Federal Reserve Bulletin, 1930-04

FEDERAL RESERVE BULLETIN APRIL, 1930 ISSUED BY THE FEDERAL RESERVE BOARD AT WASHINGTON Lower Money Rates and the Banking Situation Condition of All Banks in the United States Branch, Chain, and Group Banking Gold Holdings of Principal Countries Final Act of The Hague Conference UNITED STATES GOVERNMEiNT PRINTING OFFICE WASHINGTON: 1930 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

FEDERAL RESERVE BOARD Ex officio members: ROY A. YOUNG, Governor. A. W. MELLON, EDMUND PLATT, Vice Governor. Secretary of the Treasury, Chairman. ADOLPH C. MILLER. CHARLES S. HAMLIN. J. W. POLE, GEORGE R. JAMES. Comptroller of the Currency. EDWARD H. CUNNINGHAM. WALTER L. EDDY, Secretary. WALTER WYATT, General Counsel. E. M. MCCLELLAND, Assistant Secretary. E. A. GOLDENWEISER, Director, Division of Research J. C. NOELL, Assistant Secretary. and Statistics. W. M. IMLAY, Fiscal Agent. CARL E. PARRY, Assistant Director, Division of Research 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) HERBERT K. HALLETT. 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) GEO. H. PRINCE. District No. 10 (KANSAS CITY) W. S. MCLUCAS. District No. 11 (DALLAS). B. A. MCKINNEY, Vice President. District No. 12 (SAN FRANCISCO) ___ F. L. LIPMAN. WALTER LICHTENSTEIN, Secretary II Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

OFFICERS OF FEDERAL RESERVE BANKS Federal Reserve Bank of— Chairman Governor Deputy governor Cashier Boston Frederic IT. Curtiss W. P. G. Harding. __ i W. W. Paddock W. Willett. New York.. J. H. Case.-... Geo. L. Harrison \ 1 L E . . F R . . S K ai e l n er zel _ J R . a W y . M J . o n G es id .i ney.i A. W. Gilbart W. B. Matteson.i L. R. Rounds C. IT. Coe.i J. E. Crane J. W. Jones.i Walter S. Logan j; M. Rice.1 Allan SprouU Philadelphia.. R. L. Austin Geo. W. Norris Wm. IT. Hutt C. A. Mcllhennv. W. G. McCreedy.2 Cleveland George DeCamp E. R. Fancher M. J. Fleming IT. F. Strater. Frank J. Zurlinden.. Richmond Win. W. Iloxton George J. Seay C. A. Peple Geo. H. Keesee. R. II. Bfoaddus John S. AValden, jr.2 Atlanta Oscar Newton.. Eugene R. Black Hugh Foster M. W. Bell. Creed Taylor Chicago. Win. A. Ileath- J. B. McDougal C. R. McKay W. C. Bach in an. 2 JohnH. Blair K. C. ChildsJ J. H. Dillard.2 D. A. Jones.* O. J. Netterstrom.2 St. Louis Rolla Wells Wm. McC. Martin I O. M. Attebery. A. II. Haill.2 S. F. Gilmore.2 F. N. Hall.2 G. 0. Ilollocher.* C. A. Schacht.2 Minneapolis John R, Mitchell W. B. Geery narry Yaeger Gray Warren. H. I. Ziemer Frank C. Dunlop.2 Kansas City... M. L. McClure W. J. Bailey C. A. Worthington. J. W. Helm. J. W. Helm.... Dallas C. C. Walsh Lynn P. Talley. R. R. Gilbert Fred Harris. R. B. Coleman W. 0. Ford.i San Francisco . Isaac B. Newton.. Jno. U. Calkins. Wm. A. Day.... Wm. M. Hale. Ira Clerk 1 Assistant deputy governor. 2 Controller. MANAGING DIRECTORS OF BRANCHES OF FEDERAL RESERVE BANKS Federal Reserve Bank of— Managing director Federal Reserve Bank of— Managing director New York: Minneapolis: Buffalo branch R. M. O'Hara. Helena branch R. E. Towle. Cleveland: Kansas City: Cincinnati branch C. F. McCombs. Omaha branch L. IT. Earhart. Pittsburgh branch J. C. Kevin. Denver branch J. E. Olson. Richmond: Oklahoma City branch C. E. Daniel. Baltimore branch . A. H. Dudlev. Dallas: Charlotte branch _. Hugh Leach. El Paso branch J. L. Hermann. Atlanta: Houston branch W. D. Gentry. New Orleans branch Marcus Walker. San Antonio 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, West. Chicago: Salt Lake City branch W. L. Partner. Detroit branch W. R. Cation. Seattle branch C. R. Shaw. St. Louis: Spokane branch _ D. L. Davis. Louisville branch _ _ W. P. Kincheloe. Memphis branch W. II. 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—Lower money rates and the banking situation 139 Decline in money rates—Rates charged to customers—Causes of rate decline—Decreased demand for reserve-bank credit—Decline in member-bank discounts—Member-bank credit. Branch, chain, and group banking 144-157, 258-266 Gold holdings of principal countries at the end of 1929 170 Final act of the Hague Conference 172-249 Condition of all banks in the United States on December 31, 1929 143, 270-273 National summary of business conditions 158 Financial, industrial, and commercial statistics: Reserve bank credit and factors in changes 159, 160 Analysis of changes in monetary gold stock 160 Gold movements to and from United States 160 Member bank borrowings at Federal reserve banks 161 Discount rates and money rates 161, 162 Member bank credit 163 Bankers' acceptances and commercial paper outstanding 163 Brokers' loans 163 Security prices, security issues, and building contracts 164 Production, employment, car loadings, and commodity prices 165 Industrial production and building 166 Factory employment and pay rolls 167 Banking and business conditions in Federal reserve districts: Reserves, deposits, note circulation, and reserve percentages of Federal reserve banks 168 Discounts of Federal reserve banks 168 Bank debits 168 Building 169 Department stores—Indexes of sales and stocks 169 Commercial failures 169 Bank suspensions 169 Financial statistics for foreign countries: Gold holdings of central banks and Governments 250 Gold exports and imports - 250 Condition of central banks 251, 252 Condition of commercial banks 253 Discount rates of central banks 254 Money rates 254 Foreign exchange rates 255 Price movements 256, 257 Law department: Digest of State laws relating to branch banking 258-266 Changes in national and State bank membership 267, 268 Fiduciary powers granted to national banks 268 Resources and liabilities of Federal reserve banks in detail and Federal reserve note statement 269 IV Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

FEDERAL RESERVE BULLETIN VOL. 16 APRIL, 1930 No. 4 REVIEW OF THE MONTH early in 1928 until the third quarter of 1929 ? but began to decline in November. The chart Conditions in the money market eased furalso brings out the fact that this decline, like ther in March, both in the United States and the preceding advance, began in New York abroad, continuing the move- Decline in money tober. City and other cities of the North and East, ment thftt began lflflt Oc and was followed somewhat later by declines At the end of March the decline of rates in the southern and western group of in open-market rates from the highest levels cities; since last December the rates charged of last year had amounted to more than 2 per customers have been declining in leading cities cent in New York, London, and Berlin, and of all sections of the country. From last authere was also a marked decline in average tumn to the middle of March average rates in rates charged on loans made directly to regular customers by banks in the leading cities of all RATES CHARGED CUSTOMERS sections of this country. New York rates on loans of the most liquid types, including call loans on securities and credit extended on bankers' acceptances, reached in March the lowest levels since 1924, with both acceptance rates and renewal rates on call money at one time below 3 per cent. The official discount rate at the Federal Reserve Bank of New York was reduced on March 14 from 4 to 3}i per cent, and in the following week rates at the Cleveland, Philadelphia, and San Francisco reserve banks were reduced from 4% to 4 per cent. Discount rates of central banks in important 1926 1927 1928 1929 1930 foreign countries also were reduced in March, Weighted averages of prevailing rates on commercial loans and security the Bank of England rate being reduced from loans. (For explanation see p. 162) 4% to 4 and later to 3% per cent, and the rate at New York City declined by more than 1 per the German Reichsbank from 6 to 5}i and later cent to a level under 5% per cent with some to 5 per cent. commercial loans made at 4% per cent, while Reports covering rates charged customers on in the other cities of the North and East the commercial and security loans by banks in Fed- rates declined by three-quarters of 1 per cent eral reserve bank and branch to a level under 5K per cent, and in the group cities indicate that the average of southern and western cities by about oneof these rates declined further third of 1 per cent to a level under 6 per cent. in March to the lowest levels in more than a The sequence of these movements has been in year. This is brought out by the chart, which accord with previous experience. The most covers the period since January, 1926, with sensitive rates are the rates in the open market, separate curves for banks in New York City, especially the rates on call loans, bankers' acbanks in other northern and eastern cities, ceptances, and commercial paper. At the time and banks in southern and western cities. of a turn in the course of rates these rates are Customers' rates advanced continuously from the first to register either an advance or a de- 139 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

140 FEDERAL RESERVE BULLETIN APRIL, 1930 cline. Continued ease in the open market course of these loans since 1927 and brings out spreads in course of time over the other and the fact that the decline in their volume in less sensitive markets, affecting at first the February and March carried them below the rates charged by banks in the principal finan- levels of 1929 and 1928, and only slightly above cial centers to borrowers who are in position the level of 1927. to choose between banks from which to bor- Decreased demand for commercial credit at row or obtain funds in the open market, and the member banks has been accompanied by later spreads to other borrowers and other ^ , , a continuous reduction in the centers, first in the North and East and later Decreased de- _ _ . _ _. in the South and West. mand for re- demand lor reserve-bank credit. Easier conditions in the money markets of credit bank The PrinciPal factor in this the United States in recent months have been reduction has been the decrease caused in part by Federal re- in the demand for currency. Currency began declines ° Fa e serve policy as expressed in rate to return from circulation in large volume this year, as in other years, immediately after the reductions and in open-market cessation of the Christmas holiday demand, but purchases of securities and in part by a dethis year the return flow did not stop in Janucrease in the demand for funds since the ary, as it usually does. In February and March 1 BIL 0 LIONS OF DOLLARS OF DOLLA 1 R 0 S a certain amount of money usually flows out MEMBER BANKS IN LEADING CITIES I ! ! I into circulation again, but this year, in consequence of inactive trade and a smaller than "ALL OTHER" LOANS usual increase in pay-roll requirements of industry, the volume of money in circulation continued to decline, by about $50,000,000, and was at the end of March less than at any other time since 1922. A chart showing the volume of money in circulation for several }^ears past is inserted at this point. MILLIONS OF DOLLARS MILLIONS OF DOLLARS 52001 ~^~ MONEY IN CIRCULATION T ! i52°° 5100 1 1 : 5100 5000 Jan. Feb. Mar. Apr. May June July Aug. 5«pt. Ccf. Nov Dec. October-November break in the stock market. 4900 There has been a large decrease since that time in the demand for loans to finance trans- 4800 actions in securities, and the reduced volume of business activity has resulted also in a de- 1*700 crease in the demand for commercial loans. So-called "all other" loans of reporting mem- 4600 ber ranks, changes in which are due chiefly to changes in the commercial demand for credit, 4500 began to decline in November and continued 4400 L to decline rapidly for more than four months— Jan. Feb. Mar Apr May June July Aug". Sept OCT. NOV. Dec. not only through December and January, when Weekly averages of daily figures the seasonal trend is downward, but also in Another factor in the decrease in the demand February and March, when it is usual for this for reserve-bank credit and consequently in the class of loans to increase. The chart shows the easing tendency in the money market, has been Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

APRIL, 1930 FEDERAL RESERVE BULLETIN 141 an inflow of gold from abroad. The movement volume of credit of these banks began to inof gold, which was outward in November and crease rapidly and at the end of March was December and small in January, was inward about $560,000,000 larger than a month earlier. in February and March, and there was an in- This increase consisted in part of a growth of crease of $130,000,000 in the country's gold investments, particularly at the time of the stock during the two months. March 15 Treasury financing. The principal The return flow of currency from circulation growth of member bank credit, however, was and the imports of gold, together with some in loans on securities, which increased by open-market purchases by the $540,000,000 between the end of February and Decline in mem- serve banks, resulted in a rere the end of March. This growth in security berbankdis- J J U I . I I. loans represented an increase in loans to brokers counts auction oi member bank borand dealers by the member banks. Brokers' rowings at the reserve banks to loans by reporting member banks in New York the lowest level since 1917, with the exception City for their own account and for out-of-town of a few weeks in 1924 and 1925. Throughbanks were at their low point on January 22, out the month of March member banks in New when their total was $1,688,000,000. Between York City were practically out of debt at the that date and April 2, these loans to brokers by reserve bank, for the only period of any condomestic banks increased by approximate!}^ siderable length since 1924, and the member $1,000,000,000. During the same period brokbanks in Chicago and several other important ers7 loans for account of corporations and indicities were also out of debt. For a few days viduals, as well as foreign banks, declined by at the middle of the month the credit situation $340,000,000, so that the total increase in was exceptionally easy, especially at New brokers' loans was $625,000,000. The con- York, because of a temporary accession of funds siderable growth in brokers' loans during the to the market that accompanied Treasury past two or three months, which has accompafinancing. A slightly firmer situation denied an advance in security prices, has therefore veloped thereafter, but the indebtedness of been financed entirely by the banks, and parmember banks at the reserve banks on March 26 ticularly by the New York banks for their own continued to be low throughout the country— account. Brokers' loans by the New York below $40,000,000 in the New York and Philabanks on April 2 were, in fact, at the highest delphia reserve districts, below $30,000,000 in figure on record, with the exception of the few the Cleveland and Chicago districts, below days immediately following upon the stock- $20,000,000 at Boston, Richmond, Atlanta, market break last October. Nonbanking lend- St. Louis, and Kansas City districts, $8,400,000 ers, on the other hand, have continuously within the San Francisco district, $5,600,000 in the drawn funds from the market since the last Dallas district, and $2,200,000 in the Minneweek in October, and the volume of their apolis district. A chart showing member brokers' loans placed through New York reportbank indebtedness by districts appears at the ing banks is now lower than at any other time end of this review. in nearly two years. As has already been mentioned, the com- The banking system, therefore, entered mercial demand for credit at member banks, as upon the second quarter of 1930 with a volume well as the demand for reservebank credit> has been decreas- of member-bank credit that had shown an upward movement during the last month, ing since last autumn. The but was still at approximately the same level total volume of loans and investments of memas a year earlier. As compared with a year ber banks in leading cities declined almost ago, member-bank loans on securities showed continuously from the peak on October 30 to a considerable increase, while all other loans the low point of February 26. Beginning with the last week in February, however, the total were much lower and investments also showed Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

142 FEDERAL RESERVE BULLETIN APRIL, 1930 a substantial reduction. The volume of re- of Government securities were more than serve-bank credit early in April was at the $300,000,000 higher. Discounts for member lowest point since the middle of 1927. The banks, on the other hand, were about $800,000,system's holdings of acceptances were some- 000 lower than last year, and with one exception what higher than a year ago, and its holdings were at the lowest point since before the war. FEDERAL RESERVE BANK DISCOUNTS-BY DISTRICTS MILLIONS OF DOLLARS -.(..Weekly report date figures ) MILLIONS OF DOLLARS 300 1326 1927 1928 1929 1930 1926 1927 1928 1929 1930 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

143 APRIL, 1930 FEDERAL RESERVE BULLETIN Death of Governor Harding March 14.—Bank of Poland, from 8 to 7 per cent. March 20.—Bank of England, from 4 to 3^ per cent. Governor W. P. G. Harding, of the Federal March 21.—Bank of Norway, from 5 to 4J4 per cent. March 22.—Austrian National Bank, from 6% to 6 Reserve Bank of Boston, died on April 7, 1930. per cent. Governor Harding was a member of the Federal March 25.—Netherlands Bank, from Qfa to 3 per Reserve Board from its organization in 1914 to cent; German Reichsbank, from 5% to 5 per cent. March 29.—National Bank of Hungary, from 6 £ to 1922, and was its governor from 1916 to 1922. 6 per cent. Since that time he has been governor of the April 3.—Imperial Bank of India, from 7 to 6 per cent; Bank of Sweden, from 4 to 3J4 per cent; National Federal Reserve Bank of Boston. Bank of Switzerland, from 3}i to 3 per cent. Condition of All Banks in the United States on Decem- Changes in Discount Rates and Bill Rates ber 31, 1929 The discount rate on all classes and maturi- Total loans and investments of all banks in ties of paper was reduced from 4 to 3K per cent the United States—including national banks, at the Federal Reserve Bank of New York, State banks, trust companies, mutual and stock effective March 14; and from 4% to 4 per cent savings banks, and private banks under State at the Federal Reserve Bank of Cleveland, supervision—increased by $151,000,000, or 0.3 effective March 15; at the Federal Reserve per cent, during the year ending December 31, Bank of Philadelphia, effective March 20; and 1929, according to figures that have recently at the Federal Reserve Bank of San Francisco, become available. This increase brought the effective March 21. total loans and investments of all banks to the At the Federal Reserve Bank of New York level of $58,417,000,000. The growth of $151,buying rates on bills of all maturities were 000,000 reflected an increase of $250,000,000 successively reduced during February and for member banks and a decrease of $99,000,000 March as shown in the following table: for nonmember banks. The entire increase in bank credit, both Date effective ; 1 d a t y o s 15 10 ( l t a o y s 4 5 ' ' i •• 4 0 d t a o y 1 s 20 12 d 1 a y to s 180 i o n c s c i u d r e r e a d n d in o l u o t a s n id s, e a t s h s e h F ow ed n e r b a y l t r h e e s e a rv cc e o s m y p st a e n m y- , ing table. The banks' investment holdings m In effect Feb 1 3J6: 4 4H Feb. 11 ALL BANKS IN THE UNITED STATES Feb. 24 1 3% Mar. 5 356 4 [Figures for end of December. Amounts in millions of dollars] Mar. 6. . . . 3V& 3% Mar. 11 3H Mar. 14 3H! 3H Increase cr decrease Mar. 17. ... Mar. 19 3 3^i 3ii 3% 1929 1928 Mar. 20. 3 Amount Per cent 1 Rate of 3J4 on maturities of 91-120 days. Loans and investments: All banks 58, 417 58, 266 151 0.3 Member banks _. _ 35, 934 35, 684 250 .7 Changes in Foreign Central Bank Discount Rates Nonmember banks 22,483 22, 582 -99 -.4 Loans: The following changes have been made since A M l e l m ba b n e k r s banks 4 2 1 6 , , 1 8 5 9 0 8 4 2 0 5 , , 1 7 5 6 5 3 1,1 9 3 9 5 5 4 2 . . 0 8 the first of February in the discount rates of Nonmember banks 15, 748 15, 607 141 .9 Investments: central banks in foreign countries: All banks 16, 519 17, 504 -985 -5.6 Member banks 9, 784 10, 529 -745 -7.1 February 5.—German Reichsbank, from 6J4 to 6 per Nonmember banks 6, 735 6,975 -240 -3.4 cent. February 6.—Bank of England, from 5 to 4% per cent. continued the decline which began in the mid- February 10.—Bank of Java, from 5>7 to 5 per cent. 2 dle of 1928, and at $985,000,000 at the end of February 11.—Austrian National Bank, from 7 to 6% per cent. the past year were 5.6 per cent smaller than on February 13.—National Bank of Hungary, from 7 to December 31, 1928. Investments of member 6}^ per cent. banks decreased 7.1 per cent during the year, March 3.—Bank of Italy, from 7 to 6H Per cent. and investments of nonmember banks de- March 6.—Bank of England, from 4}£ to 4 per cent. March 7.—Danish National Bank, from 5 to 4}£ per creased 3.4 per cent. cent; Bank of Netherlands, from 4 to 3K per cent; More detailed compilations of the principal Bank of Sweden, from 4.]^ to 4 per cent. resources and liabilities of these banks, by March 8.—German Reichsbank, from 6 to 5}^ per Federal reserve districts and by States, are cent; Bank of Danzig, from 6 to 5}' per cent. March 10.—Bank of Java, from 5 2 to 4}^ per cent. given on pages 270-273 of this BULLETIN 103025—30 2 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

144 FEDERAL RESERVE BULLETIN APRIL, 1930 BRANCH, CHAIN, AND GROUP BANKING: DECEMBER, 1929 Compilations by the board covering branch, State banks are permitted under State law and chain, and group banking developments at the national banks under Federal law to establish end of 1929 are presented in detail for States in branch offices has not changed materially in general tables on pages 151 to 157 of this issue recent years. Within this area state-wide of the BULLETIN, indicating changes during the branch banking, which has developed most last half of the year, and also, in so far as data extensively in California, has shown considerare available, during the period following and able development also in Maryland, North preceding passage of the McFadden Act early and South Carolina, Rhode Island, and Virginia in 1927. In these tables the number of na- In several other States of the branch-banking tional, State member, and nonmember banks area—New York, Michigan, Ohio, Pennsyland banking offices in the several States vania, New Jersey, Massachusetts—in which affiliated in branch, chain, and group systems, the establishment of branches is restricted to and the number of independent unit banks of the home city of the parent bank or territory these classes is shown, together with aggregate nearly contiguous thereto, a considerable develloans and investments. opment of urban or local branch systems has Branch-banking developments during the been in evidence for several years past. last half of 1929.—On December 31, 1929, 822 Comparison of figures compiled for June of the 24,630 banks* of all classes in the country with those for December, 1929, indicates a conwere operating 3,547 branch offices, including tinuance of branch-banking developments dur- 119 banks operating 1,415 branches which were ing these six months at about the same rate of also reported as affiliated in chain or group increase as during the past three years. In this systems. Banks operating branches at the end half year the number of banks operating of 1929 included 166 national banks operating branches increased by 4 and the number of 1,027 branches; 180 State member banks oper- branch offices by 107. Only inconsiderable ating 1,299 branches; and 476 nonmember increases were, however, shown for some of the banks operating 1,221 branches. Loans and principal branch-banking States, the number investments of these banks totaled $25,000,- of branches of the California banks increasing 000,000, of which over $20,000,000,000 was only from 861 in June to 863 in December, and reported from States which permit branches of Michigan banks from 433 to 439. More only in the city in which the parent bank is considerable increases are reported for New located or territory contiguous thereto, and in York, Ohio, Pennsylvania, and Massachusetts. which accordingly branch banking is carried on Although the number of branch systems only in local urban or home-city systems. increased by only 4 during the last half of the Nearly $11,000,000,000, or more than half of year, 36 banks w^hich were not operating this $20,000,000,000, was reported from the 71 branches in June, were operating branches in banks operating 580 branches in the city of December. This addition of 36 to the number New York. A majority of these New York of branch systems was offset in large part by City banks were, however, operating only one a decrease of 25 through merger procedures, a or two branch offices each in the city. Approx- decrease of 6 as a result of suspension of operaimately $4,000,000,000 of loans and invest- tions of the parent bank, and a decrease of 1 ments was reported from banks operating by discontinuance of branches. branches in the nine States which permit state- The increase of 107 in number of branches wide branch banking. This aggregate included also is a net increase covering 163 branches nearly $2,700,000,000 reported for the 53 established during the six months7 period—82 branch systems operating 863 branches in de novo as branches, and 81 by conversion of California, and about $1,300,000,000 from the banks into branches—and the discontinuance 8 remaining States which permit development of 56 branches, partly by merger with other of branch systems on a state-wide basis, and branches, and in the case of 7 branches following in which 151 banks (in a total of 1,567 banks suspension of parent banks. of all classes) were operating 399 branch offices. The number of banks operating branches, A large majority of these banks, also, as well as and the number of their branches on June 30 the banks operating branches in California, and December 31, 1929, and for February 25, were operating only one or two branch offices. 1927, and June 30, 1924, are shown, by States, The branch-banking area, comprised of 21 in Tables 2 and 3. States and the District of Columbia, in which Branch banking developments since passage of McFadden Act.—Branch banking develop- 1 Based on abstracts of condition reports covering national and State ments since February, 1927, when the McFadbanks for Dec. 31 or nearest available date, as shown on pp. 270-273. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

APRIL, 1930 FEDERAL RESERVE BULLETIN 145 den Act became effective, have been principally New York 580 ' Cleveland 85 in the building up of urban branch systems. Detroit i 309 | Buffalo...•_ 73 Los Angeles 1 201 j Boston 66 In the period of approximately two years and Philadelphia 133 , Baltimore 65 10 months from February 25, 1927, to Decem- San Francisco 1 97 ! Cincinnati 1 50 ber 31, 1929, the number of home-city branches Size of branch systems.—At the end of the in the country as a whole increased from 1929 year, 18 banks were operating each more than to 2,432, or by 503, and the number of branches 30 branches, including six California systems, located outside the home city of the parent one of 287 branches, and 5 of 160, 139, 94, 56, bank from 971 to 1,115, or by 144. During and 31 branches, respectively. Three Detroit this period 120 branch systems were merged banks were operating 94, 33, and 31 branches, with other banks, 15 suspended operations, and respectively; 7 New York City banks were 28 (of which 26 operated only 1 branch and 2 operating each from 33 to 67 branches; 1 Cleveoperated 2 branches each) discontinued all land bank was operating 57; and 1 Buffalo branches. These decreases were more than bank 33 branches. These larger branch sysoffset by 206 banks which initiated branch tems represent in man}^ cases a succession of banking during the period, giving a net inmergers of smaller branch systems or of concrease of 43 in the number of branch systems. version into branches of independent banks. Of the 2,900 branches in operation in Febru- All but 2 of these 18 banks were members of ary, 1927, 224 were discontinued or merged, the Federal reserve system. with other branches during the period, includ- It was still true in December, however, as at ing 30 discontinued following suspension of earlier dates, that a large majority of the banks parent banks, and 871 branches were estaboperating branches in the country as a whole lished—511 de novo as branches and 360 by were operating only 1 or 2 branches each. Of conversion of banks into branches. the 822 banks operating branches, 448, or more In this period, also, the classification of than half, were operating only 1 branch each, branches operated by national and by State 150 were operating 2, and 124 were operating member banks was materially affected by 3 to 5 branches each, the proportion of small nationalization of large State-bank systems in systems being not materially different from the California, either directly or by merger with proportion shown in February, 1927. existing national banks. These procedures Rural branches.—Of the 1,115 branches account largely for the increase in the number located outside the home city of the parent of branches of national banks from 390 in bank, 612 were located in places of less than February, 1927, to 1,027 in December, 1929, 2,500 population; 136 in places of 2,500 to and for the decrease in number of branches 5,000; 86 in places of 5,000 to 10,000; and 281 of State member banks from 1,560 to 1,299. in places of over 10,000. The 281 outside In the same period nonmember bank branches branches located in places of over 10,000 popuincreased from 950 to 1,221. lation represented largely branches of state- Principal branch banking States and cities.— wide California systems with head offices in At the end of 1929 branches were in operation Los Angeles and San Francisco operating in 29 States and the District of Columbia— branches in other large cities of the State. 1,286 in the 9 States and the District of The number of branches located in places of Columbia which permit state-wide branch less than 2,500 increased by 40 in the period banking, 2,207 in the 12 States which restrict from June, 1928, to December, 1929. the establishment of branches to the home city Method of establishment of branches.— of the parent bank or territory nearly con- More than two-thirds of the branches in operatiguous thereto, and 54 in 8 States in which tion in February, 1927, were offices which had the further extension of branch banking is been established de novo as branches, the reprohibited by State law. Two-thirds of the maining branches representing largely conver- 3,547 branches in operation in December sions of independent banks into branches, were located in 5 States—California, New although in some instances the method of York, Michigan, Ohio, and Pennsylvania— establishment was not ascertained. In the and in each of 4 other States—Massachusetts, period from February, 1927, to December, 1929, New Jersey, Louisiana, and Maryland—more the number of de novo branches increased by than 100 branches were in operation. 383—from 1,996 to 2,379—and the number of Of the 2,432 home-city branches, 1,659, or branches representing conversions of banks more than two-thirds, were located in 10 cities, increased by 282—from 735 to 1,017, the method the number of such branches in each of these cities being as follows: » Exclusive of branches whose head offices were located in other cities. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

146 FEDERAL RESERVE BULLETIN APRIL, 1930 of establishment in the case of 151 offices not The number of banks of all classes in the having been ascertained. country as a whole decreased in the period from Suspension or failure of branch systems.— June, 1924, to the end of February, 1927, by During the 9-year period 1921-1929, 41 branch 2,023. For the 21 States and the District of systems operating a total of 80 branches sus- Columbia comprising the branch-banking area, pended operations, with total deposits of the decrease amounted to 506, and in this area $49,000,000. Five of these systems were subse- the number of branch offices increased in the quently reopened, and later one of these was same period by 614, giving a relatively small again closed. Of the 41 systems, 29 were oper- increase in the total of banking offices for the ating 1 branch each, six 2 branches each, two 3, area, from 13,002 to 13,110. Outside this area two 4, one 5, and one 20 branches. Ten of these the decrease of 1,517 in the number of banks banks, operating a total of 18 branches, with was, of course, not offset by any extension of deposits of $20,000,000, suspended operations branch systems. In the period of approxiduring 1929, one of these 10 operating 2 branches mately equal duration from February, 1927, with deposits of $5,882,000 being later reopened. when the McFadden Act went into effect, to Banking offices.—Branch-banking develop- the end of December, 1929, the number of ments may involve some reduction in the num- banks in the country decreased further by 2,343, ber of corporately independent banking insti- the decrease within the branch-banking area of tutions without involving a corresponding 623 being relatively as well as absolutely less than the decrease of 1,720 outside this area, and reduction in the number of banking offices being more than offset by an increase of 647 in serving the public; as, for example, in case a the number of branch offices. In the State of bank is acquired by a branch system and con- California the number of banks fell off in each verted into a branch office, or where a branch of these periods, the decrease being more than office is established de novo as a branch in place offset in the first period and nearly offset in the of a bank which has closed its doors. In some second period by increase in the number of States'increase in the number of branches in branch offices, so that the total number of recent years has partially offset a decrease in banking offices increased in the first period from the number of corporately independent banks, 1,213 to 1,316 and fell off slightly in the second as may be seen from the following table sumperiod to 1,300 at the end of December, 1929. marizing changes in the number of banking In other States of the branch-banking area, offices, in and outside the branch-banking area, however, decreases and increases in the number in the periods before and following passage of of banks and of branches have been in varying the McFadden Act early in 1927. proportions, and no close correspondence has been in evidence. In New York, for example, BANKING OFFICES—INCREASE OR DECREASE (—) IN THE NUMBER OF OFFICES IN AND OUTSIDE THE where the increase in number of branch offices BRANCH-BANKING AREA: 1924-1929 since the passage of the McFadden Act has been double the increase shown for California, Nuinber of banking Increase or decrease (—) Date and area offices the number of banks has remained nearly Total Banks Branches Total 11 Banks Branches constant, and this is true also of Michigan, the third State in number of branches in oper- United States: ation at the end of December, 1929. In Penn- 1924, June 31, 289 28,996 2,293 1927, Feb. 25-.. 29, 873 126, 973 2,900)-1,416'-2,023 607 sylvania the number of banks decreased over 1929, Dec. 31. _ . 28,177 24, 630 3,547! -1, 696 -2, 343 647 the whole period from June, 1924, to December, Branch banking area: 1929, by 84, and the number of branches 1924, June 13,002 10, 770 2,232 1927, Feb. 25.._ 13,110 110, 264 2,846 108 614 increased by 87; in Ohio the number of banks 1929, Dec. 31.. . 13,134 9,641 3,493 24 -623 647 fell off by 92, and the number of branches Outside branch increased by 65; in New Jersey the number banking area: 1924, June - 18, 287 18,226 61 both of banks and of branches increased by 1927, Feb. 25..- 16,763 116, 709 54t -1,524 -1,517 1929, Dec. 31... 15,043 14, 989 54I -1, 720 -1, 720 89 and 82, respectively; in Massachusetts the California: number of banks increased by 2 and the num- 1924, June 1,213 675 538 ber of branches by 63; and in Maryland the 1927, Feb. 25... 1,316 1554 762 103 -121 224 1929, Dec. 31. __ 1,300 437 863 -16 -117 101 number of banks fell off by 20 and the number Michigan: of branches increased by 36. The number of 1924, June 1,050 718 332 1927, Feb. 25... 1,140 1739 401 banking offices at the end of December, 1929, 1929, Dec. 31.., 1,182 743 439 is given, by States, in Table 4. On this date New York: 1924, June 1,482 1,120 362 approximately one-eighth of the total banking 1927, Feb. 25... 1,669 i 1,152 517 187 32 155 offices in the country as a whole were branch 1929, Dec. 31--. 1,849 1,127 722 180 -25 205 offices. i Mar. 23, 1927. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

147 APRIL, 1930 FEDERAL RESERVE BULLETIN Unit banks and chain, group, and branch ent unit banks of these classes at the end of systems.—Chain or group banking develop- December, 1929, is shown in the following ments are not reflected in changes in the num- table, which gives a corresponding classification ber of banks, since these developments repre- of loans and investments of banks. In this sent affiliation of corporately independent in- table, as elsewhere throughout the board's stitutions usually through stock ownership con- compilations, only affiliations of three or more trol, by an individual or group of individuals, banks are classified as chain or group systems. a bank or a holding company. The grouping It follows that some single banks classified as up of bank offices of national, State member, independent unit banks may be affiliated and nonmember banks in chain, group, or through stock ownership with other single branch systems, and the number of independ- banks. BANKING OFFICES AND LOANS AND INVESTMENTS IN AND OUTSIDE CHAIN, GKOUP, OR BRANCH SYSTEMS, BY CLASS OF BANK: DECEMBER 31, 1929 Banking offices—banks or branches In independent branch In chains or groups systems Classen f bank Banks operating Unit Total branches banksl Banks not Head o b p ra e n ra c t h in e g s Head offices Branches offices Branches Number Total.. 28,177 1,984 119 1,415 703 2,132 21,824 Member banks 10,848 855 83 1,150 263 1,176 7,321 National 8,430 757 45 550 121 477 6,480 State 2,418 98 38 600 142 699 841 Nonmember banks. 17,329 1,129 36 265 440 956 14,503 Loans and investments (in millions of dollars) Total 58,417 4,913 6,264 (2) 18,839 (2) 28,401 Member banks 35, 934 3,726 5,579 (2) 13,354 (2) 13,275 National 21,584 2,825 3,083 : (2) 5, 906 (2) 9,770 State _.. 14,350 901 2,496 (2) 7,448 (2) 3, 505 Nonmember banks. 22, 483 1,186 686 (2) 5, 484 (2) 15,127 1 Banks operating no branch ollices, and not affiliated with any chain or group system. 2 Included in figures for head offices. Of the 28,177 banking offices in operation at considerable in extent is composed largely of the end of December, 21,824, or approximately States which have prohibited the establishment three-fourths, were unit banks having no of branch banking offices—as, for example, in. branches and operating independently of chain Minnesota, North Dakota, Kansas, Iowa, or group systems; 2,103 were banks operating Illinois, Oklahoma, and Texas. Developments in chains or groups; 1,415 were branches of of this character have, however, by no means chain or group system banks, and 703 were been restricted to these States. In certain head offices and 2,132 were branch offices of other States, particularly in several which have branch systems operating independently of restricted the development of branch banking chain or group-system affiliations. Unit banks to the building up of home-city or local branch unaffiliated with chain or group systems and systems, as in Michigan and New York, as well operating no branch offices reported approxi- as in California, which permits state-wide branch mately one-half of the loans and investments of banking, and in Florida, Georgia, and Monall banks in the country. tana, chain or group banking has shown very Area of chain and group banking.—While considerable developments. There were in fact chain and group banking developments have relatively few States in which no affiliation of not been generally restricted by provisions in banking institutions in chain or group systems State banking codes, the area within which was reported in December, 1929. The area these developments have been relatively more within which such affiliations have been re- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

148 FEDERAL RESERVE BULLETIN APRIL, 1930 latively predominant, however, comprises the and to a relatively small number of systems— Central, Middle Western, Northwestern, and one system increasing in this period from 20 Western States. This chain or group banking to 92 banks, and one from 12 to 78 banks, area is in general relatively much more extensive while one system not in existence in June was and less clearly defined than the branch- operating in December 35 banks. Data for banking area. Data for banks in and not in June and December are given, by States, in chain or group systems, operating and not Table 7, and for the nine States showing the operating branches, are given, by States, in more considerable increases, changes during Tables 5 and 6. the last half year are summarized in the fol- As has been noted above, a number of banks lowing table: which operate branch systems, themselves operate as members of chain or group systems, and in individual instances these combined 1 Number of banks operating in ; chains or groups branch, chain, and group systems control very State large resources and an extensive network of affiliated banks and branch offices operating b D e e r, c 1 e 9 m 2 - 9 J 1 u 9 n 2 e 9 , Increase in several States and comprising national with State banks. Total... 2,103 1,821 ! 282 Minnesota 308 261; 47 Number and loans and investments of chain Michigan _ 135 86 J 49 or group systems.—At the end of December, a North Dakota.. 114 100 14 New York 102 81 I 21 total of 287 bank chains or groups were in Washington 75 59 ! 16 operation, embracing 2,103 banks, with total A M r o k n an ta s n as a .. _ 4 7 5 2 5 3 5 2 ! ! 1 1 1 3 7 loans and investments in excess of $11,000,- Massachusetts 45 33 i 12 Kentucky 16 4 : 12 000,000 or approximately one-fifth of total loans Other States 1,191 1,110 ! 81 and investments of all banks in the country. Banks operating in chain or group systems on 1 May include some banks not known to be operating in chains or groups in June. this date included 802 national, 136 State member, and 1,165 nonmember banks. Changes Size of banking chains or groups.—Chain or during the last half of 1929 are summarized group systems as reported for December, 1929, in the following table: are classified by number of banks comprised in individual systems for States in Table 8. A NUMBER AND LOANS AND INVESTMENTS OF BANKS summary of this classification is given below: OPERATING IN CHAINS OR GROUPS: JUNE AND DECEMBER, 1929 ^T , i. i i • 7 • . Number of Number of banks in chain or group system: systems 3 banks 64 Loans and invest- 4 banks 56 Numberof banks ments (millions of 5 banks 39 dollars) 6 to 9 banks 86 Class fcf bank and date 10 to 19 banks 32 Total o M o r f e g c m r h o a b u i e n p r s s s al T l o ba ta n l k , so M o r f g e c r m h o a u b i p e n r s s s 1 20 or m T o o re ta l b anks 28 1 7 0 All banks: Of the larger chain or group systems in opera- December 24,630 2,103 58,417 11,177 tion on December 31, a very considerable num- June 25,110 1,821 58,474 8,300 ber comprised one or more banks operating Member banks: December 8,522 938 35,934 9,305 branches, and while in a majority of instances June 8,707 756 35, 711 6,668 the banking offices of these systems, including National- head offices of banks with their branches, were December 7,403 802 21, 584 5,908 June 7,530 645 21,457 4,159 located in the same State as the offices of the controlling agencies, in some instances banks State- December 1,119 136 14, 350 3,397 and branches of a single system were located in June 1,177 111 14, 254 2,509 several States. One Minneapolis system con- Nonmember banks: trolled banks located in 8 States and in 4 Fed- December - 16,108 1,165 22, 483 1,872 June - 16,403 1,065 22, 763 1,632 eral reserve districts, and 1 group system with head office in New York City, with aggregate i Based largely on condition figures published in July. loans and investments in excess of $1,400,000,- Increase during the last half of 1929 in the 000 comprised two extensive branch systems in number of banks affiliated in chain or group California, 1 of 287 and 1 of 160 branch offices, systems was confined largely to nine States, and 1 branch system of 34 branches located in Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

APRIL, 1930 FEDERAL RESERVE BULLETIN 149 New York City. The system having the second CHAINS OR GROUPS WITH LOANS AND INVESTMENTS IN largest aggregate of loans and investments com- EXCESS OF $50,000,000: 1929—Continued prised 5 banks with 179 branch offices located in three States—New York, California, and Number of banking offices Dec. 31, Pennsylvania. One Detroit system, the third Loans 1929 Rank by loans and in- and inlargest in aggregate loans and investments, con- vestments and loca- vesttrolled 21 banks with 213 branches all located a ti g o e n n cy o f a n c d o n o t f r o b l a l n in k g - in m e th n o ts u , - Banks i s b n y r a st n t e h c m h e e s s S w ta o it t f h e h b o e a f a n d k M q s u ic a c h r o i t g m e a r p s n r , i i s n e a d s D e w i t n r e o re i t t w . a o ls D o o e t t t h a h e i e l r ing offices controlled s d a 1 o n 9 l 2 d la 9 s r s o 1 : f T ta o l - !j N b e r r o a a t n t i c o n h p g e - s O br p i a e n n r g c a h t- es I 1 Branches of loans and investments and number of banks 18. San Francisco: and branches is given in an accompanying table Total 146,138 for chain and group systems with loans and California 145,066 Washington. __ investments in excess of $50,000,000. 19. Buffalo: 1,072 New York 2 1 : IS 20. Ch I i l c li a n g o o is : 132, 477 3 i CHAINS OR GROUPS WITH LOANS AND INVESTMENTS IN 21. Nashville: 132, 329 """ 1""" EXCESS OF $50,000,000: 1929 Total _ 131, 308 61 s! 20 Tennessee 97,028 6 20 Arkansas. 34, 280 55 5 Number of banking offices Dec. 31, 22. Syracuse: Loans i 1929 New York 115, 559 13 1 : 13 Ra a i v t n i n g e o g k e s n n t o b m c ff y y o i e c f l n e a o t s n a s c c d n o a o s n o n n a t f d t r n r o b o d l l a o l l i l i n c n e n k a d - g - - i s d a m n a 1 n o v n 9 e d t l e d h 2 l n s a 9 s o i t t r n - 1 s u s o , - : - f I ; ! ! i ! ; _ | ' T t o a - l ! • 1 : N b e r r o a a B n t t c a o in h n p g e k - s 1 s ! ! O br p a i e n n r g c a h t- es] Branches 2 2 2 2 3 4 6 5 . . . . L J A K e o t a r T N G u l s n a o e i e e K O s n s w y o t a v a h t e r s a i g C n i l J l o : . C i l e t i . a e u . r t i . : y s c t e y : k y : y 1 9 9 7 2 0 2 4 7 5 4 , , , , , 4 9 0 3 3 2 5 8 8 4 9 4 8 2 1 6 o 1 1 4 2 1 1 1 1 1 , 0 0 • 7 ! Missouri 82,025 5 27. Seattle: New York City: Washington 6 1 , 2 Total 1, 418, 361500 I 482 28. Tulsa: New York 278, 482 35 ! 34 Total 77, 753 21 California 1,139, 879j465 448 Oklahoma 76,181 19 Xew York City: Kansas 915 1 Total _"___. 815, 684il84 ! 4 179 Texas _ 657 1 New York 550,911181 78 29. Savannah: California 225, 072 ! I 94 Total...- 67, 683 5 2 10 Pennsylvania. 39, 701 I 7 Georgia 59,951 4 1 :) Detroit: South Carolina 1 Michigan _. 705,032 ,234 j,1 21 ! 213 30. Detroit: 7,732 Boston: Michigan. _. 11 2 , 29 Massachusetts... 568, 312 20 7 31 31. Columbus: 61, 701 Chicago: Ohio. 3 1 13 Illinois 512, 669 32. Augusta: | 61, 302 Pittsburgh: Maine.._ j 7 2 •t -y Pennsylvania 458, 901 6 33. Boston: 59, 576 Buffalo: Massachusetts... 0 3 , New York.. 425,436 |! 19 j: 13 6 46 34. St. Paul: 55,785 Detroit: Total 71 Michigan 403,996 ;iO9 H 35 i 25 10 74 Minnesota 52, 932 30 ! Minneapolis: Montana 32,919 1 ! Total 339, 754 95; 92 91 1 3 North Dakota- 1,893 32| Minnesota 208,180 49! 46 45 1 3 Wisconsin 15, 233 Montana 15,116 7 7 2,887 North Dakota. 14, 875 9 i 9 9 | N So e u b t r h a s D ka akota. 3 2 5 2 , , 2 3 1 5 3 8 1 8 0I i 10 8 10 j Types of banking chains or groups.—Three Iowa 24,338 4 I i types of chain or group systems have been re- Wisconsin 8,973 Washington... 10,701 i li I • ported, which may be characterized with refer- 10. Minneapolis: Total. 339, 267 81 77 1 3 ence to the controlling agency, as follows: Minnesota 252,785 39 jj 36 i 35 1 3 (1) Instances where control is exercised by Montana 53,496 13 , 13 I1 13 North Dakota. 14, 378 15 !! 15 !, a holding corporation, which has South Dakota. 9, 727 11 j 11 i 11 Michigan 3|| usually been formed by interests X Ch e N w ic e a w g Y o o Y : r o k r k C ._ ity: 328 8 , , 8 7 8 8 1 9 74 ; l 3 r 1 2 1 71 p co ri n n n c e ip ct a e l d b w a i n t k h s on be e l o o n r g m in o g r e to o f t t h h e e Illinois 14 jj 14 j; 14 Boston: 270,719 system. Ch M ic a a s g s o a : chusetts... 194,642 18 j! 6 I 5 1 12 (2) Instances where control is exercised by Illinois 5 the principal bank of the system, Milwaukee: 171,453 Wisconsin 22 jj 18 \] 17 1 4 either through direct ownership of Pi P tt e sb n u n r s g y h lv : ania,... 168,466 8 ij 7 6 1 1 stock by the bank, or through owner- Providence: 167,180 ship by the stockholders or direc- Rhode Island 17 |i 3 2 i 1 14 153,331 tors of the bank. 1 Figures based largely on July Bankers Directory. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

150 FEDERAL RESERVE BULLETIN APRIL, 193a (3) Instances of ownership of controlling been made to group States with reference to or substantial interest in a number laws affecting the ownership of bank stock by of banks by an individual, family, holding corporations, so as to show in which or group of individuals. States the growth of chain or group systems may be retarded under such provisions. A Chain or group systems in the several States majority of the States have, in fact, adopted are classified with reference to these types of no laws specifically regulating the development control in Table 8. Recent developments have of chain or group systems. As has been noted, been conspicuously of the first and second however, developments of this character have types noted, and these developments, commonly been more or less affected by provisions in utilizing holding companies as controlling State laws relating to branch banking, and the agencies, have been distinguished in some dis- grouping of States wdth reference to their cussions as "group systems/' the designation of branch banking regulations has accordingly "chain system" being reserved for organiza- some significance for chain or group banking tions of the third type. These classifications developments. by types of control are, however, very general, State-wide branch banking is permitted in since the actual method and agency of control 9 States; the establishment of branches in the varies from system to system and may in the home city of the parent bank or in territory case of any given system be modified from time nearly contiguous thereto is permitted in 10 to time. States; the establishment of any branches, Suspension or failure of banks operating in whatever is prohibited in 22 States; and 7 chains or groups.—On the basis of the best States have enacted no legislation expressly information available, which is admittedly un- either permitting or prohibiting establishment satisfactory for earlier years, it appears that a of branches. In Kentucky, however, which is total of 226 banks, with deposits of $102,- included as one of these 7 States, the establish- 000,000, reported as belonging to 50 different ment of additional offices or agencies is perbank chains or groups suspended operations mitted under court decisions, and 28 such during the 9-year period 1921-1929. Of these offices were in operation in December; and in banks 61, with deposits of $35,000,000, were Michigan, another of these 7 States, the State subsequently reopened. banking department has raised no objection to Classification of States.—In the tables giving the establishment of home-city branches, of details by States for chain, group, and branch which there were 439 in operation at the end of banking developments, the States have been 1929. The grouping of States with reference grouped with reference to provisions in State to branch banking provisions in State banking laws permitting, restricting, or prohibiting the codes is shown on page 258 of this issue of the establishment of branches. No attempt has BULLETIN. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

APRIL, 1930 FEDERAL RESERVE BULLETIN 151 TABLE 1.—SUMMARY OF BRANCH BANKING DEVELOP- TABLE 2.—NUMBER OF BANKS OPERATING BRANCHES MENTS: 1924-1929 AND NUMBER OF BRANCHES IN OPERATION, BY STATES, FOR SPECIFIED DATES I Deo. June i Feb. I June Class of bank or branch I ' 1 3 9 1 2 , 9 1 3 9 0 2 , S 1 ; 1 2 9 5 2 , 7 1 3 9 0 2 , 4 Numb i e n r g o b f r b a a n n c k h s e s o perat-; j Numbor of branches Class of bank or State Dec. June Feb. i June ' Dec. June \ Fob. June Num T b o e t r a l o f banks: j j 24. (' 3 0 25,115 25,950 !i26,973 28,996 1 3 9 1 2 , 9 1 3 9 0 2 , 9 1 2 9 5 2 , 7 : ! 1 3 9 0 2 , 4 : i 1 3 9 1 2 . ' * 3 h 0 )2 . \) , 2 1 . 9 " 2 . 7 3 19 0 2 , 4 Operating branches | 822 818 835 I 779 714 National banks 166 164 169 , 145 108 Total 822 818 779 714 ,:-i.547 '3.440 12. 900 2. 293 State bank members. 180 190 186 ! 189 191 National 1G6 164 145 108 ! 1, 027 Wi '• 390 248 Nonmember com- State member 180 190 189 191 j 1,299 ,1,295 IL, oriO 1, 137 mercial banks 407 398 415 I 387 387 State nonmember . 407 i 398 387 , 387 1,115 i 1,046 I 863 908 M b u a t n u k a s l savings ' | 62 58 | 28 M Pr u iv tu at a e l savings.._ 65 4 i 62 4 5 8 0 | 28 99 • 96 | 76 (i) Private banks 4 7 i I STATE-WIDE BRANCH BANKING PER- Number operating MITTED branches— Only in home city.__ 518 526 ! 476 391 Only outside home Total I 216 city ! 257 252 262 J 261 283 Arizona Both in and outside j California •home city ] 48 47 i 42 40 Delaware Dist. of Columbia.. Number of parent banks j Maryland in cities with popula- ! North Carolina , tion of— I Rhode Island I 100,000 or more __; 351 359 372 353 284 South Carolina 2 5 5 0 , , 0 0 0 0 0 0 t t o o 5 1 0 0 , 0 0 ,0 0 0 0 0 . _ J , 81 8 70 4 i 6 8 6 1 I 6 6 1 5 108 V Vi e r r g m in o i n a t ' j 3 7 9 Less than 25,000 . 315 305 316 i 300 289 Not classified . 3 33 BRANCHES RESTRICTED AS TO LOCA- Number operating— TION 1 branch 448 469 446 376 2 branches 150 150 127 129 Total ! 581 : 578 ; 526 4477 J2,207 2.121 1.726 : 1.397 3-5 branches 124 126 124 Georgia ! 16 16 ~2T 2? 39 34 39 53 6 N 1 O - 1 v o 1 -3 e t 0 r 0 c b l 3 b r a 0 r a s a s n b i n c f r c i h a e h e n d s e c s h es : ! . i . 4 1 4 1 8 1 3 4 1 5 1 4 3 3 1 5 5 2 3 1 7 3 6 3 K L M M o e a a u n s i i n t s s u e a i c a c n h k a y u setts ! 8 4 2 1 8 2 4 0 : j j . 8 4 2 6 2 4 9 4 2 7 1 4 9 3 2 6 4 4 3 1 1 1 6 2 0 6 3 8 6 1 ! i 1 1 6 5 0 2 1 4 8 6 1 1 5 3 0 1 4 3 6 3 9 4 9 1 3 7 8 2 Number of branches: i M M i is c s h i i s g s a ip n pi i 6 1 2 1 j , 6 1 1 1 6 1 8 1 6 1 3 1 4 2 3 5 9 43 2 3 5 40 2 1 5 3 2 3 5 2 Tota O O O l f f f b m n e n S e r o a t r s a t n c i t i m o e a n l e b a m b a l a n b b n k e a k r n m s c k e o s m m ._ . - - . . ; i : i ; ' 1 1 1 3 , , , , 2 1 0 5 9 1 2 4 9 5 7 7 3 1 1 , , , 2 4 9 0 9 4 9 4 8 0 3 6 3 1 , ,2 2 9 9 2 3 4 7 0 0 1 3 2 1, , 5 9 8 3 6 0 9 6 0 0 0 3 2 1 , ,1 2 2 9 3 9 4 0 7 3 8 8 N N T P O e e e e h n n w w io n n e s J Y s y e s o l r e v s r e k e a y n ia ! 1 5 0 8 3 5 6 0 2 5 5 : ! ! ; 1 5 0 5 8 3 3 6 8 1 1 1 8 5 2 0 1 2 3 2 6 4 6 7 5 2 1 7 7 1 1 4 2 7 1 1 6 2 8 0 8 2 5 3 6 2 1 1 6 5 8 0 6 7 9 2 3 9 5 2 1 3 1 2 5 3 1 1 7 5 1 3 2 2 5 6 0 9 1 3 2 3 8 Of mutual savings ESTABLISHMENT OF BRANCHES PRObanks ; 99 96 86 HIBITED BY LAW* Of private banks 7 10 In home city ' 2,432 2,362 2,214 1,929 1,508 Total.. Outside home city... 1,115 1,078 1,016 971 785 Alabama Arkansas Outside branches in Florida o p f l — ac es with population ! I M nd in ia n n e a sota... 2 4 i I 4 3 9 6 ! i 6 9 8 6 • 1 1 8 1 Less than 2,500 612 591 572 Nebraska... 2 2 i 2 2 ; 2 2,500 to 5,000 - 136 133 128 Oregon 1 1 ; 1 1 i 1 5,000 to 10,000 86 84 79 Washington.. 5 5 i 5 6 ! 7 10,000 or over 281 270 237 Wisconsin... 7 9 ' 9 9 ! & Number established— De novo as branches, 2,379 2,329 2,214 \ 1,996 1 Not separately tabulated. By conversion of ; 2 Branches reported were established prior to prohibitory legislation. banks 1,017 958 853 ! 735 Other States which have prohibited establishment of branches in which Not reported 151 153 ! 163 169 no branches were in operation include Colorado, Connecticut, Idaho, Illinois, Iowa, Kansas, Missouri, Montana, Nevada, New Mexico, Texas Utah, West Virginia. States which have enacted no legislation respecting branch banking in which, also, no branches were in operation - - N M o a t r c s h e . p a 1 r 9 a 2 t 7 e . ly tabulated; included with "Stale bank nonmembers." include: New Hampshire, North Dakota, Oklahoma, South Dakota, 'c M utual savings and private banks. and Wyoming. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

152 FEDERAL RESERVE BULLETIN APRIL, 1930 TABLE 3.—NUMBER OF BANKS OPERATING BRANCHES AND NUMBER OF BRANCHES IN OPERATION, BY CLASS OF BANK, BY STATES: DECEMBER 31, 1929 Number of banks operating branches Number of branches Operated by- Location i States State Non- Total National member member Total N b a a ti n o k n s al me S b m a ta n b t k e ers m b N e a m o n n k b - s er l | office city Total. 822 166 180 476 3,547 i 1,027 1,221 2,432 1,113 STATE-WIDE BRANCH BANKING PERMITTED Total 216 37 23 156 1,286 526 189 , 571 475 811 Arizona 7 I 2 5 22 12 10 22 California 53 ! 12 5 36 863 480 105 278 318 545 Delaware 2 5 13 ' 2 11 3 10 District of Columbia. 6 6 24 I "12" 12 24 Maryland 30 ! 3 2 25 124 "24" 92 m 56 North Carolina 39 ! 3 3 33 77 • 7 66 11 Rhode Island 11 2 4 5 35 26 7 16 19 South Carolina 3 2 6 57 : 2 47 3 49 Vermont 7 10 10 10 Virginia _ 8 3 28 61 : 12 38 27 34 BRANCHES RESTRICTED AS TO LOCATION Total... 581 151 2,207 484 624 1,930 Georgia 16 39 21 4 14 16 23 Kentucky 10 28 10 14 4 25 3 Louisiana 42 106 35 63 49 Maine 24 63 3 60 6 Massachusetts 88 161 27 71 142 19 Michigan 62 439 72 309 58 436 3 Mississippi 11 25 1 24 1 24 New Jersey 55 103 33 39 31 93 10 New York 106 722 189 • 463 70 721 Ohio 55 268 19 167 82 235 33 Pennsylvania. 80 185 43 ! 38 104 176 Tennessee 32 25 43 30 38 ESTABLISHMENT OF BRANCHES PROHIBITED BY LAW 1 Total. 25 54 27 i Alabama 4 ! Arkansas 2 ! Indiana 2 • Minnesota.. Nebraska... Oregon "Washington Wisconsin... | 1 Of the 2,432 branches located in head-office cities, 687 were operated by national banks, 1,163 by State bank members, and 582 by nonmember banks. Of the 1,115 branches located outside head-office cities, 340 were operated by national banks, 136 by State bank members, and 639 by nonmember banks. 2 Branches reported were established prior to prohibitory legislation. See note 2 attached to Table 2. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

153 APRIL, 1930 FEDERAL RESERVE BULLETIN TABLE 4.—BANKS IN CHAINS OR GROUPS, OPERATING AND NOT OPERATING BRANCH OFFICES, NUMBER OF BRANCHES, AND TOTAL OF BANKING OFFICES (BANKS PLUS BRANCHES), BY STATES: DECEMBER 31, 1929 Banks in chains or groups Banks not in chains or groups Total State N of u b m a b n e k r s j | ! o N p u er m at b i e n r g; ! Operating branches j ! Total o N pe u r m at b in er g Operating branches n T um o o t f b a e l r i ( n o n b g f u r a m b o n a f b c f n i h e c k r e e - s s 1 n T u o m ta b l er ! bra n n o ches Number Number ! number j bra n n o ches Number , Number \ branches ba p n lu k s s) branches \ | branches: ! i Total.. 21,630 2,103 1,984 119 1, 415 22, 527 I 21,824 703 i 2,132 i 3,547 | 28,177 STATE-WIDE BRANCH BANKING PERMITTED Total.. 2, 045 64 ! 54 10 562 1,981 1,775 2C6 724 1, 286 3,331 Arizona -- 46 6 : 6 i 40 33 7 ; 22 22 68 California 437 49 41 . 8 547 388 343 45 | 316 863 1,300 Delaware.. _ 47 i 3 : 3 ! 44 37 7 13 13 60 District of Columbia 41 : 41 ! 29 12 j 24 24 65 Maryland 230 1 230 30 124 124 354 N Rh o o rt d h e C Is a l r a o n l d ina _ 41 3 6 3 3 i ii ! 14 41 3 6 0 20 3 1 9 0 2 7 1 7 7 3 7 5 49 6 3 8 South Carolina 217 1 215 1 205 10 ; 56 57 274 V Vi e r r g m in o i n a t 4 10 7 4 4 1 1 i 4 1 7 0 4 3 43 9 5 6 3 7 9 : . 6 1 1 0 6 1 1 0 5 1 3 1 5 4 i 1 BRANCHES RESTRICTED AS TO LOCATION 836 7,C87 ; 6, 610 477 1,371 2, 207 ! Georgia 2 19 383 '' 369 20 39 444 Kentucky 3 13 556 ! 549 15 ; 28 600 Louisiana. 2 9 215 ' 175 40 97 106 331 Maine 5 21 121 1 102 19 42 : 63 196 Massachusetts 13 53 405 j 330 75 108 : 161 611 Michigan 26 353 608 , 572 36 86 : 439 1,182 Mississippi 1 2 287 i 277 10 23 ' 25 333 New Jersey. 13 27 508 ' 466 42 76 ! 103 671 New York. 18 271 1,025 ! 937 4.51 i 722 1,849 Ohio 3 18 1,009 j 957 250 , 268 1,283 Pennsylvania. 7 13 1,518 1,445 73 1/2 : 185 1, 751 Tennessee. 11 37 452 ! 431 21 31 68 552 ESTABLISHMENT OF BRANCHES PROHIBITED 12,106 20 37 i 54 ! 13,418 Alabama. 19 ! 19 ' 369 Arkansas. 3| 3 ! 418 Colorado. 274 Connecticut. 237 Florida.. 235 Idaho.. 137 Illinois. 1 1,765 Indiana- 3 4 | 9 978 Iowa. 1,257 Kansas_ 1,069 Minnesota.. 6 1,052 Missouri. 1,277 Montana. 195 Nebraska- 2 2 2 806 Nevada.. 35 New Mexico.. 56 T O e re x g a o s. n- 1 l\ 1 1, 2 3 3 0 5 8 Utah. l 104 Washington. 2 3 j 5 345 West Virginia. 297 Wisconsin. 969 NO PROVISION IN STATE LAW REGARDING BRANCH BANKING Total 1, 625 292 292 1,333 1,333 1, 625 New Hampshire 123 123 123 123 North Dakota... 412 114 114 298 298 412 Oklahoma 617 85 85 532 532 617 South Dakota... 387 61 61 326 326 387 Wyoming _. 32 32 54 54 86 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

154 FEDERAL RESERVE BULLETIN APRIL, 1930 TABLE 5.—LOANS AND INVESTMENTS OP BANKS IN AND NOT IN CHAIN OR GROUP SYSTEMS, OPERATING AND NOT OPERATING BRANCHES, BY STATES: DECEMBER 31, 1929 [In millions of dollars] i Banks in chains or groups Banks not in chains or groups State All banks Total | Operating \ Operating Total Operating Operating no branches' branches no branches branches 1 Total.. 58,417 11,177 | 4,913 | 6,264 47,240 28,401 18,839 i STATE-WIDE BRANCH BANKING PERMITTED Total 6,623 1,709 213 1,496 4,914 2,326 2,588 Arizona.. 81 18 ! 18 63 38 25 California------ 3.420 1,528 •• 178 1,350 1,892 553 1,339 Delaware 167 1 1 166 60 106 District of Columbia 245 245 98 147 Maryland.. 837 837 521 316 North Carolina 370 370 219 151 Rhode Island 533 153 ! II 142 380 147 233 South Carolina 169 8 ' 4 4 161 i 108 55 Vermont- 250 1 1 249 | 222 27 Virginia 551 551 ! 360 191 BRANCHES RESTRICTED AS TO LOCATION Total.... 36,642 '. 5, 986 i | 1,624 4,362 30, 656 14, 500 16,156 Georgia 334 , 166 35 131 168 136 32 Kentucky 554 ji 124 37 87 430 360 70 Louisiana 429 j| 33 17 16 396 165 231 Maine 433 ! 70 21 49 363 282 81 Massachusetts 4,225 i| 871 91 780 3,354 2,311 1,043 Michigan 2,021 i| 1,262 302 960 759 534 225 Mississippi— 212 |i 15 12 3 197 170 27 New Jersey 2,388 h 396 160 236 1,992 1,163 829 New York 17,222 I; 2,011 226 1,785 15, 211 4,849 10,362 Ohio... 2,691 i: 86 32 54 2,605 1,226 1,379 Pennsylvania.. 5,703 ! 803 668 135 4,900 3,093 1,807 Tennessee 430 ', 149 23 126 281 211 70 ESTABLISHMENT OF BRANCHES PROHIBITED Total... 14,130 3,252 2,846 406 10, 878 10, 785 93 Alabama 282 32 32 250 237 13 Arkansas 198 50 50 148 146 2 Colorado 262 30 30 232 232 Connecticut._ 1,336 37 37 1,299 1,299 Florida _ 258 134 134 124 124 Idaho 81 37 37 44 44 Illinois.- 3,802 1,212 1,212 2,590 2,590 Indiana 863 41 19 22 822 796 26 Iowa 782 90 90 692 692 Kansas 404 46 46 358 358 Minnesota 901 583 402 181 318 318 Missouri 1,199 158 158 1,041 1,041 Montana 144 81 81 63 63 Nebraska 359 62 62 297 289 8 Nevada 38 20 20 18 18 New Mexico.. 41 3 3 38 38 Oregon 260 82 82 178 177 1 Texas 1,036 104 104 932 932 Utah 162 50 50 112 112 Washington.. 460 188 120 68 272 269 3 West Virginia 345 345 345 Wisconsin 917 212 77 135 705 665 40 i NO PROVISION IN STATE LAW REGARDING BRANCH BANKING i Total 1,019 230 230 789 ! 789 New TTfvmpshirp • 311 311 1 311 i North Dakota 1 112 58 58 54 : 54 1 Oklahoma __ .._ 401 i 103 103 298 I 298 South Dakota 187 47 i 47 90 • 90 Wyoming . . .. | 58 22 1 22 36 : 36 1 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

APRIL, 1930 FEDERAL RESERVE BULLETIN 155 TABLE 6.—NUMBER AND LOANS AND INVESTMENTS OF MEMBER BANKS IN AND NOT IN CHAIN OR GROUP SYS- TEMS, OPERATING AND NOT OPERATING BRANCHES, BY STATES: DECEMBER 31, 1929 [Amounts in millions of dollars] Number of member banks Loans and investments of member banks In chains or groups j Not in chains or groups In chains or groups £ j Not in chains or groups State i Total !• Operat- Operat- Operat- Opera Total Operat-1 Operat- j i Opeiat- Operat- Total i•n' g no ing Total ing no ing Total ing no i ing Total I ing no ing branches branches branches branches branches branches [branches branches Total ! 8,522 \\ 938 855 83 7,584 7,321 35,934 9,305 3,726 ; 5,579 126,629 13,275 13,354 STATE-WIDE BRANCH BANKING PERMITTED 710 35 30 | 5 675 620 55 , 4,106 1,336 176 1,160 2,770 1,106 1,664 Total 17 1 I 1 i W 14 2 42 6 ; 36 1 21 15 A Ca ri l z if o o n r a n ia - __ « i 30 ij 26 ; 4 1 2 8 0 7 17 1 4 8 1 2 3 . • ' 2,47 8 4 0 1,177 159 i 1,018 1,29 S 7 O i 3 3 5 3 0 94 4 7 7 Delaware -- 12 12 6 6 ' 127 197 45 82 District of Columbia. _ 85 | ; | 85 80 5 322 322 158 164 Maryland 72 1 i | 72 66 6 174 1 174 117 57 North Carolina _ 14; 2 ;' i | I 12 7 5 i 328 ! 149 7 ! 142 179 25 154 Rhode Island _. 55 ' 1 •! 1 i . . 54 '• 49 5 I 98 I 3 ' 3 95 1 53 42 South Carolina 46 ! i ; I !. 45 45 ! 70 1 1 69 ; 69 Vermont 172 ; :! 1 172 161 11 i 391 I 391 935 156 Virginia :!"" I 1 BRANCHES RESTRICTED AS TO LOCATION Total. -I 3,315 277 i 204 73 i 3,038 ! 2,8 199 22,707 5,219 1,207 4,012 17, 5,859 11,629 Georgia i 115 11 3 101 97 ' 4 245 164 29 81 69 12 Kentucky : 145 9 133 130 3 328 118 31 210 148 62 Louisiana '' 42 5 1 36 30 i 6 283 30 1 17 253 87 166 Maine 1 55 5 50 49 , 1 145 15 15 130 127 3 Massachusetts ! 177 24 10 143 120 ! 23 1,691 835 71 856 381 475 Michigan | 273 32 21 220 200 ' 20 1,460 1,074 143 386 224 162 N M e i w ss i J s e si r p s p e i y .. ; j 36 3 4 8 40 32 2 3 3 2 6 4 29 3 5 5 I ; 29 1 1,52 7 5 7 207 8 i 109 1,3 6 1 9 8 7 6 0 8 9 60 1 9 New York 70 55 596 542 j 54 11,005 1,862 170 1,692 9,143 1,207 7,936 Ohio 388 ; 2 i 383 358 25 1,958 84 30 54 I 118,87744 711 1,163 Pennsylvania 21 I 923 894 ! 29 3,705 717 589 128 I 2,988 2,005 983 Tennessee 104 93 89; 4 285 105 6 99 I 180 123 57 ESTABLISHMENT OF BRANCHES PROHIBITED 3,895 483 478 5 3,412 i 3,403 9 8,544 2, 557 ! 2,150 407 5,987 5,926 61 Alabama 119 13 13 106 ! 105 1 211 31 ! 31 180 180 0) Arkansas 94 17 17 77 77 125 ! 33 1 33 92 92 Colorado 123 11 11 112 112 218 23 195 195 Connecticut. _. 67 4 4 63 63 306 1 4 4 302 302 Florida 61 19 19 42 42 164 ! 120 120 44 44 Idaho 60 15 15 45 45 54 1 26 26 28 28 Illinois _ 544 29 29 515 515 2,575 i 919 919 1,656 1,656 Indiana 234 4 3 1 230 229 1 436 ! 27 5 22 409 397 12 Iowa 291 34 34 257 ; 257 350 ! 69 69 281 281 Kansas 252 25 25 227 227 203 26 26 177 177 Minnesota 276 134 132 2 142 142 535 469 288 181 66 66 Missouri 187 14 14 173 173 856 137 137 719 719 Montana _. 88 21 67 67 113 69 i 09 44 44 Nebraska 160 1 22 138 136 2 190 46 40 144 136 8 Nevada 10 3 7 1 7 18 8 8 10 10 New Mexico... 29 4 5 24 24 30 2 2 28 28 Oregon 120 23 97 ! 96 1 214 74 74 140 139 1 Texas.__ _ 689 28 28 661 1 661 861 92 ! 92 769 769 Utah 42 10 10 32 32 86 32 32 54 54 Washington.... 146 31 30 1 115 1 114 1 317 169 100 69 148 146 2 West Virginia- 131 131 i 131 202 202 202 Wisconsin 172 20 1 151 1 148 3 480 181 1 46 135 299 261 38 I NO PROVISION IN STATE LAW ]REGARDING BRANCH BANKING Total 602 143 143 459 459 578 193 193 385 385 New Hampshire 57 57 57 73 73 73 North Dakota 122 44 44 78 78 71 44 44 27 27 Oklahoma 294 55 55 239 239 331 97 97 234 234 South Dakota 101 34 34 67 67 69 37 "37 32 32 Wyoming .. 28 10 10 18 18 34 15 15 19 19 I 1 Less than $500,000. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

156 FEDEEAL RESERVE BULLETIN APRIL, 1930 TABLE 7- -NATIONAL, STATE MEMBER, AND NONMEMBER BANKS IN CHAIN OR GROUP SYSTEMS—NUMBER AND LOANS AND INVESTMENTS, BY STATES: JUNE AND DECEMBER, 1929 [Amounts in millions of dollars] Number of banks iri chains and groups Loans andinvestments of banks in chains or groups i State Total N ational State member Nonmember Total National State member Nonmember Dec. June , Dec. June Dec. June Dec. June Dec. June ' Dec. June Dec. June Dec. June 1 ! Total 2; 103 1,821 802 645 136 111 1,165 1,065 11,177 1 8,300 5,908 4,159 3,397 2,509 1,872 1,632 • STATE-WIDE BRANCH BANKING PERMITTED Total. 64 65 33 33 29 28 1 1,709 969. 864 367 368 371 423 Arizona 5 i 5 . 18 18 i' 6 6 !. 12 12 California 19 18 1,528 1,476 952 848 I 225 226 350 402 Delaware.. 3 '• 3 1 1 1 1 District of Columbia. Maryland. North Carolina Rhode Island 1 ; 153 153 j! 142 142 South Carolina 1 : Vermont Virginia BRANCHES RESTRICTED AS TO LOCATION Total. 509 387 193 143 84 62 | 232 182 i 5,986 ! 4,002277 2, 604 1,581 j 2,617 j 1.S76 j 770 , 573 Georgia.. 22 20 I 166 157 144 143 j Kentucky 16 4 2 124 , K 78 Louisiana 10 6 33 33 30 30 i 3 ! 3 M M M M N N O Pe h e e i i a a n w s w c i s i o s h n n s i e i s a J Y s g e y c s o a r i l h s p n v r u e k p a j s i r n e i t a ts .. . . . 1 1 4 4 6 2 3 0 1 5 8 6 0 1 5 2 2 3 8 8 4 2 5 3 6 1 8 1 6 i i i i 2 5 11 6 2 5 2 ? I ! j j! ! 4 2 1 1 5 9 9 2 2 5 5 ; i ' 2 1 1 1 5 4 8 0 7 3 1 1 1 1 2 6 6 4 0 6 2 2 1 1 5 0 3 9 7 ! j 2 1 , , 0 2 8 3 8 7 9 1 0 7 6 1 : 6 3 0 1 2 5 1, 4 5 5 3 7 5 2 3 5 7 8 7 5 1 8 0 8 1 2 3 1 5 7 3 3 6 6 6 4 2 9 3 1 6 2 4 4 7 1 5 8 2 3 5 2 8 4 9 7 1 1 1 8 6 0 4 i l i ' ! • 1,2 1 3 3 7 0 5 8 9 4 4 | I 8 3 2 3 6 7 4 2 5 1 6 8 5 2 j ! i : ! 1 1 1 3 5 8 4 9 8 6 8 5 8 9 0 6 • • i , ' I 1 1 4 2 3 5 8 3 8 5 4 9 4 Tennessee 32 23 11 I 8 . 15 149 92 105 62 ; 44 30 i I:STABLISHMENT OF BRANCHES PROHIBITED 1 Total 1,238 | 1,101! 438 361 45 40 755 700 3,254 2,416 2,145 1,552 411 262 696 599 Alabama 22 ' 19 13 10 9 9 32 7 31 7 1 1 Arkansas 79 55 15 10 2 2 55 43 50 41 22 15 11 11 17 14 C Co o n lo n r e a c d ti o c . u . t 16 8 16 1 4 1 11 I 5 3 3 0 7 30 2 4 3 23 33 7 7 Florida 40 4X 19 14 21 29 134 129 120 94 14 35 Idaho . 41 41 11 11 4 4 26 26 37 37 17 17 9 9 n 11 Illinois 84 i 79 20 19 9 8 55 52 1,212 996 729 663 190 61 293 271 Indiana. . .. . 17 j 10 2 1 1 13 41 30 4 22 22 14 3 Iowa 87 83 33 31 1 1 53 51 90 73 68 51 1 1 21 21 Kansas... 88 i 85 24 22 1 1 63 62 46 44 24 22 1 20 20 Minnesota 308 j 261 • 132 103 2 2 174 156 584 269 467 194 2 2 115 74 Missouri 36 1 34 9 9 5 5 22 20 158 157 26 26 111 111 20 20 Montana. 45 32 16 8 5 3 24 21 81 45 41 13 29 23 12 9 Nebraska 73 68 22 18 51 50 62 27 46 14 16 13 Nevada. 13 16 3 4 10 12 20 23 1 8 9 12 14 New Mexico 8 5 5 4 3 3 3 2 2 1 Oregon . _ 36 33 18 16 5 5i 13 12 82 82 71 69 3 3 8 10 Texas 84 79 25 21 3 3 56 55 101 89 78 62 14 14 12 12 Utah 26 27 (\ 6 4 4 16 17 50 50 29 29 3 3 18 18 Washington 75 • 59 28 22 3 1 44 36 189 79 154 G3 15 1 20 15 West Virginia Wisconsin 58 • 53 21 19 37 34 212 205 181 : 175 31 30 i NO PROVISION IN STATE LAW REGARDING BRANCH BANKING j Total ! 292 268 138 108 5 5 149 155 230 201 192 162 2 2 35 i 36 New Hampshire | North Dakota 114 100 44 30 70 70 58 44 44 30 14 : 14 Oklahoma ! 85 82 54 45 1 1 30 36 103 96 97 89 6 i 7 South Dakota .. . ... 61 54 31 24 3 3 27 27 47 '• 39 '< 36 28 2 . 2 9 1 9 W yoming ..... • 32 32 9 9 1 1 22 22 22 | 22 15 15 6 1 6 1 Based largely on figures taken from the Bankers Directory for June, 1929. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

APRIL, 1930 FEDERAL RESERVE BULLETIN 157 TABLE 8.—SIZE OF CHAIN OR GROUP SYSTEMS AND CHARACTER OF CONTROLLING AGENCY, BY STATES: DECEMBER 31, 1929 Bank chains or groups Number comprising— Controlled by- State Maxi- Total ! number , 3 banks 4 banks 5 banks b 6 a t n o k s 9 1 b 0 a n to k s 19 m 20 o r o e r m si u ze m 1 H p c o a o l n d m i i e n - s g Banks Ind ua iv ls id- Total 287 64 56 39 86 32 10 92 53 44 190 STATE-WIDE BRANCH BANKING PERMITTED Total 8 3 1 3 1 17 3 1 4 Arizona. 1 1 6 1 California. 5 I 1 2 1 17 3 2 Delaware.. _ _ 1 1 3 1 District of Columbia Maryland North Carolina - _- - Rhode Island _ 1 1 3 1 South Carolina Vermont Virginia BRANCHES RESTRICTED AS TO LOCATION Total.. 84 30 15 10 17 8 4 66 25 29 30 Georgia 5 2 1 2 7 1 1 3 Kentucky _ 3 1 1 1 9 2 1 Louisiana 2 1 1 6 2 Maine __ 2 1 1 9 1 1 Massachusetts.._ 5 1 3 i 20 3 1 1 Michigan 11 1 1 3 1 3 2 35 3 8 Mississippi . _ „ 3 1 1 1 10 1 2 New Jersey 15 10 2 1 2 9 1 10 4 New York 20 4 3 3 3 12 2 6 Ohio. _. 2 2 4 1 1 Pennsylvania. _ 12 ; 7 2 1 2 1 - 4 Tennessee 4 i 2 l ; l 66 3 1 ESTABLISHMENT OF BRANCHES PROHIBITED Total 171 28 38 23 57 20 5 92 24 14 133 Alabama 4 I 1 1 1 1 10 1 2 1 Arkansas.. 3 1 1 1 11 3 Colorado 3 j 1 1 1 8 3 Connecticut 1 1 7 1 Florida 2 4 8 1 5 Idaho 3 ! I 1 I ! 10 1 2 Illinois _. . 12 1 2 2 5 2 ' 16 3 9 Indiana 3 2 1 1 1 Iowa 12 2 5 1 4 17 12 Kansas._ 19 4 6 3 6 7 19 Minnesota .. 37 4 7 18 4 3 92 3 34 Missouri 1 2 3 9 1 6 Montana.. . 2 2 8 2 Nebraska ... 10 4 1 3 2 10 10 Nevada _ 1 1 12 1 New Mexico _ 2 i 1 1 5 1 1 Oregon _. 1 4 1 1 1 10 5 2 Texas _ 16 ! 4 2 4 1 12 1 1 14 Utah . 5 1 2 1 25 1 1 3 Washington 12 i 5 o 1 1 1 1 22 5 West Virginia Wisconsin 6 1 3 1 1 18 1 5 NO PROVISION IN STATE LAW REGARDING BRANCH BANKING Total 24 3 2 6 9 3 1 21 i 1 23 New Hampshire i North Dakota 0 1 1 9 2 14 6 Oklahoma 8 1 2 1 1 21 ! 1 7 South Dakota . 5 1 4 5 Wyoming _ _ 5 1 2 2 5 : 5 1 Maximum number of banks in any single chain or group system. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

158 FEDERAL RESERVE BULLETIN APRIL, 1930 NATIONAL SUMMARY OF BUSINESS CONDITIONS [Compiled March 21 and released for publication March 24] Industrial production increased in February, seasonal increase was reported during early while the number of workers employed in fac- March. Department-store sales in February tories was about the same as in January. continued to be below the level of a year ago. Wholesale commodity prices continued to Prices.—Wholesale prices of commodities decline. Credit extended by member banks declined further during February, and the was further reduced in February, but increased Bureau of Labor Statistics index at 92.1 per in the first two weeks of March. Money rates cent of the 1926 average was at the lowest point continued to decline. since January, 1922. Marked declines oc- Production.—In February industrial produc- curred during the month in the prices of many tion increased about 2 per cent according to agricultural products—grains, hides, raw wool, the board's index, which is adjusted to allow and cotton; in certain imported raw materials, for seasonal variations. This increase reflected notably sugar and silk; and also in textiles, chiefly a substantial gain in the output of iron petroleum, and pig iron. and steel. Automobile production was in During the first part of March, a number of larger volume than during January but was 30 these commodities declined still further in per cent smaller than the large output of a price. Wheat and cotton prices were conyear ago. Cotton and wool consumption by siderably lower, and silver reached the lowest mills was substantially lower in February, and point on record. By the middle of the month, production of bituminous coal and copper also however, prices of cotton, hides, and silver had decreased. recovered somewhat. In the first two weeks of March the output Bank credit.—Liquidation of credit at memof steel mills declined in comparison with ber banks continued throughout February, and February, contrary to the usual seasonal move- on February 26 total loans and investments of ment. Bituminous coal output also was smaller. member banks in leading cities were in about The volume of building contracts awarded in the same volume as in the early summer of February was about the same as in the preced- last year. During the following two weeks, ing month, according to the F. W. Dodge however, there was an increase of $230,000,000 Corporation. Residential building continued in loans and investments, chiefly in loans on at an exceptionally low level, while contracts securities. All other loans, largely for commerfor public works and utilities were large in cial purposes, increased slightly. comparison with the corresponding month in From the middle of February to the middle other recent years. Awards in the first two of March the volume of reserve-bank credit wreeks of March were larger than in the first outstanding decreased further by $90,000,000. half of February. This decline reflected chiefly an increase in Employment.—The volume of factory em- gold stock of $75,000,000 and a further decline ployment, which had reached a low point in of money in circulation, offset in part by some January, showed little change in February, increase in member-bank reserve balances. when an increase usually occurs. Factory pay Member-bank indebtedness at the reserve rolls increased during the month, but by a banks declined to $267,000,000, the lowest level smaller amount than is usual at this season. since early in 1925; reserve-bank holdings of In the steel, automobile, agricultural imple- bills declined, while those of United States ment, and tobacco industries, employment in- securities increased. creased during the 4-week period, while further Money rates in the open market eased furdecreases occurred in the cotton and wool ther, and bond yields declined rapidly to the textile, lumber, automobile tire, electrical ma- lowest level since 1928. At the middle of chinery, and machine-tool industries. March the discount rate at the Federal Reserve Distribution.—Freight car-loadings on an Bank of New York wras reduced from 4 to 3}i average daily basis were slightly larger than per cent, and the rate at the Cleveland, Philain January, but smaller than in the correspond- delphia, and San Francisco banks from 4}£ to ing month of any other recent year. Slight 4 per cent. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

159 FEDERAL RESERVE BULLETIN FEDERAL RESERVE BANK CREDIT RESERVE BANK CREDIT OUTSTANDING AND PRINCIPAL FACTORS IN CHANGES MILLIONS OF DOLLARS MILLIONS OF DOLLARS 5W0 5<t00 5200 5200 5000 5000 4800 ^800 4600 200 1926 1927 1928 1929 1930 Based on weekly averages of daily figures; latest figuresare for week ending March 29 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

160 FEDERAL RESERVE BULLETIN APRIL, 1930 RESERVE BANK CREDIT OUTSTANDING AND FACTORS IN CHANGES [Averages of daily figures. In millions of dollars] i Reserve bank credit outstanding Factors of decrease Factors of increase < Month or week Bills dis- Bills United r O es t e h r e v r e ea Money M b e a m n b k e r I j m N em on b - e r ! j p U e n n e d x e - d counted bought se oQ cu itoa r tiO i e t Gs ies c b re a d n i k t« Total lock ~ in l a c t i i r o c n u- b r a e l s a e n r c v e e s I , b c a le l a a r n i c n e g s j j c f a u p n i d ta s l j 1928—December 1,013 483 263 1,824 4,142 1,790 5,008 2,367 29 I 352 1929—January 859 473 229 1,613 4,115 1,789 4,748 2,387 i 31 ' 351 February 889 385 184 1,502 4,143 1,784 4,686 2,357 29 ! 357 March 969 265 197 1,481 4,166 1,791 4,709 2,337 31 361 April 1,004 156 165 1,377 4,226 1,785 4,679 35 i 366 May 956 145 153 1,303 4,292 1,787 4,684 2,296 32 I 370 June 978 99 179 1,317 4,311 1,779 4,687 2,314 30 ' 376 July 1,096 75 147 1,380 4,335 1,790 4,764 2,334 31 j 376 August 1,043 124 155 1,376 4,351 1,781 4,777 2,322 27 ! 382 September 969 229 165 1,427 4,368 1,766 4,811 2,335 28 : 387 October.. 885 337 154 1,450 ! 4,381 1,785 i 4,810 2,386 28 ! 392 November 953 296 315 1,631 ' 4,374 1,789 I 4,845 2,521 33 ! 395 December 803 320 446 1,643 I 4,324 1,797 ! 4,943 2,395 27 I 399 1930—January 501 314 485 1, 357 j 4,283 1,784 ! 4,652 2,349 29 i 394 February 378 285 480 1,181 I 4,319 1,781 i 4, 556 2,305 '27 ! '393 March 274 246 540 1,095 i 4,395 1,797 | 4,533 2,330 27 | 397 Week ending (Saturday)— Mar. 1 360 289 482 1,165 j 4,344 1,765 ! 4,548 2,307 25 I 394 Mar. 8 329 261 494 1,126 i 4,364 1,797 4, 564 2,303 : 27 I 393 Mar. 15 267 238 554 1,095 4,388 1,810 4,535 2,337 28 i 393 Mar. 22 246 209 593 1,078 I 4,407 1,805 4,517 2,348 28; 397 Mar. 29 230 261 528 1,053 ! 4,419 1,786 4,505 2,326 27 i 400 1 For explanation see BULLETIN for July, 1929, pp. 432-438. r Revised. 2 Includes "other securities," amounts due from foreign banks, and reserve bank float; for explanation see BULLETIN for July, 1929. 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 (—) luring 1930 1929 month Gold Month a s t t o e c n k d Through ThroughThrough From or to— M li a m rc i h n ar ( y p ) re- February Janu r a u r a y r - y Febof net gold ear- domestic month Total import marking producor opera- tion, Im- Ex- Im- Ex- Im- ! Exexport tions etc.* ports ports ports ports ports ! ports 1928—February 4,362 -11.2 -11.1 2.9 -3.0 England 1 2 i March 4,305 -57.6 -94.9 35.8 1.5 France ._ 20 i 8,497 April 4,266 —38.7 —91.2 45.7 6.8 Germany 1 10 23 : 136 May _ 4,160 -105. 7 -81.7 -26.5 2.5 Italy June 4,109 —51.0 -79.9 30.1 -1.2 Netherlands July . _ 4,113 3.4 -63.9 60.9 6.4 Canada 2,629 ' 10 5,787 46 August 4,123 10.3 0.7 5.9 3.7 Central America 184 i • 513 September 4,125 2.1 0.5 —1.2 2.8 Mexico 1,491 i 178 2,479 414 October. 4,142 17.3 13.3 1.2 2.8 Argentina 297 : 297 November 4,128 -14.0 6.7 -25.0 4.3 Brazil _ 5,327 11 823 ; 17 253 December _ 4,141 13.2 23.3 -15.7 5.6 Chile 17 45 . . Colombia _ 1,007 71 _ 1.285 Total (12mos.)_. -237.9 -392. 0 119.6 34.5 Ecuador 144 i 257 Peru 80 418 . 1929— F J e a b nu ru ar a y ry 4 4 , , 1 1 2 5 7 3 — 2 1 6 4 . . 4 4 ! ' 4 25 7 . .2 5 -65.0 3 . . 9 4 V B e ri n t e is z h u e I l n a dia '• 37 85 March 4,188 34.4 24.8 7.5 2.1 China and Hong i April 4,260 72.4 23.1 48.6 0.7 Kong 4,584 119 : 9 841 22 May . 4,301 40.6 23.6 16.1 0.9 Dutch East Indies.. 123 ; 241 June 4,324 23.4 30.2 -7.5 0.7 Japan 36,355 40,906 : ' 40,906 July 4,341 16.3 34.7 -22.0 3.6 Philippine Islands 220 467 August 4,360 18.9 18.4 —1.0 1.5 New Zealand _ • 17 ] 39 September 4,372 12.1 17.6 -6.6 1.1 All other countries.. 1622 1391 2,039 i ! 2,120 -40 October 4,386 14.4 17.5 -4.5 1.4 November 4,366 -19.8 -23.2 1.0 2.4 Total _.247,895 391 | 60,198 i • 207 73,106 0,155 December 4,284 -82.3 -64.4 -22.0 4.1 Total (12mos.)_. 142.4 175.1 -55.4 22.7 1 Includes all movements of unreported origin or destination. 2 At New York—imports, $6,956,000; exports, $391,000. Elsewhere- 1930—January 4,293 8.8 - 4.0 2.5 2.3 imports, $40,939,000. February. . _ _ 4,355 61.9 60.0 0.0 1.9 March *> 4,421 66.8 47.5 13.0 6.3 1 For explanation of this figure, which is derived from preceding columns, see BULLETIN for December, 1928, p. 831. ^Preliminary. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

APRIL, 1930 FEDERAL RESERVE BULLETIN 161 MEMBER BANK BORROWINGS AT FEDERAL RESERVE BANKS [Monthly averages of weekly figures. In millions of dollars] ! Reporting member banks in leading cities Member banks Total i Other leading cities outside leading Month or date ! Total New York City cities » To;al Chicago 1929 1930 : 1929 1930 ; 1929 1930 1929 1930 1929 1930 1929 1930 January 891 462 1 663 247 190 39 ' 473 • 208 : 71 7 228 215 February _ 893 371 j 659 174 131 21 528 : 153 i 96 1 234 197 March 978 247 740 81 166 1 574 ' 80 121 238 166 April . 991 725 ,- 162 563 46 266 May 951 i 661 : 145 516 ! 36 290 June 972 1 670 165 505 : 64 302 July.. 1,100 1 801 ! 319 482 : ! 47 299 August 1 013 717 196 521 : 32 296 September 974 ; 706 i 166 540 ; 18 268 October 885 634 74 j 560 • > 38 251 November 944 655 i 60 595 ; 28 289 December 755 490 ' 80 ! 410 • 37 265 1 i j i Includes (in small amounts) discounts by Federal reserve banks for nonmembers: (1) bills discounted for intermediate credit banks and (2) notes secured by adjusted service certificates discounted for nonmember banks. FEDERAL RESERVE BANK RATES OPEN-MARKET RATES DISCOUNT RATES RATES IN NEW YORK CITY [Rates on all classes and maturities of eligible paper] Prevailing rate on- Average rate Averagejield Rate in Date Previous Federal reserve bank effect on estab- rate ; Apr. 1 lished Call loans 1 U.S. Prime Treas- Month or week j bank- i ury Boston Feb. 13 I m c e o r m ica - l ac e c r e s p ' t- i : l T o i a m ns e , n a o n t d es T u re ry as- N P C h l e e i w v la e d Y la e o n lp r d k hia- 4 4 M M Ma a a r r r . . . 1 2 1 4 0 5 • ! ! m p 4 a o t p o n e t 6 r h , s a d n a 9 c y 0 e s s, ' ! da 9 y 0 s 2 New ne R w e- al c c 3 e a r t t t o e if s i 6 , - bonds3 months Richmond 4H Feb. 7 ' Atlanta Dec. 10 Chicago Feb. 8 1929 ; St. Louis Feb. 11 March... ! 594-6 791-8 9.80 9.10 4 4. 60 3.76 Minneapolis. _ Feb. 8 April | 6 8H-9 9.46 '\ 8.89 4.80 3.67 Kansas City.. Feb. 15 May.... __J. 6 8^-9 8.79 8.91 5.09 3.67 Dallas Feb. 8 June j 6 8 -8J4 7.83 7.70 4 4. 80 3.71 San Francisco Mar. 21 July j 6 714-8 9.41 j 9.23 4. 55 3.68 August ! 6 -GJ4 53,8- 891-9 8.15 \ 8.23 4.70 3.72 September j 6}4 891-9 8.62 ' 8.50 4 4. 58 3.70 BUYING RATES ON ACCEPTANCES October j 6J4 7 -9 6.10 I 6.43 4.37 3.67 (Buying rates at the Federal Reserve Bank of New York] November J 5J4-6J4 491-6 i 5.40 ; 5.44 3.47 3.45 December j 5 491-5 : 4.S8 ''. 4.83 •3. 03 3.46 1930 Maturity January __ 494-5 4.31 \ 4.64 3.39 3.51 February 394-3% 4.V2-5 4.28 4.32 3.36 3.50 March BH-iU: 3. 56 3.69 4 2. 95 3.40 1-15 days.._. Week ending- 16-30 days... Mar. 1 4h-491 4.28 4.40 3.06 3.49 31-45 days.. Mar. 8 41/2-491 41-1-49-ij 3.84 4.00 3.01 3.44 46-60 days.. Mar. 15 4 -4H 3.56 3.90 ^ 3. 06 3.38 61-90 days.. Mar. 22 4 391-4 2 *-)7 3.00 2.94 3.37 91-120 days. Mar. 29 394-4 4 ! 3.78 3.80 2.83 3.40 121-180 days 1 Stock exchange call loans; new and renewal rates. 1 For all changes made during the month of March, see p. 143. 2 3 3 S t i o s c su k e s e — xc 3 h 9 a 4 n , g e 4 , 9 a 0 n -d d a y 4 3 t - i 4 m p e e l r o c a e n n s. t; yields calculated on basis of last NOTE.—Rates on prime bankers' acceptances. Higher rates may redemption dates—1956, 1954, and 1952. be charged for other classes of bills. 4 Change of issues on which yield is computed. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

162 FEDERAL RESERVE BULLETIN APRIL, 1930 PREVAILING RATES CHARGED CUSTOMERS BY BANKS IN PRINCIPAL CITIES WEIGHTED AVERAGES New York City 27 southern and western cfties Month 1927 January 4.66 5.94 February : 4.56 5.96 MMarch h: 456 4.56 ] 6.04 April 4. 63 6.07 May 4.63 6.10 June 4.60 , 6.16 July 4.56 6.17 August 4.41 6.22 September i 4.44 6.27 October 4.49 6.29 November | 4.35 6.29 December ! 4.50 , 6.20 NOTE.—Figures relate to rates charged by reporting banks to their own customers as distinguished from open-market rates (which are given on preceding page). All averages are based on rates reported for three types of customer loans—commercial loans, and demand and time loans on securities. The method of computing the averages takes into account (a) the relative importance of each of these three types of loans and (6) the relative importance of each reporting bank, as measured by total loans. In the two group averages the average rate for each city included is weighted according to the importance of that city in the group, as measured by the loans of all banks. PREVAILING QUOTATIONS Loans secured by prime stock- Loans secured by warehouse Prime commercial loans exchange collateral receipts Interbank loans Federal reserve bank or branch city January, Febru- March, January, Febru- March, 1930 ary, 1930 1930 1930 I ary, 1930 1930 New York City 5K-6 534-6 ! 5 -534; 534-6 5 -5 Boston 5^-6 ! 5H-6 ' h\ 5 -5H Buffalo 6 -7 6 -%\i'. 6 -634: 6 51-2-6 Philadelphia 6 534-6 5 -5H 5 -6 Pittsburgh 6 6 6 Cleveland 5H-6 53/9-6 5^-6 534-6 Cincinnati 6 -8 6K2-7 6H-7 6 -7 6 5M-7 Detroit _, 6 -6H 6 6 6 6 Chicago... 5^-6 5H-6 5H-6 5H-6 534-6 Richmond 534-6 Baltimore 6 ; 534-6 5^-6 Charlotte.. 6 | 6 Atlanta 5^-6 5H-6 5*4-6 I 6 6 Birmingham 6 -8 6 -8 6 -8 i 6 6 Jacksonville 6 -8 6 -8 6 -8 j 6 6 Nashville 5H-6 534-6 by2 6 1 5M-6 5M"6 New Orleans 6 -634 6 -6M 5£6 5H-6 St. Louis... 6 5H-6 5^-6 5H-6 Little Rock 6 -7 6 -7 6 -8 6 -7 Louisville. _ 6 H M e i l n e n n e a apolis.. 5 6 V 2- - 8 5H & 6 A - - 8 &A 5 6 -5 8 J 4 I ; 6-8 6 6 -8 6 -8 D K e a n n v sa e s r City 5 6 3 4 - - 8 6 5 6 3 ^ - - 8 6 534-6 5 6 K 2 - - 6 6 3 5 6 *^ - - 6 6 Oklahoma City 7 -8 6 -8 D O a m ll a a h s a 63/2 6 -6J4 T 6 6 -6 6 34 6 5 3^ - - 6 6 El Paso..... 6 6 Houston 6 -6M 6 -6 534-6 San Antonio 6 -8 -8 6 6 San Francisco... 534 5 -534 5 -5 Los Angeles VA-7 6H-7 6 -7 6 -634 6 -63 Portland 6 -7 6 -7 6 -7 6 Salt Lake City 7 7 7 6 Seattle. 6 -7 6M-7 6H-7 6 Spokane- _ 7 6 NOTE.—Rates shown are those at which the bulk of the loans of each class were made by representative banks during week ending 15th of month. Rates from about 200 banks with loans exceeding $8,000,000,000; reporting banks are usually the larger banks in their respective cities. r Revised. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

APRIL, 1930 FEDERAL RESERVE BULLETIN 163 MEMBER BANK CREDIT BROKERS' LOANS REPORTING MEMBER BANKS REPORTED BY THE NEW YORK STOCK EXCHANGE [In millions of dollars. Monthly data are averages of weekly figures] [Net borrowings on demand and on time. In millions of dollars] Loans and investments ! From New From private Month or date Total Total c L O ur o n i a t s n i e c s - s o A th l e l r i m n T . v o e _ e r t s a i t t l - _ s 1 ' , ! i t h D a t n o u k e s j j i i r l P ) o a a B w . n t R o i k n s . r g - End of month 1929 Total 1930 ; 1 | 1 a 1 n Y 9 d 2 o 9 r t p k r a u n b s i t a e 1 c n s 9 o k 3 m s 0 - f b o a a 1 r g 9 n e 2 i e k g 9 n s n c , i b e b s r a o , n 1 k e 9 k 3 t e i c 0 r n . s g , Total: January 6,735 3,985 ' 5,664 3,368 1,071 616 1929—Feb 22,263 16,260 7,522 8,737 6, 004i 2,918 659 February __ 6,679 4,168 1 5,619 3,529 1,060 639 Mar 22,472 16,491 7,580 8,911 5,981 2,861 740 March .. 6,804 1 4,656 i 5,713 4,026 1,091 631 Apr 22,388! 16,464 7,392 9,073 5,924 2,709 725 A pril 6,775 i 5,580 1 194 May ] 22,113, 16,277 7,218 9,059 5,836 2,545 661 May 6,665 i 5,482 1,183 June i 22, 231 16,480 7,332 9,149 5,751 2,532 670 June 7,071 1 5,797 1,272 July 22,479| 16,950 7,716 9,234 5, 529 2,738 801 Julv 7 474 ; 6,154 1 325 Aug 22,465 16,969 7,578 9,390 5,496 2,604 717 August 7,882 6,492 1,390 Sept ! 22,646 17,197 7,654 9,543 5,449 2,718 706 September 8,549 : 7,077 1,470 Oct j 23,124 17, 706 8,098 9,608 5,418 2,916 634 October, _ _ 6,109 5,313 796 Nov _! 23, 663 18,041 8,249 9,792 5,623 3,008 655 November 4,017 : 3,432 585 Dec 23,012 17, 444 7,968 9,476 5,567! 2,886 490 December 3,990 3,370 620 1930—Jan _. 22,368 16, 821 [ j7, 794f 9,027 5,548 2,828 247 Feb 22, 083 16, 542 7, 671 8,871 5,541 2,818 174 ! 1 Call loans, $4,052,000,000; time loans, $604,000,000. Feb. 26... 22,003 16,428 7, 641' 8,786 Mar. 5.... 22,101 16, 547 7, 737! 8,810 MADE BY REPORTING MEMBER BANKS IN N. Y. CITY Mar. 12...! 22, 232 16, 704 7,883 i 8,821 Mar. 19...! 22, 514 16,847 8,054| 8,793 "in millions of dollars. Monthly data are averages of weekly figures] Mar. 26...| 22, 563 16,885 8,184 8,702 New York City: i For banks 1929—Feb i 7,190 5,306| 2,820 2,486 M M Ap a a r y r ! i 7 7 7 , , , 1 2 2 8 9 9 2 7 6 5 5 5 , , , 4 3 4 2 4 3 4 4 7 ! 2 2 2 , , , 6 8 7 2 5 2 3 3 9 2 2 2 , , , 6 6 7 0 9 0 1 1 8 Month or date Total Total Y N I o e n r w k O Y N u o t e s r w i k de ot F h o e r rs June 7,281 5,468 2,749 2,719 City 1 City 2 July 7,496 5,804 3,045 2,758 Aug 7,407 5, 688: 2.845 2,843 Sept 7,507 5, 803! 2,892 2,911 1929—January 5,408 i 2,974 1,173 L, 801 2,434 Oct __ 7,837 6,108! 3,191 2,916 February 5,555 1 2,899 1,082 1,817 2,656 Nov 8,349 6, 3801 3,340 3,040 March.. 5,679 ! 2,800 1,071 L,729 2,879 Dec 8,001 6, 0211 3,112 2,909 April i 5,477 2,583 934 L, 649 2,893 1930—Jan 7, 664 5, 705! 2, 945 2.760 May 5,491 ! 2, 526 861 1,665 2,965 Feb 7,493 5, 584j; 2, 909! 2,675 June 5,383 2,443 895 L, 548 2,940 !l July... 5,841 2.849 1,198 1,651 2,992 Feb. 26... 7,412 5,499! 2,609 August 6,009 2,778 993 1,786 3,290 Mar. 5.... 7, 4991 5, 582!! o21,953 2,629 September G, 540 , 2,898 1,048 1,850 3,642 Mar. 12... 7, 595 5,700j! 3, 065 2, 635 October 6,498 2,896 1,257 1,639 3,602 Mar. 19— 7,747 5,787'j 2,627 November 4,023 ; 1,869 1,090 779 2,154 Mar. 26— 7, 756! 5, 810 j 2, 530 December 3,391 1, 601 888 713 1,790 Other leading r 1930—January... 3,351 1, 706 844 862 1,644 cities: February 3 3,459 1,913 942 971 1,546 1929— J J A M M F u u p e l n a a y b r y r e 1 1 1 1 1 1 4 5 4 5 4 5 , , , , , , 9 9 1 0 9 0 3 8 7 7 5 9 1 3 6 3 0 2 1 1 1 l ll l 1 0 0 , , , 0 , 0 , 0 9 9 1 6 2 5 3 2 7 7 4 3 i | ! j ] ! | i 4 4 4 4 4 4 , , , , , , 7 5 5 6 G 7 5 6 8 6 0 7 6 5 0 2 3 3 1 I 6 6 6 6 6 6 , , , , , , 4 3 3 3 4 2 7 6 1 6 3 5 6 4 0 8 0 1 4 4 4 3 3 3 , , , , , , 9 8 1 9 1 0 9 3 1 3 6 0 8 7 9 8 5 9 i ! ; l 1 1 1 1 , , , , , 8 7 9 7 8 2 0 4 3 3 8 5 3 5 6 J 1 ! ! i 4 5 5 5 5 5 8 0 1 6 7 2 2 5 6 3 4 8 1930— M M M M Fe a a a a b r r r r . . . . . 2 2 5 1 1 6 6 2 9 _ . . . .. : 3 3 3 3 3 , , 8 , , , 5 4 8 7 4 8 8 2 2 1 3 9 0 0 ; 2 2 2 2 1 , , , , , 4 0 9 5 2 3 3 3 4 2 3 7 8 2 5 1 1 1 1 , , , , 2 0 1 4 9 6 0 4 2 5 6 6 6 4 3 1 1 1 1 , , , , 0 0 1 1 9 7 3 7 1 8 9 2 1 8 0 1 1 1 1 1 , , , , , 4 4 5 5 2 0 9 5 4 7 4 4 6 5 8 Aug 15,058 4,7341 6,547 3,776! 1,777! 521 1930— D S N O J e e o c a p c t n v t .. 1 1 1 1 1 5 5 4 5 5 , , , , , 0 3 7 1 2 1 1 0 3 8 1 4 5 9 8 l l 1 1 l l 1 1 ' | 3 , 4 , 1 6 9 2 1 9 4 4 5 8 ( | ! | ! i ! I 4 4 4 4 4 , , , , , 7 r 9 9 8 6 0 0 5 • 2 6 6 9 - ! | i 6 6 6 6 6 , , , , , 7 2 6 6 5 5 6 3 9 6 2 7 2 2 8 3 3 3 3 3 , , , , , 6 5 7 5 6 5 8 4 8 9 4 9 5 7 0 1 ! ! ; ! 1 1 1 1 1 , , , , , 8 8 8 9 8 9 3 7 0 9 7 0 5 6 3 1 2 5 4 5 5 6 0 4 1 9 1 8 0 0 4 ba 2 1 3 n M C k W s a e e l o m l e n k l b o l l y e y a r ) n ; r s a e i , n p n $ c o d 3 l t , u n t 0 i d o 8 n e 7 n g s , m 0 m u 0 e n 0 e m , k m 0 b n 0 b e 0 o e r ; w r t n b i b a m a a n e n m k k s l o s o u o a i n u n n t t s s , X f i o $ d e 3 r e w 7 c 1 N u Y , s 0 e o t 0 w o r 0 k m , 0 Y e 0 C o r 0 s i r . t k y o . f C t i h ty e se ( d b o a m nk es s. tic Feb 14, 590 10,958!! 4,762 6,196 3, 632; 1,916! 152 i| ACCEPTANCES AND COMMERCIAL PAPER Feb. 26. _. 14, 591 10,929i! 4, 751 6,176 3, 662! 1,886 115 M M a a r r . . 1 5 2 .. . . . . . 1 1 4 4 , , 6 6 3 0 7 3 1 ll 0 , , 0 9 0 6 4 6 ! i! 4 4, , 7 8 8 18 4 i ! 6 6 , , 1 18 8 6 1 3 3 , , 6 6 3 37 4; 1 1 , , 9 9 6 3 6 0 i | 1 9 2 6 6 fin millions of dollars] Mar. 19... 14, 76' 11,059!! 4,8941 6,165 3, 707| 51 Mar. 26... 14, 807 11.075J; 4, 904 6,171 3, 732J 47 Bankers' acceptances out- Commercial paper out- Chicago: standing standing 1929—Feb. _ 2,096, 1,641-: 9j 7311 455. 323 End of month Mar.... 2,130 1,676: 950 726 454 342 121 1930 Apr 2,045 l,606!i 905 701! 440, 320 46 May__. 2,015 1,596' 897! 6981 419 307 36 June 2,033 1,616' 910| 706! 417; 314 64 January. 1, 058 404 July.... 2,015 906! 695! 4141 310 47 February , 1,056 457 Aug 2,064 1* 6591 943! 716: 405| 309 32 March 1,085 Sept 2,054 1,663, 730, 391! 3131 18 April. 1,071 Oct 2,119 1,733| 735; 386i 309! 38 May 1,041 Nov 2,106; 1,7121 990j 722 395 303! 28 June 1,026 Dec 2,037! 1,639! 9541 685 398 310| 37 •July 978 1930—Jan 1,957' 1.5521 917; 635, 406 i 306! 7 A ugust. 952 Feb 1,928|| 1, 534! 922| 61i: 394| 1 September 1,004 ! October. 1,123 Feb. 26. l,942!l 1, 546! 935 396J 314; 1 November 1,200 Mar. 5.. 1,970| 1,564 942 623: 406 330: 1 December 1, 284 Mar. 12. 1, 974 1,575 956 619i 399 327, Mar. 19. 1,984 1,591 979J 612! 393 341; Mar. 26. 1, 981, 1,587 973! 614! 393 338, Figures for acceptances as compiled by American Acceptance Council; for commercial paper as reported by about 25 dealers. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

164 FEDERAL RESERVE BULLETIN APRIL, 1930 SECURITY PRICES, SECURITY ISSUES, AND BUILDING CONTRACTS SECURITY PRICES FOREIGN CAPITAL ISSUES [Index numbers of Standard Statistics Co.] [In millions of dollars] Common stocks (1926=100) January-February Month or date r ; ; Bonds, February, (Thursday) c 4 o 0 m 4 s b t i o n c e k d s ! : d 3 u 3 s 7 tr i in al - s j | 6 „ ti rra fillislQ | 3 u 4 ti p li u ti b e l s ic 60 issues Class of issue 1930 1930 1929 Gov-! Cor- Gov- Cor- Gov- Cor- 1928—December 171.4 178.4 134.9 173.4 97.2 ern- i po- ern- porate ern- po- 1929—January.— 185. 2 392.5 141. 8 192.7 97.0 ment rate ment rate ment rate February 186.5 192.3 141.6 202.4 i 96.3 March 189.1 196.0 140.4 203.7 95.8 April 186.6 193.4 138.3 201.4 ' 95.3 Total 42.8 ' 45.4 65.1 93.8 45.2 38.8 May 187. 8 192.6 138.7 212.3 95.7 June _. 190.7 191.0 144.8 233.0 j 95. 3 New issue 11.8 . 45.4 20.1 93.8 38.6 36.8 July 207.2 i 202. 7 160.0 272.8 1 95.2 Europe _ .. 29.3 34.3 23.6 18.4 August 218.1 I 210.3 165.4 304.3 ; 95.0 Canada and Newfound- September- 225.3 I 216.1 168.1 321.0 94.8 land 10.3 ' 16.1 13.1 19.6 1.5 9.4 N O o c v to e b m e b r. e . r 2 1 0 5 1 1 . . 7 1 i ! 1 1 9 4 4 4 . . 4 8 1 1 5 3 7 5 . . 1 0 2 1 7 9 6 4 . . 6 4 • ; 9 95 5 . . 7 1 L U a n t i i t n ed A m S e t r a ic te a s insul . ar 1.5 5.5 12.0 2.2 December 153.8 j 146. 9 136. 3 200.9 | 96. 5 possessions i 1.5 1.5 6.5 1930—January -.- 15G.3 i 148.8 136. 5 208.7 , 96.5 Miscellaneous- 40.0 .4 February 165.5 i 155. 9 142.5 230.5 j 96.4 Refunding issues 31 0 i 45 0 6.6 2J3 March _ 172.4; 163.0 143.2 241.6 | 97.8 Total Government and N ^ Mar. 6.-- _- 169.2 ! 159.4 142.4 236.5 ! 96.9 corporate __ oDoO. Zn 15*.9 84.0 Mar. 13... _ 169.8 i 160.9 140.8 237.3 | 97.6 Mar. 20 173.8 i 164.4 144.8 243.3 98.4 Mar. 27 176.6 i 167. 2 144.7 249.1 ! 98.2 i BUILDING CONTRACTS AWARDED, BY TYPES OF DOMESTIC CAPITAL ISSUES BUILDING [In millions of dollars. Source: Commercial and Financial Chronicle] [Value of contracts in millions of dollars] January-February 1 Public February, Resi- Indus- Com- works Educa- All 1930 1930 1929 Month Total \ d ti e a n l - trial m ci e a r l - pu an b d lic tional other Class of issue utilities , Re- Re- Re- 1929—January 410.0 i 138.1 63.1 100.4 66.5 17.7 24.1 New | fund- New fund- New fund- February._ 361.3 ! 129.5 56.1 68.3 57.6 22.6 27.3 ! ing ing ing March 484.8 i 197.2 55.8 75.6 71.5 37.5 47.2 April 642.1 ! 256.8 68.2 78.0 152.1 29.9 57.1 May 587.8 i 192.0 80.8 86.5 139.4 38.2 50.9 Total. 465. 5: 8. 8! 1,182.11 85.6:1,703.6 265.9 J J u u l n y e _ 5 65 4 2 5 .9 4 , 1 1 9 8 9 9 .8 9 7 66 0 .0 6 9 8 1 0 .9 3 1 19 2 4 0 . . 5 8 4 4 8 3. . 4 0 4 5 0 2 . . 9 0 Corporate issues 387.4 27.' 82.8|1,565.5 262.9 August 488.9 ! 146.1 75.3 72.0 119.3 32.3 43.9 Bonds and notes— ! September. 445.4 118.4 52.6 76.9 117.2 29.8 50.4 Long-term 224.2; 21.3 660. 2! 65. 5 402. 3 134.2 October 445.6 1 137.7 60.9 67.7 85.1 36.9 57.3 Stoc S ks hort-term 14 1 9 4 . . l lj 5. . 9 5 1 1 2 6 75 2 . . 4 9 | j 16 . . 4 9 ; 1,13 3 3 0. . 2 C 4.7 N D o ec v e e m m b b e e r r .. 3 3 1 9 6 1 . . 4 0 ! , 1 11 1 4 3 . . 0 5 3 67 9 . . 4 7 1 3 0 3 1 . . 4 8 7 5 2 1 . . 4 8 2 1 5 9 . . 7 8 3 2 8 9 . . 0 9 M Fa u rm ni - c l i o p a a n l i i s ss s u u e e s s 2.0| | . "l."i! 181 2 . . 6 0 i _ ~ 138.1 124.0 1930— F J e a b nu ru ar a y ry __ 3 3 2 1 4 7 . . 0 1 i ! 6 7 6 4 . . 6 8 3 3 8 3 . . 3 5 5 72 4 . . 9 1 1 8 1 5 2 . . 8 1 1 2 9 1 . . 0 2 3 2 4 8 . . 0 8 Total new and re- 76. L funding 494.3 1, 267. 7 1,969.4 Figures for building contracts awarded are for 37 States east of the Rocky Mountains, as reported by the F. W. Dodge Corporation. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

APRIL, 1630 FEDERAL RESERVE BULLETIN 165 PRODUCTION, EMPLOYMENT, CAR LOADINGS, AND PRICES [Index numbers; 1923-1925 average=100. The terms "adjusted" and "unadjusted" refer to adjustment for seasonal variations] j Commodity Industrial production* Freight-car loadings* j pricesf Fac- Fac- Building con- tory tory Y m ea o r n a th nd Total ; Manufactures Minerals tracts awarded m pl e o n y t - r p o a ll y s Total M l a i e n s s d s c - e m t l h d l a a s n n e - e c . a o i r u n - s All load lots Farm ties Unad- Ad- Unad- Ad- Unad- Ad- Unad- Ad- Unad- Unad- Unad- Ad- Unad- Adjusted justed justed justed justed justed justed justed justed justed justed justed justed justed 1919 ! 83 84 77 64 107 98 84 139 158 1920 87 87 89 63 108 118 91 84 154 151 1921 67 67 70 57 82 79 78 98 88 1922 85 87 74 81 90 81 86 88 97 94 1923 101 101 105 84 104 103 100 97 101 99 1924 95 94 96 95 96 96 98 98 98 100 1925 104 105 99 122 100 101 103 105 104 110 1926 108 108 108 130 101 104 107 108 100 100 1927.._. , 106 106 107 128 99 109 103 107 95 99 1928 ! 111 111 106 135 97 102 103 108 98 106 1929. 118 119 115 117 100 107 106 110 97 105 1926 January 105 106 108 109 90 92 111 143 101 101 94 102 93 107 104 107 February. _ 108 106 111 108 92 95 106 145 102 106 96 104 98 107 102 105 March 109 107 111 108 98 104 146 129 103 107 99 104 103 106 100 102 April 108 107 110 107 96 107 139 120 102 105 98 107 105 106 100 103 May 107 106 108 106 102 104 134 123 101 104 106 107 110 109 101 102 June 106 108 106 108 109 106 133 121 101 104 110 109 111 109 101 101 July 103 107 102 107 110 107 126 124 99 99 111 108 111 108 100 99 August 109 110 108 111 115 109 148 133 101 104 113 108 112 107 99 September . 113 112 112 112 118 110 137 134 103 105 122 109 121 109 100 October 114 111 112 110 124 114 126 122 103 108 123 109 122 110 99 98 November. 110 108 108 106 123 118 119 130 101 105 113 109 112 108 98 95 December.. 101 106 99 103 113 119 131 142 100 104 98 107 96 107 95 1927 January 106 106 104 105 112 116 94 120 98 99 97 105 94 108 February._ 110 108 110 107 113 117 96 131 100 105 100 109 99 109 95 March 113 111 113 109 111 118 151 134 100 106 102 108 107 109 94 April _. 110 109 112 109 96 107 147 127 100 105 100 108 109 110 94 May 112 111 113 111 108 109 135 122 99 104 105 106 110 108 96 June 107 108 107 109 108 ' 105 154 141 99 102 106 104 110 108 97 July 102 106 102 107 103 99 130 128 98 99 104 101 110 107 98 August 105 107 104 107 111 106 135 121 99 102 109 104 112 108 102 September. 106 105 106 105 111 104 127 125 101 102 116 104 120 108 106 October 105 102 104 102 112 105 137 133 99 103 114 101 118 106 105 November. 101 99 101 99 105 101 114 125 97 98 101 97 107 103 104 December. _ 96 100 95 99 97 103 116 126 95 99 88 95 90 100 104 1928 January 105 106 106 106 '100 103 104 133 94 96 92 100 93 106 106 February.. M12 109 114 110 '99 '103 113 153 96 101 94 102 97 106 105 March 112 110 115 111 '98 103 144 128 97 103 97 102 105 107 104 April 110 109 113 110 94 '105 157 135 96 100 96 104 107 108 108 May 110 109 111 109 104 105 163 148 96 101 104 105 111 110 110 June 108 109 108 111 '104 '101 158 145 96 101 103 102 109 107 107 July 105 '110 106 111 103 '101 142 139 96 98 105 102 112 109 107 August 111 112 110 113 '111 105 126 113 98 103 109 104 114 109 99 107 September. 116 114 116 116 115 107 143 140 100 104 119 106 123 111 100 109 October 118 115 117 115 122 '114 145 141 100 107 119 106 123 111 104 November. 115 113 115 113 117 v 113 115 126 99 104 108 104 111 107 102 December.. 108 115 109 115 106 112 105 116 98 104 95 103 97 108 104 1929 January 116 117• 116 117 113 '118 100 128 97 101 95 104 95 109 106 February.. 120 117 120 116 '116 120 88 119 100 108 99 107 99 109 105 March 121 118 125 120 101 107 118 104 101 111 98 103 109 111 107 April 123 122 127 123 '104 115 156 135 102 '111 102 111 113 114 105 May 125 123 127 125 116 116 143 130 102 '111 110 111 115 114 102 June 125 '127 126 129 '116 '113 133 122 101 109 109 108 114 112 103 July 119 124 119 126 ' 118 114 159 156 101 105 111 108 115 112 108 August 121 123 121 124 121 114 119 107 102 109 114 109 118 113 107 September. 123 122 122 122 127 118 108 106 103 111 121 108 126 113 107 October '120 117 118 117 '127 118 109 105 102 110 118 104 123 111 104 November. 108 106 107 105 '114 '110 95 105 98 102 102 99 107 103 101 December.. 95 99 92 96 110 116 77 85 95 99 90 97 90 100 102 1930 January 103 103 102 102 107 112 79 101 93 94 89 97 89 102 101 February.. PIOH P106 p 109 P105 7)104 "108 77 104 93 97 92 99 96 105 * Average per working-day, except for annual indexes. v Preliminary. t Wholesale price index of Bureau of Labor Statistics; 1926=100. ' Revised. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

166 FEDERAL RESERVE BULLETIN APRIL, 1930 INDUSTRIAL PRODUCTION, BY INDUSTRIES [Index numbers of the Federal Reserve Board. Adjusted for seasonal variations. 1923-1925 average = 100] 1929 1930 Industry Feb. Mar. iiy Aug. Sept. Oct. Nov. Jan. ! Feb. Manufactures IRON AND STEEL . 117 126 132 135 145 155 151 143 139 Pig iron 114 114 116 117 126 127 131 128 121 Steel ingots... 118 128 134 137 147 158 153 144 141 TEXTILES 116 113 116 120 121 121 118 120 116 108 Cotton consumption 118 115 117 119 125 122 119 119 115 104 Wool -•- 99 97 97 101 102 101 95 101 98 Consumption 105 101 100 106 109 107 109 114 106 Machinery activity l 93 92 96 92 93 85 86 89 Carpet and rug loom activity l-- 91 94 95 I 95 83 90 90 Silk 135 132 144 149 I 138 ! 149 146 150 148 Deliveries 144 135 152 159 I 142 i 159 155 161 158 Loom activity l 119 126 128 129 ! 130 ! 128 127 130 128 FOOD PRODUCTS.__ 103 101 96 102 I 97 96 96 99 98 96 Slaughtering and meat packing 98 97 88 99 | 92 90 94 93 101 Hogs 102 104 86 100 94 90 96 94 106 Cattle 90 87 90 93 ! 86 I 87 88 88 91 Calves 95 87 97 101 91 I 83 90 85 99 Sheep__ 109 106 105 119 125 i 117 124 126 126 Flour 100 104 104 107 112 j 109 100 103 99 Sugar meltings._ 129 108 111 111 90 102 94 112 84 PAPER AND PRINTING __ 122 123 125 124 127 128 124 125 129 Wood pulp and paper 117 116 119 119 122 120 120 119 120 Newsprint 94 90 92 »noo nyoo 92 91 95 94 97 Book paper 124 125 132 135 134 133 138 134 143 Fine paper 109 114 118 118 119 120 122 118 119 Wrapping paper 112 104 102 103 109 107 101 101 101 Paper board... 134 135 139 135 143 136 131 129 125 Wood pulp, mechanical.. 101 103 96 91 92 100 103 101 100 Wood pulp, chemical 114 114 114 115 120 118 117 120 120 Paper boxes 141 150 157 151 150 180 152 169 178 Newsprint consumption 136 137 138 132 137 142 131 135 148 TRANSPORTATION EQUIPMENT: Automobiles 150 148 159 153 j 148 i 162 142 143 133 102 Locomotives 15 17 28 53 I 55 | 46 59 55 49 39 Shipbuilding 48 21 49 62 ' 93 j 129 155 175 101 169 LEATHER AND PRODUCTS.. 95 98 99 97 I 101 I 113 114 116 116 105 Tann S U i o p n l p e g e l r e a l t e h a er t h i er- 9 8 4 8 o 9 DvQ 2 ©Q 8 yQ 5 94 I 9 84 2 i | 1 9 0 7 6 1 8 0 6 5 1 9 0 3 3 1 9 0 4 5 1 9 0 5 3 Cattle 73 67 73 76 78 i 74 75 80 87 Calf and kip... 67 73 86 93 ! 96 I 104 111 108 102 Goat and kid... 117 120 112 123 i 116 I 153 158 136 144 Boots and shoes 100 104 105 100 ! 106 ! 117 120 125 123 i CEMENT AND GLASS: Cement 126 115 99 110 Ill I 116 118 122 118 109 109 108 110 Glass, plate. 141 140 148 144 146 ! 154 164 168 174 149 ! 117 124 122 NONFERROUS METALS 2 124 123 129 137 137 I 126 127 122 126 121 105 T C i o n p p ( e d r e li ( v s e m ri e e l s te ) r l ) 1 1 3 3 2 7 1 1 3 3 2 4 1 1 4 2 0 8 1 1 4 4 7 3 1 1 4 4 5 5 I i 1 13 3 7 0 1 1 3 2 3 3 1 1 2 2 6 1 1 13 2 1 7 1 12 2 6 5 110 FUELS, MANUFACTURED: Petroleuni refining _ 159 160 160 165 168 I 170 171 176 173 163 Gasoline i 186 187 187 194 196 199 205 209 208 199 Kerosene 93 97 94 93 103 110 95 108 95 89 L Fu u e b l r i o c i a l t i ing oil1 1 1 3 2 4 3 1 1 3 1 8 6 1 1 3 2 6 3 1 1 4 2 1 5 1 12 4 6 0 1 12 4 6 0 1 1 3 2 8 3 1 13 4 1 2 1 1 4 2 1 3 1 1 2 2 0 1 Coke (by-product) 137 139 142 145 149 151 151 152 148 132 RUBBER TIRES AND TUBES. 148 152 152 161 | 158 162 141 119 116 Tires, pneumatic 153 157 157 166 | 163 167 146 123 120 Inner tubes 113 116 118 126 i 121 125 105 87 90 TOBACCO PRODUCTS 131 129 126 142 I 142 139 131 133 136 Cigars 86 95 93 109 ! 101 100 97 99 100 Cigarettes 167 159 153 173 ! 178 173 160 163 168 COAL: Minerals Bituminous r 104 ' 110 '90 '102 | ' 104 I '102 102 '98 ' 103 r 103 Anthracite 110 110 77 95 ' 86 76 72 81 106 121 ' '106 102 Petroleum, crude. 137 137 133 132 ! 134 135 143 145 140 132 132 135 Iron ore shipments 143 126 119 121 121 Copper (mined) 129 136 135 141 139 124 122 119 125 95 Zinc. 100 106 112 116 120 ! 122 125 127 124 Lead 111 '100 112 125 122 112 114 107 119 Silver 94 91 93 103 94 88 91 89 1 Without seasonal adjustment. 2 includes also lead and zinc. See " Minerals." » Preliminary. r Revised. NOTE.—The combined index of industrial production is computed from figures for 58 statistical series, 50 of manufactures, and 8 of minerals, most of which are shown in this table. 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. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

APRIL, 1930 FEDERAL RESERVE BULLETIN 167 FACTORY EMPLOYMENT AND PAY ROLLS INDEXES OF FACTORY EMPLOYMENT AND PAY ROLLS PERCENT [Without seasonal adjustment. Monthly average 1923-1925=100] 110 FACT"ORYEMPLOYKENT 110 A (1923-25--100 ) Factory employment Factory pay rolls Month 1927 1928 1929 1930 1927 1928 1929 1930 100 100 January _ 98.1 94.2 97.4 r92.9 98.6 95.7 ••100.7 94.2 \ / J;' February 99.7 95.7 99.7 92.9 104.8 101.1 r 108. 0 97.4 March 100.4 96.6 101.3 105.3 102.5 ••110.8 April... 99.8 96.0 101 8 105.0 100.3 r HI 3 J M un ay e _ 9 99 9 . . 0 1 9 9 5 6 . . 7 2 1 1 0 0 1 1 . . 6 2 1 10 0 2 4 . 3 5 i 1 o 0 n 0. s 9 r 1 H 0 I 9 . 2 2 90 V 90 July 98.0 95.7 100.7 98 6 98 3 104.8 August 99.2 98.3 102.0 102.2 102. 5 109 4 mmmm Adjusted for Seasonal Variations September 100.6 100.3 103.4 101.9 104.2 110.5 Without Seasonal Adjustment October 99.3 100.2 102.1 102. 5 107.5 110.0 November... 96.9 98.8 98.2 98.5 103 6 102 0 80 I 80 December 95.5 98.1 94.8 99.4 104.2 98.7 1923 1924- 1925 1926 1927 1928 1929 1930 Annual index. 98.8 97.2 100.4 102.0 101.8 107.2 Seasonal adjustment provisional FACTORY EMPLOYMENT: INDEXES BY GROUPS Transportation Chemicals Month s I a t r n e o d e n l ch M in a e - ry Textiles! p F u r o c o o t d s d - P p a r i a n n i p n g d e t r - L p u a b r u n c o e m t d d r s - - Gr e o q u u p ipm m A e o n u b t t i o le - s L p e u a r a c n o t t d d h s - er m c a C l e n a e n d y - t , , I i I N m r o e o n t u f a s e ls r- Group P le e u tr m o- R p u u r b c o t b d s e - r b p u T a r c o c o t c d - s o refining 1928—October 96.9 102.8 95.7 ! 102. 6 102.4 90.6 94.4 119.8 94.6 94.1 100.0 107.4 104.3 113.2 99.1 November. 97.7 103.8 96.2 ! 101.9 103.7 90.5 90.2 109.1 89.3 91.8 102. 2 107.3 104.0 109. 8 98.9 December.. 97.1 105.2 97.0 | 102.0 103.6 88.2 89.9 107.7 88.6 89.5 102.4 107.8 104.7 109.6 95.7 1929—January 97.1 106.7 95.9 i 98.6 102.5 85.5 94.0 118.3 91.9 84.3 102.4 107.6 104.0 112.2 84.1 February.. 98.3 110.4 98.0 I 98.8 103.4 85.8 99. 0 129.5 94.1 84.5 106. 1 110.9 106.7 112.3 92.0 March 99.3 113.8 101.1 ] 97.6 103.1 86.6 100.5 131.1 92.7 86.8 107.9 115.5 109.2 113.3 92.0 April 99.7 116.7 99.3 ! 96.2 102.5 88.2 101.7 131.4 90.6 90.5 | 107.7 119.0 111.9 114.3 91.3 May 100.7 119. 1 97.3 ! 97.3 102.8 89.2 101.5 130.0 90.3 93.1 | 105.3 110.3 114.4 115.3 90.3 June 100.8 120.8 96.3 ! 99.2 103.2 90.0 97.6 120.6 89.4 93.8 j 102.9 107.9 116.4 115.0 91.4 July 99.8 121.5 91.5 99.8 103.6 90.5 96.4 117.8 94.6 91.6 ! 100.5 108.9 120.0 114.2 90.5 August 101.0 119.4 94.2 99.7 104.1 92.2 95.5 115.0 98.1 93.8; 99.8 111.2 121. 9 111.5 93.0 September. 101.0 119.5 98.4 102.4 106.0 91.8 94.8 113.1 99.5 93.6 98. 0 114.5 124.0 108.3 93.7 October 99.4 118.7 99.8 104.2 106.1 90.1 90.2 101.3 99.3 91.9 j 98.5 116.1 124.6 102.7 95.0 November. 97.0 115.0 97.1 101.6 106.7 86.7 82.9 83.7 94.4 88.9 j 93.6 113.8 123.7 91.2 96.1 December.. 92. 2 112.1 94.3 100.5 106.9 81.6 81.3 79.6 90.0 82.3 | 89.9 111.8 120.9 89.2 89.2 1930—January 91.7 j 109.9 92.8 97.4 105.1 76.8 83.2 85.7 91.4 74.7 | 85.9 110.6 120.8 89.7 84.2 February... 93.5 I 109.3 92.9 96.7 104.0 75.0 83.9 89.7 92.4 75.3 | 84.6 110.2 120.9 87.9 88. 9 FACTORY PAY ROLLS: INDEXES BY GROUPS Transportation I I Chemicals Month equipment i L ea a t n h d e r; ; rous Petro- R p u u r c b o t b d s e - r b p T a ro c o c d - o glass metals Group leum ucts refining 1928—October.... 95.9 94.1 ! 116.6 109. 2 107.8 120.4 95.2 November. 80.1 : 90.7 ; 118.5 108.2 107.1 112.4 94.1 December.. 86.0 ! 88.4 j 120.5 108.1 107.2 114.1 94.3 1929—January 97.0 102.2 79.0 ! 117.4 106.3 105.3 ••111.7 76.3 February,. 103.6 102.5 81.0 ! 124. 1 111.3 110.2 ••123.3 82.3 March 108.8 101.2 84.8 j 127. 6 113.6 112.1 " 123.6 84.4 April 103.2 100.4 89.3 l 127.0 117.8 117.1 ••124.4 86.1 May 99. 3 103.1 91.8 i 123.1 113.1 118.9 '125.7 86.1 June 97.8 105.6 92.5 ' 117.0 111.2 120.0 120.6 88.5 July 90.4 105. 86.1 ! 112.6 111.2 123.3 115.1 87.9 August 97.4 105.0 91.2 i 113.2 113.0 125.1 110.9 90.6 September. 103.0 108.1 91.3 i 112.1 116.0 129.3 104.9 93.4 October.... 104.8 108.8 90.6 ! 112.5 118.2 129.4 100.9 94.2 November. 90.2 105.5 86.4 ; 99.6 115. 6 126. 3 85.9 j 94.3 December. 93. 105.5 80.2 ; 96.1 114.0 124.8 85.0 j 88.8 1930—January-- 90.5 67.3 ; 91.5 109.3 121.1 88.9 77.0 February-. 98.1 70.2 , 91.7 110.0 125.0 92.1 80.0 ' Revised. NOTE.—These tables contain index numbers of factory employment and factory pay rolls for certain months, together with group indexes fot important industrial components. The nature and sources of basic data and the method of construction were described and the indexes for the period January, 1919, to November, 1929, were published in the BULLETIN for November, 1929, pp. 706-716. 103025—30 3 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

168 FEDERAL RESERVE BULLETIN APRIL, 1930 BANKING AND BUSINESS CONDITIONS IN FEDERAL RESERVE DISTRICTS FEDERAL RESERVE BANKS—RESERVES, DEPOSITS, NOTE CIRCULATION, AND RESERVE PERCENTAGES [Averages of daily figures. Amounts in thousands of dollars] Total cash reserves Total deposits Federa c l i r r c e u s l e a r t v i e o n n o i tes in Reserve percentages Feder b a a l n r k eserve 1930 1929 1930 1929 1930 1929 1930 1929 March February March March February March March February March March Febru- March ary Boston 263,083 266,297 195,614 145,896 148,337 145,498 162, 250 162, 582 130,408 85.4 85.6 70.9 New York 912,761 910,040 988,224 962,762 952,221 944, 547 205,347 246,391 306,296 78.1 75.9 79.0 Philadelphia 222, 371 209,986 166,846 136,457 135, 034 134,903 146,422 146, 724 142,828 78.6 74.5 60.1 Cleveland 307, 581 279,819 288, 854 188,058 186,035 188,152 180,335 177,865 207, 272 83.5 76.9 73.0 Richmond 109, 661 112,175 92, 568 65,920 68, 320 69, 457 76,299 80,969 73, 574 77.1 75.1 64.7 Atlanta 158,366 152, 758 145, 672 65, 922 66, 538 68,910 131,943 132,116 137,915 80.0 76.9 70.4 Chicago 540, 311 509,129 401, 433 342, 821 336,187 349, 767 296, 363 297,460 283,388 84.5 80.3 63.4 St. Louis 120,963 118,981 74, 733 78, 786 80, 656 81,826 82, 262 85, 766 59,603 75.1 71.5 52.8 Minneapolis 84,011 88, 455 86,448 52, 740 51, 758 54,102 59,843 61, 393 63,473 74.6 78.2 73.5 Kansas City 138,079 144,430 109,994 89,295 88, 879 92,973 79,044 80, 489 67, 021 82.0 85.3 68.7 Dallas 64, 744 63, 780 71, 766 63,972 65, 327 70, 894 37,440 41, 261 38, 588 63.8 59.8 65.6 San Francisco 280,149 305, 465 226, 434 180,450 182,468 183, 646 158,404 164, 793 159,393 82.7 88.0 66.0 Total 3, 202,080 3,161, 315 2,848, 586 2,373,079 2, 361, 760 2, 384, 675 1, 615,952 1,677,809 1, 669, 759 80.3 78.3 70.3 i Includes "F. R. notes of other F. R. banks" as follows: Latest month $22,792,000; month ago, $24,282,000; year ago, $15,512,000. ALL MEMBER BANKS—DEPOSITS SUBJECT TO RESERVE, RESERVES HELD, AND INDEBTEDNESS AT FEDERAL RESERVE BANKS [Averages of daily figures. In millions of dollars] Reserves held Net demand deposits Time deposits IndebtedEess at Federal reserve banks Total Excess Federal reserve district December, January, December, January, December, January, December, January, December, January, 1929 1930 1929 1930 1929 1930 1929 1930 1929 1930 Boston 1,398 1,394 943 951 150.1 149.9 1.9 1.9 40.4 23.9 New York 7,355 7,080 3,182 3,241 999.6 956.5 23.1 14.0 188.3 110.9 Philadelphia 1,158 1,144 1,057 1,080 133.4 133.8 1.1 1.8 80.2 52.0 Cleveland 1,493 1,473 1,612 1,623 180.1 182.2 1 -1.7 2.0 98.4 72.8 Richmond 569 569 557 562 65.3 66.2 .8 1.4 42.3 31.2 Atlanta 550 571 428 434 62.6 64.5 2.3 2.4 41.1 31.8 Chicago 2,582 2,535 2,079 2,053 342.7 337.0 6.0 6.8 133. 0 87.4 St Louis 705 699 519 536 79.3 79.3 1.5 1.6 30.9 17.7 Minneapolis 447 427 448 442 53.3 51.3 2.8 2.8 17.3 7.0- Kansas City 856 850 357 354 89.0 88.7 3.6 3.8 46.0 27.8 Dallas - _ _ . 664 659 220 225 64.4 63.0 2.9 2.1 19.1 13.3 San Francisco 1,328 1., 312 1,663 1,756 175.1 176.7 4.0 3.9 64.3 21.8 Total 19,105 18, 713 13,065 13, 257 2,394.9 2,349.1 48.3 44.5 801.3 497.6 1 Deficiency in reserves. DISCOUNTS OF FEDERAL RESERVE BANKS BANK DEBITS [Debits to individual accounts. In millions of dollars] [Averages of daily figures. In millions of dollars] Number February, January, February. of centers 1930 1930 1929 1930 1929 Federal reserve bank New York City 1 31,117 34, 732 46,289 March February March Outside New York City 140 21,534 25, 723 24,515 Federal reserve district: Boston 21.1 23.2 58.6 Boston.. 11 2,329 3,050 2,674 New York 54.3 70.5 231.5 New York 7 31,940 35, 662 47,146 Philadelphia _ __ - 36.7 50.5 101.6 Philadelphia 10 2,233 2, 609 2,536 Cleveland 31.1 53.3 76.0 Cleveland 13 2,325 2,827 2,74a Richmond 16.8 22.2 43.4 Richmond 7 654 780 692 Atlanta -- -- - 21.6 25.3 51.7 Atlanta . __ ._ 15 1,009 1,211 1,115 Chicago 35.2 63.0 210.6 Chicago 21 5,489 6,563 6,505 St Louis 14.0 16.7 48.1 St. Louis 5 1,050 1,281 1,212 Minneapolis . 2.4 3.0 15.6 Minneapolis ___ -_ 9 664 751 659 Kansas City 16.2 23.0 31.8 Kansas City.__ 15 1,222 1,409 1,260 Dallas 8.3 11.9 14.8 Dallas 10 646 741 687 San Francisco 15.8 15.1 85.0 San Francisco... _.. 18 3,090 3,569 3,578 Total 273.5 377.6 968.6 Total _ - 141 | 52,651 60,455 70,804 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

169 APRIL, 1930 FEDERAL RESESVE BULLETIN BUILDING CONTRACTS AWARDED BUILDING PERMITS ISSUED [Value of contracts in thousands of dollars] [Value of permits in thousands of dollars] 1930 1929 Num- Federal reserve district Federal reserve district ber of I February January February cities j February January February Boston 17,961 16, 631 25,325 Boston 14 4.076 4,464 11,031 New York 90,312 79, 462 76,064 New York 22 30,231 34,649 113,382 Philadelphia 17,743 50,914 32, 369 Philadelphia. 14 4,241 3,913 8,672 Cleveland 35,992 34,861 36, 360 Cleveland 12 9,(39 8,098 12,586 Richmond \ 28, 707 27,433 34, 252 Richmond 15 6,011 9,363 9,437 Atlanta _. ' 19,526 21, 433 22, 363 Atlanta 15 j 3,179 3,177 6,537 Chicago i 37,983 39,906 69, 845 Chicago 19 15, 729 14,174 19,801 St. Louis ; 24,510 13,114 23,372 St. Louis 5 2,670 1,202 4,426 Minneapolis ! 4,980 3,868 4, 757 Minneapolis.. 9 1,083 808 I,4ii4 Kansas City _ ; 18,071 14,922 12.874 Kansas City.. 14 6, 501 3,011 4, 815 Dallas ..! 21,267 21,432 23,665 Dallas 9 4,614 4,179 5, 515 San Francisco. 20 14,144 20,132 21, 385 Total (11 districts) j 317,053 323,975 361, 274 Total. _. 168 102,118 107,168 219, 240 Figures for building contracts awarded are for 37 States east of the Rocky Mountains, as reported by the F. W. Dodge Corporation. INDEX OF DEPARTMENT STORE STOCKS INDEX OF DEPARTMENT STORE SALES [Monthly average 1923-1925=100] [Monthly average 1923-1925=100] Without seasonal With seasonal Without seasonal With seasonal adjustment adjustment adjustment adjustment Federal reserve Num- Federal reserve N be u r m o - f district s b t e o r r e o s f 1930 1929 1930 1929 district stores 1930 1929 1930 1929 Feb. Jan. Feb. Feb. Jan. Feb. Feb. Jan. Feb. Feb. Jan. Feb. Boston 34 87 85 91 93 93 97 B N Ph o e i w s l t a o d Y n e o lp rk hia 3 6 5 6 0 7 8 7 7 9 7 3 1 9 8 0 9 0 4 9 7 7 0 5 6 1 1 9 1 0 0 4 3 1 n 9 1 o 2 0 1 1 9 1 0 3 4 2 N C Ph l e e i w l v a e d Y l e a o l n p r d k h . i a .. 4 4 4 2 9 5 1 8 0 7 6 1 9 9 8 7 6 0 1 9 8 9 9 5 1 1 9 8 0 0 3 8 1 9 0 7 - 4 7 ± 1 9 9 0 6 0 6 Cleveland 55 77 78 83 98 93 105 Richmond ... 28 91 86 94 96 98 99 R A Ch i t c l i a c h n a m g ta o o nd _ 4 2 9 1 8 7 8 8 8 1 3 8 "9 8 7 0 5 6 8 9 7 7 5 8 1 1 1 0 0 1 7 3 3 ' 1 1 9 0 1 3 2 2 1 1 12 0 0 3 5 8 A C St h t . l i a c L n a o g t u a o is 2 7 1 9 9 9 1 9 8 0 0 2 5 ••10 8 7 0 2 9 1 9 8 0 8 6 6 1 9 8 1 2 8 0 ' 1 8 9 1 9 1 3 1 1 9 1 0 2 0 0 St Louis 19 83 72 85 102 88 106 Minneapolis 15 67 64 75 70 72 78 M Ka in n n sa e s a p C o i l t i y s i 2 1 7 9 7 7 5 3 7 7 0 4 6 7 8 6 99 82 92 D K a a l n l s a a s s City i 2 2 1 1 1 7 1 7 3 1 7 0 2 2 1 7 2 9 4 80 83 82 Dallas 22 85 80 85 107 93 107 San Francisco 32 104 100 98 109 108 103 San Francisco 36 90 104 91 117 117 118 Total 414 93 88 95 98 '99 j 100 Total. 497 83 89 85 106 102 110 1 Monthly average 1925=100. r Revised. i Monthly average 1925=100. . ' Revised. BANK SUSPENSIONS l IN FEBRUARY, 1930 COMMERCIAL FAILURES1 [Amounts in thousands of dollars] [Amounts in thousands of dollars] Number Liabilities All banks M ba e n m k b s e 2 r Non b m an e k m s ber Federal reserve district Federal reserve district 1930 1929 1929 Num- De Num- De- Num- Deber posits a ber posits 3 ber posits a Feb. Jan Feb. Feb. Jan. Feb. Boston New York Boston 251 232 6,124 3,999 4,151 Philadelphia New York... 563 588 378 13, 466 16, 603 9, 256 Cleveland 1 1,071 1 1,071 Philadelphia. 123 177 3, 757 6,887 2,590 Richmond 11 5,181 1 1,584 10 3, 597 Cleveland 168 197 166 3,023 6,101 2,891 Atlanta. 14 2, 534 3 797 11 I, 737 Chicago _ _. 23 8,285 3 969 20 7,316 Richmond. 145 184 128 : 2,418 4, 510 1,942 St Louis 12 2,867 1 558 11 2,309 Atlanta 93 124 107 i 1,844 2, 587 1,711 Minneapolis 6 888 3 404 3 484 Chicago 376 428 297 ! 8,845 7,966 3,708 Kansas City 5 765 5 765 St. Louis... 102 170 120 | 6,030 3, 054 1, 782 Dallas 11 11,037 7 10, 223 4 814 San Francisco 2 579 1 259 1 320 Minneapolis 48 60 47 i 522 999 1,362 Kansas City... 115 163 121 i 1,2313,983 1, 505 Total 85 33,207 19 14, 794 66 18,413 Dallas 42 67 40 | 1,359 740 552 San Francisco.. 204 350 231 ( 2,706 3,756 2,605 1 Banks closed to the public on account of financial difficulties by Total. 2,262 2,759 1,965 I 51,326 61,185 34, 036 order of supervisory authorities or directors of the bank. 2 Includes 18 national banks with deposits of $14,744,000 and 1 State member bank with deposits of $50,000. i Figures reporten by R. G. Dun Co. 3 Subject to revision. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

