Federal Reserve Bulletin, 1930-07

FEDERAL RESERVE BULLETIN JULY, 1930 ISSUED BY THE FEDERAL RESERVE BOARD AT WASHINGTON Mid-year Review of Banking Developments Paper Eligible for Rediscount at Federal Reserve Banks Condition of All Banks in the United States Earnings and Expenses of Member Banks State Laws: Bank Ownership of Stocks 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: ROY A. YOUNG, Governor. A. W. MELLON, EDMUND PLATT, Vice Governor. Secretary of the Treasury, Chairman. ADOLPH C. MILLER. CHARLES S. HAMLIN. J. W. POLE, GEORGE R. JAMES. Comptroller of the Currency. EDWARD H. CUNNINGHAM. WALTER L. EDDY, Secretary. WALTER WYATT, General Counsel. E. M. MCCLELLAND, Assistant Secretary. E. A. GOLDENWEISER, Director, Division of Research J. C. NOELL, Assistant Secretary. and Statistics. W. M. IMLAY, Fiscal Agent. CARL E. PARRY, Assistant Director, Division of Research and Statistics. Chief Division of Examination, and Chief Federal f 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. J 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 el R C a . y H M . C . o G e. i i dney.i W. R. Burgess J. W. Jones.* A. W. Gilbart W. B. Matteson.t L. R. Rounds J. M. Rice.i J. E. Crane Allan Sproul.i Walter S. Logan... Philadelphia. _.._ B. 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.* John H. Blair K. C. Childs.J J. H. Dillard.» D. A. Jones.' O. J. Netterstrom. St. Louis ! John S. Wood- Wm. McC. Martin- O. M. Attebery S. F. Gilmore.* A. H. HailU F. N. HalU G. O. Hollocher.* C. A. Schacht.J Minneapolis .! John R. Mitchell.. W. B. Geery Harry Yaeger Gray Warren. H. I. Ziemer Frank C, Dunlop.1 Kansas City j M. L. McClure... W. J. Bailey C. A. Worthington. J. W. Helm. J. W. Helm Dallas i C. C. Walsh Lynn P. Talley R.R.Gilbert Fred Harris. R. B. Coleman W. O. 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 New York: Minneapolis: : Buffalo branch R. M. O'Hara. Helena branch R. E. Towle. Cincinnati branch C. F. McCombs. Omaha branch L. H. Earhart. Pittsburgh branch J. C. Nevin. Denver branch i 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: j 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—Mid-year review of banking developments 395 Decline in money rates—Factors in easier credit conditions—Member bank credit—Position of country banks. Paper eligible for rediscount at Federal reserve banks 400 Earnings and expenses of member banks 411, 476-481 Balance of international payments of the United States 414 Condition of all banks in the United States on March 27, 1930 399, 472-475 Annual report of the Bank of Italy 430 Annual report of the Bank of Hungary 432 Annual report of the Bank of Latvia 436 Annual report of the Bank of Bolivia 439 Annual report of the Bank of Brazil 442 National summary of business conditions 416 Financial, industrial, and commercial statistics: Reserve bank credit and factors in changes (chart and table) 417, 418 Analysis of changes in monetary gold stock 418 Gold movements to and from United States 418 Member bank borrowing at Federal reserve banks 419 Discount rates and money rates 419, 420 Member bank credit 421 Bankers' acceptances and commercial paper outstanding 421 Brokers' loans 421 Security prices, security issues, and building contracts awarded 422 Production, employment, car loadings, and commodity prices 423 Industrial production 424 Factor employment and pay rolls 425 Banking and business conditions in Federal reserve districts: Federal reserve banks— Discounts (chart and tables) ^ 426, 427 Reserve, deposits, not circulation, and reserve percentages 427 All member banks—Deposits subject to reserve, reserves held, and indebtedness at reserve banks. _ 427 Member banks in leading cities—Principal resources and liabilities 428 Building _ - 429 Department stores—Indexes of sales and stocks 429 Commercial failures 429 Bank suspensions 429 Financial statistics for foreign countries: Gold holdings of central banks and governments 445 Gold exports and imports 445 Condition of central banks 446, 447 Condition of commercial banks 448 Discount rates of central banks 449 Money rates 449 Foreign exchange rates 450 Price movements 451, 452 Law department: Ruling—Relation between provisions of statute as to eligibility of paper for rediscount and provisions limiting amount of paper of one borrower which may be rediscounted 453 Ruling—Effect of consolidation on Clayton Act permits 453 Amendments to Regulations H, I, K, and L 454 Digest of State laws relating to the purchase of corporate stocks by banks and trust companies 456 Detailed Federal reserve statistics, etc.: Resources and liabilities of Federal reserve banks in detail and Federal reserve note statement 466 Condition of each Federal reserve bank at end of month 467 Maturity distribution of bills and short-term securities held by Federal reserve banks 468 Membership in par collection system 468 Bank debits 468 Kinds of money in circulation 468 Changes in national and State bank membership 469 Fiduciary powers granted to national banks 471 IV Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

FEDERAL RESERVE BULLETIN VOL. 16 JULY, 1930 No. 7 REVIEW OF THE MONTH October, and toward the end of June commercial paper at 3%-3K per cent and 90-day Money rates in the United States have bankers7 acceptances at 1% per cent were at declined further during recent weeks, openthe lowest levels since 1924. Rates for call market rates to the lowest level loans in the New York market at 2 per cent Decline in in more than five years and and for time loans against mixed collateral "at money rates rates charged customers to the 2% per cent were also relatively low^, close^to lowest levels in about two years. the lowest levels of 1924. Rates charged cus- The principal factor in the decline, in the absence of important gold movements or change in the demand for currency, was a continued RATES CHARGED CUSTOMERS policy of ease on the part of the Federal reserve banks, represented during June by the purchase of $50,000,000 of Government securities in the open market, further reductions in reserve bank buying rates for bankers' acceptances, and further reduction of discount rates at Cleveland, New York, and Chicago. The discount rate at the Federal Reserve Bank of New York, as reduced on June 20 from 3 to 2}i per cent, is now the lowest that has ever been established at any Federal reserve bank. Reserve bank credit outstanding decreased in June by about $22,000,000 and at $977,000,000 1926 1927 1928 1929 1930 for the week ending June 28 was $344,000,000 | Weighted averages of prevailing rates on commercial loans and security ; loans lower than a year ago, with discounts for member banks, at $257,000,000, nearly $750,- \ tomers by leading banks in leading cities—for 000,000 lower than a year ago. Member bank | loans over-the-counter—also declined further credit outstanding, which has been increasing I in June, as shown by the chart illustrating since February, increased further in June to a ; the course of these rates during recent years level higher than at any other time except at | at New York City, in other cities of the North the end of 1929 and during the October-! and East, and in southern and western cities. November break in the security market. From | These rates generally move more slowly than the middle of May to June 25 the increase in ! open-market rates and over a considerably narthe loans and investments of reporting member | rower range, and although they have declined banks in leading cities amounted to about ! since last autumn more rapidly than in any $525,000,000, including for the last half of other period of equal length in recent years, June an increase in "all other77 loans and for | they were in June still somewhat above their the period as a whole a further substantial lowest points in either 1927 or 1924. Loans of growth in loans on securities and in invest- the general type to which these rates relate ments. represent about 90 per cent of all the loans In the open market the course of short- made by banks, and more than half of the term rates has been downward ever since last combined total of bank loans and investments, 395 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

396 FEDERAL RESERVE BULLETIN JULY, 1930 and the fact that such loans have become avail- While liquidation of member bank credit able during recent months at progressively proceeded rapidly from November to the end lower rates indicates the persistent influence of of February, member banks in those factors which have been making for Member bank leading cities have increased credit easier credit conditions. their loans and investments As measured by the general level of rates since February 26 by more than $1,100,000,000, in the several money markets, the cost of short- covering for this latter period a growth of term credit in the United $845,000,000 in their loans on securities and Factors in easier States has now been declin- $505,000,000 in their investments and a decredit conditions ing rapidly for about eight crease of $215,000,000 in "all other" loans. months. While the decline began at about the In this period of about four months the growth time of the sharp decrease in the aggregate de- in their loans on securities has represented a mand for loans on securities that followed the large increase in their loans to brokers and October-November break in security prices, dealers in securities, chiefly on the part of banks and while decrease in this demand provided in New York City, accompanied by further under the existing circumstances one of the decrease in their security loans to other boressential conditions of an easier credit situa- rowers. During this same period security loans tion, the actual development of pronounced made by nonbanking lenders to brokers in New ease during the past eight months has been York City declined by about $700,000,000 more directly and in larger part a reflection of largely in consequence of the fact that the other changes in the credit situation. The yield to the lender on these loans after paying more important of these changes have been commissions became less favorable, in comaccession of funds to the money market during parison with rates obtainable on deposits or the period through (1) purchase by the reserve alternative types of short-term open-market banks of $440,000,000 in United States Govern- loans. In consequence of this continuous and ment securities, (2) inflow of money from cir- large decrease in security loans by corporations culation, partly seasonal, in the amount of and other nonbank lenders, and also in the $325,000,000, and (3) an increase of $145,- security loans of banks to borrowers other than 000,000, through gold imports from abroad, in brokers, the total volume of all loans outstandthe monetary gold stock of the country. Funds ing on securities appears to have been slightly coming available from these sources have not lower at the end of June than it was in Febonly enabled the member banks to reduce sub- ruary and at the lowest level in more than a stantially the volume of their indebtedness at year. the Federal reserve banks but also to absorb or Until the middle of June, as in earlier months, liquidate a considerable volume of acceptances there was no increase, but a continued decrease, from the portfolios of the reserve banks. As in "all other " loans of member banks in leading may be seen from the complete analysis of cities. This class of loans embraces all the changes given in tables at the end of this re- loans of the banks except those secured by view, member bank borrowings at the reserve stocks and bonds, and includes not only their banks decreased by $585,000,000 from the week line-of-credit advances to customers, including ending October 26, 1929, to the week ending municipalities, and their loans secured by real June 28, 1930, without any decrease in member estate, but also any loans they may have made bank reserve balances. Member bank bor- in the open market through the purchase of rowings at $257,000,000 were accordingly acceptances or of commercial paper, as well as $750,000,000 lower than a year earlier and at unsecured loans to domestic banks and to the lowest level since early in 1925, while their foreign borrowers. The decline in "all other" reserve balances were $67,000,000 higher than loans from the peak in November, 1929, to a year ago. June, 1930, as illustrated on the chart, Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

397 JULY, 1930 FEDERAL RESERVE BULLETIN amounted to $1,500,000,000, reflecting in part and industry were still relatively inactive and the recession in business, but in considerable- commodity prices were still moving downward, part also the effect of other factors, including appears to have been connected, as in the case (l)'outright liquidation of loans contracted last of the increase in these loans at the end of last October, with coincident weakness in the security markets. At the end of June "all ALL OTHER LOANS other " loans at $8,570,000,000 were $570,000,000 OF REPORTING MEMBER BANKS lower than a year ago and $350,000,000 lower than two years ago. Easier conditions in the open market, evidenced in particular by low rates for call loans, acceptances, and commercial paper, at a time when the effective demand from customers for over-the-counter loans has been lessened by business depression, have influenced member banks to increase their holdings of investments. The increase for member banks in leading cities has been almost continuous since the middle of March, when the money market was for a few days exceptionally easy, and amounted in the period from March 12 to June 25 to $550,000,- 000. The increase since last October, when the investment portfolio of these banks was at the lowest level since early in 1927, has approximated $690,000,000, bringing the total to the highest level in more than a year. The volume of investment holdings of the reporting member BILLIONS OF DOLLARS IS OF DOLLARS 7 INVESTMENTS OF REPORTING MEMBER BANKS 1926 1927 1928 1929 1930 autumn in this form, as in other forms, for the purpose of carrying securities at the time of the collapse in stock prices, (2) the use in repayment of these loans of funds borrowed through brokers in February, March, and April when brokers7 loans and security prices were increasing rapidly, and (3) the liquidation of shortterm loans contracted at banks last year— when prevailing conditions were unfavorable for the issue of bonds by municipal and other long- 1924- 1925 1926 1927 1928 1929 1930 term borrowers—from the proceeds of bonds issued in large volume on the more favorable banks during recent years is shown on the chart, bond market of the current year. The upturn with separate curves for banks in New York of $170,000,000 in "all other" loans from June City and outside New York City. The chart 11 to June 25, coming at a time when commerce shows that the periods of rapid increase of Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

398 FEDERAL RESERVE BULLETIN JULY, 1930 investments for these banks have been 1924' street loans, acceptances purchased, and 1927, and since last October, all periods of commercial paper purchased—by about business recession and easy credit conditions, $90,000,000. Their loans to customers, howand that the amount of increase during recent ever, decreased substantially for the quarter, months has been substantial. The chart also indicates that in such periods it is usually the COUNTRY MEMBER BANKS banks in New York City, where low rates for [In millions of dollars] money first appear, that are the first to expand their investment portfolios, being followed by the banks in other leading cities. In the case of the recent movement it appears that banks in New York City increased their investments Open-market loans—total 496 +89 -102 Acceptances purchased 31 -6 -22 substantially at the end of last October and Commercial paper purchased. 207 +45 + 16 Street loans 1 258 +50 in the earlier part of November, while banks in Loans to customers 2—total __ 8,206 | —275 -158 other leading cities did not begin to do so until Secured by stocks and bonds _ _ | 2,190 '< —123 +135 Otherwise secured and unsecured ! 6,016 j —152 -293 after the end of the year. From December until March, however, the New York barks Inve U st . m S e . n G ts o — ve to rn ta m l ent securities. ___| 4 1 , , 4 2 7 7 5 3 +36 - - 2 1 6 5 5 0 were sellers of investments, and it is only since Other securities. i 3,202 ! +29 -115 the middle of March that both groups of banks B D o ue rr o fr w o i m ng b s a a n t k F s e i d n e t r h a e l r U es n e i r t v e e d b S a t n at k e s s . . . 8 1 1 7 7 0 - - S 91 o + -9 3 8 7 have been expanding their holdings. In June 1 Loans to brokers and dealers in securities in New York City. the investments of the New York banks were 2 Exclusive of loans to banks. at the highest level on record, while those of in the amount of $125,000,000 for loans on the reporting member banks outside New York securities and $150,000,000 for "all other' City, although higher than a year ago, were loans. On this date their customer loans on still about $300,000,000 below their peak early securities were still $135,000,000 higher than a in 1928. year ago, while "all other" loans to customers Available information for member banks outshowed a decrease of $290,000,000 for the year. side leading cities indicates that the position of these banks in June was easier Position of counthan at the same season of any try banks RESERVE BANK CREDIT AND FACTORS IN CHANGES other recent year excepting [In millions of dollars] 1927. Their indebtedness at the reserve banks, after declining to a low point in April, increased Week ending— Change seasonally by $30,000,000 to the end of June. during June 28, Oct. 26,8 months Balances of these banks held with their city 1930 1929 correspondents increased rapidly in June. The Bills discounted- 257 843 -586 latest date for which information is available Bills bought. 110 355 United States securities 578 140 +438 regarding the loans and investments of so-called Other reserve bank credit 31 71 -40 country banks is March 27, as summarized in Total reserve bank credit _ 976 1,409 -433 the accompanying table, which show^s that dur- T M r o e n as e u ta ry ry c g u o r ld re s n t c o y c — k adjusted.. 4 1, , 7 5 6 3 4 3 4 1, , 7 3 9 8 3 6 + 147 ing the first quarter of 1930 the country banks Money in circulation 4,468 4,791 -323 increased their investments by $36,000,000 N M o e n m m b e e m r b b e a r n k d e r p e o se s r i v ts e , e b t a c lances 2,38 2 1 8 2,37 2 8 5 + + 3 3 and their open-market loans—in the form of Unexpended capital funds 396 394 +2 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

399 JrLT, 1930 FEDERAL RESERVE BULLETIN ANALYSIS OF CHANGES IN THE CREDIT SITUATION cessively reduced during June, as shown in the BETWEEN WEEK ENDING OCT. 26, 1929, AND WEEK following table: ENDING JUNE 28, 1930 I Amounts in millions of dollars; figures from preceding table] Date effective 1 to 45 46 to 90 91 to 120 1121 to 180 days days days days Funds became available to the money market from— In effect May 31_ 21/2 1. Increase in reserve bank holdings of i United States securities 438 June 3 2% 2H: 3 June 5 2H 2% 2% 2. Decrease in demand for money in cir- June 16 _ 2H 2\i 2% culation 1 323 June 20 2 2 2H' 2H 3. Increase in monetary gold stock 147 June 30 \% 2 Gross gains to market 908 Changes in Foreign Central Bank Discount Rates Funds were withdrawn from the money market through— The following changes have been made since 1. Decrease in "other" reserve bank the 1st of June in the discount rates of central credit (includes reserve bank float)._ 40 banks in foreign countries: 2. Decrease in Treasury currency adjusted I I 29 June 2.—Bank of Portugal, from 8 to 7H per cent. 3. Increase in nonmember deposits, etc., June 13.—Bank of Poland, from 7 to 6J4 per cent. at reserve banks 3 June 21.—German Reichsbank, from ' 4\i to 4 per 4. Increase in unexpended capital funds cent. of reserve banks 2 June 24.—Bank of Danzig, from 5 to 4J4 per cent. June 25.—Czechoslovak National Bank, from 4)4 to Gross withdrawals from market. 4 per cent. Net gains to market 834 Funds gained by the money market were New Corporation Under the Edge Act used— On May 22, 1930, the Federal Reserve Board 1. To decrease member-bank borrowings at reserve banks (bills discounted) _ _ 586 issued a final permit to commence business to 2. To decrease reserve-bank holdings of ''The Chase Bank," a corporation which has acceptances (bills bought) 245 been organized under section 25 (a) of the 3. To increase member-bank reserve Federal reserve act. balances 3 Total 834 i Condition of All Banks in the United States on March 27, 1930 Changes in Discount Rates and Bill Rates Loans and investments of all banks in the United States aggregated $57,386,000,000 on The discount rate on all classes and maturi- March 27, 1930, according to figures recently ties of paper was reduced from 4 to 3% per cent made available and given in detail, by disat the Federal Reserve Bank of Cleveland, ef- tricts and by States, on pages 473-476 of this fective June 7, at the Federal Reserve Bank of BULLETIN. * The decline of $1,065,000,000 since Chicago, effective June 21, and at the Federal the first of the year reflects a decrease in loans Reserve Bank of Philadelphia, effective July 3. of $1,240,000,000, offset in part by an increase The discount rate at the Federal Reserve Bank of $174,000,000 in investments. These figures, of New York was reduced from 3 to 2% per cent, compiled by the Federal Reserve Board, coneffective June 20, and at the Federal Reserve solidate the figures of 24,223 member and non- Bank of Boston from 3% to 3 per cent, effective member banks, including national banks, State July 3. commercial banks, trust companies, mutual At the Federal Reserve Bank of New York and stock savings banks, and private banks buying rates on bills of all maturities were suc- under State supervision. 120082—30- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

400 FEDERAL RESERVE BULLETIN JULY, 1930 PAPER ELIGIBLE FOR REDISCOUNT AT FEDERAL RESERVE BANKS For several years the Federal Reserve Board NUMBER OF MEMBER BANKS, DISTRIBUTED BY COUNhas collected statistical data on the amount of TRY AND RESERVE CITY BANKS AND BY PERCENTpaper carried by member banks which is AGE RATIO OF ELIGIBLE PAPER AND UNITED STATES GOVERNMENT OBLIGATIONS 2 TO LOANS AND INeligible for rediscount at Federal reserve banks VESTMENTS: DECEMBER 31, 1929 and which measures, when combined with member bank holdings of United States obliga- Percentage ratio tions, the maximum amount that the member Class of bank Total banks can borrow from the reserve banks. 0.0 2 0.1-9.9 10-39.9 40+ At the end of 1929 member banks reported $4,400,000,000 of eligible paper and in addi- Total... 8,522 99 1,749 4,813 1,861 tion held $3,200,000,000 of United States Central reserve and reserve Government obligations, not including about city banks 531 5 85 386 55 $650,000,000 pledged to secure national-bank Country banks.._ 7,991 94 1,664 4,427 1,806 notes outstanding. The sum of these two 1 Exclusive of securities pledged against national-bank notes outitems, amounting to $7,600,000,000, repre- standing. sents the borrowing power of member banks 2 No eligible paper or United States Government obligations. at the reserve banks on that date, when the It appears that in the group of the smallestmember banks were actually borrowing from banks, those with less than $200,000 of loans Federal reserve banks less than one-tenth of and investments, one out of 46 reported no this amount. The present borrowing power of eligible paper or United States Government member banks, furthermore—at $7,600,000,obligations, while of the largest banks, those 000—is nearly three times as large as the with more than $10,000,000 of loans and investmaximum of bills discounted for member banks ments, only one out of the more than 400 by the reserve banks at any one time and more was in this condition. The larger the banks than twice as large as the maximum total of are, the greater the tendency appears to be to reserve bank credit in all forms outstanding at maintain an eligibility position in the middle any one time, reached in the autumn of 1920. class with the ratio of eligible paper and These figures give precision to the well-known United States Government securities to total fact that under present conditions the maximum loans and investments at from 10 to 40 per borrowing power of the member banks exceeds cent. Details in this respect appear in the by a wide margin the requirements of any following table: emergency which has heretofore arisen or which might possibly arise. NUMBER OF MEMBER BANKS, DISTRIBUTED BY LOANS Distribution of eligible paper and Govern- AND INVESTMENTS AND BY PERCENTAGE RATIO OF ment securities.—An analysis of the distribu- ELIGIBLE PAPER AND UNITED STATES GOVERNMENT tion of eligible paper among individual member OBLIGATIONS1 TO LOANS AND INVESTMENTS: DE- CEMBER 31, 1929 banks shows that on December 31, 1929, the majority both of country and of city banks had as part of their portfolios a not inconsider- Percentage ratio able proportion in eligible paper and Govern- Loans and investments Total 0.0 2 0.1-9.9 10-39.9 40+ ment securities. Among country banks about one-fifth had more than 40 per cent of their Total 8,522 1,749 4,813 1,861 loans and investments in eligible paper and Government securities, and among city banks Under $200,000 785 39 326 403 $200,000 to $1,000,000... 4,123 634 2, 255 1,174 about one-tenth had such ratios. In more $1,000,000 to $10,000,000 3,182 1,910 264 than one-half of the banks the ratio of eligi- $10,000,000 and over.... 432 322 20 bility amounted to between 10 and 40 per * Exclusive ok securities pledged against national-bank notes outcent of their portfolios. However, 99 member standing. banks—94 of them country banks—held no 2 No eligible paper or United States Government obligations. eligible paper and no Government securities. Comparison by Federal reserve districts These facts are brought out in the following brings out the fact that in districts that are table: primarily agricultural a large number of banks Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

JULY, 1930 FEDERAL RESERVE BULLETIN 401 have a high eligibility portfolio. In fact, in CHARACTERISTICS OF ELIGIBLE PAPER one such district the majority of banks have Definition.—Eligible paper is a term applied a ratio of eligibility to total loans and investto credit instruments that are eligible for disments of more than 40 per cent. On the other count at the Federal reserve banks under hand, the industrialized districts, such as the terms of the Federal reserve act and the Boston, New York, Philadelphia, Cleveland, rulings of the Federal Reserve Board. The and Chicago, show a majority of their banks in general principles of eligibility are clearly dethe middle classification with a ratio of eligible fined by the act and the rulings, but their appaper and United States Government obligaplication in particular cases is not always a tions to total loans and investments below 40 simple matter. per cent. A summary of the data, by Federal reserve districts, is shown below: The Federal Reserve Board's rulings and regulations relating to eligibility have been published currently in the FEDERAL RESERVE NUMBER OF MEMBER BANKS, DISTRIBUTED BY DIS- TRICT AND BY PERCENTAGE RATIO OF ELIGIBLE BULLETIN and have been brought together for PAPER AND UNITED STATES GOVERNMENT OBLIGA- ready reference, together with rulings and regu- TIONS x TO LOANS AND INVESTMENTS: DECEMBER lations on other subjects, in the so-called 31, 1929 Digest of Rulings.1 The summary presented herewith undertakes to indicate, in language as Percentage ratio free as possible from technical terms, the char- Federal reserve district i Total acteristics which paper must possess in order i 0.0 2 0.1-9.9 i 10-39.9 40+ to be eligible for rediscount. In the interests of simplicity the text of this summary in some Total. 8,522 99 1, 749 I 4,813 1,861 cases does not follow the precise language of the Boston ._. 404 164 229 underlying documents, but it should be defi- N Ph e i w la d Y e o l r p k hia.. 9 7 3 6 1 4 3 3 3 3 3 8 3 5 8 4 8 4 3 1 7 8 nitely understood that such departures in language do not in any way qualify the rulings Cleveland.. 795 348 402 23 Richmond,. 514 99 327 76 and regulations as officially promulgated. Atlanta 428 24 264 136 Tests of eligibility.—In view of the fact that Chicago i 1,186 156 768 254 St. Louis ! 571 118 357 92 the Federal reserve system was established for Minneapolis.. 683 59 416 205 the purpose, among others, of creating an Kansas City... 893 442 441 agency from which member banks can obtain Dallas-. 746 265 463 credit for seasonal or emergency needs, the San Francisco. 607 411 108 1 Federal reserve act provides in a general way 1 Exclusive of securities pledged against national-bank notes out- that so-called commercial paper be eligible for standing. 2 No eligible paper or United States Government obligations. discount with the reserve banks. This is a class of paper that a typical member bank More detailed statistics of the distribution of would acquire in considerable volume in the member banks according to the percentage course of its ordinary operations, and at the ratio of eligible paper and United States Govsame time one that is so liquid that it can be ernment obligations to loans and investments, safely held by the banks of issue. Paper as well as the percentage ratio of eligible paper created in the process of financing the flow of to loans, are presented on pages 408-410 of this commodities in production and trade arises out issue of the BULLETIN. of loans that are ordinarily liquidated by the A factor contributing to the uneven distribuborrower with funds received in the natural tion of eligible paper between member banks course of events from the sale of goods undermay be the difficulty experienced by some lying the transaction. In the majority of banks in determining precisely what paper is cases the rules and regulations relating to eligible and what paper is not. To further a eligibility are consequently devoted to defining better understanding of this matter, and eligible paper by reference to the nature of the because of interest in the subject matter expressed in various quarters from time to time, i Digest of Rulings of the Federal Reserve Board (1914-1927, inclusive) a summary of eligibility requirements has been with appendices containing text of Federal Reserve Act, Regulations of prepared and is presented herewith. Federal Reserve Board, National Bank Act, Instructions of Comptroller of the Currency, and related matters, 1928; price $2. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

402 FEDERAL RESERVE BULLETIN JULY, 1930 underlying transactions. The first question to (see p. 405). Purposes specifically enumerated ask, therefore, in the process of testing any are shipment of goods, including export and piece of paper for eligibility, is: Did it arise import, storage of readily marketable staples, from, or are the proceeds to be used for, the and the creation of dollar exchange. proper sort of transaction? Other questions, Eligibility vs. acceptability.—The Federal which are equally essential but comparatively reserve act, the regulations of the Federal easy to determine, are as follows: Is the Reserve Board, and the rulings of the board maturity within the law and regulations? Does define the tests that paper must meet in order the paper meet the physical formalities pre- to be eligible for rediscount. The Federal scribed? Has the legal limit of the aggregate reserve banks must observe these tests when of paper rediscountable for the particular taking paper, but to them is left the matter of obligor been reached? passing on the desirability of paper from a In order to be eligible, paper must arise out credit standpoint. Paper may meet the techof a transaction related to an agricultural, in- nical tests of eligibility and yet fail to meet dustrial, or commercial purpose; the paper the credit requirements of any particular must have been drawn or the proceeds used for Federal reserve bank. Moreover, each Fedproducing, purchasing, carrying, or marketing eral reserve bank is charged by the act in exgoods. Paper is not eligible if the proceeds tending accommodation to any particular are used to finance fixed investments of any member bank to have "due regard for the kind; or any investments of a purely specula- claims and demands of other member banks.7' tive character; or carrying or trading in stocks Member bank collateral notes.—Member and bonds except obligations of the United banks, in addition to raising funds from Federal States; or to finance relending operations ex- reserve banks by rediscounting, may borrow cept relending by cooperative marketing asso- ! for 15 days on their own notes secured by ciations and factors. j obligations of the United States or by paper Because of the longer maturities for which eligible for rediscount. Indeed, more use has agricultural paper may be rediscounted, it- been made in recent years of this method of needs to be distinguished from other eligible | borrowing than of rediscounting; on December paper. Agricultural paper arises out of activi- | 31, 1929, for example, member banks were ties of growers in connection with production, I borrowing at the reserve banks $454,000,000 marketing, and carrying of agricultural prod- on their collateral notes, and their rediscounts ucts, including the breeding, raising, fattening, at the reserve banks amounted to $193,000,000. or marketing of livestock. In classifying Summary tabulation.—The following pages paper, the purpose of original negotiation is give a tabular array of the chief points that determining throughout its life. need to be taken into consideration in testing any particular piece of paper as to its eligibility Some special points should be kept in mind for rediscount. There are also included, by with relation to bankers' acceptances. In way of illustration, digests of rulings in connecrespect to this type of paper the law and regution with the eligibility of paper arising out of lations are somewhat more specific as to the specific transactions. purpose of negotiation or nature of transaction What nature of transactions give rise to notes, drafts, and bills of exchange eligible for rediscount at a Federal reserve bank? Eligible paper arises if drawn for or proceeds used for— Producing, purchasing, carrying, marketing goods in agriculture, industry, or commerce.1 Ineligible paper arises if drawn for or proceeds used for— Fixed investments or capital purposes of any kind.2 Relending3 except for agricultural purposes by a cooperative association4 or by a factor exclusively to producers of agricultural products in their raw state.5 Investments of a purely speculative character.6 Carrying or trading in stocks and bonds except obligations of the United States.7 For footnotes see page 406. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

403 JUL7, 1930 FEDERAL RESERVE BULLETIN Specific transactions giving rise to eligible and ineligible paper according to published rulings of the Federal Reserve Board: ELIGIBLE PAPER INELIGIBLE PAPER Investment paper Given by owner to contractor in actual pay- Made by owner—proceeds of which to be ment for material and services.3 used by owner to pay for work of developing or building.8 Given by motor transport corporation to the Made by motor transport corporation— seller of trucks.9 proceeds to be used for purchase of trucks.9 Given by farmer for tractor—agricultural paper on the ground that a tractor is used for a current agricultural purpose.10 Given by farmer—proceeds to be used for Given by farmer for purchase of silo.12 draining farm lands when drainage is incidental to cultivation.11 Given by water works company—the pro- Given by public service corporation, if can ceeds of which to be used for pay roll, purchases not be liquidated within a short time out of of coal, etc., if statement of borrower shows current earnings.14 excess of quick assets over current liabilities.13 Belending or finance paper Drawn by factor the proceeds used for Drawn by a finance company to finance making advances exclusively to producers of another.16 staple agricultural products in their raw state (maturities up to 90 days).15 Given by agricultural cooperative marketing Given by Federal land bank or joint-stock associations (with maturities up to 9 months), land bank, secured by farm loan bonds—prowhen the proceeds are to be advanced by the ceeds used for relending.18 association to any of its members for an agricultural purpose.17 Paper drawn for investments of a purely speculative character Made by a manufacturer of pig iron secured by pig iron already manufactured, held waiting Note, proceeds of which are used for holding delivery under contract of sale. The sale has grain for a higher price.20 been made and the carrying of the material is not for speculative purposes. 19 AGRICULTURAL OR COMMERCIAL PAPER Agricultural or livestock and eligible Commercial and eligible Given by a farmer for purchase of agricul- Given by a dealer for agricultural impletural implements (replaceable in a compara- ments to resell to a farmer.22 tively short time).21 Drawn by a dealer on farmer in payment Given to a farmer in payment for agricultural for agricultural implements.21 products grown by him.23 Given by farmer to an irrigation company Given by an irrigation company, in its busifor water used for crops.24 ness of furnishing water to farmers.2i Given by a farmer to raise funds for fatten- Given by a packing company—the proceeds ing cattle.25 used to purchase livestock.26 Made by farmer in payment for mules.27 Made by mule and cattle dealer.27 Made by agricultural cooperative marketing Covering such food products as butter, associations for the purpose of obtaining funds cheese, eggs, poultry, frozen fish in cold storage with which to make payments to members, or under negotiable warehouse receipts.29 to finance marketing of agricultural products.28 For footnotes see p. 406. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

404 FEDERAL RESERVE BULLETIN JULY, 1930 What maturity may rediscountable paper have? Ninety days in general, including factors' paper created to make advances to certain agricultural producers.30 Nine months in case of agricultural paper including livestock paper.31 Indefinite maturities are ineligible except for sight bills which grow out of the domestic shipment or exportation of nonperishable, readily marketable agricultural or other staples and secured by shipping documents. Such bills may not be held for the account of a Federal reserve bank for more than 90 days.32 How much paper of one borrower may be rediscounted by a member bank with a reserve bank? An amount not in excess of that which may be loaned by a national bank to one person; i. e., 10 per cent of such bank's capital and surplus subject to a number of important exceptions.33 (See Comptroller's summary, p. 407 of this BULLETIN.) What technical formalities must the paper meet? Must be promissory note, draft, or bill of exchange, including bankers' and trade acceptances.34 Must be negotiable.35 Must be indorsed by a member bank.36 The name of one of the parties to underlying transaction must appear upon it as maker, drawer, acceptor, or indorser.37 May be secured by the pledge of goods or collateral of any nature, provided the paper is otherwise eligible.38 What physical evidence of eligibility must be supplied by discounting member bank? Application for discount must certify— Member bank's belief in eligibility.39 Paper, not acquired from nonmember bank, unless member has permission to rediscount for nonmember banks.39 If offering bank is a State bank, that borrower is not obligated for more than he could be to a similar national bank.40 If paper is a promissory note, whether a financial statement of borrower is on file. A Federal reserve bank may in any case require the financial statement of the borrower to be filed with it. Such statement must be on file if the note was discounted for a nonmember bank or a nondepositor, and in all other cases unless— Secured by warehouse receipt, prior lien on livestock, or obligations of the United States; or The aggregate obligations of borrower offered for discount is less than 10 per cent of capital of bank and is less than $5,000.41 A draft, bill of exchange, or acceptance should be drawn so as to evidence the character of the underlying transaction. A stamp or certificate may accomplish this.42 For footnotes see p. 406. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

JULY, 1930 FEDERAL RESERVE BULLETIN 405 BANKERS' ACCEPTANCES (Certain respects in which the law and the regulations governing eligibility are more specific with reference to bankers7 acceptances than with reference to other types of paper are detailed below.) Nature of transactions giving rise to eligible acceptances: Shipment of goods in foreign trade, including shipments between two foreign countries. Shipment of goods within the United States—shipping documents must be attached at time of acceptance. Storage in the United States or in any foreign country of readily marketable staples, must be secured at time of acceptance by warehouse receipt and acceptor must be secured through life of acceptance. Creation of dollar exchange.43 Maturity of eligible acceptances: 90 days in general.44 6 months, if drawn for agricultural purposes and if secured at time of acceptance by warehouse receipts covering readily marketable staples.44 3 months, if arising from the creation of dollar exchange.45 Aggregate of acceptances of one customer rediscountable for a particular member bank: 10 per cent of capital and surplus of accepting bank, unless acceptance is secured throughout life by documents growing out of same transaction.46 For footnotes see p. 406. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

406 FEDERAL RESERVE BULLETIN JULY, 1930 DEFINITIONS NOTES Note: Unconditional promise, in writing, The foregoing article is based on the Federal signed by the maker, to pay in the United reserve act and on the rulings and regulations States, at a fixed or determinable future time, of the Federal Reserve Board as published a sum certain in dollars to order or to bearer.47 from time to time in the FEDERAL RESERVE Draft or bill of exchange: Unconditional or- BULLETIN and summarized in the so-called Digest of Rulings (described on p. 401). The der, in writing, addressed by one person to numbered citations refer, except as indicated another, signed by the person giving it, requirbelow, to pages of the digest, with parenthetical ing the person to whom it is addressed to pay reference to the act (by sections), to the reguin the United States, at a fixed or determinable lations (by letter and section), and to the future time, a sum certain in dollars to the order of a specified person.48 rulings (by number, all numbers cited being those of rulings given in the digest under the Trade acceptance: A draft or bill of exgeneral heading XIII-C). change, drawn by the seller on the purchaser of goods sold, and accepted by such purchaser.48 1 P. 226 (Act, Sec. 13); p. 129 (Reg. A, Sec. I (b)); p. 130 (Reg. A. Sec. II (a)). Banker's acceptance: A draft or bill of ex- 2 P. 227 (Act, Sec. 13); p. 130 (Reg. A, Sec. II (c)). 3 P. 130 (Reg. A, Sec. II (b)). change, whether payable in the United States * P. 232 (Act, Sec. 13a); p. 133 (Reg. A, Sec. VI (b)). or abroad and whether payable in dollars or 5 P. 226 (Act, Sec. 13); p. 129 (Reg. A, Sec. I (b)); p. 134 (Reg. A, Sec. VIII). some other money, of which the acceptor is a s P. 130 (Reg. A, Sec. II (d)). 7 P. 227 (Act, Sec. 13)—see also Act of June 17,1929; p. 129 (Reg. A, Sec. bank or trust company, or a firm, person, I (c)). company, or corporation engaged generally in s P. 40 (Ruling No. 331). » P. 44 (Ruling No. 501). the business of granting bankers7 acceptance 10 P. 32 (Ruling No. 211). credits.49 1 1 1 2 P P . . 3 4 3 4 ( ( R R u u l l i i n n g g N N o o . . 2 5 1 0 4 0 ) ) . . is P. 37 (Ruling No. 314). Agricultural paper: Note, draft, or bill of "P. 37 (Ruling No. 318). exchange issued or drawn, or the proceeds of 15 P. 226 (Act, Sec. 13); p. 129 (Reg. A, Sec. I (b)); p. 134 (Reg, A, Sec. which have been or are to be used for agricul- 16 p! 38 (Ruling No. 324). 17 P. 232 (Act, Sec. 13a); p. 133 (Reg. A, Sec. VI (b)), tural purposes, including the production of is P. 39 (Ruling No. 330). agricultural products, the marketing of agricul- i 2 s o p P . . 3 3 5 6 ( ( R R u u l l i i n n g g N N o o . . 3 3 0 1 2 2 ) ) . . tural products by the growers thereof, or the 21 P. 31 (Ruling No. 204). 22 P. 33 (Ruling No. 215). carrying of agricultural products by the growers 23 P. 27 (Ruling No. 100). 24 P. 40 (Ruling No. 333). thereof pending orderly marketing, and the 25 p. 32 (Ruling No. 208). breeding, raising, fattening, or marketing of 26 P. 32 (Ruling No. 209). 27 P. 31 (Ruling No. 203). livestock.50 28 P. 232 (Act, Sec. 13a); p. 133 (Reg. A, Sec. VI (b);. 29 P. 38 (Ruling No. 321). Goods: Include goods, wares, merchandise, 30 p. 227 (Act, Sec. 13); p. 129 (Reg. A, Sec. I (a)). or agricultural products, including livestock.51 3 3 2 1 P P . . 2 2 2 7 3 1 ( A (A ct c , t , S S ec e . c . 1 3 1 ) 3 ; a) p ; . p 12 . 9 1 2 ( 9 R ( e R g. e g A . , A S , e c S . e I c . ( I a ) ( ) a ; ) p ) . . 134 (Reg. A, Sec. VII); see also amendment of May 29, 1928. Readily marketable staple: An article of 33 P. 227 (Act, Sec. 13)—see also amendment of Sec. 13 by act of April commerce, agriculture, or industry of such uses 12 3 , < 1 P 93 . 0 2 ; 2 p 6 . ( 3 A 5 c 2 t , ( S S e e c c . . 5 1 2 3 0 ); 0 p o . f 2 U 28 . S (A . c R t . , S S e .) c . . 13). as to make it the subject of constant dealings in 35 P. 130 (Reg. A, Sec. II (a)). 36 p. 226 (Act, Sec. 13); p. 231 (Act, Sec. 13a); p. 129 (Reg. A, Sec. (e» . ready markets with such frequent quotations 37 p. 130 (Reg. A, Sec. II (a)). of price as to make (a) the price easily and 38 P. 130 (Reg. A, Sec. II (e). 39 P. 131 (Reg. A, Sec. III). definitely ascertainable and (6) the staple itself « P. 217 (Act, Sec. 9); p. 131 (Reg. A, Sec. III;. easy to realize upon by sale at any time.52 « " P P . . 1 1 3 3 1 2 ( ( R R e e g g . . A A , , S S e e c c . . I V V ( ( b b ) ) ) ) ; . p. 137 (Reg. A. Sec. XIII;. « P. 135 (Reg. A, Sec. XI). Rulings have held these to be readily market- " P. 228 (Act, Sec. 13); p. 137 (Reg. A, Sec. XII), 45 P. 230 (Act, Sec. 13); p. 137 (Reg. A, Sec. XI). able staples: Cotton yarns, flour, cotton, pota- « P. 136 (Reg. A, Sec. XI). toes, cattle, sugar in bond, wool, coal, cotton- « P. 131 (Reg. A, Sec. IV (a)). « P. 132 (Reg. A, Sec. V (a)). seed. These have been held not to be such « P. 135 (Reg. A, Sec. X). x P. 132 (Reg. A, Sec. VI (a)). marketable staples: Automobiles, _ automobile 5i P. ISO (Reg. A, Sec. II (a), footnote), tires, whisky, or sacramental wine in bond.513 u P. 136 (Reg. A, Sec. XI, footnote). 53 P. 74 (Ruling XIII-E, No. 460). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

JULY, 1930 FEDERAL RESERVE BULLETIN 407 LOANING POWERS OF NATIONAL BANKS UNDER SECTION 5,200, U. S. R. S. [Treasury Department—Comptroller of the Currency—Examining Division—Form 1416-B] Obligations i Amounts loanable (A) Accommodation or straight loans, whether or not sing]e name, Maximum limit, 10 per cent of bank's including liability as indorser or guarantor (where indorser or paid-up and unimpaired capital and guarantor receives the proceeds from bank) of paper not com- surplus. ing within exceptions 2 and 4. Loans secured by stocks, bonds, and authorized real estate mortgages. (1) Drafts or " bills of exchange drawn in good faith against actually No limit imposed by law. existing values." (2) Commercial or business paper (of other makers) actually owned No limit imposed by law. by the person, copartnership, association, or corporation negotiating the same. (3) Obligations secured by goods or commodities in process of ship- No limit imposed by law. ment. (4) Obligations as indorser or guarantor of notes (other than com- 15 per cent in addition to 10 per cent mercial or business paper) maturing within six months, owned (A). by indorser. (5) Bankers' acceptances of the kinds described in section 13 of the No limit imposed by law. Federal reserve act. (6) Obligations secured by shipping documents, warehouse receipts, 15 per cent, secured by 115 per cent. or other such documents, transferring or securing title cover- 5 per cent, secured by 120 per cent. ing readily marketable nonperishable staples— 5 per cent, secured by 125 per cent. (a) When the actual market value of the property is not at 5 per cent, secured by 130 per cent. any time less than shown in table herewith. 5 per cent, secured by 135 per cent. (b) When the property is fully covered by insurance (if 5 per cent, secured by 140 per cent. customary to insure such commodity), and in no event shall this exception apply to obligations of any one cus- 40 per cent in addition to regular 10 tomer arising from the same transactions and/or secured per cent loan (A). upon the identical staples for more than 10 months. (7) Obligations secured by shipping documents or instruments cover- 15 per cent in addition to regular 10 ing livestock or giving a lien thereon having a market value of per cent loan (A). not less than 115 per cent of the amount of the loan. (8) Notes secured by not less than a like face amount of bonds or notes 15 per cent of bank's capital and surplus of the United States issued since April 24, 1917, or by certifi- in addition to the amount allowed cates of indebtedness of the United States. under (A), or if the full amount allowed under (A) is not loaned, then the amount which may be loaned in the manner described under (8) is increased by the loanable amount not used under (A). In other words, the amount loaned under (A) must never be more than 10 per cent, but the aggregate of (A) and (8) may equal, but not exceed, 25 per cent. 1 The term "obligations" shall mean the direct liability of the maker or acceptor of paper discounted with or sold to such association and the liability of the indorser, drawer, or guarantor who obtains a loan from or discounts paper with or sells paper under his guaranty to such association and shall include in the case of obligations of a copartnership or association the obligations of the several members thereof. 120082—30 3 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

408 FEDERAL RESERVE BULLETIN JULY, 193C TABLE I.—CENTRAL RESERVE CITY, RESERVE CITY, AND COUNTRY MEMBER BANKS CLASSIFIED BY (A) RATIO OF ELIGIBLE PAPER PLUS GOVERNMENT SECURITIES ! TO LOANS AND INVESTMENTS AND (B) RATIO OF ELI- GIBLE PAPER TO LOANS: DECEMBER 31, 1929 [Amounts in millions of dollars] Classification by ratio of Classification by ratio of eligible paper plus Gov- Classification by ratio of eligible paper plus Gov- Classification by ratio of ernment securities l to eligible paper to loans ernment securities ! to eligible paper to loans loans and investments loans and investments Ratio (per cent) Eligible Ratio (per cent) Eligible N b b a e u n r m k o s - f i m L n a o v e n a e n d n s t t s s - G s p m o e p a c v l e p u u e n e r s r t r i n - - b N b a e u n r m k o s - f Loans E p li a g p i e b r le N b b a e u r n m k o s - f i m L n a o v e n a e n d n s t t s s - G s p m o e p a c v l e p u u e n e s r r t r i n - - N b b a e u r n m k o s - f Loans E p li a g p i e b r le ties ties ALL MEMBER BANKS RESERVE CITY MEMBER BANKS Total 8,522 35,922 7,637 8,522 26,134 4,429 Total 458 12,022 2,625 458 9,077 1,400 0.0 - 99 101 324 255 0.0 3 10 12 52 Less than 5 666 1,547 51 678 2,721 81 Less than 5 23 227 10 39 1,089 38 5 to 9.9 1,083 4,035 312 875 4,430 335 5 to 9.9 _. 53 1,346 110 73 2,465 189 10 to 19.9 2,065 12, 952 2, 013 1,702 10, 841 1,565 10 to 19.9 153 4,742 738 155 3,075 445 20 to 29.9... 1,529 10, 747 2,738 1,371 5,089 1,201 20 to 29.9 110 3,293 838 97 1,573 396 30 to 39.9 1,219 4,341 1,462 1,071 1,284 444 30 to 39.9 66 1,563 546 41 451 156 40 to 49.9 846 1,543 667 923 709 313 40 to 49.9 33 732 315 20 175 76 50 to 59.9 526 378 206 673 425 226 50 to 59.9 10 70 40 11 144 73 60 to 79.9 425 259 173 744 337 227 60 to 79.9 6 39 28 10 53 35 80 and over 64 19 16 161 44 38 80 and over 1 CENTRAL RESERVE CITY MEMBER BANKS COUNTRY MEMBER BANKS Total 73 10, 529 2,504 73 8,130 1,323 Total 7,991 13,371 2,508 7,991 8,926 1,697 0.0.. 2 23 3 8 0.0 -. 94 68 309 196 Less than 5 3 95 2 7 335 8 Less than 5 640 1,226 38 632 1,297 34 5 to 9.9 6 88 6 7 305 24 5 to 9.9 1,024 2,601 196 795 1,660 122 10 to 19.9... 23 3,424 581 29 5,015 723 10 to 19.9 1,889 4,787 69-1 1,518 2,751 396 20 to 29.9 25 5,260 1,369 13 2,361 523 20 to 29.9 1,394 2,195 531 1,261 1,155 282 30 to 39.9... 9 1,392 443 6 45 16 30 to 39.9 1,144 1,386 473 1,024 787 272 40 to 49.9.... 3 229 93 6 44 19 40 to 49.9 810 581 259 897 490 218 50 to 59.9 2 19 10 2 18 10 50 to 59.9 __ 514 288 156 660 263 143 60 to 79.9 60 to 79.9 419 220 146 734 284 192 80 and over 80 and over 63 18 15 161 44 38 • Exclusive of securities pledged against national bank note circulation. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

J ULY, 1930 FEDERAL RESERVE BULLETIN 409 TABLE II.—MEMBER BANKS OF SPECIFIED SIZE, CLASSIFIED BY (A) RATIO OF ELIGIBLE PAPER PLUS GOVERN- MENT SECURITIES1 TO TOTAL LOANS AND INVESTMENTS AND (B) RATIO OF ELIGIBLE PAPER TO LOANS: DECEMBER 31, 1929 [Amounts in millions of dollars] Classification by ratio of Classification by ratio of eligible paper plus Gov- Classification by ratio o eligible paper plus Gov- Classification by ratio of ernment securities 1 to eligible paper to loans ernment securities i to eligible paper to loans loans and investments loans and investments Ratio (per cent) ; Eligible Ratio (per cent) Eligible N b b a e u n r m k o s - f i m L n a o v e n a e n d n s t t s s - G s p m o e p a c v l e p u u e n e r s r t r i n - - N b b a e u n r m k o s - f L^ooaanns s j ' E p l a i p g e ib r le N b b a e u n r m k o s - f i m L n a o v e n a e n d n s t t s s - G s p m o e p a c v l e p u u e n e s r r t r i n - - N b b a e u n r m k o s - f Loans E p li a g p i e b r le ties ties BANKS WITH LOANS AND INVESTMENTS BANKS WITH LOANS AND INVESTMENTS OF LESS THAN $200,000 OF $1,000,000 TO $5,000,000—Continued Total 785 111.5 785 ! 83.2 8.4 20 to 29.9.... 508 1,064. 7 259.5 i 455 ! 594.0 146.7 30 to 39.9.... 307 610.0 210.7 j 304 j 391.3 136.1 0.0-— 17 ; 2.0 30 I 2.0 40 to 49.9 148 302.4 135.3 ! 212 j 269.1 119.4 Less than 5 13 i 2.1 .1 i 6 .6 .02 50 to 59.9.... 58 125.2 66.8 j 87 , 106.9 58.1 5 to 9.9 26 4.2 .3 1.6 .1 60 to 79.9 33 59.6 39.6 ! 80 | 96.3 64.5 10 to 19.9 88 < 12.7 2.0 6.9 1.1 80 and over. 2 2.2 1.8 ! ! 20 to 29.9 108 15.9 3.9 94 9.7 2.5 30 to 39.9 130 ' 19.4 6.8 102 11.2 4.0 40 to 49.9 148 22.0 9.8 122 13.8 6.2 BANKS WTITH LOANS AND INVESTMENTS 6 5 0 0 t t o o 7 5 9 9 . . 9 9 1 1 1 0 4 9 : 1 1 5 4 . . 1 3 8 9 . . 2 8 1 16 3 5 5 1 1 6 4. . 6 9 1 8 1 . . 0 7 OF $5,000,000 TO $10,000,000 80 and over 32 : 3.8 3.3 52 5.7 4.9 Total 415 2,880. 5 1, 965. 8 333.1 BANKS WITH LOANS AND INVESTMENTS 0.0 2 13.7 32.5 OF $200,000 TO $500,000 Less than 5 31 214.2 8.9 54 251.8 5 to 9.9 90 609.9 46.0 100 441.5 33.6 10 to 19.9 164 1,134.0 168.6 130 651.8 94.4 Total 2,136 725.8 233.* 2,136 494.1 190.0 20 to 29.9 67 486.4 122.9 68 318.6 78.1 30 to 39.9 38 262.7 90.2 25 126.6 44.1 0.0 40 13.8 89 17.1 40 to 49.9 12 78.2 34.8 15 68.0 29.2 Less than 5 115 40.9 1.2 63 12.9 .3 £0 to 59.9 _ 5 35.3 20.0 6 24.8 13.3 5 to 9.9 122 43.9 3.4 99 22.0 1.6 60 to 79.9 6 46.2 30.0 I j 50.3 33.9' 10 to 19.9... 343 121.7 18.1 238 56.2 8.5 80 and over... 20to29.9___ 383 132.0 33.0 344 82.8 20.7 30 to 39.9... 390 131.9 45.8 ! 327 76.3 26.6 40 to 49.9... 303 101.5 45.4 321 75.0 33.7 BANKS WITH LOANS AND INVESTMENTS 50 to 59.9... 226 71.1 38.6 267 61.1 33.5 OF $10,000,000 TO $50,000,000 60 to 79.9... 192 61.9 41.9 317 73.8 £0.8 80 and over. 22 7.0 5.9 j 71 16.9 14.4 1 Total... 341 6,857.3 1,271.9 341 5,168.2 798. BANKS WITH LOANS AND INVESTMENTS 0.0 1 20.8 3 37.8 OF $500,000 TO $1,000,000 Less than 5 17 307.2 10.9 46 698.2 18.0> 5 to 9.9 64 1,321.8 102.1 69 1,063.3 78.6 10 to 19.9 133 2, 593. 0 386.1 131 2,013.1 300. 7 Total. 1,987 1,426.7 360.1 1,987 907.2 275.4 20 to 29.9 73 1,575.1 384.0 53 821.1 199.1 30 to 39.9 38 730.2 246.3 30 424.3 145. 5. 0.0 20 13.7 90 34.9 40 to 49.9 10 239.7 100.2 5 63.1 29.2 Less than 5. 173 127.9 3.8 130 58.0 1.6 50 to 59.9 3 48.6 27.6 2 26.0 13. $ 5 to 9.9 224 162.0 12.5 155 69.1 K 5 60 to 79.9 2 20.9 14.7 2 21.4 13.® 10 to 19.9 ^75 346.2 50.0 374 171.4 25.'9 80 and over _ 20 to 29.9.... 362 267.0 65.7 338 155.4 38.9 30 to 39.9.... 302 213.5 73.7 281 134.5 46.5 40 to 49.9 220 152.1 67.8 246 113.9 50.8 BANKS WITH LOANS AND INVESTMENTS 50 to 59.9.... 120 82.4 44.9 175 80.5 44.2 OF $50,000,000 AND OVER 60 to 79.9.... 83 56.4 37.2 171 77.8 52.4 80 and over. 8 5.6 4.6 27 11.7 9.7 Total. 91 17,963.9 4,110.6 91 13,717.6 2,043.8 BANKS WITH LOANS AND INVESTMENTS 0.0 OF $1,000,000 TO $5,000,000 Less than 5. 175.1 5.6 1,178.4 40.5 5 to 9.9. 699.6 57.2 2,220. 9 169.1 10 to 19.9— _ 6,862. 7 1,116.8 6,874.5 978.8 Total 2,767 i 5,956.6 j 1,095.5 2,767 3, 797.8 749.6 20 to 29.9..._ 7, 206.4 1,868.8 3,107.3 714.8 30 to 39.9.._. 2, 373.3 788.7 119.4 40.7 O.O.. 19 I 36.7 104 131.0 40 to 49.9 646.8 273.4 106.1 44.4 Less than 5___ 315 | 679.8 ! 20.3 368 521.1 13.9 50 to 59.9.... 111.1 55.5 5 to 9.9 551 j 1,193.9 '• 90.3 423 611.4 46.4 60 to 79.9_... 10 to 19.9 826 i 1,882.2 \ 271.2 723 1, 066.9 155.7 80 and over. 1 Exclusive of securities pledged against national bank note circulation* Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

410 FEDERAL RESERVE BULLETIN JULY, 1930 TABLE III.—MEMBER BANKS IN EACH FEDERAL RESERVE DISTRICT CLASSIFIED BY (A) RATIO OF ELIGIBLE PAPER PLUS GOVERNMENT SECURITIES1 TO LOANS AND INVESTMENTS: DECEMBER 31, 1929 Federal Reserve District Ratio (percent) All districts 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 i o n l n is e-K C an it s y as Dallas F c S i r s a a c n n o - NUMBER OF BANKS Total _ 8,522 404 931 764 795 514 528 1,186 571 683 893 746 607 0. 0 99 3 12 25 22 12 4 8 4 3 4 2 Less than 5 666 57 135 133 151 35 5 46 45 17 1 3 38 5 to 9.9 1,083 107 203 200 197 64 19 110 73 42 9 11 48 10 to 19 9 2,065 153 •313 235 239 148 82 329 149 129 59 55 174 20 to 29.9 1,529 55 170 102 102 103 90 266 133 146 151 87 124 30 to 39.9 1,219 21 61 51 61 76 92 173 75 141 232 123 113 40 to 49.9 846 5 27 10 16 44 64 128 45 105 190 143 69 50 to 59.9 526 3 6 4 4 17 36 80 25 58 140 125 28 60 to 79.9 -_ 425 4 4 3 12 31 41 18 40 101 161 10 80 and over 64 3 5 5 4 2 10 34 1 CUMULATIVE PERCENTAGES Total 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 0.0 1.2 .7 1.3 3.3 2.8 2.3 .9 .7 .7 .4 0.0 .5 .3 Total, holding paper and Government securities 98.8 99.3 98.7 96.7 97.2 97.7 99.1 99.3 99.3 99.6 100.0 99.5 99.7 •5 and over _ _ _ 91.0 85.1 84.2 79.3 78.2 90.9 97.9 95.4 91.4 97.1 99.9 99.1 93.4 10 and over 78.3 58.7 62.4 53.1 53.5 78.4 93.5 86.2 78.6 90.9 98.9 97.6 85.5 20 and over 54.1 20.8 28.8 22.4 23.4 49.6 74.3 58.4 52.5 72.0 92.3 90.2 56.8 30 and over 36.1 7.2 10.5 9.0 10.6 29.6 53.3 36.0 29.2 50.7 75.4 78.6 36.4 40 and over _ -- 21.8 2.0 4.0 2.4 2.9 14.8 31.8 21.4 16.1 30.0 49.4 62.1 17.8 SO and over,. 11.9 .7 1.1 1.0 .9 6.2 16.8 10.6 8.2 14.6 28.1 42.9 6.4 60 and over 5.7 .4 .5 .4 2.9 8.4 3.9 3.9 6.1 12.4 26.1 1.8 80 and over .8 .6 1.2 .4 .7 .3 1.1 4.6 .2 i Exclusive of securities pledged against national-bank note circulation. TABLE IV.—MEMBER BANKS IN EACH FEDERAL RESERVE DISTRICT CLASSIFIED BY (B) RATIO OF ELIGIBLE PAPER TO LOANS: DECEMBER 31, 1929 Federal Reserve District Ratio (per cent) A tr ll i c d t i s s- Boston Y N o e r w k d P e h lp il h a i - a C la le n v d e- m Ri o c n h d - la A n t t - a c C a h g i o - L S ou t. is M ap i o n l n is e-K C an it s y as Dallas F c S i r s a a c n n o - NUMBER OF ]BANKS Total. 8,522 404 931 764 795 514 428 1,186 571 683 893 746 607 0 0 324 15 34 87 84 25 8 27 12 7 6 19 Less than 5 678 59 128 135 177 31 4 45 50 12 2 2 33 5 to 9.9 - 875 76 160 121 155 53 18 122 67 27 8 11 57 10 to 19 9 1,702 142 233 189 191 128 79 237 151 103 56 60 133 20 to 29 9 1,371 63 146 99 79 102 71 215 105 141 132 85 133 30 to 39.9 1,071 24 94 57 57 69 72 173 74 117 168 81 85 40 to 49.9 923 17 60 40 28 51 70 142 52 98 171 125 69 50 to 59 9 673 5 37 15 11 29 47 96 29 85 147 126 46 60 to 79.9 - -- 744 3 30 20 12 22 51 110 25 76 183 185 27 80 and over 161 9 1 1 4 8 19 6 17 26 65 5 CUMULATIVE PERCENTAGES Total - 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 00 3.8 3.7 3.7 11.4 10.6 4.9 1.9 2.3 2.1 1.0 0.0 9.8 3.1 Total, holding paper 96.2 96.3 96.3 88.6 89.4 95.1 98.1 97.7 97.9 99.0 100.0 99.2 96.9 5 and over 88.2 81.7 82.6 70.9 67.2 89.1 97.2 93.9 89.1 97.2 99.8 98.9 91.4 10 and over 78.0 62.9 65.4 55.1 47.7 78.8 93.0 83.6 77.4 93.3 98.9 97.5 82.0 20 and over. --- 58.0 27.7 40.4 30.4 23.6 53.9 74.5 63.7 51.0 78.2 92.6 89.4 60.1 30 and over 41.9 12.1 24.7 17.4 13.7 34.0 57.9 45.5 32.6 57.5 77.8 78.0 38.2 40 and over 29.3 6.2 14.6 9.9 6.5 20.6 41.1 30.9 19.6 40.4 59.0 67.2 24.2 50 and over 18.5 2.0 8.2 4.7 3.0 10.7 24.8 19.0 10.5 26.1 39.9 50.4 12.9 60 and over 10.6 .7 4.2 2.7 1.6 5.1 13.8 10.9 5.4 13.6 23.4 33.5 5.3 80 and over - 1.9 1.0 .1 .1 .8 1.9 1.6 1.1 2.5 2.9 8.7 .8 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

411 JULY, 1930 FEDERAL RESERVE BULLETIN EARNINGS AND EXPENSES OF MEMBER BANKS The combined net profits of all member banks six months. This increase in earnings was in the Federal reserve system, at $260,664,000 only partially absorbed by growth in expenses, for the last 6 months of 1929, were about and net earnings before charge-offs and $35,186,000 smaller than for the first half of recoveries were $24,000,000 larger than in the the year but larger than any earlier half-year first half of the year. As has been the case in period on record. The net return was at the recent years, losses charged off during the last rate of 8 per cent per annum on the banks' half of the year were considerably larger than capital funds,1 as against a rate of 9.3 per cent for the previous six months. for the first half of 1929 and 8.6 per cent for Summary for the year 1929.—Member bank the last half of 1928. profits for the entire year 1929 amounted to Earnings and expenses of all member banks $557,000,000—an increase of more than are summarized for 6-month periods since July $50,000,000 over 1928. These profits repre- 1, 1928, in the accompanying table. The sented a return of 8.75 per cent on the banks' figures are based upon required semiannual capital funds, w^hich averaged about $6,360,reports—submitted, in the case of national 000,000 during the year. The rate of return banks, to the Comptroller of the Currency was somewhat lower than in 1928, comparing and, in the case of State bank members, to the with 8.96 for that year. Earnings and expenses Federal Reserve Board. of member banks, by classes of banks, are summarized in the following table and are pre- EARNINGS AND EXPENSES OF ALL MEMBER BANKS sented on page 476 of this issue of the BULLETIN. JULY 1, 1928, TO DECEMBER 31, 1929 [In thousands of dollars] EARNINGS AND EXPENSES OF MEMBER BANKS DURING 1929 Last 6 months of 1929 [In thousands of dollars] cr I e n a c s r e e w , a i s c t e h o — m or p d a e re - d j m Fi o r n st t h 6 s m L o a n st t h 6 s b A e l r l b m a e n m ks - N m b a e a t m i n o k b n s e a r l S b t e a r t e b a m n e k m s - ! of 1929 i of 1928 'Amount First 6 | Last 6 Gross earnings: months months • Interest earned 2,068,901 1,247,125 821, 776 of 1929 I of 1928 All other earnings_ 405,198 196,178 209,020 Total.... -. 2,474,099 1,443, 303 1,030, 796 Gross earnings.. .;1, 276,136 + 8,173+102, 453,1,197,963 1,173, 683 Expenses 1, 683, 720 987,140 696, 580 Expenses •__. . '• 869,087 +544,454; +41,946; 814, 633! 827,141 Net earnings 790, 379 456,163 334, 216 Net earnings. j 407,049+23,719; +60,507! 383,330; 346,542 Losses 295,473 200,633 94,840 L Lo o s s s s e e s s o o n n lo in a v n e s s tments... 1 1 7 5 9 6 , ,4 98 6 5 3 + + 1 20 7 , , 4 3 6 8 1 2 ! : + + 3 14 2 , , 69 39 0 7 , 1 3 59 9 , , 0 6 0 0 2 3 ; ! 6 2 5 3 , , 7 5 7 8 3 8 Recov N er e ie t s l . osses.. 2 6 3 1 3 , , 8 6 6 0 5 8 16 3 4 5 , ,8 7 5 7 4 9 25, 754 All other losses. _i 35,620+10,"' +2.3061 24, 800'. 33,314 Net profits. 556, 514 291, 384 265,130 Total losses ' 172,068+48,663+49,393! 123,405 122,675 Loans and investmentsl | 35,727,128 21, 751, 748 13,975, 380 Recoveries on loans. j 12,122 -960 -1,0731 13,082 13,195 Capital funds i2 6,360,306 3, 750, 521 2, 609, 785 Recoveries on invest- j ments ! 6,179 -7,598. -4191 Increase or decrease in 1929 as com- All other recoveries i 7,382 -1,684 +1,510! pared with 1928 Total recoveries...' 25,683-10,242: +18 35,925 Gross earnings: Netlosses1 __j 146, 385 +58, 905! +49, 375! 87,480; 97,010 Interest earned +163,173 +35,866 +127,307 All other earnings. +26, 928 +5, 966 +20, 962 Net profits ; 260,664 -35,186! +11,132, 295,850 249, 532 Total +190,101 +41,832 +148, 269 Expenses +69, 909 +70, 508 1 Total losses charged off, less recoveries on assets previously charged Net earnings ; +120,192 +42,431 +77, 761 off. Losses +78, 279 +42,379 +35,900 +10,733 | +572 +10,161 The decline in profits during the last half of Recoveries. Net losses.. +67,546 +41,807 I +25, 739 1929 reflects increase in expenses and losses, which more than offset a considerable increase Net profits. +52,646 ! +624 +52,022 in gross earnings. At $1,276,000,000, gross Loans and investments J +1,005,249 -106,502 +1,111,751 earnings were the largest on record—more Capital funds j +737,994 +206,912 +531,082 than $78,000,000 larger than in the preceding 1 Averages of amounts from reports of condition for 5 call dates, Dec. 31, 1928. to Dec. 31, 1929; loans and investments exclusive of bills sold with indorsement. i Capital, surplus, and undivided profits, including reserves for divi- 2 Capital, surplus, and undivided profits, including reserves for dividends and contingencies and excluding reserves for interest, taxes, and dends and contingencies, and excluding reserves for taxes, interest, and other expenses accrued. other expenses accrued. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

412 FEDERAL RESERVE BULLETIN JULY, 1930 Reflecting higher rates of interest prevailing and which, as already noted, declined in 1929. in 1929, as well as increase in the volume of In 1929 there was an excess of losses on investmember bank loans, gross earnings for the year ments over the profits on securities sold and showed a gain of $190,000,000 over 1928. An recoveries on investments of $403,000 as comincrease of $190,000,000 in interest earned on pared with an excess of profits and recoveries loans and discounts over the previous year, of about $55,000,000 in 1928. offset in part by a decrease of $25,000,000 in Operating ratios.—As has already been interest earned and dividends on investments, indicated, changes in the actual amounts of accounts for the largest part of the increase in member bank earnings and expenses are gross earnings. Other forms of earnings showed affected, to a considerable degree, by change in an increase of $27,000,000 in the aggregate; the volume of the banks' operations. In the commissions received, trust department earn- following table items of earnings and expenses ings, and sundry earnings were substantially are stated as percentages of the banks' princilarger than during the previous year, while pal earning assets—their loans and investprofits on securities sold were $15,000,000 ments—in order to eliminate the effect of change smaller. These figures are given in detailed in the volume of operations (as measured, tables published elsewhere in this issue of the approximately, by the volume of earning assets) BULLETIN. from comparisons between the two years. The While the growth in the volume of member ratios show, in effect, the earning power of a bank loans was reflected in larger gross earn- unit of $100 of active bank assets. ings, the attendant increase in the volume of their deposits and borrowings involved larger OPERATING RATIOS FOR THE YEARS ENDING DECEMinterest payments, which account for $25,000,- BER 31, 1928 AND 1929 000 of an increase of $70,000,000 during 1929 in total expenses. Member bank deposits [Owing to revision of the loan and investment figures underlying these ratios to exclude bills sold with indorsement, the ratios are not comwere on the average $625,000,000 larger in parable with those published for years prior to 1927—the latter as republished in August, 1929, BULLETIN] volume during 1929 than in 1928, a large part of the increase being in time deposits, which b d e ep ar o s h i i t g s h . er A ra s te a s r o e f s u in lt t , e r i e n s te t r t e h s a t n p o a t i h d e r t o f o d rm ep s o o s f - All b m an e k m s ber N m b a e a t m i n o k b n s e a r l S b t e a r t e b m an e k m s itors, including correspondent banks, increased from $750,000,000 to $759,000,000. Compari- 1929 1928 1929 1928 1929 1928 son of aggregate figures indicates that rates at which deposit interest was paid remained at the Per $100 of earning assets * level prevailing in 1928. Interest paid on Gross earnings: borrowed money showed an increase of about Interest earned $5.79 $5.49 $5.73 $5.54 $5.88 $5.40 $16,000,000. This was due to an increase in All other earnings 1.13 1.09 .90 .87 1.50 1.46 the volume of member bank borrowing at both Total 6.92 6.58 6.64 6.41 7.38 6.86 Expenses 4.71 4.65 4.54 4.52 4.98 4.87 the Federal reserve and other banks, and to increase in the prevailing rate of discount; the Net earnings 2.21 1.93 2.10 1.89 2.39 1.99 rate charged by reserve banks on discounts for "Losses .83 63 ft? .72 .68 .46 member banks averaged 5 per cent in 1929 as Recoveries .17 .15 .16 .16 .18 .12 against 4.56 in 1928. Expenditures for salaries Net losses .65 .48 .76 .56 .49 .34 and wages and sundry expenses also increased Net profits 1.56 1.45 "L33~ 1.90 1.66 substantially during the year, reflecting in part the larger volume of bank operations. Per $1 of capital funds Losses were $78,000,000 larger in 1929 than in the preceding year, the larger part of the Earning assets _ $5.62 $6.18 $5.80 $6.17 $5.35 $6.19 increase occurring in losses on investments. Recoveries on assets previously charged off Per $100 of capital funds were somewhat larger in 1929 than in 1928, and net losses (losses less recoveries) showed an Net profits« $8.75 $8.96 $7.77 $8.21 $10.16 $10.25 increase of $68,000,000. This comparison does » Total loans and investments, excluding bills sold with indorsement. not take into account profits on securities sold, 1 Equivalent to the product of the 2 preceding ratios, i. e., of the ratios which are reported among the banks' earnings shown for net profits per $100 of earning assets and earning assets per $1 of capital funds. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

JULY, 1930 FEDERAL RESERVE BULLETIN 413 The fact that improvement in gross earnings ments, and deposits with which amounts of resulted in part from higher rates of interest interest are compared are averages of figures prevailing in 1929 as compared with 1928 is for five call dates, and thus will be only approxibrought out by the table, which shows an in- mations of the amount upon which interest was crease in the amount of interest earned per earned and paid. $100 of earning assets for both national and State member banks; the increase for all mem- INTEREST EARNED AND DEPOSIT INTEREST PAID BY ber banks taken together was from $5.49 to MEMBER BANKS DURING THE YEARS ENDING DECEMBER 31, 1928, AND 1929 $5.79. Other earnings show an increase, and gross earnings at $6.92 per $100 of earning as- Approxisets in 1929 compare with $6.58 in 1928.^ Out Amounts (in thou- mate rates of gross earnings larger expenses were paid and sands of dollars) 1 (per cent) J losses written off, while net profits increased from $1.45 to $1.56. This increase in the mar- ! 1929 1928 1929 1928 gin of profits was not fully reflected in a proportional increase in profits on capital funds, Inter O e n st lo an an d s d 3 iscount earned: il, 562, 7691,374,130 6.1 5.7 owing to the fact that capital funds increased On investments. - 472,868 498,420 4.7 4.7 much more rapidly during the year than did Total 2, 035,6371,872, 550 5.7 5.4 earning assets. In 1929 the banks had $5.62 On balances with other banks 33,264 33,178 1.7 1.4 of earning assets per $1 of capital funds as Interest paid on deposits: Time 444, 636 439,384 3.3 3.3 against $6.18 in 1928. Profits of $1.56 per Demand 246,493 234,926 1.3 1.3 $100 of earning assets in 1929 represented a Bank* _ _ 68,131 75, 352 1.8 1.8 return of 8.75 per cent on the banks' capital Total 759,260 749, 662 2.1 2.1 funds, while profits of $1.45 per $100 of earning assets in 1928 represented a return of 8.96 per i Figures for interest earned and interest paid include small amounts which were unclassified in the reports of some State banks in 1928, and cent on capital funds. The table shows little which have been apportioned, by Federal reserve districts, on the basis of the distribution of the classified amounts. change from the previous year in the margin of 'Obtained by dividing amounts of interest (adjusted) by averages profits on earning assets for national banks, of 8 t h O e w a i m ng o t u o n r t e s v o i f s i r o e n la o t f e d fi g a u ss re e s ts f o a r n d lo a d n e s p o th s e it s a p fo p r r o 5 x c i a m ll a d te a t r e a s t . es of interest while the profit margin for State member banks received on loans and on loans and investments are not comparable with those published previous to 1927, as republished in August, 1929, was somewhat wider. Both groups of banks BULLETIN. showed a lower rate of return on capital funds * Owing to revision of figures for bank deposits to include amounts due to foreign banks approximate rates of interest paid are not comthan in 1928. parable with those published previous to 1927, as republished in August, 1929, BULLETIN. Interest earned and deposit interest paid.— Banks continued in 1929 to report interest More detailed statistics of earnings and exearned classified as between amounts earned penses of member banks for 1928 and 1929 are on loans, investments, and balances with other presented on pages 476-481 of this issue of the banks, also interest paid on deposits classified BULLETIN.2 as between interest paid on time, demand, arid »Statistics of member bank earnings and expenses, together with bank deposits. Comparison of amounts of in- some analytical material, have been published in previous issues of the terest earned and paid with the assets and de- BULLETIN. (See pp. 402-405 of the issue for June, 1925; pp. 869-873 of the issue for December, 1925; pp. 409-414 of the issue for June, 1926; posits to which in general they relate indicates pp. 22-28 of the issue for January, 1927; pp. 460-463 and 549-553 of the issue for July, 1927; pp. 830-832 and 882-885 of the issue for December, approximately the average rates that were 1927; pp. 450-452 and 536-539 of the issue for July, 1928; and pp. 826-828 effective during the year period. Such rates and 877-881 of the issue for December, 1928; pp. 530-532 and 587-592 of the issue for August, 1929; and pp. 49-50 of the issue for January, 1930.) are presented in the following table. It should Statistics for calendar years 1923-1928 were published in the annual report of the Federal Reserve Board for 1929, pp. 127 and 128; for years be noted that these rates are derived by com- ending June 30, 1925-1929, on pp. 201-203. Detailed figures for national parisons of aggregates, and that loans, invest- banks are published in the annual reports of the Comptroller of th« Currency. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

414 FEDERAL RESERVE BULLETIN JULY, 1930 BALANCE OF INTERNATIONAL PAYMENTS OF THE UNITED STATES The Department of Commerce has recently many unexcelled for security and a great many published its compilation of the balance of others unexcelled in their prospects for capital international payments of the United States in appreciation. Each year sees a growth in the 1929 (Trade Information Bulletin, No. 698, number of them listed on foreign stock exby Ray Hall, 66 pages). It includes, in addi- changes. Foreign trading on American stock tion to a full discussion of the data and methods exchanges—purchases and sales—during the used in making the estimates, revised figures year totaled well over $4,000,000,000. for previous years, as shown by the accompany- The most important event in our foreign ing table. The study is introduced with a dealings during 1929 was the reduction of foreword by the Secretary of Commerce, R. P. $561,000,000 in our net capital export. For Lamont, which is as follows: the third time in seven years the year's fluctua- Changes in our foreign trade in commodities tion in the United States net export of capital during 1929 were not very significant as regards was above half a billion dollars. The change of aggregate values for the year as a whole. The $550,000,000 in 1924 and that of $514,000,000 excess of exports declined by $196,000,000 from in 1927 were both increases, and the effect was, the extremely high figure for 1928. In terms of course, very different from the effect of the of quantity, both exports and imports made decrease of 1929. That decrease was no doubt new high records for all time. In terms of in part responsible for some of the fiscal and value, merchandise exports increased by $113,- foreign exchange difficulties of certain foreign 000,000. Merchandise imports increased con- nations, for some of the world-wide recession of siderably more, by $309,000,000—a movement business, and for some of the reduction in our which may reflect the unusual excess of the merchandise exports during the latter part of yield of foreign investments over the net export the year and early in 1930; it may also have of capital. contributed to the wTorld decline in commodity The most interesting developments in the prices. cash dealings of the United States with for- The gold inflow during the 15 months ended eigners in 1929 had to do with the invisible with last October was one major result of this items. The big current invisibles are getting marked decline in our capital exports. The net bigger. American tourist expenditures abroad inflow of gold during that period was $307,000,established a new high record—as did the yields 000, equal to about 3 per cent of the total gold of investments, both the credit item and the stock of the world. Delivered in this country, debit item. The annual yield of American in- after it had reduced the credit bases and purvestments abroad is now estimated at only chasing power of the outside wTorld, the gold slightly less than a billion; and the yield of for- apparently served no useful purpose; it merely eign investments in the United States seems to enhanced our already large stock of "free gold." have risen in 1929 to something like $414,000,- Certainly any practicable means to lessen the 000, partly due to the high interest rates of the fluctuations in the capital exports of our Nation year on the three billions of foreign short-term should receive earnest attention. funds deposited or "put out" in our market. Despite the diligence of the department staff The private debts of United States citizens in preparing these annual surveys, the resulting to foreigners, approximately $7,500,000,000 are picture shows only a general perspective. It is now greater than at any other time in Amer- w^ell to repeat the compiler's warning that some ican history. That means, of course, that in of the results are expressed in precise figures absolute amount we are now the greatest debtor "partly for identification." Range estimates— nation (on private account) in the world's his- maximum and minimum—would be preferred, tory, although on the net balance we are one were they less clumsy to handle. One can of the most important creditor nations. The best appreciate the magnitudes involved by increase of foreign funds in the United States comparing them one with another. Thus, w^e during 1929 wras apparently slightly above find that in 1929 the trade balance could have $400,000,000. One looks forward to the pos- been financed by the gross expenditures of sibility of increases of the same order in the American tourists abroad; that the net yield years to come, for foreigners can always find of investments could have been financed by among American stocks and bonds a great our underwriting of new foreign securities; that Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

JULY, 1930 FEDERAL RESERVE BULLETIN 415 the war-debt payments could have been really a new branch of economic science. If financed by immigrant remittances, or by our the leading countries of the world, including payments for ocean freights; and so on. the United States, had all begun similarly It is no longer necessary to justify these in- painstaking statements 20 years ago, some of vestigations of our international economy. the controversies on international finance in They have gone far toward developing what is late years might never have arisen. BALANCES OF INTERNTIONAL PAYMENTS OF THE UNITED STATES, CALENDAR YEARS 1923-1929 [In millions of dollars] 1929 Class of transactions (gross or net) 1923 1924 1925 1926 1927 1928 (unrevised) COMMODITIES (ADJUSTED) Exports,. 4,368 4,834 5,177 5,044 i 5, 091 5,333 5,490 Imports.. 4,162 3, 952 4,544 4,766 : 4, 508 4,483 4, 756 Balance of trade (adjusted).. +206 +882 +G33 +278 ! +5S3 +850 +734 MISCELLANEOUS INVISIBLE ITEMS Freights: Ocean, Great Lakes, and railway (net) _. -83 -64 -84 -95 I -m -SO -115 Expenditures by American tourists: Canada and Mexican frontier _ __ -131 -159 -185 -201 -231 -288 -322 Overseas _ -313 -374 -400 -422 : -465 -516 -517 Expenditures by foreign tourists in United States +104 +107 +112 +148: + 1C3 +163 +180 Ocean-borne passenger traffic l +e;o +53 +63 +69 +89 +89 +94 C I I O I O W W n n m h t t t t a a h h m a e e r r e e r r r - - i r r e i e d d g t s s a g e e i r t t t b b b a o e o o t t n l v m e n n t e r r s e e r a r f A c n c o e n ( e e m m m r n d e i i e p p i e e i m g t t t t r n ) s t s n i 2 a i t c s a n ( ( a f s l i p c u n i n r t o e n t r i s p n e n d a r a r c s n e ( i r i s n v s y p i a e t n a a ) c t c t ) l t e U ) o i — o n f n u n t i r n s t i e d b d ( s u n t e S a i t o b t ) a . n r _ t o s e _ a s _ d ( _ l ( o lo n n g g a a n n d _ d s s h h o o rt r t t e te rm rm ) ) _ _ _ + + - - I + + 2 - - 5 1 S 7 6 2 5 9 9 6 O 0 6 9 7 2 4 7 + + - - + + 2 1 - - 1 6 5 5 2 9 6 2 6 3 5 3 9 2 8 3 0 5 + + - - + + 2 2 - - 6 1 5 6 2 3 7 2 8 6 0 1 9 5 4 6 9 0 + + - - + + 2 2 - - 1 7 4 4 1 6 3 C 7 4 6 9 8 8 5 4 0 0 ; + + - - + + 2 2 - - 1 8 4 2 0 8 C 4 7 0 9 9 6 1 6 4 0 0 + + - - + 2 + 3 - - 1 8 5 5 5 2 5 2 5 9 7 1 9 5 0 4 7 3 + + - - + + 4 2 - - 9 1 4 9 1 2 2 6 7 4 9 2 4 3 5 2 6 5 Total, commodity and miscellaneous (net). +208 +802 +513 ! +205 | +588 j +f50 j +484 NEW PRIVATE LOANS, INVESTMENTS, AND DEPOSITS Net increase in American long-term investments abroad (par value) -258 -872 -972 ! -1,318 ! Deduct bond discounts and underwriters' commissions on above +48 +125 +119 +121 +119 ! +122 ; +26 Net cash payments for above _ -210 -744 -753 -687 -853 | -1,196 I -782 Net increase in long-term foreign investments in United States +240 +11 +193 +147 +158 I +488 j +396 Change in net debt of American banks to foreigners.- +3 +216 -61 +359 -226 ! +13 Net capital movement (long and short term) +33 -517 -621 -934 -373 OTHER BALANCING ITEMS Gold shipped or earmarked (net) -295 -216 +102 +154 +272 -120 S A h d i d p m fo e r n n ts e t o d f i A sc m re e p r a ic n a c n y p d a u p e e r t o m in o a n c e c y u r ( a n t e e t ) figures 3 + + 5 4 0 - -4 2 9 0 + -3 3 0 6 +12 1 Largely a deduction from American tourist expenditures overseas. 2 Includes insurance, motion-picture royalties, cable charges, Canadian electric power, press subscriptions, patents and copyrights, and advertising. 3 Each of these net discrepancies was two and one-half times as large in the preliminary revision. Thus there was a change from —119 in 1926 to +118 in the next year—a total range of error of 237. Such a range of error being hardly admissible in the "current" items, it was presumed that most of the original net discrepancies, in those two years at least, resulted from errors in the four " capital" items known to be least reliable. Therefore, the revised estimates of those four items were all altered according to uniform ratios which would eliminate 60 per cent of each year's preliminary net discrepancy. This is a partial acceptance of the British method of deriving captial-movernent estimates from estimates of the current items. 120082—30 4 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

416 FEDEEAL EESERVE BULLETIN JCLT, 1930 NATIONAL SUMMARY OF BUSINESS CONDITIONS [Compiled June 21 and released for publication June 25] The volume of industrial production de- May by substantial increases in the prices of clined in May by about the same amount as grains, meats, and livestock, but became proit increased in April. Factory employment nounced about the middle of June when the decreased more than is usual at this season, prices of cotton, silk, rubber, copper, and and the downward movement of prices con- silver reached exceptionally low levels. Wheat, tinued. Money rates eased further, to the meats, livestock, and cotton textiles also delowest level in more than five years. clined in price at that time, while prices of wool Industrial production and employment.— and woolen goods, pig iron, and steel showed The board's index of industrial production, little change. adjusted for usual seasonal variations, declined Bank credit.—Loans and investments of reabout 2 per cent in May. In 1930 industrial porting member banks increased further by production has fluctuated between 4 and 7 per $265,000,000 in the four weeks ending June 11, cent above the 1923-1925 average, and the to a level considerably higher than a year ago. preliminary estimate for May is 4 per cent The increase was entirely in investments and above the average for those years. Production in loans on securities, of which a large part at steel and automobile plants declined, cotton represented loans made by New York City mills curtailed output, and activity at woolen banks to brokers and dealers in securities, in and silk mills continued at low levels. Cement replacement of loans withdrawn by other production increased sharply, while output of lenders. "All other" loans continued to depetroleum and of copper showed little change. cline, and at $8,400,000,000 on June 11 were In the first half of June output at steel plants the smallest since 1926. declined further. Expansion of member bank credit during this The decrease in factory employment in May' period was reflected in larger demand deposits was larger than usual, and there was also a and an increase of $30,000,000 in member decline in factory pay rolls. The number em- bank reserves at the reserve banks. The ployed in the cotton and silk goods industries de- volume of money in circulation showed a net creased further, while in the woolen-goods in- increase of $13,000,000. Funds for these uses dustry there was an increase from the extreme were obtained largely from further additions of low point of April. Employment in the agricul- $24,000,000 to the stock of monetary gold and tural implement and electrical machinery indus- from an increase of $22,000,000 in the volume tries decreased from April but remained large of reserve-bank credit outstanding. Reserverelative to earlier years. Employment in the bank holdings of United States securities incement industry increased, but in the lumber creased by about $50",000,000, and their holdindustry continued at an unusually low level. ings of acceptances declined by about one-half Building contract awards in May, as re- this amount. For the week ending June 18 the ported by the F. W. Dodge Corporation, con- total volume of reserve-bank credit declined tinued to be in substantially smaller volume somewhat, and there was a decline in the than in any other year since 1924. volume of money in circulation. Distribution.—Freight-car loadings increased Money rates in the open market continued by less than the usual seasonal amount during to decline during the latter half of May and May and continued to be in somewhat smaller the first half of June, and at the middle of the volume than in the corresponding period of 1928 month commercial paper at 3K~3% per cent and substantially below the unusually active and acceptances at 2}i per cent wTere at the lowest period of 1929. Department-store sales in levels since 1924 and early 1925. Bond yields May were approximately the same as those of a moved slightly lower in June. In the first year ago. week of June the rediscount rate at Cleveland Wholesale prices.—A further decline in the was reduced from 4 to 3K per cent, in the third wholesale prices of commodities occurred in week the rate at New York was reduced from May and the first half of June. The downward 3 to 2y per cent, and the rate at Chicago from 2 movement was interrupted in the last half of 4 to 3% per cent. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

417 JtrtT, 1930 FEDERAL RESERVE BULLETIN FEDERAL RESERVE BANK CREDIT RESERVE BANK CREDIT OUTSTANDING AND PRINCIPAL FACTORS IN CHANGES MILLIONS OF DOLLARS MIUIOHS OF DOLLARS 1926 1927 1928 1929 1930 Bastd on weekly averages of daily figures; latest figures are for week end'ng June 28 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

418 FEDERAL RESERVE BULLETIN JULY, 1930 RESERVE BANK CREDIT OUTSTANDING AND FACTORS IN CHANGES [Averages of daily figures. In millions of dollars] Reserve bank credit outstanding Factors of decrease * Factors of increase * Month or week B co il u ls n t d e i d s- bo B u il g ls ht ' ! i s U e S c n t u a i r t t i e e t d s ies c r O e b r s e a t e h d n r e k v i r t e ' Total I ; ! M s o g t o n o l e c d k taryT c j u r u e r ( s r a a t e e d s n u d - c ) r y y in M l a o c ti i n o r e c n y u- M b r a e b e l s a a m e n n r b c k v e e e s r d m e N e e p o m t o c n s b . i - t e s r , p c U f e a u n p n n d e i d t x e a s d - l 1929—January _ 859 473 229 1,613 4,115 1,789 4,748 2,387 i 351 February 385 184 1,502 4,143 1,784 4,686 2,357 I 357 March.- _ 265 197 1,481 4,166 1,791 4,709 2,337 i 361 April 1,004 156 165 1,377 4,226 1,785 4,679 2,308 ; 366 May 956 145 153 I 1,303 4,292 1,787 4,684 2,296 ! 370 June 978 99 179 1, 317 4,311 1,779 4,687 2,314 ! 376 July... - 1,096 75 147 1,380 4,335 1,790 4,764 2,334 376 August _ 1,043 124 155 i 1, 376 4,351 1,781 4,777 2,322 382 September 969 229 165 ! 1,427 4,368 1,766 4,811 2,335 387 October 885 337 154 i 1,450 4,381 1,785 4,810 2,386 November 953 296 315 j 1,631 4,374 1, 789 j 4,845 2,521 December _. 803 320 446 1,643 4,324 1,797 I 4,943 2,395 399 1930— F J e a b n r u u ar a y ry 3 6 7 0 8 1 2 3 8 1 5 4 4 1 8 8 0 5 ; 1 1, , 1 3 8 5 1 7 4 4 , , 3 2 1 8 9 3 1 1 , , 7 7 8 8 4 1 ; j 4 4 , , 5 6 5 5 6 2 2 2 , , 3 3 0 4 5 9 3 39 9 3 4 March 274 246 540 ; 1,095 4,395 1,797 ' 4,533 2,330 397 April. -_ 231 266 530 1,072 4,443 1,781 ! 4,518 2,350 400 May 247 182 529 i 996 4,505 1,779 i 4,497 2,356 398 June.. 251 141 571 i 1,000 4,528 1,775 I 4,489 2,392 395 Week ending (Saturday)— June 7 262 ! 185 540 1,021 4,522 1,781 i 4,509 2,393 i 395 June 14 231 | 149 567 984 4,526 1, 782 j 4,489 2,382 i 395 June 21 244 127 596 1,010 4,529 1, 774 i 4,482 2,408 396 June 28 257 578 4,533 1,764 4,468 2,381 396 I * For explanation see BULLETIN for July, 1929, pp. 432-438. 1 Includes "other securities," amounts due from foreign banks, and reserve bank float; for explanation see BULLETIN for July, 1929. Back figures—See Annual Report for 1929 (Tables 1, 2, and 3). ANALYSIS OF CHANGES IN MONETARY GOLD STOCK GOLD MOVEMENTS TO AND FROM UNITED STATES [End of month basis. In millions of dollars] [In thousands of dollars] Increase or decrease (—)during month Gold 1930 stock Through Through Through Month at end net gold ear- domestic mo o n f th Total im o p r ort m o a p r e k ra in - g pr t o io d n u , c- From or to— J li u m ne in ( a p r r y e ) - May Jan M u a a y ryexport tions etc.» 1928— O S c e t p o t b e e m r ber ._ 4 4, , 1 1 4 2 2 5 1 2 7 . . 1 3 1 0 3 . . 5 3 -1 1 .2 .2 2 2 . . 8 8 p I o m rt - s p E o x rt - s p I o m rt - s p E o x rt - s p I o m rt - s p E o x rt - s November. _ 4,128 -14.0 6.7 -25.0 4.3 December 4,141 13.2 23.3 -15.7 5.6 England _. 7 285 Total (12mos.)._ -237.9 -392.0 119.6 34.5 France 2 30 8,497 Germany 26 156 1929—January 4,127 -14.4 47.2 -65.0 3.4 Italy 1 1 February 4,153 26.4 25.5 .9 Netherlands 9 9 March 4 188 34.4 24.8 7.5 2.1 Canada 2,306 25 13,463 109 April 4,260 72.4 23.1 48.6 0.7 Central America 140 765 May 4,301 40.6 23.6 16.1 0.9 Mexico 2,526 10,010 415 June 4,324 23.4 30.2 -7.5 0.7 Argentina 50 391 July 4,341 16.3 34.7 -22.0 3.6 Brazil 59,411 August . 4,360 18.9 18.4 -1.0 1.5 Chile 21 136 September 4,372 12.1 17.6 -6.6 1.1 Colombia.. 118 2,631 October 4,386 14.4 17.5 -4.5 1.4 Ecuador 592 November 4,366 -19.8 -23.2 1.0 2.4 Peru-._ 2.542 5,728 4,284 -82.3 -64.4 -22.0 4.1 Venezuela 48 235 British India Total (12 mos.)_. 142.4 175.1 -55.4 22.7 China and Hong Kong 1,874 8 12, 480 34 1930—January 4,293 8.8 4.0 2.5 2.3 Dutch East Indies 119 601 50 February 4,355 61.9 60.0 0.0 1.9 Japan __ 7,483 13,509 107,017 March 4,423 68.2 55.5 13.0 -0.3 Philippine Islands. 284 1,311 April 4,491 68.5 65.7 0.5 2.3 New Zealand 15 87 May 4,517 25.9 23.5 2.0 0.5 All other countries.. 1697 39 3,331 91 Junep 4,534 16.9 8.2 2.0 6.7 Total 2 8,180 23, 552 82 218,261 9,637 i For explanation of this figure, which is derived from preceding columns, see BULLETIN for December, 1928, p. 831. 1 Includes all movements of unreported origin or destination. v Preliminary 1 At New York—imports, $697,000. Elsewhere—imports, $7,483. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

JULr, 1930 FEDERAL KESEKVE BULLETIN 419 MEMBER BANK BORROWINGS AT FEDERAL RESERVE BANKS [Monthly averages of weekly figures. In millions of dollars] Reporting member banks in leading cities Member banks Total i Other leading cities outside leading Month or date Total iNew York City cities i Total Chicago 1929 1930 jl 1929 1930 { 1929 I 1930 ! 1929 1930 1929 1930 1929 1930 January 891 462 • 663 247 ! 190 39 473 208 7 : 228 215 February... 893 371 I 659 174 131 21 528 153 93 1 ! 234 197 March. 97S 247 ; 740 81 • 160 1 574 SO 121 23S 166 April 991 225 725 71 ; 162 17 563 54 46 266 154 J M un ay e _. 9 9 5 7 1 2 226 6 1 6 7 1 0 59 ; 1 1 0 4 5 5 11 5 5 1 0 6 5 48 3 6 6 4 2 30 9 2 0 167 July. 1,100 801 i 319 482 47 299 August 1,013 717 !.. 196 521 32 296 September.. 974 706 I. 540 18 268 October 885 634 560 38 251 November.. 944 6o5 60 ;.. 595 28 289 December.. 755 490 80 |. 410 37 265 1 Includes (in small amounts) discounts by Federal reserve banks for noninembers: (1) bills discounted for intermediate credit bauks 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 Federal reserve bank Boston Call loan? 1 U.S. Treas- R C P N h i l e e c i w v h la e m d Y la o e o n l n r p d d k hia.. Month or week m me o r n ic t ; h * s | I accept- d l T o a i 9 a y m n 0 s s e * , New ne R w e- al c c n e a u a o r n t r t t e i y d e f s s i , - b T o u r n r e d y a s s * - Atlanta 3 to 6 months Chicago St. Louis Minneapolis- 1929 Kansas City- June 8 -S 7.83 7.70 •4.80 3.71 Dallas July 7H-8 9.41 9.23 4.55 3.68 San Francisco August 6 -6I/4 8.15 8.23 4.70 3.72 September 8.62 8.50 M. 58 3.70 BUYING RATES ON ACCEPTANCES October 6H 7 -9 6.10 6.43 4.37 3.67 [Buying rates at the Federal Reserve Bank of New York] November 4^4-6 5.40 5.44 3.47 3.45 December 4.88 4.83 <3.03 3.46 1930 January... 4%-5 4.31 4.64 I 3.39 3.51 February 4.28 4.32 I 3.36 3.50 1-15 days March ZH-4% 3.56 3.69 I •2.95 3.40 16-30 days... April 324-4 4 -4H 3.79 4.00 3.00 3.46 31-45 days... May 3.05 3.12 2.41 3.41 46-60 days 61-90 days... J W un ee e k ending- 334-3?4 156- 2.60 2.62 i •1.89 3.37 91-120 days.. June 7 3^-394 3.00 3.00 I 1.97 3.39 121-180 days. •2-K June 14 i 2H\ 3 -3H 2.81 2.90 ! 1.78 3.37 1 Reduced from 2% to 2J4 per cent on June 5, to 2% per cent on June 21 i 2% 2.56 2.50 i * 1.98 3.37 June 16, and to 2 per cent on June 20. June 28 j -2 2.02 2.20 I 1.83 3.37 2 Reduced from 2V2 to 2lA per cent on June 5. ^ Reduced from 2}£ to 2% per cent on June 5 and to 2H per cent on June 16. 1 Stock exchange call loans; new and renewal rates. * Reduced from 3 to 2H per cent on June 5. 1 Stock exchange 90-day time loans. 1 3 issues—SU, 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

420 FEDERAL RESERVE BULLETIN JULY, 1930 PREVAILING RATES CHARGED CUSTOMERS BY BANKS IN PRINCIPAL CITIES WEIGHTED AVERAGES New York City Eight other northern and Twenty-seven southern and eastern cf ties western cities Month 1927 1928 1929 1930 1927 1928 1929 1930 1927 j 1928 1929 1930 January „ 4.66 4.56 5.74 5.64 4.99 4.73 5.87 5.88 5.72 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 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 5.86 May 4.63 4.97 5.88 4.74 4.95 5.04 6.09 '5.13 5.59 5.56 6.10 5.75 June 4.60 5.09 5.93 4.59 4.93 5.36 6.02 5.06 5.54 5.67 6.16 5.69 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 5.88 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 girtn on preceding page). All averages are based on rates reported for three types of customer loans—commercial loans, and demand and time loam on securities. The method of computing the averages takes into account (a) the relative importance of each of these three types of loans and (t) the relative importance of each reporting bank, as measured by total loans. In the two group averages the average rate for each city included it weighted according to the importance of that city in the group, as measured by the loans of all banks. r Revised. PREVAILING QUOTATIONS Loans secured by prime stock- Loans secured by warehouse Prime commercial loans exchange collateral receipts Interbank loans Federal reserve bank or branch city April, May, June, April, May, June, April, May, June, April, May, 1930 1930 1930 1930 1930 1930 1930 1930 1930 1930 1930 JSTiw York City.— 4 -434 5-5H 434-5H 434-5 5 4^-5 4H-5 4H-5 Northern and Eastern Cities Boston . . 4^-5 434-5J4 4^-5 5 -6 5^-6 Buffalo 5 -6 5 -6 5 -6 5V£-6 6 5^-6 6 -634 6 -634 6 5V£ 51^ Philadelphia 434-5 534-6 434-6 5 -6 5^-6 5 -6 5 -6 434~534 434-534 Pittsburgh 5 -6 5 -6 5 -6 5V&-6 5^-6 5^-6 6 6 6 6 5^-6 Cleveland 4 -6 5 -6 5 -6 5 -6 6 5 -6 6 5 —5V6 5 -6 Cincinnati 5V6-6V4 5J-6-6 5 -6 534-63"<2 5^-6 5 -6 6 -7 6 -7 6 -7 5 -6 5 -6 Detroit 5 -6 5 -5}4 5H-6 534-6 6 ~6H 6 6 534-6 5 -6 Chicago 4H-5 4H-5 434-5 5 -534 5 -534 5 -6 5 -5J4 5 -5^ .Southern and Western Cities 4W-5U 534-6 534 5 -6 5 -5H Baltimore 5j£-6 5 -6 4^4-6 4^-6 4^-6 4^-6 6 6 5 -6 5 -6 Charlotte 5)4-6 534-6 4^-6 6 6 6 66 6 6 6 6 Atlanta 5>£-6 534-6 6 -6M 6 -7 6 5 -5H 6 6 Birmingham.. 6 -8 6 -7 6 -7 6 -7 6 -7 6 -7 6 -7 6 -8 6 -8 534-6 6 Jacksonville 5 -6 5 -6 5 -6 6 -7 6 -7 6 -7 6 -8 6 -7 6 -7 6 6 Nashville 6 6 6 6 6 6 5J4-6 5H~6 5V6-6 534-6 5^-6 New Orleans 5 -6 5 -6 5 -6 6 -7 6 -6# 6 -634 5^6-6 }£ 5^£_g^£ 5 -6 5 -6 St. Louis 434-534 4 -5 4J4-5 534-6 5 -6 5 -6 5 -6 5 -6 5 -6 5 -6 Little Rock 6 -6H 6 -6H 6 6 -7 6 -7 6 -7 6 -8 6 -8 6 -7 6 6 -7 Louisville 6 6 6 6 6 6 6 6 5 -6 5 -6 Minneapolis 4 -5 6 5^-6 534-6 4H-5 4H-5 4 -4^ 53^-6 5H-6 Helena. . 8 8 8 8 8 8 6 -8 6 -8 6 -8 6 -8 6 -8 Kansas City 5M-5M 534-5J4 5 -534 5^-6 5%-6 5^-6 5V4—6 5^-6 5^-6 5H-6 5^-6 Denver 5V5-6 5^-6 534-6 6 -6H 6 6 6 -8 6 -8 6 -8 6 -6H 6 -6H Oklahoma City 6 6 534-6 8 8 8 6 -8 6 -8 6 -8 6 6 Omaha 5 -534 5 -534 6 -634 6 -634 6 8 6 6 6 Dallas 534-6 5 -6 5 -6 6 -7 6 -7 6 -7 534-6 534-6 6 5H-6 El Paso 6 -8 6 -8 6 -8 6 -8 6 -8 6 -8 8 8 8 6 6 Houston 6 6 6 6 6 6 6 6 6 -634 5/4~6 5 -6 San Antonio 6 -m 6 -6H 6 6 -8 6 -7 6 -7 6 -8 6 -7 6 -8 6 6 San Francisco 5 -6 5 -6 5 -6 6 -634 6 6 6 6 6 5 -5H 5 -5*4 Los Angeles 6 -634 6 534-6 g -63^ 6 -m 6 -634 634-7 6^-7 6^-7 6 6 Portland 6 6 6 -634 g "-6^ 6 6 6 -7 6 -7 6 -7 6 6 Salt Lake City 6 6 6 6 -7 6 6 7 7 6 6 Seattle 6 6 6 6 -634 6 -634 634-7 6 Spokane 6 6 6 6H-7 6 -634 7 7 7 6 CO CO June, 1930 4 -5 4 5 -534 434-5 534-6 5 -534 5 -6 5 -5H 5 -b\i 5 -6 6 5 -6 6 6 5^-6 5 -6 5 -6 6 534-6 6 -8 534-6 6 6 6 534-6 6 5 -6 6 5 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 monatthh. Rates from about 200 banks with loans exceeding $8,000,000,000; reporting banks are usually the larger banks in their respective eities. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

421 FEDERAL RESERVE BULLETIN JULY, 1930 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 York banks banks, brokers, Bor- Total and trust com- foreign banking Loans D to ue r i o n w gs - End of month panies agencies, etc. In- banks at 1929 1930 1929 1930 1929 1930 Total lOnse- All !m ve e s n t t - s b F a . n R ks . Total I curi- other January 6,735 3,985 5,664 3,368 1,071 616 ! ties February... 6,679 4,168 5,619 3,529 1,060 639 March 6,804 4,656 5,713 4,026 1,091 631 April 6,775 5,063 5,580 4,409 1,194 654 BY MONTHS j May 6,665 4,748 5,482 4,139 1,183 609 To 1 t 9 a 2 l: 9— J J M A M u u F p a n l a e y r b y r e i c r l u h .. a _ ry 2 2 2 2 2 2 2 2 2 2 2 2 , , , , , , 4 1 3 4 2 2 7 1 8 7 3 6 9 3 8 2 1 3 1 1 1 1 1 1 6 6 6 6 6 6 , , , , , , 4 4 9 4 2 2 9 5 6 8 7 6 1 0 4 0 7 0 7 7 7 7 7 7 , , , , , , 7 3 5 2 3 5 1 3 8 1 9 2 6 2 0 8 2 2 9 9 9 9 8 8 , , , , , , 2 9 0 1 0 7 3 1 5 7 4 3 4 1 9 3 9 7 ; ] , ' | 5 5 5 5 6 5 , , , , , , 9 5 8 0 9 7 2 2 3 0 5 8 4 9 6 4 1 1 2 2 2 2 2 2 , , , , , , 7 5 7 5 8 9 3 3 0 4 6 1 8 2 9 5 1 8 8 6 6 7 7 6 0 7 6 2 4 5 1 0 1 5 0 9 N J J S D A O u u e o c e u l n p t y c v g e o t e u e e b m m s m e t r b b b e e e r r r . . . . . , 4 3 8 6 7 7 7 , , , , , , , 9 0 1 5 4 0 9 1 0 7 4 7 0 9 7 4 9 1 3,728 3 3 5 6 7 5 " , , , , , , , 3 4 3 1 0 4 7 7 5 3 1 7 9 9 0 4 2 3 7 2 7 3,201 1 1 1 1 , , , , 4 2 3 3 6 5 7 7 9 7 2 2 8 9 2 0 5 0 0 5 6 527 August 22,465 16,969 7,578 9,390; 5,496 2,604 717 S O e c p t t o e b m er b . e . r 2 2 2 3 , , 1 6 2 4 4 6 1 1 7 7 , , 7 1 0 9 6 7 7,654 9 9 , , 6 5 0 4 8 3 ! ! 5 5 , , 4 4 4 1 9 8 2 2 , , 9 7 1 1 4 8 6 7 3 0 4 6 1 Call loans, $2,980,000,000; time loans, $474,000,000. November 23, 663 18,041 8,249 9,792| 5,623 3,008 655 MADE BY REPORTING MEMBER BANKS IN N. Y. CITY December 23, 012 17,444 7,968 9,476' 5,567 490 1930—January 22, 368 16,821 7,794 9,027! 5,548 2,828 247 [In millions of dollars. Monthly data are averages of weekly figures] February 22, 083 16,542 7,671 8,8711 5,541 2,818 174 March 22, 352 16, 746 7,964 8,7811 5,607 81 For banks April 22, 657 16,901 8,270 8,631 5,756 2,940 71 J M u a n y e •' 2 2 2 3 , , 6 0 6 2 2 4 11 1 1 7 6 , , 8 0 2 4 5 8 j 8 8 , , 3 5 1 6 2 8 8 8 , , 5 4 1 8 3 0 5 5 , , 8 9 3 7 7 7 2 3 , , 8 0 7 6 0 3 j j 5 5 9 3 Month or date Total 11 N I e n w ! i O N u e ts w ide ot F h o e r rs Ne 1 w 92 Y 9— or F k eb C r i u t a y r : y ; 7,190;j 5,306 2,820 2,486 1, 949 131 Total C Y i o ty rk 1 j ! C Y i o t r y k ' March j 7, 296!! 5,424 2,823 2,601 1,872 916 166 April 7,2971 5,437 !2,729 2,7" 1,859 874 162 May 7,182 5,344 I2,653 2,691 1,838 817 145 1929—February { 5,555 2,895 1,082 : 1,817 2,656 June.. ' 7, 281 5,468, 2,749 2,719 1,812 796 165 March 5,679 2,800 1,071 1,729 2,879 July... 7,496 6,804 !3,045 2,758 1,692 935 319 April 5,477 2,583 934 : 1,649 2,893 August 7,407 5,688', j2,845 2,843 1,720 827 196 May ! 5,491 2,526 861 ; 1,665 2,965 September ! 7,507 5,803!j 2,892 2,911 1,704 887 166 June 5,383 2,443 895 , 1,548 2,940 October ; 7,837 6,108! 3,191 2, 916 1,729 1,023 74 July... ! 5,841 2,849 1,198 : 1,651 2,992 November 8,3491; 6, 380! 3,340 3,040 1,969 1,132 60 August i 6,069 2,778 993 ' 1,786 3,290 December | 8, 001 ' 6,021| 3,112 2,909 1,981 980 80 September j 6,540 2,898 1,048 , 1,850 3,642 1930—January ' 7,664 5, 7051 2,945 2,760 1,959 931 39 October 6,498 2,896 1,257 1,639 3,602 F M e a b r r c u h a ry i ' 7 7 , ,6 4 4 9 9 3 5 5 , , 5 7 8 2 4 0 : 1 3 2 , , 1 9 1 0 5 9 2 2 , , 6 6 0 7 5 5 1 1 , , 9 9 2 0 9 9 9 9 0 5 2 2 2 1 1 N D o ec v e e m m b b e e r r 4 3 , , 0 3 2 9 3 1 1 1 , , 6 8 0 6 1 9 1, 8 0 8 9 8 0 7 7 7 1 9 3 2 1 , ,7 1 9 5 0 4 April i 7,829 5, 8681 3,383 2,485 1,961 982 17 1930—January | 3,351 1,706 844 862 1,644 May 7,8521 5,878| 3, 4592, 418 1,974 931 11 February I 3,459 1,913 942 971 1,546 June ; 8,117| 6, 099; 3,701 2,398 2,019 1,009 5 March. 3,741 2,310 1,210 1,100 1,430 Other leading cities: ! April. 4,115 2,740 1, 557 1,183 1,376 1929— M Fe a b rc ru h a . ry ! j 1 1 5 5 , , 1 0 7 7 6 3 1 1 0 1 , , 0 9 6 5 7 4 | ! 4 4 , , 7 7 5 0 6 3 6 6 , ,2 3 5 1 1 0 4 4 , , 1 1 0 1 9 9 1 1 , , 9 9 4 6 5 9 5 5 7 2 4 8 May ; 3 4)o3O 2,727 1,665 1,062 1,302 April .115, 092 11,027! 4, 663 6,364 4,065 1,835 563 June 4 ! 4,101 2,906 1,911 995 1,195 May J 14, 931 10, 9331 4, 5656, 3683,998 1,728 516 June 11- ! 3,998 2,852 1,799 1,053 1,146 June ! 14,950 11,012! 4,582 6,430 3,938 1,736 505 June 18 3,787 2,756 1,850 906 1,031 July ; 14,983| 11,146, 4, 6706,476 3,837 1,803 482 June 25 ...; 3,416 2,477 1,764 713 August j 15, 058 11, 281! 4,734 6,547 3, 7761,777 521 September 15,139 11, 394 4,762 6, 6323, 7451,830 540 N O o ct v o e b m er b er j j 1 15 5 , , 3 2 1 8 4 8 1 ll 1 , , 66 59 1 8 j : 4 4, , ! 906 6 6, , 7 6 5 9 2 2 3 3 , ,6 6 9 5 0 41 1 , , 8 8 7 9 5 1 5 59 6 4 1 8 1 M W e e m ek b ly e r re a p n o d r t n i o ng n m m e e m m b b e e r r b b a a n n k k s s o in u t N si e d w e Y N o e r w k Y C o it r y k . City (domestic December ' 15, 011 11, 424 4,856 6, 5683,587 1,906 410 banks only); includes unknown amount for customers of these banks. 1930— F J e a b n r u u a a ry r y j j 1 1 4 4 , , 5 7 9 0 0 5 1 1 1 1 0 , , 1 9 1 5 5 8 . | 4 4 , ,7 r 6 • 2 - 6 6 , , 1 2 9 6 6 73 3 , , 5 6 8 3 9 2 1 1 , , 8 9 9 1 7 6 2 1 0 5 8 2 * Call loans, $3,399,000,000; time loans, $630,000,000. J M A M u p a n a r y e r i c l h. : 1 1 1 1 4 4 4 4 , , , , 8 8 9 7 1 2 0 0 7 0 8 3 1 ! | 1 1 1 1 0 0 1 1 , , , , 0 9 0 2 9 4 3 4 6 9 3 8 ,' ' 4 4 4 4, , , r 1 8 8 5 " 5 3 0 ' ! 6 6 6 6 , , , , 0 1 1 0 7 4 9 8 6 6 5 2 3 3 3 3 , , , , 8 7 6 9 9 6 7 5 5 2 7 8 2 1 1 1 , , , , 9 9 9 0 3 5 4 5 9 9 6 4 4 8 4 5 8 0 8 4 ACCEPTANCES [ In A m N ill D io ns C o O f M dol M lar E s] RCIAL PAPER Bankers' acceptances out- j Commercial paper out- BY WEEKS standing standing End of month Total: ! I 1930—May 28 j 22, 726 16, 837, 8,421: 8,416 5,889 2,798 1927 1928 1929 1930 June 4 ! 22,957!17, 038, 8,605J 8,434 5,919 3,064 J J u u n n e e 1 1 1 8 i ! 2 2 2 3 ,8 ,1 82 18 i ' 1 1 6 7 , , 9 1 6 2 6 8 8 8 , , 5 6 6 1 4 5 , ; 8 8 , , 4 5 0 1 2 3 5 5 , , 9 9 8 1 9 7 3 2 , , 1 9 1 7 7 5 J F a e n b u r a u r a y ry 7 78 7 5 4 1 1 , , 0 0 5 5 8 6 1 1 , , 2 2 7 2 9 8 1 1 , , 6 6 9 2 3 4 June 25- , 23,140; 17,059; 8,487! 8,572 6,081 3,098 March 809 1,085 1,205 1,539 New York City: 1 i April .- 811 1,071 1,111 j 1,414 1930— J M un a e y 4 2 8 ; 8 7 , , 1 9 3 0 4 3, 6 5, , 1 9 2 2 2 8 , 3 3 , , 5 75 6 3 5 1 | 2 2 , , 3 3 6 6 3 9 2 1 , , 0 9 1 7 2 5 ! 1 9 ,0 2 2 7 7 J M un ay e 7 75 7 1 5 1 1 , , 0 0 4 2 1 6 1 1 , , 1 1 1 0 3 7 1,382 June 11._ 7,975 5, 986' 3,630 2,356 1, 9891 952 July 741 978 1,127 Ot 1 h 9 e 3 r 0 — le J J J J a M u u u u d n n n n a i e e e e n y g 4 1 2 1 2 1 5 c 8 8 i .. t ies: ; ; : 1 1 1 8 8 4 4 4 , , , , 1 , 2 9 8 8 3 2 0 2 2 1 7 9 3 3 ! , ' 1 1 1 1 0 0 6 6 0 , , , , , 1 1 9 9 9 3 5 7 1 0 0 8 9 6 9 : 3 3 4 4 4 , , , , , 8 7 9 6 8 5 2 3 9 5 2 6 4 6 6 ; ! ; 6 6 6 2 2 , , , , , 0 0 0 4 4 6 5 0 4 6 5 4 3 2 5 3 3 2 2 3 , , , , , 9 9 9 0 0 1 0 2 0 7 1 4 7 8 2 1 2 2 1 1 1 , , , , , 0 0 8 0 3 2 0 7 1 6 3 4 1 0 7 A N S D O e u o e c p c t g v o t e u e e b m m s m e t b r b b e e e r r r 1 1, , 8 9 7 0 0 6 7 8 2 8 4 5 2 1 9 1 1 1 1 , , , , 9 0 2 2 1 5 2 0 8 0 2 3 4 4 0 1 1 1 1 1 , , , , , 6 2 2 7 5 5 0 7 3 4 8 1 2 2 1 June 18 14,986!10, 999! 4,889 6,109 3,988 2,108 June 25 ! 14,9111 10,901 4,791 6,110 4,01C 2,051 Figures for acceptances as compiled by American Acceptance Council: for commercial paper as reported by about 25 dealers. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

422 FEDEKAL RESERVE BULLETIN JULY, 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) Selected groups of industrial issues Month or date mobile B eq i u n u i g l i d p - - C st h o a r i e n i | C h ic e a m l - 1 | C p a o e n p r d - | t E r l e i e q c c u a - i l p-c M h a i - nment ; brass j ment j J Number of issues 10 16 ! 30 1929—Febru ary 128.8 163 153 i 231 I 286 258 174 133 179 138 March 128.7 160 150 232 329 257 167 141 187 136 April 128.6 157 149 235 294 255 163 148 191 132 May 12S.6 158 148 248 280 282 161 146 185 127 June 127.7 15S 145 270 271 308 159 144 188 122 July.. -..- 127.0 169 148 315 281 360 172 149 212 120 August 126. 3 165 149 320 289 405 177; 158 238 118 September 126. 172 155 338 i 294 399 191 | 167 244 114 October 126.4 152 139 305 ! 259 345 172 161 217 103 November 123.9 114 104 i 214 I 204 227 135 , 131 169 December 126.4 113 106 I 228 j 196 241 143 i 132 170 1930—January 117 102 ! 240 193 265 146 129 177 78 February 125 100 I 254 193 307 154 128 188 85 March 125 100 ! 266 193 323 161 ! 141 ! 192 85 April 127 101 ! 282 ! 174 359 173 ; 156 196 83 May 116 97 | 257 'i 151 327 170 148 ! 174 77 June 100 90: 223 j 135 290 152 l 133 ! 161 June 4 114 ioo ! 257 ! 152 335 170 | 148 ! 173 June 11 104 93 ! 236 ; 143 297 157 : 136 i 164 72 June 17 93 83 ; 201 I 122 269 142 : 124 I 155 63 June 25_ 91 82 I 199 122 259 141 j 124 I 151 63 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] January-May January-May May, 1930 1930 1929 Class of issue Class of issue Re- Re- Re- New fund- New fund- New funding ing ing Total 989.6 64.8 3.558.4 219.2 4, 204. 0 853.1 Total _ I 109.5 Corporate issues 847.1 63.3 2, 943. 4 208.8 3, 702. 1 846.3 New E i u s r s o u p e e s | 84.5 F M a u rm n B S i - t c o l T o i o n p c o a L f S d k a t u n s h s o l a n l o n a i d i s r s g n n i t s s d n e u u t t g w e e e e n r s s r - m o m a t n e d s - re- •> 4 3 1 0 6 7 4 7 1 4 5 1 1 . . . . . , 0 4 5 5 0 2 5 ^- 4. 2 2 9 4 1 8 5 . . . . 5 5 0 8 1 1, , 0 5 2 6 6 2 9 2 5 3 7 4 3 2 1 , . . . . . 7 0 0 7 5 2 77. 1 5 4 4 1 1 S 9 0 0 . . . . 8 4 8 2 2 1 , , 5 5 0 2 9 0 5 8 7 3 1 , 1 . . . . 0 6 9 5 5 0 7.1 3 4 2 7 5 6 1 4 0 . . . . 8 1 9 3 Refu L U C M n a . a l d T i a t n s i S i o n c n n a c . t e d g o d a l i A a r l l n p i a m s s G o n a s u r e e u o n l a o r a e v d t i u r s e e c s a r N p n o e m s w s e f e n o s t _ u s _ i a n o n d n d - s . | ! j ! * 3 1 2 3 8 1 5 5 . . . 1 . 2 0 0 3 3 1 ! | j . 2 1 2 4 5 . . . 0 1 6 ! | i j i " 1 5 5 7 3 2 3 2 5 1 . . . . 8 4 6 . 5 3 5 1 ! | _ 2 j * _ | . 1 3 59.8 BUILDING CONTRACTS AWARDED, BY TYPES OF BUILDING [Value of contracts in millions of dollars] Total Residential Industrial Commercial P p u u b b li l c i c w u o t r i k li s t i a e n s d Educational All other 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 April _-- 642.1 483.3 1 256.8 123.1 68.2 38.1 78.0 73.2 152,1 149.7 29.9 35.4 57.1 63.7 Mav -- -- 587. 8 457.4 192.0 116.6 80.8 54.6 86.5 73.3 139.4 134.9 38.2 36.9 50.9 41.1 Year to date 2,485.9 2,037. 8 913.5 482.6 324.0 238.8 408.7 350.5 487.1 587.8 145.9 147.9 206. 6 230.2 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 76.9 117.2 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 for 37 States east of the Rocky Mountains, as reported by the F. W. Dodge Corporation. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

JULY, 1930 FEDERAL RESERVE BULLETIN 423 PRODUCTION, EMPLOYMENT, CAR LOADINGS, AND PRICES [Index numbers; 1923-1925 average=100. The terms "adjusted" and "unadjusted" refer to adjustment for seasonal variations] Industrial production* Freight car loadings* Commodity Year and month Total Manufactures Minerals i a n B t w g r u e a a d i c c l r o t d d s n - - - m p t F e o l a m o e r c n y y - - t - r t F p o o a a l r c l y y - s Total M le e s r s c - h th a a n n d - i c s a e r i - n pricesf load lots c A om ll - Farm mod- prod- Unad- Ad- Unad- Unad- Unad- Unad- Ad- ! Unad- Ad- ities ucts justed i justed justed justed justed justed justed :• justed j justed 1919 77 i 64 107 84 139 158 1920 89 ! 63 108 118 91 72 154 151 1921 70 57 82 77 79 87 98 88 1922 74 81 90 81 86 93 97 94 1923 105 ! 84 104 103 100 96 101 99 1924 96 i 95 96 96 98 99 98 100 1925 99 122 100 101 103 104 104 110 1926 108 130 101 104 107 107 100 100 1927 107 128 99 102 103 105 95 99 1928 106 i 135 97 102 103 104 98 106 1929 115 I 117 100 107 106 104 97 105 1926 I January 106 107 . 108 109 90 92 111 101 101 94 102 98 107 104 107 February 109 106 ' 111 108 92 95 106 102 106 96 104 102 106 102 105 March _. 110 107 ! 111 108 98 104 146 103 107 104 107 106 100 102 April.. 108 107 I 110 107 96 108 139 102 105 107 107 106 100 103 May 107 106 i 108 106 103 104 134 101 104 106 107 108 105 101 102 June -. 106 108 106 108 109 106 133 101 104 110 109 108 107 101 101 J A u u ly gust _.. 1 10 0 9 3 1 n 0 o 7 ! 1 10 0 8 2 1 11 0 1 7 1 1 1 1 0 5 j I 1 10 0 9 7 1 14 2 8 6 1 9 0 9 1 1 9 0 9 4 1 11 1 1 3 1 1 0 0 8 8 ! 1 1 0 0 7 6 1 1 0 0 6 6 1 9 0 9 0 9 9 9 7 September 113 112 I 112 112 119 110 137 103 105 122 109 112 107 100 October 114 111 i 112 111 124 114 126 103 108 123 109 112 107 99 November 110 108 j 108 106 123 118 119 101 I 105 113 109 110 108 95 December 101 105 | 99 103 113 119 131 100 ! 104 107 i 103 108 95 1927 i January 105 106 104 105 112 116 94 97 105 100 108 97 February 111 108 110 107 113 117 96 100 105 100 109 104 109 95 March 113 111 113 110 111 118 151 100 106 102 108 108 107 94 April 110 109 112 109 96 107 147 100 105 100 108 108 107 94 May 112 111 113 111 108 109 135 99 104 105 106 106 104 96 June.. 107 108 107 109 108 105 154 99 102 106 104 105 104 97 July 102 106 102 107 103 100 130 99 104 101 104 104 98 August 105 107 104 107 111 106 135 102 109 104 105 104 102 September 107 105 106 105 111 104 127 101 102 116 104 110 104 106 October 105 103 104 102 112 105 137 103 114 101 109 105 105 November 101 99 100 105 101 114 101 97 106 104 104 December 100 95 97 103 116 95 103 104 1928 January 105 106 106 106 100 103 104 96 92 100 106 106 February 111 109 114 110 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 108 109 109 111 104 101 158 101 103 102 105 103 107 July 105 110 106 111 103 101 142 98 105 102 104 104 107 August 110 112 110 113 111 105 126 103 109 104 104 103 107 September 116 114 116 116 115 107 143 100 104 119 106 109 104 100 109 October 118 115 117 115 123 114 145 100 107 119 106 109 105 98 104 November 115 113 115 113 117 113 115 99 104 108 104 106 104 97 102 December 108 113 109 114 106 112 105 104 95 103 100 105 97 104 1929 January 116 117 116 117 114 118 100 97 101 95 104 97 105 97 106 February 120 117 120 116 116 120 88 100 108 107 101 105 97 105 March 121 118 125 120 101 107 118 101 111 103 106 105 98 107 April.. '124 122 127 123 104 115 156 102 111 102 111 107 106 97 105 May 125 124 127 125 116 116 143 102 111 110 111 108 108 96 102 June 125 127 126 129 116 113 133 101 109 109 108 105 104 96 103 July 119 124 119 126 118 114 159 101 105 111 108 105 105 108 August 121 123 121 125 121 115 119 102 109 114 109 106 105 107 September 123 ••122 122 122 127 118 108 103 111 121 108 110 105 107 October 120 117 119 117 127 118 109 102 110 118 104 109 105 104 November 108 106 107 105 114 110 95 98 102 102 99 106 104 101 December 95 99 92 110 '116 77 95 90 97 101 102 1930 January. 103 104 102 102 107 '112 79 93 97 102 101 February. 109 107 110 107 104 109 77 99 102 98 March r 106 104 109 105 91 96 111 95 101 100 95 April 107 106 110 107 93 104 118 101 101 100 96 May "105 P104 P 104 M03 111 101 93 * 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. 453. p Preliminary. rRevised. 120082—30 5 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

424 FEDERAL RESERVE BULLETIN JULY, 1930 INDUSTRIAL PRODUCTION, BY INDUSTRIES [Index numbers of the Federal Reserve Board. Adjusted for seasonal variations. 1923-1925 average—100] 1929 1930 Industry Mar. Apr. May June July Aug. Sept. Oct. Nov. Dec. Jan. Feb Mar. April May MANUFACTURES '133 '136 145 155 '152 143 '140 124 100 90 99 '119 '113 114 111 Pig iron 116 117 126 127 131 128 122 118 107 95 94 101 102 102 104 Steel ingots—,. 158 ' 125 ' 100 90 ' 100 120 114 115 1 1 1 16 6 1 1 1 2 9 0 1 12 2 5 1 1 1 2 2 2 1 1 1 1 1 9 8 1 1 1 2 9 0 1 1 1 1 5 6 111178 1 1 0 0 4 8 9 9 0 6 1 1 0 0 2 3 9 9 9 4 9 9 8 4 1 9 0 6 0 91 Wool 97 101 102 101 97 101 98 101 89 77 78 76 71 72 70 Consumption 100 106 109 107 109 114 106 109 94 80 85 81 77 80 74 Machinery activity »----- 92 96 92 93 85 86 89 91 82 74 72 73 65 62 69 Carpet, rug loom activity1- 94 95 98 95 83 90 90 96 88 75 69 70 66 '66 60 144 149 138 149 146 150 148 148 "145 140 141 145 150 125 152 159 142 160 156 161 158 158 153 148 145 149 155 123 121 128 129 130 128 127 130 128 130 128 124 133 138 140 128 96 103 97 96 96 100 98 96 96 95 96 94 90 97 100 Slaughtering, meat packing.. 88 99 92 90 94 93 101 97 95 91 89 92 85 94 94 *86 100 94 90 96 94 106 104 101 96 89 93 80 93 94 90 93 86 87 88 88 91 86 82 81 87 86 88 89 88 97 102 91 83 90 85 99 88 88 91 97 92 92 100 89 105 119 125 117 124 126 126 125 125 113 116 132 141 147 142 104 107 113 109 101 107 99 91 92 94 92 97 101 105 111 111 111 90 103 94 113 84 99 106 111 127 94 90 96 105 125 124 127 128 124 125 129 126 123 118 121 126 121 J>119 119 119 122 120 120 119 120 120 118 113 117 120 115 P113 92 93 93 92 91 95 94 94 92 93 95 97 91 86 89 132 135 134 133 138 134 143 145 139 139 140 137 128 118 118 119 120 122 118 119 119 120 116 118 121 116 111 102 103 109 107 101 101 101 96 97 95 93 92 '99 '98 99 139 135 143 136 131 129 125 128 129 107 123 137 125 Wood pulp, mechanical-. 96 91 92 100 103 101 100 91 85 91 96 111 106 '89 90 Wood pulp, chemical 114 115 120 118 117 120 120 118 113 116 115 119 117 '114 115 157 151 150 180 152 169 178 156 144 125 147 151 153 154 151 Newsprint consumption 138 132 137 142 131 135 148 139 133 134 131 137 130 132 132 TRANSPORTATION EQUIPMENT: 159 153 148 162 142 143 133 113 81 49 103 110 109 109 104 28 53 55 46 59 55 49 57 45 32 39 40 48 51 43 49 62 93 130 156 175 101 75 69 97 170 102 '80 128 99 98 101 113 114 117 116 113 106 93 96 96 98 '99 94 T TTATTTifR AND PRODUCTS •. ---- 89 95 93 106 105 103 105 108 103 93 93 98 99 99 cjnlp lpather 1 --- 85 89 84 98 86 93 94 94 95 94 99 101 97 99 100 Upper leather— 73 76 78 74 75 80 87 98 88 83 76 66 80 79 72 Palf and kiD 86 93 96 104 111 108 102 100 88 70 68 76 80 85 95 O-nat «nrt kid. 112 123 116 153 158 136 144 147 145 151 129 127 136 131 128 105 100 106 118 120 125 123 117 108 90 98 97 97 '99 91 CEMENT AND GLASS: 99 110 111 116 118 122 118 113 109 110 108 110 111 108 119 148 144 146 154 164 168 174 172 149 117 124 122 117 131 143 129 138 137 126 127 122 '125 '122 119 '113 105 '101 104 105 101 140 147 145 130 133 126 127 125 126 122 110 103 103 103 101 Tin (deliveries) * - 128 142 145 137 123 120 131 125 112 106 99 92 117 132 107 FUELS, MANUFACTURED: 160 165 168 170 171 176 173 178 171 166 163 168 168 174 173 187 194 196 199 205 209 208 215 209 201 199 204 204 214 213 94 93 103 110 95 108 95 103 93 90 89 96 99 93 90 Fuel oill 136 141 140 140 138 142 141 142 136 132 121 12.5 117 121 123 Lubricatins oil ^ 123 125 126 126 123 131 123 121 110 115 120 126 130 138 133 142 144 149 151 151 152 147 146 139 131 132 136 135 138 137 TiT'J' T R i 'R r ' e FR s T p I n R e ES u m A a N t D i c T UBES .___-- 1 1 5 5 7 2 1 1 6 6 6 1 1 1 6 5 3 8 1 1 6 6 7 2 1 1 4 4 6 1 1 1 2 1 3 9 1 1 2 1 0 6 1 1 1 1 7 4 9 9 7 4 8 8 2 0 1 1 0 0 9 6 1 1 1 0 0 7 1 1 0 0 5 8 ' '1 1 2 2 3 7 P i> 1 1 2 2 5 1 118 126 121 125 105 87 90 87 74 70 85 85 84 '97 v 94 TOBA C C ig C a O r P s RODUCTS 1 9 2 3 6 1 1 0 4 9 2 1 10 4 1 2 1 1 3 0 9 0 1 9 3 7 1 1 9 3 9 3 1 1 0 3 0 6 1 9 3 9 5 1 9 3 6 0 1 8 3 3 3 1 8 3 4 1 1 9 33 2 1 8 2 7 8 1 9 3 2 6 1 9 3 4 4 153 173 178 172 160 163 168 168 160 172 167 166 161 172 167 MINERALS COAL: Bituminous » - 90 102 104 102 102 99 103 103 98 104 100 92 81 97 92 77 95 86 76 72 81 106 116 92 121 106 101 69 73 81 Petroleum, crude 133 132 134 135 143 145 140 140 131 132 132 135 125 128 127 Iron ore shipments 143 126 119 121 121 107 98 104 Copper (mined) _ -- 135 142 139 124 122 119 125 123 118 115 101 88 90 90 Zinc - - '110 116 '121 '120 ' 124 127 '120 ' 119 ' 106 '98 ' 104 '98 96 ' 94 94 Lead . 112 125 122 112 114 107 119 115 114 105 92 106 107 ' 104 105 Silver 93 103 93 94 88 91 89 94 114 87 88 98 89 '88 81 i Without seasonal adjustment. »Includes also lead and zinc; see " Minerals." « Corrected. P 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

JULY, 1930 FEDERAL RESERVE BULLETIN 425 FACTORY EMPLOYMENT AND PAY ROLLS INDEXES OF FACTORY EMPLOYMENT AND PAY ROLLS PER CENT no [Without seasonal adjustment. Monthly average 1923-1925-100] FACTORY EMPLOYMENT ( 1923-25=100 ) Factory employment Factory pay rolls Month 1927 1928 1929 1930 1927 1928 1929 1930 January 98.1 94.2 97.4 92.9 98.6 95.7 100.7 94.2 February 99.7 95.7 99.7 92.9 104.8 101.1 108.0 97.4 March 100.4 96.6 101.3 92.7 106.3 102.5 110.8 98 0 April... 99.8 96.0 101.8 92.1 105.0 100.3 111.3 96.7 May 99.1 95.7 101.6 90.4 104.3 100.8 111.2 94.1 June . 99.0 96.2 101.2 102.5 100.9 109.2 July . . . 98.0 95.7 100.7 98.6 98.3 104.8 August. .. 99.2 98.3 102.0 102.2 102.5 109.4 — Adjusted for Seasonal Variations September... 100.6 100.3 103.4 101.9 104.2 110.5 Without Seasonal Adjustment October ... 99.3 100.2 102.1 102.5 107.5 110.0 November. _ 96.9 98.8 98.2 98.5 103.6 102.0 80 80 December 95.5 98.1 94.8 99.4 104.2 98.7 1923 192^ 1925 1926 1927 1928 1929 1930 Annual index. 98.8 97.2 U00.4 102.0 101.8 107.2 Seasonal adjustment provisional FACTORY EMPLOYMENT: INDEXES BY GROUPS Transportation Month s I a r t n e o e d n l ch M in a e - ryTextiles p F u r o c o o t d s d - p P a i r 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 u n b t t i o le - s L p e u a r a c n o t t d h d s e - r m c g a C l l e n a a e n y s d - s t , , N m r o o e n t u f a e s l r s - Gr C ou he p mi P c le a e u l t s r m o- R p u u r b c o t b d s e - r b p u T a r c o c o t c - d s o refining 1929—January 97.1 106.7 95.9 98.6 102.5 85.5 94.0 118.3 91.9 84.3 102.4 107.6 104.0 112.2 84.1 February... 98.3 110.4 98.0 98.8 103.4 85.8 99.0 129.5 94.1 84.5 106.1 110.9 106.7 112.3 92.0 March 99.3 113.8 101.1 97.6 103.1 86.6 100.5 131.1 92.7 86.8 107.9 115.5 109.2 113.3 92.0 April 99.7 116.7 99.3 96.2 102.5 88.2 101.7 131.4 90.6 90.5 107.7 119.0 111.9 114.3 91.3 May _ 100.7 119.1 97.3 97.3 102.8 89.2 101.5 130.0 90.3 93.1 105.3 110.3 114.4 115.3 90.3 June 100.8 120.8 96.3 99.2 103.2 90.0 97.6 120.6 89.4 93.8 102.9 107.9 116.4 115.0 91.4 July.. 99.8 121.5 91.5 99.8 103.6 90.5 96.4 117.8 94.6 91.6 100.5 108.9 120.0 114.2 90.5 August 101.0 119.4 94.2 99.7 104.1 92.2 95.5 115.0 98.1 93.8 99.8 111.2 121.9 111.5 93.0 September.. 101.0 119.5 98.4 102.4 106.0 91.8 94.8 113.1 99.5 93.6 98.6 114.5 124.0 108.3 93.7 October 99.4 118.7 99.8 104.2 106.1 90.1 90.2 101.3 99.3 91.9 98.5 116.1 124.6 102.7 95.0 November.. 97.0 115.0 97.1 101.6 106.7 86.7 82.9 83.7 94.4 88.9 93.6 113.8 123.7 91.2 96.1 December... 92.2 112.1 94.3 100.5 106.9 81.6 81.3 79.6 90.0 82.3 89.9 111.8 120.9 89.2 89.2 1930—January 91.7 109.9 92.8 97.4 105.1 76.8 83.2 85.7 91.4 74.7 85.9 110.0 120.8 89.7 84.2 February 93.5 109.3 92.9 96.7 104.0 75.0 83.9 89.7 92.4 75.3 84.6 110.2 120.9 87.9 88.9 March 92.8 108.5 92.9 95.0 103.7 75.0 83.2 91.0 91.5 78.4 84.3 112.5 118.5 87.2 89.6 April _. 93.0 106.9 90.3 94.0 102. 6 74.2 84.0 93.9 89.8 81.2 82.9 111.7 116.1 88.6 88.0 May... 92.7 103.6 86.8 94.5 102.4 73.4 84.0 95.3 86.8 81.7 81.2 104.6 114.1 88.3 89.4 FACTORY PAY ROLLS: INDEXES BY GROUPS Transportation Month s I a t r n e o d e n l ch M in a e - ry Textiles p F u r o c o o t d s d - P p a r i a n i n p n g d e t- r L p u a b r u n c o e m t d d r s - - Gr e o q u u p ipm m A e o u n b t t i o le - s L p e u a r a c o n t t d h d s - er m c g a C l l e n a a e n d s y - s , t, N m o r e o n t u a fe s l r s - Gr C ou he p mi P c le a e u l t s r m o- R p u u r b c o t b d s e - r b p u T a r c o c o t c d - s o refining 1929—January 101.3 112.3 97.0 102.2 111.4 83.4 93.6 114.5 90.2 79.0 117.4 106.3 105.3 111.7 76.3 February 107.2 120.7 103.6 102.5 113.0 86.5 111.4 147.4 94.5 81.0 124.1 111.3 110.2 123.3 82.3 March 108.5 126.5 108.8 101.2 114.9 88.4 113.9 148.2 91.4 84.8 127.6 113.6 112.1 123.6 84.4 April 110.5 129.5 103.2 100.4 113.3 90.9 117.0 152.0 87.9 89.3 127.0 117.8 117.1 124.4 86.1 May 111.6 131.9 99.3 103.1 114.3 92.8 116.0 147.1 88.1 91.8 123.1 113.1 118.9 125.7 86.1 June 109.9 131.6 97.8 105.6 113.6 92.2 107.9 130.9 89.8 92.5 117.0 111.2 120.0 120.6 88.5 July... 103.5 128.2 90.4 105.6 111.4 93.5 97.1 110.2 97.8 86.1 112.6 111.2 123.3 115.1 87.9 August 109.3 127.5 97.4 105.0 112.8 94.7 106.8 128.0 105.0 91.2 113.2 113.0 125.1 110.9 90.6 September.. 108.9 127.9 103.0 108.1 116.3 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 96.8 99.8 108.0 100.0 90.6 112.5 118.2 129.4 100.9 94.2 November.. 100.0 121.6 96.2 105.5 117.2 89.2 89.4 84.3 83.9 86.4 99.6 115.6 126.3 85.9 94.3 December... 93.5 119.9 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 90.5 113.8 92.2 102.5 114.9 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 72.6 89.8 92.7 86.2 70.2 91.7 110.0 125.0 92.1 80.0 March 97.1 115.1 96.6 99.7 115.0 74.6 90.6 97.3 85.2 73.4 91.0 111.6 123.1 90.0 81.0 April 97.7 113.4 89.3 99.7 113.5 73.8 92.0 100.8 81.6 77.1 88.3 110.9 122.1 94.5 77.1 May 95.5 108.3 82.7 100.7 113.3 73.2 91.1 101.7 75.6 76.9 84.4 106.6 120.5 95.4 82.1 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. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

426 FEDERAL RESERVE BULLETIN JULY, 1930 BANKING AND BUSINESS CONDITIONS IN FEDERAL RESERVE DISTRICTS FEDERAL RESERVE BANK DISCOUNTS-BY DISTRICTS MILLIONS OF DOLLARS ( Weekly report date fibres ) MILLIONS OF DOLLARS 0 1926 1327 1928 1929 1930 1926 1927 1928 1929 1930 Latest figures are for June25; see table on following page Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

JULY, 1930 FEDERAL RESERVE BULLETIN 427 FEDERAL RESERVE BANKS—RESERVES, DEPOSITS, NOTE CIRCULATION, AND RESERVE PERCENTAGES [Average daily figures. Amounts in thousands of dollars] Total cash reserves Total deposits ' Federal reserve notes in Reserve peicent.ages circulation i Federal reserve bank 1930 1929 1930 1929 1930 1929 1930 1929 June May June June May June • June May June June May June Boston _ _ 244,110 254,110 182,048 149,559 148,612 145, 982 i 150,669 158,819 141,464 81.3 8? 7 63.3 New York 1, 000, 724 977,444 980,765 1, 010, 955 987,162 949, 587 181, 080 176, 748 281,017 84.0 i 84.0 79.7 Philadelphia 294 669 227,216 202,043 141, 639 137,279 136, 947 i 131,364 139,184 146, 575 82.3 •• 82.2 71.3 Cleveland 331, 297 323,241 293,180 200. 902 193, 764 188, 304 1 187,036 183, 612 205,217 85.4 85.7 74.5 Richmond 102, 630 105,712 82,021 67,952 67,016 69,485 66, 513 68,556 66,105 76. 3 78.0 60.5 Atlanta . _ 148,344 146,177 125,038 64,149 65,866 65,572 127,120 126, 765 129,479 77.6 75.9 64.1 Chicago 491, 505 518,746 518,195 354, 982 351,107 347, 621 ! 210,289 238,232 309,665 §'.#9 i 88.0 78.8 St Louis 116,227 120,994 82,663 78, 992 79,528 79, 576 73, 213 76, 521 57, 564 77.5 60.3 Minneapolis 77, 680 82, 370 89,408 53, 457 52,367 52,664 ; 54,699 57, 538 62,455 74.9 77.7 Kansas Citv . . .. 124, 274 126,643 105, 563 89. 660 88,877 90,295 70, 877 73, 299 67,447 77 4 78.1 66.9 Dallas I 60, 458 61,216 68,082 61,919 63,078 65, 369 '•• 31,961 31,771 37, 982 64.4 : 64 5 65.9 San Francisco .. 290,921 282,498 282,009 183,523 183,774 183,037 ; 156,482 154,464 162,041 85. 6 83. 5 81.7 Total 3, 212, 839 3226, 367 3.011,015 2, 457, 689 2,418,430 2,374, 439 .1,441,303 1,485,509 1,667,011 82.4 ; 82.6 74.5 1 i Includes "Federal reserve notes of other Federal reserve banks" as follows: Latest month, $20,208,000; month ago, $19,475,000; year ago, $18,862,000. ALL MEMBER BANKS—DEPOSITS SUBJECT TO RESERVE, RESERVES HELD, AND INDEBTEDNESS AT FEDERAL RESERVE BANKS [Average daily figures. In millions of dollars] Reserves held Indebtedness at Net demand deposits Time deposits Federal Reserve • •-• - • Federal reserve district Total Excess banks April March April March April March April March ; April March Boston 1,363 1,334 970 961 147.1 144.6 1.4 j 1.6 15.6 21.1 New York 7,067 6,912 3,355 3, 300 952.8 944.0 9.8 20.9 53.7 54.3 Philadelphia... 1,147 1,136 1,112 1,106 135.5 134.7 2.i ; 2.6 , 28.3 35.6 Cleveland 1,509 1, 486 1,666 1, 656 188.0 185. 2 3.4 ' 3.1 ! 26.4 31.1 Richmond 543 546 554 550 63.9 64.2 1.6 . 1.8 15.9 17.0 Atlanta 564 570 440 443 65.0 65.0 3.2 : 2.9 18.7 21.6 Chicago 2,604 2,553 2,076 2, 065 345.8 340.1 7. 5 i 7.8 22.7 35.2 St. Louis 685 68.1 535 536 78.6 2.1 1.6 13.9 14.0 Minneapolis.-. 428 '434 455 '455 51.3 51.8 2.7 2.8 3.1 2.3 Kansas City—. 831 842 362 361 87.8 88.3 4.1 3.8 12.2 15.9 Dallas 630 640 237 229 61.5 63. 2 2.1 3.5 7.9 8.3 San Francisco. 1,283 1,257 1,744 1, 740 172. 3 171.0 2.3 3.6 12.8 15.5 Total. 18, 653 18, 390 13, 506 13, 401 2, 349. 5 2, 330. 0 42.4 55.7 231.1 271.8 DISCOUNTS OF FEDERAL RESERVE BANKS, BY WEEKS DISCOUNTS OF FEDERAL RESERVE BANKS, BY MONTHS [In thousands of dollars] [Average daily figures. In millions of dollars] 1930 1929 Federal reserve bank June 4 June 11 June 18 June 25 Federal reserve bank June May June Boston 16, 586 17,171 15, 322 17, 307 Boston 17. 3 , 17.7 99.4 New York 48, 570 j 28,141 24,078 38,153 New York 57.1 ! 58.0 251.2 Philadelphia... 28,203 j 26, 292 25,477 28, 204 Philadelphia-., 28. 1 ' 29.8 84.7 Cleveland 17,924 I 20, 258 20, 276 29,341 l Cleveland 23.6; 21.0 90.9 Richmond 18, 707 18, 382 19,146 21,417 Richmond 19.7 ; 17.2 56.6 Atlanta 32, 788 30,189 28,639 26, 335 Atlanta 30.4 ', 27.6 65.9 Chicago 18, 391 16, 492 15, 622 19, 034 Chicago 18.1 i 20.6 135. 9 St. Louis 21,127 15,478 18,941 16, 863 St. Louis 18.1 | 15.5 49.9 Minneapolis. _. 3,622 i 3, 434 3,750 3,946 Minneapolis.. _ 3.8 j 3.8 15.2 Kansas City... 15,279 j 15,771 13, 488 12, 591 Kansas City... 14.2 15.2 48.3 Dallas 9,643 I 10, 358 9,896 9,986 Dallas 10.2 ! 8.7 22.3 San Francisco.. 8,518 12,159 San Francisco- 10.6 , 11.8 57.7 Total.... 239, 728 210,484 206, 794 231,505 Total-. 251.2 246.9 978. 0 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

428 FEDERAL RESERVE BULLETIN JULY, 1930 WEEKLY REPORTING MEMBER BANKS IN LEADING CITIES PRINCIPAL RESOURCES AND LIABILITIES BY WEEKS [In millions of dollars] Federal Reserve District City Total B to o n s- 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 n M o e l i a i n p s - - K C s a a it n s y - D la a s l- F c S i r s a a c n n o - Y N o ew rk C ca h g i o - Loans and investments: June 4 22,957 1,500 9,440 1,220 2,194 643 600 3,268 666 362 655 449 1,959 8,134 1,904 June 11 22,882 1,513 9,287 1,233 2,208 645 597 3,298 657 365 661 446 1,970 7,975 1,918 June 18 23,118 1,514 9,437 1,250 2,218 655 602 3,346 658 363 653 449 1,972 8,131 1,959 June 25 23,140 1, 522 9,516 1,247 2,231 651 602 3,296 660 361 651 445 1,958 8,229 1,940 Loans: June 4 17,038 1,146 7,067 915 1,529 479 468 2,588 489 239 435 341 1,343 6,122 1,518 June 11 16,966 1,156 6,933 926 1,520 483 466 2,609 496 243 442 338 1,354 5,986 1 522 June 18 17,128 1,148 7,069 928 1,525 479 465 2,649 501 242 435 335 1,351 6,130 1 558 June 25 _. 17, 059 1,153 7,078 926 1,529 473 466 2,588 504 239 434 331 1,337 6,158 1,527 On securities- June 4 8,605 519 4,232 475 743 195 151 1,296 213 88 138 114 441 3,753 926 June 11 8,564 523 4,109 485 752 202 150 1,314 224 90 147 112 457 3,630 918 June 18 8,615 510 4,196 487 742 196 148 1,322 228 89 136 108 453 3,726 918 June 25 -. 8,487 513 4,149 480 747 185 144 1,279 232 87 132 102 436 3,696 903 Another— June 4 --_ 8,434 627 2,835 440 786 283 317 1,292 276 151 297 227 902 2,369 593 June 11 8,402 633 2,824 441 768 281 316 1,295 272 153 295 225 898 2,356 604 June 18 8,513 638 2,874 440 783 283 317 1,327 274 152 300 227 898 2,404 640 June 25 __ _ _ 8, 572 641 2,929 446 782 288 322 1,308 272 153 302 228 901 2,462 624 Investments: June 4 5,919 354 2,373 305 665 164 132 680 177 123 220 109 616 2,012 386 June 11 5,917 357 2,355 308 688 162 131 689 161 122 219 109 616 1,989 397 June 18 5,989 365 2,368 322 693 176 136 697 157 122 218 114 621 2,001 401 June 25 6,081 369 2,438 321 701 177 136 •709 155 122 217 115 621 2,072 413 U. S. Govt. securities- June 4 2,799 157 1,187 77 309 74 64 307 51 72 95 65 342 1,066 156 June 11 _ 2,776 154 1,173 78 314 73 63 317 38 70 95 64 338 1,049 168 June 18 2,849 160 1,198 90 324 84 66 317 38 70 92 69 341 1,074 167 June 25 2, 877 159 1,229 86 328 86 64 320 39 70 92 69 337 1,113 170 All other- June 4 3,120 198 1,187 228 356 90 69 374 125 52 125 44 274 946 229 June 11 3,140 203 1,182 230 374 89 68 373 123 51 124 44 278 939 229 June 18 3,140 205 1,170 232 369 91 17 380 119 52 126 45 280 927 234 June 25 3,204 210 1,210 235 373 92 72 389 117 53 125 46 284 958 242 Reserve with F. R. banks: June 4 1,775 95 845 83 138 42 40 264 45 27 57 33 106 784 182 June 11 1,783 96 859 82 136 40 39 266 44 26 55 32 108 793 182 June 18 1,788 99 851 83 141 39 40 267 47 27 60 31 104 784 179 June 25 1, 779 94 857 81 142 40 39 261 47 25 56 33 104 789 176 Cash in vault: June 4 221 16 59 13 28 13 10 35 6 5 10 7 17 46 13 June 11 _ 223 15 61 13 27 14 9 35 6 5 11 8 18 49 13 June 18 215 16 59 13 28 11 9 34 6 5 10 7 17 47 13 June 25 216 16 60 12 28 11 9 34 5 5 11 7 18 48 13 Net demand deposits: June 4.. 13,633 879 6,263 729 1,093 349 316 1,920 366 227 483 285 722 5,641 1 271 June 11 13, 686 894 6,201 744 1,112 348 317 1,955 376 229 488 280 741 5,574 1,274 June 18 13, 638 877 6,221 740 1,098 339 308 1,955 375 226 489 274 738 5,602 1 281 June 25 13, 566 874 6, 262 726 1,104 340 308 1,873 374 225 i 477 274 729 5,661 1,244 Time deposits: June 4 7,161 500 1,951 307 971 249 244 1,219 227 128 i 180 152 1,033 1, 377 554 June 11. _ 7,182 501 1,974 309 969 253 244 1,219 226 128 182 152 1,024 1,399 554 June 18 7,228 506 2,033 309 969 250 245 1,214 226 129 185 153 1,011 1,457 547 June 25 7,273 506 2,035 310 969 251 245 1,242 227 128 193 151 1,016 1,459 572 Government deposits: June 4 . _ _ 28 2 11 2 2 3 2 1 2 3 10 1 June 11 20 1 7 1 2 2 2 1 1 2 7 1 June 18 213 17 77 18 19 17 17 11 3 1 3 12 17 71 9 June 25 _. __ 212 17 77 18 19 17 17 11 3 1 3 12 17 71 9 Due from banks: June 4 1,250 66 143 75 119 69 72 216 58 59 124 76 174 101 126 June 11 __ 1,243 59 156 74 115 68 70 201 57 59 130 78 176 109 107 June 18 1,375 72 167 81 120 75 80 214 70 63 156 87 189 118 118 June 25 1,358 47 170 71 112 81 73 228 65 65 165 86 194 113 132 Due to banks: June 4 3,064 127 1,103 174 269 99 100 481 118 82 191 89 232 1,027 343 June 11 2,975 125 1,025 176 273 96 98 473 117 81 189 85 236 952 339 June 18 3,117 132 1,086 184 286 101 96 491 129 79 200 88 246 1,010 347 June 25 3,098 118 1,119 172 279 95 93 482 120 79 199 84 258 1,047 347 Borrowings from F. R. banks: June 4 67 3 23 3 4 5 14 5 5 3 1 1 22 June 11 48 4 6 3 7 4 11 3 3 4 2 1 June 18 _ 44 4 1 2 7 4 9 2 6 2 1 5 June 25 54 4 8 3 14 6 7 1 4 2 2 1 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

JULY, 1930 FEDEKAL RESERVE BULLETIN 429 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 May April May cities May April ; May Boston.. _ _ _ 34,247 39,690 41,095 Boston 5,677 5,827 13,762 New York 122,954 123,494 125,125 New York.... 48,712 53,840 62,035 Philadelphia.. 23,254 42,034 37,809 Philadelphia.. 7,473 14,229 15,920 Cleveland 51,214 46,918 64,736 Cleveland 13,226 13,508 17,588 Richmond... 29,943 40,972 37,072 Richmond 8,492 12,351 8,903 Atlanta 37,923 21,745 33,578 Atlanta 4,158 3,740 7,373 Chicago 79,187 81,424 141,450 Chicago 25,684 18,349 59,322 St. Louis 32,876 28,331 41,020 St. Louis 5,917 6,605 5,183 Minneapolis 12,405 13,822 17,309 Minneapolis,. 3,832 3,707 3,709 Kansas City. 17,216 20,754 23,955 Kansas City.. 7,768 13,757 Dallas _ 16,196 24,068 24, 616 Dallas 5,127 6,158 7,122 San Francisco. 19,866 18,491 24,838 Total (11 districts) 457,416 483,252 587,766 Total... 168 156,433 164,572 j 239,511 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 SALES INDEX OF DEPARTMENT STORE STOCKS [Monthly average 1923-1925=100] [Monthly average 1923-1925=100] Without seasonal With seasonal adjustment adjustment Without seasonal With seasonal adjustment adjustment Num- Fede d r i a s l t r r i e c s t erve b st e o r re o s f 1930 1929 1930 1929 Fede d r i a s l t r r i e c s t erve N b st e o u r r m e o s - f 1930 1929 1930 1929 May Apr. May May Apr. May May Apr. May May Apr. May Boston _ . 36 108 107 108 104 99 105 New York 59 ! 119 120 113 117 115 110 Boston 34 94 94 102 93 91 101 Philadelphia 57 91 95 93 89 90 90 New York 34 109 '112 107 109 '108 107 Cleveland 55 104 112 108 99 103 103 Philadelphia 45 80 85 87 80 81 87 Richmond 28 112 113 109 111 '108 107 Cleveland 49 92 92 98 88 86 94 Atlanta 41 101 104 107 95 99 100 Richmond 28 95 99 99 94 94 98 Chicago. 94 113 119 121 108 111 116 Atlanta 29 91 95 100 91 91 99 St. Louis 19 96 109 105 95 102 104 Chicago 79 111 114 112 110 109 111 Minneapolis __ 18 90 99 88 86 88 84 St.Louis 19 91 90 91 89 85 90 Kansas City l 27 94 97 96 Minneapolis 14 69 72 75 67 70 72 Dallas 22 106 106 115 98 104 107 Kansas City * 21 110 115 120 San Francisco 34 114 114 120 109 113 114 Dallas 21 79 82 81 77 78 80 San Francisco 32 105 '110 103 104 104 102 Total 490 108 112 110 104 106 j 106 Total 413 98 '101 101 96 97 99 » Monthly average 1925= 100. ' Revised. } Monthly average 1925 = 100. r Revised. COMMERCIAL FAILURES * BANK SUSPENSIONS * IN MAY, 1930 [Amounts in thousands of dollars] [Amounts in thousands of dollars] Number Liabilities All banks M ba e n m ks b e 2 r Non b m an e k m s ber Federal reserve Federal reserve district 1930 1929 1929 district Num- De- Num- De- Num- Deber posits 3 ber posits 3 ber posits » May | Apr. May May Apr. May Boston 1 852 1 852 New York B C N S M P R C K A t h o h l i e a t . i c e l s w i i n n a c L h l v t s n a o n a m o e a Y e d n g t u s l a a o o e a o i p n l s n C r p o d k d h i l . i t i . s y a . - . . . _ . . . . . . . 4 3 2 1 1 1 1 1 7 5 8 6 5 1 5 3 2 0 5 8 9 2 1 3 4 3 4 7 4 2 3 1 1 1 1 1 9 3 2 5 6 3 1 3 2 1 6 6 6 7 7 6 4 0 8 8 3 2 2 1 1 1 1 8 8 9 0 5 5 4 0 1 2 7 2 2 7 5 2 8 7 7 7 1 9 3 4 3 2 8 2 1 4 , , , , , , , , , 4 0 0 9 0 3 3 1 2 5 9 7 2 5 6 3 8 9 6 1 8 8 3 9 8 8 9 5 3 4 8 5 2 2 8 4 7 2 1 , , , , , , , , , 5 4 2 1 9 3 1 3 9 2 7 1 1 1 5 8 6 3 0 4 6 3 4 4 5 6 9 0 3 4 8 3 8 5 2 1 1 1 1 , , , , , , , , , 1 9 8 2 5 2 6 0 3 4 0 2 1 7 3 2 5 3 3 4 3 3 5 4 2 7 3 2 8 6 A S M K D S C R C P a t h h l i a t a . i n e c l i i l n n a v c h l l L n s a a n a F e m o a s e d g t l r s u a a a o o e a i p n n n l C s p d o d c . i h l i . t i s y i s c a o . . 1 1 3 4 3 4 9 2 4 2 3 2 2 5 1 1 , , , , , , 4 5 8 1 0 9 6 2 8 4 5 7 6 3 6 7 8 9 7 1 4 6 4 2 1,368 1 1 3 4 9 2 4 1 2 4 3 2 2 5 1 , , , , , 4 8 0 1 9 6 1 8 4 7 5 6 6 3 5 8 9 1 7 4 4 6 9 D Sa a n l la F s rancisco.. 2 5 6 1 2 3 5 3 8 2 27 5 3 0 5, 9 2 8 3 2 4 4 1 , , 2 55 0 1 3 5 1, , 0 7 8 8 4 9 Total 52 18,608 3 2,220 49 16,388 Total 2,179 j 2,198 1,897 55, 541 49,059 41, 216 1 Banks closed to the public on account of financial difficulties by order of supervisory authorities or directors of the bank. 2 Includes 3 national banks with deposits of $2,220,000. 1 Figures reported by R. Q. Dun Co. 3 Subject to revision. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

430 FEDERAL RESERVE BULLETIN JULY, 1930 FOREIGN BANKING AND BUSINESS CONDITIONS ANNUAL REPORT OF THE BANK OF ITALY The annual report of the Bank of Italy for foreign markets and by long-continued negoti- 1929 was submitted to the meeting of share- ations concerning international problems; their holders on March 31, 1930. Sections of the solution, however, is expected to benefit all report are given herewith:1 the nations which were involved in the war. The international market.—The situation in Considering the difficulties in the way of an the international market throughout 1929 economic revival in countries better situated developed under the influence of conditions and than our own, it is no small satisfaction to events referred to at our last meeting. We record the steady development in Italy of the recall that abnormal conditions of credit and process of adjustment made necessary by the speculation were already prevailing in the currency reform which was introduced two United States of America—conditions which years ago. compelled the central banks of Europe, begin- First, w^e find that budget equilibrium has ning with the Bank of England, to protect their been well maintained. The financial year gold. Subsequently, attention was more par- ending on June 30, 1929, closed with actual ticularly directed to the New York market, receipts totaling 20,200,800,000 lire ($1,062,where the steady flow of foreign capital seeking 562,000), against expenditures of 19,645,700,000 a high return on short-term investments forced lire ($1,033,364,000)—a surplus of 555,100,000 stock prices to ever higher record levels. A lire ($29,198,000). Estimates for the present further contributing factor in the boom was the financial year 1929-30 originally contemplated large volume of domestic capital held outside receipts of 18,571,000,000 lire ($976,835,000), the control of the Federal reserve system and against expenditures of 18,313,000,000 lire applied to speculative purposes in spite of warn- ($963,264,000), with a surplus of 258,000,000 § ings issued by the Federal reserve authorities. lire ($13,571,000). Owing, however, to changes When, in the spring, the seasonal difficulties of brought about by supplementary estimates the German market culminated in the advance during the first eight months, it is estimated of the discount rate of the Reichsbank to 7% that for the full year receipts will be reduced to per cent, the already large movement of gold 18,347,000,000 lire ($965,052,000) and expendifrom London to North America was supple- tures increased to 19,396,400,000 lire ($1,020,mented by gold shipments to Berlin. Later 250,000), thus anticipating a deficit of 1,049,on, owing partly to the increased needs of indus- 400,000 lire ($55,198,000). The actual results try and trade in France, and partly to French for the first eight months, however, show tax restrictions on foreign investments, large receipts at 12,638,700,000 lire ($664,796,000) movements of capital took place from London and expenditures at 12,925,600,000 lire ($679,to Paris, until in September the heavy loss of 887,000), or a deficit of only 286,900,000 lire gold led the Bank of England to adopt the ($15,091,000). drastic remedy of raising the bank rate to 6K For the year 1930-31 it is estimated that per cent. By mid-autumn the speculative revenues will total 19,348,800,000 lire ($1,017,excesses in New York were followed by a slump 747,000) and expenditures 19,085,900,000 lire which, in addition to its other far-reaching ($1,003,918,000), resulting in a surplus of effects, brought about relief from the monetary 262,900,000 lire ($13,829,000). tension in Europe together with a return to The public debt, wxhich at the end of 1929 easier money rates and to calmer and more amounted to 87,689,000,000 lire ($4,612,441,normal conditions in the foreign exchange 000), increased altogether during the past year market. by 683,000,000 lire ($35,926,000)—which is less than 0.8 per cent—as the result of an increase Government finance.—For Italy the past of 828,000,000 lire ($43,553,000) in the floating year has registered a further step on the debt, against a reduction of 145,000,000 lire difficult path of economic restoration, although ($7,627,000) in the funded and redeemable that progress was limited by conditions in debt. The proportion of the floating to the 1 Taken with some textual revision from the abridged English trans- total debt has risen from 2.7 at the end of 1928 lation published by the bank. The report contains additional sections to 3.6 per cent at the end of 1929. It should dealing with the Young plan, the general international situation, industry, agriculture, savings, the Italian colonies, etc., and tables showing be remembered that the sum of 80,000,000 lire detailed operations of the bank. For earlier reports, see Federal Reserve ($4,208,000) is included in the floating debt in Bulletin for June, 1929, July, 1928, and August, 1927. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

JULY, 1930 FEDERAL RESERVE BULLETIN respect of old currency notes which have been during which exemption from fiscal duties written off; and that the debtor current ac- may be granted on foreign loans or bonds counts—which constitute by far the largest placed abroad. part of the floating debt—are the source of In the conduct of its normal activities during funds required by the Treasury. In other the past year the institute provided the necescountries such funds are provided through sary foreign currencies for Treasury payments Treasury bills, whereas in Italy issues of such outside Italy, for the ordinary requirements bills have been discontinued for a considerable of Government departments, for the service time. The Italian State, accordingly, has re- of the war debts to Great Britain and the frained from availing itself of its authority to United States of America, and of the Morgan obtain short-term advances from the central loan. bank to meet temporary cash requirements, During the past year, moreover, in accordthus conforming to the policy governing the ance with the terms of the convention made with circulation of notes. the Finance Ministry of January 31, 1927, the Stability of the lira.—In view of the events institute provided some of the foreign currenaffecting the foreign money markets and their cies required by certain public bodies for the inevitable influence on our rates of exchange, service of their foreign loans, the proceeds of the lira maintained a satisfactory degree of which had been originally transferred to the stability during the past year. This no doubt Treasury under guarantee of the rate of exwas partly due to the improvement in the change. position of our trade balance which, in its The Bank of Italy, as in the preceding year, turn, influenced the balance of international assisted the institute by supplying the foreign payments and the demand for foreign cur- currencies required whenever conditions were rencies with which to meet payments abroad. unfavorable for purchases in the open market. Another factor was the development of the Eeserve position.—The ratio of gold held as note issue; for in spite of an increase in the security against notes outstanding has risen bank's normal transactions, the note circu- from 29.21 per cent at the end of 1928 to 30.94 lation was further reduced from 17,300,000,000 per cent at the end of 1929, while the cover in lire ($909,980,000) to 16,800,000,000 lire foreign currencies has declined from 28.92 ($883,680,000). to 25.98 per cent; accordingly the ratio of the Italian National Institute of Exchange.—A total gold and foreign exchange reserve de- Royal decree of March 12, 1930, has restored clined during the past year from 58.13 to 56.92 the freedom of the foreign exchange market per cent. by repealing the provisions contained in the During the year 1929 the aggregate reserve Royal decree of June 10, 1926, and the minis- was reduced by 729,500,000 lire ($38,372,000), terial orders which were subsequently issued as a result of an increase in gold of 138,200,000 for its execution. The decree finally removes lire ($7,269,000) and a reduction in foreign all the remaining exchange restrictions, which currencies of 867,700,000 lire ($45,641,000). were inaugurated by decree law No. 1508 of The increase of gold is due, in respect to August 29, 1925, authorizing the Government 115,100,000 lire ($6,054,000), to the conversion to issue regulations having force of law with into gold of foreign balances, and, in respect regard to foreign exchange transactions. to the remaining ^23,100,000 lire ($1,215,000), Owing to special circumstances, these regula- to two half-yearly installments of £125,000 tions were continued even after the legal each, repaid in the course of the year by the stabilization of the lira, although their appli- British Treasury to the Italian Treasury, and cation had been gradually relaxed in prepara- then refunded to the Bank of Italy as part of tion for a return to normal conditions. The the gold which had been deposited in London repeal enacted by the decree of March 12 is when the war loans were originally concluded. evidence that under present monetary condi- Thus the amount of gold deposited abroad, tions these restrictions—always regarded as due from the State to the bank, has been retemporary—have become superfluous. The duced from 1,836,187,265 lire ($96,583,450) to repeal is supplemented by two further de- 1,813,136,661^lire ($95,370,988). crees, issued on the following day, the first The reduction of the reserve by a net amount of which removes the embargo on the export of 729,500,000 lire ($38,372,000), recorded durof coin and Italian securities payable abroad ing the past year, compares with a reduction in gold or gold currencies, and the second of 1,035,100,000 lire ($54,446,000) during 1928, extending until the end of 1933 the period which marks a considerable improvement in the 120082—30 6 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

432 FEDERAL RESERVE BULLETIN JULY, 1930 relative position. Moreover, not only was the BALANCE SHEET OF THE BANK OF ITALY AS OF DEdecline in the reserve during 1929 considerably CEMBER 31, 1929—Continued less than than in the preceding year, but its Lire (in Dollars influence on the percentage of reserve against thousands) (in thousands) demand liabilities was almost negligible; the ratio was maintained throughout the year be- RESOURCES—continued tween 55.81 and 55.13 per cent, as compared Due from domestic banks: with the legal minimum of 40 per cent. Clearing houses 112,972 i 5,942 Others 106,420 : 5,598 | 219,391 i 11,540 BALANCE SHEET OF THE BANK OF ITALY AS OF DE- Interest due from Treasury for account of "Isti- CEMBER 31, 1929 tuto di Liquidazioni" I 455,876 23,979 Credit with "Istituto di Liquidazioni" j 851,380 44,783 Bank premises _ I 149,106 7,843 Dollars i Unpaid capital.. 200,000 10,520 Lire (in (in thou- Other resources _ | 1,040,649 54,738 thousands) sands) Total resources _ 22,475,343 1,182,203 LIABILITIES RESOURCES Reserve: Notes in circulation 16,774,337 Gold at home 5,190,138 273,001 Demand drafts outstanding. 602,761 31,705 Treasury current account 300,000 15,780 Other gold assets- Current accounts 1,082, 088 56,918 Balances abroad _. 3,614,252 190,110 18,759,186 Foreign Treasury bills 1,536,887 80,840 Capital _.._ 500,000 26,300 6,151,140 270,950 Surplus __ 100,000 5,260 Extraordinary reserve - 32, 500 1,710 Total reserve 10,341, 278 543,951 Undivided profits (net for the year) 73,795 3,882 S O t t i a h te t e e d r d a c e a s b s c t h o t l o la t t h e e r a b l a a n b k r o o a n d a ccount of gold _ depos _ - . 1,8 1 1 97 3 , , 1 5 3 5 7 0 9 10 5 , , 3 3 7 9 1 1 S T F p i r x e e e a c d i s a u l T r s y r e e c a d u s e u r p i r t o y y s i d a t e c f p c o o o r u s i n t a s t c s c ount of "Istitu . to di 1,4 4 8 1 8 , , 6 6 3 4 4 5 7 2 8, , 3 1 2 9 1 0 Domestic bills 4, 318,674 227,162 Liquidazioni" _ 300,000 15,780 Bills for collection 33,087 1,740 Other liabilities 1,179, 585 62,046 Advances to customers 1,802,191 94, 795 Government securities 1, 053, 026 55,389 Total liabilities 22,475,343 I 1,182,203 i Conversion at par: 1 lira=$0.0526. ANNUAL REPORT OF THE NATIONAL BANK OF HUNGARY The annual report of the National Bank of York exchange brought about an easing of the Hungary for 1929 was submitted to the general tension in the money markets; at the same assembly of shareholders on February 3, 1930.time gold began to leave the United States in Selected sections of the report are given considerable volume, and some improvement in herewith:1 the capital markets became evident. During the year under review a decisive The unfavorable development of the interinfluence was exercised upon the international national money and capital markets could not money and capital markets by the speculative fail to exercise its effect upon the general movement which forced up quotations on the economic situation, particularly in such coun- American stock exchange almost without inter- tries as are dependent upon the import of ruption until autumn, after which quotations foreign capital, where economic activity showed fell sharply within a few weeks to the level a general decline as compared with the previous recorded two years ago. The power of the year. The history of the year under review New York boom to attract capital drove up thus gave fresh evidence of the truth that the rates of interest in almost every country in the import of foreign capital is but an unreliable world, caused a considerable influx of gold from substitute for deficiencies in the accumulation other States, and in capital exporting coun- of capital at home. tries—with the exception of Switzerland—led General Survey of Hungary's economic situato a considerable fall in foreign issues. These tion.—Hungary was one of the countries most conditions persisted until the end of October, affected by the unfavorable situation in the inwhen the collapse of speculation on the Newternational markets. Whereas in each of the 1 Taken with some textual revision from the English translation two years previous the proceeds of long-term furnished by the bank. In addition the report contains some discussion foreign loans amounted to about 260,000,000 of international affairs, agriculture, industry, commerce, and trade, and gives tables showing detailed operations of the bank. For earlier reports, pengos ($45,474,000), the amount of capital see FEDERAL RESERVE BULLETIN, June, 1929, August, 1928, June, 1926, imported during 1929 in the form of long-term etc. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

JULY, 1930 FEDEKAL KESERVE BULLETIN 433 and medium-term loans aggregated altogether so fully as in previous years, particularly as the only about 230,000,000 pengos ($40,227,000); inland accumulation of deposits showed a conof this amount 125,000,000 pengos ($21,- siderable decline. On the other hand, the 863,000) represented the proceeds of the first increased cost of production due to the advance installment of the so-called "Match loan" and in money rates, accompanied by a downward the funds obtained by discounting the second tendency in prices of both agricultural and installment of the same loan. In previous industrial products, materially reduced the years, moreover, there was a considerable influx profits of undertakings working with borrowed of capital in the form of short-term foreign capital. credit; the amount of Hungary's short-term An even more powerful influence on our foreign credits increased during 1927 by economic situation was the fact that, as a 230,000,000 pengos ($40,230,000) and during result of the considerable price decline in world 1928 by 90,000,000 pengos ($15,741,000). markets, our surplus stock of grain could be During the year under review, so far as can be marketed only on extremely unfavorable terms. ascertained from the data at present available, This was all the more seriously felt by our the amount of short-term foreign credits agriculture, because this year's wheat harvest showed a decline. Even though any further was not even of average amount. The decline increase of the country's short-term indebted- in the purchasing capacity of our farmer classes ness might not be desirable—in view of the dan- had, of course, an unfavorable effect upon other ger of a sudden withdrawal of the foreign capi- branches of production. tal thus invested—nevertheless our economic Statistics for the past year showed a decline situation last year was undoubtedly affected in many branches of production, consumption, by the fact that the volume of funds made and trade, as compared with the previous year. available through foreign loans was not in- The decline, however, does not seem to have creased but was actually decreased by the been general, as certain other branches showed movement of short-term capital. The net an advance. Consequently, despite some unamount of interest and dividends paid to for- favorable symptoms, there is no reason for eign countries during the year was probably pessimism. Events of the past year focussed in excess of 150,000,000 pengos ($26,235,000), attention on certain serious problems which which, together with the sinking-fund pay- call for immediate solution—among others, on ments on previous loans, almost exhausted the the fact that the scale of our public expenditures amount of foreign capital imported. It be- is entirely out of proportion to the national came necessary, therefore, to draw upon the economy; and that the surpluses obtained by country's gold and foreign exchange reserves to the Treasury in previous years were the result cover the adverse foreign-trade balance and the of capital imports rather than evidence of the other debit items in the balance of payments. county's tax-paying capacity. According to data available, the gold and for- According to the data at present available, eign-exchange reserves of the country declined the adverse balance of our foreign trade deduring the year from 110,000,000 to 120,000,000 clined from about 370,000,000 pengos ($64,713,pengos ($19,239,000 to $20,988,000). 000) for each of the two previous years to There can be doubt that Hungary should not considerably below 100,000,000 pengos ($17,continue to borrow abroad to the same extent 490,000)—certainly a favorable phenomenon. as was done in 1927 and 1928, arid that the aim The elimination of the deficit in our foreign of a well-directed economic policy should be to trade balance must be one of the cardinal points create conditions under which economic prog- in our economic policy. We must not, howress may be secured without permanent assist- ever, lose sight of the fact that the reduction ance from foreign capital. On the other hand, during the past year is due partly to the decline a sudden large scale decline of capital imports in the volume of imports—a decline not always will—temporarily at least—exercise a paralyz- the result of economy, but often the reflection ing effect upon the economic situation. This of lowered economic activity and purchasing is particularly true when the decline reduces power, arising out of curtailed capital imports. the volume of available capital below what is Even the increase of our exports is due in part needed for the normal economic development of to the fact that a considerable proportion of the country. During the past year this para- the surplus stocks remaining from the record lyzing effect, accompanied by a material wheat harvest of 1928 could not be exported advance in money rates, was keenly felt. It until 1929. It is, however, also due in part to was impossible to meet the demand for credit an improvement in our ability to compete with Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

434 FEDERAL RESERVE BULLETIN JULY, 1930 foreign countries. During the first nine months 44 per cent in excess of that recorded during the of the year under review—excluding our agri- same period of the preceding year. The essencultural industries altogether—the value of tial soundness of our financial organization is manufactured articles exported from Hungary shown, however, by the fact that the one or two was 15,000,000 pengos ($2,624,000) in excess of outstanding bankruptcies among our banking that recorded for the corresponding period of companies and private banking houses involved the previous year. This growth in productive no serious consequences. capacity is encouraging, for it shows the success Changes in the volume of deposits indicate of efforts to improve the foreign trade balance that the development of our banking institu-r through development of exports. tions was far slower than in previous years. Credit conditions.—During the early months Nevertheless, their turnover shows a further of the year there was the usual seasonal decline advance, and profits were maintained at the in the demand for credit, and a slight recession level of previous years. in interest rates. During the second half of Stock exchange.—On the stock exchange April, however, as a consequence of consider- there was even less activity than during 1928; able demands for foreign exchange on the this was particularly true of the second half of National Bank of Hungary, it was found neces- the year. Apart from a few slight fluctuations, sary to raise the official bank rate by 1 per quotations showed a constant downward tendcent—from 7 to 8 per cent. During April the ency, and at the end of December wxre from advance in open-market rates and in interest 20 to 30 per cent lower than those recorded a rates on loans was, generally speaking, less year earlier. pronounced than that in the official discount Prices.—All price indexes showed a decline rate. By autumn, however, some open-market during the course of the year—the result of the rates were more than 1 per cent—in certain trade recession and the fall in prices of agriculcases more than 1% per cent—higher than in tural and industrial products. As agricultural February and March. This firmness continued prices declined more than those of industrial until the end of October, when the relaxation products, the divergence between the index in the international money markets resulting figures of the two groups of commodities befrom the collapse of the boom on the American came more pronounced during the course of stock exchange enabled the National Bank to the year. Both the cost of living index and lower the discount rate by one-half per cent the index of retail prices declined by about 5 at the beginning of November; that measure per cent. was followed by a general reduction in rates of Public finances.—The year under review interest. marked a turning point in the development of The advance in interest rates during the late our public finances. Whereas during the pespring and summer w^as due—apart from the riod from the beginning of the economic reconeffect of higher rates for short-term foreign struction until the end of the first half of the credits—to difficulties in meeting the demand ! fiscal year 1928-29 Government receipts showed for credit caused by the decline in capital I a considerable excess over expenditures, there imports and the retarded accumulation of ! was no surplus in 1929. During the first six domestic deposits. Owing to the fact that | months of the current fiscal year the receipts during the year the amount of mortgage bonds of the State administration were less by placed abroad represented a total value of 41,700,000 pengos ($7,293,000) than during only 39,000,000 pengos ($6,821,000), as against the corresponding period a year ago. Inas- 119,000,000 pengos ($20,813,000) in the previ- much as budget equilibrium is one of the most ous year, our banks had great difficulties in important foundations of a country's economic granting long-term mortgage loans. life, we are deeply gratified by the efforts of the Another obstacle to the satisfaction of credit Government to reestablish equilibrium through demands, especially during the second half of reduction of public expenditure. Only in this the year, was the increase in the number of in- way can stable results be obtained, for under solvencies and the increasing difficulties of col- existing economic conditions no further increase lection as claims matured, which made creditors of the heavy tax burdens can be contemplated. more cautious. The deterioration in respect to Reserve position of the bank.—The gold and solvency is shown also by the considerable rise foreign exchange reserve of the bank had dein the number of bills protested. The amount clined during 1928 by 54,000,000 pengos represented by protested bills during the first 11 ($9,445,000), and at the beginning of 1929 months of the year (110,200,000 pengos) was amounted to 263,600,000 pengos ($46,104,000). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

JULY, 1930 FEDERAL RESERVE BULLETIN 435 It maintained a fairly constant level during amounted to 209,800,000 pengos ($36,694,000), January, and in the first week of February ad- the net reduction for the year being 53,800,000 vanced to 270,800,000 pengos ($47,363,000), pengos ($9,410,000); of this, 38,300,000 pengos the highest level of the year. A renewed down- ($6,699,000) represent the decline in the stock ward movement brought it to 219,800,000 of gold. As a result of the depletion of its pengos ($38,443,000) on April 23. In view of stock of foreign exchange the bank was comthe considerable demand for foreign exchange, pelled to sell gold in London to the value of the executive committee of the board of di- £1,000,000 in April and to the value of £500,000 rectors decided at its meeting on April 23 to in July in order to insure the necessary freedom raise the discount rate as from April 24 by 1 of movement. per cent—from 7 to 8 per cent. The raising of the bank rate had the effect BALANCE SHEET OF THE NATIONAL BANK OF HUNGARY of retarding the decline in the reserve, but AS OF DECEMBER 31, 1929 failed to stop it. By the end of May the ratio of the legal reserve against notes in circulation Pengos Dollars » (in thou- in (thouhad declined to 37.66 per cent; and by June 15 sands) sands) the gold and foreign exchange reserve had fallen below 200,000,000 pengos ($34,980,000). In RESOURCES spite of the continued decline in the reserve, Metallic reserve: Gold coin and bullion, foreign and commercial the bank authorities refrained from raising the gold coin (1 kilogram of fine gold=3,794 official rate further. In taking this decision pengos) 162, 749 28,465 Foreign bills of exchange and currencies inthey were guided by the consideration that a cluded under art. 85 of the bank statutes 39,092 6,837 Token coin 7,911 1,383. further advance would constitute an additional burden on the economic life of the country, Total metallic reserve _ _ 209,751 36, 685already in an extremely unfavorable situation; Domestic bills, warrants, securities 329,494 57,629* Advances on securities 56 10 and by the expectation that after the harvest State debt.. _ 87, 543 15,311 agricultural exports might enable the bank to Bank premises 6,139 1,074 Other resources . 55,922 9,781 replenish its gold and foreign exchange reserve. Total resources. 688, 905 120,489 Realizing, however, that in all probability the demand for foreign exchanges was likely during LIABILITIES the next few months to exceed the supply, the Note circulation: Pengo notes . 498, 607 87,206 bank authorities—availing themselves of the Crown notes « 1,993 \ 349 right provided for in paragraph (a) of article Total note circulation 500, 599 87, 555 57 of the statutes—made an agreement with a Current accounts, deposits, and other liabilities group of foreign banks of issue, by the terms of payable on demand: Public 69, 912 12, 22S which these banks undertook to grant the Private 28, 351 4,959" National Bank of Hungary a short-term gold Total 98, 263 17,186 credit in an amount not to exceed 10,000,000 Capital .. . 34, 756 6,079 United States dollars. Not more than Surplus _. 7,607 1,330 $5,000,000 were actually taken under the credit, Profits brought forward from 1928 and net profits and this amount only temporarily. From the for 1929 _ 10, 242 1,791 Profits carried forward to 1930 _. 1,777 311 second half of August there was a considerable Other liabilities 35, 660 6,237 influx of foreign exchanges to the bank, partly Total liabilities 688, 905 120, 489 out of the proceeds of fresh foreign loans (principally the so-called "Match loan'7) and i Conversion at par: 1 pengo=$0.1749. partly out of the excess of exports, so that the During the course of the year the volume of bank was able to repay the amounts which it demand deposits decreased by 142,600,000 had taken under this credit. ($24,941,000) to 98,300,000 pengos ($17,193,- Since August the gold and foreign exchange 000). This very considerable decline was due reserve has stood at about 210,000,000 pengos almost exclusively to the reduction in Govern- ($36,729,000). The position of the reserve was ment balances. As a result of this reduction, not prejudiced even by the lowering of the the volume of demand liabilities—notes in bank rate on November 4 from 8 per cent to circulation plus demand deposits, minus the 7% per cent—a measure rendered possible by amount of the State debt due to the bank— the material improvement of the situation in against which the legal reserve ratio is calthe international money markets at the end culated, was considerably less at the close of of October. On December 31 the metal reserve 1929 than it had been a year before. Conse- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

436 FEDERAL RESERVE BULLETIN JULY, 1930 quently the reserve ratio during the last four of the State debt due to the bank was reduced months of the year, notwithstanding the reduc- by 9,700,000 pengos ($1,697,000). The effect tion in the gold and foreign exchange reserve, which this reduction might have exercised in was higher than in the corresponding period of lowering the reserve ratio was slight compared 1929. The yearly average of the reserve ratio with the contrary effect produced by the far in 1929 was 42.90 per cent as against 45.95 per larger reduction in demand deposits and note cent in 1928. During the year the amount circulation. ANNUAL REPORT OF THE BANK OF LATVIA The Bank of Latvia has issued its annual ance of payments. The adverse balance of report covering the year 1929. Sections of the payments was, of course, smaller because (1) report are given herewith:1 the merchandise balance is always less adverse The merchandise balance.—In consequence than is shown by official calculation; (2) the of the subnormal harvest, it became necessary invisible items in the balance of payments are to import large quantities of grain from abroad, generally favorable, and these were augmented not only for food, but also for sowing. Thus, last year by the flotation of a foreign loan. imports were stimulated to a high degree and, Owing to the adverse balance of payments in in the first half of 1929, goods were imported to the first half-year, the foreign currency reserves the value of 176,000,000 lats ($33,968,000), as of the Bank of Latvia declined by 27,000,000 against 130,000,000 lats ($25,090,000) in the lats ($5,211,000). These reserves had already corresponding period of the preceding year. declined by 14,000,000 lats ($2,702,000) in the The situation was aggravated by the fact that last quarter of 1928. With the improvement exports, instead of showing a development noted in the second half-year, and the practical parallel to that of imports, decreased consider- restoration of equilibrium, there was no further ably—from 120,000,000 lats ($23,160,000) to reduction in the bank's stock of foreign cur- 100,000,000 lats ($19,300,000). This was due, rency, which actually increased by nearly first, to the suspension of export traffic through 4,000,000 lats ($772,000). The net decline in the obstruction of navigation caused by the foreign currency reserves for the year was abnormally cold winter, while the more ex- 23,000,000 lats ($4,439,000), but the bank's pensive import of goods by rail was not affected; permanent stable reserves always much more and, second, to the fact that, after unfavorable than covered the issue. The bank put into conditions in the flax market had led us to circulation only 45 per cent of the permissible postpone the sale of our flax crop, we had to issue; and on January 1, 1930, bank notes in dispose of it later at such low prices that the circulation were covered to the extent of 121 revenue from flax was considerably diminished. per cent by gold and foreign currency. Credit policy of the bank.—Various changes During the second half-year, after the new took place in the employment of resources last and comparatively good harvest had been year, as shown by the altered proportion of the gathered in, conditions became more favorable, sums allocated to loans, reserves, and bonds. partly because imports of grain for immediate Whereas in the two preceding years the reserves consumption declined. At the same time, exincreased constantly and the amount of credits ports began to show a decidedly upward tenremained practically unchanged, last year creddency, especially in the case of timber, flax, its increased considerably, while reserves debutter, and various manufactured goods. clined. The actual increase of credits was even Trade returns for the second half of the year, larger than indicated by the figures, inasmuch therefore, were less adverse than those of the as for several years the bank's loans transferred first half-year; but, owing to the enormous to the Latvian Mortgage Bank have been excess of imports during the first six months, included among loans to manufacturers, and the final results of our foreign trade in 1929 have only lately, since the receipt of debentures were very unsatisfactory. of the mortgage bank been shown in the figures Balance of payments and reserves of the of investments in bonds. bank.—As was to be expected, the adverse Although the bank's total credits increased merchandise balance was reflected in the balconsiderably last year, the fundamental principles of its credit policy have not been altered. i Taken with some textual revision from the English translation pub- Every precaution was taken in the granting of lished by the bank. In addition, the report contains sections dealing with State financesa nd credits, private credit institutions, agriculture, new credits, and they were extended only for industry, and commerce, and gives tables and charts showing detailed operations of the bank. purposes of normal economic development. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

JULY, 1930 FEDERAL RESERVE BULLETIN 437 Compared with the large advance in credits bentures of the State Land Bank received in extended by the State, as a result of the diffi- exchange for the loans previously granted to cult agricultural situation in the past year, cred- farmers by the Bank of Latvia and subseits of the Bank of Latvia showed a very mod- quently transferred to the Land Bank as longerate increase. Larger credits were granted to term operations. The latter resolution effecagriculture through the State Land Bank, and tively checks the granting of new credits to the Bank of Latvia had to exercise great care farmers, inasmuch as the 10,000,000 lat limit in order to prevent their causing too great an has been reached already. expansion of the note issue and of the volume As in previous years, the Bank of Latvia of imports. Economic requirements produced endeavored to relieve the situation of farmers. a considerable increase of exports as it was, For, although extensive credits have been diswhich would have been still greater if the Bank tributed to farmers by the State banks, the of Latvia had adopted an easy credit policy. problem of agricultural credits is by no means In that case, imports would have passed the solved. In the first place, part of this credit limits of necessity, the demand for foreign cur- has proved too expensive owing to the low rency with which to pay for the goods imported returns from agriculture. Second, the form would have been much greater, and the stable of credit is not always adapted to the needs of reserves of the bank would have been reduced agriculture. This applies in particular to the below the legal limit. The bank had, therefore, 6-month bills which our farmers often make use to restrict the demand for foreign currency so of for seasonal requirements and for other far as possible in order to keep the reserve ratio purposes, owing to the very limited amount of at the desired level. The result was that not official long-term credit available. Experience only did the outflow of foreign currencies cease shows that short-term credits are not adapted in the second half-year, but it even became to agricultural requirements, as farmers seem possible to replenish them to some extent. unable to accustom themselves to regular Agricultural credit.—At the close of the settlement of bills on fixed dates. This leads fiscal year 1928-29, after the difficulties result- to complications and encourages the mistaken ing from the bad harvest had been overcome idea that protested bills are a normal feature and the new harvest had been gathered in, it of our economic life. was found that imports showed no signs of The Bank of Latvia is doing its utmost to decreasing and the balance of payments make credits cheaper and to facilitate condirendered no surplus. It became obvious, tions of payment. In pursuance of this aim, therefore, that steps should be taken to credits to farmers have always been granted restrict imports and safeguard domestic pro- on easier terms than to other fines of economic ducers against foreign competitors. The most activity, taking into consideration the low powerful weapon for this purpose—namely, returns from agriculture. So far, farmers have the customs tariff—was, of course, available to had to pay only 5K per cent for direct credits Parliament, but its machinery is not adapted against mortgages on real property, and the to cases of urgent necessity. No changes have rediscount rate to credit institutions in country in fact been made in the customs tariff, though districts WSLS 5 per cent—that is, from 1 to 2 the need for certain modifications became per cent lower than to urban credit instituobvious when, owing to the low prices of grain tions—with the stipulation that they may not in the international market after the harvest charge their clients more than 8 per cent for was collected, the position of our farmers failed the sums received from the Bank of Latvia— to improve according to expectations. In that is, from 3 to 4 per cent less than is charged these circumstances the Bank of Latvia used for ordinary credits in towns. the only means available—namely, its credit After careful consideration, the council of the policy—for adjusting the situation. In order bank agreed that even these rates were too to restrict the imports, the bank council high under prevailing agricultural conditions, decided to grant no more credits against bills and decided, therefore, on new measures for of any kind. In order to promote exports, it facilitating agricultural credits, and for gradual was decided not to restrict the discounting of liquidation of credits previously granted but export drafts and loans against goods made or extended from term to term. Briefly, the new produced in this country. Further, it decided measures are as follows: not to allow the total sum of credits to farmers The total volume of credit granted to credit against mortgages on real property to exceed institutions in the country up to January 1 of 10,000,000 lats ($1,960,000), including the de- the current year shall be allocated as from this Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

438 FEDERAL RESERVE BULLETIN JULY, 1930 date for agricultural credits, to be extended the bank's rates of interest, so far, has been the through the medium of the credit institutions. lowering of the cost of loans for agriculture, as Consequently, about 30,000,000 lats ($5,790, explained above. The ordinary rates of in- 000) of the resources of the Bank of Latvia are terest of the Bank of Latvia are as follows: to be used in this way, and so long as the State (1) To credit institutions in the country— does not reduce its reserves in the bank, this (a) For rediscount of bills, and Per ceQt sum will be available for agricultural credits (b) For special current accounts secured through the mutual credit institutions in by bills of credit institutions which charge their clients 8 per cent or country districts, on easy terms and at lower less 5 rates of interest. The bank will charge the (c) For all other loans and special curcredit institutions 3 per cent for these loans, on rent accounts of credit institutions which the latter shall not charge more than 5 which charge their clients 9}£ per cent or less 6}£ per cent. Furthermore, in granting such (2) To farmers— credits, the bank will accept bills of a maturity (a) For loans against solo bills, secured up to nine months (instead of six months as by mortgages on real estate in the heretofore), as also mortgages on real property country 5}£ (6) For special current accounts of a in country districts, which is not overbursimilar nature 6}£ dened. At the end of each year, one-twentieth (3) To credit institutions in towns— of the aggregate credits granted on easy terms (a) For rediscount of bills of credit instishall be converted to ordinary terms, that is, tutions which charge their clients 11 per cent or less 6 the bank will charge 5 per cent on these sums, (b) Which charge their clients 12 per and the mutual credit institutions will be cent 7 authorized to employ them only for short-term (c) For all other loans and special curcredits to agriculture, repayable on terms fixed rent accounts of credit institutions which charge their clients 11 per by the institutions, and not to be extended. cent or less 6}£ Classification of loans.—The bank's credits (d) Which charge their clients 12 per have been distributed among the different cent 7% lines of economic activity as follows: (4) To private persons and enterprises— (a) For discount of bills 7}i (b) For all other loans and special cur- CLASSIFICATION OF LOANS ACCORDING TO LINES OF rent accounts 8 ECONOMIC ACTIVITY (5) For discount of export drafts 6 [Lats, in millions] Gold and foreign currency.—Gold and foreign currency form the stable reserves of the Bank of j To To Latvia for the cover of issue. The stocks of To I To far- ! credit credit manu- To | mers' To | insti- insti- gold have undergone practically no change in Date fac e t r u s r- c m ha e n r- ts z o a rg ti a o n n i- s armers j t in u t t i h o e ns tut i i n ons the past five years. Their slow increase—from country towns 8,900,000 lats ($1,718,000) to 9,200,000 lats ($1,776,000)—is the result of buying and Jan. 1, 1924 15.6 9.2 1.1 2.7 10.1 selling gold in small quantities, with the offer Jan. 1, 1925 24.7 29.1 4.3 13.5 25.2 Jan. 1, 1926 29.6 28.0 4.7 17.8 34.2 generally in excess of the demand. The bank Jan. 1, 1927 42.5 16.4 4.5 26.0 36.5 does not deem it desirable to augment its gold Jan. 1, 1928 37 1 18.4 3.0 27.3 38.5 Jan. 1, 1929 ._ 33.5 14.5 3.5 28.4 41.9 reserve by buying more gold in the foreign Jan. 1, 1930 36.2 19.3 5.3 30.8 46.6 market, as it is more profitable to deposit the reserves in first-class foreign banks which pay Interest rates.—Notwithstanding the in- interest on them. This policy was justified by creased cost of credit in the international money the large profit rendered to the bank in the past market, the bank has not altered its rates on two years, when credits were dearer everyloans since April 1, 1928. The only change in where. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

JULY, 1930 FEDERAL RESERVE BULLETIN 439 BALANCE SHEET OF THE BANK OF LATVIA AS OF BALANCE SHEET OF THE BANK OF LATVIA AS OF JANUARY 1, 1930 JANUARY 1, 1930—Continued Lats Dollars i Lats Dollars i (in thou- (in thou- (in thou- (in thousands) sands) sands) sands) RESOURCES RESOURCES—continued Stock of gold: Foreign gold coin 1,330 Inventory and real property: Gold bullion belonging to the bank, abroad._. 7,870 1,519 Inventory . 305 59 Gold bullion deposited by the exchequer 14, 733 2,843 Real property.. _._ 381 74 23, 933 1 4,619 686 132 Other resources _. 2,728 527 Fore F ig o n re c ig u n r r s e i n lv c e y r : coin 38 7 Total resources 251, 742 48, 586 F9reign currency 756 146 Due from foreign banks 48, 697 9,399 LIABILITIES Bank notes issued 48, 464 9.354 49, 491 9,552 Deposits: Latvian State money: Silver money, Treasury Net demand deposits 11, 207 2,163 notes and small coin _. 18, 446 3, 560 Fixed deposits 4,187 808 Postal checks 677 131 15, 395 2,971 Short-term bills: Current accounts: Discounted foreign drafts.. 6, 738 1,300 Current accounts 50, 989 9,841 Discounted bills 58, 688 11, 327 Current accounts not bearing interest 6,843 1,321 Discounted bills with branches and corre- Current accounts in foreign currency 2,108 407 spondents 1,463 282 Due to banks 1, 265 244 Special currency account secured by bills 27, 888 5,382 61, 206 11,813 94, 777 18, 292 Exchequer... 93, 718 18. 088 Capital: Spec A ia g v l a a c i l n u u s r e t r s e o n b t l i a g c a c t o io u n n s t s o n a n re d a l l o p a r n o s p : erty and other 31, 9 6 1 1 4 4 6,1 1 0 7 2 6 S S C p u a e r p p c i i l t a u a l l s r p e . a s e id rv u e p fund.. _ 1 3 3 7 , , , 0 5 6 1 0 6 0 0 2 3, 7 6 2 7 0 8 6 7 3 Against agricultural and industrial plant 20, 408 3,939 24, 172 4, 665 Against goods 52, 935 10,216 P O r t o h f e it r l a i n ab d i l l i o t s ie s: s Net profit for 1929. . ( 1 i, , 8 8 8 9 8 9 1, 3 3 6 3 4 2 Bonds 8,068 1,557 Total liabilities 251, 742 48, 586 i Converted at par: 1 lat = $0,193. ANNUAL REPORT OF THE CENTRAL BANK OF BOLIVIA The first annual report of the Central Esn growing industries of the country, in addition of Bolivia, covering the year 1929, was sub-to its services to the State, it nevertheless mitted to the superintendent of banks on lacked the specific and complete organization March 27, 1930. Sections of the report are which is characteristic of central banks. given herewith:1 Accordingly, with the advice of both local and Organization of the Central Bank of Bolivia.— foreign bankers, a new central bank law was The Central Bank is not a complete innovation proposed, together with other fiscal laws which in the banking organization of Bolivia; many had been prepared by the commission of finanof the rights and duties—such as the exclusive cial advisers headed by Prof. Edwin W. privilege of note issue and of being sole depos- Kemmerer. The recommendations offered by itory of Government revenues, and the obliga- this mission wTere incorporated in our financial tion to maintain the stability of the monetary legislation and consist of the following: The system—usually conferred on banks of this general banking law, the monetary law, and character had been granted to the Banco de la the reorganization of the Banco de la Nacion Nacion Boliviana.2 Thus, it was the desire of Boliviana as a central bank. the Government and of Congress in the years On July 1, 1929, the Banco Central de 1911 and 1913 to create a separate institution Bolivia began its functions. Prior to this, on which should control Bolivian credit and eco-June 25, the various contracts were signed nomic policy. between the bank and the Government in The mixed character of the Banco de la accordance with chapter 9 of the organic law Nacion Boliviana—being both a bank of issue and an institution providing long-term credit— 1 Taken with some textual revision and rearrangement from the English translation published by the bank. In addition, the report prevented it from fulfilling its original purpose. contains a discussion of the general economic situation, relations of the Central Bank with the commercial banks, the exchanges, the budget and Although as a commercial bank it gave effec- public debt, etc., and gives tables showing detailed operations of the tive aid to the business interests and to the 2 Established in 1911. (Ed.) Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

440 FEDERAL RESERVE BULLETIN JULY, 1930 which specifies the obligations of the State to mental, and municipal bonds is being slowly the Central Bank. This contract was supple- and prudently liquidated into short-term promented by the contracts of September 2 and ductive operations. For example, investments 10 of the same year, in which the Government in the portfolio, which in 1927 amounted to and the associated banks agreed upon the 12,600,000 bolivianos ($4,599,000), have been amount of capital to be authorized, subscribed, reduced to 4,400,000 bolivianos ($1,606,000); and paid in, as well as upon the amount of the current accounts and long-term loans have been surplus. reduced from 47,700,000 bolivianos ($17,411,- The Central Bank of Bolivia, like other 000) to 26,200,000 bolivianos ($9,563,000). A similar institutions organized since the World payment of 16,137,470 bolivianos ($5,890,177) War, is based on the fundamental principles of made by the Government contributed materithe Federal reserve system of the United States, ally toward this reduction. We make comwhich, as is generally known, has adapted and parisons with the year 1927 because it was at put into practice some of the methods of bank- that time that the directors of the Banco de ing and monetary control previously elaborated la Nacion Boliviana, foreseeing its reorganizaby the Bank of England. Experience has tion, began to liquidate so successfully the shown that the Central Bank, in order to per- long-term loans in its portfolio. form its function of stabilizing the credit of the Gold exchange standard.—The change of the country, should have the right to determine Bolivian monetary system from the full gold the official discount rate; thus it can increase standard to the gold exchange standard does or decrease the demands for credit in accord- not signify any weakening in the reserve which ance with the necessities of the country. The guarantees the Bolivian currency. It means position of the bank is further strengthened by that the composition of the legal reserves is the fact that the commercial banks are no being modified through the transfer of gold to longer its competitors but are now its associates. other countries, to be deposited there in the Convertibility of notes.—Convertibility of strongest banking institutions instead of rethe paper currency is guaranteed by an ample maining idle and useless in our own vaults, and and adequate gold reserve, part of which is held thus to build up foreign balances for internain Bolivia and part abroad. The new law tional payments. This method of utilizing gold provides that in its legal reserve the bank may gives the bank an efficient means through which include demand balances payable in gold in to regulate the expansion or contraction of the the principal banks of London and New York. circulation in accordance with the actual needs At the close of 1927 the Banco de la Nacion of commercial and industrial credit. Boliviana had a legal gold reserve of 19,200,000 In pursuance of this policy the Central Bank, bolivianos ($7,008,000), against a circulation with the authorization of the Minister of of 38,700,000 bolivianos ($14,126,000). It had Finance and in accordance with its organic also an additional liability to its depositors in law, has made a gold shipment to the United the amount oi 20,100,000 bolivianos ($7,337,- States of a value equivalent to $3,570,000 in 000). On December 31, 1929, after the reor- United States currency, for deposit in various ganization, the Central Bank held gold, other American and English banks of the first rank. reserves, and gold deposits aggregating 56,978,- Balance of payments.—The Central Bank 504 bolivianos ($20,687,154), against combined possesses adequate resources and facilities for circulation and deposits amounting to 60,413,- maintaining currency stability so far as this lies 106 bolivianos ($22,050,784), or practically 100 in the power of such an institution. The curper cent cover. Since July 1, 1929, the bank rency, however, must also be safeguarded has redeemed its notes without any restrictions against contingencies of a complex and fundaeither in gold coin or bullion at a parity of 18d. mental character which affect the general to the boliviano, or in sight drafts on New economic situation of the country, in particular York at an exchange rate no higher than this its international balance of payments. If this parity plus the costs of gold shipment. At the balance should be adverse for a period of years, time of writing this report these costs are cal- the complete application of the monetary culated at 1.385 per cent, establishing the gold system might have to be temporarily suspended. export point at 13.52 bolivianos to the pound Thus far we have been unable to gather comsterling. plete data on which to establish the annual Bank portfolio.—That part of the portfolio balance of payments of the Republic. We of the bank which consists of open accounts, only know that our merchandise balance has long-term loans, and Government, depart- always shown a considerable export surplus. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

JULY, 1930 FEDERAL RESERVE BULLETIN 441 In 1927 the balance in our favor was 60,000,000 INTEEEST ON LOANS bolivianos ($19,000,000). The merchandise surplus, however, is almost extinguished by With such invisible items as the service of the exter- With guaranguaran- tee of nal debt, which for the year 1929 amounted to tee of docubonds, ments or 16,500,000 bolivianos ($6,023,000), profits of etc. signaforeign mining companies and business enter- tures prises, the cost of the Bolivian diplomatic service abroad, and the money taken out by For associated banks For the public: Bolivian tourists. In the near future we hope Industry Agriculture to have more exact figures from reports and Commerce 10 data which we are now analyzing. We know, however, that the mining industry Subsidiary notes.—The monetary law of expends much more in the country than was July 11, 1928, provided for coinage of silver for originally supposed. Thirteen of the principal account of the State. Subsequently, through mining companies spent the large sum of the amendments of February 5 and December 54,151,674 bolivianos ($19,765,361) for wages 3, 1929, it was agreed to retain the 1-boliviano and salaries, purchases of local products, com- notes in place of silver coins. In accordance pensation payments for industrial accidents, with these measures, the bank made a contract customs duties, taxes on profits, etc. This indi- with the Government providing for an issue cates that the net balance of payments is in of 7,000,000 bolivianos ($2,555,000) in 1our favor, although the business depression boliviano notes, and obligated itself to pay caused by the falling off in exports of tin, which the Government 2,500,000 bolivianos ($912,500) is our principal export commodity, tends, of as royalty for the 40-year privilege. This paycourse, to reduce our national revenues. ment the bank has made. The contract also Formerly the mining exporters were legally provides that in case the economic developrequired to sell their drafts to the banks through ment of the country requires a larger note the National Treasury up to 25 per cent of issue of this denomination, the bank in agreethe value of the exports. This requirement ment with the Government will make new issues has now been abolished, and the Central Bank on payment of a corresponding additional maintains an exchange rate within the gold royalty. The Central Bank at once put into import and export points very close to the effect the amendments to the monetary law parity of 18d. The average rate of exchange of July 11, 1928, for the sake of the additional on London at 90-days sight during the past six facilities thereby furnished to the country. months has been 13.34 bolivianos, or 176% d. 4 Rates of discount and interest.—Recently a BALANCE SHEET OF THE CENTRAL BANK OF BOLIVIA new schedule of discount and interest rates for AS OF DECEMBER 31, 1929 loans has been put into effect, as the result of the policy of the bank to assist the economic Bolivianos Dollars i (in thou- (in thouprogress of the country in every way possible. sands) sands) The directors consider it advisable in the present depressed situation that the bank RESOURCES Legal reserve: should furnish cheap credit to local industries Reserve held in Boliviaand to agriculture, without, however, facili- G Bo o l ld ivian silver coin 9,24 2 1 7 3,37 9 3 tating importations which are not actually 9,268 3,383 indispensable. These rates of discount and Deposits payable at sight or 3 days' sight held interest are as follows (per cent per annum): in banks in London and New York 27, 015 9,860 Total 36,283 13, 243 Cash assets not included in the legal reserve: RATES OF DISCOUNT Bolivian fiduciary coin in nickel 1,324 Notes of other Bolivian banks _ — j. 30 days 60 days 90 days D Fo e r p e o ig si n t s m a o b n ro e a y d s I | 13,91 1 0 5,077 Drafts and bills of exchange payable abroad., j 5,442 "I," 986 Asso- Asso- Asso- Gold bars. i 18 ciated Public ciated Public ciated Public banks banks banks Total cash assets.._ 20,797 i For industry _ 7 8 Portfolio: For ( c a o ) m N m e e c r e c s e s : ities.. 7 8 1 8 9 Due C fr u o r m re n th t e a c p c u o b u l n i t c s - ... 7,265 2,652 (b) Other goods. 9 9 10 Loans 6,057 2,211 For agriculture 7 7lA ._ 8 _ i Converted at par: 1 boliviano=$0,365. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

442 FEDERAL RESERVE BULLETIN JULY, 1930 BALANCE SHEET OF THE CENTRAL BANK OF BOLIVIA BALANCE SHEET OF THE CENTRAL BANK OF BODIVIA AS OF DECEMBER 31, 1929—Continued AS OF DECEMBER 31, 1929—Continued Bolivianos Dollars (Bolivianos Dollars (in thou- (in thou- j (in thou- (in thousands) sands) i sands) sands) RESOURCES—continued LIABILITIES—continued Portfolio—Continued. Deposits—Continued. Due from the public—Continued. Time deposits _ 1,138 415 Bills discounted 2,385 871 Savings accounts 172 63 Due bills at sight __- .- 230 84 Workmen's savings 57 21 BBiillllss ionv elirqduuiedation 8 4 6 1 2 4 3 1 1 5 5 1 J E u m di p c l i o a y l e d e e s p ' o s s a i v ts ings fund 1,1 6 3 3 8 41 2 5 3 Bills written ofL _ __ 1 Deposits in foreign moneys 103 38 Due to foreign bankers 8 3 Total 17,214 | Drafts payable 1,699 620 Other bills payable 46 17 Obligations of central government, departments, Unpaid dividends 28 10 and municipalities: Acceptances 126 46 Various obligations 4,384 1,600 Government bonds 3,782 1,380 Total ___ 17,887 i 6,529 Total. 8,166 2,981 Various accounts: Charity fund 1 Investments: Mortgage bonds, stocks, etc 619 Funds for employees 4 Associated banks: Due from banks from pur- Operations pending between central office chase of "B" class shares... _ 3,505 1,279 and agencies 233 ; 85 Other operations pending 29 Various accounts: Reserve for collection expenses 12 ! 4 Supplies 49 18 Discount collected but not earned 23 i Land and buildings 2,933 1,071 Reserve for interest accrued 34 ! 12 Furniture and fixtures. 435 159 Pending operations 104 38 Total. 392 143 Office supplies Credits abroad 59 22 Capital: Capital paid in 22,940 8,373 Total 3,580 1,307 Class" B " shares subscribed for but not paid.. 2,870 1,048 Cost of notes and royalty.. 2,988 1,091 Interest receivable 889 324 Total. 25,810 ! 9,421 Total resources.. 93, 938 34, 287 Reserve fund: Reserve paid in 5,070 ; 1,851 LIABILITIES Reserve due from associated banks not paid in. 634 ! 231 Total note issue 52,100 19, 017 Total 5,704 i 2,082 9,574 3,495 Less on hand in vaults of bank_ Profit and loss 1,619 j 591 Note issue in hands of public 42, 526 15, 522 Total liabilities.. 93, 938 34, 287 Deposits: Associated banks.. 5,121 1,869 Per cent Accounts current-. 6,943 2,534 Legal reserve (art. 71 of the law of July 20, 1928) 50 per cent 60.0577 Sight deposits 1,245 454 Total reserve 94.3148 ANNUAL REPORT OF THE BANK OF BRAZIL The annual report of the Bank of Brazil for and may seriously disturb the normal current 1929 was presented to the general meeting ofof human activities. Thus the present world shareholders on April 28, 1930. Sections of crisis is a continuation of that disorganization the report are given herewith:1 which the Great War produced in all the The year 1929 was very difficult for Brazil, countries of the world. but the improvement created in the general The break in the coffee market.—Since 1923 situation by the monetary reform of December gold has been drawn in large volume from all 18, 1926, enabled it to maintain a satisfactory nations to the United States, as a result of the level of economic activity. development of speculation on the New York Because of the economic interdependence of stock exchange. This excessive speculation civilized nations, which is becoming closer was the primary cause of the stock exchange year by year, any crisis, of whatever character, crisis experienced in 1929 in New York. has repercussions throughout other countries, In Brazil the effect of this crisis was to make it difficult for certain States and for the Sao i Taken with some textual revision from the official English transla- Paulo Institute of Coffee to place loans in» the tion furnished by the bank. The full text of the report, the original London and New York markets. As a result, of which is in Portuguese, deals with the fluctuations in the price of coffee, work of the stabilization office, industrial, commercial, and agri- the impending break in coffee prices could no cultural activity, the visit to Brazil of the British Economic Mission headed by Lord d 'Abernon, etc. The report also gives tables showing longer be averted; a violent drop in quotations detailed operations of the bank. For earlier reports see FEDERAL RE- took place in October, accompanied by a SERVE BULLETIN, August, 1929, and July, 1928. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

JULY, 1930 FEDERAL RESERVE BULLETIN 443 general economic disturbance throughout the During the first two months of 1930 exports country, and a panic situation in the State of from the port of Santos alone amounted to Sao Paulo and in the Santos market. 2,054,624 bags, while during the same period Intervention of the bank.—The Bank of in 1929 they amounted to 1,666,986 bags. Brazil, in obedience to the command of the These figures indicate to what a considerable President of the Republic, afforded prompt aid extent the decline in the price of coffee wTas to all legitimate demands for credit throughout favorable to its export—an auspicious factor the country. At a time when no one would for the future economic situation of the lend money at Santos, the bank undertook to country, inasmuch as the reduction in price is furnish credit freely against guarantee of docu- certain to encourage increased consumption in ments of title to coffee on the basis of 40 mil- foreign markets. reis ($4.78) per bag. In Sao Paulo alone, from The decline in the price of coffee could not October, 1929, to March, 1930, the Bank of fail to influence the economic situation through- Brazil granted loans on this basis to the extent out the country, and especially in Sao Paulo. of ^ 158,000,000 milreis ($18,897,000). This It is safe to say, however, that the situation attitude on the part of the bank reestablished has now greasy improved. confidence rapidly in the Santos market and en- Effects of currency stabilization.—The Bank couraged other banks of the State of Sao Paulo of Brazil was able to perform the functions of a to operate freely with their available funds. genuine central bank, even though it has not During this critical period the Bank of that essential characteristic of all central Brazil not only intervened with financial banks—the exclusive privilege of note issue. assistance, but also used its influence to en- The bank intervened for the purpose of con- . courage the commercial centers throughout trolling speculation, and by means of its credit the country, and to harmonize a number of policy endeavored to mitigate the extent and difficult situations; these efforts were received severity of the depression; it manipulated the with a high degree of good will on the part of discount and rediscount rates in order to check all banks, both national and foreign. speculative activity, strove to assist all indus- Toward the end of October the president of tries, and gave due consideration to all legitithe Bank of Brazil, at the request of the mate demands for credit, thus assisting the President of the Republic, visited Sao Paulo normal development of commerce, industry, for five days in order to study the situation trade, and agriculture. at first hand; later on, he went to Santos in It may be asked how the Bank of Brazil was company with the Minister of Finance. able to fulfill so successfully the functions of a During his visit to Sao Paulo the president central bank. It was the stabilization of the of the Bank of Brazil repeated his statement currency that enabled the bank to put itself that the bank would continue to render all in a position to satisfy the requirements of possible assistance to the economic welfare of Brazilian economy during the 1929 crisis. the State; he assured the banks of unlimited The monetary reform inaugurated by Presirediscounts, declaring further that in the event dent Washington Luis, establishing the soundof a run on the Sao Paulo branch, the entire ness and stability of the currency, made poscash reserves of the head office would be sent sible the following results: Liquidation of a to that city, by order of the President of the floating debt of nearly 1,000,000,000 milreis Republic. ($119,600,000) without the issue of inconvert- In November a marked improvement took ible paper money or of bonds of the public place in the situation, and by December the debt, or increase in taxes; budget equilibrium Santos market had recovered its normal posi- and favorable balances; deposit of £21,000,000 tion in connection with its great volume of in the stabilization office; resumption of the coffee operations. During the Santos coffee payment in specie of the sinking fund services, crisis there were only 2 failures and 10 cases which had been suspended on account of the of composition agreement, a fact which clearly funding loan; economic and social order; credit demonstrates the essential soundness of this balances abroad; considerable credit balances trade. with the Bank of Brazil. Improvement in exports.—Exports of coffee The creditor position of the National Treasfrom the port of Santos from October, 1929, ury in relation to the Bank of Brazil was the to February, 1930, increased by 501,680 bags, principal factor in its successful functioning in and from other ports by 450,932 bags, as 1929. This position freed the Government compared with the same period in 1928-29. from the necessity of borrowing in the market Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

444 FEDERAL RESERVE BTJLLETIN JULY, 1930 to meet i#ts obligations. Up to December, BALANCE SHEET OF THE BANK OF BRAZIL AS OF 1926, the National Treasury was constantly a DECEMBER 31, 1929—Continued large debtor to the Bank of Brazil. From then on, after the passage of the monetary law which Milreis Dollars (in thou- (in thoucreated budget surpluses, the situation im- sands) sands) proved so that the Government came to hold RESOURCES—continued credit balances in all its accounts with the bank Bills receivable for outside account: and did not even utilize the advance in current Foreign 33,634 4,023 Domestic 373,920 44, 721 accounts in anticipation of revenue; on the Total 407, 554 48,743 asset side of our balance sheets this item has Other items for collection in Brazil_ 460, 503 55, 076 appeared as a blank since June, 1929. Bank premises... _ 20, 320 2,430 The stability of our currency was one of the Other resources -_. 144, 771 17, 315 principal causes for i)he country's rapid re- Total resources, exclusive of contra accounts.4, 344, 266 519, 574 Contra accounts: covery from the crisis; moreover, it prevented Securities held as collateral _ 875, 718 104, 736 the serious and deplorable losses which accom- Securities deposited with the bank 605, 057 72,365 panied all previous coffee crises in Brazil. Total resources J5,825,041 696,675 Even during the most acute period, that is, LIABILITIES in October, exchange was maintained at the Notes in circulation 1 ___ _. 592,000 70,803 Deposits: stabilization level—a practical evidence of the In current accounts without interest.. 401,769 48, 052 efficacy of the monetary law of 1926. Not In current accounts with interest 590,345 70,605 In limited current accounts 127, 239 15, 218 until November, when the situation had become In time accounts 505, 340 60, 439 In clearing accounts 54,801 6,554 less serious, was there any depression of the Due to agencies and branches in Brazil.._ 418, 239 50, 021 exchange rate. Due to correspondents in Brazil 3,097 370 Due to correspondents abroad. _ 163, 553 19, 561 Due on account of items for collection 868, 057 103,820 Capital 100, 000 11, 960 BALANCE SHEET OF THE BANK, OF BRAZIL AS OF Surplus _ 157, 966 DECEMBER 31, 1929 Balance from previous year 1,279 153 Forty-seventh dividend to be distributed 10, 000 1,196 Fund for redemption of paper money (388,695,000 Milreis Dollars i milreis) less amount paid to the sinking-fund ac- (in thou- (in thou- count for burning (271,829,000 milreis) 123, 354 14, 753 sands) sands) Other liabilities 227, 227 27,176 Total liabilities, exclusive of contra accounts. 14, 344, 266 | 519, 574 Contra accounts: Securities held as collateral and ! RESOURCES deposited with the bank 1,480,775 | 177,101 Gold (held in sinking-fund account) £10,000,025 Total liabilities .15,825,041 I 696,675 11s. 8d_ __ 300, 001 35,880 Currency 82,512 Gold bonds deposited abroad: Nominal value £2,595,030; latest quotation £1,757,863 6s. 8d.._. 52, 736 6,307 The essential object of a currency stabiliza- Correspondents abroad 305, 425 36, 529 Correspondents in Brazil 7,809 934 tion policy is not to impose a rigid exchange Agencies and branches in Brazil 453, 579 54, 248 rate, but to avoid sharp fluctuation in exchange Bills discounted 809, 923 96,867 Loans in current account 585,448 70, 020 rates; oscillations between the "gold points7' Securities 56, 746 6, 787 Collateral taken in payment 4,697 562 are regarded as normal. Stabilization also Bills receivable for bank's own account 44,857 5,365 eliminates the influence of political factors and avoids the dangers of panics. i Conversion at par: 1 milreis=$0.1196. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

JULY, 1930 FEDEKAL EESERVE BULLETIN 445 FINANCIAL STATISTICS FOR FOREIGN COUNTRIES GOLD HOLDINGS OF CENTRAL BANES AND GOVERNMENTS [In millions of dollars. Figures for end of month or latest available preceding date; see BULLETIN for June, 1929, p. 396, and7or June, 1930, p. 372 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 ad an a - E la n n g d - France m G a e n r- y d In ia - Italy p J a a n - N e e r t - h - iRus- Spain S l z a w e n r d i - t- o t t r 2 h i 8 e e s r 1929—May 10,116 3,931 560 106 134 151 78 795 1,435 420 128 270 542 176 93 494 96 708 June 10,132 3,956 | 524 108 139 151 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 1,526 520 128 271 641 178 119 495 98 703 September 10,260 4,008 496 114 142 151 77 648 1,545 527 128 272 541 178 132 495 103 704 October 10,292 4,023 476 109 143 151 77 643 1,570 531 128 272 541 178 142 495 103 708 November... 10,296 4,003 451 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 10,356 3,921 445 88 164 139 78 732 1,683 547 128 273 520 177 147 495 108 711 February....r10,431 3,988 448 124 164 127 78 740 1,680 582 128 273 477 176 150 476 108 •"712 March 10,502 4,061 445 126 164 127 79 759 1,668 595 128 274 453 174 156 476 108 709 April 10,566 4,131 442 109 164 90 79 795 1,659 611 128 274 443 174 167 477 112 P710 May _._. P10, 610 4,159 P441 91 167 90 80 765 1,717 617 128 274 434 174 177 477 112 *708 June.. - *4,177 167 768 »1,725 P623 174 203 477 * Preliminary, based on latest available figures. p 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 Im- | Ex- Im- Ex- Im- Ex- Im- Exports \ ports Net ports ports Net ports ports Net ports ports Net Net Net 1929—May 24,098 467 23,630 1,946 781 1,165 28, 284 4,652 23, 632 4,338 23; 4,315 -17,975 6,076 June 30, 762 • 550 30,212 7,493 681 6,812 21,085 40,001 -18,917 190 17! 173 -22,625 3,596 July 35, 525 807 34, 718 48,728 716 48,012 22, 578 100,479 -77,901 129 8 121 -14,816 4,164 August 19,271 881 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 27,844 8,405 107 15' 92 -20,922 4,408 December. 8,121 72, 547 -64,426 11,096 806 10, 290 65, 343 16,439 48,903 297 17i 280 -18,220 4,603 1930—January 12,908 j 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! 207i 59,991 38, 2.521 687 37, 565 38,961 34, 074 4,886 80 1,026; -946 -20,786 3,844 March 55, 768 290| 55,4' 15,119! 769 14, 350 38,258 12,826 25, 432 89 10 79 —13,777 '3,447 April 65,835 110; 65, 725 18,670| 703 17,967 42, 741 14,828 27,913 81 21: 60 -18,134 *5,850 May 23,552: 82 23,470 7,318! 722 45, 388 61,134 -15,746 75 19 56 -22,798 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— May January-May Calendar year From or to— March Ja M n a u r a c r h y- Calendar year Im- Ex- Im- Ex- Im- Exports ports ports ports ports ports Im- Ex- Im- Ex- Im- Exports ports ports ports ports ports France 144 52, 777 1,127 65,162 2,066 162,527 Germany. _ 5,972 7 54,489 3,203 92,991 England 415 2,147 10,461 Netherlands. _ 16 318 14, 382 2,006 United States.. 22 Spain and Canaries. 379 19,466 146 4 359 Aden and dependen- Switzerland.. 50 3,895 10, 781 cies 52 213 1, 045 United States 5 282 23,090 61,293 Arabia 95 162 South America | 251 5 13, 750 49 39,129 British Oceania 855 4,520 7,701 British India 1,658 4,784 "167320 Bahrein Islands 12 26 119 Australia 24, 576 83,905 2 24,603 I Ceylon. 226 1,149 4,151 1 New Zealand 13 51 2,433 | China. 46 103 188 Egypt.. 3,786 Mesopotamia 344 730 2,013 Rhodesia _ 505 2,112 4,641 Straits Settlements.. 54 167 19 ~28 Transvaal 19,203 83, 972 184,954 I Egypt 168 728 6, 867 West Africa 641 2,157 4,216 | Natal 1,175 2,716 29,595 All other countries.. 54 272 222 10,099 1,003 I 33,434 All other countries.. 4 4 20<> 19 Total.. 45, 61,134 1207,052 138,965 303,725 j 377,505 Total 3,447 12,664 4 64,275 48 p Prelimary. ' Revised. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

446 FEDERAL RESERVE BULLETIN JULY, 1930 CONDITION OF CENTRAL BANKS [Figures are for the last report date of month] 1930 1929 Bank of England (millions of pounds National Bank of Belgium (millions sterling): of belgas): Issue department- Gold Gold coin and bullion 157.2 163.3 155.1 162.5 Foreign bills and balances in gold. Notes issued 417.2 423.3 415.1 422.5 : Domestic and foreign bills Banking department- ••il Loans to State Gold and silver coin... Note circulation.. Bank notes 61.1 64.5 62.8 Deposits Government securities 45.6 59.2 44.8 62.4 Bank of Brazil (millions of milreis): Other securities 11.5 , 10.0 13.3 40.0 j Gold Bank D R P B O u e a i t n s h s b n o c e e l k t o i r r e c e v u s d r e n d s e i ' t e r n p s a p d o t c o a e s i i p o n s i r t i o d c s t » u s s a ( i l t p a d s e t v i r a o n n c c e 2 e n s t) 35 3 1 5 5 6 5 6 7 3 9 . . . . . . 1 9 3 2 0 8 j 3 2 6 3 5 5 6 6 1 6 2 8 . . . . . . 6 0 2 9 8 8 3 3 5 5 1 5 6 5 8 4 8 2 . . . . . . 9 9 8 1 1 3 2 2 3 5 5 8 4 5 4 6 2 . . . . . . 3 5 3 3 4 2 i i S L N D C C e o u o e o c a p r r t u e r r n o e r e s s i c s n t i i a p i t c r e s n o y c s d n u l d d a e t i n i s o c ts n o u a n b t r s oad 360.1 Bank of France (millions of francs): National Bank of Bulgaria (millions Gold 43,809 42, 351 42, 557 36, 596 of leva): Sight balances abroad 6,873 6,902 6,920 7,805 Gold 1,361 Foreign bills 18, 736 18, 746 18, 407 Net foreign exchange 1,614 Loans and discounts 10,194 8,296 8,943 8,266 Total foreign exchange 2,095 Negotiable bonds 5,395 5,395 5, 396 5,769 Loans and discounts 1,523 Note circulation __ 73, 078 70,770 70, 826 64,316 Government obligations. 3,339 3,645 Public deposits 5,363 6,554 6,802 11,431 Note circulation 3, 364 3,977 Other deposits 10, 062 7, 997 8,719 7,176 Other sight liabilities. 1,706 2,876 Central Bank of Chile (millions of German Reichsbank (millions of pesos): reichsmarks): Gold at home 63 63 I 63 i 62 Gold reserve 2,441 2,416 2, 346 1,705 Deposits abroad 337 ! 332 , 340; 441 Gold abroad 150 150 150 59 Loans and discounts 101 i 108 128 ; 85 Reserves in foreign exchange 351 327 387 299 Note circulation 344 I 346 ! 356 ! 370 Loans and discounts 2,146 2,152 2,269 3, 260 Deposits against which reserve Deposits 401 537 457 628 is held 101 j 82 ' 105 Reichsmarks in circulation 4,812 4, 664 4,806 4,606 Bank of the Republic of Colombia Rentenmarks in circulation 379 380 382 (thousands of pesos): Gold at home 21, 311 20,886 20, 553 25,745 Bank of Italy (millions of lire): Gold abroad 9,909 9,141 9,872 [ 29, 426 Gold at home 5,206 5,204 5,202 5,126 Loans and discounts 17, 031 16,768 17,016 !14,509 Credits and balances abroad 5,037 5,026 4,858 4,911 Note circulation.. 30, 719 30,095 31,573 47,810 Loans and discounts 3,940 4,359 4,379 5,110 Deposits 6,445I 6,1995, 532 i10, 391 Total note circulation- 15,944 16, 062 16, 322 16, 251 Public deposits 300 300 300 300 Czechoslovak National Bank (mil- Other deposits 1,546 1,514 1,436 1,753 lions of Czechoslovak crowns): Gold 1,313 1,262 ! 1,262 1,158 ! Foreign balances and currency 2,052 1,872 I 1,907 1,703 Bank G o o l f d Japan (millions of yen): 871 895 912 1, 034 L A o ss a e n t s s a o n f d b a a d n v k a in n g c e o s f . fice in liqui- 319 515 639 640 N A T G o o d o t t v v a e a e l s n r d n i c s e m e s p s u e o e a n s d n t i t d s b o d n is d c s o _ unts. _ 1, 7 7 1 9 8 6 5 0 1 6 3 1, 6 7 1 8 8 4 9 5 9 3 6 1, 7 7 2 1 0 5 7 3 6 5 1 0 1, 7 9 1 1 8 4 8 8 1 1 9 8 N De o d p t a e o t i s c o i i n t r s culation 6,8 4 3 9 9 4 6 1 5 i ! 6,8 3 4 5 0 5 4 1 0 j | I 7 3 4 ,0 5 1 11 2 7 . 7,1 4 4 8 0 0 3 4 7 Danish National Bank (millions of Commonwealth Bank of Australia kroner): (thousands of pounds sterling): Gold 172 172 172 173 Issue department- Foreign bills, etc 107 98 101 94 Gold coin and bullion 18,743 22.493 I 25,993 21,861 Loans and discounts 88 83 77 74 Securities 4, 941 5', 190 ! 6,19210, 482 Note circulation 371 362 356 358 Banking department- Deposits _. 30 31 31 29 Coin, bullion, and cash 1,631 j 2,215 2,600 1,984 Bank of Danzig (thousands of Dan- Money at short call in Lon- zig gulden): don 5, 246 6,261 5,100 15, 368 Balances with Bank of England . 14, 710 14, 820 15, 347 16,176 Loans and discounts 10, 335 13, 350 14, 637 10, 745 Foreign bills, etc 11, 435 12, 384 r 9, 472 11, 746 Securities _ 21, 458 21, 208 20. 208 12, 285 Loans and discounts 20, 037 19, 425' 21,812 24, 245 Deposits _ 41, 265 41, 980 42, 619 39,091 Note circulation 36, 445 36, 207 36, 661 37, 028 Bank notes in circulation 38,185 39, 797 37, 727 38, 343 Deposits 1,530 2,071 r 1, 622 2,294 Bank of Estonia (thousands of Austrian National Bank (millions of krones): sch N F D D G O G i o l o e o o t o l h r p l m t i v e d e n e o e i r e g g s r c s s i n n f i t t ) o r m s i : c e r c e x e u i b c n g l i h a t n l l a t s d i n e o e x g n b e c t . h . o a f n t g h e e reserve. 1, 2 3 1 0 1 1 3 5 9 6 2 3 0 2 9 8 4 9 3 2 2 3 9 1 1 1 3 3 6 6 8 4 0 6 1 5 9 2 6 2 2 3 9 1 1 1 2 3 6 8 2 6 0 1 6 9 0 6 6 8 3 1 2 1 1 4 6 2 9 1 3 9 5 5 0 G N L N D o e o o e a t t l p e n d G B O f o s o . c a o t s . r i . h a e n i v r n e t i c k e g s r d u r e - n n l r d a m s e t i . x i s e o c c n n o h t u a _ n _ n g ts e - 1 2 3 1 6 6 6 0 3 0 1 , , , , , , , 5 9 8 5 9 0 6 0 1 1 3 3 3 2 7 0 2 4 4 5 8 2 3 1 1 8 2 6 8 1 3 1 , , , , , , , 4 1 5 3 2 3 4 7 6 8 0 6 2 3 9 7 4 2 8 7 9 2 3 1 1 8 6 9 3 3 3 1 , , , , , , , 4 1 4 8 3 8 9 6 6 4 7 3 0 4 1 9 9 2 6 0 8 2 3 1 1 1 6 9 7 0 4 2 , , , , , , , 2 9 7 7 5 2 7 9 7 5 1 8 9 6 5 0 8 9 7 6 3 1 Ratio of gold and notes in banking department to deposit liabilities. r Revised. 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

J ULY, 1930 FEDERAL RESERVE BULLETIN 447 CONDITION OF CENTRAL BANKS—Continued [Figures are for the last report date of month] 1930 1929 May April March May Bank of Finland (millions of Fin- Bank of Poland (millions of zlotys): nish marks): Gold at home 483 483 483 429 Gold Gold abroad 219 219 219 195 Balances abroad and foreign Foreign exchange of the reserve.. 270 298 325 456 credits __ Other foreign exchange 110 112 116 83 Foreign bills Loans and discounts 672 669 697 831 Domestic bills._ Note circulation 1,333 1,326 1,324 1,244 Note circulation Current account of the treasury.. 108 127 162 351 Demand liabilities Other current accounts 144 174 '175 181 Bank of Greece (millions of drach- Bank of Portugal (millions of escumas): dos): Gold - Gold 9 9 9 9 Net foreign exchange in reserve. - Balances abroad 218 210 165 300 Total foreign exchange Bills 323 329 336 280 Loans and discounts Note circulation 1,861 1,886 1,879 1,813 Government obligations Deposits 101 62 59 55 Note circulation Other sight liabilities National Bank of Rumania (millions of lei): National Bank of Hungary (mil- Gold at home 5,356 5,346 5,331 5,068 lions of pengos): Gold abroad _ . 3,919 3,919 3,919 3,592 Gold. Foreign exchange of the reserve.. 1,425 2,154 2,353 2,355 Foreign bills, etc Other foreign exchange 36 41 18 362 Loans and discounts Loans and discounts. 9,687 10,398 10, 605 9,468 Advances to treasury State debt 3,797 3,797 3,797 7,672 Other assets.. Note circulation 18, 521 19, 254 19, 708 19, 343 Note circulation Deposits 7,345 7,944 8,210 8,488 Deposits State Bank of Russia (thousands of Miscellaneous liabilities. chervontsi): Loans and discounts 476, 697 361, 523 Bank of Java (millions of florins): Deposits -. 198, 530 206,072 Gold. Issue department- Foreign bills Gold 30, 3-18 18,098 Loans and discounts Other precious metals 3, 079 4,268 Note circulation.. Foreign exchange 5,717 9,406 Deposits Note circulation 155,598 112,905 ank of Latvia (millions of lats): South African Reserve Bank (thou- Gold sands of pounds sterling) : Foreign exchange reserve. Gold 7,252 7,529 7,315 8,257 Bills Foreign bills 7,372 6,170 6,633 8,198 Loans.... Domestic bills 855 1,575 1,211 1,207 Note circulation__ Note circulation 8,979 7,726 8,436 9,709 Government deposits Deposits- Other deposits Go vPTTiment 1,565 2,462 2,450 2,050 5 075 4 739 4,737 4 994 Bank of Lithuania (millions of litas): Others 417 129 393 596 Gold. Bank of Spain (millions of pesetas): Foreign currency Gold 2,471 2,469 2,468 2,560 Loans and discounts Silver 718 714 716 720 Note circulation Balances abroad 34 38 34 97 Deposits Loans and discounts. .. ._ 1,910 1,890 2,018 1,581 Note circulation 4,391 4,395 4, 365 4,272 Netherlands Bank Deposits 835 834 833 1,104 florins): Gold Bank of Sweden (millions of kronor): Foreign bills. Gold 243 243 244 234 Loans and discounts Foreign bills, etc 365 356 262 183 Note circulation Loans and discounts. ._ _. 204 201 302 390 Deposits Note circulation 557 545 575 519 Deposits 183 183 159 208 Bank of Norway (millions of kroner): Swiss National Bank (millions of Gold francs): Foreign balances and bills Gold 579 579 561 496 Domestic credits Foreign balances and bills 376 391 335 261 Note circulation__ Loans and discounts 80 83 119 181 Foreign deposits Note circulation . 908 916 918 872 Total deposits Demand deposits 169 154 122 110 •Reserve Bank of Peru (thousands of National Bank of the Kingdom of soles): 3 Yugoslavia (millions of dinars): Gold 39, 492 49,340 Gold 97 97 96 93 Gold against demand deposits 3,400 4,885 Foreign notes and credits 252 263 291 230 Foreign exchange reserve 16,747 5,450 Loans and discounts 1,297 1,310 1,319 1,474 Bills _ 15,791 19, 841 Advances to State - 2,997 2,997 2,997 2,966 Note circulation 58, 500 57, 263 Note circulation.. .. 5,281 5,221 5,363 5,092 Deposits 8,799 9,769 Deposits 1,441 1,555 1,397 747 > Figures previous to February, 1930, have been converted from libras (par $4.8665) into soles (par $0.4000). See Federal Reserve Bulletin for May, 1930. r Revised. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

448 FEDERAL RESERVE BULLETIN JULY, 1930 CONDITION OF COMMERCIAL BANKS Millions of national currency Millions of dollars Country 1930 1929 1930 March April May March April May De b c e e r m- Ja a n ry u- Fe a b ry ru- March April May Canada: Mill ons of dolars Gold and subsidiary com » 60 60 60 63 64 64 61 61 60 60 60 60 Money at call and short notice -. 415 415 417 560 564 594 507 449 428 415 415 417 Current loans and discounts 1,626 1,601 1,573 1,560 1, 572 1,559 1,653 1,641 1,628 1,626 1,601 1,573 Public and railway securities 418 428 431 524 516 523 448 431 423 418 428 431 Note circulation - 163 155 165 189 171 168 175 156 159 163 155 165 Individual deposits. -- 2,459 2,472 2,401 2,560 2,596 2,560 2,605 2,485 2,455 2,459 2,472 2,401 Gold reserve against Dominion notes.. 63 64 65 58 59 59 60 63 63 63 64 65 Dominion note circulation _ 174 174 170 205 205 197 204 173 174 174 170 Argentina: Bank of the Nation— Millions of pesos Gold 7 7 120 102 29 1 1 1 Other cash 114 122 120 129 125 79 113 99 108 Loans and discounts.- - 613 I 601 512 524 530 576 534 532 525 533 Deposits - 736 i 729 745 745 742 681 668 649 631 646 Other banks in Buenos Aires- Gold 10 10 12 14 11 11 11 11 10 10 Other cash 194 187 184 164 173 146 155 156 166 166 Loans and discounts 880 839 850 846 831 829 789 754 780 Deposits - 1,012 1,004 991 976 925 916 867 867 890 Millions of pounds England: sterling Cash in vault and at banks._. 181 187 187 917 917 882 911 897 Money at call and short notice 133 133 137 650 694 694 700 692 621 645 650 666 Advances and discounts 1,157 1177 1,204 5,815 5,734 5,701 5,829 5,903 *, 799 5,631 5,729 5,857 Investments 225 225 231 1,187 1,188 1,189 1,147 1,134 1,113 1,096 1,095 1,127 Deposits --- 1682 1712 1,742 8,463 8,363 8,429 8,628 8,600 8,341 8,185 8,331 8,478 France: Millions of francs Bills and national-defense bonds 20,512 ! 19,719 |.__ 816 793 776 834 829 804 773 Loans and advances 10,665 ! 11,215 ; 398 410 404 421 420 426 418 440 ! Demand deposits 33,522 33,811 ' 1,323 1,299 1,305 1,285 1,298 1,324 1,314 1,325 ! Time deposits ._ 1,479 . 1,444 i 37 38 42 44 50 58 57 I Germany: Millions of reichsmarks Bill and treasury notes 3, 234 3,168 j 3,169 750 770 755 ' 755 Due from other banks 1,182 1,139 1,154 276 282 271 275 Miscellaneous loans 8,619 8,709 8,642 2,039 2, 052 2,076 2,059 Deposits 12, 259 12,205 ! 12,240 2,867 2,920 2,921 2,916 A cceptances 510 491 '' 487 125 122 117 116 Italy: Millions of lire Cash 66 Bills discounted 454 443 Due from correspondents _ 284 298 Duo to correspondents 721 723 Deposits 160 166 Denmark: Millions of kroner Loans and discounts 1,822 1,831 |_ _. 462 466 467 479 479 485 491 i Due from foreign banks 124 114 : 45 41 38 38 34 31 33 30 Due to foreign banks 82 24 21 19 19 20 23 24 22 Deposits and current accounts.- 1,986 1,984 ! 520 522 526 526 520 528 532 532 j Norway: Millions of kroner Loans and discounts 1,228 1,241 1,235 347 339 335 335 332 330 329 333 | 331 Due from foreign banks.. 106 110 112 31 27 28 32 33 31 28 30 I 30 Due to foreign banks— 76 75 23 23 22 21 20 20 20 21 I 20 Rediscounts 88 80 27 27 27 24 25 25 24 24 ! 22 Deposits 1,507 1,500 i 1,726 420 419 417 412 408 408 404 402 463 Sweden: Millions of kronor I Loans and discounts 4,352 4,356 4,376 1,107 L, 105 1,103 1,117 1,146 1,159 1,166 1,167 i 1,173 Foreign bills and credits abroad 270 262 255 71 74 68 79 80 71 72 70 ! 68 Due to foreign banks 143 156 158 40 34 32 30 33 32 38 42 42 Rediscounts 157 91 56 62 56 62 67 42 41 42 24 15 Deposits 3,656 3.692 3,661 949 945 930 933 965 970 j 980 981 Japan: Millions of yen Cash on hand 230 281 257 116 117 154 156 138 119 114 140 128 Total loans 2,167 2,129 2,160 934 917 914 1,058 1,071 1,075 1,080 1,061 1,077 Total deposits 2,050 2,040 2,049 953 941 1,023 1,033 1,028 1,022 1,017 1,021 1 Not including amounts held abroad. NOTE.—Banks included are as follows: Canada—Chartered banks; England—nine London clearing banks; France—four 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

449 JULY, 1930 FEDERAL RESERVE BULLETIN DISCOUNT RATES OF CENTRAL BANKS [Rate prevailing July 1, 1930, with date of latest change] Country Rate I s n i n e c f e f — ect Country Rate I s n i n e c f e f — ect Country Rate I s n i n e c f e f — ect Country Rate I s n i n e c f e f — ect Austria _. 5H May 24, 1930 England. . 3 May 1, 1930 Japan 5.48 Oct. 10,1927 Portugal June 2,1930 Belgium 3 May 1, 1930 Estonia... 8 Oct. 3, 1929 Java Mar. 10,1930 Rumania 9 2 Nov. 26, 1929 Bulgaria 10 July 2, 1929 Finland... Apr. 28, 1930 Latvia 6-7 Apr. 1, 1928 Russia 8 Mar. 22, 1927 Chile- 6 Oct. 22, 1928i France May 2, 1930 Lithuania. _. 6 Apr. 1,1930 South Africa. 6 Aug. 17, 1929 Colombia 8 May 21,1930 Germany. 4 June 21, 1930 Netherlands. 3 Mar. 25,1930 Spain Dec. 19, 1928 Czechoslovakia. 4 June 25, 1930 Greece 9 Nov. 30, 1928 Norway Mar. 21, 1930 Sweden 3jJ Apr. 3, 1930 Danzig J une 25, 1930 Hungary.. May. 30, 1930 Peru 7 Nov. 23, 1929 Switzerland. 3 Apr. 3, 1930 Denmark 4 May 3, 1930 India 6 2 Apr. 3, 1930 Poland June 13, 1930 Yugoslavia.. May 28,1930 Ecuador 9 Jan. 10, 1930 Italy May 19, 1930 Changes.—Czechoslovakia—June 25, from 4H to 4 per cent; -Danzig—June 25, from 5 to 4^ per cent; Germany—June 21, from 4^ to 4 per cent; Poland—June 13, from 7 to 6H per cent; Portugal—June 2, from 8 to 7H per cent. MONEY RATES IN FOREIGN COUNTRIES England (London) Germany (Berlin) Netherlands (Amster- Switzerdam) land Month B a m a a n c o n c c n e k e s t p e h , t r - 3 s s' T m b re i o l a l n s s t , u h 3 r s y Da m y- o t n o e -d y ay o a B n ll a o d n w e k p a e o n r s c s i e ' ts d P is r r c i a v o t a e u t n e t M 1 o m ne o y n t f h or Da m y o t n o e - y day d P is r r c i a v o t a e u t n e t M 1 o m ne o y n t f h or d P is r r c i a v o t a e u t n e t 1929—January 4.32 4.29 3.41 2^ 5.80 7.51 5.13 4.20 4.4b 3.28 February 5.05 4.96 4.33 2H-3W 5.80 7.07 6.33 4.39 4.78 3.31 March 5.33 5.30 4.51 3H 6.31 7.30 6.97 4.64 5.05 3.39 April 5.21 5.18 4.43 6.63 7.57 6.85 5.36 5.81 3.45 May 5.21 5.21 4.67 % 7.49 9.65 9.32 5.37 5.88 3.34 June 5.32 5.35 4.23 3H 7.50 9.89 7.90 5.30 5.30 3.26 July... 5.38 5.39 4.54 3^ 7.39 9.35 8.21 5.20 4.90 3.19 August 5.47 5.48 4.35 3H 7.18 9.43 7.42 5.06 4.68 3.33 September 5.59 5.63 4.39 3H-4H 7.18 9.48 7.86 5.36 5.32 3.38 October 6.13 6.19 5.45 4H-4 7.28 9.06 8.06 5.15 4.52 3.38 November 5.35 5.30 5.15 4 -3H 6.89 8.29 7.79 4.26 4.17 3.32 December 4.76 4.75 4.23 3H-3 6.98 8.78 &14 3.52 3.87 3.15 1930—January 4.0? 4.04 3.62 3 6.33 7.71 6.03 2.99 2.85 2.97 February 3.82 3.72 3.76 3 -2H 5.53 6.72 6.01 2.80 2.94 2.71 March 2.78 2.55 3.20 2M-1H 5.12 0.35 5.57 2.50 2.61 2.60 April 2.48 2.49 2.28 4.46 5.57 4.40 2.52 3.08 2.61 May 2.16 2.11 1.93 1 3.89 5.00 3.62 2.29 2.53 2.44 (B Be ru lg s i s u e m ls) ( F P r a a r n i c s) e (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 i c a v o t a e u t n e t d P is r r c i a v o t a e u t n e t d P is r r 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 a P m l r i p m m ap e e r e - r Da m y o -t n o e - y day L m oa t o o n n s t 3 h u s p Disc b o il u l n s ted ov m e C o r a n n l i e l g y ht 1929—January 3.97 3.50 5.83 6Mfl-6H 7H-SH 7H-SH 6H-8H 4H-6H 5.84-6.21 2.37 February 3.97 3.39 6.00 6Me-6Me 7H-8H 7*A -8fc 6H-8M 5.66-5.84 2.92 March 3.97 3.37 6.31 6H -6H 7H-8H 7H-8H Gtt-SH 5.66-5.84 3.10 April 3.97 3.44 6.75 6M6-7H 7H-8H &U -9 7 -9 4H-6H 5.48-5.66 3.65 May. 3.96 3.49 6.83 7H-7J4 8 -9 8H-9^ 7 -9 4^-6^ 5.48-5.66 3.29 June 3.97 3.50 6.75 7M6-7J4 8K-9 su -m 7 -9 4H-6VS 5.48-5.66 3.29 J A u u ly gust. 4 4. . 9 0 3 4 3 3. . 5 5 0 0 6 6 . . 8 7 5 5 7 7 H H - - 7 V H M 8 8 * H 4 - - 9 9 8%-10 7 7 - - 8 8 H 4 4 H ^- - 6 6 ^ H 5.48-5 5 . .4 6 8 6 3 3 . . 1 1 0 0 September 4.94 3.50 7.01 8K-9M 8H-10H 6%-8 5^-7 5.48 2.92 October 4.94 3.50 7.18 8 -8H 9 -10 9 -10H 7H-8 5^-7 5.48 3.47 November 4.57 3.50 7.00 7%-8H 8*4-10 m -m 6^-7% 5H-7 5.48 3.47 December 4.40 3.50 7.00 7H-7U 8^-9K 7 -7H 5#-7 5.48 3.10 1930—January 3.40 3.38 7.00 VA-7H 7%-m 7J^-10 VA-7U 4^-6 5.48 2.74 February 3.41 2.91 6.95 6Mo-6H 7 -8 7-9H 5^-6?4 4^-6 5.48 3.83 March 3.31 2.70 6.57 5H-6 6%-7% 5^-6^ 4 -6 5.48 3.83 April 3.33 2.57 6.43 5 -5H 6^-7^ 6M2-8H 5 -6H 3H-5^ 5.48 3.83 May. 2.87 2.36 5.81 4^-5 3H-5M NOTK.—For sources used, methods of quotation, and back figures, see BULLETIN for November, 1926, April, 1927, July. 1929, November,1929, and May, 1930. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

450 FEDERAL RESERVE BULLETIN JULY, 1930 FOREIGN EXCHANGE RATES [Monthly averages of daily quotations.1 In cents per unit of foreign currency] 1930 1930 Par Par Country Monetary unit of ex- Country Monetary unit of exchange April May June change April May June EUROPE SOUTH AMERICA Austria Schilling 14 07 14.0801 14. 0864 14. 0898 Argentina Peso 96.48 88.6349 87. 2153 84.4773 Belgium Belga 13.90 13.9565 13.9541 13.9529 Bolivia i Boliviano . 36.50 36. 5000 36. 5000 36.1000 Bulgaria Lev .72 .7221 .7219 .7208 Brazil Milreis 11.96 11. 7206 11. 8349 11.3983 Czechoslovakia.. Crown__ _ 2.96 2.9621 2. 9634 2. 9655 Chile . Peso _ 12.17 12.0549 12.0746 12.0777 Denmark Krone 26 80 26 7745 26 7556 26 7556 Colombia do 97 33 96 3900 96 4962 96 6328 Ecuador 2 Sucre 20.00 20. 0000 20 0000 20. 0000 England Pound 486. 65 486.3104 485. 9675 485. 8667 Peru2 . .. Sol»_ .. «40.008 400.000064OO.OOOO 38.2500 Finland ._ -._ Markka. __ 2.52 2. 5171 2. 5172 2. 5172 Uruguay Peso . 103. 42 92.9001 92. 2102 89.1731 France Franc 3.92 3. 9185 3. 9222 3. 9241 Venezuela 2 Bolivar 19.30 19.1300 19 1300 18.9748 Germany Reichsmark. _. 23.82 23. 8684 23. 8627 23.8498 Greece Drachma 1.30 1. 2967 1. 2960 1.2955 ASIA Hungary.._ Pengo... 17.49 17.4718 17.4772 17.4820 China 4 Mexican dollar.. 27.43 33.6670 32. 0607 26. 5046 Italy Lira 5.26 5. 2415 5. 2414 5. 2380 China4 Shanghai tael _ 37.82 46.9037 44. 6901 37. 0400 Netherlands Florin 40.20 40. 2013 40. 2255 40.1991 China4 Yuan dollar 26.83 33.3822 31. 8181 26. 3800 Norway Krone 26.80 26. 7719 26. 7570 26. 7634 Hong Kong 4 Dollar 27.23 37.1905 35. 7697 31.1427 Poland. Zloty 11.22 11.2037 11. 2020 11. 2010 India Rupee 36.50 36.1163 36. 0567 35.9971 Portugal Escudo 108. 05 4.4954 4. 5013 4. 4983 Japan Yen 49. 85 49. 3661 49. 3809 49. 4070 Java 2 Florin ._ 40.20 40. 2350 40 2385 40. 2292 Rumania . Leu .60 .5957 .5953 .5947 Straits Settle- Singapore dol- 56.78 55.8744 55. 8892 55. 9132 Russia 2 -. Chervonetz 514. 603 515. 00003 515.00003 515.0000 ments. lar. Spain Peseta 19.30 12.4828 12. 2283 11. 7490 Turkey Turkish pound.. 439. 65 7 46. 6955 8 47. 0823 9 47.0542 Sweden Krona 26.80 26.8796 26. 8342 26. 8480 Switzerland Franc _ . _ 19.30 19.3790 19 3550 19. 3669 AFRICA Yugoslavia Dinar 19.30 1. 7674 1. 7669 1.7661 Egypt Egyptian pound 494. 316 498.59707 498.6789 9498. 6854 NORTH AMERICA Canada Dollar. ._ 100.00 99.9501 99.8360 99.9913 Cuba Peso 100. 00 99.9189 100. 0032 99. 9403 Mexico do 49.85 47.5414 47. 5356 47.4135 1 Based on noon buying rates for cable transfers in New York. 2 Averages based on daily quotations of closing rates as published by New York Journal of Commerce. 3 Chervonetz quotations nominal. 4 Silver currency. The figure given for parity represents gold value of unit in June, 1930, computed by multiplying silver content of unit by New York average price of silver for June, 1930, which was $0.34910 per fine ounce. On the same basis, parity in June, 1929, for the Chinese-Mexican dollar was 41.44 cents; for the Shanghai tael, 57.13 cents; for the Yuan dollar, 40.53 cents; and for the Hong Kong dollar, 41.14 cents. 5 Monetary law of February 10, 1930. 6 Rate for Peruvian pound. i February, 1930. 8 March. 1930. 9 April, 1930. Back figures.—See BULLETIN for January, 1930, 1929, and 1928. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

JULY, 1930 FEDERAL RESERVE BULLETIN 451 PRICE MOVEMENTS IN PRINCIPAL COUNTRIES WHOLESALE PRICES—ALL COMMODITIES United States Canada England France Germany Italy Japan Month 1929 1930 1929 1930 1929 1930 1929 1930 1929 1930 1929 1930 1929 1930 January 97 93 94 96 138 131 657 576 139 132 461 417 228 201 February 97 92 96 94 138 128 660 567 139 129 463 408 226 199 March 98 91 96 92 140 125 654 558 140 126 461 400 226 196 April _ 97 91 95 92 139 124 648 548 137 127 455 396 225 193 Mav 96 89 92 90 136 122 643 541 136 126 452 390 223 189 June 96 93 136 629 135 447 2'?2 July 98 96 137 624 138 440 220 \ugust 98 98 136 598 138 437 September (J8 97 136 608 138 437 218 October 9(5 97 136 607 137 436 216 November 94 96 134 f03 136 431 211 December -_ 94 96 133 596 134 425 205 Australia Austria Belgium China Czechoslovakia Denmark Dutch East Indies 1929 1930 1929 1930 1929 1930 1929 1930 1929 1930 1929 1930 1929 1930 January - 157 151 128 125 867 808 ieo 170 139 126 151 143 149 143 February 156 147 130 ! Ik3 865 791 162 175 139 124 159 140 149 141 March _ 157 144 133 121 869 774 164 174 141 122 154 136 150 139 April 158 146 134 119 862 777 161 174 141 121 150 135 148 May 156 148 135 i 118 851 162 173 137 120 148 132 150 June 158 134 848 163 134 146 IJ.9 July 159 132 858 163 135 149 149 ICO 132 i ._ 850 165 134 150 148 September 1C3 128 846 167 132 150 148 October 161 127 I 838 168 131 149 147 November 158 125 834 165 130 147 146 December 123 823 165 146 144 i Egypt Finland Hungary India Netherlands New Zealand Norway 1929 1930 1929 1930 1929 1930 1929 1930 1929 1930 1929 1930 1929 1930 Januarv 125 109 100 94 132 106 145 131 146 131 155 155 149 144 February 122 106 100 93 136 104 144 126 146 126 155 155 150 143 March 123 101 100 • 92 136 100 143 125 147 122 155 154 150 142 April 120 101 99 92 135 96 140 123 144 155 148 141 May 114 101 98 90 123 139 121 142 155 146 140 June 108 98 122 138 141 155 147 July 109 97 ! 119 142 __ 141 156 149 August 112 97 114 143 142 156 148 September 113 96 109 143 141 157 148 October 115 96 111 140 140 156 147 November 112 95 '___ 107 137 137 146 December 110 95 107 134 1.35 154 146 Peru Poland Russia South Africa Spain Sweden Switz3rland 1929 1930 1929 1930 1929 1930 1929 1930 1929 1930 1929 1930 1929 1930 January 186 181 98 88 177 182 135 121 171 172 144 131 143 136 February 185 181 99 85 177 173 172 145 128 143 133 March 189 180 99 85 178 174 172 144 125 142 131 \pril 185 179 98 89 179 131 174 141 124 140 129 May 186 179 95 180 171 140 139 128 June 186 178 95 181 170 139 139 JUly 187 96 180 129 169 140 143 187 95 180 170 141 ' 143 186 94 181 171 140 142 October 186 93 182 128 172 138 142 184 95 181 171 135 140 Dct'GinbGr 182 92 182 172 134 139 NOTE.—All of the indexes shown, with twro 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 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; Poland—1927; Russia—1913; South Africa—1910; Spain—1913; Sweden—191%; 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 (p. 256). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

452 FEDERAL RESERVE BULLETIN JULY, 1930 WHOLESALE PRICES—GROUPS OF COMMODITIES Other commodities Nonagricul- UNITED ST 1 A 00 T ) ES (1926** m Al o l d c i o ti m es - pr F o a d r u m cts Foods Total 1 p l r H e o a a d i n t d u h d e c e s t r s p T ro e d x u ti c le ts Fuel and p M r m o a e d e n t t u d a a c l l s t s ] i B na u t i e ld ri i a n l g s , ; C d h r e u m gs i- f H u g r o o i n n o u i g d s s h e s - - ; M lan is e c o e u l s - m t c u t o i o r e m d a s l i - - 1929—May -— -. 96 102 98 93 107 i 94 81 105 97 94 97 i 80 94 November 94 101 99 92 108 ! 92 82 102 96 94 97 80 93 December 94 10? 99 91 107 90 81 102 96 94 97 i 80 92 1930—January 93 101 97 90 105 : 89 80 101 96 ! 93 97 ' 79 91 February 92 98 96 90 104 88 79 101 96 1 92 97 79 91 March 91 95 94 89 103 87 77 101 95 ! 91 97 78 90 April 91 96 95 88 103 86 78 99 95 i 91 96 79 89 May -- 89 93 92 88 103 ; 85 78 97 93: 90 96 78 88 Foods Industrial products ENGLAND (1913=100) m Al o l d c it o i m es - Total Cereals an M d e f a is t h O fo t o h d e s r Total s I a r t n e o e d n l Coal m m O i a n e t n e h ta d r e a l r s ls Cotton Wool te O x t t h il e e r s l M an is e c o e u l s j929—May 136 144 133 146 152 132 115 121 118 155 172 131 134 November 134 142 132 150 145! 129 115 128 111 147 156 127 134 December 133 141 132 158 135 128 115 130 111 144 152 125 131 1930—January 131 139 129 154 135 127 ! 115 130 110 : 141 145 123 130 February 128 135 122 152 133 124 i 115 129 110 134 135 120 129 March 125 129 114 145 . 131 122 115 127 107 131 129 116 127 April 124 129 117 ! 141 130 121 114 122 104 131 127 115 127 May 122 127 114 136 132 119 114 119 95 130 129 110 128 Farm and food products Industrial products» FRANCE (1913=100) m Al o l d c it o i m es - Total p A ro n d im uc a t l s pr V t o a e d b g u l e e c - ts Total ! M m i a n e n e t d a r l a s l3 | Textiles l H e a a i n t d h d e e s r c C al u h c e p t m r s o i d - -Rubber Paper Lumber C b e a r m i n c d e k n , t etc. 1929—May 643 607 595 614 675 560 771 453 598 129 677 968 606 November 603 555 686 476 645 566 694 432 606 196 685 1,003 636 December 596 546 695 456 640 i 568 684 433 603 97 685 987 636 1930—January 576 512 647 432 630 571 655 438 602 89 685 987 708 February 567 503 634 424 623 i 570 639 439 613 94 667 987 708 March 558 495 622 419 612 562 621 425 607 90 667 987 708 April 548 481 599 411 '606 i 551 620 405 '598 86 667 987 708 May 541 471 537 431 601 547 615 405 592 81 667 978 708 Agricultural products Industrial raw and semifinished products All com- Provi- GERMANY (1913 = 100) modities Total Ve f g o e o t d a s ble Cattle p A ro n d im uc a t l s Fodder sions Total Coal Iron ]N r T o o u n s fermetals 1929—May 136 126 125 120 130 133 125 131 136 128 118 November 136 128 119 128 153 107 120 130 139 130 113 December 134 126 120 126 146 105 115 129 138 130 112 1930—January _ . ._ 132 122 117 128 134 98 115 128 138 130 112 February 129 116 112 123 129 88 115 127 138 129 111 March i?6 110 109 116 118 86 118 126 138 129 109 April 127 112 118 113 110 99 118 125 136 128 103 May___ 126 111 119 110 109 96 117 124 136 128 90 :Industrial raw and semifinished products—Continued Industrial finished products Textiles l H e a a i n t d h d e e s r Ch c e al m s i- f A er r t t i i l f i i z c e ia rs l a" o e il c f s a h t a n s n ic d al Rubber a m n P a d t a e p p r a e i p a r l e s r B m u a i t l e d r i i n a g l Total | d g u P o c r o o e d - r s s' su g C o m o o e n d r - s s' 1929—May 144 120 126 87 126 30 151 157 158 ' 138 172 November 130 118 127 83 129 23 152 161 157 139 169 December ra 116 127 84 130 22 151 161 156 140 169 1930—January 125 116 127 85 128 21 151 158 156 i 140 168 February 118 114 127 86 127 22 150 158 155 : 139 166 March 114 111 127 86 126 22 150 157 153 139 163 April 116 110 127 86 127 21 149 157 152 ; 139 162 May 116 111 126 83 135 20 147 156 152 139 161 NOTE.—Annual indexes for the groups shown in the table are given for the years 1913 and 1925-1929 in the BULLETIN for April (p. 257). Original sources for these indexes are: 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 GSnerale de la France, Supplement Mensuel Statistique Ge"ne"rale de la France; and Germany—Wirtschaft und Statistik, Statistisches Reichsamt. i The index for other commodities, recently published by the Bureau of Labor Statistics, includes the prices of articles in the all-commodities index with the exception of those for farm products and foods; the nonagricultural index omits merely farm products. r Revised. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

JtTLT, 1930 FEDERAL RESERVE BULLETIN 453 LAW DEPARTMENT Relation between provisions of statute as to eligibility These statutes use different language and have of paper for rediscount and provisions limiting been enacted for different purposes, and the amount of paper of one borrower which may be refact, therefore, that certain paper may be classdiscounted. ified as agricultural under one statute is no The Federal Reserve Board has recently reason why it should not be classified as combeen asked to consider a question as to the mercial or business paper under the other maximum maturity for rediscount purposes of statute. Section 5200 of the Revised Statutes notes of farmers given to dealers for the purdoes not attempt to classify paper as agriculchase of farm implements and also as to the tural or commercial and in fact does not menlimitations on the amount of such notes of any tion " agricultural paper." Furthermore, the one borrower which may be rediscounted for a word "commercial" as used in its broader member bank by a Federal reserve bank. sense in the rediscount provisions of section 13 The Federal Reserve Board has heretofore includes all notes, drafts, and bills of exchange ruled that notes given by a farmer in payment issued or drawn for agricultural, industrial, or for agricultural implements to be used on the commercial purposes. farm are eligible for rediscount as agricultural paper. Agricultural paper may under the law have a maximum maturity at the time of Amendment to Regulation H regarding voluntary withdrawal of State member banks. rediscount of nine months, and accordingly such notes are eligible for rediscount at a The Federal Reserve Board on June 9, 1930, Federal reserve bank with maturities up to amended Regulation H, effective immediately, nine months. Under the rulings of the Comp- by adding at the end thereof a new section troller of the Currency paper of this kind, when reading as follows: actually owned by the person negotiating the same, is regarded as commercial or business SECTION VIII. VOLUNTARY WITHDRAWAL FROM paper which is specifically excepted from the FEDERAL RESERVE SYSTEM limitations of section 5200 of the Revised 1. General.—Any State bank or trust company Statutes upon loans which may be made to desiring to withdraw from membership in a Federal one person by a national bank. In view of reserve bank may do so after six months' written notice the recent amendment to section 13 of the has been filed with the Federal Reserve Board; and the Federal Reserve Board, in its discretion and subject to Federal reserve act bringing the limitations on such conditions as it may prescribe, may waive such the amount of paper, upon which any one six months7 notice in individual cases and may permit person is liable and which may be rediscounted such bank or trust company to withdraw from membership in a Federal reserve bank prior to the expiration of by a Federal reserve bank for a member bank, six months from the date of the written notice of its into conformity with the limitations of section intention to withdraw. 5200 of the Revised Statutes, the ruling of the The law provides, however, that no Federal reserve Comptroller of the Currency on this point may bank shall, except upon express authority of the be regarded as a proper construction to be given Federal Reserve Board, cancel within the same calendar year more than 25 per cent of its capital stock for also to the like limitations of section 13. Acthe purpose of effecting voluntary withdrawals during cordingly, there is no limit on the amount of that year. All applications for voluntary withdrawals such notes, upon which any one person is are required by law to be dealt with in the order in liable, which may be rediscounted by a Federal which they are filed with the board. 2. Resolution of board of directors.—Every notice of reserve bank for a member bank, provided, of intention of a State bank or trust company to withcourse, that the paper is actually owned by draw from membership in the Federal reserve system the person, copartnership, association, or cor- and every application for the waiver of such notice poration negotiating the same. should be accompanied by a certified copy of a resolution duly adopted by the board of directors of such There is believed to be no inconsistency in bank authorizing the withdrawal of such bank from classifying such notes as agricultural paper membership in the Federal reserve system and authorwithin the meaning of the rediscount provi- izing a certain officer or certain officers of such bank to file such notice or application, to surrender for cancellasions of section 13 of the Federal reserve act tion the Federal reserve bank stock held by such bank, and as commercial or business paper actually to receive and receipt for any moneys or other property owned within the meaning of section 5200 of due to such bank from the Federal reserve bank, and to the Revised Statutes and of the fourth para- do such other things as may be necessary to effect the withdrawal of such bank from membership in the graphjof section 13 of the Federal reserve act. Federal reserve system. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

454 FEDERAL RESERVE BULLETIN JULY, 1930 3. Notice of intention to withdraw.—Any State bank Federal reserve bank be refunded. Unless this is done or trust company desiring to withdraw from member- within two months after the expiration of such six ship in a Federal reserve bank after six months' written months' notice or after the waiver of such notice by notice should signify its intention to do so in a letter the Federal Reserve Board, or unless the bank readdressed to the Federal Reserve Board and mailed quests and the board grants, an extension of time to the Federal reserve agent at the Federal reserve before the expiration of such two months, such bank bank of which such State bank or trust company is a will be presumed to have abandoned its intention of member. Such letter should state clearly the reason withdrawing from membership and will not be perfor the bank's desire to withdraw from membership, mitted to withdraw without again giving six months' and should inclose a certified copy of the resolution of written notice or obtaining the waiver of such notice. the board of directors of such bank required by sub- Upon the cancellation of such stock and, after due section 2 hereof. The Federal reserve agent shall provision has been made for any indebtedness due or immediately forward such notice to the Federal Reserve to become due to the Federal reserve bank, such bank Board; and the bank giving notice will be permitted to shall be entitled to a refund of its cash-paid subscripwithdraw from membership by surrendering its stock tion with interest at the rate of one-half of 1 per cent in the Federal reserve bank for cancellation six months per month from the date of last dividend, if earned, after the date on which such notice was received by the amount refunded in no event to exceed the book the Federal reserve agent, unless other such notices value of the stock at that time, and shall likewise be previously received during the same year would result entitled to the repayment of deposits and of any othin the cancellation of more than 25 per cent of the capi- er balance due from the Federal reserve bank. tal stock of such Federal reserve bank during that calen- 6. Withdrawal of notice.—Any bank or trust comdar year. pany which has given notice of its intention to with- 4. Application for waiver of notice.—Any State bank draw from membership in a Federal reserve bank, or trust company desiring to withdraw from mem- may withdraw such notice at any time before its stock bership in a Federal reserve bank without awaiting has been canceled and upon doing so may remain a the expiration of six months from the date of its member of the Federal reserve system. written notice of intention to do so shall address a letter to the Federal Reserve Board applying for permission to withdraw from membership prior to the expiration of six months and requesting the Federal Amendments to Regulation I as to Federal Reserve Reserve Board to waive the six months' notice usually Bank Stock held by member banks. required. Such letter shall be accompanied by the certified copy of a resolution of the board of directors The Federal Reserve Board on June 9, 1930, of such bank required by subsection 2 hereof, and adopted amendments effective immediately to shall be forwarded to the Federal reserve agent at Sections I and II of Regulation I, which has the Federal reserve bank of which the applying bank to do with Federal reserve bank stock held by is a member. The Federal reserve agent shall forward such application to the Federal Reserve Board member banks of the Federal reserve system. with a definite recommendation that the application Paragraphs (c) and (d) of Section I of Regube approved or disapproved and with a full statement lation I were amended to read as follows: of his reasons for such recommendation. Unless there are exceptional circumstances justifying it, the Fed- (c) Increase of capital or surplus by member eral Reserve Board will not be disposed to waive banks.—Whenever any member bank shall increase such notice; and no such application Avill be approved the aggregate amount of its paid-up capital stock and by the Federal Reserve Board if the banks owning surplus, it shall file with the Federal reserve bank of more than 10 per cent of the capital stock of such which it is a member an application on F. R. B. Form Federal reserve bank have previously filed notice of 56, made a part of this regulation, for such additional their intention to withdraw from membership during amount of the capital stock of the Federal reserve bank the same calendar year. of its district as may be necessary to make its total 5. Time and method of effecting actual with- subscription to stock of the Federal reserve bank equal drawal.—A bank's withdrawal from membership in to 6 per cent of its combined capital and surplus. the Federal reserve system is effective on the date on After such application has been approved by the Fedwhich the Federal reserve bank stock held by it is eral reserve agent and by the Federal Reserve Board, duly canceled. Until such stock has been canceled, the applying member bank shall pay to the Federal such bank remains a member of the Federal reserve reserve bank of its district one-half of the amount of system, is entitled to all the privileges of membership its additional subscription, and when this amount has and is required to comply with all provisions of law been paid the appropriate certificate of stock shall be and all regulations of the Federal Reserve Board issued by the Federal reserve bank. The remaining pertaining to member banks and with all conditions half of such additional subscription shall be subject to of membership applicable to it. Upon the cancella- call when deemed necessary by the Federal Reserve tion of such stock all rights and privileges of such Board. State bank or trust company as a member bank cease (d) Consolidation of member banks.—Whenever and determine. two or more member banks consolidate and such con- Upon the expiration of six months after notice of solidation results in the consolidated bank acquiring intention to withdraw from membership was received by operation of law the Federal reserve bank stock by the Federal reserve agent, or upon the waiving of owned by the other consolidating bank or banks, and such six months' notice by the Federal Reserve Board, which also results in the consolidated bank having an therefore, such bank or trust company should sur- aggregate capital and surplus in excess of the aggregate render its stock and its certificate of membership to capital and surplus of the consolidating member banks, the Federal reserve bank and request that same be such consolidated bank shall file an application for canceled and that all amounts due to it from the such additional amount of the capital stock of the Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

JULY, 1930 FEDERAL RESERVE BULLETIN 455 Federal reserve bank of its district as may be necessary terms of section 25 (a) of the Federal reserve to make its total subscription to the stock of the Federal act was amended by the Federal Reserve Board reserve bank equal to 6 per cent of its combined capital on May 29, 1930, effective immediately, so as and surplus, as provided in Section I (c). to make that section read as follows: Section II of Regulation I was amended by adding after subdivision (c) thereof a new sub- SECTION IV.—TITLE division to read as follows: Inasmuch as the name of the Corporation is subject (d) Other closed member banks.—Whenever a nato the approval of the Federal Reserve Board, a pretional bank which has not gone into liquidation as proliminary application for that approval should be filed vided in section 5220 of the Revised Statutes of the with the Federal Reserve Board on F. R. B. Form United States and for which a receiver has not been 150, which is made a part of this regulation. This appointed for other lawful cause shall discontinue its application should state merely that the organization banking operations for a period of 60 days, the Federal of a corporation under the proposed name is contemreserve agent of the Federal reserve district in which plated and may request the approval of that name and such national bank is located shall furnish the Federal its reservation for a period of 30 days. Reserve Board with full information with reference to the facts involved in the case and with a definite recom- So far as possible the title of the Corporation should mendation as to whether the Comptroller of the Cur- indicate the nature or reason of the business contemrency should appoint a receiver for the national bank. plated and should in no case resemble the name of any Upon receipt of this advice the Federal Reserve Board other corporation to the extent that it might result in will, if the circumstances warrant it, request the Comp- misleading or deceiving the public as to its identity, troller of the Currency to appoint a receiver for the purpose, connections or affiliations. national bank. If such receiver is appointed, the The title of every such Corporation shall include the Federal reserve bank stock held by the national bank word "foreign" or the word "international," and no should be surrendered and canceled in the manner such Corporation will be permitted to have the word described in subdivision (6) of this section. "bank" as part of its title: Provided, however, That, with the permission of the Federal Reserve Board, Whenever a State member bank shall cease to exerwhich may be granted or withheld in the board's discise banking functions without being placed in liquidacretion, any Corporation which is closely affiliated tion in accordance with the laws of the State in which with one or more banks and which is organized or operit is located and without a receiver having been apated for the purpose of transacting the foreign banking pointed for it, the Federal reserve agent of the Federal business of such bank or banks may include the word reserve district in which such State member bank is "bank" in its corporate title and need not include the located shall furnish the Federal Reserve Board with word "foreign" or the word "international." full information with reference to the facts involved in the case and with a definite recommendation as to whether the Federal Reserve Board should require the State member bank to surrender its stock in the Federal reserve bank and to forfeit all rights and privileges of Amendment to Regulation L regarding interlocking membership in the Federal reserve system. Upon bank directorates. receipt of this advice the Federal Reserve Board will, if termination of the membership of the State member The Federal Reserve Board on May 14, bank appears desirable, give the member bank notice 1930, amended its Regulation L, effective imof the date upon which a hearing will be held to determediately, so as to conform to the act of March mine whether its membership should be forfeited. If, after such hearing, the membership of a State member 2, 1929, exempting from the provisions of the bank is forfeited the board will direct the Federal Clayton Act joint-stock land banks and " other reserve agent of the Federal reserve district in which banking institutions which do no commercial the member bank is located to cancel the Federal banking business." The amendment to this Teserve bank stock it holds and make appropriate refund thereon. regulation consists of the addition immediately after paragraph (1) of Section III of Regula- Amendment to Regulation K as to titles of corporations tion L, of two paragraphs reading as follows: organized under the terms of section 25 (a) of the Federal reserve act. (2) Do not apply to joint-stock land banks organized under the provisions of the Federal farm loan act. Section IV of Regulation K with regard to (3) Do not apply to banking institutions which do the titles of corporations organized under the no commercial banking business. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

456 FEDERAL RESERVE BULLETIN JULY, 1930 DIGEST OF STATE LAWS RELATING TO THE PURCHASE OF CORPORATE STOCKS BY BANKS AND TRUST COMPANIES There is given below a digest of the State counsel to the various Federal reserve banks. laws relating to the power of banks and trust The digest does not cover permission granted companies to invest in or purchase stocks in to banks and trust companies, to invest in or other corporations, including stocks in other purchase stocks in municipal or other public banks or trust companies. This digest shows corporations, Federal reserve banks, joint-stock the status of State legislation dealing with the land banks, corporations engaged principally in purchase of corporate stocks by banks and trust foreign banking operations, safe deposit comcompanies as of March 1, 1930. It was pre- panies, or similar institutions affiliated in some pared in the office of the counsel to the Federal respects with the business of banking. Keserve Board, with the assistance of the STATES HAVING LEGISLATION PROHIBITING PURCHASE OF CORPORATE STOCKS SUMMARY OF LEGISLATION IN VARIOUS STATES By commercial banks By trust companies By savings banks Colorado. California. Florida.1 STATES HAVING LEGISLATION PE S R T M OC IT K T S ING PURCHASE OF CORPORATE Florida.1 Florida.1 Georgia. Georgia. Idaho.2 Kansas. Idaho.2 Mississippi.* Mississippi.2 By commercial banks By trust companies By savings banks M Ka is n s s i a s s s . ippi.2 N Or e e v g a o d n a . . N M e o b n r t a a s n k a a . . Montana. South Dakota. Nevada. Alabama.1 Alabama.11* Arizona. Nebraska. Washington. North Dakota. Arizona. Arizona. Connecticut.3 Nevada. Oklahoma. California.' Arkansas. Delaware.3 North Dakota. South Dakota. Connecticut.3 Colorado. Florida.* Oklahoma. Washington. Delaware.3 Connecticut.3 Louisiana. Oregon. Wisconsin.3 Louisiana. Delaware. 3 Maine.6 South Dakota. Wyoming. New?Jersey. Florida.* Massachusetts.7 Washington. North Carolina.3 Georgia.12 New Hampshire.' Wyoming. Pennsylvania. Kansas.1 North Carolina.3 South Carolina. Louisiana. Ohio.s Total, 15. Total, 8. Total, 13. Tennessee. Maryland. Rhode Island."> T U e t x a a h s . .1 M Mi a s s s s o a u c r h i u .3 setts.8 S T o en u n th e s C se a e r . olina. sav 1 i A ng p s p a b r a e n n k t s c a o n n d fl i t c r t u i s n t l c a o w m s p o a f n i t e h s i s t o S p ta u t r e c . ha O se t h c e o r r p p o ro ra v t i e s i s o t n o s c k a s u . thorize Vermont.11 Montana. Utah. 2 Specific prohibition is against purchase ooff bbaannkk ssttoocckk,. Virginia. N Ne e w br a H sk am a. pshire.3 V V i e r r g m in o i n a t . .11 sto 3 c S k p s e . cific prohibition is against mutual ssaavviinnggss bbaannkkss purchasing New Jersey. New York.' STATES HAVING NO LEGISLATION SPECIFICALLY APPLICABLE TO— Ohio.' Oklahoma.* Pennsylvania. Commercial banks Trust companies Savings banks South Carolina.' Tennessee. Texas.1 Arkansas. Illinois. Alabama. Utah. Illinois. Iowa. Arkansas. Vermont.11 Indiana. Indiana. California. Virginia. Iowa. Kentucky. Colorado. West Virginia.' Kentucky. Maine. Idaho. Total, 15. Total, 28. Total,116. Maine. Michigan. Illinois. Maryland. Minnesota. Indiana. 1 Amount of stock in other banks limited. Massachusetts. New Mexico. Iowa. *» Only trust companies doing a banking business included. Michigan. North Carolina. Kentucky. 2 Stock of only 1 trust company may be purchased. Minnesota. North Dakota. Maryland. 8 Limitation placed on amount of stock may be purchased. Missouri. Rhode Island. Michigan. * Apparent conflict in laws of this State. Other provisions prohibit New Hampshire. Wisconsin. Minnesota. purchase of corporate stocks. New Mexico. Wyoming. Missouri. ' Limited amount may be invested in stocks of Maine corporations New York. New Jersey. other than banks. Ohio. New Mexico. 8 Amount of stock in another trust company limited. R W h e o s d t e V I i s r l g a i n n d ia . . N O e re w g o Y n. ork. tru f s I t n v co e m stm pa e n n ie t s a a n n d d a n m a o ti u o n n t a l o f b a in n v k e s. stment limited to stocks of certain Wisconsin. Pennsylvania.1 * Purchase of bank stocks prohibited. Texas. * Purchase of bank or trust company stocks prohibited. West Virginia. 10 Stocks of banks and trust companies and certain steam railroads Total, 18. Total, 13. Total, 20. may be purchased. Similar authority is granted to savings departments of banks and trust companies. 11 Stocks in certain banks only may be purchased. 1 General law permitting "corporations organized for profit" to pur- " Only trust companies "operating as investment bankers" included. chase corporate stocks has been considered not to apply to savings banks. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

457 JULY, 1930 FEDERAL RESERVE BULLETIN that may come into its possession as collateral security ALABAMA for loans or any ordinary collection or debts, in the Banks and trust companies doing a banking busi- manner provided by law: Provided further. That any ness.—Purchase of stocks permitted, but amount of goods or chattels coming into its possession as aforestock in bank limited.—" Corporations formed for said shall be disposed of as soon as possible, and after the purpose of carrying on the business of banking twelve months from the date of acquirement shall and trust companies doing a banking business, cease to be reckoned as a part of its assets." (C. and may * * * buy and sell * * * bonds, stocks, M. Digest, sec. 695; Banking Laws, 1929, sec. 26, * * *." (Civil Code of Alabama, sec. 6365; Com- p. 18.) bined Banking Laws of Alabama, 1928, sec. 6365, p. 29). Trust companies—Purchase of stocks permitted.— "* * * N bank shall subscribe for or own exo Trust companies are authorized "to buy and sell all ceeding 10 per cent of the capital stock of any other kinds of * * * stocks, and other investment bank, or invest or have invested an amount exceeding securities." (Act of April 13, 1903, sec. 2, p. 228, in the aggregate 25 per cent of its own paid-in capital as amended by acts of 1923, act 627, sec. 10; Banking stock in the capital stock of any other bank or banks. Laws, 1929, sec. 135 (9) p. 102.) Any bank acquiring capital stock in any other bank in the usual course of business in payment of an indebt- CALIFORNIA edness owing to it, must sell such portion of said stock as is in excess of the amount which it is permitted to Banks—General power to purchase corporate hold and own as herein provided within one year stocks denied.—"No bank shall, except as otherwise from the time the same is acquired. Any bank provided in this act, purchase or invest its capital or failing to sell any such excess stock within tne time surplus or money of its depositors, or any part of herein directed, shall forfeit to the State an amount either, in the capital stock of any corporation unless equal to the face value of such excess stock held by it, the purchase or acquisition of such capital stock shall which sum the superintendent shall sue to recover in be necessary to prevent loss to the bank on an obligathe name of the State in any court having jurisdiction, tion owned or on a debt previously contracted in good and the amount recovered shall be paid into the State faith. Any capital stock so purchased or acquired treasury." (Civil Code of Alabama, sec. 6355; shall be sold by such bank within six months thereafter Combined Banking Laws of Alabama, 1928, sec. if it can be sold for the amount of the claim of such 6355, p. 25.) bank against it; and all capital stock thus purchased or acquired must be sold for the best price obtainable ARIZONA by said bank within three years after such purchase or acquisition unless the superintendent of banks shall Purchase of bank or trust company stocks per- extend the time of its sale for a period not to exceed mitted.—"No bank, loan, or trust company or asso- two years." (California bank act, 1929, sec. 37.) ciation, organized under the laws of the State of Arizona, may purchase, own, hold, and sell or other- Exception—Stock in one trust company.—"Any wise dispose of any of the shares of the capital stock (commercial) bank, with the previous written consent of any other bank, loan, or trust company or associa- of the superintendent of banks may purchase or otherwise acquire and hold the whole or any part of the capition or other corporation; unless, such purchase shall tal stock of not more than one trust company organized be authorized by the executive committee or approved and existing under the laws of this State, and doing by the board of directors; and in case the purchase is of business in the same county in which the principal stock in any other banking corporation the approval place of business of such bank is located: Provided, of said purchase must also be had from the superinhowever, That not more than an amount equal to tendent of banks." (Laws of 1922, ch. 31, sec. 20, p. twenty-five per centum of the capital and surplus of 130; Banking Laws, 1922, sec. 20, p. 17.) any such bank may be at any one time invested in the The term "bank" as used above includes savings capital stock of such trust company or such other corbanks. (Laws of 1922, ch. 31, sec. 1; Banking Laws, poration." (California bank act, 1929, sec. 37.) 1922, sec. 1, p. 9). Savings banks are authorized to make investments ARKANSAS of their funds only in such stocks as are enumerated Banks—No specific statutory provisions.—There are in the California bank act, and there is not included in no statutes in this State specifically authorizing banks this enumeration the kinds of corporate stocks conto purchase the kinds of corporate stocks covered by templated by this digest. (California bank act, 1929, this digest. However, "no bank shall employ its sees. 61, 62, and 145.) moneys, directly or indirectly, in trade or commerce Trust companies—Investment in corporate stocks by buying and selling goods, chattels, wares and mer- prohibited.—Trust companies are not authorized to chandise, nor be the purchaser or holder of its own purchase corporate stocks of the kinds contemplated capital stock, unless sucri security or purchase shall be by this digest for the reason that investments of their necessary to prevent loss upon a debt previously con- funds are made subject to the provisions governing tracted in good faith; and stock so purchased or ac- the investment of funds by savings banks. The quired shall, within twelve months of its purchase, California bank act provides that "every trust company be sold or disposed of at private sale; after the expi- shall invest its capital and surplus * * *, in acration of said twelve months any such stock shall not cordance with the laws relative to the investment be considered as part of tne assets of any bank: Pro- * * * of funds deposited with savings banks, vided, That it may hold and sell all kinds of property* * *." (California bank act, 1929, sec. 105.) Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

458 FEDERAL RESERVE BULLETIN JULY, ] COLOEADO FLORIDA Banks may not purchase corporate stocks.—"No Banks and trust companies may not purchase bank shall purchase its own stock, nor the stock of any stocks.—"That it shall be unlawful for any bank or other corporation, except such as it may necessarily trust company organized under the laws of this State acquire in the protection or satisfaction of previously and doing business in this State, to directly or indirectly existing loans made in good faith. Any stock so invest any of the funds of said bank or trust company acquired shall be sold by the bank within three years, in stock of any incorporated company in this State or and sooner if it can be done without impairing the elsewhere * * *." (Compiled General Laws of banks' investment in the same." (Compiled Laws of Florida, 1930 Supp., sec. 6084.) Colorado, 1921, sec. 2683; Banking Laws, 1928, "sec. Savings banks may purchase bank stocks.—"The 33, p. 19). capital and deposits and the income derived therefrom Savings banks are authorized to make certain invest- shall be invested only as follows: ments, but corporate stocks of the kinds contemplated * * * ** by this digest are not included in the classes of authorized investments. (Compiled Laws of Colorado, "4. In the stock of any bank incorporated under the sec. 2685; Banking Laws, 1928, sec. 35, p. 20.) authority of this State, or the stock of any banking Trust companies authorized to buy and sell stocks.— association incorporated under the authority of the " AJ trust companies incorporated under the provisions United States * * *." (Compiled General laws of this act are dulv authorized: of Florida, 1927, sec. 6120; Banking Laws, 1926, p. 30.) Trust companies may purchase stocks.—"Every trust company organized under and in pursuance of "Seventh. To purchase, invest in and sell stocks this article shall have power: * * *." (Compiled Laws of Colorado, 1921, sec. * * * ** 2765; Banking Laws, 1928, sec. 128, p. 66.) "(10) To purchase, invest in and sell stocks. * * *." (Compiled General Laws of Florida, 1930 CONNECTICUT Supp., sec. 6126 (10). Purchase of corporate stocks permitted up to certain NOTE.—It will be observed that there is an apparent amount.—Banks and trust companies "* * * may conflict in the laws of this State, and it is understood purchase and hold corporate securities of any descrip- that none of the statutes above referred to have tion, provided the total amount at the purchase price received judicial construction. invested in corporate stocks shall at no time exceed twenty-five per centum of its combined capital, sur- GEORGIA plus and undivided profits and provided its investment Banks may not purchase stocks.—"No bank shall in the stock of any one corporation shall not exceed subscribe for, purchase, or hold stock in any other ten per centum of the stock of that corporation or bank * * * nor in any other corporation unless exceed ten per centum of the percentage prescribed the same shall have been transferred to it in satisfacherein, whichever may be the greater. * * *" tion of a debt previously contracted, or shall have been (General Statutes of Connecticut, sec. 3955, as amended purchased at a sale under a power contained in a note or by laws of 1927, ch. 251; Banking Laws, 1929, sec. other instrument by which it was pledged to the bank 3955, p. 9.) or under a judgment or decree in its favor, and all such Savings banks and banks and trust companies main- stock shall be disposed of by the bank within six taining savings departments may make limited invest- months, unless the superintendent of banks shall exments of their savings deposits in the stocks of certain tend the time for good cause shown." (Amendments banks located in the State of Connecticut and certain to banking act of Georgia approved August 25, 1927, cities in other States. (General Statutes of Connecti- sec. 10.) cut, sec. 3928; and sec. 3972 (27), as amended by laws The term "bank" as used in the laws of Georgia inof 1929, ch. 279; Banking Laws, 1929, sec. 3928, p. 20; cludes savings banks. (Banking act of Georgia, 1919, and sec. 3972 (27), p. 52.) as amended 1925, article 1, sec. 1.) Trust companies operating as investment bankers DELAWARE may deal in stocks and bonds.—"Dealing in stocks and Banks and trust companies may purchase stocks.— bonds.—Trust companies, operating as investment "No bank or trust company shall invest more than bankers, and maintaining departments for the purchase twenty-five per centum of its total capital, surplus and sale of securities, may purchase for resale whole and undivided profits in the stock, bonds or other issues or parts of issues of stocks, bonds, and debentures obligations of any one corporation or political entity of industrial, railroad, and public service corporations or political division except bonds or other obligations and other investment securities, and may resell and of the United States, of the State of Delaware, or of deal in the same, under such regulations as may be any county, city, town oi school district in this State." prescribed by the superintendent of banks." (Trust (Act of March 31, 1921, sec. 13; Banking Laws, 1929, company act of 1927, sec. 5A.) p. 26.) The term "bank" as used in the above excerpt from IDAHO the laws of Delaware includes savings banks. (Act Purchase of bank stocks prohibited.—"No bank of March 13, 1921, sec. 1; Banking Laws, 1929, sec. 1,shall * * * purchase any shares of * * * any p. 14.) other bank wherever organized, or situated * * * Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

459 JULY, 1930 FEDERAL RESERVE BULLETIN unless such * * * purchase shall be necessary to The term "bank" as used in the above excerpt from prevent loss upon a debt previously contracted in good the laws of Kansas includes savings banks. (Laws of faith; and stock so purchased * * * shall within 1897, ch. 47, sec. 36, as amended by Laws of 1907, ch. six months from the date of acquirement be sold or dis- 64, sec. 1; Banking Laws, 1929, sec. 36, p. 14.) posed of at public or private sale; after the expiration Trust companies authorized to purchase stocks.— of six months any such stock shall not be considered "The purposes for which trust companies may be as a part of the assets of such bank." (Laws of 1925, formed are: ch. 133, sec. 29; Bank Code, 1925, sec. 29, p. 18.). * * * ** Savings banks are empowered to make certain invest- "Eighth, * * * to buy and sell all kinds of ments of their funds, but they do not have the power to government, state, county, municipal, and corporainvest in the kinds of corporate stocks contemplated tion bonds, and all kinds of negotiable and nonnegotiaby this digest. (Laws of 1925, ch. 230, p. 446; Bank ble paper, securities and stocks: Provided, That the Code, 1925, sec. 2, p. 50.) total investment of any such trust company in bank The term "bank" as used in the Idaho laws includes stock shall at no time exceed one-fourth its paid-up trust companies. (Laws of 1925, ch. 133, sec. 2; Bank capital stock: * * * Provided, That the total in- Code, 1925, sec. 2, p. 5.) vestment in bank stock held by any trust company in excess of one-fourth of its capital shall be disposed of ILLINOIS within two years from the passage of this act." (Revised Statutes of Kansas, 1923, sec. 17-2002; Banking No statutory provisions.—The statutes of Illinois Laws, 1929, sec. 2, pp. 38 and 39.) contain no provisions authorizing or prohibiting banks or trust companies to purchase corporate stocks. KENTUCKY INDIANA No statutory provisions.—The laws of Kentucky contain no specific provisions with reference to the Commercial banks or trust companies—No specific purchase of corporate stocks by banks or trust comstatutory provisions.—The statutes of Indiana contain panies. With reference to banks, the law does provide no provisions specifically authorizing or prohibiting that no bank shall employ its moneys, directly or commercial banks or trust companies to purchase indirectly, in any enterprise or business except as corporate stocks. authorized by law; but the right to purchase corporate Savings banks not permitted to purchase corporate stocks does not appear to be authorized by law. stocks contemplated by this digest.—Savings banks (Carroll's Kentucky Statutes, 1930, sees. 579 and 582; may "invest the money deposited therein" only in Banking Laws, 1926, sees. 579 and 582.) such bonds, notes, etc., as are specifically enumerated, Trust companies are not authorized expressly to and there is not included in this enumeration any purchase corporate stocks, but the law does provide corporate stocks of the kinds contemplated by this that "the capital stock of a trust company, and the digest. (Acts of extra session of 1869, p. 104, sec. 19, funds in its possession, not held in a fiduciary capaas amended by acts of 1875, p. 129, acts of 1893, p. 273, city, may be invested in such manner as the directors acts of 1903, p. 211 and acts of 1917, p. 416.) deem prudent and safe; * * *." (Carroll's Kentucky Statutes, 1930, sees. 606 and 614; Banking Laws, IOWA 1926, sees. 606 and 614.) Investment in corporate stocks of the kinds con- LOUISIANA templated by this digest prohibited.—The laws of Iowa provide that banks and trust companies shall Purchase of any corporate stocks permitted.—All invest only in such stocks, bonds, and securities as are banks and trust companies are empowered "to receive, specifically enumerated therein, and there is not hold, purchase, acquire, and convey, by and under included in this enumeration any stocks of the kinds their corporate name, such property, real and percontemplated bv this digest. (Banking Laws, 1929, sonal, including bonds, stocks, and securities of the ch. 413, sees. 9183, 9183-C1; ch. 415, sees. 9269, 9271; United States, or of any of the United States, or of ch. 416, sec. 9284; ch. 416-A1, sec. 12772.) The laws any corporation, board or body, public or private of Iowa also provide that "No State bank, savings thereof, as may be necessary, proper or convenient to bank, or trust company shall make any loan or dis- the objects of the association, and to exercise in relation count on the security of the shares of its own capital thereto, all the direct and incidental rights of ownerstock, or be the purchaser or holder of any shares, ship." (Laws of 1902, act No. 45, sec. 1 (2), and sec. unless such security or purchase shall be necessary to 7, as amended by act No. 238 of 1910, and act No. 179, prevent loss upon a debt previously contracted in good as amended; Banking Laws, 1928, sec. 1 (2), p. 26, faith, and stock so purchased or acquired shall be sold sec. 7, p. 30, sees. 1-32, pp. 3-21.) at public or private sale, or otherwise disposed of, within one (1) year from the time of its purchase or MAINE acquisition unless the time is extended by the super- Trust and banking companies—No specific statutory intendent of banking." (Banking Laws, 1929, ch. provisions.—The laws of Maine do not contain any 413, sec. 9184.) provisions expressly authorizing "trust and banking companies" to purchase corporate stocks, but the laws do give such companies the power "to hold and Banks may not purchase corporate stocks.—"No enjoy all such estate, real, personal and mixed, as may bank shall employ its moneys, directly or indirectly, in be obtained by the investment of its capital stock or trade or commerce, by buying and selling goods, any other moneys and funds that may come into its chattels, wares, and merchandise, and shall not invest possession in the course of its business and dealings, any of its funds in the stock of any other bank or cor- and the same sell, grant and dispose of: * * *." poration * * *." (Session Laws of Kansas, 1927, (Public Laws, 1923, ch. 144, sec. 61; Banking Laws, p. 126; Banking Laws, 1929, sec. 11, p. 6.) 1927, sec. 61, p. 41.) Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

460 FEDERAL RESERVE BULLETIN JULY, 1930 Savings banks may invest in stock of Maine corpora- of such companies and associations having an aggretions other than banking corporations—Amount of gate initial cost in excess of fifteen per cent of the deinvestment limited.—" Sayings banks and institutions posits of such savings bank, or stock of any one such for savings may hereafter invest their funds as follows, company or association having an initial cost in excess and not otherwise: of one per cent of the deposits aforesaid." (General * * * ** Laws, ch. 168, sec. 54, (7th), as amended by acts of 1929, ch. 315, sec. 1; Savings Banks Pamphlet Laws, "(a) In the stock of any Maine corporation, other sec. 54 (7th), p. 39.) than a banking corporation, actually conducting in this state the business for which such corporation was MICHIGAN created, provided such corporation has for a period of three years next preceding the investment earned and Purchase prohibited of kinds of corporate stocks received an average net income equivalent to at least contemplated by this digest.—The laws of Michigan six per cent upon the entire outstanding issue of the provide that banks and trust companies may only stock in question." purchase certain specifically enumerated stocks, bonds, " (b) The aggregate of all investments made by anyand other securities, and this enumeration does not bank in stock shall at no time exceed five per cent of its include any of the stocks contemplated by this digest. deposits, and not more than one per cent of the de- (Laws of 1929, act No. 66, sees. 4 and 24; Laws of posits of such bank shall be invested in the stock of any 1929, Act No. 67, sees. 19 and 24; Laws of 1919, Act single corporation. No such bank shall hold by way No. 94, sec. 1.) of investment or as security for loans, or both, more MINNESOTA than one-fifth of the capital stock of any corporation; but this limitation shall not apply to assets acquired in Purchase of kinds of corporate stocks contemplated good faith upon judgments for debts or in settlements by this digest not permitted.—The statutes of Minneto secure debts." (Public Laws, 1923, ch. 144, as sota provide that banks and trust companies may only amended, sec. 27; Banking Laws, 1927, sec. 27, pp. 12purchase or invest in such stocks, bonds, etc., as are and 22.) specifically enumerated, and there is not included in this enumeration any of the stocks contemplated by this MARYLAND digest. (G. S. 1923, sees. 7649, 7663, 7714, as amended Purchase of corporate stocks permitted to trust com- by Laws of 1927, ch. 368 and ch. 422, 7716, 7735, panies.—Trust companies are given the power "to 7738, 7740, and 7810.) exercise, by its directors, duly authorized officers or agents, all such powers as shall be usual in carrying on MISSISSIPPI the business of banking. * * * by purchasing, investing in and selling stocks, * * * j other Purchase of bank stocks prohibited.—"No part securities * * *." (Bagby's Code, art ic a l n e ( 11, sec. of the stock of any bank * * * shall be owned 46; Banking Laws, 1927, sec. 46 (9), p. 23.) by any bank under the provisions of this act. Any Banks.—No specific statutory provisions.—There do such stock owned by any bank at the time this act takes not appear to be any provisions in the laws of Maryland effect shall be disposed of within twelve months after specifically authorizing or prohibiting banks to purchase such time. In cases where such stock is taken as corporate stocks. collateral and the purchase thereof shall be necessary to prevent loss upon a debt previously contracted in MASSACHUSETTS good faith, then in such cases such stock shall be sold Purchase of corporate stocks by trust companies per- by the bank within twelve months from the time that mitted.—A trust company may "* * * invest its it" was required. A violation of this section by any moneys or credits, whether capital or general deposits, bank or banks under the provisions of this act shall be in the stocks, bonds or other evidences of indebtedness constituted a breach of law and subject any such bank of corporations or of associations or trusts, * * *." or banks to liquidation and forfeit of their respective (General Laws, ch. 172, sec. 33; Trust Company Pam- charters." (Laws of Mississippi, 1922, chap. 172, phlet Laws, sec. 33, p. 21.) sec. 49; Brown's 1925 Miss, and Federal Statutes p Limitation upon purchase of stocks in other trust pertaining to Banks and Banking, p. 71.) companies.—"No trust company shall hold more than The term "bank" as used in the laws of Mississippi ten per cent of the capital stock of any other trust includes trust companies and savings banks. (Laws company." (General Laws, ch. 172, sec. 43; Trust of Mississippi, 1914, chap. 124, sec. 66; Brown's 1925 Company Pamphlet Laws, sec. 43, p. 23.) Miss, and Federal Statutes pertaining to Banks and Savings banks may purchase certain bank and trust Banking, p. 72.) company stocks—Amount limited.—Savings banks MISSOURI may invest their deposits and income derived therefrom— Purchase by trust companies of corporate stocks "In the stock of a trust company incorporated under limited.—A trust company "shall not invest or keep the laws of and doing business within this common- invested in the stock of any private corporation an wealth, or in the stock of a national banking associa- amount in excess of fifteen per centum of the capital tion located in the New England States and incor- and surplus fund of such trust company; nor shall it porated under the authority of the United States, purchase or continue to hold stock of another bank or which has paid dividends of not less than four per cent trust company if by such purchase or continued investtherein in cash in each of the five years next preceding ment the total stock of such other bank or trust comthe date of such investment and the amount of whose pany owned and held by it as collateral will exceed surplus is at least equal to fifty per cent of its capital; fifteen per centum of the stock of such other bank or but a savings bank shall not hold, both by way of trust company: Provided, however, that this limitainvestment and as security for loans, more than twenty- tion shall not apply * * * to the ownership by five per cent of the stock of any one such company or such trust company or its stockholders of a part or all association, nor shall it hold by way of investment stock of the capital stock of one bank organized under the Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

JULY, 1930 FEDERAL RESERVE BULLETIN 461 laws of the United States or of this State." (Revised tion, * * *." (Revised Laws of 1912, sec. 13, Statutes of Missouri, 1919, sec. 11807, as amended p. 195, as amended, Laws of 1915, p. 32; Banking Laws, by Laws of 1927, p. 241.) 1927, sec. 13, p. 7.) There are no statutory provisions in this State gov- The word "bank" as used in the banking law of erning the purchase of corporate stocks by banks; Nevada includes savings banks and trust companies. and the Missouri courts have held that in the absence (Revised Laws of 1912, sec. 75; Banking Laws, 1927, of express authority, one bank can not purchase the sec. 75, p. 23.) shares of stock of another bank. NEW HAMPSHIRE MONTANA Purchase of corporate stocks permitted.—Trust com- Banks prohibited from purchasing stocks.—"No panies are authorized and empowered "to negotiate, commercial or savings bank shall purchase or invest purchase and sell stocks, bonds and other evidences of its capital or surplus, or money of its depositors, or any debt; to do a general banking business; and to conduct part of either, in the capital stock of any corporation, a savings department." (Public Laws, ch. 265, sec. unless the purchase or acquisition of such capital stock 31; Banking Laws, 1929, sec. 31, p. 41.) shall be necessary to prevent loss to the bank on a debt limitation upon such purchase.—"The total liabilipreviously contracted in good faith. Any capital stock ties of a person, firm, or corporation, including in the so purchased or acquired shall be sold by such bank liabilities of a firm the liabilities of its several members, within six months thereafter, if it can be sold for the for money borrowed of the commercial department of amount of the claim of such bank against it; and all a trust company or other corporation of a similar charcapital stock thus purchased or acquired must be sold acter, whether organized under the provisions of this for the best price obtainable by said bank within one chapter or otherwise, shall at no time exceed ten per year after such purchase or acquisition. Every person cent of its capital stock actually paid in and surplus, or corporation violating any provision of this section nor shall such corporation purchase or hold, by way shall forfeit to the State twice the nominal amount of of investment, the stocks and bonds of any corporation such stock." (Laws of Montana, 1927, chap. 89, to an amount in excess of said ten per cent." (Public sec. 39; Banking Laws, 1927, sec. 39, p. 32.) Laws, ch. 265, sec. 37; Banking Laws, 1929, sec. 37, p. 42.) Trust companies authorized to purchase stocks.— Savings banks and savings departments of banks The laws of Montana authorize the organization of and trust companies.—Subject to certain limitations, trust companies which may invest in corporate stocks savings banks and savings departments of banking and other securities, and also provide as follows: and trust companies may invest in the capital stock tt * # * The board of directors of any such of banks, trust companies, and certain other corporacorporation (trust company) is authorized to invest the tions. However, such investments are limited, in the capital and assets of said corporation * * * in case of any one corporation, to 5 per cent of the de- * * * stocks and bonds of corporations * * *." posits of the purchasing savings banks or savings de- (Laws of Montana, 1927, chap. 89, sec. 4 (c) (8) and partments of banking and trust companies. (Public sec. 26; Banking Laws, 1927, sec. 4 (c) (8) and sec. 26.) Laws, ch. 260, sec. 16, ch. 262, sees. 1, 7, 8, 9, 12, 13, 14, 15; Banking Laws, 1929, sec. 16, p. 7, sees. 1, 7, NEBRASKA 8, 9, 12, 13, 14, 15.and pp. 20, 23-29.) Banks—Purchase of corporate stocks prohibited.— "No corporation transacting a banking business shall NEW JERSEY * * * be the purchaser or holder of * * * the Banks (other than savings banks) and trust compashares of any corporation, unless such * * pur- nies authorized to purchase corporate stocks.—Banks chase shall be necessary to prevent loss upon a debt (other than savings banks) "in addition to the power previously contracted in good faith; and such stock so and authority now conferred upon them, shall be purchased or acquired shall, within six months from authorized to purchase, invest in and sell stocks of corthe time of its purchase, be sold or disposed of at public porations." (Laws of 1927, ch. 12; Banking Laws, or private sale; or in default thereof, a receiver may be 1928, sec. 10, p. 54.) appointed to close up the business of the bank: Pro- Trust companies are authorized "to purchase, vided, in no case shall the amount of stock so held invest in and sell stocks * * * and other securiexceed ten per cent of the paid-up capital of such bank." ties; * * *." (Laws of 1899, ch. 174, sec. 6 (10); (Comp. Stat. of Nebraska, 1922, sec. 8006; Banking Banking Laws, 1928, sec. 6 (10), p. 66.) Laws, 1929, sec. 8006, p. 12.) Savings banks may only invest in certain specifically Savings banks are not permitted to purchase cor- enumerated securities, and there is not included in this porate stocks. (Comp. Stat. of Nebraska, sec. 8016; enumeration any of the corporate stocks contemplated Banking Laws, 1929, sec. 8016, p. 18.) by this digest. (Laws of 1926, ch. 129, sec. 1.) Trust companies—Purchase of corporate stocks permitted.—Trust companies have the power "to buy, NEW MEXICO hold and own and sell * * * stocks, * * * and other investment securities." (Comp. Stat. of Commercial banks and trust companies.—No statu- Nebraska, 1922, sec. 8008, as amended by Laws of tory provisions.—There do not appear to be any pro- 1927, act approved April 20, 1927.) visions in the laws of New Mexico expressly permitting or prohibiting commercial banks and trust companies to purchase corporate stocks. Trust companies, how- NEVADA ever, are authorized "* * * to purchase, invest in Purchase of corporate stocks prohibited.—"No bank and sell all kinds of * * * investment securities." shall employ its moneys, directly or indirectly in trade (Laws of 1915, ch. 67, sec. 60 (7); Bank Code, 1929, or commerce by buying or selling goods, chattel wares, sec. 60 (7), p. 22); and with reference to commercial or merchandise, and shall not invest any of its funds banks, the laws of New Mexico provide that "* * * in the stock of any bank or trust company or corpora- no bank shall at any time have invested more than Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

462 FEDERAL RESERVE BULLETIN JULY, 1930 thirty per cent of its unimpaired capital and surplus as an asset. The limit of time in which such stocks in the notes, bonds, or other securities of any person, shall be disposed of or charged off the books of the firm, or corporation * * *." (Laws of 1929, ch. bank may be extended by the corporation commission, 131, sec. 9; Bank Code, 1929, sec. 36, p. 15.) if in its judgment it is for the best interest of the bank Savings banks may only invest their deposits in that such extension be granted." (Ann. Code of North certain specifically enumerated securities, and there is Carolina, 1927, sec. 220 (c); Banking Laws, 1927, sec. not included in this enumeration any of the corporate 220 (c), p. 20.) stocks contemplated by this digest. (Laws of 1929, Corporation commission may suspend limitations on ch. 66; Bank Code, 1929, sec. 56, p. 20.) amount may purchase.—"The board of directors of any bank may, by resolution duly passed at a meeting NEW YORK of the board, request the corporation commission to temporarily suspend the limitation on loans and invest- Trust companies permitted to purchase stocks.— ments as same may apply to any particular loan or Trust companies have the power "to purchase, invest investment, which said bank desires to make in excess in and sell stocks * * * and other securities; of the provisions of sections 220 (b), 220 (c) * * * * * *." (Banking Law, sec. 185 (9).) of this act. Upon receipt of a duly certified copy of limitation upon purchase of corporate stocks.—A such resolution, the corporation commission may, in trust company "shall not invest or keep invested in its discretion, suspend the limitation on loans and inthe stock of any private corporation an amount in vestments in so far as it w^ould apply to the loan or excess of ten per centum of the capital and surplus investment which such bank desires to make." (Ann. of such trust company; nor shall it purchase or con- Code of North Carolina, 1927, sec. 220 (e); Bankingtinue to hold stock of another moneyed corporation if Laws, 1927, sec. 220 (e), p. 21.) by such purchase or continued investment the total Purchase of stock of corporation owning land or stock of such other moneyed corporation owned and building used by bank.—A bank may invest "fifty per held by it as collateral will exceed ten per centum of cent of its unimpaired capital and permanent surplus the stock of such other moneyed corporation, * * *." in the stock or bonds of a corporation owning the land, (Banking Law, sec. 190 (9).) building, or buildings occupied by such bank as its- Banks.—No statutory provisions, but purchase genbanking home" and a bank may not be compelled "to erally of corporate stocks held prohibited.—Banks surrender or dispose of any investment in the stocks proper and savings banks are permitted to purchase or bonds of a corporation owning the lands or buildcertain classes of corporate stocks, but none of these ing occupied by such bank as its banking home, if such stocks is of the type contemplated by this digest. stocks or bonds were lawfully acquired prior to the (Banking Law, sees". 106 and 239.) ratification of this act: Provided further, howTever, The banking department of the State of New York that the corporation commission may, in its discretion, holds that banks have no authority to buy stocks other authorize banks located in cities having a population than those classes above referred to, and the courts of more than five thousand according to the latest in this State have rendered decisions to the effect that United States census to invest an amount greater than banks can not purchase stocks of other corporations fifty per cent of its unimpaired capital and permanent for the purpose of selling at a profit, can not become surplus in the stocks or bonds of a corporation owning stockholders in a railroad corporation, and can not the land, building or buildings occupied by such bank purchase State stocks to sell at a profit. as its banking home." (Ann. Code of North Carolina, 1927, sec. 229 (b); Banking Laws, 1927, sec. 220 (b), NORTH CAROLINA p. 20.) Purchase of corporate stocks permitted, but amount Definition of term "bank"—-"The term 'bank' when of purchase limited.—" No bank shall make any invest- used in this act shall be construed to mean any corment in the capital stock of any other State or National poration, partnership, firm, or individual receiving, bank, provided, that nothing herein shall be construed soliciting, or accepting money or its equivalent on to prevent the subscribing to or purchasing of the cap- deposit as a business: Provided, however, this definiital stock of * * * central reserve banks, having tion shall not be construed to include building and a capital stock of more than one million dollars; by loan associations, Morris plan companies, industrial banks doing business under this act, upon such terms banks or trust companies not receiving money on as may be agreed upon. To constitute a central re- deposit." (Ann. Code of North Carolina, 1927, sec. serve bank as contemplated by this act, at least fifty 216 (a); Banking Laws, 1927, sec. 216 (a), p. 3.) per cent of the capital stock of such bank shall be owned by other banks." (Ann. Code of North Carolina, NORTH DAKOTA 1927, sec. 220 (c); Banking Laws, 1927, sec. 220 (c), p. Purchase of corporate stocks by banks prohibited.— 20.) "No bank shall * * * employ or invest any of its Limitations upon purchase of stocks.—"The investassets or funds in the stock of any corporation, bank, ment of any bank in the capital stock of such central partnership, firm or association, nor shall it invest any reserve bank * * *, shall at no time exceed ten per of its assets in speculative margins of stocks, bonds, cent of the paid-in capital and permanent surplus of * * *." (Supplement to 1913 Comp. Laws of the bank making same. No bank shall invest more North Dakota, sec. 5187; Banking Laws, 1929, p. 25.) than fifty per cent of its jfermanent surplus in the The above prohibition is expressly made applicable stocks of other corporations, firms, partnerships, or companies, unless such stock is purchased to protect to savings banks. (Compiled Laws of North Dakota, the bank from loss. Any stocks owned or hereafter 1913, sec, 5204; Banking Laws, 1929, p. 67.) acquired in excess of the limitations herein imposed shall be disposed of at public or private sale within OHIO six months after the date of acquiring the same, and Banks (other than savings banks) not permitted to if not so disposed of they shall be charged to profit purchase corporate stocks of kinds covered by this and loss account, and no longer carried on the books digest.—Banks, other than savings banks, are author- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

JULY, 1930 FEDERAL RESERVE BULLETIN 463 ized to make certain investments of their capital, sur- rate stocks not contemplated by this digest, the laws plus, undivided profits and deposits in certain securi- of Oregon provide that "Hereafter no bank or trust ties, stocks and bonds, but apparently they are not company shall invest any of its assets in the capital authorized to make investments in the kinds of cor- stock of any other corporation." In case stock is porate stocks contemplated by this digest. (Throck- purchased or acquired to save loss on a preexisting morton's Code of 1929, sees. 710-111, 710-1 lla, 710- debt, such stock must be sold "within 12 months of the 121; Banking Laws, 1928, sees. 710-111, 710-llla, date acquired or purchased, or within such further 710-121.) time as may be granted by the superintendent of banks." Savings banks—Purchase of bank stocks forbidden (Laws of 1925, ch. 207, sec. 81, p. 336; Banking Laws, but * 'stocks of companies" may be purchased.—A 1925, sec. 81, p. 28.) savings bank is empowered to invest its funds in "stocks Savings banks and savings departments of banks or of companies, upon which or the constituent companies trust companies are not authorized to invest funds in comprising the same, dividends have been earned and the kinds of corporate stocks contemplated by this paid for five consecutive years next prior to the invest- digest. (Laws of 1929, ch. 380, sec. 31.) ment and stocks of companies taken on a refinancing plan involving an original investment, which was legal PENNSYLVANIA at the time it was made; provided, every such invest- Banks (other than savings banks) and trust comment shall be authorized by an affirmative vote of a panies permitted to purchase corporate stocks.—• majority of the board of directors of such savings The laws of Pennsylvania provide: bank" but "no purchase or investment shall be in the "That hereafter any corporation organized for profit, stock of any other corporation organized or doing created by general or special laws, may purchase, hold, business under the provisions of this act or of the sell, assign, transfer, mortgage, pledge, or otherwise national banking act of the United States." (Act apdispose of, the shares of the capital stock of * * * proved April 18, 1929, Laws of 1929, sec. 710-140(b).) any other corporation or corporations, public or private, Trust companies — Purchase of bank stocks of this or any other State and while the owner of said prohibited, but other corporate stocks may be purstock may exercise all the rights, powers, and privileges chased.—"A trust company may invest in * * * of ownership, including the right to vote thereon." stocks and bonds of corporations when authorized by (Act of July 2, 1901, Public Laws, p. 603 (West's the affirmative vote of the board of directors, or of the Penna. Statutes, 1920, sec. 5785), as amended by acts executive committee of such trust company" but the of Mar. 27, 1929, Public Laws, p. 74, and Apr. 18, prohibition against savings banks purchasing bank 1929, Public Laws, p. 544.) stock is also imposed upon trust companies. (Throck- There are no statutory limitations in Pennsylvania morton's Code of 1929, sec. 710-166; Banking Laws, upon the right of State banks, other than savings banks) 1928, sec. 710-166, p. 64.) and trust companies to purchase stocks of other corporations, and it has been considered that such insti- OKLAHOMA tutions have the right, under the provisions of the act Banks—Purchase of any kind of corporate stocks of July 2, 1901, as amended, to purchase corporate prohibited.—A bank "shall not invest any of its funds stocks. in the stock of any other bank or corporation * * *." Savings banks, however, do not possess the right to (Oklahoma Comp. Stat., 1921, sec. 4123; Banking invest their funds in shares of stopk of other corpora- Laws, 1926, sec. 11, p. 15.) The Constitution of Okla- tions. Such banks, by the provisions of section 17 of homa also provides that "No trust company, or bank the act of May 20, 1889, P. L. 246 (West's Penna. or banking company shall own, hold, or control in any Statutes, 1920, sec. 19770), are permitted to invest manner whatever, the stock of any other trust com- money derived from deposits only as specified in the pany or bank or banking company, except such stock act of May 20, 1889, and as there are no provisions in as may be pledged in good faith to secure bona fide this act or in amendments thereto (act of June 28, 1923, indebtedness, acquired upon foreclosure, execution sale, P. L. 884, and act of April 26, 1929, P. L. 827) permitor otherwise for the satisfaction of debt; and such ting such banks to invest their funds in stocks of other stock shall be disposed of in the time and manner here- corporations, it has been considered that they are inbefore provided" (within twelve months from the without this power. date of acquisition). (Constitution of Oklahoma, art. RHODE ISLAND 9, sec. 41.) Trust companies—May purchase any kind of stocks, Banks proper and trust companies—"No statutory except in a bank or in another trust company.— provisions.—The laws of Rhode Island do not contain Trust companies are given the power "to buy and sell any express authority for banks proper and trust com- * * * all kinds of * * * stocks, and other in- panies to purchase corporate stocks, but a trust comvestment securities." (Oklahoma Comp. Stat. 1921, pany is authorized "* * * to invest its capital sec. 4194 (9); Banking Laws, 1926, sec. 119 (9), p. 64.) stock and moneys in its hands in such bonds, obliga- In view of the above provision of the Oklahoma tions, or property, real, personal, or mixed, as it may Constitution prohibiting a trust company to "hold or deem prudent, * * *." (General Laws, 1923, ch. control in any manner whatever, the stock of any other 271, sec. 4; Banking Laws, 1929, sec. 4, p. 16.) trust company or bank or banking company," it would Savings banks and banks and trust companies reseem that the power given to trust companies to ceiving savings deposits—Purchase of steam railroad "buy and sell * * * all kinds of * * * stocks, and bank stocks permitted.—Deposits in savings banks and other investment securities," is restricted in so far and in the savings departments of banks and trust as the provisions of the Oklahoma Constitution are companies, and in the case of savings banks, the applicable. income derived from investments held, may be invested OREGON subject to detailed limitations in the capital stock of banks and trust companies and certain steam railroad Purchase of corporate stocks prohibited.—Except companies. (General Laws, 1923, sec. 1, Clause IV, for the authority to purchase certain classes of corpo- Clause VII, as amended by Laws of 1927, ch. 1034, Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

464 FEDERAL RESERVE BULLETIN JULY, 1930 Clause XIV, Clause XV, as amended by Laws of 1925, tracted in good faith; and stock so purchased or ch. 653; Banking Laws, sec. 1, p. 22, Clause IV, p. 30, acquired shall, within six months of the time of its Clause VII, p. 37, Clause XIV, p. 43, Clause XV, pp. purchase, be sold or disposed of at public or private 44-45.) sale; and after the expiration of six months any such stock shall not be considered as a part of the assets of SOUTH CAROLINA any trust company." (South Dakota Code, 1919, Banking corporations may deal in corporate stocks.— sec. 9050; Banking Laws, 1927, sec. 9050, p. 68.) ''Every banking corporation may * * * deal in * * * public and other securities, and stocks of TENNESSEE )ther corporations; * • * * may purchase and All corporations authorized to deal in stocks.—The aold such * * * personal property as may be laws of the State of Tennessee provide: "That all conveyed to it to secure debts to the corporation, or private corporations now existing or organized by may be sold under execution to satisfy debts due in virtue of the laws of Tennessee, and all private corporawhole or in part to the corporation, and as may be tions hereafter to be organized and created according to deemed necessary or convenient for the transaction of law, for the transaction of any lawful business, or its business, and may sell and dispose of the same at to promote or conduct any legitimate object or purpose, pleasure; * * *." (Code of 1922, sec. 3992; shall have the right, power, privilege, and immunity Banking Laws, 1928, sec. 62, p. 29.) to purchase, hold, own, sell, transfer, assign, vote, Trust companies authorized to purchase corporate mortgage, pledge, and otherwise deal in stock, bonds, stocks, but amount limited.—Trust companies are or evidence of indebtedness of other corporations in the authorized "to buy, underwrite, invest in and sell all same manner and with all the rights, power, privileges, kinds * * * of stocks or other investment securiand immunities of individual owners, except that this ties." (Banking Laws, 1928, sec. 9 (10), p. 117.) act shall in no way be construed to give corporations Limitation on amount may invest in any one corpower to create unlawful monopolies, trusts, or comporation.—"Shall not invest or keep invested in the binations in restraint of trade." (Act approved stock of any one private corporation an amount in March 31, 1923.) excess of twenty-five per centum (25%) of the capital and surplus fund of such trust company; nor shall it TEXAS purchase or continue to hold stock of another bank or Purchase of corporate stocks permitted.—Banks trust company if by such purchase or continued in- (other than savings banks) and trust companies may vestment the total stock of such other bank or trust purchase, invest in, and sell stocks and other securicompany owned or held by it as collateral will exceed ties. (Rev. Stat., 1925, articles 396 (9), and 1513; twenty-five per centum (25%) of the stock of such other Banking Laws, 1929, article 396 (9), p. 18, and article bank or trust company: Provided, however, That this 1513, p. 76.) limitation shall not apply to the * * * ownerlimitation upon purchase of bank stocks.—"It shall 3 iip by such trust company, or its stockholders, or a be unlawful for any State bank or bank and trust compart or all of the capital stock of one bank organized pany to own more than ten per cent of the capital stock mder the laws of the United States or of this State, of any other banking corporation, or to make a loan nor to the ownership of a part or all of the capital of one corporation, organized under the lawrs of this secured by the stock of any other banking corporation, if by the making of such loan the total stock of such State, for the principal purpose of receiving savings other banking corporation held by it as collateral will deposits." (Banking Laws, 1928, sec. 12 (7), p. 122.) exceed, in the aggregate, ten per cent of the capital stock of such other banking corporation, unless the SOUTH DAKOTA ownership or the taking of a greater percentage of such capital stock as collateral shall be necessary to prevent Banks prohibited j^from purchasing ^corporate loss upon a debt previously contracted in good faith; stocks.—"No bank shall employ its money, directly and any such excess so taken as collateral or owned by or indirectly, in trade or commerce by buying or selling such bank shall not be held as collateral nor owned by goods, chattels, wares, and merchandise, nor shall it it for a longer period than six months." (Rev. Stat. invest any of its funds in the stock of any other bank 1925, article 513; Banking Laws, 1925, article 513, or corporation, nor make loans or discounts on the p. 44.) security of the shares of its own capital stock, nor be the Sayings banks may only invest their deposits in purchaser or holder of any such shares unless such certain specifically enumerated securities, and there is security or purchase shall be necessary to prevent loss not included in this enumeration any of the corporate upon a debt previously contracted in good faith; stocks stocks contemplated by this digest (Rev. Stat., 1925, so purchased or acquired shall, within six months of the article 416;j3anking Laws, 1929, article 416, p. 23.) time of its purchase, be sold or disposed of at public or private sale; and after the expiration of six .months any such stock shall not be considered as part of the UTAH assets of such bank." (Session Laws of South Dakota, Purchase of corporate stocks permitted.—"Any 1919, ch. 125; Banking Laws, 1927, sec. 8983, p. 27.) bank or loan, trust, and guaranty company or associa- Trust companies prohibited from purchasing cor- tion, organized under the laws of the State of Utah, porate stocks.—"No trust company shall employ its may purchase, own, hold, and sell or otherwise dispose money, directly or indirectly, in trade or commerce, of any of the shares of the capital stock of any other by buying or selling goods, chattels, wares, and mer-bank, loan, trust, and guaranty association or other chandise, nor shall it invest any of its funds in the corporation; provided, such purchase shall be authorstock of any other trust company or corporation, nor ized by the executive committee and approved by the make any loans or discounts on the security of the board of directors; and in case the purchase is of stock shares of its own capital stock, nor be the purchaser or in any other banking corporation the approval of said holder of any shares unless such securit}^ or purchase shallpurchase must also be had from the State bank combe necessary to prevent loss upon a debt previously con- missioner; and provided, further, that nothing in this. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

JULY, 1930 FEDERAL RESERVE BULLETIN 465 section shall be so construed as to permit the establish- Savings banks are covered by the above excerpt ment, maintenance, or control of any branch bank or from the laws of Washington. (Laws of 1917, sec. 14, loan, trust, or guaranty company in the State. All p. 275; Banking Laws, 1929, sec. 24, p. 11.) acts or parts of acts in conflict with this section are hereby repealed to the extent of such conflict." (Com- WEST VIRGINIA piled Laws of 1917, sec. 986, p. 299; Banking Laws, Trust companies may purchase stocks of business 1927, sec. 986, p. 8.) corporations, but limited to 20 per cent of capital and The above excerpt from the laws of Utah is made surplus.—Banking institutions authorized to transapplicable to savings banks. (Compiled Laws of 1917, act a trust business are empowered "to buy, hold, sell, sec. 1016; Banking Laws, 1927, sec. 1016, p. 15.) and deal in * * * the stocks or bonds of any business corporation." (Acts of 1929, ch. 23, sec. 4.) VERMONT Such institutions shall not invest "in the stock of any Purchase of bank or trust company stocks per- corporation" an amount exceeding twenty per centum mitted.—Banks of all kinds and trust companies are of their capital stock and surplus fund. "The corpoempowered to invest their assets— ration mentioned in this section shall not be construed "In the stock of any national bank in the New to mean municipal corporations, districts, or counties, or England States or the State of New York, or in the corporations owning the building in which the banking stock of any banking association or trust company institution is located." (Acts of 1929, ch. 23, sec. 21.) incorporated under the authority of and located in There do not appear to be any provisions in the laws such States, or in the stock of any bank incorporated of the State of West Virginia authorizing banking instiunder the authority of and located in the Dominion of tutions organized as commercial or savings banks to Canada; but a bank shall not hold bank stock both by purchase corporate stocks. the way of investment and as security for loans in excess of ten per cent of its assets, nor, in any one bank, WISCONSIN more than five per cent of its assets, or more than Mutual savings banks prohibited from purchasing two hundred thousand dollars, or more than ten per corporate stocks—No statutory provisions covering cent of the capital stock of any one bank." (General other banking institutions.—The statutes of Wisconsin Laws, sec. 5363, par. (a), subdivision VI, as amended contain no provision with reference to the purchase of by acts of 1929, Act No. 90, sec. 5.) corporate stock by banks' and trust companies except mutual savings banks. The provision with reference VIRGINIA to mutual savings banks provides that "* * * no Purchase of corporate stocks permitted.—All banks mutual savings bank shall invest any part of its deposand trust companies are empowered to purchase and its in the stock of any corporation * * *." (Wissell "all stocks and bonds." (Acts of 1928, ch. 507, consin Stat. 1929, sec. 222.13; Banking Laws, 1925, sees. 1 and 12; Banking Laws, 1929, sees. 4149 (1), sec. 222.13, p. 52.) 4149 (13), pp. 24 and 30.) WYOMING Purchase of corporate stocks prohibited.—"Here- WASHINGTON after no State bank shall invest any of its assets in the Purchase of corporate stocks prohibited.—k'* * * capital stock of any other corporation * * *, and Nor shall any such corporation (bank or trust company) except such as it may acquire or purchase to save a loss subscribe for or purchase the stock of any other banking on a pre-existing debt, and stocks so acquired or purhouse or trust company, or of any domestic or foreign chased shall be sold within twelve months from the date corporation of any character, * * *: Provided, acquired or purchased; provided, that a further time That such bank and/or trust company may purchase, may be granted by the State examiner." (Laws of 1925, acquire and hold shares of stock in any other corpora- ch. 157, sec. 32; Banking Laws, 1927, sec. 32, p. 18.) tion which shares have been previously pledged as The term "State bank" as used in the above excerpt security to any loan or discount made in good faith from the laws of Wyoming includes every individual, and such purchase shall be necessary to prevent loss firm, or corporation doing a banking business, and a upon a debt previously contracted in good faith and banking business is engaged in "where credits are stock so purchased or acquired shall be sold at public opened by the deposit or collection of money or currency or private sale or otherwise disposed of within two or negotiable paper subject to be paid or remitted upon years from the time of its purchase or acquisition. draft, receipt, check, or order." (Laws of 1925, ch. (Laws of 1929, sec. 5, p. 100; Banking Laws, 1929, sec. 157, sees. 1, 5, and 10; Banking Laws, 1927, sees. 1, 5, 46, p. 26.). The laws also provide that corporations and 10, pp. 11, 12, and 13.) doing a trust business may not invest trust funds in The statutes of Wyoming contain no provisions aucorporate stocks. (Laws of 1929, ch. 206; Banking thorizing trust companies not doing a banking business Laws, 1929, sec. 77, p. 37.) to purchase corporate stocks. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

466 FEDERAL RESERVE BULLETIN JULY, 1930 DETAILED FEDERAL RESERVE STATISTICS, ETC. FEDERAL RESERVE BANKS—RESOURCES AND LIABILITIES IN DETAIL AND FEDERAL RESERVE NOTE STATEMENT 1930 1929 • June 30 May 31 June 30 RESOURCES Gold with Federal reserve agents 1,596, 214 1, 607,714 1,371,809 Gold redemption fund with United States Treasury.. 36,677 37,857 68, 983 Gold held exclusively against Federal reserve notes-. 1,632, 891 1, 645, 571 1, 440, 792 Gold settlement fund with Federal Reserve Board 603,134 626, 631 658,180 Gold and gold certificates held by banks 776,147 766, 236 758,842 Total gold reserves _ - _ - .- 3,012,172 3, 038,438 2, 857, 814 Reserves other than gold __ _ _. 161,998 156, 940 171, 779 Total reserves . . _ 3,174,170 3,195, 378 3, 029, 593 Nonreserve cash _ 57,122 55, 969 57, 234 Bills discounted 1 _ . _ _- .. 271,828 312, 602 1,037,149 Bills bought: Outright2 - - -. 103,883 135,413 72, 683 Under resale agreement _ - 23,955 49,653 8,909 Total bills bought - -- 127,838 185, 066 81, 592 United States securities: Bought outright 581,404 525, 772 147, 921 Under resale agreement _ _ ... 9,505 2,495 67, 781 Total United States securities _ 590, 909 528, 267 215, 702 Other reserve bank credit: Other securities 5,301 6,400 12,465 Due from foreign bank*? 706 709 728 Reserve bank float3 _ 20,996 15, 697 52, 395 Total reserve bank credit outstanding _ 1,017,578 1, 048, 741 1,400, 031 Federal reserve notes of other reserve banks __ - 19,982 20, 614 19 034 Uncollected items not included in float 509,453 511,695 622, 742 Bank premises _- -_ .. .- - 59, 552 58, 671 58, 616 All other resources 11,758 12, 055 7,121 Total resources _ _ _ .. 4,849,615 4, 903,123 5,194, 371 LIABILITIES Federal reserve notes: Held by other Federal reserve banks -- -_ - 19,982 20, 614 19, 036 Outside Federal reserve banks .. _ _ ... 1,403,790 1,468, 313 1, 693,829 Total notes in circulation 1,423,772 1,488, 927 1, 712,865 Deposits: Member bank—reserve account - -- -- 2,389,070 2,369, 314 2, 355,652 Government 26, 523 42, 700 35,810 Foreign bank _ _ _ 5,879 5,711 6,273 Other deposits - - - - 33,753 18, 228 21,441 Total deposits _ - _ _ - 2,455,225 | 2, 435, 953 2,419,176 Deferred availability items 509,453 511,695 622, 742 Capital paid in _ _ . 169, 723 170, 546 158, 603 Surplus.. 276,936 276,936 254, 398 All other liabilities 14, 506 19, 066 26, 587 Total liabilities 4,849,615 4, 903,123 5,194, 371 Contingent liability on bills purchased for foreign correspondents 469,678 | 462,845 422, 384 FEDERAL RESERVE NOTE STATEMENT Federal reserve notes: Issued to Federal reserve banks by Federal reserve agents 1,746, 500 1, 784, 041 2,194, 970 Held by Federal reserve banks4 . 322, 728 295,114 482,105 In actual circulation 1,423, 772 1, 488, 927 1, 712,865 Collateral held by agents as security for notes issued to banks: GcM _ .... 1, 596, 214 ' 1, 607, 714 1, 371, 809 Eligible paper _ __ 373,354 491, 048 1, 096, 396 Total collateral 1,969, 568 r 2, 098, 762 2,468, 205 1 Includes bills discounted for intermediate credit banks as follows: Latest month, $656,000; month ago, $1,076,000; year ago, $5,791,000; and notes secured by adjusted service certificates discounted for nonmember banks as follows: Latest month, $51,000; month ago, $53,000; year ago, $133,000. 2 Includes bills payable in foreign currencies as follows: Latest month, $1,064,000; month ago, $1,058,000; year ago, $1,043,000. 3 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." r Revised. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

JULY, 1930 FEDERAL RESERVE BULLETIN 467 RESOURCES AND LIABILITIES OF EACH FEDERAL RESERVE BANK ON JUNE 30, 1930 [In thousands of dollars] Total Boston; Y N o ew rk d P e h lp il h a i - a j ! C l l a e n v d e- j m Ri o c n h d - I St. Minne-! Kansas! Dallas F c S i r s a a c n n o j RESOURCES Gold with Federal reserve agents jl, 596, 214154,917 ! 258,594 1140, 000190, 550 65,000 1116,500 J219, 000 j 67,245 50,845 75,000 | 28,802029, 763 Gold redemption fund with U. 3. Treasury. 36,677 1,020 i 14, 852 I 2, 514 2,078 | 1,499 1,800 j 1,513 j 1,785 894 i 1,571 6, 262 Gold held exclusively against Federal reserve notes 1,632,891 155,937 273,446 142, 514192, 628 66,499 i 118, 300 ,220,513 i 69,03051, 739 : 76, 571 j 29, 689236, 025 Gold settlement fund with Federal Reserve Board 603,134 41, 627 153,841 35,801 71, 056 I I | 12, 222 30, 253 13,432 44,968 Gold and gold certificates held 17,450 j 9,189 142,941 j 30,354 by banks 776,147 33,408 478,809 30,981 54,165 i i i 5, 574 10,410 9,443 27, 577 9,209 5,937 100,720 j 9,914 Total gold reserves 3,012,172 230,972 I 906,096 209,296 |317,849 93,158 |133,426 .464,174 109,298 I 69,535 117,23452, 564 308, 570 Reserves other than gold- 161,998 [ 11,876 I 49,456 I 8,672 10,155 I 7,033 ! 15,98015,842 j 12,343 4,417 7,800 7,784 10, 640 Total reserves. 3,174,170 242,848 955, 552 217, 968328,004 100,191 149,406 480,016 1121,641 73,952 125,034 60, 348 319, 210 No n reserve cash 57,122 I 5, 253 12,187 3,098 3, 860 | 3, 570 | 4, 573 8,260 I 4,052 1, 296 1, 796 3,489 5,688 Bills discounted: Secured by U. S. Govern ment obligations 108, 473 7,594 i 47,764 13, 613 17, 635 3, 229 752 8,430 3,754 456 1,892 1,093 2,261 Other bills discounted 163, 355 10,457 I 36,274 15,882 10, 712 18,137 23,711 8,938 11,477 3,390 9,397 8,465 6, 515 271, 828 18,051 ! 84,038 29,495 28,347 21,366 24,463 17, 368 15, 231 3,846 11,289 9, 558 8,776 Total bills discounted-_.. 127,838 13,682 44,008 2,405 7,901 5,334 j 7,707 15,197 4,606 6,278 3,917 3,078 13, 725 Bills bought U. S. Government securities: Bonds. 55, 049 2,335 7,780 1,892 1,842 1,658 22,056 5,234 1, 043 8,746 1,107 Treasury notes. 237,968 15,668 79,001 20,455 26,806 5, 933 6,445 21, 707 14,106 9,461 11,214 8,926 18, 246 Certificates and bills 297,892 26,257 107, 782 27,855 26,694 8,002 | 4,61434,124 7,549 10,696 i 16,479 10,498 17,342 Total U. S. Government I securities 590,909 44,260 194,563 50,202 55,342 : 15,593 I 11,42777,887 22,643 25,391 28, 736 28,170 j 36, 695 Other securities 5,301 1,000 3,250 1,000 51 Total bills and securities. 995,876 76,993 ! 325,859 83,102 91, 590 | 42, 29343, 597110,452 42,480 35, 566 43,942 40,806 59, 196 Due from foreign banks. 706 52 232 69 71 | 30 25 95 25 16 21 21 49 Federal reserve notes of other Federal reserve banks 19,982 I 228 5,370 221 878 i 1,069 991 3,040 1,430 1,485 1,727 476 3,067 Uncollected items 530,449 I 63,563 156,661 45, 764 50,130 i 38, 63514,585 59,106 19,552 10,934 ; 28,676 17, 538 25,305 Bank premises 59, 552 3,580 15,664 2,614 7,059 ! 3,204 2,658 8,295 3,811 2,018 3,972 1,876 4,801 All other resources 11,758 74; 4,508 167 1,065 634 3,303 447 159 445 231 423 302 Total resources. 4,849,615 '392,591 11,476, 033353,003 |482, 657 j 189, 626 219,136869, 711 193,150 125,712 205,399 124,977 i 417,618 LIABILITIES Federal reserve notes in actual circulation 1,423,772 148,144 j 172,557 129,910 |194,544 ' 66,211 123,595 199,958 72,953 54,076 69,494 31,847 j 160,48'S Deposits: Member bank—reserve account.. 2, 389, 070 145,028 | 985,376 j 135, 903 188,941 ' 62,44361,055 341, 634 79,144 49,095 92, 722 59,500 ; 188, 229 Government 26, 523 1,911 3,314 1,391 1,516 2,968 2,157 4,294 2,044 1,079 2,230 1,172 I 2,447 Foreign bank.. 5,879 451 1,786 592 610 256 220 817 220 140 183 183 . 421 Other deposits.. 33, 753 70 i 16, 702 68 2, 395 127 4,249 412 232 61 46 '. 9,324 Total deposits. 2,455,225 147,460 ,1,007,178 137, 954193,462 ; 65,73463, 559350,994 81, 820 50, 546 95,196 60, 901 200,42 L Deferred availability items 509, 453 63,365 ! 146,169 40,918 48, 532 38, 556 13, 691 56, 352 20,911 9, 989 27,003 18,300 25, 667 Capital paid in 169, 723 11,830 ; 65,394 16, 781 15,896 i5,856 5,361 20, 208 5,276 3, 070 4,356 4,350 11,34" Surplus 276,936 I 21,751 ' 80,001 26, 965 29,141 !12,496 10,857 40, 094 10,877 7,143 9,162 8,935 19, 5 U ALI other liabilities 14,506 I 41 | 4,734 475 1,082 | 773 2,075 2,105 1,313 888 188 644 188 Total liabilities 14,849,615 '392,591 '1,476,033 353,003 482,657 189,626 219,138 669,711 193,150 |125,712 205,399 124,977 | 417, r Reserve ratio (per cent). 81.8 82.2 j 81.0 81.4 84.5 ' 75.9 79.8 87.1 78.6 70.7 75.9 65.1 i 88.4 FEDERAL RESERVE NOTE STATEMENT Federal reserve notes: Issued to Federal reserve banks by Federal reserve agents. 1,746,500 175, 570 244,403 151, 727219,785 ! 85,901 147,818 229,245 J 85,230 60,050 79,079 39, 938 227, 754 Held by Federal reserve banks* 322, 728 27,426 71,846 21,817 25,241 i 19,690 ! 24,223 29,287 I 12,277 5,974 9,585 8,091 67, 27.1 In actual circulation 1,423,772 148,144 ! 172, 557129,910 194,544 ! 66,211123,595 199,958 ; 72,953 54,076 69,494 31,847 160, 483 Collateral held by agents as security for notes issued to banks: Gold 1, 596, 214154, 917 258, 594140,000 190,550 j 65,000116,500 219,000 : 67,245 50, 845 75,000 28,800 I 229, 763 Eligible paper. 373, 354 31,655 106, 662 28,507 36,086 26,155 32,069 32,404 19,701 10, 019 15,142 12,570 22, 384 1 Excludes "Federal reserve notes of other Federal reserve banks," which are consequently included in "actual circulation ". 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468 FEDERAL RESERVE BULLETIN JULY, 1930 BANK DEBITS KINDS OF MONEY IN CIRCULATION [Debits to individual accounts. In millions of dollars] [End of month figures. In thousands of dollars] Number May, April, May, of centers 1930 1930 1929 Mar. 31 Apr. 30 ' May 31 June 30 » New York City 1 37, 423 38, 631 50, 043 Gold coin _. 362, 272 360,016 358, 575 357,226 Outside New York City 140 24,416 24, 347 26, 520 S G t o a l n d d c a e rd rt i s fi i c lv a e te r s dollars 87 3 3 9 , ,1 3 7 6 2 6 88 38 5 , ,8 7 2 9 0 8 9 3 5 8 4 , ,4 6 6 1 5 0 99 3 4 8 , , 8 62 3 9 1 Federal reserve district: Silver certificates—. _. 385, 583 382,423 391,773 386,915 Boston 2,602 2,962 Treasury notes of 1870 1,265 1,263 1,261 1,260 New York 38,539 39, 597 51,109 Subsidiary silver 280, 364 281,181 281,167 281,120 Philadelphia 2,272 2,273 2,708 Minor coin 116, 544 117,108 117,193 117,449 Cleveland 2,739 2,733 2,862 United States notes 268, 526 277,111 290, 260 288,389 Richmond 771 756 753 Federal reserve notes 1, 571, 519 1,483,711 1, 466, 561 1,402,028 Atlanta _.. 1,026 1,053 1,172 Federal reserve bank notes. 3,275 3,248 3,221 3,206 Chicago 6,513 6,489 7,063 National-bank notes 647, 301 645, 389 648, 382 650, 779 St. Louis _- 1,231 1,159 1, 275 Minneapolis _ _ 716 730 765 Total 4, 549,187 4,476, 068 4, 551,468 4,521,832 Kansas City 1,319 1,315 1, 388 Dallas 643 681 731 San Francisco 3,468 3,493 3,775 Preliminary. Total- 61,839 ; 62,978 76, 563 FEDERAL RESERVE BANKS—MATURITY DIS- MEMBERSHIP IN PAR-COLLECTION SYSTEM * TRIBUTION OF BILLS AND SHORT-TERM SECURITIES [Number of banks at end of May] [In thousands of dollars] Member banks Nonmember banks Fede d r i a s l t r r i e c s t erve On par list Not on par list Total W d i a 1 t y h 5 s in d 16 a 3 y 0 t s o d 31 a 6 y 0 t s o 6 d 1 9 a 0 y to s | i 9 in 1 t o o d n a 6 t y h s s m O o v n er th 6 s 1930 1929 1930 1929 1930 1929 Bills discounted: 8,359 8,731 11,635 12, 346 3,640 3, 829 J J u u n n e e 4 11 2 2 1 3 0 9 , , 4 7 8 2 4 8 1 1 1 4 1 3 6 , , 4 4 1 9 0 1 2 23 3 , , 4 7 9 2 2 3 3 2 0 9 , , 5 2 6 2 3 8 1 1 8 9, , 9 1 6 2 2 2 ! 2 2 1 2 , ,3 6 4 4 6 2 5 6 7 5 4 9 B N o e s w to Y n. o _ rk 9 4 2 0 5 2 4 93 0 9 7 4 2 0 7 2 0 4 2 0 5 4 3 Bills J J u u b n n o e e u 2 1 g 5 8 ht in 2 20 3 6 1 , , 5 7 0 9 5 4 1 13 1 5 8 , , 0 4 1 0 2 8 1 1 9 9 , , 0 4 0 7 4 6 3 2 0 7 , , 1 6 1 8 0 0 2 18 2 , , 0 7 5 8 0 0! 2 24 2 , , 9 2 8 4 1 2 3 2 4 1 0 9 Philadelphia 757 777 468 485 open market: | C A S R C t l h i t e c l i a v c h L n a e m o g t l u a a o o n i n s d d - - _ _ 1,1 7 4 4 5 4 9 9 1 5 5 4 4 4 3 1,2 8 4 5 5 3 1 4 3 8 2 0 1 8 4 3 1 , , 5 9 5 2 3 8 7 2 6 5 4 2 8 1 4 3 1 1 , , , 0 7 5 6 2 0 0 2 0 9 3 0 5 3 4 8 5 4 2 9 0 8 3 9 9 4 0 1 9 4 5 2 8 5 2 5 1 4 1 2 5 0 Cert J J J J i u f u u u i n n n n ca e e e e t e 4 2 1 1 s 5 1 8 and 1 1 1 1 3 8 4 0 2 9 8 2 , , , , 1 3 7 2 7 1 7 4 2 3 6 0 : ! |1 4 7 1 7 9 6 9 3 , , , , 6 1 1 5 0 8 0 5 7 7 5 4 3 3 3 2 0 7 1 4 , , , , 0 0 0 3 2 2 9 3 1 4 2 4 2 2 23 3 2 , , , 0 4 1 7 3 4 7 4 7 i : , , 1 1 3 2 5 9 6 1 9 ! 1 l 1 1 , , , , 2 3 3 1 4 3 4 3 r 6 9 8 Minneapolis 666 706 544 620 1,059 1,133 bills: K D Sa a a n l n l s a F a s r s a n C c i i t s y co 8 5 7 9 9 2 2 6 1 9 7 6 1 6 1 5 6 6 2,0 5 6 3 9 2 1 2 9 2,1 6 6 8 1 6 4 4 1 2 1 1 6 8 3 0 5 2 1 1 6 9 5 1 8 J J J u u u n n n e e e 4 1 1 _ 1 8 2 2 2 6 6 8 7 1 9 , , , 6 0 0 0 1 9 0 0 1 3 2 2 2 6 , , , 1 0 5 3 9 0 9 1 0 44, 4 4 8 0 8 4 44 4 , , 5 5 0 0 0 0 6 6 0 0 , , 6 6 8 8 9 9 j ' 8 8 48 7 7 , , , 1 8 6 5 0 5 ! 6 5 4 4 3 2 9 2 , , , 4 5 5 2 7 8 6 3 5 June 25 301, 623 42, 48855,221 52, 585 41, 632 i Incorporated banks other than mutual savings banks. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

JrLT, 1930 FEDERAL RESERVE BULLETIN 469 CHANGES IN MEMBERSHIP STATE BANK MEMBERSHIP Date Federal reserve district Capital The following list shows the changes affecting State bank membership during the month ended June 21, 1930, on which date 1,079 State institutions were No. 8—ST. LOUIS members of the system: 1930 May 23 I West End Bank, University City, Mo $100,000 i Admitted to membership. 26 i Tower Grove Bank, St. Louis, Mo., member j 500,000 Date Federal reserve district Capital | i Su C cc o e ., e m de e d m b b y e r Tower Grove Bank & Trust 500, 000 i No. 9—MINNEAPOLIS No. 2—NEW YOKE 1930 May 26 Swift County Bank (Inc.), Benson, Minn 100,000 May 22 Bank of the Manhattan Co., New York, N. Y., | Reopened. voluntary withdrawal. (Business absorbed by ! 31 : Ravalli County Bank, Hamilton, Mont., mem- B ank of Manhattan Trust Co.,member, Dec. | ber 50,000 3, 1929.) ! Citizens State Bank, Hamilton, Mont., non- 31 Interstate Trust Co., New York, N. Y., member.: $7,188, 700 | member, have absorbed First National Bank, Equitable Trust Co., New York, N. Y., member. 50, 000,000 ! Hamilton, Mont 50,000 Consolidated with and under title of the Chase National Bank of the City of New No. 10—KANSAS CITY York. 24 The Central Bank of the City of New York, N. Y.i 2, 500, 000 June 2 Citizens Bank, Aztec, N. Mex., member. 30, 000 Admitted to membership, succeeding The : Absorbed the Aztec State Bank, Aztec, N. Central National Bank of the City of New ; Mex., nonmember _ _ 25,000 York. ! Globe Bank & Trust Co., Brooklyn, N. Y., ' No. 11—DALLAS member \ 1,525,000 Absorbed the Rugby National Bank of j June 4 Cochise County State Bank, Tombstone, Ariz...! 30,000 Brooklyn ____' 300,000 Voluntary withdrawal. I 31 Citizens Trust Co., Utica, N. Y.f member \ 1,625,000 Absorbed the Utica National Bank & Trust ; No. 12—SAN FRANCISCO Co ; 750,000 23 Power City Bank, Niagara Falls, N. Y., mem- ' June 16 Commercial Security Bank, Ogden, Utah.. 200,000 , ber, title changed to Power City Trust Co. • Admitted to membership. June 10 Federal Trust Co., Newark, N. J., absorbed the Hayes Circle Nations-"Bank & Trust Co. • 13 Central Bank of the CitY of New York, N. Y.._. | 2,500,000 Merged with and under title of the Bank of : NATIONAL BANK MEMBERSHIP the Manhattan Trust Co., New York, j N. Y., member. j The following list shows reported changes (except suspensions and insolvencies) affecting national bank No. 4—CLEVELAND j membership, concerning which information became June 16 Peninsula Banking Co., Peninsula, Ohio 50,000 available between May 20 and June 23: Voluntary withdrawal. No. 5—RICHMOND Date | Federal reserve district Capital May 24 Farmers Banking & Trust Co., Tarboro, N. C___; 100,000 Absorbed by North Carolina Bank & Trust Co., Greensboro, N. C, nonmember. No. 1—BOSTON 1930 No. 6—ATLANTA May 31 Union National Bank, Lowell, Mass $350,000 Old Lowell National Bank 200,000 May 21 Farmers & Merchants Bank, Hartselle, Ala., Consolidated under charter of Union National member 50,000 Bank and title of Union Old Lowell Na- Absorbed the First National Bank of Hart- tional Bank 1, 000, 000 selle 100,000 22 Pittard Banking Co., "Winterville, Ga., volun- No. 2—NEW YORK tary withdrawal. June 7 Liberty Bank & Trust Co., Savannah, Ga., May 23 Central National Bank, New York, N. Y 2, 500, 000 member 600, 000 Succeeded by Central Bank, member. Converted into Liberty National Bank & 24 First National Bank, Woodbridge, N. J 100,000 Trust Co 600,000 Woodbridge National Bank 50,000 10 Peoples Bank of Evergreen, Ala 100, 000 Consolidated under charter of First National Absorbed the First National Bank of Ever- Bank and title of First National Bank & green, Ala 50, 000 Trust Co 150,000 May 31 Columbus Bank & Trust Co., Columbus, Ga., Rugby National Bank, Brooklyn, N. Y 300, 000 member 850, 000 Absorbed by Globe Bank & Trust Co., mem- Absorbed Third National Bank, Columbus, ber. Ga 200, 000 Chase National Bank, New York, N. Y 105, 000,000 June 11 Bank of Graymont, Graymont, Ga 25, 000 Equitable Trust Co., member 50, 000, 000 Merged with Peoples Bank, Summit, Ga., Interstate Trust Co., member 7,188, 700 nonmember, under title of Bank of Twin Consolidated under charter and title of Chase City, Ga. National Bank 148, 000, 000 Utica National Bank & Trust Co., Utica, N. Y_. 750,000 No. 7—CHICAGO Absorbed by Citizens Trust Co., member. June 10 Hayes Circle National Bank & Trust Co., New- May 27 Iowa State Savings Bank, Cedar Rapids, Iowa.. 200, 000 ark, N. J 500, 000 Voluntary withdrawal. Succeeded by Hayes Circle Trust Co., non- June 4 Monroe County Bank, Dundee, Mich 25,000 member, which was absorbed by Federal Admitted to membership. Trust Co., member. May 31 Redford State Savings Bank, Detroit, Mich 100, 000 Genesee Valley National Bank, Geneseo, N. Y._. 150, 000 Voluntary withdrawal. Livingston County Trust Co 100, 000 June 2 Iowa Loan & Trust Co., Fairfield, Iowa 50, 000 Consolidated under charter of Genesee Valley Voluntary withdrawal. National Bank and title of Genesee Valley 19 First State Bank, Royal Oak, Mich 250, 000 National Bank & Trust Co 200, 000 Voluntary withdrawal. Irvington National Bank, Irvington, N. Y., title 16 Iowa County Bank, Mineral Point, Wis 100, 000 changed to Irvington National Bank & Trust Voluntary withdrawal. Co. 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470 FEDERAL RESERVE BULLETIN JULY, 1930 Date Federal reserve district Capital Date Federal reserve district Capital No. 2—NEW YORK—Continued No. 8—ST. LOUIS—Continued 1930 1930 June 17 Washington Square National Bank, New York, May 17 Citizens National Bank, Alton, 111 __ .__ $200,000 N. Y., title changed to Washington National Succeeded by First National Bank & Trust Bank. Co. First National Bank, Minoa, N. Y $50, 000 First National Bank, Hamilton, Mo 100,000 Primary organization. I Succeeded by First Bank & Trust Co., non- Fulton County National Bank, Gloversville, member. N. Y., title changed to Fulton County Na- ! First National Bank, Batesville, Ark 100,000 tional Bank & Trust Co. Absorbed by North Arkansas Bank, nonmember. No. 4—CLEVELAND First National Bank, Jasonville, Ind 50,000 Jiina 3 Butler County National Bank, Butler, Pa 400, 000 Citiz C e o n n s s T ol r i u d s a t t e C d o u ., n n d o e n r m ch e a m rt b e e r r and title of First 25,000 B U u n t i l o e n r N C a o t u io n n ty a l T B ru an st k Co., nonmember. 2 2 0 5 0 0 , , 0 0 0 0 0 0 National Bank _ 50,000 Consolidated under charter of Butler County National Bank and title of Butler County No. 9.—MINNEAPOLIS National Bank & Trust Co 600, 000 Madison National Bank & Trust Co., Richmond, Apr. 30 First National Bank of Britton, S. Dak 50, 000 Ky 125, 000 Succeeded by First National Bank in Britton. Southern National Bank 100, 000 May 12 First National Bank, McVille, N. Dak 25, 000 Consolidated under charter of Madison Na- Absorbed by Union Bank, nonmember. tional Bank & Trust Co., and title of Madi- 19 Farmers & Merchants National Bank, Ivanhoe, son-Southern National Bank & Trust Co. 225, 000 Minn 25,000 Succeeded byFarmers & Merchants National No. 5—RICHMOND Bank in Ivanhoe. 31 First National Bank, Hamilton, Mont 50, 000 Apr. 8 National Bank of Honea Path, S. C 100, 000 Absorbed by Ravalli County Bank, member, Absorbed by Bank of Ware Shoals, Ware and Citizens State Bank, nonmember. Shoals, S. C, nonmember. June 9 First National Bank, Cottonwood, Minn. _. 25,000 May 6 First National Bank, Springfield, S. C 50,000 Absorbed by Cottonwood State Bank, non- Absorbed by Peoples State Bank of South member. Carolina, Charleston, S. C, nonmember. 18 First National Bank, Bison, S. Dak _ 25,000 8 First National Bank, Greer, S. C 50,000 Succession of Bison State Bank, Bison, and Absorbed by Planters Savings Bank, non- First State Bank, Strool, S. Dak., nonmember. members. 24 First National Bank, Chatham, Va 25,000 Absorbed by Chatham Savings Bank, non- No. 10—KANSAS CITY member. 26 Edge A c b o s m or b b e e d N a b t y i o N na o l r t B h a C nk a , r o T li a n r a b o B r a o n , k N . & C Trust 100,000 Apr. 26 Nati A on b a so l r B be a d n k b y o f F C ir o s m t m N e a r t c io e n , a F l r e B d a e n ri k c . k, Okla 50,000 31 First N Co a . t , i o G n r a e l e B ns a b n o k r , o , H N y . a C tt , s v n i o ll n e m , M em d ber. 100,000 May 19 Nati A on b a so l r B be a d n k b y o f F N ir e s w t N M at e i x o i n c a o l , R B a a t n o k n . , N. Mex_ ! _ 50,000 Absorbed by Prince Georges Bank & Trust 20 Merchants National Bank, Lawrence, Kans., Co., nonmember. title changed to First National Bank. June 9 First National Bank, Monroe, N. C._ 100,000 31 Oklahoma State National Bank, Clinton, Okla., Absorbed by North Carolina Bank & Trust title changed to Oklahoma National Bank. Co., Greensboro, N. C, nonmember. June 6 First National Bank, Fairbury, Nebr 100, 000 No. 6—ATLANTA Harbine Bank, nonmember 100, 000 Consolidated under charter and title of First May 1 Snel S l u N c a ce ti e o d n e a d l b B y a S nk n e o ll f N W a i t n io te n r a l H B a a v n e k n , i n F W la inter 200,000 The S N t. a t P io a n u a l l N B a a ti n o k nal Bank, St. Paul, Nebr., 200,000 Haven. title changed to St. Paul National Bank. 26 Citiz C e o n n s v N er a s t i i o o n n a o l f B C a i n ti k z , e n M s a B ri a e n tt k a , , n G o a nmember. j 100,000 13 Citiz C e o n n s v N er a s t i i o o n n al o f B a C n i k ti , z T en o s b ia S s t , a N te e b B r ank, non- 25,000 31 Third National Bank, Columbus, Ga ' 500,000 member. Absorbed by Columbus Bank & Trust Co., ' member. Liberty National Bank & Trust Co., Savannah, No. 11—DALLAS June 7 Ga. 600,000 Conversion of Liberty Bank & Trust Co., Feb. 20 First National Bank of Honey Grove, Tex 125, 000 member. Succeeded by First National Bank in Honey First National Bank, Evergreen, Ala Grove. 10 Absorbed by Peoples Bank, member. j 50,000 May 15 Sanger National Bank, Sanger, Tex__ 30, 000 Absorbed by First National Bank. No. 7—CHICAGO i Tune 16 First National Bank, Hutto, Tex _ _. 25, 000 May 10 Old First National Bank, Farmer City, 111 i 65,000 Succeeds Hutto National Bank. Absorbed by John Weedman National Bank. 15 Macksburg National Bank, Macksburg, Iowa..-i 25,000 No. 12—SAN FRANCISCO Absorbed by Citizens National Bank, member, j and Madison County State Bank and Win- ! May 29 First National Bank, Alturas, Calif 85,000 terset Savings Bank, nonmembers. Absorbed by Bank of America of California, 21 First National Bank, Lowell, Ind. 50,000 Los Angeles, Calif., nonmember. Absorbed by Lowell National Bank. ; June 2 Washington National Bank of Commerce, 24 First National Bank of Georgetown, 111 • 60,000 Seattle, Wash... 100, 000 Succeeded by First National Bank in George- i Conversion of Marine State Bank, nontown. i member. Poweshiek County National Bank, Grinnell, j Central National Bank of Commerce, Seattle, June 13 Io S w u a c . cession to Citizens National Bank. j 50,000 W Co a n s v h ersion of Marine Central Bank, non- 200, 000 member. No. 8—ST. LOUIS j First National Bank, Corvallis, Oreg_ 100, 000 Alton National Bank, Alton, 111 Corvallis State Bank, nonmember 50, 000 May 17 Su C cc o e . eded by First National Bank & Trust I i 100,000 Co N n a s t o io li n d a at l e B d a u n n k der charter and title of First 150,000 i Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

471 JULY, 1930 FEDERAL RESERVE BULLETIN The Comptroller of the Currency presents the follow- Fiduciary Powers Granted to National Banks ing summary of increases and reductions in the number and capital of national banks during the period from During the month ended June 21, 1930, the Federal May 24, to June 20, 1930, inclusive: Reserve Board approved applications of the national banks listed below for permission to exercise one or more of the fiduciary powers named in section 11 (k) Num- of the Federal reserve act as amended, as follows: (1) b b a er n k o s f Am ca o p u it n a t l of Trustee; (2) executor; (3) administrator; (4) registrar of stocks and bonds; (5) guardian of estates; (6) assignee; (7) receiver; (8) committee of estates of New charters issued 9 $1,175,000 lunatics; (9) in any other fiduciary capacity in which Restored to solvency 0 0 State banks, trust companies, or other corporations Increase of capital approved 1 14 45, 590, 000 which come into competition with national banks are Aggregate of new charters, banks restored to permitted to act under the laws of the State in which solvency, and banks increasing capital ! 23 46, 765, 000 the national bank is located. Liquidations 28 6, 520,000 Reducing capital 2 55,000 Total liqudiations and reductions of capital. 30 6, 575,000 Location i I t D ric is t - Name of bank g P r o a w nt e e r d s No. Consolidation of national banks under act of Nov. 7, 1918 4 1, 975,000 Consolidation of national banks and State banks Winchester, Mass Winchester National Bank.. 1 to 9 under act of Feb. 25, 1927 4 148, 450,000 Worcester, Mass Mechanics National Bank.. i 5 to 9 Sayreville, N. J First National Bank. _. i to 8 Total consolidations.. 8 150, 425,000 Red Lion, Pa Farmers and Merchants 1 to 9 National Bank. Aggregate increased capital for period 46, 765,000 Logan, W. Va First National Bank.. 1 to 9 Reduction of capital owing to liquidations, etc. 6, 575,000 Beckley, W. Va National Exchange Bank... 1 to 9 Montgomery, W. Va. Montgomery National Bank 1 toS Net increase 40,190, 000 Savannah, Ga Liberty National Bank & 1 to 9 Trust Co. Menasha, Wis _.; First National Bank 1 and 4 - Includes 1 increase in capital of $450,000 incident to a consolidation Lumbermen's National 2, 3, 5, and 8 under act of Nov. 7, 1918; also 3 increases aggregating $43,150,000 under Menominee, Mich Bank. act of Feb. 25, 1927. First National Bank in 1 to 9 Miles City, Mont____| Miles City. Home National Bank 1 to 9 I Arkansas City, Kans. Southwest NationalBank... 1 to 9 ! Wichita, Kans First National Bank 1 to 9 1 Stillwater, Okla Citizens National Bank 'J 4 i Abilene, Tex ! 1 Supplementary. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

472 FEDERAL RESERVE BULLETIN JULY, 1930 CONDITION OF ALL BANKS IN THE UNITED STATES TABLE 1.—ALL BANKS IN THE UNITED STATES i—PRINCIPAL RESOURCES AND LIABILITIES, ON CALL DATES, BY FEDERAL RESERVE DISTRICTS fin millions of dollars. Figures for nonmember banks are for the dates indicated or nearest dates thereto for which figuresa re available] Total loans and invest- Loans (including over- Deposits, exclusive of Rediscounts and ments drafts) Investments interbank deposits bills payable Federal reserve district and call date All All Mem- Non- Mem- Non- All |! Mem-I Nonbanks banks ber ber m b e e m r - banks j I ber i ! m b e e m r * j| i All districts: 1929—Mar. 27.. 58,019 35,393 22, 626 40,557 24, 945 15,612 ! 17,462 10,448 7,013 54, 545 33,215 21,330 | 1,507 1,153 ! 354 June 29. _ 58,474 35, 711 22,763 41,512 25,658 15,853 | 16,962 10,052 6,910 53,852 32,284 ;21,567 | 1,598 1,198 ! 399 Oct. 4___ 58,835 35, 914 22, 922 42, 201 26,165 16,036 j 16,634 9,749 i688 55,180 33,004 22,176 ! 1,512 1,150 i 363 Dec. 31,. 58,417 35,934 !22,483 41,898 26,150 i 15,748 i 16,519 9,784 I6,735 55, 289 33,865 21,424 i 1,238 879 ! 359 1930—Mar. 27. 57, 386 35,056 I 22, 331 40, 686 25,119 I 15,568 ! 16,700 9,937 I 6,763 53,185 32,082 21,103 ! 633 347 I 287 Boston: 1929-Mar. 27.. 6,692 2,600 | 4,092 4,279 1,823 '•2,456 2,413 777 j 1,636 6,134 2,323 3,811 103 24 June 29.. 6,818 2,613 4,205 4,434 1,871 j2,563 2,384 742 1,642 6,209 2,297 ; 3,912 111 25 D O e c c t. . 4 3 _ 1 _ . _ . 6 6, , 7 8 8 6 2 5 2 2 , ,6 5 3 6 4 1 ! j 4 4 , , 2 2 2 3 1 1 4 4 , , 5 5 0 0 8 8 1 1 , , 9 9 1 2 0 0 : 2 2 , , 5 5 8 9 8 8 2 2, , 2 3 7 5 3 8 6 7 5 1 0 5 i I 1 1 , , 6 6 4 2 3 3 6 6 , , 2 3 9 0 8 8 2 2 , , 3 3 6 9 8 1 ' ' 3 3, , 9 9 0 4 7 0 1 7 0 8 3 8 4 0 9 ; ' 23 1930—Mar. 27.. 6,789 2,571 I 4,218 4,457 1,869 j 2,588 2,332 702 j 1,630 6,205 2,293 3,912 50; 31 : New York: I 1929—Mar. 27. _ 18, 349 11,317 | 7,031 13, 028 8,139 5,321 3,178 ' 2,143 17, 673 11,329 ; 6,344 386 343 ; 43 June 29._ 1, 8898 11,775 ;7,122 13,801 8,769 5,031 5,097 3,006 2,091 17, 028 10,351 6,677 488 453 i 35 Oct. 4__. 18,835 11,763 ! 7,072 13, 839 8,813 5,025 4,996 2,950 | 2,046 18,090 11,056 7,034 284 255 29 Dec. 31.. 19,494 12,316 I7,178 14, 252 9,097 5,155 5,243 3,220 i 2,023 18,490 11,810 6,679 279 258 ! 21 Phil 1 a 9 d 3 e 0 lp — h M ia a : r. 27.. 18,929 11,783 !7,147 13, 657 8,541 i 5,115 5,273 3,241 i 2,032 17, 367 10, 731 6,635 99 i 83 ; 16 1929—Mar. 27.. 4,422 2,714 j 1,708 2,818 1,813 i 1,005 1,604 900 ! 703 3,770 2,250 1,520 181 ; 126 I 55 June 29 __ 4,460 2,710 ; 1,750 2,850 1,832 J 1,027 1,601 878 i 723 3,760 2,251 1,509 164 | 105 58 Oct. 4___ 4,505 2, 755 1,750 2,929 1,890 ! 1,039 1,576 865 I 711 3,752 2,255 1,497 170 i 102 i 68 Dec. 31._ 4,395 2,687 ' 1,708 2,859 1,859 | 1,000 1,535 828 • 708 3,745 2,265 1,480 175 : 94 81 1930—Mar. 27.. 4,353 2,671 !1,682 2,806 1,834 ; 972 1,547 837 ' 711 3,705 2,227 1,478 110 ! 49 ! 61 Cleveland: 1929—Mar. 27.. 4,948 3,478 ! 1,471 3,359 2, 352 ! 1,007 1,589 1,125 ; 464 : 4,525 3,167 1,358 139 i June 29.. 4,927 3,488 I 1,439 3,380 2, 376 ! 1,004 1,547 1,112 ! 435 i 4,523 3,190 1,333 138 ! 40 Oct. 4___ 4,964 3,498 1,466 3,450 2,418 ! 1,031 1,515 j 1,080 • 435 !4,568 3,164 1,403 114 104 ; 10 Dec. 31.. 4,869 3,455 ! 1,414 3,413 2,410 J 1,004 1,456 , 1,046 i 410 i 4,452 3,154 1,298 155; 100 55 1930-Mar. 27.. 4,847 3,454 i 1,393 3,356 2,374 j 982 1,492 j 1,080 ! 411 ; 4,399 3,140 1,260 69 ! 36 j 34 Richmond: 1929—Mar. 27.. 2,537 1,351 i 1,186 1,883 1,024 i 860 653 ! 327 I 326 ; 2,302 1,196 1,106 55 ! 31 June 29. _ 2,501 1,329 ! 1,172 1,865 1, 010 j 855 636 j 319 I 317 i 2,255 1,166 1,089 113 !| 70 43 Oct. 4... 2,501 1,299 |1,202 1,868 990 i 878 633 309 324 |2,262 1,142 1,119 111 |! 65 I 46 Dec. 31.. 2,435 1,278 I 1,157 1,813 974 j 838 622 303 ' 319 i 2,271 1,152 1,119 76 i! 48 ' 28 1930—Mar. 27. . 2,385 1,223 I 1,162 1,765 929 I 837 620 295 I 325 ! 2,207 1,106 1,101 50 j 21 i 29 Atlanta: i 1929—Mar. 27.. 1,763 1,191 i 572 1,370 907 i 463 393 i' 284 , 109 ! 1,629 1,065 564 87 61 i 26 June 29.. 1,734 1, 177 : 558 1,345 447 389 j 279 ! 110 ! 1,581 1,041 , 540 104 72 i 32 Oct. 4-.. 1,719 1,149 I 570 1,.346 457 373 260 ! 113 i 1,571 1,004 , 567 123 91 j 33 Dec. 31.. 1,629 1,115 j 514 1,262 855 ! 408 366 I: 260 i 106 : 1,548 1, 020 527 66 42 ! 23 1930—Mar. 27- 1,604 1,107 I 496 1,239 845 ' 395 364 | 263 I 102 i 1,524 1,026 • 498 44 27 | 13 Chicago: i 1929—Mar. 27.. 7,963 I 5,072 '2,891 5,999 3,777 2,222 1,964 |j 1, 295 j 7,435 4,612 ' 2,823 272 |j 201 i 71 June 29— 7,958 5,052 2,906 6,046 3,792 2,254 1,912 i 1, 260 ! 652 7,543 4,721 j 2,822 221 143 79 Oct. 4-__ 8,065 5,117 2,949 6,195 3,901 2,294 1,871 W 1,216 i 655 7,590 4,757 :2,834 224 147 ! 77 Dec. 31.. 7,740 4,934 2,806 5,953 3,770 2,183 1,788 ij 1,164 I 623 7,381 4,617 I 2,764 205 148 58 1930—Mar. 27- 7,619 4,837 2,783 5,799 3,646 2,154 1,820 ; 1,191 ! 629 7,158 4,470 j2,688 44 | 44 St. Louis: 1929—Mar. 27- 2,162 1,377 784 1,561 945 616 601 433 168 ! 1,972 1,184 ! 788 92 58 34 June 29— 2,099 1,341 I 757 1,531 937 594 568 405 163 j 1,911 1,177 733 98 59 Oct. 4___ 2,160 1,375 ! 785 1,596 984 612 564 391 173 ; 1,980 1,199 I 781 122 82 Dec. 31 — 2,072 1,337 j 736 1,526 955 571 546 381 165 ! 1,962 1,213 i 750 r56 32 '24 1930—Mar. 27— 2,060 1,315 744 1,512 929 583 548 386 162 ! 1,913 1,179 ! 734 51 19 32 Minneapolis: 1929—Mar. 27- 1,563 625 953 564 389 610 374 236 I 1,554 894 660 22 15 June 29.. 1,539 923 616 945 559 387 594 364 230 1,547 904 642 22 12 9 Oct. 4-._ 1,580 957 623 987 597 390 593 360 233 ! 1,561 906 655 47 40 8 Dec. 31.. 1,507 911 597 936 563 373 572 348 224 ! 1,519 892 626 22 12 10 1930—Mar. 27- 1,492 596 917 548 368 575 348 227 |1,485 865 621 3 6 Eansas City: 1929—Mar. 27- 1,898 1,242 656 1,310 800 511 588 443 145 ! 1,960 1, 211 749 30 23 7 June 29— 1,881 1,241 640 1,310 810 499 571 430 141 i 1,929 1 1,207 722 52 39 13 Oct. 4.__ 1,901 1,247 655 1,332 823 509 569 424 145 i 1,958 - 1,202 756 48 45 3 Dec. 31- 1,842 1,212 630 1,293 804 489 549 408 141 ; 1,909 1,190 719 49 35 15 1930—Mar.27_. 1,766 1,165 601 1,234 769 | 465 532 396 135 i 1,841 1,156 23 13 10 Dallas: 1929—Mar. 27— 1,265 1,000 266 940 730 • 210 325 270 56 ! 1,249 964 17 13 June 29— 1,217 957 260 914 705 209 302 251 51 i 1,177 1 911 266 27 20 Oct. 4-_. 1,245 987 258 957 749 : 208 288 238 50 1,209 935 274 41 35 Dec. 31.. 1,179 936 243 907 714 193 273 222 50 1,186 913 272 21 17 4 1930—Mar. 27- 1,149 907 241 882 688 ! 194 267 219 47 1,129 ! 879 250 13 5 San Francisco: i 1929—Mar. 27- 4,457 3,113 1,344 3,056 2,071 ! 1,401 1,042 358 : 4,342 i 3,022 1,320 92 76 15 June 29— 4,443 3,105 1,338 3,082 2,099 i 1,361 1,007 355 I 4,391 ! 3,068 1,323 60 42 18 Oct. 4_._ 4,494 3,133 1,362 3,196 2,192 j 1,004 1,298 941 357 i 4,332 3,016 1,316 125 105 20 Dec. 31- 4,472 3,192 1,279 3,177 2,239 I 938 1,295 953 342 4,529 3,247 1,282 55 44 a 1930—Mar.27~ 4,394 •8,127 1,268 3,062 2,147 I 915 1,332 980 352 4,253 3,011 1, 242 26 14 12 1 Includes all national and State banks (including stock and mutual savings banks) and all private banks under State supervision. Back figures.—See Tables 40, 41, and 81-84, Annual Report of Federal Reserve Board for 1929. r Revised. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

JULY, 1930 FEDERAL RESERVE BULLETIN 473 TABLE 2.—ALL BANKS IN THE UNITED STATES i—PRINCIPAL RESOURCES AND LIABILITIES ON MARCH 27, 1930, AND DECEMBER 31, 1929, BY STATES [Amounts in thousands of dollars] Loans and investments Deposits, exclusive Rediscounts Number of of interbank bank and bills reporting Loans (including deposits payable banks State Total overdrafts) Investments March De b c e e r m- March De b c e e r m- March De b c e e r m- March De b c e e r m" March ; March secern- _| New England: Maine ! 431,144 432, 528 227, 3661 230, 617 397,323 396,4681 5,427 10,471 132' 133 New Hampshire 311,809 311,333 157,099, 157, 469 154,710! 153,864i 279,860 282,1041 3,896' 4,222 123! 123 Vermont 245,990 250,098 154, 370 158,449 91,620i 91,649! 227,898 235,599' 5, 691 i 7,002 1041 104 Massachusetts 4,233,563 4,224,673 2,968,511' 3,007,510 l,265,052j 1,217,163' 3,862,725 3,932,012 26,995! 43,837 450 450 Rhode Island 529,190: 533,091 305, 646, 310, 677 223,544! 222,414! 494,022 499,685 1,419| 2,193 33! 33 Connecticut 1,340,473. 1,336,338 802, 796! 806, 945 537,677! 529,393! 1, 221, 506! 1,232,420 9,463 16, 206 236^ 237 Middle Atlantic: New York _.. 16, 668, 212 17, 222,139 12,194,906112,754,661 4,473,306 4,467,478 15, 263, 492 16, 340,125 82,123 242,451 1,122i 1,127 New Jersey 2,376,656 2,388,312 1,599,246, 1,633,659 777,410 754,653| 2,199,089: 2,260,738 31, 528 48,160 5651 568 Pennsylvania 5,665,914: 5,703,176| 3,496,479i 3,574,655 2,169,435 2,128, 521; 4,841, 203 4, 883, 774 113, 920 207,153 1, 553| 1, 566 East North Central: Ohio 2,676,991 2, 691,493>, 2,036, 7442,057,408 640, 247J 634,085i 2,506,526' 2,532,157 41,134 93,819 1, 006 1,015 Indiana _. 842,983, 862,926: 631, 664 648,491 211,319: 214,435- 788,485i 809,987 22,295 27,190 963; Illinois 3,705,991 3,802,263: 2, 782, 3252,888,118 923, 666i 914,1451 3, 380,090! 3,569,283 32,425 77, 906 1, 7231 1,765 Michigan 1,998, 546 i 2,020,634: 1,474,606 1, 514,120 523,940i 506, 514i 1,897, 645 i 1,900,537 30, 541 87,450 740 743 Wisconsin _ 928,870 917,092 656, 346 654, 737 272, 524; 262, 355! 903, 510' 894, 209 8,832 18,350 953 West North Central: Minnesota. __ 891,122 901,370 531,518 545, 564 359,604 355,806! 858,1021 879,134 4,202 15,207 1,027 1,046 I M ow is a s ouri _ 1,2 7 0 8 1 1 , ,2 3 7 6 2 3 ! 1,1 7 9 8 9 1 , , 2 5 6 9 8 7; 8 66 6 4 5 , , 1 5 4 1 7 21 6 86 6 8 2 , , 1 4 0 4 7 1 3 1 3 1 6 6 , ,7 2 6 1 0 6 , ' 3 1 3 1 1 9 , , 1 1 6 5 1 6 i i 1,1 8 7 0 9 3 , , 1 3 8 0 3 7 ! : 1,2 8 0 2 0 1 , , 4 9 8 3 2 1 1 9 5 , , 3 40 6 6 8 1 1 9 2 , , 2 9 8 4 4 5 1 1 , , 2 2 3 3 6 8 1 1 , , 2 25 7 7 7 North Dakota-- _ 110,4951 111,647 78,445 79,091 32,050] 32, 556; 117,750! 119,331 1,160 1,165 403 412 South Dakota 136,303 137,494 95,428 96,370 40,875' 41,124! 144,498' 149,808 1,637 1, 568 383i 387 Nebraska _ __ 344, 501 359, 293 256,418 272,082 87,211! 350,044j 360,964 6,161 14,661 781! 804 Kansas 378,641' 404,409: 276, 659 292,628 101,982; Ill, 78l| 378,921! 405,375 7,467 9,413 1, 060] 1,069 South Atlantic: Delaware _ ._ 165,413 167,407 116,449 119,013 48,964: 48, 394| 134,0421 138,396! 2,472 2,715 46 47 Maryland.. 818, 775 837, 381 505, 234 518, 324 313, 541 • 319, 057' 766, 520, 792,0y4| 11,108 13, 708 229 230 District of Columbia.. 244,928 244,510 182, 704 184,672 62, 224, 59, 838j 242, 026! 239, 895 1,971 8,093 40 41 Virginia 538, 565' 551, 364 442, 384 455, 975 96,181' 95, 389! 454, 954: 460, 718 13, 989 27,850 464 474 West Virginia 338,311 345,126 •• 271, 677 280,143 66, 634: 64, 983! 319, 896j 315, 589 8,319 17, 217 296j 297 North Carolina 359,822 369, 548 301,393 312,154 58,429 57, 394 331, 725 356, 777 13, 541 12, 677 395! 416 South Carolina 163,410: 168, 618 123,436 125, 941 39, 974 42, 6771 162, 592! 178,103) 2,798 1,218 185; 217 Georgia 333, 574 334,448 274, 791 277,109 58, 783: 57, 249' 30(i, 310i 315,389: 8,646 9, 920 396! 405 Florida.. _. 275,280 258,321 161,159 149,838 114,121 108, 483| 289, 725' 262, 639j 2, 583 6,230 230 235 East South Central: Kentucky _. 542, 294 554, 237 425,506 438, 200 116, 788' 116, 037| 439,656I 447,941 i 13, 709 21, 595 569 572 Tennessee _._ 431,471 429,824, 360,821 360, 570 70, 650, 69, 254, 416,159j 403, 645: 10, 772 19,863 484J 484 Alabama _. 263,622 282,442! 213,047 229,081 50, 575: 53, 361 241,136! 266, 074 11, 663 14,155 325 350 Mississippi— 217,259; 212,352, 165,050 157,979 52, 209 54, 373 215,91l| 228, 027 9,718 308 West South Central: Arkansas 192,605, 197,507 15:. 155,1711 39, 616' 42, 336 188, 861! 208,490: 6,513 3,351' 402 41." Louisiana 397,666 429, 215 323,448 347, 536! 74, 218' 81, 679j 377, 624j 409, 772 9,934 17,950! 223 225 Oklahoma _ 376,2041 400, 524 238.47^ 253,432; 137,727, 147, 092| 402,148! 417,127 3,333 16,198, 608 617 Texas 1,010,636 1,036,407 777, 888 798, 590l 232, 748 988, 641 i 1,030,21510,033 18, 512! 1,283 Mountain: Montana 137, 529 144,130 82, 573 87, 7Oo! 54, 956' 142,939' 150,463; 1,114 508; 186 195 Idaho __ 76, 219 80, 723: 47,911 49,973! 28, 308 83, 279! 91,958: 545 193' 137 137 Wyoming 55,800 57, 640: 39,130 40,000, 16, 670 57, 087'. 62, 6721 1,226 602: 85 86 Colorado 257,018 262, 321 166, 071 173,471! 90, 947' 281, 666 283,978j 2,285 3,720 j 271 274 New Mexico 41,298 40, 559 26, 572 25, 743, 14,726: 43,420 46, 044 i 541 201' 56 56 Arizona. __ 78,545 81,188 50,956 49,911! 27, 589: 86,411 91,918 436 592 j 46 46 Utah 161,130 161, 748 123,847 126, 042i 37, 283 134,457 139, 755 2,309 2,440; 104 104 Nevada 36,697 37,988 27,925 29,196; 8,772 37,901 41, 054 35 35 Pacific: i Washington. 463,658 459,827 303,645! 165,132 156,182 456, 634 468,879 4,229 3,838 333 340 Oregon 253, 077 260,497 142,417 148, 0411 110,660; 112,456 253, 574 268,181 5,595 4,704 230 234 California 3,355,383 3,419,964 2,387, 752 2,487,056! 967,631 932," 3,234,6181 3,461,269 12,959 43, 285 436 437 Total. 57,386,218 58,416,990 40, 686,364 41,898,395 16, 699,85416, 518, 595 53,185,091 55, 289,185 633,431 1,237, 596; 24, 22324, 630 1 Includes all national and State banks and all private banks under State supervision. Figures for State institutions are taken from Table 4 and represent in some cases the condition of banks as of dates other than Mar. 27, 1930, and Dec. 31,1929. Back figures.—See tables 85-87, Annual Report of Federal Reserve Board, 1929. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

474 FEDERAL RESERVE BULLETIN JULY, J930 TABLE 3-NATIONAL BANKS i-PRINCIPAL RESOURCES AND LIABILITIES ON MARCH 27, 1930, AND DECEMBER 31, 1929, BY STATES [Amounts in thousands of dollars] Loans and investments Deposits, exclusive Rediscounts of interbank de- and bills pay- Number of re- Total Loa o n v s e ( r i d n r c a l f u ts d ) ing Investments posits able porting banks March De b c e e r m- March De b c e e r m- March Decem- • March De b c e e r m- March ce D m e b - er March I I ce D m e- ber New M E a n in g e l and: _. 138,348 139,196 74, 663! 75, 354 63, 685 63, 842 125, 526 1,033 2,181 ( I 53 New Hampshire 71, " 71, 330 I 44, 481 i 44,851 27, 325 26,479 i 58,354 60, 598 3,344 3,670 56i 56 Vermont... _ 19, 090 70, 462 40, 703! 42, 314 28, 387 28,148! 58, 366 59, 988 2,063 2,733 46! 46 Massachusetts 1, 311, 3011,024,3891 1,020,819 335,680 290,482, 1,207,975 1,236, 316 14, 615 23, 891 153: 152 Khode Island 52, 692 54, 312 34,269| 35, 368 18, 423 18, 944 41, 295 42, 538 783 1,322 10 30 Connecticut. 259,866 258, 212 194,108 194,310 65, 758 63,9021 231,152 240,199 3,385 5,781 62; C2 Middle Atlantic: i New York 4,496,966 4, 662,103i 3,076,012' 3,221,953 1,420,954 1,440,150 4,025,177 4, 357, 111 34,635 124,103 556: 559 New Jersey. 887, 795 897, 737' 578,906! 602,064 308,889 295,673! 828,281 854, 960 13, 780 21,113 299: 300 Pennsylvania 2, 580, 368, 2,584,111 1,625,101, 1,657,189 955,267 926,922; 2,193,650 2, 225, 782 43,160: 84,039 847. Sfl East North Central: Ohio 689,901 725,194 47! 513, 715 211, 3031 211, 479 639, 798 670, 434 10,404; 28,291 313 317 Indiana 353, 550 373,493| 245, 5381 262, 365 108, 012, 111,128, 323,664 345,166 7,558! 12,453 213 219 Illinois 1,256,011 1,267, 508 j 935,133, 954, 674 320,878; 312,834, 1,138,603 1, 205,450 9, 873 19, 625 471 4S2 Michigan 514,120 521,906;, 364, 386! 384, 256 149,734! 137, 650, 504,194 510, 058 3,247 22, 952 128 <30 Wisconsin 431,181 419,141! 306, 007 303, 347 125,174 j 115, 794 398, 810 394, 699 2, 094 j 5,651 155 157 West North Central: Minnesota 519, 739 530, 858 j 332, 545| 343,483 187,194 187,375 480, 717 499,134 6301 8,727 266 266 Iowa 274, 562 277, 283 ! 179, 921 183,156 94, 641 94,127 262, 259 266, 938 3, 290! 6,264 246 251 Missouri 430, 319 431, 968'I 311,125 312, 035 119,194 119,933, 374, 996 387, 835 4,135] 5, 839 128 330 North Dakota 70, 277 71,429:; 44, 071 44, 71' 26, 206 26, 712! 72, 471 74, 052 621; 626 113 South Dakota 63,122 63,434 : 36, 981 37,150 26,141 26, 284 64, 240 66, 409 516' 504 93 Nebraska 193, 975 188, 554 1 136, 719 135, 405 57,256 53,149i 179,485 173,433 3,116 8,634 157 Kansas 184,126 198, 338 ! 123, 659 132,803 60, 467: 65, 535! 178,801 200, 825 3, 8711 3,647 246 246 South Atlantic: Delaware _ 21,011 22, 715 ! 12,391! 13, 699 8, 620! 9, 016^ 16, 525 18,450 860: 973 16 17 Maryland 210, 642 229, 248: j 138,154; 151, 244 72,488, 78,004! 184, 502 210,076 2, 3221 4,922 79 SO District of Columbia._. 127,801 126, 506 1 91, 540! 91, 790 36, 261 34,716, 125, 871 121, 285 930 5,559 12 Virginia 309, 637 319,254:! 247,825, 257, 054 61,812 62, 200, 265, 794 268, 365 6,318; 15, 373 15S West Virginia 164, 047 167, 001 ii 125, 925! 129, 435 38,1221 37, 5661 152,180 147, 695 3, 657 8,705 115 315 North Carolina 110, 776 113,166:; 88, 552 j 91, 253 22, 224! 21,913! 98, 843 103,293 4, 553: 4,160 66 06 South Carolina. 70, 425 89,434:1 55, 279; 66,150| 15,146; 23,284 65, 597 86, 720 738 529 40 47 F G l e o o r r i g d i a a 2 1 1 7 3 9 , , 7 1 5 8 9 6 2 1 0 62 8 , , 2 6 2 0 1 2 : , 1 1 6 0 9 0 , , 5 3 6 9 1 4 ' : 16 8 7 9 , , 4 6 8 9 0 0 4 7 4 8 , , 6 3 2 6 5 5 , 1 ' 4 7 0 2, , 7 9 4 1 1 2 ; j 1 18 9 4 8 , , 1 2 2 4 8 2 1 16 9 4 3 , , 6 " 6 " 9 1 1 , , 5 0 9 8 8 1 J 1 2 2 , , 6 0 3 4 8 5| 5 7 8 5 hi East South Central: Kentucky 229, 738 241, 681 : 172,144 184, 83SJ 57,594: 56,843! 195, 768 204, 053 2,410! 10, 296; 135 138 Tennessee. 256,462 254, 815 213, 886; 213, 635 42, 576, 41,180[ 236,885 224,371 803: 9,8941 99 99 Alabama _ 180,113 188, 376 ! 139, 0751 145, 795 41, 038) 42,581 160, 872 168,145 6,178, 9, 226j 102 107 Mississippi 75, (135 74,287;; 55, 3491 52, 865 20, 2861 21, 422j 71,629 73, 681 4, 248^ 3, 210. 35 35 West South Central: Arkansas _ 68, 305 75,808 46,90S! 52, 058 21,397! 23, 750! 64, 508 73, 1, 577: 907: 69 Louisiana 97, 304 104, 215 82, 3141 89, 279. 14, 990 14, 936! 86, 716 94, 379 2, 760 3,710 32 34 Oklahoma 306, 012 330, 380 190,610 205, 996, 115,402: 124, 384; 325, 319 334, 668 1, 907j 15, 692 283 292 Texas . ! 787,423 806, 864 597, 640, 613,122! 189, 7831 193, 742 760, 413 778, 525 6, 256 15,6151 593 609 Mountain: I Montana | 74, 917 77,962 43,4361 46, 646 j 31,481 31,316! 77, 585 83,962 393! 190 64 ti7 Idaho I 34,788 37,775; 23, 4481 24,827 11, 340; 12,948; 36, 366 41, 569 223! 35 42 43 Wyoming | 32, 212 33,181 20, 838! 21, 3*55 11,374: 11,81(51 31,877 34, 421 475; 327; 25 25 Colorado I 200,721 203, 907 124,771, 130,553 75,950 73,354 218, 914 219,814 1,852| 3,291' 120 120 New Mexico ! 30, 2r,0 29, 388: 19, 051! 18, 229' 11, 209 11,159! 31,812i 33, 526 245! 68' 27 27 Arizona.. ' 27,176 27, 673 16,123; 15, 692 11, 053: 11,981 29, 691 30, 935 54: 26! 14 14 Utah.... j 49, 019 49, 208 34, 252, 35, 076 14, 767 14,130; 42, 698 45,650 230 589 20 20 Nevada I 16, 758 17,547^ 10,991 11,822 5,767 5,725| 15, 932 17, 090 10 :o Pacific: Washington. 266,183 2m, 174' 164, 084 170,180 102,099, 95, 994 259, 252 237,183 1, 555 2, 360 103 105 Oregon 185,169 190,942 97, 716 102, 087, 87,453 88,855 184,50«, 193, 695 3, 680 3, 303 94 94 California 1, 956, 5502, 018,130 1,365,777 1.443,226! 590, 773! 574,904 1,862,980 2, 057, 633 2,573' 29,898: 205 205 Total 21,179,912 21, 584, 328. 14, 635, 349 15,136,414, 6, 544, 563 6, 447, 914J19, 373, 219 20, 290, 373 225, 629 545, 587! 7, 311 ,403 T 1 Member banks only; i. e., exclusive of national banks in Alaska and Hawaii. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

JULY, 1930 FEDERAL RESERVE BULLETIN 475 TA.3LS 4—STATE BANKS i—PRINCIPAL RESOURCES AND LIABILITIES ON MARCH 27,1930, AND DECEMBER 31, 1929, BY STATES [Amounts in thousands of dollars] Loans'and investments Deposits, exclusive Rediscounts Number of reof interbank de- and bills pay- Loans (including posits able porting banks State Total overdrafts) Investments Decem- Decem- March March ber March ber i March ber March ber New England: Maine 292,796 293, 332 152, 703 155, 263 140,093 138, 069| 271, 797 269,499 4,394 8, 290! 80 80 New Hampshire. 240,003 240,003 112,618 112, 618 127,385 127, 385! 221, 506 221, 506 552 552 67 67 Vermont. 176,900 179, 636 113,667 116,135 63,233 63,501 169, 532 175, 611' 3,6281 4, 269 58 58 Massachusetts I 2,873,494 2,913, 372j 1,944,122 1,9S6, 691 929, 372 926,6811 2,654,750 2,695,696: 12,380 19,946 297 298 R-*h od-e -I*sl and- 476,498 478, 779 271,377 275, 309 205,121 203,470) 452, 727 457,147i 636 871 23 23 Connecticut 1,080,607 1, 078,126 612, 635 471,919 465,4911 990,354 992, 221 6,078' 10,425 174 175 Middle Atlantic: New York... 12,171, 246 12, 560, 0369,118,894 9,532,708 3,052,352 3,027,328ill,238,315 11, 983,014 47,488! 118,348 566 568 New Jersey ..- 1, 1,490,575 1,020, 3401, 031, 595 468, 521 458,980i 1,370,808 l,405,778! 17,748[ 27,047! 266 268 Pennsylvania 3,085,546 3,119,065 1, 871, 3781,917,466| 1,214,168 1, 201, 599| 2,647,553 2, 657,992 70,760 123,124! 706 East North Central: 1 Ohio _ 1,987,090 1,966, 299; 1, 558,1461, 543, 693 428,944 422,6061 1,866,728 1,861, 723i 30, 730 2 65, 5281 698 Indiana 489,433 489,433 386,126 386,126 103, 307 103, 307 464, 821 464,821! 14, 737 14, 7371 750 750 Illinois _ 2,449,980 2, 534, 755 1,847,192 1, 933, 444| 602, 788 601, 311 2,241,487 2,363,833 22,552: 58, 28l| 1, 252 1,283 Michigan 1,484,426 1,498, 728 1,110, 2201,129,864j 374, 206 368,864 1,393,451 1,390,479! 27, 294 64,498i 612 613 Wisconsin.- 497,689 497,951 350, 339 351, 390! 147, 350 146, 561 504, 700 499, 510: 6, 738 12, 699: 798, 803 West North Central: ! Minnesota !• 371,383 370, 512! 198,973 202, 081 172,410' 168,431: 377, 385 380,000; 3,572 6, 480 761, 780 Iowa 506,710 504, 3141 484,591 479, 285 22,119 25,029i 3 540, 924 3 554,993, 6, 078! 6, 681! 990i 1,006 Missouri 771,044 767, 300j 554. 022 556,072 217,0221 211, 228> 3 804, 311 3 812, 6471 11,271i 13,445i 1,1101 1,147 North Dakota _ j 40, 218 40, 218 34, 374 34, 374 5,844: 5, 844J 45, 2791 45,279, 539: 539 290 290 South Dakota i 73,181 74, 060. 58, 44' 59, 220 14, 734' 14, 840, 80, 258 83,399! 1,121 1, 064 290; 295 Nebraska \ 150,526 170, 739, 119,609 136, 677 30,827i 34, 062| 170, 559 187, 63li 3,045 6, 027 614 647 Kansas ! 194,515 206, 071i 153, 000 159, 825 41, 515J 46, 246 3 200,120J 3 204,550! 3,596 5, 766 814, 823 South Atlantic: Delaware 144,402j 144, 692' 104, 058 105, 314 40, 344; 39, 378! 117,517! 119, 946 1, 612, 1,742 30: 30 Maryland 608,1331 608,133 367.080 367, 080 241, 053 241,053i 582, 018j 582,018: 8, 786 8, 786 150 150 District of Columbia... 117,127 118, 004' 91,164 92, 882 25, 963: 25,122^ 116,1551 118, 610, 1, 041 2, 534 28; 29 Virginia j 228,928! 232, HOj 194.559 198,921 34, 369 33,189j 189,160: 192, 353i 7, 671. 12, 477 306 315 West Virginia _.! 174, 264J 178,125' 145, 752 150, 708 28, 512 27, 417. 167,716 167,894! 4, 662 8,512 181! 182 North Carolina i 249,046; 256, 382'I 212. 841 220,901 36, 205 35,481: 232,882i 253, 484 8,988 8,517 329, 350 South Carolina .._' 92,985| 79,184 68,157 59, 791 24,828 19, 393! 96,995' 91, 383J 2,060: 689 145! 170 Georgia j 119,815! 125, 846 105, 397 109, 509 14, 418' 16, 337 108,182i 121, 702: 7,048 7,282 321, 329 Florida ' 96,094 96,100 60, 598 60, 358 35,496 35, 742 105, 483' 97,970l 1, 502 4,185 172: 173 East South Central: , Kentucky ! 312,5561 312, 556 253,362 253, 362 59,194 59,194 243, 888 243, 888 11, 299; 11,299 434 434 Tennessee.. 175,009| 175, 0091 146, 935 146,935 28, 074 28,074' s179.274! 3179, 274 9, 969! 9,969 385 385 Alabama 83, 509 94,066: 73, 972 83, 286 9,537 10, 780; 3 80, 264 3 97, 929 5,485 4,929 223 243 Mississippi 141,624 138, 065| 109, 701 105,114 31, 923 32, 951! 144, 282 154, 346 5,470, 2,388 263 273 West South Central: Arkansas 124,300 121, 699j I 106.081 103, 113 18, 219 18, 586: 124, 353 134,551 4, 936 2,444 333 343 Louisiana 300, 362 325,000; 241,134 258, 257 59, 228 66, 743: 290, 908 315, 393 7,174 14, 240 191 191 Oklahoma 70,192 70,144 j 47, ~"~ 47.436 22, 325 22, 708 76, 829! 82,459 1, 426, 506 325 325 Texas 223,213 229, 543 : 180, 248 185,468 42, 965 44, 075 228, 228 251,690 3, 777; 2,897 690 699 Mountain: |: Montana 62,612 66, 168! 39,137 41, 054 23,475 25,1141 65, 354 72, 501 721 318 122 128 Idaho 41,431 42, 948 j 24, 463 25,146 16,968 17, 802 3 46,913 3 50, 389 322 158 95 94 Wyoming 23,588 24,459j 18, 292 18, 635 5,296 5, 824 25, 210 28, 251 751 275 60 6L Colorado 56, 297 58,414', 41,300 42, 918 14, 997 15, 496: 62, 752 64,164 433 429 151 154 New Mexico 11, 038 ll,171i: 7,521 7,514 3,517 3,657 11, 6081 12, 518 296: 133 29 29 Arizona 51, 369 53, 515]! 34,833 34, 219 16, 536 19, 296 3 56, 720i 3 60,983 * 382, <566 32 32 Utah.. " 112,111 112,542; 89, 595 90, 966 22, 516 21. 576 91, 759 94,105 2, 079 1,851 84 84 Nevada 19,939 20, 44111 16,934 17, 374 3,005 3,067 21, 969 23,964 25 25 Pacific: li Washington 197,475 193,653!' 134. 442 133,465 63, 033 60,188! 197, 382 201, 696 2,674: 1,478 230 235 Oregon 67, 908 69,555jl 44, 701 45, 954 23, 207 23, 601 • 69, 0681 74,486 1,915 1,401 136 140 California 1, 398, 833 l,401,834r 1, 021, 9751, 043,830 376, 858 358,004 1,371,638; 1403,636 10, 386 13, 387 231 232 Total 36, 206, 306 36, 832, 662^26, 051,01 26, 761, 98110,155, 29110,070,68133,811,87234998, 812 407,802'692,009 16,912 17. 227 1 Includes all State banks (including stock and mutual savings banks) and all private banks under State supervision. Figures relate to dates given or dates nearest thereto for which figures are available. 2 Includes bonds borrowed. s Includes due to banks. * Includes miscellaneous liabilities. NOTE.—All figures in the March columns are as of Mar. 27, except as follows: Maine, Mar. 29; New Hampshire, June 29, 1929; Massachusetts, savings banks, Oct. 31; Rhode Island, State banks, Feb. 28, savings banks, Dec. 31; Connecticut, savings banks, Mar. 31;New York, savings banks, Dec. 31; Pennsylvania, Mar. 17; Indiana, Dec. 31; Minnesota, Apr. 14; Missouri, Apr. 16; North Dakota, Dec. 31; Nebraska, Mar. 31; Kansas, Mar. 19; Maryland, Dec. 31; Kentucky, June 29, 1929; Tennessee, Nov. 29; Alabama, Mar. 19; Louisiana, Apr. 8; Colorado, Mar. 4; Utah, Apr. 5. All figures in the December columns are as of Dec. 31, except as follows: Maine, Dec. 28; New Hampshire, June 29, 1929; Massachusetts, State banks, Dec 28, savings banks, Oct. 31; Kansas, Dec. 3; Kentucky, June 29, 1929; Colorado, Nov. 25; Oklahoma, Dec. 28; Tennessee, Nov. 29. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

476 FEDERAL RESERVE BULLETIN JULY, 1930 EARNINGS AND EXPENSES OF MEMBER BANKS TABLE 1.—ALL MEMBER BANES, BY CLASS OF BANKS, YEARS ENDING DECEMBER 31,1928 AND 1929 Amounts (in thousands of dollars) Amounts per $100 of earning assets * National All member banks Nation b a a l n m ks ember State member banks All b m an e k m s ber m b e a m nk b s er Stat b e a m nk e s mber 1929 1928 1929 1928 1929 1928 1929 1928 1929 1928 1929 1928 Interest earned:2 On loans 3 1,562,769 1, 374,130 919,730 861,811 643,039 512, 319 $4.38 $3.96 $4.23 $3.94 $4.60 $3.98 On investments * 472,868 498,420 305,182 325, 214 167, 686 173, 206 1.32 1.44 1.40 1.49 1.20 1.35 On balances with other banks 33,264 33,178 22,213 24,234 11, 051 8,944 .09 .09 .10 .11 .08 .07 Total 2, 068,901 1,905,728 1,247,125 1, 211,259 821, 776 694,469 5.79 5.49 5.73 5.54 5.88 5.40 Domestic exchange and collection charges 23, 214 21, 329 18, 838 17, 379 4,376 3,950 .06 .06" .09 .08 .03 .03 Foreign department 26, 209 22,913 12,473 12,805 13, 736 10,108 .07 .07 .06 .06 .10 .08 Commissions received . 38, 085 23, 333 853 964 37, 232 22, 369 .11 .07 .27 .17 Trust department 77, 589 65,956 19,857 19, 056 57, 732 46,900 .22 .19 .09 .09 .41 .36 Profits on securities sold 75,106 89,974 38, 671 50,941 36,435 39, 033 .21 .26 .18 .23 .26 .30 Other earnings 164,995 154,765 105,486 89,067 59, 509 65,698 .46 .45 .49 .41 .43 .51 Gross earnings 2, 474,099 2, 283, 998 1, 443, 303 1, 401, 471 1, 030, 796 882, 527 6.92 6.58 6.64 6.41 7.38 6.86 Interest on deposits:2 Time 444, 636 439,384 283, 048 276, 283 161, 588 163,101 1.25 1.26 1.30 1.26 1.16 1.27 Demand 246, 493 234,926 125, 760 130,554 120, 733 104,372 .69 .68 .58 .60 .86 .81 Bank _ 68,131 75, 352 41,450 52, 982 26, 681 22, 370 .19 .22 .19 .24 .19 .17 Total 759, 260 749,662 450, 258 459,819 309, 002 289,843 2.13 2.16 2.07 2.10 2.21 2.25 Interest on borrowed money 3._ 64,265 48, 443 37, 350 29,184 26,915 19, 259 .18 .14 .17 .13 .19 .15 Salaries and wages . 463,847 440, 000 271,103 269, 429 192, 744 170, 571 1.30 1.27 1.25 1.23 1.38 1.33 Taxes 112,476 113,759 64,333 69,872 48,143 43,887 .31 .33 .30 .32 .34 .34 Other expenses 283,872 261,947 164, 096 159,435 119,776 102,512 .79 .75 .75 .73 .86 .80 Total expenses.._ 1, 683, 720 1, 613, 811 987,140 987, 739 696, 580 626, 072 4.71 4.65 4.54 4.52 4.98 4.87 Net earnings 790, 379 670,187 456,163 413, 732 334, 216 256, 455 2.21 1.93 2.10 1.89 2.39 1.99 Kecoveries on charged-off assets: Loans and discounts 25,204 26, 502 16, 663 18, 452 8,541 8,050 .07 .08 .08 .08 .06 .06 Investments 19,956 11,475 8,484 8,363 11, 472 3,112 .06 .03 .04 .04 .08 .02 All other.._ _ 16, 448 12,898 10, 707 8,467 5,741 4,431 .05 .04 .05 .04 .04 .03 Total _ 61, 608 50,875 35,854 35, 282 25, 754 15, 593 .18 .15 .17 .16 .18 .12 Losses charged off: On loans and discounts 139,588 119, 290 93,680 88, 077 45,908 31, 213 .39 .34 .43 .40 .33 .24 On investments 95,465 45,293 63,304 34, 455 32,161 10,838 .27 .13 .29 .16 .23 .08 On banking house, furniture, and fixtures 33,171 31,832 23,407 21,775 9,764 ] 0,057 .09 .09 .11 .10 .07 .08 All other 27, 249 20, 779 20, 242 13,947 7,007 6,832 .08 .06 .09 .06 .05 .05 Total losses 295,473 217,194 200,633 158, 254 94,840 58,940 .83 .63 .92 .72 .68 .46 Net losses« 233,865 166, 319 164, 779 122, 972 69,086 43, 347 .65 .48 .76 .56 .50 .34 Net addition to profits 556, 514 503.868 291, 384 290, 760 265,130 213,108 1.56 1.45 1.34 1.33 1.90 1.66 Dividends declared 408, 628 327, 422 247,317 204, 612 161,311 122,810 Loans6 25,614 655 24,153,677 15,007 570 14,789,566 10,607 085 9 364 111 Investments 6 _ 10,112, 473 10,568, 202 6, 744,178 7, 068, 684 3,368, 295 3,499,518 Earning assets • |35,727,128 34, 721,879 21, 751,748 21, 858, 250 13,975, 380 12,863, 629 CaDital funds e ? 6, 360, 306 5, 622, 312 3,750, 521 3,543, 609 2, f:09,785 2, 078, 703 Other ratios * Earning assets per $1 of capital funds $5 62 $6 18 $5 80 $6 17 $5 35 $6.19 Net profits per $100 of capital funds 8.75 8.96 7.77 8.21 10.16 10.25 Losses on loans per $100 of loans 54 .49 .62 60 43 .33 Losses on investments per $100 of investing»nts .94 .43 .94 .49 .95 .31 1 Owing to revision of figures for loans and investments to exclude bills sold with indorsement, ratios in this and succeding tables are not comparable with ratios published prior to 1927, as republished in August, 1929, Bulletin. The ratios are based upon data taken from the customary ab» stracts of reports of condition and of earnings, expenses, and dividends. It should be borne in mind in using them that the statistics employed represent aggregates for all member banks reporting on the various dates, and the ratios are therefore ratios of aggregates in which figures for large banks have a statistical influence somewhat disproportionate to their number in comparison with the figures for small banks. No adjustments have been made in the underlying data for changes during a given year in the number of banks whose reports underlie the statistics, since the figures presented are for sufficiently large groups that the results appear not to be appreciably affected by these changes. 2 Figures for interest earned and interest paid include small amounts which were unclassified in the reports of some State banks in 1928, and which have been apportioned, by Federal reserve districts, on the basis of the distribution of the classified amounts. 3 Includes discount. 4 Includes dividends. 6 Losses less recoveries. 6 Averages of amounts from reports of condition for 5 call dates (December to December); loans are exclusive of bills sold with indorsement. 7 Capital, surplus, and undivided profits, including reserves for dividends and contingencies, and excluding reserves for taxes, interest, and other expenses accrued. 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JULY, 1930 FEDERAL RESERVE BULLETIN 477 EARNINGS AND EXPENSES OF MEMBER BANKS—Continued TABLE 2.—ALL MEMBER BANKS, BY FEDERAL RESERVE DISTRICTS, YEARS ENDING DECEMBER 31, 1928 AND 1929 [In thousands of dollars] Federal Reserve District Boston New York j Philadelphia Cleveland Richmond Atlanta 1929 I 1928 1929 1928 1929 1928 1929 1928 1929 1928 1929 1928 Interest earned: On loans _ 114,663: 97, 761 • 505, 747, 403, 276 106, 616 92, 585 144, 518 130, 941 61,613j 62,098 58,281 57,509 On investments 34,9071 38, 663 152, 488 162, 025: 45,478 48, 328 54, 684 57, 274 12, 878; 10, 943 11,483 On balances with other i 13, 283 banks _ i,68r 1,995 6,8 4, 575 1, 583 1,540 2,876 3,189 1, 503! 1,8641 2,089 1, 768; Total 151,251 138.4191 665,124J 569,876| 153,677 142, 453 202, 078 191, 404 75,994 71,088 71,081 Domestic exchange and collec- 77,149| tion charges 653 605 5,328 3,623' 660 535 958 880: 1,302 1,283 2,081 2,047 Foreign department 938 1, 200 i 16, 428; 13,826j 850 872 676 638J 140 145 629 533 Commissions received 1,412 1,107 28, 935 12,061| 644 464 1,358 614 487 593 269 Trust department 5,173 4, 732] 36,846 26,919^ 7,596 6,984 7,424 6, 792; 1,239 1,141 1,105 1,091 Profits on securities sold 8,464 7, 0871 29, 294 32, 800, 8,074 9,308 8,234 10,482 1,283 2,310 1,918 1,639 Other earnings 10, 684 9, 534j 55, 394 53, 039j 6, 795| 5,532 14, 055 13, 907 4,795 4, 6,787 6,547 Gross earnings I 178, 575; 162,684 837, 349 712,144 178, 296| 166,148 234,783 224, 717 85,240 87,290 83,877 83,866 Interest on deposits: Time 35,638 36, 357: 108, 048 100, 883 34,935 34, 330 58, 450 20, 534| 21,195 15, 544! 16, 022 Demand ._ 22,484 22, 692 108, 770i 94, 482 15, 228 16, 393 21,894 21,899! 4,871! 5,271 5,745 5,709 Bank 3,292 3,679 27, 258' 28,880 2, 563! 2, 692' 5,457 6, 358; 2,082 2,425 2,203 2,747 Total 61, 414 62, 728! 244, 076; 224, 245 52,726 i 53,415; 85,801 86, 585; 27, 487 28,891 23,492 24,478 Interest on borrowed money. 4,497 3,063 16, 600: 14, 513| 7,031 4,327: 5,603 4, 042, 3,593 2,821 5,269 3,777 Salaries and wages... 28, 424 27, 048 148, 363 129, 294 30, 766 28, 765! 41,112 39, 857 i 16, 594 16,893 17, 049 17, 648 Taxes _ 7,177 6, 362| 32,711: 27,883 8,543 9, 148! 12, 656 13, 826 5,167 5,477| 5,543 Other expenses 18, 264 16, 054 i 92, 333 75, 465^ 17,835 16, 675 22, 761 21,186 9, 786: 9,842, 11, 045 11,046 Total expenses.. 119, 776 115,2551 534,083! 471,350 116,9Olj 112,330 167,933 165,496 62, 627; 63,924; 62,153 62,492 Net earnings 58, 799 47,429; 303,266 240,794 61,395 53,818 66,850 59,22l| 22,613 23,366; 21,724J 21,374 Recoveries on charged-off assets: Loans and discounts 1,257 1,403 6,991 7,017 782 712 1, 523! 1,302 728: 739: 966 1,293 Investments 3,502 2,879 12, 075 3,989j 783• 1, 343 1,019' 633 255 141 122 219 All other 1,154 1,538 3,422: 1,878| 463| 1,814 1,258; 700 1, 249 495! 952 1,124 Total 5,913 5,820 22,' 12,884j 2>028 3,800 j 2, 635 2,232 1,375; 2,040 2,636 Losses charged off: | On loans and discounts.. 11,313 11,920 356 495 i 6, 365; 6,727 9,128; 8,145 7,089 6,072! 8,638 8,333 On investments ' 25,014| 5,342 35,606 135: 5, 670; 2,930 6, 552; 4, 740| 2, 265 1, 528| 2,348 660 On banking house, fur- j | niture, and fixtures i 2,196| 2,283 i, 050 i, 499 2,028 3, 274! 2, 696! 764 909 1,038 1,156 All other ! 4,080 1,720 ,346 S, 119; 2, 718 1, 397| 1,145! 865 562 1,449 1,307 Total losses.. 21, 265 84, 358i 54, 248 16,781 13,404 20, 351 j 16, 726 10,983| 9,071 13,473| 11,456 Net losses.. 36, 690 15, 445 61,870 41,364 14,753 9,535 8,751 7,e 11,433 8,820 Net addition to profits.. 22,109 31,984 241,396| 199, 46, 6421 44, 283 50, 299 45,130 13, 862 15, 670 10,291 12,554 Dividends declared 28, 452; 21,519 149,268! 114,506 33,0701 28, 085 31, 018 29,4221 13,678 12,981 11,571 12,487 Loans 1,869,778 1,797, 582 8,644.662: 7,741, 1, 827,804 ;1, 675, 704 2, 369,l,446|2,236,1701,003,893 !l,021,164 888, 792 895,074 Investments-. 726,073 792, 094 3,108,355 3,236, 878,417! 959,897 l:097, 220! 1,150,312; 315,076; 323,931 275,138 275,537 Earning assets.. 2, 595, 851;2, 589, 676 11, 753, 017] 10,978, 551 2, 706, 221 2,635, 601 3,466, 666 3,386,482|1,318,969; 1,345, 095 1,163,930 1,170,611 Capital funds 443,135; 412,984: 2,387,2671 1,875,521 621,178 563, 373 324 560,693 238,529 239, 708 203,025 197, 867 j i Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

478 FEDERAL RESERVE BULLETIN JULY, 1930 EARNINGS AND EXPENSES OF MEMBER BANKS—Continued TABLE 2.—ALL MEMBER BANKS, BY FEDERAL RESERVE DISTRICTS, YEARS ENDING DECEMBER 31, 1928 AND 1929—Continued [In thousands of dollars] Federal Reserve Districts Chicago St. Louis Minneapolis Kansas City Dallas San Francisco 1929 1928 1929 1928 1929 1928 1929 1928 1929 1928 1929 1928 Interest earned: On loans 228, 791 202, 839 59, 559 55, 974 38, 551 35,469 56,925 54, 277 53,600 49,919 133,905 131,482 On investments - 55, 030 62,917 19,449 19,946 16,158 15,423 18, 928 18,166 9,619 7,964 42,306 42,948 On balances with other banks - 4,479 4,643 1,507 1,715 1,615 1,835 2,938 3,250 2,309 2,436 4,020 4,143 Total 288,300 270, 399 80,515 77,635 56,324 52, 727 78, 791 75, 693 65, 528 60, 319 180, 231 178,573 Domestic exchange and collection charges 3,654 3,711 1, 527 1,465 2,078 1,997 1,461 1,421 1,875 2,003 1,637 1,759 Foreign department 3,487 2,919 133 135 116 121 33 34 215 226 2,564 2,264 Commissions received 2,564 5,206 1,171 1,223 582 606 113 125 71 12 479 394 Trust deDartment 9,419 9,890 1,683 1,401 190 169 1,026 941 306 309 5,582 5,587 Profits on securities sold 6,795 11,672 2,155 3,007 738 913 963 1,478 535 351 6,653 8,927 Other earnings 28, 015 25,032 4, 586 5,221 2,655 2,831 7,746 6,980 5,422 4,427 18, 061 17,046 Gross earnings 342, 234 328,829 91,770 90,087 62,683 59,364 90,133 86, 672 73,952 67,647 215, 207 214,550 Interest on deposits: Time 61, 764 62, 979 17,484 17, 234 15,704 15, 998 12,625 13,043 8,491 7,508 55,419 55, 507 Demand 33,944 34,141 6,983 7,217 3,183 2,982 7,201 7,162 5,450 5,370 10, 740 11, 608 Bank - 8,700 9,839 2,921 3,370 2,073 2,307 4,146 4,702 2,461 2, 788 4,975 5,565 Total 104,408 106, 959 27, 388 27,821 20,960 21, 287 23, 972 24,907 16,402 15, 666 71,134 72, 680 Interest on borrowed money_. 8,127 6, 673 4,135 3,302 1,205 578 2,274 1,223 2,174 1,183 3,757 2,941 Salaries and wages 64,183 64, 809 18,158 18,127 12, 581 12, 590 20, 731 20, 328 16, 586 15, 931 49,300 48, 710 Taxes - - 17,825 19,084 5, 052 5,598 2,787 2,920 4. 239 4,646 4,907 4,691 6,114 8,631 Other expenses 42, 542 42, 687 10, 919 10, 742 7,292 7, 040j 12, 970 12,136 9,329 8,802 28, 796 30, 272 Total expenses 237, 085 240, 212 65, 652 65, 590 44, 825 44,415 64,186 63, 240 49,398 46, 273 159,101 163,234 Net earnings _ 105,149 88, 617 26,118 24,497 17,858 14, 949; 25, 947 23,432 24, 554 21, 374 56,106 51, 316 Recoveries on charged-off assets: Loans and discounts 4,038 3,499 1, 030 1,312 1,330 1, 793 2, 647 2,822 2,301 2, 353 1, 611 2,257 Investments 425 735 715 334 235 139 187 172 67 74 571 817 Allother 2,015 1,495 822 547 306 501 1,320 1,353 552 466 2,935 987 Total - -- 6,478 5,729 2,567 2,193 1,871 2, 433 4,154 4,347 2,920 2,893] 5,117 4,061 Losses charged off: On loans and discounts.._ 24,939 16,042 4,440 4,847 5,076 6,171 7, 643 8,111 8,187 8,279 8,414 10,148 On investments . 5,975 3,773 2,331 1,036 1,196 791 2 217 1, 644 954 626 5,337 4,088 On banking house, furniture, and fixtures 5,718 3,512 962 1,471 3,265 1,362 1,977 1,476 1,124 993 4,775 4,699 Allother 3,620 3,199 952 974 1,146 1,076 2,416 2,410 1,881 1,829 2,379 2,467 Total losses 40, 252 26, 526 8,685 8,328 10, 683 9,400; 14,253 13,641 12,146 11, 727 20, 905 21,402 Net Josses _ 33, 774 20, 797 6,118 6,135 8,812 6,967 10, 099 9,294 9,226 8,834| 15,788 17,341 Net addition to profits 71,375 67, 820 20,000 18, 362 9,046 7,982 15, 848 14,138 15,328 12, 540 40,318 33,975 Dividends declared 54,253 41, 297 15,069 12,643 7,996 5,990 13, 050 10, 331 10, 588 9, 722! 40, 615 28,439 Loans 3,810, 3413, 652, 696 954,922 951,639 568,560 550, 665 807, 776 793,612 726,885 709, 873 2,141, 7962,127, 567 Investments... 1, 257, 2771, 372, 382 412,416 436,482 363, 699 363, 567 430,468 427, 262 247, 743 224,4921,000,5911,005, 627 Earning assets. 5,067,6185,025,078 1,367,338 1,388,121 932,259 914, 2321, 238,2441,220,874 974,628 934,3653,142,3873,133,194 Capital funds 778, 750 730, 238 208, 971 210, 387 118,299 116, 2721 162,157 158,774 171,219 163,270 428,452 393, 225 1 NOTE.—See footnotes, Table 1. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

JULY, 1930 FEDERAL RESERVE BULLETIN 479 EARNINGS AND EXPENSES OF MEMBER BANKS—Continued TABLE 3.—RATIOS—ALL MEMBER BANKS, BY FEDERAL RESERVE DISTRICTS, YEARS ENDING DECEMBER 31, 1928 AND 1929 Federal Reserve District Boston New York Philadelphia Cleveland ; Richmond Atlanta I 1929 i 1928 1929 1928 1929 1928 1929 1928 1929 I 1928 1929 i 1928 Amounts per $100 of earning assets: Interest earned 5.83 5.35 5.19 5.68 5.41 5.83 5.65 5.76 5.74 6.11 ! 6.07 All other earnings.- 1.05 .94 1.47 1.30 .91 .90 .94 .98 .70 ! .75 1.10 | 1.09 Gross earnings 6.88 ! 6.28 7.12 6.49 6.59 6.30 6.77 6.64 6.46 6.49 7.21 7.16 Interest on deposits 2.37 2.42 2.08 I 2.04 1.95 ! 2.03 2.48 2.56 I 2.08 2.15 2.02 2.09 Interest on borrowed money „ .17 .12 .14 i .13 . 26 i . 16 .16 .12 i .27 .21 .45 .32 Salaries and wages 1.09 1.04 1.26 I 1.18 1.14 i 1.09 1.18 1.18 I 1.26 1.26 1.46 1.51 Taxes _ _ ._ .28 .25 .28 • .25 .32 l .35 .37 .41 .39 .41 .46 .47 All other expenses .70 .79 .69 .66 i .63 .63 | .74 .73 .95 .94 Total expenses 4.61 4.45 4.54 4.29 4. 32 ! 4. 26 4.84 4.75 4.75 5.34 5.34 Net earnings 2.27 2. 58 2.19 2.27 2.04 1.93 1.75 1.71 1.74 1.87 1.83 Total losses _ 1.64 .82 .72 .49 .51 .49 .83 .67 1.16 .23 .23 .19 .12 .07 .15 .11 .17 .10 .18 .23 Recoveries .53 .38 .55 ; .48 .42 Net losses .85 1.24 2.05 1.72 I 1.68 1.45 Net addition to profits Other ratios: Earning assets per $1 of capital funds... 5.86 6.27 4.36 ! 5.78 6.04 5.53 5.61 5.73 5.92 Net profits per $100 of capital funds 4.99 7.75 7.51 ! 8.39 8.05 5.81 i 6.54 5.07 6.35 Losses on loans per $100 of loans .61 .35 .40 .39 .36 .71 | .59 .97 .93 Losses on investments per $100 of investments 3.44 .67 .65 .31 .41 .72 I .47 .85 .24 Federal Reserve District Chicago St. Louis Minneapolis Kansas City Dallas San Francisco 1929 1928 1929 1928 1929 1928 1929 1928 1929 1928 1929 1928 Amounts per $100 of earning assets: Interest earned 5.69 5.38 5.89 5.59 6.04 5.77 6.36 6.20 6.72 6.46 5.74 5.70 All other earnings. _. 1.06 1.16 .82 .90 .68 .73 .92 .90 .86 .78 1.11 1.15 Gross earnings 6.75 6.54 6.71 6.49 6.72 6.49 7.28 7.10 7.59 7.24 6.85 6.85 Interest on deposits . . 2.06 2.13 2.00 2.00 2.25 2.33 1.94 2.04 1.68 1.68 2.26 2.32 Interest on borrowed money .16 .13 .30 .24 .14 .06 .18 .10 .22 .13 .12 .09 Salaries and wages - - 1.27 1.29 1.33 i 1.31 1.35 1.38 1.67 1.67 1.70 1.71 1.57 1.56 Taxes .35 .38 .37 i .40 .30 .32 .34 .38 .50 .50 .19 .28 All other expenses .84 .85 .80 ! .77 .78 .77 1.05 .99 .96 .94 .92 .97 Total expenses 4.68 4.78 4.80 | 4.73 4.81 4.86 5.18 5.18 5.07 4.95 5.06 5.21 Net earnings 2.07 1.76 1.91 1.77 1.92 1.64 2.10 1.92 2.52 2.29 1.79 1.64 Total losses .79 .53 64 -M 1.15 1.03 1.12 1.25 1.26 .67 .68 Recoveries - - .13 .11 .19 .16 .20 .27 134 .36 .30 .31 .16 .13 Net losses . . .07 .41 .45 .44 .95 .76 .82 .76 .95 .95 .50 .55 Net addition to profits _ 1.41 1.35 1. 46 i 1. 32 .97 .87 1.28 1.16 1.57 1.34 1.28 1.08 G ther ratios: Earning assets per $1 of capital funds 6.51 6.88 6.54 ; 6.60 7.88 7.86 7.64 7.69 5.69 5.72 7.33 7.97 Net profits per $100 of capital funds 9.16 9.29 9.57 : 8.73 7.65 6.87 9.77 8.90 8.95 7.68 9.41 8.64 Losses on loans per $100 of loans .65 .44 .46 : .51 .89 1.12 .95 1.02 1.13 1.17 .39 .48 Losses on investments per $100 of investments - . .48 .27 .57 .24 .33 .22 .51 .38 .39 .28 .53 .41 NOTE.—See footnotes, Table 1. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

480 FEDERAL RESERVE BULLETIN JULY, 1930 EARNINGS AND EXPENSES OF MEMBER BANKS—Continued TABLE 4.—NATIONAL BANKS,! BY FEDERAL RESERVE DISTRICTS, LAST SIX MONTHS OF 1929 NOTE.—The following statistics of earnings and expenses of national banks were compiled by the Comptroller of the Currency from reports sub mitted by national banks. Similar information for the first half of 1929 was published on page 50 of the January, 1930, issue of the FEDERAL R" ESEERRVE BULLETIN; additional statistics for the fiscal year ending June 30, 1929, will be found in the Annual Report of the Comptroller of the Currency for 1929. [In thousands of dollars] Federal Reserve District Total j 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 - 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 i F c S r is a a c n n o - Gross earnings: i Interest received— On loans 2 474, 647 38,833 110,521 37, 809 35, 501 24, 3t>l 21, 852 60,129 18, 462 20,003 27, 269 24,063 . 55,844 On investments ;i 148, 483' 11, 888 38,028 15, 538 16, 015 5,263 4, 127 14,192 5,580 7,702 8,702 4,537 16, 911 On balances with other banks 11,149 651 793 583 933 593 726 1,554 528 772 1, 370 1,033 , 1,613 Domestic exchange and collection charges 10, 265 279 2,711 318 316 497 923 1,080 471 1,089 774 1,097 ! 710 Foreign exchange department _ _ 6,814 295 3,511 415 169 30 219 ?2* 41 90 8 104 1,204 Commissions received 451 15 2 5 2 99 15 224 30 50 Trust department 9,886 1,211 3,163 511 717 423 297 565 265 103 384 164 I 2, 083 Profits on securities sold 23, 055 3,046 6,186 2, 208 3,128 405 344 1, 460 929 388 283 216 • 4, 462 Other earnings .-. 51,936 3,974 16,913 2,356 2,953 1,825 2,438 6,219 1,209 1,305 2,995 2,476 | 7, 273 Total earnings 736, 686 60,177 181,841 59, 740 59, 734 33, 402 30, 928 86,026 27, 500 31,676 41,815 33,697 i 90,150 Expenses: Salaries and wages 139, 450 9,833 29,640 10,159 10, 433 6,505 6,782 16,472 5,437 6,046 9,727 7,819 ) 20, 597 Interest paid— On borrowed money 2__- 19, 797 1, 538 3,602 2, 203 1,713 1, 284 1,622 1,784 1,178 790 1,093 1,263 1, 727 On deposits- Time 142,487 12,170 27, 396 13, 916 14, 335 8, 475 6,195 15, 536 5,310 7,189 5,952 3,913 , 22,100 Demand 64,960 6,174 24, 349 4,274 5,379 1, 742 1,845 7,785 1, 939 1,701 3, 154 2,512 • 4,106 Bank 20, 722 1,385 6,342 935 1,422 690 703 2,416 931 1,009 1,841 1,124 : 1,924 Taxes 34, 853 3,058 6, 999 2, 656 2, 969 2,623 2, 891 4,445 1,682 992 2, 076 2,656 ! 1,806 Other expenses 83, 538 6,041 19, 475 5,518 5, 923 3,458 4,038 11, 389 2,749 3,476 5, 383 4,053 • 12,035 Total expenses _ 505, 807 40,199 117, 803 39, 661 42,174 24,777 24, 076 59, 827 19, 226 21, 203 29, 226 23,340 | 64, 295 Net earnings - - - 230,879 19, 978 64, 038 20, 079 17, 560 8,625 6,852 26,199 8, 274 10, 473 12, 589 10,357 25,855 Recoveries on charged off assets: Loans and discounts 7,563 374 1,006 278 410 245 353 1,053 282 536 1,283 1,074 669 Bonds, securities, etc 5,325 2,716 1,354 146 215 112 99 142 233 69 96 43 100 All other 4, 944 195 755 280 600 933 210 380 72 169 389 331 630 Total net earnings and recoveries 248,711 23, 263 67,153 20, 783 18, 785 9,915 7,514 27, 774 8,861 11, 247 14, 357 11, 805 27, 254 Losses charged off: On loans and discounts 53, 679 4,970 11,080 2,733 3,448 3,266 3,533 9,301 ! 1,498 2,465 3,748 4,480 3,157 On bonds, securities, etc 37,662 11,888 10, 743 2,480 2, 962 748 1,216 2,402 729 549 1, 264 465 2,216 On banking house, furniture, and fixtures _ _ ._ 13, 544 813 2,153 810 1,004 445 690 2,137 ! 353 487 1,218 676 2.758 On foreicrn exchange 165 21 11 6 1 6 101 3 16 All other losses ! 11,389 3,175 1,161 289 303 419 553 1,644 370 569 1,244 931 731 Total losses charged off 116, 439 20,867 25,148 6,312 7,723 4,878 5,993 15,490 2,950 4,070 7,575 6,555 8,878 Net addition to profits 132, 272 2, 396 42, 005 14,471 11, 062 5,037 1,521 12, 284 5, 911 7.177 6,782 5,250 : 18, 376 Dividends declared 131,102 13, 218 39,044 12, 558 8,060 5,498 4, 799 12, 347 j 5,590 3,692 6, 098 6,061 14,137 Capital stock paid in * ,1,701,048 !l51, 780 437, 072 123, 520 127, 095! 87,122 81, 090 201,185 ! 66,992 61,130 83, 957 88, 220 191, 885 Surplus fund 4 1,546,323 |126,656 510,908 222, 371 140, 458 71,133 58,151 136, 864 j 38,678 33, 945 41,812 45,660 ; 119, 687 Capital and surplus 4 .3, 247, 371 278,436 947, 980 345, 891 267, 553 158, 255 139, 241 338, 049 1105,670 95, 075 125, 769 133,880 311,572 Number of banks * 7,403 367 769 678 696 469 366 936 1 468 633 872 662 ! 487 1 Member banks only, i. e., exclusive of national banks in Alaska and Hawaii. 2 Includes discount. 3 Includes dividends. * As on Dec. 31, 1929. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

JULY, 1930 FEDERAL RESERVE BULLETIN 481 EARNINGS AND EXPENSES OF MEMBER BANKS—Continued TABLE 5.—STATE BANK MEMBERS, BY FEDERAL RESERVE DISTRICTS, LAST SIX MONTHS OF 1929 [In thousands of dollars] Federal Reserve District Total i Boston ! ! Y N o e r w k d P e h lp il h a i - a C l l a e n v d e- mRiocnhd- Atlanta|Chicago Louis apolis -1 K C a i n ty s as Dallas ! ^ Gross earnings: Interest received— O O n n l i o n a v n e s s t l ments 2 33 8 7 3, , 3 7 2 3 2 6 21 5 , , 1 2 7 6 1 2 1 3 56 5 , , 9 7 7 2 0 7 6, 970 3 10 7 , , 8 7 4 7 9 4 5 1, , 1 8 2 4 7 5 6 1 , , 1 0 1 6 0 8 ; ! 5 1 9 3 , , 7 3 8 0 6 0 12 3 , , 4 6 2 5 6 8 1,4 5 9 1 2 1 2,1 8 8 6 6 0 1, 2 7 6 9 0 4 | 14 3 , , 3 5 9 6 2 2 On balances with other banks 6,746 181 3. 957 460 163 215 53 : 94 62 ; 453 Domestic exchange and collection charges 2, 359 70 363 46 169 146 131 ! 396 48 i 20 124 Foreign department 7, 569 192 5, 116 16 192 57 115 . 1,587 ' 32 1 ; 10 251 Commissions received 21, 782 807 17, 835 263 719 254 136 | 871 ; 552 23 196 Trust department 32, 337 1,634 16, 741 3.789 i 3,227 334 245 ; 4,662 ; 645 185 832 Profits on securities sold... 16, 563 1,637 ; 7,940 1,745 i 1,735 170 . 599 I1,847 ! 371 219 79 145 Other earnings 31, 036 940 ' 14,479 1,766 | 4. 021 514 1,016 I 4,013 1,052 \ 799 650 1,683 103 Total earnings. 539,450 | 31,894 j 259,128 32,780 i 59,146 8,571 9,583 | 87,592 19,347 2,409 4,396 : 2,966 21, 638 Expenses: Salaries and wages 101, 264 4,798 49,012 5,881 i 10,465 1,839 1,682 i 16,518 3,866 443 991 | 716 5,053 Inter O e n st b p o a r i r d o — wed money * . 14, 439 540 5,406 1, 689 1, 224 490 1,156 jj 2,237 1,126 22 ! 161 j 319 On deposits- Time 80, 872 5, 677 27. 704 4,403 , 14.449 1,598 1,349 14,962 3, 354 625 i 293 I 331 6,127 Demand 62, 910 5,291 33,043 3,255 J 5,633 654 1,015 10,297 1,693 87 ! 507 i 93 1,342 Bank 13,936 318 8. 300 401 1,197 294 233 1,928 460 36 i 250 I 48 471 Taxes 27,726 1,434 11,539 1. 339 3,432 461 647 6.859 I1, 043 97 i 130 148 597 Other expenses 62,133 3,819 29, 350 3,611 5,193 1,206 1,257 10.655 2, 505 237 | 877 ; 435 2,988 Total expenses.. 363,280 : 21,87' 164,354 20,579 \ 41,593 6, 542 7, 339 | 63,456 ; 14,047 • 1, 547 ; 3, 209 ! 1,840 16,897 Net earnings 176,170 | 10, 017 94,774 12,201 ; 17,553 2, 029 2,244 24,136 5, 300 862 ! 1, 187 ;1,126 4,741 Recoveries on charged-oit" assets. 97 I Loans and discounts 4, 559 280 2,230 99 ! 442 102 131 899 79 52 1 33 ! 115 Bonds, securities, etc 854 49 340 87 ' 189 35 26 116 3 i 8 All other 2,438 691 730 46 , 79 20 "~~59~ 386 116 1 I 26 ! 197 Total net earnings and | ! recoveries 184,021 : 11,037 98,074 12,433 | 18,5 2,186 j 2,434 | 25,447 5,611 918 i 1,307 1,250 5,061 Losses charged oft: On loans and discounts 26. 306 2, 317 9, 994 976 2, 512 1,044 1,755i 5,286 701 173 165 659 724 On bonds, securities, ctC-.. 18,801 2, 073 10. 836 1,208 1, 660 933 414 1 1,012 239 38 48 88 252 On banking house, furniture, and fixtures 6, 319 455 1,603 629 971 131 731 1,644 224 81 6 90 412 All other losses 4, 203 195 1, 176 202 651 94 427 705 207 43 155 114 234 Total losses charged off. 5.x 629 5, 040 23, 609 3,015 5, 794 2, 202 2 669 i 8,647 1, 371 335 374 951 1, 622 Net addition to profits 128,392 , 5,997 74,465 9,418 12, 469 * 16 4235i 16,800 4,240 583 933 299 3,439 Dividends paid.. 84,190 3,897 44. 687 : 6, 124 8, 135 1, 342 1234 13,235 2, 715 238 517 369 1,697 Capital stock paid in 8 1, 055, 990 41, 525 519.689 59,279 106, 720 25, 348 20595178,472 44,540 3,515 8, 505 7, 552 40, 250 Surplus fund := 1, 318, 379 : 50,227 733.188 147, 219 149,815 15, 794 14438 151,408 24, 288 1,825 3,189 2, 560 24, 428 Capital and surplus 2, 374, 369 91, 752 1, 252. 877 206, 498 256, 535 41,142 35,033 329, 880 68, 828 5, 340 11, 694 10,112 64, 678 Number of banks 3 1,117 37 162 86 99 45 61 j 250 103 50 21 83 120 1 Includes discount. - Includes dividends. 1 As of Dec. 31, 1929. 4 Net loss. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

FEDERAL RESERVE DISTRICTS OKLA. Oklahoma City DALLAS® TKXAS —-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