Federal Reserve Bulletin, 1930-05

FEDERAL RESERVE BULLETIN MAY, 1930 ISSUED BY THE FEDERAL RESERVE BOARD AT WASHINGTON Bank Credit and the Capital Market Annual Reports of Central Banks: Belgium, Germany, Japan, and Switzerland UNITED STATES GOVERNMENT PRINTING OFFICE WASHINGTON: 1930 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

FEDERAL RESERVE BOARD Ex officio members: ROT A. YOUNG, Governor. A. W. MELLON, EDMUND PLATT, Vice m 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 Chief, Division of Examination, and Chief Federal and Statistics. 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) HOWARD A. LOEB. 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 H. Curtiss W. W. Paddock W. Willett. New York j H Case Geo. L. Harrison _ _ E L . . R F, . S K a e il n e z r e l . R C a . y H M . C . o G e i d * ney.i A. W. Gilbart J. W. Jones.i L. R. Rounds W. B. Matteson.i J. E. Crane J. M. Rice.* Walter S. Logan Allan SprouU Philadelphia.. R. L. Austin Geo. W. Norris Wm. H. Hutt C. A. Mcllhenny. W. G. McCreedy.* Cleveland George DeCamp E. R. Fancher M. J. Fleming H. F. Strater. Frank J. Zurlinden Richmond Wm W Hoxton George J. Seay C. A. Peple Geo. H. Keesee. R. H. Broaddus John S. Walden, jr.» | Atlanta Oscar Newton Eugene R. Black Hugh Foster M. W. Bell. Creed Taylor... Chicago Wm. A. Heath _ J. B. McDougal C. R. McKay W. C. Bachman.1 John H. Blair K. C. Childs.* J. H. Dillard.i D. A. Jones.' 0. J. Netterstrom.» St. Louis. Rolla Wells Wm. McC. Martin 0. M. Attebery S. F. Gilmore.i A. H. HailU F. N. HalU G. 0. Hollocher.» C. A. Schacht.* Minneapolis... John R. Mitchell W. B. Geery Harry Yaeger _. Gray Warren. H, I. Ziemer>_ Frank C. Dunlop.1 Kansas City... M. L. McClure W. J. Bailey... C. A. Worthington J. W. Helm. Dallas C. C. Walsh _ Lynn P. Talley RT . WR . TGTAiIl bmert 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 i Assistant deputy governor. » Controller. MANAGING DIRECTORS OF BRANCHES OF FEDERAL RESERVE BANKS Federal Reserve Bank of— Managing director Federal Reserve Bank of— Managing director j New York: Minneapolis: i Buffalo branch _ _ R. M. O'Hara. Helena branch R. E. Towle. i Cleveland: Kansas City: I Cincinnati branch C. F. McCombs. Omaha branch. L. H. Earhart. j Pittsburgh branch.. J. C. Nevin. Denver branch J. E. Olson. | Richmond: Oklahoma City branch. C. E. Daniel. Baltimore branch A. H. Dudley. Dallas: Charlotte branch__ Hugh Leach. El Paso branch 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. H. Glasgow. Little Rock branch. A. F. Bailey. SUBSCRIPTION PRICE OF BULLETIN The FEDERAL RESERVE BULLETIN is the board's medium of communication with member banks of the Federal reserve system and is the only official organ or periodical publication of the board. The BULLETIN will be sent to all member banks without charge. To others the subscription price, which covers the cost of paper and printing, is $2. Single copies will be sold at 20 cents. Outside of the United States, Canada, Mexico, and the insular possessions, $2.60; single copies, 25 cents. in Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

TABLE OF CONTENTS Page Review of the month—Bank credit and the capital market 275 The credit situation—Decrease of commercial loans—Growth of bank investments—Growth of brokers' loans—The capital market. Annual report of the Bank of Belgium 294 Annual report of the German Reichsbank 298 Annual report of the Bank of Japan 302 Annual report of the National Bank of Switzerland 305 Recent currency legislation in Switzerland 312 National summary of business conditions 278 Financial, industrial, and commercial statistics: Reserve bank credit and factors in changes (chart and table) 279, 280 Analysis of changes in monetary gold stock 280 Gold movements to and from United States., 280 Member bank borrowings at Federal reserve banks 281 Discount rates and money rates 281,282 Member bank credit 283 Bankers' acceptances and commercial paper outstanding 283 Brokers' loans 283 Security prices, security issues, and building contracts awarded 284 Production, employment, car loadings, and commodity prices 285 Industrial production 286 Factory employment and pay rolls 287 Banking and business conditions in Federal reserve districts: Federal reserve banks— Discounts (chart and tables) 288, 289 Reserves, deposits, note circulation, and reserve percentages 289 All member banks—Deposits subject to reserve, reserves held, and indebtedness at reserve banks. _ 289 Member banks in leading cities—Principal resources and liabilities 290 Bank debits 290 Building 293 Department stores—Indexes of sales and stocks 293 Commercial failures 293 Bank suspensions 293 Financial statistics for foreign countries: Gold holdings of central banks and governments 314 Gold exports and imports 314 Condition of central banks . 315, 316 Condition of commercial banks 317 Discount rates of central banks 318 Money rates 318 Foreign exchange rates 319 Price movements 320, 321 Law department: Passage of trust powers upon consolidation of a national bank and a State trust company—Opinion of the Supreme Court of Tennessee 322 Authority of Congress for erection of Pittsburgh branch building 324 Amendments to Federal reserve act 325 Detailed Federal reserve statistics, etc.: Resources and liabilities of Federal reserve banks in detail and Federal reserve note statement 327 Condition of each Federal reserve bank at end of month 328-330 Maturity distribution of bills and short-term securities held by Federal reserve banks 331 Membership in par collection system - 331 Changes in national and State bank membership 332 Fiduciary powers granted to national banks 333 IV Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

FEDERAL RESERVE BULLETIN VOL. 16 MAY, 1930 No. 5 REVIEW OF THE MONTH Government securities by $350,000,000 and their holdings of acceptances by $100,000,000, The credit situation has continued to be these open-market operations having tended relatively easy in recent weeks. Demand for to reduce member-ba.nk rediscounts without credit from commercial sources changing the total volume of reserve-bank The credit has declined further, while desituation credit in use. Easier conditions prevailing in mand from the securities marthe money market, therefore, which accord kets has increased. During the last two months with the lower level of member bank indebtedincreased activity in the securities markets, a ness at the reserve banks, reflect gold imports large volume of bond issues, and—until the from abroad, a reduced domestic demand for middle of April—a rising level of stock prices currency, and a more liberal open-market have been accompanied by an increase of more policy by the Federal reserve system. than $785,000,000 in brokers' loans at New The recent increase in member bank loans York City. Loans and investments of member has been altogether in the form of loans on banks in leading cities, after reaching a'low securities to brokers and dealers point at the end of February, increased in Decrease of ^ i New York Qt Avaiable March and April by about $750,000,000, reflect- commercial J ing growth in their security loans and in their information lor member banks Ioans investments, while "all other" loans continu- in leading cities indicates that ously declined. Indebtedness of member banks other borrowers have been paying off their at the reserve banks decreased further in the loans, both secured and unsecured, at a rapid two months by about $135,000,000, chiefly rate since the end of last October and that on account of liquidation made possible to the during this period they have liquidated about member banks by gold imports from the Orient $2,000,000,000 of such loans. This decrease and South America and a further inflow of cur- has reflected in part diminution in the demand rency from circulation. As compared with a for credit by trade and industry, owing to the year ago, the volume of credit extended by the prevailing recession in activity,1 but has also member banks is larger by about $450,000,000, reflected a shift by borrowers on securities and but the volume of their rediscounts with the otherwise from seeking direct accommodation Federal reserve banks has declined from nearly at their own banks to borrowing indirectly $1,000,000,000 to about $200,000,000, the through brokers. Such a shift is indicated by lowest level since 1917. The funds for the the fact that loans on securities by banks in reduction of these rediscounts have been de- leading cities to borrowers other than brokers rived from the addition of $200,000,000 to the have decreased considerably; it is also suggested country's stock of monetary gold, largely by the fact that in recent months the decrease through imports from abroad, and an inflow of in "all other" loans, that is, loans not secured $150,000,000 of money from circulation, caused by stocks and bonds, has been largely at banks by decreased activity of trade and industry in New York City. It would appear, therefore, and a decline in the price level, the funds from that borrowers on securities and on regular both of these sources having tended to decrease lines of credit, who had used the proceeds of the total volume of reserve-bank credit, as their loans for the purpose of carrying or tradwell as the volume of rediscounts by member ing in securities, have been influenced by the banks; in addition, the Federal reserve banks prevalence in the open market of lower rates have increased their holdings of United States i The Board's current summary of business conditions in the United States appears on page 278. 275 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

276 FEDERAL RESERVE BULLETIN MAY, 1930 than at their banks, to transfer their borrow- factor in the recent growth of brokers' loans, ings from these banks to their brokers, who can which include loans to issuing houses, has been borrow at the open-market rate. This shift the large volume of bonds issued and in process represents a reversal of the movement that of distribution. took place in 1929 during the period of ex- • The course of brokers' loans, showing a distremely high rates on stock-exchange loans, tribution between loans by banks and loans by when borrowings for the financing of security other lenders, is presented in the chart for the operations were transferred in considerable period since the end of 1927. During Decemvolume from the brokers to the banks. This ber, 1929, and the first two months of 1930 shift from other loans to brokers' loans has been there was relatively little change in the aggrea factor in the large increase in stock-exchange gate of brokers' loans, funds withdrawn by loans that has characterized the period. nonbanking lenders being replaced by funds Liquidation of loans to others than brokers MILLIONS OF DOLLARS MILLIONS OF DOLLARS in recent months has taken place in all Federal 7000 7000 reserve districts, and funds Growth of bank placed in the New York money 6000 6000 investments market have come from banks throughout the country. Member bank holdings of investments, as measured by the 5000 5000 figures for reporting member banks, after showing little change from the first of the 4000 4000 year, increased in the last half of March and less rapidly throughout April in the amount 3000 3000 altogether of about $260,000,000. Excepting the period of the October-November break in the securities markets this is the most rapid 2000 2000 increase in the banks' investment portfolio since November, 1927. This increase in the 1000 1000 investments of member banks is another indication of the fact that these banks do not encounter a demand for all their funds from their 1928 1929 1930 commercial customers, and seek to employ the Loans by reporting member banks in New York City (1) for own surplus in the purchase of investments as well account and account of out-of-town banks and (2) for account of others as in making loans on the stock exchange. Growth of brokers' loans in the past has loaned by the banks themselves. Further usually accompanied an advance in security withdrawals by nonbanking lenders were made prices, and this has been the in March, but from the end of February the Growth of case in recent months, but money placed in the call market by the banks brokers' loans since early in April the advance exceeded these withdrawals. The growth of in brokers' loans has continued, while security brokers' loans in April represented not only prices have tended to recede. Between the a further increase in lending by banks, but also end of December and the first week in April an increase of $120,000,000 of loans for other prices of common stocks advanced by 20 per lenders, the first growth in this class of loans cent, but later in April they showed a down- since last October. At their present level of ward tendency. The advance in stock prices $1,400,000,000 loans for nonbanking lenders had been almost continuous for more than placed by reporting New York banks, notwiththree months, becoming especially rapid after a standing the recent increase, are lower than period of pronounced ease in the money market at any time during the two years between the for a few days in the early part of March. A spring of 1928 and the end of March, 1930. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

MAY, 1930 FEDERAL RESERVE BULLETIN 277 Loans to brokers by banks, on the other hand, cent at the Federal Reserve Bank of Dallas, effective April 8; at the Federal Reserve Bank which total $2,900,000,000 at the present time, of Richmond, effective April 11; at the Federal are close to the highest levels that they have ever Reserve Bank of Atlanta and the Federal Rereached, and brokers' loans by banks in New York serve Bank of St. Louis, effective April 12; and City for their own account are larger than at any at the Federal Reserve Bank of Minneapolis, previous time, excepting only the week follow- effective April 15. ing the break in the stock market last October.' The discount rate at the Federal Reserve Bank of New York was reduced from 3% to 3 With greater activity in recent months in the per cent, effective May 2. The buying rate on markets for securities, the volume of new bills with maturities from 1 to 120 days was securities issued has been in- reduced from 3 to 2% per cent, effective May 1, e capi a creasing and in the first quarter and to 2% per cent, effective May 2. Rates maF e of 1930, at $2,140,000,000, was on bills with maturities of 4 to 6 months were reduced from Sji to 3 per cent, effective May 2. much larger than in the final quarter of last year, but continued to be below the exceptional levels of the late months of 1928 and the Changes in Foreign Central Bank Discount Rates first three quarters of 1929. More than half The following changes have been made since of the new issues during the last six months the 1st of April in the discount rates of central have been in the form of bonds, for the first banks in foreign countries: April 3, Bank of time in more than a year, and from January Sweden, from 4 to 3% per cent; Imperial Bank through March bonds represented more than of India, from 7 to 6 per cent; National Bank of Switzerland, from 3^ to 3 per cent; April 75 per cent of the new issues. New foreign 24, Bank of Italy, from 6K to 6 per cent; securities issued in the American market during April 28, Bank of Finland, from 7 to 6% the quarter in the amount of $300,000,000 repre- per cent; May 1, Bank of England, from 3% to sented about one-sixth of all bond issues. Pre- 3 per cent, and National Bank of Belgium, from liminary figures for April indicate that as in 3K to 3 per cent; May 2, Bank of France, from 3 to 2}i per cent, and Bank of Danzig from 5% to previous months most of the new financing in 5 per cent; May 3 Bank of Denmark, from 0 the American market was accomplished through ; 2 to 4 per cent. the issue of bonds. Bond prices advanced in February andMarch Revision of Member Bank Reporting Service to the highest level in nearly two years, but after the third week in March they receded. In the Beginning with the statement for April 23, secondand third weeks of March, when excep- 1930, the statistics for weekly reporting member banks in leading cities have included tionally easy credit conditions accompanied figures of a number of selected banks in the Chithe quarterly Treasury financing, bond prices cago district—but outside the city of Chicago— advanced by 1.5 per cent, but in subsequent in the place of figures for one large bank in weeks they declined by more than one-half of this Chicago. This change was necessitated by the withdrawal of this bank from the Federal reamount. A factor in this decline, in addition to serve system through merger with a nonmemthe passing of the temporary period of exceptionber bank; the merger occurred in 1929 but by al ease in the money market, was the continued special arrangement it did not affect the reissue of new bonds in substantial volume. Fur- porting service until recently. Adjustment of thermore, the preference of in vestors for stocks the reporting service has been made in such manner as to preserve as nearly as possible has continued in recent months, as for several the comparability of the series for the Chicago years past, and has been a factor in making the district and for the country as a whole. For revival of the bond market slow and irregular. the city of Chicago, however, since the new series must be at a level considerably lower than the old one, comparable figures have been Changes in Discount Rates and Bill Rates prepared back to the beginning of 1929; these The discount rate on all classes and maturi- are given by months on page 283, and recent ties of paper was reduced from 4% to 4 per weekly ^figures are given on page 290. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

278 FEDERAL RESERVE BULLETIN MAY, 1930 Annnal Report of the Federal Reserve Board tables giving all the items of the so-called " elements analysis"—reserve bank credit, gold The text of the annual report of the Federal stock, money in circulation, member bank re- Reserve Board, covering operations for 1929, serve balances, etc.—and statistics relating to was presented to Congress on April 24 and re- discount rates and money rates and to banking leased for publication April 25. and business conditions generally. It also gives The complete edition of the report is now in the recommendations made by the Federal press and is expected to appear in May. It con- Advisory Council during 1929 and court decitains, in addition to the text of the report, sions relating to the Federal reserve system. NATIONAL SUMMARY OF BUSINESS CONDITIONS [Compiled April 21 and released for publication April 24] Industrial production declined in March, Distribution.—Freight carloadings, which while factory employment and pay rolls showed have been at low levels in recent months, did little change, and wholesale prices continued not show the usual seasonal increase during to decline. There was an increase in construc- March. Department-store sales continued in tion, as is usual a,t this season. Interest rates smaller volume than a year ago. continued to decline in the first three weeks of Wholesale prices.—Wholesale prices, which March, but later became somewhat firmer. began to decline last summer, continued to Production.—Production in basic industries move downward in March to the lowest level declined in March, contrary to the usual since 1916, the decline reflecting chiefly sharp seasonal trend. Average daily output of steel, decreases in prices of agricultural products. coal, and copper decreased substantially, while Prices of imported raw materials, such as output of cotton and wool textiles declined at sugar, coffee, and silk, fluctuated around the about the usual seasonal rate. Production of low levels reached in February. The price of automobiles and lumber increased. silver advanced slightly from the low point For the first quarter of the year, taken as a reached early in March. whole, output of basic industries was consid- In the last week in March and the first'week erably smaller than in the unusually active in April there were advances in prices of agrifirst quarter of 1929 and smaller than in any cultural products, especially grains and cotton, other first quarter since 1925. In the steel and while the price of steel declined. On April 15 automobile industries output for the first three the price of copper was sharply reduced, and in months, though smaller than in 1929, was about the same week prices of a number of other imthe same as in the corresponding months in portant commodities also declined. 1928, while in most of the other major indus- Bank credit.—At member banks in leading tries it was smaller than in either of the two cities total loans and investments increased in preceding years. the 4-week period ending April 16, reflecting a Building contracts awarded increased sub- growth of $184,000,000 in loans on securities stantially in March as is usual at this season, and of $80,000,000 in investments, offset in according to reports of the F. W. Dodge Cor- part by a further decrease of $186,000,000 in poration. In comparison with a year ago, a "all other" loans. large increase in contracts for public works and Member-bank indebtedness at the reserve utilities was more than offset by a decrease in banks and total reserve-bank credit declined residential building. Average daily awards in further between the weeks ending March 15 the first half of April were somewhat larger and April 12, reflecting primarily additional than in March, but continued smaller than a imports of gold from the Orient. year ago. In the third week of March money rates in Employment.—Factory employment and the open market reached the lowest levels since pay rolls, which usually increase during March, 1924, but in the next three weeks were somechanged little from February and continued to what firmer. Rates on commercial paper be considerably smaller than in other recent declined to a range of 3%-4 per cent on March years. The number of workers employed in 24 and remained steady at that level; rates on the automobile industry increased somewhat 60-90 day bankers' acceptances were reduced to less than is usual at this season, and reductions 2K per cent on March 20 but later advanced to in employment and in earnings were reported 3 per cent. Bond yields, after declining during in the iron and steel, machinery, and car- most of March, increased gradually in the first building industries. half of April. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

279 MAT, 1930 FEDERAL RESERVE BULLETIN FEDERAL RESERVE BANK CREDIT RESERVE BANK CREDIT OUTSTANDING AND PRINCIPAL FACTORS IN CHANGES MILLIONS OF DOLLARS MILLIONS OF DOLLARS 1926 1927 1928 1929 1930 Based on weekly averages of daily figures; latest figures are for week ending April 26 109492—30 2 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

280 FEDERAL RESERVE BULLETIN MAY, 1930 RESERVE BANE CREDIT OUTSTANDING AND FACTORS IN CHANGES [Averages of daily figures. In millions of dollars] Reserve bank credit outstanding Factors of decrease * Factors of increase i Month or week B co il u ls n d te i d s- bo B u il g ls ht se U S c n t u i a r t i t t e e i s d es r c O e b r s e a t e d h n r e i k v t r » e Total Mo s g t n o o e l c t d k ary o T c u u r t r e s r i a t n e s a g n u n c r d y y - in M la c o t i i n r o c e n u y - M b r a b e e l s a a m e n n r b k c v e e e r s m b c a l N e e l m a a o r n n b i c n - e e g r s p c U f e a u n n p n d e i d t x e a s - d l 1929—January 859 473 62 1,613 4,115 1,789 4,748 2,387 351 February 385 184 44 1,502 4,143 1,784 4,686 2,357 357 March 265 197 50 1,481 4,166 1,791 4,709 2,337 361 April 1,004 156 165 52 1,377 4,226 1,785 4,679 2,308 366 May 956 145 153 49 1,303 4,292 1,787 4,684 2,296 370 June 978 99 179 61 1,317 4,311 1,779 4,687 2,314 376 July 1,096 75 147 62 1,380 4,335 1,790 4,764 2,334 376 August 1,043 124 155 54 1,376 4,351 1,781 4,777 2,322 382 September 229 165 64 1,427 4,368 1,766 4,811 2,335 387 October 885 337 154 74 1,450 4,381 1,785 4,810 2,386 392 November 953 296 315 67 1,631 4,374 1,789 4,845 2,521 December 320 446 74 1,643 4,324 1,797 4,943 2,395 1930—January 601 314 485 67 1,357 4,283 1,784 4,652 2,349 February 378 285 480 38 1,181 4,319 1,781 4,556 i 2,305 March 274 246 540 35 1,095 4,395 1,797 4,533 | 2,330 397 April ! 231 266 530 45 1,072 4,443 1,781 4,518 2,350 400 Week ending (Saturday)— i Apr. 5. ! 249 292 532 44 1,117 4,427 1,772 4,540 2,350 399 Apr. 12 i 242 271 528 33 1,074 4,435 1,781 4,529 2,337 , Apr. 19 ! 220 285 533 57 1,095 4,439 1,786 4, 531 2,358 400 Apr. 26 ! 228 251 528 47 1,054 I 4,449 1,780 4,500 2,354 400 i For explanation see BULLETIN for July, 1929, pp. 432-438. a 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 (—)during month 1930 Gold Month m a s t t o o o e n c f n k t d h Total T n i h m et r o p o g r o u o r g l t d h T m o h a p e r r a o e k r r u - a i g n - h g d T p o h r t m o i r o o d e n u u s , g c ti - h c From or to— A li p m ri i l n a (p ry re ) - March Ja M nu ar a c r h yexport tions etc.* Im- Ex- Im- Ex- Im- Ex- 1928—July 4,113 3.4 -63.9 60.9 6.4 ports ports ports ports ports ports August 4,123 10.3 0.7 5.9 3.7 September 4,125 2.1 0.5 2.8 October- 4,142 17.3 13.3 L2 2.8 England * 4 195 7 195 November 4,128 -14.0 6.7 -25.0 4.3 France. 7 27 8,497 December 4,141 13.2 23.3 -15.7 5.6 Germany . . 2 20 25 156 Total (12 mos.).. ! -237.9 -392. 0 119.6 34.5 Netherlands Canada 3,100 24 8,886 70 1929— F J e a b n r u u a a ry ry 4 4 , 1 1 2 5 7 3 -1 2 4 6 . 4 4 4 2 7 5 . 2 5 -65.0 3 . . 9 4 MCeenxtircaol America 4 24 59 9 1 6 5 7 7 2 2 8 415 March 4,188 34.4 24.8 7.5 2.1 Argentina 28 325 April 4,260 72.4 23.1 48.6 0.7 Brazil 36,738 5,425 22,678 May 4,301 40.6 23.6 16.1 0.9 Chile 39 84 June 4,324 23.4 30.2 -7.5 0.7 Colombia 1,155 i 2 440 July 4,341 16.3 34.7 -22.0 3.6 Ecuador. 226 482 August 4,360 18.9 18.4 -1.0 1.5 Peru_ 2,396 212 660 September 4,372 12.1 17.6 -6.6 1.1 Venezuela 44 129 October. 4,386 14.4 17.5 -4.5 1.4 British India November 4,366 -19.8 -23.2 1.0 2.4 China and Hong December 4, 284 -82.3 -64.4 -22.0 4.1 Kong 21,583 2 410 3 250 99 Dutch East Indips 139 50 380 KCi Total (12mos.)._ 142.4 175.1 -55.4 22.7 Japan 38, 314 79, 222 9Q7 764 1930—January 4,293 8.8 4.0 2.5 2.3 New Zealand 15 1 54 February 4,355 61.9 60.0 0.0 1.9 All other countries.. 11,605 190 42 2,163 40 IVTarch 4 423 68 2 55 5 13 0 —0 3 April v 4,491 68.1 62.2 0.5 5.4 Total 2 62,332 90 55,768 1 290 128,874 9,445 i For explanation of this figure, which isderived from preceding col- 1 Includes all movements of unreported origin or destination. umns, see BULLETIN for December, 1928, p.831. 1 At New York—imports, $40,739,000; exports, $90,000. Elsewhere— J» Preliminary. imports, $21,593,000. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

281 MAT, 1930 FEDERAL RESERVE BULLETIN 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 1 C)ther leading cities outside leading Month or date Total New York City cities i Tc>tal Chicago 1929 1930 i 1929 1930 1929 1930 1929 1930 1929 1930 1929 1930 January 891 462 i 663 247 190 39 473 208 69 7 228 215 February.. 893 371 1 659 174 131 21 528 153 93 1 234 197 March 978 247 i 740 81 166 1 574 80 121 238 166 April 991 725 162 563 46 266 May 951 661 i 145 516 36 290 June 972 670 165 505 64 302 July 1 100 801 319 482 ... 47 299 August 1,013 717 196 521 32 296 September 974 706 166 540 :::. 18 268 October 885 I 634 74 560 38 251 November 944 655 60 595 ...... 28 289 December 755 i 490 80 410 37 265 ! 1 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 Average yield Rate in Date Previous on— on— Federal reserve bank ef M fec a t y o 3 n e li s s t h a e b d - rate Call loans * U. S. Boston 4 Feb. 13 Month or week P c r o i m m - e P ba ri n m k e - Time T u re ry as- New York 3 May 2 merical ac e c r e s p ' t- lo 9 an 0 s, n a o n t d es T u r r e y as- P C R h l i e c i v l h a e m d la o e n l n p d d hia. __ 4 4 4 M M Ap a a r r r . . . 1 1 2 5 1 0 4 4 3 3 4 4 months! da 9 y 0 s days3 New ne R w e- al m c c 3 e o a r t n t t o e i t f s h i 6 , - s bonds1 Atlanta 4 Apr. 12 4H Chicago 4 Feb. 8 434 St. Louis 4 Apr. 12 1929 Minneapolis 4 Apr. 15 4H April _ 9.46 4.80 3.67 Kansas City 4 Feb. 15 4H May _ 8.79 8.91 5.09 3.67 Dallas 4 Apr. 8 June 8 -834 7.83 7.70 •4.80 3.71 San Francisco.. 4 Mar. 21 July m 734-8 9.41 9.23 4.55 3.68 August 6 -6H 8.15 8.23 4.70 3.72 September 6H 8.62 8.50 «4.58 3.70 BUYING RATES C N ACCEPTANCES October 6H 7 -9 6.10 6.43 4.37 3.67 (Buying rates at the Federal Reserve Bank of New York] November _ 5H-6H 5.40 5.44 3.47 3.45 December... 5 3^-4 4.88 4.83 <3.03 3.46 Maturity e R M ff a e t a c e t y 3 o in n j j J l e i D s sh t a a e t b e d - Pre ra v t i e ous Januar 1 y 930 4.31 4.64 3.51 February- ! 434-5 4.28 4.32 3.36 3.50 March j ZH-AH 3.56 3.69 <2.95 3.40 1-15 days \ 2%| May 2 April | ZH-A 4 -AH 3.79 4.00 3.00 3.46 16-30 days j 2%...do Weekending— j 31-45 days j 2M'—do Apr. 5 | -4 4 4.00 4.40 2.90 3.45 46-60 days j 2%'~.do Apr. 12 ! 4H 3.67 4.00 2.97 3.46 61-90 days _ j 2%'—do Apr. 19 | 2JS-3 4HJ 3.83 4.00 3.06 3.48 91-120 days j 2%|—do.__. Apr. 26 i 3 4 -4J4: 3.56 4.00 3.06 3.46 121-180 days j 3 j Mar. 20 1 Stock exchange call loans; new and renewal rates. i Reduced from 3 to 2% per cent, effective May 1. » Stock exchange 90-day time loans. 1 3 issues—394, 4, and 4H per cent; 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. * Change of issues on which yield is computed. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

282 FEDERAL RESERVE BULLETIN MAY, 1930 PREVAILING RATES CHARGED CUSTOMERS BY BANKS IN PRINCIPAL CITIES WEIGHTED AVERAGES Eight other northern and Twenty-seven southern and New York City eastern cfties western cities Month 1927 1928 1929 1930 1927 1928 1929 1930 1927 1928 1 1929 | 1930 I January 4.66 4.56 5.74 5.64 4.99 4.73 5.87 5.88 5.72 i 5.53 5.94 6.12 February... 4.56 4.44 5.73 5.35 4.98 4.76 5.86 5.66 5.71 I 5.53 5.96 6.04 March 4.56 4.59 5.81 5.22 4.88 4.81 5.91 5.47 5.65 ! 5.54 6.04 5.98 April 4.63 4.72 5.85 4.91 4.90 4.91 6.00 5.22 5.57 5.54 6.07 5.84 May - 4.63 4.97 5.88 4.95 5.04 6.09 5.59 5.56 6.10 June 4.60 5.09 5.93 4.93 5.36 6.02 5.54 i 5.67 6.16 July 4.56 5.38 5.88 4.90 5.57 6.08 5.52 ! 5.77 6.17 August 4.41 5.56 6.05 4.87 5.59 6.11 5.53 5.80 6.22 September- 4.44 5.63 6.06 4.77 5.80 6.24 5.61 5.82 6.27 October 4.49 ; 5.63 6.08 4.79 5.80 6.25 5.56 : 5.87 6.29 November_. 4.35 5.56 5.86 4.82 5.82 6.12 5.56 5.90 6.29 December 4.50 ; 5. 63 5. 74 4.76 5.91 5.94 5.60 ! 5.91 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 Prime commercial loans Federal reserve bank or branch city Febru- March, April, ary, 1930 1930 1930 New York City 5 -5M 4>MH Northern and Eastern Cities Boston 5 -5K 4%-5 Buffalo _ . 534-6 5 2-6 Philadelphia 5 4- 6 2 5 -5M Pittsburgh .. - 53^-6 5 2-6 2 Cleveland 534 "*6 i1-6 Cincinnati Detroit 6 6 5 -6 Chicago 5 -534 434-5 Southern and Western Cities Richmond 5 -6 5 -6 Baltimore 5V{-fi Charlotte 5^ 534 6 Atlanta 5H-6H 6 -flU Birmingham 6 -8 6 -8 6 -8 Jacksonville . 534-6 5 -6 Nashville - 6 6 6 New Orleans 5H-6H 534-634 5 -6 St. Louis 5 -6 5 -51/2- 434-534 L Lo it u tl i e sv R il o le ck - - 6 -6 6 l/2 6 -f 6 iV£ 6 Minneapolis 5 Helena . . 4 8 8* ^8 Kansas City 534-534 Denver - - 6 6 2 Oklahoma City 6 6 6 Omaha 534-6 5 -534 5 -534 Dallas 5 -7 534-6 El Paso 6 2-8 2 6 -8 6 -8 Houston 6 6 6 San Antonio.... > 6 -7 6 -6H 6 -634 San Francisco . - 534-6 5 -6 Los Angeles. . ._ 6 -634 6 Portland.. 6 6 2 6 2 Salt Lake City 6 6 Seattle 5)4-6 fi Spokane 6 6 SO SO Loans secured by prime stockexchange collateral February, 1930 534-6 5 -SU 6 5) 5} fi fi 5} 51 6 fi 6 COCO March, 1930 5 -6 6 fi 4-6 5H-6 6 -7 -fiU 5 -634 6 6 <S-fi 5U-6 -7 -7 -7 6 6 -7 51 6 6 534-6 v2 8 5^-6 6 -7 8 6 -634 6 -8 6 -8 6 -7 6 -8 6 6 6 -fiU 6>i-i" CO CC Loans secured by warehouse receipts April, Febru- March, 1930 ary, 1930 1930 5^-6 5 4H-534 514-fi 64-634 6 6 6 2 6 fi 5 -6 4-G 5^-634 fii 534-634 6 -634 fi 5 -5H 5}i-6 6 4%-6 6 6 6 6 6 6 -634 5} 66 - 1 7 6 61 -7 6 6 - - 8 8 6 6 - - 8 8 53^ 6 6 -7 6 -7 6 -634 $*? 534-6 534-6 534-6 6 -7 6 -7 6 -8 6 6 6 6 5' 534-6 8 64-84 6 8 5M6 6 5 M -6 -6 34 6'2-8 5 f 3 i > 6 -78 8 6 -8 6 -7 6 -6M 6 -634 6 -8 6 -7 6 6 -8 6 -8 8 6 6 - - 7 8 6 -8 6 6 6 -8 sy 2 6 -7 2 6 6 - - 6 6 3 3 4 4 6 6 -7 " 6 6 - -% 7 y2 6 2-7 7 6 —634 6M-7 7 SO SO SO SOSO Interbank loans April, Febru- 1930 ary, 1930 5 5 5 -5V} 6 -634 5 6 6 2 6 5>^-6 6 -7 6 6 -634 6 5 -6 5}i-6 51f-fi 6 51 6 6 6 fi 6 -7 6 6 -8 6 5M-6 51-4-fi £-6H 6 -8 2 fi 6 6 8 2 6 2-8 6 i-6 534-6 5^ -8 6 -8 fi -8 6 -8 6 6 6 -634 534-6 8 8 6 6 5> -8 6 -8 6 6 5 -7 6H-7 6 -7 7 6 -77 fi1^-7 634-7 7 CO COCO COCC March, 1930 4H-5H 5 % 4 6 5^-6 534-7 6 5)|-6 6 6 6 -634 6 6 i-6 6 -6y2 6 6 6 CO COCC April, 1930 434-534 6 5 -&A 5 -6 534-6 5^ 5 -6 5 -6 6 6 534-6 6 534-6 534-6 5 -6 5^-6 5 -6 6 -7 6 6 5 -6 6 534-6 6 -8 6 -8 534-6i 6 5 3 - 4 6 -6 34 6 6 6 -634 6 534-6 6 534-6 6 6 5 -5H 5 -5H 6 -634 6 6 6 6 6 6 6 6 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 eities. Revised. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