170 FEDERAL RESERVE BULLETIN APRIL, 1930 FOREIGN BANKING AND BUSINESS CONDITIONS GOLD HOLDINGS OF PRINCIPAL COUNTRIES AT THE END OF 1929 The annual table showing from 1913 to date The more important changes in central gold the central gold holdings of all countries for holdings during 1929 are shown in the table which satisfactory figures are available is pre- below. The year for the United States was sented herewith.1 A large number of revisions characterized by a steady gain in gold stock have been made in the table this year.2 The fig- until the end of October followed by a loss of ures for total gold holdings have been affected $100,000,000 in November and December. also by inclusion in the table for the first time Since the figures in the table, however, refer of Albania, Ecuador, Guatemala, and Mexico. only to the last date of each year, they show Total gold holdings of the 44 countries now net changes for the year as a whole and do not represented amounted at the end of 1929 to bring out turning points. $10,291,000,000, an increase of $280,000,000 during the year. This figure is to be compared CHANGES IN GOLD HOLDINGS OF CENTRAL BANK3 with an estimated output from the gold mines AND GOVERNMENTS in 1929 of about $405,000,000, an absorption of [In millions of dollars] gold by India in nonmonetary uses of nearly Holdings at $70,000,000, an annual industrial consumption end of year Change of new gold in the United States of between Country during 1929 $30,000,000 and $40,000,000, and an unknown 1928 1929 volume of new gold consumed industrially in the other countries of the world. Making rea- Countries in which holdings increased: sonable allowance for industrial consumption France - 1,253 1,633 +380 United States 3,746 3,900 +154 elsewhere than in the United States, it is ap- Russia 92 147 +55 parent that central gold holdings were built up B Sw el i g tz iu e m rland- 1 1 2 0 6 3 1 1 1 6 5 3 + +1 3 2 8 in 1929 not only from the new output of the Poland.. -. 70 79 +9 mines but from other sources as well.3 This ad- I R ta u l m y ania..- _ 2 4 6 9 6 27 5 3 5 + + 6 7 ditional gold came partly, as in the previous N 16 e o th th e e rl r a c n o d u s ntries showin _ g increase _ . . 1,4 1 6 7 5 5 1,4 1 8 8 3 0 + + 1 5 8 year, from the return of gold from "circulation" Total increases +684 in France, Russia, and the United States; but Countries in which holdings decreased: also from the Canadian and, to a yet greater Argentina 607 434 -173 extent, the Australian commercial banks which Germany — 650 544 -106 England 750 7.11 -39 were feeling the pressure of world financial and Canada _ 114 78 -36 agricultural conditions. Gold held by the J A a u v s a tralia 1 6 0 8 8 8 56 9 - - 2 1 0 2 Australian commercial banks is now subject to Hungary _ — 35 28 —7 11 other countries showing decrease.. 324 314 -10 requisition by the Commonwealth Bank. Total decreases . -404 T 1 For a discussion of the items considered as "central gold holdings" see the FEDERAL RESERVE BULLETIN for April, 1929, p. 262. Note on commercial banks.—At the end of 2 Every figure was reworked in terms of thousands of local currency converted into dollars at par carried to four decimal points, and this 1929 the gold held by member banks of the resulted in many minor differences from figures previously published in Federal reserve system in the United States the FEDERAL RESERVE BULLETIN. In addition several more substantial improvements were made in the figures for the earlier years of the period. amounted to $20,Q00,000; by Canadian banks In a few cases figures not strictly as of the year-end were replaced by yearend figures. From certain other figures small amounts of silver were in vault at home and abroad to $73,000,000; eliminated. In connection with yet other figures the handling of items by the commercial banks of Australia (fourth reported as gold abroad was changed. In view of the large number of revisions, most of them of small importance, it has been decided not to quarter average, 1929) to $104,000,000; and encumber the table with the usual notes calling attention to those figures which differ from figures presented in the previous year. Instead, the by the Argentine banks (other than the Bank table is to be regarded as a new table throughout. of the Nation) to $11,000,000. A small amount « It is probable that the real growth of central gold holdings during the year was greater than that shown by the figures. Considerable amounts of silver is included in the figures for the of gold (at least $30,000,000) were in transit at the year-end, and in general this gold had already been deducted from the central holdings Canadian and Australian banks. The agreported by the country of origin and had not yet been taken up into gregate holdings of the above group of comthe central holdings of the country of destination. As a result, the Federal Reserve Board's monthly figures of central gold holdings ac- mercial banks are less than the corresponding tually showed a decline from November to December, 1929, followed by an unusually large increase in January, 1930. (See p. 250.) Decem- holdings of 1928 by $28,000,000, of which ber is always affected by the withdrawal of gold coin in the United amount $22,000,000 is attributable to the re- States for Christmas circulation, but in December, 1928, central holdings, nevertheless, increased. Only a small amount of gold was in duction in gold held bv the Australian banks. transit over the year-end 1928-29. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

171 APRIL, 1930 FEDERAL RESERVE BULLETIN GOLD HOLDINGS OF CENTRAL BANKS AND GOVERNMENTS, 1913-1929 [In thousands of dollars, converted at par of exchange] End of year Total U S n ta it te e s d ba A n l- ia A t r i g n e a n- t A ra u l s i - a A tr u i s a - A H u g s a u t r n r y - ia- g B iu e m l- Brazil B ga u r l i - a Canada Chile lom Co b - ia C v o z a s e k l c o i h - a - m De a n rk - E d c o u r a- 1913 I 4,932,445 j 1,290,420 256,126 21,899 251,421 48, 062 89, 610 10, 615 116,572 119,666 1914 ! 5,419,867 | 1,206.487 241.539 38,932 213.757 50,963 44,805 10,615 99,126 1,330 i 124,506 1915 i 6,226,898 11,706,922 238,906 73,484 | 138.758 50, 720 24,588 11,773 126, 545 1,330 129,833 1916 i 6,618,404 J 2, 202,157 265.540 78,351 I 58,759 50,720 24,588 13,124 131,558 1,330 |42,847 1917 i 7,126, ?40 |2,523,084 288,020 85,650 53,717 50, 720 24,588 12,159 139,823 9,039 46,611 1918 6,783,361 12,657,885 304,466 104,143 53,072 50, 720 26, 227 12, 352 129, 761 23, 413 52,159 1919 6.768,245 112,517,722 336. 707 llo,796 45,111 51,417 26, 227 7,137 129,712 24, 384 27 ,'60,807 1920. ' 7,205,805 |i2, 451,1S2 473,913 115,409 ! Ul 51,438 32, 784 7,155 112,605 32,893 4,053 |60,9Q2 1921 I 7,994,314 j|3, 221, 215 72, 415 !ll3,487 I 1 16 51, 451 42, 619 7, 335 95, 073 34,025 12,545 161,192 1922 i 8,380,754 ;!3, 505,551 1472, 5291116,499 ! i 9 ! 51, 901 46,152 7,415 146, 5F8 34, 025 20,458 |61,173 1923 \ 8,612,199 |J3, 833, 735 1466.495 1121,088 j 1,313 ! 52,204 48, 669 7,629 127,169 [34', 025 1,875 27, C20 |56,171 1924 I 8,933,486 |;4,0i;0.067 [443, 8% |121, 200 | 1,560 __| 52,543 53, 803 7, 792 151,467 |34,025 6,774 27,020 56,145 1925 ..! 8,925,922 '13,985.399 19!450. 592•'127,838 I 2,087 i 52,856 54,305 7,981 |Lr6,768 34,025 !14,599 27,213 i 56,085 1926 ', 9,191.219 !'4, 083. 380 j 303 450,557 ! 106, 975 | 7,388 j 86,214 56, 329 8,464 ! 158,105 110,303 117, S0127,032 156,007 1927 -1 9,546,363 ji3, 977,181 I 251 529,134 1105,121 11,883 _ ..: 99,878 100, 746 9,198 |151,978 \ 7,439 119,862 29,737 148,780 2,046 1928 ..JIO.010,178 i1^. 746, 111 | 241 607,290 108,430 !23,743 . J125, 576 148,555 9,529 113,948 j 7,363 !24,271 34,237 46,298 1,124 1929 10,290,638 !;3,900,160 ! 340 |433,932 88,882 j23,727 163,351 150,395 9,997 77,626 ! 7,695 "21,774 37,24!) 46,204 1,114 I j Egypt " En• gland"| Estonia l F a i n n d - France m G a e n r- y Greece G m u a a l t a e- H ga u r n y - India Italy Java Latvia L a i n th ia u- 1913 6,673 170,245' 6, 948!678, 858 278, 687 4,825 123, 921 265,476 10, 398 1914. --- 19,367 428,2231 8, 236! 802, 583 498, 508 7,086 80,068 269, 584 15,118 1915 ----: 35,264 389,203! 8, 230. 967, 950 582,443 10, 939 67, 881 263, 278 12,053 1916 ! -29,318! 402,9711. 8, 232! 652, 886 600, 377 11,378 78,127 223,400 113,411. 29,452 1917. -.-.I 19,075! 422, 592; 8, 227! 639, 682 573, 249 11,907 90,118 206,72l| 229,9801 31,517 1918 l 16,357; 523,689;. 8, 234 j664, 009 538, 861 10, 246 64, 231 202,403! 225, 622j 43,423 i ! 1919 ; 16,475; 583,21l| 8, 227: 694, 847 259, 519 10, 744 128, 819 200, 098 j349, 9711 69,134 1920— -! 16,475! 762,911! 8, 227! 685, 517 260, 028 10, 765 116, 249 204, 372!556,475! 88, 214 1921 I 16,510i 763, 719| 94 8, 227! 690,141 237,102 10, 770 118,341 210, 739 610, 822! 58, 728 2,123 1922 ! 16,619! 751, 597 1,476j 8,371| 708,403 239, 354 5,944 118, 341 217, 284 605, 532; 61,306 2,512 1,519 1923 16,658i 754,400!. 8, 242! 709,480 111, 247 7,182 108,609 215, 6991 602,343j 62,869 3,188 1,645 1924 16, 510! 757, 033 i 1,427 8, 354: 710,394 180, 939 7,533 6,872 108, 609 218,382| 585, 738; 53, 726 4, 555 3,078 M 1925...1 i 16,708 703,482 ,| 8, 357; 710,968 287, 763 7,833 10, 365 108, 609 218, 825i 575, 768 73, 394 4,548 3,229 1926 Ij 17,439 735. 421 1, 353| 8, 250 711,106 436, 235 8,729 2, 535 29, 526 108, 609 220,732| 561,810! 79,369 4, 559 3,136 1927. ! . 18,388! 741, 698 1,377 7, 979 954, 000 444,158 9,903 1,955 34, 432 119, 097 239,1771541, 870| 71, 640 4,570 3,320 1928 i 19,006' 749, 7671 1, 710! 7, 672!1,, 253, 500650,127 7,196 1,977 35,169 123,988 265, 732 540,873 68, 264 4,584 3,427 1929... .[ 18,7891 710, 645| 1,71 7, 608 I,] 633,402543, 838 8,326 2,341 28,465 128,076 273, OOl!542, 475 56,101 4,618 3,508 1 ; Mexico lN l e a t n h d e s r -1 Ze N a e la w nd N w o a r y - Peru Poland ' Po g r a t l u- m R a u n - ia Russia Africa Spain Sw la i n tz d e r-i i g L u T a r y u - : ! s Y la u v g i o a - 1913 60,899 25, 325 11,892 8,140 29, 240 872, 367 34,377 92, 627 27, 372 32, 801 10,826 I 11,194 1914 83, 664 30, 250 10, 290 8,662 29, 733 891, 542 30, 693 110,611 29, 088 45, 922 13,483 !11,034 1915 172, 531 33, 827 13, 837 9,195 42, 647 830, 572 32, 056 167, 375 33, 385 48, 275 22,530 ;12, 381 1916 236, 216 37,414 33, 027 9,247 95, 201 758,962 27,048 241,423 49,183 66, 585 33, 251 12, 321 1917 i 280, 690 39,161 31,193 9, 261 34, 531 666, 523 30, 036 379, 614 65,514 69, 025 42,003 12, 310 1918 277,155 39, 506 32, 691 9,263 34, 466 33, 340 430, 070 76, 532 80,041 46, 718 12, 306 1919 256, 204 38, 260 39, 590 1,644 9,265 34,467 35, 540 472, 064 75, 351 99, 779 56,756 :12, 233 1920 255, 729 37, 263 39,472 2,954 9,267 34, 794 50,441 474, 228 75, 516 104,780 57,307 ! 12, 386 1921 243,600 37, 394 39,474 5,931 9,267 34, 794 () 49, 361 484, 984 73, 631 106, 058 56,813 ; 14,318 1 1 1 9 9 9 2 2 2 3 4 2 2 2 2 3 3 0 3 3 2 , , , 8 8 8 5 7 7 4 6 9 3 3 3 8 7 8 , , , 5 3 2 7 6 9 9 7 0 3 3 3 9 9 9 , , , 4 4 4 5 7 7 7 2 4 2 1 19 9 0 , , , 8 9 7 7 5 3 2 3 3 1 13 9 9 , , , 7 9 0 4 6 9 9 9 9 9 9 9 , , , 2 2 2 6 6 6 7 7 7 4 4 4 6 7 2 , , , 3 8 0 6 2 5 4 2 0 4 73 5 2 , , , 0 6 0 4 0 4 3 9 7 5 5 5 2 3 1 , , , 6 0 5 9 9 0 2 8 0 4 4 4 8 8 8 9 7 7 , , , 8 2 2 4 7 9 1 8 4 6 7 7 3 2 3 , , , 8 4 5 5 2 0 3 8 8 1 1 9 0 0 3 7 3 , , ,2 6 6 8 6 4 3 9 2 5 5 56 6 6 , , , 8 8 8 0 1 1 9 2 2 • 1 1 1 3 2 3 , , , 3 2 9 5 8 6 5 6 5 1925 j 16,683 178,080 37, 667 39, 456 19,164 25, 793 9,267 48, 537 93, 858 43, 594 489, 630 61, 647 90,140 56,815 14, 657 1926 i 4,689 166, 231 38, 007 39.457 20,084 26, 677 9,267 49, 588 84, 605 36, 703 493,489 60,162 91,050 I 56,823 16, 620 1927 ' 5,900 160, 796 38, 280 39.458 19,437 58, 041 9,267 50, 805 97, 043 40, 032 502,484 61, 685 99,785 I 59,319 17,133 1928 I 6,238 174,692 34,873 39, 362 19, 938 69, 685 9,267 49, 324 91, 887 39,273 493, 903 63, 223 102,874 I 68,365 17, 566 1929 i 6,722 179, 881 31, 978 39, 302 78, 598 9,267 55,112 147, 021 36,474 495, 227 65, 569 114,832 I 68,205 18,426 1 Austrian account only. 2 Figures not available. NOTE.—Figures are for central banks only, except in the following countries: United States—Treasury and Federal reserve banks; Argentina—Government conversion fund and Bank of the Nation; Australia— Prior to 1920, Treasury note reserve; subsequently, Commonwealth Bank note reserve; Brazil—Prior to 1923, guaranty of currency fund; subsequently, Bank of Brazil and Government stabilization fund; Canada— Government reserve against Dominion notes and savings-bank deposits, and gold deposits of chartered banks in the central reserve; Chile—Prior to 1926, Government conversion fund; subsequently, Central Bank of Chile; Czechoslovakia—-Prior to 1926, banking office of Minister of Finance; subsequently, Czechoslovak National Bank; England—Bank of England and, prior to 1925, Government reserve against currency notes; India—• Currency and gold standard reserves of Government; Italy—Prior to July, 1926, three banks of issue; subsequently, Bank of Italy; Japan—domestic holdings of Bank of Japan and Government; New Zealand—Six banks of issue; South Africa—Prior to 1921, gold at home of note-issuing joint stock banks; subsequently, South African Reserve Bank. 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172 FEDERAL RESERVE BULLETIN APRIL, 1930 FINAL ACT OF THE HAGUE CONFERENCE Following the report of the committee of concerned also the Governments of Greece, experts on reparations on June 7, 1929 * a Portugal, Poland, Rumania, Czechoslovakia, meeting of delegates of the various countries and Yugoslavia as well as the Governments of concerned was held at The Hague (August 6 Canada, the Commonwealth of Australia, New to 31, 1929). As a result of this first meeting Zealand, the Union of South Africa, and India, at The Hague a protocol 2 was adopted in invited these Governments to take part in the which the report of the experts was approved negotiations and agreements affecting them. in principle, various questions connected with In consequence the delegates of the Governits application were settled, and the necessary ments above mentioned, accompanied by the organization committees were established. The representative of the Government of the United organization committees having submitted States of America in the capacity of observer their reports, the conference resumed its and with specifically limited powers, met in sessions at The Hague on January 3, 1930. conference at The Hague under the chairman- This second meeting, which lasted until Janu- ship of His Excellency, Monsieur Henri Jaspar ary 20, 1930, resulted in a general settlement Prime Minister of Belgium, and as the result of reparation and other financial claims arising of meetings held from August 6 to 31, 1929, the out of the war, although the settlement with following instruments were drawn up: Hungary was not in all respects final, but was (1) Letters of August 30, 1929, relating to rather the definitive basis for a more detailed the evacuation of the Rhineland. agreement to follow. The instruments drawn (2) Agreement dated August 30, 1929, as to up and signed at the second Hague meeting the Franco-German and Belgo-German Comare presented in full below. They become missions of Conciliation established by the effective only upon ratification by the Govern- Treaties of Locarno. ments concerned in accordance with the stipu- (3) Protocol of August 31, 1929, with its lations contained in the various agreements. annexes concerning the approval in principle of the above-mentioned report of the experts, FINAL ACT OF THE HAGUE CONFERENCE the settlement of various questions connected The representatives of Germany, Belgium, with its application, and the establishment of France, Great Britain, Italy, and Japan, meet- various committees intended to prepare the ing at Geneva on September 16, 1928, being putting into force of that report. inspired by the desire which was common to These committees and also the organization all their Governments to reach a speedy settle- committees for which that report provided ment of the questions arising out of the war, have submitted the result of their labors to the declared to this end their agreement on thechairman. following points: Moreover, as it appeared necessary to secure (1) The opening of official negotiations at the same time a general settlement of the relating to the request put forward by the pecuniary liabilities resulting from the treaties Chancellor of the Reich on the subject of theof St. Germain, Neuilly, and Trianon, of Austria, early evacuation of the Rhineland. Bulgaria, and Hungary, these powers were (2) The necessity for a complete and final invited to take part in the negotiations and to settlement of the question of reparations and send their representatives to The Hague. of the constitution for this purpose of a com- These were the circumstances in which the mittee of financial experts nominated by theconference resumed its sittings and the repir six Governments. sentatives of the Governments above men (3) The acceptance of the principle of thetioned met at The Hague on January 3, 1930 constitution of a committee of verification and In consequence of the decision which wa? conciliation, the composition, mode of oper- taken to establish at Basel the seat of the Bank ation, object and duration of this committee for International Settlements, rep.esentatives to form the subject of negotiations between of the Swiss Government werk invited to take the Governments. part for this purpose in the labors of the con- The committee of financial experts met atference. Paris and made its report on June 7, 1929. As a result of meetings held from January The Governments above mentioned, taking 3 to 20, 1930, the following instruments were the view that the conclusions of this report drawn up: 1. Agreement with Germany. 1 See FEDERAL RESERVE BULLETIN for July, pp. 465-495. 2. Agreement with Austria. 2 See FEDERAL RESERVE BULLETIN for December, pp. 792-796. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

APRIL, 1930 FEDERAL RESERVE BULLETIN 173 3. Agreement with Bulgaria. G. de Grunne; the secretary of the Bul- 4. Agreement with Hungary. garian delegation, Doctor Poulieff; the 5. Agreement with Czechoslovakia. secretary of the French delegation, de 6. Convention with Switzerland. Felcourt; the secretary of the British 7. Arrangement relating to the concurrent delegation, Rupert B. Howorth; the secmemorandum accompanying the experts' plan. retary of the Canadian delegation, J. 8. Arrangement between the creditor powers Reid Hyde; the secretary of the Aus- (Germany). tralian delegation, Jas. R. Collins; the 9. Arrangement between the creditor powers secretary of the New Zealand delega- (Austria, Hungary, Bulgaria—Liberation debt), tion, E. Toms; the secretary of the Greek 10. Arrangements as to the financial mobili- delegation, G. Coustas; the secretary of zation of the German annuities. the Hungarian delegation, L. Gajzago; 11. Letters exchanged concerning the Ger- the secretary of the Italian delegation, man-American agreement. Buti; the secretary of the Japanese 12. Letters exchanged concerning the tariffs delegation, H. Kobayashi; the secretary of the German Railway Company. of the Polish delegation, J. Lipski; the 13. Transitory provisions. secretary of the Portuguese delegation, 14. Letters of the German and Belgian Gov- Antonio Potier; the secretary of the ernments on the subject of the agreement on the Rumanian delegation, Savel Radulesco; German marks in Belgium. the secretary of the Czechoslovakian The president announces further that in con- delegation, Arnost Heidrich; the secrenection with The Hague conference the follow- tary of the Yugoslav delegation, VI. ing agreements have been signed by Germany Martinac. concerning the waiver of claims, the liquidation of German property rights and interests, the AGREEMENT operations of the clearing offices, and German marks in Belgium: The representatives of Germany, Belgium, With Belgium: Agreements of'July 13, 1929, France, Great Britain, Italy, and Japan, meetand January 16, 1930. ing at Geneva on September 16, 1928, expressed With Great Britain: Agreement of Decem- their determination to make a complete and ber 28, 1929. final settlement of the question of reparations With France: Agreement of December 31, and, with a view to attaining this object, pro- 1929. vided for the constitution of a committee of With Italy: Agreement of January 20, 1930. financial experts. With Poland: Agreement of October 31, With this object the experts met at Paris and 1929 (deposited together in the archives of the their report was made on June 7, 1929. Apconference). proval in principle was given to this report by With Canada: Agreement of January 14, The Hague protocol of August 31, 1929. 1930. The duly authorized representatives of the With the Commonwealth of Australia: Government of the German Reich, the Govern- Agreement of January 17, 1930. ment of His Majesty the King of the Belgians, With New Zealand: Agreement of January the Government of the United Kingdom of 17, 1930. Great Britain and Northern Ireland, the Gov- The present act will remain deposited in the ernment of Canada, the Government of the archives of the Belgian Government, which will Commonwealth of Australia, the Government deliver an authentic copy to each of the Govern- of New Zealand, the Government of the Union ments which have taken part in The Hague of South Africa, the Government of India, the conference and also to the powers signatory of Government of the French Republic, the Govthe treaties of peace of Versailles, St. Germain, ernment of the Greek Republic, the Government Neuilly, and Trianon. of His Majesty the King of Italy, the Govern- Done at The Hague in a single copy the 20th ment of His Majesty the Emperor of Japan, January, 1930. the Government of the Republic of Poland, the The president of the conference, Henri Government of the Republic of Portugal, the Jaspar; the secretary general, M. P. A. Government of His Majesty the King of Hankey; the secretary of the German Rumania, the Government of the Czechodelegation, Doctor Boltze; the secretary slovak Republic and the Government of His of the Austrian delegation, Doctor Hans; Majesty the King of Yugoslavia have reached the secretary of the Belgian delegation, the following agreement: Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

174 FEDERAL RESERVE BULLETIN APRIL, 1930 ARTICLE I of this agreement, connected with the World War, the armistice conventions, the treaty of The experts' plan of June 7, 1929, together Versailles, or any agreements made for their with this present agreement and the protocol of execution: August 31, 1929 (all of which are hereinafter (1) Claims relating to property or pecuniary described as the new plan), is definitely accepted rights of prisoners of war in so far as they have as a complete and final settlement, so far as not already been settled by special agreements. Germany is concerned, of the financial ques- (2) Claims seeking to obtain the reimbursetions resulting from the war. By their accept- ment of payments made under paragraph 11 of ance the signatory powers undertake the obliga- the annex to article 296 of the treaty of tions and acquire the rights resulting for them, Versailles. respectively, from the new plan. (3) Claims relating to loans issued by the The German Government gives the creditor former German colonies. powers the solemn undertaking to pay the (4) Any claims, whether for a payment or for annuities for wxhich the new plan provides in property, which the German Government has accordance with the stipulations contained presented or might present for its own account therein. other than State claims notified, under the ARTICLE II clearing procedure provided for under articles 296 and 72 of the treaty of Versailles, by the As from the date when the new plan is put creditor to the debtor office. into execution as provided in the final clause (6) By way of reciprocity the creditor powers of this present agreement, Germany's previous accept in conformity with the recommendation obligation is entirely replaced, except in respect of paragraph 96 of the experts' report of June 7, of the German external loan, 1924, by the 1929, the payment in full of the annuities fixed obligation laid down in the new plan. The thereby as a final discharge of all the liabilities payment in full of the annuities there menof Germany still remaining undischarged and tioned, in so far as the same are due to the waive every claim additional to those annuities, creditor powers, is accepted by those powers as either for a payment or for property, which has a final discharge of all the liabilities of Gerbeen addressed or might be addressed to Germany still remaining undischarged, referred to many for any past transaction falling under the in Section XI of Part I of the Dawes plan as same heads of claim as those appearing under interpreted by the decisions of the interpreta- (1) to (4) above. tion tribunal set up under the London agree- (c) The provisions of the present article do ment of August 30, 1924. not affect the execution of agreements later in date than January 10, 1920, for the abandon- ARTICLE III ment of the liquidation of German private A. The signatory Governments recognize property, rights, or interests or the restitution that the accounts between the Reparation either of those properties, rights, or interests or Commission and Germany relating to trans- the proceeds of their liquidation. actions prior to the period of the Dawes plan, C. (a) The creditor Governments undertogether with all accounts involving credits to take, as from the date of the acceptance of the Germany, either now or in the future, against experts' report of June 7, 1929, to make no the original capital debt are henceforth obsolete further use of their right to seize, retain, and and without practical effect and declare them liquidate the property, rights, and interests of closed in their present condition. German nationals or companies controlled by B. (a) In execution of paragraph 143 of the them, in so far as not already liquid or liquiexperts7 report of June 7, 1929, on the under- dated or finally disposed of, including the rights standing that the following declaration is to of the signatory creditor powers under article be considered as a full compliance with the 306, paragraphs (5), (6), and (7) of the treaty requirements of that paragraph as to a waiver, of Versailles. Germany declares that she waives every claim (b) The execution of this undertaking will be as defined by the following list, whether for a regulated by special agreements between the payment or for property, which she may have German Government and each of the Governaddressed or might hereafter address to the ments concerned. Reparation Commission or to any creditor (c) The signatory Governments will use power signatory of the present agreement for every effort to clear up definitely all outstandan}7 transaction prior in date to the signature ing questions relating to the execution of this Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

APRIL, 1930 FEDERAL RESERVE BULLETIN 175 undertaking within one year after the coming ARTICLE VI into force of the new plan. (d) This undertaking has no application in The contracting parties recognize the necescases where special settlements have already sity, with a view to putting into force the new been made. plan, of the constitution of the Bank for D. All or some of the questions mentioned in International Settlements. They recognize the present article as to the waiver of claims the corporate existence of the bank to take and the cessation of liquidation are governed, effect as soon as it is constituted in accordance as between the German Government on the one with the statutes annexed to the law incorhand and the following Governments respec- porating the bank which is the subject of the tively on the other hand, by the agreements convention concluded with the Government of concluded on the following dates, that is to say: the Swiss Confederation. Belgium, July 13, 1929, and January 16, 1930; Great Britain, December 28, 1929; Canada, ARTICLE VII January 14, 1930; Commonwealth of Australia, January 17, 1930; New Zealand, January 17, The Government of the Reich will deliver 1930; France, December 31, 1929; Italy, to the Bank for International Settlements, as January 20, 1930; Poland, October 31, 1929. trustee for the creditor powers, the debt certificate referred to in Annex III. Further, the German Government guarantees ARTICLE IV that the German Railway Company (Deutsche From and after the date on which the new Reichsbahngesellschaft) will deliver to the plan comes into force, the Office for Reparation Bank for International Settlements the certifi- Payments and the organizations in Berlin con- cate mentioned in Annex IV. nected therewith shall be abolished and the relations with Germany of the Reparation ARTICLE VIII Commission shall come to an end. Under the regime of the new plan only those With a view to facilitating the successful of the functions of these organizations the working of the new plan the German Governmaintenance of which is necessitated by the ment declares spontaneously that it is firmly new plan will continue in existence; these determined to make every possible effort to functions will be transferred to the Bank for avoid a declaration of postponement and not International Settlements by the " small special to have recourse thereto until it has come to committee "; the Bank for International Settle- the conclusion in good faith that Germany's ments will exercise them within the conditions exchange and economic life may be seriously and limits of the new plan in conformity with endangered by the transfer in part or in full of the provisions of its statutes. the postponable portion of the annuities. It Under the regime of the new plan the powers remains understood that Germany alone has of the creditor powers in relation to Germany authority to decide whether occasion has will be determined in accordance with the pro- arisen for declaring a postponement as provisions of the plan. vided by the new plan. In regard hereto the representatives of the Belgian, British, French, Italian and Japanese ARTICLE IX Governments, and the representatives of the German Government have made the declara- The German Government undertakes to tions contained in Annex I. take the measures necessary for the enactment The other measures necessary in view of the of the special laws required for the application change from the present system to that of the of the new plan; that is to say (a) the law for new plan are those provided for in Annex II the amendment of the bank law of August 30, 1924, in accordance with Annex V; (b) the law for the amendment of the law of the Deutsche ARTICLE V Reichsbahngesellschaft, in accordance with The annuities mentioned in the present Annex VI. agreement include tha amounts required for These laws may only be amended in the the service of the German external loan, 1924. conditions and in accordance with the pro- These annuities do not include the amounts cedure laid down by Annexes VA and VIA. which the experts' plan of June 7, 1929, assigns The German Government further underto the United States of America. takes to apply the provisions contained in 103025—30 4 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

176 FEDERAL RESERVE BULLETIN APRIL, 1930 Annexes VII and XI relating to the assignment or in consequence of the termination of the of the proceeds of certain taxes by way of Dawes plan, diminishes or varies the nature collateral security for the service of the several and extent.of its prior obligations and engageparts of the German annuities. ments assumed under the general bond securing said loan, all of which are preserved in ARTICLE X their integrity. The Governments of the other signatory powers similarly confirm and recog- The contracting parties will take in their nize the absolute prior position of the service respective territories the measures necessary of the German external loan, 1924, and declare, for securing that the funds and investments of in so far as they are concerned, that all the the bank, resulting from the payments by priorities, securities, and rights hitherto granted Germany, shall be freed from all national or said loan remain unimpaired including those local fiscal charges. under the London protocol dated August 30 r The bank, its property and assets, and also 1924. In particular, but without limiting the the deposits of other funds intrusted to it, on foregoing general declarations, the Governthe territory of, or dependent on the adminis- ments of the German Reich and of the other tration of, the parties shall be immune from signatory powers recognize that the specific any disabilities and from any restrictive meas- first prior charge for the benefit of the said ures such as censorship, requisition, seizure, or loan continues to attach to all payments hereconfiscation, in time of peace or war, reprisals, after to be made by Germany for reparation or prohibition, or restriction of export of gold or other treaty costs, including not only the noncurrency and other similar interferences, re- postponable portion of the German annuities strictions, or prohibitions. to be paid into the annuity trust account but also the postponable portion of the German ARTICLE XI annuities to be paid into the annuity trust account; and the said powers accordingly The Governments of the creditor powers have agree that the amounts currently required settled the text of a trust agreement, appearing for the service of said loan shall be paid out of in Annex VIII, for the receipt, management, said annuities to, or upon the order of, the and division of the German annuities. trustees of said loan in priority to any other The Bank for International Settlements upon disbursements made therefrom. The Governits establishment will be invited to give its ment of the German Reich further accepts and adhesion to the agreement, and the Governconfirms the provisions for the security of the ments referred to will appoint delegates with German external loan, 1924, which are conthe powers necessary to sign. tained in Annex XI, of which the English text The German Government declares that it has is alone authentic. been informed of the text of the agreement. ARTICLE XII ARTICLE XIV The system of deliveries in kind will be gov- The creditor powers recognize that their acerned by the provisions contained in Annex IX ceptance of the solemn undertaking of the hereto and in the second Annex to the Protocol German Government replaces all controls, of August 31, 1929. special securities, pledges, or charges existing The methods of administering the law of at the present time, with the exception of those Great Britain entitled "The German reparation specially mentioned in Article XIII and in (recovery) act, 1921/' and the levy on German Annexes VI, VII, and XI. imports into France have been settled by agreements between the German Government on the ARTICLE XV one hand and the British and French Govern- 1. Any dispute, whether between the Govments, respectively, on the other; the text of ernments signatory to the present agreement these agreements is set out in Annex X. or between one or more of those Governments and the Bank for International Settlements, ARTICLE XIII as to the interpretation or application of the The German Government confirms all th new plan shall, subject to the special provisions priorities, securities and rights hitherto created of Annexes I, VA, VIA, and IX be submitted for the benefit of the German external loan, for final decision to an arbitration tribunal of 1924, and declares that nothing in the new plan five members appointed for five years, of whom Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

APRIL, 1930 FEDERAL RESERVE BULLETIN 177 one, who will be the chairman, shall be a citizen t( make any interlocutory order with a view to of the United States of America, two shall be pie venting any violation of the rights of the nationals of States which were neutral during parties. the late war; the two other shall be respectively, 5. In any proceedings before the tribunal a national of Germany and a national of one the parties shall always be at liberty to agree of the powers which are creditors of Germany to submit the point at issue to the chairman For the first period of five years from the or any one of the members of the tribunal date when the new plan takes effect this tri- chosen as a single arbitrator. bunal shall consist of the five members who at 6. Subject to any special provisions which present constitute the arbitration tribunal may be made in the submission—provisions established by the agreement of London of which may not in any event affect the right August 30, 1924. of intervention of a third party—the procedure 2. Vacancies on the tribunal, whether they before the tribunal or a single arbitrator shall result from the expiration of the five yearly be governed by the rules laid down in Annex periods or occur during the course of any such XII. period shall be filled, in the case of a member The same rules, subject to the same reservawho is a national of one of the powers which tion, shall also apply to any proceedings before are creditors of Germany, by the French this tribunal for which the annexes to the Government, which will first reach an under- present agreement provide. standing for this purpose with the Belgian, 7. In the absence of an understanding on the British, Italian, and Japanese Governments; terms of submission, any party may seize the in the case of the member of German nation- tribunal directly by a proceeding ex parte, and ality, by the German Government; and in the the tribunal may decide, even in default of apcases of the three other members by the six pearance, any question of w^hich it is thus Governments previously mentioned acting in seized. agreement, or in default of their agreement, 8. The tribunal, or the single arbitrator, by the president for the time being of the may decide the question of their own jurisdic- Permanent Court of International Justice. tion, provided always that, if the dispute is 3. In any case in which either Germany or one between Governments and a question of the bank is plaintiff or defendant, if the chair- jurisdiction is raised, it shall, at the request ol man of the tribunal considers, at the request of either party, be referred to the Permanent one or more of the creditor Governments parties Court of International Justice. to the proceedings, that the said Government or 9. The present provisions shall be duly ac- Governments are principally concerned, he will cepted by the bank for the settlement of any invite the said Government or Governments to dispute which may arise between it and one appoint—and in the case of more Governments or more of the signatory Governments as to than one by agreement—a member, who will the interpretation or application of its statutes take the place on the tribunal of the member or the new plan. appointed by the French Government. In any case in which, on the occasion of a FINAL CLAUSE dispute between two or more creditor Governments, there is no national of one or more of M. Henri Jaspar, Prime Minister of Belgium those Governments among the members of the as chairman of The Hague Conference of 1930, tribunal, that Government or those Govern- will deliver to each of the signatory Governments shall have the right to appoint each a ments a certified copy of the present agreement member who will sit on that occasion. If the (which expression here, and in all places where chairman considers that some of the said the context admits, includes the annexes hereto) Governments have a common interest in the immediately after signature. The French and dispute, he will invite them to appoint a single English texts are both, in the absence of special member. Whenever, as a result of this pro- provision to the contrary, authentic, provided vision, the tribunal is composed of an even that, for the certificates mentioned in Article number of members, the chairman shall have a VII and the German laws mentioned in Article casting vote. IX of the present agreement the German text, 4. Before and without prejudice to a final and for the provisions of Annex XI the English decision, the chairman of the tribunal, or, if he text, alone will be authentic. is not available in any case, any other member The present agreement shall be ratified and appointed by him, shall be entitled, on the the deposit of ratifications shall be made at request of any party who makes the application, Paris with the French Government. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

178 FEDERAL RESERVE BULLETIN APRIL, 1930 The powers of which the seat of government Done in a single copy at The Hague, the 20th is outside Europe will be entitled merely to day of January, 1930." inform the French Government through their Curtius, Wirth, Schmidt, Moldenhauer, diplomatic representatives at Paris that their Henri Jaspar, Paul Hymans, E. Francratification has been given; in that case they qui, Philip Snowden, Peter Larkin, must transmit the instrument of ratification as Granville Ryrie, E. Toms, Philip Snowsoon as possible. den, Philip Snowden, Henri Cheron, The new plan will come into force and will Loucheur, N. Politis, J. G. Politis, A. be considered as having been put into execu- Mosconi, A. Pirelli, Suvich, M. Adatci, tion on the date on which the Reparation K. Hirota, J. Mrozowski, R. Ulrich, Commission and the chairman of the Kriegslas- Tomaz Fernandes, G. G. Mironesco, tenkommission have agreed in reporting— N. Titulesco, J. Lugosiano, Al. Zeuce- (1) The ratification of the present agree- ano, Dr. Eduard Bene&, Stefan Osusky, ment by Germany and the enactment of the Dr. V. Marinkovitch, Const. Fotitch. German laws in accordance with the relative annexes. LIST OF ANNEXES (2) The ratification of the present agreement Page by four of the following powers; that is to say, ANNEX I. Exchange of declarations between Belgium, Great Britain, France, Italy, and the representatives of the Belgian, British, French, Italian, Japan. and Japanese Governments on (3) The constitution of the Bank for Inter- the one hand and of the Gernational Settlements and the acceptance by the man Government on the other. 178 bank of the undertakings by it for which the ANNEX II. Measures of transition 180 present agreement provides, and also its receipt ANNEX III. Debt certificate of the German Reich 181 of the certificate of the German Government ANNEX IV. Certificate of the German Railway and the certificate of the German Railway Company 185 Company as provided in Annexes III and IV. ANNEX V. Provisions to be inserted or maintained in the German bank The report of the Reparation Commission law 185 shall require a unanimous vote of the members ANNEX VA. Procedure for the modification of of the commission as constituted for the pur- certain provisions of the Gerposes of the treaty of Versailles when a ques- man bank law 187 tion concerning Germ any is under consideration, ANNEX VI. Law for the amendment of the law on the Deutsche Reichsthe Japanese delegate nevertheless taking part bahngesellschaf t 188 in the discussion and giving his vote. ANNEX VIA. Procedure for the amendment of The report of the Reparation Commission the law on the Deutsche Reichsbahngesellschaf t 199 and the chairman of the Kriegslastenkommis- ANNEX VII. Assignment by way of " collateral sion will be notified to all the powers signatory guaranty" of certain revenues of the present agreement. of the German Reich 200 Provided always that the substitution of the ANNEX VIII. Trust agreement 201 obligations and annuities of the new plan for ANNEX IX. Rules for deliveries in kind 207 ANNEX X. Agreements between Germany those of the experts' plan of April 9, 1924, shall and Great Britain and between date from September 1, 1929, regard being had Germany and France as to the to the provisions of The Hague Protocol of " German reparation (recovery) act" and corresponding French August 31, 1929, and of Annex II to the preslegislation 217 ent agreement. ANNEX XI. Securities for the German exter- The present agreement will come into force nal loan 218 for each Government other than the four of \NNEX XII. Rules of procedure of the arbitral tribunal 219 those mentioned above by name who first ratify, on the date of notification or deposit ANNEX I of ratification. Provided always that any such ratification Exchange of declarations between the Belgian, shall have the same effect as if it had taken British, French, Italian, and Japanese Govplace before the report of the Reparation Comernments on the one hand and the German mission and the chairman of the Kriegslas- Government on the other tenkommission. The French Government will transmit to The representatives of the Belgian, British, all the signatory Governments a certified copy French, Italian, and Japanese Governments of the proces-verbaux of the deposit. make the following declaration: Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

179 APRIL, 1930 FEDERAL RESERVE BULLETIN The new plan rests on the principle that the whether the German Government had comcomplete and final settlement of the reparation mitted acts revealing its determination to question is of common interest to all the coun- destroy the new plan. tries which this question concerns and that the Germany should forthwith declare that, in the plan requires the collaboration of all these coun- event of an affirmative decision by the court, tries. Without mutual good will and confi- she acknowledges that it is legitimate that, in dence the object of the plan would not be order to insure the fulfillment of the obligations attained. of the debtor power resulting from the new It is in this sense that the creditor Govern- plan, the creditor power or powers should ments have, in The Hague agreement of Jan- resume their full liberty of action. uary, 1930, accepted the solemn undertaking The creditor Governments are convinced that of the German Government to pay the annui- such a hypothetical situation will never in fact ties fixed in accordance with the provisions of arise and they feel assured that the German the new plan as the guaranty for the fulfillment Government shares this conviction. But they of the German Government's obligations. The consider that they are bound in loyalty and by creditor Governments are convinced that, even their duty to their respective countries to make if the execution of the new plan should give the above declaration in case this hypothetical rise to differences of opinion or difficulties, the situation should arise. procedures provided for by the plan itself would The representatives of the German Govbe sufficient to resolve them. ernment, on their side, make the following It is for this reason that The Hague agree- declaration: ment of January, 1930, provides that, under The German Government takes note of the the regime of the new plan, the powers of the above declaration of the creditor Governments creditor powers shall be determined by the pro- whereby, even if the execution of the new plan visions of the plan. should give rise to differences of opinion or There remains, however, a hypothesis out- difficulties in regard to the fulfillment of the side the scope of the agreements signed to-day. new plan, the procedures provided for in the The creditor Governments are forced to con- plan would be sufficient to resolve them. sider it without thereby wishing to cast doubt The German Government takes note accordon the intentions of the German Government. ingly that under the regime of the new plan the They regard it as indispensable to take account powers of the creditor powers will be deterof the possibility that in the future a German mined in accordance with the provisions of Government, in violation of the solemn obliga- the plan. tion contained in The Hague agreement of As regards the second part of the declara- January, 1930, might commit itself to actions tion and the hypothesis formulated in this revealing its determination to destroy the new declaration, the German Government regrets plan. that such an eventuality, which for its part it It is the duty of the creditor Governments to regards as impossible, should be contemplated. declare to the German Government that if such Nevertheless, if one or more of the creditor a case arose, imperiling the foundations of their powers refer to the Permanent Court of Intercommon work, a new situation would be created national Justice the question whether acts in regard to which the creditor Governments originating with the German Government remust, from the outset, formulate all the reserva- veal its determination to destroy the new plan, tions to which they are rightfully entitled. the German Government, in agreement with However, even on this extreme hypothesis, the creditor Governments, accepts the proposal the creditor Governments, in the interests of that the Permanent Court should decide the general peace, are prepared, before taking any question, and declares that it acknowledges action, to appeal to an international jurisdiction that it is legitimate, in the event of an affirmaof incontestable authority to establish and tive decision by the court, that, in order to appreciate the facts. The creditor power or insure the fulfilment of the financial obligapowers which might regard themselves as con- tions of the debtor powder resulting from the cerned, would therefore submit to the Perma- new plan, the creditor power or powers should nent Court of International Justice the question resume their full liberty of action. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

180 FEDERAL RESERVE BULLETIN APRIL, 1930 The French, German, and English texts of amounts due by her during the same period, the present annex are equally authoritative. whether under the fifth annuity of the Dawes CUHTIUS. plan or under the new plan, and the provisions WIRTH. of Section II of Annex III and Section I of SCHMIDT, Annex IV of The Hague protocol, will be MOLDENHAUER reimbursed to Germany. HENRI JASPAR. (ii) For the whole of the period during PAUL HYMANS. which the agent general for reparation pay- E. FRANCOUI. ments has had such a surplus at his disposal, PHILIP SNOWDEN. interest will be credited to Germany in so far HENRI CHERON. as the agent general has received interest by LOUCHEUR. the investment in reichsmarks of the sums at A. MOSCONI. his disposal up to the amount of that surplus; A. PIRELLI. interest will be debited to Germany in so far SUVICH. as, and for the period during which, the pay- ADATCI. ments made by her have been less than those K, HlROTA. which she would have made if the new plan had been put into force on September 1, 1929, ANNEX II regard being had to the sums referred to in the two following paragraphs; this interest will be calculated at a rate equal to that of the average Measures of transition interest produced by the total surplus to be reimbursed to Germany 1. The transfer to the Bank for International Settlements of the documents belonging to the (Hi) The sum of 6,000,000 reichsmarks re- Reparation Commission and the organizations ferred to in section 2 of Annex III to The of the Dawes plan, will take place in so far Hague protocol is to be deemed due by only as may be deemed by the small special Germany on the day on which the agent general committee referred to in Annex V of the experts' for reparation payments received from Gerreport of June 7, 1929 (sec. 166) to be strictly many payments in excess of the amounts due necessary for the exercise of the functions of under the new plan sufficient to cover that the Bank for International Settlements. sum. 2. (i) Germany's previous obligation, except (iv) The sum of 30,000,000 reichsmarks rein respect of the German external loan 1924, ferred to in section 1 of Annex IV to The being entirely replaced by the obligation laid Hague protocol is to be deemed due by Gerdown in the new plan, the German A, B, and many as follows: C bonds, the bonds of the Deutsche Reichs- 5,000,000 reichsmarks on September 20, 1929 bahngesellschaft the German industrial bonds 5,000,000 reichsmarks on October 20, 1929. 5,000,000 reichsmarks on November 20, 1929. aud the bonds of the Bank fur Deutsche 5,000,000 reichsmarks on December 20, 1929. Industrie Obligationen are finally cancelled and the balance (10,000,000 reichsmarks) on December shall be destroyed 31, 1929. (u) The claims of Germany against Austria, (v) The balance of the above interest account Hungary, and Bulgaria referred to in article will be settled when the principal sum due to 261 of the treaty of Versailles and the debts of Germany is reimbursed in accordance with Germany referred to in articles 213 of the the complete settlement of accounts to be treaty of St. Germain, 196 of the treaty of approved by the small special committee. Trianon and 145 of the treaty of Neuilly are (vi) This settlement of accounts is without finally cancelled and the securities and docu- prejudice to the right of the German Governments relating thereto shall be destroyed ment to recover any savings made on the (Hi) The measures to be taken for the amount of 6,000,000 reichsmarks referred to destruction of the instruments above mentioned in paragraph (Hi) above by the Reparation will be settled by the small special committee. Commission and the organizations of the 3. (i) As soon as the new plan has been put Dawes plan whose expenses have hitherto been into force the accounts of the transitional covered by the Dawes annuities The amount period referred to in Annex III, Article I (1) of these economies, if any will be notified and and (2) to The Hague protocol of August 31 paid to the German Government as soon as 1929 will be closed. Sums in fact paid by the Reparation Commission is in a position to Germany during that period in excess of the do so. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

181 APRIL, 1930 FJEDERAL RESERVE BULLETIN ANNEX III Millions of reichsmarks Apr. 1, 1970-Mar. 31, 1971 1602.9 Debt certificate oj the German Reich Apr. 1, 1971-Mar. 31, 1972 1613. 1 Apr. 1, 1972-Mar. 31, 1973 1621. 5 I Apr. 1, 1973-Mar. 31, 1974 1624. 9 Apr. 1, 1974-Mar. 31, 1975 1627. 6 The German Government, by this present Apr. 1, 1975-Mar. 31, 1976 1634.2 certificate, undertakes a solemn engagement Apr. 1, 1976-Mar. 31, 1977 1637. 9 subject to the stipulations of the new plan Apr. 1, 1977-Mar. 31, 1978 1644. 6 Apr. 1, 1978-Mar. 31, 1979 1654. 7 as defined by Article I of the Agreement of Apr. 1, 1979-Mar. 31, 1980 1659. 6 The Hague of January 1930, to pay to the Apr. 1, 1980-Mar. 31, 1981 1670. 5 Bank for International Settlements as trustee Apr. 1, 1981-Mar. 31, 1982 1687.6 for the creditor powers, and not to any other Apr. 1, 1982-Mar. 31, 1983 1691. 8 Apr. 1, 1983-Mar. 31, 1984 1703. 3 agent nor by way of direct payment to any Apr. 1, 1984-Mar. 31, 1985 1683. 5 one of its creditors, and in conformity with Apr. 1, 1985-Mar. 31, 1986 925. 1 the following provisions, the annuities set Apr. 1, 1986-Mar. 31, 1987 931. 4 out in the following table plus the sums re- Apr. 1, 1987-Mar. 31, 1988 897. 8 quired for the service of the German external The service of the German external loan, loan, 1924, as provided in the general bond 1924, shall constitute a part of the annuities dated October 10, 1924. The annuities set payable during the respective annuity years out in the table shall be paid by equal monthly until said loan is fully redeemed, and the installments on the 15th of each month, and if amount required for the service of the loan in the 15th is not a working day then on the each annuity year as determined by the trustees working day next following. of said loan shall be added to the amounts speci- Millions of reichsmarks fied in the foregoing table in determining the •Sept.1, 1929-Mar. 31, 1930 676.9 aggregate sum of each annuity payable there- Apr. 1, 1930-Mar. 31, 1931 1641. 6under. The annual amounts payable for the Apr. 1, 1931-Mar. 31, 1932 1618. 9service of the loan shall be treated as payments Apr. 1, 1932-Mar. 31, 1933 1672. 1 on account of the nonpostponable portion of Apr. 1, 1933-Mar. 31, 1934 1744. 9 Apr. 1, 1934-Mar. 31, 1935 1807.5 the respective annuities and shall be transferred Apr. 1, 1935-Mar. 31, 1936 1833. 5when received to the credit of the trustees for Apr. 1, 1936-Mar. 31, 1937 1880. 3the German external loan, 1924. Apr. 1, 1937-Mar. 31, 1938 1919. 8 Apr. 1, 1938-Mar. 31, 1939 1938. 1 Apr. 1, 1939-Mar. 31, 1940 1983.4 II Apr. 1, 1940-Mar. 31, 1941 2096. 1 Apr. 1, 1941-Mar. 31, 1942 2114.6 1. Except for any period in which the trans- Apr. 1, 1942-Mar. 31, 1943 2131.9 fer of the postponable portion of the annuity Apr. 1, 1943-Mar. 31, 1944 2128.2 Apr. 1, 1944-Mar. 31, 1945 2141.4 is suspended, the monthly payments of the Apr. 1, 1945-Mar. 31, 1946 2137. 7Reich must be made in currencies other than Apr. 1, 1946-Mar. 31, 1947 2133.4 the reichsmark. Apr. 1, 1947-Mar. 31, 1948 2149. 1 2. Provided always that with a view to the Apr. 1, 1948-Mar. 31, 1949 2143. 9 Apr. 1, 1949-Mar. 31, 1950 2240.7 execution of the programs relating to deliv- Apr. 1, 1950-Mar. 31, 1951 2283. 1eries in kind and of the arrangements under the Apr. 1, 1951-Mar. 31, 1952 2267. 1reparation recovery acts, and with a view to Apr. 1, 1952-Mar. 31, 1953 2270. 1 meeting any administrative expenses incurred Apr. 1, 1953-Mar. 31, 1954 2277. 2 Apr. 1, 1954-Mar. 31, 1955 2288.5 in Germany, the Bank for International Set- Apr. 1, 1955-Mar. 31, 1956 2283. 7tlements may request that a corresponding part Apr. 1, 1956-Mar. 31, 1957 2278. 1of these payments may be made in reichsmarks. Apr. 1 1957-Mar. 31, 1958 2285.7 3. The bank may notify to the German Apr. 1, 1958-Mar. 31, 1959 2317. 7 Apr. 1, 1959-Mar. 31, 1960 2294. 5Government and the Reichsbank simultane- Apr. 1, 1960-Mar. 31, 1961 2304.4 ously one month at least in advance of the pay- Apr. 1, 1961-Mar. 31, 1962 2322.2 ment dates the bank's preferences with respect Apr. 1, 1962-Mar. 31, 1963 2314. 1 to the currencies in which payment is to be Apr. 1, 1963-Mar. 31, 1964 2326.5 made. In case these preferences are not com- Apr. 1, 1964-Mar. 31, 1965 2326.0 Apr. 1, 1965-Mar. 31, 1966 2352. 7plied with, the Government of the Reich may Apr. 1, 1966-Mar. 31, 1967 1566.9 make payment of such parts of the German Apr. 1, 1967-Mar. 31, 1968 1566. 1annuities as do not relate to the service of the Apr. 1, 1968-Mar. 31, 1969 1575. 9 German external loan, 1924, in the currencies Apr. 1, 1969-Mar. 31, 1970 1589. 2 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

182 FEDERAL RESERVE BULLETIN APRIL, 1930 of the creditor countries whose nationals were required for the service of the German external members of the committee of experts of 1929, loan, 1924; each coupon is divided into two divided as nearly as possible in proportion to parts—part A represents that part of the their respective shares, it being, however, annuity which is mobilizable and nonpostponunderstood that payments in currencies other able; part B, the postponable portion of each than the reichsmark which are not on a gold or annuity. Each part of the annuity coupon gold exchange standard shall be made only with enjoys absolutely equal rights throughout the consent of the bank. except with regard to the possibility of post- 4. The Bank for International Settlements ponement hereinafter provided for. shall give its receipt to the German Govern- 2. The bank shall distribute moneys in ment for all sums which it pays or causes to be payment of the mobilized or mobilizable porpaid under this certificate. The receipt shall tions of the annuity coupon among the whole of make note of the currencies received, but credit the bondholders and the creditor Governments shall be given to the German Government in in proportion to the rights of each to share in the reichsmark equivalent of these currencies. the portion of the annuity coupons not subject The bank's receipt giving credit in reichs- to postponement, without allowing a priority marks for payments made to the Bank for of any kind to any tranche or to any claim. It International Settlements by the German Gov- will distribute the moneys relating to the ernment or on its behalf for the execution of the nonmobilizable portions of the annuity coupons new plan, shall during the normal operation of amongst the creditor Governments, the transfer the new plan constitute a complete and suffi- of these moneys taking place only after the cient discharge of the obligations of the German transfer of the moneys relating to the mobilized Government with respect to such payments. or mobilizable portion of the annuity coupon. Should, however, transfer postponement be in whole or partial effect, the bank's receipt IV giving credit in reichsmarks shall constitute a 1. The service of interest and amortization complete and sufficient discharge of the obligaof the mobilizable or mobilized portions of the tions of the German Government with respect annuity coupons shall be paid to the bank in to all payments into the annuity trust account currencies other than the reichsmark by the made in foreign exchange and with respect to German Reich without any reservation, i. e., on such portions of the payments made in reichsits own responsibility. The financial service of marks as in the opinion of the bank provide these mobilizable or mobilized portions of the current funds for deliveries in kind or services. annuities shall constitute a final and uncondi- As to the remainder, the receipt of the bank tional international obligation in the ordinary shall be in the nature of a temporary acknowlfinancial sense of the word. edgment only. 2. Furthermore, upon the request of the 5. The German Government undertakes Bank for International Settlements, acting as that the reichsmark shall have and retain its trustee of the creditor powers, if and in so far as convertibility into gold or devisen as contemthe bank considers such a course opportune, plated in section 31 of the Reichsbank law of Germany undertakes to substitute for part A August 30, 1924, and that in all circumstances of the coupons issuable bonds bearing its name, for the general purposes of the new plan the representing, on the same conditions as this reichsmark shall have and shall retain a mint certificate and the said coupons, an obligation parity of 1/2790 kilogram of fine gold as defined of the Reich. The amount and form of these in the German coinage law of August 30, 1924. bonds and the specifications of the currency in Sums paid in currencies other than reichswhich they shall be issued shall be fixed by the marks into the annuity trust account shall be bank. calculated in terms of reichsmarks subject to 3. If any one or more of the creditor States the provisions of the last preceding paragraph should intend to utilize internal issues of at the average of the mean rates (Mittelkurs) German bonds in connection with operations for prevailing on the Berlin Bourse during the 15 the conversion of national debt, such bonds days preceding the date of payment. shall be quoted only on their market of issue. Ill 4. If and in so far as Germany shall redeem reparation loans (general or conversion loans) 1. To this certificate are attached coupons which can be redeemed before their due date representing each the whole of one annuity according to the issue conditions, the part of payable, after deduction of the amounts the annuity destined for the service of the loan Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

183 APRIL, 1930 FEDERAL RESERVE BULLETIN" so redeemed will accrue to Germany. It is 6. Any sum in reichsmarks the transfer of understood that the bank will, as far as possible, which is postponed shall be deposited to the make every effort to secure that loans will not account of the Bank for International Settlebe issued without granting to Germany an ments at the Reichsbank for eventual release of appropriate right of anticipated redemption. balances not absorbed by deliveries in kind, 5. Germany shall have the right to redeem against payments in foreign currencies by the all or any part of the not yet mobilized annui- German Government. At all times the emties (parts A and B of the coupons) on a basis ployment, whether for investment or for deof 5}i per cent discount. liveries in kind, of reichsmarks so deposited shall be subject to agreement between the V Reichsbank and the Bank for International 1. The payment of the nonmobilizable por- Settlements. tion of the annuity coupons shall be made to 7. In settling the way in which these sums the Bank for International Settlements by the are to be employed account shall be taken of German Government in the same conditions as the possibility of establishing special programs that of the mobilized or mobilizable portion of in conformity with the procedure, provision for the annuity coupons. which is made in Appendix I to Annex II to The 2. Nevertheless (a) bonds representing the Hague protocol of August 31, 1929. nonmobilizable portion of the annuity coupons 8. Interest at the rate of 1 per cent per ancannot be created except with the consent of num above the prevailing Reichsbank discount the German Government; (6) it is in respect of rate, or 5K per cent, whichever is lower, shall the nonmobilizable portion of the annuity cou- be paid half-yearly by the German Governpons that the German Government may avail ment on the daily amount of the sums the itself of the right of postponing transfer or pay- transfer or payment of which has been postment on the following conditions. poned and which have not been invested or 3. The German Government, by giving at utilized for deliveries in kind. This interest least 90 days' previous notice, shall have the shall be treated in all respects similarly to the right to suspend for a maximum period of two principal sum upon which it accrues, and the years from its due date all or part of the trans- return upon that portion of the funds actually fer of the postponable part of the annuity. invested shall be for the account of the creditor Transfer postponement thus declared shall powers. affect the postponable annuity as and from 9. At the end of any period in respect of that date on which transfer postponement which a total or partial postponement of transbecomes effective. fer or payment has been declared for any 4. If, during any annuity year, the German monthly instalment, the instalment or part Government shall avail itself of this power, thereof the transfer or payment of which has the transfers falling due during any second been so postponed shall become immediately year can not be postponed for more than one payable to the Bank for International Settleyear from their respective due dates, unless ments in foreign currencies, with the exception and until the transfers due during the first of any amounts of which the creditor powers year shall have been effected in full, in which have already had the benefit in some other case the transfers due during such second year form in pursuance of the new plan. This may be postponed tw^o years from their respec- clause modifies in no way the functions of the tive due dates; and the transfers due during special advisory committee provided for in the any third year can not be postponed at all new plan. until the transfers due during the first year 10. In the event of any declaration of posthave been effected in full. ponement made by Germany or at any other 5. At any time when postponement of trans- time when the German Government declares fer is in efi'ect but not until one year after it to the creditor Governments and to the Bank has become effective, the German Government for International Settlements, that it has come shall have the right to postpone payment for to the conclusion in good faith that Germany's one year of 50 per cent of any sum the transfer exchange and economic life may be seriously of which shall then be susceptible of postpone- endangered by the transfer in part or in full ment under the conditions stated above. This of the postponable portion of the annuities, percentage may be increased upon the recom- the Bank for International Settlements shall mendation of the advisory committee provided convene the special advisory committee menfor in part 8 (e) of the report of the experts of tioned in chapter 8 (e) of the experts' plan of 1929. June 7, 1929. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

184 FEDERAL RESERVE BULLETIN APRIL, 1930 The special advisory committee shall forth- A similar adjustment will take place at the with consider the situation in all its aspects, ,end of the second month from the date of the as provided in the plan, and shall indicate for first deposit. consideration by the Governments and the At the end of the third month, and therebank what, in their opinion, are the measures after at intervals of three months, the deposit that should be taken in regard to the appli- shall be adjusted on the basis of the average cation of the plan. In application of article of the daily balances referred to above during 124 of the report of the experts of June 7, 1929, the three months ending two working days any recommendation of the committee affect- before the date of each such adjustment. The ing the rights of the creditor Governments intervals referred to in this paragraph may be shall not bind the creditor Governments unless changed by agreement between the Governit is accepted and confirmed by the creditor ments concerned with the concurrence of the Governments wrho participated in the decision Bank for International Settlements. of September 16, 1928, to set up the committee VII of experts. Similarly, any recommendation affecting the rights of the German Govern- As a collateral guarantee the German Government shall not bind the German Government ment, without prejudice to its general liability unless it is accepted and confirmed by that for payment of the annuities and its complete Government. freedom to make these payments out of its VI general revenues and without prejudice to the securities for the German external loan, 1924, The German Government undertakes during assigns, in pursuance of the provisions of the the period up to March 31, 1966, to maintain relative annex of the Agreement of The Hague at the Bank for International Settlements a of January, 1930, the proceeds of the customs, non-interest bearing deposit equivalent to 50 tobacco, beer, and alcohol (monopoly adminisper cent of the average deposit remaining in the tration) duties to the service of the present annuity trust account, but not exceeding certificate, including the service of any bonds 100,000,000 reichsmarks. which may be issued in accordance with the The bank shall to this end certify to the new plan. German Government and to the creditor Gov- The proceeds of the annual direct tax of ernments every month the average of the bal- 660,000,000 reichsmarks payable by the German ance at the close of each working day left by railway company are also assigned as a colthe creditor Governments on deposit without lateral guarantee to the service of the annuities. interest during that month, in respect of the The amounts of the obligation of the German sums arising from the German payments under Railway Compan3r will be paid in accordance the I)awes plan or under the new plan up to with the certificate of debt of that company the t me when they are drawn out by the on the first da}7 of each month, and if the full creditor Governments. amount of the previous monthly payment due The first deposit will be paid b}^ the German by the German Government has been paid, the Government to the bank 15 days after the amounts so paid by the German Railway Computting into execution of the new plan, the pany will be transferred, immediately on their amount of the deposit being calculated on the receipt, to the German Government. average of the daily balances above mentioned VIII left with the agent" general for reparation payments or the bank during the month ending The obligation of the German Government two working days prior to the date of deposit, in relation to the annuities for which this cerexcluding sums returnable to the German Gov- tificate provides shall not be deemed to have ernment under Annex III of The Hague protocol been lulfilled until all sums, the transfer or payof August 31, 1929. ment of which may from time to time have been The deposit shall be maintained at the suspended, have been either in fact completely amount so calculated during one month. At transferred to the Bank for International Setthe end of this period the deposit will be ad- tlements in the shape of approved currency justed by a further deposit or by the with- other than the reichsmark or employed for dedrawal of part of the existing deposit, on the liveries in kind. basis of the average of the daily balancfs IX referred to above during the month ending two working days before the date of the adjust- At the end of each annuity period, when the ment. Bank for International Settlements has re- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

APRIL, 1930 FEDERAL RESERVE BULLETIN 185 ceived from the German Government the on April 1, 1966. Payments on the due dates amounts due under this present certificate, the must be effected before 9 o'clock in the morning. bank will return to the Government the coupon The tax is to be paid in accordance with corresponding to the payments of that annuity the conditions, privileges, and guarantees fixed period. The certificate itself will be delivered by the railway law of , and, in when all the coupons have been paid. particular, in conformity with the following provisions: The tax shall be paid out of the operating receipts of the company with recourse, if neces- The foregoing provisions shall not be deemed sary, to all reserves. It shall rank after the to affect the provisions of the new plan, which expenditure on personnel and on the same footare not dealt with in this certificate. ing with expenditure on material and consumable stores. It shall enjoy priority over any Annuity coupon (not including the service of the other tax now levied on the railway company, German external loan, 1924) or which may be levied in the future, and shall rank prior to any other charge, by way of mortgage or otherwise, on the company. The Herman Reich will The German Reich will In conformity with paragraph 1 of article 5 pay to the creditor powers pay to the creditor powers of the law of , the undertaking asat the Bank for Interna- at the Bank for International Settlements on ac- tional Settlements on ac- sumed by the compan}^ to pay the reparation count of the nonpostpon- count of the postponable tax for the year 1965 and until March 31, 1966, able part of the annuity part of the annuity for will be transferred to the organization to be for the period from the the period from the , created to administer the railways of the Reich •, 19—, to the , 19—, to the , 19—, 19—, the sum of 612,000,- the sum of reichs- in conformity with article 92 of the Reich con- 000 reichsmarks. marks. stitution, the above provisions being applied The relative provisions The relative provisions mutatis mutandis. of the certificate apply to of the certificate apply to the present coupon. the present coupon. A note of the payment A note of the payment ANNEX V of each instalment will be of each instalment wrill be endorsed on the present endorsed on the present Provisions to be inserted or maintained in the coupon. When the full coupon. When the full German bank law amount of the above sum amount of the above sum has been paid this coupon has been paid this coupon will be returned to the will be returned to the ARTICLE 1 German Government. German Government. Berlin, the , 1930. Berlin, the , 1930. Remains unchanged. Reichsschuldenverwal- Reichsschuldenverwaltung. tung. (Administration of the (Administration of the ARTICLE 2 debt of the Reich). debt of the Reich). Remains unchanged. ANNEX IV ARTICLE 3 Certificate of the Deutsche Reichsbahngesellschaft Remains unchanged (in connection with By the present certificate, the undersigned article 5 of the coinage law, 1924). confirm that the German Railway Company has to pay, as contribution to the annuity for ARTICLE 6 reparation purposes to be paid by the Reich, a Reich tax amounting to 660,000,000 reichs- The bank shall be administered by the marks per annum. managing board of the Reichsbank (Reichs- This tax will fall due in equal monthly in- bank direktorium), which consists of a president stallments of 55,000,000 reichsmarks after the as chairman and the required number of memend of each month on the first day of the fol- bers. In particular, the managing board shall lowing month, and—where the first day hap- direct the currency, discount, and credit policy pens to be a Sunday or holiday—on the follow- of the bank. ing working day. It shall be paid direct into The president and the members must be the account of the Bank for International Set- German nationals. tlements at the Reichsbank. The payments The resolutions of the managing board are begin to fall due on October 1, 1929, and end passed by simple majority; in the case of an Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

186 FEDERAL RESERVE BULLETIN APKIL, 1930 equality of votes, the president has a casting requires confirmation by the president of the vote. Reich. The president shall be elected by the general council after the latter has heard the managing ARTICLE 9 (first paragraph) board of the Reichsbank. Such election re- Remains unchanged. quires a majority of 7 votes and the confirmation of the president of the Reich, who signs ARTICLE 10 the deed of appointment. By the delivery of the deed the president elected is duly appointed. Remains unchanged. The members of the managing board shall be appointed by the president after approval ARTICLE 12 by the general council. The same majority is In every year a report as to administration required for such approval as for the election of shall be presented to the general meeting. The the president. The appointment requires congeneral meeting shall decide as to the balance firmation by the president of the Reich. The sheet and as to the distribution of profits in members are duly appointed by delivery of the accordance with this law. deed of appointment. The appointment shall The general meeting shall also determine the be for a term of 12 years, subject always to the "Satzung" and any changes in the "Satzung" condition that, on attaining the age of 65 years, on the proposal of the managing board and a member shall cease to hold office. with the consent of the general council. The The term of the first-appointed members of "Satzung" and any changes therein shall be the managing board shall be as follows: With published by the managing board in the the exception of the president they shall be 1' Reichsanzeiger.J' divided into three groups, of which the two first must be equal in number and the third ARTICLE 14 group may be equal in number or less, but in any case shall be as near as possible in number A general council of the Reichsbank shall be to the first group. The first group shall con- constituted consisting of 10 members. These tain the members youngest in years, and the members must be German nationals. third group the oldest, the second group containing the remaining members. The mem- ARTICLE 15 bers of the first group shall be elected for 12 years, the members of the second group shall The president of the Reichsbank managing be elected for eight years, and the members of board shall be one of the members and also the third group shall be elected for four years. chairman of the general council. .' The same age limit of 65 years shall apply in The term of office of a member of the general every case. council with the exception of the president The term of office of the president is four shall be three years. years. The president and the members are eligible for reelection. ARTICLE 16 The election of a new candidate shall not The members of the general council, with take place unless the candidate is approved by the exception of the president, shall'be elected the managing board. The approval shall be by means of cooption by those members of the considered as refused if two-thirds of the memgeneral council who are in office at the time, bers have voted against the new candidate. subject to confirmation on the part of such of On important grounds the president or a the shareholders as are German nationals. member of the managing board can be dis- Before the election the chairman of the general missed at any time without prejudice to their council or his deputy shall consult the Governcontractual rights. Dismissal of the president ment of the Reich concerning the election. on important grounds can be voted by the general council with the same majority as ARTICLE 17 provided for in paragraph 4 above, and in the case of a member of the managing board it The following classes of persons shall not be can be voted likewise by the general council elected as members of the general council: with the same majority, but not without the (a) Officials in the immediate service of the president's consent. The dismissal of the presi- German Reich or of any German State, unless dent or of a member of the managing board they are in a permanent state of retirement. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

187 A PHIL, 193G FEDERAL RESERVE BULLETIN (b) Persons who receive any payment from ARTICLE 27 the German Reich Government or from the government of any German State. Remuneration The preparation and completion, the issue, for earlier services does not count as payment. the withdrawal, and the destruction of bank notes shall be effected under the control of the ARTICLE 18 president of the "Rechnungshof of the German Reich" as commissioner. Decisions of the general council shall require The checking of the issue of notes shall be a simple majority; if the votes are equally effected by numerically ascertaining the availdivided the chairman shall have a casting vote. able note cover as prescribed by law. The This provision shall not apply to the election of examination shall take place on those days for the president, nor to the assent to be given to the which the bank, according to article 36, paraappointment of the members of the managing graph 1, regularly publishes its returns. The board. reports as to such examination must be sub- At each of its meetings, and at least once in mitted to the general council at each of its three months, the general council shall examine meetings. No examination or discussion conthe reports submitted to it by the president. cerning the credit, discount, and currency It shall decide on all proposals made to it by policy of the bank shall take place in connection the president, provided that such decisions do with the checking. not encroach upon the rights of administration Statements as to the cover of notes and as to of the bank reserved to the managing board. the notes in circulation must be given to the commissioner daily. ARTICLE 21 Paragraphs 4 and 5 remain unchanged. Add at end as new paragraph: "All functions confided to and obligations ARTICLE 28 imposed on central banks in general or any one Remains unchanged. such central bank specially by the new plan (Hague Agreement, January, 1930) will be performed in Germany by the Reichsbank. All ARTICLE 29 functions confided to and obligations imposed Remains unchanged. on presidents of central banks in general or any one such president specially by the new plan ARTICLE 31 will be performed in Germany by the president of the Reichsbank." Remains unchanged. ARTICLE 22 ARTICLE 38, PARAGRAPH 4 Remains unchanged. While the note issue privilege is in force, the Reichsbank may only go into liquidation with ARTICLE 25 the consent of the Government of the Reich. Thereafter the Reichsbank shall, before going The Reich§bank is under obligation to accept into liquidation, give notice to the government or make payment for the Reich at the request in good time. of the Government authorities by any of its establishments appropriate for that purpose ARTICLE 45 and also to effect transfers without the trans- Remains unchanged. mission of cash between the various financial establishments of the Reich. ARTICLE 46 Without prejudice to the rule contained in the fourth paragraph of this section the bank Remains unchanged. shall be authorized to give credit to the Reich for purposes of administration; but in each case ANNEX VA for a term not exceeding three months and only up to the maximum amount of 100,000,000 Procedure jor the modification of certain proreichsmarks. On July 15 of each year the visions of the German bank law Reich must not be indebted to the bank in any way. Any proposal which may affect the provi- Paragraphs 3 to 6 remain unchanged. sions of Annex V must be submitted by the Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

188 FEDERAL RESERVE BULLETIN APRIL, 1930 German Government to the board of directors SECTION 4.—Reparation tax of the Bank for International Settlements. The board may object to any such proposal, (1) The company shall pay, as a contribution on the ground that it is incompatible with the of the Deutsche Reichsbahn to the reparation new plan, by referring the question within a annuities payable by the Reich, a tax of the period of two months, in the absence of an Reich to an amount of 660,000,000 reichsmarks agreement being reached, to an arbitrator per annum (reparation tax). The reparation chosen by common consent, or, in default tax shall fall due, in equal monthly installof such consent, to the tribunal provided for ments of 55,000,000 reichsmarks, upon exin the present agreement. The decision of the piration of each month on the first day of arbitrator or tribunal shall be final and will each subsequent month, and where the first day is a Sunday or holiday, upon the first bind the Reich, the Bank for International working day following; the tax shall be pud Settlements and the States signatory to the direct into the account of the Bank for Interpresent agreement. national Settlements at the Reichsbank; (he first payment shall fall due on October 1, 1929, ANNEX VI and the last payment on April 1, 1966, subject to the provision of section 5 of the present law.. Amendments to be made in the law concerning and The payments shall be made before 9 a. in. in the statutes of the Deutsche Reichsbahnon the days fixed for the same. gesellschaft (2) The reparation tax shall be paid out of A.—German railway law the operating receipts of the company with recourse, if necessary, to all reserves. It shall SECTION 1.—Incorporation oj the company rank after the expenditure on personnel and on the same footing with expenditure on ma- (1) A company is incorporated by the present terial and consumable stores. It shall enjoy law to operate the railways of the Reich. priority over any other tax now levied on the (2) The company shall operate the railways railway company, or which may be levied in of the Reich on behalf of the Reich in conform- the future, and shall rank prior to any other ity with the provisions of the present law and charge, by way of mortgage or otherwise, on the regulations annexed thereto. (Annex I.) the company. (3) The company shall deposit with the SECTION 2.—Conduct oj the undertaking Bank for International Settlements a certificate acknowledging its liabilities under paragraphs No change. (1) and (2) above. The reparation bonds created in virtue of section 4 of the law of SECTION 3.—Capital August 30, 1924, and handed over to the (1) The original share capital of the company trustee shall be cancelled and destroyed in shall be 15,000,000,000 reichsmarks, divided the presence of a representative of the company. into 2,000,000,000 reichsmarks of preference (4) The payment of the reparation tax by shares (tranche A) and 13,000,000,000 reichs- the company shall be guaranteed by the marks of ordinary shares subject to the special Government of the Reich. As soon as the provisions laid down in section 26 of the stat- Bank for International Settlements notifies utes as regards the preference shares. the Government that a payment due has not (2) For the purpose of obtaining the funds been effected either in whole or in part, the required for the improvement, perfecting and Government shall authorize the company to extension of the plant and rolling-stock of the devote to the payment of the arrears of repararailways of the Reich and for other extraordi- tion tax the proceeds of the transport tax nary expenditure, the company is entitled to collected for the account of the Reich, in so increase its capital by the issue of further prefer- far as such a tax exists. If these resources ence shares (tranche B), the total nominal prove insufficient the Reich shall meet the amount of such shares not to exceed the sum of deficit within one month of receiving notice 2,000,000,000 reichsmarks for each period of 10 from the bank, either by placing the sums, years dating from the first issue of such prefer- required for the payment at the disposal of ence shares. The increase of the capital is the company or by making a direct payment conditional upon the assent of the Government into the account of the Bank for International of the Reich. Settlements at the Reichsbank. Apart from (3) formerly (2). No change. the above provision, the transport tax shall Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

APRIL, 1930 FEDERAL RESERVE BULLETIN 189 be exempt from all special charges in respect conditions until such time as the payment of of reparations. the tax and the redemption of the preference (5) The sums paid by the Government to shares have been completed. cover a deficit in the reparation tax and the (3) to (7). No change. proceeds of the transport tax devoted by the company to the same purpose in virtue of para- SECTION 6.— Railway property of the Reich graph (4) above shall be repaid to the Reich in conformity with the provisions of section 25, (1) No change. paragraph (3), No. 3 of the company's statutes. (2) The company shall be entitled to dispose (6) The company is entitled, with the assent of property belonging to the railways of the of the Bank for International Settlements and Reich where, in the opinion of the company, subject to the terms agreed on with the bank, such disposal is not inconsistent with reasonto discharge the reparation tax in whole or in able operating needs. Nevertheless, before part by a capital payment. The Government disposing of any property the value of which of the Reich may require the company to exer- exceeds 250,000 reichmarks, the company shall cise this right of discharge provided that the be required, subject to the provisions of section Reich places the necessary funds at the com- 8, to obtain the consent of the Government. pany's disposal. Any capital payment shall Where no other method of utilization has been extinguish the liability of the company under agreed upon with the Government of the Reich paragraphs (1) and (2) in a corresponding the proceeds of sales shall be utilized for the degree. The right of the Government of the improvement, completion or extension of plant Reich provided for in the agreement of and rolling stock. of relating to the redemption of reparation annuities remains unaffected. SECTION 7.—Limited liability of railway property for debts of the Reich SECTION 5.—Concessions—Transfer of rights and obligations No change. (1) The Reich shall concede to the company SECTION 8.—Loans and credits the exclusive right to operate the railways of the Reich under the conditions set forth in this (1) The company shall have the right to law and in the company's statutes. The con- raise loans on its own account, provided that cession shall terminate on December 31, 1964, their currency does not extend beyond January provided that at the said date all the repara- 1, 1965, and for the purpose of such loans to tion tax payments payable up to that date, mortgage the property of the railways of the including the payment falling due on January Reich. 2, 1965, have been discharged and all the pref- (2) to (4). No change. erence shares have been redeemed. The lia- (5) For the purpose of guaranteeing loans bility of the company to the payment of the (pars. 1 and 2) by mortgages the company shall reparation tax in 1965 and up to March 31, be entitled to grant a collective mortgage 1966 shall then be transferred, subject to the (Reichsbahnhypothek) on all land sites formcontinued application of the provisions of secing part of the property of the railways, totion 4, to the undertaking intrusted with the gether with all accessories, including rolling operation of the railways of the Reich in accordstock. ance with article 92 of the constitution. SECTION 9.—Operation (2) In the event of the company's liability to pay the reparation tax direct into the ac- (1) The company shall assume responsibility count of the Bank for International Settle- for the safe operation of the railways of the ments at the Reichsbank terminating before Reich and for such adequate maintenance, re- December 31, 1964, the concession shall be newal, and development at its own expense of shortened accordingly and will terminate forth- the undertaking, with all its accessories, as will with, provided that the preference shares have meet the requirements of traffic and the proall been redeemed by that date. On the other gress in railway technique. hand, if at December 31, 1964, the whole of (2) Subject to these principles and other the reparation tax payments due up to that legal prescriptions and within the limits of the date have not been made, or if the whole of the control reserved to the Reich (see sec. 31 and preference shares have not been redeemed, the following) the company shall be entitled to concession shall be prolonged under the same operate the railways on its own responsibility. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

190 FEDERAL RESERVE BULLETIN APRIL, 1930 SECTION 10.—Monopoly ileged position in virtue of the provisions of the present law or of the company's statutes. The No change. laws and decrees relating to private railways alone, in particular to their concession, oper- SECTION 11.—Classification of railways ation or supervision, shall not be applicable to the company. The government of the German State con- (2) formerly (1). No change. cerned and the company shall be entitled to be (3) formerly (2). No change. heard on the question as to whether a railway (4) The company shall be entitled to claim is to be considered as of general interest; the for itself and ite personnel the benefit of the final decision rests with the minister of the provision which exists in favor of the depart- Reich responsible for the control of the railways. ments or undertakings of the Reich and their personnel in the matter of the Versicherungs-, SECTION 12.—Transfer of rights under the con- Wirtschafts-, Arbeits-, Fiirsorge-, and Wohcession nungsrecht (insurance, economic, labor, pensions, and housing legislation). The right to In special cases where it appears advantasuch benefit will be acquired by a declaration geous in the operation of the undertaking the to the Government of the Reich. Where a company may, with the assent of the Governspecial decree is required to establish the comment of the Reich, transfer the concession of pany's privileged position under the laws conindividual parts of the system to third parties, cerned, such decree shall be issued by the minis* provided that the company's ability to pay the ter of the Reich responsible for the control of reparation tax and the security of the same are the railways. The powers exercised by the not diminished thereby. supreme authority of the Reich (Oberste Reichsbehorden) in these matters shall, unless SECTION 13.—Services to or by departments of the otherwise stipulated in the laws, be exercised by Governments the director general. No change. (5) and (6). No change. SECTION 14.—Exemption from taxation SECTION 17.—Company officials not State officials No change. The authorities of the company shall not be authorities or official organs of the Reich. SECTION 15 (new).—Contributions toward the ad- They have, however, the same standing under ministrative expenditure of the communes public law and the duties connected therewith In discharge of claims to a contribution to- as the Deutsche Reichsbahn undertaking prior ward administrative expenditure put forward to the creation of the company. The company by communes in which a relatively large pro- shall be entitled to use a seal displaying the portion of railway staff is domiciled, the com- German eagle. pany shall pay annually to the Government of the Reich the fixed sum of 5,000,000 reichs- SECTION 18.—Representation of the company marks agreed on with the Government, which will lay down the principles of distribution No change. among the communes concerned. Should circumstances alter in the future, the amount pay- SECTION 19.—Legal position of the personnel able by the company shall be fixed by a new (1) The company shall draw up staff regulaagreement between the Government and the tions (Personalordnung) in conformity with company. and subject to the following provisions. The regulations shall define the rights, conditions SECTION 15 (former).—Transport tax of service, and salaries of the railway officials Omitted. (Beamten) on lines similar to those governing the provisions in respect of officials of the Reich. Where the company believes that the SECTION 16.—Other laws; their application to special circumstances of the railway necessitate the company a deviation in its own regulations from the (1) The company shall be subject to general provisions applicable to officials of the Reich, legislation, in so far as it does not enjoy a priv- the company shall inform and discuss its inten- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

APRIL, 1930 FEDERAL RESERVE BULLETIN 191 tions with the Government of the Reich. If working hours of officials to employees and no agreement can be reached, the final decision workers. shall rest with the railway court. (Sec. 44.) (4) and (5), formerly (3) and (4) No Until the railway court takes a decision, the change. existing regulations shall remain in force. SECTION 20.—Protection of existing rights Transitional provision No change. The regulations governing the rights, conditions of service and salaries of railway officials SECTION 21.—Local employment of staff on October 1, 1929, shall be considered as having been issued in agreement with the No change. Government of the Reich. (2) The staff regulations may contain provi- SECTION 22.—Staff regulations sions in respect of the rights and conditions of The staff regulations to be drawn up by the service of employees and workers, where such company shall in particular determine the rights and conditions of service are not the following matters, subject always to the prosubject of agreements based on recognized visions of this law: general principle (wage agreements, working (a) The conditions of appointment and proagreements, individual contracts). motion of officials. (b) Their classification. Transitional provision (c) Salaries, retaining pay, and all other Matters regulated on October 1, 1929, allowances to officials, as also the pension scale under sections 3 to 32 of the staff regulations and allowances to surviving dependants. or entrusted to the director general for settle- (d) Hours of work (hours on and off duty) of ment in virtue of the staff regulations shall be officials. considered to be matters which may be decided (e) Conditions of employment and appointby the staff regulations, save in so far as other- ment of candidates entitled to civil employwise provided under section 19, paragraph 3. ment. (3) Save in so far as otherwise provided in the present law or in the company's statutes, SECTION 23.—Duties of officials (Beamten) the general laws and ordinances governing (1) No change. labor, pensions, and insurance shall apply to (2) In case of breach of duty the railway the officials, employees, and workers of the official shall be subject to the same disciplinary company. In particular, legislation on the procedure, with the necessary changes, as is wxorking hours of employees and workers shall provided for at the time in question in the case apply to the employees and workers of the of officials of the Reich. In any such case, the company. In those branches of the service, director general or his authorized representahowever, in which the special conditions of the tives shall possess the powers of the supreme railway system or the collaboration of officials, authority of the Reich (Oberste Reichsbeemployees, and workers calls for a uniform horden). regulation of working hours, the company may (3) No change. secure such uniformity by applying the service regulations for officials to the working hours of SECTION 24.—Retirement on retaining pay employees and workers. Those branches of the service in which the service regulations The company can place its officials tempofor officials may be given general application rarily on the retired list with retaining pay. are enumerated under section A of Annex II The principles governing temporary retirement to the present law; under section B are and the legal means of redress of officials enumerated those branches of the service in against such a measure shall be laid down in which such general application is not permis- the staff regulations. The provisions of the sible. In the case of branches of the service staff regulations in force on October 1, 1929, not included under either A or B, the regula- relating to temporary retirement, legal means tion of working hours by general agreement, of redress, and the participation of representain particular by wage agreement, shall take tives of the officials in the decisions on legal into consideration the principle established in means of redress, can not be amended without sentence 3 in respect of the application of the the assent of the Government of the Reich. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

192 FEDERAL RESERVE BULLETIN APRIL, 1930 SECTION 25.—Persons entitled to civil employ- SECTION 31.—Government supervision ment The Government reserves over the company No change. the rights following: (1) The right to insure that the railways of SECTION 26.—Reservations as to salaries the Reich are administered in conformity with (1) In fixing the pay and permanent allow- the laws and in accordance with the requireances of railway officials other than superior ments of traffic and of the German economy, officials (leitende Beamten) the company shall subject, at the same time, to the observance act in conformity with the provisions of of the special rights and duties arising in section 19. respect of the management of the company (2) formerly (3). This provision shall not out of the provisions of the present law and the affect the right of the company to grant company's statutes. bonuses on general principles for service in (2) The right to insure that the railways of particularly responsible posts or under particu- the Reich, together with all their works, rolling larly difficult circumstances, as well as for ex- stock, plant, and material, are maintained and ceptional services rendered, provided that operated in a manner consistent with safety the total of such bonuses does not exceed 4 and public convenience. per cent of the total expenditure on the pay (3) The right to approve— of officials. The principles in question shall (a) The permanent closing for traffic of a be established and published after consulta- line or of an important station. Where the tion with the officials' council or with the company intends to close down a large workrepresentative organization taking its place in shop, it is sufficient if six months' notice is virtue of subsequent legislation. given to the Government of the Reich. (3) formerly (4). The company shall be free (b) The general fundamental renewal or to fix the emoluments of superior officials. alteration of technical installations, in partic- These officials will be designated by the board ular the right to approve the extension or of management. Should their number exceed restriction of electric traction or changes in the one-half per mille of the total permanent staff, system of safety appliances; the company shall the assent of the Government of the Reich remain solely responsible for the technical must be obtained. details of construction. (4) The right to approve the foundation or SECTION 27.—Unity of the undertaking acquisition of other undertakings or participation in other undertakings. No change. (5) Such participation in fixing tariffs as is specified in section 33. SECTION 28.—Domicile of the company (6) Such participation in fixing passenger train services as is specified in section 35. No change. (7) The right to approve the abolition of any of the existing classes in passenger traffic. SECTION 29.—Accountancy (8) The right to supervise the maintenance of No change. emergency services. SECTION 30.—Balance sheet, profit and loss SECTION 32.— Government's right to information account (1) The Government may require the com- (1) No change. pany to furnish all information of a financial (2) The Government shall have the right nature, together with all information required to examine the company's balance sheet and in the exercise of its right of supervision. No profit and loss account at any time, to inspect unnecessary expense is thereby to be caused to all such books of account concerning the bal- the company. ance sheet and profit and loss account as are (2) The minister of the Reich responsible for kept at the head office of the company, and to the control of the railways is entitled to inspect call for all necessary information, provided all plant and service departments throughout that no unnecessary expenditure is thereby en- the entire system, or to cause the same to be tailed on the company. inspected by his officials. He is entitled, (3) No change. together with those of his officials intrusted Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

APRIL, 1930 FEDERAL RESERVE BULLETIN 193 with railway matters of the Reich, to travel SECTION 36.—Negotiations with foreign Governfree of charge on the company's system. ments (3) The Government of the Reich is entitled No change to send one representative to the meetings of the board of management in accordance with SECTION 37.—New works section 16 of the company's statutes. (4) The company shall inform the minister (1) No change. of the Reich responsible for the control of the (2) Where new works or the modification railways of all important measures of a general of existing railway works come within the nature. administrative sphere of the police of a par- (5) Officials intrusted with the supervision ticular German State, the company shall conof the railways shall be bound to secrecy in sult the authorities of the State in question matters of a confidential nature concerning the before definitely fixing its plans. Where new company. works or modifications come within the administrative sphere of authorities of the Reich, SECTION S3.—Tariffs which have taken over duties of the police of the State in question, such authorities of the (1) No change. Reich shall also be heard. Where the hearing (2) No change. leads to differences between the company and (3) The approval of the Government shall the State or Reich authorities concerned, the be held to have been given if the company has plans shall be finally decided upon by the not received a reply from the minister of the Government of the Reich. The plans for new Reich responsible for the control of the railways lines of the company shall always be decided within twenty days of an application by the upon by the Government of the Reich. In company for approval. The definite decision both cases the company shall submit the plans, of the Government on any tariff proposal subtogether with the memoranda, where such mitted by the company shall always be given have been drawn up by the authorities conwith the least possible delay. Where no cerned, to the minister of the Reich responsible definite decision is pronounced within six for the control of the railways. The fixation months, or where approval is withheld alof the plan comprises the final decision in together or in part, the company may appeal respect of all matters affected by the drafting to the railway court. (Sec. 44.) In this of the plan. event the existing tariffs shall remain in force (3) to (5) No change. until the railway court has made its award. (4) No change. SECTION 38.—Compulsory taking of lands (5) The Government of the Reich may, in addition, call for such tariff changes as it (1) and (2) No change. considers necessary. In the event of differences (3) The expropriation or restriction of ownerbetween the Government and the company the ship of parts of the property of the railway decision rests with the railway court (sec. 44). and of land sites owned by the company shall require the previous assent of the Government SECTION 34.—Protection of the reparation tax of the Reich. and oj interest and sinking fund SECTION 39.—Respective rights of road' and rail The rights of supervision and control of the operation and tariffs of the company reserved When, at any point where a railway crosses to the Government by the present law shall be a public road, the growth of traffic or any other exercised in such a way as to secure the pay- change of circumstances renders necessary an ments in respect of the reparation tax, the alteration either of the railway, or of the pubinterest and sinking fund for the bonds, the lic road, or of both railway and road, the costs preference dividend, and the provision of funds shall be borne by the company if the alteration for the redemption of the preference shares. is required exclusively to meet the needs of the railway service; they shall be borne by the SECTION 35.— Time tables road authority if the alteration is required exclusively to meet the needs of road traffic; No change. in every case the other party shall bear a Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

194 FEDERAL RESERVE BULLETIN APRIL, 1930 share of the costs proportionate to the financial SECTION 44.—Railway court advantages accruing to it as a result of the alterations undertaken. The costs shall be (1) Disputes between the Government and divided equitably between the two parties, if the company in respect of the interpretation the alteration is required to meet the needs of the provisions of this law and of the comof both parties. In case of disagreement as pany's statutes, or in respect of measures under to the division of the costs, the question shall the law or the statutes, in particular tariff be decided without appeal by the Minister of matters, shall be referred to a special tribunal the Reich responsible for the control of the (railway court). railways, except in cases where such decision (2) The railway court will be constituted at has to be given by an administrative tribunal. the court of administration of the Reich (Reichsverwaltungsgericht) as soon as the SECTION 40.—Transfer oj duties incumbent upon latter is established. The railway court shall the transport administration comprise the chairman and two members of a chamber of the court of administration ap- The Government of the Reich may, in agree- pointed once for all by the president of the ment with the company, intrust individual said court of administration. In disputes on departments or officials of the company, in tariff matters two further members will be particular the directorates (Reichsbahndirek- added, the one being appointed on the proposal tionen), with the supervision on behalf of the of the Government and the other on the pro- Reich of railways not operated by the company posal of the company in each case afresh by (art. 95 of the constitution) and w^ith other the president of the court of administration. duties of transport administration. Such duties Until the court of administration is established, are to be fulfilled in accordance with the instruc- the railway court shall have its seat at the tions of the Government and for the account of Supreme Court of the Reich (Reichsgericht) the same. Railway officials intrusted with such and shall comprise three permanent members duties are to be specially sworn in for these and two members appointed afresh in each functions. case. The permanent members, together with two replacing members, shall be appointed by SECTION 41.—Expiration of the concession the president of the Staatsgerichtshof and shall be judges with special experience in matters of (1) As from the expiration of its concession public law. One of the permanent members the company shall hand back to the Govern- shall be appointed as chairman and another as ment in good condition and free of all cost the vice chairman by the president of the Staatsundertaking and everything attached thereto, gerichtshof. Of the two members to be aptogether with an adequate supply of stocks and pointed afresh in each separate case the one stores and all subsidiary works and under- shall be appointed on the proposal of the takings, subject to such agreements as may have Government and the other on the proposal of been concluded between the company and the the company by the president of the Staats- Government under section 8, together with all gerichtshof. The provisions of section 19, senholdings in other undertakings. On such tences 2 and 3; sections 20 to 22, sections 24 retransfer the Reich shall be held to take over to 26, section 28, paragraph 1; section 29, all the rights and obligations connected with paragraph 1 and paragraph 2, sentence 1, and the company's operation. section 30 of the law relating to the Staats- (2) No change. gerichtshof (Reichsgesetzblatt 1921, p. 905) apply mutatis mutandis. The detailed provi- SECTION 42.—Liquidation sions governing procedure shall be fixed by regulations to be issued by the president of No change. the court of administration, or until the constitution of this court, by the president of the SECTION 43.—Staatsvertrag Staatsgerichtshof, and published in the Reichsgesetzblatt. The said regulations shall insure (1) No change. the pronouncement of a decision by the railway (2) Differences as to the interpretation or court with the minimum of delay. application of the provisions of paragraph 1, (3) and (4) omitted. so far as they are applicable to the company, shall be determined exclusively by the railway SECTION 45.—Arbitrator court (sec. 44). In any such proceedings the States shall be represented by the Reich. Omitted. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

APRIL, 1930 FEDERAL RESERVE BULLETIN 195 SECTION 46.—Gold mark the preference shares of Group A in accordance with the provisions of section 25 below. Omitted. (2) No change. (3) Any series of preference shares may be SECTION 47.—-Temporary provisions redeemed at any time in whole or in part, subject to the special provisions of section 26 Omitted. in regard to the preference shares of Group A, Series I to V. ANNEX I TO THE GERMAN RAILWAY LAW (4) No change. (5) No change. B. Regulations of the German Railway Company (6) The preference shares shall be redeemed, subject to the special provisions in section 26 for the preference shares of Group A, Series I SECTION 1.—Name of the company to V, at rates to be determined by the company (1) No change. at the time of issue. Where the rate is fixed (2) Its legal status is fixed by the Deutsche at more than 10 per cent above par, the assent Reichsbahngesellschaft law of August 30,1924, of the Government of the Reich is required. as amended by the law of and by (7) Subject to the above provisions, the these regulations which form an integral part Government may call upon the company to of the law. The head offices of the company exercise its right of anticipatory redemption, shall be in Berlin. provided that the Reich places the necessary (3) The company's financial year shall begin funds at the disposal of the company. on January 1 and shall end on December 31 of each year. SECTION 5.—Division of proceeds from the sale of preference shares SECTION 2.—Objects of the undertaking (1) One-fourth of the total proceeds from the issue of the preference shares of Group A No change. shall be the property of the Reich and threefourths the property of the company. Not- SECTION 3.—Original capital withstanding, the proceeds from individual issues may by agreement between the Govern- (1) The company's original capital shall conment and the company be divided differently, sist of 15,000,000,000 reichsmarks divided into provided that the total shall be divided as 2,000,000,000 reichsmarks of preference shares set forth above. (Group A) and 13,000,000,000 reichsmarks of (2) During the first two years after the ordinary shares. The provisions of section 26 commencement of the concession the company in regard to the preference shares of Group A, shall sell preference shares to the nominal Series I to V, remain unchanged. value of 500,000,000 reichsmarks. The Gov- (2) Further preference shares (Group B) to ernment may claim that the whole of the proincrease its capital may be issued by the comceeds of this sale shall be assigned to it. pany in conformity with the provisions of section 3, paragraph 2, of the law in virtue of a decision by the board of management. SECTION 6.—Ordinary shares No change. SECTION 4.—Preference shares (1) The preference shares shall be issued as SECTION 7.—Form and wording of the certificates payable to bearer and be transferable by No change. delive^. They will carry with them a right to the repayment of capital on or before the SECTION 8.—Reparation bonds termination of the concession and the right to a preferential dividend. Should the prefer- Omitted. ential dividend not be fully paid in any year it shall be paid, out of the profits of subsequent SECTION 9.—Other bonds years. If a dividend is paid on the ordinary shares an additional dividend shall be paid on Omitted. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

196 FEDERAL RESERVE BULLETIN APRIL, 198O SECTION 10.—Organization of the company which term of office in conformity with the above regulation ends on December 31 of the No change years 1930, 1931, or 1932. (2) and (3) No change. SECTION 11 —Board of management SECTION 14.—President of the board of manage- (1) The board of management shall consist ment of 18 members, who must be of German nationality. (1) The board of management shall elect a (2) formerly (2) and (3) The members of president each year at the beginning of the the board shall be appointed by the Govern- financial year. He shall be eligible for reelecment of the Reich. If preference shares of tion. The election requires confirmation by Group A have been issued, 4 of the 18 seats on the president of the Reich. When the holders the board shall be assigned to the holders of of preference shares of Group A are reprepreference shares in such a manner that for sented by three members on the board, the each 500,000,000 reichsmarks of shares issued, president shall be chosen from among their one representative of such shares shall be number. entitled to a seat on the board. (2) The board shall each year elect one or (3) formerly (4) No change. two vice presidents, who shall be eligible for (4) formerly (5) No change. reelection. SECTION 12.—Qualifications oj the members of SECTION 15.—Functions of the board of management the board No change. (1) The board of management shall control the management of the company and shall de- SECTION 13.—Replacement of members of the cide on all questions of importance or of prinboard ciple, or of general application, and more especially on such questions and matters as are (1) As from December 31, 1930, six members set out below: of the board shall retire each year; subsequently The appointment of the director general and each member shall remain in office for three of the superior officers on the recommendation years. A retiring member shall be eligible for of the director general; reelection. The appointment of new members The budget proposals; or reappointment of retiring members must The balance sheet and the profit and loss take place before the beginning of the following account; financial year. The distribution of profits; The application of the liquid resources of the Transitional provision company; The authority to take up loans and credits at The term of office of the present members the charge of the company, and to give mortof the board of management shall expire: gage security for the same; On December 31, 1930, in the case of mem- The approval of any expenditure on capital bers due in any event to retire on that date account beyond such limit as may be fixed by under the provisions hitherto in force. the board; On December 31, 1931, in the case of mem- The approval of the general regulations govbers due to retire on December 31, 1932, under erning the legal status and conditions of service the provisions hitherto in force. and of pay of the employees, including the On December 31, 1932, in the case of memgeneral regulation of salaries and wages. bers due to retire on December 31, 1934, under (2) and (3). No change. the provisions hitherto in force. Their successors will be appointed for three SECTION 16.—Meetings of the board of manageyears. ment In deviation from this provision, the four foreign members retire upon the coming into (1) The board shall hold ordinary meetings force of the present law. Their successors will at least every two months. It shall hold an be appointed at the same date by the Govern- extraordinary meeting whenever at least six ment of the Reich for the remainder only of members, or the president, or the Government the term of office of the foreign members, of the Reich, shall so require in writing. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

APRIL, 1930 FEDERAL RESERVE BULLETIN 197 (2) and (3). No change. SECTION 22.—Functions of the commissioner (4) Decisions shall be taken by a simple majority of members voting. The president Omitted. shall have a casting vote. (5) The Government of the Reich may ap- SECTION 23.—Staff and expenses of the commispoint one permanent representative, who is sioner's office entitled to take part without vote in the meet- Omitted. ings of the board of management and of its committees. If he is prevented from attending, SECTION 24.—Exceptional powers of the commissioner his permanent deputy may take part in the Omitted. meetings. The representative of the Reich and his deputy shall be appointed at the begin- SECTION 25.—Financial management oj the ning of each financial year. company SECTION 17.—Permanent committee (1) At the close of each financial year the company shall draw up a balance sheet and (1) The board of management may delegate profit and loss account. its power, so far as it thinks fit, to a permanent (2) The net operating income, after paying committee consisting of six members. One of the reparation tax and covering the operating the members shall be chosen from the repre- payments out of operating receipts in accordsentatives of the preference shareholders of ance with the provisions of section 4 of the law, Group A, if they so require. shall be applied as follows: (2) and (3). No change. 1. In the first place provision shall be made for the service of interest on the bonds and loans SECTION 18.—Remuneration oj members of the of the company and for the sums requiring to board be written off. 2. As cover for any operating deficit of the No change. company and as security for the prompt payment of the reparation tax and the prompt set- SECTION 19.—Directorate (Vorstand) of the tlement of the interest and amortization paycompany ments on the bonds and loans of the company, a reserve (adjustments reserve) shall then be (1) and (2). No change. established. Two per cent of the gross receipts (3) The director general shall be appointed from the operation of the railways shall be paid for a period of three years by the board of maninto this reserve fund each year, until it agement, which shall first confer with the Govamounts to the maximum total of 450,000,000 ernment of the Reich; he shall be eligible for rereichsmarks. appointment. The directors shall be appointed When the adjustments reserve has reached by the board on the recommendation of the the before-mentioned maximum amount, a director general. further reserve (dividend reserve) shall imme- (4) No change. diately be formed as security for the payment (5) The board may at any time remove the of the preference dividend on the preference director general. The removal of the director shares. One per cent of the gross receipts from general shall not affect the rights to salary and the operation of the railways shall be carried allowances w^hich he may possess under his to this fund, until it amounts to the maximum contract of appointment. total of 50,000,000 reichsmarks. Appropria- (6) Where the Government of the Reich is tions from the net operating income to the of opinion that the director general has violated adjustments and dividend reserves may not, the company's statutes, it may require the however, in any one financial year together board of management to take a decision on exceed 2 per cent of the gross operation receipts. the discharge of the director general. The provision of section 4, paragraph 2, sentence 1 of the law applies to the dividend reserve SECTION 20.—Functions of the directorate as well as to all other reserves. If sums have to be withdrawn from the No change. reserves after the maximum amounts have been reached, the annual appropriations for their SECTION 21.—Railway commissioner replenishment shall immediately be resumed in Omitted. conformity wdth the above provisions. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

198 FEDERAL RESERVE BULLETIN APRIL, 1930 (3) The net profits remaining after the fore- SECTION 26.—Special provisions for series I to going payments out of the operating income V of preference shares, Group A have been made shall be employed as in the following order: For the preference shares of Group A, Series 1. Arrears of dividend on the preference I to V, the following provisions apply: shares of Group A, if any, shall first be paid in 1. The preference shares are expressed in full. The current dividend on the said shares gold marks. Preference and supplementary shall then be paid. dividends, together with the redemption 2. Arrears of dividend on the preference amount of the preference shares, are payable shares of Group B, if any, shall first be paid in in gold marks or their equivalent in reichsfull. The current dividend on the said shares marks. One gold mark within the meaning of shall then be paid. the present provision shall be equal in value to 3. Any sums which the Government of the %79o kilogram of fine gold. This value shall be Reich may have paid under section 4, para- calculated on the price for gold in London graph 4, of the law with a view to guaranteeing officially notified on the third working day the reparation tax shall be refunded to it. before the acceptance of the balance sheet by 4. The board, acting in agreement with the the board of management, and on the mean Government of the Reich, shall decide on the rate for telegraphic transfers on London offiemployment of the remainder of the net profits cially quoted on that day on the Berlin Bourse. in accordance with the following principles: In cases where on the third working day before In the first place at least 25 per cent of the the acceptance of the balance sheet no official remainder, not including the balance brought price for gold is published, the calculation shall forward from the previous year, shall be carried be based on the last London price for gold to the dividend reserve up to an amount not officially notified before that day. If the price exceeding 100,000,000 reichsmarks. If the sums per kilogram of fine gold works out at not more have to be withdrawn from the dividend then 2,820 and not less than 2,760 reichsmarks, reserve after the maximum limit has been 1 reichsmark in legal tender shall be paid for reached, appropriations for its replenishment each gold mark owed. shall be resumed in conformity with the above In respect of the dividend on each preference provisions. share of Series IV and V of Group A, an install- Special reserves may also be established. A ment in reichsmarks will be paid on January 2 special preference share redemption reserve of each year, in conformity with the terms of shall be established as from the year 1935 and issue. may be established at an earlier date. No Upon the redemption of preference shares reserve shall be established for the redemption which have been called in, gold marks will be of the ordinary shares. converted into reichsmarks in the manner If the board decides to distribute any re- provided for the dividend payments, the calcumaining profits, they shall be applied: As to lation being based on the quotations of the one-third as a supplementary dividend for the third working day before redemption. preference shares of Group A, and as to two- 2. The preference shares may not be rethirds as a dividend on the ordinary shares. deemed in whole or in part until the commence- Provided, however, That if preference shares ment of the sixteenth year from the date of of Group A are not outstanding to the full issue. Notwithstanding, if the liability of the amount of 2,000,000,000 reichsmarks, such a company to pay the reparation tax lapses at an portion of the remaining profits as would have earlier date, the company shall be at liberty to belonged to those preference shares which are redeem the preference shares from the date on not outstanding shall belong to the ordinary which the said liability lapses. shares. 3. The redemption rate of the preference (4) From the reserve constituted under sec- shares, together with current dividends and tion 25, paragraph 2, point 3, of the company's dividend arrears, shall be determined as follows: statutes appended to the railway law of August Upon redemption before the expiration. of the 30, 1924, 450,000,000 reichsmarks shall be car- twenty-fifth year from the transfer of the conried to the adjustments reserve. Any balance cession to the company, the redemption rate then remaining shall be transferred to the shall be 20 per cent above par, upon redemption dividend reserve. from the twenty-sixth to the thirty-fifth year, Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

199 APRIL, 1930 FEDERAL RESERVE BULLETIN inclusive, it shall be 10 per cent above par. V.—Staff accompanying passenger and goods After the thirty-fifth year redemption will take trains place at par. 4. The preference shares carry a claim to VI.—Traction service repayment of the capital by December 31, 1. Inspection staff. 1964, at the latest. 2. Accountants and clerks. 3. Staff of locomotives and self-propelling ANNEX II TO THE GERMAN RAILWAY LAW vehicles. (A) Under section 19, paragraph (3) of the law, the company may apply the working VII.—Shipping in inland and coastal waters, hours of officials to employees and workers ir not including chain tugs on the Main the following branches of the service: 1. Deck staff. I.—Permanent way inspection service 2. Engine-room staff. 3. Dock staff. 1. Gatekeepers (men and women). 4. Other staff. 2. Flagmen. 3. Other staff engaged in permanent way VIII.—Office staff of the central administration, inspection. the Reichsbahn directorates, and the inspection departments II.—Service of block signalmen on the open line (B) The company is not authorized to apply III.—Station service the working hours of officials to employees and workers in the following branches: 1. Administrative staff (including heads of I. Upkeep of permanent way and telegraph departments). lines, storehouses for super-structure materials, 2. Accountants and clerks. station and other buildings, stone quarries, 3. Circulation of trains and inspection service ballast works, gravel pits, timber impregnation within the meaning of section 9 of the Fahr- works, horticulture, forestry, and agriculture. dienstvorshriften (train service regulations). II. Reichsbahn repair shops and exploita- 4. Transmission of telegraph and telephone tions run in connection therewith, such as messages. power stations, gas works, and laboratories. 5. Points in signal cabins or operated by hand. III. Telegraph workshops. 6. Shunting. IV. Laundries. 7. Ticket collectors (including officials sup- V. Workshops of the railway depots. plying information to the public). VI. Staff employed exclusively as warehouse 8. Watchmen and messengers. workers on warehouse platforms or in tranship- 9. Other station services, where the staff in ping sheds where more than 25 of such workers question is partly employed in other branches are usually employed. indicated under A. ANNEX VIA IV.—Cash and dispatch service (unless otherwise provided under B, Section VI) Procedure to be followed in the event of any subsequent modification of the railway law and 1. Administrative staff (including heads of regulations departments). 2. Accountants, clerks, and cashiers. For the duration of the concession of the 3. Ticket offices (including inquiry offices). company, the Reich may—in conformity with 4. Dispatch of luggage and express goods. the procedure outlined hereafter—introduce in- 5. Dispatch of goods by fast or slow train to the railway law and regulations modifications and of livestock. which may appear justified by changed circum- 6. Reception, delivery and loading of lug- stances, or the real utility of which has been regage and goods. vealed by past experience, provided that such 7. Railway cars service and service for the modifications respect the provisions relating to dispatch"of trains. the reparation payments and the pledges 8. Watchmen and messengers. provided therefor and the independent char- 9. Other staff employed in the cash and dis- acter of the company with its autonomous patch service. administration. 103025—30 5 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

200 FEDERAL RESERVE BULLETIN APRIL, 1930' The proposed modifications to the law shall ANNEX VII be discussed in a permanent committee of four members, which shall decide whether the said Assignment by way of collateral guarantee of cermodifications conform to the provisions of para- tain revenues of the Reich graph 1 or not. When a decision of the committee (whether affirmative or negative) is 1. The German Government assigns, subject taken unanimously such decision shall be final. to the charge in favor of the trustees for the Should the committee not arrive at a unani- German external loan, 1924, the proceeds of mous decision, existing conditions will be main- the customs, of the tobacco taxes, the beer tax, tained. The question may, however, be sub- and the tax on spirits (administration of the mitted for decision to the tribunal, for wilich monopoly) for the service of the certificate provision is made in The Hague agreement of representing the annuities payable by Ger- January, 1930, with Germany, at the request many, including the service of any bonds which of any member of the committee. may be issued under the provisions of the new The decision may also be intrusted to a single plan. To this end, the Reich, without prejuarbitrator, in the person of the chairman or one dice to its general responsibility for the payof the members of the Court of Interpretation ment of the annuities and its entire discretion and Arbitration, upon the unanimous desire to effect these payments out of general reveof the committee. nues, will secure out of the receipts from the The committee will take its decision within a above revenues by way of collateral guarantee period of two months from the date on which the sums necessary to cover the annuities as the four members of the committee are notified elsewhere determined. The assignment conof the proposed modifications. stitutes a negative pledge and is ruled by the The members of the permanent committee following conditions: must be experts, competent on the questions 2. The Reich will not create any charge on treated in the railway law. They are to be ap- the assigned revenues for any other loan or pointed for five years from the coming into credit without the consent of the Bank for force of the new railway law. Two members International Settlements. If any such charge will be nominated by the Government of the is created on the assigned revenues with the Reich and two by the Governments of the other consent of the bank, the charge for the annuipowers which issued the invitations to The ties payable by Germany will rank ahead of Hague conference. Should a member of the any such other charge. committee be prevented from attending in any 3. If at any time the total yield of the particular case, the Government of which he assigned revenues should fall below 150 per is a national will appoint a deputy for this cent of the highest budgetary contribution payparticular case. able by Germany under the new plan, the The Government of the Reich will notify the bank may require that additional revenues members of the committee of the proposed suPcient to assure the immediate restoration modifications. The German members are to of the yield to the above percentage be assigned come to an agreement with the other members and the German Government will forthwith as to the date and place of meeting of the com- comply with that requirement accordingly. mittee. The expenses of the committee will be 4. Should the German Government change borne by the Government of the Reich. the system of collecting any of the assigned In deviation from the preceding provisions, revenues, then the receipts secured to the Reich the Reich may modify independently, after by the new system will be assigned in substituhearing the board of management, articles 11, tion for the original tax. 20, 21, 25, 28, 35, 36, 37, 38 and 40 of the law, 5. The provisions of this annex shall takewhich deal with matters that are of minor im- effect in substitution for the provisions of the portance from the point of view of the agree- protocol concerning the contributions to be ment. Such modifications, however, shall not made by the German Government and the entail fresh charges for the company; further- institution of control over the revenues from more, they must respect the provisions con- the customs and from the taxes on spirits, beer, cerning reparation payments and the pledges tobacco, and sugar, which is Annex I to the provided therefor and the independent char- agreement between the Reparation Commission acter of the company with its autonomous and the German Government for the carrying administration. out of the report of the first committee of Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

201 APRIL, 1930 FEDERAL RESERVE BULLETIN experts, London, August 9, 1924, and that of debt, with coupons attached, issued and protocol shall cease to have effect accordingly. delivered by the German Government pursuant to the terms of the plan, the receipt of which ANNEX VIII the trustee acknowledges and a copy of which is attached hereto as Exhibit A; Form, of trust agreement (c) To hold in safe-keeping as trustee, until the same shall be duly discharged, the certificate Entered into this • day of • 1930, issued and delivered by the German Railway between the Governments of et cetera Company in acknowledgment of its liability, (hereinafter called the creditor Governments), pursuant to the terms of the plan, the receipt of the one part, and the Bank for International of which the trustee acknowledges and a copy Settlements (hereinafter called trustee), of the of which is attached hereto as Exhibit B ; second part, (d) Commencing , 1930, to receive in Witnesseth: trust each month from the German Reich for Whereas the creditor Governments in conthe account of the creditor Governments signanection with the carrying out of the new plan tory hereto and for the account of the trustees as denned in The Hague agreement of January, of the German external loan, 1924, all payments 1930 (hereinafter called the plan) desire jointly thereafter to be made by Germany under the to appoint the Bank for International Settleplan and the above-mentioned certificate of ments their joint and sole trustee to receive, debt representing the service of the said loan manage, and distribute the annuities payable by or the payment of the sums attributable to the Germany, and to perform other functions with said creditor Governments on account of the respect thereto, all as provided by the plan; and, nonpostponable annuities and the postponable within the limits of the statutes of the bank. annuities as defined and specified in the plan. Whereas the Bank for International Settle- A certified schedule stating the monthly and ments has taken note of the provisions of the annual share during the whole period of the plan and is prepared to accept the appointment annuities of each creditor Government signaas such trustee; tory hereto in the nonpostponable and post- Therefore, it is agreed between the parties ponable portions and in the total of the German hereto that the description, the conditions and annuity is attached hereto as Exhibit C. the limitations of the functions of the trustee with respect thereto and of the relations, obliga- ARTICLE III tions, and rights of the parties are those set forth as follows: Except during a period when the transfer of the postponable annuity is suspended, as pro- ARTICLE I vided for in Article XI below, the trustee will The creditor Governments jointly appoint accept only currencies other than reichsmarks the Bank for International Settlements their in payment of the monthly installments of the joint and sole trustees for the purposes herein annuities payable by Germany, subject always defined. The bank accepts the appointment to the proviso that the trustee may accept and agrees to carry out the trust on the condi- reichsmarks, in each month of a given annuity tions herein stated. year, for an amount equal to one-twelfth of the total of any current annual program for pay- ARTICLE II ments under delivery in kind and reparation recovery act procedures for the year in question. The trustee is empowered and agrees— In arranging for the receipt of currencies (a) To receive any balances transferred by other than reichsmarks the trustee, after haying the agent general for reparation payments on been notified of the requirements of the creditor the winding up of his accounts, subject to the Governments, will inform the German Govrights of the different creditor Governments in ernment and, at the same time, the Reichsthe distribution of such balances and to any bank, at least one month in advance of the due claims and commitments thereon wrhich may dates for payment, of its preferences relative be outstanding at the time of transfer, all of to the currencies which it desires to have paid which, as shown by the records of the agent into its account. If these preferences are not general for reparation payments, will be re- complied with, the trustee is authorized to ported to the trustee w^hen the transfer is made; accept payment from Germany entirely in the (6) To hold in safe-keeping, as trustee, until currencies of the creditor countries whose nathe same shall be duly discharged, the certificate tionals were members of the committee of ex- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

202 FEDERAL RESERVE BULLETIN APRIL, 1930 perts and as nearly as may be in proportion received into an annuity trust account. All to the respective shares of these countries, it the sums paid by Germany on account of the being understood that payments in currencies annuities shall be managed by the trustee other than reichsmarks which are not based and shall be employed and distributed each upon the gold or gold exchange standard will month upon receipt as follows, on the underonly be made with the consent of the trustee. standing that the obligations of the trustee The trustee will give receipts to the German in regard to the said sums shall be only those Government for all sums which it pays or normally incumbent upon a banker for the causes to be paid both on account of the post- ixecution of a trust agreement, and in no case ponable and on account of the nonpostponable shall the trustee permit the accounts or credits annuity. These receipts will show the curren- of any creditor Government to be overdrawn. cies received as well as the equivalent value in (a) In the first place, the sums required reichsmarks, with which the German Govern- monthly for the service of the German external ment will be credited. loan, 1924, shall be transferred to the account At the end of each annuity 37ear, when the or order of the trustees of the said loan, in trustee has received from the German Govern- conformity with the terms of the general bond ment the sums due for that year, in accordance iecuring it, on the understanding that this with the plan, the trustee shall surrender to the appropriation shall have priority over all German Government the coupon of the certi- others. This service constitutes a first charge, ficate of the German Government which corre- expressly provided for as such, on the German sponds to the payments of the year in question. annuities, whether nonpostponable or post- The trustee takes note of the undertaking ponable. given by the German Government that the (b) One-twelfth of the share of each creditor reichsmark shall have and shall retain its con- Government in the nonpostponable annuity vertibility in gold or foreign exchange as pro- shall be forthwith allocated in the books of the vided in section 31 of the law of August 30, trustee to that Government within the annuity 1924, and that, in all circumstances, for the trust account in currencies other than reichsgeneral purposes of the plan, the reichsmark marks. If one of the Governments has mobishall have and shall retain a mint parity of lized a part of the nonpostponable annuity K kilogram of fine gold, as defined in the allotted to it, there shall be retained every 790 German coinage law of August 30, 1924. month, out of the share due to that Govern- The sums paid in currencies other than reichs- ment in virtue of the present paragraph, the marks into the annuity trust account shall be sums required for the service of the obligations calculated in reichsmarks, subject to the pro- issued and outstanding, in conformity with visions of the above undertaking, at the average the conditions of the contracts made on the of the mean rates (Mittelkurs) prevailing on occasion of such issues; these sums, deducted the Berlin Bourse during the period of 15 days from the share of each of the Governments preceding the date of payment. concerned in the issues, shall be transferred The sums in reichsmarks paid by the German each month to a trustee account relating to Railway Company to the account of the trustee the loan thus issued and shall remain there at the Reichsbank under the terms of the above- until the moment when payments have to be mentioned certificate of liability delivered by made for the interest service and amortization that company, for an amount of 55,000,000 of the obligations, in accordance with the terms reichsmarks on the first day of each month in of the respective loan agreements. respect of the previous month, shall, until the (c) One-twelfth of the share due to each due discharge of the certificate be placed each Government for settling the quota of deliveries month at the disposal of the German Govern- in kind allotted to it in a given year shall be ment by the trustee as soon as they have been forthwith allocated in the books of the trustee received, provided that the installment of the to that Government within the annuity trust annuity payable by the German Government account in reichsmarks, if no other provision on the 15th day of the preceding month has has been made by the Governments concerned, been duly received. including Germany, for the settlement of this quota. ARTICLE IV (d) One-twelfth of the sum due to each Government in each annuity, after the alloca- All the sums transferred from the account tions provided in paragraphs (b) and (c), shall of the agent general for reparations or paid be forthwith allocated in the books of the on account of the German annuities shall be trustee to that Government within the annuity Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

APRIL, 1930 FEDERAL RESERVE BULLETIN 203 trust account in currencies other than reichs- ARTICLE VII marks. The trustee is authorized and agrees in (e) In application of article 88 of the annexes connection with delivery in kind, reparation to the experts' report of June 7, 1929 (hereinrecovery act, and other similar systems to after called the "experts' report"), the sums pay in reiehsmarks up to the amount of the allocated as provided in the preceding paramonthly reichsmark balances available to the graphs will remain without interest in the respective creditor Governments on cheques, national subdivisions of the annuity trust drafts, or orders duly executed by the authoraccount up to the equivalent of the following minimum amounts: ized representative of any such creditor Government. The creditor Governments respec- Reiehsmarks tively agree to keep the trustee advised of the France 68, 037, 500 Great Britain 26, 587, 500 identity and authority of such representatives Italy 13, 887, 500 and to supply it with their specimen signatures. Belgium 7, 512, 500 Rumania 1, 312, 500 ARTICLE VIII Yugoslavia 5, 462, 500 Greece 450, 000 Payment by the trustee in compliance with Portugal 862, 500 the documents referred to in the preceding Japan 862, 500 Poland 25,000 article shall constitute full discharge to the trustee for the reichsmark payments made. 125, 000, 000 Payments in currencies other than reichmarks All sums standing in the national subdivisions made or transferred out of the annuity trust of the annuity trust account in excess of the account upon the order of a creditor Governabove minimum noninterest-bearing deposits, ment or effected under the authorizations may be freely withdrawn from the said account contained in Article IV above, shall constitute by the creditor Governments, in accordance a full discharge to the trustee for the payments with the following paragraph: made. In addition, as soon as possible after (/) Subject to the foregoing and in accordance the close of each annuity year when the respecwith the provisions of the plan, the trustee is tive creditor Governments shall have received authorized and agrees to transfer at such dates the annual account and auditor's report referred as may be indicated any sum allocated to any to in Article XVII hereof, the competent Government within the annuity trust account authority of each creditor Government shall to any interest-bearing account in the Bank for give the trustee a final global quittance and International Settlements or to any other bank release for the actual payments made, during or banker, or otherwise to dispose of it as the the annuity year in question, to or upon the interested creditor Government may direct; order of the creditor Government concerned, but in no case will the trustee permit the ac- as disclosed by the said accounts. counts or credits of any creditor Government to be overdrawn. ARTICLE IX ARTICLE V The trustee declares that it has taken note that the German Government undertakes dur- The trustee shall not be bound to pay any ing the period up to March 31, 1966, to maininterest on balances in the annuity trust tain at the bank a noninterest-bearing deposit account. equivalent to 50 per cent of the average deposit remaining in the annuity trust account, but ARTICLE VI not exceeding 100,000,000 reiehsmarks. Any exchange profit or loss arising from The bank shall to this end certify to the transactions carried out by the trustee for German Government and to the creditor account of creditor Governments in connection Governments every month the average of the with the management of the German annuities balances at the close of each working day left shall, unless otherwise settled, be credited or by the creditor Governments on deposit withcharged quarterly by the trustee to the accounts out interest during that month, in respect of of the Governments concerned, in proportion the sums arising from the German payments to their respective shares in the principal under the Dawes plan or under the present moneys involved, subject to the provisions of plan up to the time when they are drawn out Article IV. by the creditor Governments. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

204 FEDERAL RESERVE BULLETIN APRIL, 1930 The first deposit will be paid by the German ARTICLE XI Government to the bank 15 days after the coming into force of the new plan, the amount Immediately on receiving from the German of the deposit being calculated on the average Government in conformity with the plan of the daily balances above mentioned left notification of suspension of transfer of the with the agent general or the bank during the whole or part of the postponable annuity the month ending two working days prior to the trustee shall inform the creditor Governments date of deposit, excluding sums returnable to accordingly. the German Government under Annex III of (a) As soon as this suspension becomes The Hague protocol of August 31, 1929, or effective: any supplementary arrangement. The deposit (1) The trustee shall continue to transfer shall be maintained at the amount so calculated each month the sums necessary for assuring during one month. At the end of this period the service of the external loan of 1924 in acthe deposit will be adjusted by a further deposit cordance with paragraph (a) of Article IV of or by the withdrawal of part of the existing this contract; deposit on the basis of the average of the daily (2) The trustee shall continue to credit or balances referred to above during the month transfer each month in accordance with the ending two working days before the date of the provisions of paragraph (b) of Article IV of this adjustment. A similar adjustment will take contract the sums paid by the German Governplace at the end of the second month from the ment in respect of the nonpostponable annuity; date of the first deposit. At the end of the (3) In the event of a partial postponement, third month, and thereafter at intervals of in any year, of transfer or of payment of the three months, the deposit shall be adjusted on postponable annuities, the trustee shall disthe basis of the average of the daily balances tribute the part of the postponable annuities referred to above during the three months actually paid and transferred in that year in ending two wTorking days before the date of such a manner as to insure, so far as may be each such adjustment. The intervals referred possible, that the receipts of the several creditor to in this paragraph may be changed by agree- Governments out of the aggregate payments ment between the Governments concerned with actually transferred by Germany (whether on the concurrence of the trustee. account of the unconditional or of the post- The trustee will accept this deposit under the ponable annuities) shall be proportionate to conditions set out in this article. their respective shares in the total annuities due by Germany under the plan in respect of that year, provided always that the creditor ARTICLE X Governments entitled to an allocation out of The trustee declares that it has taken note the unconditional annuities shall in no case of the provisions of the plan with respect to receive less than the allocations due to them, the functions assigned to the Bank for Inter- respectively, out of those annuities; national Settlements in connection with any (4) Should the amount of the postponable declaration of the German Government requir- annuities paid and transferred by Germany be ing the convening of the special advisory com- insufficient to provide in full to each of the mittee, and the trustee agrees and the creditor creditor Governments its due share of the Governments confirm that the trustee shall total German payments transferred, having carry out the functions assigned to it in that regard to the allocations out of the uncondirespect and in the manner described in the plan. tional annuity referred to in the previous The trustee takes note that, in application of paragraph, the trustee shall, in accordance article 124 of the experts7 report, any recom- with the provisions of paragraph 202 of the mendation of the advisory committee affecting annexes to the experts' report withdraw from the rights of the creditor Governments shall not the guarantee fund, to be constituted by the bind those Governments unless it is accepted French Government, the sums necessary to and confirmed by the creditor Governments make up the deficiency to each of the creditor which participated in the decision of September Governments concerned. The sums so with- 16, 1928, to set up the committee of experts; drawn from the guarantee fund shall be repaid and that similarly any recommendation affect- to that fund in accordance with the plan at ing the rights of the German Government shall the end of the period of postponement. not bind that Government unless it is accepted (6) During the course of a partial or total and confirmed by that Government. postponement of transfer the trustee may Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

205 APRIL, 1930 FEDERAL RESERVE BULLETIN accept from Germany payments in reichs- If, after examination, and in cases other than marks in respect of the amounts of which that dealt with in the second part of paratransfer has been postponed and of which graph (b) below, the trustee considers such an payment has not been postponed under the operation inopportune, it shall indicate to the plan. The trustee is authorized to give to the Governments concerned the reasons for this German Government receipts for such pay- opinion. ments which will be in the nature of temporary (b) If one or more of the Governments conacknowledgments. These acknowledgments cerned intend themselves to proceed in their will be converted into final receipts pro tanto own markets with an issue, the trustee shall fix on the transfer of the amounts postponed, or the mimimum conditions of issue at the time on the utilization of the reischsmarks accepted of the operation. by the trustee under this paragraph for pay- If, however, such an operation is intended in ments in respect of deliveries in kind or in connection with internal conversion operations, respect of reparation recovery acts and similar the Government concerned will be free to offer procedures under the special programs referred the bonds on its own market on whatever to in Annex IV of the experts' report. conditions it may be able to obtain, without (c) Any sums accepted in reichsmarks by its being necessary for the trustee to consider the trustee under paragraph (6) above will whether the creation of the bonds is opportune, be distributed in the form of credits in the and on the understanding that the bonds will trustee's books in such a way as to complete only be quoted on the market of issue. the credits due to each creditor Government for (c) If one or more of the Governments conthe year in question under the plan, and the cerned propose an international issue on other guarantee fund in so far as it has been drawn markets than their own respective markets, upon. These reichsmarks will be administered the trustee shall at their request, if it considers by the trustee in the manner provided in the on examination that conditions on these markets plan. permit such an operation, take steps to proceed (d) The parties to this contract agree that with this issue, and determine, after making all investments of such reichsmaxk funds sure that the central banks concerned have no effected by the trustee shall be made for the objection, the markets on which such offers individual account of the creditor Govern- may be made. ments, as their interests require, for their In the case of such issues, the various Governadvantage and at their risk. In particular ments having a share not yet mobilized in the the proceeds of investment of reichsmarks nonpostponable portion of the annuity shall credited to the gurarantee fund will be assigned be given the right to participate in proportion to the French Government. to the following figures: France 500, Great Britain 84, Italy 42, Japan 6.6, Yugoslavia 6, ARTICLE XII Portugal 2.4. No issue of an international character may, The creditor Governments and the trustee however, be made in the market of any of the agree that the trustee shall have exclusive countries the Government of which has signed authority to act as agent of the creditor this trust agreement, without the approval of Governments, or any one of them, so far as that Government both as regards the amount concerns the operations relating to the mobili- of the issue and as regards the conditions on zation of the German annuities, and that ii? which it shall be authorized. the discharge of the functions and in the use (d) If it is decided to proceed with an issue of the authority intrusted to it as agent in this and if one or more of the creditor Governments matter, the trustee will be guided by the pro- so request, the trustee shall arrange, in agreevisions of the plan which govern mobilization. ment with those Governments and with the In particular the trustee will abide by the issuing bankers, the detailed conditions on following provisions: which the bonds shall be issued. (a) When it appears to the trustee practically (e) The trustee shall apply to the German possible to proceed with an issue of bonds repre- Government, as provided in the plan, for the senting the capitalization of a part of the an- creation of issuable bonds. nuity, the trustee will inform the creditor Gov- (/) The trustee declares its willingness to act ernments. The possibility of proceeding with as trustee or representative of the bondholders, such an operation shall also be considered by or as agent for all issues of bonds made in the trustee whenever so required by one or pursuance of the provisions of the plan relative more of the creditor Governments. to mobilization, to the extent provided in the Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

206 FEDERAL RESERVE BULLETIN APRIL, 1930 loan contract to be concluded between the declares that it takes note of the arrangements trustee and the Governments concerned on the regarding deliveries in kind and reparation reoccasion of an issue of such obligations. covery acts contained in the relevant annexes (g) The expenses and commissions to be to The Hague agreement of January, 1930, and received by the trustee both for the creation agrees to observe the same as far as lies within of bonds and for their issue shall be determined its province and powers as a bank as set forth between the trustee and the Governments in the statutes. concerned with regard to the importance of the functions which may be attributed to it on the ARTICLE XVI occasion of each operation. The trustee is authorized and agrees with ARTICLE XIII respect to the assigned revenues of the Reich to exercise the discretions referred to in sec- The trustee will credit to a special trust tion 3 of Annex III of the experts' report. account the deposits which the French Government has undertaken to make, in the circum- ARTICLE XVII stances contemplated in the plan, up to an amount of 500,000,000 reichsmarks, in cur- The trustee shall furnish to each creditor rencies other than reichsmarks based upon Government at the close of each month an the gold or gold exchange standard. account showing all the receipts and payments The trustee undertakes to administer these of the trustee during that period in respect of funds in such a way that the sums deposited the annuity received from Germany. The shall be available in currencies other than trustee shall also furnish to each creditor Govreichsmarks, based upon the gold or gold ernment as soon as may be after March 31, in exchange standard, in order to equalize the the year 1931, and every succeeding year, a short payments to the other creditors during a copy of the account as approved by the audiperiod of transfer postponement. tors of the Bank for International Settlements of all its operations in respect of the whole of Subject to the provisions of Article XI (c) the German annuities, including the service of and (d), the trustee will pay interest to the the German external loan, 1924, since the close French Government, at the maximum current of the last preceding yearly account or, in the rate paid for long-term deposits, on the amount case of the first account, since the commencestanding in this account in currencies other ment of the operations of the bank, and of any than reichsmarks. report that may be made by the auditors on If it is agreed that this deposit shall remain such accounts. The bank shall also furnish to for more than five years, the French Governeach creditor Government a copy of its annual ment shall be entitled to participate in the general report as soon as published. profits of the bank in respect of this deposit on the terms laid down in article 53 (e) (1) of its statutes. It shall be restored to the French ARTICLE XVIII Government in the circumstances contem- From the date of coming into force of the plated in the plan. present contract until its completion, the creditor Governments, in addition to maintaining ARTICLE XIV the deposits referred to in Article IV (e), agree If the German Government elects to make to pay to the trustee a commission of 1 per the long-term deposit, up to 400,000,000 reichs- mille on the actual payments received from the marks, provided for in the plan, the trustee German Government on their behalf, in respect agrees to receive and administer this deposit of the remuneration provided in article 84 of and to take the consequent measures for allo- the annexes to the experts' report. cation and utilization of its profits according to This payment will form a prior charge in the provision of article 53 (e) of the statutes of favor of the trustee in accordance with the plan, the bank. on the sums received by it on behalf of the creditor Governments within the annuity trust ARTICLE XV account. In addition to making disbursements and The provisions of this article will remain in keeping accounts in connection with deliveries force failing any new arrangement; such new in kind, reparation recovery acts, and other arrangement may be made at the end of the similar systems as above provided, the trustee first or of any one of the first five financial Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

207 A PRIL, 1930 FEDERAL RESERVE BULLETIN years, at the request of one of the signatory- ANNEXES TO THE REGULATIONS powers or of the trustee. ANNEX I.—Table showing the distribution of deliveries in kind among the creditor powers. ARTICLE XIX ANNEX II.—List of excluded commodities (list A). ANNEX III.—List of rationed commodities (list B) (to The trustee is authorized and agrees to notify be drawn up at a later date if necesforthwith to the creditor Government any sary.) ANNEX IV.—List of commodities which can only be difficulty which may arise between it and the partially paid for out of the funds for German Government relative to the interpre- deliveries in kind (list C). tation or the application of the plan. ARTICLE I.—Definition of the commodities and ARTICLE XX services which may be supplied as deliveries in kind The creditor Governments and the trustee 1. Deliveries in kind within the meaning of agree that, if any dispute shall arise between the present regulations are commodities and them or any of them with regard to the meaning services produced by the German economic or application of the provisions of this trust system and supplied to a power which is a agreement, the dispute shall be referred for creditor of Germany, the payment in respect final decision to the tribunal provided for by of such commodities and services being effected The Hague agreement of January, 1930, unless wholly or in part by means of funds reserved the parties to the dispute shall elect to refer for this purpose in execution of the experts' the same to the president of the tribunal or a plan of June 7, 1929, according to the distrimember thereof selected as sole arbitrator. bution of these funds as shown in the appended table. (Annex I.) ARTICLE XXI 2. The commodities and services which may The present contract shall come into force form the subject matter of a contract for debetween the trustee and the creditor Govern- liveries in kind are, subject to the provisions ments whose representatives have signed it of the present regulations, all commodities as soon as the plan has been put into application which are of German origin or manufactured in and this contract has been signed on behalf of Germany and all services of a commercial nathe trustee and of four of the following powers: ture performed by the German economic sys- Belgium, France, Great Britain, Italy and tem, such as transport by land in Germany; Japan. transport by river, sea, or air under the Ger- The French text is alone authentic. man flag; plans for public works and preparation of schemes for w^orks to be executed out- ANNEX IX side Germany; sales of German licenses or patents to be utilized outside Germany; insurance contracts underwritten by German com- Regulations for deliveries in kind panies. SUMMARY 3. The commodities shown on list A (Annex II) are described as "excluded" commodities Text of the regulations for deliveries in kind and can only be paid for as a delivery in kind ARTICLE I.—Definition of the commodities and in the case mentioned in paragraph 45 hereafter. services which may be supplied as 4. The commodities which may be eventually deliveries in kind. included in list B (Annex III) are described as ARTICLE II.—-Utilization of the quota allotted to each of the creditor powers for "rationed" commodities and can only be supdeliveries in kind. plied as a delivery in kind within the limit of ARTICLE III.—General provisions concerning the the ration existing at the time when the conexecution of contracts for deliveries tract for such commodities is made and subject in kind. ARTICLE IV.—Organization. to the provisions of paragraphs 69 and 70 here- ARTICLE V.—Preparation and revision of lists. after. ARTICLE VI.—Direct payments. 5. The commodities shown in list C (Annex ARTICLE VII.—Approval of contracts. IV) can only be supplied as deliveries in kind ARTICLE VIII.—Payments. ARTICLE IX.—Prohibition concerning reexportation. on condition that the buyer pays a part of their ARTICLE X.—Infractions and frauds. value direct to the seller according to the con- ARTICLE XI.-—Arbitration. ditions laid down in Article VI of the present ARTICLE XII.—Temporary provisions. regulations and subject to the provisions of ARTICLE XIII.—Revision of the regulations. ARTICLE XIV.—Authenticity of texts. paragraphs 69 and 70 hereafter. 103025—30 6 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

208 FEDERAL RESERVE BULLETIN APRIL, 1930 6. No contract the value of which is less than power in question for deliveries in kind during 3,000 reichsmarks can be approved as a con- the three months following the period of three tract for deliveries in kind unless it is a rider months in which the sums available have been to a contract previously approved. so increased. At the end of each month the position shall ARTICLE II.— Utilization oj the quota allotted to be adjusted on the basis of the amount of each oj the creditor powers for deliveries in credits blocked at that time. kind 11. If, owing to the adoption of the foregoing procedure, the payments to be made to sup- 7. Each creditor power is responsible for the pliers of deliveries in kind for the account of a utilization of its quota for deliveries in kind. creditor power exceed the sums available to In principle and subject to the provisions of that power for this purpose, the necessary paragraphs 8 and 14 hereafter, each power is amounts shall be advanced by the power in required to obtain approval for contracts pro- question. These advances may be drawn from viding for payments of which the total is any funds belonging to the power which the sufficient in any given year to absorb the quota latter may select. The sums in question will of that power for deliveries in kind. be refunded to the power during the three 8. Each power may carry forward a part, months following the period of three months not exceeding 40 per cent, of its quota for a in w^hich the advances were made. The refund given year, to the following year. The part will be effected out of the credits available thus carried forward will not be counted as part for deliveries in kind, so that the total amount of the credit for the following year for purposes of such credits allotted to the power in the of calculating the part of the quota for that attached table (Annex I) shall not be increased. year which may be carried forward. 9. Contracts covering the total credits pro- ARTICLE III.—General provisions concerning the vided for deliveries in kind shall be passed execution oj contracts jor deliveries in kind before August 31, 1939, but these contracts shall not provide for any payment to be effected 12. The German Government undertakes to after that date. facilitate as far as possible the conclusion, Any credits which may be available at that within the scope of the present regulations, of date as a result of a cancellation of contracts commercial contracts under ordinary commershall be utilized subject to agreement between cial conditions by not taking or permitting to the creditor Government concerned and the be taken any measure which would result in German Government for new contracts for deliveries being unobtainable under ordinary deliveries in kind. commercial conditions. No delivery shall be made and no payment 13. If a creditor Government considers that effected in respect of deliveries in kind after the German Government has not fulfilled this March 31, 1940. undertaking, and that owing to this fact it has 10. In view of the delays w^hich normally been unable to absorb in accordance with the occur in the execution of certain contracts, each present regulations its quota of the credits set creditor power may, upon its own responsi- aside for deliveries in kind as defined in the bility, and on the understanding that payments appended table (Annex I) it may submit the for which provision has already been made question to the arbitral tribunal for which proshall not be thereby delayed, submit contracts vision is made in article 15 of The Hague Agreefor approval which involve payments in excess ment of January, 1930. of the credits allotted to that power for deliver- 14. If the tribunal considers the complaint ies in kind within a given month. to be wholly or partially founded it will fix the The authorized amount of such excess shall sum which the Government making the combe calculated as follows: plaint has been unable for this reason to utilize Of the credits wThich are blocked in the for deliveries in kind, and will cause such sum accounts of a power as a result of delay in the to be placed at the free disposal of the said execution of contracts approved for that power, Government. The obligation of the Governan amount not exceeding 30 per cent may, if ment to utilize a part of its credit for deliveries the power so requests, be added to the credits in kind shall thereby be reduced by an equivaavailable to it for deliveries in kind during the lent amount. following three months. The amount of these 15. If on its own responsibility the Governadditional credits may never exceed that of ment making the complaint so requests, the the credits still remaining available to the tribunal may, in accordance with paragraph 4 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

209 APRIL, 1930 FEDERAL RESERVE BULLETIN of article 15 of The Hague Agreement of Jan- to the duties arising from the mandate with uary, 1930, by an interlocutory order cause a which it is entrusted. part or the whole of the sum which the Govern- 22. The Bank for International Settlements ment has stated that it has been unable to will effect the payments to be made in virtue utilize for deliveries in kind, to be placed at of duly approved contracts which are transthe disposal of the said Government. mitted to it by the agent of the German 16. In such a case the tribunal shall, when Government or are sent by the agent of the delivering its award, fix the conditions under creditor power concerned in execution of a which the payment is to be reckoned against decision of the arbitrator in virtue of Article the sums to be paid under the awTard, or the VII hereafter. conditions under which deliveries in kind shall 23. The bank will keep all accounts and be taken to make good the sum paid. statistics, and will exercise all supervision in respect of these payments. ARTICLE IV.—Organization 24. The bank is also at liberty, in accordance with paragraph 28 of Annex I to the experts' 17. The management of deliveries in kind plan of June 7, 1929, to appoint an advisory includes two separate parts, namely, the committee, the object of which would be to approval of contracts and the handling of the nform generally the bank of the progress of funds reserved for deliveries in kind. The •deliveries in kind. creditor Governments concerned and the Ger- This committee may, if it thinks fit, convoke man Government remain responsible for the those agents of the Governments who do not approval of contracts and entrust the manage- form part of the committee. ment of the funds reserved for deliveries in kind to the Bank for International Settlements. ARTICLE V.—Preparation and revision of lists 18. A contract is approved if there is agree- 25. The coefficients of list C represent the ment with regard to it between the creditor proportion in terms of value which the raw Government concerned and the German Gov- materials of foreign origin included in a comernment. modity bear to the sale price of the commodity, 19. Each creditor Government concerned in delivery taken at the factory or warehouse of deliveries in kind and the German Government the seller. shall appoint an agent, whose duty it shall be The coefficients are based on a detailed costto deal with all matters concerning deliveries ing of the sale price of the article. in kind and to fulfill all functions devolving 26. The same methods of determining the upon him under the present regulations. coefficients shall be applied whenever list C is Each agent shall remain responsible to his revised. Government for the strict application of the List C shall include after each revision comprovisions of these regulations. modities the coefficient of which determined as The agents of the German, Belgian, British, described above is equal to or more than 25 per French, Italian, Japanese, and Yugoslav Gov- cent. ernments shall assemble whenever a Govern- 27. Exceptions, however, which are admitted ment concerned in deliveries in kind considers regularly in accordance with Article VII herea meeting to be necessary. The meeting shall after, may be taken into consideration when the be called by the agent of the Government which list is drawn up. proposes it. 28. Lists A and G (Annexes II and IV) may The same agents shall meet every year, in be revised every two years, the first revision principle during the second fortnight in May, taking effect as from April 1, 1932. in order to review the general situation as 29. If one of the Governments concerned shown by the statistical documents supplied wishes that such revision should be made, its by the Bank for International Settlements. agent shall inform the agents of the other 20. The agent of the German Government Governments to this effect before February 1 will be in permanent residence at Paris, where of the year fixed for revision, and shall suggest the agents will meet in all the cases for which a date for the consideration of its request. He provision is made in the present regulations. will informUhem of the modifications which he The agents of the creditor powders are under proposes to make. no obligation to have a fixed place of residence. 30. Upon receipt of this request each agent 21. The Bank for International Settlements shall announce whether he intends to propose can incur no responsibility except with regard other modifications. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

210 FEDERAL RESERVE BULLETIN APRIL, 1930 The revision committee, consisting of the in one of its colonies, dependencies, or man- German, Belgian, British, French, Italian, dated territories, or vice versa. Japanese, and Yugoslav agents, will meet in 40. If a contract stipulates that the seller Paris. shall be responsible for erection outside Ger- 31. If the agents present at the meeting many, such erection, whether carried out partly agree, they shall fix the lists for the period of or wholly by means of German resources, shall two years from April 1, next following. not give rise to a direct payment unless its value 32. In case of disagreement the question exceeds 1,000 reichsmarks. shall be submitted to the arbitrator whose 41. Erection within the meaning of the functions are defined in paragraph 108 here- present regulations does not comprise foundaafter. tions and masonry, but covers the installation After hearing the parties concerned the arbi- and assembling of machines and plant the parts trator shall draw up the lists for the period of of which have been finished wholly or mainly two years as from April 1 next following. at the factory. 33. The same procedure shall apply, if nec- 42. If the cost of erection carried out outside essary, to the fixing of the rations of list B. Germany, either wholly or partly by means of (Annex III.) If the German Government de- German resources, exceeds 1,000 reichsmarks, it sires that such rations shall be fixed, its agent shall be subject to a direct payment of 50 per shall submit a request to this effect to the agents cent of such cost, subject to the following limiof the creditor Powers at least two months tations : before the date on which these programs come (a) Ten per cent of the value of the order for into force. contracts of an amount less than 200,000 reichsmarks. ARTICLE VI.—Direct payments (6) Ten per cent of the first installment of 200,000 reichsmarks and 5 per cent of the 34. The payments to be made by the pur- balance for contracts exceeding 200,000 reichschaser direct to the seller without any entry marks. being made to an account for deliveries in kind 43. If the total value of erection outside are governed by the rules set forth hereafter. Germany exceeds these limits, the entire 35. In respect of any commodity delivered amount of the excess shall be added to the direct which appears in list C, the purchaser shall pay payment to be made by the purchaser to the direct to the seller that part of the price which seller. corresponds to the coefficient fixed for this 44. The foregoing provisions do not apply to commodity in accordance with paragraph 25 the employment of German personnel outside of the present regulations and subject to the Germany, which is governed by the provisions provisions of Article VII. of paragraphs 47 and 48 hereafter. 36. If a contract makes the seller responsible 45. If a contract for the supply of a composite for the transport of the commodity, and if the object provides for the delivery as part of such transport is not carried out entirely by German object of (a) commodities contained in list C, means a direct payment shall be due whenever (6) equipment of a specialized type not currently the cost of the transport exceeds 400 reichs- manufactured in Germany, (c) commodities marks. mentioned in footnote 3 of list A, provided that 37. If the cost of transport carried out by they are finished products, the delivery of these non-German means exceeds 400 reichsmarks, commodities shall not give rise to a direct paythe purchaser shall pay the entire cost direct to ment unless their total value, delivered either the seller, unless there is a special agreement by or to the seller at his factory or warehouse, between the agent of the creditor Government exceeds 10 per cent of the total value of the concerned and the agent of the German contract. Government. A composite object within the meaning of the 38. Transport by German means in or out- present regulations is one for which the order is side Germany of commodities ordered as a placed with a single supplier, is executed by him delivery in kind shall not give rise to any direct acting alone or with the assistance of subconpayment. tractors, and makes him responsible for the 39. Transport under German flag by river, working or output of the object supplied sea, or air may of itself form the subject matter (machinery, factory plant, ship, etc.). of a contract for deliveries in kind whenever it 46. If the value defined in the preceding is effected between a German port and a port paragraph exceeds 10 per cent of the total price situated in the territory of a creditor power or of the contract, payment shall be made by the Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

APRIL, 1930 FEDERAL RESERVE BULLETIN 211 purchaser direct to the seller in respect of the ARTICLE VII.—Approval of contracts commodities contained in list C, according to the rules applicable to such commodities under 52. No payment shall be made by means of paragraph 35 of the present regulations, and the funds reserved for deliveries in kind, unless for the entire value of the commodities men- in execution of a commercial contract previtioned under headings (b) and (c) of the preced-ously approved by agreement between the ing paragraph. creditor Government concerned and the Ger- 47. If a contract provides for the employ- man Government. ment of German personnel outside Germany, 53. Every contract shall contain a clause 40 per cent of the total wages and salaries of indicating that it is to be paid for out of the such personnel shall be paid by the purchaser funds reserved for deliveries in kind. direct to the seller. 54. By a contract within the meaning of the 48. If, however, the food of the personnel present regulations is understood— thus employed comes from Germany, or if the (a) A document signed by the seller and the personnel is provided with living accommoda- buyer. tion in Germany while the work is being carried (6) A firm offer, with or without specificaout, or if special arrangements for housing and tion, accepted without reserve by the buyer by feeding are made locally by the purchaser and letter or by telegram. the seller, the percentage shall be reduced by (c) A firm order accepted without reserve by agreement between the agent of the creditor the seller by letter or by telegram. power concerned and the German agent. Fail- 55. In the first place the contracts must be ing such agreement, the arbitrator for whom accepted by the creditor power concerned, provision is made in paragraph 108 hereafter which shall ascertain at the outset that they shall decide. are in conformity with the regulations and that 49. If the commodity ordered under a con- sufficient funds stand to its credit to meet the tract is the subject of a mortgage, a lien or payments for which the contract provides when any other charge in favor of a* non-German they fall due. creditor, and if it is to be delivered free of any 56. Two copies of the contracts will then be such charge the payments required to pay off transmitted to the agent of the German any such charge shall be made by the purchaser Government, either by registered letter or dedirect to the seller. livered direct against a receipt given by an 50. No direct payment shall be made if the authorized person. contract makes the seller responsible for— 57. Within three clear working days of re- (a) The customary inspection and super- ceiving the contract the agent of the German vision of commodities or of the manufacture Government shall inform the agent which has of commodities in Germany by persons em- transmitted the contract whether he accepts it ployed by the buyer or by inspectors belonging with or without reservation or whether he proto recognized inspection agencies, provided that poses its rejection. these agencies, which need not necessarily be 58. If he has no objection to the contract he German, are established in Germany. will inform the Bank for International Settle- (6) The transshipment or handling of com- ments, to which he will send a copy of the modities by non-German means or labor. contract. (c) The suras required to cover temporary 59. If the agent of the German Government advances for customs dues or similar non- considers that the contract should be modified German charges. or rejected, or if he regards the details which it (d) The costs of guaranty deposits in non- contains to be insufficient, he will return it, German currency. accompanied by his observations and reasons, 51. A direct payment shall be made in re- to the agent from whom it was received. spect of any contract for insurance which is not 60. If the agent of the creditor Government accessory to a delivery or to work to be executed does not concur in the view of the German as a delivery in kind, but which forms of itself agent, he shall bring the question before the a contract for such delivery. The amount of arbitrator for whom provision is made in parathis payment will be fixed for each individual graph 108 hereafter. Alter calling for the case by direct agreement between the agent of observations of the a™ no of the creditor power the creditor power concerned and the German concerned and the German agent, the arbitraagent. tor shall give a final decision within a maximum Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

212 FEDERAL RESERVE BULLETIN APRIL, 1930 of eight clear working days from the date on release the credits reserved but not yet utilized which the question was referred to him. for payment for the contract. 61. The agent of the German Government The agent of the German Government shall may apply direct to the German seller for be informed accordingly. further information or to have any changes 69. Exceptions to the present regulations made in the contract which he may consider may be admitted by agreement between the to be necessary. It shall be his duty, however, agent of the creditor Government concerned to inform the agent of the creditor power, in and the agent of the German Government order that the agent may take the necessary provided that they do not exceed— action with regard to the purchaser. (a) In the case of any rations which may 62. Whenever the procedure is suspended in eventually be fixed, 20 per cent of the ration the manner described, it shall be resumed with allowed for the year in question. the same formalities and the same time limits (6) In the case of direct payments, 30 per as from the day on which the agent of the cent of the payments of this kind which should creditor power sends to the German agent the have been effected under the contract in quesnecessary information or the agreement of the tion had the regulations been strictly applied. parties concerning the changes required to be 70. If the conditions of a contract entail made in the contract. other exceptions to which the German agent 63. When an appeal is made to the arbitrator agrees, the contract shall only be approved the award shall be notified to the German provided that, of the Belgian, British, French, agent and the agent of the creditor power Italian, Japanese, and Yugoslav agents, at concerned. The latter may then send the least three agree to the exception proposed. contract direct to the Bank for International 71. In the case, however, of an exception to Settlements, and shall be responsible for the clause concerning reexportation, which in informing the German agent to this effect. principle remains forbidden, the unanimous 64. When a contract does not provide a agreement of these six agents shall be required. definite scheme of payments, the German 72. In transmitting to the Bank for Interagent will draw up a schedule in agreement national Settlements a contract in respect of with the agent or authorized department of which exceptions have been admitted in applithe creditor Government, in order that the cation of paragraphs 69, 70, and 71 above, the Bank for International Settlements may set agent of the German Government shall attach aside the sums required for paying for the to the contract a note stating the nature of the contract. exception granted and indicating which agents 65. The Bank for International Settlements have given their consent. will keep accounts for each creditor country, In the case of contracts approved in virtue of showing the dates and amounts of the pay- an arbitral decision in accordance with paraments for which the approved contracts pro- graph 63, the agent who transmits the contract vide and indicating how much of the quota will attach to it a copy of the arbitral decision. remains available for new^ contracts. 73. The statistics which the Bank for Inter- Abstracts of these accounts will be supplied national Settlements will keep in execution of on the 1st and 15th of each month to the agent paragraph 23 will be sent by the bank each of the creditor power concerned and to the month to the agents of all the Governments German agent. and will show^ (1) according to countries and 66. Before submitting a contract for ap- categories the total amount of the contracts proval the creditor Government concerned which it has received during the preceeding shall have definitely agreed with the purchaser month, those for an amount exceeding 5,000,000 the terms on which he can obtain payments out reichsmarks and riders thereto being shown of the funds reserved for deliveries in kind. separately; (2) the information transmitted to 67. If, in the course of execution of a con- it with contracts in accordance with paratract, the buyer does not fulfill these conditions graph 72. he shall continue to bear the entire responsibility for the contract, as far as the seller is ARTICLE VIII.—Payments concerned, under ordinary commercial conditions, even if the contract stipulates that it shall (A) Payments for deliveries in kind. only be executed as a delivery in kind. 74. For each creditor Government there shall 68. In this case the Bank for International be opened at the Bank for International Settle- Settlements shall, if the creditor power con- ments an account to which shall be credited all cerned so requests on its own responsibility, sums to be reserved by that Government for Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

213 APJU1,1930 FEDERAL RESERVE BULLETIN deliveries in kind according to the approved days at most from the date of issue. They schedule. All payments made in respect of shall only be issued if the contract for which approved contracts shall be debited to this they are required makes provision to this account. effect. 75. The credit balance at the end of each They shall be drawn by the creditor Governmonth shall be added to the credits opened ment on the Bank for International Settleduring the following month. The sum avail- ments. They shall not be accepted. able to the creditor power for deliveries in kind They shall be issued to the order of the during that month shall be the total of these buyer, who shall indorse them and transmit two amounts. them direct to the seller. 76. At the beginning of each month the They shall bear the words: "Payable at the agent of the creditor Government concerned Reichsbank in Berlin." and the agent of the German Government shall 86. If a creditor Government which has be informed of the state of the account. issued a time draft does not possess credits 77. Subject to the reserves provided by the sufficient to meet the payment when it falls present regulations the sums paid to this due, it shall place the necessary funds at the account can only be employed for the payment disposal of the Bank for International Settleof contracts for deliveries in kind. ments two days before the due date. 78. For the purpose of paying for duly ap- A creditor Government which advances a proved contracts for deliveries in kind each sum in this manner shall be reimbursed out of creditor power may dispose freely of the credit the first credits which are thereafter placed at balance lying in his account, by any method of its disposal for deliveries in kind. payment which is current in international com- 87. The issuing authority and the agent of merce, and particularly by means of checks, the German Government will receive daily orders to transfer, and time drafts. advice and periodical statements of the pay- The payments will be made by the Reichs- ments effected. bank in Berlin. 88. The rules to be applied to the payments 79. The creditor powers will transmit to the made in application of the preceding para- Bank for International Settlements the names graphs will be determined jointly by representaand signatures of the officials who are author- tives of the German, Belgian, British, French, ized to issue orders to pay. Italian, Japanese, and Yugoslav Governments 80. In principle, orders to pay shall be made and the Bank for International Settlements, out in reichsmarks. When a contract stipu- particularly in so far as concerns the requisite lates that payment is to be made in a non- measures for safeguarding these payments. German currency, the order to pay shall be 89. When a seller has to make a payment to made out in this currency, but must bear the a buyer in executing or winding up a contract inscription "payable in reichsmarks." In this the buyer shall inform his Government and recase the conversion into reichsmarks shall be quest the seller to make the payment into the made at the time of payment, at the official account for deliveries in kind opened for this average rate of the Berlin Bourse as quoted for Government. the day preceding that of payment. 90. This provision shall not apply to any 81. If a contract provides for an agreed rate payments of less than 10,000 reichsmarks and of conversion, the conversion into reichsmarks of less than 20 per cent of the value of the conshall be made at this rate. tract which the seller may be liable to make to 82. All orders to pay must indicate the ap- the purchaser after the last payment for wThich proval number of the contract in respect of the contract provides has been made and the which they are issued. contract is consequently regarded by the con- 83. Checks shall be issued by the creditor tracting parties as terminated. In such a Government made out in the name of the seller case the payments shall be made by the seller and passed to the buyer for transmission to the direct to the purchaser. seller. They can not be cashed over the (B) Direct payments. counter, but must be passed through a bank account. 91. When the case arises the provisions of 84. Orders to transfer shall bear the names Article VI of the present regulations concernof the buyer and seller, as well as that of the ing the direct payment of a part of the value bank responsible for collection. of certain commodities or services shall be ap- 85. Time drafts shall be made payable not plied to a contract either— less than 30 davs and not more than 90 (a) By the terms of the contract itself, or Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

214 FEDERAL RESERVE BULLETIN APRIL, 1930 (6) By the decision concerning the approval commodities unless the following declaration of the contract, such decision being regarded as signed by the buyer is included in or attached conditional within the meaning of Article VII. to the contract: In the first case the dates and amounts of I undertake for fivv; years not to reexport the comthe sums to be paid direct shall be stipulated modities which form the subject of the present contract. in the contract. In the event of my selling all or part of these com- In the second case the dates and amounts of modities, I undertake to require my purchaser to take upon himself all the obligations which I have assumed, the sums to be paid direct shall be fixed by the and to cause the same undertakings to be given by his decision of approval in such a manner that the successive purchasers. direct payments are made at the same time and If I fail to perform any of these undertakings I conin the same proportions as the payments made sent to be deprived of the possibility of having new contracts concluded by me paid for by means of the on account of deliveries in kind. funds which are reserved for deliveries in kind. In both cases the purchaser shall make the Commodities shall not be considered to be reexported: direct payments to the seller in accordance (a) In cases of plant for public works which is utilized with the rules of ordinary commerce. abroad by a firm of the creditor power during a short period not exceeding one year, with obligation for the 92. The foregoing provisions shall not prereturn of the plant to the territory of the creditor clude the Bank for International Settlements in power. agreement with the creditor power concerned (b) If commodities are exported to the colonies, from meeting all the payments for which a con- dependencies, or mandated territories of the creditor power. tract provides when they fall due. In this (c) If they are intended for embassies, consulates, or case the direct payments shall be made under higher educational institutes of the creditor power the conditions and in the currencies stipulated abroad. in the contract, but it shall be debited to the (d) If after transformation or being incorporated in another article the value of the commodity does not creditor power in an account other than that represent more than 60 per cent of the value of the relating to deliveries in kind. article sold abroad, such value being estimated for delivery at the frontier or f. o. b. at a port of the ARTICLE IX.—Prohibition concerning re- creditor power. exportation 96. If the contract is concluded by the creditor Government itself, the latter will 93. Each creditor power undertakes, as far transmit it to the agent of the German Governas possible, to prevent the commodities which ment, with the undertaking for five years not it receives from Germany as deliveries in kind to reexport the commodities or, if it sells them, from being reexported during five years. to require of the buyer an undertaking in the 94. It shall not be considered to be reexpor- form prescribed by paragraph 95 above. tation within the meaning of the present regula- 97. If a dispute arises between a creditor tions : Government and the German Government as (a) In cases of plant for public works which to whether there has been reexportation or not, is utilized abroad by a firm of the creditor it shall be submitted to the jurisdiction for power during a short period not exceeding one which paragraph 107 hereafter provides. year, with an obligation for the return of the plant to the territory of the creditor power. ARTICLE X.—Infractions and frauds (b) If commodities are exported to the colonies, dependencies, or mandated territories of 98. It shall be the duty of the Governments the creditor power.1 concerned to take such steps within their (c) If they are intended for embassies, con- respective territories as they may deem necessulates, or higher educational institutes of the sary in order that contracts may be executed creditor power abroad. in accordance with the present regulations, and, (d) If after transformation or being incor- in cases of fraud or willful infraction, to apply porated in another article the value of a com- such penalties as they may consider appromodity does not represent more than 60 per priate in respect of their nationals. cent of the value of the article sold abroad, such 99. The Bank for International Settlements value being estimated for delivery at the fron- shall not incur any responsibility by reason of tier or f. o. b. at a port of the creditor power. any fraud or irregularity committed during 95. The creditor power shall not submit for the execution of a contract. But it shall approval any contract for the delivery of inform the agent of the creditor Government concerned and the German agent of any fact 1 If mandated territories are allowed the benefit of deliveries in kind which may appear to it to constitute a fraud this shall, as in the past, be without prejudice to the legal status of theor willful infraction of the present regulations. mandate. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

215 APRIL, 1930 FEDERAL RESERVE BULLETIN 100. The agents of the creditor Government tribunal for which article 15 of The Hague agreeand the agent of the German Government will ment of January, 1930, provides. inform one another of the investigation which The same procedure shall apply to any distheir respective Governments cause to be under- pute which may arise concerning the applicataken in order to ascertain whether there has tion of the provisions of Article III or in the been fraud or infraction of the present regula- case mentioned in paragraph 97 of the present tions in connection with a contract and they regulations. shall inform one another of the result of such 108. All other disputes which may arise from investigations. the application of the present regulations shall 101. The Governments undertake to afford be submitted to an arbitrator of neutral naone another full facilities for the purpose of tionality who is resident in Paris, and who is carrying out the investigations which any of of high commercial or industrial standing. them may decide to make. For this purpose This arbitrator shall be appointed for two the agents of the various countries will ex- years by unanimous agreement between the change such information as they possess and is German, Belgian, British, French, Italian, likely to facilitate their respective tasks. Japanese, and Yugoslav Governments, or fail- 102. If a creditor Government or the Ger- ing unanimity, by the president of the arbitral man Government considers one of its nationals tribunal mentioned in the preceding paragraph. to be guilty of fraud or of willful infraction of the present regulations, its agent will so inform ARTICLE XII.—Temporary provisions the agents of the other Governments. 109. Any contract which has been approved 103. Pursuant to such notification no con- by the date at which the present regulations tract to which one of the parties is a person come into force shall continue to be executed whose name has thus been notified shall be under the procedure of the Wallenberg Regulaapproved during a period of two years from the tions with the sole exception that payment by date of the notification. check shall take the place of payment by means 104. A Government which has applied for of sight drafts, and that the organizations for one of its nationals to be excluded may, before which the present regulations provide shall be the end of the period of two years mentioned substituted for those previously in existence. above, request that its national be removed 110. During a period of two years from the from the list of excluded persons. date when the verdict of guilt is pronounced no 105. If before the last payment under a con- contract shall be approved in which the name tract has been made, the buyer or seller is found of a person appears, either as purchaser or seller, guilty by his Government of fraud or willful in respect of whom the penalties for which infraction of the present regulations, and if his Article XII of the Wallenberg Regulations name is notified in accordance with paragraph provides have been applied. 102, no further payment shall be made out of the funds for deliveries in kind in respect of the ARTICLE XIII.—Revision of the regulations contract which shall be liquidated direct be- 111. The present regulations may at the tween buyer and seller. request of one of the powers interested in If the sums paid up to that time exceed the deliveries in kind be submitted to revision. value of the commodities or services due to be Such revision shall take effect as from April 1 delivered under the contract, the Governments of the year in question. concerned shall do their utmost to obtain re- Revision may first take place in 1931 and payment of the excess to the account for de- thereafter at intervals of two years. liveries in kind of the creditor power. 112. The Government which proposes the 106. In order that the provisions of the pre- revision shall inform all the other Governments ceding paragraph may be applied, the agent of concerned in deliveries in kind of its intention, the power which has declared its national to be before January 1 of the year in which revision excluded shall inform the Bank for Interna- may be made. It will state the points regarding tional Settlements of the measures taken in this which it suggests that modifications should be inrespect. troduced into the regulations and the date which ARTICLE XI.—Arbitration it proposes for the examination of its request. 113. The request shall be considered by a 107. Any dispute which may arise between committee consisting of the agents or reprea creditor power and the German Government sentatives of the German, Belgian, British, concerning the interpretation of the present French, Italian, Japanese, and Yugoslav Govregulations shall be submitted to the arbitral ernments. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

216 FEDERAL RESERVE BULLETIN APRIL, 1930 114. No modification may be made in the being equally authentic for purposes of interpresent regulations except by unanimous agree- pretation. It is understood that, in the event ment between the members of the committee of an appeal to arbitration on the interpretaconstituted in accordance with the preceding tion and pending the decision of the arbitral paragraph. tribunal, the interpretation considered by the creditor power concerned to be the most ARTICLE XIV.—Authenticity of texts favorable to the proper execution of deliveries 115. These regulations are drawn up in in kind shall be taken to be correct. French, English, and German, the three texts ANNEX I TO ANNEX IX.—Table showing the distribution of deliveries in kind among the creditor powers (Replacing the table of sec. 190 of Annex VII to the experts' plan and that of the annex to Appendix 2 to The Hague protocol of Aug. 31, 1929) [In thousands of reichsmarks] France Recovery G re r c e o at v e B ry ri t a a c i t n Italy Belgium Japan Deliveries act (4.95 I per cent) Transition regime (Sept. 1,1929-Mar. 31, 1930)__ 272,293.0 21.507.0 293,800 46,036.00 37,000 24,500.00 2,550 Year of deliveries in kind (Apr. 1, 1930-Mar. 31, 1931) _ j 364,090.4 36, 609.6 400,700 190,964.00 52,500 33,750.00 5,625 Second year (1931-32) I 305,540.0 32, 860.0 338,400 186,638.70 52,500 31,500.00 5,250 Third year (1932-33) | 306,180.6 30,219.4 336,400 140,718. 85 52,500 29, 250.00 4,875 Fourth year (1933-34) 304, 506. 3 29,693. 7 334,200 138, 270.60 52, 500 27,000.00 4,500 Fifth year (1934-35) ! 274,773.4 27,226. 6 302,000 126,782. 50 52,500 24, 750.00 4,125 Sixth year (1935-36) I 225,977.9 23.182.1 249,160 107,948. 70 52, 500 20, 837.50 3,750 Seventh year (1936-37) 196,314.9 20, 545.1 216,860 95,669.70 52,500 17,756.25 3,375 Eighth year (1937-38). I 166,674.6 17,985.4 184,660 83, 750.10 52, 500 14,675.00 3,000 Ninth year (1938-39) ' 137,124.4 15, 335.6 152,460 71,411. 25 52,500 11, 593.75 1,825 Tenth year (Apr. 1, 1939-Aug. 31, 1939 45, 274.5 4, 710. 5 49. 985 21,934.60 15,500 637. 50 500 Total . 2,598,750.0 259,875. 0 2, 858, 625 1, 210,125. 00 525,000 236, 250.00 39,375 Jugoslavia Portugal ; Rumania l Greece TOteriefV" ! Recovery act Total Transition regime (Sept. 1, 1929-Mar. 31, 1930) 26,000 366,943.00 67, 543. 00 434, 486. 00 Year of deliveries in kind (Apr. 1,1930-Mar. 31, 1931. 37, 500 9,000 3,000 512,013.40 227, 573. 60 739, 587.00 Second year (1931-32) 35,000 6.950 2,800 i 444,340.00 219, 498. 70 663, 838. 70 Third year (1932-33) _ 32, 500 7,150 2,600 ! 439,555.60 170, 938. 25 610, 493. 85 Fourth year (1933-34) 30. 000 6,600 2,400 431, 908. 30 167, 964. 30 599, 872.60 Fifth year (1934-35) 27, 500 6,050 2, 200 396, 023.40 154, 009.10 550, 032. 50 Sixth year (1935-36) 23, 300 5,500 2,000 337,193. 40 131,130. 80 468, 324. 20 Seventh year (1936-37) 19, 400 4,950 1,800 298, 838.15 116, 214. 80 415, 052. 95 Eighth year (1937-38) 16,600 4,400 1,600 261,605.60 101, 735. 50 363, 341.10 Ninth year (1938-39) 13,200 3,850 1,400 223,063.15 ; 86, 746. 85 309, 810. 00 Tenth year (Apr. 1, 1939-Aug. 31, 1939) 1, 500 3,300 1,200 68, 516. 00 26, 645.10 95,161.10 Total 262, 500 39, 375 57,750 j 21, 000 I 3, 780,000. 00 j 1, 470, 000. 00 5, 250. 000.00 i If the Rumanian Government and the German firms subsequently agree that the quota fixed in respect of a given period shall be exceeded, a corresponding reduction shall be applied by agreement between the German and Rumanian Governments to the other annuities. The distribution in respect of the other powers shall, however, not be changed. ANNEX II TO ANNEX IX (b) Foodstuffs manufactured from imported raw materials.3 List A (c) Gold, platinum, and silver articles.4 Group II.—Industrial products the export of Commodities which may not be supplied as which is prohibited at the time of the concludeliveries in kind 2 sion of the contract.5 Group III.—Miscellaneous products: Group I.—(a) All commodities of foreign (a) Scrap iron and scrap steel (843). origin which have not undergone any trans- (b) Animal skins and hides (153 to 155), bone formation in German territory. (156f). 2 The numbers in parentheses are those of the German statistical list of commodities. * This prohibition applies only to articles of gold, platinum, or silver 3 This prohibition does not apply to foodstuffs for consumption by which do not form part of a composite object. (See Art. VI, par. 45.) German workmen employed within the territory of a creditor power * It is understood that no prohibition can be applied to the exportation in execution of a contract for deliveries in kind. of coal, coke, briquettes or lignite as a delivery in kind. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

APRIL, 1930 FEDERAL RESERVE BULLETIN 217 (c) Paper clippings, waste paper, etc. tering the German reparation (recovery) act, (673a). 1921, signed on April 3, 1925, to the provisions (d) Yarn waste, cotton waste, etc., and all of the experts7 plan of June 7, 1929, as adopted waste from weaving and other waste employed by the final protocol of The Hague Conference in the manufacture of paper (543b). (hereinafter referred to as the new plan), (e) Natural phosphates of lime (227d). Now, therefore, it is agreed between the (/) Minerals (237 a to s). Government of the United Kingdom of Great (g) Radium, radium salts, preparations from Britain and Northern Ireland and the Governradium (Ex. 266, Ex. 317 G, Ex. 388). ment of the German Reich to substitute for the (h) Wood in the log of all varieties, with the terms of the above agreement the following exception of pit props. provisions: I. Commodities which can only be partially paid for out of the funds for deliveries in kind The German Government undertakes to pay each month on the same dates as the other This list is similar to the old list C under the payments forming the postponable annuity Wallenberg Regulations, to which has been to the Bank for International Settlements for added the following modifications: the account of His Britannic Majesty's Govern- (a) With regard to timber, the agreement of July 3, ment the sterling equivalent of the reichsmark 1928, remains in force. Paragraph 4 bears the follow- sums available under the new plan for transfer ing additions: by means of the reparation (recovery) act to Per cent His Britannic Majesty's Government, provided Pit props 55 Telegraph poles, clean 60 always that the amounts so paid shall not Railway sleepers, hard or soft wood, exceed 26 per cent of the sterling value of the clean 60 German goods imported into Great Britain (b) Item 470 a and b to be modified as during the preceding month but one. follows: 470 a, b, and 28 c to f—flax and hemp So long as no postponement of transfers is in in the raw, steeped, bleached, force the amount of reichsmarks available dyed, crushed, scutched free from each year for transfer under this agreement glutinous fiber, cleaned— shall be the amounts specified in the annex to Tow 95 (c) Items 890 a and 909 are modified as this agreement, representing 23.05 per cent 6 follows: of the total annual amounts of deliveries in 890 a—Wires (lacing, covering, etc.) kind (including deliveries under reparation made of common metal, with the recovery acts) provided in the new plan for exception of aluminum, or alloy of these metals, covered with a cas- each of the 10 years up to August 31, 1939. ing or winding, or yarn or braid- In the event of any postponement of transfer ing, or other methods of covering the sum available shall be calculated in accordby materials for electro-technical ance with Article III of this agreement. purposes 35 909—Cables for the transmission of Reichsmarks for this purpose shall be reichselectric current, with the exception marks as provided for in the new plan. The of those in aluminum, with pro- sterling equivalent shall be calculated at the tective metal wrappings in the form of casing made of strips, average of the mean rates (Mittelkurs) prewire, webbing, or similar mate- vailing on the Berlin Bourse during the halfrials— monthly period preceding each payment. Low-tension cables 35 The British Government undertakes in re- High-tension cables 40 (d) Add: turn to cause to be placed at the disposal of Bronze propellers 35 the German Government, out of the share of (e) The following items: the British Government in the annuities proex 156 f, bones, etc., vided for in the new plan and available for ex 237 h, Braunstein (oxide of manganese), ex 869 Magnesium (metal), deliveries in kind, the amount of reichsmarks are to be deleted. of which the sterling equivalent has been paid ANNEX X by the German Government. Agreement for amending the method of adminis- II tering the German reparation (recovery) act, The German Government shall arrange for 1921 the Collection by the Reichsbank or otherwise Whereas it is desired to adapt the provisions « As regards the period from Sept. 1, 1929, to Mar. 31, 1932, the aboveof the agreement between Great Britain and mentioned percentage has been applied to the sum total of deliveries in kind (including reparation recovery act payments) to be effected during Germany for amending the method of adminis- this period. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

218 FEDERAL RESERVE BULLETIN APRIL, 1930 from the German exporters of the sterling ANNEX amounts referred to in Article I above. The Reichsmarks amounts, the sterling equivalent of which is British Government agrees that, having regard payable by the German Government under Article I of to the undertaking of the German Government this agreement given in that article, the special reserve fund Reichsmarks Period Sept. 1, 1929, to Mar. 31, 1930_ 46, 036, 000 provided for in article 6 of the agreement of Year to Mar. 31, 1931 190,964,000 April 3, 1925, shall be dispensed with, and the Year to Mar. 31, 1932 186, 638, 700 amount in that fund shall be placed at the Year to Mar. 31, 1933 140, 718, 850 free disposal of the German Government imme- Year to Mar. 31, 1934 138, 270, 600 Year to Mar. 31, 1935 126, 782, 500 diately on the coming into force of this agree- Year to Mar. 31, 1936 107, 948, 700 ment. Year to Mar. 31, 1937 • 95, 669, 700 Year to Mar. 31, 1938 83, 750, 100 Ill Year to Mar. 31, 1939 71, 411, 250 Period Apr. 1 to Aug. 31, 1939 21, 934, 600 The British Government shall at all times during the period of the new plan have the Total 1, 210, 125,000 right to a reparation (recovery) act levy pari ANNEX XI passu w^ith any deliveries in kind, including those furnished under a moratorium—that is Securities jor the German external loan, 1924 to say, that of the total amount transferred in any year in deliveries in kind (including the The Government of the German Reich, dequotas under the reparation recovery acts) the siring fully to maintain the first charge by way quota under the British reparation (recovery) of collateral security for the German external act will amount to 23.05 per cent. loan of 1924, created by article 5 of the general bond dated October 10, 1924, upon the gross IV revenues of the German Government from the customs and from the taxes on tobacco, beer, It is understood that this'agreement merely and sugar and from the net revenue of the amends the method of administering the repa- German Government from the spirits monopoly ration (recovery) act, that payments made and also on such other taxes, if any, as may under this agreement shall be regarded as hereafter be assigned by the German Governdeliveries in kind for the purposes of the ment for the purpose of assuring the German deliveries in kind system, and that its provi- budgetary contributions to the annuities, has sions are without prejudice to any rights en- proposed the following system for keeping joyed by the British Government with regard effective said first charge on said revenues from to that act under the new plan. So long, and after the termination of the Dawes plan however, as this agreement continues in force, and in substitution for the system of remitting the relations between Germany and Great and administering said revenues which has been Britain with regard to the reparation (recov- in effect under the said plan, and the trustees ery) act shall be governed exclusively thereby. of the German external loan of 1924 have consented to the application of the following sys- V tem, provided it be incorporated as an annex to the agreement of The Hague of January, The present agreement shall become opera- 1930, and be duly ratified by the Government tive simultaneously with the coming into force of the German Reich and provided the plan of of the new plan. A certified copy thereof the committee of experts of June 7, 1929, shall shall be transmitted by the parties to the be duly carried into effect: Bank for International Settlements, so that the bank may take note of its provisions for all System purposes under the new plan. ARTICLE I Done at Berlin the 2d day of January, 1930. RUMBOLD. ivThe tax collecting offices of the German CURTIUS. Reich will continue to remit the total proceeds Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

219 APRIL, 1930 FEDERAL RESERVE BULLETIN of the five revenues which collaterally secure marks to cover the current monthly loan service the German external loan, 1924—namely, the installment, and there shall be similarly regross revenues of the German Reich from the leased for the remainder of the month the customs and from the taxes on tobacco, beer, balance of said reichsmark sums, such conand sugar, and the net revenue from the spirits tinuing system of monthly retention and release monopoly—but they will remit the total pro- to be repeated month after month during the life ceeds of these five revenues directly to the of the loan, subject, of course, to revocation or account of the trustees of said loan at the modification by the trustees, as provided below Reichsbank. In the event that the German in Article IV; Government, in compliance with the terms of (b) On the 15th of each month, if and when paragraph 132 of the annexes of the experts' the foreign currency installment then due has plan of June 7, 1929, shall assign any additional been paid, the reichsmark sum previously revenues to assure a total yield of not less than blocked as cover therefor shall be released from 150 per cent of the highest budgetary contribu- the account of the trustees and placed at the tion provided for by that plan, then the pro- disposition of the German Government; ceeds of such additional revenues shall also be (c) If prior to the 15th of any month the remitted by the collecting offices directly to German Government choose to anticipate the said account of the trustees at the Reichsbank. foreign currency payment payable on the 15th, then as soon as such payment is made to the ARTICLE II trustees the reichsmarks blocked as cover therefor will be released from the account of the The account of the trustees at the Reichsbank trustees and placed at the disposition of the may be in the name of the trustees of the Ger- German Government. man external loan, 1924, or, at their election, in the name of the Bank for International ARTICLE IV Settlements for the account of the trustees of the German external loan, 1924. This standing order of the trustees to the Reichsbank may be revoked or modified at the discretion of the trustees at any time, when- ARTICLE III ever necessary in their opinion for the purpose The funds received into the account of the of safeguarding fully the rights of the bondtrustees shall be subject to their disposition, at holders granted by the general bond. their discretion, for the purpose of assuring the regular service of the loan, but the trustees will, ARTICLE V at the time of opening their account at the The foregoing system of receiving, remitting, Reichsbank, issue a revocable standing order and releasing the revenues shall come into effect to the Reichsbank to the following general as soon as possible after the legal termination of effect: the Dawes plan, and, if practicable, coinci- (a) As soon as, on or after the 1st of each dentally therewith. The German Government month, a sufficient number of reichsmarks has agrees to consult with the trustees for the purbeen received in the account of the trustees to pose of adopting, in agreement with them, any cover the amount of foreign currency required measures necessary to effect the transition from for the monthly installment of the service of the past system of remitting the revenues to the the interest on and the redemption of the loan new system of remitting the revenues in order (including in such sum all charges, commisthat the service of the loan may be fully prosions, or other payments to be made by the tected during any period of transition. German Government in connection with said loan) which is payable pursuant to the terms of ANNEXXII the general bond on the next succeeding 15th of each said month, the Reichsbank shall be Arbitration. Rules of procedure authorized thereupon to release to the German Government, or its order, all reichsmark sums, 1. The proceedings in any arbitration shall being the remainder of the monthly proceeds, be governed by the dispositions of Chapter III of the revenues thereafter entering into the of The Hague Convention of 1907 for the Pacific trustees' account until the 1st day of the next Settlement of International Disputes, except in month immediately succeeding, when there so far as the same are modified by the following shall again be similarly retained in the account provisions or by those of the agreement of The of the trustees a sufficient number of reichs- Hague of January, 1930: Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

220 FEDERAL RESERVE BULLETIN APRIL, 1930 In particular, article 85 of The Hague Con- to the party which has delivered it, and shall vention shall apply to these proceedings, and inform the tribunal of the date of receipt. each party shall pay its own expenses and an Certified copies of any documents on which equal share of those of the tribunal. reliance is placed shall be annexed to the plead- " 2. The tribunal shall sit at The Hague or ing in which they are referred to. such other place as may be fixed by the tribunal. 8. The periods above fixed may be extended The date of sitting shall be determined by either by the agreement of the parties or by a the chairman and at least 14 days7 previous decision of the chairman or of the tribunal. notice shall be given to the parties. 9. The written proceedings may be in English, 3. Each party shall appoint a representative. French or (where Germany is a party) in Ger- Any communication between the parties and man. It shall, however, be open to any the tribunal or between the parties themselves member of the tribunal to require that any shall be conducted through these representa- pleading or other document (including any tives. translation) delivered in one of those three The tribunal shall appoint a secretary to languages should be translated into another whom communications shall be addressed. and, if necessary, duly certified. 4. The procedure shall consist of two stages— 10. Not more than two advocates may appear on behalf of each party for each separate (1) Written cases or pleadings; and question submitted to arbitration. (2) Oral debates. 11. The advocates may address the tribunal in The oral discussion shall be public. their own language, subject to the right of any 5. The party which is in the position of plainmember of the tribunal or an opposing party to tiff shall deliver its case within six weeks from require a translation into English or French. the date of the special agreement or a date to 12. Shorthand minutes shall be taken on be fixed by the chairman or by the tribunal, and behalf of the tribunal of all oral arguments, the other party shall present its counter-case and transcripts shall be supplied with all within six weeks from the date on which it possible despatch to the members of the receives the case of the first party. tribunal and to the parties. The secretary of If any dispute shall arise as to which party is the tribunal shall be responsible for the execuin the position of plaintiff in any particular tion of this clause and for the preparation of case, the matter shall be decided summarily by the necessary minutes. the president of the tribunal or any member 13. For all the purposes of the arbitration up thereof appointed for this purpose by the presito the commencement of the oral proceedings, dent. the president or any two members of the 6. Cases shall contain— tribunal appointed by him shall be qualified to (1) A statement of the facts on which the claim is take in the name and on behalf of the tribunal based. any decisions which the tribunal is authorized (2) A statement of law. (3) A statement of conclusions. to take. (4) A list of the documents in support; these docu- 14. No party may, without the consent of ments shall be attached to the case. the other party, make use in the course of the Counter-cases shall contain— discussion of any document which has not been previously communicated to the other party. (1) The affirmation or contestation of the facts stated in the case. 15. Any member of the tribunal may put (2) A statement of additional facts, if any. to the parties during the discussion any ques- (3) A statement of law. tions which he thinks proper. The tribunal (4) Conclusions based on the facts stated; these may at any time before reaching a decision conclusions may include counterclaims, in so far as the latter come within the jurisdiction of the tribunal. employ any means of information which it (5) A list of the documents in support; these docu- considers necessary, and may ask for any ments shall be attached to the countercase. supplementary notes, memoirs or documents 7. The parties shall also respectively have which it thinks desirable. Should, however, the right to deliver a reply and rejoinder within the tribunal resort to other means of informathree weeks after the receipt of the last preced- tion than those supplied by the parties it will ing pleading. allow them to submit arguments on the addi- All cases shall be printed, six copies at least tional information. to be delivered to the opposing party and 16. No oral explanation will be received from twelve at least to the tribunal. Each party either party unless the other party is present shall acknowledge the receipt of any document or has been duly summoned. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

APRIL, 1930 FEDERAL RESERVE BULLETIN 221 17. Any request or communication addressed thereto shall be finally discharged by the to the tribunal by one of the' parties will be payments, deliveries and cessions made by communicated at the same time to the other. Austria up to the date of the coming into force 18. The secretary of the tribunal shall notify of this agreement, subject to the provisions of all proceedings instituted before the tribunal Article IV below. In consequence, the first to all parties to The Hague agreement of charge on all the assets and revenues of Austria January, 1930. created by article 197 of the treaty of St. 19. When any signatory power or the Bank Germain in favor of the cost of reparation for International Settlements consider that it and all other costs arising under the said has an interest of a legal nature which may be treaty or any other treaties or agreements affected by the decision in a case, it may sub- supplementary thereto or under the armistice mit a request to the tribunal to be permitted ceases to be operative. to intervene as a third party. In the absence of an agreement between the ARTICLE II parties, the chairman or any members of the All relations between the Reparation Comtribunal appointed by him for that purpose mission and Austria shall be terminated as shall fix the time within which the party infrom the date of the coming into force of the tervening is to deliver his case. present agreement. The accounts of the Repa- Subject to any contrary decision of the triration Commission with Austria will be conbunal, the foregoing rules and the provisions sidered as finally closed at the date when this as to arbitration of the agreement of The agreement comes into force. Hague of January, 1930, and in particular those relating to the appointment of an additional member in certain cases, shall apply to a ARTICLE III party intervening in the same manner as to Subject to the provisions of Article IV of this the original parties. agreement, all outstanding claims and counterclaims arising under the treaty of St. Germain AGREEMENT or under the armistice or in consequence of war measures between Austria on the one part and AUSTRIA the other powers signatory to this agreement on the other part or between Austrian nationals The duly authorized representatives of the and the said powers or between the nationals Government of the Republic of Austria, the of the said powers and Austria are hereby re- Government of His Majesty the King of the ciprocally waived. Belgians, the Government of the United Kingdom of Great Britain and Northern Ireland, the Government of Canada, the Govern- ARTICLE IV ment of the Commonwealth of Australia, the Any arrangements already signed by Austria Government of New Zealand, the Government on the one part and any other power signatory of the Union of South Africa, the Government to this agreement on the other part in pursuance of India, the Government of the French Re- of the treaty of St. Germain or any treaties or public, the Government of the Greek Republic, agreements supplementary thereto, and any the Government of His Majesty the King of credits resulting from the arrangements first Italy, the Government of His Majesty the mentioned in this article remain unaffected by Emperor of Japan, the Government of the this agreement. Republic of Poland, the Government of the ARTICLE V Republic of Portugal, the Government of His Majesty the King of Rumania, the Govern- The creditor powers signatory to this agreement of the Czechoslovak Republic and the ment undertake as from the date of coming Government of His Majesty the King of into force of this agreement to cease to apply Yugoslavia have reached the following agree- their right to retain and liquidate the property, ment: rights, and interests belonging at the date of the coming into force of the treaty of St. Germain ARTICLE I to nationals of the former Austrian Empire or The financial obligations of Austria arising companies controlled by them, in so far as such under any provision of the armistice of No- property, rights and interests are not already vember 3, 1918, and the treaty of St. Germain liquid or liquidated or have not yet been defiand any treaties or agreements supplementary nitely disposed of: Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

222 FEDERAL RESERVE BULLETIN APRIL, 1930 ARTICLE VI mit the instrument of ratification as soon as possible. The claims of Austria against Germany re- The first proces-verbal of the deposit of ferred to in article 213 of the treaty of St. Gerratifications will be drawn up as soon as the main and any claims of Germany against Ausagreement has been ratified by Austria on the tria referred to in article 261 of the treaty of one hand and, on, the other hand, by four of Versailles have been canceled by The Hague the governments of the following Powers, agreement of January, 1930, concluded with that is to say, Belgium, Great Britain, France, Germany. Austria takes note of and accepts Italy and Japan and three of the governments this cancellation. of the following Powers, that is to say, Greece, Equally any claim of Austria against Hun- Poland, Portugal, Rumania, Czechoslovakia gary or Bulgaria referred to in the said article and Yugoslavia. 213 of the treaty of St. Germain and any claim The present agreement will come into force of Hungary or Bulgaria against Austria, rebetween the contracting parties who have thus spectively, referred to in article 196 of the ratified, from and after the date of the first treaty of Trianon and article 145 of the treaty proces-verbal. of Neuilly are canceled; any securities and Save as above provided the agreement will documents relating to these claims shall be come into force for each signatory Governdestroyed. ment at the date of its notification of the ARTICLE VII deposit of its ratification. The French Government wdll transmit to all Nothing in this agreement shall affect the the signatory Governments a certified copy of arrangements made in connection with the the proces-verbaux of the deposit of ratificaguaranteed Austrian loan of 1923, in connection tions. with Austrian relief bonds and in connection Done at The Hague in a single copy the 20th with the obligations arising under article 203 January, 1930. of the treaty of St. Germain. Schober, Juch, Henri Jaspar, Paul The further execution of this article and its Hymans, E. Francqui, Philip Snowden, annex in so far as the duties of the Reparation Peter Larkin, Granville Ryrie, E. Toms, Commission are concerned will in due course Philip Snowden, Philip Snowden, Henri form the subject of an arrangement between the Cheron, Loucheur, N. Politis, J. G. parties interested. Politis, A. Mosconi, A. Pirelli, Suvich, Adatci, K. Hirota, J. Mrozowski, R. ARTICLE VIII Ulrich, Tomaz Femandes, G. G. Miron- Any dispute between the contracting parties esco, Al. Zeuceano, Dr. Eduard Benes, as to the interpretation or application of the Stefan Osusky, Dr. V. Marinkovitch, present agreement shall be submitted for final Const. Fotitch. decision to the tribunal referred to in The Hague agreement with Germany of January, AGREEMENT 1930, in accordance with the procedure estab- BULGARIA lished in that agreement. Provided always that on the occasion of any such dispute the THE duly authorized representatives of the place of the member of the tribunal appointed Government of His Majesty the King of the by Germany will be taken by a member ap- Belgians, the Government of the United pointed by Austria. Kingdom of Great Britain and Northern Ireland, the Government of Canada, the Government of the Commonwealth of Australia, the FINAL CLAUSE Government of New Zealand, the Government The present agreement, of which the French of the Union of South Africa, the Government and English texts are both authentic, shall be of India, the Government of the Kingdom of ratified. Bulgaria, the Government of the French The deposit of ratifications shall be made at Republic, the Government of the Greek Re- Paris as soon as possible. public, the Government of His Majesty the The powers of which the seat of government King of Italy, the Government of His Majesty is outside Europe will be entitled to inform the the Emperor of Japan, the Government of the French Government through their diplomatic Republic of Poland, the Government of the representative at Paris that their ratification Republic of Portugal, the Government of His has been given; in that case they must trans- Majesty the King of Rumania, the Govern- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

APRIL, 1930 FEDERAL RESERVE BULLETIN 223 ment of the Czechoslovak Republic and the special securities falls below 150 per cent of the Government of His Majesty the King of sums necessary for the service of the annuity, Yugoslavia have reached the following agree- the Bulgarian Government undertakes at the ment : request of the Bank for International Settle- (1) The creditor powers waive their right to ments, to assign to reparations additional se- Tranche B of the Bulgarian reparation debt curities which shall be considered acceptable by as defined by the protocol of March 21, 1923. the said bank and shall at least restore the Furthermore, Great Britain, France, and Italy said percentage, and to promulgate any laws waive their claim to payment of the outstand- necessary for this purpose. ing balance in respect of armies of occupation; (4) The National Bank of Bulgaria shall (2) The creditor powers accept in full and retain its present functions and obligations in complete satisfaction of the total amount of regard to the payment of reparations arising Tranche A of the Bulgarian reparation debt out of the regulations of July 7, 1923, regarding which remains unpaid at this date the annuities the application of the protocol of March 21, expressed in gold francs fixed in the following 1923, and shall comply with those regulations schedule of payments, the gold franc as defined in regard to the collection of the proceeds from by article 146 of the Treaty of Neuilly. the securities, the constitution in national currency of the annuity funds and their conversion Number of annuities in gold francs into foreign currencies. Apr. 1, 1930 5 millions. (5) The rights and powers conferred on the Apr. 1, 1930, to Mar. 31, Reparation Commission and on the Interallied 1940 10 annuities of 10,000,000. Commission in Bulgaria shall, in so far as is Apr. 1, 1940, to Mar. 31, 1950 10 annuities of 11,500,000. necessary, be transferred to the Bank for In- Apr. 1, 1950, to Mar. 31, ternational Settlements. 1966 16 annuities of 12,515,238. Consequently, the relations between the The first payment provided for April 1, 1930, Reparation Commission and the Interallied shall be made in full at that date. Subsequent- Commission in Bulgaria, of the one part, and annuities shall be payable in two equal half- the Bulgarian Government, of the other part, yearly installments on September 30 and shall terminate as soon as possible. The con- March 31 of each year, the first installment ditions and the date of this transfer shall be falling due on September 30, 1930, and the determined by a committee consisting of two last on March 31, 1966. representatives of the Bulgarian Government, (3) The annuities fixed in article 2 shall con- of four representatives of the Reparation Comstitute an unconditional obligation and the mission, or of the Interallied Commission in parties signatory to the present agreement Bulgaria (one of whom shall be the common waive their right to demand the application of delegate on the Reparation Commission or a article 122 of the treaty of Neuilly. Bulgaria representative appointed by him), and, if posmay, however, if the need arises request the sible, of two representatives of the Bank for application of the system of postponement of International Settlements. transfer instituted by the Reparation Commis- (6) Further, and in addition to the payments sion's decision of July 23, 1926, pursuant to fixed by article 2, the Bulgarian Government the financial scheme approved on June 10, shall remain responsible for all its obligations 1926, by the council of the League of Nations. to the nationals of the creditor powers whose These annuites shall enjoy the benefit of the rights as now existing are in no way affected same special securities as are assigned to the by the present agreement. annuities of the schedule of payments of The creditor Governments who have not March 21, 1923, by virtue of the protocols of yet adhered to the contract of April 14, 1923, March 21, 1923, and September 24, 1928. relating to a moratorium granted to the Bul- They shall be represented by a debt certificate, garian Government by the French and Belgian with coupons attached, which shall be handed creditors, to the rider of October 10, 1923, to over by the Bulgarian Government to the the said contract and to the agreement of April Bank for International Settlements acting as 14, 1923, relating to the issue of Bulgarian 6% trustee for the creditor powers. per cent State bonds, 1923, may adhere thereto The first charge established by article 132 of up to June 30, 1930, and the Bulgarian Governthe treaty of Neuilly upon all the assets and ment undertakes to accept such adhesions and revenues of Bulgaria for the cost of reparation to give full effect thereto. ¥ i\ and other costs referred to in that article shall (7) As from the date of the coming into force cease to have effect. But if the product of the of the present agreement, the creditor Govern- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

224 FEDERAL RESERVE BULLETIN APRII, 1930 ments waive their right to retain and liquidate Bank of Bulgaria on May 30, 1923. The the property, rights, and interests of Bulgarian creditor Governments which have not yet nationals, in so far as such property is not yet adhered to the said contract may adhere thereto liquid or liquidated or has not been disposed of up to June 30, 1930. finally. Nevertheless, Bulgarian property sub- (13) Should the Bank for International ject to liquidation in Rumania has formed the Settlements not accept the whole of the funcsubject of an agreement on the basis of a pay- tions attributed to it by the present agreement, ment of 110,000,000 lei to be made to Rumania the appointment of some other trustee to be in two equal installments, the first of which shall substituted so far as necessary for the bank, will be payable three months after ratification, and form part of the task of the committee constithe second within a year. This agreement tuted under article 5. forms an integral part of the present agreement. (14) Any dispute between the contracting (8) Bulgaria undertakes to conclude within parties as to the interpretation or application six months of the coming into force of the of the present agreement shall be submitted for present agreement the arrangements necessary final decision to the tribunal referred to in The to ensure the regular service of the quota of Hague agreement with Germany of January, the Ottoman debt for which she is liable 1930, in accordance with the procedure estaband to meet without delay the obligations lished in that agreement. Provided always devolving upon her as a result of the said that on the occasion of any such dispute the arrangements. place of the member of the tribunal appointed (9) With the exception of claims which have by the German Government will be taken by a been the subject of a previous special agreement member appointed by the Bulgarian Governor of a convention concluded in pursuance of the ment. treaty of Neuilly and also of claims arising under FINAL CLAUSE article 141 of that treaty, all claims of the Bulgarian Government against the creditor powers The present agreement, of which the French or their nationals and also all claims of Bulga- and English texts are both authentic, shall be rian nationals against the creditor powers based ratified. on the provisions of the treaty of Neuilly are The deposit of ratifications shall be made at completely canceled by the present agreement. Paris as soon as possible. (10) No private claims of nationals of the The powers of which the seat of government creditor powers, which under the treaty of is outside Europe will be entitled to inform the Neuilly should be settled either by the interven- Government of the French Republic through tion of the clearing office or by the mixed their diplomatic representative at Paris that arbitral tribunals and which have not been their ratification has been given; in that case regularly laid before those bodies before the they must transmit the instrument of ratificacoming'into force of the present agreement, tion as soon as possible. shall be received by them. A first procSs-verbal of the deposit of rati- (11) The claims of Bulgaria against Germany fications will be drawn up as soon as the agreereferred to in article 145 of the treaty of ment has been ratified by Bulgaria, on the one Neuilly and any claims of Germany against hand, and, on the other hand, four of the follow- Bulgaria referred to in article 261 of the treaty ing Governments; that is to say, Belgium, Great of Versailles have been canceled by the agree- Britain, France, Italy, and Japan, and three of ment with Germany of even date concluded at the following Governments; that is to say, The Hague conference. Bulgaria takes note Greece, Poland, Portugal, Rumania, Czechoof and accepts this cancellation. slovakia, and Yugoslavia. Equally any claim of Bulgaria against Austria The present agreement will come into force, or Hungary referred to in the said article 145 of between the contracting parties who have thus the treaty of Neuilly and any claim of Austria ratified, from and after the date of the first or Hungary against Bulgaria respectively re- proces-verbal. ferred to in article 213 of the treaty of St. Save as above provided the agreement will Germain and article 196 of the treaty of Trianon come into force for each signatory Government are canceled; any securities or documents re- at the date of notification or of the deposit of its lating to these claims shall be destroyed. ratification. (12) Nothing in the present agreement shall The French Government will transmit to all modify the rights which the Soci6t6 des Porteurs the signatory Governments a certified copy of de Cr£ances Civiles en Bulgarie derives from the proces-verbaux of the deposit of ratificathe contract entered into with the National tions. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

225 APRIL, 1930 FEDERAL RESERVE BULLETIN Done at The Hague in a single copy the 20th at The Hague with a view to arriving at a final January, 1930. and complete settlement of the question of the Henri Jaspar, Paul Hymans, E. Francqui, reparation due by Hungary and that of various Philip Snowden, Peter Larkin, Granville special claims and to insure the settlement of Ryrie, E. Toms, Philip Snowden, Philip disputes of a financial nature which have arisen Snowden, A. D. Bouroff, VI. Molloff, between Hungary or Hungarian nationals, of the Henri Cheron, Loucheur, N. Politis, one part, and certain powers, of the other part. J. G. Politis, A. Mosconi, A. Pirelli, The appended and duly initialed texts set Suvich, Adatci, K. Hirota, J. Mrozow- forth and define the bases of the agreements ski, R. Ulrich, Tomez Fernandes, G. G. which now and henceforth constitute an Mironesco, N. Titulesco, J. Lugosiano, undertaking on the part of the signatory Al. Zeuceano, Dr. Eduard Bene&, Stefan Governments. Osusky, Dr. V. Maripkovitch. Const It is on these bases that the final texts will Fotitch. have to be drafted. A committee which will comprise a representative of each of the sig- DECLARATION BY THE CREDITOR GOVERNMENTS natory powers is intrusted with the drafting ATTACHED TO THE AGREEMENT WITH BUL- of these texts. This committee shall sit in GARIA Paris as from February 5, 1930. If the committee is unanimous the texts The creditor Governments have taken note of drafted by it shall be definitive. the Bulgarian Government's request to benefit In the event of any difficulty in drawing up by a remission of a portion of its debt in the these texts, the parties state that they will event of the creditor Governments themselves accept the unanimous decision of France, Great obtaining remission of the interallied debts. Britain, and Italy. They state their readiness collectively, if necessary, to consider favorably the possibility of ANNEX I allowing Bulgaria to have the benefit of advantages proportional to those which the special GENERAL AGREEMENT BETWEEN THE CREDmemorandum of the experts of the principal ITOR POWERS AND HUNGARY creditor powers and Germany concerning outpayments, appended to the experts7 report of A certain number of claims on the basis June 7, 1929, grants to Germany, without, howof Article 250 of the Treaty of Trianon have ever, any power having its share in Bulgarian been submitted by Hungarian nationals against annuities reduced by more than 50 per cent as a the three Governments of Rumania, Czechoresult of this possible reconsideration. slovakia, and Yugoslavia arising out of the application of the agrarian reform legislation CONFERENCE OF THE HAGUE, 1930 in those countries. Legal proceedings are at present pending The Bulgarian Government hereby underbefore the mixed arbitral tribunals provided take to pay a sum of £8,000 toward the exfor in the treaty. penses of the liquidation of the Interallied Although the three Governments interested Commission, in addition to all monthly payare prepared to conclude the present agreements for which it is liable apart from this ment in a spirit of conciliation with a view to undertaking. terminating as far as possible the existing A. D. BOUROFF. disputes with the Hungarian Government, they YL. MOLLOFF. declare formally that this fact can not con- JANUARY 20, 1930. stitute in any way a recognition by them of the justice of the said claims. REVISED TEXT On the contrary, they intend to enter an AGREEMENT RELATING TO HUNGARIAN OB- express reservation as to their point of view LIGATIONS UNDER THE TREATY and the present agreement can not in any way be considered as justification for any fresh The Governments of Belgium, France, Great action or any claim. Britain, Canada, the Commonwealth of Austra- In response to the appeal of friendly powers lia, New Zealand, South Africa, India, Greece, not interested in these disputes, the three Hungary, Italy, Japan, Poland, Portugal, Governments have desired to display their Rumania, Czechoslovakia, and Yugoslavia met spirit of conciliation and their desire for peace. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

226 FEDEKAL RESERVE BULLETIN APRIL. 1930 For its part the Hungarian Government has been notified. A final distribution shall states that from the legal point of view it then be made amongst the beneficiaries, the maintains the position which it previously total of which shall not exceed the total of the adopted in regard to these questions and it agrarian fund. This distribution shall be wishes it to be recognized that it accepts the effected on the basis of regulations to be present agreement in the same desire for drawn up by the managing committee of the conciliation and peace. fund. ARTICLE VIII ARTICLE I The mixed arbitral tribunals shall not be The responsibility in connection with all competent to pronounce on differences of lawsuits now proceeding, and which may be principle between the parties of the nature of begun in regard to agrarian legislation, inthose set forth in the preamble to the present cluding the reform to be carried out in Yugoagreement. They shall pronounce solely on slavia which has not yet formed the subject the basis of the present agreement by granting, of a final law^, shall henceforth be borne by a where the occasion arises, compensation to the common fund hereinafter called the " agrarian claimants against the agrarian fund. fund" in so far as this fund is available. ARTICLE IX ARTICLE II The mixed arbitral tribunal shall inquire The agrarian fund shall have legal perwhether the claimant is a qualified Hungarian sonality and shall be financially autonomous, national and whether his property has been subject to the condition set forth in the special expropriated by virtue of agrarian legislation agreement concerning this fund. and, if so, they shall pronounce on the amount of the compensation to be allotted unless a ARTICLE III friendly agreement is arrived at with the The fund shall entirely take the place of agrarian fund. the present defendants in agrarian lawsuits ARTICLE X already brought before the mixed arbitral tribunals or which may arise from an act of For the purposes of the execution of the seizure or disposal prior to the present agree- present agreement, each of the mixed arbitral ment. tribunals shall be completed by the appoint- ARTICLE IV ment of two extra members, selected by the Permanent Court of International. Justice from Suits brought against Rumania, Czechothe nationals of countries which were neutral slovakia or Yugoslavia shall ipso facto be during the late war and who possess the qualities considered as having been brought against necessary to act as arbitrators. the agrarian fund. ARTICLE XI ARTICLE V Judgments shall be given in favor or against In the relations between Rumania, Czechothe agrarian fund and shall be executed by its slovakia, and Yugoslavia or their nationals, of means. the one part, and Hungary or her nationals, of the other part, the mixed arbitral tribunal ARTICLE VI shall henceforth in all cases be composed as As stated above the agrarian fund shall be indicated in the preceding article. solely and entirely responsible in so far as this fund is available for the payment of com- ARTICLE XII pensation allotted by the mixed arbitral tribunals in the lawsuits referred to above and Rumania, Czechoslovakia and Yugoslavia, Rumania, Czechoslovakia, ar"1 Yugoslavia of the one part, and Hungary, of the other shall be free of any responsibility present or part, agree to recognize the Permanent Court future. of International Justice as the court of appeal from all judgments on questions of competence ARTICLE VII or of substance henceforth given by the mixed No payment^shall be made by the agrarian arbitral tribunals in all suits other than those fund until the total amount of the judgments referred to in the present agreement and relat- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

227 APEIL, 1930 FEDERAL RESERVE BULLETIN ing to agrarian matters, without there being It is understood that if Czechoslovakia does any need for any special terms of reference. not liberate 200,000 jugars out of the properties which have been expropriated or which have ARTICLE XIII been declared inalienable, the above-mentioned reduction shall not be made in so far as Czecho- The mixed arbitral tribunals shall cease to slovakia is concerned. In brief, for this counfunction for a period of six months as from the try, the reduction will only be made in respect date of the present agreement. of the quantities of properties liberated of upward of 200,000 jugars. ANNEX II ARTICLE III CREATION AND WORKING OF AGRARIAN FUND There shall be paid into the fund all the By an agreement signed to-day with the sums, in the form of securities or otherwise, Hungarian Government, provision has been which according to the local law are payable made for a fund, called "The agrarian fund." subsequently and would be paid to the expro- The object of the present convention is to priated owners if the latter put forward claims. define the conditions of the constitution and If on the other hand an owner abandons all operation of this fund. claims in return for this payment he shall be assimilated for the purpose of calculating the ARTICLE I fund to an owner of a property which has been returned in so far as the property is one the The capital of this fund has been fixed at liberation of which is such that no reduction in 240,000,000 gold crowns. pursuance of article 2 is involved. The figure of 240,000,000 gold crowns has been fixed on the basis of the figures indicated in the Hungarian delegation's memorandum ARTICLE IV presented to The Hague conference (second The final amount of the capital of the fund commission—non-German reparations). At shall be fixed (taking into account the abovethat time, Hungary presented a total of claims mentioned reduction) in order to assure the amounting to 310,000,000 gold crowns, which service of the interest and sinking fund of the has been reduced to 240,000,000 gold crowns. bonds which it will create to an amount equal The basic figures taken in the said memo- to the final amount of the capital. It will randum as the average value of the cadastral dispose of annuities and of the proceeds of the jugar in each country, must therefore be securities received by it as described in Articles reduced in the proportion of 310 to 240. II and III above in respect of the expropriated For all the properties regarded as expropri- properties. ated in the Hungarian memorandum above The calculations have been made on the basis mentioned and restored to the owners as from of interest at the rate of 4 per cent from 1933 the present date in Czechoslovakia and from the to 1966, the sinking fund of the securities being beginning in Yugoslavia, the amount of the effected as from 1944 by equal annuities to fund must be reduced pro tanto by the appli- include interest and sinking fund for each cation to these jugars of the reduced basic year from 1944 to 1966. price resulting from the above-mentioned calculation. Nevertheless, corrections may be made ARTICLE V in the application of the rule by the commission for administering the fund so as to take into The annuities available to the fund are the account the quality of the properties. following: 1. As from 1944, 6,100,000 gold crowns paid ARTICLE II by Czechoslovakia, Yugoslavia, and Rumania by means of the sums received in respect of the Account must similarly be taken of the sums special claims. already paid according to the local laws to the 2. From 1931 to 1943 the annuities paid by expropriated owners who have accepted this Hungary in respect of reparations representing payment whether made in the form of money the shares of France, Great Britain, Italy, Poror of securities; these sums shall be considered tugal, Japan, and Belgium. as having been paid into the fund and the lia- 3. Annuities paid by Great Britain, Italy, bilities toward this fund shall be reduced and France, of which the maximum amounts are pro tanto. fixed below: Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

228 FEDERAL RESERVE BULLETIN APRIL, 1930 1931 and 1932: Nil. the question shall be submitted to an arbitrator 1933 to 1943: 3,600,000 gold crowns. selected b}r the managing committee unaniof which 40 per cent will be paid by France, 40 mously, or, failing that, by the president of the per cent by Italy, and 20 per cent by Great Permanent Court of International Justice. Britain. 1944 to 1966: 2,280,000 gold crowns. ARTICLE IX payable in the same proportions. An organization committee consisting of four These latter annuities shall be reduced, if members shall be appointed by the president of necessary in order to take account of the dimi- The Hague Conference, M. Jaspar, after connution of the final amount of the capital of the sultation with the Governments of France, fund. Great Britain, Italy, and Hungary. The sums resulting from the reduction above This organization committee shall have the mentioned will be paid to fund B (referred to in task of drawing up the detailed regulations for the agreement of to-day's date) by the above- the constitution and the operation of the fund named powers when the managing committee referred to in the present agreement. considers, in agreement with these powers, that it is possible, and then only if it is necessary. ANNEX III ARTICLE VI AGREEMENT BETWEEN FRANCE, GREAT BRIT- AIN, ITALY, RUMANIA, CZECHOSLOVAKIA, Managing committee.—The fund shall be AND YUGOSLAVIA CONCERNING THE CON- STITUTION OF A SPECIAL FUND CALLED administered under the control of a committee "FUND B" consisting of four members, of whom one shall be named by the Hungarian Government and By an agreement of even date with the Hunthree by the financial committee of the League garian Government a settlement has been of Nations or any other organization chosen by reached on questions raised concerning agrarian the three powers—France, Great Britain, and reform. Italy. Nevertheless there remain outstanding between certain Hungarian nationals and the ARTICLE VII Governments of Rumania, Czechoslovakia, and The committee referred to in article 6 shall Yugoslavia important difference concerning the appoint a financial committee intrusted with application of articles 63, 191, and 250 of the the task of inquiring into the detailed arrange- treaty of Trianon. France, Great Britain, and ments to be made in order to secure to the Italy in the interests of peace and friendship greatest extent and under the best conditions have agreed to intervene, with a view to settling possible the mobilization or discount of the these differences, in the following manner: bonds issued by the fund. In particular, the I. A fund shall be created the nominal capital committee shall endeavor to give these bonds of which shall be 100,000,000 gold crowns. such a form as will enable the holders to obtain This fund can be constituted on an autonomous advances. basis with legal personality. The members of this committee shall be II. The fund shall not be made up of capital chosen from the nationals of countries having payments but by means of the annuities as set an important financial market, including Hun- forth below and calculated on the following gary. basis: The committee shall use every endeavor to (1) As from January 1, 1931, at 3 per cent or secure that these detailed arrangements shall 3,000,000 gold crowns per annum. be included in the final text of the agreements (2) As from January 1, 1943, at 5 per cent, as they will be submitted for ratification to the the whole to be paid off in 1966, or 7,400,000 Hungarian Parliament. gold crowns. When, in the view of the managing commit- For the first 13 years from 1931 to 1943 the tee, cash resources available permit, the com- 3,000,000 gold crowns necessary shall be paid mittee may make lump sum payments in cash under the following conditions: in return for the cancellation of bonds. 20 per cent, or 600,000 gold crowns, by Great Britain. ARTICLE VIII 40 per cent, or 1,200,000 gold crowns, by France. 40 per cent, or 1,200,000 gold crowns, by* Italy. In the case of differences as to the interpreta- to the extent of the requirements of the fund as tion and application of the present agreement, set forth hereunder. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

229 APRIL, 1930 FEDERAL RESERVE BULLETIN These sums shall be paid in two equal install- tions drawn up by* the organization committee ments on June 30 and December 31 of each referred to in Article XIII. XI. The fund shall meet the whole of its year. IV. During each of the 23 years from 1944 to working expenses. 1966 the maximum payments to be made to the XII. In the event of any difference of opinion fund shall amount to 7,400,000 gold crowns per as to the interpretation or application of the annum. They shall be charged against the present agreement the question shall be sub- 13,500,000 gold crowns which Hungary has mitted to an arbitrator to be chosen by the undertaken to pay as from 1944 during 23 years unanimous decision of the managing commitin respect of the special claims. tee or, failing such decision, by the president V. The fund may issue bonds or proceed to of the Permanent Court of International any credit or discounting operations on the Justice. basis of the above payments. XIII. An organizing committee of six mem- VI. The totals of the final judgments pro- bers shall be appointed by the Governments of nounced against the Governments of Rumania, France, Great Britain, Italy, Rumania, Czecho- Czechslovakia, and Yugoslavia shall be debited slovakia, and Yugoslavia. to this fund. For this purpose the amount This organizing committee shall be intrusted actually paid by each State during each period with the drafting of detailed regulations, the of 6 months shall be notified to the fund. constitution, and the working of the present Payment to each of the 3 States interested fund. shall be made proportionately to the total sums with which each shall have been credited AGREEMENT BETWEEN THE HUNGARIAN GOVat periods and in accordance with procedure ERNMENT AND THE CREDITOR GOVERNagreed between them and with the managing MENTS committee of the fund. The fund shall in no 1. For the complete and final settlement of case be under an obligation to pay more than the charges incumbent on her b}7 virtue of the the total of its assets derived from the annual treaty of Trianon, of the armistice of November receipts specified above. It may meet its 3, 1918, and of all supplementary arrangements obligations with bonds at the rates of interest Hungary undertakes (without prejudice to the and with the conditions for redemption set payments specified in the decision of the forth above. Reparation Commission No. 2797, dated Feb- VII. Recourse shall only be had to the pay- ruary 21, 1924) to make on account of the ment provided for in the above article as need special claims which are based on the said shall arise. In consequence the payments for treaty, as from January 1, 1944, and during which the three powers (Great Britain, France, the years 1944 to 1966 inclusive, the payment and Italy) are responsible shall not be ex- of a constant annuity of 13,500,000 gold crowns. ceeded. 2. The present agreement affects in no way VIII. Any saving realized on the receipts of the obligations concerning pre-war public debts the fund shall be employed to redeem the sums which are chargeable to Hungary by virtue of paid to the fund by Great Britain, France and the treaty of Trianon nor her obligations under Italy, proportionately to the contributions of all other agreements or arrangements concluded each of these powers. up to the coming into force of the present IX. In addition to the resources referred to agreement. above the fund may be supplied (and in conse- 3. The payments due up to January 1, 1944, quence its capital increased) by the surplus shall be subject to the conditions laid down in available from the special fund called " Agrarian the texts actually in force, and particularly in fund" created by the agreement of even date the decision No. 2797 of the Reparation Comwith Hungary. mission. However, they shall be paid to the X. The fund shall be administered by a man- Bank for International Settlements for the aging committee consisting of six members ap- account of the creditor States. pointed, respectively, by the Governments of 4. The payments due after 1944 constitute France, Great Britain, Italy, Rumania, Czecho- an unconditional obligation; that is to say, slovakia, and Yugoslavia. without any rights of suspension whatsoever. The managing committee shall elect its They shall be made in gold or in currency chairman. equivalent to gold in equal half-yearly periods The organization and the working of the on January 1 and July 1 of each year, the first fund shall form the subject of special regula- payment falling due on Januar}7 1, 1944. Like Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

230 FEDERAL RESERVE BULLETIN APML, 1930 the preceding payments they shall be made to as necessary to the Bank for International Setthe Bank for International Settlements for the tlements. The procedure and date for this account of the creditor States. transfer shall be laid down by a committee 5. Hungary undertakes to reserve from its formed of two representatives of the Hungastate revenues an annual sum at least equal to rian Government, by four representatives of the 150 per cent of the annuities laid down in Reparation Commission, to include the comarticle 1 and it is understood that if an mon delegate on the Reparation Commission, annuity is not paid on the date due Hungary or a representative nominated by him, and by a shall immediately on receipt of a simple claim representative of the Bank for International from the creditors (representing at least one- Settlements. half of the annuity in question) constitute the Should the Bank for International Settlesaid annual sum as security. ments not accept in its entirety the mandate 6. Subject to the application of the provisions with which it is entrusted by the present agreeof the preceding article the right of first charge ment, it shall be the duty of the committee established b}r article 180 of the treaty of formed as mentioned above to formulate the Trianon on all property and assets of Hungary amendments necessary to obtain its complete for the settlement of reparation and other adoption and failing that to choose a trustee as charges contained in the said article shall cease far as this may concern the bank. to have effect as from the date of the entry 11. It is understood that, subject to the into force of the present agreement. approval of the Council of the League of 7. The Hungarian Government shall trans- Nations, the committee of control for Hungary mit to the Bank for International Settlements shall cease to exercise its functions immediately in its capacity of trustee for the creditor powers on the entry into force of the present agreement. certificates representing the annuities specified 12. Any differences between the contracting under 1, which certificates in their text should parties concerning the interpretation and the carry out the provisions of articles 3 and 5. application of the present agreement shall be 8. The creditor powers signatory to the submitted for final decision to the tribunal present agreement undertake, as from the date provided for in the agreement of The Hague of of its application, to cease to exercise their January, 1930, with Germany in accordance right of retention and liquidation of property, with the procedure laid down in that agreement. rights, and interests which, at the date of entry Nevertheless, when such differences arise, the into force of the treaty of Trianon, belong to member nominated by Germany shall be renationals of the former Kingdom of Hungary placed by a member nominated by Hungary. or to organizations controlled by them, in so 13. Subject to the above payments being far as the said property, rights, and interests duly made, the governments of the creditor are not already liquid or liquidated or in so far powers, on the one hand, and the Hungarian as they have not already been finally disposed of. Government, on the other hand, reciprocally 9. The creditor powers signatory to the pres- renounce, each for its own part, all claims ent agreement undertake to abstain from col- arising out of the treaty of Trianon or the lecting those claims of Hungary on its former armistice or all supplementary arrangements. allies which may have been transferred to the The present agreement, the French and Engsaid powers by article 196 of the treaty of lish texts of which are authentic, shall be Trianon and Hungary renounces in so far as it ratified. is concerned any net balance which may be The deposit of ratifications shall be made at due to her by reason of these claims. The said Paris as soon as possible. powers further undertake to refrain from recov- The powers, of which the seat of government ering the claims which the former allies of is outside Europe, will be entitled to inform Hungary possessed on her and which were the French Government through their diplotransferred to the said powers by articles 261 of matic representative in Paris that their ratifithe treaty of Versailles, 13 of the treaty of St. cation has been given; in that case they must Germain, and 145 of the treaty of Neuilly; in transmit the instrument of ratification as soon consequence the said claims lapse entirely. as possible. 10. The relations between the Reparation The first proc&s-verbal of the deposit of rati- Commission and Hungary shall be terminated fications will be drawn up as soon as the agreeas soon as possible. ment has been ratified by Hungary on the one The rights and powers conferred on the Rep- hand, and, on the other hand by four of the ; aration Commission shall be transferred as far Governments of the following powers—that is Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

231 APRIL, 1930 FEDERAL RESERVE BULLETIN to say, Belgium, Great Britain, France, Italy, tional Settlements, for the account of the and Japan—and two of the Governments of the creditor Governments, in pounds sterling, at the following powers—that is to say, Greece, Po- average rate of exchange for the three days land, Portugal, Rumania, Czechoslovakia, and preceding the date of payment. Yugoslavia. The bank shall transfer the sums encashed to The present agreement shall come into force the account of each of the creditor Governbetween the contracting parties who have thus ments, in accordance with the rules for distriburatified from and after the date of the first tion fixed by the arrangement between the proces-verbal. creditor powers (Austria, Hungary, Bulgaria, Save as above provided the agreement will liberation debt) concluded at The Hague come into force for each signatory Government conference, 1930, and with any special arrangeat the date of its notification or the deposit of ment between two or more of these Governments its ratification. concerning their respective shares, as fixed by The French Government shall transmit to the said agreement which shall have been each of the signatory Governments a certified notified to the bank by the creditor Governcopy of the proces-verbal of the deposit of ments concerned. ratifications. AGREEMENT WITH CZECHOSLOVAKIA ARTICLE 3 The duly authorized representatives of the The present agreement constitutes as be- Government of His Majesty the King of the tween the Czechoslovak Government, of the BcH°s-:, the Government of the United King- one part, and the other signatory Governments, dom oi. Great Britain and Northern Ireland, of the other part, a final settlement of all the the Government of Canada, the Government obligations of Czechoslovakia which may result of the Commonwealth of Australia, the Gov- from the treaties of Versailles, St. Germain, ernment of New Zealand, the Government of Trianon, and Neuilly, from the agreement of the Union of South Africa, the Government of September 10, 1919, and from all arrangements India, the Government of the French Republic, supplementary to the said treaties and agreethe Government of the Greek Republic, the ments. Government of His Majesty the King of Italy, The present agreement, of which the French the Government of His Majesty the Emperor and English texts are both authentic, shall be of Japan, the Government of the Republic of ratified. Poland, the Government of the Republic of The deposit of ratifications shall be made at Portugal, the Government of His Majesty the Paris as soon as possible. King of Rumania, the Government of the The powers of which the seat of government Czechoslovak Republic, and the Government is outside Europe will be entitled to inform the of His Majesty the King of Yugoslavia have French Government through their diplomatic reached the folioWPig agreement: representative at Paris that their ratification has been given; in that case they must transmit ARTICLE 1 the instrument of ratification as soon as possible. In complete and final settlement of her debt The French Government will transmit to all arising out of the agreement of September 10, the signatory Governments a certified copy of 1919, to the other powers having a credit on the proces-verbaux of the deposit of ratifireparation account in virtue of the treaties of cations. Versailles, St. Germain, Trianon, and Neuilly, Done at The Hague in a single copy the 20th Czechoslovakia shall pay 37 annuities of January, 1930. 10,000,000 gold marks, the due dates of which Henri Jaspar, Paul Hymans, E. Francqui, are fixed for the first complete annuity at Philip Snowden, Peter Larkin, Gran- March 15, 1930, and, for the balance, payable ville Ryrie, E. Toms, Philip Snowden, in half-yearly installments, at July 1 and Philip Snowden, Henri Cheron, Lou- January 1 of each year, the final installment chcur, N. Politis, J. G. Politis, A. being payable on Januaiy 1, 1966. Mosconi, A. Pirelli, Suvich, Adatci, K. Ilirota, J. Mrozowski, R. Ulrich, Tomaz ARTICLE 2 Fernandes, G. G. Mironesco, Al. Zeu- The installments shall be paid by the Czecho- ceano, Dr. Eduard Benes, Stefan Osusky, slovak Government to the Bank for Interna- Dr. V. Marinkovitch, Const. Fotitch." 103025—30 7 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

232 FEDERAL RESERVE BULLETIN APltlL 1930 CONVENTION RESPECTING THE BANK FOR ment will notify the other signatory Govern- INTERNATIONAL SETTLEMENTS ments and these provisions shall become valid The duly authorized representatives of the during the bank's existence. Governments of Germany, of Belgium, of France, of the United Kingdom of Great Brit- Constituent charter of the Bank for International ain and Northern Ireland, of Italy, and of Settlements Japan of the one part Whereas the powers signatory to The Hague And the duly authorized representatives of agreement of January, 1930, have adopted a the Government of the Swiss Confederation of plan w^hich contemplates the founding by the the other part central banks of Belgium, France, Germany, Assembled at The Hague conference in the Great Britain, Italy, and Japan and by a month of January, 1930, have agreed on the financial institution of the United States of following: America of an international bank to be called ARTICLE 1 the Bank for International Settlements; And w^hereas the said central banks and a Switzerland undertakes to grant to the Bank banking group including Messrs. J. P. Morgan for International Settlements, without delay, & Co. of New York, the First National Bank the following constituent charter having force of New York, N. Y., and the First National of law; not to abrogate this charter, not to Bank of Chicago, Chicago, have undertaken to amend or add to it, and not to sanction amendfound the said bank and have guaranteed or ments to the statutes of the bank referred to arranged for the guaranty of the subscription in paragraph 4 of the charter otherwise than of its authorized capital amounting to 500,000-, in agreement with the other signatory Govern- 000 Swiss francs equal to 145,161,290.32 grams, ments. fine gold, divided into 200,000 shares: ARTICLE 2 And whereas the Swiss Federal Government Any dispute between the Swiss Government has entered into a treaty with the Governand any one of the other signatory Govern- ments of Germany, Belgium, France, Great ments relating to the interpretation or appli- Britain, Italy, and Japan whereby the said cation of the present convention shall be sub- Federal Government has agreed to grant the mitted to the arbitral tribunal provided for by present constituent charter of the Bank for The Hague agreement of January, 1930. The International Settlements and not to repeal, Swiss Government may appoint a member who amend, or supplement the said charter and not shall sit on the occasion of such disputes, the to sanction amendments to the statutes of the president having a casting vote. In having bank referred to in paragraph 4 of the present recourse to this tribunal the parties may arways charter except in agreement with the said agree between themselves to submit their dis- powers; pute to the president or to one of the members 1. The Bank for International Settlements of the tribunal chosen to act as sole arbiter. (hereinafter called the bank) is hereby incorporated. 2. Its constitution, operations, and activi- ARTICLE 3 ties are defined and governed by the annexed The present convention is entered into for a statutes which are hereby sanctioned. period of 15 years. It is entered into on the 3. Amendment of articles of the said statutes part of Switzerland under reserve of ratifica- other than those enumerated in paragraph 4 tion and shall be put into force as soon as it hereof may be made and shall be put into force shall have been ratified by the Government of as provided in article 59 of the said statutes and the Swiss Confederation. not otherwise. The instrument of ratification shall be de- 4. Articles 2, 3, 4, 9, 15, 20, 25, 28, 46, 53, 56, posited with the Ministry of Foreign Affairs at 59, and 60 of the said statutes shall not be Paris. Upon the entry into force of the con- amended except subject to the following convention, the Swiss Government will initiate the ditions : The amendment must be adopted by a necessary constitutional procedure in order that two-thirds majority of the board, approved by the assent of the Swiss people may be obtained a majority of the general meeting and sancfor the maintenance in force during the whole tioned by a law supplementing the present of the bank's existence of the provisions of the charter.. present convention. As soon as these measures 5. The said statutes and any amendments have become fullv effective the Sw^iss Govern- which may be made thereto in accordance with Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

233 APRIL, 1930 FEDERAL RESERVE BULLETIN" paragraphs 3 or 4 hereof, respectively, shall be from any measure such as expropriation, requivalid and operative notwithstanding any in- sition, seizure, confiscation, prohibition or reconsistency therewith in the provisions of any striction of gold or currency export or import, present or future Swiss law. and any other similar measures. 6. The bank shall be exempt and immune 11. Any dispute between the Swiss Governfrom all taxation included in the following ment and the bank as to the interpretation or categories: application of the present charter shall be re- (a) Stamp, registration, and other duties on ferred to the arbitral tribunal provided for by all deeds or other documents relating to the The Hague agreement of January, 1930. incorporation or liquidation of the bank. The Swiss Government shall appoint a mem- (b) Stamp and registration duties on any ber to sit on the occasion of such dispute, the first issue of its shares by the bank to a cen- president having a casting vote. tral bank, financial institution, banking group, In having recourse to the said tribunal the or underwriter at or before the time of incor- parties may nevertheless agree to submit their poration or in pursuance of articles 7 or 9 of the dispute to the president or to a member of the statutes. tribunal chosen to act as sole arbiter. (c) All taxes on the bank's capital, re serve s, Done at The Hague, January 20, 1930. or profits, whether distributed or not, and Curtius, Henri Jaspar, Paul Hymans, E. whether assessed on the profits of the bank Francqui, Henri, Cheron, Loucheur, before distribution or imposed at the time of Philip Snowden, A. Mosconi, A. Pirelli, distribution under the form of a coupon tax Suvich, M. Adatci, K. Hirota, G. Bachpayable or deductible by the bank. This pro- mann, W. Burckhardt, Dr. R. Miescher. vision is without prejudice to the State's right J. E. R. to tax the residents of Switzerland other than ANNEX the bank as it thinks fit. (d) All taxes upon any agreements which the STATUTES OF THE BANK FOR INTERNATIONAL bank may make in connection with the issue of SETTLEMENTS loans for mobilizing the German annuities and upon the bonds of such loans issued on a for- CHAPTER I.— Name, seat, and objects eign market. (e) All taxes on the remunerations and sal- ARTICLE 1 aries paid by the bank to members of its ad- There is constituted under the name of the ministration or its employees of non-Swiss Bank for International Settlements (hereinnationality. after referred to as the bank) a company limited 7. All funds deposited with the bank by any by shares. Government in pursuance of the plan adopted ARTICLE 2 by The Hague agreement of January, 1930, shall be exempt and immune from taxation The registered office of the bank shall be whether by way of deduction by the bank on situated at Basel, Switzerland. behalf of the authority imposing the same or otherwise. ARTICLE 3 8. The foregoing exemptions and immunities shall apply to present and future taxation by The objects of the bank are: To promote the whatsoever name it may be described, and cooperation of central banks and to provide whether imposed by the confederation, or by additional facilities for international financial the cantonal, communal, or other public au- operations; and to act as trustee or agent in thorities. regard to international financial settlements 9. Moreover, without prejudice to the ex- intrusted to it under agreements with the paremptions specified above, there may not be ties concerned. levied on the bank, its operation or its per- ARTICLE 4 sonnel any taxation other than that of a general character and to which other banking As long as the new plan as defined in The establishments established at Basel or in Hague agreement of January, 1930 (hereinafter Switzerland, their operations and their per- referred to as the plan), is in force, the bank— sonnel, are not subjected de facto and de jure. (1) Shall carry out the functions assigned to 10. The bank, its property and assets and it in the plan; all deposits and other funds entrusted to it shall (2) Shall conduct its affairs with a view to be immune in time of peace and in time of war facilitating the execution of the plan; and Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

234 FEDERAL RESERVE BULLETIN APRIL, 1930 (3) Shall observe the provisions of the plan or in countries whose currencies, in the opinion in the administration and operations of the of the board, satisfy the practical requirements bank; all within the limits of the powers granted of the gold or gold exchange standard and that by these statutes. the amount issued in any one of these countries During the said period the bank, as trustee shall not exceed 8,000 shares. or agent for the Governments concerned, shall (3) The seven banking institutions menreceive, administer, and distribute the annui- tioned in article 6 shall, in accordance with ties paid by Germany under the plan; shall their several guaranties, subscribe or arrange supervise and assist in the commercialization for the subscription in equal proportions of any and mobilization of certain portions of the part of the authorized capital which at the end aforesaid annuities; and shall perform such of two years remains unsubscribed. services in connection with the payment of German reparations and the international set- ARTICLE 8 tlements connected therewith as may be agreed upon by the bank with the Governments con- (1) Twenty-five per cent only of the value of cerned. each share shall be paid up at the time of sub- CHAPTER II.—Capital scription. The balance may be called up at a later date or dates at the discretion of the ARTICLE 5 board. Three months' notice shall be given of any such calls. The authorized capital of the bank shall be (2) If a shareholder fails to pay any call on 500,000,000 Swiss gold francs, equivalent to a share on the day appointed for payment 145,161,290.32 grams fine gold. thereof the board may, after giving reasonable It shall be divided into 200,000 shares of notice to such shareholder, forfeit the share in equal gold nominal value. respect of which the call remains unpaid. A The nominal value of each share shall also be forfeited share may be sold on such terms and expressed on the face of each share in terms in such manner as the board may think fit, and both of Swiss francs and of the currency of the the board may execute a transfer in favor of country in which it is issued, converted at the the person or corporation to whom the share is gold mint parity. sold. The proceeds of sale may be received by ARTICLE 6 the bank, which will pay to the defaulting shareholder any part of the net proceeds over and The subscription of the total authorized above the amount of the call due and unpaid. capital having been guaranteed in equal parts by the Banque Nationale de Belgique, the Bank of England, the Banque de France, the ARTICLE 9 Reichsbank, the Banca d'ltalia, Messrs. X (1) The capital of the bank may be increased acting in place of the Bank of Japan, and or reduced on the proposal of the board acting Messrs. Y, New York, the bank may begin by a two-thirds majority and adopted by a twobusiness as soon as a minimum of 112,000 shares thirds majority of the general meeting. has been subscribed. (2) In the event of an increase in the authorized capital of the bank and of a further issue of ARTICLE 7 shares, the distribution among countries shall (1) During the two years following incorpo- be decided by a two-thirds majority of the ration the board of directors of the bank (here- board. The central banks of Belgium, Enginafter referred to as the board) shall arrange land, France, Germany, Italy, Japan, and the for the subscription of any unissued portion of United States of America, or some other finanthe authorized capital. cial institution of the last-named country (2) This unissued portion may be offered to acceptable to the foregoing central banks, shall the central bank or other banks of countries be entitled to subscribe or arrange for the which have not participated in the original sub- subscription in equal proportions of at least 55 scription. The selection of countries in which per cent of such additional shares. such shares shall be offered for subscription and (3) No part of the amount not taken by the the amount to be subscribed in each shall be banks of these seven countries shall be subdetermined by the board by a two-thirds ma- scribed in any other country unless it is interjority, provided that offers of shares shall only ested in reparations or at the time of issue its be made in countries interested in reparations currency, in the opinion of the board, satisfies Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

APRIL, 1930 FEDERAL RESERVE BULLETIN 235 the practical requirements of the gold or gold ARTICLE 16 exchange standard. Any subscribing institution or banking group may issue or cause to be issued to the public the ARTICLE 10 shares for which it has subscribed. In extending invitations to subscribe for capital in accordance with article 7, paragraph ARTICLE 17 2, or with article 9, consideration shall be given by the board to the desirability of associating Any subscribing institution or banking group with the bank the largest possible number of may issue to the public certificates against central banks. shares of the bank owned by it. The form, details, and terms of issue of such certificates ARTICLE 11 shall be determined by the bank issuing them, No shares shall be issued below par. in agreement with the board. ARTICLE 12 ARTICLE 18 The liability of shareholders is limited to the The receipt or ownership of shares of the nominal value of their shares. bank or of certificates issued in accordance with article 17 implies acceptance of the statutes ARTICLE 13 of the bank and a statement to that effect shall be embodied in the text of such shares and The shares shall be registered and transfer- certificates. able in the books of the bank. ARTICLE 19 The bank shall be entitled, without assigning any reason, to decline to accept any person or The registration of the name of a holder of corporation as the transferee of a share. It shares in the books of the bank establishes the shall not transfer shares without the prior title to ownership of the shares so registered. consent of the central bank, or the institution acting in lieu of a central bank, by or through CHAPTER III.—Powers of the bank whom the shares in question were issued. ARTICLE 20 ARTICLE 14 The operations of the bank shall be in conformity with the monetary policy of the central The shares shall carry equal lights to particibanks of the countries concerned. pate in the profits of the bank and in any distri- Before any financial operation is carried out bution of assets under articles 53, 54, and 55 of by or on behalf of the bank on a given market the statutes. or in a given currency the board shall afford ARTICLE 15 to the central bank or central banks directly The ownership of shares of the bank carries concerned an opportunity to dissent. In the no right of voting or representation at the event of disapproval being expressed within general meeting. The right of representation such reasonable time as the board shall specify, and of voting, in proportion to the number of the proposed operation shall not take place. shares subscribed in each country, may be A central bank may make its concurrence subexercised by the central bank of that country ject to conditions and may limit its assent to a or by its nominee. Should the central bank of specific operation, or enter into a general arany country not desire to exercise these rights rangement permitting the bank to carry on its they may be exercised by a financial institution operations within such limits as to time, charof widely recognized standing and of the same acter, and amount as may be specified. This nationality, appointed by the board, and not article shall not be read as requiring the assent objected to by the central bank of the country of any central bank to the withdrawal from its in question. In cases where there is no central market of funds to the introduction of which no bank, these rights may be exercised, if the board objection had been raised by it, in the absence thinks fit, by an appropriate financial institu- of stipulations to the contrary by the central tion of the country in question appointed by the bank concerned at the time the original operaboard. tion was carried out. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

236 FEDERAL RESERVE BULLETIN APRIL, 1930 Any governor of a central bank or his alter- (j) Accept—Continued. nate or any other director specially authorized (ii) Deposits in connection with trustee by the central bank of the country of which he is agreements that may be made between a national to act on its behalf in this matter the bank and Governments in connecshall, if he is present at the meeting of the tion with international settlements. board and does not vote against any such pro- (iii) Such other deposits as in the opinposed operation, be deemed to have given the ion of the board come within the scope valid assent of the central bank in question. of the bank's functions. If the representative of the central bank in The bank may also: question is absent or if a central bank is not (k) Act as agent or correspondent of any directly represented on the board, steps shall central bank. be taken to afford the central bank or banks (I) Arrange with any central bank for the concerned an opportunity to express dissent. latter to act as its agent or correspondent. If a central bank is unable or unwilling to act in this capacity, the bank may make other ar- ARTICLE 21 rangements, provided that the central bank concerned does not object. If in such circum- The operations of the bank for its own acstances it should be deemed advisable that the count shall only be carried out in currencies bank should establish its own agency, the which in the opinion of the board satisfy the sanction of a twro-thirds majority of the board practical requirements of the gold or gold will be required. exchange standard. (m) Enter into agreements to act as trustee or agent in connection with international settle- ARTICLE 22 ments, provided that such agreements shall not encroach on the obligations of the bank toward The board shall determine the nature of the third parties, and carry out the various operaoperations to be undertaken by the bank. tions laid down therein. The bank may in particular: (a) Buy and sell gold coin or bullion for its ARTICLE 23 own account or for account of central banks. (b) Hold gold for its own account under ear- Any of the operations which the bank is aumark in central banks. thorized to carry out with central banks under (c) Accept the custody of gold for account the preceding article may be carried out with of central banks. banks, bankers, corporations, or individuals of (d) Make advances to or borrow from central any country, provided that the central bank of banks against gold, bills of exchange, and other that country does not object. short-term obligations of prime liquidity or other approved securities. ARTICLE 24 (e) Discount, rediscount, purchase, or sell The bank may enter into special agreements with or without its indorsement bills of ex- with central banks to facilitate the settlement change, checks, and other short-term obliga- of international transactions between them. tions of prime liquidity, including Treasury For this purpose it may arrange with central bills and other such Government short-term banks to have gold earmarked for their account securities as are currently marketable. and transferable on their order, to open ac- (/) Buy and sell exchange for its OWTL ac- counts through which central banks can transcount or for account of central banks. fer their assets from one currency to another, (g) Buy and sell negotiable securities other and to take such other measures as the board than shares for its ow^n account or for account may think advisable within the limits of the of central banks. powers granted by these statutes. The prin- (h) Discount for central banks bills taken ciples and rules governing such accounts shall from their portfolio and rediscount with cen- be fixed by the board. tral banks bills taken from its own portfolio. (i) Open and maintain current or deposit ac- ARTICLE 25 counts with central banks. The bank may not— (j) Accept— (a) Issue notes payable at sight to bearer. (i) Deposits from central banks on cur- (b) "Accept77 bills of exchange. rent or deposit account. (c) Make advances to Governments. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

APRIL, 1930 FEDERAL RESERVE BULLETIN 237 (d) Open current accounts in the name of tioned in subclause (1), and being of the same Governments. nationality as the governor who appoints him. (e) Acquire a predominant interest in any During the continuance of the liability of business concern. Germany to pay reparation annuities, two (/) Except so far as is necessary for the con- persons of French and German nationality, duct of its own business, remain the owner of respectively, representative of industry or real property for any longer period than is re- commerce, appointed by the governors of the quired in order to realize to proper advantage Bank of France and of the Keichsbank, ressuch real property as may come into the posses- pectively, if they so desire. sion of the bank in satisfaction of claims due If for any reason the governor of any of the to it. seven institutions above mentioned is unable ARTICLE 26 or unwilling to serve as director, or to appoint a substitute nominee under subclause (1), or The bank shall be administered with particuto make an appointment under subclause (2), lar regard to maintaining its liquidity, and for the governors of the other institutions referred this purpose shall retain assets appropriate to to or a majority of them may invite to become the maturity and character of its liabilities. Its members of the board two nationals of the short-term liquid assets may include bank notes, country of the governor in question, not obchecks payable at sight drawn on first-class jected to by the central bank of that country. banks, claims in course of collection, deposits Directors appointed as aforesaid, other than at sight or at short notice in first-class banks, ex officio directors or their substitute nomiand prime bills of exchange of not more than nees, shall hold office for three years but shall 90 days' usance, of a kind usually accepted for be eligible for reappointment. rediscount by central banks. (3) Not more than nine persons to be elected The proportion of the bank's assets held in by the following procedure: any given currency shall be determined by the The governor of the central bank of every board with due regard to the liabilities of the country, other than those mentioned in subbank. clause (1), in w^hich capital has been subscribed CHAPTER IV.—Management at the time of incorporation, shall be entitled to submit a list of four candidates of his own ARTICLE 27 nationality for directorship, which may include his own name. Two of the candidates on each The administration of the bank shall be list shall be representative of finance and the vested in the board. other two of industry or commerce. From these lists the board may elect, by a two- ARTICLE 28 thirds majority, not more than nine persons. The board shall be composed as follows: The directors so elected shall be divided by (1) The governors for the time being of the lot into three groups, as nearly as may be central banks of Belgium, France, Germany, equal in number, of which one group shall Great Britain, Italy, Japan, and the United retire at the end of the first, one at the end of States of America (hereinafter referred to as the second, and one at the end of the third ex officio directors), or if any of the said gover- financial year of the bank. The retiring nors are unwilling or unable to hold office, their directors snail be eligible for reelection. respective nominees (hereinafter referred to as At the first meeting of directors in the second substitute nominees). and succeeding financial years the board may The tenure of office of a substitute nominee elect by a two-thirds majority not more than shall be within the discretion of the governor three directors from a panel of candidates by whom he is appointed, but shall terminate composed of lists of persons with similar qualiin any case when that governor vacates office. fications to those specified in connection with Any ex officio director may appoint one per- the first election. The governors of the son as his alternate who shall be entitled to central banks of every country, other than attend and exercise the powers of a director at those mentioned in subclause (1), in which meetings of the board if the governor himself is capital has at the date of such meeting been unable to be present. subscribed shall be entitled to submit a list (2) Seven persons representative of finance, of four persons to be included in the panel. industry, or commerce, appointed once each Directors so elected shall hold office for three by the governors of the central banks men- years, but shall be eligible for reelection. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

238 FEDERAL RESERVE BULLETIN APRIL, 1930 If in any of the countries referred to in the ARTICLE 35 preceding paragraph there is no central bank, the board by a two-thirds majority may The members of the board may receive, in nominate an appropriate financial institution addition to out-of-pocket expenses, a fee for to exercise the right of submitting a list of attendance at meetings and/or a remuneration, candidates for election. the amounts of which will be fixed by the board, subject to the approval of the general ARTICLE 29 meeting. ARTICLE 36 In the event of a vacancy occuring on the board for any reason other than the termina- The proceedings of the board shall be sumtion of a period of office in accordance with the marized in minutes which shall be signed by preceding article, the vacancy shall be filled the chairman. in accordance with the procedure by which Copies of or extracts from these minutes for the member to be replaced was selected. In the purpose of production in a court of justice the case of directors other than ex officio direcmust be certified by the general manager of the tors, the new director shall hold office for the bank. unexpired period only of his predecessor's A record of decisions taken at each meeting term of office. He shall, however, be eligible shall be sent wdthin eight days of the meeting for reelection at the expiration of that term. to every member. ARTICLE 30 ARTICLE 37 Directors must be ordinarily resident in Europe or in a position to attend regularly at The board shall represent the bank in its meetings of the board. dealings with third parties and shall have the exclusive right of entering into engagements on ARTICLE 31 behalf of the bank. It may, however, delegate this right to a member or members of the board No person shall be appointed or hold office or of the permanent staff of the bank, provided as a director wTho is a member or an official that it defines the powers of each person to of a Government or a member of a legislative whom it delegates this right. body, unless he is the governor of a central bank. ARTICLE 38 ARTICLE 32 The bank shall be legally committed vis-a-vis Meetings of the board shall be held not less third parties by the signature of the president than 10 times a year. At least four of these or by two signatures either of members of the shall be held at the registered office of the bank. board or of members of the staff who have been duly authorized by the board to sign on its ARTICLE 33 behalf. A member of the board who is not present in ARTICLE 39 person at a meeting of directors may give a proxy to any other member authorizing him The board shall elect from among its memto vote at that meeting on his behalf. bers a chairman and one or more vice chairmen, one of whom shall preside at meetings of the board in the absence of the chairman. ARTICLE 34 The chairman of the board shall be president Unless otherwise provided by the statutes, of the bank. decisions of the board shall be taken by a simple He shall hold office for three years and shall majority of those present or represented by be eligible for reelection. proxy. In the case of an equality of votes, the Subject to the authority of the board, the chairman shall have a second or casting vote. president will carry out the policy and control The board shall not be competent to act the administration of the bank. unless a quorum of directors is present. This He shall not hold any other office w^hich, in quorum shall be laid down in a regulation the judgment of the board, might interfere with adopted by a two-thirds majority of the board. his duties as president. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

APRIL, 1930 FEDERAL RESERVE BULLETIN 239 ARTICLE 40 The chair shall be taken at general meetings by the chairman of the board or in his absence At the meeting* of the board at which the by a vice chairman. election of a chairman is to take place the chair At least three weeks7 notice of general meetshall be taken by the oldest member of the ings shall be given to those entitled to be repreboard present. sented. ARTICLE 41 Subject to the provisions of these statutes, the general meeting shall decide upon its own A general manager shall be appointed by the procedure. board on the proposal of the president. He ARTICLE 47 will be responsible to the president for the operations of the bank and will be the chief of Within three months after the end of each its operating staff. financial year of the bank, an annual general The heads of departments, and any other meeting shall be held upon such date as the officers of similar rank, shall be appointed by board may decide. the board on recommendations made by the The meeting shall take place at the registered president after consultation with the general office of the bank. manager. Voting by proxy will be permitted in such The remainder of the staff shall be appointed manner as the board may have provided in by the general manager with the approval of advance by regulation. the president. ARTICLE 42 ARTICLE 48 The annual general meeting shall be invited— The departmental organization of the bank (a) To approve the annual report, the balshall be determined by the board. ance sheet upon the report of the auditors, and the profit and loss account, and any proposed ARTICLE 43 changes in the remuneration, fees, or allowances of the members of the board; The board may, if it thinks fit, appoint from (6) To make appropriations to reserve and to among its members an executive committee to special funds, and to consider the declaration of assist the president in the administration of the a dividend and its amount; bank. (c) To elect the auditors for the ensuing year The president shall be a member and ex and to fix their remuneration; and officio chairman of this committee. (d) To discharge the board from all personal responsibility in respect of the past financial ARTICLE 44 year. The board may appoint advisory committees ARTICLE 49 chosen wholly or partly from persons not con- Extraordinary general meetings shall be cerned in the bank's management. summoned to decide upon any proposals of the board: ARTICLE 45 (a) To amend the statutes. (b) To increase or decrease the capital of the As long as the plan is in force, the board shall bank. convene the special advisory committee re- (c) To liquidate the bank. ferred to in the plan, upon receipt of the notice therein provided for. CHAPTER VI.—Accounts and profits CHAPTER V.—General meeting ARTICLE 50 ARTICLE 46 The financial year of the bank will begin on April 1 and end on March 31. The first finan- General meetings of the bank may be atcial period will end on March 31, 1931. tended by nominees of the central banks or other financial institutions referred to in article ARTICLE 51 15. Voting rights shall be in proportion to the The bank shall publish an annual report, and number of shares subscribed in the country of at least once a month a statement of account each institution represented at the meeting. in such form as the board may prescribe. 103025—30 8 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

240 FEDERAL RESERVE BULLETIN APRIL, 1930 The board shall cause to be prepared a profit the paid-up capital; 20 per cent until it equals and loss account and balance sheet of the bank four times the paid-up capital; 10 per cent until for each financial year in time for submission it equals five times the paid-up capital; and to the annual general meeting. from that point onward, 5 per cent. In case the general reserve fund, by reason of ARTICLE 52 losses or by reason of an increase in the paid-up capital, falls below the amounts provided for The accounts and balance sheet shall be above after having once attained them, the audited by independent auditors. The auditors appropriate proportion of the yearly net shall have full power to examine all books and profits shall again be applied until the position accounts of the bank and to require full inforis restored. mation as to all its transactions. The auditors (e) As long as the plan is in force any reshall report to the board and to the general mainder of the net profits after meeting the meeting and shall state in their report: foregoing requirements shall be disposed of as (a) Whether or not they have obtained all follows: the information and explanations they have (i) As to 75 per cent to such of the Governrequired; and ments or central banks of Germany and the (6) Whether, in their opinion, the balance countries entitled to share in the annuities sheet dealt with in the report is properly drawn payable under the plan, as have maintained up so as to exhibit a true and correct view of the time deposits at the bank subject to withstate of the bank's affairs according to the best drawal in not less than five years from the time of their information and the explanations given of deposit or after four years on not less than to them, and as shown by the books of the bank. one year's notice. This sum shall be distributed annually in proportion to the size of ARTICLE 53 the deposits maintained b}T the respective Gov- The yearly net profits of the bank shall be ernments or central banks in question. The applied as follows: board shall have the power to determine the (a) Five per cent of such net profits, or such minimum deposit which would justify the proportion of 5 per cent as may be required for distribution provided for. the purpose, shall be paid to a reserve fund (ii) As to 25 per cent as follows: called the legal reserve fund until that fund If the German Government elects to make a reaches an amount equal in value to 10 per cent long-term deposit with the bank withdrawable of the amount of the paid-up capital of the bank only on the terms specified under subclause (i) for the time being. above and amounting to the minimum sum of (6) Thereafter such net profits shall be 400,000,000 reichsmarks, the said 25 per cent applied in or toward the payment of a dividend shall go into a special fund, to be used to aid of 6 per cent per annum on the amount of the Germany in paying the last 22 annuities propaid-up capital of the bank. This dividend vided for in the plan. shall be cumulative. If the German Government elects to make (c) As to the residue (if any) of such net such long-term deposit amounting to a sum profits 20 per cent shall be paid to the share- below 400,000,000 reichsmarks the participaholders until a maximum further dividend of tion of the German Government shall be 6 per cent (which shall be noncumulative) is reduced in proportion, and the balance shall reached, provided that the board may in any be added to the 75 per cent referred to in year withhold all or any part of this additional subclause (i) above. payment and place it to the credit of a special If the German Government elects not to dividend reserve fund for use in maintaining make any such long-term deposit, the said 25 the cumulative 6 per cent dividend provided per cent shall be distributed as provided in for in the preceding paragraph or for subse- subclause (i) above. quent distribution to the shareholders. The special fund referred to above shall (d) After making provision for the foregoing, carry compound interest, reckoned on an one-half of the yearly net profits then remaining annual basis, at the maximum current rate paid shall be paid into the general reserve fund of the by the bank on time deposits. bank until it equals the paid-up capital. There- If the special fund should exceed the amount after 40 per cent shall be so applied until the required to pay the last 22 annuities, the general reserve fund equals twice the paid-up balance shall be distributed among the creditor capital; 30 per cent until it equals three times Governments as provided for in the plan. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

241 APRIL, 1930 FEDERAL RESERVE BULLETIN (/) At the expiration of the period referred president or a member of the tribunal as sole to in the first paragraph of subclause (e) the arbitrator. disposal of the remainder of the net profits ARTICLE 57 referred to in subclause (e) shall be determined by the general meeting on the proposal of the In all cases not covered by the preceding board. article, or by some other provision for arbitration, the bank may proceed or be proceeded ARTICLE 54 against in any court of competent jurisdiction. RESERVE FUNDS ARTICLE 58 The general reserve fund shall be available for meeting any losses incurred by the bank. For the purposes of these statutes: In case it is not adequate for this purpose, (1) Central bank means the bank in any recourse may be had to the legal reserve fund country to which has been intrusted the duty provided for in article 53 (a). of regulating the volume of currency and credit These reserve funds, in the event of liquida- in that country; or where a banking system has tion, and after the discharge of the liabilities of been so intrusted, the bank forming part of the bank and the costs of liquidation shell be such system which is situated and operating in divided among the shareholders. the principal financial market of that country. (2) The governor of a central bank means the CHAPTER VII.—General provisions person who, subject to the control of his board or other competent authority, has the direction ARTICLE 55 of the policy and administration of the bank. (3) A two-thirds majority of the board means The bank may not be liquidated except by a not less than two-thirds of the votes (whether three-fourths majority of the general meeting. given in person or by proxy) of the whole It shall not in any case be liquidated before it directorate. has discharged all the obligations which it has ARTICLE 59 assumed under the plan. Amendments of any articles of these statutes ARTICLE 56 other than those enumerated in article 60 may be proposed by a two-thirds majority of the (1) If any dispute shall arise between the board to the general meeting, and if adopted by bank, on the one side, and any central bank, a majority of the general meeting shall come financial institution, or other bank referred to into force, provided that such amendments are in the present statutes, on the other side, or not inconsistent with the provisions of the between the bank and its shareholders, with re- articles enumerated in article 60. gard to the interpretation or application of the statutes of the bank, the same shall be referred ARTICLE 60 for final decision to the tribunal provided for by The Hague agreement of January, 1930. Articles 2, 3, 4, 9, 15, 20, 25, 28, 46, 53, 56, 59, (2) In the absence of agreement as to the and 60 can not be amended except subject to the terms of submission either party to a dispute following conditions: The amendment must be under this article may refer the same to the adopted by a two-thirds majority of the board, tribunal, which shall have power to decide all approved by a majority of the general meeting questions (including the question of its own and sanctioned by a law supplementing the jurisdiction) even in default of appearance by charter of the bank. the other party. J. E. R. (3) Before giving a final decision and without prejudice to the questions at issue, the presi- ARRANGEMENT RELATING TO THE CONCUR- RENT MEMORANDUM ACCOMPANYING THE dent of the tribunal, or, if he is unable to act in EXPERTS' PLAN OF JUNE 7, 1929 any case, a member of the tribunal to be designated by him forthwith, may, on the request The duly authorized representatives of the of the first party applying therefor, order any Governments of Belgium, France, Great Britappropriate provisional measures in order to ain and Northern Ireland, Greece, Italy, Porsafeguard the respective rights of the parties. tugal Rumania, and Jugoslavia have agreed (4) The provisions of this article shall not with the German Government as follows: prejudice the right of the parties to a dispute (1) The creditor powers undertake that Gerto refer the same bv common consent to the many shall on the conditions contained in the Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

242 FEDERAL RESERVE BULLETIN APRIL, 1930 annex hereto (which is a reproduction of the Done at The Hague this 20th day of January, concurrent memorandum attached to the report 1930. of the experts7 committee of June 7, 1929) have Curtius, Wirth, Schmidt, Moldenhauer, the benefit of any relief which any one or more Henri Jaspar, Paul Hymans, E. Francof those powers may receive in respect of its net qui, Henri Cheron, Loucheur, Philip outward payments on account of war debts. Snowden, N. Politis, J. G. Politis, A. The war debts referred to in this clause are Mosconi, A. Pirelli, Suvich, G. G. those dealt with by the following agreements: Mironesco, J. Lugosiano, Al. Zeuceano, Dr. V. Marinkovitch, Const. Fotitch. Interallied debts which have been taken into consideration in calculating the annuities accord- ANNEX ing to the Young plan Concurrent memorandum but not a part of the report (1) To the United States of America: Special memorandum oj the experts of the prin- Great Britain—Agreement of June 18, cipal creditor powers and oj Germany regarding 1923. outpayments France—Agreement of April 29, 1926. (Signed concurrently with the report of the committee Italy—Agreement of November 14,1925. of experts) Belgium—Agreement of August 18, 1925. 1. In the annuities provided in the report the Yugoslavia—Agreement of May 3, 1926. following amounts are required to cover out- Rumania—Agreement of December 4, payments: 1925. Equivalent Equivalent in millions of in millions o: Greece—Agreement of January 18, 1928. reichsmarks reichsmarks (2) To Great Britain: 9 965 1 31 1, 515 4 France—Agreement of July 12, 1926. 3 942. 3 32 1, 525. 4 Italy—Agreement of January 27, 1926. 4 995.4 33 1, 543. 2 5 1, 136. 4 34 1, 535. 0 Rumania—Agreement of October 19, 6 1, 199. 0 35 1, 547. 4 1925. 7 1, 224. 9 36 1, 546. 8 Yugoslavia—Agreement of August 9, 8 1, 271. 8 37 1, 573. 7 9 _ _ _ 1, 334. 0 38 .1, 566. 9 1927. 10 1, 352. 5 39 1, 566. 1 Portugal—Agreement of December 31, 11 1, 375. 0 40 1, 575. 9 1926. 12 1, 487. 6 41 1, 589. 2 Greece—Agreement of April 9, 1927. 13 1 437 9 49 1 602 9 (3) To France \ 14 _ _ 1, 455. 1 43 1, 613. 1 15 1, 451. 5 44 1, 621. 5 Rumania—Agreement of January 17, 16 1, 464. 7 45 1, 624. 9 1930. 17 1, 460. 9 46 I, 627. 6 Yugoslavia—Agreement of January 20, 18 1, 456. 5 47 1, 634. 2 1930 (dealing with the war debt). 19 1, 472. 3 48 1, 637. 9 20 _ _ ], 467. 1 49 _ 1, 644. 6 Greece—Agreement of January 20, 1930 21 1, 461. 6 50 1, 654. 7 (provisions relating to the prearmi- 22 1, 503. 9 51 1, 659. 6 stice debt—tranche A). 23 1, 487. 9 52 1, 670. 5 (2) Any dispute between the contracting 24 1, 491. 0 53 1, 687. 6 25 1,498. 1 54 1, 691. 8 parties as to the interpretation or application 26 1, 509. 4 55 1, 703. 3 of this agreement shall be submitted for final 27 1, 504. 5 56 1, 683. 5 decision to the tribunal established by the 28 1, 499. 1 57 925. 1 29 1, 506. 7 58 931. 4 agreement with Germany concluded at The 30 1,538. 6 59 897.8 Hague in January, 1930. (3) This arrangement, of which the English It is represented that in the event of modifiand French texts are equally authentic, shall cations of those obligations for outpayments, be ratified, and shall go into force for each by which the creditors benefit, there should be Government after ratification by it, at the some corresponding mitigation of the German same time as the agreement with Germany for annuities. The experts of the four chief the complete and final settlement of the creditor countries and of Germany therefore question of reparations concluded on this same recommend that Germany and all the creditor day at The Hague goes into force. Governments having obligations for outpay- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

243 APRIL, 1930 FEDERAL RESERVE BULLETIN ments should undertake between themselves an 4. It was originally suggested that the arrangement on the following basis: amounts of the postponable annuities should be 2. Any relief which any creditor power may regulated by reference to the net amounts which effectively receive, in respect of its net outward the various creditors were themselves able to payments on account of war debts; after mak- postpone in respect of interallied war debts, the ing due allowance for any material or financial general conditions therein governing postponecounterconsiderations, and after taking into ments to be applied. For various reasons, this account any remissions on account of war debt method of calculation could not be adopted, receipts which it may itself make, shall be dealt but endeavor was made to adapt the morawith as follows: torium provisions in such a way that the rights As regards the first 37 years: granted to Germany should not be greater (a) Germany shall benefit to the extent of than those of the creditor powers. The untwo-thirds of the net relief available by way of conditional part of the annuity has therefore a reduction in her annuity obligations there- been fixed, while guarantees have been provided after. for the remainder. (b) One-third of the net relief shall be retained Francqui, Gutt, E. Moreau, J. Parmentier, by the creditor concerned, in addition to the Dr. Hjalmar Schacht, Kastl, J. C. Stamp, amounts otherwise receivable from Germany. C. S. Addis, A. Pirelli, Suvich. (c) Nevertheless, so long as any liability of PARIS, June 7, 1929. Germany persists in respect of the period after March 31, 1966, the creditor concerned will ARRANGEMENT BETWEEN THE CREDITOR retain annually only one-fourth part of the POWERS net relief, the balance being paid to the Bank for International Settlements. GERMANY (d) These payments to the Bank for International Settlements shall accumulate to assist The duly authorized representatives of the Germany toward meeting her liabilities in Government of His Majesty the King of the respect of the period after March 31, 1966; any Belgians, the Government of the United Kingsums found after application of the funds pro- dom of Great Britain and Northern Ireland, vided in Annex I not to be required for this the Government of Canada, the Government of purpose (together with the accumulations the Commonwealth of Australia, the Governthereon) shall be returned to the creditor by ment of New Zealand, the Government of the whom they were provided. Union of South Africa, the Government of As regards the last 22 years: India, the Government of the French Republic, The whole of such relief shall be applied to the the Government of the Greek Republic, the reduction of Germany's liabilities. Government of His Majesty the King of Italy, 3. We recommend that the creditor Govern- the Government of His Majesty the Emperor ments should agree that, if the operation of the of Japan, the Government of the Republic of relief to Germany envisaged in respect of a Poland, the Government of the Republic of possible reduction of net outpayments is such Portugal, the Government of His Majesty the as to change materially the proportions in which King of Rumania, the Government of the the total annuities provided for in the present Czechoslovak Republic and the Government of plan are divided amongst them, they meet to His Majesty the King of Yugoslavia, have conconsider a revision tending toward the restora- cluded the following arrangement: tion of the present proportions; but having re- 1. The signatory powers accept the division gard to the following conditions set out below of the German payments resulting from the and any other relevant factors then existing: new plan as a final settlement of all questions (a) The service of any bonds mobilized by relating to the distribution of payments, transthe creditor country, and the balance of its net fers, cessions, and deliveries already made by outward payments in respect of war debts re- Germany in execution of the treaty of Versailles, maining to be covered must continue to be met the armistice conventions, and any suppleout of the share falling to it in the annuities mentary agreements, subject only to the prothereafter to be paid by Germany. visions set out in articles 3 and 4 of this (6) Due allowance shall be made for any ma- arrangement. terial or financial counterconsiderations ac- This division among the signatory powers cepted by the creditor country in connection shall not be affected by any existing arrangewith the relief accorded to it in respect of war ments between them nor by the result of debts payments. accounts relating to past transactions. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

244 FEDERAL RESERVE BULLETIN APRIL, 1930 2. In consequence, all accounts between the 4. For the application of paragraph 192 of signatory powers or between any one of them the annexes to the experts7 report, a sum of and the Reparation Commission, relating to 118,100,000 reichsmarks will be handed over questions dealt with in article 1, and regarding to Great Britain, Italy, and Greece out of the the period prior to the application of the receipts in respect of the last five months of the experts7 plan of June 7,1929 (including accounts Dawes plan. relating to the shares of the German pre-war This payment will be divided as follows: public debt), have henceforth no purpose or Reichsmarks effect and will be closed in their existing state, Great Britain 102, 000, 000 subject only to the provisions set out in articles Italy 14, 800, 000 3 and 4 of this arrangement. Greece 1, 300, 000 3. Nevertheless— It wTill be charged on the excesses of the va- (a) The shares of the Bagdad Railway Co. rious powers in the following amounts: at present held by the Reparation Commission will be allotted in three equal portions to Reichsmarks France, Great Britain, and Italy, without giv- France 89, 380, 446 Belgium 12, 014, 283 ing rise to any adjustment of accounts between Japan 2, 527, 350 the creditor powers. Yugoslavia 13, 021, 695 (6) The method of distribution of the cables Portugal 134, 661 ceded by Germany under the treaty of Ver- Rumania 912, 920 Poland 108, 645 sailles will be settled by the creditor powers concerned. 5. The payments made to the Reparation (c) The expenses of the experts' committee Commission by the Government of Denmark, of 1929 to be met by the creditor powers will be by the Free City of Danzig, and by the Danzig finally divided among them in accordance with Harbour and Waterways Board, are regarded the percentages provided by the Spa agreement as constituting a final settlement of their and the complementary agreements. respective obligations toward the Reparation (d) Any savings realized on the sums paid to Commission in respect of state property ceded the sections of the Inter-Allied Rhineland High by Germany and of their shares in the German Commission out of the fifth Dawes annuity pre-war public debt. shall be used toward meeting the expenses of 6. The excess of the fund dealt with in parathe said sections after August 31, 1929, includ- graph 113 of the annexes to the experts' report ing costs of liquidation. The balance of these of June 7, 1929 (penultimate sentence), will be expenses up to the following maxima: Belgium divided among the creditor Governments in 250,000 reichsmarks, France 750,000 reichs- accordance with the arrangements to be conmarks, Great Britain 364,000 reichsmarks, shall cluded between them when the time comes. be defrayed from the fund provided for by 7. In order to give effect to Article VI of Annex IV to the protocol of August 31, 1929. Annex I of the protocol of August 31, 1929, the (e) If the expenses of the Reparation Com- French and Italian Governments agree to pay mission and of the organizations provided for to Great Britain during each of the 36 financial by the Dawes plan after August 31, 1929, are years commencing April, 1930, the annuities not completely covered by the sums of 6,000,000 provided for in their respective war debt reichsmarks provided for by Annex III to The funding agreements by equal monthly install- Hague protocol of August 31, 1929, any excess ments on the 15th of each month, instead of in shall be met out of savings realized by the Repa- half-yearly installments on September 15 and ration Commission and by the said organiza- March 15 of each year. tions, respectively, on the sums allocated for The dates of the release of the Italian gold such expenses out of the fifth Dawes annuity. deposit provided for in article 7 of the Anglo- (/) All questions relating to claims or assets Italian war debt funding agreement will be of the Reparation Commission, the distribution similarly modified. of •which is not provided for by the above 8. The annuities provided by articles 3 and 4 paragraphs, will be settled by the Governments of Annex I of The Hague protocol of August 31, of Belgium, France, Great Britain, Italy, and 1929, shall be paid in two equal installments Japan. Any receipts in respect of these claims on July 1 and January 1 in each year, from or assets will be distributed in accordance with July 1, 1930, to January 1, 1966. For the the rules of distribution laid down by the current year, in the absence of any different agreement of January 14, 1925. arrangement, the whole amount shall be paid Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

245 APRIL, 1930 FEDERAL RESERVE BULLETIN on March 15, 1930, with interest at 5% per cent ARTICLE I from October 1, 1929. 9. The service of the annuity of 19,800,000 A complete and final discharge of their reichsmarks, payment of which to Great Britain liabilities is granted to the powers signatory was guaranteed by France and Belgium under of the present agreement which are debtors Article III of Annex I of The Hague protocol of in respect of the properties ceded in virtue August 31, 1929, will be met as to 16,650,000 of the treaties of St. Germain, Trianon, and reichsmarks by France and as to 3,150,000 Neuilly and of the liberation debts arising out reichsmarks by Belgium. of the agreements of September 10 and Decem- 10. This arrangement, of which the English ber 8, 1919. and French texts are equally authentic, shall be Provided always that no one of the said ratified, and shall go into force for each Govern- powers shall derive any benefit under this ment after ratification by it, at the same time article unless and until it shall have ratified as the agreement with Germany for the com- the agreements with Germany, Austria, Bulplete and final settlement of the question of garia, and Czechoslovakia concluded at The reparations concluded on this same day at The Hague in January, 1930. Hague goes into force. Done at The Hague this 20th day of Janu- ARTICLE II ary, 1930. The annuity of 10,000,000 gold marks pay- Henri Jaspar, Paul Hymans, E. Francqui, able under the agreement of even date by Philip Snowden, Peter Larkin, Granville Czechoslovakia to the other creditor Govern- Ryrie, E. Toms, Philip Snowden, Philip ments shall be distributed among the creditor Snowden, Henri Cheron, Loucheur, powers other than Rumania, Czechoslovakia, N. Politis, J. G. Politis, A. Mosconi, and Yugoslavia in accordance with the following A. Pirelli, Suvich, Adatci, K. Hirota, table: J. Mrozowski, R. Ulrich, Tomaz Fer- Gold marks nandes, G. G. Alironesco, N. Titulesco, France 3, 187, 854 J. Lugosiano, Al. Zeuceano, Dr. Eduard Great Britain 1, 384, 519 Benes, Stefan Osusky, Dr. V. Marin- Italy 3, 146, 632 Belgium 418, 816 kovitch, Const. Fotitch. Japan 51, 920 Portugal 51, 920 AGREEMENT Greece 1, 758, 339 Arrangement between the creditor powers (Aus- ARTICLE III tria, Hungary, Bulgaria—Liberation debt) Subject to the provisions of Articles IV and V the payments made by Bulgaria and Hun- The duly authorized representatives of the gary on account of reparation up to 1943 Government of His Majesty the King of the shall be distributed as follows: Belgians, the Government of the United King- Greece 76.73 per cent on the Bulgarian dom of Great Britain and Northern Ireland, payments and on the Hungarian payments. the Government of Canada, the Government Rumania 13 per cent on the Bulgarian payof the Commonwealth of Australia, the Governments and on the Hungarian payments. ment of New Zealand, the Government of the Czechoslovakia 1 per cent, on the Bulgarian Union of South Africa, the Government of and Hungarian payments. India, the Government of the French Republic, Yugoslavia 5 per cent on the Bulgarian paythe Government of the Greek Republic, the ments and 2 per cent on the Hungarian pay- Government of His Majesty the King of Italy, ments. the Government of His Majesty the Emperor The balance both of the Bulgarian and of of Japan, the Government of the Republic of the Hungarian payments being distributed Poland, the Government of the Republic of between the other creditor powers propor- Portugal, the Government of His Majesty the tionately to the percentages of article 2 of the King of Rumania, the Government of the Spa agreement of July 16, 1920, and subsequent Czechoslovak Republic and the Government agreements. of His Majesty the King of Yugoslavia, have concluded the following arrangement as to the ARTICLE IV State properties ceded by Austria, Hungary, Greece shall receive and Bulgaria, the liberation debts and the (a) The liquid assets realized by the Reparadistribution of non-German reparations. tion Commission in pursuance of the treaty of Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

246 FEDERAL RESERVE BULLETIN APRIL, 1930 Neuiliy and not distributed at the present ARRANGEMENT AS TO THE FINANCIAL MOBItime. LIZATION OF THE GERMAN ANNUITIES (6) The payment of 5,000,000 gold francs The duly authorized representatives of the to be made by Bulgaria on April 1, 1930. signatory Governments taking into consideration, on the one hand, article 165 of the experts' ARTICLE V report, which states that from the point of Yugoslavia shall dispose of the whole of the view of the creditor powers, an essential aspect sums to be paid by Hungary up to and includ- of the new plan is in the fact that the annuity ing June 30, 1930, under the schedule of pay- is paid in a manner lending itself to mobilizaments at present in force less a sum to be re- tion in accordance with the provisions laid tained by the Reparation Commission for its down in this respect; and, on the other hand, administrative expenses. article 161 of the same report which recognizes the necessity to reestablish the financial ARTICLE VI autonomy of Germany; Have agreed, in a spirit of collaboration, The distribution fixed by the preceding arupon the following: ticles is final and inclusive. ARTICLE VII 1. Certain creditor Governments state their The present agreement constitutes a final intention to proceed, as soon as possible, with settlement as between the signatory Govern- the issue on the international markets of ments of all their claims in respect of the state one or more tranches of reparation bonds of a properties ceded in virtue of the treaties of St. total amount of $300,000,000. They propose Germain, Trianon, and Neuiliy, of the libera- to make this issue before October 1, 1930. tion debts and of all payments and deliveries 2. The German Government declares that it made to the said Governments in virtue of the will not issue any external long-term loan treaties of St. Germain, Trianon, and Neuiliy before October 1, 1930, or, if the issue referred and the arrangements supplementary thereto. to in the preceding paragraph has not taken The present agreement, of which the French place before this date, before the expiry of one and English texts are both authentic, shall be year from the date of the delivery to the Bank ratified. for International Settlements of the debt Deposit of ratifications shall be made at certificate' of the Reich, on the understanding Paris as soon as possible. that this undertaking shall not extend beyond The powers of which the seat of government March 31, 1931. This declaration concerns is outside Europe will be entitled to inform the also the Reichspost and the German Railway French Government through their diplomatic Co. representative at Paris that their ratification 3. Moreover, the above-mentioned declarahas been given; in that case they must transmit tion of the German Government lapses in the the instrument of ratification as soon as pos- following cases: sible. (a) Immediately upon the effective ac- The French Government will transmit to all complishment of mobilization operations for the the signatory Governments a certified copy amount mentioned above; of the proces-verbaux of the deposit of ratifica- (6) Two months after the Bank for Intertions. national Settlements has notified, in accordance Done at The Hague in a single copy January with the provisions of article 143 of the annexes 20, 1930. to the plan, that it appears to be practicable Henri Jaspar, Paul Hymans, E. Francqui, to proceed with the issue of the amount sug- Philip Snowden, Peter Larkin, Gran- gested above or of an issue completing the ville Ryrie, E. Toms, Philip Snowden, amount if owing to the creditor powers this Philip Snowden, Henri Cheron, Lou- issue has not taken place. cheur, N. Politis, J. G. Politis, A. 4. The sum of $300,000,000 mentioned Mosconi, A. Pirelli, Suvich, Adatci, above refers to the effective proceeds, and not K. Hirota, J. Mrozowski, R. Ulrich, the nominal value, of the bonds issued. Tomaz Fernandes, G. G. Mironesco, 5. The Reich notifies that by virtue of an N. Titulesco, J. Lugosiano, Al. Zeuceano, act dated October 26, 1929, it had contracted Dr. Eduard BeneS, Stefan Osusky, Dr. with the Svenska Tandsticke Aktiebolaget of V. Marinkovitch, Constantin Fotitch. Stockholm and with the N. V. Financieele Mij. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

APRIL, 1930 FEDERAL RESERVE BULLETIN 247 Kreuecr and Toll of Amsterdam for a loan of this collaboration by seeking practical solutions $125,000,000. to achieve this result. It is understood that the above declarations The German and French texts of the present do not apply to this loan. irrangement arc equally valid. The German Government undertakes, how- For the German Government: ever, that the obligations of the Reich which are to be created by virtue of this act shall MOLBENHAUER. not be offered for public subscription until For the British Government: after June 30, 1933. . PHILIP SNOWDEN. The German Government undertakes, in agreement with the Svenska Tandsticke For the French Government: Aktiebolaget of Stockholm and with the HENRI CHERON. N. V. Financieele Mij. Kreuger and Toll of LOUCHEUR: Amsterdam (whose adhesion is dealt with in a letter which shall be annexed to the present For the Italian Government: document), that the service of this loan shall SUVICH. never give rise to any discrimination to the prejudice of the service of the unconditional For the Japanese Government: annuities. M. ADATCI. II K. HIROTA. 6. The German Government reserves to it- For the Portuguese Government: self the right to participate in the mobilization R. ULRICH. issue of an amount of $300,000,000 specified TOMAZ FERNANDES. in paragraph 1 above. This participation will For the Yugoslav Government: take place on the original terms. 7. These operations will be carried out DR. V. MARINKOVITCH. through the Bank for International Settle- C. FOTITCH. ments. The proceeds and the service of the EXCHANGE OF NOTES CONCERNING THE loan shall be divided between the reparation GERMAN-AMERICAN AGREEMENT creditors who have a share in the unconditional part of the annuities and the German Govern- (Addressed to His Excellency M. Henri Jaspar, Presiment in the proportion of two-thirds for the dent of The Hague Conference) former and one-third for the latter. 8. The charges for such loans shall be covered THE HAGUE, January 20, 1930. in the above proportions by a deduction from MR. PRESIDENT: In the name of my Governreparation payments and by a payment by the ment I have the honor to make the following Reich to the Bank for International Settle- communication: ments. In the case of each of these loans, the The German Government will not exercise in relation sums .provided by this deduction and this pay- to any one of the creditor powers the rights of postment shall be merged by the Bank for Inter- ponement which it possesses under the agreements already signed or initialed without exercising at the national Settlements in an account exclusively same time any similar rights which it may possess in and solely reserved for the service of this loan. relation to all the other powers whose claims are in- 9. The contracts for loans of the type men- cluded in the annuities, as set out in the experts' report tioned above shall contain a clause for antic- of June 7, 1929. Moreover in the future the German Government will not, in connection with postponeipated redemption after a period not longer ment, give any special advantage to any one of those than 10 years. powers. 10. If the German Government declares its Nothing contained herein above shall be construed as impairing in any way Germany's rights and obligawish to make use of the option referred to tions under the agreements already signed or initialed. above, and if it proves impossible to secure the suggested collaboration in the form described I beg you to accept, Mr. President, the exabove, the Governments concerned declare that pression of my highest consideration. they are nevertheless firmly resolved to attain (Signed) CURTIUS. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

248 FEDERAL RESERVE BULLETIN APRIL, 1930 (Addressed to M. Curtius, the Minister of Foreign To the PRESIDENT OF THE CONFERENCE. Affairs of the German Reich) THE HAGUE, January 20, 1930. THE HAGUE, January 20, 1930. YOUR EXCELLENCY: I have the honor to YOUR EXCELLENCY: I have the honor to acknowledge receipt of your letter of January acknowledge receipt of your letter dated to-day 20, 1930, by which you w^ere so good as to by which, in the name of your Government, inform me that the German delegation accepts you made to me the following communication: the formula drawn up by the railway experts The German Government will not exercise in relation specifying that the German Kailway Co. will to any one of the creditor powers the rights of postbe under the obligation, while observing in its ponement which it possesses under the agreements already signed or initialed without exercising at the management the provisions of the railway same time any similar rights which it may possess in law and statutes, of regulating its expenditure relation to all the other powers whose claims are in- and of fixing its tariffs in such a way that the cluded, in the annuities, as set out in the experts' report payments in respect of the reparation tax, of of June 7, 1929. Moreover in the future the German Government will not, in connection with postpone- interest and of redemption of the loans of the ment, give any special advantage to any one of those company, of the preference share dividend, as powers. well as of the redemption of these shares, will Nothing contained herein above shall be construed as be secured. impairing in any way Germany's rights and obligations under the agreements already signed or initialed. I note also that the German Government is of the opinion that this obligation already I beg you to accept, Your Excellency, the results from the provisions of the draft of the impression of my highest consideration. law, as the experts have observed. The (Signed) HENRI JASPAR. German Government is, however, ready to LETTERS EXCHANGED CONCERNING THE TAR- confirm this interpretation by inserting an IFFS OF THE GERMAN RAILWAY COMPANY explanation to that effect in the explanation of the objects of the draft law. THE HAGUE, January 20, 1930. I beg you to accept, Your Excellency, the MR. PRESIDENT: I have the honor to inform assurance of my highest consideration. you that the German delegation accepts the (Signed) HENRI JASPAR, formula drawn up by the railway experts President of the Conference. specifying that the German Railway Co. will be under the obligation, while observing in its To His Excellency M. CURTIUS, management the provisions of the railway law German Minister for Foreign A fairs. and statutes, of regulating its expenditure and TRANSITORY PROVISIONS of fixing its tariffs in such a wTay that the payments in respect of the reparation tax, of The president of the conference reports that interest and of redemption of the loans of the the Governments represented at the conference company, of the preference share dividend, as of The Hague have agreed upon the following well as of the redemption of the shares, will be provisions: secured. By wxay of supplement to Annex III to the The German Government is of the opinion protocol of The Hague dated August 31, 1929, that this obligation already results from the the agent general for reparation payments shall provisions of the draft of the law, as the experts be instructed to make available to the treasury have observed. The German Government is, of the Reich by way of loan, during the period however, ready to confirm this interpretation from the signature of the agreement of The by inserting an explanation to that effect in the Hague on German reparations of January, explanation of the objects of the draft law. 1930, to the ratification of the said agreement I beg you to accept, Mr. President, the assur- by the German Government, the difference ance of my highest consideration. between the payments under the Dawes plan (Signed) CURTIUS. and the amounts provided in the new plan. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

249 APRIL, 1930 FEDERAL RESERVE BULLETIN From the date of the ratification by Germany name of the German and Belgian Governments, of the agreement concluded at The Hague in an agreement was signed at Brussels on July January, 1930, on the subject of German 13, 1929, to settle this question, and that after reparations to the putting into execution of the ratification this agreement will enter into force new plan as provided in the fifth paragraph of at the same time as the new plan. AThis the final clause of the said agreement, the declaration is made in agreement with the German Government shall be entitled to pay to Belgian Government. the agent general for reparation payments only I beg you to accept, Mr. President, the exthe annuities due under the new plan. pression of my highest consideration. If it should be impossible to put the new plan (Signed) CURTIUS. into execution, the present agreement shall become null and void and the amounts with- THE HAGUE, January 16, 1930. held through its application shall be paid to the Mr. PRESIDENT: In Annex VI of the excreditor Governments within four months. perts7 report of June 7, 1929, the experts HENRI JASPAR. expressed the opinion that the new plan could M. P. A. HANKEY. not enter into force before the Belgian and JANUARY 20, 1930. German Governments had concluded an agreement binding in international law regarding the LETTERS ADDRESSED TO THE PRESIDENT OF so-called marks question. THE CONFERENCE BY THE BELGIAN AND With regard to this question, I have the GERMAN PLENIPOTENTIARIES CONCERN- ING THE AGREEMENT BETWEEN THEIR RE- honor to inform Your Excellency that, in the SPECTIVE GOVERNMENTS RESPECTING THE name of the Belgian and German Governments, GERMAN MARKS IN BELGIUM an agreement was signed at Brussels on July 13, 1929, to settle this question, and that after THE HAGUE, January 16, 1930. ratification this agreement will enter into force Mr. PRESIDENT: In Annex VI of the ex- at the same time as the new plan. This perts' report of June 7, 1929, the experts declaration is made in agreement with the expressed the opinion that the new plan could German Government. not enter into force before the German and I beg you to accept, Mr. President, the assur- Belgian Governments had concluded an agreeance of my highest consideration. ment, binding in international law, regarding the so-called marks question. (Signed) HYMANS. With regard to this question, I have the M. JASPAR, Prime Minister, honor to inform Your Excellency that, in the President of The Hague Conference. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

250 FEDERAL RESERVE BULLETIN APRIL, 1930 FINANCIAL STATISTICS FOR FOREIGN COUNTRIES GOLD HOLDINGS OF CENTRAL BANKS AND GOVERNMENTS [In millions of dollars. Figures for end of month or latest available preceding date; see BULLETIN for June, 1929, p. 396] Month t T r c i o e ( o 4 u s t 4 ) n a l - *' j! S U t n a i t t e e s d 2t g A i e n r n - a - 3 lit B z r i a l - * ! . C a a d n a - 5 ; E la n n g d - France m G a e n r y - d I i n a - 6 Italy p J a a n - 7 N la e e n r t d - h s - R s u ia s - ! Spain ! i 1 l S z a w n e d r it - -o c tr o t 2 i h e u 8 e s n r r - 1929—January 10, 042 3, 746 605 109 126 149 744 1,333 650 128 : 266 541 175 92 ! 494 i 93 712 February 10,065 3, 776 603 109 I 126 150 i 736 1.334 650 128 i 266 541 175 92 494 ; 93 713 March.. 10,092 3,814 585 110 126 150 ' 78 748 1, 340 639 128 270 542 170 92 494 ! 93 713 April 10,049 569 110 !134 150 ! 78 762 1,403 451 128 270 542 174 92 i 494 i 95 708 May—. i 10,121 3,931 564 106 |134 151 , 795 1,435 420 128 1 270 542 176 93 , 494 1 96 709 June.. 10,134 3,956 527 108 139 151 l 76 ' 780 1,430 455 128 i 271 542 176 93 ; 494 96 707 July | 10,151 3,974 513 111 i141 151 : 76 : 694 1,462 512 128 j 271 541 181 103 ' 495 98 700 August ! 10,233 3,995 507 113 I 141 151 ! 670 1,526 520 128 1 271 541 178 119 | 495 | 98 704 September...! 10,262 4,008 497 | 114 i 142 161 , 77 648 1,545 527 128 ! 272 541 178 132 ' 495 : 103 704 October ! 10,293 4,023 477f6t ! 109143 151 ! 77 643 1, 570 531 128 i 272 541 178 142 | 495 ; 103 709 November... 10,298 4,003 452 151 151 I 659 1, 600 534 128 1 273 542 180 142 ' 495 i 105 708 December... "10,291 3,900 434 163 150 ! 711 1,633 544 128 ! 273 542 180 147 495 ! 115 '708 1930—January !*>10, 351 3,921 442 164 139 I 78 732 1,683 547 128 273 520 177 147 i 495 ; 108 '710 February.... i PIO, 427 3,988 '448 124 164 127 ' 78 740 1,680 582 128 , 273 477 176 150 j 476 108 '709 March '4,059 759 * 1, 668 '595 156 1 j 1 i r Revised 2 months ago to include figures for Albania, Ecuador, Guate- 3 Government conversion fund and Bank of the Nation. mala, and Mexico; see BULLETIN for February (p. 73). * Bank of Brazil and stabilization fund. ' Preliminary, based on latest available figures. 6 Includes gold held by Government against Dominion notes and 1 All countries for which satisfactory figures are available; see p. 256 of savings bank deposits, and such gold as is held by chartered banks in this BULLETIN, where separate figures are given by years back to .1913. the central reserve. The 16 countries here shown separately include all thoss which have 6 Currency and gold standard reserves. held gold in recent years to the amount of $90,000,000 or more. ' Domestic holdings of Bank of-Japan and the Japanese Government 2 Treasury and Federal reserve banks. GOLD MOVEMENTS [In thousands of dollars] United States Germany Great Britain Netherlands S A o fr u i t c h a India Month p I o m r - ts | i p E o x r - ts Met p I o m rt - s 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 rt - s Net Net Net 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 26,4701 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 i 1, 594 23,093 1,768 223,247 -221,480 10,144 3,714 12,430, 165 2 163 -15,871 6,580 May.. 24,098: 467 23, 630 1, 946 781 1,165 28, 284 4,652 23, 632 4, 338 23 4,315 -17,975 6,076 June 30,762! 550 30, 212 7,493 681 6,812 21,085 40,001-18,917 190 17 173 -22, 625 3, 596 July 35,525 807 34, 718 48, 728 716 48,012 22, 578 100,479-77,901 129 8 121 -14,816 4,164 August 19, 2711 • 881 18,390 27, 728 879 26, 849 17, 226 59, 278-42,052 103 2,522 -2,419 -20,981 2,771 September 18,781; 1,205 17, 576 9, 939 851 9,088 18, 301 41, 283-22.982 116 17 '99 -15,375 3, 390 October 21,321 3,805 17, 516 4,621 1,002 3,622 28, 591 26, 79-1 1,796 177 1? 166 -15,812 3,146 D N e o c v e e m m b b e e r r 8 7, , 1 1 2 2 1 3 = 7 30 2 , , 5 2 4 8 7 9 - -6 2 4 3 , , 1 4 6 2 6 6 1 5 1 , , 0 09 9 6 3 8 9 0 1 6 9 1 4 0, , 1 2 7 9 4 0 3 65 6 , , 3 24 4 9 3 2 1 7 6 , , 4 8 3 4 0 4 4 8 8 , ,9 4 0 0 3 5 2 1 9 0 7 7 l 1 o 7 2 9 8 2 0 - -1 2 8 0, , 2 9 2 2 0 2 4 4 , , 4 6 0 0 8 3 1930—January 12,908:' 8,948 3, 960 5,052 629 4,423 41, 702 16,102 25,600 248 3,224 -2,975 -17,808 5,296 February 60,198 207 59, 991 38, 252 687 37, 565 38,961 34, 074 4,886 80 1,026 —946 -20, 786 MOVEMENTS TO AND FROM GREAT BRITAIN MOVEMENTS TO AND FROM BRITISH INDIA [In thousands of dollars] [In thousands of dollars] 1930 1929 1929 1928 From or to— February J F a e n b u ru a a ry ry - Calendar year From or to— December D Ja e n c u em ar b y e - r Calendar year Im- Ex- Im- Ex- Im- Ex- Im- ! Ex- Im- Ex- Im- ! Exports ports ports ports ports ports ports : ports ports ports ports i ports France 208 297 559 10, 974 2,066 162, 527 England 682 : 10 461 11 071 N Ge e r t m he a r n la y nds. . __ 2 32,91 3 9 9 7 36, 2 4 2 0 6 0 14 3 , , 2 3 0 8 3 2 9 2 2 , , 0 9 0 9 6 1 A U d n e it n e d an S d t a d t e e p s enden- i 22 4,086 Spain and Canaries. 19, 466 3 19,466 8 4 359 cies 93 1 1,045 910 ! Switzerland 217 623 10, 781 Arabia 23 ! 1,287 870 fi United States 23, 090 61, 293 British Oceania 2,296 | 7,701 5,067 South America 240 12, 627 49 39,129 Bahrein Islands 3 !\.:.".. 119 285 British India 315 1,201 10, 320 Ceylon 135 4,151 1 720 Australia 321 10,152 2 24, 603 China 8 ;• 188 153 New Zealand 2,433 Mesopotamia 410 j _ 2,613 1,543 ! Eevpt 1 3,786 Straits Settlements.. 1 2 19 28 200 48 Rhodesia 450 811 4,641 Egypt 215 ! 6, 867 6,714 Transvaal. _ 17, 825 36,197 184,954 Natal 738 ! 29, 595 44,387 West Africa 748 5 4,216 8 All other countries . 206 20 44 All other countries.. 70 284 95 687 1,003 33, 434 Total 38, 961 34, 074 80, 662 50,176 303, 725 377, 505 Total 4,605 ! 2 64, 275 48 76,007 99 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

251 AcKIL, 1930 FEDERAL RESERVE BULLETIN CONDITION OF CENTRAL BANKS [Figures are for the last report date of month] 1930 1929 1930 1929 I Fcbru- Janu- DP com-! Febru- Febru-! Janu- .Decom-. Febru- | ary ary ber , ary ary : ary ber ary Bank of England (millions of pounds National Bank of Belgium (millions sterling): of belgas): Issue department- Gold 1,179 1,177 1,175 906 Gold coin and bullion 151.3 ••150.1 145.8 Foreign bills and balances in gold- 548 542 578 490 Notes issued 411.3 410.1 405.8 Domestic and foreign bills 80S 816 • 81(5 738 Banking department— Loans to State 309 322 ' 338 344 Gold and silver coin j . 7 .3 .2 Note circulation 2, 798 2,768 i 2,685 2, 432 Bank notes j 64.5 62.1 26. 3 Deposits _ 138 249 110 Government securities ' 34.4 i 54.3 67.1 Other securities I 12.9 '• 14. 0 17.7 Bank of Brazil (millions of milreis): D iscounts and advances | 4.7 | 5.5 22.3 Gold... 407 407 407 Public deposits. 12.0 . 14.6 8.8 Currency _ 680 • 690 6-13 Bankers' deposits. 50.7 i 07.5 71.0 Correspondents abroad 246 305 , 331 Other deposits.. 36.2 | 36.0 35.8 Loans and discounts 1,478 1,440 i 1,118 Reserve ratio i (per cent) 65.9 , 52. 9 22. 9 Securities 128 128 I 147 Bank notes in circulation 2 ! 346.8 |348.0 379. 6 Note circulation 592 592 j 592 Deposits , 1,830 : 1,079 1, 462 Bank of Franco (millions of francs):! National Bank of Bulgaria (millions Gold I 855 42, 921 41,668 i of leva): Sight balances abroad i 956 6, 984 7,249 Gold 1, 400 1,395 1, 380 1,332 Foreign bills ! 738 18. 732 18, 693 Net foreign exchange 352 506 912 1, 934 Loans and discounts j 987 8,517 11,146 Total foreign exchange 724 875 1, 307 3,000 Negotiable bonds \ 453 5,453 5,612 Loans and discounts 1,292 1,227 1,402 1, 377 Note circulation \ 116 70, 339 68. 571 Government obligations 3, 340 3,340 3,505 I 3, 6S5 Public deposits i 767 10,172 li; 737 Note circulation 3,148 3,260 ' 3,609 3.894 Other deposits ' 136 7.512 7,850 Other sight liabilities 1,887 1,886 2,231 | 3,210 Central Bank of Chile (millions of German Rcichsbank (millions of j pesos): rei L D R G G c o h e e o o a s p s l l d d e n m o r s s v r a a i e a e b r t s s k s n r e o s d r i ) a n v : d d e f i o sc re o i u g n n t s exchange _ | 2 2, , 3 4 2 2 1 6 8 8 9 5 9 4 8 0 4 ! ; ,2 2 , , 3 3 1 2 1 5 9 4 2 5 7 7 7 0 2 I i ! I 2 3 , . 4 1 7 1 0 3 0 5 5 9 4 5 3 0 9 D D N L G o e e o o a p p l t d e n o o s s s c a i i i a t t t r s s n c h u d a o l b m d a r t i o i e s o a c . d n . o . unts 3 3 1 1 6 8 5 5 2 3 5 3 8 1 5 3 1 1 4 0 0 8 4 1 3 1 4 3 1 6 0 9 4 4 3 3 1 6 0 i i i ! j 4 3 1 2 6 6 4 3 3 1 7 5 1 Reichsmarks in circulation 4,722 i4,653 I5,044 Bank of the Republic of Colombia Rentenmarks in circulation 384 l 3S2 410 (thousands of pesos): Gold at home— _. 21,315 21, 270 22,371 j 25, 260 Bank G C L o r o o e a l f d d n I i s t a t s a t a l n y a h d n o ( d m m d e i b i s l a c l l i o a o u n n n c s t e s o s f a l b ir r e o ) a : d i j ' | 4 4 5 , , , 6 1 8 1 9 5 4 0 5 4 5 4 , , , 1 9 7 8 1 1 9 3 1 I ! 6 / 5 U , , 1 1 5 2 9 1 0 1 N D L G o e o o a p l t d e n o s s c a i i a b t r s n r c o u d a l d d at i i s o c n ounts _. _. 3 1 9 6 3 7 , , , , 4 2 6 5 7 8 4 7 7 1 9 3 , ' 3 1 1 4 6 0 7 , , , , 7 9 2 8 2 7 4 9 0 9 6 7 3 1 IS 6 9 5 , , , , 8 0 3 1 6 7 7 3 5 4 7 5 I i i ! 3 5 1 1 0 0 4 1 , , , , 1 3 4 7 9 9 0 5 7 5 0 4 Total note circulation ! 10, 095 16, 329 I 16, 774 Czechoslovak National Bank (mil- Public deposits I 30() 300 i 300 lions of Czechoslovak crowns): Other deposits™ 1» 603 1, 560 ! 1, 685 Gold 1,262 i 1,262 1,258 I 1,158 Foreign balances and currency ___ 1,980 ; 2,039 : 2,270 1, 841 Bank G o o l f d Japan (millions of yen): 1,066 1,065 A Lo ss a e n t s s a o n f d b a a d n v k a in n g c e o s ffice in liqui- 292 ; 364 1,011 : 196 Advances and discounts I 3 755 732 793 dation 354 : 355 • 362 i 425 Government bonds ! 144 179 187 Note circulation.- 0,838 I 6,923 : 8,230 ! 7, 063 Notes issued i3 1,277 1,347 1,633 1, 231 Deposits 395 407 '[ 675 j 405 Total deposits | 3 733 822 638 Danish National Bank (millions of kroner): Commonwealth Bank of Australia Gold 172 172 , 172 173 (thousands of pounds sterling): Foreign bills, etc 128 106 '• i 102 Issue department- Loans and discounts 79 64 Gold coin and bullion 25, 379 18,148 18, 264 22,481 jl Note circulation 352 i 347 ! 3S! 342 Securities i 9, 769 17,263 j 20,967 22,741 jj Deposits 29 : 35 ! 30 Banking department— ; M Co o i n n e , y b u a l t l i s o h n o , r a t n c d a l c l a s i h n Lon- _ j 1,345 1,411 1, 223 1,436 11 Ba z n ig k g o u f l d D e a n n ) z : ig (thousands of Dandon ; 4, 351 4, 669 8,423 Balances with Bank of England _ 14,502 13, 969 16,660 j 14, 516 Loans and discounts lo, 483 16,497 ; 19,160 Foreign bills, etc. 13,328 j 13, 883 12,433 18, 267 Securities l/,208 12,319 | 10, 503 Loans and discounts 20,155 i 20,481 22,427 I 21,194 Deposits ! 38, 348 33,239 !36, 626 Note circulation 36,045 ! 36, 281 36, 923 Bank notes in circulation o/> 64b 38,466 |42,423 Deposits 1,696 1,333 3, 398 2,174 Bank of Estonia (thousands of Austrian National Bank (millions of j krones) : schillings): j Gold 6, 450 6,437 6,408 ! 6, 234 Gold 169 ; 169 169 169 Net foreign exchange 18,134 19,478 20, 782 22, 980 Foreign exchange of the reserve _.; 204 204 238 209 Loans and discounts 28, 202 27,819 27, 573 31,339 Other foreign exchange 315 312 334 361 Note circulation 33, 322 32, 260 34,042 ,35, 700 Domestic bills 234 238 306 164 Deposits- Government debt io9; 109 109 116 Government 9289 :8,733 !8,127 16, 313 Note circulation 974 ' 981 1, 094 977 Bankers 112 : 6,187 ! 5.71S 1,876 Deposits 59 53 64 45 Other 1,480 2102 :2,341 3.101 1 Ratio of gold and notes in banking department to deposit liabilities. 2 Notes issued, less amounts held in Danking department and in currency note account. 3 Figures arc for Mar. 1, 1930. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

252 FEDERAL RESERVE BULLETIN APRIL, 1930 CONDITION OF CENTRAL BANKS—Continued [Figures are for the last report date of month] 1930 1930 1929 i Febru-' Janu- Decem-] Febru- Febru- Janu- Decem- February ary ber ary ary ary ber ary Bank of Finland (millions of Fin- Bank of Poland (millions of zlotys): nish marks): Gold at home 521 521 521 426 Gold 301 301 302 , 303 Gold abroad . . 180 180 180 195 Balances abroad and foreign Foreign exchange of the reserve. . 360 372 419 544 credits 739 705 670 698 Other foreign exchange 100 101 108 154 Foreign bills.. 16 15 21 14 Loans and discounts .. -- 739 756 781 745 Domestic bills 1,223 1,147 1,213 i 1,360 Note circulation 1,282 1,247 1,340 1,249 Note circulation. 1,369 1,259 1,361 i 1,523 Current account of the treasury.. 290 300 271 387 Demand liabilities 342 308 237 i 376 Other current accounts 166 154 196 206 Bank of Greece (millions of drach- j Bank of Portugal (millions of escumas): i dos): Gold i 648 644 640 560 Gold 9 9 9 9 Net foreign exchange in reserve. _ 2,537 2, 474 ! 3,446 ,| Balances abroad 275 313 332 329 Total foreign exchange 3,739 3,830 4,135 I 4,605 ;! Bills 359 361 354 280 Loans and discounts 340 377 325 | 127 I Note circulation 1, 905 1,972 2,001 1,880 Government obligations _ 3,513 3,596 3,596 ! 3,790 i| Deposits 77 108 98 72 N O o th te e r c s ir ig cu h l t a l t i i a o b n ilities_._ 4 1 , , 8 8 4 7 2 4 4 2 , , 9 0 0 8 7 1 5 1 , , 1 5 9 2 3 9 i | 2 5 , , 1 4 3 6 6 5 i !| Na o t f i o le n i a ) l : Bank of Rumania (millions National Bank of Hungary (mil- Gold at home 5, 307 5,280 5,266 4 5,011 lions of pengos): Gold abroad 3, 919 3,919 3,919 * 3, 264 L G Fo o o r a l e d n i s g n a n b d i ll d s i , s e c t o c unts , 2 1 2 2 6 5 7 3 2 1 9 1 6 3 8 3 i ! 3 1 3 2 6 9 9 3 I ' 2 31 0 4 4 4 3 F L O o o th r a e e n i r s g n f a o n r e d e x i c g d h n i a s n e c x g o c e u h n o a t f s n g th e e reserve.. 9 3 , , 6 6 1 2 6 0 2 1 5 9 , , 0 5 6 2 3 3 9 9 6 9, , 7 7 1 4 4 8 5 4 5 12,104 Advances to treasury | 83 88 ! 92 State debt 5,197 5,469 5,631 4,000 N O o th te e r c a ir s c s u et l s a tion- _ i | 4 9 4 3 1 4 9 7 7 6 I I 501 4 1 5 1 1 4 N De o p te o s c i i t r s culation 19 8 , ,4 5 8 1 7 8 1 9 9 , , 0 7 9 6 7 7 2 9 1 , , 3 1 8 5 9 0 2 4 0 , , 3 07 8 4 5 Deposits _.- j 77 63 i 98 216 State Bank of Russia (thousands of Miscellaneous liabilities 46 94 ' 60 75 chervontsi): Loans and discounts 472,486 473, 734 356, 212 Bank of Java (millions of florins): Deposits 268, 314 268, 790 206, 375 Gold 139 140 140 i 169 Issue department- Foreign bills I 31 31 23 ! 37 Gold 28, 567 28, 570 17, 885 Loans and discounts j 95 112 ! 86 Other precious metals 3,414 3,461 4,340 Note circulation 275 279 289 I 300 Foreign exchange 6,687 7,077 9,219 Deposits. 32 37 38 I 50 Note circulation 150,027 153, 697 108,365 Bank of Latvia (millions of lats): South African Reserve Bank (thou- F G o o r l e d ign exchange reserve. 4 2 6 4 I ! 2 7 4 1 san G d o s l d of pounds sterling): 7, 680 7,914 7,495 7,757 Bills.. 95 ! 82 Foreign bills.. 6,237 6,027 6,567 7,064 Loans 56 ' 47 Domestic bills 2,333 3,081 3,167 933 Note circulation.. 49 : 44 Note circulation 9,032 9,156 9,173 8,083 G O o th v e e r r n d m ep e o n s t i t d s eposits 9 7 2 4 ' i \ 10 7 2 5 Depo G s o it v s— ernment 2,573 1,740 1,839 2,038 Bankers. ... . 4, SCO 5,178 4,755 4,964 Bank of Lithuania (millions of litas): Others _ 250 386 626 263 Gold.. 35 I Bank of Spain (millions of pesetas): Foreign currency 76 ! Gold 3 2,467 2,567 2,566 2, 559 Loans and discounts Silver 3 714 711 705 713 Note circulation 95 | Balances abroad 3 185 86 103 93 Deposits _ Loans and discounts 3 2,041 2,062 2, 209 1, 696 Note circulation 3 4, 431 4,399 4,433 4, 294 Netherlands Bank (millions of Deposits 3 889 1,017 924 1,029 florins): Gold... 437 440 448 435 Bank of S weden (millions of kronor): Foreign bills 201 217 220 ! 167 Gold . . 244 244 245 235 Loans and discounts 130 141 182 j 172 Foreign bills, etc 234 237 266 199 Note circulation-. _ 782 787 851 776 Loans and discounts 298 296 411 331 Deposits 23 34 33 ! 32 Note circulation 534 521 569 499 Deposits _ 166 183 272 186 Bank of Norway (millions of kroner): Swiss National Bank (millions of Gold 147 147 147 i 147 francs): Foreign balances and bills 27 30 59 i 36 Gold 561 560 595 482 Domestic credits 233 233 240 | 266 Foreign balances and bills 344 378 353 181 Note circulation ._ 297 298 301 Loans and discounts 120 135 224 241 Foreign deposits 2 3 ! 2 Note circulation 893 890 999 843 Total deposits 68 71 91 Demand deposits _ 129 188 200 7< Reserve Bank of Peru (thousands of National Bank of the Kingdom of libras): Yugoslavia (millions of dinars): Gold 3,861 3, 836 : 4,266 Gold 96 96 95 91 Gold against demand deposits._. 555 580 : 150 Foreign notes and credits 291 276 268 185 Foreign exchange reserve 673 677 i 815 Loans and discounts 1, 377 1,434 1,518 1,614 Bills 2,659 3,177 1, 574 Advances to State 2,999 2,999 2,999 2,966 Note circulation. _ 6,102 6,523 6,021 Note circulation 5, 5(;0 5,586 5,818 5,159 Deposits 1,110 1,160 300 Deposits 1,409 1,372 1,411 750 3 Figures are for Mar. 1. « Converted into the terms of the leu adopted Feb. 7, 1929. 5 Foreign exchange not reported separately. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

APRIL, 1930 FEDERAL RESERVE BULLETIN 253 CONDITION OF COMMERCIAL BANKS [Figures are for the last report date of month except for London clearing banks, which are daily averages] 1929 1930 I Jan. Feb. | Mar. j Apr. ! May June ; July ; Aug. Sept. | Oct. i Nov. Dec. Jan. j Feb. Canada (millions of dollars): Gold coin and bullion 1 64 63 64 I 64 61 62 61 61 62 61 61 ! 60 Money at call and short notice 595 597 560 564 I 594 594 577 584 594 521 532 507 449 ' 428 Current loans and discounts. 1,481 1,506 1,560 1, 572 1, 5591,566 i. 1,5721,585 1,639 1,715 1,684 1,653 1,641 j 1,628 Public and railway securities . 530 530 524 516 I 523 525 : 470 462 487 487 475 448 431 423 Note circulation _. 158 162 189 171 I 168 187 ! 170 190 197 185 187 175 156 159 Individual deposits 2,595 2,560 2,560 2,596 i 2,560 2,559 '2,578 2,551 2,654 2,679 2,636 2,605 2,485 !2,455 Gold reserve against Dominion notes. 59 59 58 59 i 59 59 ; 59 60 60 60 63 ; 63 Dominion note circulation j 198 192 205 205 I 197 210 196 199 201 212 ! 234 204 173 ! 169 Argentina (millions of gold pesos): j j Bank of the Nation i Gold. 125 125 125 i 106 ! 102 78 67 65 59 i 41 30 30 7 Other cash 148 144 125 ' 133 I 130 125 129 126 126 . 128 ! 120 85 124 Loans and discounts.. 511 525 531 i 543 j 549 569 561 572 : 574 l 588 ! 601 620 584 Deposits 778 780 772 I 773 ! 769 777 761 761: 750 ! 743 • 739 733 731 I Other banks in Buenos Aires L G O o o th a ld n e r s c a a n s d h discounts ._, | 8 2 5 0 1 1 2 2 8 1 6 1 9 2 2 7 ! i j 8 1 7 1 9 0 2 0 17 1 0 5 8 1 7 1 8 7 1 0 8 1 7 8 1 3 4 3 8 1 8 1 6 3 2 2 , : 8 1 8 1 6 2 4 7 : i , 8 1 9 6 1 3 6 2 i I ' . 8 1 8 3 8 154 8 1 8 1 5 9 2 5 1 1 5 1 6 i ! 9 1 0 1 7 8 1 0 Deposits i 1,018 1,011 1,027 1,016 1,012 1,015 !1,007 1,011 •1,015 i 1,002 990 1,003 England (millions of pounds) i j ! Cash in vault and at banks. j 198 186 184 188 193 j 190 188 ! 191 i 189 186 201 192 182 Money at call and short notice I 147 136 134 143 143 150 ! 143 144 I 149 151 145 144 142 128 Discounts _ j 274 260 214 191 195 216 234 225 222 ; 227 231 227 243 218 Investments _ 250 246 244 244 244 244 242 , 242 , 242 ; 241 235 236 233 229 Advances 956 968 980 987 977 978 985 980 : 971 i 971 970 971 970 973 D e p o s i t si 1,777 1,739 1,743 1,732 1,770 1,778 1,759: 1,754 !1,765 1,751 1,773 1,767: 1714 France (millions of francs): Bills and national-defense bonds 21,388 21,075 20, 81520, 220 19,883 20, 66419,959 19,299 19,661 20,511 20,903 21,064 Loans and advances 9,842 10,741 10,163 10,467 10,317 9,974 10,598 10,667 '10,773 ilO,825 10,746 10,743 Demand deposits _ _.34, 583 34,982 33,747 33,144 33, 27933, 22632,455 31,548 ;31,833 ,33,313 32,929 32,776 Time deposits._. __ 937 1,080 938 961 956 990 1,003 1,066 i 1,031 I 1,051 1,056 1,074 Germany 2 (millions of reichsmarks): Bills and treasury notes ! ( 2,819 2, 644 2,363 2,132 2, 365 2,365 2, 705 I 2, 807 2, 851 2, 885 (3) 3148 Due from other banks _J ( 1,094 1.243 1,209 1,187 1,228 1,189 1,376 i 1,411 1,434 | 1,230 (3) 1160 Miscellaneous loans ; ( 6,963 7,189 7,138 7,046 6,956 7, 098 7,983 i 8,123 8,107 ! 8, 267 (3) , 8,561 Deposits ___j ( 10,185 10,404 '10,036 9,659 9,908 9,989 11,282 11,588 111, 658 ill, 645 (3) 12035 Acceptances ( 434 441 I 459 491 475 463 509 509 \ 496 487 (3) 525 Italy (millions of lire): Cash L__ 1,163 | 1,178 1,138! 1,103 1,145 j 1,256 Bills discounted _ i 8,938 i 8,628 8,390 ; 8,,4 04 ; 8,,2 60 \\ 88,,442255 Due from correspondents _..' 5, 091 J 5,407 555,,444333777 ; 55,5,50001 1 II 5 6 ;8 59,, 68899'I ' 565I6I ,5,656 Due to correspondents 13, 523 |13, 70i 133,5505 | .1133,555566 .11337,71144 !! ..1133,774477 Deposits | 3,045 ! 3,041 3,061 3,102 : _ 3,115 i I 3,164 Denmark (millions of kroner): j Loans and discounts i 1,' 1,723 1,722 1,739 1,744 1, 767 I 1, 7741,775 775 1,781 I 1,777 1,789 1,787 Due from foreign banks ' : 160 169 I 153 143 143 ! 138 . 145 160 146 138 142 128 !_ Due to foreign banks.__ _.; 94 90 ! 78 71 64 I 66 62 63 60 I 58 71 74 !. Deposits and current accounts ; 1,! 1,940 1,939 | 1,946 1.963 1,955 i 1,952 1,969 990 1,974 ! 1,964 1,961 1,941 i. | I Norway (millions of kroner): Loans and discounts 1,297 1,298 1,294 ! 1,266 1, 250 1,253 i1,266 258 1,252 ! 1,252 Due from foreign banks 124 128 116 : 102 103 102 j 124 129 136 142 . 126 Due to foreign banks 83 82 86 I 86 83 78 i 83 83 85 ! 84 Deposits 587 1,588 1,568 ; 1,5641, 558 1,557 j1,557 1,558 i 555 1,545 1,537 Eediscounts 102 101 102 : 101 100 100 97 102 i 101 101 ! 96 Sweden (millions of kronor): Loans and discounts.... ; 4,119 1 4,187 4,130 i 4,123 4,117 4,130 I 4,179 4,197 4,209 : 4,258 4,257 4,169 4,275 4,324 Foreign bills and credits abroad '• 274 : 266 265 ; 276 253 259 I 277 306 : 346 350 297 294 297 265 Due to foreign banks ; 126 122 151 ' 126 119 112 ; ii7 117 ' 128 146 115 111 125 120 Deposits 3, 530 i 3,527 3,540 •• 3,5243,469 3, 462 I 3, 530 3,530 ! 3,563 3,561 3,521 3,481 3,600 3,621 Rediscounts i 165 | 167 230 ' 209 231 262 ! 191 202 212 176 167 251 156 154 Japan (millions of yen): Cash on hand__ ! 260 ! 344 260 263 344 289 ! 259 301 ! 297 ! 329 | 344 319 276 238 Total loans 2,079 , 2,071 2,097 i 2,056 2,047 2,126 I 2, 087 2.086 2,055 i 2, 039 ' 2, 059 2,160 2,148 2,157 Total deposits.. ! 2,102 I 2,108 2,140 ! 2,109 2,101 2,097 I 2,090 2,106 j 2,077 \ 2,072 2,096 2,089 2,072 2,063 1 Not including gold held abroad. 2 Figures given are not entirely comparable for dates shown. The difference arises from (1) a merger in October, 1929 of 2 included banks—the Deutsche Bank and the Disconto-Gesellschaft—which incidentally involves inclusion for the first time of figures for 4 small affiliates of the latter, and (2) inclusion, beginning August, 1929, of an additional bank—the Berliner Handelsgesellschaft. 3 Figures not available. NOTE.—Banks included are as follows: Canada—chartered banks; Argentina—Buenos Aires banks; England—-9 London clearing banks; France— 4 commercial banks; Germany—6 Berlin banks; Italy—i private banks; Denmark, Norway, and 'Sweden—joint-stock banks; Japan—Tokyo banks. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

254 FEDERAL RESERVE BULLETIN APRIL, 1930 DISCOUNT RATES OF CENTRAL BANKS [Rate prevailing April 1, 1930, with date of latest change] Country Rate I s n i n e e ff e e - ct 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 1 Austria 6 Mar. 22,1930 England-. Wz Mar. 20,1930 Japan 5.48 Oct. 10,1927 Portugal s July 27,1926 Belgium 3^ Jan. 1,1930 Estonia... 8 Oct. 3,1929 ; Java 4K2 Mar. 10,1930 Rumania 9 Nov. 26,1929 Bulgaria 10 July 2,1929 Finland—- 7 Nov. 16,1928 1 Latvia 6-7 Apr. 1,1928 Russia 8 Mar. 22,1927 Chile : 6 Oct. 22,1928 France 3 Jan. 30,1930 Lithuania... 7 Feb. 1,1925 South Africa 6 Aug. 17,1929 Colombia ..: 9 Nov. 20,1929 Germany _ 5 Mar. 25,1930 Netherlands 3 Mar. 25,1930 Spain. 5*> Dec. 19,1928 Czechoslovakia. 5 Mar. 8,1927 Greece 9 Nov. 30,1928 1 Norway Mar. 21,1930 Sweden 4 Mar. 7,1930 Danzig tyi Mar. 8,1930 Hungary.. 6 Mar. 29,1930 Peru 7 Nov. 23,1929 Switzerland. 3^ Oct. 22,1925 Denmark 4^ Mar. 7,1930 India 7 Oct. 31,1929 1 Poland 7 Mar. 14,1930 Yugoslavia.. 6 June 23,1922 Ecuador __; 9 Jan. 10,1930 Italy Mar. 13,1930 i Changes.—Austria—Mar. 22, from 6^ to 6 per cent; Danzig—Mar. 8, from 6 to 5J4 per cent; Denmark—Mar. 7 from 5 to 4^ per cent; England— Mar. 6, from 4H to 4 per cent and Mar. 20 from 4 to 3^ per cent; Germany—Mar. 8, from 6 to r~>y2 per cent and Mar. 25, from hYz to 5 per cent; Hungary—Mar. 29, from 6^ to 6 per cent; Italy—Mar. 3, from 7 to (iYi per cent; Java—Mar. 10, from 5 to 4J-2 per cent; Netherlands—Mar. 7, from 4 to 3H per cent and Mar. 25, from Zl/i to 3 per cent; Norway—Mar. 21, from 5 to 4K> per cent; Poland -Mar. 14, from 8 to 7 per cent; Sweden—Mar. 7, from 4l/2 to 4 per cent. MONEY RATES IN FOREIGN COUNTRIES England (London) Germany (Berlin) Netherlands (Amster- Switzerdam) land Month B a m a n a c o n c c n e k e s t p e h , t r 3 - s s' T m b re i o l a l n s s t , u h 3 r s y rate 1 month money rate d P is r r c i a v o t a e u t n e t 1929—January-__ 4.32 i 4.29 3.41 , 5.80 7.51 5.13 I 4.20 3.28 February.. 5.05 4.96 4.33 i 5.80 7.07 6.33 ! 4.39 3.31 March 5.33 j 5.30 4.51 6.31 7.30 6. 97 | 4.64 3.39 April 5.21 5.18 4.43 i 6.63 7.57 6.85 i 5.36 3.45 May 5. 21 ! 5.21 4.67 7.49 9.65 9.32 | 5.37 3.34 June __ 5.32 | 5.35 4.23 7. 50 , 9.89 7.90 I 5.30 3.26 July 5.38 j 5.39 4.54 ; 7.39 9.35 8.21 5.20 August 5.47 ' 5.48 4.35 i 7.18 : 9.43 7.42 5.06 September. 5.59 I 5.63 4.39 I 7.18 9.48 7.86 5.36 October.__ 6.13 : 6.19 5.45 : 7.28 9.06 8.06 5.15 November- 5.35 , 5.30 5.15 6.89 8.29 7.79 4.20 December. 4.76 ! 4.75 4.23 , 8.78 8.14 3.52 1930—January... 4.0? i 4.04 3.62 : 6.33 '• 7.71 6.03 2.99 February __ 3.82 ! 3.72 3.76 l 5.53 6.72 6.01 *>2. 77 Sweden ; ( B B e r l u g s i s u e m ls) ( F P r a a r n i c s) e (Milan) Austria (Vienna> Hungary ( h S o to lm ck ) - Japan (Tokyo) Month Private Private Private Private Money Prime Loans up Call dis r c a o te unt dis r c a o te unt dis r c a o te unt dis r c a o te unt m fo o r n t 1 h c c i o al m p m ap er e - r to 3 Disc b o il u ls nted ov m e o rn n i e g y ht 1929—January 3.94 I 3.50 5.83 7U-SH 6H-&H 4^,-6 y. 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 i 3 3. . 3 3 7 9 6 6 . . 0 3 0 1 6*4 7 7H H - - 8 S W H J 6J4-8J4 41,^-6 Yi 5 5 . . 6 6 8 6 - - 5 5 . . 8 8 4 4 2 2 . . 0 1 1 9 - - 4 4 . . 0 0 2 2 April 3.94 : 3.44 6.75 -7% \ -9 5.48-5.66 3.47-4.02 May__ 3.94 ! 3.49 6.83 \ 7% --77H 8 -9 4i^_gi,^ 5.48-5.66 2. 56-4.02 June 3.94 | 3.50 6.75 !' \ -7J4 8)4-9 7 -9 ! 41^-6 H 5.48-5.66 2.56-4.02 I July 4.00 i 3.50 6.75 8K-9 834-10 I 7 -8H 4H-6V6 5.48-5.66 2.74-4.02 August 4.93 i 3.50 6.85 7H -7 8J4-9 8^4-10H 7 -8 ! 4 l/^-g y± 5.48 2. 56-4. 02 September., 4.94 : 3.50 7.01 814-914 894-10K 5^-7 5.48 1.64-4.02 October 4.94 i 3.50 7.18 9 -10 9 -10 U hYi-7 5.48 2.92-4. 02 November- 4.62 j 3.50 7.00 73/4 -8W 83,4-10 SH -9% hM-7 5.48 2.74-4. 02 December. _. 4.37 I 3.50 7.00 ! 7H -7% 8^-9 J4 3 7 -7H\ 5H-7 5.48 2.19-5.84 1930—January 3.40 ' 3.38 7.oo :6}^ -7% 5 71 >-10 43^-6 5.48 1. 64-4. 02 February 3.42 ; 2.91 6.95 | 7 -8 v Preliminary. NOTE.—For sources used, methods of quotation, and back figures, see BULLETIN for November, 1926, April, 1927, July, 1929, and November, 1929. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

APRIL, 1930 FEDERAL RESERVE BULLETIN 255 FOREIGN EXCHANGE RATES [Monthly averages of daily quotations.1 In cents per unit of foreign currency! 1930 1930 i Par Par Country Monetary unit ; of ex- Country i Monetary unit of ex- | change January : February March January February March EUROPE SOUTH AMERICA: Austria Schilling. 14.07 14.0597 14. 0605 14. 0705 Argentina \ Peso 96. 91. 3355 86. 5311 85.6357 Belgium Belga 13. 90 13.9377 13. 9271 13. 9373 Bolivia2 i Boliviano 36.50 36. 0000 36. 0000 36.0385 Bulgaria Lev. .72 7213 .7212 .7216 Brazil i Milreis 11.96 11. 0857 11.1533 11.5012 Czechoslovakia.._ Crown. 2.96 2*.9583 2. 9590 2. 9622 Chile— I Peso. 12.17 12. 0556 12.0319 12.0518 Denmark Krone— 26. 80 26.7517 26. 7532 26. 7693 Colombia 2 i do 97.33 96. 3900 96. 3900 96. 3900 Ecuador2 j Sucre | 20.00 20. 0000 20.0000 20. 0000 England ! Pound 486. 65 486. 8823 486.1785 486. 3085 Peru2 Libra J486.65 400. 0000 400.0000 400.0000 Finland.. I Markka 2. 52 2. 5160 2. 5162 2. 5166 Uruguay Peso 103.42 92. 9796 88. 9679 89. 0137 France ! Franc 3.92 3. 9291 3. 9155 3. 9132 Venezuela 2—_j Bolivar 19.30 19. 2500 19. 2500 19. 2408 Germany ' Reichsmark 23.82 23.8821 23. 8711 23.8573 Greece j Drachma 1.30 1. 2976 1. 2962 1. 2960 Hungary I Pengo 17.49 17. 4912 17. 4769 17.4738 China4 ! Mexican dollar. 32.73 35. 6106 34. 3963 33. 8100 Italy ! Lira _ 5.26 5. 2331 5. 2346 5. 2375 China4 \ Shanghai tael._ 45.45 49.6186 47. 9616 47.1132 Netherlands ' Florin 40.20 40. 2279 40.1028 40.1066 China4 I Yuan dollar 32.97 35. 5497 34. 2746 33.6009 Norway j Krone 26.80 26. 7347 26. 7212 26. 7589 Hong Kong 4__ Dollar • 32.24 39. 9497 38. 2350 37. 2238 Poland j Zloty 11.22 11.1973 11.1935 11. 2027 India.._ _.i1 R- upee : 36.50 36. 3102 36. 2071 36.1138 Portugal--. Escudo 108. 05 4.4969 4. 4957 4.4930 J Ja a v p a a n2. . ___| Y Fl e o n r in. _ _ 4 4 9 0 . .2 8 0 5 4 4 9 0 . . 1 0 7 9 6 0 9 5 4 40 9 . . 0 1 7 2 9 9 1 5 4 49 0 . . 1 3 3 2 6 9 5 8 Rumania Leu_ __- .60 . 5962 . 5950 .5953 Straits Settle- Singapore dol- 56.78 56. 0259 56. 0006 55. 8994 Russia2 Chervonetz. 514. 60 515. 0000s 515.0000 '515. 0000 ments. lar. Spain Peseta 19.30 13.1044 12. 6955 12. 3131 Turkey Turkish pound.439.65 5 46. 89296 46. 7776 7 47.3035 Sweden Krona 26.80 26. 8460 26. 8262 26. 8563 Switzerland Franc. 19.30 19.3486 19. 2938 19. 3453 AFRICA i Yugoslavia Dinar. 19.30 1. 7658 1. 7604 1. 7637 Egypt... j Egyptian pound 494.31 5 500.23896 500.6147 M99.2997 NORTH AMERICA Canada Dollar 100.00 98. 8932 99.2408 99. 7637 Cuba Peso.. _-100. 00 99. 9247 100. 0313 99. 9596 Mexico do 49.85 47.4393 47.4758 47.4921 1 Based on noon buying rates for cable transfers in New York. 2 Averages based on daily quotations of closing rates as published by New York Journal of Commerce. 3 Chervonetz quotations nominal. 4 Silver currency. The figure given for parity represents gold value of unit in March, 1930, computed by multiplying silver content of unit by New York average price of silver for March, 1930, which was $0.41959 per fine ounce. On the same basis, parity in March, 1929, for the Chinese- Mexican dollar was 44.52 cents; for the Shanghai tael, 61.37 cents; for the Yuan dollar, 43.54 cents; and for the Hong Kong dollar, 44.19 cents. « November, 1929. e December. 1929. 7 January, 1930. Back figures—See BULLETIN for January, 1930, 1929, and 1928. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

256 FEDERAL RESERVE BULLETIN APRIL, 1930 PRICE MOVEMENTS IN PRINCIPAL COUNTRIES WHOLESALE PRICES ALL COMMODITIES Base of index and country 1929 1930 (See note) Jan. Feb. Mar. Apr. May June July Aug. Sept. Oct. Nov. | Dec. Jan. Feb. Base: 1926=100 United States 97 97 98 97 96 96 ' 98 98 98 96 94 94 93 92 Base: 1927=100 Poland 98 99 99 98 95 95 96 95 94 93 95 i 92 88 85 Base: 1926=100 Canada _. T QA 96 96 94 92 93 ! 96 98 , 97 97 96 i 96 96 94 Finland 100 100 100 99 98 98 97 97 96 96 95 ! 95 94 93 Base: 1914=100 Australia 157 156 157 158 156 158 ! 159 160 163 161 158 j 154 151 147 Austria 128 130 133 134 135 134 132 132 128 127 125 123 125 123 Belgium 867 865 869 862 851 848 858 850 846 838 834 ! 823 808 791 Czechoslovakia. ._ 139 139 141 141 137 134 135 134 132 131 130 j 128 126 124 India 145 144 143 140 139 138 142 143 143 140 137 134 131 126 Switzerland 143 143 142 140. 139 139 143 143 142 142 140 i 139 136 133 Base: 1913 = 100 China 160 162 164 161 162 163 163 165 167 168 165 165 170 175 Denmark 151 159 154 150 148 146 149 150 150 149 147 ; 146 143 140 Dutch East Indies 149 149 150 148 150 149 149 148 148 147 146 i Egypt 125 122 123 120 114 108 109 112 113 115 112 ' 110 109 ; ]06 England _ 138 138 140 139 136 136 137 136 136 136 134 i 133 131 : 128 France __ 657 660 654 648 643 629 624 598 608 607 603 ; 596 578 , 569 Germany 139 139 140 137 136 135 138 138 138 137 136 134 132 : 129 Hungary _ 132 136 136 135 123 122 119 114 109 111 107 107 106 Italy 461 463 461 455 452 '446 440 437 1 437 436 431 425 417 408 Netherlands 146 146 147 ]44 142 141 141 142 , 141 140 137 135 131 , 126 Norway. _ _ 149 150 150 148 146 147 149 148 148 147 146 146 144 i 143 Peru 186 185 189 185 186 186 187 187 186 186 184 , 182 181 : 181 Russia 177 177 178 179 180 181 180 180 181 182 181 i 182 182 Spain 171 173 174 174 171 170 169 170 171 172 171 172 Sweden 144 145 144 141 140 139 140 141 140 138 135 134 131 ! 128 Base: 1910=100 South Africa 135 131 129 128 121 Base: 1909-1913=100 New Zealand 155 154 155 154 155 155 156 156 157 156 155 154 Base: 1900=100 Japan _ 228 226 226 225 223 222 220 218 . 218 216 211 205 201 ! 199 » Corrected. p Revised. ANNUAL INDEXES NOTE The foregoing table, first published in this form a Base of index and country 1926 • 1927 1928 1929 month ago, contains for the countries listed the same index numbers that have heretofore appeared in the BULLETIN, but with more precise information regard- Base: 1926=100 ing base periods. In the case of three countries for United States 100 ! 95 which the index was formerly shown on a 1913 base, Base: 1927=100 Poland 106 89 i 100 101 96 the old series may be continued by dividing the index numbers given by the following yearly averages for Base: 1926=100 Canada 64 103 100 96 95 1913: Japan, 132.3; New Zealand, 105.5; South Africa, Finland 104 100 102 98 112.5. In the case of one other country, Czechoslovakia, Base: 1914=100 (see note) the index now appears in revised form (gold basis). Australia 159 161 j 159157 158 All of these index numbers, with a few exceptions, A Be u l s g t i r u ia m 5 1 5 3 8 6 7 1 4 2 4 3 i ! 8 1 4 3 7 3* 8 1 4 3 3 0 * 8 1 5 3 1 0 are published currently in the Monthly Bulletin of Czechoslovakia 139 I 143 143 135 Statistics of the League of Nations (Geneva) and the India .1- 159 148 148 145 141 Monthly Bulletin of the International Institute of Switzerland 162 144 142 145 141 Statistics (The Hague). For France and Poland, for Base: 1913=100 I which the figures published by the League and the China 159 164 170 i 161 164 Denmark 100 ... 210 163 153 i 153 150 Institute belong to a different index, see the following Dutch East Indies 100 L. 166 159 154 j 149 148 sources: France—Bulletin de la Statistique Generale; Egypt 152 132 121 ! 120 115 Poland—Polish Business Conditions, published by E H I F G t r n a u e a g l r n n y m l g c a a e a n r n d y y 1 i 1 1 o 0 0 0 o 0 0 0 j ! . i . 100 1 5 5 9 9 6 6 1 6 1 9 4 0 3 5 8 2 4 6 4 1 1 9 4 4 3 5 2 1 8 | ! I 6 4 1 1 4 6 4 4 5 2 0 0 6 4 1 1 1 2 4 2 3 3 7 6 1 7 7 t d h a e r T h P y e e o a l b i r s s a h , s e t I h n p e s e t r a i i v t o u e d t r s e a g s o e h f o f w E o c r n o t n i h n o e m t y h i e c e a r t R a ( b e o s le r e a p r r e e c r l h i a o . t d e t o o f c y a e l a e r n s - ) Netherlands I 110000 109 | 155 ; 145 148 149 142 representing 100. In certain cases, however, the base Norway... 251 s 196 160 155 148 period more exactly described is a selected month or P Sp er a u in i I 1 1 0 0 0 0 ! ! 1 1 0 0 4 1 2 1 0 8 2 8 ! i 2 1 0 8 3 1 2 1 0 7 3 2 1 1 9 6 2 7 1 1 8 7 6 1 selected series of months, as follows: Australia—July, Sweden 100 I 161 i 149 146 148 140 1914; Austria—January-July, 1914; Belgium—April, Base: 1910=100 | i 1914; China—February, 1913; Czechoslovakia—July, Sou B th a s A e: fr 1 ic 9 a 0 9-1913=100 I j 113 j I 109 I 144 | 139 ! ; 140 | J 135 131 J 19 u 1 l 4 y ; , E 19 gy 1 p 4 t ; — J J a a p n a u n a — ry O ct 1 o , b e 1 r 9 , 13 1 -J 9 u 0 ly 0 ; 3 N 1, o r 1 w 91 a 4 y— ; D I e n c d e i m a- - New Zealand ! 106 I 110 | 170 i 162 ! 154 156 155 ber 31, 1913-June 30, 1914; Switzerland—July, 1914. Base: 1900=100 i ' j i All of the indexes shown, with two or three excep- Japan ! 132 : 126 ! 267 ; 237 ; 225 ! 226 220 tions, are compiled by official agencies of the countries to which they relate, as indicated specifically in the *New series. BULLETIN for March (p. 124). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

257 APRIL, 1930 FEDERAL RESERVE BULLETIN WHOLESALE PRICES—Continued GROUPS OF COMMODITIES Annual indexes 1929 1930 Country and group 1913 j 1925 1926 1927 1928 1929 Feb. Oct. Nov. : Dec. Jan. ; Feb. UNITED STATES Farm products 72 ; 110 100 106 105 105 107 104 101 101 98 Foods 64 j 100 ! 100 101 100 98 103 101 99 97 ! 96 Hides and leather products.. 68 ! 105 100 108 122 109 109 111 111 i 108 : 107 105 i 104 Textile products 57 ! 108 100 96 96 94 96 93 93 ! 92 90 89 • 88 Fuel and lighting materials. 61 ' 97 100 87 83 82 81 81 82 ; 82 81 80 79 Metals and metal products.. 91 103 i 100 98 100 104 104 104 104 I 102 102 101 101 Building materials 57 102 100 93 94 97 98 98 98 : 96 96 96 96 Chemicals and drugs 80 102 100 97 96 94 22 94 94 i 94 : 94 93 92 Hqusefurnishing goods 56 103 100 97 97 97 ! 97 97 97 97 Miscellaneous 93 109 i 100 83 81 | 80 , 79 79 Xonagricnltural commodities. _. 69 101 I 100 94 96 94 94 95 94 93 ; 92 ENGLAND ! Total food 100 167 : 155 152 152 145 149 143 145 i 142 j 141 : 139 135 Cereals 100 164 ; 150 153 149 138 142 141 137 ! 132 ! 132 ; 129 122 Meat and fish 100 162 j 154 137 141 146 144 : 143 148 i 150 ! 158 i 154 152 Other foods 100 173 ! 160 166 167 152 160 ; 145 150 : 145 • 135 135 133 Total not food 100 155 ! 144 136 134 132 133 ; 132 131 ; 129 j 128 ! 127 124 Iron and steel 100 126 , 124 120 112 114 113 : 115 115 j 115 ' 115 115 115 Coal 100 146 ! 185 134 118 125 123" ! 126 128 ! 128 ; 130 130 ! 129 Other minerals and metals. 100 122 I 120 112 107 116 114 , 116 114 i 111 • 111 I 110 110 Cotton 100 210; 158 155 164 154 159 j 154 152 147 144 ! 141 ' 134 Wool 100 197 i 170 170 186 166 177 • 158 154 156 : 152 145 135 Other textiles 100 172 ; 148 138 138 132 136 ! 132 130 127 125 123: 120 Miscellaneous 100 157 : 145 142 142 136 137 138 | 137 134 131 130 129 FRANCE i Farm V e a g n e d t a f b o l o e d p r p o r d o u d c u t c s t . s _ .. _ 1 1 0 0 0 0 i I. 5 6 8 0 1 0 i ! 5 6 9 2 9 5 5 59 8 9 4 5 5 7 4 9 7 6 60 2 7 0 j 551 i ! 4 5 8 5 7 6 4 5 7 5 6 5 ; 4 5 5 4 6 6 4 5 3 1 2 8 • ; 4 5 2 0 2 7 Animal products 100 ! 550 I 558 567 632 642 639 ! 670 686 695 661 648 Industrial products 100 793 | 678 697 669 693 656 | 652 645 640 630 623 Minerals and metals. 100 ! 598 ! 526 522 560 551 561 j 567 566 568 , 571 : 570 Textiles.. 100 ! l.ooi ; 821 840 755 812 i 725 705 694 684 '655 i 639 Hides and leather 100 '546 | 532 617 471 530 452 455 432 433 438 ' 439 Chemical products._. 100 683 i 589 580 596 590 603 608 606 603 602 610 Rubber... 100 314 ! 199 130 123 141 117 114 96 97 89 : 94 Paper 100 875 j 662 659 678 677 677 677 685 685 685 667 Lumber 100 791 ! 750 844 963 930 969 1,003 1,003 987 987 987 Cement, brick, glass. 100 540 : 606 570 618 592 j 636 636 636 636 708 I i GERMANY Total agricultural products 100 i 133 129 . 138 134 130 134 133 i 132 128 126 122 116 Vegetable foods 100 i 127 131 : 154 142 126 132 125 ! 122 , 119 : 120 : 117 112 Cattle 100 I 120 121 112 111 127 120 134 134 ; 128 126 128 . 123 Animal products 100 162 146 ; 143 144 142 151 149 153 153 : 146 134 129 Fodder 100 122 115 : 146 147 126 140 120 113 : 107 105 98 Provisions 100 136 132 ; 129 133 125 125 131 126 120 115 115 ! Total industrial raw materials and semifinished products 100 141 130 : 132 134 132 134 132 | 131 130 129 : 128 : 127 Coal 100 129 128 ; 129 132 137 139 137 | 138 139 138 : 138 l 138 Iron _. 100 129 ' 124 ' 125 128 130 128 131 131 130 130 i 130 ; 129 Nonferrous metals. 100 123 117 I 108 106 118 118 118 116 : 113 112 112 111 Textiles 100 191 150 153 159 141 149 136 133 130 128 125 118 Hides and leather 100 125 115 j 134 153 125 131 i 122 121 118 116 : 116 114 Chemicals 100 127 123 : 124 126 127 126 ; 127 127 127 127 ' 127 . 127 A R Te r u t c b i h f b i n c e i i r c a a l l fe o r i t l i s l i a z n er d s fats 1 1 1 0 0 0 0 0 0 1 8 9 3 8 4 8 1 8 6 3 6 3 1 '• ; I • 1 8 4 2 3 7 6 | | i 1 8 3 2 2 0 1 1 8 2 2 5 8 8 1 8 3 2 7 4 6 i 1 8 2 3 2 8 4 1 8 2 3 2 6 2 ' 1 8 2 2 3 3 9 1 8 2 3 4 2 0 •• 1 8 2 2 5 1 8 1 8 2 2 6 2 7 Paper materials and paper 100 159 152 i 150 ; 150 151 151 151 151 152 151 151 150 Building material 100 153 145 | 158 ' 159 159 157: 162 162 161 161 i 158 158 Total industrial finished products.. 100 157 150 ' 147 159 157 158 : 157 157 157 156 156 155 Producers' goods.. 100 136 133 ! 130 137 139 138 : 140 140 139 140 : 140 139 Consumers' goods 100 172 162 ! 160 175 172 174 , 170 170 169 169 168 166 NOTE.—For corresponding indexes for all commodities see preceding page. For current figures of the group indexes given in this table the following sources may be used: United States—Wholesale Prices of Commodities, Bureau of Labor Statistics, Department of Labor; England- Board of Trade Journal and Commercial Gazette, Board of Trade; France—Bulletin de la Statistique Generale de la France, Supplement Mensuel, Statistique Generale de la France; and Germany— Wirt?ohaft und Statistik, Statistisches Reichsamt. ' Revised. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

258 FEDERAL RESERVE BULLETIN APRIL, 1930 LAW DEPARTMENT DIGEST OF STATE LAWS RELATING TO BRANCH ALABAMA BANKING Branches prohibited.—"No bank, or any officer, On page 182 of the FEDERAL RESERVE BUL- agent or director thereof, shall be permitted to establish LETIN for March, 1925, there was published a a b u b si r n a e n s c s h , o o t r h e o r f f t ic h e a n f o a r t i t t h s e p r tr in a c n i s p a a c l t i p o l n a ce o f o f t h b e u s b i a n n e k ss in .7 g ' digest of State laws relating to branch banking, (1928 Combined Banking Laws of Alabama, sec. 6354, which was prepared by the counsej/s.office of the p. 25; Civil Code of Alabama, sec. 6354.) Federal Reserve Board with the assistance of the counsel to the various Federal reserve ARIZONA banks, and which showed the status of branch Branches permitted.—Banks and trust companies in banking legislation in the various States at the this State may establish branches if they have the close of the year 1924. The following digest of capital required by law and if the consent of the superintendent of banks is obtained. The superintendent the branch banking laws of the several States, of banks may give his consent if the public convenience which was also prepared by the office of the and advantage will be promoted by the opening of such board's counsel with the assistance of the coun- branch, and he may withhold such consent if he is sel to the various Federal reserve banks, super- satisfied that the opening of the branch is undesirable sedes the digest published in the March, 1925, or inexpedient. (Banking Laws, 1922, sec. 21, p. 17; Special S. L. 1922, ch. 31, sec. 21, p. 131.) FEDERAL RESERVE BULLETIN, and shows the Capital required.—''Before any such branch office is status of branch banking legislation in the vari- authorized, the corporation proposing to establish the ous States as of December 31, 1929. It con- same shall have a paid-in capital and surplus of not less tains a digest of only such State laws as relate than fifty thousand dollars, plus fifteen thousand dollars of additional capital and surplus for each and every to branches established within the United branch so authorized." (Banking Laws, 1922, sec. States and does not cover laws relating to 21, p. 18; Special Session Laws, 1922, ch. 31, sec. 21, branches established in foreign countries. p. 131.) ARKANSAS SUMMARY OF STATE LAWS Branches prohibited.—"* * * the return of which said copy (certificate of incorporation) so indorsed and the filing of the same for record with the States permitting States having no b t S i r n a ta g n t c e s h s ta p b te e a - r n w m k i i i d n t- e g ba li n m k b i i t n r e a g d n w c a h r i e th as in Sta in t b e g s a n b p k r r a o in n h g c i h bit- rega le r b d g a i i n n sl k g a i t b n io r g a n nch c t ( o b o a u p n n r k t o y c o e c r e l e d t r r k u w s o i t t f h c t h o i e t m s c p b o a u u n s y n i ) t n y e i s s i s n , l o w b c h u a i t t c e h w d , t i h th s e h a s o l a n l i l d y a u i o n th n s o e ti r t i u o z f t e f i i o c i n e t for the transaction thereof in only the one town or city Arizona. Georgia.1 Alabama. Kentucky.2 as to which the application has been made." (Banking California. Louisiana.3 Arkansas. Michigan.4 Statutes, 1929, sec. 14, p. 9; sec. 13 of Act 113 of the Delaware. Maine.5 Colorado. New Hampshire. act of 1913, as amended by acts of Arkansas, 1923, Maryland. Massachusetts.6 Connecticut. North Dakota. North Carolina. Mississippi.7 Florida. Oklahoma. p. 519.) R So h u o t d h e C Is a l r a o n li d n . a. N N e e w w J Y e o rs rk ey .9 .8 I Il d l a in h o o i . s. S W o y u o th m D in a g k . ota. CALIFORNIA Vermont.10 Ohio," Indiana. Virginia. Pennsylvania.12 Iowa. Branches permitted.—"No bank in this State, or Tennessee.13 Kansas. any officer or director thereof, shall hereafter open or Minnesota. keep an office other than its principal place of business, Missouri. Montana. without first having obtained the written approval of Nebraska. the superintendent of banks to the opening of such Nevada. branch office, which written approval may be given or New Mexico. Oregon. vithheld in his discretion, and shall not be given by Texas. aim until he has ascertained to his satisfaction that the Utah. dublic convenience and advantage will be promoted Washington. West Virginia. by the opening of such branch office; * * *." "Wisconsin. (Bank act of California, 1929, sec. 9.) Total, 9. Total, 10. Total, 22. Total, 7. Capital required.—For each branch office located in the place of business of the parent bank, the paid-in capital, in cash, must exceed by $50,000 the capital 1 City or municipality. 2 No provisions regarding branches, but court decisions permit estab- required for the transaction of business by a bank in lishment of additional offices or agencies to receive deposits and pay that place. (Bank act of California, 1929, sec. 9.) ch 3 e c M ks u . nicipality or Parish. For each branch office of a bank, other than an * "Industrial "banks" may establish branches in city or village of head exclusive trust company, located in any place in the office; but no provisions covering establishment of branches by other State other than the place of the principal place of banking institutions. business of the parent bank, the amount of paid-in 8 County or adjoining county. 6 Same town. capital, in cash, must exceed the amount required by 7 Same city. law in the sum required for the organization of a bank s Same city, town, township, borough, or village. in that locality, exclusive of the capital required for a » City limits. 10 No provisions regarding branches but state-wide establishment of trust department. (Bank act of California, 1929, "agencies" permitted. sec. 9.) 11 Same city, or city or village contiguous thereto. For each branch of an exclusive trust company 12 Corporate limits of same place, is County. opened or maintained in any place in the State other Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

APRIL, 1930 FEDERAL RESERVE BULLETIN 259 than the place of the principal business of the parent FLORIDA trust company, the paid-in capital, in cash, must exceed by $50,000 the amount required by law for the trans- Branches prohibited.—" The place of business of each action of a trust company business. (Bank act of banking company shall be in the city or town specified California, 1929, sec. 9.) in its charter, and the usual business of any such bank- There are also provisions concerning the discontinu- ing company shall be transacted at an office or banking ance of a branch, increase of capital upon increase in house located in the city or town so specified and not deposits of branches, fee for the opening of a branch, elsewhere." (Banking Laws, 1921, sec. 4139; General penalty for violation of the law covering the establish- Compiled Laws of Florida, 1927, sec. 6070.) ment of branches, advertising by branch, and the establishment of branches by banks located in a city or territory which is annexed by or consolidated with a Branches authorized but restricted as to location.— city or territory of a class requiring a larger capitaliza- Under the provisions of an act of the Georgia Legistion. (Bank act of California, 1929, sees. 9, 19, 23, 28, 60, and 82.) lature approved July 20, 1929, it is provided that "banks chartered under the laws of this State and hav- COLORADO ing their principal office in a city, now, or hereafter having a population of not less than eighty thousand, or more Branches prohibited.—"Every bank shall be conthan one hundred and twenty-five thousand, may ducted at a single place of business, and no branch establish branch banks in the city in which its principal thereof shall be maintained elsewhere." (Banking office is located." (Georgia Laws, 1929, p. 214.) Laws, 1928, sec. 56, p. 31; 1921 Compiled Laws, sec. An act of the Georgia Legislature approved August 2703; S. L. 1913, sec. 48, p. 128.) 17, 1929, provides "that banks chartered under the laws of this State, and having their principal office in a CONNECTICUT municipality, now, or hereafter having a population of Branches prohibited.—"* * * no State bank, not less than 200,000, according to the last census of the trust company, mutual savings bank, or building and United States or any future census of the United loan association shall establish any branch office or States, may establish branch banks in the municipality agency thereof, or employ any agent or person to make in which its principal office is located." This act also loans or discounts at any other place than its banking provides "that all laws and parts of laws in conflict house." (Banking Laws, 1929, sec. 3920, p. 18; herewith be and the same are hereby repealed." General Statutes of 1918, sec. 3920, as amended by (Georgia Laws, 1929, p. 214.) chapter 10, P. A. 1923.) Persons, partnerships, or corporations licensed to IDAHO transact a "small loan" business may not make any loan provided for in the Connecticut small loan com- Branches prohibited.—"No bank shall maintain any pany act "under any other name or at any other place branch bank, receive deposits or pay checks, except of business than that named in the license. Not more over the counter of and in its own banking house: than one place of business shall be maintained under Provided, That nothing in this section shall prohibit the same license, but the bank commissioner shall issue ordinary clearing house transactions between banks." more than one license to the same licensee upon the (Banking and Public Depositary Law, 1925, sec. 84, payment of an additional license fee and the filing of an p. 42.) additional bond for each license." (Banking Laws, ILLINOIS 1929, sec. 8, p. 114; ch. 219, P. A. 1919, as amended by ch. 223 P. A. 1923.) Branches prohibited.—By an act approved June 28, 1923 (Laws of 1923, p. 164), the Illinois Legislature DELAWARE prohibited branch banking, subject to the approval of Branches authorized.—"No bank or trust company the people at the general election of 1924; and at an shall open any branch office or place of business in this election held on November 4, 1924, the act was ap- State unless authorized so to do by the certificate of proved by the people. This act provides: the State bank commissioner." (Banking Laws, 1929, "No bank shall establish or maintain more than one sec. 4, p. 16; Laws of Delaware, 1921, ch. 103, sec. '4, banking house, or receive deposits, or pay checks at p. 288.) any other place than such house; and no bank shall Capital requirements.—"No such certificate shall be establish or maintain any branch bank, branch office or issued by the said commissioner unless satisfied that additional office or agency for the purpose of conducting the applicant has a paid-in capital stock to an amount any of its business." (Smith-Kurd 111. Rev. Stat., equivalent to at least twenty-five thousand dollars for 1927. sec. 9. p. 193.) each office or place of business then established by said On June 4, 1929, an act was approved prohibiting corporation in this State and for the branch sought to branch banking; but this act is subject also to the be established, and a surplus to an amount equivalent approval of the people "at the next general election." to at least twenty-five thousand dollars for each office This act provides: or place of business then established by said corpora- "No bank shall establish or maintain more than one tion." (Banking Laws, 1929, sec. 4, p. 16; Laws of banking house, or receive deposits, or pay checks at Delaware, 1921, ch. 103, sec. 4, p. 288.) any other place than such banking house, and no bank Must be authorized by charter.—"Nothing in this shall establish or maintain in this or any other State section contained shall be deemed to confer on any or country any branch bank, nor shall it establish or corporation the power to establish branches not ex- maintain in this State any branch office or additional pressly authorized by its charter." (Banking Laws, office or agency for the purpose of conducting any of 1929, "sec. 4, p. 16; Laws of Delaware, 1921, ch. 103, its business." (Cahill 111. Rev. Stat., 1929, sec. 9, p. 164; sec. 4, p. 288.) Laws of 1929, p. 178.) Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

260 FEDERAL RESERVE BULLETIN APRIL, 1930 capital shall operate not more than three branches; of more than one hundred thousand dollars, but not Branches prohibited.—"That it shall be unlawful for more than two hundred thousand dollars capital any person, firm, or corporation engaged in the busi- shall operate not more than five branches; of more ness of operating a State bank, private bank, savings than two hundred thousand dollars, but not more than bank, or loan, trust, or safe deposit company to open two hundred and fifty thousand dollars shall operate or establish a branch bank or branch office: Provided, not more than six branches; of more than two hundred That the provisions of this section shall not apply to and fifty thousand dollars, but not more than three branch banks or branch offices for which charters have hundred thousand dollars capital shall operate not heretofore been granted." (Banking Laws, 1929, p. more than seven branches; and for each additional 139; Acts of 1921, p. 367.) hundred thousand dollars capital stock shall operate not more than one additional branch: And provided IOWA further, That before any savings, safe deposit, or trust and savings bank' shall open a branch office Branches prohibited.—"No banking institution shall under the provisions of this act, said savings, safe open or maintain any branch bank, or receive deposits deposit, or trust and savings bank must first obtain or pay checks, other than at its principal place of busia certificate of authority from the State bank comness." (Banking Laws, 1929, sec. 9258-bl, p. 32; act missioner: And provided further, That whenever any approved April 18, 1927, 1927 S. L. ch. 206, p. 181.) such banks shall have taken advantage of the provisions of this act and section, and shall have estab- KANSAS lished one or more offices of discount and deposit within the limits of said municipality or parish, no Branches prohibited.—"The general business of future political or legal subdivision of said municievery bank shall be transacted at the place of business pality or parish shall have the effect of in anywise specified in its charter or permit, and it shall be unlawaffecting the right of such banks aforesaid to continue ful for any bank to establish and operate any branch the existence, maintenance, and operation of any bank or branch office or agency or place of business." such offices already established, nor shall any pro- (Banking Laws, 1929, sec. 1, p. 2; Laws of 1929, ch. 85, visions contained in this act be construed as in anysec. 1.) wise affecting the right of any sayings, safe deposit, KENTUCKY or trust and savings bank to continue the operation No provision regarding branches.—There is no and maintenance of such branch offices as may have specific provision in the laws of Kentucky regarding been lawfully established prior to the enactment of the establishment of branches. The Court of Appeals this act." (Banking Laws, 1928, sec. 1, p. 237; Act of Kentucky has held, however, that in the absence of No. 146 of 1926, sec. 1.) such a provision it is not within the power of a State bank to establish a branch bank, though it may have MAINE additional offices or agencies to receive deposits and pay checks or transact other necessary duties not Trust and banking company branches authorized.— requiring special discretion or business acumen. (Bruner "No trust company now or hereafter organized shall v. Citizens Bank of Shelbymile, 120 S. W. 345; Marvin establish a branch or agency until it shall have received v. Kentucky Title Trust Company, 291 S. W. 17.) a warrant so to do from the bank commissioner, who shall issue such warrant only when satisfied that public LOUISIANA convenience and advantage will be promoted by the establishment of such branch or agencj^ * * *. Branches authorized.—"Every increase or decrease, No trust company shall be permitted to establish a modification, alteration, or addition to the capital or branch or agency except in its own or an adjoining of the number of the shares, shall be submitted to a county." (Banking Laws, 1927, sec. 88, p. 56; Maine general meeting of the stockholders, held after thirty P. L., 1923, ch. 144, sec. 88.) days' notice by publication and by mail, and shall be Capital requirements.—Trust companies are required approved by two-thirds of the amount of the capital to have a capital varying with the place in which they stock; and shall be executed, recorded and published are located. Trust companies with branches must as provided for the original articles, which shall pro- have the capital required of trust companies located in vide for the location in the parish or domicile of any a place with a population equal to the aggregate popubanking association of not more than two branch lation of the place in which the parent institutions are offices: Provided, That no banking association or located and the population of all places in which its savings bank with capital stock of less than $50,000 branches are located. (Banking LawTs, 1927, sec. 69, may locate or operate branch offices; but this provision p. 46; sec. 88, p. 56; Maine P. L., 1923, ch. 144, sees. shall not apply to existing branch offices." (Banking 69 and 88.) Laws, 1928, sec. 7, p. 7; Act No. 184 of 1916, p. 420.) MARYLAND Trust and savings banks, savings banks, and safe deposit companies.—"Any savings, safe deposit, or Branch banks and trust companies authorized.— trust and savings bank may have one or more as The laws of Maryland provide for the capital of hereinbelow provided offices of discount and deposit branches established by banks and trust companies within the limits of the municipality or parish in and, therefore, impliedly authorize the establishment of which the said bank is located: Provided, That a branches by these institutions. The capital required savings, safe deposit, or trust and savings bank of for the organization of a bank or trust company depends fifty thousand dollars or more capital shall operate upon the size of the place in which such bank or trust not more than one branch; or more than fifty thousand company is located. A bank hereafter establishing a dollars, but not more than seventy-five thousand branch outside of the city, town, or village in which itdollars capital shall operate not more than two is located must increase its capital stock for each branch branches; or more than seventy-five thousand dollars, so established to a sum equal to the amount required but not more than one hundred thousand dollars for the organization of such bank and the organization Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

261 APRIL, 1930 FEDERAL RESERVE BULLETIN of a bank in the place in which the branch is located. superintendent of banks shall believe the convenience A trust company establishing a branch outside of the and interest of the public will be served he may permit city, town, or village in which it is located must add to banks in cities of not less than ten thousand population the amount of capital stock required for its organiza- to establish branch offices within the corporate limits tion for each branch so established a certain enumerated of the city where the bank is domiciled, and such offices sum depending upon the size of the place in which the shall not be considered branch banks within the meanbranch is established. No "branch shall hereafter be ing of section 261, Code of Mississippi of 1906. But an established" by any bank or trust company "in the established bank or branch bank may, with the consent city, town, or village where said bank (or trust com- of the superintendent of banks, be removed from one pany) is now located, and engaged in business," until municipality to any other municipality." (Brown's said bank or trust company "conforms to the require- Miss, and Federal Banking Statutes, 1925, sec. 79, p. ments * * *, as to the minimum amount of capital 79; ch. 174, Laws of 1924.) stock for banks (or trust companies) in said city, town, Capital requirements.—Every parent bank operating or village." (Banking.Laws, 1927, sec. 20, p. 7; sec. 42, one or more branch banks shall set apart and devote p. 19; 1924 Annotated Code of Maryland, art. 11, sec. from its capital a sum of not less than ten thousand 20, and sec. 42, as amended by acts of 1927, ch. 188, dollars for the exclusive use of each of said branch sec. 42.) banks in its business, and the amount of the capital of MASSACHUSETTS the parent bank employed by each branch bank shall never at any time be less than the said amount of ten Branches of trust companies authorized.—"The thousand dollars. (Brown's Miss, and Federal Bankboard of bank incorporation may authorize in writing ing Statutes, 1925, sec. 80, p. 80; Heminway;s Code, any such corporation to maintain cme or more branch sec. 3522.) offices of the town where its main office is located: Provided, That in any town the population of which MISSOURI according to the last preceding State or National census Branch banks prohibited.—" * * * no bank shall does not exceed fifty thousand not more than one such maintain in this State a branch bank, or receive deposbranch, and in any town the population of which ac- its or pay checks except in its own banking house." cording to said census exceeds fifty thousand but does (Laws of Missouri, 1927, sec. 1 (11737), p. 220.) not exceed one hundred thousand not more than two Branch trust companies prohibited.—" * * * no such branches shall be so authorized." These restric- trust company shall maintain in this State a branch tions do not applv to branch offices authorized prior to trust company or receive deposits or pay checks except January 2, 1928/ (Act of May 8, 1928.) in its own banking house." (Banking Laws, 1919, sec. "Any office of a trust company the business of which 11799, p. 98; Rev. Stat. of Mo., 1919, sec. 11799, p. has been taken over under section forty-four by, or any 3702.) office of a national bank purchased by or merged in, a MONTANA trust company located in the same town, may be Branch banks prohibited.—"No bank shall mainmaintained as a branch office of such corporation, if tain any branch bank, receive deposits, or pay checks, in the opinion of the commissioner public convenience except over the counter of and in its own banking will be served thereby." (Trust Company Laws, 1926, house: Provided, That nothing in this section shall sec. 46, p. 24; General Laws of Mass., ch. 172, p. 46.) prohibit ordinary clearing-house transactions between banks." (Banking Laws, 1927, sec. 101, p. 58; Laws MICHIGAN of 1927, ch. 89, sec. 101.) "Industrial bank" may establish branches.—"To establish branch offices or places of business within the NEBRASKA city or village in which its principal office is located, but not elsewhere." (Banking Laws, 1929, sec. 86, p. 49; Branch banks prohibited.—"No bank shall main- Mich. Pub. Acts, 1917, Act No. 296, sec. 4; Comp. Laws tain any branch bank, receive deposits, or pay checks, of Mich., Cahill's 1922 Supplement, sec. 8032 (6).) except "over the counter of and in its own banking There is no specific provision in the laws of Michigan house: Provided, Nothing in this section shall prohibit with reference to the establishment of branches by ordinary clearing-house transactions between banks." other banks. (Banking Laws, 1929, sec. 1, p. 45; Laws of Nebraska, 1927, p. 153.) MINNESOTA NEVADA Branches prohibited.—"No bank or trust company organized under the laws of this State shall maintain Branches prohibited.—" * * * No bank in this a branch bank or receive deposits or pay checks within State shall hereafter open or maintain any branch bank this Scate except at its own banking house, and the or office * * *." (Banking Laws, 1927, sec. 8, superintendent of banks shall take possession of and p. 6; Rev. Laws of Nevada, 1912, sec. 623.) liquidate the business and affairs of any State bank or "Bank" defined.—"The words 'corporation,' 'banktrust company violating the provisions of this act in ing corporation/ 'bank,' 'trust company,' or 'banker,' the manner prescribed by law for the liquidation of as used in this act, shall refer to and include banks, insolvent State banks and trust companies." (Banking savings banks, and trust companies, individuals, firms, Laws, 1929, sec. 1, p. 24; Laws of 1923, ch. 170, sec. 1; associations, and corporations of any character con- Mason's Minn. Statutes, 1927, sec. 7693.) ducting the business of receiving money on deposit or otherwise carrying on a banking or trust company business, except as herein specially provided." (Bank- MISSISSIPPI ing Laws, 1927, sec. 75, p. 23; Rev. Laws of Nevada, Branches in same city authorized.—"The creation or 1912, sec. 690.) organization of any branch bank in this State shall be NEW HAMPSHIRE and the same is prohibited and forbidden, and no branch bank shall be hereafter established in this No provision concerning branches.—There is no State, and no parent bank chartered under the laws of specific provision in the laws of New Hampshire regardthis State shall establish any branch bank either within ing the establishment of branches by banks or trust or without the State: Provided, however, That when the companies. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

262 FEDERAL RESERVE BULLETIN APRIL, 1930 NEW JERSEY public; * * *." (Act approved Mar. 7, 1927; Laws of 1927, ch. 34, p. 75.) Bank and trust company branches authorized.— Capital requirements.—u And "provided, That any " Banks (other than savings banks) and trust com- savings bank establishing such branch office or agency panies, organized under the laws of this State, ma3^ shall have, according to its last annual report, a surplus establish and maintain branch offices or agencies for of not less than five per centum of the amount of its the transaction of their business, with the approval in deposits, and, in addition, fifty thousand dollars of writing of the commissioner of banking and insurance, surplus for each branch office or agency established, which approval shall be given by him only if it shall over and above said five per centum of the amount of appear to him that the establishment of such branch deposits; * * *." (Act approved Mar. 7, 1927; office or agency will be of public service; * * *." Laws of 1927, ch. 34, p. 75.) (Banking Laws, 1928, sec. 15, p. 136; Laws of 1925, Establishment and number of branches restricted.— ch. 27, p. 85, as amended by Laws of 1927, ch. 20, p. 54.) <** * * A i provided further, That such branch Detailed provision is also made for obtaining the office or agen n c c y shall be established only within the consent of the commissioner of banking and insurance corporate limits of the municipality (other than county) to establish branches. (1929 Laws Relating to Banks in which such savings bank is located: And provided and Trust Companies, p. 20; Laws of 1929, ch. 294, p. further, That no such branch office or a^H$£ shall be 686.) established in any municipality (othe^^llan county) Capital requirements.—The commissioner of bank- if the population thereof be less than twenty-five ing and insurance shall not give his approval to the thousand, according to the latest decennial, State or establishment of branch offices or agencies " unless the Federal census, and not more than one such branch capital of such bank actually paid in in cash shall ex- office or agency shall be established by any such savings ceed the amount required by law for the incorporation bank if the population of the municipality wherein of a bank, to the extent of fifty thousand dollars, and the same is located be, according to such census, less the capital of such trust company actually paid in in than fifty thousand, and no more than two such branch cash shall exceed the amount required by law for the offices or agencies shall be established by such savings incorporation of a trust company, to the extent of one bank if the population of such municipality, according hundred thousand dollars for each branch office or to such census, be less than one hundred thousand." agency so established; * * *." (Banking Laws, (Act approved Mar. 7, 1927; Laws of 1927, ch. 34, p. 75.) 1928, 'sec. 15, p. 137; Laws of 1925, ch. 27, p. 85, as Savings-bank branches resulting from mergers or amended by Laws of 1927, ch. 20, p. 54.) consolidations.—" The merged or consolidated savings Establishment and number of branches restricted.— bank may continue to maintain branch offices or The approval of the commissioner of banking and in- agencies for the transaction of its business established surance shall not "be given for the establishment of pursuant to law by either or both of the merging or any such branch office or agency outside the city, town, consolidating savings banks." (New Jersey Laws of township, borough, or village in which such bank or 1929, ch. 1, sec. 7, p. 844.) trust company is located, nor shall any bank or trust Savings branch office buildings may be acquired.— company maintain and operate a branch office or "Any savings bank may acquire and hold a lot or lots agency within the corporate limits of a city, town, whereon are erected or may be erected building or township, borough, or village where the population buildings requisite for the convenient transaction of by the last decennial census is ]ess than twenty-five the business of any such branch offices or agencies and thousand; nor more than one such branch where such from portions of which, not required for its own use, population by said census is more than twenty-five revenue may be derived, subject, however, to the thousand and not more than fifty thousand; nor more restriction and limitations contained in section thirtythan two such branches where such population by said three of an act entitled 'An act concerning savings census is more than fifty thousand and not more than bank/ approved May second, nineteen hundred and one hundred thousand, and where such population by six; or may lease space for the transaction of such said census is more than one hundred thousand the business." (Banking Laws, 1925, sec. 81, p. 28; Laws number of such branches shall be such as may be determined by the commissioner of banking and insur- of 1925, ch. 228, sec. 2, p. 552.) ance: Provided, That nothing in this act contained Savings branch office may be discontinued.—"Any shall prevent the maintenance of any branch office or savings bank may discontinue any such branch office agency heretofore lawfully established." (Banking or agency with the written approval of the commis- Laws, 1928, -sec. 15, p. 137; "Laws of 1925, ch. 27, p. 85, sioner of banking and insurance, and upon such prior as amended by Laws of 1927, ch. 20, p. 54.) public notice as he shall prescribe." (Banking Laws, 1925, sec. 82, p. 28; Laws of 1925, ch. 228, sec. 3, p. Merger of banks and trust companies.—Banks and 552.) trust companies may merge each with the other and branches resulting from such merger may be continued NEW MEXICO under certain conditions. (Banking Laws, 1928, sec. Branches prohibited.—"Every bank shall be con- 11, p. 55; sec. 19, p. 59; sec. 19, p. 108; sec. 27, p. 112; ducted at a single place of business, and no branch sec. 18 (1), p. 139; sec. 18 (9), p. 143; Laws of 1925. thereof shall be maintained elsewhere: Provided, howchs. 197, 198, and 203; Laws of 1927, ch. 14, p. 39; ch. ever, That nothing herein contained shall be construed 21, p. 55.) to prohibit any mercantile corporation which main- Savings bank branches authorized.—"Any savings tains a banking department in accordance with the bank incorporated under the laws of this State may provisions of this act, from receiving deposits and establish, with the written approval of the commis- buying and selling exchange at any of its branch sioner of banking and insurance, and maintain branch stores." (Bank Code, 1929, sec. 47, p. 18; Laws of offices or agencies for the transaction of its business: 1915, ch. 67, sec. 47.) Provided, That the approval of the commissioner of "Bank" denned.—"The word 'bank7 as used in banking and insurance shall be given by him only if this act includes every person, firm, company, coparthe shall be of the opinion that the establishment of nership, or corporation, except national banks, engaged such branch office or agency will be beneficial to the in the business of banking in the State of New Mexico. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

APRIL, 1930 FEDERAL RESERVE BULLETIN 263 Banks are divided into the following classes: (a) Com- of this article for each branch opened." (Banking Law, mercial banks; (b) savings banks; and (c) trust com- sec. 195.) panies." (Bank Code, 1929, sec. 2, p. 5; Laws of The approval of the superintendent of banks of an 1915, ch. 67, sec. 2.) application by a trust company for leave to open a branch office is made dependent upon whether or not NEW YORK he considers that "the granting of such application is Branch offices of State banks authorized within city expedient and desirable" after he has made "such limits.—"No bank, or any officer or director thereof, investigation as he may deem necessary to ascertain shall transact its usual business of banking at any whether the public convenience and advantage will be place other than its principal place of business, except promoted by the opening of such branch office." that a bank in a city which has a population of more (Banking Law, sec. 51.) than 50,000 may open and occupy in such city one or Capital requirements.—Before branches may be esmore branch offices for the receipt and payment of tablished by a trust company, its actual paid-in capital deposits and for making loans and discounts to cus- must exceed by $100,000 for each branch opened the tomers of such respective branch offices only: Provided, following amounts (Banking Law, sec. 195): That before any such branch or branches shall be " (a) One hundred thousand dollars, if the place opened or occupied: where its business is to be transacted is an incorporated "1. The superintendent shall have given his written or unincorporated village or city the population of approval, as provided in section fifty-one of this chap- which does not exceed twenty-five thousand. ter: " (b) One hundred and fifty thousand dollars, if the "2. The actual paid-in capital of such bank shall place where its business is to be transacted is a city the exceed by the sum of one hundred thousand dollars the population of which exceeds twenty-five thousand but amount required by section one hundred of this article does not exceed one hundred thousand. for each branch opened since the twenty-seventh day " (c) Two hundred thousand dollars, if the place of April, nineteen hundred and eight; and by the sum where its business is to be transacted is a city the popof fifty thousand dollars for each branch opened pre- ulation of which exceeds one hundred thousand but vious to said date and hereafter maintained/' (Bank- does not exceed two hundred and fifty thousand. ing Law, sec. 110.) " (d) Five hundred thousand dollars, if the place The approval of the superintendent of banks of an where its business is to be transacted is a city the popapplication by a State bank for leave to open a branch ulation of which exceeds two hundred and fifty thouoffice is made dependent upon whether or not he con- sand." (Banking Law, sec. 180.) siders that "the granting of such application is expe- Savings bank branches authorized in cities of "first dient and desirable" after he has made "such investiga- class.''—"2. No savings bank, or any officer or director tion as he may deem necessary to ascertain whether the thereof, shall transact its usual business at any place public convenience and advantage will be promoted by other than its principal place of business without the the opening of such branch office." (Banking Law, written permission of the superintendent of banks, sec. 51.) given as provided in subdivision three of this section, Capital requirements.—Before any branch or except that it may, provided the merger agreement so branches may be established by a State bank the actual provides, continue to occupy and maintain as a branch paid-in capital of an applying bank must exceed by the office, the place of business occupied and maintained amounts as set out in the provision quoted above, for at the time of the merger by any savings bank which each branch opened, the following amounts. (Bank- it has received into itself by merger pursuant to article ing Law, sec. 110.) twelve of this chapter. " (a) Twenty-five thousand dollars, if the place "3. Upon written approval of the superintendent of where its business is to be transacted is an incorporated banks, given as provided in this subdivision, a savings or unincorporated village the population of which does bank, located in a city of the first class (city of 175,000 not exceed two thousand. or more inhabitants) may open and occupy within said " (b) Fifty thousand dollars, if the place where its city one branch office, and if such city comprises more business is to be transacted is an incorporated or unin- than one county or borough, such branch office may be corporated village or a city the population of which located only in the same county or borough in which its exceeds two thousand but does not exceed thirty main office is located. * * * The superintendent thousand. shall ascertain by such investigation as he may deem " (c) One hundred thousand dollars, if the place necessary, whether or not public convenience and where its business is to be transacted is a city the pop- advantage will be promoted by the opening of such ulation of which exceeds thirty thousand." (Banking branch office. * * *." (Banking Law, sec. 245.) Law, sec. 100.) ProAision is made for obtaining the authorization of Trust company branch offices authorized within the superintendent of banks to establish branch offices city limits.—"No trust company, or any officer or of savings banks. (Banking Law, sec. 245.) director thereof, shall transact its usual business at any Savings and loan associations authorized to establish place other than its principal place of business, except one "station."—"A savings and loan association that a trust company may open and occupy in the city located in a city which has a population of more than in which its principal place of business is located one or thirty thousand may open and maintain in said city more branch offices, provided that before any such one station for the payment of dues and withdrawals branch or branches shall be opened or occupied: and the payment of interest, premium, fees, and fines "1. The superintendent shall have given his written by its members and payments upon the principal of approval, as provided in section fifty-one of this loans by its borrowing members, provided that before chapter. I any such station shall be opened or maintained: "2. The actual paid-in capital of such trust company • "1. Its board of directors shall submit to the supershall exceed by the sum of one hundred thousand dollars j intendent a written application setting forth the reasons the amount required by section one hundred and eighty ; therefor and the location of such station. 103025—30 9 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

264 FEDERAL RESERVE BULLETIN APRIL, 1930 "2. The superintendent shall have given his written after be organized under the general corporation laws of approval thereto." (Banking Law, sec. 403.) this State, which is engaged in lending money to be repaid in weekly pr monthly or other periodical install- NORTH CAROLINA ments, or principal sums, as a business: Provided, however, This definition shall not be construed to Branches authorized.—"Any bank doing business include building and loan associations or commercial under this act may establish branches in the cities in or savings banks." (Banking Laws, 1927, sec. 225 (a), which they are located, or elsewhere, after haying first p. 41; North Carolina Code, Annotated Edition, 1927, obtained the written approval of the corporation com- sec. 225 (a).) mission, which approval may be given or withheld by NORTH DAKOTA the corporation commission, in its discretion, and shall not be given until it shall have ascertained to its No provision concerning branches.—There is no satisfaction that the public convenience and advantage specific provision in the laws of North Dakota regardwill be promoted by the opening of such branch." ing the establishment of branches. (Banking Laws, 1927, sec. 220 (r), p. 26; North Carolina Code, Annotated Edition, 1927, sec. 220 (r).) OHIO Capital requirements.—"Provided, That the corporation commission shall not authorize the establishment Branch banks authorized.—"No branch bank shall of any branch, the paid-in capital stock of whose parent be established until the consent and the approval of bank is not sufficient in an amount to provide for the the superintendent of banks has been first obtained, capital of at least twenty-five thousand dollars for the and no bank shall establish a branch bank in any place parent bank, and at least twenty-five thousand dollars other than that designated in its articles of incorporafor each branch which it is proposed to establish in tion, except in a city or village contiguous thereto. cities or towns of three thousand population or less; If such consent and approval is refused, an appeal may nor less than thirty thousand dollars in cities and towns be taken therefrom in the same manner as is provided whose population exceeds three thousand but does not in section 45 of this act." (Banking Laws, 1928, exceed ten thousand; nor less than fifty thousand dollars sec. 710-73, p. 28.) in cities and towns whose population exceeds ten thou- "Bank" defined.—"The term 'bank' shall include sand but does not exceed twenty-five thousand; nor any person, firm, association, or corporation soliciting, less than one hundred thousand dollars in cities and receiving or accepting money, or its equivalent, on towns whose population exceeds twenty-five thousand. deposit as a business, whether such deposit is made All banks operating branches prior to February 18, subject to check or is evidenced by a certificate of de- 1921, shall, within a time limit to be prescribed by the posit, as passbook, a note, a receipt, or other writing, corporation commission, cause said branch bank to and unless the context otherwise requires as used in conform to the provisions of this section." (Banking this act includes commercial banks, savings banks, Laws, 1927, sec. 220 (r), p. 26; North Carolina Code, trust companies, and unincorporated banks; provided Annotated Edition, 1927, sec. 220 (r).) that nothing herein shall apply to * * * building "Bank" denned.—"The term 'bank' when'used in and loan associations or title guarantee and trust comthis act shall be construed to mean any corporation, panies incorporated under the laws of this State." partnership, firm, or individual receiving, soliciting, or (Banking Laws, 1928, sec. 710-2, p. 5.) accepting money or its equivalent on deposit as a business: Provided, however, This definition shall not be OKLAHOMA construed to include building and loan associations, No provision concerning branches.—There is no Morris plan companies, industrial banks or trust comspecific provision in the laws of Oklahoma regarding panies not receiving money on deposit." (Banking the establishment of branch banks. Laws, 1927, sec. 216 (a) p. 3; North Carolina Code, Annotated Edition, 1927, sec. 216 (a).) "Industrial bank" branches authorized.—Every industrial bank is given the power "to establish branch Branches prohibited.—" Xo bank or trust company offices or places of business within the county in which or any officer or director, agent or employee thereof, its principal office is located, and elsewhere in the State, shall open or maintain any branch in this State or after having first obtained the written approval of the receive deposits or pay checks other than at its princicorporation commission, which approval may be given pal place of business: Provided, That this section shall or withheld by the corporation commission in its dis- not apply to branch banks or trust companies now cretion: Provided, That the corporation commissionexistent or authorized to do business in this State as a shall not authorize the establishment of any branch the foreign bank or trust company, under the provisions of paid-in capital of whose parent bank is not sufficient in this act: Provided further, That every such foreign an amount to provide for the capital of at least $25,000 branch bank or trust company shall hereafter in every for the parent bank and at least twenty-five thousand respect be governed by and comply with the provisions dollars ($25,000) for each branch which it is proposed of this act to the same extent as other State banks or to be established in cities or towns of fifteen thousand trust companies now organized and doing business in population or less; nor less than fifty thousand dollars this State: Provided, That any State bank may effect ($50,000) in cities or towns whose population exceeds a consolidation on the same terms and conditions now fifteen thousand but does not exceed twenty-five or hereafter permitted to national banks." (Banking thousand; nor less than one hundred thousand dollars Laws, 1925, sec. 113, p. 44; General Laws of Oregon, ($100,000) in towns whose population exceeds twenty- 1925, ch. 207, sec. 113.) five thousand." (Banking Laws, 1927, sec. 225 (f), p. 42; North Carolina Code, Annotated Edition, 1927, PENNSYLVANIA sec. 225 (f).) "Industrial bank" defined.—''The term 'indus- General establishment of branches prohibited.—" No trial bank/ as used in this act, shall be construed to bank, banking company, banking institution, savings mean any corporation organized, or which may here- bank, trust company, title insurance company, or Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

265 APRIL. 1930 FEDERAL RESERVE BULLETIN other corporation now or hereafter authorized to re- principal place of business is located at the time of ceive deposits or to carry on a banking or trust business, such relocation, subject to the approval of the secretary whether incorporated under the laws of Pennsylvania of banking." (Act approved April 27, 1927, Laws of or of any other State or of the United States of Amer- Pennsylvania, 1927, sec. 2, p. 400.) ica, * * * shall establish, maintain, or operate, either directly or indirectly, any branch bank, branch RHODE ISLAND office, agency, suboffice, subagency, or branch place of business, within the Commonwealth of Pennsylvania, Branches authorized.—" Any bank or trust company for the transaction of any part of its * * * busi- may establish a branch or branches within this State ness, but all of the business of such corporation, at any other place than its principal place of business * * * shall be carried on solely and exclusively at upon obtaining the consent of the board of bank incorits * * * principal place of business." (Act ap- poration thereto. * * *" (Banking Laws, 1929, proved April 27, 1927, Laws of Pennsylvania, 1927, sec. 9, p. 6; General Laws, 1923, ch. 269, sec. 9.) sec. 1, p. 400). Detailed provision is also made for obtaining the Exception—Establishment permitted within corpor- consent of the board of bank incorporation to establish ate limits of places where national banks were oper- branches. (Banking Laws, 1929, sec. 9, p. 6; General ating branches on March 1, 1927.—"This act shall not Laws, 1923, ch. 269, sec. 9.) apply to any bank, banking company, banking institution, savings bank, trust company, title insurance SOUTH CAROLINA company, % or other corporation, now or hereafter Branch banks authorized by implication. "* * * authorized to receive deposits or carry on a banking or trust business, wThether incorporated under the laws of for each branch bank that is established the parent bank must have a total unimpaired capital of at least Pennsylvania or of any other State or of the United twenty-five thousand ($25,000.00) dollars above the States of America, * * * which has its * * * minimum requirements herein set forth." (Banking principal place of business in a city, borough, or town- Laws, 1928, sec. 20, p. 11, Acts of 1928, ch. 701, sec. 2.) ship within the Commonwealth of Pennsylvania, in Provision is also made for the publication of statewhich one or more national banking associations, ments of the assets and liabilities of branch banks or * * * was, on March 1, 1927, operating one or offices, for the examination of branch banks, and for more branch banks, branch offices, agencies, suboffices, the taxation of banks having branches. (Banking subagencies, or branch places of business, for the trans- Laws, 1928, sec. 61, p. 29; sec. 86, p. 45; sec. 106, action of any part of its business; and any such corporp. 54; Code of 1922, sections 3984, 3989; act approved ations * * * may hereafter establish, subject to March 21, 1924, p. 1116, Acts of 1924.) the approval of the secretary of banking, and thereafter maintain and operate branch banks, branch offices, SOUTH DAKOTA agencies, suboffices, subagencies, and branch places of business for the transaction of any part of its * * * No provision regarding branches.—There is no spebusiness, but only within the corporate limits of the cific provision in the laws of South Dakota regarding city, borough, or township in which its principal office the establishment of branch banks. is located and in which such national banking association was, on March 1, 1927, operating one or more TENNESSEE branch banks, branch offices, agencies, suboffices, subagencies, or branch places of business. The right to Branches authorized in county where located.— establish and maintain branch banks, branch offices, "That no corporation, firm, or individual now or hereagencies, suboffices, subagencies, or branch places of after doing or carrying on a banking business in the business, under the provisions of this section, shall be State of Tennessee shall have, maintain, create, or limited to the territory included within the corporate operate any branch bank, office, or agency, for the limits on March 1, 1927, of the respective cities, bor- purpose of receiving deposits, paying checks, making oughs, or townships in which such national banking loans, or receiving or discounting bills or notes in any associations were on that date operating one or more place whatsoever other than the county of this State branch banks, branch offices, agencies, suboffices, sub- wherein such banking business is carried on." (Act agencies, or branch places of business as aforesaid; approved April 6, 1925, sec. 3.) and such right shall not extend to additional territory which may, after March -1, 1927, be added to such TEXAS cities, boroughs, or townships, by annexation, consolidation with one or more municipal corporations or Branch banks prohibited.—" No banking corporation otherwise, nor shall it extend to other portions or divi- organized under the laws of this State shall ever engage sions of municipal corporations to which such cities, in business at more than one place, which shall be boroughs, or townships may be annexed, or with which designated in its charter. No such corporation shall they may be consolidated after that date; the intention maintain a branch bank, receive deposits or pay checks being to limit to the respective corporate limits of such except in its own banking house. County or State cities, boroughs, or townships as they existed on March depositories or county depositories not located at the 1, 1927, the right to establish and maintain the branch county seat, and ordinary clearing house transactions banks, branch offices, agencies, suboffices, subagencies, between banks, are not affected by this article." and branch places of business authorized in this section." (Banking Laws, 1929, art. 538, p. 51.) (Act approved April 27, 1927, Laws of Pennsylvania, 1927, sec. 3, p. 401.) UTAH Other exceptions are that the act does not apply to branches established or for which locations had been Branches prohibited.—"The business of every banksecured prior to March 1, 1927, or to branches result- ing institution shall be conducted only at its banking ing from consolidations of banks effective prior to house, and no bank in this State or any loan, trust, or April 1, 1927; "and such corporations * * * shall guaranty company or trust company conducting a have the right to relocate the same within the corporate banking business, or any officer, director, or agent limits of the city, borough, or township in which the thereof, shall open, establish, or maintain any branch Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

266 FEDERAL RESERVE BULLETIN APRIL, 1930 bank or office, and shall receive deposits and pay checks WASHINGTON only at its banking house: Provided, That all branch banks or offices in operation at the time of the approval Branches prohibited.—"* * * nor shall any of this chapter shall be closed and discontinued within bank or trust company establish any branch. The one year from the date this chapter goes into effect." practice of collecting or receiving deposits or cashing (Banking Laws, 1927, sec. 1005, p. 12; Comp. Laws of checks at any place or places other than the place where Utah, 1917, title 19, ch. 6, sec. 1005.) the usual business of a bank or trust company and its operations of discount and deposits are carried on shall VERMONT be held and construed to be establishing a branch: * * *." (Banking Laws, 1929, sec. 25, p. 12; Laws No provision regarding branches but ''agencies" 1919, sec. 7, p. 730.) authorized.—"SECTION 1. Before a savings bank, trust Definition of "bank."—"The term 'bank/ where company or a savings bank and trust company opens an used in this act, unless a different meaning appears agency of such corporation it shall petition the bank from the context, means any corporation organized commissioner to hold a public hearing in the town where under the laws of this State engaged in banking, other the proposed agency is to be located, to determine than a trust company or a mutual savings bank." whether the establishment and maintenance thereof (Banking Laws, 1929, sec. 24, p. 11; Laws 1917, sec. will promote the general good of the State. * * * 14, p. 275.) If after the hearing said commissioner finds and ad- Definition of "branch."—"The term 'branch bank,' judges that the establishment and maintenance of the where used in this act, means any office of deposit or proposed agency will promote the general good of the discount maintained by any bank or trust company, State, he shall give said bank a certificate to that effect domestic or otherwise, other than its principal place under his seal. A savings bank, trust company or of business, regardless of whether it be in the same city savings bank and trust company shall not operate or locality." (Banking Laws, 1929, sec. 24, p. 11;. any agency not certified by said commissioner as Laws 1917, sec. 14, p. 275.) herein provided." Mutual savings bank branches.—"No (mutual) "SEC. 2. An agency of a bank in operation prior to savings bank or any officer or director thereof shall February 1, 1929, permission to operate such agency receive deposits or transact any of its usual business at having been procured from the commissioner of bank- any place other than its principal place of business." ing and insurance, shall be permitted to continue." (Banking Laws, 1929, sec, 181, p. 84; Laws 1925, Ex. (Act of March 13, 1929.) Ses., sec. 10, p. 107.) VIRGINIA WEST VIRGINIA Branches authorized.—"No bank or trust company Branch banking prohibited.—"No banking instituheretofore or hereafter incorporated under the laws tion chartered and authorized to engage in business of this State shall be authorized to engage in business in more than one place, except that, in its discretion hereunder shall hereafter install any branch bank, or the State corporation commission may authorize banks engage in business at any place other than at its prinhaving a paid-up and unimpaired capital and surplus cipal office in the State of West Virginia; * * *." of fifty thousand dollars or over to establish branches (1929 S. L., ch. 23, sec. 5, p. 113.) within the limits of the city, town, or village in which the parent bank is located or in other cities having a WISCONSIN population of not less than fifty thousand inhabitants. This section, however, shall not apply to branch banks Branch banks prohibited.—"* * * but no bank already established, and this section shall not be con- shall establish more than one office of deposit and disstrued to prohibit the merger of two banks in the same count or establish branch offices or branch banks, or adjoining counties and the operation by the merged provided that this prohibition shall not apply to any company of the two banks. But any branch bank branch office or bank established prior to May 14, 1909." heretofore or hereafter established shall not be operated (Banking Laws, 1927, sec. 221.04 (1-f), p. 28; Wisor advertised under any other' name than that of the consin Statutes, 1927, sec. 221.04 (1-f).) identical name of the home bank, unless permission be Branch trust companies prohibited.—"* * * nor first had and obtained from the State corporation com- shall such corporation (trust company bank) establish mission, and unless such different name shall contain more than one office of deposit nor establish nor mainor have added thereto language clearly indicating that tain branches." (Banking Laws, 1927, sec. 223.06, it is a branch bank and of what bank it is a branch. p. 59; Wisconsin Statutes, ch. 223.) Any bank or trust company violating the provisions of this section shall be liable to a fine of one thousand WYOMING dollars, to be imposed and judgment entered therefor by the State corporation commission, and enforced by No provision covering branches.—There is no specific its process." (Banking Laws, 1929, sec. 4149 (14), provision in the laws of Wyoming in regard to the p. 30; Acts of 1928, ch. 507, sec. 13.) establishment of branch banks. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

APRIL, 1930 FEDERAL RESERVE BULLETIN 267 CHANGES IN MEMBERSHIP STATE BANK MEMBERSHIP NATIONAL BANK MEMBERSHIP The following list shows the changes affecting (State The following list showTs reported changes (except bank membership during the month ended March 21, suspensions and insolvencies) affecting national bank 1930, on which date 1,111 State institutions were mem- membership, concerning which information became bers of the svstem: available between February 25 and March 24, 1930: Capital Date Federal reserve district- Capital No. 1—BOSTON No. 1—BOSTON 1930 1930 Mar. 15 American Trust Co., Boston, Mass. $1, 500,000 Mar. 15 First National Bank, Boston, Mass $43,500,000 Consolidated with First National Bank of American Trust Co., member 1,500,000 Boston. Consolidated under charter and title of First National Bank I 44,500,000 No. 2—NEW YORK No. 2—NEW YORK j Mar. 24 State Bank of Endicott, Endicott, N. Y., title changed to Endicott Trust Co. Mar. 22 Niagara National Bank, Buffalo, N. Y._ -. 300,000 Primary organization. No. 3—PHILADELPHIA No. 3—PHILADELPHIA Mar. 3 Port Carbon State Bank, Port Carbon. Pa 50,000 Voluntary withdrawal. Mar. 1 First National Bank, Roebling, N. J., title changed to First National Bank & Trust Co. No. 4—CLEVELAND 7 Terre Hill National Bank, Terre Hill, Pa._ 40,000 Absorbed by Blue Ball National Bank, Blue Mar. 10 Union Trust Co., Dayton, Ohio 1, 500,000 Ball, Pa. Admitted to membership; a merger of City 13 First National Bank, Wrightstown, N. J 25,000 National Bank & Trust Co. and Dayton Absorbed by First National Bank & Trust Savings & Trust Co., a nonmember. Co., New Egypt, N. J. Fayette Title & Trust Co., Uniontown, Pa_ 150, 000 15 Gap National Bank, Gap, Pa., title changed to Admitted to membership. Gap National Bank & Trust Co. Union Bank & Savings Co., Bellevue, Ohio 150, 000 Admitted to membership; a merger of Wright No. 4—CLEVELAND Banking Co., a member, and Bellevue Savings Bank Co., a nonmember. Feb. 28 Wrallins National Bank, Wallins Creek, Ky 25,000 Absorbed by Harlan National Bank, Harlan, No. 6—ATLANTA Ky. Mar. 3 First National Bank, Ligonier, Pa 25,000 Feb. 28 Orrville Bank & Trust Co., Orrville, Ala 35,000 National Bank of Ligonier 50,000 Closed. Merged under new charter and title of Ligo- Mar. 7 Exchange Bank, Cordele, Ga 100, 000 nier National Bank 125, 000 Closed. City National Bank & Trust Co., Dayton, Ohio. 750,000 12 Algiers Trust & Savings Bank, New Orleans, La_ 200, 000 Succeeded by Union Trust Co., member. Absorbed by Whitney Trust & Savings Bank, a nonmember. No. 5—RICHMOND No. 7—CHICAGO Jan. 20 Front Royal National Bank, Front Royal, Va..-j 50,000 Succeeded by Citizens National Bank.. 60,000 Mar. 12 Iowa State Bank, Osceola, Iowa _ 50, 000 Feb. 22 Farmers National Bank, Tazewell, Va.._ 100,000 Voluntary withdrawal. Absorbed by Farmers Bank of Clinch Valley, Tazewell, Va., nonmember. No. 8—ST. LOUIS Mar. 2 Peoples First National Bank, Charleston, S. C_— 1,000,000 Succeeded by Peoples State Bank of South Mar. 3 American Exchange Trust Co., Little Rock, Ark._ 1, 000, 000 Carolina, nonmember. Admitted to membership; a merger of American Southern Trust Co., a member, and No. 6—ATLANTA M S is t s . i L s E s o i x u p c i p h s i , a M n V g a o e l . l , e N t y i a t l t M e io c n e h r a a c l n h B g a e a n d n ts k t o S o M t f a L i t s e i s t i t T s l s e r i u p R s p t o i c V C k o a . l . - , Feb. 25 U Fi n r i s o t n N S a a ti v o i n n a g l s B B a a n n k k , , F n o o r n t m G e a m m b e e s r , Ga 2 5 7 0 , , 1 0 5 0 0 0 ley Trust Co. Co N n a s t o i l o id n a a t l e B d a u n n k der charter and title of First 50,000 No. 11—DALLAS Mar. 6 Citizens National Bank, Barnesville, Ga 50,000 Absorbed by First National Bank. Mar. 12 Citizens State Bank, Greenville, Tex., a member,. 100, 000 12 First National Bank, Fairfield, Ala., title changed Ab T s e o x rbed the First National Bank of Merit, 25,000 15 Sn t e o l l F N ai a rf t i i e o l n d a l A B m a e n r k ic , a W n i N n a te t r io H na a l v e B n a , n F k. la__ 200,000 12 First State Bank, Bomarton, Tex 32,000 Primary organization. Withdrawal. No. 7—CHICAGO No. 12—SAN FRANCISCO Feb. 20 First National Bank, Winterset, Iowa 50,000 Absorbed by Winterset Savings Bank, non- Feb. 24 Farmers & Merchants Bank, Odessa, Wash 25,000 member. Succeeded by Security State Bank, nonmem- 26 First National Bank, Flint, Mich., title changed ber. to First National Bank & Trust Co. Mar. 1 First State Bank, LaCrosse, Wash., amember 60,000 26 National Bank of Bloomfield, Iowa _. 55,000 And Security State Bank, LaCrosse, Wash., a Absorbed by State Bank of Davis County, member— 30,000 Bloomfield, Iowa, nonmomber. Consolidated under title of First State Bank, 28 Commercial National Bank, Union City, Ind 50, 000 member 60,000 Succeeded by Commercial Bank & Trust Co., nonmember. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

268 FEDERAL RESERVE BULLETIN APRIL, 1930 CHANGES IN MEMBERSHIP—Continued CHANGES IN MEMBERSHIP—Continued NATIONAL BANK MEMBERSHIP—Continued NATIONAL BANK MEMBERSHIP—Continued Date Federal reserve district Date Federal reserve district Capital No. 7—CHICAGO—Continued No. 11—DALLAS 1930 1929 Mar. 1 Security National Bank, Grand Rapids, Mich___ $500,000 Dec. 31 Bevans National Bank, Menard, Tex $100,000 Primary organization. Succeeded by Bevans State Bank, nonmem- First National Bank, Sterling, 111 _ 200,000 Sterling National Bank _ 100,000 1930 ber. Consolidated under charter of First National Jan. 15 State National Bank, Karnes City, Tex 25,000 Bank and under title of First Sterling Na- Absorbed by Karnes County National Bank, tional Bank -_ 200, 000 Karnes City. First National Bank, New London, Wis 50, 000 20 First National Bank, Bagwell, Tex __ 27,500 Bank of New London, nonmember 30,000 Voluntary liquidation. Consolidated under charter and title of First Feb. 28 Security National Bank, Nocona, Tex 25,000 National Bank 75,000 Absorbed by Farmers & Merchants National 18 First National Bank, Ripon, Wis 100,000 Bank. American National Bank 100,000 Mar. 4 Farmers & Merchants National Bank, Achille, Consolidated under charter and title of First Okla . , 25,000 National Bank 300,000 Absorbed by Durant National Bank, Du- National Bank of Commerce, Milwaukee, Wis._- 1,000,000 rant, Okla. Second Wisconsin National Bank 200,000 17 First National Bank, Newcastle, Tex 25,000 Consolidated under charter and title of Na- Absorbed by First National Bank, Throcktional Bank of Commerce.-. 1,000,000 morton, Tex. 18 First National Bank, Merit, Tex 25,000 No. 8.—ST. LOUIS Absorbed by Citizens State Bank, Greenville, itjx., rutjiiiuer. Feb. 21 Exchange National Bank, Little Rock, Ark 400,000 18 Hot Springs National Bank, Hot Springs, N. American Southern Bank & Trust Co., member.. 1, 000, 000 Mex 25,000 Consolidated under the new charter and title Succeeds First National Bank. of American Exchange Trust Co., member. 1,000, 000 Mar. 3 First National Bank & Trust Co Owensboro, No. 12—SAN FRANCISCO Ky _ 137, 900 Voluntary liquidation. Feb. 26 First National Bank, Colton, Calif 50,000 11 Mercer National Bank, Harrodsburg, Ky 100, 000 Absorbed by Bank of America of California, First National Bank 50, 000 Los Angeles, Calif., nonmember. Consolidated under charter of Mercer Na- Mar. 1 Burley National Bank, Burley, Idaho 50,000 tional Bank and under title of First Mercer Succeeded by nonmember bank. National Bank 150, 000 18 National Bank of East Stanwood, Wash 25,000 Conversion of State Bank of East Stanwood, No. 9—MINNEAPOLIS nonmember. 1929 Dec. 31 First National Bank, Canby, Minn 25, 000 Absorbed by Bank of Canby, nonmember. Fiduciary Powers Granted to National Banks 1930 Feb. 11 First National Bank, Reeder, N. Dak 25, 000 Absorbed by First State Bank, nonmember. During the month ended March 21, 1930, the 15 First A N bs a o ti r o b n ed a l b B y a n M k o , n M tp o e n l t i p er e li S e t r a , te N . B D an a k k , non- 25,000 Federal Reserve Board approved applications of the member. national banks listed below for permission to exercise 18 First A N bs a o t r io b n ed a l b B y a n S k c , a L n a la n n e - s H bo a r b o b , e M rst i a n d n . Bank & 50,000 o 1 n 1 e ( o k r ) m of o r t e h e o f F e t d h e e r a f l i d r u e c s i e a r r v y e p a ow ct e r a s s n a a m m e e n d d e i d n , s a e s c t f io o n l- Trust Co., nonmember. 27 First A N bs a o t r io be n d a l b B y a n M k, u r Io ra n y a , C M o i u n n n ty State Bank, 25, 000 l ( o 4 w ) s r : e g ( i 1 s ) tr a T r ru o s f t e s e to ; ck ( s 2 ) a n e d x e b c o u n to d r s ; ; ( ( 5 3 ) ) gu a a d r m di i a n n i st o ra f t o e r s ; - Slayton, Minn., nonmember. tates; (6) assignee; (7) receiver; (8) committee of Mar. 8 First S u N c a c t e i e o d n s a l F i B rs a t n N k a i t n io N na e l c B he a , n N k . o D f N ak eche. 25,000 estates of lunatics; (9) in any other fiduciary capacity in which State banks, trust companies, or other cor- No. 10—KANSAS CITY porations which come into competition with national 1929 Nov. 29 Live Stock National Bank, Pawimska, Okla 100,000 banks are permitted to act under the laws of the State Voluntary liquidation. in which the national bank is located. 1930 Feb. 18 Depew National Bank, Depew, Okla 25, 000 Absorbed by State National Bank. 24 Oklahoma National Bank, Chickasha, Okla 100, 000 Dis- Powers Chic C k o a n s s h o a li N da a t t e io d n a u l n B d a e n r k. charter and title of 100,000 Location t N ri o c . t Name of bank granted Oklahoma National Bank.. 200, 000 27 Cattle National Bank, Seward, Nebr 35, 000 Conversion of State Bank of Nebraska, Torrington, Conn 1 Torrington National Bank i 8 and 9 Seward, Nebr., nonmember. & Trust Co. Mar. 5 First National Bank, Glenvil, Nebr _. 30, 000 Everett, Mass... 1 Everett National Bank Ito9 Conversion of State Bank of Glenvil, non- Farmington, Me 1 Peoples National Bank 1 to 3 and 5 member. Cranford, N. J._ 2 First National Bank 1 to 9 7 Farmers & Merchants National Bank, Ashland, Farmingdale, N. Y__. 2 First National Bank 1 to 9 Ne C b o r nversion of Farmers & Merchants Bank, 75,000 B D e o r n w o y ra n , , P P a a. 3 4 B Fi e r r s w t y N n a t N io a n ti a o l n B al a n B k ank 1 1 t t o o 9 9 nonmember. Williamsport, Md 5 Washington County Na- Ito9 First National Bank, Victoria, Kans 25, 000 tional Bank. Farmers State Bank, nonmember 25, 000 Lenoir, N. C 5 First National Bank 1 to 9 Consolidated under charter of First National Macon, Ga 6 Macon National Bank 1 to 9 Bank and under title of Farmers National Belle Plaine, Iowa 7 Citizens National Bank 1 to 3,5 to 9 Bank 25, 000 Grand Rapids, Mich. 7 American National Bank 2, 3, 5 and 8 Farmers National Bank, Greensburg, Kans., title Hillsdale, Mich 7 First National Bank i 5 and 8 changed to First National Bank in Greensburg. Mount Vernon, Wash. 12 First National Bank 14 to 9 Kimball National Bank, Kimball, Nebr 50,000 Conversion of Bank of Kimball, nonmember. 1 Supplementary. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

269 APRIL, 1930 FEDERAL RESERVE BULLETIN FEDERAL RESERVE BANKS—RESOURCES AND LIABILITIES IN DETAIL AND FEDERAL RESERVE NOTE STATEMENT I In thousands of dollars] 1930 1929 Mar. 31 Feb. 28 Mar. 31 Gold with Federal reserve agents _ 1,695,084 1, 619,405 1, 250, 663 Gold redemption fund with United States Treasury 51,852 54, 297 62, 694 Gold held exclusively against Federal reserve notes. 1, 746,936 1, 673, 702 1, 313, 357 Gold settlement fund with Federal Reserve Board 601,913 646,153 733,450 Gold and gold certificates held by banks 666,395 644,884 654,170 Total gold reserves... _ 3,015, 244 2,964. 739 2, 700, 977 Reserves other than gold 182,428 186, 287 161,864 Total reserves.. _ _ ... 3,197,672 3,151,026 j 2, 862, 841 Nonreserve cash. 61,489 60,874 ' 64,805 Bills discounted 1 310, 228 352.917 1,095,031 Bills bought: Outright2 143,563 233, 089 183,906 Under resale agreement . 134,973 37,161 15, 797 Total bills bought.. 278,536 270, 250 199, 703 United States securities: Bought outright __ 526, 739 477,044 165. 663 "* Under resale agreement. 8,490 2,890 6,238 Total United States securities- 535,229 479,934 i 171,901 Other reserve bank credit: Other securities 8,780 13, 080 6,845 Due from foreign banks. 723 721 722 Reserve bank float3 15,779 23,317 62,158 Total reserve bank credit outstanding... 1,149, 275 1,140,219 | 1,536,360 Federal reserve notes of other reserve banks.-. 20,008 24,721 ! 16,624 Other uncollected items not included in float.. 481,482 583,197 i 5(54,070 Bank premises. _ 58, 507 58, 419 58, 693 All other resources _ 11,543 14,861 7, 971 Total resources.. 4,979,976 5,033,317 5,111,964 Federal reserve notes: Held by other Federal reserve banks. 20,008 24,721 16, 624 Outside Federal reserve banks 1, 574, 247 1,631,255 1, 674, 626 Total notes in circulation. 1,594, 255 1,655,976 1, 691, 250 Deposits: Member bank—reserve account. 2,366,934 2, 260,130 2, 356, 748 Government 40,326 42,289 28,075 Foreign bank 7,296 6,638 20, 353 Other deposits.. 20,423 18,385 20, 212 Total deposits. 2,434, 979 2,327,442 2,425, 388 Deferred availability items.. 481,482 583,197 564, 670 Capital paid in 174,227 171,841 154, 356 Surplus 276,936 276,936 254, 398 All other liabilities 18,097 17,925 21, 902 Total liabilities 4,979,976 5,033,317 5, 111, 964 Contingent liability on bills purchased for foreign correspondents 482,462 502,969 337,425 FEDERAL RESERVE NOTE STATEMENT Federal reserve notes: Issued to Federal reserve banks by Federal reserve agents 1,916, 435 2, 027,350 2,051, 324 Held by Federal reserve banks 4 _ 322.180 371, 374 360,074 In actual circulation._ _. 1,594, 255 1, 655,976 1, 691, 250 Collateral held by agents as security for notes issued to banks: Gold 1,695,084 1,619,405 1, 250, 663 Eligible paper.. 576.358 594,683 1, 245,132 Total collateral. 2, 271,442 2, 214,088 2,495, 795 i Includes bills discounted for intermediate credit banks as follows: Latest month, $1,043,000; month ago, $253,000; year ago, $13,337,000; and notes secured by adjusted service certificates discounted for nonmember banks as follows: Latest month, $38,000; month ago, $20,000; year ago, $128,000. 3 Includes bills payable in foreign currencies as follows: Latest month, $1,040,000; month ago, $1,038,000; year ago, $1,036,000. 1 Uncollected items (exclusive of Federal reserve notes of other Federal reserve banks) in excess of deferred availability items. Excludes "F. R. notes of other F. R. banks," which are consequently included in "actual circulation." Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

270 FEDERAL RESERVE BULLETIN APRIL, 1930 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 loans and invest- Loans (including over- Trn Deposits, exclusive of Rediscounts and ments drafts) mi /estiuenis interbank deposits bills payable Federal reserve district and call date All Mem- Non- All Mem- Non- All Mem- Non- All Mem- Non- All Mem- Nonbanks ber mem- banks ber mem- banks • ber mem- banks ' ber mem- banks ber member ber ber ber ber AH districts: | 1928—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 June 29. _. 58,474 35, 711 22, 763 41, 512 25, 658 15,853 16, 962 10, 052 6,910 53,852 32, 284 21, 567 1,598 1,198 399 Oct. 4 58,835 35,914 22,922 42, 201 26,165 16,036 16, 634 9,749 6,885 55,180 i 33,004 22,176 1,512 1,150 363 Dec. 31... 58,417 35,934 22,483 41,898 26,150 15,748 16, 519 9,784 6,735 55,289 33, 865 21,424 1,238 879 359 Boston: 1928—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 2,413 111 1,636 6,134 2,323 3,811 103 80 24 June 29... 6,818 2,613 4,205 4,434 1,871 2,563 2,384 742 1,642 6,209 2,297 3,912 111 86 25 Oct. 4 6,865 2,634 4,231 4,508 1,920 2,588 2,358 715 1,643 6,308 2,368 3,940 103 80 23 Dec. 31... 6,782 2,561 4,221 4,508 1,910 2,598 2,273 650 1,623 6,298 2,391 3, 907 78 49 30 Sew York: 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 11992289——DMeacr.. 3217...... 18,349 11,317 7,031 13,028 8,139 4,888 5,321 1 3,178 2,143 17, 673 11, 329 6,344 386 343 43 June 29. ._ 18, 898 11, 775 7,122 13,801 8,769 5,031 5,097 3,006 2,091 17,028 10, 351 6,677 488 453 35 Oct. 4 18,835 11, 763 7,072 13,839 8,813 5,025 4,996 2,950 2,046 18,090 11,056 7,034 284 255 29 Dec. 31... 19,494 12, 316 7,178 14, 252 9,097 5,155 5,243 3,220 2,023 18,490 11,810 6,679 279 258 21 1928—Dec. 31... 4,395 ; 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 June 29... 4,460 2,710 1,750 2,859 1,832 1,027 1,601 878 723 3,760 2, 251 1,509 164 105 58 Oct. 4 4,505 i 2, 755 1,750 2,929 1,890 1,039 1,576 865 711 3,752 2,255 1,497 170 102 68 Dec. 31... 4,395 2, 687 1,708 2,859 1,859 1,000 1,535 828 708 3,745 2,265 1,480 175 94 81 Cleveland: 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 11992289——DMeacr.. 3217..... 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 June 29... 4,927 3,488 1,439 3,380 2,376 1,004 1,547 1,112 435 4,523 3,190 1,333 138 98 40 Oct. 4 4,964 3,498 1,466 3,450 2,418 1,031 1,515 1,080 435 4,568 3,164 1,403 114 104 10 Dec. 31... 4,869 3,455 1,414 3,413 2,410 1,004 1,456 1,046 410 4,452 3,154 1,298 155 100 55 Richmond: 2,522 1,338 1,183 1,879 1,022 857 643 317 326 2,351 1,214 1,137 74 49 25 11992289——DMeacr.. 3217..... 2,537 1,351 1,186 1,883 1,024 860 653 327 326 2,302 1,196 1,106 86 55 31 June 29... 2,501 1,329 1,172 1,865 1,010 855 636 319 317 2,255 1,166 1,089 113 70 43 Oct. 4 2,501 1,299 1,202 1,868 990 878 633 309 324 2,262 1,142 1,119 111 65 46 Dec. 31... 2,435 1,278 1,157 1,813 974 838 622 303 319 2,271 1,152 1,119 76 48 28 At! int'd: 1923—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 June 29... 1,734 1,177 558 1,345 898 447 389 279 110 1,581 1,041 540 104 72 32 Oct. 4 1,719 1,149 570 1,346 889 457 373 260 113 1,571 1,004 567 123 91 33 Dec. 31... 1,629 1,115 514 1,262 855 408 366 260 106 1,548 1,020 527 66 42 23 1928—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 June 29. _. 7,958 5,052 2,906 6,046 3,792 2,254 1,912 1,260 652 7,543 4,721 2,822 221 143 79 Oct. 4 8,065 5,117 2,949 6,195 3,901 2,294 1,871 1,216 655 7,590 4,757 2,834 224 147 77 Dec. 31... 7,740 4,934 2,806 5,953 3, 770 2,183 1,788 1,164 623 7,381 4,617 2,764 205 148 58 St Louis* ' 1928—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 ?, 162 1,377 784 1 561 945 616 601 433 168 1,972 1,184 788 92 58 34 June 29. _. 2,099 1,341 757 1,531 937 594 568 405 163 1,911 1,177 733 98 59 39 Oct. 4 2,160 1,375 785 1,596 984 612 564 391 173 1,980 1,199 781 122 82 39 Dec. 31... 2,072 1,337 736 1,526 955 571 546 381 165 1,962 1,213 750 66 32 34 Minneapolis: 1928—Dec. 31...I 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 June 29. __i 1,539 923 616 945 559 387 594 364 230 1,547 904 642 22 12 9 Oct. 4 ; 1,580 957 623 987 597 390 593 360 233 1,571 906 655 47 40 8 Dec. 31... 1,507 911 597 936 563 373 572 348 224 1,519 892 626 22 12 10 1928—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 June 29. __ 1,881 1,241 640 1,310 810 499 571 430 ! 141 1,929 1,207 722 52 39 13 Oct. 4 1,901 1,247 655 1,332 i 823 509 569 424 ; 145 1,958 1,202 756 48 ! 45 3 Dec. 31.__ 1,842 1,212 630 1,293 i 804 489 549 408 : 141 1,909 1,190 719 49 ; 35 15 1928—Dec. 31...! 1,247 993 254 839 736 201 310 257 53 1,290 989 301 14 12 2 1929—Mar. 27.. 1,265 1,000 266 940 730 210 325 270 56 1,249 964 286 17 i 13 4 June 29. __ 1,217 957 260 914 705 209 302 251 51 1,177 911 266 27 i 20 8 Oct. 4 1,245 987 258 957 749 208 288 238 50 1,209 935 274 41 35 6 Dec. 31...: 1,179 936 243 907 . 714 193 273 222 50 1,186 913 272 21 ; 17 4 odii rrdncisco, 4,523 3,169 1,354 3,107 ! 2,019 998 1,416 1,060 356 i 4,576 3,200 1,376 59 ! 39 20 11992289——DMeacr.. 3217.....; 4,457 3,113 1,344 3,056 i 2,071 986 1,401 1,042 ' 3581 4,342 3,022 1,320 92 76 15 June 29...1 4,443 3,105 1,338 3,082 2, 099 983 1,371 1,007 i 355 4,391 3,068 1,323 60 42 18 Oct. 4___.'• 4,494 3,133 1,362 3,196 2,192 1,004 1,298 941 357 1 4,332 3,016 1,316 125 105 20 Dec. 31... 4,472 3,192 1,279 3,177 2, 239 938 1,295 953 342 4,529 3,247 1,282 55 44 11 1 Includes all national and State banks (including stock and mutual savings banks) and all private banks under State supervision. Back figures—See Tables 44, 45, and 85-88, Annual Report of Federal Reserve Board for 1923. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

APRIL, 1930 FEDERAL RESERVE BULLETIN 271 TABLE 2—ALL BANKS IN THE UNITED STATES i—PRINCIPAL RESOURCES AND LIABILITIES ON DECEMBER 31 AND JUNE 29 , 1929, BY STATES [Amounts in thousands of dollars] Loans and investments I Deposits, exclusive j of interbank de- Rediscounts and I Loans (including ! posits bills payable | Total overdrafts) Investments State De b c e e r m- June De b c e e r m- June De b c e e r m- June De b c e e r m- June Deh D p e 6 r rm" i J^e ! i c b ?m er - June New England: I Maine 432,528; 437,013 230, 617 230,329 201,911 206, 684i 396,468! 396, 210 10,471' 13,115! 133! New Hampshire 311,333 312,481 157,469 157, 726 153,864 154,755, 282,104, 279,683j 4, 222; 4,897i 123| 123 Vermont 250,098 256, 611 158,449 162, 055 91,649 94, 5561 235, 599' 241, 644 7,002; 5,885| 104| 104 Massachusetts 4,224,673 4, 256,805 3, 007, 5102,947,489 1,217,163 l,309,316| 3,932,012J 3,861,900 43,837! 67, 981 i 4501 452 Rhode Island 533,091 533, 554 310, 677 306, 642 222,414 226, 912! 499, 685: 498, 399 . 2,193 6, 2251 33! 33 Connecticut 1,336,338 1, 334, 3561 806,945 794,812 529, 393 539,544! 1,232,420 1,215,908 16,206 18, 574 i 237 237 Middle Atlantic: 1 N N e e w w J Y e o rs rk ey 17 2 , , 3 2 8 2 8 2 , , 3 1 1 3 2 9 ! 16 2 , , 4 5 4 6 9 3 , , 5 1 2 6 3 012 1 , , 7 6 5 3 4 3 , , 6 6 6 5 1 9 12 1 , , 6 2 5 8 4 1 , , 2 7 3 1 1 94, 7 4 5 6 4 7 , , 6 4 5 7 3 84,2 7 8 9 1 5 , , 4 29 4 2 1 ! 1 6 2 , , 3 2 4 6 0 0 , , 1 7 2 3 5 8 14 2 ,:, , 2 8 8 4 4 4 , , 6 2 7 2 6 1 1 24 4 2 8 , , 4 1 5 6 1 0 ! ! 43 7 1 2 , ,0 5 2 5 9 4 ! ! 1,1 5 2 6 7 8 1 1 1,1 5 4 6 1 7 Pennsylvan ia 5,703,176 5, 794, 577 3, 574, 655 3, 568,1542,128, 5212,226,423| 4,883,774 4, 935, 055! 207,163 j 187,125; 1, 5661 1,589 East North Central: j Ohio ; 2,691,493 2, 715, 099 2, 057,408 2,030,179 634,085 684, 920 2, 532,157, 2, 569, 047 93,819' 81, 5361 1, 015) 1, 029 Indiana ! 862,926j 896, 262 648,491 670,493 214,435 225, 769 S09,987i 835, 050 27,190! 58, 579, Illinois : 3,802,263| 3, 918, 544 2,888,118 2, 951, 576 914,145 966, 968 3,569,283 3,645,638 77, 906j 85, 335j 1, 7651 1,801 Michigan ] 2, 020, 6342, 070,043^ 1, 514,1201, 515, 099 506, 514 554, 944 l,900,537| 1,975,821 87,450! 57, 233 743 i 742 Wisconsin 917,092 654, 73^ 676,316 262,355 276, 682 894, 209] 918,472 18, 350J 26, 632 964 West North Central: Minnesota ! 901,370 915, 698 545, 564 541, 526 355, 806 374,172 879,134! 894, 369 15, 207! 12, 017 1,046J 1,072 Iowa ! 781,597 797, 323 662,441 119,156 128, 943 821,931.' 821, 913 12, 945! 11, 906 1, 257 j 1,286 Missouri 1,199, 2681,175, 786 868,107 835,145 331,161 340, 641 1, 200,4821,106,878 19,284', 42,830 1,277! 1,325 North Dakota 111,647 314,686 79, 091 83,192 32, 556 31, 494 119, 331 121, 283 1,165 2,814 412 433 South Dakota 137,494 136,1141 96, 370 95,356 41,124 40, 758 149, 808 148,777 1,568 2,424 387 396 Nebraska 359, 293 385,441 < 272, 082 291,801 87, 211 93, 640 360,964 389,814 14, 661 11,815 804 846 Kansas 404,409 412, 875 292, 628 295, 61' 111, 781 117, 258 405, 375 421,159 9,413 7,470 1,069 1,077 South Atlantic: Delaware 167,407 167, 852 119,013 119, 325 48,394 48, 527 138, 396 138, 312 2,715 4,036 47 48 Maryland 837,381 845,069. 518, 324 515, 876 319,057 329,193 792,094 782, 723 13, 708 15, 340 230 235 District of Columbia...! 244,510 255, 968' 184,67 194, 331 59, 838 61, 637 239,895 249, 710 6,021 41 41 Virginia | 551,364 554, 293; 455, 975 456,136 95, 389 98,157 460, 7181 457,016 27,850 32,084 474 481 West Virginia ! 345,126 357, 639, 280,143 288, 601 64,983 315, 589 332,053 17,217! 15, 0651 297' 310 North Carolina 369,548 390, 376' 312,154 335, 542 57,394 54, 834 356, 777 339,874 12, 6771 40,1411 416 428 South Carolina 168,618 180,992' 125,941 138, 851 42, 677 42,141 178,103 169, 768 1,218 7, 296! 217 223 Georgia 334,448 352, 429 277,199 295, 757 57,249 56, 672 315, 389 313, 742 9,920 18,3531 405 420 Florida i 258,321 311,464; 149, 838 190, 069 108,483 121,395 262, 639 311,854 6,230 7, 2301 235 257 East South Central: i Kentucky 554,237 560, 293! 438, 200 434, 595 116, 037 125, 698 447,941 443,369 21, 595 32,107 572 572 Tennessee i 429,824 431, 956 360, 570 356, 809 69,254 75,147 403,645 413,002 19,863 20, 229 4841 490 Alabama ! 282,442 306,865! 229,081 249,35" 53, 361 57, 508 266, 074 257,033 14,155 33,118 3591 350 Mississippi ' 212, 352i 222, 291 j 157, 979 170, 095 54,373 52,196 228,027 213,399 5,598 15,858 312 West South Central: j | Arkansas 197, 507j 208,174; 155,171 164,407 42, 336 43, 767 208,490; 201, 989 3,351 10, 052 415 420 Louisiana ! 429,215; 426,907, 347, 536 345,688! 81,679 81,219 409, 772 388, 925 17,950 27, 584i 2251 226 Oklahoma i 400,524' 409,896' 253,432 262,220: 147,092 147, 676 417,127 431,462 16,198 13, 665 617 649 Texas ! 1,036,407 1,071, 632 798, 590 803, 443 237, 81" 268,189 1,030,215 1,033,323 18, 512 22,473 1,308 1,333 Mountain: : Montana ! 144,130 150, 598^ 87, 700 94,242 56,430 56,356 156,463 157, 573 508 2,498 195 198 Idaho I 80,723 77,2371 49,973 48,494 30, 750 28, 743 91, 958 85,448 193 949 13' 137 Wyoming j 57,640 58,499'. 40,000 40, 345 17,640 18,154 62, 672 60,103 602 2,006 81 87 Colorado ' 262,321 265,424| 173,471 171, 380 88, 850 94, 044. 283, 978! 281,856 3,720 3,200! 274 278 New Mexico 40, 559 40,688; 25, 743 25,932 14, 816 14,756 46,044 42, 610 201 1,024 56 58 Arizona 81,188 84, 929' 49, 911 54, 331 31,27" 30, 598 91,918 93, 216 592 425 46 46 Utah 161, 748 157,980 i 126,042 121,972 35, 706 36,008 139,755 132,769 2,440 3,242 104 105 Nevada 37,988 40, 505| 29,196 30,819| 8,792 9,686 41,054 44,430 35 35 Pacific: Washington 459, 827 447, 335! 303, 645 286, 305 156,182 161,030 468, 879 450, 683 5,756 340 344 Oregon. , 260,497 260, 023 148, 041 145,445 112,456 114,578 208,181 263,340 4, 704) 6,993 234 235 California i 3,419,964 3,407, 742 2,487, 0562,413, 599 932,908 994,143 3,461,269 3,356,346 43, 285| 42, 858i 437 455 Total 58,416,990 58,474, 005 !41, 898, 39451, 511,803 16, 518, 595|16,962, 20255,289,185 53,851, 845 1, 237, 596 1, 597, 579; 24, 630 25,110 I i! 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 Dec. 31 and June 29. Bid: figures.—See Tables 89-91, Annual Report of Federal Reserve Board, 1923. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

272 FEDERAL RESERVE BULLETIN APRIL, 1930 TABLE 3.—NATIONAL BANKS i—PRINCIPAL RESOURCES AND LIABILITIES ON DECEMBER 31 AND JUNE 29, 1929, BY STATES [Amounts in thousands of dollars! Loans and investments Deposits, exclusive of interbank Rediscounts and Number of re- Loans (including deposits. bills payable porting banks State Total overdrafts) Investments Decem- Decem- Decem- Decem- Decem-; December June ber June ber June ber June ber June ber June New England: Maine 139,196 140, 300 75, 354 76,263 63,842 64,037, 126, 969 123,230 2,181 4,1 53 New Hampshire 71, 330 72, 478 44,851 45,1081 26, 479 27, 370! 60, 598 58,177 3,670 4,345 56 Vermont 70, 462 71, 417 42, 314 42, 772 28,148 28,645' 59, T" 60, 962 2,733 2,441 46 Massachusetts 1, 311, 3011,196,162 1,020,819 853, 780 290,482 342,382: 1,236,316 1,012,870 23, 891 45,917 155 Rhode Island 54, 312 53, 476 35, 368 33, 756 18, 944 19, 720i 42, 538 39, 791 1,322 2,806 10 Connecticut 258, 212 276,260 194, 310 202, 817 63,902 73,443 240,199 247, 760 5,781 8,343 62| 64 Middle Atlantic: New York 4, 662,1034,488,239 3,221,953 3,201,437 1,440,150 1,286,802 4,357,111 3, 861, 320 124,103 188,626 559| 562 New Jersey 897, 737 905, 421 602,064 595,641; 295,673 309, 780; 854,960 845,263 21,113 27, 553 300 299 Pennsylvania.. _ 2, 584, 1112, 643, 764 1, 657,1891, 654, 3361 926, 922 989,428; 2,225, 782 2, 258, 331 84, 039 91, 575 851| 861 East North Central: Ohio 725,194 727, 501 513, 715 496, 392 211,479 231,109, 670,434 659, 512 28, 291 24,606 317i 323 Indiana 373, 493 372, 333 262, 365 256, 889 111, 128 115,4441 345,166 342, 492 12, 453 10,131 219, 224 Illinois. 1, 267, 5081,245,633 954, 674 918,054 312, 834 327,579, 1,205,450 1,149,232 19, 625 31,095 482; 487 Michigan ... 521, 906 527,438 384, 256 373, 524 137, 650 153,914! 510,058 528,081 22, 952 11, 305 130! 133 Wisconsin 419,141! 434, 462 303, 347 311,129 115, 794 123, 333| 393.199 5,651 17,152 157 157 West North Central: Minnesota -- 530, 858 531, 784 343, 483 331, 639 187, 375 200,145 499,134 504, 710 8,727 6,956 266 272 Iowa 277, 283 284,405 183,156 184, 818 94,127 99, 587 269, 358 6,264 5,627 251 265 Missouri 431, 968 471, 791 312, 035| 338,190 119, 933 133, 601! 387,835 400, 382 5,839 21,023 130 134 North Dakota 71, 429 69, 651 44, 717' 43, 673 26, 712 25, 9781 74, 052 71, 349 626 1,548 122 125 South Dakota 63, 434 63, 226 37,150 37,018 26, 284! 26, 208 66,409 66, 548 504 637 92 93 Nebraska 188, 5541 192,073 135, 405J 135, 302 53,149 56, 771 173,433 170,444 8,634 8,117 157 158 Kansas 198, 338, 205,182 132, 803 135, 377 65, 535 200,825 206, 251 3,647 3,674 246 247 South Atlantic: Delaware 22, 715J 22, 506 13, 699 13,081 9,016 9,425 18,450 18,420 973 1,117 1 17 Maryland... 229, 248i 230, 506 151, 244 153,019 78,004 77,487 210,076 203, 326 4,922 80 82 District of Columbia. _. 126, 506i 130, 887 91, 790 95.191 34, 716 35, 696 121, 285 126,472 5,559 4,715 12 12 yirginia 319, 254 320,130 257,054 255,849 62,200 64,281! 268, 365 269,475 15, 373 16, 245 159 164 West Virginia 167,0011 169,194 129,435 129,854 37, 566 39,340 147,695 151, 676 8,705 8,188 115 116 North Carolina 113,166: 150, 681 91,253 122, 534 21, 913 28,147| 103, 293 126, 852 4,160 15, 619 66 73 South Carolina .._ 89. 434; 101, 380 66,150 76,417 23,284 24,963 86,720 91, 315 529 4,001 47 53 Georgia 208, 602: 209, 482 167, 690 169, 646 40, 912! 193, 687 194,096 2,638 5,231 76 80 Florida _.. 162, 22li 173,129 89,480 97,506 72, 74l| 75, 623 164, 669 171,214 2,045 1,502 57 55 East South Central: ! . Kentucky 241, 6811 247, 737 184,838 181, 233 56,843 66, 504 204,053 199,481 10,296 20, 808 138 138 Tennessee. 254, 815! 237, 716 213, 635 189,457 41,180 48, 259 224, 371 207,121 9, 8941 12, 062 99 99 Alabama 188, 3761 197, 595 145, 795 150, 975 42, 581 46, 620 168,145 161, 940 9, 226: 19, 985 107 106 Mississippi -- 74, 287| 76, 030 52. 865 56, 378 21, 422j 19, 652 73, 681 70, 243 3,210| 6,122 35 35 West South Central: Arkansas 75, 808! 78, 794 52, 058 54, 454 23, 750! 24, 340 73, 939 74, 322! 907 1, 719! 72 73 Louisiana 104, 215i 103,402 89, 279| 87,002 14, 936i 16,400 94, 379 88, 527| 3, 710! 5, 705| 34 33 Oklahoma 330, 380 334, 673 205, 9961 209, 325 124, 384| 125, 348 334, 668 347, 333 15, 692! 11, 5471 292 307 Texas.. 830, 849 613,122! 607, 331 193, 742i 223, 518 778, 525 789, 650 15, 615| 16, 747! 609 623 Mountain: Montana 77, 962; 81, 085 46, 646, 49, 554 81, 316J 31, 531 83, 962 84, 606 1,146! 67 Idaho ___ 37, 775: 35, 729 24,827 24, 331 12, 948| 11, 398 41, 569 38, 843: 35 492 43 43 Wyoming 33,181; 33, 613 21, 365 20, 852 11, 816! 12, 761 34,421 33, 505j 327 809 25 25 Colorado 203,907! 206,194 130, 553 127, 730 73, 354| 78, 464 219, 814 219, 351 3, 291| 2,249 120 121 New Mexico _ 29, 388 29, 352 18, 2291 18,162 11,159! 11,190 33, 526 31,040i 68! 553 27 28 Arizona 27, 673! 29,180 15, 692i 17.192 11, 981! 11, 988 30, 935 30, 7851 26- 14 14 Utah... 49, 206! 46, 476 35,076! 32,161 14,130 14, 315 45, 650 40, 891, 589 986, 20 20 Nevada 17, 547 17, 340 11, 822| 11, 852 5, 725i 5,488 17,090 17,523' 10 10 Pacific: Washington 266,174 267,005 170,180 166,049 95,994! 100,956 267,183 266, 394! 2, 360, 2, 945; 105 106 Oregon 1„„9, 0, „9 4-2_i 189, 600 102, 087 98, 734 88, 855! 90, i 193, 69,K 188, 885 3, 303 5, 206! 94 93 California 2,018,130| 1,933,302 1,443,226 1,321,617 574, 904, 611, 6852, 057, 6331, 898, 8361 29, 898: 23, 373 2O.f 211 Total ..21,584,328,21,456,563 15,136,414 14,805,401 6,447, 914| 6, 651,162J20, 290, 373 19, 411, 384 545, 587J 714,107, 7, 403 7,530 I 1 Member banks only; i. e., exclusive of national banks in Alaska and Hawaii. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

APRIL, 1930 FEDERAL RESERVE BULLETIN 273 TABLE 4.—STATE BANKS i—PRINCIPAL RESOURCES AND LIABILITIES ON DECEMBER 31 AND JUNE 29, 1929, BY STATES [Amounts in thousands of dollars] Loans and investments Deposits, exclusive Rediscounts Number o/ re- Loans (including o p f o s i i n ts terbank de- a p n a d y a b b il l l e s porting banks State Total overdrafts) Investments De b c e e r m- June De b c e e r m- June De b c e e r m- June De b c e e r m- June De b c e e r m - j June De b c e e r m - ; ' June New England: Maine 293,332 296,713 155,263 154,066 142,647 269,499 272,980 8,290 8,226 81 New Hampshire 240,003 240,003 112,618 112,618 127,385 127,385 221,506 221,506 552 552 j 67 67 Vermont 179,636 185,194 116,135 119,283 63, 501 65,911 175, 611 180,682 4, 3,444 58 58 Massachusetts 2,913,372 3,060, 643 1, 986,691 2,093,709 926,681 966,934 2, 849,030 19,946 22,064' 298 297 Rhode Island 478,779 480,078 275,309 272,886 203,470 207,192 457,147 458, 608 8711 23 23 Connecticut 1,078,126 1,058,096 612, 635 591,995 465,491 466,101 992,221 968,148 10,425 10,231 175 173 Middle Atlantic: New York. 12, 560,036 .2,074,921 9, 532, 708 9,080,282: 30,27,328 2,994,639 11,983,014 10,982,901 118, 348242,928; 568 579 New Jersey 1,490,575 1, 544,102 1,031, 595 1, 058, 590 458,980 485,512 1,405,778 1,439,413 27,047 44,476! 268 268 Pennsylvania 3,119,065 3,150, 813 1,917,466 1,913,818! 12,01, 599l,236,995i 2,657,992 2,676,724 123,124 95, 550; 715 728 East North Central: Ohio 1,966,299 1,987,5981! 1, 543,693 1, 533,787 422, 606 453,811 1, 861,7231,909, 535 2 65, 5282 56, 930^ 706 Indiana _ 489,433 523,929'i 386,126 413, 604 103,307 110,325 464,821 492,558 14, 737 48,448J 7501 762 Illinois. .._ 2,534,755 2, 672,911 j 1,933,444 2, 033, 522 601,311 639,389 2,363,833 2,496,406 58,281 54,240: 1,283| 1,314 Michigan 1,498,728 1, 542, 605 I1,129,864 1,141, 575 368,864 401,030 1,390,479 1,447,740 64,498 613! 609 Wisconsin.... 497,951 518, 536 351,390 365,187 146,561 153, 349 499,510 525,273 12,699 9,480 803 807 West North Central: Minnesota.... _J 370,512 383,914 202,081 209,887 168,431 174,027 380,000 389,659 6,480 5,061 780| 800 Iowa. I 504,314 512,918| 479,285 483,562 25,029 29,356 3 554,993 3 552, 555 6,681 6,279 1,006 1,021 Missouri.. 1 767,300 703, 995; 556,072 496,955 211,228 207,040 3 812,647 3 706,496 13,445 21,807 1,147i 1,191 North Dakota ! 40,218 45,035! 34,374 39, 519 5,844 5,516 45,279 49, 934 539 1,266 290 308 South Dakota j 74,060 72,888' 59,220 58,338 14,840 14, 550 83,399 82,229 1,064 1,787{ 295 303 Nebraska 170,739 193, 368 i 136, 67" 156,499 34,062 187, 531 219,370 6,027 3, 698 647; 688 Kansas 206,071 207, 693 159, 825 160, 240 46,246 47,453 3 204, 550 3 214,908 5,766 3,796J 823: 830 South Atlantic: Delaware 144,692 145,346 105, 314 106,244 39,378 39,102 119,946 119, 892 1,742 2,919 30i 31 Maryland 608,133 614,563 367, 080 362,857 241,053 251,706 582,018 579.397 8,786 8,671 150 153 District of Columbia... 118,004 125, 081 92,882 99,140 25,122 25,941 118,610 123, 238 2,534 1,306 29 29 Virginia 232,110 234,163 198,921 200, 287 33,189 33,876 192, 353 187, 541 12,477 15,839 315| 317 West Virginia 178,125 188,445 150, 708 158, 747 27,4r 29,698 167,894 180, 377 8,512 6,877 182, 194 North Carolina 256,382 239, 6951 220,901 213, 008 35,481 26,687 253,484 213,022 8,517 24, 522 350 355 South Carolina 79,184 79, 612' 59,791 62,434 19, 393 17,178 91, 383 78,453 689 3,295 170 170 Georgia 125,846 142,947 j 109, 509 126, 111 16,337 16,836 121, 702 119, 646 7,282 13,122 329: 340 Florida 96,100 138, 335 60,358 92, 563 35, 742 45, 772 97,970 140,640 4,185 5,728 178; 202 East South Central: Kentucky 312,556 312,556! 253,362 253,362 59,194 59,194 243,888 243,888 11,299 11,299. 434 434 Tennessee 175,009 194, 240 146,935 167,352 28.074 26,888 a 179,274 3 205,881 9,969 8,167! 385 391 Alabama i 94,066 109,270; | 83,286 98, 382 10,780 10,888 3 97,929 3 95,093 4,929 13,133; 243 244 Mississippi ! 138,065 146, 26111 105,11 113,717 32,951 32,544 154, 346 143,156 2,388 9,736' 273 277 West South Central: Arkansas.- j 121,699 129,380ii 103,113! 109,953 18, 586 19,427 134,551 127,667 2,444 8,333 343 347 Louisiana i 325,000 323,505!] 258,2571 258,686 66, 743 64,819 315, 393 300.398 14,240 21,879i 191 193 Oklahoma ! 70,144 75,223H 47,436! 52,895 22, 7081 22,328 82,459 84,129 506 2,118 325 342 Texas ! 229,543 240,78311 185,468! 196,112 44.075 44,671 251,690 243,673 2,897 5, 726: 710 Mountain: Montana 66,168! 69,513; 41,054 44,1 25,114 24,825 72, 501 72,967 318 1, 352! 129 Idaho 42,948 41, 5081 25,146: 24,163 17,802 17,345 50,389 46,605! 158 457; 94| 94 Wyoming 24,459 24,886 18,6351 19,493 5,824 5,393 28, 251 26, 598! 275 1,197 62 Colorado ' 58,414 59, 230i 42,918| 43, 650 15,496 15,580 64,164 ??^! 429 951j 154 157 New Mexico I 11,171 11,336 7, 514 7,770 3,657 3,566 12, 518 ; 133 471 29 30 Arizona ! 53,515 55, 749 34,219| 37,139 19,296 18,610 3 60,983 3 62,431! <566 * 425! 32 32 Utah ! 112,542 111, 504 90,9661 89,811 21, 576; 21,693 94,105 91,878 1,851 2, 256^ 84 85 Nevada ! 20,441 23,165 17, 3741 18,967 3,067 4,198 23,964 26,907 25 25 Pacific: I Washington- j 193,653 180,330 133,465! 120,256? 60,188 60,074 201,696 184, 289 1,478 235 238 Oregon. ! 69,555 70,423! 45,954i 46,711 23, 601! 23, 712 74,486 74,455! 1, 401 1, 787; 140 142 California j 1,401,834 1,474, 440 j l,043,830i 1,091,982! 358, 004J 382,458 1,403,636 1, 457, 510! 13, 38719,485 232 244 Total ;36,832,662^7, 017, 442| 26,761,98126, 706,402 10, 070, 68110, 311, 040 34, 998,812J34,440,461| 692, 009 880, 053 17,227 j 17,580 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. 1 Includes bonds borrowed. 8 Includes due to banks. * Includes miscellaneous liabilities. NOTE.—-All figures in the December columns are as of Dec. 31, except as follows: Maine, Dec. 28; New Hampshire, June 30; Massachusetts, State banks Dec. 28, savings banks Oct. 31; Kansas, Dec. 3; Kentucky, June 29; Tenrfessee, Nov. 29; Colorado, Nov. 25; Oklahoma, Dec. 28. All figures in the June columns are as of June 29, except as follows: Minnesota, July 15; Missouri, Apr. 10; Kansas, June 27; Tennessee, Apr. 15. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

FEDERAL RESERVE DISTRICTS N. DAK, 9 ^ MINN. ; MINNEAPOLIS^) S.DAK. KANSAS CITY KANS. ARK. Little*Rock/ ——•BOUNDARIES OF FEDERAL RESERVE DISTRICTS .-—BOUNDARIES OF FEDERAL RESERVE BRANCH TERRITORIES ® FEDERAL RESERVE BANK CITIES • FEDERAL RESERVE BRANCH CiTJES O FEDERAL RESERVE. BANK AGENCY Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis