, 881 1,379 June 12 933, 911 713, 597 51, 665 84, 307 51, 090 32,188 1,064 June 19 959,104 730, 889 62, 339 81, 544 47, 910 35, 666 756 June 26 - 1, 016, 747 799, 237 49, 840 78, 909 52, 665 35, 533 563 Bills bought in open market: June 5 _- 112,747 56, 415 27, 290 17, 909 9,027 2,106 June 12 114,117 62, 241 23, 974 16, 653 8 640 2.609 June 19 87, 032 36, 927 22, 594 17, 445 7,497 2,569 June 26 . _ _ . _ 82, 839 40, 728 18, 005 15, 654 6,527 1,925 Certificates of indebtedness: June 5 -. . 13,408 4,194 9 7, 373 1,832 June 12 27, 999 18, 835 12 7,545 1,607 June 19 13, 772 2.250 7,066 1,708 2.748 June 26 ... 14, 768 4,975 7,319 2.374 100 Municipal warrants: June 5 . _ _ 402 102 300 June 12 402 102 ! 300 June 19 402 102 300 June 26 300 300 GOLD SETTLEMENT FUND—INTERBANK TRANSACTIONS FROM MAY 23 TO JUNE 19, 1929, INCLUSIVE [In thousands of dollars] Tran m sf e e n rs t a fo cc r o G u o n v t ern- Transit clearing Federa c l l e r a e r s i e n r g ve note Ch o a f n g g o e ld s t i h n r o o u w gh n e t r r s a h n i s p - Balance in fers and clearings fund at Federal reserve bank close of period Debits Credits Debits Credits Debits Credits Decrease Increase Boston 3,500 14, 000 811,428 829, 931 3,631 3,011 28,383 66,528 New York _. 51, 300 83,500 3, 205, 773 3,134, 905 7,421 11,642 34, 447 166, 905 Philadelphia 8,000 844,456 860,504 5,494 4,223 49, 731 Cleveland 6,000 5,000 795,493 808,323 7,546 3,877 8,161 72, 410 Richmond 12,500 788,305 813,759 2,675 3,280 13, 559 19, 468 Atlanta 4,000 305, 207 321,879 3,302 2,940 12,310 18, 299 C hicago 38,500 6,000 1, 413,402 1, 401, 214 8,336 7,330 45,694 79,149 St. Louis 1,500 16, 700 553,352 542, 308 2,175 4,166 6,147 37, 349 Minneapolis 1,500 3,900 178,460 172, 772 1,402 1,778 19,104 Kansas City 1,500 6,700 412, 643 414,149 2,110 2,114 6,710 46,162 Dallas 3,000 9,000 308,021 310, 816 1,212 1,492 9,075 31, 944 San Francisco 15, 500 2,000 413,171 419,151 2,763 2,214 8,069 30, 550 Total, 4 weeks ending— June 19, 1929 _. 146,800 146, 800 10, 029, 711 10, 029, 711 48,067 48,067 91,122 91,122 637,599 May 22, 1929 41, 800 41,800 10,093, 900 10, 083, 900 51, 303 51, 303 652, 405 June 20, 1928 153, 300 153, 300 9, 871, 855 9,871,855 46, 664 46, 664 694, 772 May 23, 1928 26,200 26,200 10,145, 793 10,145, 793 40, 735 40, 735 814,594 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

JULY. 1929 FEDEEAJL RESERVE BULLETIN 519 WEEKLY REPORTING MEMBER BANKS IN LEADING CITIES PRINCIPAL RESOURCES AND LIABILITIES, BY WEEKS [In millions of dollars] Federal Reserve District Total i Boston Y N o e r w k d P e h lp il h a i - a C la le n v d e- m Ri o c n h d - la A n t t - a c C a h g i- o L S ou t. is M ap i o n l n is e K C a i n t s y as Dallas F S r a a n ncisco Loans and investments: June 5 22,115 1,481 8,470 1,208 2,171 667 647 3,304 683 374 685 472 1,953 June 12 . . 22,104 1,484 8,451 1,207 2,168 666 644 3,317 686 375 688 469 1,948 June 19 ._ 22,298 1,492 8,528 1,220 2,179 672 647 3,341 690 377 693 474 1,985 June 26 22,407 1,511 8,660 1,221 2,187 680 652 3,303 691 375 689 471 1,966 Loans: June 5 16,337 1,100 6,334 892 1,514 508 515 2,605 504 251 450 338 1,325 June 12 16, 364 1,116 6,325 893 1,512 508 513 2,615 513 253 453 339 1,324 June 19 16, 543 1,132 6,406 905 1,516 511 511 2,637 518 253 459 342 1,353 June 26 _ 16,678 1,151 6,548 906 1,530 521 512 2,602 518 250 457 342 1,341 On securities- June 5 7,197 455 3,094 460 689 185 147 1,222 224 91 120 98 409 June 12 7,209 468 3,087 458 686 187 147 1,224 229 89 121 99 413 June 19. _ 7,382 485 3,179 471 696 191 148 1,238 232 87 123 101 431 June 26 _ 7,537 488 3,336 467 712 202 151 1,225 232 84 121 99 420 All other- June 5_. 9,140 646 3,240 432 825 323 368 1,382 279 160 330 240 915 June 12 9,155 648 3,238 434 826 321 367 1,391 283 164 332 240 912 June 19 9,161 648 3,228 434 820 321 363 1,399 286 165 335 241 922 June 26. 9,141 662 3,212 439 818 319 361 1,377 286 167 336 242 921 Investments- June 5 5,779 381 2,136 316 657 159 132 699 180 123 235 134 628 June 12 5,740 368 2,126 315 656 158 131 702 173 123 235 130 623 June 19 __ 5,755 359 2,122 315 663 160 136 704 172 125 234 132 632 June 26 5,729 361 2,112 315 657 159 141 702 173 124 232 130 624 U. S. Government securities- June 5 2,916 185 1 153 104 315 74 61 324 63 69 108 94 368 June 12 2,906 179 1,159 104 315 74 61 324 60 69 108 89 364 June 19. - 2,935 178 ], 166 103 319 77 66 325 60 71 108 91 372 June 26 2,895 173 1,156 102 313 75 64 321 59 71 107 89 364 All other- June S.- 2,862 196 983 212 342 84 71 375 117 53 127 40 261 June 12 2,835 188 967 211 341 84 70 378 114 54 127 41 259 June 19 2,820 182 956 212 344 84 71 380 112 54 126 42 259 June 26. _ 2,834 188 956 213 343 84 76 380 114 54 126 41 260 Reserve with Federal reserve bank: June 5 1,679 98 793 77 124 41 39 247 43 24 54 32 107 June 12 1,682 96 789 78 127 40 40 247 45 24 55 33 108 June 19 1,657 92 783 77 123 40 39 245 42 24 52 32 107 June 26 1,670 95 773 75 133 39 40 247 44 25 56 31 108 Cash in vault: June 5 238 17 71 15 28 11 9 38 7 6 11 7 18 June 12-_ - 236 16 69 14 28 11 9 38 6 6 11 8 19 June 19 227 16 65 14 28 11 9 36 6 6 11 8 18 June 26 232 16 67 14 27 11 9 37 6 6 11 8 19 Net demand deposits: June 5 12,939 874 5,803 715 1,011 346 316 1,795 362 212 478 283 743 June 12 13 108 885 5,818 734 1,022 349 322 1,838 374 216 491 288 771 June 19 12,940 871 5, 752 715 1,004 343 316 1,806 366 214 490 283 781 June 26 . . 13,018 875 5,832 707 1,018 347 316 1,811 369 216 494 277 757 Time deposits: June 5 6,761 459 1,683 266 953 239 240 1,234 231 135 180 142 999 June 12 6,709 ' 459 1,655 261 951 239 239 1,231 228 134 179 142 991 June 19-._ 6,724 460 1,679 261 952 239 239 1,225 227 134 180 143 984 June 26 6,763 464 1,698 259 957 239 246 1,222 228 133 180 143 993 Government deposits: June 5__ 58 : 3 25 3 5 1 3 7 1i 1 i 4 6 J J J u u u n n n e e e 2 1 1 6 2 9 - 2 2 6 6 4 0 0 6 ; j 1 1 3 3 2 2 777 0 7 2 23 2 3 2 2 6 4 7 1 1 0 0 1 1 7 7 2 2 7 7 7 7 3 2 5 5 1 1 6 6 3 3 6 6 Due from banks: June 5 1,055 47 140 59 86 49 75 195 54 50 106 54 139 June 12 - 1,086 45 142 60 101 47 71 213 53 50 107 53 144 June 19 1,099 48 160 61 91 45 71 203 52 49 109 50 161 June 26 - - 1,085 45 163 57 93 45 66 204 46 49 112 54 151 Due to banks: June 5 2,551 110 868 152 188 93 99 426 111 71 179 80 174 June 12 - - - - 2,493 i 106 806 157 190 89 94 432 106 71 179 75 189 June 19 2,533 ! 109 858 154 187 91 89 436 106 69 181 74 180 June 26 2,554 107 872 152 189 90 93 437 102 68 189 72 183 Borrowings from Federal reserve bank: Tune 5 663 71 149 37 70 28 49 107 30 10 43 18 51 June 12 628 '• 69 170 30 74 25 42 90 26 10 35 14 43 June 19 674 73 197 25 60 23 35 123 28 11 34 8 57 June 26 715 77 259 40 61 26 29 108 30 8 28 7 42 57856—2S Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

520 FEDERAL RESERVE BULLETIN JULY, 1929 LAND BANKS AND INTERMEDIATE CREDIT BANK SUSPENSIONS * IN MAY, 1929 BANKS [Amounts in thousands of dollars] LOANS OF FEDERAL AND JOINT-STOCK LAND BANKS All banks Member Nonmember banks banks [In thousands of dollars] Federal reserve district Num-Total de-Num-Total de-Num-Total de- Net amount of loans outstanding ber posits 2 ber posits 2 ber posits 2 Date Boston _ Total ( a 1 n F 2 d e b d b a e a n ra n k l k s) s l J a o n i d n t b - a s n to k c s k * N P C h l e e i w l v a e d Y la e o n lp r d k hia 2 190 2 190 Richmond 7 1,684 1 864 6 820 J J M A u u u l n a y g y e . 3 3 3 3 1 1 0 1 . 1927 1 1 1 1, , , , 7 7 7 7 4 4 4 1 3 2 9 8 , , , , 2 3 1 5 7 9 6 7 5 3 5 5 1 1 1 1 , , , , 1 1 1 1 3 3 3 2 9 0 4 4 , , , , 8 0 6 5 9 5 4 0 6 5 8 2 6 6 6 6 0 0 0 1 9 7 7 7 , , , , 2 6 8 5 2 7 9 1 0 9 1 7 A M S K C t h a t . i l i n n c a L n s a n o a e g t s u a o a i p C s . o . i l t i y s , . 3 7 9 9 6 2 4 21 6 2 1 , , , , 1 1 4 6 5 3 5 9 4 2 2 8 3 1 2 3 3 2 1 , ,0 9 7 7 2 6 3 7 6 6 6 2 4 21 3 1 1 , , , , 5 1 0 6 5 3 8 1 4 2 2 6 7 2 1 S O e c p t. t . 3 3 1 0 1 1 , , 7 75 5 2 7 , , 1 6 8 6 5 5 1 1 , , 1 1 4 4 7 3 , , 1 1 3 3 5 0 6 6 0 1 9 0 , , 0 5 5 3 0 5 S "D a n n l ln F c rancisco 1 399 1 399 N De o c v . . 3 3 1 0 1 1, , 7 7 6 5 5 8 , , 1 8 2 3 1 4 1 1 , , 1 1 5 5 5 0 , , 6 9 4 4 4 3 6 6 0 0 7 9 , , 8 47 9 7 1 Total * 110 34,219 4,912 103 29,307 1928 1 Banks closed to the public on account of financial difficulties by order Jan. 31 1, 767, 515 1,158, 717 608, 798 of supervisory authorities or directors of the bank. Feb. 29 1, 778,338 1,168, 354 609,984 2 Subject to revision; figures given are for latest available date prior Mar. 31 1, 786,862 1,175,858 611, 004 to suspension. Apr. 30 1, 791, 341 1,180,420 610, 921 3 Includes 69 Nebraska banks turned over to State banking depart- May 31 1,793,035 1,183, 672 609, 363 ment by Guaranty Fund Commission, on May 2, date on which com- June 30 1, 794, 236 1,184, 656 609, 580 mission was abolished. July 31 1, 793, 610 1,185, 714 607,896 * Includes 1 private bank for which deposit figures are not available. Aug. 31 1, 796, 591 1,187, 365 609, 226 'Six national banks (deposits, $4,289,000; 1 State bank, deposits of Sept. 30 1, 797, 796 1,189,345 608, 451 $623,000). Oct. 31 1, 797, 910 1,190, 278 607, 632 BANK DEBITS Nov. 30 1, 797, 319 1,191, 724 605, 595 Dec. 31 1, 799,045 1,193, 846 605,199 [Debits to individual accounts. In thousands of dollars] 1929 Num-i Jan. 31 1, 799,464 1,195, 089 604, 375 ber of Feb. 28 1,803, 593 1,199, 766 603, 827 cen- : May, 1929 April, 1929 May, 1928 Mar. 30 1, 803, 691 1, 202, 570 601,121 ters I Apr. 30 1,803,115 1, 203, 724 599, 391 May 31 1,802,160 1, 204,128 598,032 New York City 1 50, 043,161 47, 979,140 45, 269, 912 1 Number of banks, 1927: January-March, 55; April-May, 54; June- Outside New York City.— 140 26, 519, 527 26,802, 629 26, 345, 816 August, 53; September-November, 52; December, 51. 1928: January- April, 51; May-November, 50; December, 49. 1929: January to date, 49. Federal reserve district: Boston 2, 962, 242 2, 936, 281 3, 007, 290 New York 51,108, 813 49, 021, 257 46, 301, 904 LOANS OF INTERMEDIATE CREDIT BANKS Philadelphia 2, 707, 734 2, 899, 341 2, 656, 842 Cleveland 2,861,458 3, 111, 297 2, 705, 272 Richmond 753, 286 792,186 754, 380 [In thousands of dollars] Atlanta 1,171, 505 1, 227, 058 1,132, 339 Chicago 7,062, 985 6,931,724 6,874,173 St. Louis 1, 274, 999 1, 299, 220 1, 333, 525 1929 1928 Minneapolis 765,019 738, 462 759, 555 Class of loan K Da a l n l s a a s s City 1, 7 3 3 8 1 8 , , 0 4 9 2 9 5 1, 7 4 4 2 0 7 , , 7 9 4 7 8 6 1, 6 2 4 6 4 9 , ,1 5 8 1 0 8 May 31 Apr. 30 Mar. 30 Feb.'28 May 31 San Francisco 3, 775,118 3, 656,219 4,176, 750 Total - 141 76, 562,688 74, 781, 769 71, 615, 728 Direct loans outstanding on- Cotton... 6,068 15, 503 20,886 22, 668 6,105 MEMBERSHIP IN PAR COLLECTION SYSTEM Tobacco 421 815 873 1,145 2,557 [Number of banks at end of May] Wheat - 516 1,289 1,721 1,873 605 Ca ta n b n l e e d s fruits a _ n d vege- - 655 869 1,260 1,557 428 Member banks Nonmember banks l Raisins 4,115 4,162 4,162 4,653 5,671 Federal reserve Wool „ 229 13 152 258 districts On par list Not on par list Rice 457 582 880 1,091 1,002 1929 1928 All other 289 279 243 263 79 1929 1928 1929 1928 Total 12, 750 23,499 30,038 33, 402 16, 705 United States 8,731 8,935 12, 346 12, 925 3,829 3,916 Re fo d r N i A S L — s t i c a g p a v o t r o t e i i e u o r s c a n t n u b o t t l a i s a c t o l u n k n b r k s a a o s l n u l k o t c s s a r — n e ta d i n t c d o c i o m n r g - - 30,1 9 5 4 8 5 7 7 28, ° 0 7 6 6 3 9 5 2 25, 4 6 0 0 4 6 6 5 20,4 3 7 4 4 9 2 4 31, 3 4 8 0 8 5 5 B N P C A R h o l i e t e c l i s w a l v h t a o n e m d Y n l ta a e o o n l n r p d k d h ia- . _ .. . 4 9 8 7 5 4 0 3 1 7 3 4 7 9 7 0 8 1 4 8 9 7 4 5 1 2 3 8 5 5 2 0 5 5 6 8 1,0 2 4 4 6 2 0 0 5 8 9 0 3 4 3 5 4 3 1,0 4 4 2 6 3 2 0 9 4 3 0 6 7 7 8 6 6 5 9 5 5 1 5 1 0 1,0 5 1 8 1 0 0 0 Sa p v a i n n i g e s s banks and trust 25, 305 25,160 24, 529 24,182 22,145 S C t h . ic L a o g u o is 1,2 5 3 8 2 4 1,2 5 6 9 3 3 3 1 , ,7 5 0 2 0 5 3 1 , ,8 6 2 4 4 4 2 48 2 4 2 4 1 6 9 1 8 companies 83 «84 83 84 11 M Ka in n n sa e s a p C o i l t i y s 9 7 1 0 5 6 9 7 4 2 7 9 2,1 6 8 2 4 0 2,2 7 8 1 1 6 1,1 1 3 9 3 8 1,1 2 2 7 7 2 Total. 56, 577 54,110 50, 669 45,131 53, 954 D Sa a n l la F s rancisco. .- 7 6 6 16 6 7 6 9 45 2 6 6 1 61 4 6 6 4 93 7 21 6 5 1 20 5 0 8 « Corrected. i Incorporated banks other than mutual savings banks. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

521 JULY, 1929 FEDERAL RESERVE BULLETIN CONDITION OF ALL BANKS IN THE UNITED STATES TABLE 1.—ALL BANKS IN THE UNITED STATES i—PRINCIPAL RESOURCES AND LIABILITIES, ON CALL DATES, BY FEDERAL RESERVE DISTRICTS [In millions of dollars. Figures for nonmember banks are for the dates indicated or nearest dates thereto for which figures are available] Total loa m ns e n a t n s d invest- Loans J Investments D in e t p e o r s b i a ts n , k e x d c e l p u o s s iv it e s o 3 f Re b d il i l s s c o p u a n y t a s b l a e nd Federal reserve district and call date ba A n l k l s M b e e m r - m N b e o e m n r - - ba A n ll ks M b e e m r - m N b e o e m n r - - ba A n ll ks M b e e m r - m N b s o e m n r - - ba A n l k l s M b e e m r - m N b e o e m n r - - ba A n ll ks V b l e em r - m N b e o e m n r - - All districts: 1927—June 30.. 53,750 32,756 20,994 37,630 22,938 14,421 16,391 9,818 6,573 51,662 31,269 20, 393 816 541 275 Dec. 31.. 55,450 34,247 21, 204 38,407 23,886 14,521 17,043 10,361 6,683 52, 909 32, 063 20, 846 894 663 230 1928—June 30— 57.265 35, 061 22, 204 39, 464 24, 303 15,161 17, 801 10, 758 7,043 53, 398 32,133 21,265 1,570 1,209 361 Dec. 31.. 58.266 35, 684 22,582 40, 763 25,155 15,607 17,504 10, 529 6,975 56, 766 34, 826 21, 940 1,512 1,162 350 1929—Mar. 27.. 58, 019 35, 393 22, 626 40, 557 24,945 15, 612 17,462 10,448 7,013 54, 545 33, 215 21, 330 1,507 1,153 354 Boston: 1927—June 30. _ 6,199 2,536 3,663 3,930 1,744 2,186 2,269 792 1,477 5,811 2,359 3,452 70 60 10 Dec. 31 — 6,367 2,583 3,784 4,021 1, 765 2,256 2,345 817 1,528 6,009 2,444 3,565 40 32 8 1928—June 30. . 6,644 2,642 4,002 4,226 1,849 2,377 2,418 793 1,626 6,106 2.351 3,755 108 92 16 Dec. 31-- 6,649 2,571 4,078 4,271 1,824 2,446 2,378 747 1,632 6,225 2,397 3,828 93 76 17 1929—Mar. 27.. 6,692 2,600 4,092 4,279 1,823 2,456 2,413 777 1, 636 6,134 2,323 3,811 103 80 24 New York: 1927—June 30— 16, 693 10,126 6,567 11,388 7,026 4,362 5,305 3,100 2,205 16, 264 10,002 6,262 136 113 23 Dec. 31.. 17, 502 10,947 6,555 12,166 7,789 4,377 5,336 3,158 2,178 16,312 10, 021 6,291 328 314 14 1928—June 30. . 18, 202 11,098 7,104 12, 605 7, 759 4,846 5,598 3,340 2,258 16,614 9,982 6,632 523 481 42 Dec. 31.. 18, 776 11,593 7,183 13, 435 8,404 5,031 5, 341 3,189 2,152 18, 915 12,140 6, 776 542 499 43 1929—Mar. 27- 18, 349 11,317 7,031 13, 028 8,139 4,888 5,321 3,178 2,143 17,673 11, 329 6,344 386 343 43 Philadelphia: 1927—June 30.. 4,115 2,531 1, 584 |2,504 1,604 900 1,611 927 684 3, 646 2,187 1,459 93 66 27 Dec. 31- 4,241 2,588 1,653 2, 592 1,616 976 1,650 972 678 3,787 2, 243 1.543 101 73 29 1928—June 30. . 4. 365 2,656 1,709 2,636 1,690 916 1,729 966 763 3,764 2.232 1,532 160 113 47 Dec. 31 — i 395 2,666 1, 730 2,747 1, 745 1,002 1, 649 921 728 3,874 2,287 1,587 153 99 54 1929—Mar. 27- 4,422 2, 714 1,708 2,818 1,813 1,005 1,604 900 703 3,770 2,250 1, 520 181 126 55 Cleveland: 1927—June 30 __ 4,635 3.267 1,368 3,098 2,179 919 1,538 1,089 449 4,332 3,035 1,297 69 49 20 Dec. 31.. 4, 689 3,296 1,393 3, 100 2,162 939 1,588 1,135 454 4,355 3,029 1,326 93 68 24 192S—June 30.. 4,898 3,448 1,450 3,237 2,266 972 1,660 1,182 479 4,498 3,139 1,359 141 111 29 Dec. 31- 4,854 3, 414 1,440 3,279 2,291 988 1, 575 1,123 452 4,526 3.165 1,361 139 105 34 1929—Mar. 27. 4,948 3,478 1,471 3,359 2,352 1,007 1,589 1,125 464 4,525 3,167 1,358 139 102 37 Richmond: 1927—June 30.. 2,423 1,311 1,112 1,841 1,014 827 582 297 285 2,244 1,193 1,051 67 35 32 Dec. 31- 2,517 1,362 1,155 1,871 1,028 843 646 334 312 2,378 1,242 1,136 47 31 16 1928—June 30.. 2,531 1,344 1,187 1,881 1,021 861 650 324 326 2,284 1,188 1,096 107 69 38 Dec. 31- 2,522 1,338 1,183 1,879 1,022 857 643 317 326 2,351 1,214 1,137 74 49 25 1929—Mar. 27.. 2,537 1, 351 1,186 1,883 1,024 860 653 327 326 2,302 1,196 1,106 86 55 31 Atlanta: 1927—June 30.. 1,726 1,141 585 1,373 885 488 353 256 97 1,674 1,066 608 69 42 27 Dec. 31.. 1,754 1,165 589 1,369 888 481 384 276 108 1,736 1,104 632 56 34 22 1928—June 30.. 1, 753 1,173 579 1,378 910 468 375 263 112 1,640 1,072 568 94 54 39 Dec. 31-. 1,749 1,188 560 1,346 895 451 402 293 109 1,673 1,093 580 74 52 21 1929—Mar. 27. 1,763 1,191 572 1,370 907 463 393 284 109 1,629 1, 065 564 87 61 26 Chicago: 1927—June 30. 7,407 4,712 2,695 5, 575 3,461 2,114 1.832 1,251 581 7,171 4,466 2,705 131 68 63 Dec. 31. 7, 495 4,859 2.636 5, 583 3,519 2,064 1, 911 1,339 572 7,327 4,649 2,679 123 68 55 1928—June 30. 7,826 5.118 2, 709 5,810 3.698 2.113 2,016 1,420 596 7,517 4,806 2,712 225 165 60 Dec. 31. 7,904 5,163 2,741 5 933 3,812 2,121 1, 971 1,350 620 7, 667 4,914 2,752 234 164 71 1929—Mar. 27. 7,963 5,072 2,891 5,999 3,777 2, 222 1,964 1,295 668 7,435 4,612 2,823 272 201 71 St. Louis: 1927—June 30. 2,096 1,337 759 1,537 930 607 558 406 152 1.976 1,187 789 63 38 25 Dec. 31. 2,128 1,377 752 1,546 953 592 583 423 159 2,053 1,250 803 47 21 26 1928—June 30. 2,141 1,384 756 1,535 942 593 605 442 163 2,002 1,215 787 110 65 45 Dec. 31. 2,163 1,406 757 1,546 954 592 617 452 166 2,045 1,256 788 82 39 43 1929—Mar. 27.. 2, 162 1,377 784 1,561 945 616 601 433 168 1,972 1,184 788 92 58 34 Minneapolis: 1927—June 30.. 1,485 851 634 956 531 425 528 320 209 1,507 842 665 18 5 13 Dec. 31- 1,527 897 630 955 547 408 571 350 222 1,560 886 674 12 3 9 1928—June 30.. 1,549 909 640 947 544 403 601 365 237 1,567 895 673 19 8 11 Dec. 31.. 1,555 933 622 951 560 391 605 373 232 1,596 929 666 13 5 8 1929—Mar. 27.. 1,563 938 625 953 564 389 610 374 236 1,554 894 660 22 15 6 Kansas City: 1927—June 30.. 1,832 1,154 678 1,355 776 579 476 377 99 1,916 1,158 758 27 12 15 Dec. 31.. 1, 868 1,191 677 1,353 783 570 515 408 107 1,957 1,185 773 22 10 12 1928—June 30.. 1,893 1,224 669 1,336 789 547 557 436 122 1,962 1,208 755 29 19 9 Dec. 31- 1,929 1,250 679 1,332 803 530 596 447 149 2,028 1,241 787 34 22 12 1929—Mar. 27. 1,898 1,242 656 1,310 800 511 588 443 145 1,960 1,211 749 30 23 7 Dallas: 1927—June 30. 1,064 831 233 853 654 199 211 177 34 1,049 800 249 19 12 7 Dec. 31.. 1,136 898 238 891 694 197 245 204 41 1,182 897 285 4 2 2 1928—June 30.. 1,163 916 248 895 692 203 268 224 44 1,146 885 261 18 11 6 Dec. 31.. 1,247 993 254 938 736 201 310 257 53 1,290 989 301 14 12 2 1929—Mar. 27. 1,265 1,000 940 730 210 325 270 56 1,249 964 286 17 13 4 San Francisco: 1927—June 30. 4,077 2,961 1,116 2,949 2,134 815 1,128 827 301 4,073 2,974 1,099 54 41 13 Dec. 31. 4,227 3,084 1,143 2,959 2,141 818 1,267 943 325 4,253 3,114 1,139 20 7 13 1928—June 30. 4,300 3,149 1,151 2,977 2,144 833 1,323 1,005 318 4,297 3,160 1,137 37 19 17 Dec. 31. 4,523 3,169 1,354 3,107 2,109 998 1,416 1,060 356 4,576 3,200 1,376 59 39 20 1929—Mar. 27. 4,457 3,113 1,344 3,056 2,071 986 1,401 1,042 358 4,342 3,022 1,320 92 76 15 1 Includes all national and State banks (including stock and mutual savings banks) and all private banks under State supervision. 1 Includes rediscounts and overdrafts; excludes acceptances of other banks and bills of exchange sold with indorsement. 3 Includes letters of credit and travelers' checks sold for cash and outstanding, which were not included in deposits in statements issued prior to Oct. 3, 1928. Back figures.—See Tables 44, 45, and 85-88, Annual Report of Federal Reserve Board for 1928. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

522 FEDERAL RESERVE BULLETIN JULY, 1929 TABLE 2.—ALL BANKS IN THE UNITED STATES i—PRINCIPAL RESOURCES AND LIABILITIES ON MARCH 27, 1929, AND DECEMBER 31, 1928, BY STATES [Amounts in thousands of dollars] Loans and investments Deposits, exclusive Rediscounts and Number of of interbank de- bills payable reporting Total Loans 2 Investments posits 3 banks State Decem- Decem- Decem- Decem- Decem- De- March ber March ber March ber March ber March ber March cember New England: Maine 432,034 427,304 221,048 214,003 210,986 213,301 394,052 396,290 9,457 8,561 134 136 New Hampshire 302,596 302,801 148,829 149,265 153,767 153,536 271, 587 274,952 3,972 2,929 124 124 Vermont 253,064 254,033 157,975 158,835 95,089 95,198 235,458 241,988 4,805 3,647 105 105 Massachusetts 4,154,125 4,125,070 2,833, 7012,844,667 1,320,424 1, 280,4033,808,902 3,871, 595 62,146 60,923 449 448 Rhode Island 535,906 537,167 294,860 289,986 241, 046 247,181 498, 457 505,276 11,184 6,820 33 34 Connecticut 1,321, 7481,302, 540 781, 673 764,367 540,075 538,173 1, 205,9231, 214,136 17, 558 14,496 235 235 Middle Atlantic: New York 6,040,025 16,437,953 1, 547,023 1,931, 5754,493,002 4, 506, 378L5,537,442 6, 703,877< 328,403 478,906 1,142 1,145 New Jersey 2, 426,1012, 463, 2291,619,841 1, 650,085 806, 260 813,144 2, 233, 5042,325,949 73,685 78,699 570 570 Pennsylvania 5, 785,0445, 741,9723, 530, 7053,433,081 2, 254,3392,308,891 4,952,465 5,048,562 199,387 178,694 1,610 1,617 East North Central: Ohio 2,734,302 2,662, 828 2,031,015 1,985,600 703,287 677,228 2,575, 2222,565,377 88,480 84,940 1,034 1,035 Indiana 893,454 897,280 662, 576 664,520 230, 878 232,760 833,548 855,582 63,463 54,245 1,003 1,005 Illinois.. 3,928,693 3,918, 256 2,928,096 2,902, 7991,000, 5971,015,45" 3,548,457 3, 751,340 120,163 92,931 1,802 1,816 Michigan 2, 046,0682,019,490 1,478,528 1,455,682 567, 540 563,808 1,931,144 1,948,809 70, 774 62,879 747 751 Wisconsin. 961,183 943,110 674,323 657, 250 286,860 285,860 934,880 930,314 27,225 28,329 963 966 West North Central: Minnesota 924,222 915,329 544,261 538,283 379,961 377,046 876, 748 903,483 17, 432 9,063 1, 1,100 Iowa 807,723 791,388 681, 580 670. 754 126,143 120, 634 837,605 832, 631 8,878 12, 399 1,289 1,298 Missouri 1, 256,9011,276,008 891, 675 881, 372 365,226 394, 6361,159,457 1, 224, 365 43.484 40,809 1,325 1,356 North Dakota 124, 549 124, 746 88,166 88, 613 36,133 136, 848 139,238 1,090 933 468 470 South Dakota 137, 517 136,657 96,022 95, 780 41, 495 40,877 149, 409 152,624 1,416 1,174 402 409 Nebraska 400,886 408,050 305, 859 312,918 95,027 95,132 404,068 411,543 10,339 15,648 867 882 Kansas 407,425 417,368 298,304 119,332 119,064 417,324 431,453 3,704 5,808 1,08: 1,102 South Atlantic: Delaware.- .. 155,795 149,45! 107,075 98,216 48, 720 51,235 137,448 136,809 * 4,763 <4,005 47 47 Maryland 833,113 834,53C 501, 332 502,627 331,781 331,903 772, 750 788, 713 16,420 14,168 236 237 District of Columbia... 261, 537 253,145 197,819 190,82" 63, 718 62,318 253, 804 248,878 3,874 6,336 41 41 Virginia _. 565,625 563,568 468,848 466,806 96,777 96,762 459,075 471,340 28, 279 25,040 487 488 West Virginia 358,195 360,694 288, 620 294,391 69, 575 66,303 333,400 333,284 10,822 12,149 320 325 North Carolina 412,012 408, 226 345,142 349, 398 66,870 58,828 375, 056 390,155 24,976 17,047 427 441 South Carolina 188,474 184, 527 144, 765 138,815 43, 709 45, 712 182,871 195, 250 4,001 1,597 236 244 Georgia 359, 825 355, 731 294,676 287,927 65,149 67, 804 321, 570 335,343 18,038 13,182 426 434 Florida 340,872 334,89C 220,827 212,991 120,045 121,899 352,618 337,054 8,171 9,151 281 East South Central: Kentucky 542,850 546, 55: 415,07 416,476 127, 779 130,071 447, 713 456, 273 31,348 30, 592 578 579 Tennessee 424, 426 412,99 354,202 348, 31" 70, 224 64,68C 404, 957 408,192 15, 211 16, 201 492 498 Alabama _. 309,112 312,08 250,372 251,194 58, 740 274,053 290,721 20,096 17,847 35' 357 Mississippi 229,341 220,170 173.893 166,784 55,44* 53,386 237, 605 237,501 4,851 5,013 311 321 West South Central: Arkansas ._. 202, 586 202,406 158, 86: 160, 207 43, 72£ 42,19£ 201,125 215, 610 5,753 1,177 426 437 Louisiana. 420, 878 429,412 338, 844 340,14- 82, 034 375, 999 415,855 28, 824 18,680 225 228 Oklahoma 403, 292 404, 821 251, 272 255,418 152,020 149,403 433, 609 444, 373 3,443 1,016 654 661 Texas 1,122, 3231,105, 822 831,944 831,390 290, 379 274,432 1,102,273 1,132, 308 13,986 12,695 1,332 1,345 Mountain: Montana.. 150,772 158,911 92, 397 100,102 58,375 58,809 160, 603 175, 673 609 245 197 201 Idaho 78,317 82,173 48, 794 49, 503 29, 523 32,670 84,436 93, 544 366 207 138 139 Wyoming. _ _ 58,383 59, 703 39, 340 40, 265 19,043 19,438 60,807 66,421 970 120 87 86 Colorado 276, 560 272,607 176,274 173, 575 100, 286 99,032 294,175 298, 510 3,197 280 284 New Mexico 40, 637 41,016 25, 635 26,162 15,002 14,854 43,068 46, 999 461 58 58 Arizona 83,190 81, 288 52, 506 51, 754 30, 684 29,534 94,498 94,900 835 602 46 46 Utah 158, 380 160,159 122,402 123,542 35,978 36,617 134,345 142,638 1,922 883 105 105 Nevada. 39, 343 29, 867 29,80r 9,476 9,128 42,24f 42,744 35 35 Pacific: Washington 451, 915 448,598 280,121 278,462 171, 794 170,136 456, 503 463, 284 3,459 2,755 345 351 Oregon 260,603 263,146 143,475 145, 742 117,128 117,404 262,888 279,176 4,769 1,794 236 242 California 3,416, 83:3,478,224 2, 396,8832,444,11 1,019,948 1,034,109 3, 302,9353,494,641 80, 365 53,133 455 459 Total. 58,018, 75c58,266, 36140, 557,106 40, 762, 69C17,461,647 17,503,671 54, 544,93:56, 765, 571, 506,854 1, 512,22425,341 25,576 1 Includes all national and State banks and all private banks under State supervision. Figures for State institutions are taken from Table 4 and represent in some cases the condition of banks as of dates other than Mar. 27,1929, and Dec. 31, 1928. 2 Includes rediscounts and overdrafts; excludes acceptances of other banks and bills of exchange sold with indorsement. 3 Includes letters of credit and travelers' checks sold for cash and outstanding. 4 Excess over figures shown in Tables 3 and 4 is chiefly due to technical differences between reports to the board and reports to State banking authorities. Back figures—See Tables 89-91, Annual Report of Federal Reserve Board for 1928. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

JULY, 1929 FEDERAL RESERVE BULLETIN 523 Table 3.—NATIONAL BANKS l—PRINCIPAL RESOURCES AND LIABILITIES ON MARCH 27, 1929, AND DECEMBER 31, 1928, BY STATES [Amounts in thousands of dollars] Loans and investments Deposits, exclusive Rediscounts Number of of interbank and bills reporting State Total Loans 2 Investments deposits 3 payable banks March De b c e e r m- March De b c e e r m- March De b c e e r m- March De b c e e r m- March De b c e e r m- March De b c e e r m- New England: Maine 146, 694 145,482 80,138 77,636 66, 556 67,846 131,035 132, 286 2,898 3,111 54 54 New Hampshire 71,930 72,135 42, 797 43,233 29,133 28, 902 58,458 61,823 3, 972 2,929 56 56 Vermont- - 69, 660 70, 66? 41,106 41, 654 28, 554 29,013 59,305 61, 556 1,807 1,733 46 46 Massachusetts ., 187,469 1,158,153 840,959 842,879 346, 510 315,274 1,034,117 1,062,268 36,568 44, 707 154 154 Rhode Island 54, 279 55,473 33, 586 33, 790 20, 693 21, 683 42,336 44, 001 2,305! 1,640 10 11 Connecticut 280,198 276,434 203, 812 199, 532 76, 386 76, 902 246, 928 256,183 9,786 65 65 Middle Atlantic: New York >, 009, 2705,161,679 3, 396,193 3, 573, 2641, 613, 0771, 588,4155,077, 078 5,257,641 174,150 309, 845 560 565 New Jersey 895,063 900, 789 581, 953 584, 906 313,110 315,883 819, 689 849,862| 30, 993 34, 399 295 299 Pennsylvania >, 651, 5602, 642, 50; 1, 634, 524 1, CIO, 16-1, 017, 0361,032, 3382, 240, 200 2,312, 369i 105,475 81, 200 East North Central: Ohio .-. 742, 642 723, 891 501, 623 484,413 241,019 239,478 676, 370 670, 358 24,919 29,486 325 328 Indiana 368,308 372,134 250, 697 252, 641 117,611 119,493 327, 684 349, 718 17,351 8,133 222 224 Illinois.... [, 205,162 1,643, 621 889, 737 1, 221, 827 315,425 421, 794 1,083, 9501,492, 015 23,354 61,118 487 488 Michigan 556, 296 506, 774 389, 625 345, 916 166, 671 160,858 528,939 498,893 28,966 15, 679 134 134 Wisconsin 439, 305 431, 022 309, 701 299, 622 129, 604 131, 400 399, 401 401, 845 19,186 19,423 156 156 West North Central: Minnesota 536, 524 530, 231 333,844 327,424 202, 680 202, 807 482,462 506, 038 12,844 3,126 275 278 Iowa 284,000 279, 050 185, 563 184, 280 98,437 94, 770 268,400 268, 765 3,431 5,432 265 269 Missouri 552, 906 524, 206 394, 720 373,476 158,186 150, 730 452, 961 449,169 21, 677 12, 559 134 134 North Dakota. 74, 861 75, 058 45, ~~~ 46, 249 29, 059 23, 809 77, 340 79, 730 608! 449 131 133 South Dakota 63, 392 62,889 36, 538 36, 064 26, 854 26, 825 65,410 67,333 466 428 95 96 Nebraska _. 187, 941 189, 321 132,305 132, 084 55, 636 57, 23' 164, 719 166, 769 6,956 12,020 156 156 Kansas 203, 459 205, 016 131,554 132, 309 71, 905 72, 707 199, 347 208, 632 1,979 3,167 247 248 South Atlantic: D elaware._ 23, 220 22, 923 13, 236 12, 431 10,492 19,110 19, 655 914 664 18 17 Maryland 226,781 240, 660 147, 378 160, 045 79,403 80, 615 198, 574 217,867 9,519 10,281 82 83 District of Columbia... 133,278 129,168 97,802 95,434 35,476 33, 734 128, 731 123,163 3,043 5,321 12 12 Virginia 327,019 326, 312 262, 919 262, 768 64,100 63, 544 273, 957 278, 262 15,274 12, 303 165 165 West Virginia 165,491 165,432 126,300 128,479 39,191 36,953 149,479 149, 090 4,792 5,435 119 119 North Carolina 154,154 156, 959 125, 230 128,432 28, 924 28,527 135, 677 142, 969 8,587 7,023 74 75 South Carolina 105, 33; 103, 519 80, 487 76, 732 25,850 26, 787 102, 619 2,663 1,200 53 55 Georgia 211, 29: 208, 919 168, 624 164, 363 42, 673 44, 556 193, 882 202, 308 6, 5351 2,444 81 Florida _ 191, 361 185, 379 115, 391 107, 555 75, 970 77,824 196, 011 180,447 2.900 3,880 62 East South Central: Kentucky... 262,483 266,184 190,130! 191, 535 72, 353 74,649 214, 872 i 223,432 15, 830 15, 074 139! 140 Tennessee 230,186 217,122 186, 850 176, 691 43, 336 40,431 199,076 195, 794 7,044 8,036 101 102 Alabama..._ 200, 964 203, 866 153, 930 154, 924 47, 0341 48, 942 169, 913 181, 671 14, 533 11,264 107 107 Mississippi 76, 961 75, 240 55, 883 55, 038 21,07P1 20, 202 76,041 75,114 1,921 2,196 36 36 West South Central: Arkansas 81,366 80, 573 56,058 55,865 25,308 24, 708 76, 296 78, 005 1,408 269 77 78 Louisiana 101, 546 103,433 84,745 87, 272 16,801 16,161 89, 034 96, 799 3,136 3,472 33 33 Oklahoma 331,413 336, 531 202, 761 209,228 128,652 127,303 351, 078 359,423 2,738 645 315 325 Texas 876,495 880,825 635,339 649,102 241,156 231, 723 844,372 865,329 10,225 11,156 623 632 Mountain: I Montana 82,119 85,910 49, 537 52,947 32, 582 32,963 86,426 93,571 77 70 Idaho.. 36,073 41,64' 24,181 27, 203 11,892 14,441 38,447 46, 512 106 30 44 Wyoming 33,987 35,698 20, 550 21,800 13,437 13,898 33,804 36,890 354 64 25 26 Colorado 217, 895 211,894 134,087 129,302 83,808 82, 592 229,167 232,341 2,359 2,337 122 123 New Mexico 29, 506 29,955 18,126 18,877 11,380 11,078 31,127 33, r~- 152 15 28 28 A U r t i a z h ona 4 29 6 , ,8 7 8 6 ' " 4 2 8 8, , 1 3 5 0 6 0 3 1 2 7 , ,1 3 2 6 4 8 3 16 3 , , 0 2 1 1 7 0 1 14 2 , , 6 5 4 1 3 9 1 15 1 , , 2 9 8 4 3 6 3 41 3 , , 4 2 7 0 1 8 3 4 2 4 , , 4 9 1 3 1 8 3 3 6 3 1 4 3 1 8 8 0 4 2 1 0 5 2 1 0 5 Nevada 16,842 16,986 11,431 11,684 5,411 5,302 16,564 16,989 10 10 Pacific: Washington _. 271, 505 269,137 161,615 161,432' 109,890 107, 705 273,177 277, 526 2,068 1,511 108 110 Oregon 184,146 179,878 92,891 90,5181 91,255 89,360 183,031 186,417 2,364 1,009 92 93 California L, 691, 5561, 729,607 1,134,612 1,162,894! 556, 944 566, 713 1,591,659 1,716,417 54,636 21, 634 208 210 Total 21,921, 554 22,406, 740 14,856,362 15,285,144! 7, 065,192 7,121, 596 20,408, 580 21,407,109703,562 785,059j 7,569 7,629 1 Member banks only; i. e., exclusive of national banks in Alaska and Hawaii. 2 Includes rediscounts and overdrafts; excludes acceptances of other banks and bills of exchange sold with indorsement. 3 Includes letters of credit and travelers' checks sold for cash and outstanding. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

524 FEDERAL RESERVE BULLETIN JULY, 1929 Table 4.-STATE BANKS *-PRINCIPAL RESOURCES AND LIABILITIES ON MARCH 27,1929, AND DECEMBER 31,1928, BY STATES [Amounts in thousands of dollars] Loans and investments Deposits, exclusive Rediscounts of interbank and bills pay- Number of re- State Total Loans 2 Investments deposits able porting banks March De b c e e r m- March D b ec e e r m- March De b c e e r m- March De b c e e r m- March De b c e e r m- March Decem- New England: Maine 285,340 281,822 140,910 136,367 144,430 145,455 263,017 264,004 6,559 5,450 80 82 New Hampshire 230,666 230,666 106,032 106,032 124,634 124,634 213,129 213,129 68 68 Vermont 183,404 183,366 116,869 117,181 66,535 66,185 176,153 180,432 2,998 1,914 59 59 Massachusetts 2,966,656 2,966,917 1,992,742 2,001,788 973,914 965,129 2, 774,785 2,809,327 25, 578 16,216 295 294 Rhode Island 481,627 481,694 261,274 256,196 220,353 225,498 !456,121 461,275 8,879 '5,180 23 23 Connecticut - 1,041,550 1,026,106 577,861 564,835 463,689 461,271 958,995 957,953 7,772 7,848 170 170 Middle Atlantic: New York _ 1,030,755 1,276,274 8,150,830 8,358,311 2,879,925 2,917,963 10,460,364(11,446,236 124,512 169,061 577 580 New Jersey 1,531,038 1, 562,440 1,037,888 1,065,179 493,150 497,261 1,413,815 1,476,087 42,692 44,300 27: 271 Pennsylvania 3,133,484 3,099,467 1,896,181 1,822,914 1,237,303 1,276,553 2,712,265 2,736,193 93,912 97,494 750 753 East North Central: Ohio 1, 991,6601, 938,937 1, 529,3921,501,187 462,268 437, 750 1,898,852 1,895,019 3 63, 561»55,454 709 707 Indiana 525,146 525,146 411,879 411,879 113,267 113,26" 505,864 505,864 46,112 46,112 781 781 Illinois 2, 723, 5312,274,635 2,038,359 1,680,972 685,172 593, 663 2,464, 507 2,259,325 96,809 31,813 1,315 1,328 Michigan. 1,489, 7721,512,716 1,088,903 1,109, 766 400,869 402, 950 1,402,205 1,449,916 41,808 47,200 613 617 Wisconsin 521,878 512,088 364,622 357,628 157,256 154,460 535,479 528,469 8,039 8.906 810 West North Central: Minnesota 387, 698 385, 098 210,417 210,859 177, 281 174,239 394, 286 397,445 4,588 5,93' 814 822 Iowa 523,723 512,338 496,017 486,474 27, 706 25, 864 4 569, 205 4 563, 866 5,447 6,96' 1,024 1,029 M No is r s th ou D ri akota 7 4 0 9 3 , , 9 6 9 8 5 8 75 4 1 9 , , 8 6 0 8 2 8 49 4 6 2 , , 9 3 5 6 5 4 5 4 0 2 7, , 8 3 9 6 6 4 207 7 , , 3 0 2 4 4 0 243 7 , ,3 9 2 0 4 6 4 70 5 6, 9, 4 5 9 0 6 8j 4 7 5 7 9 5 , , 1 5 9 0 6 8 21, 4 8 8 0 4 7 28, 4 2 8 5 4 0 1,1 3 9 3 1 7 1,2 3 2 3 2 7 South Dakota 74,125 73, 768 59,484 59, 716 14,641 14,052 83,999 85, 291 950 746 307 313 Nebraska 212,945 218, 729 173, 554 180,834 39,391 37,895 239, 349 244, 774 3,383 3,628 5 711 5 726 Kansas 203,966 212,352 156,539 165, 995 47,42" 46, 357 4 217,977 4 222,821 1,725 2,641 840 854 South Atlantic: Delaware 132, 575 126, 528 85,785 38, 736 40, 743 118,338 117,154 1,224 1,659 29 30 Maryland 606,332 593,870 353,954 342, 582 252, 378 251, 288 574,176 570,846 6,901 3,887 154 154 District of Columbia.. 128,259 123,977 ioo, or 95,393 28,242 28, 584 125, 073 125,715 831 1,015 29 29 East V F N G W S o l S i o e o e r u o o r r s g t t u i r t h h i d t g n V h a i C i C a . a i C r a a . . g . r . r e . o . i o . n n l l i i t i n n r a a a a l: 2 2 1 1 1 3 9 8 5 4 4 8 2 9 8 2 7 , , , , , , 1 8 7 6 5 5 5 3 0 0 1 2 8 7 4 6 1 8 2 2 1 1 1 5 3 8 9 4 4 1 5 7 1 6 9 , , , , , , 2 0 5 8 2 2 5 1 0 1 6 6 6 1 8 2 7 2 2 2 1 1 1 0 1 6 6 0 2 5 9 4 2 5 6 , , , , , , 9 9 2 3 4 0 2 7 1 2 3 5 9 8 2 0 6 2 2 2 1 1 1 2 0 6 2 6 0 3 2 0 4 5 5 , , , , , , 0 9 0 9 4 5 8 6 3 3 1 6 3 6 8 6 2 4 3 3 3 4 2 1 0 2 7 4 2 7 , , , , , , 9 4 0 6 3 8 4 7 7 7 8 5 6 6 5 7 4 9 3 2 3 4 2 1 3 3 8 0 9 4 , , , , , , 3 0 2 3 2 9 5 7 1 4 0 2 0 5 8 8 1 5 2 1 1 1 15 8 3 2 8 8 6 4 7 9 5 3 , , , , , , 3 1 9 6 6 7 1 2 0 0 9 8 1 4 7 2 1 1 1 1 9 4 5 8 9 3 2 6 7 4 3 3 , , , , , , 1 1 0 0 6 6 8 9 7 3 3 0 6 4 8 5 1 7 1 1 1 3 1 6 5 6 1 , , , , , , 3 3 2 0 0 5 3 8 7 3 0 0 8 9 1 0 5 3 1 1 1 0 6 2 0 5 , , , , , 7 2 3 7 0 7 1 7 9 3 2 3 4 1 7 7 4 8 3 2 3 3 2 1 2 5 0 4 2 8 2 3 1 6 1 3 3 3 2 3 2 1 6 2 0 5 2 8 6 3 6 3 1 9 Kentucky 280,367 280, 224,941 224, 941 55,426 55,426 232,841 232,841 15, 518 15, 518 439 439 Tennessee 194, 240 195, 875 167,352 171, 620 26, 888 24, 255 4 205,881 4 212, 398 8,167 8,165 391 396 Alabama 108,148 108, 215 96,442 96, 270 11,706 11,945 4 104,140 4 109,050 5,563 6,583 250 250 Mississippi 152,380 144, 930 118, 010 111, 746 34, 370 33,184 161, 564 162,38" 2,930 2,81' 280 285 West South Central: Arkansas 121, 220 121,833 102, 803 104, 342 18,417 17,491 124, 829 137, 605 4,345 908 349 359 Louisiana 319,332 325,979 254,099 252, 872 65, 233 73,107 286, 965 319, 056 25, 688 15, 208 192 195 Oklahoma 71,879 68, 290 48, 51 46,190 23, 368 22,100 82, 531 84,950 705 37 339 336 Texas 245,828 224,997 196, 605 182, 285 49, 223 42, 709 257,901 266, 979 3,76: 1, 53S 709 713 Mountain: Montana 68, 653 73,001 42, 860 47,151 25, 793 25,846 74,177 82.102 532 245 128 131 Idaahoo 42, 244 40, 529 24, 613 22, 30C 17, 631 18, 229 45,989 47,032 260 177 95 95 WWyyoming 24, 396 24,005 18, 790 18,46£ 5,606 5,540 27,003| 29, 531 56 62 60 Coollorado 58, 665 60, 713 42,18' 44, 272 16,478 16,440 65,008 66,169 83$ 1,404 158 161 New Mexico 11,13: 11,061 7,50S 7,285 3,622 3,776 11,9411 13.103 309 30 30 Arizona 53,423 53,132 35,382 35, 544 18,041 17, 588 4 61,290! 4 62,489 « 474 6 225 31 31 Utah 111, 49." 111, 859 90, 034 90, 525 21,459 21, 334 92,874 97, 700 1,588 85 85 Nevada 22, 50: 21,949 18,436 18,123 4,065 3,826 25,685 25, 755 25 25 Pacific: Washington 180, 411 179,461 118, 506 117,03C 61,904 62,43 183, 326 185, 758 1,391 1,244 237 241 Oregon 76, 45' 50, 58' 55,224 25, 873 28,044 79,857 92, 759 2,40£ 785 144 149 California 1,725,275! 1,748,617 1, 262, 27 1, 281, 22: 463,004 467,396 1,711,276 1,778,224 25, 72c 31,49S 247 249 Total . 36,097,199 35, 859, 62l! 25, 700, 744 25,477, 54( 10, 396,455 10, 382,07£34,136,353 35,358,464 770,926 725,483 17, 772 17,947 1 Includes all State banks (including stock and mutual savings banks) and all private banks under State supervision. Figures relate to dates given or dates nearest thereto for which figures are available. J Includes rediscounts and overdrafts; excludes acceptances of other banks and bills of exchange sold with indorsement. 3 Includes bonds borrowed. 4 Includes due to banks. 5 Exclusive of banks operated by the Guaranty Fund Commission. 6 Includes all other liabilities. NOTE.—All figures in the March columns are as of Mar. 27, except as follows: Maine, Mar. 30; New Hampshire, June 30; Massachusetts, savings banks, Oct. 31; Rhode Island, State banks Feb. 28, savings banks Dec. 31; Connecticut, savings banks, Mar. 30; New York, State banks Mar. 22, savings banks Dec. 31; Pennsylvania, Mar. 25; Indiana, Dec. 31; Minnesota, May 1; Missouri, Apr. 10; North Dakota, Dec. 31; Nebraska, Mar. 12; Kansas, Mar. 15; Maryland, State banks Apr. 2, savings banks Dec. 31; Florida, Dec. 31; Kentucky, June 30; Tennessee, Apr. 15; Louisiana, Apr. 5; Colorado, Feb. 28; Utah, Apr. 3. All figuresi n the December columns are as of Dec. 31, except as follows: New Hampshire, June 30; Massachusetts, savings banks, Oct. 31; Missouri, Nov. 15; Kansas, Dec. 26; Kentucky, June 30; Tennessee, Nov. 24; Alabama, Nov. 16; Oklahoma, Dec. 28; Colorado, Nov. 9. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

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