283 MAY, 1930 FEDERAL RESERVE BULLETIN MEMBER BANK CREDIT BROKERS' LOANS REPORTED BY THE NEW YORK STOCK EXCHANGE REPORTING MEMBER BANKS [In millions of dollars. Monthly data are averages of weekly figures] [Net borrowings on demand and on time. In millions of dollars] From New From private Loans and investments Total an Y d o t r r k u s b t a c n o k m s - f b o a r n ei k g s n , b b r a o n k k e i r n s g , Bor- End of month panies agencies, etc. Loans Due rowing Month or date Total ba t n o ks F. at R. 1929 1930 1929 1930 1929 1930 Total !i invest- banks Total ic O u n ri s ti e e - s i ! o A th ll er ments J F a e n b u r a u r a y ry 6 6 , , 7 67 3 9 5 4 3 , , 1 9 6 8 8 5 5 5 , , 6 6 6 1 4 9 3 3, , 5 3 2 6 9 8 1 1 , , 0 0 7 6 1 0 616 March 6,804 4,656 5,713 4,026 1,091 631 April 6,775 1 5,063 5,580 4,409 1,194 654 Total: May 6,665 5,482 1,183 1929—Mar 22,472 I16, 491 7, 580 8,911 5,981 2,861 740 June 7,071 5,797 ' 1,275 Apr 22,388 j |16,464 7,392 9,073 5,924 2,709 725 July 7,474 6,154 -1,320 May 22,113! 16, 277 7,218 9, 059 5,836 2,545 661 August. 7,882 6,492 1,390 June 22, 231 16,480! 7,332 9,149 5,751 2,532 670 September 8,549 7,077 1,472 July 22,479 16, 950! 7,716 9,234 5,529 2,738 801 October 6,109 5,313 796 Aug 22,465j 16, 969 7, 578! 9,390 5,496 2,604 717 November 4,017 3,432 585 Sept 22, 646! 17,197 7, 654! 9,543 5,449 2,718 706 December 3,990 3,370 620 Oct 23,124 17, 706! 8,098| 9,608 5,418 2, 916 634 Nov 23, 663i 18, 0411 8, 249! 9,792 5,623 3, 008 655 Dec 23,012' 17, 4441 7, 968 9,476 5,567 2,886 490 1 Call loans, $4,363,000,000; time loans, $700,000,000. • Corrected. 1930—Jan 22,368!: 16,821! 7, 794| 9,027 5,548 2,828 247 Feb 22, 083 16, 542; 7,671 8,871 5,541 2,818 174 MADE BY REPORTING MEMBER BANKS IN N. Y. CITY Mar 22, 352; 16, 746! 7,964 8,781 5,607 2,898 81 [In millions of dollars. Monthly data are averages of weekly figures] Mar. 26.. 22,563; 16,885; 8,183 8,702 5,6' 2,922 47 Apr. 2_._ 22, 633!! 16,9131 8,244 8,609 5, 719 3,061 82 ]For banks Apr. 9 — 22,560! 16,829' 8,163 8, 666 5,731 2, 954 75 A A p p r r . . 2 1 3 6 . . . . 2 2 2 2 , ,7 59 4 2 6 : 1 16 6 , ,9 8 5 4 5 5 ! 8 8, , 2 3 3 2 8 6 8 8 , , 6 6 0 2 7 9 5 5, , 7 7 9 4 1 ' 2 2 , , 7 9 9 6 7 1 6 5 5 8 Month or date Total For Apr. 30- 22,755! 16,964.1 8,381 8,583 5,791 2, 930 74 Total others New York City: 1929—June 7, 2811 5,468 2,749| 2,719 1,812 796 165 July 7,496 ! 5,804 3,045 2,758 1,692 935 319 1929—January 5,408 2,974 2,434 Aug 7,407 5, 688 2,845 2,843 1,720 827 196 February. _. 5,555 2,899 2,656 1930— N M S D F O Ja e e e o c a n p b c t v r t _ 8 8 7 7 7 7 7 , , , , , , , 0 5 6 8 4 6 3 0 6 0 4 3 9 4 4 1 7 9 7 3 9 h ! : i 6 5 5 5 5 6 6 , , , , , , , 1 3 8 0 5 7 7 8 0 2 0 0 8 2 0 0 5 8 3 4 l ; i ; l I i | I 2 3 3 2 2 3 3 , , , , , , , 9 1 8 1 U 3 9 0 9 9 1 4 4 2 9 5 1 2 0 5 l ; ; 1 2 2 3 2 2 2 2 , , , , , , , 9 6 9 9 0 7 0 6 7 1 1 4 9 6 0 5 1 6 0 1 0 5 1 1 1 1 1 1 1 , , , , , , , 9 9 9 7 9 9 7 8 2 5 0 6 0 2 1 9 9 4 9 9 9 1 1, , 1 0 9 9 9 9 8 3 2 8 0 5 3 8 2 3 0 2 2 1 7 1 8 6 3 2 6 7 0 0 9 1 6 4 1 J J A S A M M u u e u p n l a a p y g r e y r t i _ u c l e _ h s m t ber.. 5 5 6 6 5 5 5 , , , , , , , 8 4 5 0 3 4 6 4 9 4 6 8 7 7 1 1 0 9 3 7 9 2 2 2 2 2 2 2 , , , , , , , 8 5 7 8 4 5 8 2 9 7 4 4 0 8 6 8 8 9 3 0 3 2 2 2 2 2 3 3 , , , , , , , 9 9 8 2 8 9 6 4 7 9 9 9 6 4 0 9 2 3 5 0 2 October 6,498 2,896 3,602 A M p ar r . . 2 2 . 6 - . _ .. J I 7 7 , , 7 8 5 5 6 0 5 5 , , 8 8 9 1 4 0 i : 3 3 , , 2 3 8 9 0 3 2 2, , 5 5 0 3 1 0 1 1 , , 9 9 5 4 6 6 1,0 9 3 8 9 3 15 N D o ec v e e m m b b e e r r . . . . 4 3, , 3 0 9 2 1 3 1 1 , , 6 86 0 9 1 2 1 , , 1 7 5 9 4 0 A A p p r r . . 1 9 6—i | 7 7 , , 7 7 2 3 4 8 5 5 , , 7 7 8 8 0 5 ; , 3 3, , 2 3 8 1 4 6! 2 2 , , 4 4 9 6 6 8 1 1 , , 9 9 4 5 4 3 9 9 7 7 5 5 3 1 1 6 1930— F J e a b n r u u a a ry ry—. 3 3 , , 3 4 5 5 1 9 1 1 , , 7 9 0 1 6 3 1 1 , , 6 5 4 4 4 6 A A p p r r . . 3 23 0 .._ I 7 7 , , 9 8 4 8 " 5 5 5 , , 91 96 2 9; 3 3 , , 5 4 1 0 1 9! 2 2 , , 4 5 5 0 8 3 1 1 , , 9 9 7 7 7 3 1,0 8 3 9 0 1 1 1 2 0 March 3 3, 741 2,310 1,430 Apr. 2. 3,968 2,651 1,316 Ot 1 h 9 c 2 e i 9 r ti — e J A l s J u e : u u l a n y g e d . ing I I 1 1 4 1 5 , 4 , 9 0 , 8 9 58 5 3 0 1 1 1 1 1 1 , , , 0 1 2 1 4 8 2 6 1 , j | 4 4 4, , , 7 5 6 8 3 7 2 4 0 ! | ! 6 6 6 , , , 5 4 4 4 7 3 7 6 0 3 3 3 , , , 8 7 9 3 7 3 ^ 6 8 1 1 1 , , , 7 8 7 3 0 7 6 3 7 i j 4 52 8 1 2 A A A A p p p p r r r r . . 9_ 4 4 4 3 , , , , 1 2 2 9 2 1 7 9 4 7 4 4 1 2 2 2 2, , , , 7 8 7 6 8 7 5 3 1 8 5 3 : 1 1 1 1 , , , , 3 4 3 3 3 3 9 9 9 6 2 7 Sept _j 15,139 11,3941 4, 762! 6,632| 3,745 1,830 540 Oct.. 1 i1s5", 288 11, 598! 4,906i 6,692| 3,690 1,893| 561 1 Weekly reporting member banks in New York City. Nov ! 15,314 11, 661 4,909: 6,752 3,654 1,8751 594 1 Member and nonmember banks outside New York City (domestio Dec ! 15,011 11,424 4,856 6,568 3,587 1,906 410 banks only); includes unknown amount for customers of these banks. 1930—Jan , 14,705 11,115 4,849: 6,267 3,589 1, 897 208 3 Call loans, $3,300,000,000; time loans, $440,000,000. Feb 14,590 10, 9581 4, 762 6,196. 3,632 1,916 152 Mar 14,703, 11,026 4,850; 6,176i 3,677 1,'946 80 ACCEPTANCES AND COMMERCIAL PAPER Mar. 26— 14,807 11,075; 4,903! 6,172; 3,732 1,938 47 [In millions of dollars] Apr. 2 14, 783 11,019! 4,851 6,168 3,763 2,021 67 Apr. 9 14,836 11,049! 4,8781 6,171 3,787 1,979| 45 Apr. 16— 14,854 11,060! 4,921: 6,139 3,794 1,986; 49 Bankers' acceptances out- Commercial paper out- A A p p r r . . 3 2 0 3 . — . 1 14 4 , , 8 8 6 0 1 9 ; 1 1 0 1 , , 0 9 4 9 4 5 : 4 4 , , 8 9 7 1 0 8 j ; 6 6 , , 1 1 2 2 5 6 3 3 , , 8 8 1 1 4 7 1 1 , , 9 9 0 0 0 5 6 4 2 9 End of month standing standing Chicago: 1 1927 1928 1929 1930 1927 1928 1929 1930 1929—Jan 1,934 1,527 817j 710 407 329 Feb 1,953 1,553! 843, 710 400 323 93 Mar 1,984 1, 582: 883| 700 402 342 121 January 774 1,058 j.279 1,693 551 577 407 404 Apr 1,904 1, 512! 837i 676 392 3201 46 February _ _ 785 1,056 L, 228 1,624 577 567 411 457 May 1,879 1, 4991 825i 675 380 307! 36 March 809 1,085 ,205 1,539 606 570 387 529 June 1,898 1, 518 837 681 381 314! 64 April 811 1,071 ,111 599 571 351 July___ 1,881 1, 503 833 670 378 310' 47 May 775 1,041 1L, 107 582 541 304 Aug... 1,932 1, 559; 872 687 373 308! 32 June 751 1,026 ,113 579 503 274 Sept— 1,920 1, 558' 859 699 362 313 18 July 741 978 L, 127 569 483 265 Oct 1,986 1,628 923i 705 358 309 38 August 782 952 1,201 591 458 267 Nov 1,977 1, 614 922 693 363 3031 28 September 864 1,004 L, 272 600 430 265 Dec___. 1,909 1, 545 885 660 364 310! 37 October 975 1,123 1,541 611 427 285 1930—Jan 1,829 1,461: 851 610 367 306 7 November 1,029 1,200 L.658 603 421 316 Feb..-. 1,801 1,442! 593 359 311 1 December _ 1,081 1,284 1,732 555 383 334 Mar 1,850 1,487 363 334 Figures for acceptances as compiled by American Acceptance Council; 1 New series; for explanation see note on page 277. for commercial paper as reported by about 25 dealers. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

284 FEDERAL RESERVE BULLETIN MAY, 1930 SECURITY PRICES, SECURITY ISSUES, AND BUILDING CONTRACTS SECURITY PRICES [Index numbers of Standard Statistics Co. Monthly data are averages of weekly figures] Common stocks (1926=100) Pre- Selected groups of industrial issues Month or date Bonds* s f t e o r c re k d s2 Total I i t n s r d s i u u a e s l s - r R o a a i d l s - P u u ti b l l i i t c y m A o u b to il - e B e m q i u n e u i g n l i d p t - - C s h t a or i e n C i h c e a m l - b C a p r n o a e d p r ss - e t m E r q i l e u c e n c i a p t - l - c M e h a r i y n - - Oil Steel T ti e l x e - Number of issues. 60 20 337 33 34 13 17 4_ 10 16 30 1929—-January 97.0 129.2 193 142" 193 281 164 159 223 262 257 168 137 174 i 144 February. _. 96.3 128.8 192 142 202 277 163 153 231 286 258 174 133 179 i 138 March 95.8 128.7 196 140 204 284 160 150 232 329 257 167 141 187 , 136 April 95.8 128.6 193 138 201 278 157 149 235 294 255 163 148 191 132 May -_. 95.7 128.6 193 139 212 261 158 148 248 280 282 161 146 185 ; 127 June 95.3 127.7 191 145 233 242 158 145 270 271 308 159 144 188 : 122 July. 95.2 127.0 203 160 273 241 169 148 315 281 360 172 149 212 120 AAugust 95.0 126.3 210 165 304 241 165 149 320 289 405 177 158 238 ; 118 September ... 94.8 126.8 216 168 321 241 172 155 338 294 399 191 167 244 : 114 October 95.1 126.4 194 157 277 196 152 139 305 259 345 172 161 217 ! 103 November 95.7 123.9 145 135 195 134 114 104 214 204 227 135 131 169 78 December 96.5 126.4 147 136 201 134 113 106 228 196 241 143 132 170 77 1930—January 96.5 126.5 149 137 209 135 117 102 240 193 265 146 129 177 78 February | 96.4 126.9 156 143 231 145 125 100 254 193 307 154 128 188 85 March j 97.8 127.8 163 143 242 155 125 100 266 193 323 161 141 192 85 April ! 97.9 128.2 171 142 264 162 127 101 282 174 359 173 156 197 83 Apr.3 ! 98.2 128.3 170 146 258 162 130 101 281 198 349 166 152 200 85 Apr. 10 i 97.9 128.5 174 144 267 174 132 101 288 185 370 171 156 201 85 Apr. 17 ! 97.8 128.0 173 142 266 166 129 102 293 177 373 176 153 200 84 Apr. 24 ! 97.6 128.1 170 141 264 158 126 101 278 161 356 179 158 195 82 Apr. 30 ! 97.8 128.0 167 136 263 151 120 100 268 151 347 173 159 189 80 i Average price of 60 high-grade bonds adjusted for differences in coupon rate and maturity. 2 20 high-grade industrials; average price. DOMESTIC CAPITAL ISSUES FOREIGN CAPITAL ISSUES [In millions of dollars. Source: Commercial and Financial Chronicle] [In millions of dollars] Jranuary-Marchl January-March March, 1930 March, 1930 1930 1929 1930 1929 Class of issue Class of issue New fu R in n e g d - - New fu R in n e g d - - New fu R in n e g d - - m G er o e n n v - t - m G er e o n n v - t - p C or o a r t - e m G er e o n n v - t - p C or o a r t - e Total . .. 658.0 18.2 1,840.1 103.8 2,463.1 325.8 Total 42.8 107.6 107.9 201.4 53.8 198.5 Corp B o o r n at d e s i a s n su d e n s otes— 515.9 15.5 1,514.4 98.3 2,227.3 321.2 New E i u ss r u o e p s e. _. 3 2 8 2 .9 8 107 6 5 2 8 2 . . 9 9 2 3 0 4 1. . 4 3 4 2 7 3. . 6 2 1 2 9 0 6 . . 8 5 M Fft u rm n S i - t c l o T n i c f p o t L S k n a t h o s a l o n l i i r s g s t s n s u u t e t e e e e w r s s r m m and re- 3 1 1 2 2 6 2 2 0 5 7 3 2 . . . . . 0 9 0 0 1 1 4 2 0 . . . . 4 7 6 5 1 3 3 ,0 8 2 9 0 2 7 2 8 3 8 . . . . 4 9 7 0 .1 7 2 5 1 1 6 . . . . 5 3 0 0 1 6 2 ,5 3 2 3 6 7 5 5 4 . . . 6 2 8 .5 1 1 8 2 8 4 5 8 . . . . 6 0 0 2 Refu L U C M n a . a l d T i t a s n i S i o c n n n a . e d t g d a l i A a l l n a i m s s G n a u s e e u n o l o r a d e v i u r s c e s a r p N n o m e . s w s e e f n s o t s u i a n o n d n d - s. 1 2 3 4 0 . . . 0 0 0 9 10 2 4 .8 8 4 1 1 8 1 9 0 6 . . . . . 5 5 0 0 1 1 2 4 2 4 . . 4 8 2 1 1 0 . . . 5 8 4 1 3 3 6 2 2 2 4 . . . . . 5 0 2 7 4 funding 676.1 1,943.8 2/7158.9 corporate 150.4 309.3 252.3 BUILDING CONTRACTS AWARDED, BY TYPES OF BUILDING [Value of contracts in millions of dollars] Total Residential Industrial Commercial Public works and Educational All other public utilities 1929 1930 1929 1930 1929 1930 1929 1930 1929 1930 1929 1930 1929 1930 January . 410.0 324.0 138.1 66.6 63.1 38.3 100.4 54.1 66.5 112.1 17.7 19.0 24.1 34.0 February 361.3 317.1 129.5 74.8 56.1 33.5 68.3 72.9 57.6 85.8 22.6 21.2 27.3 28.8 March 484.8 456.1 197.2 101.5 55.8 74.3 75.6 77.0 71.5 105.3 37.5 35.4 47.2 62.6 Year to date 1,256.1 1,097.1 464.7 242.9 175.0 146.1 244.2 204.0 195.6 303.2 77.8 75.6 98.6 125.4 April 642.1 256.8 68.2 78.0 152.1 29.9 57.1 May _ 587.8 192.0 80.8 86.5 139.4 38 2 50 9 June 545.9 189.8 70.0 80.9 ._ 120.8 43.4 40.9 July 652.4 199.9 66.6 91.3 194.5 48.0 52.0 August 488.9 146.1 75.3 72.0 119.3 32.3 43 9 September 445.4 118.4 52.6 70.9 117.2 29.8 50.4 October 445.6 137. 7 60.9 67.7 85.1 36 9 57 3 November - 391.0 113.5 39.7 101.8 72.4 25.7 38 0 December 316.4 114.0 67.4 33.4 51.8 19.8 29.9 Figures for building contracts awarded are fer 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

MAY, 1930 FEDEEAL RESERVE BULLETIN 285 PRODUCTION, EMPLOYMENT, CAR LOADINGS, AND PRICES [Index numbers; 1923-1925 average=100. The terms "adjusted" and "unadjusted" refer to adjustment for seasonal variations] I Commodity Year and month Total Indus M tr a i n al u f p a r c o t d u u re c s tio I n* Minerals i a B n t w u g r e a i a c d r c l o t d d n s - - - m p t F e l o m a e o r c n y y - - t - . | r t F p o o a a l r c y l y s - T F o re ta ig l ht car ; i l M o l a e e d s r s i c n - h t g a h s n a * n d - i c s a e r i - n : pricesf load lotsJ m c i A o t o l i m d e l - - s F p u r a c o t r d s m - Unad- Ad- j Unad- : Ad- Unad- | Ad- Unad- Unad- Unad- Unad- i Ad- Unad- ; Adjusted justed I justed justed justed | justed justed justed justed justed j justed justed justed 1919 ! 83 84 : 77 : 64 107 98 84 ;. 139 ; 158 1920 ! 87 87 : 89 , 63 108 118 91 L 72 154 i 151 1921 i 67 67 70 ' 57 82 77 87 • 98 i 88 1922 I 85 74 ! 81 i 90 81 93 97 ! 94 1923 101 101 105 84 j 104 103 96 ! 101 i 99 1921 i 95 94 96 95 ! 96 96 99 ! 98 ; 100 1 19 9 2 2 G 5 ; 1 1 0 0 8 4 1 1 0 0 5 8 1 9 0 9 8 1 1 3 2 0 2 ' 1 10 0 1 0 1 1 0 0 1 4 1 1 0 0 3 7 i ! 1 10 0 4 7 104 : 1 1 1 0 0 0 1 1 9 9 2 2 7 8 : 1 10 1 6 1 1 11 0 1 6 1 1 0 0 7 6 1 1 2 3 8 5 | ; 9 9 7 9 1 10 0 2 2 1 1 0 0 3 3 ; 1 1 0 0 4 5 ; : 1 9 0 5 0 ; ; 1 9 0 9 6 1929 j 118 119 115 117 ! 100 107 106 ! 104 98 ' 105 97 ' 1926 I January ! 105 106 108 109 90 92 Ill 101 ' 101 94 ; 102 107 104 j 107 February.. ; 108 106 111 108 92 95 106 102 : 106 96 104 102 106 102 ; 105 March j 109 107 111 108 98 104 146 103 1 107 99 104 107 106 100 j 102 April 108 107 110 107 96 107 139 102 ! 105 98 i 107 107 , 106 100 ] 103 May 107 106 108 106 102 104 134 101 I 104 106 I 107 108 ; 105 101 i 102 June i 106 108 106 108 109 106 133 101 ; 104 110 i 109 108 : 107 ioi ; 101 July 103 107 102 107 110 107 :26 99 : 99 111 108 106 '• 106 ioo ! 99 August ; 109 110 108 111 115 109 148 101 I 104 113 108 107 ' 106 99 ' 97 September | 113 112 112 112 118 110 137 103 ! 105 122 : 109 112 i 107 100 i 99 October 114 111 112 110 124 114 126 103 j 108 123 ! 109 112 ' 107 99 i 98 November 110 108 108 106 123 118 119 101 ! 105 113 i 109 110 108 98 I 95 December i 101 106 99 103 113 119 131 100 ! 104 107 103 108 98 ! 95 1927 | January 106 106 104 105 112 116 94 99 97 105 100 \ 108 97 i 97 February | 110 108 110 107 113 117 96 100 105 100 109 104 i 109 96 ! 95 March ' 113 111 113 109 111 118 151 100 106 102 108 108 i 107 95 I 94 April 110 109 112 109 96 107 147 100 105 100 108 108 : 107 94 ! 94 May 112 111 I 113 111 108 109 135 99 104 105 106 106 : 104 94 ; 96 June 107 108 ! 107 109 108 105 154 99 102 106 104 105 i 104 94 97 July 102 106 ! 102 107 103 99 130 98 99 104 101 104 ! 104 94 98 August 105 107 I 104 107 111 106 135 99 102 109 104 105 i 104 95 102 September . 106 105 i 106 105 111 104 127 101 102 116 104 110 i 104 97 106 October ; 105 102 \ 104 102 112 105 137 99 103 114 101 109 ! 105 97 105 November 101 99 | 101 99 105 101 114 97 98 101 97 106 ! 104 97 104 December 96 100 ! 95 99 97 103 116 95 95 103 97 104 192S I January • 105 106 I 106 106 j 100 103 104 96 92 100 106 106 February ' 112 109 ! 114 110 I 99 103 113 101 94 102 101 : 105 105 March : 112 110 115 111 98 103 144 103 97 102 105 ! 104 104 April 110 109 113 110 94 105 157 100 96 104 105 : 104 108 May 110 109 111 109 ! 104 105 163 101 104 105 106 | 104 110 June : 108 109 108 Ill 104 101 158 96 101 103 102 105 ! 103 107 July 105 110 106 111 103 101 142 98 105 102 104 | 104 107 August 111 112 110 113 111 105 126 103 109 104 104 ! 103 99 I 107 September 116 114 116 116 115 107 143 100 104 119 106 109 ' 104 100 | 109 October , 118 115 117 115 I 122 114 145 100 107 119 106 109.; 105 104 November > 115 113 115 113 i 117 113 115 99 104 108 104 106 ; 104 102 December ! 108 115 109 115 I 106 112 105 104 95 103 100 I 105 104 1929 ', , January i 116 j H7 ;i 116 117 113 118 100 97 101 95 104 97 ; 105 106 J J A S A N M M F D O u u e e p u o e c a l n a p b y t r c g v y r e o t i r e u c e l e b u m h m s m e a t r b r b b y e e e r r r i i ; | j ! ! ! : ! 1 1 1 1 1 1 1 1 1 1 2 1 2 2 0 9 2 2 2 2 2 5 9 0 5 8 5 3 0 1 1 3 ! 1 1 1 1 1 1 1 1 1 1 2 2 2 1 2 0 1 2 2 1 4 3 2 7 3 6 7 7 2 8 ! | H i j l j i i | i | | j | l 1 1 1 1 1 1 1 1 1 1 9 2 1 1 2 2 2 0 2 2 2 2 1 9 8 5 7 7 7 2 6 0 1 1 1 1 1 1 1 1 1 1 9 2 1 2 2 0 2 2 1 2 2 6 3 7 6 5 5 9 4 6 0 2 1 1 1 1 1 1 1 1 1 1 1 2 0 0 1 1 1 1 1 2 2 1 1 4 1 8 4 6 6 6 7 7 0 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 2 1 1 0 5 6 0 8 4 3 6 0 8 4 7 1 1 1 1 1 1 1 1 8 9 7 5 0 5 0 4 3 1 1 8 5 7 9 9 6 8 3 3 9 8 1 1 1 1 1 1 1 1 1 9 9 0 0 0 0 0 0 0 0 0 8 5 0 1 1 1 2 3 2 2 2 1 1 1 1 1 1 1 1 1 1 0 1 1 1 0 0 1 1 0 0 5 1 1 1 9 9 0 1 8 2 1 1 1 1 1 1 1 1 9 9 9 0 1 2 0 1 1 1 0 9 8 0 9 1 1 2 4 0 8 2 1 1 1 1 1 1 1 1 1 9 9 1 1 0 0 0 0 0 0 0 9 7 1 1 9 4 8 8 3 8 7 1 1 1 i 1 1 1 1 1 1 0 o 0 0 0 0 0 0 0 1 9 i 6 7 5 5 6 6 8 0 i I I ; 1 1 1 1 1 1 1 1 1 1 1 0 0 0 0 0 0 0 0 0 0 0 6 5 5 5 5 1 5 8 4 5 4 1 1 1 1 1 1 1 1 1 1 1 0 0 0 0 0 0 0 0 0 0 0 5 1 8 3 4 5 7 2 7 7 2 96 1930 [ January j 103 103 102 102 ! 107 112 79 93 94 102 101 February j 109 107 110 106 | 104 ' 109 77 98 102 98 March I » 106 *104 *105 I 111 101 100 95 * Average per working-day, except for annual indexes. t Wholesale price index of Bureau of Labor Statistics; 1926=100. Index numbers for all major groups of commodities are given on p. 286. v Preliminary. r Revised. i Note that this series has been substituted for more comprehensive series. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

286 FEDERAL RESERVE BULLETIN MAT, 1930 INDUSTRIAL PRODUCTION, BY INDUSTRIES [Index numbers of the Federal Reserve Board. Adjusted for seasonal variations. 1923-1925 average=100] 1929 Jan. Feb. Mar. Apr. May June July Aug. Sept. Oct. Manufactures IRON AND STEEL 117 126 132 135 145 155 151 143 139 124 Pit, iron . 114 114 116 117 126 127 131 128 121 118 Steel ingots . _. 118 128 134 137 147 158 153 144 141 124 TEXTILES, 116 113 116 120 121 121 118 120 116 118 Cotton consumption 118 115 117 119 125 122 119 119 115 117 Wool 99 97 97 101 102 101 95 101 98 101 Consumption 105 101 100 106 109 107 109 114 106 109 Machinery activity 1 93 93 92 96 92 93 85 86 89 Carpet, rug loom activity1. 89 91 94 95 98 95 83 90 90 Silk 135 132 144 149 138 149 146 150 148 Deliveries . ... 144 135 152 159 142 159 155 161 158 Loom activity* 119 126 128 129 130 128 127 130 128 FOOD PRODUCTS 103 101 96 102 97 96 96 99 98 Slaughtering, 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 87 88 88 91 Calves 95 87 97 101 91 83 90 85 99 Sheep . 109 106 105 119 125 117 124 126 126 Flour 100 104 104 107 112 109 100 103 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 93 93 92 91 95 94 Book DaDpr 124 125 132 135 134 133 138 134 143 Fine paper 109 114 118 118 119 120 122 118 119 Wippping paper 112 104 102 103 109 107 101 101 101 Paper board 134 135 139 135 143 136 131 129 125 WTood 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 EOUIPMENT: Automobiles 150 148 159 153 148 162 142 143 133 Locomotives 15 17 28 53 55 46 59 55 49 Shipbuilding 48 21 49 62 93 129 155 175 101 LEATHER AND PRODUCTS 95 98 99 97 101 113 114 116 116 Tanning 88 89 89 94 92 106 105 103 105 Sole leather 1 94 92 85 89 84 97 86 93 94 Upper leather- Cattle. .._ 73 67 73 76 78 74 75 80 87 Calf and kip.. 67 73 86 93 96 104 111 108 102 Goat and kid.. 117 120 112 123 116 153 158 136 144 Boots and shoes 100 104 105 100 106 117 120 125 123 CEMENT AND GLASS: Cement 126 115 99 110 111 116 118 122 118 uiass, plate 141 140 14ft 144 1 U 1fi4 168 174 NONFERROUS METAIS 1 124 123 129 137 137 126 127 122 126 Copper (.smelter) 132 132 140 147 145 130 133 126 127 Tin ^deliveries) 1 137 134 128 143 145 137 123 121 131 FUELS, MANUFACTURED: Petroleum refining 159 160 160 165 168 170 171 176 173 Gasoline i____ 186 187 187 194 196 199 205 209 208 Kerosene _ 93 97 94 93 103 110 95 108 95 Fuel oil i 134 138 136 141 140 140 138 142 141 Lubricating oil i._ 123 116 123 125 126 126 123 131 123 Coke (by-product) 137 139 142 145 149 151 151 152 148 BUBBER 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.. 113 116 118 126 121 125 105 87 90 TOBACCO PRODUCTS 131 129 126 142 142 139 131 133 136 Cigars 86 95 93 109 101 ICO 97 99 100 Cigarettes 167 159 153 173 178 173 160 163 168 Minerals COAL: Bituminous 104 110 90 102 104 102 102 98 103 Anthracite 110 110 77 95 86 76 72 81 106 Petroleum, crude 137 137 133 132 134 135 143 145 140 Iron ore shipments 143 126 119 121 121 Copper (mined) 129 136 135 141 139 124 122 119 125 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 93 94 88 91 89 ocoe£ -I SO 00 1930 Nov. Dec. Jan. Feb. Mar. 100 90 99 118 112 107 95 94 101 102 99 90 99 120 114 108 96 103 99 98 104 90 102 94 94 89 77 78 76 71 94 80 85 81 76 82 74 72 73 65 88 75 69 70 66 144 140 141 145 150 158 153 148 145 149 155 130 128 124 133 138 140 96 96 95 96 U 97 95 91 89 92 85 104 101 96 89 93 80 86 82 81 88 86 88 88 88 91 96 92 92 125 125 113 116 132 141 91 92 94 92 97 99 106 110 127 93 90 126 122 118 '121 120 118 113 117 p J21 94 92 93 95 97 91 145 139 139 140 119 120 116 ' 118 Ha 96 97 95 93 92 128 129 107 '123 '137 125 91 85 91 96 111 118 113 116 115 119 156 144 125 147 151 153 139 133 134 131 137 130 113 81 49 102 103 109 57 45 32 39 40 48 75 69 97 169 127 113 105 93 '96 95 97 108 103 98 93 93 98 94 95 93 99 100 96 97 88 82 76 66 79 99 88 70 68 75 80 147 145 151 129 127 136 117 108 90 97 97 97 113 109 109 108 110 111 179 149 117 124 121 119 114 105 '162 104 125 126 122 110 103 103 126 113 106 99 92 117 178 171 166 163 168 168 215 209 201 199 204 204 103 93 90 89 96 99 142 136 132 121 125 117 121 110 115 120 126 130 146 139 131 132 136 135 114 94 80 '106 '107 105 117 97 82 109 110 108 87 74 70 85 85 84 135 130 133 131 133 1?8 99 96 83 84 92 87 168 160 173 167 167 162 102 98 103 99 91 81 116 92 121 106 102 69 140 131 132 132 135 125 107 98 123 118 116 101 95 88 112 105 102 103 99 96 115 114 105 92 106 108 94 114 87 88 98 »93 1 Without seasonal adjustment. > Includes also lead and zinc; see " Minerals." * Preliminary. ' 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

287 MAY, 1930 FEDERAL RESERVE BULLETIN FACTORY EMPLOYMENT AND PAY ROLLS INDEXES OF FACTORY EMPLOYMENT AND PAY ROLLS PERCENT [Without seasonal adjustment. Monthly average 1923-1925=100] no FAC1"ORYEMPL0Y1MENT 110 ( 1923-25=100 ) Factory employment Factory pay rolls k Month ft 1927 1928 1929 1930 1927 1928 1929 1930 100 100 J F a e n b u r a u r a y ry 9 99 8 . . 7 1 9 9 5 4 . . 7 2 9 9 7 9 . . 4 7 9 9 2 2 . . 9 9 ! ! 1 9 0 8 4 . . 6 8 1 9 0 5 1 . . 7 1 1 1 0 0 0 8 . . 7 0 9 9 4 7. . 4 2 ; \ March 100.4 96.6 101.3 92.7 : 108.3 102.5 110.8 98.0 \ r- April 99.8 96.0 101.8 105.0 100.3 111.3 J M un ay e _. 9 9 9 9 . . 0 1 9 96 5 . . 7 2 1 10 0 1 1 . . 2 6 1 10 0 2 4 . . 5 3 1 10 0 0 0 .8 9 1 1 0 1 9 1 . 2 2 90 j ; 1 \ 90 July 98.0 95.7 100.7 98.6 98.3 104 8 August 99.2 98.3 102.0 i 102.2 102.5 109.4 —. Adjusted for Seasonal Variations \ i 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 9G.9 98.8 98.2 98.5 103. 6 102.0 80 | December... 95 5 98. 1 94.8 ! 99.4 104.2 98.7 1923 1924 1925 1926 1927 1928 1929 1930 Annual index. 98.3 97.2 100.4 102.0 101.8 107.2 Seasonal adjustment provisional FACTORY EMPLOYMENT: INDEXES BY GROUPS Transportation Month s I a r t n e o e d n l P p a r i a n n i p n g d e t r - L p u a b r u c n 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 g a C l l e n a a e n d y s - t s , , N m T r e o o t n u a f s e ls r- Gr C ou h p em r ic ef a i l n s ing; Rubber b p u T a r c o c o t c d - s o - 1928—November. 97.7 90.5 90.2 109.1 91.8 102.2 107.3 104. 0 i 109.8 98.9 December.. 97.1 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 85.5 94.0 118.3 91.9 84.3 102.4 107.6 104.0 112.2 i 84.1 February.. 98.3 110.4 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 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 88.2 101.7 131.4 90.6 90.5 107.7 119.0 111.9 114.3 i 91.3 May 100.7 119.1 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 90.0 97.6 120.6 89.4 93.8 102.9 107.9 116.4 115.0 i 91.4 July 99.8 121.5 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 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 91.8 94.8 113.1 99.5 93.6 98.6 114.5 124.0 108.3 i 93.7 October 99.4 118.7 90.1 90.2 101.3 99.3 91.9 98.5 116.1 124.6 102.7 i 95.0 November. 97.0 115.0 86.7 82.9 83.7 94.4 88.9 93.6 113.8 123. 7 91.2 96.1 December.. 92.2 112.1 81.6 81.3 79.6 90.0 82.3 89.9 111.8 120.9 89.2 ' 80.2 1930—January 91.7 109.9 76.8 83.2 85.7 91.4 74.7 85.9 110.8 ! 120.8 ! 89.7 ' 84.2 February... 93.5 109.3 75.0 83.9 89.7 92.4 75.3 84.6 110.2 120.9 ! 88.9 March 92. S 108.5 75.0 83.2 91.0 91.5 78.4 84.3 112.5 113.5 : 89. 6 FACTORY PAY ROLLS: INDEXES BY GROUPS i Transportation1, Month s I a t r n e o d e n l Ma- 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 ) u a b r u c n o e m t d d r s - - Group m A o u b t i o le - s ! L p u e a r a c o n t t d d s h - er m c g a C l l e n a a e n d y s - t s , , N m o e n t f a e ls r -i ! j Gr C ou h p e m • ic l P e a e u l t s m r o - ! R p u u r c o b ts d b - er j b p u T a r c o c o t c d - s o refining; 1928—November. 105.1 i 110.3 i 96.7 104.9 i 111.7 94.4 96.1 114.5 80.1 90.7 118.5 108.2 i 107.1 112.4 94.1 December.. 103.3 | 114.0 ; 100.3 106.3 I 113. 7 90.8 95.8 112.4 86.0 88.4 120.5 108.1 j 107.2 ! 114.1 94.3 1929—January 101.3 112.3 i 97.0 102.2 ! 111.4 83.4 93.6 114.5 90.2 79.0 117.4 106.3 i 105.3 i 111.7 76.3 February.. 107.2 120.7 j 103.6 102. 5 113.0 86.5 111.4 147.4 94.5 81.0 124.1 111.3 j 110.2 i 123.3 82.3 March 108.5 126.5 j 108.8 I 101.2 114.9 88.4 113.9 148.2 91.4 84.8 127.6 113.6 i 112.1 ' 123.6 84.4 April 110.5 129.5 i 103.2 100.4 113.3 90.9 117.0 152.0 87.9 89.3 127.0 117.8 | 117.1 124.4 86.1 May 111.6 I 131.9 : 99.3 103.1 114.3 92.8 116.0 147.1 88.1 91.8 123.1 113.1 ! 118.9 j 125.7 86.1 June 109.9 I 131.6 i 97.8 105.6 113.6 92.2 107.9 130.9 89.8 92.5 117.0 111.2 ; 120. 0 1 120. 6 88.5 July 103.5 i 128.2 i 90.4 105.6 111.4 93.5 97.1 110.2 97.8 86.1 112.6 111.2 ' 123.3 j 115.1 87.9 August 109.3 I 127.5 ' 97.4 105.0 112.8 | 94.7 106.8 128.0 105.0 91.2 113.2 113.0 I 125.1 110.9 90.6 September. 108.9 j 127.9 • 103.0 108.1 116.3 i 96.6 103.3 120.3 104.3 91.3 112.1 116.0 129.3 104.9 93.4 October 107.9 ! 129.0 ; 104.8 108.8 117.8 i 96. 8 99.8 108.0 100.0 90.6 112.5 118.2 : 129.4 i 100.9 94.2 November. 100. 0 i 121.6 96.2 105.5 117.2 89.2 89.4 84.3 83.9 86.4 99.6 115.6 i 126.3 ! So. 9 94.3 December. 93.5 i 119.9 ! 93.8 105.5 118.2 : 82 7 85.6 72.9 84.1 80.2 96.1 114. 0 : 124.8 : 85.0 88.8 1930—January.... 90.5 j 113.8 92.2 J02.5 114.9 I 72.8 80.9 74.0 85.4 67.3 91.5 109.3 ! 121.1 ! 88.9 77.0 February,. 98. 1 ' 115. 2 94.1 101.6 114.9 i 72.6 89.8 92.7 86.2 70.2 91.7 110. 0 ! 125. 0 92. 1 80.0 March yr. l ; 115.1 i 96. 6 99. 7 115.0 ! 74.6 90.6 97.3 85.2 73.4 91.0 111.6 j 123. 1 ' yo.0 81. C NOTE.—These tables contain index numbers of factory employment and factory pay rolls for certain months, together with group indexes for 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. 109492—30 3 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

288 FEDERAL RESERVE BULLETIN MAT, 1930 BANKING AND BUSINESS CONDITIONS IN FEDERAL RESERVE DISTRICTS FEDERAL RESERVE BANK DISCOUNTS-BY DISTRICTS MILLIONS OF DOLLARS ( Weekly report date figures ) MILLfONS OF DOLLARS 1926 1927 1928 1929 1930 1926 1927 1928 1929 1930 Latest figures are for April 30; see table on following page Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

289 MAY, 1930 FEDERAL RESERVE BULLETIN FEDERAL RESERVE BANKS-RESERVES, DEPOSITS, NOTE CIRCULATION, AND RESERVE PERCENTAGES [Averages of daily figures. Amounts in thousands of dollars] Federal reserve notes in circu- Total cash reserves Total deposits lation i Reserve percentages Federal Reserve Bank 1930 1929 1930 1929 1930 1929 1930 1929 April March April ! April I March April April March • April April March April Boston 258,974 263,083 194,933 149, 531 145,896 146, 369 163, 789 162,250 133, 368 82.7 85.4 69.7 New York 903,055 912, 761 977, 439 970, 671 962, 762 937,149 184,993 205, 347 297, 621 78.1 79.2 Philadelphia.. 234, 241 222, 371 167, 097 138,696 136,457 135,926 146,422 146, 422 143, 096 78.6 59.9 Cleveland 316,156 307, 581 276, 072 192,266 188, 058 186, 372 182,434 180,335 207, 752 84.'4 83.5 70.1 Richmond 109,888 109, 661 84, 315 68,299 65, 920 70, 247 72, 339 76, 299 70, 247 78.1 77.1 60.0 Atlanta 156, 704 158, 366 133, 015 68, 212 65,922 67,890 128,852 131,943 134, 773 79.5 80.0 65.6 Chicago. 540,921 540, 311 514,141 350,049 342,821 346, 794 270, 381 296, 363 301, 679 87.2 84.5 79.3 St. Louis 124,440 120, 963 83, 939 80,684 78, 786 81, 476 78,141 82, 262 57, 775 78.4 75.1 60.3 Minneapolis.. 84, 568 84,011 86, 287 52, 770 52, 740 52, 891 59,858 59,843 64,187 75.1 74.6 73.7 Kansas City.. 138,260 138, 079 102, 417 89,507 89, 295 91, 023 76, 582 79,044 66, 543 83.2 82.0 65.0 Dallas... 64, 744 71,077 64, 263 63. 972 68, 643 33,925 37, 440 37, 965 65.2 63.8 66.7 San Francisco 278,267 280, 149 246, 203 183,091 180, 450 182, 739 157,194 158,404 155,898 81.8 82.7 72.7 Total... 3, 209, 467 3,202,080 2,936,935 % 408, 039 12,373,079 2,367,519 1,554,910 1,615,952 1,670,904 81.0 80.3 72.7 i Includes "F. R. notes of other F. R. banks" as follows: Latest month, $18,665,000; month ago, $22,792,000; year ago, $17,291,000. ALL MEMBER BANKS—DEPOSITS SUBJECT TO RESERVE, RESERVES HELD, AND INDEBTEDNESS AT FEDERAL RESERVE BANKS [Averages of daily figures. In millions of dollars] Net demand deposits Time deposits Reserves held Indebtedness at Federal reservejDanks $4 Total Excess Federal reserve district January, February, January, February, January, February,, 1930 1930 1930 1930 January, February, January, February, 1930 1930,, 1930 1930 1930 1930 Boston 1,394 1,342 951 956 149.9 145.3 1.9 1.8 23.9 23.2 New York 7,080 6,821 3,241 3,210 956.5 930.1 14.0 21.5 110.9 70.5- Philadelphia.. 1,144 1,130 1,080 1,097 133.8 133.1 1.8 2.0 52.0 50. & Cleveland 1,473 1,471 1,623 1,636 182.2 182.9 2.0 2.7 72.8 53.3 Richmond 569 559 562 563 66.2 65.4 1.4 1.4 31.2 22.4 Atlanta 571 575 434 443 64.5 64.4 2.4 1.8 31.8 25.7 Chicago 2, 535 2,494 2,053 2,049 337.0 332.5 6.8 7.3 87.4 63.0 St. Louis 699 682 536 531 79.3 78.7 1.6 2.7 17.7 16.7 Minneapolis,. 427 417 442 453 51.3 50.4 2.8 2.5 7.0 3.0 Kansas City.. 850 833 354 359 88.7 87.1 3.8 3.5 27.8 22.8 Dallas... 659 655 225 233 63.0 63.6 2.1 2.7 13.3 11.9 San Francisco 1,312 1,277 1,756 1,735 176.7 172.4 3.9 3.3 21.8 15.0 Total.... 18, 713 18, 256 13, 257 13, 265 2,349.1 2,305.9 44.5 53.2 497.6 378.3 DISCOUNTS OF FEDERAL RESERVE BANKS, BY WEEKS [In thousands of dollars] Total Boston Y N o e r w k d P e h lp il h a i - a C l l a e n v d e- m Ri o c n h d - Atlanta Chicago M ap in ol n i e s - K C an it s y as Dallas Fra S n a c n isco Dec. 31 632, 421 26,644 171, 759 65, 777 76, 719 38,939 29, 347 112, 668 17, 938 i 10,177 29, 649 13,291 39, 513 Jan. 8 567, 615 22, 444 131,177 56, 695 78, 970 32, 561 35, 628 96, 919 18,870 I 9,204 33, 279 16,170 35, 698 Jan. 15... 442, 336 19,180 70, 626 49,817 77, 669 29, 918 32,884 86,865 16,448 4,238 25, 811 12,945 15,935- Jan. 22 433, 223 22, 440 89, 655 50,927 65, 590 24, 610 28, 668 73, 704 16,348 i 5,613 23, 687 11, 407 20, 574 Jan. 29 406,941 26,456 65,104 50, 399 58, 355 25,676 26, 959 77, 555 15,067 | 5,217 24,936 12,328 Feb. 5 381, 422 22, 787 54, 720 48, 978 54,827 22, 511 26, 527 74, 799 14,325 2,728 26, 552 11,896 20, 772 Feb. 12. 381,914 20, 345 79, 298 50, 552 54, 590 21, 015 25, 385 65, 939 15,189 2,457 26,043 11,097 10,004 Feb. 19 376, 943 23, 289 88, 787 47, 056 49, 374 22,951 23,457 54, 079 17,829 2,997 18,932 15,265 12,927 Feb. 26 342, 781 23, 544 58, 404 49, 710 46, 386 20, 906 24, 043 48, 497 16, 449 2,571 21, 009 11,068 17,194 Mar. 5... 308, 616 22, 656 39, 679 38, 583 40,119 18, 257 26, 263 49, 756 14, 574 2,583 20,743 11,105 24,298 Mar. 12. _ 266, 338 22, 705 33,148 38,424 34, 318 16,683 24, 319 38, 358 14, 450 2,190 14, 722 9,634 17, 389 Mar. 19 205, 634 18, 365 30,810 32, 492 25, 263 14, 707 17, 765 24,179 12, 341 2,252 13, 274 5,892 8,294 Mar. 26 206,829 18, 575 36,858 31, 297 26, 470 15, 304 14, 534 22, 685 12, 239 2,211 12, 698 5,579 8,379 Apr. 2.... 241,123 19, 492 53, 867 31, 434 27, 834 14, 648 16, 297 22, 049 13, 357 2,285 12, 322 6,579 20,959 Apr. 9 226,164 15, 731 62, 674 27, 649 26, 095 13, 380 15,197 19, 711 12, 628 2,373 12, 308 7,190 11, 228 Apr. 16... 213,804 13, 937 43, 916 26, 950 25, 528 15, 687 15, 672 24, 879 14, 518 2, 474 11,880 7,780 10,583 Apr. 23 211, 491 13, 932 34,126 27, 297 22, 870 16, 402 22, 053 22, 206 14,703 4,263 13,178 7,551 12, 910 Apr. 30 233, 452 13,737 41,270 29,581 20,717 18,931 25,652 23,298 16,118 3,681 15,099 8,190 17,178 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

290 FEDERAL RESERVE BULLETIN MAY, 1930 DISCOUNTS OF FEDERAL RESERVE BANKS | BANK DEBITS [Debits to individual accounts. In millions of dollars] [Averages of daily figures. In millions of dollars] Number March, February, March of centers 1930 1930 1929 1930 1929 Federal reserve bank New York City 1 40, 740 31,117 55,425 April March April Outside New York City 140 25, 014 21, 534 28,131 Federal reserve district: Boston 15.6 21 1 75 8 Boston 11 2,615 2,329 3,032 New York 53.7 54.3 264.6 New York 41,715 31, 940 56, 472 Philadelphia 28.3 36.7 110,0 Philadelphia 1 10 2, 505 2, 233 2,845 Cleveland- . ._ - , . _ .. 25.7 31.1 96.6 Cleveland 13 2, 667 2,325 2,945 Richmond 16.0 16.8 52.6 Richmond 764 654 778 Atlanta 18.8 21 6 63 6 Atlanta 15 1,068 1,009 1,248 Chicago 22.7 35.2 133. 4 Chicago . . 21 6,635 5, 489 7,650 St. Louis 13.9 14.0 51.8 St Louis 5 1, 188 1,050 1,358 Minneapolis _ _ _ _ . 3.1 2.4 19. 3 Minneapolis 9 730 664 745 Kansas City 12.8 16.2 38.8 Kansas City 15 1,348 1,222 1,452 Dallas _ _ . . 7.5 8 3 IS 6 Dallas 10 734 646 769 San Erancisco 13.1 15.8 79.3 San Francisco ___ 18 3,784 3,090 4,263 Total 231. 2 273. 5 1, 001. 4 Total _ 141 65, 754 52, 651 83, 556 WEEKLY REPORTING MEMBER BANKS IN LEADING CITIES PRINCIPAL RESOURCES AND LIABILITIES BY WEEKS [In millions of dollars] Federal Reserve District City Total Boston Y N o e r w k d P e h lp il h a i - a C la le n v d e- m Ri o c n h d - la A n t t - a c C a h g i o - L S ou t. is M ap in o n li e s - K C an it s y as Dallas F c S i r s a a c n n o - Y N o e r w k c C a h go i- ^ Loans and investments: Feb. 5 '•22,132 1,495 1,207 2,130 650 621 3,151 666 362 655 '466 1,939 7,551 1,799 Feb. 12. /22,10c 1,508 8,779 1,207 2,129 650 617 3,132 669 362 653 '465 1,934 7,525 1,786 Feb. 19 22,090 1,496 8,758 1,202 2,126 642 J 618 3,160 666 364 656 459 1,944 7,484 1,803 Feb. 26. _.. 22,003 1,485 8,694 1,196 2,128 642 618 3,158 662 369 655 459 1,938 7,412 1,815 Mai. 5 22,101 1,486 8,775 1,200 2,128 616 3,192 659 370 652 451 1,924 7,499 1,843 Mar. 12 _... 22,232 1,490 1,192 2,117 648 614 3,206 665 375 i 653 452 1,954 7,595 1,847 Mar. 19 22,514 1,511 9,033 1,203 2,146 657 628 3,214 670 376 : 645 470 1,960 7,747 1,857 Loan A A M A A A s p p p p p a : r r r r i r . . . . . . 9 2 2 3 1 2 3 0 6 6 _ '2 2 2 2 2 2 2 2 2 2 2 2 , , , , , , 6 5 7 5 7 5 3 6 4 6 5 9 3 0 6 3 5 2 1 1 1 1 1 1 , , , , , , 5 5 5 5 5 5 1 3 2 1 1 1 9 2 7 5 7 3 8 9 9 9 9 9 , , , , , , 9 0 1 2 1 0 9 2 8 2 5 4 8 0 8 5 1 1 1 1 1 1 1 1 , , , , , , 2 2 2 2 2 2 0 1 0 0 1 1 6 4 8 9 7 5 i • 2 2 2 2 2 2 , , , . , 1 1 2 1 1 ,1 6 7 0 6 8 8 8 7 3 5 5 6 6 6 6 6 6 6 5 4 5 5 5 5 2 6 0 8 2 8 ! ! ' 6 6 6 6 6 6 1 1 2 2 2 1 8 9 5 6 5 3 3 3 3 3 3 3 , , , , , , 2 1 2 2 2 2 4 9 5 2 3 0 8 7 7 8 0 5 '6 6 6 6 6 6 6 6 6 6 6 6 3 4 9 4 6 8 3 3 3 3 3 3 6 7 7 6 7 7 7 0 4 6 0 3 ; , j ' 6 6 6 6 6 6 6 5 3 5 4 5 0 6 9 8 2 5 4 4 4 4 4 46 6 6 6 7 6 3 6 8 7 0 2 1 1 1 1 1 1 , , , , , , 9 9 9 9 9 9 6 6 6 7 6 8 3 6 6 4 8 5 7 7 7 7 7 7 , , , , , , 8 8 7 7 9 7 8 5 5 2 4 3 5 6 0 4 7 8 1 1 1 1 1 1 , , , , , , 8 8 8 8 8 8 5 6 7 4 6 8 4 3 2 6 5 1 F F e e b b . . 5 1 2 _._- ' ' 1 1 6 6 , , 6 5 3 9 0 3 1 1 , , 1 1 6 8 8 1 6 6 , , 5 5 8 5 6 9 9 9 2 2 4 2 ' : • 5 5 2 2 3 3 4 4 9 9 5 5 i | 4 4 9 9 7 3 2 2 , , 4 5 8 0 6 2 5 5 1 2 6 0 2 2 4 4 8 7 ! j 4 4 4 4 1 1 ' '3 3 6 6 0 2 1 l , ,3 3 6 6 d 5 5 5 , , 6 6 1 4 1 8 1 1, , 4 4 2 4 9 1 Feb. 19 16,519 1,170 6,496 914 ! 515 486 j 494 2,511 517 248 | 443 353 1,371 5,578 1,444 Feb. 26 16,428 1,161 6,422 909; 518 487 I 494 2,510 512 253 I 443 352 1,368 5,499 1,454 M M a a r r . . 5 12 ! 1 1 6 6 , , 5 7 4 0 7 4 1 1, , 1 1 6 6 8 3 6 6 , ,5 6 2 5 5 1 914 ; 5 5 1 0 3 9 4 4 9 9 3 7 4 4 9 9 5 3 2 2 , ,5 5 5 3 0 3 5 51 1 5 1 2 2 5 5 3 9 i 4 4 4 3 0 9 3 34 4 6 5 1 1 , , 3 3 6 7 3 2 5 5, , 7 5 0 8 0 2 1 1 , , 4 4 7 8 2 3 Mar. 19 j 16,847 1,185 6,737 907 i 524 495 499 2,569 516 259 437 355 1,355 5,787 1,499 Mar. 26 1 16,885 1,192 j 6,752 915 ; 556 496 499 2,555 '511 256 431 353 1,364 5,810 1,495 Apr. 2 ! ' 16,913 1,183 6,829 920 535 496 497 2,543 '510 253 433 355 1,356 5,894 1,483 Apr. 9... ! 16,829 1,182 6,712 923 ' 534 500 495 2,568 513 251 441 356 1,353 5,780 1,495 Apr. 16... I 16,845 1,193 6,721 922 I 521 492 489 2,590 516 252 441 356 1,361 5,785 1,509 A A p p r r . . 2 3 3 0 ... _ - 1 1 6 6 , , 9 9 6 5 4 5 1 1 , ,1 1 6 8 6 1 6 6 , , 8 92 6 6 8 9 9 1 1 3 7 : ' 5 5 2 1 9 9 4 4S 9 9 2 ! j 4 4 8 8 9 3 2 2 , , 5 5 7 5 9 8 5 5 1 0 1 9 2 2 4 5 9 4 4 4 4 3 0 8 3 3 5 5 1 2 1 1 , , 3 H 5 6 0 3 5 5 , , 9 9 1 6 2 9 1 1 , , 5 4 0 9 0 2 On secuiities— Feb. 5 '7,692 503 3,378 492 728 | 192 | 158 1,237 230 133 '108 446 2, 921 849 Feb. 12 j '7,682 504 3,380 488 727 • 192 I 159 1,220 233 136 '109 446 2, 912 836 Feb. 19 i 7,669 504 3,359 483 : 723 185 j 159 1,247 232 85 ; 136 106 449 2,913 850 Feb. 26 ! 7,641 498 3,343 477: ffi 188 j '162 1,244 233 86 i 138 106 444 2,890 861 Mar. 5 ] 7,737 505 3,428 192 I 159 1,254 230 83 ; 135 106 445 2,953 868 Mar. 12 j 7,883 504 3,543 4 4 8 7 1 3 • : 196 i 164 1,274 233 89 ; 136 108 446 3,065 882 Mar. 19 ! 8,054 518 3,638 484 717 197 | 167 1,301 233 90 ; 135 118 445 3,160 905 Mar. 26 j r8,183 526 3,755 482 727 200 j 164 1,288 '229 87: 130 116 447 3,280 899 Apr. 2 _J '8,244 530 . 3,858 488 i 759 199 I 162 1,268 '228 85: 135 116 440 3,393 882 Apr. 9 I 8,163 533 I 3,743 485 '734 201 161 1,283 232 82 ! 147 121 437 3,284 880 Apr. 16 ! 8,238 552| 3,779 479 737 196 160 1,304 234 85 146 124 450 3,316 894 Apr. 23 1 8,326 551 3,894 484 728 197 158 1,274 230 85 ! 143 119 450 3,409 903 Apr. 30 1 8,381 531 3,998 478 ' 740 201 155 1,253 231 91 ! 140 119 453 3,511 890 731 i New series; for explanation see note on p. 277. r Revised. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

MAY, 1930 FEDERAL RESERVE BULLETIN 291 PRINCIPAL RESOURCES AND LIABILITIES BY WEEKS—Continued [In millions of dollars] Federal Reserve District City Total Boston Y N o e r w k C l l a e n v d e- m Ri o c n h d - i ! l A an t t - a c C a h g i o - Lo S u t. is M ap in o n li e s - K C an it s y as Dallas F S ra an n- Y N o e r w k c C a h g i o cisco Loans—Continued, j All other— j Feb. 5 ! 3,207 432 795 303 : 339 1,265 285 162 308 '254 922 2,727 592 Feb. 12 i ' 8,911 677 3,179 434 796 302 i 335 1,266 288 158 306 '251 919 2,700 593 F F e e b b . . 2 1 6 9 . j | ' 8 8 , , 8 7 5 8 0 7 6 6 6 6 6 3 3 3 , , 1 07 3 9 7 4 4 3 3 1 2 7 79 9 5 2 3 2 0 9 1 9 I j '3 3 3 3 2 5 1 1 , , 2 2 6 6 6 4 2 2 8 8 4 0 1 16 6 7 3 3 3 0 0 7 4 2 24 4 6 7 9 92 2 4 2 2 2, , 6 6 0 6 9 5 5 5 9 9 3 3 Mar. 5 ' 8, 810 658 3,097 434 794 301 336 1,279 '280 170 304 239 918 2,629 604 Mai. 12 8,821 664 3,108 434 792 301 • 328 1, 276 282 170 303 238 926 2, 635 601 M M a a r r . . 2 1 6 9 8 8, , 7 7 0 9 2 3 6 6 6 6 7 6 3 2 , , 0 9 9 9 9 7 4 43 3 9 0 7 7 9 9 6 7 2 2 9 9 8 5 j : 3 3 3 3 2 5 1 1 , , 2 26 6 6 8 '2 2 8 8 3 3 1 1 6 6 9 9 3 30 0 0 2 2 2 3 37 7 I i 9 91 1 7 0 2 2 , , 6 5 2 3 7 0 5 5 9 9 3 6 Apr. 2. 653 2,971 435 '801 296 ' 335 1,274 '282 168 298 239 916 2,501 602 Apr. 9 8,666 648 2,969 437 798 298 ' 334 1,285 ! 282 170 294 235 916 2,496 615 Apr. 16 8,607 641 2,942 434 793 296 ; 329 ! 1,2"" 282 166 296 232 910 2,4(18 616 Apr. 23 8,629 630 2,974 433 789 295 I 331 1,305 281 163 297 232 900 2,503 567 Apr. 30 8,583 635 2,928 430 787 288 ; 329 1,305 278 163 297 233 910 2,458 601 Investments: Feb. 5_. - r 5, 503 327 2,204 284 607 154 ' 125 649 150 114 214 '104 571 1,903 357 Feb. 12.... ' 5, 513 327 2,220 285 605 155 I 124 646 149 116 212 '105 569 1,914 357 Feb. 19 5, 571 326 2, 262 288 610 156 j 123 649 149 116 213 106 573 1,905 360 Feb. 26.... 5,575 324 2,272 287 611 155 | 124 648 149 116 213 106 571 1,914 360 Mar. 5.- 5,554 323 2,249 286 615 155 j 122 659 148 117 212 106 562 1,917 370 Mar. 12 5, 528 322 2,218 284 608 152 I 122 656 150 116 214 106 582 1,895 364 Mar. 19... 5, 667 326 2,296 289 623 162 129 644 154 117 208 115 i 605 1,9C~ 358 Mar. 26 5,678 327 2,289 288 647 156 126 650 154 117 208 113 602 1,946 358 Apr. 2 '5, 7L9 332 2,297 292 '651 162 129 655 153 120 209 113 607 1,956 362 Apr. 9 5,731 336 2,286 294 651 159 130 662 154 119 215 113 612 1,944 370 Apr. 16 5, 747 339 2,299 295 648 158 130 667 153 118 216 111 613 1,953 372 Apr. 23 5,791 347 2,321 297 648 159 129 670 153 118 221 110 618 1,973 372 Apr. 30 5,791 347 2,325 647 157 ! 129 670 155 112 217 111 622 1,977 372 U. S. Govt. securities— Feb. 5 ' 2, 725 164 1,192 289 S 287 37 323 1,096 153 Feb. 12 ' 2, 744 164 1,210 289 285 37 323 1,110 151 Feb. 19 2,808 164 1,262 293 294 36 325 1,114 160 Feb. 26 2,801 162 1, 256 294 6§J1 Ii 293 36 322 1,108 K0 A M A M M M A p p p a a a a r r r r r r r . . . . . . . 2 9 1 5 1 2 1 6 . 9 6 . 2 I ' 2 2 2 2 2 2 2 , , , , , , , 8 8 8 7 7 8 3 4 4 5 6 8 4 6 8 4 9 3 6 8 1 1 1 1 1 1 1 1 5 5 5 5 5 5 6 7 8 7 7 5 9 2 1 1 1 1 1 1 1 , . , , , , , 2 2 2 2 2 2 2 0 6 4 2 4 2 4 9 7 4 5 6 8 1 '3 2 3 3 3 3 2 2 2 2 9 0 2 9 6 3 9 6 8 0 8 5 5 6 6 6 5 62 9 8 6 2 4 2 j | i ! j 3 3 2 2 2 2 3 0 9 9 0 9 9 0 5 3 3 2 5 8 0 3 3 3 3 3 4 3 6 8 4 8 8 0 8 3 3 3 3 3 3 3 1 2 4 4 4 5 4 5 5 6 8 8 0 9 1 1 1 1 1 1 1 , , , , , , , 1 1 0 1 1 1 1 4 0 9 1 0 2 1 6 2 7 4 2 0 8 1 1 1 1 1 1 1 6 6 6 5 5 5 6 7 0 8 8 7 9 1 Apr. 23 i 2,873 160 1,248 78 317 63 j 316 40 351 1,120 1(2 Apr. 30 2,852 158 1,238 78 317 316 40 67 350 1,112 163 All other— Feb.5 '2,778 163 1,013 203 318 64 ! 361 113 121 40 248 204 Feb. 12 ; 2,769 163 1,010 204 316 63 361 112 117 '41 246 803 206 Feb. 19 ! 2, 763 162 1,000 207 317 63 355 113 120 41 248 792 200 Feb. 26 j 2,774 162 1,016 206 316 63 355 113 117 41 ! 248 805' 201 Mar. 5 2,788 161 1, 025 207 317 63 357 114 119 41 ! 246 815 203 Mar. 12 I 2, 775 164 1,009 208 312 63 350 114 119 41 i 257 798 196 Mar. 19 ! 2,806 169 1, 029 209 314 63 352 116 118 Si 257 814 198 Mai. 26 ! 2,834 172 1,043 210 319 64 357 116 118 256 826 202 A A A A A p p p p p r r r r r . . . . . 2 3 2 9 1 3 0 6 I i I , ' 2 2 2 2 2 , . . , , 9 9 8 8 8 1 4 7 9 9 7 0 2 3 8 1 1 1 1 1 7 8 7 8 8 9 6 5 0 9 1 1 1 1 1 , , , , , 0 0 0 0 0 5 5 8 5 7 8 8 7 2 3 2 2 2 2 2 1 1 1 2 L 9 7 7 0 4 '3 3 3 3 3 2 3 2 2 3 5 1 8 8 0 6 6 6 6 6 0 7 7 8 7 3 3 3 3 3 6 5 6 6 5 6 3 4 0 3 1 1 1 1 1 1 1 1 1 1 7 5 3 4 5 1 1 1 1 1 2 2 1 2 2 1 0 9 4 2 • 4 4 4 4 4 1 2 1 2 4 I ] ! ' j . 2 2 2 2 2 6 6 6 5 7 3 4 7 9 1 8 8 8 8 8 6 5 4 4 3 6 3 2 0 8 2 2 2 2 2 0 0 1 1 0 9 9 0 0 4 Reserve with F. It. i bank: Feb. 5 '1,702 99 809 129 40 i 245 52 33 108 747 170 Feb. 12 l ' 1, 688 101 800 127 39 ; 243 53 32 i 114 742 169 Feb. 19 i 1, 695 9S 805 131 40 ; 239 53 34 ' 110 743 165 Feb. 26 j 1,731 97 845 124 39 ; 246 55 33 j 109 782 171 Mar. 5 i 1,683 97 788 129 40 I 249 51 37 102 723 J74 Mar. 12.. 1,733 101 818 130 40 j 257 57 34 ' 108 755 177 Mar. 19.. _ 1,653 97 778 121 40 • 244 55 33 97 713 168 Mar. 26.. 1,719 814 130 40 i 251 55 39 i 103 751 174 Apr. 2 ' 1, 738 826 '133 39 259 54 33 105 758 181 A A p p r r . . 9 1 6 • 1 1 , , 7 7 1 4 4 6 8 8 1 2 3 4 1 1 2 3 9 2 4 4 0 0 , 2 2 5 6 3 3 5 58 5 I j 3 3 3 3 1 1 0 0 5 5 7 75 5 : 2 1 18 7 1 3 Apr. 23.... _ 1,727 811 120 40 ; 269 56 34 j 106 745 181 Apr. 30 1,774 849 130 41 281 56 34 99 782 192 Cash in vault: Feb.5 222 61 26 37 10 i 49 16 Feb. 12.... 225 62 27 10 36 11 49 15 Feb. 19 232 63 28 9 35 10 15 50 14 Fob.26 221 61 26 9 35 11 49 14 Mar. 5.. - 218 61 27 9 35 10 48 14 Mar. 12.. _ 222 61 27 10 36 11 48 14 Mar. 19... 212 58 27 9 34 11 46 14 Mar. 26 212 | 59 26 9 33 11 47 13 Apr. 2. 207 58 26 y 33 10 46 13 Apr. 9 216 60 27 9 : 34 11 47 14 Apr. 16 207 i 57 26 9 32 10 45 13 Apr. 23 221 1 59 29 10 35 11 47 13 Apr. 30 214 I. 59 27 9 35 11 47 13 r Revised. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

292 FEDERAL RESERVE BULLETIN MAY, 1930 PRINCIPAL RESOURCES AND LIABILITIES BY WEEKS—Continued [In millions of dollars] Federal Res<erve District City Total Boston Y N o e r w k d P e h l i p l h a- ia C la le n v d e- m Ri o c n h d - la A n t t - a c C a h g i o - L S ou t. is M ap in o n li e s - K C an it s y as Dallas F c S i r s a a c n n o - Y N o ew rk C ca h g i- o Net demand deposits: Feb 5 ' 13,010 901 5,871 704 1,002 351 332 1, 775 370 208 471 '287 739 5,300 ]. 188 Feb 12 ' 12,978 916 5,802 703 '996 353 330 1,766 373 210 476 '286 766 5,218 , 177 Feb. 19 12,966 901 5,785 699 1,002 345 330 1,797 370 211 479 290 757 5,199 1% Feb. 26 ' 12,943 879 5,816 686 998 346 330 1,795 372 216 482 284 740 5,226 Mar 5 12,940 887 5,787 714 1,009 354 327 1,812 367 225 474 281 701 5,186 L 218 Mar 12 13,152 893 5,871 706 1,015 353 331 1,849 379 230 489 282 753 5,276 931 Mar 19 13,076 897 5,877 701 1,015 347 319 1,835 378 225 479 284 719 5 278 917 Mar 26 13,205 891 5,920 700 1,043 351 324 1,835 378 222 479 333 727 5,320 Apr 2 ' 13,329 917 6,029 725 ' 1,040 351 328 1,851 377 222 480 286 723 5,426 1, 941 Apr. 9 _ 13,208 899 5,896 723 1,036 354 329 1,867 380 222 486 289 728 5,300 Apr 16 13,383 919 5,979 711 1,042 347 337 1,906 386 222 498 295 742 5 366 9fi7 Apr 23 13,455 908 6,120 711 1,042 346 328 1,899 375 218 490 289 729 5,485 1,252 Apr. 30 13, 581 924 6,252 705 1,036 342 327 1,900 372 223 484 287 728 5,625 1,258 Time deposits: Feb 5 ' 6,863 478 1,799 295 942 239 2*2 1,177 229 133 174 '145 1,010 1,241 507 Feb. 12 ' 6,856 ,77 1,787 296 948 240 240 1,177 229 134 173 '146 1,008 1,223 508 Feb 19 6,851 478 1,790 297 946 239 241 1,174 229 134 174 144 1,006 1 225 501 Feb 26 6,874 479 1, 796 297 950 239 241 1,183 229 134 175 143 1,009 L 230 511 Mar. 5 6,887 474 1,810 285 916 240 243 1,196 230 130 176 143 1,015 1,246 521 Mar 12 6,948 475 1,867 287 940 240 243 1,200 230 131 176 143 1,015 L 295 525 Mar 19 6,975 478 1,876 293 948 241 241 1,201 231 132 177 144 1,014 L 304 523 Mar 26 7,085 488 1,921 292 982 241 244 1,209 231 133 180 145 1,020 I 351 530 Apr 2 ' 7,087 477 1, 933 28b '981 245 243 1,210 231 133 178 146 1,024 L 368 532 Apr 9 7,102 492 1,929 286 983 246 242 1.208 231 131 178 148 1,027 [ 368 528 Apr 16 7,068 491 1,904 297 966 246 244 1,210 229 131 177 146 1,025 244 529 Apr 23 7,034 491 1,891 299 965 247 244 1,188 230 131 178 146 1,025 1 334 532 Apr 30 7,055 477 1,909 302 969 241 243 1,193 231 131 178 i50 1,030 l' 344 538 Government deposits: Feb 5 18 1 4 1 2 2 2 2 4 2 Feb 12 9 2 1 1 1 1 1 2 2 1 Feb 19 4 1 1 1 Feb 26 5 1 1 Mar. 5 Mar. 12 Mar 19 280 20 108 18 23 16 24 14 4 1 4 19 30 99 10 Mar. 26 238 17 92 16 20 14 20 12 3 1 3 16 25 85 8 Apr. 2 217 15 84 14 18 13 18 10 3 1 3 14 23 77 7 Apr 9 173 12 C7 11 14 10 14 8 2 1 2 11 18 61 Apr. 16 141 10 55 9 12 8 12 7 2 1 2 9 15 50 5 Apr 23 108 8 42 7 9 6 9 5 1 1 7 11 38 4 Apr 30 96 7 36 6 8 9 8 5 1 1 6 10 33 3 Due from banks: Feb.5 r 1,110 54 114 58 90 51 73 210 59 51 116 '62 171 77 129 Feb 12 ' 1,131 38 120 55 87 50 76 232 64 52 124 '59 176 76 152 Feb 19 1,104 42 116 58 93 49 68 225 58 49 117 67 163 78 145 Feb. 26 ' 1,082 48 111 57 94 48 70 211 54 49 119 62 159 74 130 Mar. 5 1,098 45 117 57 94 50 74 209 58 51 125 64 154 77 124 Mar 12 1,113 44 119 57 97 48 73 202 54 53 121 67 175 82 119 Mar. 19 1,219 58 158 73 100 49 77 229 57 47 131 72 168 112 136 Mar 26 '1,204 50 148 58 99 52 79 213 54 48 131 114 158 107 117 Apr. 2 ' 1,232 67 171 65 ' 106 57 78 226 '59 50 130 72 152 122 133 Apr 9 i 1,130 52 146 59 110 52 75 188 57 49 115 70 156 105 104 Apr. 16 ... A 1,194 62 146 67 106 51 74 214 56 49 130 71 168 102 123 Apr. 23 1,155 59 169 58 99 51 65 192 55 46 118 68 174 125 116 Apr. 30 1,188 ' 65 193 64 99 55 67 196 51 55 115 68 159 147 116 Due to banks: Feb 5 ' 2,899 135 1,013 172 209 102 119 423 137 77 205 100 206 950 303 Feb. 12 2,848 129 972 176 209 92 113 433 134 76 201 100 213 911 315 Feb. 19 _ 2,734 115 904 170 203 94 109 431 129 73 200 98 208 844 314 Feb. 26 2,790 108 965 165 210 98 111 436 124 75 205 95 198 904 314 Mar. 5 I 2,910 115 1,006 172 211 100 115 460 126 82 211 96 215 943 330 Mar 12 2,827 114 958 169 208 93 110 451 121 81 199 88 233 897 327 " Mar. 19 2,933 119 1,044 171 216 96 109 471 125 80 198 89 214 982 341 Mar. 26. - 2,922 119 1,045 162 231 98 110 468 119 81 190 89 212 983 338 Apr. 2 3,061 139 1,106 187 '234 105 113 477 126 80 195 91 206 1,039 346 Apr. 9 2,954 128 1,041 173 236 99 116 455 125 79 191 91 220 975 333 Apr. 16 2,961 134 1,042 173 237 96 112 456 124 76 196 88 226 975 331 Apr. 23 . .. 1 2, 797 126 960 165 226 94 102 451 116 74 187 90 206 891 321 Apr. 30 2,930 124 1,096 165 225 96 100 454 113 80 180 83 215 1,030 328 Borrowings from F. R. Banks: Feb 5 173 5 17 11 33 9 15 45 4 14 7 11 11 3 Feb 12 185 5 47 14 34 7 14 36 4 15 6 2 37 2 Feb. 19 186 6 58 12 31 9 12 28 6 1 8 10 5 37 1 Feb 26 152 8 25 16 30 8 12 24 5 10 6 8 1 1 Mar. 5 128 6 9 8 23 7 14 26 3 10 6 16 2 1 Mar. 12 '96 7 6 9 20 '6 12 17 3 5 5 8 1 Mar 19 51 4 4 5 12 5 7 6 3 3 2 Mar 26 47 4 9 4 14 4 3 3 2 3 1 1 Apr. 2 82 5 27 5 15 4 4 3 2 2 1 13 15 Apr. 9 75 4 38 4 13 3 2 2 2 2 1 3 31 Apr 16 65 3 22 4 13 5 3 8 3 2 2 1 16 7 Apr. 23 58 2 12 4 10 4 8 6 3 1 2 1 3 m Apr. 30 74 3 17 4 7 7 10 4 1 4 1 8 12 •• Revised. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

293 MAY, 1930 FEDERAL RESERVE BULLETIN BUILDING CONTRACTS AWARDED BUILDING PERMITS ISSUED [Value of contracts in thousands of dollars] [Value of permits in thousands of dollars] 1930 ; 1929 1930 1929 Num- Federal reserve district Federal reserve district ber of ' March February March cities March February March I Boston 28,102 17,961 30,044 Boston 14 ! 7,319 4,076 12,572 New York _ 105,493 90,312 113,466 New York.... 22 I 44,610 30,231 188, 517 Philadelphia 25,511 17,743 35,399 Philadelphia.. 14 11,020 4,241 14,808 Cleveland 60,012 35,992 47,078 Cleveland 12 i 15,850 9,639 16,104 Richmond _ 43,220 28, 707 32,979 Richmond 15 12,126 6,011 13,013 Atlanta _ 20,898 19, 526 Atlanta 15 3,179 7,595 Chicago i 73,812 37,983 ; 107,289 Chicago 19 i 15, 503 15, 729 44, 279 St. Louis _-.| 23,705 24,510 ! 38,795 St. Louis 5 3,085 2,670 5,952 Minneapolis... _i 15,131 4,980 | 8,343 Minneapolis.. 2,035 1,083 2,545 Kansas City ..._! 35,974 18,071 I 22,854 Kansas City.. 8,022 6,501 9,154 Dallas 24,260 21,267 i 23,204 Dallas 5,840 4,614 7,371 San Francisco. 20 ; 19,905 14,144 30, 729 Total (11 districts). 456,119 317,053 i 484,848 Total... 168 '• 151,944 102,118 352,637 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 adjustment adjustment Wi a th d o ju u s t tm se e a n s t onal W ad it j h u s s t e m as e o n n t al Federal reserve N be u r m o - f Num- district stores 1930 1929 1930 1929 Federal reserve ber of district stores 1930 1929 1930 1929 Mar. Feb. Mar. Mar. Feb. Mar. Mar. | Feb. Mar. Mar. Feb. Mar. I Boston 34 95 87 99 93 93 97 New York 34 107 107 105 108 105 Boston j 36 101 97 103 104 Philadelphia 45 85 90 81 83 85 New York \ 60 103 , 111 115 114 115 Cleveland . 49 92 86 97 90 90 93 Philadelphia ! 57 83 ! 99 • 88 90 98 Richmond.. 28 100 91 100 97 96 97 Cleveland 55 105 95 98 107 Atlanta 29 94 90 101 91 92 99 Richmond l 28 114 103 107 115 Chicago . . 79 113 105 113 109 M09 109 Atlanta 41 I 93 113 j 101 103 117 St Louis 19 88 82 91 86 88 90 Chicago 97 120 106 * 112 124 Minneapolis 14 73 '69 78 70 '72 75 St. Louis ..._ 19 93 110 100 102 111 Kansas City J 21 116 113 122 Minneapolis 18 87 92 ; 98 '89 96 Dallas 21 82 77 83 80 80 80 Kansas City i__ 27 102 San Francisco 32 108 104 106 106 109 104 Dallas 22 i 115 106 107 116 San Francisco 36 j 112 115 120 117 116 Total 413 100 93 102 97 98 99 Total 496 \ 95 83 110 104 i 106 ! 113 i Monthly average 1925=100. ' Revised. i Monthly average 1925=100. r Revised. BANK SUSPENSIONS1 IN MARCH, 1930 COMMERCIAL FAILURES1 [Amounts in thousands of dollars] [Amounts in thousands of dollars] All banks M ba e n m k b s e 2 r Non b m an e k m s ber Number Liabilities Fede d r i a s l t r r i e c s t erve Num- De- Num- De- Num- Deber posits 3 ber posits3 ber posits 3 Federal reserve district 1 Boston 1 2,707 1 2,707 New York Ph iladelDhia Cleveland 2 1,186 2 1,186 Boston 264 | 283 200 5,020 6,124 3,017 Richmond 4 626 4 626 New York 416 ! 563 310 11,401 13,466 7,226 Atlanta - 8 2,166 1 526 7 1,640 Philadelphia.. 132 ! 123 77 2,054 3,757 1,584 Chicago 27 6,319 2 964 25 5,355 Cleveland 169 168 194 5,263 3,023 4,141 St. Louis 9 2,629 2 705 7 1,924 Richmond 126 145 140 2,418 2,168 Minneapolis 15 1,709 2 325 13 1,384 Atlanta 204 93 101 3,659 1,844 2,983 Kansas City 8 6,282 3 ! 5,728 5 554 Chicago 333 376 366 15,854 8,845 6,329 Dallas St. Louis 133 102 123 2,420 6,030 1,988 San Francisco • 1 85 1 85 Minneapolis.. 101 48 39 1,100 522 541 Kansas City.. 124 115 119 1,827 1,231 1,707 Total 75 23,709 || . 10 8,248 65 15,461 Dallas 66 42 49 926 1,359 559 San Francisco. 279 204 4,684 2,706 4,113 1 Banks closed to the public on account of financial difficulties by Total... 2,347 i 2,262 1,987 56,846 51, 326 36,356 order of supervisory authorities or directors of the bank. 2 Includes 9 national banks with deposits of $7,722,000 and 1 State member bank with deposits of $526,000. i Figures reported by R. G. Dun Co. 3 Subject to revision. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

294 FEDERAL RESERVE BULLETIN MAY, 1930 FOREIGN BANKING AND BUSINESS CONDITIONS ANNUAL REPORT OF THE NATIONAL BANK OF BELGIUM The annual report of the National Bank of Under these circumstances the bank is in a Belgium for 1929 was submitted to the general position to exchange its notes for gold at any meeting of shareholders on February 24, 1930. time, although up to the present and at the Selected sections of the report are given here- existing level of exchange only jewelers have with.1 had any occasion to demand metal. This situation, however, might change; therefore in The favorable developments which had their the revision of our by-laws we took pains to origin in our currency stabilization have conelaborate in chapter 3 the provisions which tinued and strengthened during 1929, and three define the methods of note convertibility.2 years of great prosperity have now followed The gold added to our reserve during 1929 the return of this country to sound money. came partly from the United States, partly From the standpoint of currency, all those from the London market, and partly from the countries which have reestablished the convert- Congo, in the following proportions: ibility of their bank notes in gold or gold exchange have benefited as a result of the reform which they had the courage to accomplish. At Francs Dollars the same time that the international flow of funds on a stable basis has been assured, the Gold from the United States ' 11,179,500,000 32, 790,000 interdependence of the great markets of the Gold from England .._!• 175,000,000 4,865,000 Gold from the colony | 96,225,000 2, 675, 000 world has again become evident and calls for constant attention. During almost the entire 1, 450, 725, 000 40, 330, 000 year the money market has been influenced by 1 It should be noted that these figures do not agree exactly with those the withdrawal of capital in large volume for given above and published in the weekly balance sheets of the bank; the investment on the New York stock exchange, differences, which are of minor importance, are due to (1) sales of gold to industries, (2) imports of gold coin, and (3) purchases of gold by the where excessive speculation and high rates of Treasury. It should also be noted that Belgian customs statistics do not include gold imported for monetary uses. interest proved attractive to holders of funds. On the other hand, the advance in most Euro- As the gold output of the Congo is turned pean exchanges reacted on the American mar- over to us under contract and so comes to us ket. Ultimately, the speculative crash in the regularly, we left on deposit with the Federal United States brought about a considerable Reserve Bank of New York part of the gold release of funds and a return to more moderate which we acquired in the United States, and conditions for short-term credit. In Belgium waited until we could replace it by gold the amplitude of the gold and gold exchange imported from the colony. But in March reserves and the prosperity of the export indus- and April last the opportunity arose to transact tries kept our money market from experiencing an important operation with the Reichsbank, the ill effects of these disturbances. which consisted in transferring to the Reichs- Gold policy.—Our policy in respect to gold has been to secure the demand liabilities of the 2 ART. 160. Notes are payable at sight at the offices of the bank in bank in such manner that the metallic reserve Brussels according to the terms of the royal decree of Oct. 25,1926, relative to currency stabilization. in and of itself shall constitute a sufficient coyer, Notes are likewise redeemable on demand at the branches and the agencies in the Provinces. Such payment, however, may be postponed and that under these circumstances the holdings until the necessary funds can be received. of foreign exchange shall form a supplementary ART. 161. The bank shall redeem its notes in gold and on demand at its wickets at the legal parity of 0.209211 gram of fine gold per belga. margin of security. The results of this policy Gold payments shall be made in the form of bars or bullion of the weight generally used in the principal money markets of the world are clearly indicated in the following table, (about 12 kilograms). which shows the reserve ratio of gold alone for ART. 162. If the bank makes use of the privilege reserved to it by article 8 of the royal decree of Oct. 25, 1926, it shall itself determine on the past four years: what market it will deliver bills of exchange. Only banking centers Per CGnt shall be selected in which the bank of issue redeems its notes in gold and Dec. 25, 1926 30. 90 on demand. The rate of exchange to be used is the actual parity, increased at dis- Dec. 25, 1927 32. 86 cretion by a commission not to exceed the difference between parity and Dec. 25, 1928 36. 17 gold export point, allowing for costs of transportation, interest, and Dec. 25, 1929 40. 48 insurance to its destination in the foreign center in question. ART. 163. For purchases of gold at its wickets, the bank may deduct from the legal parity a commission equivalent to the costs of minting. 1 In addition the report contains discussion of the international situa- ART. 164. The provisions of articles 46 and 47 of the present by-laws, tion, commerce, industry, and agriculture, the position of labor, and the relating especially to the assay certificate for bullion, are applicable growth of savings, as well as details of bank operations and a number of to the operation provided for in the preceding article. tables. For earlier reports see FEDERAL RESERVE BULLETIN, April, These regulations were approved by the Minister of Finance Apr. 10, 1929, 1928, 1927, 1926, etc. 1929. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

295 MAY, 1930 FEDERAL RESERVE BULLETIN bank against gold bullion which the Reichs- be, need not be a matter of concern to the bank bank shipped to us from Berlin dollar balances of issue. By no means is this the case, and the which we held in New York. This interesting bank has neglected none of the expedients at clearing operation made it possible—to the its disposal to keep the circulation within advantage of both banks—to save the greater prudent limits. Furthermore, it has continued part of the costs which would otherwise have the policy which we described in our annual been incurred by the double shipment of gold reports for the years 1927 and 1928, and between America and Europe. This is a con- the Government has seconded these efforts spicuous instance of cooperation between banks by continuing to redeem the balance of the of issue, and it is because of this feature that debt which it contracted through the withwe call attention to it. drawal of German marks. On the whole gold is now distributed among Discount rates.—From July 1, 1928, until the central banks of the world in a far more July 31, 1929—that is to * say during 13 normal proportion than in the years immedi- months—our discount rate stood unchanged ately following the war. This new distribution at 4 per cent. This reasonableness and this is more in line with the needs of the general stability of the cost of short-term money were economic situation and gives the European exceedingly helpful to commerce and industry. markets a certain independence in performing They were maintained in our domestic market their economic functions. in spite of large international movements of Note circulation.—Turning now to the cir- capital and in face of a general tension in interculation, we find that the monthly average of est rates resulting from successive advances in notes in circulation rose from 11,925,922,000 official rates in London, in New York, and in francs ($331,541,000) in January, 1929, to most foreign banking centers. 13,401,947,000 francs ($372,574,000) in De- This independent policy, which would cercember, 1929, an increase of 1,476,025,000 tainly not have been possible for us before the francs ($41,033,000). This advance is due war, shows the advantages offered by our preschiefly to the influx of foreign exchange. The ent position, and especially by the amplitude bank, in other words, has never tried to acquire of our gold reserves. The result was of course gold, as is sometimes thought. It has merely a very considerable increase in our portfolio of taken up the volume of gold exchange which domestic securities. Thus, in one year, from has come into the country in excess of the needs July 1928, to July, 1929, this portfolio was of the market. It has done this systematically increased by about 1,500,000,000 francs ($41,at a rate corresponding to the gold import 700,000) to the great advantage of Belgian point or slightly lower. Being in possession industry. On the other hand, we find as in of these foreign bills, and finding that the previous years that our portfolio of commercial market was not repurchasing them, the bank securities is smaller than it was before the war. converted them into gold in the considerable Toward the end of July, 1929, however, redisamount noted above. It may be said, there- counts threatened to increase too rapidly, and fore, that the greater part of the additional the situation of the international money market circulation was issued against 100 per cent in demanded prudence. Under these circumgold values. stances our discount rate was raised to 5 per cent. Subsequent events were not slow in This influx of foreign exchange came from the justifying this decision. Demands on the surplus in our balance of payments, which bank for credit at once assumed more moderate throughout the year was influenced by a large proportions. Some weeks later a financial volume of exports sold at favorable prices. crisis of exceptional violence occurred on the The loans floated abroad and the purchase of New York stock exchange. As a result of the Belgian securities by foreign investors aided enormous liquidation which took place in that this movement, but to a less extent than during market the tendency toward higher money rates, previous years. Likewise the participation of which had been noticeable up to that time, was foreign markets in capital increases, which have completely reversed. On November 13, 1929, been numerous in Belgium during 1929, were our discount rate was lowered from 5 to 4V per by no means negligible. Nevertheless, a certain 2 cent, and later, on December 31, to 3% per cent. balance has been struck through the purchase of foreign securities by our own nationals. In lowering its rate of discount at the end of All these economic phenomena are normal in the year to %}{ per cent—the lowest rate existing character. at that time—the National Bank strove to give its support to the commerce and industry of the This is not to say that the increase of our country at a time when the situation of foreign circulation, however adequately covered it may 109492—30 4 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

296 FEDERAL RESERVE BULLETIN MAY, 1930 markets and the high level of net costs of pro- we have called attention from time to time, duction at home made exporting more difficult. that a movement on the stock exchange which The private rate of discount has been con- overlooks essential considerations, such as stantly held very close to the official rate. In business profits and investing capacity, bears general, money has been abundant and the rate within itself the seeds of a depression the for call money not very profitable. seriousness of which will be in proportion to Securities market.—The stock exchange and the extent to which the principles of sound public securities play so large and so important finance have been disregarded. a part in the modern world that they are a In contrast with the weakness of the stock considerable factor in the money market. Dur- market, the market for rentes remained strong ing all of 1929 the Belgian stock exchanges, and steadily improved, as did also the bond marsobered by the crisis which took place about ket. Thus, in the course of the year the Belgian the middle of 1928, were quiet and often inac- Communu al Credit Office was ab] e to p] ace about tive. The volume of shares issued, neverthe- 9,000,000 francs ($250,000) of 6 per cent bonds less, was fairly large. issued almost at par. At the time of waiting The margin, nearly always considerable, this report the price of securities with fixed between the issue price and the market quota- yield has still further improved. The return tion was favorable to investment in securities. of investors to this t}^pe of securities is also in During the excessive speculation which char- evidence on foreign markets. It is facilitated acterized the year 1928, huge issues were floated by the decline in the rate on short-term loans. one after another. The purchasing power of This revival was necessary in the public the public became exhausted, bringing about a interest as well as in that of industrial enterdecline in quotations. Thereafter the position prises, to which the bond market has been of the stock exchange was at the mercy of practically closed for a long time, although chance. In October the decline was accentuated they were in a position to offer investments under the influence of the inactivity of foreign which were both safe and profitable. bourses; shortly afterwards the downward Banking situation.—The general situation of movement was hastened by the debacle which the Belgian banks, which is always thoroughly occurred in the New York market. sound, was strengthened still further during In order to appreciate the movement as a the year under review by a large volume of whole and its results, it will be sufficient to business and by important increases of capital glance through the following table, which gives, and reserve. The following table gives a summonth by month for 1928 and 1929, the index mary of the balance sheets as of December 31, of the Brussels stock exchange as it is published 1927, and December 31, 1928. periodically in the bulletin issued by our Economic Research Service. It should also POSITION OF THE PRINCIPAL BELGIAN CREDIT INSTITUbe remembered that the base for this table— TIONS ON DECEMBER 31 that is, the quotation on January 3, 1928—was [In thousands of francs] already at a very high level. 19281 1927 2 INDEX OF THE BRUSSELS STOCK EXCHANGE Resources: [120 securities with variable yield. Base January 3,1928=100] Cash funds: Cash on hand, at National Bank, postal checks, coupons, foreign currency 3,194,235 2, 620, 046 Commercial bills discounted (exclusive of 1928 1929 rediscounts).. 5,066,198 4, 392,881 Securities and participations 4,168,076 3, 356, 306 Debits in current account, banking corre- January... 100 108 spondents, acceptances, loans and securi- February. 107 117 ties, advances, accounts carried forward. 16,574, 704 13,171,854 March 10fi 114 Liabilities: April 121 112 Paid-up capital _ 2, 703, 928 1,876, 243 May 125 104 Reserves 2,190, 268 1, 091, 637 June 124 102 Aggregate capital and reserves _ 4,894,196 2,967, 880 July 11 f) 97 Miscellaneous liabilities: Credits in cur- August 103 99 rent account, correspondents, accept- September 119 103 • ances, bills payable 23, 858,613 20,316,729 October.. _ 111 hO Percentage of— November 110 85 Cash funds to miscellaneous liabilities , 13.39 12.90 December. 107 75 Bills discounted to miscellaneous liabilities.! 21.23 21.62 Debits in current account to miscellaneous liabilities 69.47 64.83 Capital and reserves to— The fluctuations are wide, and there is no Miscellaneous liabilities 20.51 14.61 doubt that our financial market and the public Security investments and participations 117.42 88.43 suffered great losses. Such happenings confirm once again those truths of experience to which 1 58 banks; decrease from preceding year due to amalgamations. 2 62 banks. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

297 MAY, 1930 FEDEKAL RESERVE BULLETIN It will be seen that the participation of the the most useful ends do not justify its being Belgian banks in industry and commerce, rep- increased to any considerable extent, since the resented by their portfolio of securities and resources arising out of German reparations participations, is considerably less than the have already been allocated to new expendiaggregate of their own funds—that is, than the tures. aggregate of their paid-in capital and reserves. Conclusion.—Belgium has closed the one- BALANCE SHEET OF NATIONAL BANK OF BELGIUM DECEMBER 25, 1929 hundredth year of its independent existence with an economic situation which on balance Francs" (in Dollars i (in is favorable. It is her duty to maintain this thousands) thousands) position. The depression and the difficulties now prevailing in most foreign markets, if they RESOURCES Reserve: persist and are augmented, may give Belgium Gold 5,875,239 163,332 also reason to fear a cycle of business depres- Foreign exchange on gold standard countries.. 2,796,100 77,732 sion. The country is in a position to withstand 8,671,339 241,063 such a period, provided it uses prudence and Subsidiary coin _ 11,446 318 does not neglect the lessons of the past. Belgian and foreign bills 4,038,570 112,272 Advances on Belgian public securities 166,099 4,618 The concern for international markets domi- Belgian treasury bills and other public securities (royal decree of Oct. 25, 1926) 1,687,716 46,919 nates our industry as well as our labor. In this Public securities 186, 721 5,191 connection we should realize that foreign com- Public securities in the surplus account of the bank... 73,697 2,049 petition is rapidly winning back the advantages Public securities in amortization account of real estate in use, furniture, and fixtures.—. 34,692 964 which we were able to gain as a result of various Insurance fund assets 76,092 2,115 temporary causes; consequently a great effort Bills deposited for collection in current account. 55,822 1,552 Real estate in use _ 96,362 2,679 on the part of commercial organizations and a Furniture and fixtures 4,700 131 Provision for the manufacture of bank notes, rigorous supervision of costs of production are and labor involved 3,655 102 imperative if we wish to maintain our position. Interest earned or receivable 6,191 172 Assets held in pledge or to be liquidated (art. On this point employers and workers are in 34 of the statutes) 3,511 entire agreement. Total resources 15,116,614 420,242 The same necessity for prudence exists in LIABILITIES the matter of public finance. The excellent Bank notes: Issued 14, 747,092 409,969 situation of the treasury, it is true, justifies Held by the bank.. 1,309,611 36,407 some important tax reductions which the Gov- In circulation _ 13,437,481 373,662 ernment has submitted to Parliament. Tax Current accounts: reductions, moreover, will permit a corre- Treasury.. _ _ 151, 745 4,219 sponding increase in savings which can be made Individual 923,453 25,672 available to business enterprises. The same 1,075,198 29,891 principle applies to the amortization of the Bills deposited for collection in current account. 55,822 1,552 public debt, which ought to be very greatly Capital 200,000 5,560 Surplus 76,693 2,132 reduced because its service constitutes a heavy Amortization account of real estate in use, charge upon the country. In this connection In f s u u r r n a i n tu ce re f , u a n n d d . .. fixtures 3 7 9 6 , , 3 7 6 0 0 2 2 1, , 1 1 0 2 4 4 the repayment of certain foreign loans which Interest and rediscount 19,974 555 Taxes payable to the Government: are especially burdensome is particularly to be Profits on discounts and advances in excess of 3H per cent 20,228 562 recommended. Tax on fiduciary circulation 8,055 224 To imagine, however, that the country is in Share of the Government in profits on foreign exchange 76,008 2,113 a position to expand its public expenditures, Share of the Government in profits (art. 38 of the statutes) 15,038 418 whether these are made by the Government or by local administrations and authorities, or 119,329 3,317 Unpaid dividend for second half year of 1929.. 16,026 446 even by endowed institutions of the civil service, would be a grave error. Our public Total liabilities 15,116,614 420, 242 debt has been only partly reduced, and even * Converted at par of exchange: 1 franc=$0.0278. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

298 FEDERAL BESERVE BULLETIN MAY, 1930 ANNUAL REPORT OF THE GERMAN REICHSBANK The annual report of the German Reichsbank of commodities. Standard wages based on for 1929 was presented to the genera] meeting wage agreements, which, like many commodity of shareholders on February 15, 1930. The prices, are largely controlled through cartels, main section of the report dealing with finan- continued to advance even in the latter half of cial and economic conditions is given here- the year. with: x The money market.—Immediately after the 1928 end of year settlements the seasonal re- For the Reichsbank the year 1929 was espelaxation set in, and on January 12 the Reichscially noteworthy because of the successful bank was able to reduce its discount rate from recovery from the currency disturbance which 7 to 6% per cent. Because of the considerable took place in the spring in connection with the decline in the volume of its credit outstanding, negotiations of the experts at Paris. The octhe bank was able deliberately to disregard the currence strikingly revealed the dependence of fact that curtailment of the margin between German credit upon political factors, as well rates of interest in and outside Germany would as the grave dangers arising from large foreign check the influx of foreign capital, and under indebtedness. Even though the actual diffisome circumstances might even involve a reculties were overcome within a relatively short duction in the Reichsbank's large holdings of time, nevertheless the checkered course of the gold and foreign exchange. The withdrawals Paris conference and its unsatisfactory outcome of gold and foreign exchange which began in for Germany prevented the material and the spring, however, assumed proportions psychological relief which all countries had beyond anything that had been anticipated. hoped might follow from it. In Germany, at Not only did the service of interest and amortiall events, there remained a lingering economic zation of the heavy foreign indebtedness and and political unrest which, accentuated by the the unremitting foreign exchange payments on bankruptcy of some well-known firms as well reparation account draw heavily on the gold as by the financial embarrassment of many and devisen of the Reichsbank, but the situapublic bodies, still persists. tion of the leading international money markets Business recession.—The business recession, became less favorable; finally, toward the end which had begun as early as 1928, was more of March there began a " flight from the severe during the year under review. The ex- mark/7 the origins of which are to be sought ceptionally long and rigorous winter, the repain a fear psychosis created by the uncertainration payments which had risen to their maxities of the Paris conference and fostered by mum amount, the continued advance in rates irresponsible elements within and outside of interest—already abnormal—credit difficul- Germany. Inasmuch as Germany, as a result ties, high unemployment figures, and oppressive of her own lack of capital and her heavy repapublic charges, combined with inadequate busiration burdens, is dependent on the assistance ness profits—these were some of the additional of foreign capital, grave difficulties arose factors which characterized the economic situawhen foreign aid ceased to be available and tion during the year. That figures of production foreign funds were withdrawn—in part deliband sales were comparatively slow in showing erately—or were no longer sent to Germany for a decline, and that the decline when it came investment. The dangers inherent for Gerwas comparatively slight, was due partly to the many in this situation were clearly revealed strength and determination of German enterduring the crisis in the spring, although prise to withstand the difficulties against which throughout the negotiations on the Young plan, it had to contend, and partly to an increased both in Paris and at The Hague, they were kept capacity on the part of foreign countries to in the background. It was inevitable that this absorb German products, which compensated situation should affect the German money and to some extent for the reduction of internal capital market in such a way as to undermine purchasing power. Some of the exports, howand unsettle confidence. ever, were effected at sacrifice prices. While prices controlled through cartels and similar An advance in the discount rate of the bank organizations in general maintained their level, from 6}i to 7}i per cent, made effective on prices not thus controlled declined in all groups April 25, had no effect. There was neither any return flow of gold and foreign exchange to the 1 In addition the report contains several charts and tables, as well as Reichsbank, nor any reduction of demands on details of banking operations. For earlier reports see Federal Reserve the Reichsbank for negotiation of inland bills. Bulletin March, 1929, May, 1928, 1927, 1926, etc. I Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

MAY, 1930 FEDERAL RESERVE BULLETIN 299 It became increasingly clear that a crisis of 1,500,000,000 reichsmarks ($357,300,000) of confidence had developed; the demand for gold and foreign exchange. Under the influence domestic credit rose beyond the economic re- of the withdrawals of foreign exchange by quirements of the country, and was directed German and foreign holders the official quotalargely to the accumulation of stocks of foreign tion of the dollar dropped to the gold export exchange. In this situation, in which advance point. The necessary consignments of gold to in the discount rate seemed to be without foreign' countries were in every case effected effect, the Reichsbank at the beginning of May by the Reichsbank itself, which sold the gold unfortunately felt itself compelled to employ principally in New York. In order to dispense the method of credit restriction. The bank with the actual shipment of part of this gold to management is, however, fully persuaded that New York, agreements were made on several credit restrictions involve a danger to economic occasions with foreign (European) banks of development, depriving business of the undis- issue, which placed the necessary amounts at turbed flow of services which it is the function the disposal of the Reichsbank out of their of currency to render. The utilization of this stocks of earmarked gold on deposit in America. last resource, therefore, was justified only by The gold delivered by the Reichsbank in exthe fact that Germany was powerless to resist change, amounting to about 700,000,000 foreign pressure, and confidence within the reichsmarks ($166,740,000), was shipped, not country was threatening to give way. to America, but to the European centers con- The aim of the policy of restriction, namely, cerned. Altogether some 870,000,000 reichsto limit the demand for credit to essential marks ($207,234,000) were sold in New York, purposes, was quickly attained, especially as 40,000,000 reichsmarks ($9,528,000) in London, the progress of the Paris negotiations relieved 17,000,000 reichsmarks ($4,049,400) in Paris, the general situation. The gold and foreign and 28,000,000 reichsmarks ($6,669,600) in exchange holdings of the Reichsbank began Holland and Switzerland. once more to advance, and by the end of May The short-term foreign indebtedness of the the demand for Reichsbank credit had been German banks at the end of March and the end reduced to proportions which the bank could of June, 1929, was not much less than at the meet without danger. The measures of re- end of December, 1928, in spite of the large striction became less and less necessary, and surrenders of foreign exchange by the Reichsby the middle of June were superfluous. bank during this period; in the second half During the latter half of the year the position year a considerable increase was again to be of the Reichsbank improved still further, so observed. From the inflow of funds the that there was no longer any objection on the Reichsbank was able once more to replenish its part of the bank to relieving the business holdings of foreign exchange. At first the bank community by a reduction in the discount rate. had purchased to only a limited extent the But in view of the exceptionally difficult condi- foreign exchange accumulated during the tions in foreign money markets and the large flight from the mark and now offered to it as a volume of Germany's short-term indebtedness result of the measures of credit restriction. to foreign countries, it was essential to avoid too The effect of this policy was to strengthen great a reduction of the margin between inter- reichsmark exchange. The improvement of est rates in Germany and in the principal the reichsmark was especially noticeable with foreign markets. Under these circumstances reference to sterling, which was periodically it was not possible until November 2 to meet depressed on the international market. From the pressing need of the business community the end of May it was possible to import gold for a relief from the burden of interest, and from England. If the Reichsbank on occasion then only to the extent of one-half per cent. intervened to prevent such imports, it did so in Further reduction, which might have been order that the Bank of England might not be led possible in view of the easier conditions that to adopt a discount policy which in turn would were beginning by that time to prevail on all be undesirable for the German money market. foreign markets, was unfortunately impossible Position of the reichsmark.—Movements of owing to special conditions in the German the exchanges during the eventful period of the market—in particular, the continual demand for year under review show that the Reichsbank credit on the part of public bodies. was able at all times to protect and maintain Movement of gold and foreign exchange.— the stability of the reichsmark. The bank was During the critical weeks in the spring of 1929 able to improve its position quickly with the the Reichsbank surrendered altogether nearly aid of the measures indicated whenever it Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

300 FEDERAL RESERVE BULLETIN MAY, 1930 considered such measures necessary; and it extent by special contractual participations showed once again that, even under difficult in German enterprises. As a result of this circumstances, it can fulfill the tasks imposed development, any estimate of the undoubtedly upon it in so far as it is prepared to make ener- large volume of foreign capital which found its getic use of the powers at its command. way into Germany during the past year is It is most regretable that there should never- even more difficult than it was in previous theless still be persons who speak and write of years. an impending collapse of the currency and The Reichsbank as the currency institution endeavor to alarm the public by prophesying a which finances short-term credit is, in the nanew inflation. Such action is particularly ture of things, limited in the amount of supunscrupulous on the part of persons who go port it can give to the capital market; so that about the country protesting without any the not inconsiderable extension of the list of sense of responsibility against the collection of securities eligible as collateral for lombard taxation, and make a living out of such loans, as well as other facilities accorded lompractices. bard transactions, can be of little practical The capital market.—The tension in the significance. German capital market increased still further Proposed changes in the Reichsbank law.— during the year under review. There was a In connection with the proposed reparation marked decline in the ability of the market to settlement, a revision of the Reichsbank law absorb capital issues. The volume of public has also been under discussion. The changes loans and issues of mortgage bonds diminished; proposed take account of the situation created considerable amounts of public issues could not by The Hague agreement, while certain other be placed at all, and the interested parties were provisions of the law are adjusted to requireobliged, in order to support the quotations, ments which have in the interval made themto}'take large blocks off the market without selves felt. The fundamental principles of the even then being able to accomplish their present law remain unchanged; and in particupurpose. Quotations on the stock exchange lar the independence of the Reichsbank is still fell almost uninterruptedly. Mortgage bonds further secured. Special mention should be were so depressed that the placing of mortgages made of the new proposals respecting distriat tolerable interest rates was practically bution of profits, which are included in the impossible. For industrial concerns also it other provisions for amendment to be presented was generally impossible to raise capital by the to the general meeting for its approval. The issue of shares or bonds. Rates of interest in arrangement contemplated in the Dawes plan the German capital market rose continuously, and incorporated in section 37 of the bank law and are now, as formerly, far in excess of the lim- of August 31, 1924, was based on the assumpits which can be borne by an industrial country tion that it would be desirable to increase the which has international connections and is capital of the Reichsbank to 400,000,000 dependent on the formation of capital. The reichsmarks ($95,280,000), or at least to an average yield of fixed interest-bearing securi- effective amount of 300,000,000 reichsmarks ties at 8 per cent or less quoted on the Berlin ($71,460,000), and to draw on the foreign Stock Exchange rose from 8.02 per cent at the capital market for the purpose. Neither step end of 1928 to 8.42 per cent at the end of 1929. has been necessary. The Reichsbank has been The financial difficulties of the Reich and of a able to manage hitherto with the capital which large number of German municipalities at the it acquired through consolidation of its old end of the year showed that the highly pre- shares and the transfer to it of shares, of the carious system of meeting long-term capital Golddiskontbank and other institutions. While, commitments over considerable periods of therefore, it seemed only reasonable in connectime by the provisional contraction of short- tion with the new reparations plan—which term debts had reached a point at which it imposes extremely heavy commitments on the was no longer practicable. Reich—to modify an obviously unfair distri- In proportion as foreign financial capital bution of profits based on incorrect assumpceased to be available to Germany in the form tions, it was impossible to ask the shareholders of long-term loans, the dependence of German to agree to such a change without the offer industrial concerns on foreign industrial capital of a suitable equivalent. Improvement in the increased. Purchases by foreign countries of position of the Reich is assured by the follow- German shares through the medium of the ing arrangement: After payment of a minimum stock exchange were replaced to an increasing dividend of 8 per cent to the shareholders the Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

MAY, 1930 FEDERAL RESERVE BULLETIN 301 distribution of the remaining profits will be BALANCE SHEET OF THE GERMAN REICHSBANK AS OF changed in such a way that of the first 25,000,- DECEMBER 31, 1929—Continued 000 reichsmarks ($5,955,000) the Reich will receive. 75 per cent and the shareholders 25 per Reichs- Dollars marks (In [ (in thoucent; of the next 20,000,000 reichsmarks thousands) sands) ($4,764,000), the Reich will receive 90 per cent and the shareholders 10 per cent; of any sur- RESOURCES—continued plus still remaining, the Reich will receive 95 Loans against collateral (lombards), viz: per' cent and the shareholders 5 per cent. Loans against gold and silver (sec. 21, 3a, of the bank law) 1 The general meeting will be asked to agree to Loans against securities (sec. 21,3b, c, d, of the this proposal, subject to the provision that bank law) 166,667 39,700 Loans against bills (sec. 21, 3e, of the bank shareholders shall be entitled, gratis, out of the law) 32,878 7,832 reserves of the bank, to a £10 Golddiskontbank Loans against goods (sec. 21, 3f, of the bank law) 1,170 279 share and a new Reichsbank share of 100 Loans against long term obligations of the Reich (sec. 21, 3, par. 2, of the bank law)... 27,434 6,535 reichsmarks (both with dividend as from Jan- Loans against treasury bills of the Reich (sec. uary 1, 1930) in respect of every four old shares 21, 3g, of the bank law) _ _ 22,480 5,355 of 100 reichmarks each. 250,630 j 59,700 The capital of the German Golddiskontbank Securities owned _ i 93,292 22,222 Doubtful assets ! 9,779 12,329 will be paid up in full before this arrangement Land and buildings _ \ 30,000 7,146 is put into effect, so that in future it will have Claims resulting from the settlement with the j Reich _ _! 108,914 at its disposal a share capital of approximately Miscellaneous: i Bank notes no longer fit for circulation .; 583 200,000,000 reichsmarks ($47,640,000) and re- Postponed claim on the German Rentenbank I serves of approximately 50,000,000 reichsmarks in virtue of section 11, 4 of the law of Aug. 30, 1924, for the liquidation of Rentenbank j ($11,910,000). These resources offer a practi- notes in circulation ... 70,082 16,694 cal basis for the resumption and extension of its Claim on the German Rentenbank in respect i of the Rentenbank notes withdrawn from j activities in the financing of exports, and justify circulation and placed under earmark for ! the amount of the above-mentioned claim j the expectation that even after the abolition— of the Reichsbank j 70,082 16,694 contemplated in connection with the revision of Credit balances with postal check offices I 20,038 4,773 Other claims ! 140,842 33,549 banking legislation—of the present privileged 301,628 71,848 position in regard to taxation, of the cumulative dividend, and of the share of the Reich in the Total resources... profits, a reasonable return on the share capital will be earned. In any case the resumption of a Total bank-note issue 6,413,975 dividend payment is proposed for the year 1930. Credit balances of giro and current accounts 755,170 Original capital: Shares issued 122,788 29,248 BALANCE SHEET OF THE GERMAN REICHSBANK AS OP Shares not yet issued 177,212 42,212 DECEMBER 31, 1929 300,000 71,460 Legal reserve fund (including transfer from net profits of the year 1929).— 53,915 12,843 Reserve for pensions, etc 80,000 19,056 Reichs- Dollars i Reserve for probable losses (including 15,000,000 marks (in (in thou- reichsmarks transfer from gross profits of the thousands) sands) year 1929) 90,000 21,438 Reserves for — RESOURCES Printing of new notes 35,000 8,337 New buildings 35,000 8,337 Reichsbank shares not issued., 177,212 42,212 Increase of original capital 31,000 7,384 •Gold, not under lien (gold bars, domestic and foreign, coins): 101,000 24,058 In the cash offices of the bank 2,133,329 508,159 Special reserve fund for future payments of div With foreign central banks of issue 149, 788 35, 680 dends _ 45,811 10,912 2, 283,117 543,838 Misc In el t l e a r n e e s o t u o s n : bills due in 1930 11,043 Cash balances: Dividends due but not yet paid _ 171 Subsidiary coin _ __ __ 89, 111 21,226 Rentenmark sinking fund 17 Rentenbank notes 9,616 2,291 Dollar treasury notes of the Reich to be re- Reichsbank notes 1,369, 716 326,266 deemed by the Reichsbank _ 279 66 Notes of German private banks of issue. 3,979 948 Liabilities in foreign currencies 197 47 Other book debts 120,676 28,745 1,472,422 i 350,731 Credit balances in foreign currencies (of which the 132, 383 31,534 equivalent of 401,043,000 reichsmarks was as- F F o o s r r i e e g i i n g g e n n d n b a i o s l l t s c e o a s v n . e . d . r c fo h r e t c h k _ e s . n . otes in circulation) 3 4 9 1 2 3 6 , , , 5 2 4 4 3 5 4 4 3 [ i ! 9 94 8 , , 4 4 6 3 3 0 5 2 6 Net L p e r f o s u s f n i d t 2 s 0 f p o e r r t h c e e n y t e a a s r s 1 ig 9 n 2 e 9 d to the legal reserve 2 5 5 , , 1 5 1 8 8 9 6 1 , ,2 0 1 9 9 5 Domestic bills and checks: T O r t e h a e s r u d ry o m b e il s l t s i c o f b i t l h ls e a R n e d i c c h h . ecks. _ 2,2 2 1 4 2 0 , , 4 6 7 9 9 0 i ! 5 5 2 7 7 , ,0 3 1 3 2 2 Contingent liabilities resulting from negotiated 20,471 4,876 Domestic bills negotiated _ domestic bills Silver 332 79 Total liabilities.. 7,992,726 1,903,867 * Conversion at par: 1 reichsmark=$0.2382. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

302 FEDERAL RESERVE BULLETIN MAY, 1930 ANNUAL REPORT OF THE BANK OF JAPAN The annual report of the Bank of Japan for abroad showing favorable development, the 1929 was submitted to the general meeting of Government announced on November 21, by shareholders on February 15, 1930. The an ordinance of the Finance Ministry, the repeal address of Mr. Hisaakira Hijikate, governor of of the ordinance regulating gold exports, to the bank, is given herewith:x take effect on January 11, 1930. Thus was solved the long-standing problem of the removal Business conditions during the past year, as of the gold embargo. in the preceding year, were characterized by Money market.—The money market disslackness. Foreign trade was from the beginplayed a growing tendency toward relaxation ning distinctly unfavorable; the exchanges folfrom the beginning of the year under review: lowed a downward course, while the question Overnight loans were obtainable in Tokyo, in of the removal of the gold embargo remained the middle of January, at as low as 0.4 sen per undecided. The depression became even more diem (1.46 per cent per annum), with other pronounced in the latter half of the year, when rates showing an equally easy trend. Consethe new Government, on coming into power, quently, the associated banks in Tokyo and made the restoration of the gold standard one Osaka lowered in February their rates of of its cardinal policies. In order to insure the interest on deposits to 4% per cent per annum attainment of the goal, the Government effected in respect of fixed deposits with the class A a retrenchment and economy in public finances, banks and to 5 per cent on those with the endeavored to check fresh expansions of national class B banks, the banks at other centers and local government debts, and inculcated following suit. The reduction in the rates of thrift and economy in consumption upon the interest on deposits had the effect of hastening nation. In deference to the Government's pola decline in loan rates. The share market, icy, which gradually assumed a definite shape, however, was extremely wary and inactive, business and industry were induced to adopt owing to the uncertain outlook on the golda more cautious attitude. Commercial transembargo situation. Interest seemed to center actions were further held up. In various in debenture issues. As the terms of issue branches of industry production was limited or became more favorable to the borrowers, the subjected to further curtailment, promotions refunding of old loans at lower rates of interest or extensions of business enterprises were conwas undertaken to a large extent, thereby spicuous by their decline, and commodity and serving in no small measure to improve the share prices moved to lower levels. position of industrial establishments. The Meanwhile, under the influence of economy activity in corporation debentures, however, in consumption and expectations of an early did not last beyond the month of May, so that, removal of the ban on the export of gold, forwhereas the total amount of debentures issued eign trade showed a falling off in imports and during the first six months reached 690,000,000 an advance in exports, which resulted in an yen ($343,965,000), the figure fell away in the improvement in the country's position in interlatter half year to 350,000,000 yen ($174,475,national payments. The exchanges also began 000), or about one-half. The business in to take a sharp upward turn. Whereupon, with Government bonds was likewise inactive a view to mitigating the effects upon business throughout the year, and with the approach of of a violent advance in exchange rates and to the embargo removal the weakness in the share replenishing its holdings of foreign funds in market was more in evidence. The commercial connection with the return to the gold standard, transactions in seasonal goods were also limited the Government proceeded to purchase foreign to immediate requirements. This, combined exchanges. Moreover, the Yokohama Specie with declines in commodity prices, resulted in Bank, assisted by the Government and this an extreme slackness in the movements of bank, established credits in London and New funds. Bank clearings reflected the situation. York to the extent of 100,000,000 yen ($49,- The aggregate of clearings at all clearing houses 850,000). While these preparations were in during the past year, amounting to 63,100,000,progress, it so happened that money rates in 000 yen ($31,455,350,000), shows a decrease of foreign countries began to take a downward 5,300,000,000 yen ($2,642,050,000), compared course. The conditions both at home and with the preceding year. The keen anxiety manifested by bankers during the first half year i Official English version, published (in abridged form) by the Bank of Japan. In addition to the address of the governor, the report con- to seek employment in short loans for the funds, tains numerous tables showing the condition and operations of the bank. For earlier reports see FEDERAL RESERVE BULLETIN, April, 1929; which had accumulated as the result of their May, 1928; 1927; June, 1926; etc. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

MAY, 1930 FEDERAL RESERVE BULLETIN 303 calling in long-term credits and their reluctance ment of the account was effected, indemnificato furnish them, was intensified in the last tion from the Government according as our half year. The proceeds of the foreign ex- advances were recognized as losses. The entire changes purchased by the Government increased amount so received was in the form of Governthe already abundant supplies of funds on ment bonds aggregating 99,000,000 yen ($49,bankers' hands, so that the treasury bills to 351,500) in all. the amount of 35,000,000 yen ($17,447,500) Government issues.—The amount of Govoffered in October were sold out on the day of ernment bonds issued during the past year, issue.at the rate of 1 sen per diem (3.65 per excluding rice-purchase notes and treasury cent per annum). Discount rates likewise bills, totaled 441,000,000 yen ($219,838,500), showed an easing tendency all through the year. against repayments of 335,000,000 yen Commercial paper, which was quoted in Tokyo ($166,997,500), leaving a net increase in earlier in the year at 1.6-1.7 sen, (5.84 per cent national debt of 106,000,000 yen ($52,841,000). to 6.24 per cent per annum), ruled after Of the entire issues only 271,000,000 yen August at 1.5 sen. Overnight money did not ($135,093,500) of conversion loans were offered rise above 1.5-1.6 sen (5.51 per cent to 5.84 per to the public. The new issues of 169,000,000 cent per annum) even at the time of year-end yen ($84,246,500), with the exception of the pressure and the turn of the year passed quite portion subscribed for by the treasmy deposit easily. bureau, were delivered to the various Japanese Central bank credit.—Turning now to a banks in connection with the readjustment of consideration of the bank's business, we observe their loans to the Chinese Government or used a gradual decrease in the loans and discounts in payment for the purchase of private railways due to repayments of special advances made and for other purposes. Of the amount repaid, under the indemnity act and other loans, the 260,000,000 yen ($129,610,000) were retired total amount of advances outstanding in the upon maturity, while 74,000,000 yen ($36,middle of December receding to 684,000,000 889,000) were purchased by means of sinkingyen ($340,974,000). As the year-end require- fund operations. ments for currency were largely met out of the International developments.—Turning to bankers' deposits with us, our advances, after conditions abroad, in the United States the rising for a time to 748,000,000 yen ($372,- phenomenal prosperity that marked the pre- 878,000), decreased on December 31 to 679,- ceding years continued in the past year. The 000,000 yen ($338,481,500), of which 598,000,- speculative enthusiasm in the stock markets 000 yen ($298,103,000) represented the ad- attained an excessive intensity and created an vances under the indemnity act. Of the extraordinarily strong demand for funds. deposits with the bank, although Government Money rates, in consequence, rose higher and deposits showed on the whole a decrease, the higher, and there was a continuous efflux of superabundance of funds in the market caused European funds to New York, resulting in a private deposits to be maintained at substan- sympathetic rise in rates in the financial centers tial figures throughout the year, with monthly of the world. However, with the spectacular averages ranging between 258,000,000 yen reaction that occurred late in October, more ($128,613,000) and 352,000,000 yen ($175,- normal conditions obtained in the United States 472,000). Even at the year end the figures and money rates in the European markets also did not fall below 152,000,000 yen ($75,772,- tended to lower levels, a development quite 000). The increase in private deposits and the favorable to the removal of the gold embargo repayment of advances caused a contraction in this country. in the bank-note circulation, the monthly aver- The international conferences that were held ages of the note issue ranging between 1,191,- in Europe did much toward the settlement of 000,000 yen ($593,713,500) and 1,396,000,000 the German reparations problem, bringing yen ($695,906,000). The amount outstanding about a brighter economic outlook in that part on December 31 was 1,641,000,000 yen ($818,- of the world. Still, the general situation in 038.500), showing a decrease of;97,000,000 yen Europe was one of continued depression. ($48,354,500) in comparison with a year ago. Although the boycott of Japanese merchandise As regards the special advances made by the in China practically subsided, the political unbank in respect of the earthquake bills, we re- settlement in that country, combined with the ceived between December, 1927, and February, slump in the price of silver, had a diminishing 1929, by which latter date a complete settle- effect on the purchasing power of the general Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

304 FEDERAL RESERVE BULLETIN MAY, 1930 public. In India, Australia, and the South embargo, however, marks merely the first Seas conditions were not wholly satisfactory step in the return to normality of our economic as a result of decreased agricultural crops or activities. The healthy unfolding of national of declines in their prices. Nevertheless, our resources under a full gold standard can come exports to those quarters increased more or less only through the continued exertions of the owing to peculiar market conditions obtaining nation in the future. The development of there. industries and the expansion of foreign com- Foreign trade and foreign exchange.—The merce are the urgent needs of the country. It feature of the foreign trade of this country was devolves upon this bank, as its essential funca great rush of raw-cotton imports in the first tion, to meet the monetary needs of the comsix months, which was largely responsible for munity, while at the same time so regulating the excess of imports over exports during the and controlling the circulation of money as period, amounting, in respect of Japan proper, to insure the stability of the currency system. to 282,000,000 yen ($140,577,000). In the We shall, accordingly, be guided by these latter half, however, each succeeding month considerations in determining the discount showed a substantial excess of exports, so that, policy and other measures to be pursued by taking the year as a whole, the import balance this bank; and it is important that we extend was reduced to 67,000,000 yen ($33,399,500). credits only where liquidity is assured and The returns for the whole country, including strictty refrain from making such advances as Chosen and Taiwan, showed exports valued at would tend to tie up our resources. For my 2,217,000,000 yen ($1,105,174,500) against im- part, I shall do my best in conducting the bank's ports of 2,388,000,000 yen ($1,190,418,000). affairs in accordance with these principles. The net import balance of 171,000,000 yen ($85,243,500) showed a decrease of 163,000,000 BALANCE SHEET OF THE BANK OF JAPAN AS OF yen compared with the corresponding figures DECEMBER 31, 1929 for the preceding year, and was the lowest recorded in the postwar period. The foreign exchange rate followed a downward trend from the beginning of the year, reflecting the unfavorable condition of trade RESOURCES iri the first half-year. The Yokohama Specie Advances to Government ^art. 2, bank-note act)... 22,000 10, 967 Bank's rate on New York, which was quoted Advances on foreign bills 30,033 14,971 Bills discounted _ 51,475 25,660 early in the year at $46, fell away by the end of Bills discounted (law No. 55 of 1927) _. 598,180 298,193 June to $43.75, a decline of $2.25. The practical Deposits with other banks j 36,993 18,441 Government bonds. | 221,979 110,C57 measures taken in furtherance of the Govern- Gold and silver bullion \ 819,447 408,494 Agencies accounts _ _ j 25,943 12,933 ment's policy of the return to gold, together Agencies accounts, specified _ 4,627 2,307 with the improvement in our trade position, Foreign agencies accounts _J 240,973 120,125 Suspense payments _ _ ! 439 219 brought about a rally in the exchange, which Bank premises __ _ I 4,729 2,357 Capital unpaid ! 22, 500 11,216 steadily rose from July, until $48,625 was Redemption fund for fiactional Government reached on November 21, the day of the notes as pei contra 12,085 6,024 Cash items on Government account 49,840 24,845 announcement on the removal of the embargo. Cash on hand 289,628 144, 380 Further advances brought the rate by the end Total resources ], 211, 789 of the year to $49, showing a gain of $5.25 LIABILITIES since the end of June when the lowest point in Notes issued 1, 641,852 818,463 the year was touched. Redemption fund foi fractional Government Restoration of the gold standard.—It will be notes 12,085 6,024 Government deposits _. 392,096 195,460 seen from the above that the latter half of the Funds for the payment of mint certificates 100 50 Current accounts 140, 561 70,070 past year saw the efforts for the restoration of Remittances 11,530 5,748 the gold standard brought to fruition. If the Due to other banks 3 1 Suspense receipts 67,754 33,775 depression in business was somewhat deepened Reserve for taxes 2,637 1,315 Capital subscribed 60,000 29,910 in the course of the attainment of that object, Reserve fund 91,765 45,744 it is highly gratifying that, thanks to the Reserve against depreciation of bank premises 615 307 Dividends unpaid _ _ _ 4 2 measures taken by the Government and the Profit brought forward from last half year 4,916 2,451 Net profit for the current half year 4,952 2,469 cooperation of the public at large, this great problem has finally been solved without any Total liabilities 2,430,871 1,211,789 disturbing effects. The removal of the gold * Conversion at par: 1 yen=$0.4985. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

305 MAY, 1930 FEDEKAL EESERVE BULLETIN ANNUAL REPORT OF THE NATIONAL BANK OF SWITZERLAND The annual report of the Swiss National Bank preliminary draft of a bill amending the bank for 1929 was submitted to the meeting of stock- law and adapting it to new conditions. These holders on January 22, 1930. The full text of proposals, approved on March 2, 1929, by the the report, with the exception of paragaphs general assembly of shareholders of the bank dealing with the branches of the bank and with and transmitted to the Federal Assembly, personnel, are given herewith.1 were made the subject of a message and a bill submitted to the houses of Parliament by the Currency situation since 1914.—In decreeing Federal Council on October 8, 1929. This on July 30, 1914, that notes of the Swiss Nabill was debated and approved without delay tional Bank should be inconvertible and acceptin the December session. This decree bears ed as legal tender the Federal Council was the following title: "Federal law of December exercising powers conferred upon it by the bank 20, 1929, amending the Federal law of April 7, law. This decree still remains in force, although 1921, in re the Swiss National Bank." The the circumstances under which it was legally Federal Council at the end of three months permissible—i. e., "emergency in time of allowed for referendum will fix the date on war"—have long since ceased to exist. An inwhich the law shall become effective. creasing body of opinion demands the removal The new law modifies the organic law of of this decree, which is contrary to the law and 1921 only in respect to those points which are no longer justifiable. The situation in Switzerland and in other countries, howrever, has incompatible with the introduction of gold monometallism. Henceforward silver will no undergone great changes; so many countries longer be eligible as metallic reserve. There have reformed their currency by establishing will be no mention of it in article 19 of the or preparing for a return to the gold standard bank law, which governs the reserve; accordthat a simple repeal of this decree is not suffiingly the provision in article 19bis of the law cient. Its mere repeal would reintroduce the of September 27, 1923, authorizing the inclulegislative provisions in force before 1914, sion in the metallic reserve of 5-franc pieces of which required that the reserve should consist the Latin Monetary Union which had been of "gold or silver coin having the quality of withdrawn from circulation, becomes null and legal tender or a value recognized by legal void. The right—of which the bank had convention, but exclusive of silver fractional never availed itself—to issue silver certificates, currency and foreign gold coin and bullion"; as provided in article 14, is revoked. On the and that bank notes should be redeemable other hand, article 19 introduces a new pro- "in lawful money." vision, which obligates the National Bank to Proposed amendments to bank law.—The maintain a minimum reserve of 40 per cent dissolution of the Latin Monetary Union has within Switzerland, which implies that any enabled Switzerland to inaugurate a truly part of the reserve in excess of 40 per cent national currency system under which foreign may be held abroad. gold coin and 5-franc silver pieces, formerly The revised law contains the following procirculating in the country and recognized as visions for redemption of notes: currency either by law or agreement, have ART. 20. The National Bank is obligated to redeem finally lost their legal-tender quality. This its notes on demand in Swiss gold coin— state of affairs made it necessary that our (a) At its office in Berne, without limit as to amount. banking law should be amended at the same (5) At its office in Zurich, as well as at the branches time at which the exemptions of the bank in and agencies administered by the bank, to the extent that the reserve of coin and their own needs permit, respect to note redemption were to be repealed. but in any event with no more delay than is necessary A small commission of experts, summoned in to have specie brought from the head office. January by the Federal Department of Fi- The service of note redemption shall be organized nance to study the problem of currency reform, to meet the needs of the locality. ART. 20bis. During such time as the banks of issue adopted the solution which was under considof countries designated as important by the authorities eration by the Department of Finance and the of the bank do not themselves redeem their notes in bank of issue, namely, to change from bimet- gold coin, the bank shall have the right to redeem its allism to gold monometallism; thereupon the notes on demand in one or another of the following forms: banking authorities w^ere able to finish their In Swiss gold coin; In gold bars, of the customary commercial weight 1 In addition the report contains details of bank operations, tables, (about 12 kilograms) on the basis of mint parity; and discussion of financial conditions, gold movements, etc., in other In gold exchange (bank deposit or check); that is countries. For earlier reports see FEDERAL RESERVE BULLETIN, April, 1929, 1928; March, 1927; April, 1926, etc. to say, in exchange on countries having a free gold Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

306 rjEDERAL RESERVE BULLETIN MAY, 1930 market. The rate of conversion of this exchange shall tory and closely related to our economic life, be calculated on the basis of the exchange rate of become in many ways a factor of great signifithe foreign currency at the time of the transaction. cance to this country. It shall not, however, in any case exceed the export point for shipment of Swiss gold coin to the foreign The International Bank, created for the bank on which the draft is drawn. The selection of purpose of carrying out the reparation plan, the foreign currencies [in which redemption is to be owes its origin to the postwar situation. The effected] is reserved to the National Bank. Dawes plan of 1924—the first attempt to Redemption shall be made— In gold coin and gold bars, at the office in Berne liquidate the financial consequences of the war without limitation as to amount; at the office in on economic rather than on political considera- Zurich, and at the branches and agencies administered tions—was superseded provisionally on Sepby the bank, to the extent that the reserve and their own needs permit, but in any event writh no more tember 1 by the Young plan, as embodied in delay than is necessary to bring the metal from the the final report of the committee of experts head office; which met in Paris from February 9 to June 7 In gold exchange at any of the above-mentioned under the presidency of an American, Mr. offices of the bank, without limitation as to amount. Owen D. Young. Their desire to substitute The service of note redemption shall be organized to meet the needs of the locality. for more or less political controls an organism of economic and commercial character, and In principle, article 20 provides that the their conviction that the management of conversion of bank notes shall be made exclu- reparations would involve large financial operasively in Swiss gold coin, and thus implies that tions, led the experts at once to envisage the gold will be put into circulation. For the pres- creation of an International Bank. They folent, however, the provision is important rather lowed up this idea and stated their conclusions as a goal to be achieved, because for practical in the final report mentioned above. In reasons its application must be deferred until August, after prolonged negotiations, The such time as those other countries w^hich are Hague conference of representatives of the financially important to us shall again have put various Governments concerned ratified the gold coin into circulation. It is impossible, Young plan in its essential particulars. Theretherefore, to fix the precise date on which it upon an organization committee met in Baden will go into effect; until then the bank will Baden during October and November and drew redeem its notes in accordance with the tempo- up the statutes and charter of the International rary arrangement provided in article 20bis. Bank, which w^ere approved in January by the In framing the amendment the question was subsequent Hague conference. There, in acconsidered of retaining—in other words, of in- cordance with the suggestion of the organizacluding permanently—in the banking law the tion committee, the conference finally chose legal-tender status of notes of the National Basel as the seat of the International Bank. Bank, established by the decree of the Federal This choice may be regarded as proof of confi- Council of July 30, 1914. According to article dence in the political and economic situation of 30 of the Federal constitution and of article 22 Switzerland and in the soundness of its currency. of the bank law, such a measure can be decreed The idea of creating a special institution for by the Federal Council only in an emergency in international settlements is by no means new; time of war. Inasmuch as a decision to make it has been put forward in various forms during this change would have required an amendment the past decade. The extreme currency depreto the Federal constitution, it seemed preferciation brought about by the war, as well as able to give it up in order to expedite the monethe reciprocal indebtedness of the former beltary reform. Thus from the time when the ligerents, have strengthened the desire for interamended banking legislation becomes effective, national collaboration and have shown the inconvertibility and legal-tender quality will absolute necessity of cooperation between both be abrogated, and the situation as probanks of issue. The International Bank, vided for under the constitution will be reestherefore, will not be restricted to the performtablished. ance of its immediate task, namely, that of Bank for International Settlements.—The administering the reparations plan; it will also event which deserves first place in our discus- be called upon to promote cooperation besion of business and finance is unquestionably tween central banks. From this point of view the creation of the Bank for International no slight importance attaches to the establish- Settlements. This institution, in addition to ment of a system of clearings through transfers playing a most important part in international of gold or foreign exchange. Besides the counbusiness, will also, being located in Swiss terri- tries directly concerned in reparations, only Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

MAY, 1930 FEDERAL RESERVE BULLETIN 307 such Governments as have a currency which con- short of the expectations raised by the success forms to the practical requirements of the gold of the previous year, the total income from or gold exchange standard will be allowed to this source will hardly be less than that of 1928. participate in the International Bank. Because Mountain railways have also made a good of this fact the bank will become the chief showing. Our generally satisfactory economic support of gold monometallism and will con- situation is clearly indicated by the increased tribute to stability of the exchanges. turnover of postal checks and the larger earn- Commercial treaties.—During the course of ings of our transport companies. It may be the year Switzerland concluded a new commer- added at this point that the official cost-ofcial treaty with the Belgo-Luxemburg eco- living index fluctuated throughout the year nomic union, and a new treaty with Albania around 160 (June, 1914= 100). The fluctuaregarding commerce and the right of domicile; tions of the wholesale price index were kept also the commercial treaty signed with Ger- within a narrow range, the slight decline during many on July 14, 1926, has been put into effect. the summer months being compensated by a The commercial agreement concluded in 1928 corresponding advance in the months following.. between France and Switzerland was super- Federal budget and public debt.—In 1928, seded this year by a formal commercial treaty for the first time since 1914, the accounts of covering the principal questions as to inter- the Confederation were closed with a surplus, change of commodities and including the tariff which amounted to 23,700,000 francs ($4,574,agreements in force up to that time. 100). It is expected that, owing to the excel- Business conditions in Switzerland.—The lent economic situation, the year 1929 will show economic situation of Switzerland on the whole a no less satisfactory outcome, since customs was satisfactory. Toward the end of the year, receipts, stamp duties, and the revenues from however, the effects of foreign developments— Federal undertakings exceed those of the prethe stock-exchange crisis in the United States, vious year. It should be noted, however, overproduction in some countries, and the that the close relationship between State sharp decline of prices on the international com- finances and economic conditions presents a modity markets—began to be felt in this certain amount of danger, and that the advice country, especially by some of our export in- of the Federal Council to keep down expendidustries. The number of unemployed was ture is thoroughly sound. The efforts directed less than that of the year before. Only a few toward the amortization of the large public lines of business suffered from unemployment, debt were also fully justified and will relieve while in others there was at times a dearth future generations of a heavy burden. The of skilled labor. Except for the ribbon indus- funded debt of the Confederation reached its try and certain other branches of the textile highest point in 1924 and at that time amounted industries—embroidery in particular—which to 2,200,000,000 francs ($424,600,000). At the showed a further decline in exports, the greater end of 1928 it had been reduced to 1,987,000,000 part of our industries have been well employed, francs ($383,491,000), and during the past particularly the metallurgical, electrical, and year was still further reduced to 1,885,000,000 chemical industries, the manufacture of ma- francs ($363,805,000), as a result of systematic chinery, and watchmaking for at least the first amortizations and of the repayment of the three quarters of the year. The building in- 5K per cent American loan of $30,000,000 dustry, interrupted at first by the abnormally floated in 1919, of which 94,000,000 francs long period of intense cold, became very active ($18,142,000) remained at the end of 1928. later on. Weather conditions were favorable The bank obtained the dollars required for to agriculture and grape growing, and the this repayment at an average rate of 5.1825 harvests were abundant almost everywhere; francs per dollar—that is, at about parity— market prices, however, were generally lower although at the time the loan was floated the than had been anticipated. Nevertheless, the dollar was quoted at 5.70 francs per dollar. remedial measures taken—the embargo on the Even allowing for the discount at which the import of beef cattle, the increased tariff on loan was issued, the Confederation has realized butter, and the final solution of the grain prob- a profit of about 7,800,000 francs ($1,505,400). lem, which requires the Confederation to pur- The payment was made without floating any chase grain at a price guaranteed by law—have new loan, while as a result of the preparations already had excellent effects and have some- taken by the Confederation and by the bank what relieved the situation of agriculture. it caused no disturbance on either the money Even if the profits of the tourist industry fell or the exchange market. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

308 FEDERAL RESERVE BULLETIN MAY, 1930 Swiss railways.—By the Federal decree of short-term money market later on a great June 26, 1929, a grant of 35,000,000 francs abundance of liquid funds, which at length ($6,755,000) will be made at the beginning of influenced the capital market also, so that 1930 to the State railways in compensation for toward the end of the year several banks were the extraordinary services which they rendered able to obtain a reduction in the rate of interest the Confederation during and after the war. on their certificates. In general, the rate of This grant will further strengthen their finan- interest on old mortgages remained unchanged, cial situation which made satisfactory progress whereas for new mortgages a somewhat higher during 1929 in spite of the fact that on August rate had to be paid. 1 they reduced freight charges—a measure In this connection it should be stated that which proved helpful to business. It should be during the past year further progress was made remembered, however, that the very growth in toward the creation of the Federal mortgage transportation which produced an increase in bond (lettre de gage). The outline, drawn up revenues necessitates larger operating expendi- by the Federal Council, of a Federal law govtures (laying double tracks, improvement of erning the issue of mortgage bonds was thorrailway stations, purchase of rolling stock, oughly debated and accepted by the National increase of personnel). Hence it is necessary to Council which, in all essential points, agreed continue to administer this enterprise with with the conclusions adopted the year before by a strict regard for economy. In this connec- the Council of the States. The National Bank tion it should be noted that the index of rail- now takes great satsifaction in being able to way operating costs has been reduced to the report that the two chambers have adopted the pre-war level. proposals which the bank submitted in a report The finances of the cantons and communes in January, 1929, at the request of the mortalso benefited from the economic situation. gage bond committee of the National Council. All the cantons except two closed their 1928 The chambers decided that two central mortaccounts with a surplus. gage bond bureaus should be established, one The capital market.—The volume of Swiss for banks in the cantons, and one for the other loans floated in our capital market amounted banks. At the same time the National Council to 248,000,000 francs ($47,864,000), as against approved the plan for revision of the bank law 55,000,000 francs ($10,615,000) in 1928. In to permit the National Bank to receive subround figures, 100,000,000 francs ($19,300,000) scriptions to the bonds of the central mortgage w^ere for account of banks, and 100,000,000 bond bureaus. francs ($19,300,000) for account of other Domestic stock issues amounted to 508,financial institutions and electric companies. 000,000 francs ($98,044,000), as against 282,- On the other hand, neither the Confederation 000,000 francs ($54,426,000) in 1928. These nor the State railways had recourse to the mar- figures, however, include issues in the amount ket, while the cantons and communes had to of 191,000,000 ($36,863,000) francs—as comcover requirements slightly in excess of those of pared with 10,000,000 francs ($1,930,000) in the preceding year. 1928—which were not offered for subscription The cantons were able to float their loans except as they were admitted to listing on the successfully at an interest rate of 4% per cent Swiss stock exchange, and hence do not repreand an issue price slightly below par. The sent a fresh demand for capital to their full average yield of five of the principal obligations amount. Two of the great Swiss banks have of the Confederation varied between 4.50 and increased their share capital so that the aggre- 4.70 per cent. The continued demand for gate capital of the eight great banks, including these securities by foreign as well as Swiss also their declared reserves, has increased to investors brought about a slight decline in the more than 1,100,000,000 francs ($212,300,000), yield, especially toward the end of the year. and constitutes approximately 45 per cent of Throughout 1929 almost all the great banks the aggregate capital and reserves of all the issued their certificates at 5 per cent. On the Swiss banks. The trust companies and holding other hand, banks in the cantons obtained companies showed considerable expansion both sufficient funds until autumn on offer of 4% through the organization of newT companies, per cent and were generally able to maintain and through capital increases which, during this rate throughout the year. In the autumn the first half year, amounted to 460,000,000 increasing requirements induced some establish- francs ($88,780,000). At the end of June these ments to offer 5 per cent and occasionally h}{ per societies held about one-third of the aggregate cent. The crisis on the American stock ex- share capital of Swiss enterprises—that is, change and its consequences brought into our about 2,400,000,000 francs ($463,200,000). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

309 MAY, 1930 FEDERAL RESERVE BULLETIN The demand made on the Swiss capital mar- diminishing the purchasing power of many ket by foreign borrowings amounted to about classes they created a situation which made it- 110,000,000 francs ($21,230,000)—slightly larg- self felt even in Switzerland. Later on the er than that of the previous year, but not such stock exchange crisis led to an abundance of as to create any difficulty in meeting domestic funds and a lowering of money rates. Funds capital requirements. In the first months of the previously employed in the New York stock year these issues followed one another in some- exchange were now set free and flowed not what too rapid succession and, together with only into the market there but also into the foreign short-term loans floated in this market, short-term markets of Europe, so that a numbrought about an advance in foreign exchange ber of central banks were able to reduce their rates. It became advisable, therefore, to discount rates, some of them more than once. separate offerings of foreign loans by a specified The Swiss money market.—The Swiss money length of time, as is done in the case of Swiss market was not wholly unaffected by the interbonds. The "gentlemen's agreement" ob- national situation. During the first half year served by the great banks with the National the raising of interest rates abroad, the with- Bank since 1925 was continued during the past drawal of funds invested in Germany, the diffiyear, and the bank of issue was always advised culty of floating German loans in America—all in advance of any contemplated issue of foreign pressed heavily on our market, but it was the loans. influence of Germany which was felt most. The international money market.—The in- The withdrawal of a large part of our available ternational money market was disturbed by a funds to those foreign centers where interest number of events. For some time it was the rates were high produced a stringency in the problem of reparations which influenced the Swiss market. The directors of the bank were various markets, but the most important factor thus faced with the question whether they was the feverish speculation which prevailed on should yield to this pressure from abroad, which the New York stock exchange and at length would necessitate an advance in the official spread to the stock exchanges of other coun- bank rates and therefore a general advance in tries. It was sustained by the unbounded* interest rates; or whether they should try to optimism which the expansion of commerce maintain the existing lower rates for the beneand industry inspired, and it was further fit of domestic business. They decided that strengthened by a liberal credit policy. It is there was no justification for the unrestricted true that America gave evidence of extraordi- admission of foreign bills to discount in Switzernary prosperity, but the price of shares was land, and that foreign bills, to be eligible for completely out of line with their yield. To discount at the bank, must represent an actual finance the speculation in securities the New import of commodities into Switzerland, York stock exchange drew an immense volume Otherwise the bank of issue would have allowed of funds from abroad. The Federal reserve foreign enterprises, in many cases competing banks, recognizing the unsoundness of this with our own, to profit unduly by use of its position, tried to check speculation by various credit at a favorable discount rate. Nor did means. But their form of organization under the bank confine itself to applying the restricthe law made it impossible for them to take tion already in effect, which limited the maany effective action in the money market, and turity of these bills to 20 days. It decided that furthermore their efforts were counteracted by foreign documentary bills and acceptances as the activity of the private banks. The exces- well as finance bills, either Swiss or foreign, sive speculation was bound to result in a crash. should be accepted only in limited amounts Toward the end of October the long expected and together with Swiss paper eligible for discrisis broke and assumed proportions such as count. The bank also tried to put its credit the stock exchange had never before known. so far as possible at the disposal of Swiss im- The irresistible upward movement was sud- porters and exporters, and especially, whendenly succeeded by a wave of pessimism which ever the transactions were plainly of a comcaused a huge volume of distress selling and a mercial character, to enable them, by discollapse in prices. This sudden change affected counting directly with the bank, to take adforeign bourses more or less severely. The , vantage of its low discount rate. The bank fears that a stock exchange crisis might react continued to apply to discount operations the adversely upon commerce and industry, and conditions which it laid down in 1924. These even the entire economic life of the country, measures, which became still more effective were fully realized. The repercussions of the following the reduction of the foreign credit crisis were not confined to America; for by operations of the banks, accomplished the de- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

310 FEDERAL RESERVE BULLETIN MAY, 1930 sired result. From the middle of August, Foreign exchanges.—The Swiss franc retherefore, the bank was able to liberalize its mained firm throughout the year under review, restrictions in respect to foreign documentary although the discount rate of the National Bank bills, acceptances, and finance bills which might was low compared with that of other countries. be included in the offerings submitted for dis- It is true that at the beginning of the year count. heavy demands for foreign exchange (during Stock exchanges.—The international stock the first two months the bank was called upon exchange crisis caused some disturbance on the to deliver 160,000,000 francs) caused the franc Swiss exchanges; the index of industrial shares, to decline slightly below dollar parity; but the for example, declined from 246 to 212. The depreciation never exceeded 0.32 per cent. liquidation of loans on foreign stock exchanges, During the spring the bank was able to however, and the reduction of short-term invest- strengthen its portfolio of foreign bills, and the ments abroad brought some relaxation in our position of Swiss currency in respect to the money market. The economic situation of dollar improved steadily. This improvement other countries led to a renewed inflow of funds continued until, in the summer, a revival of into Switzerland, which created a strong de- activity abroad on the part of the Swiss banks mand for securities, especially bonds of the created a new demand for foreign bills and Swiss Confederation, and hence, an advance in brought about a slight, temporary advance in the index of securities. As, on one hand, funds the exchanges. The situation in the exchange flowed into the market and, on the other hand, market, however, suddenly became very differthe demand for short-term funds was not ent following the crisis on the American stock large, the private discount rate showed a de- market, which reacted on the principal currenclining tendency during the last weeks of the cies, so that the National Bank was shortly year. In 1929 the margin between the official able to purchase foreign bills at a lower rate. and the private rate of discount averaged 0.19 During this period, except for scattered transper cent as against 0.17 per cent in 1928. actions, no imports of gold worth mentioning Compared with those of other countries, the took place, for the reason that in Switzerland private rate of discount in Switzerland was minting of gold coins is subject to a tax and lowest of all, the average for the year being that the bank, by purchasing foreign bills, an- 3.31 per cent. ticipated imports of gold; in other words, the bank never permitted the foreign exchanges to Discount rates.—The official discount rate decline to the effective gold import point to was unchanged at 3% per cent, that for ad- Switzerland. The Swiss franc at length rose vances on collateral at 4K per cent. The efforts to a premium over all the other exchanges. of the bank to reduce those advances on collateral which had in effect become long-term Disapproval of term " Swiss gold franc/'—In loans were carried on successfully. The this connection the directors of the bank wish to amount of loans on collateral showed a moder- express their disapproval of the use of the exate decline while at the same time the number pression " Swiss gold franc." In Switzerland the of transactions increased, which indicates difference in value between the bank note and greater liquidity and activity in lombard the coin has never been anything but temporary loans. and has practically not existed at all since the The official discount rates of the principal autumn of 1925. In connection, however, with financial markets, in comparison with the Swiss recent foreign loans floated in Switzerland, rate, show the following yearly averages: mention has been made from time to time of the Swiss gold franc. The board of directors would be greatly distressed if this term should 1929 1928 become established by use. The board contends that there is no reason for its existence. Per cent Per cent In the opinion of the board there is only one Switzerland.. 3.50 3.50 France 3.50 5.52 national Swiss monetary unit, the franc, which E G n e g rm la a n n d y 5 7 . . 5 1 0 2 4 7 . . 5 0 0 0 in its metallic form is equal in value to a weight Belgium 4.35 4.25 of 0.3225806 gram of gold nine-tenths fine. Netherlands. 5.13 4.50 Austria 7.37 6.27 On the other hand, there is no place for a Swiss Italy 6.79 5.95 Spain.. 5.50 5.02 gold franc, and if this expression is used, it does Sweden. 4.74 4.01 not even mean a coin but a definite weight of New York... 5.15 4.51 gold—that is to say, a payment in kind; a Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

MAY, 1930 FEDERAL RESERVE BULLETIN 311 payment in money, on the other hand, can be basis of a preliminary report prepared by a commade only in the currency unit of the country. mittee of experts, an international conference It is therefore much to be desired that at least called together in April by the League of on the part of Switzerland such an interpreta- Nations has worked out an international tion of the gold clause should not be counte- convention for the suppression of counternanced any longer. feiting. This convention was signed on April Silver 5-franc coins.—In connection with the 20 by most of the Governments, including revision of our currency legislation—still in Switzerland. The convention prescribes penpreparation—mention should be made of the alties for making and putting into circulation fact that the commission of experts, called to- counterfeit bank notes and coin and provides gether in January by the Federal department that in prosecutions no distinction shall be of finance, was in all essential points in complete made between counterfeiting foreign or national agreement with the conference of August 16, currency. Furthermore, the agreement con- 1928, on monetary circulation. The commis- tains a number of administrative provisions sion recommends that 5-franc silver pieces con- which should assure prompt collaboration tinue to be coined as subsidiary currency and between the police authorities and the banks of that their weight be reduced from 25 to 15 issue. In signing this convention Switzerland grams; this measure will obviate the need of was unable to assume any obligation as to the bank notes in smaller denominations than 20 penal clauses of the convention, because the francs. The other fractional coins will undergo question of the introduction of a unified penal no change. The board of directors of the bank code in Switzerland is still unsettled. Neveragrees with the opinion of the commission. theless, the Federal council announced its willingness to enforce the administrative pro- Gold policy of the National Bank.—The bank has no reason to change the gold policy visions to the extent of its authority. which it has pursued for several years. It has Reserves of the bank.—During the year the profited by the favorable position of the Swiss position of the bank was still further strengthfranc to strengthen its metallic reserve by ened. The aggregate reserve of gold and forexchanging for gold part of the foreign bills eign bills averaged 781,000,000 francs ($150,brought to it. This policy seems advisable 733,000) as compared with 723,000,000 francs in view of the fact that note circulation has ($139,539,000) in 1928. The ratio of the gold increased and that silver is to be taken out of reserve against notes in circulation fluctuated the reserve after the introduction of the gold during the year between 55.04 per cent and standard. 68.05 per cent, and in 1928 between 56.72 per Note circulation.—During 1929 note circu- cent and 67.81 per cent; the yearly average lation showed a further increase; the average was 63.52 per cent, as compared with 61.89 for the year rose to 856,000,000 francs ($165,- per cent in 1928. The ratio of the reserve in 208,000)' as compared with 818,000,000 francs gold and foreign exchange reached a maximum in 1928 and 799,000,000 francs in 1927; at the of 99.81 per cent, compared with 98.72 per end of the year the circulation amounted to cent in 1928, and a minimum of 82.33 per cent 999,000,000 francs ($192,807,000), thus reaching against 80.62 per cent in 1928; the yearly averalmost 1,000,000,000 francs for the first time age was 91.30 per cent, as against 88.37 per since 1921. During 1928 the increase in note cent for the previous year. The yearly avercirculation was due entirely to the normal age of the ratio of the reserve in gold and fordevelopment of business and the general situa- eign exchange against the aggregate of notes tion of the country. During the past year, in in circulation and other demand obligations addition to these factors, it would seem that was 81.49 per cent. the international situation has exerted no small "Rescriptions."—Since the end of 1928 the influence; as long ago as in the spring, but more bank has not been called upon to discount any especially during the second half year, the bills of the Confederation (Prescriptions"), nor foreign demand for Swiss francs has tended to has it had any of them in its portfolio during increase our note issue. the year. Since the beginning of April no bills Agreements for suppression of counter- of the Federal railways have been presented for feiting.—As we mentioned before in our discount, although in the previous months report for 1927, efforts have been made to bring small amounts were found for short periods about international agreements for the purpose in the portfolio of the bank. The volume of of suppressing effectively the counterfeiting noninterest-bearing bills, offered to the bank of bank notes and coins. During the past year by the Confederation as cover for the difference these efforts have met with success. On the between the bullion value and the nominal Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

312 FEDERAL RESERVE BULLETIN MAY, 1930 value of 5-franc silver coins of other countries RECENT CURRENCY LEGISLATION IN of the former Latin Monetary Union, amounted SWITZERLAND at the end of the year to 39,097,500 francs The Swiss National Bank has pursued since ($7,545,818). It will decline in proportion to the middle of 1925 the policy of maintaining the periodical withdrawals of 5-franc pieces by Swiss exchange within the gold points, notthe Governments mentioned above; and on withstanding the absence of legal obligation January 15,1932, when the repatriation of these to redeem its notes. The obligation to recoins will be completed, such bills will no longer deem was suspended by a decree of the Federal figure in the balance sheet of the bank. Council under date of June 30, 1914. This decree has now been abrogated, effective BALANCE SHEET OF THE SWISS NATIONAL BANK AS April 1, 1930. OF DECEMBER 31, 1929 At the same time the nature of the bank's obligation has been altered by legislation which Francs Dollars i was passed by the Federal Assembly last (in thou- (in thousands) sands) December and became effective April 1. Prior to the decree of 1914 redemption was required RESOURCES to be in legal-tender coin, either gold or silver. Cash: Redemption must now be effected in gold Swiss gold coin 193,802 37,404 Foreign gold coin 139,339 26,892 coin, gold bullion, or gold exchange, at the Gold bars.. 225, 671 43, 555 Swiss 5-franc pieces __ 2,498 482 bank's option, but with provision requiring 5-franc pieces of other countries of old Latin the bank to fall in line with other banks of Union (60,150,000 francs at 35 per cent, by authority of art. 19bis of the bank law) 21,053 4,063 issue if and when these other banks undertake Subsidiary coin _ 1,623 313 Other cash items 1 to redeem their notes in gold coin. The reserve and note-cover requirements of 583,987 112, 709 the bank have also been modified so as to Gold earmarked abroad.._ _ _._ __ 36,175 6,982 Foreign exchange on gold standard countries 352,872 68,104 eliminate silver. Only gold held in Switzer- Foreign exchange other than gold exchange 9, 417 1,817 land may be counted as reserve. Swiss portfolio: Swiss bills _.._ _... 134, 240 25,908 The text of the new law is given in full below. Other discounts 15,127 2,920 149,367 28,828 FEDERAL LAW AMENDING THE FEDERAL LAW OF APRIL Advances on security: 7, 1921, RESPECTING THE SWISS NATIONAL BANK Eligible as cover for bank notes ... 75, 073 14, 489 Other 175 34 (December 20, 1929) 75, 248 14, 523 The Federal Assembly of the Swiss Confederation, with reference to the message of the Federal Council Government securities .. __ 5,439 1,050 Due from postal check service ._ _ 1,174 227 transmitted on October 8, 1929, decrees: Due from Swiss correspondents 40,175 7,754 Items for collection _ 1,158 223 I Coupons.. . . .. 1, 049 202 Interest accrued on securities _ 169 33 Articles 14, 19, 20, and 22 of the Federal law of April Unpaid capital 25, 000 4,825 Bank premises 4,000 772 7, 1921, respecting the Swiss National Bank, are re- Furniture and fixtures (2) pealed and replaced by the following provisions: Miscellaneous assets.. _ ______ _. 3,715 717 ART. 14. The National Bank is a bank of issue, of Total resources 1, 288,945 248, 766 clearing, and of discount, and is authorized to carry on the following operations only: LIABILITIES 1. To issue bank notes in accordance with the pro- Notes in circulation _ 999,185 192,843 visions of the present law. Giro accounts.. 171, 698 33,138 2. To discount Swiss bills of exchange and demand Federal accounts 28, 527 5,506 drafts bearing the names of at least two persons of un- Other deposits 7,071 1,365 Drafts and officers' checks _ 997 192 questioned solvency and independent of one another; Rediscounts ___ 2,066 399 and to discount Swiss securities eligible as collateral. N S C u a e r p t p i p t l a r u o l s f 3 its. _. 50 9 7 , , , 3 0 0 1 0 0 1 0 0 9 1 1 , , , 7 6 4 3 1 5 7 1 0 T m h o e n t m hs a . t ur B it i y ll s o o f f t h e e x s c e h a s n e g c e u r a it n ie d s d m em ay a n n d o t d r e a x f c t e s ed o f t a h g re ri e - Dividends unpaid __ 13 3 culturists, arising out of commercial transactions, are Reserve for uninsured risks.. 1,000 193 to be dealt with in the same manner as other bills of M Re i s s e c r e v ll e a n fo e r o u p s r i l n ia ti b n i g li t b ie a s nk notes 1 1 1 , , 0 0 0 7 0 8 2,1 1 3 9 8 3 exchange. 3. To buy and sell bills of exchange, demand drafts, Total liabilities 1, 288,945 218, 766 and sight balances abroad, as well as treasury bills of foreign governments. Their maturity shall not exceed i Conversion at par: 1 franc=$0,193. three months. The bills shall bear the names of at least 2 Carried at 1 franc. two persons of unquestioned solvency and independent 3 After the transfer of 500,000 francs ($96,500) from the profits of the year 1929 the surplus will be 9,500,000 francs ($1,833,500). of one another. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

MAY, 1930 FEDERAL RESERVE BULLETIN 313 4. To make advances at interest against collateral gold coin, the bank shall have the right to redeem its (avances sur nantissement). notes on demand in one or another of the following (a) For a fixed period not to exceed three forms: months. In Swiss gold coin. (b) On current account, callable in 10 days at In gold bars, of the customary commercial weight most. (about 12 kilograms) on the basis of mint parity. Shares may not be accepted as collateral. In gold exchange (bank deposit or check); that is to 5. To receive deposits without interest; also deposits say, in exchange on countries having a free gold market. in current account, at interest, of funds of the Confed- The rate of conversion of this exchange shall be caleration and of the administrative departments and es- culated on the basis of the exchange rate of the foreign tablishments under the supervision of the Confedera- currency at the time of the transaction. It shall not, tion. however, in any case exceed the export point for 6. To effect transfers and clearings, to issue drafts, shipment of Swiss gold coin to the foreign bank on which and to make collections. the draft is drawTn. The selection of the foreign cur- 7. To purchase for its own account interest-bearing rencies [in which redemption is to be effected] is resecurities—payable to bearer and readily marketable— served to the National Bank. of the Confederation, the Cantons, or foreign govern- Redemption shall be made— ments; such operations to be effected only for the In gold coin and gold bars, at the office in Berne temporary employment of resources at the disposal of without limitation as to amount; at the office in Zurich, the bank. and at the branches and agencies administered by 8. To buy and sell, for its own account and for ac- the bank, to the extent that the reserve and their own count of others, precious metals in the form of bullion needs permit, but in any event with no more delay or/coin, and to make advances on these metals. than is necessary to bring the metal from the head 9. To issue gold certificates. office. 10. To receive for safe-keeping, and to act as trustee In gold exchange at any of the above-mentioned for, securities and other articles of value; to buy and offices of the bank, without limitation as to amount.. sell securities and to make subscriptions for account of The service of note redemption shall be organized others. to meet the needs of the locality. 11. To assist in issuing loans of the Confederation, ART. 22. The Federal Council may not decree and to accept subscriptions to loans of the Confedera- that notes are legal tender nor release the bank from tion and of the Cantons, but without itself under- its obligation to redeem its notes as provided in articles writing any of these loans. 20 and 20 bis except in case of necessity in time of war. ART. 19. The equivalent of notes in circulation must be covered by— II Swiss gold coins. Gold bullion calculated at the legal monetary rate, The Federal law of September 27, 1923 (art. 19bis of making deduction for cost of minting. the law governing the National Bank), is repealed. Foreign gold coin. Swiss bills of exchange and demand drafts and Swiss Ill securities. Foreign bills of exchange and demand drafts, treasury The Federal Council will fix the date when the present bills of foreign governments, and sight balances abroad. law is to become effective.1 Credits arising out of advances in current account— The above law was passed by the Federal Council, (a) On securities in conformity with the provisions Berne, December 19, 1929. of article 14, section 4, subsection (6). fc-rr A\ (The President, MESSMER. (b) On precious metals (art. 14, sec. 8). (Signed) | ' KAESLIN. The Secretary} The metallic reserve shall amount to at least 40 per The above law was passed by the National Council, cent of notes in circulation. This minimum metallic Berne, December 20, 1929. reserve of 40 per cent shall be held entirely in Switzer- ^n (The President, E.-PAUL GRABER. land. a; \T he s^etaryt G. BOVET. ART. 20. The National Bank is obligated to redeem The Federal Council issues the following decree: its notes on demand in Swiss gold coin— The foregoing Federal law shall be published in (a) At its office in Berne, without limit as to accordance with article 89, paragraph 2, of the Federal amount; constitution, and article 3 of the law of June 17, 1874, (b) At its office in Zurich, as w^ell as at the respecting the popular referendum on Federal laws branches and agencies administered by and decrees. the bank, to the extent that the reserve Berne, December 20, 1929. and their own needs permit, but in any By order of the Swiss Federal Council. event with no more delay than is neces- The Chancellor of the Confederation, sary to have specie brought from the KAESLIN. head office. Date of publication: December 26, 1929. The service of note redemption shall be organized Referendum period ends March 26, 1930. to meet the needs of the locality. ART. 20BIS. During such time as the banks of issue of countries designated as important by the authorities The referendum period having expired March 26 without any move for a referendum, the Federal Council fixed Apr. 1, 1930, as the date on of the bank do not themselves redeem their notes in which the law should go into effect. [Ed.] Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

314 FEDERAL RESERVE BULLETIN MAY, 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 c t T r o i ( o e 4 u t s 4 n a ) - l U S n ta it t e e d s g t A i e n r n a - - A t l r u i a a s - - g B iu el m - B z r i a l - C a a da n- E la n n g d - France m G a e n r y - d In ia - Italy p J a a n - N la e e n r t d - h s - R s u ia s- Spain S l z a w e n r d i - t- o c t o t r 2 h i u 8 e e n s r - 1929—March '10,091 3,814 585 110 126 150 78 748 1,340 639 128 270 642 170 92 494 93 713 April '10,048 3,889 569 110 134 150 78 762 1,403 451 128 270 542 174 92 494 95 708 May 10,121 3,931 564 106 134 151 78 795 1,435 420 128 270 642 176 93 494 96 '708 June . 10,134 3,956 527 108 139 151 76 780 1,436 455 128 271 542 176 93 494 96. '706 July '10,150 3,974 513 111 141 151 76 694 1,462 512 128 271 541 181 103 495 98 '699 August 10,233 3,995 507 113 141 151 77 670 1,526 520 128 271 541 178 119 495 98 '703 September- M0,261 4,008 497 114 142 151 77 648 1,545 527 128 272 641 178 132 495 103 704 October 10,293 4,023 476 109 143 151 77 643 1,570 531 128 272 541 178 142 495 103 '708 November... '10,297 4,003 452 97 151 151 78 659 1,600 534 128 273 542 180 142 495 105 708 December... *10, 290 3,900 434 89 163 150 78 711 1,633 544 128 273 542 180 147 495 115 *708 1930—January PI 0,351 3,921 442 88 164 139 78 732 1,683 547 128 273 520 177 147 495 108 *710 February »10,431 3,988 448 124 164 P127 78 740 1,680 582 128 273 477 176 150 476 108 »713 March *10,496 4,061 J>445 126 164 *66 759 1,668 595 128 274 453 174 156 476 108 *713 April * 4,131 I i " i " ! v Preliminary, based on latest available figures. ' Revised. NOTE.—Table covers all countries for which satisfactory figures are available; see BULLETIN for April (p. 170), where separate figures for the 44 countries are given by years back to 1913. For the 16 countries here shown separately—all of which have held gold in recent years to the amount of $90,000,000 or more—the figures are for central banks only except as follows: United States—Treasury and Federal reserve banks; Argentina- Government conversion fund and Bank of the Nation; Brazil—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; India—currency and gold standard reserves of Government; Japan—domestic holdings of Bank of Japan and Government. GOLD MOVEMENTS [In thousands of dollars] United States Germany Great Britain Netherlands South India Africa Month p I o m r - ts p E o x rt - s ! NN - et . 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—Januarv 48, 577 l,378i 47,199 1,250 577 672 11,844 27,891-16,047 504 14 490 -16, 607 4,730 February 26,913 1,4251 25,488 1,338 764 574 12,347 21,383 -9,036 181 6 175 -17,848 7,700 March 26,470 1,635' 24,835 1,701 804 897 25, 734 7,746 17,987 133 14,320-14,187 -21, 542 13,063 April 24,687 l,594i 23,093 1,768 223, 247 -221, 480 16,144 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 550l 30, 212 7,493 681 6,812 21,085 40,001-18,917 190 17 173 -22, 625 3,596 July 35, 525 8071 34, 718 48, 728 716 48,012 22, 578 100,479-77,901 129 8 121 -14,816 4,164 August 19, 271 881| 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 4,624 1,002 3,622 28, 591 26,794 1,796 177 12 166 -15,812 3,146 November 7,123 30,289! -23,166 5,093 919 4,174 36, 249 27,844 8,405 107 15 92 -20,922 4,408 December 8,121 72,647| -64,426 11,096 806 10, 290 65,343 16,439 48,903 297 17 280 -18,220 4,603 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 ' 5,370 February 60,198 207 59,991 38. 252 687 37. 565 38,961 34,074 4,886 80 1,026 -946 -20,786 3,844 March 55, 768 290; 55,478 15,119 769 14, 350 38, 258 12, 826 25,432 3,473 MOVEMENTS TO AND FROM GREAT BRITAIN MOVEMENTS TO AND FROM BRITISH INDIA [In thousands of dollars] [In thousands of dollars] 1930 1929 1930 1929 From or to— March January-March Calendar year From or to— January January Calendar yrar Im- Ex- Im- Ex- Im- Ex- Im- Ex- Im- Ex- Im- Exports ports ports ports ports ports ports ports ports ports ports ports France 358 366 918 11,341 2,066 162, 527 England 1, 203 1,012 10,461 Germany 2,290 7 38,690 3,203 92,991 United States. . 22 Netherlands 55 280 14,382 2,006 Aden and dependen- Spain and Canaries. 1 19,466 9 4 359 cies 102 80 1,045 Switzerland 208 832 10, 781 Arabia ., 32 13 1,287 United States 23,090 61,293 British Oceania 1,800 202 7,701 South America 402 13, 027 39,129 Bahrein Islands 3 19 119 British India " "2,2!0" "16," 320 Ceylon - . 10 4,151 1 Australia ~19,"734~ ~29,"885" 2 "24," 603" China 58 5 188 New Zealand. _ 2,433 Mesopotamia 194 189 2,613 Egypt 5 6 3,786 Straits Settlements._ 113 4 2 19 28 Rhodesia 366 1 177 4,641 Egypt 382 171 6, 867 Transvaal 16,957 53,155 184, 954 Natal 1,417 2,974 .. 29, 595 West Africa 377 1,125 4,216 8 All other countries.. 206 19 All other countries.. 62 8,885 161 9, 619 1,003 33,434 Total 5,373 4 4,733 3 64, 275 48 Total 38, 258 12, 826 118,921 63, 002 303, 725 377,505 r Revised. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

MAY, 1930 FEDEKAL RESERVE BULLETIN 315 CONDITION OF CENTRAL BANKS [Figures are for the last report date of month] 1930 1929 March Fe a b ry ru- Ja a n ry u- March Bank of England (millions of pounds National Bank of Belgium (millions sterling): of belgas): Issue department- Gold - Gold coin and bullion 155. 1 151.3 150.1 153.3 Foreign bills and balances in gold. Notes issued 415. 1 411.3 410.1 413.3 |j Domestic and foreign bills Banking department- Loans to State Gold and silver coin .9 .7 .3 Note circulation Bank notes 63.8 64.5 62.1 5L5 |! Deposits Government securities __ 44.8 34.4 54.3 50.6 Other securities 13.3 12.9 14.0 17.1 Bank of Brazil (millions of milreis): Discounts and advances 6.1 4.7 5.5 13.0 Gold Public deposits 18.8 12.0 14.6 19.7 Currency Bankers' deposits 54. 9 50.7 67.5 58.2 Correspondents abroad Other deposits 35. 9 36.2 36.0 36.4 Loans and discounts Reserve ratio »(per cent) 58.1 65.9 52.9 45.4 Securities Bank notes in circulation * 352. 3 346.8 348.0 361.8 Note circulation Deposits Bank of France (millions of francs): National Bank of Bulgaria (millions Gold 42, 557 42,855 42,921 34,186 of leva): Sight balances abroad 6, 920 6,956 6,984 10,577 Gold 1, 404 Foreign bills 18, 746 18,738 18,732 18,434 Net foreign exchange _ 325 Loans and discounts 8, 943 7,987 8,517 9,160 Total foreign exchange 718 Negotiable bonds 5, 396 55,,45533 55,,453 5,930 Loans and discounts __ 1,245 Note circulation.. 70, 826 71,111166 i 7700,333399 64, 575 Government obligations. 3,339 Public deposits 6, 802 8, 767 ! 10,172 11,617 Note circulation 3, 350 Other deposits 8, 719 7,136 | 7,512 6, 603 Other sight liabilities 1,780 Central Bank of Chile (millions of German Reichsbank (millions of rei R D G G L c o e h o o e s a s p l l d d e m n o r s s v r a a i e a b e r t s s k s n r e o s d i r ) a n v : d d e f i o s r c e o ig u n n t e s xchan _ ge 2 2 , , 3 2 3 4 1 4 6 8 5 5 6 9 7 7 0 2 2 , , 2 2 3 4 1 9 8 8 6 5 4 8 4 9 0 2 2 , , 1 2 3 3 1 4 2 9 5 5 7 2 7 7 0 2 2 , , 4 4 1 5 3 7 3 8 5 6 8 0 8 3 N D L D G o e o o e 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 h c d a u o b m l d a r i e t o s i c a o o d n u . . n _ ts 3 3 1 1 5 6 4 2 1 ( 3 0 8 8 ) i ! i j : 3 3 1 1 6 8 5 2 5 5 3 3 1 8 : ! i 5 3 1 1 4 0 8 0 4 1 1 3 4 3 1 1 6 9 6 1 3 } 2 6 4 Reichsmarks in circulation 4,806 4,722 ! 4,653 4,822 Bank of the Republic of Colombia Rentenmarks in circulation 382 384 • 392 515 (thousands of pesos); Gold at home i 21,315 21,270 25, 395 Bank of Italy (millions of lire): j Gold abroad 9,477 10,897 26, 554 Gold at home 5,202 5,190 5,189 5,126 Loans and discounts _. I 17,689 17,979 16, 954 L C o re a d n i s t s a n a d n d d i b s a c l o a u n n c t e s s abroad 4 4 , , 8 3 5 7 8 9 4 4, , 6 8 1 5 4 5 ! j 4 4 , ,9 7 1 1 1 3 5 5 , , 2 3 1 3 4 4 D N e o p te o s c i i t r s c ulation _ ! : 3 6 3 . , 5 2 7 4 3 1 34 6 , , 7 2 2 4 0 6 5 9 1 , , 3 0 6 72 0 Total note circulation 16,322 16,095 i 16, 329 16, 396 Czechoslovak National Bank (mil- j Public deposits 300 300 i 300 300 lions of Czechoslovak crowns): I Other deposits 1,436 1,663 : 1,560 2,125 Gold ; I,2ti2 ;1,262 1,262 1,158 Foreign balances and currency... 1,907 ! 1. 980 2,039 1,781 ank of Japan (millions of yen): Loans and advances _ 639 292 364 527 Gold 912 3 965 ! 1,066 1.003 Assets of banking office in liqui- | Advances and discounts 755 3 755 I 732 793 dation I 352 354 355 422 Government bonds 131 3 144 ! 179 175 Note circulation 7,011 6.838 '6,923 7,333 Notes issued 1,270 3 1, 277 j 1,347 1,247 Deposits 417 395 i 407 350 Total deposits 706 3 733 i 822 789 Danish National Bank (millions of kroner): I Commonwealth Bank of Australia Gold 172 i 172 172 173 (thousands of pounds sterling): Foreign bills, etc - 101 12S 106 88 Issue department- Loans and discounts 79 78 71 Gold coin and bullion j 22, 581 Note circulation__ _ _. 352 352 347 357 Securities | 21, 740 Deposits _ 31 i 29 35 27 Banking department— I Coin, bullion, and cash J Bank of Danzig (thousands of Dan- Bank S D M L e o e d n o c a p o o n u n o n t e r s e s i y i s t a t i s a e n in t s d . c s _ d h i _ i r o s c c r u t o la u c t n a io l t l s n in Lon- 4 3 1 1 10 2 9 2 7 , , , , , 0 6 5 4 2 8 5 3 5 0 2 3 5 2 3 ! i I : zig D L N B F o g o a e o r a l u p t e a e n l o i n d s g s c c e i n i a e t n r s s n c b ) d : u w il l l d a i s t t i , h i s o e c n B t o c u a n n t k s o _ f England -. . 3 2 1 6 9 5 1 5 , , , , . 0 4 3 6 6 5 7 4 6 5 9 7 2 1 9 2 3 1 H 0 6 3 1 , , , . , 5 C 1 0 3 0 9 5 4 2 2 6 5 5 8 ] ; ! 3 1 2 1 6 0 3 3 1 , , , , , 3 4 9 8 2 3 8 8 6 8 3 1 3 9 1 3 2 1 1 8 5 2 6 3 , , , , , 1 3 0 9 7 1 2 6 6 3 6 9 9 7 9 Bank of Estonia (thousands of Austrian National Bank (millions of krones): schillings): Gold — 0,461 -0,450 : 6,437 6, 243 Gold - - Net foreign exchange 19,800 ! 18,134 19,478 22, 257 Foreign exchange of the reserve._ Loans and discounts 28, 330 , 28,202 :27,819 31, 628 Other foreign exchange Note circulation 33,1(59 i 33,332 32, 260 36, 259 Domestic bills Deposits- Government debt- - Government 13,948 9,289 8,733 14, 594 Note circulation.. Bankers.. 3,422 i 5, 112 :6,187 2,208 Deposits Other 1,849 I i,4S0 : 2,102 2, 934 1 Ratio of gold and notes in banking department to deposit liabilities. 2 Notes issued, less amounts held in banking department and in currency note account. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

316 FEDERAL RESERVE BULLETIN MAT, 1930 CONDITION OF CENTRAL BANKS—Continued [Figures are for the last report date of month] 1929 1930 1929 March March ,Fe a b ry ru- Ja a n ry u- March Bank of Finland (millions of Fin- Bank of Poland (millions of zlotys): nish marks): Gold at home 483 521 521 427 Gold - -— 302 Gold abroad 219 180 180 195 Balances abroad and foreign Foreign exchange of the reserve.. 325 360 372 530 credits • Other foreign exchange _. 116 100 101 129 Foreign bills Loans and discounts 697 739 756 790 Domestic bills - Note circulation 1.324 1,282 1,247 1,333 Note circulation __ Current account of the treasury.. 162 290 300 270 Demand liabilities Other current accounts 146 166 154 242 Bank of Greece (millions of drach- Bank of Portugal (millions of escumas): dos): Gold - 565 I Gold _. , ! Net foreign exchange in reserve. 3,472 Balances abroad _ 165 275 313 326 Total foreign exchange 4,588 ! Bills 336 359 361 280 Loans and discounts 123 : Note circulation 1,879 1,906 1,972 1,852 Government obligations 3,790 '• Deposits ... 59 77 . 108 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 2 5 , , 1 4 2 8 2 8 I :' Na o t f i o le n i a ) l : Bank of Rumania (millions J National Bank of Hungary (mil- Gold at home 5,307 5,280 5,021 lions of pengos): Gold abroad _ _. 3,919 3,919 3,591 Gold Foreign exchange of the reserve.. 3,610 5,063 3,655 Foreign bills, etc Other foreign exchange. _. 22 39 1,133 Loans and discounts Loans and discounts _. 9, 661 9,529 8,051 Advances to treasury State debt _. 5,197 5,469 10,080. Other assets Note circulation 19, 518 19, 767 20,964 Note circulation 458 Deposits 8,487 9,097 10,151 Deposits 198 !State Bank of Russia (thousands of Miscellaneous liabilities 68 : chervontsi): Loans and discounts J5O9,965 472,486 358,006 Bank of Java (millions of florins): Deposits 311,114 268,314 206,156 Gold. Issue department— Foreign bills Gold 29,080 28, 567 17,833 Loans and discounts Other precious metals 3,298 3,414 4,359 Note circulation- ... Foreign exchange 6,813 6,687 9,165 Deposits Note circulation 153, 580150,027 110,212 Bank of Latvia (millions of lats): South African Reserve Bank (thou- Gold 23,970 ; sands of pounds sterling): Foreign exchange reserve 48,292 J Gold 7,315 7,680 7,914 8,206 N L B o i o l a l t s e n s c irculation - 5 4 9 4 8 2 , , , 9 4 5 0 4 5 9 3 2 I ! D N Fo o o r m t e e i e g c s n i t r i c c b u i b l l l a i s l t l i s on 8 6 1 , , , 4 2 6 3 1 3 6 1 3 9 6 2 , , , 3 0 2 3 3 3 3 2 7 9 3 6 , , , 1 0 0 5 8 2 6 1 7 9 7 1 , , , 4 7 4 1 1 9 2 3 8 G Ot o h v e e r r n d m ep e o n s t i ts deposits 6 9 0 0 , , 8 8 4 2 9 4 I ! Dep B G o a o s n i v t k e s e r - n rs m ent _ 4 2 , , 7 4 3 5 7 0 4 2 , , 8 5 6 7 0 3 5 1 , , 1 7 7 4 8 0 5 1 , , 6 61 1 3 3 Bank of Lithuania (millions of litas): Others _ 393 250 386 244 Gold Bank of Spain (millions of pesetas): Foreign currency Gold 2,468 3 2,467 2,567 2,560 Loans and discounts Silver 716 3 714 711 716 Note circulation. _ Balances abroad 34 3 185 86 95 Deposits 96 Loans and discounts 2,018 3 2,041 2,062 1,837 Note circulation 4,365 3 4,431 4,399 4,243 Netherlands Bank (millions of Deposits 833 1,017 florins): Gold. Bank of Sweden (millions of kronor): Foreign bills Gold 244 244 244 235 Loans and discounts Foreign bills, etc 262 234 237 189 Note circulation __ Loans and discounts 302 298 296 374 Deposits -. Note circulation 575 534 521 544 Deposits 159 166 183 174 ank of Norway (millions of kroner): Swiss National Bank (millions of Gold _ francs): Foreign balances and bills Gold 561 561 I 560 481 Domestic credits Foreign balances and bills 335 344 378 218 Note circulation Loans and discounts _ 119 120 I 135 242 Foreign deposits Note circulation 918 893 890 886 Total deposits Demand deposits 122 129 I 188 111 Reserve Bank of Peru (thousands of National Bank of the Kingdom of Yugoslavia (millions of dinfirs): Gold .._ - 49, 519 46,974 51,281 Gold 96 96 92 Gold against demand deposits. 4,201 6,752 2,445 Foreign notes and credits 291 291 276 192 Foreign exchange reserve 6,025 8,188 9,611 Loans and discounts 1,319 1,377 1, 434. 1,655 Bills 24,498 26,588 17,169 Advances to State 2,997 2,999 2,999 2,966 Note circulation 59,919 61,016 60, 751 Note circulation 5,363 5, 5fiO 5,586 5,265 Deposits 8,354 11,102 4,012 Deposits 1.397 1,409 1,372 729 • Figures are for Mar. 1, 1930. * The February balance sheet of the Reserve Bank of Peru is in terms of the new currency unit, the sol (par $0.4000), exchangeable for the old libra (par $4.8665) at the rate of 10 to 1. To preserve comparability figures for previous months have been converted from libras into soles. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

317 MAT, 1930 FEDERAL RESERVE BULLETIN CONDITION OF COMMERCIAL BANKS Millions of national Millions of dollais currency Country 1930 1929 1930 Ja a n iy u- Fe a b iy ru- March Ja a n ry u- Fe a b ry ru- March O b c e t r o- No b v e e r m-De b c e e r m- Ja a n ry u- Fe a b ry ru- March Canada: Millions of d()llars Gold coin and bullion l . 61 60 64 64 63 62 61 61 61 60 Curient loans and discounts 449 428 1,481 1,506 1,560 1,715 1,684 1,653 449 428 Money at call and short notice 1,641 1,628 595 597 560 521 532 507 1,641 1,628 Public and railway securities 431 423 530 530 524 487 475 448 431 423 Note circulation . 156 159 158 162 189 185 187 175 156 159 Individual deposits 2, 485 2, 455 2,595 2,560 2,560 2,679 2,636 2,605 2,485 2,455 Gold reserve aeainst Dominion notes _. 63 i 63 59 59 58 60 60 60 63 63 Dominion note circulation 173 167 173 167 Argentina: Millions of pesos Bank of the Nation- Gold 7 ' 7 120 120 120 40 29 29 1 1 Other cash 124 115 143 138 120 122 113 79 112 99 Loans and discounts 584 t!5 493 506 512 558 564 576 £34 532 Deposits 731 7£0 751 753 745 704 694 681 668 649 Other banks in Buenos Aires- Gold 11 11 11 11 12 12 12 11 11 11 Other cash . _ 170 181 195 190 184 146 145 146 155 156 Loans and discounts 908 911 821 832 839 844 835 831 829 789 Deposits 1,003 983 982 976 991 952 929 925 916 850 Millions of pounds England: sterling Cash in vault and at banks 192 182 181 964 918 898 920 907 979 935 883 882 Monev at call and short notice 142 120 133 716 649 650 733 707 700 692 621 645 \dvanccs and discounts 1,213 1,192 1,157 5,989 5,975 5,815 5, 829 5,842 5,829 5,703 5,799 5, 631 Investments 233 229 225 1,215 1,197 1,187 1,171 1,142 1,147 1,134 1,113 1,096 Deposits 1, 767 1,714 ! 1,682 8,805 8,648 8,463 8,587 8,522 8,628 8,C00 8,341 8,185 France: Millions of francs Bills and national-defense bonds 838 826 816 804 819 826 834 Loans and advances 376 421 398 424 421 421 420 Demand deposits 1, 356 1,370 1,323 1,306 1,291 1,285 1,298 Time deposits 37 42 37 41 41 42 39 Germany: Millions of reicrsmarks Bills and treasury notes i 3 US 3,234 679 687 750 770 Due from other banks 1,160 1,182 342 293 276 282 Miscellaneous loans 8, 561 8,619 1,931 1 969 2,039 2,052 Deposits 12 035 12. 259 2,777 2,774 2,867 2,920 Acceptances - . 525 i 510 118 116 125 122 Italy: MiUions of lire Cash 61 60 Bills discounted i 470 434 Due from correspondents 268 299 Due to correspondents _ _ . 711 721 Deposits .. ieo 1C4 Denmark: Mill ons of kroner Loans and discounts 1,787 1,810 457 462 462 477 476 479 479 485 Due from foreign banks 128 115 i 43 45 45 39 37 38 34 31 Due to foreign banks 74 84 23 25 24 16 16 19 20 23 Deposits and current accounts . _ 1,941 1,971 | 512 520 520 529 526 526 520 528 Norway: Mill ons of kroncr Loans and discounts 1,239 1 233 \ 348 348 347 336 336 335 332 330 Due from foreign banks _ _ _ 123 117 ! 33 34 31 38 34 32 33 31 Due to foreign banks 76 75 i 22 22 23 23 23 21 20 20 Rediscounts _ . 92 92 27 27 27 27 26 24 25 25 Deposits 1,524 1,521 I 425 426 420 414 412 412 408 408 Sweden: Mill ons of k onor Loans and discounts . 4, 275 4,324 1 1,104 1,109 1,107 1,141 1,141 1,117 1,146 1,158 Foreign bills and credits abroad 297 265 i 74 71 71 1 94 80 79 80 71 Due to foreign banks 125 120 34 33 40 39 31 30 33 32 Rediscounts 156 154 44 45 62 47 45 67 42 41 Deposits 3, TOO 3,621 ! 946 945 949 954 944 933 965 970 Japan: Millions of yen Cash on hand 276 238 230 118 156 116 ! 157 168 156 138 119 114 Total loans 2,148 2,157 2,1C7 946 936 934 974 1,003 1,058 1,071 1,075 1,080 Total deposits 2,072 2,063 2,050 957 953 953 990 1,021 1,023 1,033 1,028 1,022 * Not including gold held abroad. NOTE.—Banks included are as follows: Canada—Chartered banks; England—nine London clearing banks; France—three commercial banks; Germany—six Berlin banks; Italy—four 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

318 FEDERAL RESERVE BULLETIN MAY, 1930 DISCOUNT RATES OF CENTRAL BANKS [Rate prevailing May 3, 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 Austria i 6 Mar. 22,1930 England.. 3 May 1,1930 Japan 5.48 Oct. 10,1927 Portugal 8 July 27,1926 Belgium 3 May 1,1930 Estonia... 8 Oct. 3,1929 Java 4H Mar. 10,1930 Rumania 9 Nov. 26,1929 Bulgaria : 10 July 2,1929 Finland... Apr. 28,1930 Latvia 6-7 Apr. 1,1928 Russia 8 Mar. 22,1927 Chile I 6 Oct. 22.1928 France 2X May 2,1930 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 Norway Mar. 21,1930 Sweden Apr. 3,1930 Danzig., 5 May 2,1930 Hungary.. 6 Mar. 29,1930 Peru. ? Nov. 23,1929 Switzerland. 3 Apr. 3,1930 Denmark 4 May 3,1930 India 6 Apr. 3,1930 Poland Mar. 14,1930 Yugoslavia.. 6 June 23,1922 Ecuador 9 Jan. 10,1930 Italy 6 Apr. 24,1930 Changes.—Belgium—May 1, from 3J-3 to 3 per cent; Danzig— May 2, from 5H to 5 per cent; Denmark—May 3, from m to 4 per cent; England— May 1, from 3lA to 3 per cent; Finland—Apr. 28, from 7 to 6lX2 per cent; France—May 2, from 3 to 2% per cent; India—Apr. 3, from 7 to 6 per cent; Italy—Apr. 24, from 6>£ to 6 per cent; Sweden—Apr. 3, from 4 to 3J>£ per cent; Switzerland—Apr. 3, from 3H to 3 per cent. MONEY RATES IN FOREIGN COUNTRIES England (London) Germany (Berlin) Netherla d n a d m s ) (Amster- Sw la i n tz d er- Month T m b re i o l a l n s s t , u h 3 r s y Da m y o -t n o e - y d ay o a n B l d l a o e n w p k a o e n s r c i s t e ' s d P is r r c i a v o t a e u t n e t M 1 o m ne o y n f th or Da m y o t n o e - y day d P is r r c i a v o t a e u t n e t 1929—January.... 4.29 3.41 5.80 7.51 5.13 4.20 I 4.4b 3.28 February... 4.96 4.33 5.80 7.07 6.33 4.39 4.78 3.31 March 5.30 4.51 6.31 7.30 6.97 4.64 ! 5.05 3.39 April 5.18 4.43 6.63 7.57 6.85 5.36 5.81 3.45 May 5.21 4.67 7.49 9.65 9.32 5.37 5.88 3.34 June 5.35 4.23 7.50 9.89 7.90 5.30 5.30 3.26 July 5.39 4.54 7.39 9.35 8.21 5.20 4.90 3.19 August 5.48 4.35 7.18 9.43 7.42 5.06 4.68 3.33 September. 5.63 4.39 7.18 9.48 7.86 5.36 5.32 3.38 October 6.19 5.45 7.28 9.06 8.06 5.15 4.52 3.38 November- 5.30 5.15 6.89 8.29 7.79 4.26 4.17 3.32 December.. 4.75 4.23 6.98 8.78 8.14 3.52 3.87 3.15 1930—January 4.04 3.62 6.33 7.71 6.03 2.99 2.85 2.97 February... 3.72 3.76 5.53 6.72 6.01 2.80 ! 2.94 2.71 March 2.55 3.20 5.12 0.35 5.57 P 2. 50 ! »2.61 2.60 I I ( B B e ru lg s i s u e m ls) i ( F P r a a r n i c s) e i (M Ita il l a y n) Austria (Vienna) Hungary S ( h S w o t e o lm d c e k ) n - Japan (Tokyo) Month d P is r r c i a v o t a e u t n e t d P is r r c i a v o t a e u t n e t d P is r r c i a v o te a u t n e t d P is r r c i a v o t a e u t n e t M m fo o o r n n e t 1 h y c c i o P a m l r p i m m a e p e r e - r! j D ™ ay- ™ to ? -day L m oa o tO n n s t 6 h u s p !Disc bh o llU u ls nted ov m e C r o n a n i l e g l y ht2 1929—January 3.97 3.50 5.83 7*4-8% 6J4-8J4 4H-6H; 5.84-6.21 2.37 February | 3.97 3.39 6.00 7J4-8H 6*4-8*4 5.66-5.84 2.92 March.. _! 3.97 3.37 6.31 7H-8M 6H8H 5.66-5.84 3.10 April ! 3.97 3.44 6.75 7^-894 7 -9 5.48-5.66 3.65 May.. 3.96 3.49 6.83 8 -9 7 -9 5.48-5.66 3.29 June 3.97 3.50 6.75 8H-9 7 -9 5.48-5.66 3.29 July. ! 4.04 3.50 6.76 8H-6 7 -8*4 5.48-5.66 3.10 August.. ! 4.93 3.50 6.85 8)4-9 7 88 4 5.48 3.10 S O e c p to te b m er b er j | 4 4 . . 9 9 4 4 3 3 . . 5 5 0 0 7 7 . . 1 0 8 1 S 9 H - -9 1 H 0 8 9 ?4 -1 1 0 0 J H 4 7 6 3 ?4 4 - - 8 8 5^-7 5 5 . . 4 4 8 8 2 3 . . 9 4 2 7 November j 4.57 3.50 7.00 834-10 SH -9% 6H-7*4 5.48 3.47 December ! 4.40 3.50 7.00 m 9% 7 -m 5.48 3.10 1930—January i 3.40 3.38 7.00 5.48 2.74 February : 3.41 2.91 6.95 7 -8 4^-6 5.48 3.83 March j 3.31 2.70 6.57 p Preliminary. 1 The Brussels rate, formerly derived from the Bulletin Mensuel, Banque National Suisse, is now obtained from the-Bulletin d'Information et de Documentation, Banque Nationale de Belgique. The rate quoted is that for the private discount of "commercial," as distinct from* 'financial," paper. 2 The rate previously quoted for call money in Tokio represented the range of the high and low for the month. The rate now quoted represents the average for the month of the rates prevailing daily. 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

MAY, 1930 FEDERAL RESERVE BULLETIN 319 FOREIGN EXCHANGE RATES [Monthly averages of daily quotations.* In cents per unit of foreign currency] 1930 1930 Par Par Country Monetary unit j ofex- Country Monetary unit of exi changeFebruary March j April change February March April SOUTH AMERICA Austria Schilling J 14.07 14.0605 14.0705 14.0801 Argentina Peso 96.48 86.5311 85.6357 88.6349 Belgium j Belga -I 13.90 13.9271 13.9373 13.9565 Bolivia 2 Boliviano. 36.50 36.0000 36.0385 36.5000 Bulgaria ! Lev _ .7212 .7216 .7221 Brazil Milreis 11.96 11.1533 11.5012 11.7206 Czechoslovakia..J Crown "j 2*. 96 2.9590 2. 9622 2.9621 Chile 12.17 12.0319 12.0518 12.0549 Denmark ! Krone _• 26.80 4U. 1 *JOA 26.7745 C Ec o u lo a m do b r i a 2 2 Sucr d e o 9 2 7 0. . 0 3 0 3 9 2 6 0 . . 0 3 0 9 0 0 0 0 9 2 6 0 . . 3 0 9 0 0 0 0 0 2 9 0 6 . . 0 3 0 9 0 0 0 0 England ! Pound _ 486. 65 486.1785 486. 3085 486.3104 Peru 2 Libra 486. 65 400. 0000 400. 0000 400.0000 Finland i Markka 2.52 2. 5162 2. 5166 2.5171 Uruguay Peso 103.42 88.9679 89.0137 92.9001 France Franc. 3.92 3.9155 3.9132 3.9185 Venezuela 2 Bolivar. _. 19.30 19.2500 19. 2408 19.1300 Germany Reichsmark 23.82 23.8711 23. 8573 23.8684 Greece- Drachma. 1.30 1.2962 1. 2960 1.2967 ASIA Hungary.- | Pengo— 17.49 17.4769 17.4738 17.4718 China 4 Mexican dollar. ;3. 58 34. 3963 33. 8100 33.6670 Italy... Lira- 5.26 5. 2346 5. 2375 5.2415 China * Shanghai tael._ 46.30 47.9616 47.1132 46.9037 Netherlands Florin 40.20 40.1028 40.1066 40.2013 China* Yuan dollar 32.84 34. 2746 33. 6009 33.3822 Norway Krone 26.80 26. 7212 26. 7589 26.7719 Hong Kong 4__ Dollar I 33.34 38. 2350 37. 2238 37.1905 Poland Zloty 11.22 11.1935 11. 2027 11.2037 India. Rupee _ 36.50 36.2071 36.1138 36.1163 Portugal- Escudo 108.05 4.4957 4.4930 4.4954 Japan Yen 49.85 49.1295 49.3298 49. 3661 Java 2 Florin 40.20 40. 0791 40.1365 40.2350 Rumania Leu | .60 . 5950 .5953 .5957 Straits Settle- Singapore dol- 56.78 56.0006 55. 8994 55.8744 Russia 2 Chervonetz 514. 60•515.0000 3515. 0000'515.0000 ments. lar. Spain Peseta 19.30 12. 6955 12. 3131 12.4828 Turkey Turkish pound.439.65 * 46. 7776 •5 47. 30357 46.6955 Sweden Krona - 26.80 26. 8262 26. 8563 26.879f) Switzerland. > Franc. 19.30 19. 2938 19.3453 19.3790 AFRICA Yugoslavia Dinar. 19.30 1. 7604 1. 7637 1. 7674 Egypt Egyptian pound 494.31 5 500.6147 6499.2997 498.9970 NORTH AMERICA Canada. Dollar.. 100.00 99. 2408 99. 7637 99. 9501 Cuba.... Peso. 100.00 100. 0313 99. 9596 99.9189 Mexico- _do_. 49.85 47.4758 47.4921 47.5414 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. 8 Chervonetz quotations nominal. * Silver currency. The figure given for parity represents gold value oi unit in April, 1930, computed by multiplying silver content of unit by New York average price of silver for April, 1930, which was $0.42740 per fine ounce. On the same basis, parity in April, 1929, for the Chinese- Mexican dollar was 43.98 cents; for the Shanghai tael, 60.64 cents; for the Yuan dollar, 43.02 cents; and for the Hong Kong dollar, 43.66 cents. fi December, 1929. « January, 1930. i February, 1930. Back figures.—See BULLETIN for January, 1930, 1929, and 1928. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

320 FEDERAL RESERVE BULLETIN MAY, 1930 PRICE MOVEMENTS IN PRINCIPAL COUNTRIES WHOLESALE PRICES ALL COMMODITIES 1929 1930 Country Jan. Feb. \ Mar. i Apr. May June i July Aug. I Sept. Oct. Nov. \ Dec. Jan. Feb. Mar. United States 97 : 97 j 97 96 98 94 94 93 92 91 Canada 94 j 96 i 94 92 i 93 ; 98 i 97 97 96 96 94 92 England 138 ! 138 j 140 I 139 136 j 136 137 136 ! 136 136 134 133 131 128 125 France 657 I 660 ! 654 i 648 643 I 629 624 598 ; 608 607 603 596 r576 '567 558 Germany 139; 139 j 140 ! 137 136 i 135 138 138 l 138 137 136 134 132 129 126 Italy 461 ' 463 : 461 i 455 452 ! ?447 440 437 i 437 436 431 425 417 408 400 Japan 228 j 226 226 ! 225 223 j 222 220 218 I 218 216 211 205 201 199 196 Australia 157 156 157 158 156 158 159 160 ; 163 ! 161 158; 154 ! 151 147 Austria 128 130 133 134 135 134 132 132 i 128 ! 127 125 i 123 I 125 123 121 Belgium 867 865 869 862 851 848 : 858 850 I 846 ! 838 834 ! 823 j 808 791 774 China 160 162 164 161 162 163 : 163 165: 167 i 168 165 ' 165 170 175 174 C D z e e n c m ho a s rk lovakia 1 1 3 5 9 1 1 1 3 5 9 9 1 15 4 4 1 1 1 4 5 1 0 1 1 3 4 7 8 1 14 3 6 4 i 1 1 3 4 5 9 1 1 3 5 4 0 ! i 1 1 3 5 2 0 j ! 1 1 4 3 9 1 1 14 3 7 0 : i 1 14 2 6 8 1 14 2 3 6 1 1 2 4 4 0 1 13 2 6 2 Dutch East Indies 149 149 150 148 150 149 : 149 148 i 148 ! 147 146 I 144 143 Egypt.. 125 122 123 120 114 108 109 112 ; 113; 115 112 i 110 109 106 Finland 100 100 100 99 98 98 97 97 , 96 i 96 95 ! 95 94 93 Hungary 132 136 136 135 123 122 i 119 114 I 109 I 111 107 ; 107 106 104 India 145 144 143 140 ! 139 138 I 142 143 i 143 i 140 137 134 131 126 125 Netherlands 146 146 147 144 i 142 141 ' 141 142 i 141 j 140 137 ' 135 131 126 New Zealand 155 ' 155 155 '155 ; 155 155 i 156 156 | 157 j 156 155 154 155 155 Norway 149 150 150 148 , 146 147 i 149 148 ; 148 i 147 146 146 144 143 142 Peru 186 185 189 185 , 186 186 ! 187 187 : 186 I 186 184 182 181 181 180 Poland 98 99 99 98 ' 95 95 i 96 95 ! 94 i 93 95 92 88 85 85 Russia 177 177 178 179 I 180 181 i 180 180 I 181 j 182 181 182 182 South Africa 135 131 ! 129 128 121 Spain 171 174 ! 171 170 i 169 170 i 171 172 171 172 172 Sweden 144 141 | 140 139 i 140 141 ' 140 138 135 •• 134 131 128 125 Switzerland 143 140 ! 139 139 ! 143 143 I 142 142 140 139 136 133 131 ' Revised. NOTE.—All of the indexes shown, with two or three exceptions, are compiled by official agencies in the countries to which they relate, as indicated specifically in the BULLETIN for March (p. 124), where references are also given to sources in which current figures of the index numbers may be found. The base periods, which were systematically indicated in the BULLETIN for April (p. 256), are as follows: United States—1926; Australia—July, 1914; Austria—January-July, 1914; Belgium—April, 1914; Canada—1926; China—February, 1913; Czechoslovakia—July, 1914; Denmark—1913; Dutch East Indies—1913; Egypt—January 1, 1913-July 31, 1914; England—1913; Finland—1926; France—1913; Germany—1913; Hungary—1913; India—July, 1914; Italy—1913; Japan— October, 1900; Netherlands—1913; New Zealand—1909-1913; Norway—December 31, 1913-June 30, 1914; Peru—1913; Po land—1927; Russia—1913; South Africa—1910; Spain—1913; Sweden—1913; Switzerland—July, 1914. Annual indexes for the years 1925-1929, and in certain cases for 1913 and 1914, were given in the BULLETIN for April. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

321 MAY, 1930 FEDERAL RESERVE BULLETIN WHOLESALE PRICES—Continued GROUPS OF COMMODITIES 1929 1930 Country and group Jan. Feb. i Mar. Apr. May Junmee JJuulyl y Auugg. .i SSeeppt.t . OOcctt. . NNoovv. .Dec. Jan. Feb. Mar. UNITED STATES (1926=100) Farm products 106 105 107 | 105 102 103 108 107 107 104 101 102 101 95 Foods 99 98 98 99 103 103 103 101 99 99 97 96 94 Hides and leather products.. 114 109 108 I 108 107 108 109 110 111 111 108 107 105 104 103 Textile products 96 96 ! 96 94 93 93 93 93 93 92 90 88 87 Fueljand lighting materials. 81 81 81 81 83 82 81 81 82 82 81 79 77 Metals and metal products.. 104 104 106 106 105 105 105 104 104 104 102 102 101 101 101 Building materials 97 98 99 98 97 96 97 97 98 98 96 96 96 96 95 Chemicals and drugs 96 96 95 94 93 93 94 94 94 94 94 93 92 91 Housefurnishing goods 97 97 97 97 97 97 97 97 97 97 97 97 97 97 Miscellaneous 79 80 80 81 81 82 81 80 80 79 79 78 NonagriculturaL. 95 94 95 95 94 95 96 94 95 94 93 92 91 91 90 ENGLAND (1913=100) I Total food 148 149 i 150 147 144 143 149 144 143 145 142 141 139 135 129 Cereals 140 142 140 137 133 132 143 146 141 137 132 132 129 122 114 Meat and fish 144 144 145 146 146 144 144 145 143 148 150 158 154 152 145 Other foods... 159 160 165 158 152 155 158 144 145 150 145 135 135 133 131 Total not food.. 133 133 135 134 132 131 131 131 132 131 129 128 127 124 122 Iron and steel 113 113 113 114 115 115 115 115 115 115 115 115 115 115 115 Coal 120 123 130 126 121 121 121 121 126 128 128 130 130 129 ; 127 Other minerals and metals.._ 111 114 123 123 118 118 117 117 116 114 111 111 110 110 107 Cotton.__ 162 159 162 159 155 154 153 154 154 152 147 144 141 134 • 131 Wool 180 177 175 174 172 167 163 161 158 154 156 152 145 135 129 Other textiles 136 136 135 134 131 131 131 132 132 130. 127 125 123 120 116 Miscellaneous 139 137 136 135 134 134 136 134 138 137 134 131 130 129 : 127 I FRANCE (1913=100) Farm and food products 610 605 607 584 578 524 551 556 555 546 '512 '503 495 Animal products. 632 642 603 610 595 614 603 590 639 670 686 695 '647 ' 634 622 Vegetable products 607 612 602 614 565 563 484 499 487 476 456 432 '424 419 All industrial products 693 692 688 675 668 664 664 656 652 645 640 630 623 612 Minerals and metals 541 551 568 558 560 560 561 562 561 567 566 568 571 570 562 Textiles 820 812 802 793 771 758 748 745 725 705 694 684 655 639 621 Hides and leather 568 530 498 499 453 450 445 442 452 455 432 433 438 439 425 Chemical products 592 590 596 596 598 586 579 593 603 608 606 603 602 '613 607 Rubber 123 141 140 132 129 126 133 129 117 114 96 97 94 90 Paper,. ___ 677 677 677 677 677 677 677 677 677 677 685 685 667 ; 6C7 Lumber 930 930 930 930 968 969 969 969 969 1,003 1,003 987 987 987 Cement and brick, etc.. 592 592 592 606 606 606 636 636 636 636 636 636 708 708 708 GERMANY (1913=100) Total agricultural products __ 132 134 134 128 126 125 132 133 133 132 128 126 122 116 110 Vegetable foods 130 132 133 130 125 120 131 130 125 122 119 120 117 112 109 Cattle.. _ 118 120 123 122 120 127 134 134 134 134 128 126 128 123 116 Animal products 147 151 142 127 130 130 136 140 149 153 153 146 134 129 I 118 Fodder 138 140 142 140 133 122 127 123 120 113 107 105 98 88 86 Provisions.. _ 124 125 128 127 125 124 128 130 131 126 120 115 115 115 118 Total industrial raw materials and semifinished products. _ 134 134 134 133 131 132 131 132 132 131 130 129 128 127 126 Coal 138 139 138 136 136 136 137 137 137 138 139 138 138 138 138 Iron. 128 128 128 128 128 130 131 131 ! 131 i 131 130 130 130 129 129 Nonferrous metals 113 118 132 127 118 I 118 118 118 i 118 ! 116 113 112 112 111 109 Textiles 153 149 150 148 144 141 139 137 I 136 133 130 128 125 118 114 H C i h d e e m s i a c n a d ls l .. e ather „ 1 1 3 2 9 7 1 1 3 2 1 6 1 1 3 2 0 7 1 12 2 6 9 1 12 2 6 0 1 1 2 2 3 7 1 12 2 6 4 1 1 2 2 2 7 I | 1 12 2 7 2 : I : 1 1 2 2 1 7 1 1 1 2 8 7 1 1 1 2 6 7 1 1 1 2 6 7 1 1 1 2 4 7 1 1 1 2 1 7 Artificial fertilizers 87 I 87 88 88 87 i 87 ' 81 82 ; 82 ! 82 83 84 85 86 86 Technical oils and fats _ _ 127 i 126 126 126 126 | 125 127 129 ! 134 ' 132 129 130 128 127 126 Rubber 28 i 34 34 29 30 | 30 31 29 j 28 26 23 22 21 22 22 Paper materials and paper. _. 151 j 151 151 150 151 151 152 152 i 151 151 152 151 151 150 150 Building material 157 i 157 157 157 157 158 159 161 • 162 162 161 161 158 158 157 Total industrial finished products. 159 158 158 158 158 158 157 158 ! 157 157 157 156 156 155 153 Producers' goods 138 138 137 138 138 138 139 140 ! 140 140 139 140 140 139 139 Consumers' goods 175 174 174 173 172 172 171 171 i 170 170 169 169 168 166 163 NOTE.—For corresponding indexes for all commodities, see preceding page. Annual indexes for the groups shown in the table are given in the April BULLETIN for the years 1925-1929 and also for 1913. 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 Ge"ne"rale de la France, Supplement Mensuel, Statistique Ge*ne"rale de la France; and Germany—Wirstschaft und Statistik, Statistisches Reichsamt. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

322 FEDERAL RESERVE BULLETIN MAY, 1930 LAW DEPARTMENT Passage of trust powers upon consolidation of a na- be lawfully agreed upon in the manner specified; and tional bank and a State trust company. that all the rights, franchises, and interests of such There is published below a copy of the State bank "so consolidated with a national banking association in and to every species of property, real, opinion of the Supreme Court of Tennessee in personal, and mixed, and choses in action thereto the case of First National Bank of Chattanooga belonging shall be deemed to be transferred to and v. Chapman Company, 22 S. W. (2d) 245, in vested in such national banking association into which which it is held that a national bank resulting it is consolidated without any deed or other transfer, and the said consolidated national banking association from the consolidation of a State trust company shall hold and enjoy the same and all rights of property, with a national bank under the charter of the franchises, and interests, including the right of succeslatter, pursuant to the provisions of the act of sion as trustee, executor, or in any other fiduciary Congress of November 7, 1918, as amended by capacity, in the same manner and to the same extent as was held and enjoyed by such State * * * the act of February 25, 1927, succeeds to the bank so consolidated with such national banking assorights of the State trust company as trustee ciation. * * * No such consolidation shall be in under a deed of trust covering real estate. The contravention of the law of the State under which such decision, which is believed to be of unusual bank is incorporated." Referring to the last sentence of the section just interest to national banks, discusses and disquoted, it may be observed that the consolidation, as tinguishes the case of Ex parte Worcester it is termed by Congress, of a State bank with a national County National Bank, 279 U. S. 347, the bank is not in contravention of the laws of Tennessee. opinion in which was published in the FEDERAL Section 23 of chapter 20 of the acts of 1913 authorizes a consolidation or merger of banks incorporated under RESERVE BULLETIN for June, 1929, at page 407. the laws of this State with other banks, upon the observance of prescribed procedure and permission of the IN THE SUPREME COURT OF TENNESSEE superintendent of banks. This section of the act of 1913 has been construed to authorize the consolidation First National Bank of Chattanooga et al. v. Harry E. or merger of banks chartered under the laws of this Chapman Co. et al., Dec. 9, 1929, 22 S. W. (2d) 245 State with national banking associations by the super- GREEN, C. J.: This proceeding was brought under intendent of banks, and we have no disposition to the declaratory judgments statute (Pub. Acts 1923, question this construction. c. 29), and the question presented is whether a national In Casey v. Galli, 94 U. S. 673, 24 L. Ed. 168, the bank with which a State bank has been consolidated Supreme Court sustained the power of Congress to succeeds, by virtue of the consolidation, to the rights authorize the transmutation of a State bank into a and title of the State bank as trustee under a trust national bank, although there was no authority in the deed conveying real estate to secure the payment of charter of the former bank or in the laws of the State certain notes, with power of sale in case of default. of its incorporation so to change its organization. The Chattanooga Savings Bank & Trust Company Doubtless, therefore, it is within the power of Congress was a Tennessee corporation engaged in the banking to authorize the consolidation of a State bank with a business with power to act as trustee and in other national bank in the absence of any State legislation fiduciary capacities. On January 29, 1929, this to the contrary. Petition of Worcester County institution consolidated with the First National Bank National Bank, 263 Mass. 444, 162 N. E. 217. As under the provisions of an act of Congress passed just seen, the laws of Tennessee appear to sanction, February 25, 1927, adding a new section, 3, as an rather than forbid, such consolidation, or remain amendment to the act of Congress November 7, 1918 silent. (12 U. S. C. A., sec. 34a). All assets of the State The consolidation of the two corporations, generally bank were turned over to the national bank, and the speaking, being valid, the question remains as to the former bank ceased the transaction of business. validity and effect of that provision of section 3 under- Previous to this consolidation, W. R. Smith and wife taking to make the consolidation, ipso facto, transconveyed to the Chattanooga Savings Bank & Trust fer to the national bank "the right of succession as Company, as trustee, described real estate in Chat- trustee, executor, or in any other fiduciary capacity." tanooga to secure the payment of a series of notes in The maker of this trust deed entered into a binding favor of Harry E. Chapman Company, aggregating contract whereby the Chattanooga Savings Bank & $3,529.13. The trustee was authorized upon default, Trust Company was made trustee under the trust after due advertisement, to offer the land for sale for deed, with a right of foreclosure and sale in case of the satisfaction of the indebtedness secured. Smith default, and the proceeds of the sale were to be applied and wife are now in default in the payment of their "first to paying the costs and expenses of this trust notes, and the First National Bank is proposing to and its execution," and the remainder of the proceeds advertise and sell the land according to the terms of to the indebtedness and any balance turned over to the the trust deed, claiming to have succeeded to the makers of the instrument. A property right was thus rights, title, and powers of the trustee named in the lawfully conferred upon the Chattanooga Savings instrument aforesaid. Bank & Trust Company. It was a valuable right. Section 3, above mentioned, provides that any Since institutions like this one have been empowered bank, including a trust company incorporated under to act as trustees and in other fiduciary capacities, a the laws of any State, may be consolidated with a large part of their business is of this nature, and much national banking association, located in the same of their income is derived from such sources. county, under the charter of any such national banking Upon a review of the authorities, this court has said association or under such terms and conditions as may that, when a valid consolidation or merger of cor- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

MAY, 1930 FEDERAL RESERVE BULLETIN 323 porations is made with " transfer of rights and prop- The merger transferred to the Guaranty Company 'all erties, and assumption of liabilities between the old and singular the rights, franchises, and interests of and new companies are effected, the new company the Morton Company ' in and to every species of propstands in the stead of the old companies, and may erty, real, personal, and mixed, and things in action enforce the rights of the old companies, and be subjected thereunto belonging/ and empowered the Guaranty to their liabilities." Miller v. Lancaster, 5 Cold. 514. Company to 'hold and enjoy the same and all rights of Approved in Memphis Water Co. v. Magens & Co., property, franchises, and interests in the same manner 15 Lea., 37. and to the same extent' as the Morton Company would The law is elsewhere declared to the same effect. if it 'should have continued to retain the title and "Generally by express provision of the statute or transact the business of the Morton Company. This agreement of consolidation, and by implication in the language means not only that every right, privilege, absence of a provision to the contrary, the consolidated interest, or asset of conceivable value or benefit then corporation succeeds to and may enforce the rights of held by the Morton Company (except the right to the consolidating corporations under contracts made be a corporation) shall pass into and be absorbed by by them before the consolidation." Clark and Mar- the Guaranty Company, but also that every right, shall on Corporations, sec. 355b. privilege, interest, or asset of conceivable value or See, also, 14a C. J. 1069 and cases referred to in peti- benefit then existing which would inure to the Morton tion of Worcester County National Bank, supra. Company under an unmerged existence should inure We are not able to take the right to administer a to the Guaranty Company. Nothing appertaining to trust of this nature out of the rule governing the con- the Morton Company was to be lost, forfeited, or tract or property rights generally of a corporation con- destroyed. solidating with another corporation. " The designation of the Morton Company as an The reason ordinarily forbidding the transfer or dele- executor created a privilege or an interest in the estate gation of the office or duties of trustee to another is of the testator appertaining to that company. The that "the performance of the trust is a matter of per- privilege or interest was not complete or vested. It sonal confidence, which it is a breach of trust in the was incomplete, potential, and ambulatory. From it, trustee to make over to a stranger; and the original undisturbed until the testator's death, issued the trustee will continue responsible for all the acts of the absolute interest of an executorship and the power to person so substituted." Colyar v. Taylor, 1 Cold. 372. participate in the control and administration of the Such consideration can not reasonably influence the testator's estate and receive the legal fees and comappointment of a corporate trustee. Personal confi- missions. That interest had no source or origin other dence can not be the basis of such a selection. The than the will and the designation. The testator's stockholders, the officers, the entire management of a death did but complete and vest that which theretofore corporation may be expected to change from time to existed. It existed, although in an incomplete, impertime. These things are sanctioned by law and consti- fect, and dependent condition, from the making of the tute, on the part of the corporation, no breach of its will and at the time the merger of the Morton Company duty as trustee. So the law sanctions the consolida- was consummated. Ignorance on the part of the tion of one corporation with another corporation or- Morton Company of its existence did not affect it. ganized for like purposes, and those appointing a cor- Through it that company would have been an executor porate trustee do so with knowledge that such a union and entitled to the letters testamentary if it had may take place carrying all the rights and properties 'continued to retain the title and transact the business of both entities into combined organization. Such of such corporation.' The merger transferred it to consolidation, authorized by law, is no more a breach the Guaranty Company, and, in effect, substituted that of trust than a change in corporate officers and directors. company for the Morton Company. The Guaranty A corporate trustee is supposed to be more desirable Company was entitled to hold and enjoy it even as than a personal trustee by reason of continuity of ex- would the Morton Company under an unmerged existence and ordinarily, larger financial responsibility. istence. By virtue of the statute, effective as a part of One designating a corporation as trustee, however, the will, the Guaranty Company was designated as must be held to do so with knowledge that the trust is an executor, and as such is entitled to receive the to be administered by those persons to whom the stock- letters testamentary." holders of that corporation commit the control of its In Chicago Title & Trust Co. v. Zinser, 264 111. 31, affairs. In addition to changes in the personnel of its 105 N. E. 718, 719, Ann. Cas. 1915D, 931, the testator management, a corporation may increase or decrease by her will nominated the Real Estate Title & Trust its capital stock, or otherwise amend its charter. One Company as executor. Prior to her death that corporadealing with a corporation deals with a creature of the tion consolidated with the Chicago Title & Trust law that may proceed as the law permits. Company under authoiity of an Illinois statute. After The views expressed find support in decisions of the the testator's death the Chicago Title & Trust Com- New York Court of Appeals and of the Illinois Supreme pany applied for and obtained letters testamentary Court. and undertook to make a deed to testator's real estate In the matter of Bergdorf, 206 N. Y. 309, 99 N. E. as the executor nominated in the will was empowered 714, 717, the testator made a will appointing the Mor- to do. The right of the consolidated corporation to ton Trust Company his executor. Prior to his death qualify as executor and to make such a deed was questhe Morton Trust Company was merged into the tioned, but was upheld. The court said: Guaranty Trust Company under authority of a New "By the consolidation of the Real Estate Title & York statute. Upon the testator's death the Guaranty Trust Company and the Chicago Title & Trust Com- Trust Company applied for letters testamentary. Re- pany the original corporations ceased to exist, and the ferring to the statute and the effect of the merger, the appellee, as the consolidated corporation, acquired and court said: succeeded to all the faculties, property, rights, and "In reading the sections we do not regard the inten- franchises of its component parts and became subject ion of the testator, but that of the legislature. Their to all the duties, obligations, and conditions imposed anguage is broadly and conspicuously comprehensive. upon them. Robertson v. City of Rockford, 21 111. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

324 FEDERAL RESERVE BULLETIN MAY, 1930 451; Chicago, Rock Island & Pacific Railroad Co. v. estate without letters testamentary (Thompson 7s- Moffitt, 75 111. 524. The material question here is Shannon's Code, sec. 3933), and since under section whether the general rule that a trustee can not delegate 4259 et seq., Thompsons-Shannon's Code, detailed his authority to another is an obstacle to the exercise provisions are made for the qualification and superof a power by the appellee to act as executor or trustee vision of a guardian, it is doubtless true that such a where one of the constituent corporations was named consolidation of a State bank with a national bank as such. That general rule rests upon the ground that will not of itself and alone justify the national bank in the selection of a trustee implies personal confidence undertaking to execute such trusts as these. The in his discretion and judgment. If a power is given to primary right to administer such trusts doubtless an executor or trustee which is not ministerial or given follows the consolidation, but the national bank must for the purpose of executing a declared trust which the properly quality as executor or guardian before undercourt can enforce but which involves the exercise of dis- taking to proceed in such capacities. cretion and judgment, the power can not be delegated Where, however, the authority to administer a trust or transferred to another, either by the trustee or a is altogether derived from the instrument appointing a court. The rule, however, can not be applied to the State bank trustee, we are of opinion that a consolidacase of a corporation, because the element of trust in tion of a State bank with a national bank under secthe judgment and discretion of an individual is entirely tion 3, without more, substitutes the national bank for wanting. A corporation is without personality, and the State bank as such trustee with the same rights, if it is selected as trustee or executor there can be no title, duties, and powers. This, for the reason as herereliance upon individual discretion or even upon the tofore set opt, that the maker of the instrument apcontinuance of the same administration. Etta Nelson, points with imputed knowledge of the law, under which in naming the Real Estate Title & Trust Company as a corporation is a metamorphic creature subject to executor and trustee, knew that its directors, officers, transformation. and stockholders might change from time to time, and There has been some discussion of the present status that the statute authorized a change of name or place of the Chattanooga Savings Bank & Trust Company— of business, enlargement, or change of the object for whether it is in existence, and if so, for what purposes. which the corporation was formed, an increase or de- Thompson's-Shannon's Code, sections 2071, 2074. We crease of capital stock or change in the number of shares need not go into this. The consolidation being valid, or par value, increase or decrease of the number of under the provisions of section 3, the right to executedirectors, and the consolidation of the corporation with this trust has clearly passed from the State bank. any other corporation then existing or that might there- The decree of the chancellor is affirmed. after be organized. She therefore contemplated that these changes might occur, and that the Real Estate Title & Trust Company might be consolidated with some other corporation, such as the Chicago Title & Authority of Congress for erection of Pittsburgh Trust Company, and that it would thereby cease to Branch Bank Building. exist and become a component part of a new corporation. A consolidation took place and a new corpora- The following is a copy of a joint resolution tion was created from the original corporations, with an of Congress approved April 14, 1930, authorizenlarged capital stock and unimpaired franchises. The ing the Federal Reserve Bank of Cleveland to appellee was entitled to execute the trust, and the chancellor did not err in overruling the demurrer." erect a building for its Pittsburgh branch, cost- In petition of Worcester County National Bank, ing not more than $875,000 exclusive of the cost supra, the Supreme Judicial Court of Massachusetts of vaults, permanent equipment, furnishings held that so much of section 3 aforesaid as undertook r and fixtures. to transfer to a national bank the right of a State bank to the office of executor was unconstitutional. The Massachusetts court construed section 3 as undertaking [PUBLIC RESOLUTION—No. 65—71ST CONGRESS to transfer the office held by the State bank to the national bank by force of the consolidation without more. [H. J. Ees. 227] The court said that no one, under the laws of Massachu- Joint resolution authorizing the erection of a Federal reserve branch: setts, was authorized to act as an executor without building in the city of Pittsburgh, Pennsylvania approval of a probate court. Upon appeal the Supreme Court of the United States, Resolved by the Senate and House of Representatives of in an opinion (279 U. S. 347, 49 S. Ct. 368, 73 L. Ed. the United States of America in Congress assembled, That 733, 61 A. L. R. 987) delivered May 13, 1929, differed the Federal Reserve Bank of Cleveland be, and it i& from the Massachusetts court in the construction given hereby, authorized to contract for and erect a building to section 3. The Supreme Court, in view of the in the city of Pittsburgh, Pennsylvania, for its Pittsprovisions of the Massachusetts laws and of the ex- burgh branch, on a site now owned by it, provided the pressed desire of Congress to avoid in section 3 anything total amount expended in the erection of said building, in contravention of the law of the State in which the exclusive of the cost of vaults, permanent equipment, State bank was located, said, in substance, that sec- furnishings, and fixtures, shall not exceed the sum of tion 3 upon consolidation only undertook to put the $875,000: Provided, however, That the character and national bank in a position to apply for letters of ad- type of building to be erected, the amount actually to* ministration ; that the consolidation alone was not suffi- be expended in the construction of said building, and cient to effect a substitution of the national bank for the amount actually to be expended for the vaults, perthe State bank as executor. The Supreme Court there- manent equipment, furnishings, and fixtures for said fore concluded that section 3 was not unconstitutional. building shall be subject to the approval of the Federal In Tennessee, since no person nominated as executor Reserve Board. may enter upon the administration of the deceased's Approved, April 14, 1930. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

MAY, 1930 FEDERAL RESERVE BULLETIN 325 Amendment to law regarding notice required of banks Federal Reserve Act, as amended (United States Code, withdrawing from Federal reserve system. title 12, section 345), be further amended to read as follows: There is published below the text of an act "The aggregate of notes, drafts, and bills upon which of Congress approved April 17, 1930, amending any person, copartnership, association, or corporation section 9 of the Federal Reserve act so as to is liable as maker, acceptor, indorser, drawer, or guarauthorize the Federal Reserve Board in its dis- antor, rediscounted for any member bank, shall at no time exceed the amount for which such person, cocretion to permit State member banks of the partnership, association, or corporation may lawfully Federal reserve system to withdraw from mem- become liable to a national banking association under bership without waiting six months after filing the terms of section 5200 of the Revised Statutes, as notice of intention to withdraw, as heretofore amended: Provided, however, That nothing in this paragraph shall be construed to change the character required by law. or class of paper now eligible for rediscount by Federal reserve banks." [PUBLIC—No. 134—71ST CONGRESS] Approved, April 12, 1930. [H. R. 8877] An act to amend section 9 of the Federal reserve act, as amended Be it enacted by the Senate and House of Representa- Amendment to law facilitating the cancellation of tives of the United States of America in Congress assem- Federal reserve bank stock of member banks bled, That the ninth paragraph of section 9 of the Fed- which have ceased banking operations. eral Reserve Act (United States Code, title 12, sec. 328), There is published below the text of an act as amended, be further amended by inserting therein, immediately before the proviso now contained therein, of Congress approved April 23, 1930, amending the following: "Provided, That the Federal Reserve sections 6 and 9 of the Federal reserve act, Board, in its discretion and subject to such conditions so as to facilitate the cancellation of Federal as it may prescribe, may waive such six months' notice reserve bank stock held by a member bank m individual cases and may permit any such State bank or trust company to withdraw from membership which has discontinued its banking operations in a Federal reserve bank prior to the expiration of six without a receiver or liquidating agent having months from the date of the written notice of its inten- been appointed. It is provided that if a nation to withdraw." tional bank which has not gone into liquida- Approved, April 17, 1930. tion and for which a receiver has not already been appointed for other cause shall discontinue Amendment to law regarding rediscount by Federal its banking operations for a period of 60 days, reserve banks of the paper of one borrower. the Comptroller of the Currency may, if he There is published below the text of an act deems it advisable, appoint a receiver for such of Congress approved April 12, 1930, amending bank and the Federal reserve bank stock held the fourth paragraph of section 13 of the Fed- by it may thereupon be cancelled. It is also eral reserve act so as to make the limitations provided that if a State member bank ceases upon the rediscount by Federal reserve banks to exercise banking functions without a reof the paper of one borrower conform more ceiver or liquidating agent having been apclosely to the limitations on loans to one bor- pointed therefor the Federal Reserve Board rower by a national bank. Under the new law, may, after hearing, forfeit the membership of a member bank may rediscount with a Federal such bank in the Federal reserve system. reserve bank the same amount of paper of a single borrower as a national bank may ac- [PUBLIC—No. 163—71ST CONGRESS] quire from a single borrower under the provisions of section 5200 of the Revised Statutes. [H. R. 6604] The new law does not in any way change the An act to amend sections 6 and 9 of the Federal Reserve Act, and for character or class of paper eligible for redis- other purposes count. Be it enacted by the Senate and House of Representatives of the United States of America in Congress assem- [PUBLIC—No. 120—71ST CONGRESS] bled, That section 6 of the Act of December 23, 1913, [H. R. 9046] known as the Federal Reserve Act (United States Code, title 12, section 288), be amended and reenacted An act to amend the fourth paragraph of section 13 of the Federal to read as follows: Reserve Act, as amended "SEC. 6. If any member bank shall be declared Be it enacted by the Senate and House of Representa- insolvent and a receiver appointed therefor, the stock tives of the L/nited States of America in Congress as- held by it in said Federal reserve bank shall be canceled, sembled, That the fourth paragraph of section 13 of the without impairment of its liability, and all cash-paid Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

326 FEDERAL RESERVE BULLETIN MAY, 1930 subscriptions on said stock, with one-half of 1 per capital stock of any member bank or of the liquidation centum per month from the period of last dividend, if or insolvency of such bank or on account of the appointearned, not to exceed the book value thereof, shall be ment of a receiver for a national bank following disfirst applied to all debts of the insolvent member bank continuance of its banking operations as provided in to the Federal reserve bank, and the balance, if any, this section, the board of directors shall cause to be shall be paid to the receiver of the insolvent bank. executed a certificate to the Comptroller of the Cur- "If any national bank wnich has not gone into rency showing such reduction of capital stock and the liquidation as provided in section 5220 of the Revised amount repaid to such bank." Statutefe (United States Code, title 12, section 181) SEC. 2. That the eighth paragraph of section 9 of the and for which a receiver has not already been appointed Federal Reserve Act as amended (United States Code, for other lawful cause, shall discontinue its banking title 12, section 327), be amended and reenacted to operations for a period of sixty days the Comptroller read as follows: of the Currency may, if he deems it advisable, appoint "If at any time it shall appear to the Federal Rea receiver for such bank. The stock held by the said serve Board that a member bank has failed to comply national bank in the Federal reserve bank of its with the provisions of this section or the regulations of district shall thereupon be canceled and said national the Federal Reserve Board made pursuant thereto, bank shall receive in payment therefor, under regu- or has ceased to exercise banking functions without a lations to be prescribed by the Federal Reserve Board, receiver or liquidating agent having been appointed a sum equal to its cash-paid subscriptions on the shares therefor, it shall be within the power of the board after canceled and one-half of 1 per centum a month from hearing to require such bank to surrender its stock in the period of the last dividend, if earned, not to exceed the Federal reserve bank and to forfeit all rights and the book value thereof, less any liability of such na- privileges of membership. The Federal Reserve Board tional bank to the Federal reserve bank. may restore membership upon due proof of compliance "Whenever the capital stock of a Federal reserve with the conditions imposed by this section." bank is reduced either on account of a reduction in Approved, April 23, 1930. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

MAY, 1930 FEDERAL RESERVE BULLETIN 327 DETAILED FEDERAL RESERVE STATISTICS, ETC. FEDERAL RESERVE BANKS—RESOURCES AND LIABILITIES IN DETAIL AND FEDERAL RESERVE NOTE STATEMENT fin thousands of dollarsj 1930 1929 Apr. 30 Mar. 31 Apr. 30 RESOURCES Gold with Federal reserve agents ],642,214 1,695,084 1,322,230 Gold redemption fund with United States Treasury 41,097 51,852 62,131 Gold held exclusively against Federal reserve notes ._ _ . 1,683,311 1,746,936 1, 384, 361 Gold settlement fund with Federal Reserve Board 634,847 601,913 663,105 Gold and gold certificates held by banks __ 754,502 666, 395 744, 024 Total gold reserves 3,072,660 3, 015, 244 2,791,490 Reserves other than gold 178,937 182,428 173,193 Total reserves 3,251.597 3,197, 672 2,964,683 Nonreserve cash 62;607 61,489 71,966 Bills discounted 1 _ _ _ 233,452 310, 228 934,468 Bills bought: Outright2 . 161,845 143, 563 129, 242 Under resale agreement 47, 719 134,973 49, 327 Total bills bought _ 209, 564 278,536 178, 569 United States securities: Bought outright 527,124 526, 739 140,121 Under resale agreement 2,385 8,490 23,250 Total United States securities _ 529, 509 535, 229 163, 371 Other reserve bank credit: Other securities 9,700 8,780 7,366 Foreign loans on gold 14,899 Due from foreign banks 711 723 725 Reserve bank float3 22,882 15,779 27,024 Total reserve bank credit outstanding 1,005,818 1,149, 275 1,326,422 Federal reserve notes of other reserve banks 20,968 20, 008 13, 333 Other uncollected items not included in float - -- - 562,769 481, 482 634, 338 Bank premises 58, 580 58, 507 58,739 All other resources ._ 11, 542 11, 543 7,302 Total resources ._ _ _ 4,973,881 4,979,976 5,076,783 LIABILITIES Federal reserve notes: Held by other Federal reserve banks 20,968 20. 008 13, 333 Outside Federal reserve banks__ 1,486,300 1, 574; 247 1, 649, 518 Total notes in circulation 1, 507, 268 1, 594, 255 1,662, 851 Deposits: Member bank—reserve account 2,384,721 2, 366, 934 2, 281, 605 Government _ _ _ _ . . 22,674 40, 326 27,953 Foreign bank 5,365 7,296 8,980 Other deposits 21,173 20, 423 26,132 Total deposits. ___ 2,433,933 2,434,979 2, 344, 670 Deferred availabilitv items 562,769 481,482 634, 338 Capital paid in 174,209 174, 227 155,912 Surplus.. . . . .. . . .. . _. 276, 936 276,936 254, 398 All other liabilities 18,766 18,097 24,614 Total liabilities 4,973,881 4,979,976 5,076, 783 Contingent liability on bills purchased for foreign correspondents _ 465,458 482,462 345,071 FEDERAL RESERVE NOTE STATEMENT Federal reserve notes: Issued to Federal reserve banks by Federal reserve agents 1,826,987 1,916,435 2,057, 244 Held by Federal reserve banks 4 319, 719 322,180 394, 393 In actual circulation. __ . _. _. 1, 507,268 1, 594, 255 1, 662, 851 Collateral held by agents as security for notes issued to banks: Gold 1,642,214 1, 695,084 1, 322,230 Eligible paper __ 430,807 576, 358 1,056,854 Total collateral _ 2,073,021 2, 271,442 2, 379, 084 1 Includes bills discounted for intermediate credit banks as follows: Latest month, $1,451,000; month ago, $1,043,000; year ago, $9,388,000; and notes secured by adjusted service certificates discounted for nomnember banks as follows: Latest month, $38,000; month ago, $38,000; year ago, $133,000. a Includes bills payable in foreign currencies as follows: Latest month, $1,054,000; month ago, $1,040,000; year ago, $1,036,000. ' Uncollected items (exclusive of Federal reserve notes of other Federal reserve banks) in excess of deferred availability items. 4 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

328 FEDERAL RESERVE BULLETIN MAY, 1930 RESOURCES AND LIABILITIES OF EACH FEDERAL RESERVE BANK ON JANUARY 31, 1930 [In thousands of dollars] Total i Boston Y N o e r w k d P el h p il h a i - a C la le n v d e- m Ri o c n h d - Atlanta Chicago L S ou t. is M ap in o n li e s - K C an it s y as Dallas F c S r is a a c n n o - RESOURCES Gold with Federal reserve agents _ 1,650,164 189,917; 238,594 120,000. 138,750 71,401 115,250 309, 564 79,045 61,157 80,000 29, 723 216,763 Gold redemption fund with U. S. Treasury 58,2581 l,808| 16,254 4,600 4,313 2,140 2,500 11,280 1, 734J 3,970 1,741 1,459 6,459 Gold held exclusively against Federal reserve ! notes 1, 708,422| 191, 725! 254,848 124,600| 143,063 73,541 117, 750320, 844 80, 779 65,127 81, 741 31,182 3.222 Gold settlement fund with Federal Reserve Board 650,124: 33, 516: 265,346 22,664J 80,219 21,559 13, 371 80,828 23,480 12,060 43,166 16,212 37, 703 Gold and gold certificates held j by banks ^ 601,1661 27,412: 350,339 40,382,! 41,792 11, 725 4,444 69,070 7,885 5,503 7,248 9,135 26,231 Total gold reserves. 2,959, 712] 252, 653 870, 533 187,646! 265,074 106,825 135, 565470, 742112,144 82,690 132,155 56, 529 287,156 Reserves other than gold. 196,862, 22,848 55,062 19, 300 13,943 9,423 16, 953 17,417 11,308 4,348 8,444 5,896 11,920 Total reserves 3,156, 574i 275, 501 925, 595 206,946. 279,017 116,248 152,518 488,159 123,452 87,038 140, 599 62, 425 299,076 Nonreserve cash 66, 647; 5,627 15, 007 3,3001 4, 963 4,972 3,665 6,865 8,280 1,351 2,745 4,714 5,158 Bills discounted: Secured by U. S. Government obligations 208,175 13,282 31,465 24, 739 37, 532 7,003 4,530 53, 665 8,317 1,649 11,668 2, 757 11, 568 Other bills discounted 186,059; 11,474 15, 360 27,752| 20,448 18,820 24,199 25,115 7,130 3,872 14, 553 8,965 8,371 Total bills discounted... 394,234; 24, 756 46, 825 52,491 57,980 25, 823 28, 729 78, 780 15,447 5,521 26, 221 11, 722 19,939 T B T i . l l S s . b G ou o g v h e t rnment securities: 294,307! 15,183 129,169! 9,099 22, 376| 10, 400 16, 538 23,008 13,065 8,202 614 10,563; 36,090 Bonds _ 69,584 3,676 i 3,792 4,151 3,483 34 25, 680 1,821 9,584-- Treasury notes 171, 410 6,323 11,3831 14,067 12,400 1,521 3,381 12,264 10, 481 5,730 263 6,000 10, 600 Certificates and bills 237,58" 16, 891 88, 380 25,039 13,715 4,898 5,373 32, 532 6,964 5,071 2,800 10,05li 1,216 113,037 Total U. S. Government securities _. 478, 581 26,890 212,800: 42,898 30,266! 9,902 8,788 70,476 19, 266 16, 781 3,063 25, 635 11,816 Other securities 12, 430 1,000 7,400 1,000 1,500 1,500 30 Total bills and securities. 1,179,552| 67,829 396,194 105,488 112,122 46,125 54,055 173, 764 47,808 30, 504 29,898 47,920 67, 845 D Fe u d e e r fr a o l m re s fo er re v i e g n n o b t a e n s k o s f othe _ r . 7211 53 237 70 72 30 26 26 16 22 22 50 Federal reserve banks _. 27,6231 226 10,197 346 1,493 2,204 1,342 3,236 2,313 1,618 1,353 5491 2,746 Other uncollected items 540,223 56,246 148, 763 49,880 49,126 41,555 17, 617 62,969 24, 567 9,523 30, 244 20,835i 28,898 Bank premises 58, 267, 3,580 15, 664 1,762 7,058 3,194 2,658 8,295 3,811 2,018 3,972 1,876! 4,379 All other resources 12, 546 84 17" 1,060 4,026 697 356 485 216 393 379 Total resources _. 5,042,153 409,146 1,515, 637367,969 454,911 215,021 235,90: 744,082 210, 613 132,553 209,049 138,734 408, 531 LIABILITIES Federal reserve notes in actual circulation 1, 710, 566 169, 351 273, 770146,855 175,072 83, 343130, 858294, 400 87, 793 62, 324 81, 552 39,394 165,854 Deposits: Member bank—reserve ac- 2,293, 386| 146, 873 935, 730 131,307 180,917 65,300 65, 653324,132 76, 664 48, 272 84,467 62,169 171,902 count 37, 570 4,072 5,924 2,348 3,588 6,670 2,315 2,667 2,611 1,109 1,374 2,412 2,480 Government. 5,732 406 2,050 532 549 230 197 735 198 126 165 165 379 Foreign bank 19, 022 8,091 106 884 122 166 577 233 182 216 8,317 Other deposits Total deposits 2, 355, 710 151,440 951, 795134,293 185,938 72, 322 68, 331328, 111 79, 706 49, 689 86, 222 64,785 183, 078 Deferred availability items.... 511, 800 54, 751 138, 529 42, 958 47, 662 39, 827 18, 514 58, 738 25, 580 9,444 27, 346 20, 511 27,940 Capital paid in 171, 524 11, 663 67, 405 16,483 15, 807 6,055 5,421 20, 222 5, 254 3,082 4,304 4,415 11,413 Surplus 276,936 21, 751 80,001 26, 965 29,141 12,496 10, 857 40, 094 10, 877 7,143 9,162 8,935 19,514 All other liabilities 15, 617 190 4,137 41 1,291 978 1,926 2,517 1,403 871 463 694 732 Total liabilities 5,042,153 409,146 1, 515, 637367,969 454,911 215,021 235, 907744,082 210,613 132,553 209,049 138, 734408, 531 Reserve ratio (per cent) _ 77.6 85.! 75.5 73.6 77.3 74.7 76.6 78.4 73.7 77.7 ;3.8 59.9 85.7 FEDERAL RESERVE NOTE STATEMENT Federal reserve notes: Issued to Federal reserve banks by Federal reserve agents... _ 2,077,092 214, 373 334,941 169, 580204,707 97,936 159, 631350,476 104,498 68,564 94,083 47,473 230,830 Held by Federal reserve banks i 366,526 45,022 61,171 22, 725 29,635 14,593 28, 773 56,076 16, 705 6,240 12,531 8,079j 64,976 In actual circulation 1,710, 566 169, 351 273, 770146, 855175,072 83,343 130, 858294,400 87,7931 62,324 81,552 39,394! 165,854 Collateral held by agents as security for notes issued to banks: Gold 1,650,164 189,917 238, 594120,000 138,750 71,401 115,250 309,564 79,045 61,1 80,000 29,723 216,763 Eligible paper... 39,860 159,906 56,963 79,853 34,936| 44,850| 101,589 28,403 13,450 26, 531 22,179j 55,869 . 1 Excludes "Federal reserve notes of other Federal reserve banks," which are consequently included in "actual circulation." Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

MAY, 1930 FEDERAL RESERVE BULLETIN 329 RESOURCES AND LIABILITIES OF EACH FEDERAL RESERVE BANK ON FEBRUARY 28, 1930 [In thousands of dollars] I Total Boston Y N o e r w k P p d h h e i i l l a - a- C l l a e n v d e- mm Ri no c nn h id - i ! I A A + U 1Q d T ll I l + d J l C ncnar h gTn i o - IT L S .noi t iu . io is I ! ! M oan i p n nol n ilo e is - K n a Ci n +i s -tt a ry s Dallas i ! ' F C S r i a s a c n o - n RESOURCES Gold with Federal reserve agents. 1,619,405i 179, 91' 238, 594 125,000 135,750 74,901) 116,170; 309,564! 67,045; 61,230 80,000 29,471! 201,763 Gold redemption fund with U. S. Treasury _ 54,297^ 1, 673; 15,675 3,234 4,247 1,677 2,438; 11,208| 2,032 1,737 1,9571 6,452 Gold held exclusively against Federal reserve notes 1,673,702;; 181, 590| 254,269 128,234 139,997 76, 578118,608 320,772: 69,077 13,197) 81,737 31,428 208,215 Gold settlement fund with Federal Reserve Board. 646,153 28,938! 211, 829; 48, 962 94, 236 17,411 13,179; 105,444: 24,341; 14,051 38,974 12, 596J 36,192 Gold and gold certificates held by banks 644, 884 24, 998 j 395, 556; 26, 337 44, 228 7,275 5,812; 83,1731 8, 748j 5,133; 8,287 9,84s! 25,492 Total gold reserves.. 2, 964, 739 235, 526; 861, 654 203,533, 278,461 101,264] 137,599 509,389 102,166: 82, 381 [ 128,998 53,869; 269,899 Reserves other than gold. 186, 287 19,120! 59, 252 16,520 12,388 8,365 14,108 17,037 10,867 3,826; 7,625 6,017 11,162 Total reserves. 3,151,026:; 254,646! 920,906! 220,053! 290,8491 109,629! 151,707 526, 426 113,033! 86,207| 136,623 59,886, 281,061 Nonreserve cash 60,874;i 5,912; 13,300! 3,266i 3,794i 4,804; 3,440 6,984 5, 920; 1, 759; 2, 047 4, 275; 5, 373 Bills discounted: Secured by U. S. Government obligations 182, 0051 13, 714 29, 545 23,899 32, 5' 4, 670 2,823 35, 454 10,368! 418; 9,401 1, 939 17, 202 Other bills discounted 170,912;; 13,019 19,100 21,918! 15,436 15,528 23,527 20, 979 8,877 1,861 11,980 10,931 7,756 Total bills discounted--! 352,9171 26,733| 48,645| 45,817j 48,008 20,198 26,350 56,433 19, 245 2, 279: 21, 381 12,870 24, 958 Bills bought.._ ; 270, 250! 13,404J 48, 680j 11,694| 32,870| 14,139; 19,975 30,993 20, 925! 11, 794| 8, 477 16, 367; 40, 932 U. S. Government securities: i , B T C r e o e r n t a d i s f s i u c r a y t e n s o a te n s d bills ._.. 1 2 6 9 1 9 0 9 , , , 6 8 5 1 1 0 0 9 5 ; 1 3 3 9 , , , 9 9 5 5 8 0 3 0 9 ! 1 1 9 f 1 0\ 3 9 2 (\ , , , , 3 A 8 9 6 H 2 9 6 9 0A ; 22 111 4 1 4 88 1 O , , ,, , 3 0 3 00 0 A 9 6 9 22 6 O 7 00 88 7 O ! ;; : ! i 11 11I 2 T77 0 2 0 , ,, , , 3 6 66 3 6 O 5 66 7 5 7 44 6 0 A 0 6 11 ) A J * 44 2 33O 2 5, , ,, , 5 33 2 2 0 O33 0 44 5 O66 5 55 / »:: i 33 44A 1 8 , ,, 1 88 8 4 1 O 4 55 4 1 4 22r 8 r !! !!t 8 2 2 2 2 11 5 6 5 6 99 , 9, , ,, 9 2 22 2 2 33 2 11 22 55 7 7 77 7 j 11 5 1 2 5 2, , ,3 ,0 8 3 09 6 0 9 6 9 ! 9 2 o JJ ; ! 4 5 66 4 , , 7 ,5 7 5 ,6 6 0 7 6 1 3 4 3 ' 1 6 : 11 1 , , 1 3 5 4 7 4 4 6 3' 9 6 5, , , 1 1 3 1 5 6 6 0 9 1 1 , 0 1 2 ,4 7 1 7 2 9 0 Total U. S. Government ! 1 ! securities 479,934I; 27,442' 216,185 43,485 30, 690 10,086 8,814 71,3719, 266| 17,028 3, 063j 20, 635| 11,861 Other securities 13,080| 1,000; 11,050 1,000. 30! Total bills and securities. 1,116,181! 68,579; 324,560 101,996 111,5681 44,423 55,139| 158,805; 59,4661 31,10l| 32,9211 49,872 77,751 Due from foreign banks 721j 53' 237 70 72; 30 26 97 i 26; 16; 22J 22 50 Federal reserve notes of other ' j ! Federal reserve bunks 24,721 235: 10, 857 289 1,594 1, 549 962 2,080; 1,161; 1,897 1,336; 496: 2,265 Other uncollected items 606,514 61,8421 162,432 51,993! 57,277 46, 256, 21,875 75,371) 26,445! 11,0361 37,657 23,706 30,624 Bank premises 58,419 3,580; i 1,762 7,058 3, 204; 2, 658 8,295: 3,811, 2,018! 3,972 1,876 4,521 All other resources 14,861' 55 =* 89l| 255 1,047 1, 303 4, 057| 746) 393) 520: 186i l,006: 402 Total resources ; 5,033,317 394,902 1,452,847 379,684J 473,259 211,198 239,864| 778,804J 210,255! 134, 554J 214,764) 141,139 402,047 LIABILITIES i I Federal reserve notes in actual i De c p ir o c s u i l t a s t : ion J ; 1,655,976; 161,114, 222,352 150,718! 182,599 79,773; 131,890 300,914j 85,453 60, 261 79,028 19,863 162,011 Member bank—reserve ac- i count ' 2,260,130 136,149 894,035 134, 798 185, 282 63,644! 64,964! 336,249 76, 204 50, 761 85,920 61,590: 170,534 Government ' 42,289 2,923^ 20,781 1,948 1,722 1, 764, 1,159! 4,549 l', 787! 1,033 1, 536| 1,222. 1, 865 Foreign bank 6,638' 470! 2,378 616 635 267i 229! 851 228j 146 190i 190 438 Other deposits 18,385 41 j 8,271 92 799 103, 102! 936 621 161 56! 7,105 Total deposits— j 2,327,442 139, 583| 925,465 137,454 188,438 65, 778! 66,454 342, 585! 78, 840 52,101 87,744) 63,058! 179,942 Deferred availability items i 583,197 60, 645! 152, 547 47, 366 55,811 45, 623: 23,187 72,256! 28,347! 11,092 34,077 23,797) 28,449 Capital paid in ' 171,841 11, 606! 67, 513 16, 625 15,811 6,063' 5,451 20, 237! 5, 278; 3,090 4,329 4,433! 11,405 Surplus 276,936 21, 751 80,001 26, 965 29,141 12,496 ^ 10, 857 40, 094 10, 877! 7,143 9,162 8, 935i 19, 514 All other liabilities 17,925 4,969 556 1,459 l,465j 2,0251 2,718 1,460; 867 4AO2A4\ ! 1,10 H5K3Q 7O72A6 Total liabilities. i 5,033,317 394,902! 1,452,847 379, 684 473,259; 211,198' 239,864! 778,804 210, 255 134, 554 214, 764; 141,1391 402, 047 Reserve ratio (per cent) 78.3 85.6! 75.9 76.9; 75.1 76.9j 10.3 71.5 78.2 85.3 59.8; 8.0 FEDERAL RESERVE NOTE STATE- MENT Federal reserve notes: Issued to Federal reserve banks by Federal reserve I ! agents 2,027,350 201, 335; 302,432 171,969 209,610; 105,793' 160,133344,881 100,119 65,923 89, 717 53,83lj 221,607 Held by Federal reserve banks 1 371,374 40, 221; 80,080 ; 1 , 43,967! 14, 666 5,662 10, 689 13,968| 59, 596 21,251| 27,01l| 26,020! 28,243 In actual circulation 1,655,976 161,114; 222,352 150, 718 182, 599 79,773! 131, 890! 300,914 85, 453 60, 261 79,028 39,863| 162,011 Collateral held by agents as security for notes issued to I banks: Gold 1,619,405! j 179,917| 238, 594 125,000 135, 750 74,901! 116,170 309, 564 67,045 61, 230 80,000 29,471, 201,763 Eligible paper 594,683! j 40,060| 85, 321 47,670 78,634 33,169; 45,387 87,180 39, 732 13, 672 29,440 28,810| 65,608 ii I Excludes "Federal reserve notes of other Federa Ireserve banks," which are consequently included in "actual circulation." Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

330 FEDERAL RESERVE BULLETIN MAY, 1930 RESOURCES AND LIABILITIES OF EACH FEDERAL RESERVE BANK ON MARCH 31, 1930 [In thousands of dollars] San Total Boston Y N o ew rk i I d P e h l i p l h a- ia C l l a e n v d e- m Ri o c n h d - AtlantaChicago L S ou t. is M ap i o n l n is e- K C an it s y a s | j Dallas F c r is a c n o - | RESOURCES Go a l g d e nt w s. i _ th _ Federal reserve 1,695,084,; 184,917 258, 5941135, 000 175, 550 73,000 133,270 309,000 76, 345 55,845 80,000, 33,800 179,763 Gold redemption fund with U. S. Treasury 51,852'- 1,477 15,402 3,113 4,048 1,704 1,677! 10,949 1,982 1,951 1,7121 1,447 6,390 Gold held exclusively I against Federal reserve notes 1,746,936 i 186, 394 273,996; 138,1131179, 598 74,704 134,947 319,949 78,327 57,796 81,712; 35,247 186,153 Gold settlement fund with il Federal Reserve Board 601,913 | 16,835 172, 630 45, 594 78,027 25, 717 9,672 109,826 28, 741 16, 706 45, 282^ 15, 681 37, 202 Gold and gold certificates held by banks _. 666,3951 j 29,584 401,114| 31,392 47,103 7,544 5,692 89,609 4, 6111 10,063; 8, 705 24,090 Total gold reserves. ! 3, 015, 2441; 232,813 847, 7401215,099 304, 728 107,965 150,311 519,384 113,956 79,113| 137,057! 59, 633 247,445 Reserves other than gold. • 182,428'; 17,605 52,140 16474 12, 316 7,598 15, 346 17,862[ 11,9881 4,817 9,153; 6, 593 10,536 Total reserves 3,197, 672'' 250,418 231573317, 044 115, 563 165, 657 537, 246 125,944! 83,930 146,210 66, 226 257,981 Nonreserve cash 61,489 j, 9,437 12, 371 3589 3,907 4,137 3,388 7,144 4,563i 1,429 2,019; 4,435 5,070 Bills discounted: j Secured by U. S. Govern- ; ment obligations ; 172,272, 9,804 70, 15570 18, 713 2,884 643 24, 843 6,467! 435 3,157! 704 18, 584 Other bills discounted j 137,956!; 9,805 20, 322 17733 12,968 12,052 14,880 13,118 8, 292! 2,030 9,367; 5, 697 11,692 Total bills discounted i 310, 228 19,609 90, 790; 33,303- 31,68l| 14, 936 15, 523 37,961 14, 7591 2,465 12, 524 6,401 30, 276 Bills bought 278, 536 16, 064 123,047, 8,347; 17,187' 9,687 14,614 20, 666 8,991 11,973 9, 567 8,379 30, 014 U. S. Government securities: j Bonds 42, 575; 1,190 3,889! 978: 481 1,299 120 20, 564 645 4,683 81 8,279: 366 Treasury notes i 195, 043 12, 646 77, 588 17,318: 17,913 3, 660 4,508 16, 285 11, 5111 6,502 1,886 6, 977, 18, 249 Certificates and bills ! 297,611 26,487 134, 367 27,828j 16, 601 4,163 33, 745 7,112 7, 209 3,957 10,381 18,080 Total U. S. Government i securities _J 535, 229; 40, 323 215, 844 46,124 34,995 12, 640 8,791 70, 594 19,268! 18,394, 5,924 25,637! 36,695 Other securities 8, 7801 1,000 6, 750 1,000 30 I - Total bills and securities.! 1,132, 773 76,996 436,431 18,774 83,863 37,263: 38,928 129,221 43,0481 32,832 28,015 40,417 96,985 Due from foreign banks t 723 53 238 70 72 30! 26 97 26 17 22 22 50 Federal reserve notes of other! Federal reserve banks 20,008 281 5,680; 297 960 1,619 992; 2,853 1,423: 1,599^ 1,597 541 i 2,166 Other uncollected items 497,261 55,036 132, 562 41,744 48,847 38,727| 16,090:, 61,617 20,718' 10,793- 28,891; 18,737; 23,499 Bank premises ; 58,507 3,580 15,664: 1,762 7,058 3, 204 2,658! 8,295 3,811i 2,018 3,972: 1,8761 4,609 All other resources \ 11,543 55 2, 526 i 145 1,112 6711 3,830 797 292 523, 2631 879: 450 Total resources 4,979,976 395,856 1,505,352! 367,954 462,863| 201,214 231,569; 747,270 199,825 133,141' 210,9 133,133! 390,810 LIABILITIES Federal reserve notes in actual circulation 1, 594,255 163,400 201,174 147,472 181, 598 74, 029 129, 772 285, 644 80, 543 60, 770 77,820 35, 250 156, 783 Deposits: Member bank—reserve account 2, 366,934 142,966 1,002, 241 133, 837 181,994 62, 312 63, 556 334, 828 77,783 49, 841 87,017 62,495 168,064 Government 40, 326 1,102 IV 3,162 2,922 6,095 2,123 3,156 1,197 3,905 1,394 2,052 Foreign bank 7, 296 491 2,842 644 664 279 239 239 ' 153 199 199 458 Other deposits 20,423 86 9,262 214 1,7 104 145 527 339 178 49 7,608 Total deposits 2,434, 979 144, 645 1,025, 954137, 857 187, 288 68, 790 66, 063 339,400 79, 558 51, 781 91, 324 64,137 178,182 Deferred availability items 481, 482 54,159 122, 925 38, 350 47,414 38, 904 17, 373 59,188 22, 062 9,379 27, 934 19, 623 24,171 Capital paid in 174, 227 11, 669 69, 719 16, 625 15, 947 6,002 5,454 20, 256 5,300 3,076 4,334 4,425 11, 420 Surplus 276,""" 21,751 80,001 26,965 29,141 12,496 10,857 40,094 10,877 7,143 9,16f 8,935 19, 514 All other liabilities 18,097 232 5,579 685 1,475 2,050 2,688 1,485 415 763 740 Total liabilities.. 4, 979, 976 395,856 1, 505, 352 367, 954 462, 863 201, 214 231, 569 747, 270 199, 825 133,141 210, 989 133,133 390,810 Reserve ratio (per cent) 79.4 81.3 73.3 81.2 85.9 80.9 84.6 86.0 78.7 74.6 86.4 66.6 77.0 FEDERAL RESERVE NOTE STATEMENT Federal reserve notes: Issued to Federal reserve banks by Federal reserve agents... 1,916,435 204, 220 252, 503 166,494 210, 569 92, 420 162, 052 323,480 94,937 65,436 88,490 45, 239 210, 595 Held by Federal reserve banks *_. 322,180 40,820 51, 329 19, 022 28, 971 18, 391 32, 280 37, 836 14, 394 4, 666 10, 670 53,812 In actual circulation 1, 594, 255 163, 400 201,174 147,472 181, 598 74, 029 129, 772 285, 644 80, 543 60, 770 77, 820 35, 250 156, 783 Collateral held by agents as security for notes issued to banks: Gold 1, 695, 084 184, 917 258, 594 135, 000 175, 550 73, 000 133, 270 309, 000 76, 345 55, 845 80, 000 33, 800 179, 763 Eligible paper 576, 358 | 35, 594 211, 332 38, 092 48, 224 24, 215 28, 85; 58, 394 22, 674 13, 861 21,514 13,977 59, 628 I 1 Excludes "Federal reserve notes of other Federal reserve banks," which are consequently included in "actual circulation." Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

331 MAY, 1930 FEDERAL RESERVE BULLETIN FEDERAL RESERVE BANKS—MATURITY DISTRIBUTION OF BILLS AND SHORT-TERM SECURITIES [In thousands of dollars] Total W 15 i d th a i y n s 16 d a to y s 30 31 d a to y s 60 61 d a to y s 90 9 6 1 m da o y n s t h to s m O o v n er t h 6 s Bills discounted: Feb. 5 381, 422 275, 883 28,299 42,472 25, 415 8,071 1,282 Feb 12 381,914 281, 658 27,426 39,968 24,070 7,214 1,578 Feb. 19 376,943 284, 604 24,845 36, 363 22,191 6,811 2,129 Feb. 26 342, 781 253,437 23, 760 36,142 20, 012 6,800 2,630 Mar. 5 308, 616 222, 086 24, 488 34,230 18,927 6,116 2,769 Mar 12 266, 338 179, 416 23, 522 33, 082 20, 536 6, 659 3,123 Mar 19 205, 634 128, 042 19, 040 30, 205 17,080 7,350 3,917 Mar. 26 206,829 132,180 17,966 27, 694 16,462 8,019 4,508 Apr. 2 241,123 164,494 19, 682 27, 502 17, 646 8,323 3,476 Apr. 9 226,164 151, 547 18, 725 27,125 16, 534 8,703 3,530 Apr 16 213, 804 141, 044 17,888 24,958 16, 693 10, 435 2,786 Apr. 23 211,491 133,350 18, 305 27,417 17, 351 12, 012 3,056 Apr. 30 233,452 149,986 17, 292 29,723 18,878 14, 362 3 211 Bills bought in open market: Feb 5 295, 791 146, 963 69, 096 60, 674 18, 651 407 Feb. 12 276, 084 146,001 68, 485 49, 840 11, 551 207 Feb 19 281, 057 150,444 62,413 59,899 8,123 178 Feb. 26 299, 306 158,895 70, 628 50,007 19, 583 193 Mar. 5 271, 202 125, 896 63, 532 52, 697 28, 375 702 Mar 12 256, 538 135, 843 49, 042 45, 257 25, 618 778 Mar. 19 185, 017 79, 605 36,401 45, 272 22, 669 1,070 Mar. 26 . 256, 482 172, 731 28, 467 40, 634 13,977 673 Apr 2 301, 297 205,190 41,454 40, 996 13, 277 380 Apr. 9 267, 002 171, 421 39,178 47,492 8,690 221 Apr. 16 . . . 302, 414 190, 529 47, 760 48, 709 12, 370 3,046 Apr 23 256,869 147, 584 54, 041 35, 084 16,158 4,002 Apr. 30 209, 564 110, 370 44, 260 39,864 11,913 3,157 Certificates and bills: Feb 5 236, 939 130 76, 531 95, 346 64 932 Feb. 12 222, 786 630 61, 516 75, 215 85,425 Feb 19 210, 313 45,102 16,000 64,186 85 025 Feb 26 182, 558 150 18, 037 16, 000 63, 391 84,980 Mar 5 206,820 38, 032 16,020 55, 476 97,292 Mar. 12 233, 270 51, 728 26, 000 55,484 100,058 Mar. 19 . _ . _ _ 293, 424 29, 000 38,000 72, 530 112,038 41,856 Mar. 26 294,876 2,160 38,000 56,115 116, 238 82 363 Apr. 2 281, 765 100 27, 400 58, 072 114,753 81,440 Apr. 9 284, 666 32, 400 57, 037 113,864 81,365 Apr 16 289 332 1,640 26 001 62 385 112 838 82 468 Apr. 23 284, 679 26,666 45,198 36, 500 94,646 82,335 Apr. 30 - _ _ . 287, 882 1,580 26, 000 50, 802 i 39, 500 91,151 78,849 Municipal warrants: Feb 5 30 30 ! Feb. 12 30 30 ' Feb 19 30 30 Feb. 26 30 30 Mar 5 30 30 Mar 12 30 30 Mar 19 30 30 Mar 26 30 30 Apr. 2 . .. 30 30 Apr 9 30 ' 30 Apr. 16 . . . . 15 ' 15 Apr. 23 _ 15 ! 15 MEMBERSHIP IN PAR COLLECTION SYSTEM [Number of banks at end of month] Nonmember banks Member banks On par list Not on par list1 Federal reserve district 1930 1930 1930 I I January February] March January February! March | January March 1_ United States. 8,486 8,447 | 8,407 11,943 11,864 ! 11,776 I 3,728 Boston 403 403 403 270 271 New York 928 927 929 405 404 Philadelphia. _. 761 761 758 474 471 Cleveland 795 794 794 990 988 Richmond 512 509 508 571 568 516 Atlanta 425 421 419 250 249 903 Chicago 1,173 1,167 1,153 3,458 3,435 229 St. Louis 569 565 560 1,645 1,632 | 485 Minneapolis... 682 678 670 566 558 ; 1, 076 Kansas City... 892 893 892 2,080 2,062 : 197 Dallas 740 726 722 602 596 < 214 San Francisco.. 606 603 599 632 60 1 Incorporated banks other than mutual savings banks. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

332 FEDERAL RESERVE BULLETIN MAY, 1930 CHANGES IN MEMBERSHIP STATE BANK MEMBERSHIP NATIONAL BANK MEMBERSHIP The following list shows the changes affecting State The following list shows reported changes (except bank membership during the month ended April 21, suspensions and insolvencies) affecting national bank 1930, on which date 1,100 State institutions were mem- membership, concerning which information became bers of the system: available between March 25 and April 21, 1930: Date Federal reserve district Capital Date Federal reserve district Capital No. 2—NEW YORK No. 1—BOSTON 1930 Carteret Trust Co., Carteret, N. J., title changed 1930 Mar. 22 to Carteret Bank & Trust Co. Apr. 2 ! Hampden National Bank, Westfield, Mass., title Apr. 19 Peop A le b s s o B rb an ed k & H o T b ru ar s t t T Co r . u , s P t a C ss o a . i , c P , N as . s J a . i , c m , N em . b J. e , r. $600,000 c C h o a . nged to Hampden National Bank & Trust i ! nonmember , 500,000 15 Engineers' National Bank, Boston, Mass., title | changed to Continental National Bank. j No. 3—PHILADELPHIA No. 2—NEW YORK Integrity Trust Co., Philadelphia, Pa 2,987,920 Admitted to membership—a consolidation of Mar. 24 i National Exchange Bank and Trust Co., New the Integrity Trust Co., a member, and the York, N. Y - $1,000,000 Market Street Title & Trust Co., nonmem- i Primary organization. ber, under new charter. Apr. 1 Baldwin National Bank, Baldwin, N. Y., title Mar. 29 Colonial Trust Co., Philadelphia, Pa., member.. 3,999,450 changed to Baldwin National Bank & Trust j Consolidated with and under title of the Co. I Pennsylvania Co. for Insurance on Lives Mattituck National Bank and Trust Co,, Matti- | and.Granting Annuities, Philadelphia, Pa., tuck, N. Y 100,000 | member.. _ 6,500,000 Conversion of Mattituck Bank, nonmember. First National Bank, Highland Falls, N. Y., ! No. 4—CLEVELAND title changed to First National Bank and Trust 1 i Lawrence Savings & Trust Co., New Castle, Pa., Co. I member 300,000 15 Flemington National Bank, Flemington, N. J., j Absorbed Home Trust Co., New Castle, Pa., title changed to Flemington National Bank & j nonmember __ 125,000 Trust Co. 29 | Peoples-Pittsburgh Trust Co., Pittsburgh, Pa., ; member 5,125,000 No. 4—CLEVELAND ! Absorbed East End Savings & Trust Co., i nonmember _ 250,000 Mar. 29 First National Bank, Dry Ridge, Ky 50,000 Succeeded by First State Bank & Trust Co., No. 5—RICHMOND nonmember. Apr. 7 i Commercial & Savings Bank, Florence, S. C, Apr. 3 Union National Bank, Butler, Pa 200,000 j member 125,000 Primary organization. I Absorbed by Peoples State Bank of South 10 First National Bank, Trafford City, Pa., title j Carolina, Charleston, S. C, nonmember. i changed to First National Bank of Trafford. No. 6—ATLANTA 18 National Bank, Defiance, Ohio -- 150,000 Primary organization. 17 Bank of Candler County, Metter, Ga_ _ 25,000 No. 5—RICHMOND Closed. No. 7—CHICAGO Mar. 5 First National Bank, Mount Rainier, Md 25,000 Mar. 25 Ka M la i m ch a . z , o m o e T m r b u e s r t & Savings Bank, Kalamazoo, J 600,000 Ab C s o o ., r b H ed y a b t y t sv P i r l i l n e c , e M G d e ., o r n g o e n s m B e a m nk b e & r. Trust Ab T s r o u r s b t e d C o th e Kalamazoo National Bank & j | 500,000 25 City A N b a so ti r o b n e a d l b B y a n N k a , ti S o u n m al t e B r, a S nk . C of South Caro- 150,000 And changed its title to Bank of Kalamazoo. i Feb. 19 Unit M ed e r S ge ta d t e w B it a h n C k h , i C ca h g ic o a C go it , y 1 1 B 1. a , n m k e & m T be ru r st Co., j 200,000 31 Nation li a n l a B . ank of Baltimore, Md 1,500,000 nonmember. Absorbed by Union Trust Co., nonmember. 28 Madison & Kedzie State Bank, Chicago, 111., member 2,000,000 No. 6—ATLANTA Succeeded by Madison Kedzie Trust & Savings Bank, nonmember. Apr. 2 First National Bank, Greenville, Ala 250,000 No. 8—ST. LOUIS Bank of Greenville, nonmember. _ 100,000 Apr. 21 Ame C ri l c o a s n ed B . ank & Trust Co., Paris, Ark._ 50,000 Co N n a s t o i l o i n d a a l t e B d a u n n k d er charter and title of Firs - t -. 425,000 14 Fr m an e k m li b n e - r American Trust Co., St. Louis, Mo., 2,000,000 No. 7—CHICAGO And Phoenix Trust Co., St. Louis, Mo., a succession to the National City Bank, St. Mar. 25 Kalamazoo National Bank & Trust Co., Kalama- Louis, Mo 1,000,000 zoo, Mich --- 500,000 Consolidated under a new charter and title of Absorbed by Bank of Kalamazoo, member. the Franklin-American Trust Co. St. Louis, 29 Peoples' National Bank, Jackson, Mich 200,000 Mo., which was admitted to membership.-_ 2,600,000 National Union Bank and Trust Co 500,000 No. 11—DALLAS Consolidated under charter of Peoples' National Bank and under title of Union and Jan. 14 Fidelity Bank of Commerce, Spearman, Tex., title changed to First State Bank. Peoples' National Bank 700,000 Mar. 24 I First State Bank, Palmer, Tex 25,000 Fishers National Bank, Fishers, Ind 25,000 I Succeeded by Commercial State Bank, non- Absorbed by Citizens State Bank, Noblesi member. ville, Ind., nonmember. | No. 12—SAN FRANCISCO First National Bank, Georgetown, 111 40,000 Mar 31 | Plumas County Bank, Quincy, Calif 120,000 Primary organization. i Succeeded by Plumas County Bank, non- 19 City National Bank, Logansport, Ind 200,000 j member. Logansport State Bank, nonmember _. 150,000 Apr. 1 Farmers State Bank, Reardan, Wash 50,000 Consolidated under charter of City National Succeeded by First National Bank. Bank and title of City & State National Bank & Trust Co 200, 000 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

MAY, 1930 FEDERAL RESERVE BULLETIN NATIONAL BANK MEMBERSHIP—Continued The Comptroller of the Currency presents the following summary of increases and reductions in the number Date Federal reserve district Capital and capital of national banks during the period from February 22 to April 18, 1930, inclusive: No. 8—ST. LOUIS 1930 Mar. 20 Mount Vernon National Bank & Trust Co., ! Num- ' Amount of Mount Vernon, Ind $50,000 Absorbed by Old First National Bank. First National Bank, Van Buren, Ark 100,000 Succeeded by First and Crawford County Bank, nonmember. New charters issued I 27 i $3,405,000 31 Firs A t N bs a o t r i b o e n d a l b B y a F n i k rs , t S S tu ta tt t g e a B rt a , n A k r , k n onmember. , 100,000 I R n e c s r t e o a r s e e d o t f o c s a o p lv it e a n l c a y pproved l 33 0 : 3. 480. 00 0 0 Apr. 9 Nati P o r n i a m l a B ry a n o k r g o a f n A iza lb ti i o o n n . , 111 50,000 Aggregate of new charters, banks restored 10 Farmers National Bank, Dahlgren, 111 25,000 to solvency, and banks increasing capital. 60 : 6,885,000 Primary organization. 11 First National Bank, Mount Olive, 111. 50,000 Liquidations. __ I 68 i 10,075,400 Primary organization. Reducing capital2 _ _ 850,000 No. 9—MINNEAPOLIS Total liquidations and reductions of capital. 73 10,925,400 Jan. 22 Farmers National Bank, Harlowton, Mont 25,000 Consolidation of national banks under act of Nov. ! Absorbed by Continental National Bank. 7, 1918 _ ____; 7 ! 2,625,000 Mar.29 First National Bank, Blue Earth, Minn 25, 000 Consolidation of national banks and State banks i Farmers National Bank, Blue Earth, Minn 50,000 under act of Feb. 25, 1927 ; 6 45,150,000 Consolidated under charter of First National Bank and title of First and Farmers Na- Total consolidations.. 13 ; 47,775,000 tional Bank. 75,000 29 First National Bank, Gettysburg, S. Dak 25, 000 Aggregate increased capital for period • 6,885,000 Potter County Bank, nonmember 30,000 Reduction of capital owing to liquidations, etc ! j 10,925,000 Consolidated under charter of Fiist National Bank and title of Potter County National Net decrease __ • i 4,040,400 Bank 75,000 j i ' Apr. 15 First National Bank, Carson, N. Dak 25, 000 Conversion of First State Bank, nonmember. * Includes 1 increase in capital of $100,000 incident to a consolidation 15 Union National Bank & Trust Co., Minot, N. under act of Nov. 7, 1918, also 4 increases aggregating $1,250,000 under Dak ----~. 100,000 act of Feb. 25, 1927. Succeeded Union National Bank. 2 Includes 2 reductions in capital aggregating $300,000 incident to First National Bank, Aberdeen, S. Dak., title consolidations under act of Nov. 7, 1918. changed to First National Bank & Trust Co. Fiduciary Powers Granted to National Banks No. 10—KANSAS CITY Nov. 18 IFirs S t u N c a ce ti e o d n e a d l b B y a n S k e , c u S r t i i t l y w S el t l a , t e O B kl a a_ n . k _ , nonmem- 25,000 *& During the month ended April 21, 1930, the Federal ber. I Reserve Board approved applications of the national Mar. 31 Citizens National Bank, Fort Gibson, Okla 25,000 banks listed below for permission to exercise one or Apr. 1 Gran A d b so Is r l b a e n d d by N a F t i i r o s n t a N l a B tio a n n a k l , B G an ra k n . d Island, i more of the fiduciary powers named in section 11 (k) Nebr __! 100,000 of the Federal reserve act as amended, as follows: (1) Absorbed by First National Bank. i Trustee; (2) executor; (3) administrator; (4) registrar Overton National Bank, Overton, Nebr j 25,000 of stocks and bonds; (5) guardian of estates; (6) assignee;, Primary organization. ! Farmers National Bank, Pilger, Nebr 50,000 (7) receiver; (8) committee of estates of lunatics; (9) Conversion of Farmers State Bank, nonmem- in any other fiduciary capacity in which State banks,, ber. trust companies, or other corporations which come National Bank of Doniphan, Nebr___ _ 25,000 Conversion of Bank of Doniphan, nonmem- j into competition with national banks are permitted to ber. j act under the laws of the State in which the national No. 11—DALLAS bank is located. Mar. 26 Citizens National Bank, Henderson Tex 100,000 Primary organization. Apr. 3 4 1 F C a it r y m A S N u e b r c s a s c o t e i r N e o b d n a e e t a d i d l o b n B b y a y a l n F F B k a i r , a r m s n F t k e o , N r r s n R a e N t o y io c a , k n t T i w a o e l n a x a l B l l , a B T nk e a x . n . k . _ _ . _. 5 5 0 0 , , 0 0 0 0 0 0 Location t D N r i i o s c . - t Name of bank g P r o a w nt e e r d s First National Bank, Terrell, Tex 200,000 Absorbed by American National Bank. i South Texas National Bank, Galveston, Tex 750,000 Winchendon, Mass.. > 1 First National Bank 1 to 9. i Hutchings-Sealy & Co., nonmember._ __ 1, 200,000 Concord, N. II 1 National State Capital 2.i ; Consolidated under charter of South Texas | National Bank and title of Hutchings-Sealy Hamburg, N. J 2 Hardyston National Bank.. 1 to 8. j National Bank _ _ 750,000 Irvington, N. Y 2 Irvington National Bank.., Ito9. j Red River National Bank of Clarksville, Tex 400,000 Mattituck, N. Y 2 Mattituck National Bank :1 to 9. ! Succeeded by Red River National Bank in and Trust Co. i ' Clarksville. New York, N. Y National Exchange Bank & |Ito9. Commercial National Bank, Jefferson, Tex _. 25,000 Primary organization. Lakewood, N. J 3 Peoples National Bank : 1 to 9. Pine Grove, Pa 3 Pine Grove National Bank—;1 to 9. No. 12—SAN FRANCISCO Wilson, N. C 5 First National Bank ! Ito9. Mar. 1 Farmers & Merchants National Bank, Blythe, Moultrie, Ga 6 Moultrie National Bank jIto9. Ca A li b f sorbed by First National Bank. 50,000 A K u en ro d r a a l , l v I i n ll d e, Ind 7 7 F C i i r ti s z t e N ns a t N io a n t a io l n B a a l n B k ank : 1 1 t t o o 9 9 . . 18 Paci A fic b s N or a b t e io d n a b l y B B a a n n k k , L o o f s I A ta n ly ge l N es a , t i C o a n l a if l Trust 2, 000,000 M Gr i a n n o d t, R N a . p D id a s k , Mich. 9 7 U A n m io er n ic a N n a t N io a n ti a o l n a B l a B nk a n a k n . d ..'• 1 to 9. & Savings Association, San Francisco, Calif, Trust Co. and Bank of America of California, Los Wayne, Nebr__ 10 First National Bank 1 to 9. Angeles, Calif., nonmember. Abilene, Tex 11 Citizens National Bank [ 1 to 3,5 to 9 Apr. 1 First National Bank, Reardan, Wash 50,000 Venture, Calif 12 Union National Bank J 1 to 5. Succeeded Farmers State Bank. i Supplementary. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

FEDERAL RESERVE DISTRICTS N.DAK 3 \ MINN. """"MINNEAPOLIS S.DAK. , DALLAS® Jii J^ TEXAS • in ••> BOUNDARIES OF FEDERAL RESERVE DISTRICTS ..— BOUNDARIES OF FEDERAL RESERVE. BRANCH TERRITORIES ® FEDERAL RESERVE BANK CITIES • FEDERAL RESERVE BRANCH CITIES O FEDERAL RESERVE. BANK AGENCY Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis