Federal Reserve Bulletin, 1930-08

FEDERAL RESERVE BULLETIN AUGUST, 1930 ISSUED BY THE FEDERAL RESERVE BOARD AT WASHINGTON The Banking Situation Legal Reserve Requirements of Foreign Central Banks Annual Reports of Central Banks—Netherlands and Czechoslovakia UNITED STATES GOVERNMENT PRINTING OFFICE WASHINGTON : 1930 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

FEDERAL RESERVE BOARD Ex officio members: ROT A. YOUNG, Governor. A. W. MELLON, EDMUND PLATT, Vice Governor. Secretary of the Treasury, Chairman. ADOLPH C. MILLER. CHARLES S. HAMLIN. J. W. POLE, GEORGE R. JAMES. Comptroller of the Currency. EDWARD H. CUNNINGHAM. WALTER L. EDDY, Secretary. WALTER WYATT, General Counsel. E. M. MCCLELLAND, Assistant Secretary. E. A. GOLDENWEISER, Director, Division of Research J. C. NOELL, Assistant Secretary. and Statistics. W. M. IMLAY, Fiscal Agent CARL E. PARRY, Assistant Director, Division of Research Chief, Division of Examination, and Chief Federal and Statistics. Reserve Examiner. E. L. SMEAD, Chief, Division of Bank Operations. FEDERAL ADVISORY COUNCIL District No. 1 (BOSTON) HERBERT K. HALLETT. District No.2 (NEW YORK) WM. C. POTTER. District No.3 (PHILADELPHIA) HOWARD A. LOEB. District No.4 (CLEVELAND) HARRIS CREECH. District No.5 (RICHMOND) JOHN POOLE. District No. 6 (ATLANTA) _ J. P. BUTLER, Jr. District No. 7 (CHICAGO) FRANK O. WETMORE, President. District No.8 (ST. LOUIS) W. W. SMITH. District No.9 (MINNEAPOLIS) GEO. H. PRINCE. District No. 10 (KANSAS CITY) W. S. MCLUCAS. District No. 11 (DALLAS) B. A. MCKINNEY, Vice President. District No. 12 (SAN FRANCISCO) F. L. LIPMAN. WALTER LICHTENSTEIN, Secretary. II Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

OFFICERS OF FEDERAL RESERVE BANKS Federal Reserve Bank of— Chairman Governor Deputy governor Cashier Boston Frederic H. Curtiss W. W. Paddock.... W. Willett. New York J. H. Case Geo. L. Harrison.. J W . E . R . C . r B a u n r e gess R C a . y H M . C . o G e. i i dney.* A. W. Gilbart J. W. Jones.* E. R. Kenzel W. B. Matteson.i Walter S. Logan... J. M. Rice.* L. R. Rounds Allan SprouU L. F. Sailer Philadelphia.. R. L. Austin ..._ Geo. W. Norris Wm. H. Hutt C. A. Mcllhenny. W. G. McCreedy.* Cleveland George DeCamp E. R. Fancher M. J. Fleming H. F. Strater. Frank J. Zurlinden. Richmond Wm. W. Hoxton.. George J. Seay C. A. Peple Geo. H. Keesee. R. H. Broaddus John S. Walden, jr.* Atlanta Oscar Newton Eugene R. Black Hugh Foster M. W. Bell. Creed Taylor Chicago Wm. A. Heath J. B. McDougal.... C. R. McKay W. C. Bachman.1 John H. Blair K. C. Childs.» J. H. Dillard.* D. A. Jones.1 O. J. Netterstrom. St. Louis John S. Wood- Wm. McC. Martin 0. M. Attebery S. F. Gilmore.* A. H. HailU F. N. HalU G. 0. Hollocher.» C. A. Schacht.* Minneapolis... John R. Mitchell W. B. Geery.... Harry Yaeger H. I. Ziemer. H, I. Ziemer Frank C. Dunlop.* Kansas City... M. L. McClure _. W.J. Bailey.... C. A. Worthington. J. W. Helm. J. W. Helm Dallas... C. C. Walsh Lynn P. Talley. R.R.Gilbert Fred Harris. R. B. Coleman W. O. Ford.i San Francisco. Isaac B. Newton Jno. U. Calkins. Wm. A. Day Wm. M. Hale. Ira Clerk * 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 J. E. Olson. Richmond: Oklahoma City branch C. E. Daniel. Baltimore branch A. H. Dudley. Dallas: Charlotte branch Hugh Leach. El Paso branch.__ J. L. Hermann. Atlanta: Houston branch _ W. D. Gentry. New Orleans branch Marcus Walker. San Antonio branch... M. Crump. Jacksonville branch W. S. McLarin, jr. San Francisco: Birmingham branch A. E. Walker. Los Angeles branch W. N. Ambrose. Nashville branch J. B. Fort, jr. Portland branch R. B. West. Chicago: Salt Lake City branch W. L. Partner. Detroit branch W. R. Cation. Seattle branch _ C. R. Shaw. St. Louis: Spokane branch D. L. Davis. Louisville branch W. P. Kincheloe. Memphis branch W. H. Glasgow. Little Rock branch A. F. Bailey. SUBSCRIPTION PRICE OF BULLETIN The FEDERAL RESERVE BULLETIN is the board's medium of communication with member banks of the Federal reserve system and is the only official organ or periodical publication of the board. The BULLETIN will be sent to all member banks without charge. To others the subscription price, which covers the cost of paper and printing, is $2. Single copies will be sold at 20 cents. Outside of the United States, Canada, Mexico, and the insular possessions, $2.60; single copies, 25 cents. in Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

TABLE OF CONTENTS Page Review of the month—The banking situation ' . _ _ 483 Growth of member bank credit—Total reported security loans—Open-market portfolios and loans to customers. Legal reserve requirements of foreign central banks 502 Annual report of the Bank of Netherlands 503 Annual report of the National Bank of Czechoslovakia 506 Earnings and expenses of Federal reserve banks during six months ending June 30 532 National summary of business conditions 487 Financial, industrial, and commercial statistics: Reserve bank credit and factors in changes (chart and table) 488, 489 Analysis of changes in monetary gold stock 489 Gold movements to and from United States 489 Member bank borrowing at Federal reserve banks 490 Discount rates and money rates 490, 491 Member bank credit, 492 Bankers' acceptances and commercial paper outstanding 492 Brokers' loans 492 Security prices, security issues, and building contracts awarded 493 Production, employment, car loadings, and commodity prices 494 Industrial production 495 Factory employment and pay rolls 496 Banking and business conditions in Federal reserve districts: Federal reserve banks— Discounts (chart and tables) 497, 498 Reserves, deposits, note circulation, and reserve percentages 498 All member banks—Deposits subject to reserve, reserves held, and indebtedness at reserve banks. _ 498 Member banks in leading cities—Prinicpal resources and liabilities 499 Building 500 Department stores—Indexes of sales and stocks 500 Commercial failures 500 Bank suspensions 500 July crop report _ 501 Financial statistics for foreign countries: Gold holdings of central banks and governments 510 Gold exports and imports :__ 510 Condition of central banks 511, 512 Condition of commercial banks 513 Discount rates of central banks 514 Money rates 514 Foreign exchange rates 515 Price movements 516,517 Law department: Amendment to law with reference to election of directors of Federal reserve banks 518 Amendment to law regarding surrender of trust powers by national banks 518 Amendment to law regarding cost of examinations of member banks 518 Amendment to Regulation A regarding rediscounts by Federal reserve banks 519 , Amendment to Regulation J regarding check clearing and collection 523 Ruling—Effect of consolidation on Clayton Act permits 525 Detailed Federal reserve statistics, etc.: Resources and liabilities of Federal reserve banks in detail and Federal reserve note statement 527 Condition of each Federal reserve bank at end of month 528 Maturity distribution of bills and short-term securities held by Federal reserve banks 529 Membership in par collection system 529 Bank debits 529 Kinds of money in circulation 529 Changes in national and State bank membership 530 Fiduciary powers granted to national banks 531 IV Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

FEDERAL RESERVE BULLETIN VOL. 16 AUGUST, 1930 No. 8 REVIEW OF THE MONTH any time in recent years. Member-bank credit outstanding, as measured by the total The banking situation during July was loans and investments of member banks in characterized in general by a continuance of leading cities, increased by $100,000,000 from pronounced ease, under the The banking the end of June to the end of July to the persisting influence of the same situation highest level that has ever prevailed, except conditioning circumstances as for a brief period last autumn. A further in other recent months. While there was a decline in loans on securities, which brought temporary increase in the demand for currency these back to the May level, and a renewed over the Fourth of July holiday, such as always decline in "all other" loans, were accomhappens at this season, the subsequent return panied by a further increase of about $200,of currency from circulation was of even larger 000,000 in the banks' holdings of investments proportions. About $170,000,000 additional which at $6,290,000,000 on July 30 were at the currency was called out between the last highest level on record, about $75,000,000 Wednesday in June and the first Saturday in above the previous high point reached in the July, but by the last Wednesday in July— early summer of 1928. which usually marks the low point for the year—the same amount had come back along Preliminary figures have recently become with about $30,000,000 more. This net inflow available, through the cooperation of the Fedof $30,000,000 from circulation came at about eral reserve banks and the the same time as and fully compensated for a Growth of courtesy of the Comptroller of net outflow of gold to foreign countries, so member-bank J . that the loss of gold was without immediate credit the Currency, snowing lor a influence on conditions in the money market. comparatively recent date— The gold exports, which went to France and June 30—a classification of member-bank loans Canada, reflected strength in the foreign ex- and investments that is both more inclusive changes which was in turn a reflection of ease and more detailed than that made available in in our own money market. Under the prevail- the current reports of member banks in leading ing conditions as regards money in circulation ALL MEMBER BANKS and gold movements the reserve position of the [In millions of dollars] member banks continued easy. Their reserve Change balances almost always fluctuate considerably June 30, Mar. 27, for quar- 1930 i 1930 ter from day to day and varied in July by more than $90,000,000 between the lowest and Loans and investments—total- 35,633 35,056 +577 highest points, but the daily average for the Loans on securities 10, 680 10, 334 -1-346 All other loans 14, 518 14, 785 -267 month was about $25,000,000 above the Investments—total 10,435 9,937 +498 United States securities.. 4,059 4,085 -26 corresponding figure for June, and excepting Other securities 6,376 5,852 +524 for January, 1928, and November, 1929, was 1 igures for June 30 are preliminary and subject to revision. at a new high level. Member-bank borrowings at the reserve banks, on the other hand, now cities. These figures, which are summarized in amounting to about $200,000,000 or one-twelfth the accompanying table, show that a growth of their aggregate reserve balances, declined of $580,000,000 in member-bank credit during during July and toward the end of the month the quarter reflected a growth of nearly were at as low a level as has been reached at $850,000,000 in their combined holdings of 483 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

484 FEDERAL RESERVE BULLETIN AUGUST, 1930 investments in securities and loans on securi- part arrived at after subtracting the call date ties—offset by a decrease of about $270,000,000 figures of member bank loans to brokers in in "all other77 loans. The different classes of New York. It includes no security loans for loans secured by stocks and bonds are shown nonmember banks or nonbanking lenders except in the second table, from which it appears that those made at New York to members of the the growth of $345,000,000 in security loans re- Stock Exchange. The compilation is available for quarterly intervals from October, 1928, to ALL MEMBER BANKS—LOANS ON SECURITIES June, 1930, and is given in the table, which [In millions of dollars] shows separately the security loans of the Change member banks, by class of loan, and of other June 30, Mar. 27, for 19301 1930 quarter TOTAL REPORTED SECURITY LOANS Loans on securities—total 10,680 10, 334 +346 [In millions of dollars] To banks 230 260 -30 To brokers and dealers in securities in New York City 2,357 2,344 +13 By member banks To brokers and dealers in securities elsewhere 823 706 +117 To others 7,270 7,024 +246 To To o B th y er Call date Total brok- brok- lend- 1 Figures for June 30 are preliminary and subject to revision. Total ba T n o ks* e N rs e w in e e ls r e s - ot T h o ers ers2 York where fleeted a small decrease in loans to banks, ab- City sence of change in loans to brokers in New 1928—Oct. 3 _12,429 8,819 274 1,899 850 5,796 3,610 York City, and increases of $120,000,000 and Dec. 31 14,062 10,172 269 2,556 975 6,373 3,890 1929—Mar. 27 14, 613 9,693 274 1,879 1,014 6,526 4,920 $245,000,000, respectively, in security loans June 29 15,144 10,094 335 2,025 921 6,813 5,050 Oct. 4 16,974 10,314 320 1,885 939 7,170 6,660 to brokers and dealers in securities outside Dec. 31. 12,835 10,505 357 1,660 803 7,685 2,330 1930—Mar. 27 12,644 10,334 260 2,344 706 7,024 2,310 New York City and to other customers bor- June 30 3 12,050 10,680 230 2,357 823 7,270 1,370 rowing on stocks and bonds. 1 Security loans to banks, not available separately prior to 1930, esti- During this same period, as shown by the mated for 1928 and 1929 at half of total loans to banks. 2 Total borrowings at New York as reported for end of month by memfigures of the New York Stock Exchange, there bers of Stock Exchange minus loans to brokers in New York as reported for call dates by all member banks; resulting figures, except in December was a decrease of more than $900,000,000 in and June, reflect in part differences in these dates. 3 Figures for June 30, 1930, preliminary and subject to revision. brokers7 borrowings at New York City from all classes of lenders, and the absence of any lenders on securities. Examination of the table change for the period in member-bank loans of shows that the total of reported security loans this description makes it clear that the whole was at its peak last October and that since of this decrease was due to the withdrawal then it has decreased by about $4,925,000,000, from the stock market, at a time when rates of which about $600,000,000 was in the second obtainable there were becoming progressively quarter of this year. On June 30, however, the less remunerative, of street loans placed by member banks had outstanding a larger volume nonbanking lenders and by nonmember banks. of loans on securities than on any preceding call By combining statistics from the member date and about $365,000,000 more than on bank call report and the monthly reports of October 4, 1929. the New York Stock Exchange, The call-date classification of bank loans now securityPloans ^ *s Possible to arrive at a more distinguishes between (1) those which reflect, comprehensive figure than has in combination with investment heretofore been available for aggregate loans Open-market holdings, the member banks' portfolios and secured by stocks and bonds. This aggregate, loans to open-market policy, and (2) here designated as total reported security loans, customers those which reflect the banks' includes those specifically reported on call dates direct dealings with their own by all member banks and in addition thereto a customers. During the second quarter, as part of the brokers' borrowings at New York appears from the table, it was in the open- City reported by the Stock Exchange—the market portfolio that about $500,000,000 of the Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

485 AUGUST, 1930 FEDERAL RESERVE BULLETIN increase in member-bank credit occurred, while view of the low return on short-term loans in loans to customers, though altering somewhat the open market and also in view of the rapid in composition during the quarter, increased decline in rates which accompanied efforts to place additional funds in this category of loans. MEMBER BANK LOANS AND INVESTMENTS (EXCLUSIVE The nature of these developments becomes OF LOANS TO BANKS) more evident when comparison is made, as in [In millions of dollars] the accompanying table, between changes for the quarter in the composition of member-bank June 30, Mar. 27, Change 19301 1930 for quar- credit at city banks, where an increasing volume ter of funds was available for investment, and at Loans and investments—total 35,102 34, 529 4573 Loans to customers—total . 21, 559 21,495 +64 CLASSIFICATION OF MEMBER BANK LOANS AND INVEST- Secured by stocks and bonds ___ 8,093 7,730 +363 MENTS (EXCLUSIVE OF LOANS TO BANKS) Secured by real estate 3,127 3,170 -43 Otherwise secured and unsecured 10, 339 10,595 -256 [Preliminary figures in millions of dollars] Open-market loans and investments— total _ 13, 543 13,034 +509 Amount June i Change from Open-market loans—total... 3,108 3,097 +11 30, 1930 | Mar. 27, 1930 Dollar acceptances purchased. __ 169 175 -6 Foreign acceptances purchased.. 71 79 -8 Commercial paper purchased 511 499 +12 Inve S s t t r m ee e t n t l s o — an t s o 2 tal _. __ _. 1 2 0 , , 3 4 5 3 7 5 2 9, , 9 3 3 4 7 4 + + 4 1 9 3 8 ba C n it k i s - ! C b o a u n n k t s ry ba C n it k y s1 C b o a u n n k t s ry United States securities 4,059 4,085 -26 Other securities 6,376 5,852 +524 Loans and investments—total.. 22,044 13, 060 +696 -118 1 Figures for June 30 are preliminary and subject to revision. Loans to customers 13,355 8,203 +67 -3 2 Loans to brokers and dealers in securities at New York City. Open-market loans 2, 792 317 +193 -179 Investments 5,897 4,539 +436 +64 but $65,000,000. The increase in the open- 1 Central reserve and reserve city banks. market holdings of the banks, furthermore, was neither in any of the classes of open-market country banks, where seasonal influences operloans nor in holdings of United States Govern- ated toward a contraction of loans and investment securities, but altogether in other securi- ments. The table shows that the demand for ties. The detailed figures of these holdings are loans from customers taken as a whole showed not yet available for June; in March they con- little change at either type of bank, and that sisted of bonds to the extent of about 80 per city banks chose to employ the greater part of cent, stocks to the extent of about 12 per cent, the increased funds which came into their possesand miscellaneous securities, largely of short sion in purchases of investments which increased term, to the extent of about 8 per cent. by $435,000,000 rather than in short-term open- These changes are in accord with develop- market loans which increased for this type of ments during the quarter in the general money bank by $190,000,000. Country banks, on the market, where bond prices showed a tendency other hand, increased their holdings of investto advance despite relatively heavy flotations ments by only $65,000,000 and met the full of new issues while interest rates charged on seasonal contraction in their open-market open-market loans declined to unusually low portfolio by withdrawing loans to the extent of levels. Rates on bank loans to customers also $180,000,000 from the short-term open markets. declined but still yielded a return to the bank From about the end of July to some time in that was well above that to be obtained on loans September or October the principal factor in in the open market. Under these circumstances the banking situation is usually the autumn those member banks having additional funds increase in the demand for currency, which has available for investment at a time when the approximated in recent years about $150,000,demand for loans from their customers was 000. In order to meet this demand, in the inactive naturally chose to employ the greater absence of gold imports, an equivalent amount part of them in purchasing securities both in of reserve bank credit in some form is seasonally Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

486 FEDERAL RESERVE BULLETIN AUGUST, 1930 drawn into use. At the present time, with At the Federal Reserve Bank of New York member banks indebted to the reserve banks in the buying rate on bills of all maturities from smaller amount than at this season of any other 46 to 75 days was reduced from 2 to 1% per year since 1924 and having in their portfolios, as cent, effective July 21. Buying rates on bills of shown by June reports, a substantial volume all other maturities remained unchanged. of acceptances, they enter this autumn the period of seasonal increase in currency demand Changes in Foreign Central Bank Discount Rates in an exceptionally easy position. The following changes have been made since the 1st of July in the discount rates of central Changes in Discount Rates and Bill Rates banks in foreign countries: The discount rate on all classes and maturi- July 10.—Bank of India, from 6 to 5 per cent, and ties of paper was reduced from 4 to 3K per cent Bank of Switzerland, from 3 to 2l/{ per cent. July 18.—Bank of Spain, from 5}£ to 6 per cent. at the Federal Reserve Bank of Atlanta, ef- July 26.—Reserve Bank of Peru, from 7 to 8 per cent. fective July 12; and at the Federal Reserve August 1.—National Bank of Belgium, from 3 to 2}i Bank of Richmond, effective July 18. per cent. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

AUGUST, 1930 FEDERAL RESERVE BULLETIN NATIONAL SUMMARY OF BUSINESS CONDITIONS [Compiled July 21 and released for publication July 25] Industrial production decreased in June by be substantially below the corresponding pemore than the usual seasonal amount, and fac- riods of 1928 and 1929. Preliminary reports tory employment and pay rolls declined to new indicate that the decline in department-store low levels. The volume of building contracts sales from a year ago was of larger proportions awarded was large. Prices declined sharply, in June than in any previous month this year. and money rates continued downward. Wholesale prices.—Commodity prices de- Industrial production and employment.—In clined more rapidly in June than in any June industrial production showed a further other recent month, and the index of the substantial decrease, and the board's index, Bureau of Labor Statistics, at 86.8 per cent which is adjusted for ordinary seasonal varia- of the 1926 average, was about 10 per cent tions, declined to the lowest level since last De- below the level of a year ago. Prices of many cember. Output of steel ingots declined in important agricultural commodities and their June and early July more than is usual at this manufactures declined further, and those of season, while automobile production was certain leading imported raw products—silk, sharply curtailed to a level considerably below rubber, and coffee—reached new low levels. that of the same period of the past two years. There were also further declines in iron, steel, Cotton consumption, already at a low level, and copper. Prices of raw wool, hides, and declined further in June. Output of bitumi- raw sugar increased slightly during June. nous coal and copper continued in small vol- Early in July prices of meats were stronger, ume. Wool consumption and shoe production but there were further declines in many other increased slightly, and cement output, as in the commodities. preceding month, was at a high level. Bank credit.—Loans of reporting member Factory employment and pay rolls de- banks in leading cities declined somewhat creased further in June. The number em- between the middle of June and the middle of ployed at steel plants and in the automobile, July, and on July 16 were $60,000,000 smaller agricultural implement, and cotton-goods in- than five weeks earlier. Loans on securities dustries declined more than is usual at this decreased by $140,000,000, while "all other'7 season, and employment in the woolen-goods loans increased by $80,000,000. The banks' and lumber industries continued at unusually investments increased further by about low levels. $280,000,000 during this period and were in The value of building contracts awarded in larger volume than at any other time in the June, $600,000,000, according to the F. W. past two years. Dodge Corporation, was about 30 per cent Member bank balances at the reserve banks more than in May and the largest since last increased, and in the week ending July 19 July. The increase reflected chiefly unusually averaged $60,000,000 more than five weeks large awards for natural gas pipe lines and earlier, and at the same time their borrowings power plants; the volume of contracts for resi- from the reserve banks declined by nearly dential building was somewhat smaller than in $20,000,000—reflecting an increase in the May. In early July the total volume of con- reserve banks' holdings of acceptances and tracts was small. Government securities, a further slight growth Department of Agriculture estimates, based in gold stock, and a continued decline in the on July 1 conditions, indicate a decrease from volume of money in circulation. last year of about 20,000,000 bushels in the Money rates in the open market continued winter wheat crop and a corresponding in- to ease, and in the middle of July rates on 90crease in spring wheat. The corn crop is ex- day bankers' acceptances at 1% per cent were pected to be about 2,800,000,000 bushels, 7 per at a new low level, while rates on commercial cent larger than last year and 4 per cent above paper at 3-3% per cent were at the low point of the 5-year average. Area planted to cotton is 1924. estimated at 45,815,000 acres—2.7 per cent During July the reserve bank discount rate less than last year. was reduced at Boston from 3% to 3 per cent, Distribution.—The volume of freight car and at Philadelphia, Atlanta, and Richmond loadings in June and early July continued to from 4 to 3% per cent. 4519—30 2 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

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

AUGUST, 1930 FEDERAL RESERVE BULLETIN 489 RESERVE BANK CREDIT OUTSTANDING AND FACTORS IN CHANGES [Average of daily figures. In millions of dollars] Reserve bank credit outstanding Factors of decrease Factors of increase l Month or week B co il u ls n t d e i d s- bo B u il g ls ht s U e S c n t u i a r t t i e e t s d ies r c e O b r s e a t e h d n r e i v k t r e 2 Total s g to o c ld k c j u u r ( s r a t e e d n d - c ) y i M n la c o ti i n o rc e n u y - b M r a e b e l s a a m e n n r c b v k e e e s r d m e N e p e m t o o c s n . b i - t e s r , p U f e u n n n d e d e x s d - 1929—February 385 184 1,502 4,143 1,784 4,686 2,357 357 March 969 265 197 1,481 4,166 1,791 4,709 2,337 361 April -. 1,004 156 165 1,377 4,226 1,785 4,679 2,308 366 May... 956 145 153 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 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 1,450 4,381 1,785 4,810 2,386 392 November 953 296 315 1,631 4,374 1,789 4,845 2,521 395 December 803 320 446 1,643 4,324 1,797 4,943 2,395 399 1930—January 501 314 485 1,357 4,283 1, 784 4,652 2,349 394 February-. 378 285 480 1,181 4,319 1,781 4,556 2,305 393 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 247 182 529 996 4,505 1,779 4,497 2,356 398 June _ 251 141 571 1,000 4,528 1,775 4,489 2,392 395 July 226 154 583 1,003 4,532 1,789 4,483 2,417 Week ending (Saturday)— July 5 282 145 595 1,076 4,536 1,783 4,555 2,412 391 July 12 — 252 155 589 1,039 4,537 1,783 4,526 2,410 389 July 19 213 166 581 1,003 4,538 1,796 4,470 2,441 390 July 26 196 151 574 953 4,528 1,793 4,436 2,414 1 For explanation see BULLETIN for July, 1929, pp. 432-438. 2 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 1930 month Gold stock July (prelimi- Month at end ThroughThroughThrough From or to— nary) June January-June of net gold ear* domestic month Total import marking producex o p r ort o t p io e n ra s - ti e o t n c1 , 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 1928— D N O e o c c v to e e b m m e b r b e e r r 4 4 4 , , , 1 1 1 4 2 4 1 8 2 -1 1 1 4 3 7 . . . 0 2 3 2 1 6 3 3 . . . 7 3 3 — -1 2 5 1 5 . . 8 . 2 0 4 2 5. . . 7 3 8 E F G n r e a g r n m l c a a n e n d y 30,000 20 4 2 5 7 6 0 8,4 2 1 9 8 5 7 9 6 Italy 1 Total (12mos.)-- -237.9 -392. 0 119.6 34.5 Netherlands 9 Canada . 12,500 2,424 9 15,887 118 1929— A M F 'J e p a a b r r n i r c l u u h a a r r y y .. 4 4 4 4 , , , , 1 1 1 2 2 5 8 6 7 3 8 0 -1 2 3 7 4 6 4 2 . . . . 4 4 4 4 4 2 2 2 7 5 3 4 . . . . 2 5 1 8 -6 4 5 7 8 . . . 0 5 6 3 2 0 . . . . 9 4 7 1 M A C Br r e e a g n x z e t i i r n c l a o ti l n A a merica _ _ 6,062 1,69 7 9 1 5 11 9 , ,4 7 8 3 1 0 3 9 1 9 6 1 415 J J A S N M O u u e u o c n l a p y g t v y e o t u e e b s m m e t r b b _ e e r r _ 4 4 4 4 4 4 4 , , , , , , , 3 3 3 3 3 3 3 4 2 6 7 0 6 8 1 1 4 0 2 7 6 -1 4 2 1 1 1 1 9 0 3 6 4 8 2 . . . . . . . 2 4 6 3 4 9 1 -2 3 3 2 1 1 1 3 0 4 3 8 7 7 . . . . . . . 2 2 7 6 4 6 5 -2 - - - - 1 1 6 7 4 2 1 6 . . . . . . 0 6 5 5 0 . 0 1 0 0 3 2 1 1 1 . . . . . . . 7 9 4 5 1 3 6 V C E C P UC e c h o e hr r u i n u l i u l o n a e c e m d z au u _ o b a e r i v l a a a n . d Hong 3 3 1, , , 0 1 0 0 0 0 4 0 0 1,1 1 1 0 2 1 6 7 2 4 8 9 8 3 5 1 , , ,0 7 9 3 1 7 0 3 0 0 5 1 0 3 6 4 4 7 December.._ 4,284 -82.9 -64.4 -22.0 3.5 Kong _ 1,038 449 13 12,929 47 Total (12mos.)_. 142.4 175.1 -55.4 22.7 J D a u p t a c n h . _ E ast I _ n dies _. 2,189 7,0 1 1 7 5 1 114,0 7 3 7 2 3 50 1930— M F J e a a b n r r u c u a h a r . y ry 4 4 4 , , , 2 4 3 2 9 5 3 3 5 6 6 8 1 8 . . . 8 9 2 6 5 4 0 5 . . . 0 0 5 1 2 0 3 . . . 0 5 0 -0 2 1 . . . 3 9 3 P N A h e ll i w l o ip t Z h p e e in a r l e a c n o I d s u l n an tr d ie s s.. 1830 1 4 1 5 1 2 7 5 5 1 2 , , 7 4 1 6 5 0 7 5 2 91 A M p a r y il 4 4 , , 4 51 9 7 1 6 25 8 . . 9 5 6 2 5 3 . . 7 5 0 2 . . 5 0 0 2 . . 4 3 Total 2 17,223 42,501 13,938 26 232,199 9,663 June _- 4,535 17.6 13.9 2.0 1.7 July?-.. 4,516 -19.1 -25.3 -3.0 9.2 1 Includes all movements of unreported origin or destination. 2 At New York—imports, $13,996,000; exports, $42,501,000. Elsewhere— i For explanation of this figure, which is derived from preceding col" imports, $3,227,000. umns, see BULLETIN for December, 1928, p. 831. p Preliminary. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

490 FEDERAL RESERVE BULLETIN AUGUST, 1930 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 outsideleading citiesi Month Total New York City Total Chicago 1929 1930 1929 1930 1929 1930 1929 1930 1929 1930 1929 1930 Js.nus.rv 891 462 663 247 190 39 473 208 69 228 215 February 893 371 659 174 131 21 528 153 93 1 234 197 March 978 247 740 81 166 1 574 80 121 238 166 991 225 725 71 162 17 563 54 46 2 266 154 May 951 226 661 59 145 11 516 48 36 290 167 June - - -- - 972 222 670 53 165 5 505 48 64 302 169 JUly 1,100 218 801 53 319 482 50 47 • 2 299 166 August - - 1,013 717 196 521 32 296 SeDtember 974 706 166 540 18 268 885 634 74 560 38 251 NovpmbGr -« 944 655 60 595 28 289 755 490 80 410 37 265 -- i Includes (in small amounts) discounts by Federal reserve banks for nonmembers: (1) Bills discounted for intermediate credit banks and (2) notes secured by adjusted-service certificates discounted for nonmember banks. FEDERAL RESERVE BANK RATES OPEN-MARKET RATES DISCOUNT RATES RATES IN NEW YORK CITY [Rates on all classes and maturities of eligible paper] Prevailing rate on- Average rate Average yield on— on— Rate in Date Previous Federal reserve bank ef A fe u c g t . o 1 n l e i s s t h a e b d - rate Call loans 1 U.S. N B Ph o e i w s l t a o d n Y e o lp r h k i . a .- .. 2 3 1/2 J J J u u u l n l y y e 2 3 3 0 3 m Month or week m m p P 4 c e o a r o r p t i n o m c m e t i h r 6 - e a , s l a a P b c n e a r c 9 c i r n e m 0 s e k p ' s e - t , - l d T o a i a 9 y m n 0 s s e 2 , New ne R w e- al c T c n e a u a r o r n e t r t t e i y a d e f s s s i , - - b T o u r n r e d y a s s a - Cleveland June 7 4 days 3 to 6 4 months Richmond 3^2 July 18 4 Atlanta July 12 4 Chicago June 21 1929 4 St. Louis Apr. 12 July 6 5 Ms 7^-8 9 41 9 23 4 55 3 68 Minneapolis. _ Apr. 15 August.. 6 -6H 5Vs 8%-9 8.15 8 23 4 70 3 72 Kansas City_. Feb. 15 September 6H 514 8%-Q 8.62 8.50 M. 58 3.70 Dallas Apr. 8 41/2 October 634 5H 7 -9 6.10 6 43 4 37 3 67 San Francisco Mar. 21 41/2 November 5H-6H 3%-4% 4%-6 5.40 5.44 3.47 3.45 December 5 33/4-4 4%-5 4.88 4.83 * 3.03 3.46 BUYING RATES ON ACCEPTANCES 1930 January 4%-5 3%-4 434-0 4.31 4.64 3 39 3 51 [Buying rates at the Federal Reserve Bank of New York] February 4^-5 334-3% 4H-5 4.28 4.32 3.36 3 50 March 2^-334 334-4% 3 56 3 69 4 2 95 3 40 Rate in Date April .. ZH-A 2%-3 4 -4H 3 79 4 00 3 00 3 46 Maturity effect on estab- Previous May . 3H-4 2%-25A zu-zn 3.05 3.12 2 41 3 41 Aug. 1 lished rate June 3H-3M l7A-2% 21/2-S1A 2.60 2.62 4 1 89 3 37 July 3 -V/> 17A 23.4-3 2.18 2 20 1.83 3 37 Week ending—• 1-15 days-_. VA June 30 2 16-30 days-. VA—do 2 July 5 3H-31/2 1% 23/4 2.54 2.38 1.87 3.36 31-45 days._ VA--do..... 2 July 12 3 -3^ V/s 2H-2H 2.48 2.40 1.85 3.36 46-60 days.. VA July 21 2 July 19 3 -3H 1% 234-3 2.09 2.20 1.90 3.38 61-75 days-_ VA_._do 2 July 26 3 -3J4 VA 2^-3 2.00 2.00 1.84 3.37 76-90 days _. 2 June 30 21/4 91-120 days- 2lA June 20 234 1 Stock exchange call loans; new and renewal rates. 121-180 days 2% ...do 234 2 Stock exchange 90-day time loans. 3 3 issues—3%, 3%, 4 per cent; yields calculated on basis of last redemp- NOTE.—Rates on prime bankers' acceptances. Higher rates may be tion dates—1947, 1956, and 1954. 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

AUGUST, 1930 FEDEKAL RESERVE BULLETIN 491 PREVAILING RATES CHARGED CUSTOMERS BY BANKS IN PRINCIPAL CITIES WEIGHTED AVERAGES Eight other northern and Twenty-seven southern and New York City eastern cities western cities Month 1927 1928 1929 ]930 1927 1928 1929 1930 1927 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 4.48 4.90 5.57 6.08 4.81 5.52 5.77 6.17 5.62 August 4.41 5.56 6.05 4.87 5.59 6.11 5.53 5.80 6.22 September. 4.44 5.63 6.06 4.77 5.80 6.24 5.61 5.82 6.27 October... 4.49 5.63 6.08 4.79 5.80 6.25 5.56 5.87 6.29 November. 4.35 5.56 5.86 4.82 5.82 6.12 5.56 5.90 6.29 December. 4.50 5.63 5.74 4.76 5.91 5.94 5.60 5.91 6.20 NOTE.—Figures relate to rates charged by reporting banks to their own customers as distinguished from open-market rates (which are given on preceding page). All averages are based on rates reported for three types of customer loans—commercial loans, and demand and time loans on securities. The method of computing the averages takes into account (a) the relative importance of each of these three types of loans and (6) the relative importance of each reporting bank, as measured by total loans. In the two group averages the average rate for each city included is weighted according to the importance of that city in the group, as measured by the loans of all banks. PREVAILING QUOTATIONS Loans secured by prime stock- Loans secured by warehouse Prime commercial loans exchange collateral receipts Interbank loans Fedefal reserve bank or branch city May, June, July, May, June, July, May, June, July, May, June, July, 1930 1930 1930 1930 1930 1930 1930 1930 1930 1930 1930 1930 New York City 4H-4H 4^-5 41/3-6 41/3-5 4 -5 41,3-5 4 -5 Northern and Eastern Cities Boston 4J4-43 3H-4 41/2-51/ 4%-5 41/3-5 5 -6 5J/2-6 414-41/ 4 4 Buffalo 5 -6 5 -6 5 -6 6 51/2-6 6 -G 6 6 -6 5^i 5 -5 5 -51,3: Philadelphia 4H-5 4 -5 41/3-6 5 -6 41/3-6 5 -6 5 -6 51/3-6 41/2-51/2 4^3-5 4 -5 Pittsburgh 5 -6 4^-51/2 H6 51,3-6 5 -5} 6 6 6 5^3-6 5 -6 Cleveland 41/2-6 4 -6 4 -6 5 -6 5 -6 5 -6 5 -6 6 5 -6 5 -6 5 -51,3 5 -51/3- Cincinnati 5H-6 5 -6 5 -6 5j,3-6 5 -6 5 -6 6 -7 6 -7 5 -6 5 -6 5 -514 Detroit 5 -5^3 51/3-6 5 -6 6 6 5 -6 5%-6 Chicago 41/3-5 4J4-5 4 -5 5 -51/2 5 ~hVi 4 -hx/> 5 -5 41/3-5^3 4 -5 5 -5^ 5 -6 Southern and Western Cities Richmond. 41/2-5^2 41/3-51/2 5 -6 5 -51/2! 5 -5^3 Baltimore _ 5 -6 4^6 4^3-6 5-6 5-6 5 -6 Charlotte 51/2-6 6 5%-6 Atlanta 51/2-6 41/2-6 6 -7 51/3-6 5 -6 5 -5J 5 -6 6 5 -6 5 -6 J N N B a i e a c r w s k m h s v i o O n i n l g r v l l e h i e l a a l m e ns 5 5 6 - - - 6 6 7 6 6 5 5 - - - 6 6 7 6 4 5 1 / /2 - - 5 5 6 ? 6 6 - - 7 7 6 6 6 - - - 6 7 7 6 1,3 6 5 6 1 /3 - - - 7 8 6 6 5 6 ^ 3- - - 6 7 8 6 5 6 ^ Y 3- - - 6 7 8 5 5 1 /3 - - 6 6 6 6 I I i 5 -6 5 51 /3 - - 6 6 St. Louis 4 -5 4^-5 4 -5 5 -6 5 -6 5 -6 5 -6 5 -6 5 -6 5 -6 5 -6 5 -5^ Little Rock 6 -6i/2 6 6 6 -7 6 -7 6 -7 6 -7 6 -7 6 -7 6 6 Louisville 6 6 6 6 6 6 6 5 -6 5^3-6 5 -6 Minneapolis •1 4 -5 51/2-6 51/3-6 51/3-6 4J4-5 4 -4^3 4 -5 51,3-6 Helena 8 8 e -8 6 -8 6 -8 6 -8 6 -8 Kansas City... 5 -51/ 41/3-5 5^3-6 51/3-6 51/3-6 51/3-6 5 -6 51/2-6 51/3-6 5 -6 Denver 51/2-6 51/3-6 5 -6 6 6 6 6 -8 6 -8 6 -8 6 -61/3 6 6 Oklahoma City 6 8 8 8 6 -8 6 -8 6 -8 6 6 6 Omaha..- 5 -5J- 5 -5i/ 6 -61, 6 — 6 J-3 6 -6J- 6 6 6 6 6 Dallas 5 -6 5 -6 6 -7 6 -7 6 -7 5^3-6 5 -6 5^3-6 5 -6- El Paso 6 -8 6 -8 6 -8 6 -8 8 6 6 Houston. 6 6 6 6 6 6 -6^ 5 -6 5 -6 5 -6 San Antonio 6 -61/ 6 -7 6 -7 6 -7 6 -7 6 -8 6 6 San Francisco 5 -6 5 -6 5 -6 6 6 5^ 6 6 51/3-6 5 Los Angeles 6 6 6 -61/ 6 -6K2 6^3-7 61/3-7 6 -7 6 Portland 6 6 6 6 -61, 6 -7 6 -7 6 -7 6 Salt Lake City 6 6 6 6 7 6 7 Seattle 6 6 -6I/2 6 -6J- 61/3-7 61/3-7 7 Spokane. 6 6J,3-7 7 7 7 NOTE.—Rates shown are those at which the bulk of the loans of each class were made by representative banks during week ending 15th of month. Rates from about 200 banks with loans exceeding $8,000,000,000; reporting banks are usually the larger banks in their respective cities. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

492 FEDERAL RESERVE BULLETIN AUGUST, 1930 MEMBER BANK CREDIT BROKERS' LOANS REPORTING MEMBER BANKS REPORTED BY THE NEW YORK STOCK EXCHANGE [In millions of dollars. Monthly data are averages of weekly figures] [Net borrowings on demand and on time. In millions of dollars] I Loans and investments From New From private Loans Due r B i o n o w g r s - - End of month Total an Y d o p t r r k a u n s b i t e a s n co k m s - f b o a a r g n e e i k g n s n c , i b e b s r a o , n k e k e t i c r n . s g , Total Total O cu n r s i e - - All m v I e e n s n - t t - s ba t n o ks b F a a . n t R ; ks . 1929 1930 1929 1930 1929 1930 ties other January 6,735 3,985 5,664 1,071 616 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 May 6,665 4,748 5,482 4,139 1,183 609 Total: June 7,071 3,728 5,797 3,201 1,275 527 1929— J J M A S A u u e u p a l n p y g r y e i t u l e s m t ber.. 2 2 2 2 2 2 2 2 2 2 2 2 , , , , , , 4 4 6 1 2 3 7 6 4 1 3 8 9 5 6 3 1 8 1 1 1 1 1 1 6 6 6 6 6 7 , , , , , , 4 9 9 4 2 1 6 5 6 8 7 9 4 0 9 0 7 7 7 7 7 7 7 7 , , , , , , : 7 2 5 6 3 1 1 5 7 3 6 8 4 8 2 9 9 9 9 9 9 , , , , , , 1 2 0 3 5 0 4 3 5 9 4 7 9 4 9 0 3 3 5 5 5 5 5 5 , , , , , , 4 4 5 9 8 7 4 9 2 2 3 5 9 1 6 9 4 6 2 2 2 2 2 2 , , , , , , 6 7 7 5 5 7 0 0 3 3 4 1 4 9 8 2 5 8 8 6 7 7 7 6 0 0 1 7 2 6 1 6 7 0 5 1 J N A D S O u e o e u c l p c t y v g o t e e u e b m m s m e t b r b b e e e r r r 8 4 6 3 7 7 , , , , , 1 0 5 9 4 0 1 9 4 7 9 7 0 9 4 7 5 3 3 6 6 , , , , , , 3 1 3 4 0 4 5 1 7 3 7 9 4 3 0 2 7 2 3,227 1 1 1 , , , 3 4 3 7 5 6 9 2 7 8 9 2 0 0 2 5 6 0 462 October 23,124 17, 706 9,608 5,418 2,914 634 N De o c v e e m m b b e e r r... 2 2 3 3 , ,6 0 6 1 3 2 1 17 8 , , 4 0 4 4 4 1 8 7 , , 2 9 4 6 9 8 9 9 , ,4 7 7 9 6 2 5 5, , 5 6 6 2 7 3 3 2, , 8 0 8 0 6 8 4 6 9 5 0 5 1 Call loans, $3,021,000,000; time loans, $668,000,000. 1930—January 22, 368 16,821 7,794 9,027 5,548 2,828 247 February 22,083 16,542 7,671 8,871 5,541 2,818 174 MADE BY REPORTING MEMBER BANKS IN N. Y. CITY March 22, 352 16, 746 7,964 8,781 5,607 2,898 81 April 22, 657 16,901 8,270 8,631 5,756 2,940 71 {In millions of dollars. Monthly data are averages of weekly figures] May 22,662 16,825 8,312 8,513 5,837 2,870 59 June 23,024 17,048 8,568 5,977 3,063 53 For banks July 23,101 16,906 8,409 8,497 6,194 3,404 53 Ne 1 w 92 9 Y — o J J M r A u u k p a n l r y e y C il . i .. ty: 7 7 7 7 , , , , 1 2 2 4 8 9 8 9 2 1 7 6 5 5 5 5 , , , , 4 3 8 4 3 4 0 6 7 4 4 8 2 2 2 3 , , , , 7 7 6 0 2 4 5 4 9 9 3 5 2 2 2 2 , , , , 7 7 7 6 1 0 5 9 9 8 8 1 1 1 1 1 , , , , 8 8 8 6 5 3 1 9 9 8 2 2 8 8 7 9 7 1 9 3 4 7 6 5 1 1 3 1 6 1 4 6 2 9 5 5 Month or date Total Total C Y N I i o e n t w r y k i O C Y N u i o t e t s y r w i k d 2 e ot F h o e r rs August 7,407! 5,688 2,845 2,843 1,720 827 196 September... 7,507 5,803 2,892 2,911 1,704 887 166 1929—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 8,349 6,380 3,340 3,040 1,132 60 August.... 6,069 2,778 993 1,786 3,290 December 8,001 6,021 3,112 2,909 1, 981 980 80 September 6,540 2,898 1,048 1,850 3,642 1930—January 7,664 5,705 2,945 2,760 1,959 931 39 October... 6,498 2,896 1,257 1,639 3,602 | February 7,493 5,584 2,909 2,675 1,909 902 21 November. 4,023 1,869 1,090 779 2,154 March 7,649 5,720 3,115 2,605 1,929 952 1 December. 3,391 1,601 888 713 1,790 April 7,829 5,868 3,383 2,485 1,961 982 17 1930—January... 3,351 1,706 844 862 1,644 Hf May 7,852 5,878 3,459 2,418 1,974 931 11 February.. 3,459 1,913 942 971 1,546 i 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 July 8,078 5,984 3,558 2,426 2,094 1,100 April 4,115 2,740 1,557 1,183 1,376 Other leading cities: May 4,030 2,727 1,665 1,062 1,302 ^1929—April 15,092 11,027 4,663 6,364 4,065 1,835 563 June 3 3,825 2,748 1,831 917 1,078 May 14,931 10,933 4,565 6,368 3,998 1,728 516 June 14,950 11,012 4,582 6,430 3,938 1,736 505 July 2 3,219 2,364 1,710 654 856 July 14,983 11,146 4,670 6,476 3,837 1,803 482 July 9 3,203 2,323 1,563 760 880 August 15,058 11,281 4,734 6,547 3,776 1,777 521 July 16.... 3,243 2,395 1,596 799 847 September. _. 15,139 11,394 4,762 6,632 3,745 1,830 540 July 23.... 3,226 2,395 1,619 776 832 October 15,288 11, 598 6,692 3,690 1,891 561 July 30.... 3,228 2,414 1,669 745 814 November... 15,314 11, 661 4*909 6,752 3,654 1,875 594 December 15,011 11,424 4,856 6,568 3,587 1,906 410 1930—January 14, 705 11,115 4,849 6,267 3,589 1,897 208 1 Weekly reporting member banks in New York City. February 14, 590 10, 958 4,762 6,196 3,632 1,916 152 2 Member and nonmember banks outside New York City (domestic March 14, 703 11,026 4,850 6,176 3,677 1,946 80 banks only); includes unknown amount for customers of these banks. April 14,828 11,033 6,146 3,795 1,959 54 s Call loans, $3,204,000,000; time loans, $622,000,000. May 14,810 10.948 4^853 6,095 3,862 1,939 48 J J u u l n y e 1 1 5 4 , , 0 9 2 0 3 7 1 10 0 , . 9 9 4 2 9 2 4 4 , , " 8 " 5 " 1 6,071 4 3 , , 1 9 0 5 1 8 2 2 , , 3 0 0 5 4 4 4 5 8 3 ACCEPTANCES AND COMMERCIAL PAPER [In millions of dollars] BY WEEKS Total: Bankers' acceptances out- Commercial paper out- 1930—June 25 23,140 17,059 8,487 8,572 6,081 3,098 standing standing . July 2 23,080 16,960 8,442 8,517 6,120 3,401 End of month J Ju u l l y y 9 16 2 23 2 , , 1 9 0 8 6 7 1 16 6 , , 9 8 0 6 6 9 8 8, , 4 3 2 6 4 7 8 8 , , 5 4 0 8 2 2 6 6 , , 1 2 1 0 8 0 3 3, , 3 3 9 9 4 2 1927 1928 1929 1930 1927 1928 1929 1930 July 23 23,096 16,852 8,398 8,454 6,243 3,467 July 30 23, 236 16,945 8,416 6,291 3,365 January 774 1,058 1,279 1,693 551 577 407 404 New York City: February 785 1,056 1,228 1,624 577 567 411 457 1930—June 25 8,229 6,158 3,696 2,462 2,072! 1,047 March 809 1,085 1.205 1,539 606 570 387 529 July 2 8,123 6,058 3,652 2,406 2,065 1,131 April 811 1,071 L, 111 1,414 599 571 351 553 July 9 V " 5,916 3,498 2,418 2,0631 1,103 May 775 1,041 L 107 1,382 582 541 304 541 July 16 8,014 5,944 3,518 2,426 2,070| 1,061 June 751 1,026 1 113 1,305 579 503 274 527 July 23 8,070 5,952 3,537 2,415 2,1191 1,132 July 741 978 1,127 569 483 265 July 30 8,202 6,050 3.586 2,464 2,152 1,072 August 782 952 L, 201 591 458 267 Other leading cities September. .. 864 1,004 L, 272 600 430 265 1930—June 25 14,911 10,901 4,791 6,110 4,010 2,051 October 975 1,123 L, 541 611 427 285 July 2 14,957 10,901 4,790 6,111 4,056 2,270 November 1,029 1,200 L,658 603 421 316 July 9 15,008 10,953 4,867 6,085 4,055 2,289 December.. .... 1,081 1,284 1,732 555 383 334 July 16 15,091 10,962 4,906 6,056 4,130 2,333 July 23 15,025 10,900 4,861 6,039 4,125| 2,335 July 30 15, 034 10,895 4,830 6,065 4,139 2,293 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

AUGUST, 1930 FEDERAL RESERVE BULLETIN 493 SECURITY PRICES, SECURITY ISSUES, AND BUILDING CONTRACTS SECURITY PRICES [Index numbers of Standard Statistics Co. Monthly data are averages of weekly figures] Common stocks (1926=100) Pre- Selected groups of industrial issues Month or date Bonds1 ferred stocks2 Total In tr d ia u l s- R ro a a i d l- P ut u i b li l t i y c m A o u b to il - e e B q i u n u i g i l p d - - C st h o a r i e n C i h c e a m l - C a p o n e p d r - e t E q ri l u c e i a c p l - - c M e h r i a y n - - Oil Steel T ti e l x e ment brass ment Number of issues 60 20 404 337 33 34 13 17 10 16 10 30 1929—June 95 3 127.7 191 149 145 233 242 158 145 270 271 159 144 188 122 July_ 95 2 127.0 207 203 160 273 241 169 148 315 281 360 172 149 212 120 August 95 0 126.3 218 210 165 304 241 165 149 320 289 405 177 158 238 118 September. 94 8 126.8 225 216 168 321 241 172 155 238 294 399 191 167 244 114 October 95.1 126.4 202 194 157 277 196 152 139 305 259 345 172 161 217 103 November. 95 7 123.9 151 145 135 195 134 114 104 214 204 227 135 131 169 78 December. 96 5 126.4 154 147 136 201 134 113 106 228 196 241 143 132 170 77 1930—January 96 5 126.5 156 149 137 209 135 117 102 240 193 265 146 129 177 78 February... 96 4 126.9 166 156 143 231 145 125 100 254 193 307 154 128 188 85 March 97 8 127.8 172 163 143 242 155 125 100 266 193 323 161 141 192 85 April 97.9 128.2 181 171 142 264 162 127 101 282 174 359 173 156 196 83 May 97.9 127.6 171 160 136 250 152 116 97 257 151 237 170 148 174 77 June 98.2 126.8 153 143 125 224 134 100 90 223 135 290 152 133 161 69 July 98.7 125.9 149 140 124 215 132 98 89 217 129 277 155 133 159 67 July 2 98.2 126.1 146 136 122 211 122 96 87 215 129 271 153 129 155 July 9 98.4 125.8 144 135 122 208 125 96 86 206 129 266 151 130 154 July 16 98.7 125.6 153 143 126 220 138 100 90 221 128 284 157 137 162 July 23 99.0 126.1 154 144 ]27 221 140 91 226 131 287 156 136 164 July 30 99.1 125.8 150 141 124 217 136 90 217 129 276 155 133 160 1 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-June January-June June, 1930 June, 1930 1930 1929 1930 1929 Class of issue Class of issue Re- Re- Re- Gov- Cor- Gov- Cor- Gov- Cor- New fun d- New fund- New fund- po- ern- po- ern- poing ing ing ment rate ment rate Total 527.9 48.7 4,086.3 267.9 4,804.5 859.4 Total _ 203.4 31.8 577.7 19.9 199.3 342.4 Corporate issues 377.8 47.4 3,321. 2 256.2 4,153.8 852.1 New issues __ 193.4 31.8 492.3 183.8 326.9 Bonds and notes- Europe _ 42.8 101.7 36.6 73.6 49.5 Long-term 156.4 42.3 1,810. 6 190.5 1,163. 5 374.7 Canada and Newfound- Short-term 69.0 2.5 290.7 52.3 113.5 21.9 land 95.4 32.8 63.3 69.4 Stocks 152.4 2.6 1, 219.9 13.4 2, 876. 8 455.5 Latin America 131.5 17.6 44.9 40.5 Farm-loan issues 7.5 30.5 U. S. insular possessions.. 103.8 106.5 2.0 7.7 Municipal issues 142.6 1.3 734.6 11.7 650.7 7.3 Miscellaneous 4.8 23.1 57.3 182.9 159.8 Total new and re- Refunding issues 10.0 85.3 15.5 funding 576.6 4,354.1 5, 663.9 Total Government and corporate 235.3 847. € 541.7 BUILDING CONTRACTS AWARDED, BY TYPES OF BUILDING [Value of contracts in millions of dollars! Public works and Total Residential Industrial Commereial public utilities Educational All other 1929 1930 1929 1930 1929 1930 1929 1930 1929 1930 1929 1930 1930 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 31.2 27.3 28.2 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 642.1 483.3 256.8 123.1 68. 2 i 38.1 780 73.2 152.1 149.7 29.9 35.4 57.1 63.7 May _ 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 June 545.9 600.6 189.8 96.8 70. 0 93. 6 80.9 59.1 120.8 251.9 43.4 48.9 40.9 50.2 Year to date 3, Q31. 8 2, 638. 4 1,103.3 579.4 394.1 332.4 489.6 409.6 608.0 839.7 189.3 196.8 247.5 280.4 July 652. 4 199. 9 66.6 1 91.3 194.5 48.0 52.0 Ausiist 488 9 146 1 75 3 i 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 i 137.7 60.9 i 67.7 85.1 36.9 57.3 November 391.0 I 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

494 FEDERAL RESERVE BULLETIN AUGUST, 1930 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 B n t w u r g e a a i d r c c l t d o d s n - - - m p t F e l e o a m o r n c y - y t - - r t F p o o a a l r c l y y - s Total M l e e r s c s h -t a h n a d n i -c s a e r i - n prices t load lots c A o l m l - Farm mod- prodities ucts Unad- Ad- Unad- Ad- Unad- Ad- Unad- Unad- Unad- Unad- Ad- Unad- Adjusted justed justed justed justed justed justed justed justed justed justed justed justed 1919.-. 83 84 77 64 107 98 84 139 158 1920 87 87 89 63 108 118 91 72 154 151 1921 67 67 70 57 82 77 79 87 98 88 1922 85 87 74 81 90 81 86 93 97 94 1923 101 101 105 84 104 103 100 96 101 99 1924 95 94 96 95 96 96 98 99 98 100 1925 104 105 99 122 100 101 103 104 104 110 1926 108 108 108 130 101 104 107 107 100 100 1927 106 106 107 128 99 102 103 105 95 99 1928 111 111 106 135 97 102 103 104 98 106 1929 118 119 115 117 100 107 106 104 97 105 1926 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 99 104 107 106 100 102 April 108 107 110 107 96 108 139 102 105 98 107 107 106 100 103 May 107 106 108 106 103 104 134 101 104 106 107 108 105 101 102 June 106 108 106 108 109 106 133 101 104 110 109 108 107 101 101 July 103 107 102 107 110 107 126 99 99 111 108 106 106 100 99 August 109 110 108 111 115 109 148 101 104 113 108 107 106 99 97 September 113 112 112 112 119 110 137 103 105 122 109 112 107 100 99 October.. ._ 114 111 112 111 124 114 126 103 108 123 109 112 107 99 98 Nnvfvmhftr 110 108 108 106 123 118 119 101 105 113 109 110 108 98 95 December 101 105 99 103 113 119 131 100 104 98 107 103 108 98 95 1927 January 105 106 104 105 112 116 94 98 99 97 105 100 108 97 97 February 111 108 110 107 113 117 96 100 105 100 109 104 109 96 95 March 113 111 113 110 111 118 151 100 106 102 108 108 107 95 94 April 110 109 112 109 96 107 147 100 105 100 108 108 107 94 94 May. . 112 111 113 111 108 109 135 99 104 105 106 106 104 94 96 June 107 108 107 109 108 105 154 99 102 106 104 105 104 94 97 July 102 106 102 107 103 100 130 98 99 104 101 104 104 94 98 August -. 105 107 104 107 111 106 135 99 102 109 104 105 104 95 102 September 107 105 106 105 111 104 127 101 102 116 104 110 104 97 106 October. 105 103 104 102 112 105 137 99 103 114 101 109 105 97 105 November 101 99 100 99 105 101 114 97 98 101 97 106 104 97 104 96 100 95 99 97 103 116 95 99 88 95 98 103 97 104 1928 January 105 106 106 106 100 103 104 94 96 92 100 98 106 96 106 February 111 109 114 110 99 103 113 96 101 94 102 101 105 96 105 March 112 110 115 111 98 103 144 97 103 97 102 105 104 96 104 April 110 109 113 110 94 105 157 96 100 96 104 105 104 97 108 May 110 109 111 109 104 105 163 96 101 104 105 106 104 99 110 June ._ 108 109 109 111 104 101 158 96 101 103 102 105 103 98 107 July 105 110 106 111 103 101 142 96 98 105 102 104 104 98 107 August. 110 112 110 113 111 105 126 98 103 109 104 104 103 99 107 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 97 102 108 113 109 114 106 112 105 98 104 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 99 107 101 105 97 105 March 121 118 125 120 101 107 118 101 111 98 103 106 105 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 98 108 August __ 121 123 121 125 121 115 119 102 109 114 109 106 105 98 107 September 123 122 122 122 127 118 108 103 111 121 108 110 105 98 107 October 120 117 119 117 127 118 109 102 110 118 104 109 105 96 104 November 108 106 107 105 114 110 95 98 102 102 99 106 104 94 101 December 95 99 92 96 110 116 77 95 99 90 97 96 101 94 102 1930 January 103 104 102 102 107 112 79 93 94 89 97 94 102 93 101 February 109 107 110 107 104 109 77 93 97 92 99 98 102 92 98 March 106 104 109 105 91 96 111 93 98 90 95 101 100 91 95 April 107 106 110 107 93 104 118 92 97 93 101 101 100 91 96 May 105 104 106 104 102 103 111 90 94 97 98 101 99 89 93 June __ *100 P 101 PlOO »100 146 88 90 95 94 98 97 87 89 * 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. 517. » Preliminary. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

495 AUGUST, 1930 FEDERAL RESERVE BULLETIN INDUSTRIAL PRODUCTION, BY INDUSTRIES [Index numbers of the Federal Reserve Board. Adjusted for seasonal variations. 1923-1925 average=100] 1920 1930 Industry Apr. I May June July Aug. Sept. Oct. Nov. Dec Jan. Feb. Mar. Apr. May June MANUFACTURES IRON AND STEEL 136 145 155 152 143 140 124 100 90 119 113 114 111 110 Pig iron 117 126 127 131 128 122 118 107 95 94 101 102 102 104 101 Steel ingots 137 147 158 154 144 142 125 100 90 100 120 114 115 112 111 TEXTILES..- 120 121 121 118 120 116 118 108 96 103 99 98 96 90 84 Cotton consumption 119 125 122 119 119 115 117 104 90 102 94 94 100 91 85 Wool 101 102 101 97 101 98 101 89 77 78 76 71 72 70 71 Consumption 106 109 107 109 114 106 109 94 80 85 81 77 80 74 78 Machinery activity i 92 93 85 86 89 91 82 74 72 73 65 62 69 73 Carpet, rugloomactivityi. 98 95 83 90 90 96 88 75 69 70 66 66 60 49 Silk 149 138 149 146 150 148 148 145 140 141 145 150 125 117 100 Deliveries 159 142 160 156 161 158 158 153 148 145 149 155 123 121 99 Loom activity! 129 130 128 127 130 128 130 128 124 133 138 140 128 111 102 FOOD PRODUCTS 103 97 96 96 100 98 96 96 95 96 94 90 97 98 93 Slaughtering, meat packing.. 99 92 90 94 93 101 97 95 91 92 85 94 94 90 Hogs 100 94 90 94 106 104 101 96 93 93 94 88 Cattle 93 86 87 88 91 82 81 87 86 89 90 Calves 102 91 83 85 99 88 91 97 92 92 100 86 Sheep 119 125 117 124 126 126 125 125 113 116 132 141 147 142 137 Flour 107 113 109 101 107 91 92 94 92 97 101 105 r 104 104 Sugar meltings 111 90 103 94 113 84 99 106 111 127 94 90 96 105 84 PAPER AND PRINTING 124 127 128 r125 125 130 126 123 118 ' 122 ' 122 121 122 119 Wood pulp and paper ' 120 122 ' 119 r 121 119 121 120 118 113 '118 '11*5 '116 116 113 Newsprint 93 93 92 91 95 94 94 92 93 95 97 91 86 89 Book paper 135 134 133 138 134 143 145 139 139 140 '125 128 133 120 119 Fine paper 118 119 120 122 118 119 119 120 116 118 118 121 116 111 105 Wrapping paper 103 109 107 101 101 101 96 97 95 93 92 99 98 99 95 Paper board '138 ' 144 ' 131 "136 '131 128 '130 '131 107 ' 128 '131 '126 132 133 Wood pulp, mechanical.. 91 92 100 103 101 100 91 85 91 96 111 106 89 90 97 Wood pulp, chemical 115 120 118 117 120 120 118 113 116 115 119 117 114 115 110 Paper boxes.. 151 150 180 152 169 178 156 144 125 147 '147 ' 149 '149 '151 173 Newsprint consumption 132 137 142 131 135 148 139 133 134 131 137 130 132 132 132 TRANSPORTATION EQUIPMENT: Automobiles 153 148 162 142 143 133 113 81 49 103 110 109 I 109 104 Locomotives 53 55 46 59 55 49 57 45 32 39 40 48 ! 51 43 Shipbuilding 62 93 130 156 175 101 75 69 97 170 102 80 i 128 147 LEATHER AND PRODUCTS 101 113 114 117 116 113 106 93 96 98 ! 99 94 Tanning 93 106 105 103 105 108 103 99 93 98 ! 99 99 '103 Sole leather i 84 86 93 94 94 95 94 101 97 99 100 Upper leather- Cattle 76 78 i 74 75 83 66 72 Calf and kip 93 96 ! 104 111 108 102 i 100 88 70 76 85 95 Goat and kid 123 116 153 158 136 144 147 145 151 129 127 136 131 128 Boots and shoes 100 106 118 120 125 123 | 117 108 90 97 97 91 97 CEMENT AND GLASS: Cement 110 111 116 118 122 118 113 109 110 108 110 111 108 119 Glass, plate 144 146 154 164 168 174 172 149 117 124 122 117 131 143 NONFERROUS METALS 2 138 137 126 127 122 125 122 119 113 105 101 104 105 101 Copper (smelter) 147 145 130 133 126 127 125 126 122 110 103 103 103 101 94 Tin (deliveries) i 142 145 137 123 120 131 125 112 106 92 117 132 107 FUELS, MANUFACTURED: Petroleum refining 165 168 170 171 176 178 171 166 163 168 168 174 173 170 Gasoline i 194 196 199 205 209 215 209 201 199 204 204 214 213 210 Kerosene 93 103 110 95 108 103 93 90 89 96 99 93 90 90 Fuel oil i 141 140 140 138 142 141 142 136 132 121 125 117 121 123 117 Lubricating oil i 125 126 126 123 131 123 121 110 115 120 126 130 138 133 126 Coke (by-product) 144 149 151 151 152 147 146 139 131 132 136 135 138 137 132 RUBBER TIRES AND TUBES ._ 161 158 162 141 119 116 114 94 80 106 107 105 123 121 v Hfi Tires, pneumatic 166 163 167 146 123 120 117 97 82 109 110 108 127 125 v 122 Inner tubes 126 121 125 105 87 90 87 74 70 85 85 84 97 96 P gj TOBACCO PRODUCTS 142 142 139 131 133 136 135 130 133 131 133 128 136 134 141 Cigars 109 101 100 97 99 100 99 83 92 87 92 94 91 Cigarettes 173 178 172 160 163 168 168 172 166 161 172 167 183 MINERALS COAL: Bituminous 102 104 102 102 99 103 103 104 100 92 97 92 89 Anthracite 95 86 76 72 81 106 116 92 121 106 101 69 73 81 78 Petroleum, crude 132 134 135 143 145 140 140 131 132 ! 132 135 125 128 127 124 Iron ore shipments 143 126 119 121 121 107 98 104 108 Copper (mined) 142 139 124 122 119 125 123 118 115 I 101 95 90 90 85 Zinc 116 121 120 124 127 120 119 106 98 | 104 98 94 94 99 Lead 125 122 112 114 107 119 115 114 105 j 92 106 107 104 105 Silver 103 93 94 91 114 87 ' 80 81 i Without seasonal adjustment. 2 Includes also lead and zinc; see " Minerals." » Preliminary. r Revised. NOTE.—The combined index of industrial production is computed from figures for 58 statistical series, 50 of manufactures, and 8 of minerals most of which are shown in this table. Adjustments have been made in the different industries for the varying number of working days in each month and for customary seasonal variations, and the individual products and industries have been weighted in accordance with their relative importance. The sources of data and methods of construction were described in the BULLETIN for February and March, 1927. 4519—30 3 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

496 FEDERAL RESERVE BULLETIN AUGUST, 1930 FACTORY EMPLOYMENT AND PAY ROLLS INDEXES OF FACTORY EMPLOYMENT AND PAY ROLLS [ Without seasonal adjustment. Monthly average 1923-1925=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 88.2 102.5 100.9 109.2 90.3 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 September 100.6 100.3 103.4 101.9 104.2 110.5 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 December 95.5 98.1 94.8 ... . 99.4 104.2 98.7 80 Annual in- 1923 1924- 1925 1926 1927 1928 1929 1930 dex 98 8 97 2 100 4 102 0 101 8 107 2 Seasonal adjustment provisional FACTORY EMPLOYMENT: INDEXES BY GROUPS Transportation Month s I a r t n e o e d n l 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 n u b t t i o le - s L p e u a r a n c o t t d d h s - er m c g a C l l e n a a e n s d y - s t , , N m r o e o n t u a f s e ls r- Gr C ou h p emi P c le a e u l t s r m o- R p u u r c b o t b d s - er b p u T a r c o c o t c d - s o refining 1929—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 85.9 110.6 120.8 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 June.. _ _ 90.0 100.1 83.6 95.6 101.5 71.7 80.2 88.8 84.5 80.4 80.2 101.8 114.0 88.0 89.2 FACTORY PAY ROLLS: INDEXES BY GROUPS Transportation Month I s a r t n e o e d 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 n c o t t d d h s - er m c g a C l l e n a a e n y s d - t s , , N m r o o e n t u f a s e l r s - Gr C ou h p emi P c l a e e l u t s r m o- R p u u r c b o t b d s - er b p u T a r c o c o t c d - s o refining 1929—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 June 90.8 102.7 77.8 102. 3 111.9 70.9 83.8 89.2 73.8 76.1 85.0 105.3 121.7 88.3 84.4 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

AUGUST, 1930 FEDERAL RESERVE BULLETIN 497 BANKING AND BUSINESS CONDITIONS IN FEDERAL RESERVE DISTRICTS FEDERAL RESERVE BANK DISCOUNTS-BY DISTRICTS UllUOHS OF DOLLARS ( Weekly report date figures ) MILLIONS OF DOLLARS 1926 1927 1928 1929 1930 1926 1927 1928 1929 1930 Latest figures are for July 30; see table on following page Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

498 FEDERAL RESERVE BULLETIN AUGUST, 1930 FEDERAL RESERVE BANKS—RESERVES, DEPOSITS, NOTE CIRCULATION, AND RESERVE PERCENTAGES [Averages of daily figures. Amounts in thousands of dollars] Federal reserve notes in Total cash reserves Total deposits circulation * Reserve percentages Federal reserve bank 1930 1929 1930 1929 1930 1929 1930 1929 July June July July June July July June July July June July Boston --- 244,623 244,110 226,529 151, 387 149,559 149,503 145, 339 150,669 152, 796 82.4 81.3 74.9 New York 995,481 1,000,724 1,021,197 1,010,955 947,997 163,698 181,080 313,054 84.0 84.0 68.9 Philadelphia- 224, 764 224,669 223,105 141, 777 141,639 137,442 127,813 131, 364 153, 745 83.4 82.3 76.6 Cleveland 332, 828 331,297 305,870 205,177 200,902 190,197 189, 861 187,036 202,244 84.3 85.4 77.9 Richmond 102,630 89,299 67,694 67,952 65, 062 66, 513 73,301 73.8 76.3 6S.0 Atlanta 139, 462 148,344 132, 785 63,33-5 64,149 63, 967 119,437 127,120 140, 969 76.3 77.6 64.8 Chicago 467,890 491,505 567,505 356,113 354,982 352,011 191,832 210, 289 335,250 85.4 87.0 82.6 St. Louis 114,241 116,227 78,175 79, 235 78,992 79,087 71,268 73,213 60,158 75.9 76.4 56.1 Minneapolis. ._ 72, 626 77,680 93,672 51,828 53,457 53,975 52, 726 54,699 66,022 69.5 71.8 78.1 Kansas City... 118, 571 124,274 129, 960 90, 656 89,660 93,698 69,930 70,877 74,013 73.8 77.4 77.5 Dallas 55,770 60,458 66,697 60,739 61,919 64,204 31,936 31,961 42, 883 60.2 64.4 62.3 San Francisco . 305, 570 290,921 296,193 187,586 183, 523 184, 550 161, 365 156,482 174,257 87.6 85.6 82.5 Total 3,169,856 3,212,839 3,078,382 2,476,724 2,457,689 2,384,979 1,390,267 1,441, 303 1, 788, 692 82.0 82.4 73.8 1 Includes "Federal reserve notes of other Federal reserve banks" as follows: Latest month, $20,707,000; month ago, $20,208,000; year ago $23,427,000. ALL MEMBER BANKS—DEPOSITS SUBJECT TO RESERVE, RESERVES HELD, AND INDEBTEDNESS AT FEDERAL RESERVE BANKS [Averages of daily figures. In millions of dollarsl Reserves held Net demand deposits Time deposits _ Indebtedness at Fed- ! eral reserve banks Federal reserve district Total Excess May April May April May April May April May April Boston 1,342 1,363 970 970 145.2 147.1 1.4 17.7 15.6 I\ew York 7,134 7,067 3,389 3,355 962.7 952.8 9.8 58.0 53.7 Philadelphia.. 1,137 1,147 1,121 1,112 134.8 135.5 2.1 29.8 28. a Cleveland 1,520 1,509 1,663 1,666 189.9 188.0 3.4 21.0 26.4 Richmond 535 543 556 554 63.9 63.9 1.6 17.2 15.9 Atlanta 550 564 450 440 63.0 65.0 3.2 26.9 18.7 Chicago. _____ 2,604 2,604 2,092 2,076 346.9 345.8 7.5 20.7 22.7 St. Louis 676 685 532 535 77.5 78.6 2.1 15.5 13.9 Minneapolis.. 423 428 451 455 51.0 51.3 2.7 3.6 3.1 Kansas City.. 829 831 368 362 87.4 87.8 4.1 14.3 12.2 Dallas 623 630 241 237 61.4 61.5 2.1 8.7 7.9 San Francisco 1,269 1,283 1,750 1,744 172.8 172.3 2.3 11.8 12.8 Total.. . 18,645 18, 653 13, 584 13,506 2, 356. 4 2, 349. 5 45.1 42.4 245.2 231.1 DISCOUNTS OF FEDERAL RESERVE BANKS, BY WEEKS DISCOUNTS OF FEDERAL RESERVE BANKS, BY MONTHS [In thousands of dollars] [Averages of daily figures. In millions of dollars] Federal reserve bank July 2 JulyQ July 16 July 23 July 30 1930 1929 Federal reserve bank July June July Boston 17, 590 15,447 11,416 8,895 10,000 New York___. 48, 621 47, 254 31,445 28, 935 33,430 Boston _ 12.6 17.3 78.4 Philadelphia__ 30,122 25,638 23, 584 20, 972 20,590 New York.... 44.0 57.1 408.6 Cleveland 31,922 28, 965 24,106 17,434 19,036 Philadelphia.. 24.4 28.1 77. a Richmond 22, 649 19,589 18,305 19,446 19,419 Cleveland 24.9 23.6 84.0 Atlanta 29,552 28,940 30,146 27,628 28,343 Richmond 19.8 19.7 57.5 Chicago 19,840 18, 756 18,475 17, 321 16, 740 Atlanta 28.9 30.4 69.0 St. Louis 16,019 16,556 16,406 17, 303 13,135 Chicago 19.0 18.1 122.1 Minneapolis. - 4,629 4,051 4,118 4,251 4,335 St. Louis 16*3 18.1 55.8- Kansas City.. 11, 577 11,178 10,085 9,755 9,441 Minneapolis.. 4.2 3.8 17.4 D Sa a n l la F s rancisco. 1 1 7 0 , , 8 0 1 7 9 3 1 8 0, , 3 5 9 4 2 9 1 7 1 , , 9 0 3 0 7 7 12 8 , , 4 2 0 2 6 4 1 9 2 , , 8 8 1 1 7 5 D K Sa a a n l n l s a F a s r s a n C c i is ty co .. . 1 1 1 0 1 0 . . . 4 5 0 1 1 1 4 0 0 . . . 2 6 2 3 3 5 0 . .2 a 60.1 Total... 260,413 236, 315 207,080 190, 570 197,10] TotaL. _ 226.0 I 251. 2 1,095. 6 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

AUGUST, 1930 FEDERAL RESERVE BULLETIN 499 PRINCIPAL RESOURCES AND LIABILITIES OF WEEKLY REPORTING MEMBER BANKS IN LEADING CITIES, BY WEEKS [In millions of dollars] Federal Reserve District City Total B to os n - Y N o e r w k P p d h h e i l i l - a a- C l l a e n v d e- m Ri o c n h d - l A a t nt - a c C a h g i o - Lo S u t i . s n M o ea l i i n p s - - j K C s i a a ty n s _ - Dallas F c S i r s a a c n n o - Y N o e r w k c C a h g i o - Loans and investments: July 2 23,080 1,529 9,417 1,247 2,259 653 597 3,328 659 356 641 443 1,952 8,123 1,964 July9 22, 987 1,530 9,266 1,257 2,263 649 593 3,362 671 354 650 441 1,949 7,979 2,004 July 16 23,106 1,534 9,297 1,263 2,288 644 593 3,400 669 353 661 436 1,964 8,014 2,034 July 23 23, 096 1,523 9,342 1,256 2,284 642 590 3,402 667 350 654 438 1,948 8,070 2,044 July 30 23, 236 1,532 9,467 1,255 2,288 648 591 3,403 352 652 436 1,942 8,202 2,045 Loans: July 2 16,960 1,160 921 1,534 473 462 2,597 506 231 420 330 1,337 6,058 1,532 July9 16, 869 1,162 6,837 932 1,529 472 459 2,640 516 229 431 329 1,333 5,916 1,579 July 16 16, 906 1,149 6,865 938 1,524 468 458. 2,655 515 229 440 328 1,336 5, 944 1,587 July 23 16, 852 1,139 931 1,510 464 455 2,664 512 225 433 328 1,332 5,952 1,609 July 30 16, 945 1,148 6,951 925 1,510 466 456 2,658 517 228 430 328 1,329 6,050 1,605 On securities- July 2 8,442 525 4,116 479 745 184 148 1,280 237 80 119 430 3,652 905 July 9 8,367 531 3,962 489 744 185 147 1,322 247 79 130 99 432 3,498 948 July 16 8,424 524 3,977 506 754 186 148 1,316 247 81 140 99 445 3,518 937 July 23 8,398 512 3,986 508 738 185 146 1,333 241 132 100 440 3,537 964 July 30 8,416 510 4,032 504 734 181 149 1,324 243 127 433 3,586 958 All other- July 2 8,517 635 2,870 442 789 289 314 1,317 270 151 301 232 2,406 July 9 8,502 631 2,875 443 785 288 312 1,318 150 301 230 2,418 630 July 16 8,482 625 2,887 432 771 281 310 1,339 148 300 230 2,426 650 July 23 8,454 628 2,874 422 772 278 308 1,331 270 147 301 230 892 2,415 645 July 30 8,529 638 2,918 421 777 284 307 1,334 274 148 303 229 896 2,464 647 Investments: July 2 6,120 369 2,431 326 725 180 135 731 152 125 220 113 615 2,065 433 July9 6,118 368 2,429 325 734 177 134 722 155 126 220 112 616 2,063 425 July 16 6,200 385 2,433 325, 764 176 135 745 154 124 220 110 627 2,070 447 July 23 6,243 384 2,482 325 774 178 135 738 155 125 222 110 616 2,119 435 July 30 6,291 385 2,517 330 778 182 135 744 152 124 222 109 613 2,152 440 U. S. Govt. securities—• July 2 2,851 157 1,210 85 340 83 62 318 35 72 94 66 331 1,095 170 July 9 2,861 156 1,207 83 348 80 63 327 35 72 94 65 333 1,088 180 July 16 2,915 170 1,213 83 364 80 62 340 33 71 63 341 1,096 193 July 23 2,930 168 1,229 79 374 81 62 344 32 72 64 333 1,110 194 July 30 .... 2,932 166 1,242 79 373 82 61 346 30 70 62 328 1,122 195 All other— July2 3,269 212 1,221 241 385 97 72 413 117 52 126 47 284 263 July 9 3,257 212 1,222 242 387 97 72 394 120 54 126 47 283 975 246 July 16 3, 285 215 1,219 242 400 97 73 405 121 54 127 46 286 974 254 July 23 3,313 216 1,253 246 400 97 72 393 123 54 129 47 282 1,008 241 July 30 3,359 219 1,275 251 405 100 74 123 54 129 47 285 1,029 245 Reserve with F. R. banks: July 2 1,792 105 864 83 141 40 39 260 44 23 56 33 104 796 175 July9 1,790 98 829 82 146 42 41 288 43 24 57 33 107 766 198 July 16 1,840 100 90 145 42 40 274 45 26 58 34 107 812 187 July 23 1,824 98 81 142 40 39 266 45 26 60 34 105 825 177 July 30 1,818 96 82 144 40 38 45 23 60 32 102 826 185 Cash in vault: July2 230 15 70 14 28 11 10 35 5 10 7 19 56 14 July9 230 16 62 13 30 11 9 40 5 11 7 19 48 16 July 16 _... 212 15 57 12 27 10 9 36 5 10 7 17 45 13 July 23 211 15 57 12 28 11 9 33 5 5 11 17 45 13 July 30 215 14 60 12 28 11 9 33 6 5 11 18 47 13 Net demand deposits: July 2 13, 740 914 6,298 1,136 343 316 1,913 369 217 480 278 735 5,659 1,261 July 9 13, 587 896 6, 095 1,141 344 315 1,955 380 218 483 276 739 5,480 1,301 July 16 13, 784 918 6,176 1,170 352 312 1,942 376 221 499 280 771 5,556 1,271 July 23 13, 692 900 6,224 747 1,147 347 311 1,924 371 217 488 274 742 5,610 1, 276 July 30 13, 798 6,310 1,161 348 309 1,942 373 217 495 268 736 5,708 1,303 Time deposits: July 2 7,315 510 1,988 317 985 249 244 1,304 229 128 192 151 1,016 1,438 633 July 9 7,326 513 1,986 318 988 251 242 1,310 234 129 192 151 1,011 1,435 639 July 16 •_. 7, 399 512 2,007 319 988 245 243 1,373 235 129 193 152 1,005 1,451 704 July 23 7,400 513 1,999 322 998 248 242 1,354 244 129 193 152 1,007 1,444 685 July 30 7,352 515 1,992 328 1,001 247 244 1,317 238 129 186 151 1,005 1,437 651 Government deposits: July 2 193 15 70 17 18 15 15 10 1 15 64 July 9 147 12 53 13 14 12 12 8 1 12 49 July 16 134 11 48 12 12 11 10 7 2 11 45 July 23 120 10 43 11 11 9 9 2 10 40 5 July 30 109 9 39 9 10 9 9 1 9 36 5 Due from banks: July 2 1,583 58 208 139 79 83 297 176 214 142 188 July 9 1,484 54 170 124 77 76 276 173 216 110 163 J J u u l l y y 2 1 3 6 _. 1 1 , , 6 6 0 5 4 3 6 8 6 4 1 1 5 5 3 9 1 n 0 o 7 1 1 3 5 6 5 8 8 2 8 7 7 9 8 3 3 2 1 5 3 6 7 6 0 1 1 8 8 7 8 2 23 2 6 7 9 9 6 0 2 1 0 9 8 8 July 30 1,565 71 160 111 149 79 76 264 73 192 222 93 152 Due to banks: July 2 3,401 145 1,213 199 303 111 98 532 133 215 273 1,131 378 July9 3,392 141 1,184 202 313 111 100 523 129 224 291 1,103 374 July 16 3,394 141 1,150 213 345 107 102 504 126 237 298 1,061 354 July 23 3,467 135 1,219 212 359 112 99 512 125 239 285 1,132 362 July 30 3,365 126 1,162 216 358 110 96 131 77 238 276 1,072 338 Borrowings from F. R. banks: July 2 4 18 5 16 8 11 3 2 10 1 July 9_.._ 4 20 4 13 5 10 3 2 1 July 16... 3 8 2 9 3 10 3 1 2 July 23 1 5 1 3 4 " 4 1 2 July 30 1 10 1 5 3 7 1 2 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

500 FEDERAL RESERVE BULLETIN AUGUST, 1930 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 cities June May June June May June B N A D C S M P R C K t h o h l e i a t a . e i c l s i i w l n n a v h c l l L t a s a n o n a e m o a d s Y g e n t la u s a o e a o o n i l n p C s r p d o d k h i l t i i y a s. . . . . 1 1 3 6 4 3 0 2 3 7 6 1 0 1 6 4 3 9 7 5 1 3 6 0 , , , , , , , , , , , 1 2 7 6 0 1 8 6 6 7 6 2 4 4 6 5 7 8 4 2 2 7 7 5 0 6 9 7 4 7 8 7 3 12 3 2 5 2 3 7 3 1 1 1 2 9 7 2 4 2 7 3 1 9 6 , , , , , , , , , , , 2 2 2 1 1 9 9 8 9 2 4 4 5 1 8 5 9 4 7 2 1 0 7 4 4 7 4 6 3 6 3 6 5 1 1 3 3 3 5 4 4 1 2 1 1 3 8 3 4 6 1 3 0 2 9 4 1 , , , , , , , , , , , 0 1 1 4 8 0 6 6 8 3 8 5 8 1 4 3 1 2 1 3 5 3 0 0 0 8 1 1 7 4 2 4 5 N B P C R A S M C K D Sa h t o e l i h t a a . e c i l n i s w i n l n a v h l L c l t a s a o n n e F m a o a d s l n t Y e g r a u s a o e a a o n i o n n l p C s . p d c d r o h i i k l s t i i . c y a s . o . . . . . . . . . 2 2 1 1 1 1 1 1 1 2 0 4 4 2 5 5 9 5 9 9 4 4 1 1 1 16 8 6 6 2 4 6 2 6 4 3 1 , , , , , , , , , , , , 1 3 1 1 3 8 2 1 4 4 2 2 8 5 7 6 6 1 4 8 3 3 6 1 7 2 0 6 7 8 8 3 5 1 2 9 4 2 1 1 8 5 5 7 8 4 5 3 8 3 5 9 , , , , , , , , , , , , 6 4 1 4 9 2 1 2 8 8 7 6 7 1 7 5 2 9 2 6 3 1 6 8 7 7 8 6 7 3 2 2 8 2 6 4 6 1 1 3 2 7 9 6 4 5 4 7 5 5 8 2 6 , , , , , , , , , , , , 0 4 0 8 7 8 9 8 6 3 5 2 6 0 3 3 6 0 2 9 9 9 0 0 0 0 7 6 0 5 5 7 0 2 3 2 Total (11 districts) 600,573 457,416 545,891 Total... 168 137,837 | 156,433 204, 507 Figures for building contracts awarded are for 37 States east of the Rocky Mountains, as reported by the F. W. Dodge Corporation. INDEX OF DEPARTMENT STORE STOCKS INDEX OF DEPARTMENT STORE SALES [Monthly average 1923-1925 = 100] [Monthly average 1923-1925=100] Without seasonal With seasonal adjustment adjustment Wi a th d o ju u s t t m se e a n so t nal W ad it j h u s s t e m as e o n n t al Fede d r i a s l t r r i e c s t erve N s b t e o u r r m e o s - f 1930 1929 1930 1929 Num- Fede d r i a s l t r r i e c s t erve b s e to r r o es f 1930 1929 1930 1929 June May June June May June June May June June May June Boston 34 88 94 93 92 93 97 New York 42 104 109 101 108 109 105 Philadelphia 45 78 80 83 82 80 87 K D A S M B N R C P C t h h a a o i l e t i . c e l i w n i n l s a l h v c L l t n s a a n o a m e a o e Y d s g t l n s u a . a a e o o o p n i l C n r s p o d k d i h l t . i y i s . a 1 _ . _ _ _ . . 2 4 9 2 2 5 3 5 5 1 1 8 1 4 7 2 5 6 9 7 9 8 1 1 8 8 8 8 8 8 0 8 8 9 0 0 3 2 9 9 4 0 9 4 8 9 r1 1 1 1 1 1 1 1 9 1 9 9 9 0 0 0 1 0 2 2 4 6 0 1 1 4 6 9 8 1 1 1 1 1 8 8 9 9 0 9 9 1 1 0 0 7 2 7 6 7 5 3 7 6 3 8 1 1 1 9 8 9 8 0 9 9 9 0 1 4 2 3 2 7 2 7 7 2 5 1 1 1 1 8 8 1 9 9 9 9 0 1 0 1 9 6 9 5 5 8 4 7 8 1 1 1 1 1 1 1 1 8 1 9 0 0 0 2 0 2 0 1 5 9 7 6 2 2 7 1 5 A M S K D S R C C t a h l i a a t . i e c n l i l n n a L c v l h s n a n a F e m o a s e g t l T s r u a a a o o a i o n p n C n s d t o d c . a i . l i t l s i y s c . 1 o 40 4 7 2 2 2 2 3 1 1 8 9 6 1 8 9 1 0 4 9 1 1 8 8 8 9 9 6 7 9 0 0 3 9 6 8 0 9 5 2 4 3 1 1 1 9 9 9 9 9 6 7 1 0 1 8 2 5 1 1 9 9 0 5 1 1 1 9 8 9 9 7 9 9 0 1 7 5 4 8 2 4 0 9 5 2 2 1 1 8 9 9 9 6 7 9 1 0 6 8 4 3 0 7 6 0 2 1 1 8 8 9 9 6 7 1 9 0 6 9 8 4 1 7 7 0 4 1 1 9 9 9 7 9 7 9 1 0 8 7 3 9 2 1 6 2 2 San Francisco 34 97 114 103 109 109 116 i Monthly average 1925=100. Total 490 95 108 106 100 104 112 BANK SUSPENSIONS 1 IN JUNE, 1930 i Monthly average 1925=100. r Revised. [Amounts in thousands of dollars I COMMERCIAL FAILURES 1 Member Nonmember All banks banks 2 banks [Amounts in thousands of dollars] Federal reserve district ]STumber Liabilities N b u e m r - po D si e t - s 3 N b u e m r - po D s e it - s 3 ; N b u e m r - po D si e t - s 3 Federal reserve district 1930 1929 1930 1929 Boston 1 11,400 1 11,400 New York June May June June May June P C h le il v a e d la e n lp d hia 5 1 1 1 4 , , 5 1 5 7 0 5 1 4,188 4 9 1 , ,5 9 5 8 0 7 Richmond... _ 5 3,002 3 2,535 2 467 Atlanta 16 27,167 8,181 14 18,986 Boston . .... 210 254 184 3,980 9,078 2,888 Chicago 13 7,342 3 1,341 10 6,001 New York 407 475 372 21,337 14,195 7,469 St. Louis 7 2,439 7 2,439 Philadelphia 101 113 62 2,962 1,498 1,248 Minneapolis 8 912 1 150 7 762 Cleveland 163 189 159 3,828 3,023 3,480 Kansas City 8 1,110 8 1,110 Richmond 135 124 138 2,286 3,068 2,535 Dallas 2 181 2 181 Atlanta 145 58 100 2,744 2,338 1,329 San Francisco 1 1,751 1 1,751 Chicago 290 362 253 8,105 8,389 6,436 St. Louis 104 133 98 1,779 4 959 1 895 Total 4 67 71,029 10 16,395 57 54,634 Minneapolis 60 51 47 1,826 514 312 Kansas City 130 107 115 1,574 2,263 879 Dallas 62 51 27 8,455 982 710 1 Banks closed to the public on account of financial difficulties by San Francisco 219 262 212 4,256 5,234 2,192 order of supervisory authorities or directors of the bank. 2 Includes 9 national banks with deposits of $15,930,000 and 1 State Total . 2,026 2,179 1,767 63,131 55, 541 31,375 member bank with deposits of $465,000. 3 Subject to revision. < Includes 1 nonmember bank for which deposits figures are not 1 Figures reported by R. G. Dun Co. available. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

501 AUGUST, 1930 FEDERAL RESERVE BULLETIN JULY CROP REPORT, BY FEDERAL RESERVE DISTRICTS [Based on estimates, by States, for July 1 as made by the Department of Agriculturel [In thousands of units] Corn Total wheat Winter wheat Spring wheat Federal reserve district Produc- Estimate, Produc- Estimate, Produc- Estimate, Produc- Estimate, tion, 1929 July 1,1930 tion, 1929 July 1,1930 tion, 1929 July 1,1930 tion, 1929 July 1,1930 Bushels Bushels Bushels Bushels Bushels Bushels Bushels Bushels Boston 8,818 10,191 110 105 110 105 New York 24,625 31, 730 5,373 5,716 5,237 5, 572 136 144 Philadelphia.. 42,371 48,527 18, 620 18,919 18,521 18,823 99 96 Cleveland 170,082 177, 381 38,539 31, 074 38,442 30, 981 97 93 Richmond 148,109 153,522 26,147 26, 991 26,147 26, 991 Atlanta 174,605 156,422 4,144 3,396 4,144 3,396 Chicago 880, 741 956,156 62,550 60,308 58,140 55,124 4,410 5.184 St. Louis 312,957 358, 734 44,676 45,651 44,259 45,106 417 545 Minneapolis.. 294, 781 314,498 184,665 201,138 12,315 10,614 172, 350 190, 524 Kansas City_. 445,415 494, 304 267,493 276, 932 255,306 266,240 12,187 10, 692 Dallas 101,149 90,553 39, 923 28, 565 39, 580 28,351 343 214 San Francisco 10, 654 10,424 113,550 108,470 75, 693 66, 521 37, 857 41, 949 Total... 2, 614,307 2,802,442 805, 790 807,265 577, 784 557, 719 228,006 249, 546 Oats Tame hay Tobacco White potatoes Federal reserve district Produc- Estimate, Produc- Estimate, Produc- Estimate, Produc- Estimate, tion, 1929 July 1,1930 tion, 1929 July 1,1930 tion, 1929 July 1,1930 tion, 1929 July 1, 1930 1 Bushels Bushels Tons Tons Pounds Pounds Bushels Bushels Boston _ _ 8,722 9,411 4,981 4,745 38,406 47, C76 58, 593 55,235 New York 25,937 40,721 6,958 6,391 1,078 1,398 28,010 34,654 Philadelphia j 18, 771 22,362 3,061 2, 621 47, 601 55,461 23,623 26,392 Cleveland 64,498 70,925 7,168 4,415 146,439 152,230 19,695 18,448 Richmond 26,875 26,021 4,190 2,807 740, 516 764,390 37,845 35,885 Atlanta ! 15,814 14,968 2,942 2,239 185,390 193,122 11,964 11,908 Chicago 501,169 525, 908 23,201 17,285 46,360 51,181 44,914 58,909 St. Louis 51,166 57,452 9,114 6,267 307, 662 324,102 13,313 14, 767 Minneapolis ; 283,837 306,639 12,190 10,823 4,508 4,800 47, 707 59, 582 Kansas City i 152,447 164,817 12, 348 12,342 2,714 3,310 31, 933 34,130 Dallas I ! 49,434 55,293 1,284 1,262 3,122 4,517 San Francisco 34,904 34, 890 14,278 14, 234 39,077 43,992 Total 1,233,574 1,329,407 101,715 85,431 1, 520, 674 1, 597, 670 359, 796 398,419 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

502 FEDERAL RESERVE BULLETIN AUGUST, 1930 FOREIGN BANKING AND BUSINESS CONDITIONS LEGAL RESERVE REQUIREMENTS OF FOREIGN CENTRAL BANKS Reserve requirements Country Liabilities m ag u a s i t n s b t e h w e h ld ich reserves Gold and Qualifying provisions, etc. Gold foreign exchange Per cent \ Per cent Albania. _ Notes H Foreign exchange may not exceed two-thirds. Australia. Notes 25 Austria. _. Notes plus other demand liabilities, i 2 24 Reserve ratio to be increased at 5-year intervals ending Jan. 1, 1938, minus amount represented by the successive ratios being 24 per cent, 28 per cent, and 33^$ per cent. Federal loan debt. Belgium.. Notes and other demand liabilities.. 30 ! 40 Bolivia... Notes and deposits 1250 Silver in reserve may not exceed one-fifth. Foreign exchange may consist only of deposits payable in gold on demand or on 3 days' notice in New York or London. Bulgaria.. Notes and other demand liabilities.. 1 2 33H Foreign exchange net. Silver ineligible after March 10, 1931. Government consent necessary for suspension of reserve requirement. Chile Notes and deposits... 2 50 Foreign exchange may consist only of demand deposits payable in New York or London. Colombia Notes and deposits. 2 36 2 60 Foreign exchange may consist only of demand deposits. Czechoslovakia. Notes and other demand liabilities. 2 25 Re c s e e n r t v e b y r a t t h i e o e o n f d g o o f l d 1 9 a 3 n 0 d a n fo d r e 3 i 5 g n p e e r x c ch en an t g b e y t t o h e b e e n i d n c o r f e a 1 s 9 e 3 d 5 . to G 3 o 0 l d p e to r constitute at least one-half the reserve. Danzig Notes. 100 per cent reserve must be held against circulation in excess of 100 gulden per capita. Excess also subject to tax. Foreign exchange may consist only of demand claims on the Bank of England. Denmark. Notes.. 2 30 2 50 Foreign exchange may consist only of the bank's non-interest-bearing demand balances with Bank of Norway and Swedish Riksbank, less indebtedness to these 2 banks, and non-interest-bearing demand balance on giro account with German Reichsbank. Government consent necessary for suspension of reserve requirement. Ecuador.. Notes and deposits.. 2 50 Foreign exchange may consist only of deposits payable in gold on demand or on 3 days' notice in New York or London. Egypt.... Notes 50 The original requirement was a gold reserve ratio of 50 per cent, but on Oct. 30, 1916, the bank was authorized to substitute British Treasury bills for gold. England.. Notes in excess of fiduciary issue of 100 Fiduciary issue may be increased by authorization of Treasury. £260,000,000. Estonia... Notes and other demand liabilities.. 2 40 Foreign exchange net. Government consent necessary for suspension of reserve requirement. Finland.. Notes and other demand liabilities 100 Foreign exchange may consist only of undisputed balances with in excess of 1,200,000,000 markka. foreign correspondents. France Notes and other demand liabilities.. 35 Germany.. Notes 2 30 2 40 Maturity of foreign exchange in reserve must not exceed 14 days. Greece Notes and other demand liabilities.. 2 40 Foreign exchange net. Government consent necessary for suspension of reserve requirement. • Guatemala Notes 12 140 Silver in reserve may not exceed one-thirtieth of total reserve require- Deposits due in 30 days or less 71/2 125 ment. Special deposits 30 1 100 Hungary. Notes plus other demand liabilities, 12 24 Reserve ratio to be increased at 5-year intervals ending June 24, 1939, minus amount represented by the successive ratios being 24 per cent, 28 per cent, and 33^ per cent. State debt. Italy.. Notes and other demand liabilities.. 240 Japan_ Notes in excess of fiduciary issue of 1 100 Silver in reserve may not exceed one-fourth. Fiduciary issue may 120,000,000 yen. be increased, subject to tax, by authorization of Minister of Finance. Java Notes and other demand liabilities.. Latvia Notes 50 Additional requirements for notes in excess of 100,000,000 lats. Lithuania Notes Netherlands.. Notes and other demand liabilities.. i4o7 ilZZIIIIZII Norway Notes in excess of fiduciary issue of 100 j Fiduciary issue may be increased, subject to tax, by authority of 250,000,000 kroner. I i King and Storting. Peru Notes and other demand liabilities.. 50 I Foreign exchange may consist only of New York and London funds. Poland... Notes and other demand liabilities. 2 30 1240 Silver in reserve may not exceed one-twentieth of gold held. Rumania.. Notes and other demand liabilities. 25 35 Russia Notes 125 Reserve may include platinum. Foreign exchange limited to forj j eign currency in vault. South Africa.... Notes, deposits, and bills payable. 2 40 I ! Silver in reserve may not exceed 8 per cent of deposits and bills payable. Government consent necessary for suspension of reserve requirement. Spain.. Notes up to and including 4,000,- 38.8 145 Note circulation limited to 6,000,000,000 pesetas and may exceed 000,000 pesetas. 5,000,000,000 only with consent of the Government. Consent of Notes above 4,000,000,000 pesetas 48.5 160 Government required for any reduction of gold holdings and can not be given unless these holdings are in excess of requirement necessary for a circulation of 6,000,000,000 pesetas. Silver in reserve may not exceed 5 per cent of notes up to and including 4,000,000,000 pesetas and 10 per cent of notes in excess. Sweden Notes in excess of fiduciary issue of 50 Gold reserve may not fall below 150,000,000 kronor. King and 250,000,000 kronor. Riksdag may extend the fiduciary issue by 125,000,000 kronor. Switzerland- Notes 40 1 May legally include silver. 2 The bank may, subject to the payment of a tax, permit the reserve ratio to fall below the legal minimum. 3 300,000,000 markka. 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AUGUST, 1930 FEDERAL RESERVE BULLETIN 503 ANNUAL REPORT OF THE BANK OF NETHERLANDS The annual report of the president of the cent. Following the turn of the year a further Netherlands Bank, covering the year ended decline took place, and during the fourth March 31, 1930, was delivered to the general quarter of the fiscal year the corresponding meeting of shareholders on May 27, 1930. rates were 2.79, 2.57, and 1.97 per cent. For Sections of the report dealing with economic the fiscal year as a whole the rate for loans on and financial conditions in the Netherlands, securities averaged 4.4 per cent, the same as and with operations of the Netherlands Bank, the 1928-29 average; for private discounts are given herewith:l 4.3 per cent, also the same as in the preceding year; for call money, 3.9 per cent as compared Decline in the price of silver.—An important with 3.8 per cent in 1928-29. result of the decline in the price of silver is the During the first half of the period under reduced purchasing power of those oriental review there was only a slight difference in the countries whose currency systems are based on three rates. In the second half of the fiscal silver. This reduced purchasing power preyear the Amsterdam rate was almost always vents selling by such industrial States as considerably below the London rate and gennormally market part of their products in the erally lower than the New York rate. This Far East, so that they also are adversely circumstance was undoubtedly an advantage affected by the decline in silver prices. to the Amsterdam acceptance business, which For the Netherlands and the Dutch East continued to develop favorably. Indies the price decline is a matter of concern In spite of the tension which prevailed in in connection with a contemplated substitualmost all money markets during the first half tion of nickel for silver token coin. On the of the year, the Netherlands Bank did not find one hand, whatever measure of security the it necessary during this period to raise its rate. value of the silver content of a coin affords the After the advance of March 25, 1929, in the holder is steadily diminishing with the decline discount rate—mention of which was made in in the price of silver. On the other hand, the the previous report, and which made its loss which the State will suffer in the depresalutary influence felt at once—the discount ciated value of the silver content of the old rate of our institution remained unchanged coins, upon the eventual replacement of silver until November 1, 1929, when we lowered the coins by nickel, will be greater in proportion rate by one-half of 1 per cent as a result of the as the price of silver continues to decline. relaxation which had taken place. This meas- The Netherlands money market.—Money ure was followed on November 16 by a second rates in the Netherlands showed considerreduction of one-half of 1 per cent, when, howable fluctuations during the past fiscal year. ever, the rate on advances in current account This was true especially of rates in the open was reduced by a full per cent. When funds market. The average of the monthly rates for became more plentiful after the turn of the loans on security during the period Aprilyear, we proceeded on January 16, 1930, to October, 1929, was 5.32 per cent, the highest still another reduction of one-half of 1 per cent monthly average during the period being 5.87 in our rates, on which occasion the rate on per cent in May, and the lowest 4.70 per cent advances in current account was again reduced in August. For private discounts the average by a full per cent. In this way the interest rate for the period mentioned was 5.24 per rate on advances was made identical with that cent, the highest monthly average being 5.40 on loans. These measures were intended ultiper cent in September, and the lowest being mately to prepare the way for a form of 5.02 per cent in August. For "call loans7' the advances in current account which should be corresponding figures were 4.89 per cent for more flexible and better adapted to the needs the period, 5.47 per cent for Ma}^, and 4.29 per of business. On March 7, 1930, all rates were cent for August. After September all quotaagain reduced by one-half of 1 per cent, and tions declined markedly. From October to the finally on March 25, 1930, the discount rate on middle of December the average rate for loans bills and acceptances was lowered once more on securities was 4.19 per cent, for private disby one-half of 1 per cent. The rates for loans counts 4.25 per cent, and for call loans 3.69 per and advances were left unchanged in this latest reduction, in order to afford no inducement to 1 The report, available in Dutch, contains in addition a discussion of the Young plan, the status of various European countries with relation undesirable operations in interest arbitrage. to the gold standard, the international money market, the silver market, etc., and tables showing in detail the operations of the Netherlands Capital issues.—The volume of new capital Bank. For earlier reports, see FEDERAL RESERVE BULLETIN, Sep- issues during the past fiscal year was considertember, 1929, September, 1928, August, 1927, August, 1926, etc. 4519—30 4 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

504 FEDERAL RESERVE BULLETIN AUGUST, 1930 ably less than in the year 1928-29. As will be total amount of 10,400,000 florins ($4,180,seen from the table [omitted], domestic capital 800). Otherwise, the movement of the exissues in the amount of 263,000,000 florins changes gave us no occasion to take special ($105,726,000) and foreign capital issues in the measures. amount of 134,000,000 florins ($53,868,000) Reserves.—Our gold stock showed a slight were floated in the market during the period net increase this year. At the end of April/ under review; Treasury bills are not included. 1929, when the German reichsmark was very For the year 1928-29 the corresponding figures weak, and the Keichsbank considered it desirwere 410,000,000 florins ($164,820,000) and able to send gold to the Netherlands also in 310,000,000 florins ($124,620,000). In the support of mark exchange, we bought gold from first half of the period speculative activity in Germany at her request for about 10,000,000 the stock markets accompanied by rising stock florins ($4,020,000). Also in the course of the quotations and high rates of interest checked year we bought from the Bank of Java, at the issue of fixed interest-bearing securities. its suggestion, five successive consignments of After the disappearance of these obstructing gold, to an aggregate amount of almost 23,factors, bond issues increased, but the depres- 000,000 florins ($9,246,000). On the other sion which then set in throughout the business hand, there were the sales of gold already menworld retarded the strong movement toward tioned which were destined for France, amountthe issue of shares. In the last quarter of the ing altogether to about 16,600,000 florins fiscal year 1929-30 shares were issued in a total ($6,673,200); and again, in March, 1930, we amount of only 11,000,000 florins ($4,422,000), sold gold to the value of 5,000,000 florins as compared with 110,000,000 florins ($44,220,- ($2,010,000) to a foreign bank of issue at its 000) in the last quarter of 1928-29. request; this gold has remained earmarked Foreign exchange.—Exchange rates during on deposit here in the bank. the past fiscal year moved for the most part in We have proceeded with the issue of gold favor of the Netherlands, so that on balance we 10-florin coins in the same way as was exwere able to strengthen considerably our plained in the report for 1927-28. A total portfolio of foreign bills, which had declined amount of 661,625 florins ($265,973) in gold sharply in February and March, 1929, as a coin was put into circulation during the past result of large deliveries of dollars and sterling. fiscal year, while an amount of 329,450 florins On March 31, 1930, this portfolio had risen to ($132,439) came back to the vaults of the 205,000,000 florins ($82,410,000), against 35,- bank. In addition, 1,400,000 florins ($562,800) 000,000 florins ($14,070,000) on March 31, were sent to Curagao, and an amount of 100,000 1929. Especially during the first months of florins ($40,200) was earmarked for the Bank the fiscal year we purchased considerable of Surinam. amounts of sterling and dollars. In August, Clearing operations.—Clearing and current 1929, the dollar quotation temporarily reached account operations, and clearing turnover the gold export point; in connection with this showed an increase of 5.9 per cent, 5.9 per movement we gave out dollars freely in con- cent, and 6.4 per cent, respectively, during the siderable amounts on a number of days for the first half year as compared with the correprotection of our stock of gold. In the latter sponding period of the year before. The inpart of July the French franc also reached the fluence of the lessened business activity in gold export point, so that we were called upon the country, which has been mentioned, was to make gold available for export to France. reflected in the figures for the second half year For the satisfaction of these demands we gave by a decline in all these lines of activity, out to a number of bankers, on July 30, August of 7.1 per cent, 5.6 per cent, and 12.2 per cent, 6 and 7, gold in an aggregate amount of 6,200,000 respectively, as compared with the correspoadflorins ($2,422,400), after which the rate of the ing period of the preceding year. franc very soon declined. This experience, Reserve ratios.—During the year 1929-30 however, prompted us to build up a portfolio the demand obligations of the bank were of French bills, so that when in January the covered on average to the^extentfof J55.18 franc again rose to the gold export point, we per cent by gold coin and bullion, and to the were in a position to sell francs. Our relatively extent of 79.79 per cent by the aggregate small stock of francs, however, proved insuf- reserve of gold coin, gold bullion, and foreign ficient to force down franc exchange far exchange. For the years 1918-19 to 1928-29 enough, so that again we found ourselves com- inclusive, these average percentages were as pelled to deliver gold for export to France in a follows: Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

AUGUST, 1930 FEDERAL RESERVE BULLETIN 505 BALANCE SHEET OF THE NETHERLANDS BANK AS OF Percentage MARCH 31, 1930 Percentage of cover in Fiscal year o c f o c i o n v a e n r d in c li o o i n n , , a b n u d lbullion foreign ex- Florins Dollars i changes (in thou- (in thousands) sands) 1918-19 67.37 76.95 1919-20 . . 58.42 67.09 RESOURCES 1920-21 56.97 63.38 1921-22 57.71 63.19 Gold and silver coin 92,815 37,312 1922-23 59.07 69.82 Gold bullion 367,056 147, 557 1923-24 58.26 66.71 Cash items 444 178 1924-25 52.82 69.02 Correspondents abroad 24, 037 9,663 1925-26 50.57 76.33 Foreign bills 205, 358 82, 554 1926-27 - 51.57 77.24 Domestic bills 51,485 20,697 1927-28 . . 50.77 71.91 Loans , 64, 990 26,126 1928-29 54.04 80.19 Advances in current account 71, 438 28, 718 Investments in shares listed by the Amsterdam Brokers' Association 18,137 7,291 Other investments 7,369 2,962 The cause of the decline in the percentage of Net balance with banking correspondents 104 42 Interest accrued on loans 400 161 gold coin and bullion reserve in the years Interest accrued on advances in current account—. 180 72 1923-24 to 1925-26 may be found in the fact I C n o te m r m es i t s s a i c o c n r u a e c d c o o u n n i t nvestments _. 1 3 6 0 4 6 1 6 2 that during those years we sent a considerable Bank premises and furniture 5,000 2,010 amount of gold abroad, in order to contribute Total resources 909,007 365,421 by this means to a more just distribution of the LIABILITIES available gold stocks of the world. Notes in circulation . 836, 567 336, 300 There was no occasion this year for either Current accounts 26,123 10, 501 adding to or drawing from the special reserve. O Ca th p e i r ta d l emand liabilities 2 1 0 , , 6 0 1 0 5 0 8,0 6 4 4 0 9 The special reserve, therefore, with the approval Reserve fund 7,200 2,894 Special reserve (art. 9 of the bank act, 1919) 8,000 3,216 of his Excellency the Minister of Finance, Pension fund 6,400 2,573 remains unchanged on the balance sheet in the U U n n e e a a r r n n e e d d d d i i s s c c o o u u n n t t o o n n f d o o r m eig es n t i b c i l b ls ills 45 6 0 7 18 2 1 7 amount of 8,000,000 florins ($3,216,000) for Expenses 1 Dividends payable 720 289 the purpose for which it was created some years Balance of profits at the disposal of the general ago. meeting _ 1,864 749 Total liabilities . 909, 007 365,421 1 Conversion at par: 1 florin=$0,402. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

506 FEDEKAL RESERVE BULLETIN AUGUST, 1930 ANNUAL REPORT OF THE NATIONAL BANK OF CZECHOSLOVAKIA The annual report of the National Bank of the ratification by Parliament of the agreement Czechoslovakia for 1929 was submitted to the between the Government and the bank. general meeting of shareholders on February Inasmuch as all preparations had been made, 27, 1930. A selection from the address of the both measures could have been acted upon and governor, Dr. V. Pospisil, dealing with the finally settled before the publication of the reform of the currency, and selections from the Young plan, which had, indeed, no influence report of the board of directors, dealing with the on the measures as regards the merits of the currency, the money market, and prices, are case. The provision of the Young plan, howgiven herewith: 1 ever, that only such countries as are on the gold or gold exchange standard may participate Currency reorganization.—Czechoslovakia in the Bank for International Settlements, took her place last year among the countries made it desirable for Czechoslovakia to exwhich have completed the reorganization of pedite the passage of the currency law. their currencies. Various measures governing Following the final abolition (carried out by foreign exchange had been passed from time to the decree of December 28, 1928, No. 209 of time according to a definite plan, until in 1925 the Collection of Laws and Ordinances) of such conditions justified the drafting of a bank law. restrictions as still remained in force with re- This law provided for the establishment of a spect to dealings in foreign exchange—which joint-stock bank of issue which should be for all practical purposes, had already been free legally obligated to maintain the stability of for some time—the method of fixing the rate the crown at the level established de facto of the crown was changed. Formerly, the Naduring the preceding year. It also provided that later on a currency law fixing a definitive tional Bank had maintained an almost unmonetary unit should be adopted. changing rate of crowns in relation to dollars. After the restrictions were removed the rate of Passage of the currency law was accelerated the crown became generally dependent on on account of the fact that on various occasions, supply and demand, yet its fluctuations in the and especially during the later months of the New York exchange market were usually within past year, disturbing rumors were current that more narrow limits than those of most other the establishment of a gold currency would European exchanges. bring about certain property changes and neces- The currency law.—After the restrictions on sitate sacrifices on the part of the people. foreign exchange had been abolished the cur- Since the Government and the National Bank of Czechoslovakia w^ere agreed as to the neces- rency law was enacted by the Standing Comsity of establishing a gold currency system, mittee of the National Assembly on Novemthey took the matter under consideration at ber 7, 1929, and published as No. 166 of the once. Collection of Laws and Ordinances on November 27, 1929. The relation of the Czechoslovak Last year's report explained at some length that all essential preliminaries for final action crown to gold was fixed at 1 crown to 44.58 had been concluded. It recommended that the milligrams of fine gold. The act of 1925 had bank of issue should be put in a position to stabilized the currency by obligating the bank influence the money market, and showed the "to maintain the relation of the Czechoslovak necessity of redeeming the State notes debt crown to the undepreciated foreign gold curmore rapidly, as well as the means by which rencies at the level of the past two years/7 In this might be done. terms of United States currency, this meant Negotiations concerning the currency law between 2.90 and 3.03 cents, which repreand the agreement for the speedier redemption sented a theoretically possible fluctuation of of the State notes debt were carried on at the 4.48275 per cent. same time, and were concluded by the end of By the enactment of the currency law last May. Political developments, however, Czechoslovakia established a gold-exchange delayed final action, which, in the case of the standard. The new reserve requirements currency, required the passage of a currency obligate the bank to maintain the following law; and, in the case of the State notes debt, metallic cover: Until the end of 1929 at least 25 per cent, by the end of 1930 at least 30 i Taken with some textual revision from the English version published per cent, by the end of 1935 and thereafter at by the bank. In addition the report contains discussion of the Young least 35 per cent of the total note circulation plan, the general international situation, Government finance, agriculture, industry, foreign trade, etc., and gives tables showing the operations and other demand liabilities. At least oneof the bank in detail. For earlier reports, see FEDERAL RESERVE BULhalf the metallic cover must consist of gold LETIN, August, 1929, July, 1928, and June, 1927. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

AUGUST, 1930 FEDERAL RESERVE BULLETIN 507 bullion and coin, while the balance may con- are not to be included, as heretofore, in the sist of foreign bank notes convertible into gold, regular annual payment of 110,000,000 crowns foreign full legal tender coins, and bills of ex- fixed by agreement of February 2, 1927. change. To sum up: Legal stabilization of the Section 3 of the currency law requires the Czechoslovak crown has been established by bank to purchase gold at a fixed price, but the currency law; the maintenance of the crown only in a minimum amount of 12 kilograms at its stabilized level depends upon the amortiof fine gold; and to redeem its notes at its option zation of the State notes debt. either in gold at the legal price, or in gold for- The central bank and the money market.—eign exchanges at the rate of the day quoted The reserve position of the currency is strong. on the Prague Bourse, but only in a minimum The latest return showed gold and gold examount equal in value to 12 kilograms of fine changes amounting to 3,169,000,000 crowns gold. The date on which this obligation is to ($93,802,000) against notes in circulation and come into force will be determined by special other demand liabilities of 7,136,000,000 crowns decree, published by the Government in agree- ($211,226,000)—that is, a gold reserve of 44.4 ment with the bank. per cent. In order that the Czechoslovak crown may The other part of the note cover is less satisobtain full recognition in the international ex- factory. Only 3.5 per cent of the circulation change market, convertibility of the currency is represented by commercial bills, while 52.3 must be established. Under paragraph 2 of per cent is represented by the remainder of the the currency law, the Government, in agree- State notes debt. ment with the bank, is authorized to issue a These percentages explain why the bank has decree establishing convertibility of bank so little influence on the money market. Under notes according to the system of the gold ex- existing circumstances the official discount change standard. Only through the adoption rate—the most important instrument that a of such a measure can the Czechoslovak crown bank of issue has at its disposal with which to rank with other currencies and become eligible regulate conditions in the money market—is for inclusion in the legal reserves of other gold- more or less nominal in our country. Control exchange standard countries. of the market could be made effective in an The State notes debt.—The agreement rela- emergency only by sharp advances in the distive to the speedier redemption of the State count rate, which would be undesirable from notes debt has not yet been ratified by Parlia- the point of view of public and private credit ment. requirements. The intention of this agreement is to hasten There is urgent need of strengthening the the repayment to the fund for redemption of position of the bank of issue on the money the State notes debt, of certain sums withdrawn market, for only thus can we develop a greater for partial amortization of short-term Treasury volume of transactions in commercial bills of bills of 1921. These withdrawals were author- exchange. The charge for revenue stamps ized under Article XII of the bank law; they used on these bills might well be reduced. were made in anticipation of larger receipts Reserves.—The gold holdings of the National from the capital levy than were finally received, Bank of Czechoslovakia were further increased and in the belief that the volume of these bills— during the past year. On December 31, about 1,500,000,000 crowns ($44,400,000)— 1929, they amounted to 1,261,428,856 crowns tended for special reasons to depress the ex- ($37,338,000), against 1,156,671,655 crowns change. Funds thus withdrawn have aggre- ($34,237,000) on December 31, 1928, an ingated some 600,000,000 crowns, and are being crease of 104,757,201 crowns ($3,101,000). gradually returned according to the earlier Changes in the foreign-exchange holdings were arrangement, which is still in effect. No further similar to those in previous years. During the withdrawals are to be made from the fund for first few months they declined, but in August amortization of the State note debt. began to increase gradually. The decline in The agreement also provides that the State the first half of 1929 was greater than in the administration shall make certain additional previous year, owing chiefly to the changed payments to the amortization fund; and finally, foreign trade balance; this in the first six that Government receipts from the bank— months of 1929 showed an adverse balance of dividends on capital stock subscribed for by the 631,120,000 crowns ($18,681,000) compared State, and the share of the Government in the with a favorable balance of 770,820,000 crowns profits—shall be used for redemption of the ($22,816,000) for the corresponding period in State notes debt. These receipts from the bank 1928. The gold and foreign exchange position Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

508 FEDERAL RESERVE BULLETIN AUGUST, 1930 of the National Bank would indicate that the increased, these balances were gradually balance of payments in 1929 was not unfavor- returned to the bank of issue and the home able. Nevertheless, a large foreign trade sur- market. In the early part of the year the banks plus is necessary in order to reduce the country's also found profitable employment for their debts and to strengthen her economic postion— surplus funds in fairly large purchases of even apart from questions of the money and investment securities. These were gradually capital market. disposed of later on to meet the increasing Money market.—Except during the first few demands of agriculture and industry. The months, large demands were made upon the demand for funds became strong at the close of money market—chiefly for long-term credits— June, when there was a marked expansion of while the open-market rate of interest averaged National Bank credit, and remained so until somewhat higher than during previous years. autumn except for a short interval in the This tightening of the market was due to sev- summer. eral causes. First, a large volume of funds was As in previous years, the Czechoslovak marabsorbed by business, which continued to be ket carried on its operations without the aid of active until autumn. In particular, the build- foreign credits. Short-term foreign indebteding industry, which had previously been ness of the banks, however, increased somefinanced by short-term credits, now found it what, as shown by statistics compiled by the necessary to convert some of these into long- bank of issue for its own use. After wide flucterm loans; this had not been the case in 1928. tuations during the course of the year, this net Second, the money market was influenced by indebtedness at the end of December, 1929, the unfavorable shift in the foreign trade bal- amounted to 748,360,000 crowns ($22,151,000), ance. Again, the difficult situation of agricul- as compared with 635,000,000 crowns ture not only caused a decline in savings but ($18,796,000) at the end of December, gave rise to increased demands for credit. 1928. Finally, increasing internal requirements during Savings.—Savings deposits continued to the first half of the year and the rising standard increase, but at a slower rate than during the of living checked the accumulation of savings. preceding year. Savings deposits at all Czecho- These adverse factors were supplemented by slovak savings banks rose by 897,590,000 the disturbed situation in the international crowns ($26,569,000) in the first 11 months of money markets and the considerable rise in the 1929, compared with 1,194,500,000 crowns bank and open-market rates, which made for- ($35,357,000) for the corresponding period in eign credits more difficult to obtain. 1928. Peoples'credit and savings associations, In spite of these difficult conditions both at mainly in Bohemia, also recorded a less rapid home and abroad, the National Bank of rate of increase. At the agricultural credit and Czechoslovakia did not feel obliged to change savings associations, however, deposits in 1929 its 5 per cent discount rate, even though deal- rose by 322,840,000 crowns ($9,556,000)— ings in foreign exchange were unrestricted. from 3,221,790,000 crowns ($95,365,000) to The stability of the rate was of inestimable help 3,544,630,000 crowns ($104,921,000)—as comto the entire economic life of the country. pared with an increase in 1928 of 299,550,000 The average yield of Government bonds crowns ($8,867,000)—from 2,922,240 crowns reflected money-market conditions to some ($86,498,000) to 3,221,790,000 crowns extent. At the beginning of the year the yield ($95,365,000). The farmers' mutual cash instiwas 5,701 per cent, at the beginning of March, tutions in Slovakia recorded an advance of 5.775 per cent, and thereafter it averaged 5.76 80,530,000 crowns ($2,384,000), as compared per cent. The average yield for the year was with 55,550,000 crowns ($1,644,000) in 1928. slightly above that of the preceding year. At the country banking institutions savings At the beginning of the year, when available deposits rose by 62,510,000 crowns ($1,850,000), funds were in considerable volume, some banks while in 1928 the increase was only 17,110,000 invested their surplus funds abroad tempo- crowns ($506,456). rarily, with the approval of the bank; in the The long-term credit market has been supfollowing months, as demands at home plied to an increasing extent with funds ac- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

AUGUST, 1930 FEDERAL RESERVE BULLETIN 509 cumulating on account of social insurance. BALANCE SHEET OF THE NATIONAL BANK OF CZECH- The resources of the Central Social Insurance OSLOVAKIA AS OF DECEMBER 31, 1929 Institution rose by 735,600,000 crowns ($21,774,000) to 2,212,000,000 crowns ($65,- Czechoslovak Dollars * 475,000); those of the General Pension Institu- crowns (in thoution by 474,780,000 crowns ($14,053,000) to (in thou- sands) sands) 2,415,750,000 crowns ($71,506,000). If we add the capital created in the form of private RESOURCES insurance we find that the total of savings Gold 1, 261,429 37,338 thus created is considerably in excess of Silver 40, 547 1,200 1,000,000,000 crowns ($29,600,000) annually. Foreign bank notes, silver, and token coin 5,488 162 Capital issues.—New capital issues were F B o a r l e a i n g c n e s b a il b ls r o d a i d s c a o n u d n t f e o d reign currencies advanced. 2, 203, 349 65, 6 2 2 1 0 9 again in excess of the previous year, the net Foreign checks in course of collection 641 19 increase representing 325,500,000 crowns 2, 270,964 67, 221 ($9,635,000), against 271,800,000 crowns Czechoslovak token coin 21,893 648 ($8,045,000 in 1928). The new issues were Local bills 397, 082 11, 754 Other bills 128, 652 3,808 allocated as follows: Banking 120,400,000 Securities discounted 395, 717 11, 713 crowns ($3,564,000), textile industry 76,400,000 Advances on collateral 89,464 2,648 Sites, premises, furniture, and fixtures 86,195 2,552 crowns ($2,261,000), paper industry 65,100,000 Banking Office of the Ministry of Finance in liquidation: crowns ($1,927,000), metal industry 55,400,000 State notes debt 3, 761, 082 111, 328 crowns ($1,640,000), and chemical industry Assets of the Banking Office of the Ministry of Finance in liquidation, in charge of the 36,800,000 crowns ($1,089,000). National Bank of Czechoslovakia 362,458 10, 729 Temporary resources: The situation in the money market brought In foreign accounts 2 773, 437 22, 894 about an increased demand on the National Othe I r n t r e e r s e o s u t r c d e u s e in 1929 to be collected in 1930 17,4 5 5 1 4 5 51 1 7 5 Bank for credit, beginning in June. By the Total resources, exclusive of contra accounts,. 9, 566, 342 283,164 end of September and October the total volume Contra accounts 79,200 2,344 of credit extended by the bank amounted to Total resources 9, 645, 543 285, 508 861,350,000 crowns ($25,496,000). At the end LIABILITIES of the year, owing to the improved foreign trade balance and the easier conditions for Bank notes in circulation •_ 8, 229, 512 243, 594 Giro accounts 674, 845 19, 975 short-term foreign credits, the demand for Current accounts , 30, 380 899 Capital 405,000 11,988 central bank credit declined. Although the Surplus 1,800 53 expansion was considerable in comparison with Reserve fund in accordance with section 135 of the statutes. 4,133 122 previous years, the credit demand remained Special reserve fund in accordance with Art. Ill of the amendment of the Bank Law No. 102/25.. 69,488 2,057 well below the level which may be regarded as Building fund 5,000 148 normal under existing circumstances. Net profit: Carry-over from the year 1928 326 10 Movement of prices.—Prices in Czechoslo- r Results of the year 1929 90, 550 2,680 Short-term Treasury bonds in circulation, taken vakia showed a considerable decline during "over from the Austro-Hungarian Bank 315 Temporary liabilities (interest due in 1930, 1929, which was reflected in the index of whole- already collected in 1929) 6,342 189 sale prices. The index for the year was 924 State's gold treasure 28, 891 855 Other liabilities 19, 759 585 compared with 979 in 1928—a decline of 5.6 1 Total liabilities, exclusive of contra acper cent. In January the index was 953; it counts 9, 566, 342 283,164 rose to 964 in April, and declined thereafter Contra accounts 79, 200 2,344 until on December 1, it reached 876, a decline Total liabilities 9,645, 543 285, 508 of 77 points, or 8.08 per cent for the year as a whole, and the lowest figure on record. 1 Conversion at par: 1 Czechoslovak crown=$0.0296. 2 Published as 733,437. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

510 FEDERAL RESERVE BULLETIN AUGUST, 1930 FINANCIAL STATISTICS FOR FOREIGN COUNTRIES GOLD HOLDINGS OF CENTRAL BANKS AND GOVERNMENTS [In millions of dollars. Figures for end of month or latest available preceding date; see BULLETIN for June, 1929, p. 396, and for June, 1930, p. 372] Month T c tr o ( o i 4 e u t 4 s n a ) l - U S n ta i t t e e s d g t A i e n r n a - - A t l r u i a a s - - g B iu e m l- B z r i a l - C a a d n 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 la e e n r t d - h s - R s u ia s- Spain S l z w a e n i r d t - - c o t o r t 2 h i u 8 e e n s r - 1929—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 1,525 520 128 271 541 178 119 495 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._. 10, 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, 565 4,131 442 109 164 90 79 795 1,659 611 128 274 443 174 167 477 112 719 May- P10, 610 4,159 M41 91 167 90 80 765 1,717 617 128 274 434 174 177 477 112 *707 June HO, 668 4,178 P440 P91 167 89 P80 768 1,727 624 128 274 434 174 203 477 112 v 702 July P 4,160 *>746 v 1,777 233 p Preliminary, based on latest available figures. 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 Stores—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 S A o fr u i t c h a ¥ In . d . m Month Im- Ex- Im- Ex- Im- Ex- Im- Exports ports Net ports ports Net ports ports Net ports ports Net Net Net 1929—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, 578100,479 -77,901 129 8 121 -14,816 4,164 August 19,271 881 18, 390 27, 728 879 26,849 17, 226 59,278 -42,052 103 2,522 -2,419 -20, 981 2,771 September. 18, 781 1,205 17,576 9,939 851 9,088 18,301 41, 283 -22, 982 116 17 99 -15, 375 3,390 October 21,321 3,805 17,516 4,624 1,002 3,622 28, 591 26, 794 1,796 177 12 166 -15,812 3,146 November. 7,123 30,289 -23,166 5,093 919 4,174 36, 249 27,844 8,405 107 15 92 -20, 922 4,408 December. 8,121 72, 547 -64,426 11,096 806 10,290 65,343 16,439 48,903 297 17 280 -18,220 4,603 1930—January... 12,908 8,948 3,'"' 5,052 629 4,423 41, 702 16,102 25,600 248 3,224 -2,975 -17,808 5,370 February.. 60,198 207 59,991 38,252 687 37, 565 38,961 34,074 4,886 80 1,026 -946 -20, 786 3,844 March 55, 768 290 55, 478 15,119 769 14,350 38,258 12,826 25,432 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 5,953 May 23, 552 82 23,170 7,318 722 6,596 45,388 61,134 -15,746 75 19 56 -22, 798 6,452 June 13, S 26 13, 912 7,561 1,815 5,746 13, 747 20, 659 -6, 912 34 11 23 18,190 v 9,198 f> Preliminary. 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— June January-June Calendar year From or to— April January-April Calendar year Im- Ex- Im- Ex- Im- Ex- Im- Ex- Im- Ex- Im- Exports ports ports ports- ports ports ports ports ports ports ports ports France 126 11,553 1,253 76,715 2,066 162,527 England 1,304 3,451 10,461 Germany 7,749 7 62,238 3,203 92,991 United States 22 Netherlands 20 338 14,382 2,006 Aden and dependen- Spain and Canaries. 2 1 19,468 146 4 359 cies 51 264 1,045 Switzerland . 333 4,228 10 781 Arabia 151 313 1,287 U So n u it t e h d A S m ta e t r e i s ca 276 14,0 2 2 8 1 3 49 2 39 3 ,0 1 9 2 0 9 61,293 B B r a i h ti r s e h in O I c sl e a a n n d ia s 2 2 1 7 3 4,73 5 3 3 ------ 7,7 1 0 1 1 9 British India 687 5,470 10 320 Cevlon 192 1,341 4,151 1 A ustralia 341 84,246 2 24 603 China 95 198 188 New Zealand. 51 2,433 Mesopotamia 172 901 2,613 Egypt 83 94 ~~~3~786 Straits Settlements.. 105 11 273 14 19 28 Rhodesia _. . __ 427 2,539 4 641 Egypt 206 934 6,867 Transvaal _ 12,145 96,117 184 954 Natal 3,447 6,163 29, 595 West Africa . . -_ 383 2,540 10 4,216 8 All other countries 4 206 19 All other countries.. 47 235 269 10,334 1,003 33,434 Total.... 13, 747 20, 659 220,794 159, 624 303,725 377,505 Total 5,964 11 18, 628 14 64,275 48 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

AUGUST, 1930 FEDERAL RESERVE BULLETIN 511 CONDITION OF CENTRAL BANKS [Figures are for the last report date of month] 1930 1929 1930 1929 June May April June June May April June Bank of England (millions of pounds National Bank of Belgium (millions sterling): of belgas): Issue department— Gold 1,202 1,200 1,183 1,003 Gold coin and bullion 156.9 157.2 163.3 159.1 Foreign bills and balances in gold. 734 672 615 460 Notes issued 416.9 417.2 423.3 419.1 Domestic and foreign bills 785 830 829 727 Banking department— Loans to State 315 309 343 Gold and silver coin .9 .9 1.1 Note circulation 2,902 I 2,909 2,877 2,482 Bank notes _.. 58.4 61.1 64.5 56.3 Deposits 170 j 144 105 108 Ban D k G B O P O R u a e i o t t n s h h b s n v o c e e e l k e o t i r r r e e c r v u n s s r d e n d s e m e i t ' e c r n p s e a p u d o n t c a o t e s i i t i n p o s i t r t i i d o c s s e t 1 s s u e s ( i a c l t p a u d s e t r v i r i o t a n i c n e e s c 2 n e t) s...... 3 4 4 2 6 3 1 1 5 8 8 1 3 6 5 5 8 . . . . . . 9 8 8 . 1 9 3 5 5 3 4 5 5 3 5 1 1 6 5 5 9 7 6 3 1 . . . . . . . . 1 6 9 0 3 2 5 8 3 2 6 5 3 5 1 5 1 6 6 9 2 6 0 8 . . . . . . . 0 . 2 6 2 9 0 8 8 3 " 4 3 2 2 2 6 6 3 4 7 8 7 4 3 6 2 . . . . . . . . 8 0 6 4 7 2 1 7 Bank N D L S G C C e o e o u o o o c a p r r t f l u e r n r o d e e r B s s i c . s n t i . r i p a i t c . r a e s . n o y c s z d n u i l d l d a e ( i t n m s io t c s i o n l l u . a i . o b n _ n r ts o s a o d f milreis): 1 1, , 4 4 4 5 2 5 1 3 6 0 0 9 3 2 8 3 7 4 2 1 9 I i I 1 1 , , 4 3 4 4 3 5 1 3 6 0 5 6 9 2 9 1 7 0 0 2 9 1 1 , , 4 3 3 4 5 2 1 0 7 0 5 9 9 2 7 3 6 5 2 7 7 1 1 , , 2 6 4 8 2 5 1 0 5 0 0 3 9 4 4 8 7 6 9 2 3 ank of France (millions of francs): National Bank of Bulgaria (millions Gold 44, 052 43, 809 42, 351 36, 625 of leva): Sight balances abroad 6,905 6,873 6.902 7,300 Gold 1,418 1,411 1,407 1,368 Foreign bills „. 18, 728 18, 690 18,736 18,450 Net foreign exchange 236 264 269 1,436 Loans and discounts. 8,984 10,194 8,296 10,497 Total foreign exchange 837 858 737 1,894 Negotiable bonds 5,395 5,395 5,395 5,769 Loans and discounts 894 983 1,110 1,635 Note circulation 72, 594 73, 078 70, 770 64, 921 Government obligations . 3,279 3,339 3,339 3,578 Public deposits __• 4,938 5,363 6,554 11, 041 Note circulation . 3,396 3,364 3,302 3,972 Other deposits 10,420 10, 062 7,997 7,075 Other sight liabilities. 1,540 1,706 1,737 2,729 Central Bank of Chile (millions of •German Reichsbank (millions of pesos): ! reichsmarks): Gold at home 63 I 63 63 62 Gold reserve 2,469 2,441 2,416 1,831 Deposits abroad 201 337 332 440 Gold abroad __. 150 150 150 80 Loans and discounts 100 101 108 93 Reserves in foreign exchange 459 351 327 361 Note circulation __ 340 ! 344 346 366 L D R o e e a i p c n o h s s s i a m ts n a d r k d s i s i c n o c u i n r t c s ulation 4 1 , , 6 9 4 6 8 92 9 5 2 4 , , 1 8 4 4 1 0 6 2 1 4 2, , 1 6 5 5 6 3 2 7 4 4 3 , , 6 1 8 3 9 3 1 6 9 De is p o h s e i l t d s against which ._ reserve 85 ! j 82 128 Rentenmarks in circulation 449 379 465 Bank of the Republic of Colombia I (thousands of pesos): Bank T G C L o o r o o e a t l f a d d n l I i s t a t n s a t a o l n a y h t d n e o d ( m c d m i i b e r i s a c l c l l u i o a o l u n a n n c t s i e t o s s o n f a l b ir ro e) a : d 1 4 4 5 5 , , , , 8 4 2 8 0 6 9 4 8 3 9 6 15 5 5 3 , , , , 2 0 9 9 0 3 4 4 6 7 0 4 1 4 5 5 6 , , , , 2 3 0 0 0 5 2 6 4 9 6 2 1 4 6 5 6 , , , , 1 9 0 7 5 0 2 5 9 0 4 3 N D L G G o e o o o a p l l t d d e n o s s c a a i i a t b t r s n r c h o d u o a l m d a d t i e i s o . c n ounts ... 2 3 1 1 0 0 3 6 0 , , , , , 4 5 6 5 7 5 1 , 1 7 5 2 3 8 6 0 • 2 3 1 0 9 6 1 3 , , , , , 9 4 3 7 5 0 4 1 1 9 9 1 5 9 1 2 3 1 0 0 9 6 3 , , , , , 1 1 4 8 0 4 9 2 8 9 1 9 8 6 5 4 2 2 1 8 4 9 5 9 , , , , , 8 8 4 6 7 1 6 3 5 5 7 9 8 6 3 Public deposits 300 300 300 300 Czechoslovak National Bank (mil- Other deposits 1,499 1,546 1,514 1,529 lions of Czechoslovak crowns): Gold...: 1,313 I 1,313 1,262 1,157 Bank of Japan (millions of yen): Foreign balances and currency... 2,135 I 2,052 1,872 1,781 Gold. 870 871 895 1,064 Loans and advances 433 ! 319 515 861 Advances and discounts 808 761 749 728 Assets of banking office in liqui- Government bonds 80 90 85 244 dation . 343 345 350 405 Notes issued 1,282 1,186 1,186 1,462 Note circulation 7,196 •,896 6,854 7,612 Total deposits 667 753 693 691 Deposits 439 491 401 415 Danish National Bank (millions of Commonwealth Bank of Australia kroner): (thousands of pounds sterling): Gold 172 172 172 Issue department- Foreign bills, etc 107 98 Gold coin and bullion 22,493 22,151 Loans and discounts 83 74 Securities 5,190 19, 982 Note circulation .. 366 371 362 366 Banking department— Deposits 39 30 31 34 Coin, bullion, and cash 2,215 1,897 Bank of Danzig (thousands of Dan- Money at short call in Lon- zig gulden): don 6,261 15,813 Balances with Bank of England.. 13, 200 14,710 14,820 16, 732 Loans and discounts 13, 350 10,834 Foreign bills, etc 10,686 11, 435 12, 384 12, 612 Securities 21, 208 13, 009 Loans and discounts 21,860 20, 037 19, 425 22,436 Deposits 41, 980 41,113 Note circulation ._.. 36, 505 36, 445 36, 207 38, 259 Bank notes in circulation 39, 797 37, 701 Deposits 2,175 r 1, 541r 2, 084 1,561 Austrian National Bank (millions of Bank of Estonia (thousands of sch D G F O i o o o t l h l r l m i e d e n i r e g g s s n f t o ) i : c r e e x i b g c i h n ll a s n ex g c e h o a f n g th e e reserve.. 3 2 1 1 6 3 4 6 5 1 6 9 2 3 1 1 5 4 6 9 5 6 9 9 kro N D L N G n e o o o e t e a l t p s d e n ) o f s : o c s r i a i e r t n i c s g d u - n l d a e i t s x io c c n o h u an n g ts e 2 3 1 5 6 0 6 , , , , 5 0 1 5 1 8 7 2 6 1 6 4 2 3 1 0 6 6 6 , , , , 8 9 6 5 1 1 2 0 2 7 8 0 3 2 1 2 8 8 6 , , , , 1 3 2 6 4 2 6 9 7 7 8 7 3 2 1 1 7 6 8 , , , , 3 8 5 5 1 8 9 5 5 7 4 2 Government debt 102 110 Government. _ 10,127 10, 034 11,439 10, 909 Note circulation 982 1,044 Bankers 3,790 3,535 3,302 3,763 Deposits 36 37 Other. 2,450 1,934 1,584 2,863 1 Ratio of gold and notes in banking department to deposit liabilities. 2 Notes issued, less amounts held in banking department and in currency note account. 3 Figures not available. r Revised. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

512 FEDERAL RESERVE BULLETIN AUGUST, 1930 CONDITION OF CENTRAL BANKS—Continued [Figures are for the last report date of month] 1930 1929 1930 1929 June May April June June May April June Bank of Finland (millions of Fin- Bank of Poland (millions of zlotys): nish marks): Gold at home _. 483 Gold 302 303 304 301 Gold abroad 219 Balances abroad and foreign Foreign exchange of the reserve... 298 credits 877 1,024 946 545 Other foreign exchange 112 Foreign bills 191 145 122 7 Loans and discounts Domestic bills 710 766 916 1,375 Note circulation Note circulation _ 1,373 1,392 1,440 1,473 Current account of the treasury.. Demand liabilities 151 260 237 199 Other current accounts Bank of Greece (millions of drach- Jank of Portugal (millions of escumas): dos): Gold 580 603 621 594 Gold Net foreign exchange in reserve. _. 2,726 2,667 2,716 3,242 Balances abroad . . 292 Total foreign exchange 3, 555 3,786 3,424 5,439 Bills 271 Loans and discounts 258 241 233 141 Note circulation 1,845 Government obligations _.. 3,489 3,489 3,489 3,656 Deposits 62 50 Note circulation 4,894 4,943 4,991 5,494 Other sight liabilities 1,505 1,460 1,525 1,780 National Bank of Roumania (millions of lei): National Bank of Hungary (mil- ' Gold at home 5,356 lions of pengos): Gold abroad 3,919 Gold 163 163 163 177 Foreign exchange of the reserve.. 1,425 Foreign bills, etc 32 19 10 17 Other foreign exchange 36 Loans and discounts 234 ••220 248 381 Loans and discounts 9,687 Advances to treasury 79 83 83 92 State debt .' 3,797 7,631 Other assets 84 64 58 34 Note circulation 18, 521 19,113 Note circulation 449 441 464 463 Deposits 7, 345 7,341 Deposits 71 31 25 165 Miscellaneous liabilities 46 47 47 State Bank of Russia (thousands of chervontsi): Bank of Java (millions of florins): Loans and discounts .419,166 372, 550 Gold 139 139 139 161 Deposits 196,057 Foreign bills 45 38 37 28 Issue department—• Loans and discounts 56 63 64 114 Gold 18,103 Note circulation. 274 273 269 305 Other precious metals 4,212 Deposits 51 51 46 Foreign exchange 9,361 Note circulation 121, 676 Bank of Latvia (millions of lats): South African Reserve Bank (thou- Gold 24 24 24 sands of pounds sterling): Foreign exchange reserve 49 53 47 Gold 6,923 i 7, 252 Bills 89 91 90 Foreign bills 7,505 | 7,372 Loans 56 56 59 D omestic bills 295 I 855 Note circulation 45 .48 44 Note circulation 8, 550 j 8, 979 Government deposits 101 107 104 Deposits- Other deposits 77 71 Government 1,635 Bankers 4,787 Bank of Lithuania (millions of litas): Others 287 Gold 35 Foreign currency 74 Bank of Spain (millions of pesetas): Loans and discounts 94 Gold Note circulation 102 Silver Deposits 94 Balances abroad Loans and discounts Netherlands Bank (millions of Note circulation florins): Deposits Gold 432 432 432 437 Bank of Sweden (millions of kronor) : Foreign bills 238 236 213 176 Gold Loans and discounts 159 144 145 151 Foreign bills, etc Note circulation 843 804 829 779 Loans and discounts Deposits 31 54 18 21 Note circulation. Deposits Bank of Norway (millions of kroner): Gold 147 147 147 147 Swiss National Bank (millions of Foreign balances and bills 53 35 35 46 francs): Domestic credits 228 232 240 275 Gold Note circulation 316 308 310 318 Foreign balances and bills Foreign deposits 2 2 2 2 Loans and discounts Total deposits. 83 84 97 Note circulation Demand deposits Reserve Bank of Peru (thousands of National Bank of the Kingdom of soles): i Yugoslavia (millions of dinars): Gold 38,786 39,492 44,596 50,636 Gold 93 Gold against demand deposits 4,188 3,400 4,292 3,090 Foreign notes and credits 178 Foreign exchange reserve 17,741 16, 747 11,160 9, 526 Loans and discounts 1,501 Bills 14,239 15, 791 18,466 21,265 Advances to State 2,966 Note circulation 57,453 58,500 59,063 63,269 Note circulation 5,196 Deposits 8,376 8,585 5,086 Deposits 714 1 Figures for June, 1929, 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

Al-(iVST, 1030 FEDERAL RESERVE BULLETIN 513 CONDITION OF COMMERCIAL BANKS Millions of national i currency Millions of dollars Country 1930 1929 1930 April May June April May June Ja a n ry u- Fe a b ry ru- March April May June Canada: Mill ons of doliars Gold and subsidiary coin * 60 60 64 64 61 61 60 60 60 60 Money at call and short notice 415 417 564 594 594 449 428 415 415 417 Current loans and discounts 1,601 1,573 1,572 1,559 1,566 1,641 1,628 1,626 1,601 1,573 Public and railway securities 428 431 516 523 525 431 423 418 428 431 Note circulation 155 165 171 168 187 156 159 163 155 165 Individual deposits 2,472 2,401 2, 596 2,560 2, 559 2,485 2,455 2,459 2,472 2,401 Gold reserve against Dominion notes. 64 65 59 59 59 63 63 63 64 65 Dominion note circulation 174 170 205 197 210 173 169 174 174 170 Argentina: Bank of the Nation— Milions of %esos Gold 7 7 102 98 75 r 6 * 6 6 Other cash 122 126 129 125 121 113 99 98 108 110 Loans and discounts 601 564 524 530 549 534 532 525 533 492 Deposits 729 721 745 742 750 668 649 631 646 629 Other banks in Buenos Aires- Gold 10 10 14 11 13 11 11 10 10 10- Other cash 187 189 164 173 177 155 156 166 166 165 Loans and discounts 880 870 850 846 843 829 789 754 780 759 Deposits 1,004 1,003 981 976 979 916 867 867 890 875 Mill ons of pounds England: sterlino Cash in vault and at banks 187 187 189 917 917 938 935 884 882 911 897 921 Money at call and short notice 133 137 144 694 694 728 692 621 645 650 666 699 Advances and discounts 1,177 1,204 1,231 5, 734 5,701 5, 813 5, 903 5,799 5,631 5,729 5,857 5,993 Investments .. 225 231 233 1,188 1,189 1,185 1,134 1,113 1,096 1,095 1,127 1.132 Deposits. 1,712 1.742 1, 788 8,363 8,429 8,615 8,600 8,341 8,185 8,331 8,478 8 701 France: Millions of francs Bills and national-defense bonds rl9, 717 • _ 793 776 810 834 829 804 773 Loans and advances 11,215 410 404 391 420 426 418 440 Demand deposits 33,811 1,299 1,305 1,303 1,298 1 324 1, 314 1,325 Time deposits 1,444 38 38 39 44 50 58 57 Germany: Millior s of reichsmarks Bill and treasury notes 3, 168 3,169 3 9*fi - 750 770 755 755 776 Due from other banks 1,139 1,154 1 113 276 282 271 275 265 Miscellaneous loans 8,709 8, 642 8, 588 2,039 2, 052 2, 076 2,059 2 046 Deposits 12, 265 12, 240 12, 297 2,867 2,920 2,921 2,916 2, 929 \cceDtances 491 487 481 125 122 117 116 115 Italy: Millions oflire Cash 62 60 Bills discounted 454 441 Due from correspondents 284 286 Due to corresDondents 721 710 Deposits 160 161 1 i ! Denmark: Millions of kroner Loans and discounts 1,831 i 1.814 ! 466 467 473 479 485 488 491 486 Due from foreign banks 114 109 41 38 38 34 31 33 30 29 Due to foreign banks 82 83 21 19 17 20 23 24 22 22 Deposits and current accounts 1, 984 1, 985 522 526 524 520 528 532 532 532 Norway: Mill ions of kroner 1 241 1, 235 i 339 335 336 332 330 329 333 331 Due from foreign banks 110 112 27 28 27 33 31 28 30 30 Due to foreign banks 80 75 23 22 21 20 20 20 21 20 Rediscounts 88 80 27 27 27 25 25 24 24 22 Deposits 1, 500 1, 726 419 417 417 408 408 404 402 463 Sweden: Millions of kionor Loans and discounts 4, 356 4,376 1,105 1,103 1,107 1, 146 1,159 1,166 1, 167 1, 173 Foreign bills and credits abroad 262 255 74 68 70 80 71 72 70 68 Due to foreign banks 156 158 34 32 30 33 32 38 42 42 Rediscounts 91 56 56 62 70 42 41 42 24 15 Deposits 3 692 3. 661 945 930 928 965 970 980 989 981 Japan: Millions of yen Cash on hand 281 257 230 117 154 127 138 119 114 140 128 115 Total loans 2, 129 2, 160 2, 192 917 914 933 1,071 1,075 1,080 1,061 1,077 1,093 Total deposits 2,040 2, 049 2,072 941 938 920 1,033 1,028 1, 022 1,017 1,021 1,03a 1 Not including amounts held abroad. r Revised. 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

514 FEDERAL RESERVE BULLETIN AUGUST, 1930 DISCOUNT RATES OF CENTRAL BANKS [Rate prevailing August 1, 1930, with date of latest change] 1 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 1 Austria 5*6 May 24,1930 England.. 3 May 1,1930 Japan 5.48 Oct. 10,1927 Portugal 71/2 June 2,1930 Belgium 21/2 Aug. 1,1930 Estonia... 8 Oct. 3,1929 Java _. 4/2 Mar. 10,1930 Rumania. 9 Nov. 26,1929 C B h u i l l g e aria 1 6 0 J O u c ly t. 2 2 2 , , 1 1 9 9 2 2 9 8 F F r i a n n la c n e d. 6 2 * * 6 6 A M p a r y . 2 2 8 , , 1 1 9 9 3 3 0 0 L L a it t h v u ia ania... 6 6 -7 A A p p r r . . 1 1 , , 1 1 9 9 3 2 0 8 S R o u u s t s h ia Africa- 8 6 A M u a g r . . 2 1 2 7 , , 1 1 9 9 2 2 7 9 Colombia 8 May 21,1930 Germany. 4 June 21,1930 Netherlands. 3 Mar. 25,1930 Spain. 6 July 18,1930 Czechoslovakia. June 25,1930 Greece 9 Nov. 30,1928 Norway 4/2 Mar. 21,1930 Sweden m Apr. 3,1930 Danzig 4i/2 June 25,1930 Hungary. 5*6 May 30,1930 Peru. 8 July 26,1930 Switzerland. July 10,1930 Denmark May 3,1930 India 5 July 10,1930 Poland 6/2 June 13,1930 Yugoslavia.. 2*6 May 28,1930 Ecuador 9 Jan. 10,1930 Italy 5*6 May 19,1930 5*6 Changes: Belgium—August 1, from 3 to 2*6 per cent; India—July 10, from 6 to 5 per cent; Peru—July 26, from 7 to 8 per cent; Switzerland- July 10, from 3 to 2*6 per cent; Spain—July 18, from 5*6 to 6 per cent. MONEY RATES IN FOREIGN COUNTRIES England (London) Germany (Berlin) Netherlands (Amster- Switzerdam) land Month B a a c n c k ep e t r - s' T b re il a ls s , u 3 ry Day-to-day a B ll a o n w k a e n r c s e ' d P is ri c v o a u t n e t Money for Day-to-day d P is ri c v o a u t n e t Money for d P is ri c v o a u t n e t a m n o c n es t , h s 3 months money on deposits rate 1 month money rate 1 month rate 1929—January 4.32 4.29 3.41 2*6 5.80 7.51 5.13 4.20 4.46 3.28 February 5.05 4.96 4.33 2*6-3*6 5.80 7.07 6.33 4.39 4.78 3.31 March 5.33 5.30 4.51 3*6 6.31 7.30 6.97 4.64 5.05 3.39 April 5.21 5.18 4.43 3*6 6.63 7.57 6.85 5.36 5.81 3.45 May 5.21 5.21 4.67 3*6 7.49 9.65 9.32 5.37 5.88 3.34 June 5.32 5.35 4.23 3*6 7.50 9.89 7.90 5.30 5.30 3.26 July 5.38 5.39 4.54 3*6 7.39 9.35 8.21 5.20 4.90 3.19 August 5.47 5.48 4.35 3*6 7.18 9.43 7.42 5.06 4.68 3.33 September...^ 5.59 5.63 4.39 3*6-4*6 7.18 9.48 7.86 5.36 5.32 3.38 October te 6.13 6.19 5.45 4*6-4 7.28 9.06 8.06 5.15 4.52 3.38 November 5.35 5.30 5.15 4 -3*6 6.89 8.29 7.79 4.26 4.17 3.32 December 4.76 4.75 4.23 3*6-3 6.98 8.78 8.14 3.52 3.87 3.15 1930—January ._ 4.07 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 -2*6 5.53 6.72 6.01 2.80 2.94 2.71 March 2.78 2.55 3.20 2*6-1*6 5.12 6.35 5.57 2.50 2.61 2.60 April 2.48 2.49 2.28 1*6 4.46 5.57 4.40 2.52 3.08 2.61 May 2.16 2.11 1.93 3.89 5.00 3.62 2.29 2.53 2.44 June. 2.31 2.30 1.93 1 3.58 4.80 3.74 1.89 1.93 2.06 Belgium France Italy Sweden (Brussels) (Paris) (Milan) Austria (Vienna) Hungary ( h S o to lm ck ) - Japan (Tokyo) Month d P is r r i c a v o te a u t n e t d P is r r i c a v o te a u t n e t d P is r r i c a v o te a u t n e t d P is r r i c a v o t a e u t n e t M m fo o o r n n e t 1 h y c c i o a P l m ri p m m a e e p r e - r Da m y o - n to ey -d ay 1 ; L m oJ o n n |u t P hs Dis b co il u ls nted ov m e C o rn a n l i e l g y ht 1929—January 3.97 3.50 5.83 6^6-6% 7*4-85/6 726- 85/s 6*4-8*4 4*6-6*6 5.84-6.21 2.37 February 3.97 3.39 6.00 6M6-6M6 7*4-8*4 75/6- 8*6 6*4-8*4 4*6-6*6 5. 66-5.84 2.92 March 3.97 3.37 6.31 6*4 -6% 7*4-8*4 7->6- 8*6 6*6-8*4 4*6-6*6 5.66-5.84 3.10 April.._ __ 3.97 3.44 6.75 65/16-7*4 7?,6-83/4 8*6- 9 7 -9 4*6-6*6 5.48-5.66 3.65 May 3.96 3.49 6.83 7*6 -7*4 8 -9 85/6- 91/2 7 -9 4*6-6*6 5.48-5.66 3.29 June 3.97 3.50 6.75 7Me-7*4 8*4-9 &%- 9% 7 -9 4*6-6*6 5.48-5. 66 3.29 July 4.04 3.50 6.75 7*4 -73/6 8*4 9 8M-10 7 -8*4 4*6-61/2 5.48-5.66 3.10 August 4.93 3.50 6.85 7*4 -7Me 8*4-9 83/4-10*4 7 -8 4*6-6*6 5.48 3.10 September 4.94 3.50 7.01 7H 8*4-9*4 824-10*4 6%-8 5*6-7 5.48 2.92 October _ 4.94 3.50 7.18 8 -8*6 9 -10 9 -10*4 7*4-8 5*6-7 5.48 3.47 November 4.57 3.50 7.00 73/4 -8*4 834-10 8*6- 934 6*6-734 5*6-7 5.48 3.47 December 4.40 3.50 7.00 7*4 -7% 8*6-9*4 8*6- 9% 7 -7*6 5*6-7 5.48 3.10 1930—January 3.40 3.38 7.00 6*6-7*4 75/6-8% 7*6-10 6*6-7*6 4*6-6 5.48 2.74 February 3.41 2.91 6.95 6H6-6*4 7 -8 7 - 9*4 5*6-63/4 4*6-6 5.48 3.83 March.. 3.31 2.70 6.57 5H -6 6?4-734 63/4- 8*6 5*6-6*6 4 -6 5.48 3.83 April 3.33 2.57 6.43 5 -5*6 6*6-7*6 6*6- 814 5 -6*6 3*6-5*6 5.48 3.65 May _ 2.87 2.36 5.81 4H -5 6*6 7 5£6- 8 4%-6 3*6-5*6 5.48 3.10 June 2.78 2.11 5.50 4*6 -41*16 6 -6*6 NOTE.—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

515 AUGUST, 1930 FEDERAL RESERVE BULLETIN FOREIGN EXCHANGE RATES [Monthly averages of daily quotations.1 In cents per unit of foreign currency] Par 1930 Par 1930 Country Monetary unit of ex Country Monetary unit of exchange May June July change May June July EUROPE SOUTH AMERICA Austria Schilling 14.07 14. 0864 14. 0898 14.1073 Argentina Peos. 96.48 87. 2153 84. 4773 82.0511 Belgium Belga 13.90 13.9541 13. 9529 13.9754 Bolivia 2 Boliviano. 36.50 36. 5000 36.1000 36.0000 Bulgaria Lev .72 .7219 .7208 .7218 Brazil Milreis 11. 11.8349 11. 3983! 10.8752 Czechoslovakia. Crown | 2.96 2.9634 2,9655 2. 9658 Chile Peso. 12.17 12. 0746 12. 0777 12. 0908 Denmark Krone I 26.80 26. 7556 26. 7556 26.7914 Colombia do__ 97.33 96. 4962 96. 6328 96. 5542 E H F F G G r i n r u e a n e g r n n e l m l g a c c a e e a n a n n r d d y y . . . . - _ . D P M F R Pe r o e r a a n a u i r n c g c n k c h o h d k s m a m a ark 1 48 2 7 6 3 2 1 3 . . . 4 . . . 9 5 3 8 6 9 2 2 2 0 5 48 2 1 5 3 3 7 2 1 . . . . . . 9 8 4 5 9 2 6 6 7 1 2 9 7 2 7 7 2 6 5 7 2 2 2 0 48 2 1 5 3 7 2 3 1 . . . . . . 8 4 8 5 9 2 6 4 8 1 2 9 6 9 2 7 4 5 ' 8 0 2 1 5 48 2 1 6 3 3 7 2 1 . . . . . . 8 5 5 5 9 2 6 1 6 1 3 9 9 1 9 7 4 6 3 7 1 3 3 1 V E U P C c e e r h u u n r i u a g e n 2 d z u a A u o 4 a S e r y I l A 2 a 2 ___. B M S S P u e o o e s c l l x s o i r v e ic a a r_ n dollar. _ s 1 0 2 2 4 1 3 7 0 9 0 . . . . . 0 4 0 2 3 0 2 0 3 0 8 4 9 3 2 0 2 0 1 2 0 . . 9 . . . 0 0 0 1 2 0 0 6 1 3 0 0 0 0 0 0 0 2 7 0 8 3 2 2 1 8 6 0 9 8 . . . . . 1 9 2 0 5 7 5 7 0 0 3 0 0 4 4 1 0 0 8 6 ! 8 3 2 1 2 7 6 5 0 9 . . . . . 4 0 0 6 6 4 0 0 9 2 3 0 0 2 3 0 0 0 3 8 Italy Lira I 5.26 5. 2414 5. 2380 5. 2383 China4 Shanghai tael... 37. 54 44.6901 37. 0400 36.9428 Netherlands Florin j 40.20 40. 2255 40.1991 40. 2375 China4 Yuan dollar 26.63 31.8181 26. 3800 26.4839 Norway Krone j 26.80 26. 7570 26. 7634 26.7913 Hong Kong 4__. Dollar 27.03 35. 7697J 31. 1427 31.1799 Poland Zloty I 11.2211. 2020 11.2010 11.2085 India Rupee 36. 50 36. 0567 35. 9971 36.0598 Portugal Escudo ! 108.05 4. 5013 4. 4983 4.4947 J J a a p v a a n 2 Y Fl e o n rin 4 40 9 . . 2 8 0 5 4 4 9 0 . . 2 3 3 8 8 0 5 9 1 4 40 9 . . 2 4 2 0 9 7 2 0 4 4 0 9 . . 2 3 5 5 6 9 5 7 Rumania Leu ; .60 .5953 .5947 . 5955 Straits Settle- Singapore dol- 56. 78 55. 8892| 55. 9132 55. 9408 Russia 2 Chervonetz I 514.603 515.00003 515.00003 515.0000 ments. lar. Spain Peseta j 19.3012. 2283 11. 7490 11. 5243 Turkey Turkish pound. _ 439. 65 7 47. 0823 8 47. 0542 9 46. 9862 Sweden Krona 26.80 26. 8342 26. 26.8837 Switzerland Franc 19.30 19. 3550 19.3669 19.4279 AFRICA Yugoslavia.. Dinar 19.30 1. 7669 1. 7661 1.7704 Egypt Egyptian pound 494. 317 498. 67893 498. 68549 498. 3372 NORTH AMERICA ' Canada Dollar- 100. 00 99. 8360 99. 9913 100.0697 Cuba Peso 100. 00100. 0032 99.9403 99.9092 Mexico do_ 49. 47. 5356 47. 4135 47.1287 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 July, 1930, computed by multiplying silver content of unit by New York average price of silver for July, 1930, which was $0.34656 per fine ounce. On the same basis, parity in July, 1929, for the Chinese-Mexican dollar was 41.50 cents; for the Shanghai tael, 57.22 cents; for the Yuan dollar, 40.59 cents; and for the Hong Kong dollar, 41.20 cents. 5 Monetary law of February 10, 1930. 6 Rate for Peruvian pound. 7 March, 1930. s April, 1930. « May, 1930. Back figures.—See BULLETIN for January, 1930, 1929, and 1928 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

516 FEDERAL RESERVE BULLETIN AUGUST, 1930 PRICE MOVEMENTS IN PRINCIPAL COUNTRIES WHOLESALE PRICES—ALL COMMODITIES UnitedStates 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 r95 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 May 96 89 '93 90 136 122 643 r546 136 126 452 390 223 189 June 96 87 '94 88 136 121 629 540 135 125 447 382 222 181 July 98 96 137 624 138 440 220 August 98 98 136 598 138 437 218 September 98 97 136 608 138 437 218 October 96 97 136 607 137 436 216 November 94 96 134 603 - -. 136 431 211 December __. 94 96 133 596 134 425 205 Australia Austria Belgium China Czechoslovakia Denmark Du I t n c d h i e E s ast 1929 1930 1929 1930 1929 1930 1929 1930 1929 1930 1929 1930 1929 1930 January - 157 151 128 125 867 808 160 170 139 126 151 143 149 143 February 156 147 130 123 865 791 162 175 139 124 159 140 149 141 March 157 144 133 121 869 774 164 174 141 122 154 136 150 139 April 158 146 134 119 862 111 161 174 141 121 150 135 148 138 May 156 148 135 118 851 774 162 173 137 120 148 132 150 June 158 134 121 848 750 163 186 134 119 146 130 149 July 159 132 858 163 135 149 149 Aucust 160 132 850 165 134 150 148 September 163 128 846 167 132 150 148 October _ _ 161 127 838 168 131 149 147 November 158 125 834 165 130 147 146 December 154 123 823 165 128 146 144 Egypt Finland Hungary India Netherlands New Zealand Norway 1929 1930 1929 1930 1929 1930 1929 1930 1929 1930 1929 1930 1929 1930 January . 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 96 140 123 144 122 155 154 148 141 May 114 101 98 90 123 96 139 121 142 118 155 146 140 June - 108 100 98 90 122 138 116 141 155 147 139 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 95 107 137 137 155 146 December 110 95 107 134 135 154 146 Peru Poland Russia SouthAfrica Spain Sweden Switzerland 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 April 185 179 98 89 179 131 117 174 172 141 124 140 129 May 186 179 95 86 180 171 140 123 139 128 June 186 178 95 181 170 139 139 126 July _.. 187 96 180 129 169 140 143 August . 187 95 180 170 141 143 September 186 94 181 171 140 142 October. 186 93 182 128 172 138 142 November _ __ 184 95 181 171 135 140 December 182 92 182 172 134 139 NOTE.—All of the indexes shown, with two or three exceptions, are compiled by official agencies in the countries to which they relate, as indicated specifically in the BULLETIN for March (p. 124), where references are also given to sources in which current figures of the index numbers may be found. The base periods 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—1913- Switzerland—July, 1914. ' Annual indexes for the years 1925-1929 and in certain cases for 1913 and 1914 were given in the BULLETIN for April (p. 256). r Revised. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

517 AUGUST, 1930 FEDERAL RESERVE BULLETIN 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» p l r H e o a a i d n t d h u d e e c s r ts p T ro e d x u ti c le tsm F li u a g e t h e l t r i a i n a n g l d sp M r m o a e d e n t t u d a a c l l s ts m Bu at i e ld ri i a n l g s c C a d h l r s e u m a g n s i d - f H u g r o o i n n u o i g d s s e h s - - l M an is e c o e u l s - m t c u t o i o r e m d a s i l - - 1929—June 103 93 | 93 I 105 96 93 97 December 102 99 91 | 107 90 81 102 96 94 97 92 1930—January.. 101 97 90 | 105 89 80 101 96 93 97 91 February- 98 96 90 i 104 88 79 101 96 92 97 91 March 95 94 103 87 77 101 95 91 97 90 April 96 95 103 86 78 99 95 91 96 May 93 92 103 85 78 97 93 90 96 June 89 91 102 82 76 95 90 89 90 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 i t sh O fo t o h d e s r Total I a r n o d n Coal m O i a n t n e h d r e a r ls Cotton Wool Miscelsteel metals 1929—June 136 132 131 115 121 118 December 133 141 132 158 135 128 115 130 111 144 1930—January.. 131 139 129 154 135 127 115 130 110 141 February. 128 135 122 152 133 124 115 129 110 134 March 125 129 114 145 131 122 115 127 107 131 April 124 129 117 141 130 121 114 122 104 131 May 122 127 114 136 132 119 114 119 95 .130 June 121 127 111 135 137 117 114 117 93 126 Farm and food products Industrial products FRANCE (1913=100) | j 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 ls Textiles l H e a a i n t d h d e e s r c C al u h c p e t m r s o i d - -Rubber Paper C b e a e r m i t n c c d e . k n , t 1929—June 629 584 614 565 I 560 758 450 586 126 December. 596 546 695 456 I 640 568 684 433 603 97 1930—January. _ 576 512 647 432 i 630 571 | 655 438 602 89 February. 567 503 634 424 623 570 i 639 439 613 94 March 558 495 622 419 ! 612 562 621 425 607 90 April 548 481 599 411 606 551 620 405 598 86 May •-546 '483 -570 431 , 601 547 615 405 592 81 June 540 488 587 428 585 542 583 390 593 74 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 Coal1 Iron N r o o n u fe s rmetals 1929—June 120 122 136 130 118 December. 134 126 120 126 146 105 115 129 138 130 112 1930—January __ 132 122 117 128 134 115 128 138 130 112 February. 129 116 112 123 129 115 127 138 129 111 March 126 110 109 116 118 118 126 138 129 109 April 127 112 118 113 no 118 125 136 128 103 May 126 111 119 110 109 117 124 136 128 90 June 125 110 118 109 no 115 122 135 126 87 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 T o e i c l f s h a n t a s i n c d al Rubber a m n P d at 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 m o o o e n d r - s s' 1929—June 141 123 151 158 138 172 December 128 116 127 i 130 151 161 156 140 169 1930—January.. 125 116 127 128 151 158 156 140 168 February. 118 114 127 ! 127 150 158 155 139 166 March 114 111 127 I 126 150 157 153 139 163 April 116 110 127 127 149 157 152 139 162 May 116 111 126 135 147 156 152 139 161 June 111 112 126 : 134 145 153 151 138 161 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 G§n§rale de la France, Supplement Mensuel, Statistique GSnSrale de la France; and Germany—Wirtschaft und Statistik, Statistisches Reichsamt. 1 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 nonagrieultural index omits merely farm products. •" Revised. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

518 FEDERAL RESERVE BULLETIN AUGUST, 1930 LAW DEPARTMENT Amendment to law with reference to the election of [PUBLIC—No. 435—71ST CONGRESS] directors of Federal reserve banks. [S. 3627] There is published below the text of an act of Congress, approved June 26, 1930, amending An Act To amend the Federal Reserve Act so as to enable national banks voluntarily to surrender the right to exercise trust powers and section 4 of the Federal reserve act with to relieve themselves of the necessity of complying with the laws governing banks exercising such powers, and for other purposes reference to the election of directors of Federal reserve banks. This amendment merely clari- Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, fies an ambiguity in existing law. That subsection (k) of section 11 of the Federal Reserve Act (subsection (k) of section 248, United States Code, [PUBLIC—No. 437—71ST CONGRESS] title 12), as amended, be further amended.by adding [S. 4096] at the end thereof a new paragraph reading as follows: An Act To amend section 4 of the Federal Reserve Act "Any national banking association desiring to Be it enacted by the Senate and House of Representa- surrender its right to exercise the powers granted under tives of the United States of America in Congress assem- this subsection, in order to relieve itself from the bled, That section 4 of the Federal Reserve Act, as necessity of complying with the requirements of this amended (U. S. C, title 12, sec. 304), be further subsection, or to have returned to it any securities which amended by striking out that paragraph thereof it may have deposited with the State authorities for which reads as follows: the protection of private or court trusts, or for any other "Any candidate having a majority of all votes cast purpose, may file with the Federal Reserve Board a in the column of first choice shall be declared elected. certified copy of a resolution of its board of directors If no candidate have a majority of all the votes in the signifying such desire. Upon receipt of such a resolufirst column, then there shall be added together the tion, the Federal Reserve Board, after satisfying itself votes cast by the electors for such candidates in the that such bank has been relieved in accordance with seeond column and the votes cast for the several State law of all duties as trustee, executor, administracandidates in the first column. If any candidate then tor, registrar of stocks and bonds, guardian of estates, have a majority of the electors voting, by adding to- assignee, receiver, committee of estates of lunatics or gether the first and second choices, he shall be declared other fiduciary, under court, private, or other appointelected. If no candidate have a majority of electors ments previously accepted under authority of this voting when the first and second choices shall have subsection, may, in its discretion, issue to such bank a been added, then the votes cast in the third column for certificate certifying that such bank is no longer other choices shall be added together in like manner, authorized to exercise the powers granted by this and the candidate then having the highest number of subsection. Upon the issuance of such a certificate by votes shall be declared elected. An immediate report the Federal Reserve Board, such bank (1) shall no of election shall be declared." longer be subject to the provisions of this subsection or and by inserting in lieu thereof the following: the regulations of the Federal Reserve Board made "Any candidate having a majority of all votes cast pursuant thereto, (2) shall be entitled to have returned in the column of first choice shall be declared elected. to it ^ny securities which it may have deposited with the If no candidate have a majority of all the votes in the State* authorities for the protection of private or court first column, then there shall be added together the trusts, and (3) shall not exercise thereafter any of the votes cast by the electors for such candidates in the powers granted by this subsection without first applysecond column and the votes cast for the several ing for and obtaining a new permit to exercise such candidates in the first column. The candidate then powers pursuant to the provisions of this subsection. having a majority of the electors voting and the highest The Federal Reserve Board is authorized and emnumber of combined votes shall be declared elected. powered to promulgate such regulations as it may deem If no candidate have a majority of electors voting and necessary to enforce compliance with the provisions of the highest number of votes when the first and second this subsection and the proper exercise of the powers choices shall have been added, then the votes cast in granted therein.'* the third column for other choices shall be added Approved, June 26, 1930. together in like manner, and the candidate then having the highest number of votes shall be declared elected. An immediate report of election shall be declared." Approved, June 26, 1930. Amendment to law regarding cost of examinations of member banks. Amendment to law regarding surrender of trust powers There is published below the text of an act by national banks. of Congress, approved June 26, 1930, amend- There is published below the text of an act ing the seventh paragraph of section 9 of the of Congress, approved June 26, 1930, amending Federal reserve act and section 5240 of the section 11 (k) of the Federal reserve act so as to United States Revised Statutes with reference authorize national banks under certain circum- to the assessment of costs of examinations stances to surrender their right to exercise trust against member banks of the Federal reserve powers: system: Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

AUGUST, 1930 FEDERAL RESERVE BULLETIN 519 [PUBLIC—No. 434—71ST CONGRESS] examinations may, in the discretion of the Federal Reserve Board, be furnished to the State authorities [S. 4851 having supervision of such banks, to officers, direc- An Act To amend section 9 of the Federal Reserve Act and section 5240 tors, or receivers of such banks, and to any other of the Revised Statutes of the United States, and for other purposes. proper persons." Be it enacted by the Senate and House of Representa- SEC. 2. That section 5240, United States Revised tives of the United States of America in Congress assem- Statutes, as amended by section 21 of the Federal bled, That the seventh paragraph of section 9 of the Reserve Act, is further amended in the third para- Federal Reserve Act, as amended (U. S. C, title 12, graph thereof (U. S. C, title 12, sec. 483) by striking sec. 326), is further amended by striking out the last out the second sentence of such paragraph and insertsentence thereof and inserting the following: ing in lieu thereof the following: "The expenses of all examinations, other than those "The expense of such examinations may, in the made by State authorities, may, in the discretion of discretion of the Federal Reserve Board, be assessed the Federal Reserve Board, be assessed against the against the banks examined, and, when so assessed, banks examined and, when so assessed, shall be paid shall be paid by the banks examined." by the banks examined. Copies of the reports of such Approved, June 26, 1930. REGULATIONS OF THE FEDERAL RESERVE BOARD Amendment to Regulation A regarding rediscounts by REGULATION A, SERIES OF 1930 Federal reserve banks. (Superseding Regulation A of 1928) The Federal Reserve Board recently adopted DISCOUNTS UNDER SECTIONS 13 AND 13a a number of amendments to its Regulation A with regard to rediscounts by Federal reserve ARTICLE A.—NOTES, DRAFTS, AND BILLS OF EXbanks. These amendments which are effective CHANGE on August 1, 1930, were adopted so as to make SECTION I.—General statutory provisions the provisions of the regulations conform to Any Federal reserve bank may discount for any of certain recent amendments to the law, as its member banks any note, draft, or bill of exchange: follows: Provided— 1. In subsection (d) of Section I so as to (a) It has a definite maturity at the time of discount conform to the act of April 12, 1930, which of not more than 90 days, exclusive of days of grace; amended the fourth paragraph of section 13 except that (1) if drawn or issued for an agricultural of the Federal reserve act so as to permit purpose or based on livestock, it may have a maturity Federal reserve banks to rediscount for mem- at the time of discount of not more than nine months, ber banks the same amount of paper of any exclusive of days of grace, and (2) certain bills of exone borrower which a national bank is per- change payable at sight or on demand are eligible even mitted to acquire from a single borrower under though they have no definite maturity (see Section the terms of section 5200 of the Revised VII, below); Statutes as amended by the McFadden Act. (6) It has been issued or drawn for an agricultural, 2. In Section VII so as to conform to the industrial, or commercial purpose, or the proceeds have act of May 29, 1928, which amended the third been used or are to be used for such a purpose, or it is a paragraph of section 13 so as to permit the note, draft, or bill of exchange of a factor issued as such rediscount of sight drafts (a) when drawn to making advances exclusively to producers of staple cover the shipment of nonagricultural, non- agricultural products in their raw state; perishable, readily marketable staples as well (c) It was not issued or drawn for the purpose of as nonperishable, readily marketable, staple carrying or trading in stocks, bonds, or other investagricultural products, and (b) when drawn to ment securities, except obligations of the Government finance the exportation of such staples as well of the United States; i as the domestic shipment thereof. (d) The aggregate of notes, drafts, and bills upon 3. To conform to the provisions of the act which any person, copartnership, association, or corof June 17, 1929, authorizing the issuance of poration is liable as maker, acceptor, indorser, drawer, Treasury bills, by substituting " obligations of or guarantor, rediscounted for any member bank, shall the Government of the United States" wher- at no time exceed the amount for which such person, ever the regulation previously contained the copartnership, association, or corporation may lawfully become liable to a national banking association words ' 'bonds and notes of the Government of under the terms of section 5200 of the Revised Statutes, the United States" or "bonds or notes of the as amended; United States," and adding a definition of the first phrase by footnote. i When used in this regulation, the words "obligations of the Govern- Regulation A as thus amended reads as ment of the United States" shall be construed to include only bonds, notes, certificates of indebtedness and Treasury bills of the Government follows: of the United States. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

520 FEDERAL RESERVE BULLETIN AUGUST, 1930 (e) It is indorsed by a member bank; and member bank, in form to be prescribed by the Federal (/) It conforms to all applicable provisions of this reserve bank, that— regulation. (1) To the best of its knowledge and belief, such No Federal reserve bank may discount for any mem- notes, drafts, or bills of exchange have been issued or ber State bank or trust company any of the notes, drawn, or the proceeds thereof have been or are to be drafts, or bills of exchange of any one borrower who is used, for such a purpose as to render them eligible liable for borrowed money to such State bank or trust for discount under the terms of this regulation, and company in an amount greater than that which could (2) That such notes, drafts, or bills of exchange be borrowed lawfully from such State bank or trust have not been acquired from a nonmember bank, or, company were it a national banking association. if so acquired, that the applying member bank has Any Federal reserve bank may make advances to its received permission from the Federal Reserve Board to member banks on their promissory notes for a period discount with the Federal reserve bank paper acquired not exceeding 15 days, provided that they are secured from nonmember banks. by notes, drafts, bills of exchange, or bankers' accept- In the case of a member State bank or trust company, ances which are eligible for discount or for purchase by every such application must contain a certificate or Federal reserve banks, or by the deposit or pledge of guaranty to the effect that the borrower is not liable, obligations of the Government of the United States. and will not be permitted to become liable during the time his paper is held by the Federal reserve bank, to SECTION II.—General character of notes, drafts, and bills such bank or trust company for borrowed money in an of exchange eligible amount greater than that which could be borrowed The Federal Reserve Board, exercising its statutory lawfully from such State bank or trust company right to define the character of a note, draft, or bill of were it a national banking association. exchange eligible for discount at a Federal reserve bank has determined that— SECTION IV.—Promissory notes (a) It must be a negotiable note, draft, or bill of (a) Definition.—A promissory note, within the exchange which has been issued or drawn, or the pro- meaning of this regulation, is defined as an uncondiceeds of which have been used or are to be used in the tional promise, in writing, signed by the maker, to first instance, in producing, purchasing, carrying, or pay, in the United States, at a fixed or determmable marketing goods 2 in one or more of the steps of the future time, a sum certain in dollars to order or to process of production, manufacture, or distribution, or bearer. for the purpose of carrying or trading in obligations of (b) Evidence of eligibility and requirement of the Government of the United States, and the name statements.—A Federal reserve bank must be satisfied of a party to such transaction must appear upon it as by reference to the note or otherwise that it is eligible maker, drawer, acceptor, or indorser. for discount, and the member bank shall certify in its (6) It must not be a note, draft, or bill of exchange application whether a financial statement of the the proceeds of which have been or are to be advanced borrower is on file with it. or loaned to some other borrower, except as to paper A recent financial statement of the borrower must described below under Sections VI (b) and VIII. be on file with the member bank if it has discounted the (c) It must not be a note, draft, or bill of exchange note for a nondepositor or a nonmember bank, and in the proceeds of which have been used or are to be used all other cases unless—• for permanent or fixed investments of any kind, (1) It is secured by a warehouse, terminal, or other such as land, buildings, or machinery, or for any other similar receipt covering goods in storage, by a valid capital purpose. prior lien on livestock which is being marketed or {d) It must not be a note, draft, or bill of exchange fattened for market, or by obligations of the Governthe proceeds of which have been used or are to be used ment of the United States; or for investments of a purely speculative character. (2) The aggregate of obligations of the borrower (e) It may be secured by the pledge of goods or discounted and offered for discount at the Federal collateral of any nature, including paper which is reserve bank by the member bank is less than a sum ineligible for discount, provided it (the note, draft, equal to 10 per cent of the paid-in capital of the member or bill of exchange) is otherwise eligible. bank and is less than $5,000. Whenever the borrower has closely affiliated or SECTION III.—Applications for discount subsidiary corporations or firms, the borrower's Every application for the discount of notes, drafts, financial statement shall be accompanied by separate or bills of exchange must contain a certificate of the financial statements of such affiliated or subsidiary corporations or firms, unless the statement of the 2 When used in this regulation the word' 'goods" shall be construed to borrower clearly indicates that such note is both eligible include goods, wares, merchandise, or agricultural products, including livestock. from a legal standpoint and acceptable from a credit Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

AUGUST, 1930 FEDERAL RESERVE BULLETIN 521 standpoint or unless financial statements of such issued or drawn for an agricultural purpose, if the affiliated or subsidiary corporations or firms are on proceeds thereof have been or are to be— file with the Federal reserve bank. (1) Advanced by such association to any mem- A Federal reserve bank shall use its discretion in bers thereof for an agricultural purpose; or taking the steps necessary to satisfy itself as to eligi- (2) Used by such association in making paybility. Compliance of a note with Section II (c) may ments to any members thereof on account of be evidenced by a statement of the borrower showing a agricultural products delivered by such members reasonable excess of quick assets over current liabilities. to the associations; or A Federal reserve bank may, in any case, require the (3) Used by such association to meet expendifinancial statement of the borrower to be filed with it. tures incurred or to be incurred by the association in connection with the grading, processing, pack- SECTION V.—Drafts, bills of exchange, and trade ing, preparation for market, or marketing of any acceptances agricultural product handled by such association (a) Definition.—A draft or bill of exchange, within for any of its members. the meaning of this regulation, is defined as an uncon- These are not the only classes of paper of such ditional order in writing, addressed by one person to associations which are eligible for discount, however, another, signed by the person giving it, requiring the and any other paper of such associations which comperson to whom it is addressed to pay in the United plies with the applicable requirements of this regula- States, at a fixed or determinable future time, a sum tion may be discounted on the same terms and condicertain in dollars to the order of a specified person; tions as the paper of any other person or corporation. and a trade acceptance is defined as a draft or bill of Paper of cooperative marketing associations the exchange, drawn by the seller on the purchaser of proceeds of which have been or are to be used (1) to goods sold,3 and accepted by such purchaser. defray the expenses of organizing such associations, or (2) for the acquisition of warehouses, for the pur- (b) Evidence of eligibility and requirement of statechase or improvement of real estate, or for any other ments.—A Federal reserve bank shall take such steps permanent or fixed investment of any kind, are not as it deems necessary to satisfy itself as to the eligieligible for discount, even though such warehouses or bility of the draft, bill, or trade acceptance offered for other property are to be used exclusively in connection discount and may require a recent financial statement with the ordinary operations of the association. of one or more parties to the instrument. The draft, bill, or trade acceptance should be drawTn so as to (c) Eligibility.—To be eligible for discount, agriculevidence the character of the underlying transaction, tural paper, whether a note, draft, bill of exchange, or but if it is not so drawn evidence of eligibility may trade acceptance, must comply with the respective consist of a stamp or certificate affixed by the acceptor sections of this regulation which would apply to it if or drawer in a form satisfactory to the Federal reserve its maturity were 90 days or less. bank. (d) Discounts for Federal intermediate credit banks.— Any Federal reserve bank may discount agricultural SECTION VI.—Agricultural paper paper for any Federal intermediate credit bank; but (a) Definition.—Agricultural paper, within the mean- no Federal reserve bank shall discount for any Federal ing of this regulation, is defined as a negotiable note, intermediate credit bank any such paper which bears draft, or bill of exchange issued or drawn, or the pro- the indorsement of any nonmember State bank or trust ceeds of which have been or are to be used, for agricul- company which is eligible for membership in the Federal tural purposes, including the production of agricultural reserve system under the terms of section 9 of the Federal products, the marketing of agricultural products by Reserve Act as amended. In discounting such paper the growers thereof, or the carrying of agricultural each Federal reserve bank shall give preference to the products bjr the growers thereof pending orderly mar- demands of its own member banks and shall have due keting, and the breeding, raising, fattening, or market- regard to the probable future needs of its own member ing of livestock, and which has a maturity at the time banks. Except with the permission of the Federal of discount of not more than nine months, exlusive of Reserve Board, no Federal reserve bank shall discount days of grace. paper for any Federal intermediate credit bank when (b) Paper of cooperative marketing associations.— its own reserves amount to less than 50 per cent of its Under the express terms of section 13a, notes, drafts, own aggregate liabilities for deposits and Federal bills of exchange, or acceptances issued or drawn by reserve notes in actual circulation. Except with the cooperative marketing associations composed of pro- permission of the Federal Reserve Board, the aggregate ducers of agricultural products are deemed to have been amount of paper discounted by all Federal reserve banks for any one Federal intermediate credit bank shall at 3 A consignment of goods or a conditional sale of goods can not be no time exceed an amount equal to the paid-up and considered "goods sold" within the meaning of this clause. The pur- unimpaired capital and surplus of such Federal interchase price of goods plus the cost of labor in effecting their installation mediate credit bank. may be included in the amount for which the trade acceptance is drawn. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

522 FEDERAL RESERVE BULLETIN AUGUST, 1930 (e) Limitations.—The Federal Reserve Board pre- such paper for rediscount and shall state fully the facts scribes no limitations on the aggregate amount of notes, which gave rise to each application and the reasons drafts, bills of exchange, and acceptances with maturi- why the applying member banks feel justified in ties in excess of three months, but not exceeding six seeking such permission. Such applications shall be months, exclusive of days of grace, which may be addressed to the Federal Reserve Board, but shall be discounted by any Federal reserve bank; but the ag- filed with the Federal reserve agent, who shall forgregate amount of notes, drafts, bills of exchange, and ward them promptly to the Federal Reserve Board acceptances with maturities in excess of six months, with his recommendations. but not exceeding nine months, which may be dis- (c) The Federal Reserve Board hereby grants its counted by any Federal reserve bank shall not exceed permission for Federal reserve banks to discount for 10 per cent of its total assets. member banks paper bearing the signature or indorsement of Federal intermediate credit banks, if such SECTION VII.—Sight drafts secured by bills of lading paper is otherwise eligible under the law and this A Federal reserve bank may discount for any of its regulation. member banks bills of exchange payable at sight or on demand which— ARTICLE B.—BANKERS' ACCEPTANCES 4 (a) Grow out of the domestic shipment or the export- SECTION X.—Definition ation of nonperishable, readily marketable staples; and A banker's acceptance within the meaning of this (6) Are secured by bills of lading or other shipping regulation is defined as a draft or bill of exchange, documents conveying or securing title to such staples. whether payable in the United States or abroad and All such bills of exchange shall be forwarded promptly whether payable in dollars or some other money, of for collection, and demand for payment shall be made which the acceptor is a bank or trust company, or a promptly, unless the drawer instructs that they be held firm, person, company, or corporation engaged generally until arrival of car, in which event they must be in the business of granting bankers' acceptance credits. presented for payment within a reasonable time after notice of arrival of such staples at their destination SECTION XI.—Eligibility has been received. In no event shall any such bill be held by or for the account of a Federal reserve bank for A Federal reserve bank may discount any such bill a period in excess of 90 days. bearing the indorsement of a member bank and having In discounting such bills Federal reserve banks may a maturity at the time of discount not greater than that compute the interest to be deducted on the basis of prescribed by Section XII (a), which has been drawn the estimated life of each bill and adjust the amount thus under a credit opened for the purpose of conducting or deducted after payment of such bills to conform settling accounts resulting from a transaction or transto the actual life thereof. actions involving any one of the following: (1) The shipment of goods between the United SECTION VIII.—Factors' paper States and any foreign country, or between the Notes, drafts, and bills of exchange of factors issued United States and any of its dependencies or as such for the purpose of making advances exclusively insular possessions, or between foreign countries, to producers of staple agricultural products in their or between dependencies or insular possessions raw state are eligible for discount with maturities not and foreign countries; in excess of 90 days, exclusive of days of grace, irre- (2) The shipment of goods within the United spective of the requirements of Sections II (a) and II (6) States, provided shipping documents conveying security title are attached at the time of accep- SECTION IX.—Paper acquired from nonmember banks tance; or (a) Except with the permission of the Federal Re- (3) The storage in the United States or in any serve Board, no Federal reserve bank shall discount foreign country of readily marketable staples,5 any paper acquired by a member bank from a non- provided that the bill is secured at the time of member bank or bearing the signature or indorsement acceptance by a warehouse, terminal, or other of a nonmember bank; except that Federal reserve similar receipt, conveying security title to such banks may discount bankers' acceptances and other staples, issued by a party independent of the cuseligible paper bearing the signature or indorsement 4 For regulations governing the acceptance by member banks of drafts of a nonmember bank, if such paper was bought by and bills of exchange drawn on them, see Regulation C. the offering bank in good faith on the open market 5 A readily marketable staple within the meaning of these regulations from some party other than the nonmember bank. may be denned as an article of commerce, agriculture, or industry of such (b) Applications for permission to rediscount paper uses as to make it the subject of constant dealings in ready markets with such frequent quotations of price as to make (a) the price easily and acquired from nonmember banks shall be made in definitely ascertainable and (b) the staple itself easy to realize upon by writing by the member banks which desire to offer sale at any time. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

523 AUGUST, 1930 FEDERAL RESERVE BULLETIN tomer or issued by a grain elevator or warehouse (b) General conditions as to maturity of domestic company duly bonded and licensed and regularly acceptances.—Although a Federal reserve bank may inspected by State or Federal authorities with legally discount an acceptance having a maturity at whom all receipts for such staples and all transfers the time of discount not greater than that prescribed thereof are registered and without whose consent under (a), it may decline to discount any acceptance no staples may be withdrawn; and provided the maturity of which is in excess of the usual or cusfurther that the acceptor remains secured through- tomary period of credit required to finance the underout the life of the acceptance. In the event that lying transaction or which is in excess of that period the goods must be withdrawn from storage prior reasonably necessary to finance such transaction. to the maturity of the acceptance or the retire- Since the purpose of permitting the acceptance of ment of the credit, a trust receipt or other similar drafts secured by warehouse receipts or other such document covering the goods may be substituted documents is to permit of the temporary holding of in lieu of the original document, provided that such readily marketable staples in storage pending a reasonsubstitution is conditioned upon a reasonably ably prompt sale, shipment, or distribution, no such prompt liquidation of the credit. In order to acceptance should have a maturity in excess of the time insure compliance with this condition it should be ordinarily necessary to effect a reasonably prompt required, when the original document is released, sale, shipment, or distribution into the process of either (a) that the proceeds of the goods will be manufacture or consumption. applied within a specified time toward a liquidation of the acceptance credit or (6) that a new SECTION XIII.—Evidence of eligibility document, similar to the original one, will be A Federal reserve bank must be satisfied, either by resubstituted within a specified time. reference to the acceptance itself or otherwise, that the Provided, That acceptances for any one customer in acceptance is eligible for discount under the terms excess of 10 per cent of the capital and surplus of the of the law and the provisions of this regulation. The accepting bank must remain actually secured through- bill itself should be drawn so as to evidence the characout the life of the acceptance, and in the case of the ter of the underlying transaction, but if it is not so acceptances of member banks this security must drawn evidence of eligibility may consist of a stamp or •consist of shipping documents, warehouse receipts, or certificate affixed by the acceptor in form satisfactory other such documents, or some other actual security to the Federal reserve bank. growing out of the same transaction as the acceptance, such as documentary drafts, trade acceptances, terminal receipts, or trust receipts which have been Amendment to Regulation J regarding check clearing issued under such circumstances, and which cover and collection goods of such a character, as to insure at all times a Effective September 1, 1930, the Federal continuance of an effective and lawful lien in favor of Reserve Board has amended its Regulation J, the accepting bank, other trust receipts not being considered such actual security if they permit the which governs the clearing and collection of •customer to have access to or control over the goods checks through Federal reserve banks, to read A Federal reserve bank may also discount any bill as follows: drawn by a bank or banker in a foreign country or •dependency or insular possession of the United States REGULATION J, SERIES OF 1930 for the purpose of furnishing dollar exchange as pro- (Superseding Regulation J of 1929) vided in Regulation C, provided that it has a maturity at the time of discount of not more than three months, CHECK CLEARING AND COLLECTION exclusive of days of grace. SECTION I.—Statutory provisions Section 16 of the Federal reserve act authorizes the SECTION XII.—Maturities Federal Reserve Board to require each Federal reserve (a) Legal requirements.—No such acceptance is bank to exercise the function of a clearing house for eligible for discount which has a maturity at the time its member banks, and section 13 of the Federal reserve of discount in excess of 90 days' sight, exclusive of days act, as amended by the act approved June 21, 1917, of grace, except that acceptances drawn for agricul- authorizes each Federal reserve bank to receive from tural purposes and secured at the time of acceptance by any nonmember bank or trust company, solely for the warehouse receipts or other such documents conveying purposes of exchange or of collection, deposits of current or securing title covering readily marketable staples funds in lawful money, national-bank notes, Federal may be discounted with maturities at the time of dis- reserve notes, checks and drafts payable upon prescount of not more than six months' sight, exclusive of entation, or maturing notes and bills, provided such days of grace. nonmember bank or trust company maintains with its Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

524 FEDERAL RESERVE BULLETIN AUGUST, 1930 Federal reserve bank a balance sufficient to offset the SECTION IV.—Time schedule and availability of credits items in transit held for its account by the Federal (1) Each Federal reserve bank will publish a time reserve bank. schedule showing the time at which any item sent to it SECTION II.—General requirements will be counted as reserve and become available for withdrawal or other use by the sending bank. For all In pursuance of the authority vested in it under checks received, the sending bank will be given imthese provisions of law, the Federal Reserve Board, mediate credit, or deferred credit, in accordance with desiring to afford both to the public and to the various such time schedule, and as provided below. banks of the country a direct, expeditious, and eco- (2) For all such checks as are received for immediate nomical system of check collection and settlement of credit in accordance with such time schedule, immediate balances, has arranged to have each Federal reserve credit, subject to final payment, will be given upon the bank exercise the functions of a clearing house and books of the Federal reserve bank at full face value in collect checks for such of its member banks as desire the reserve account or clearing account upon day of to avail themselves of its privileges and for such nonreceipt, and the proceeds will at once be counted as member State banks and trust companies as may reserve and become available for withdrawal or other maintain with the Federal reserve bank balances use by the sending bank, provided, however, that the sufficient to qualify them under the provisions of Federal reserve bank may in its discretion refuse at any section 13 to send items to Federal reserve banks for time to permit the withdrawal or other use of credit purposes of exchange or of collection. Such nonmemgiven for any item for which the Federal reserve bank ber State banks and trust companies will hereinafter has not yet received payment in actually and finally be referred to as nonmember clearing banks. collected funds. Each Federal reserve bank shall exercise the func- (3) For all such checks as are received for deferred tions of a clearing house and collect checks under the credit in accordance with such time schedule, deferred general terms and conditions hereinafter set forth, and credit, subject to final payment, will be entered upon each member bank and nonmember clearing bank the books of the Federal reserve bank at full face shall cooperate fully in the system of check clearance value, but the proceeds will not be counted as reserve and collection for which provision is herein made. nor become available for withdrawal or other use by SECTION III.—Checks received for collection the sending bank until such time as may be specified in such time schedule,2 at which time credit will be (1) Each Federal reserve bank will receive at par transferred from the deferred account to the reserve from its member banks and from nonmember clearing account or clearing account subject to final payment banks in its district, checks l drawn on all member and and will then be counted as reserve and become availnonmember clearing banks, and checks drawn on all able for withdrawal or other use by the sending bank, other nonmember banks which are collectible at par Provided, however, That the Federal reserve bank may in funds acceptable to the collecting Federal reserve in its discretion refuse at any time to permit the withbank. drawal or other use of credit given for any item for (2) Each Federal reserve bank will receive at par which the Federal reserve bank has not yet received from other Federal reserve banks, and from all member payment in actually and finally collected funds. and nonmember clearing banks in other Federal reserve districts which are authorized to route direct for SECTION V.—Terms of collection the credit of their respective Federal reserve banks, The Federal Reserve Board hereby authorizes the checks drawn on all member and nonmember clearing Federal reserve banks to handle such checks subject to banks of its district, and checks drawn on all other nonthe following terms and conditions; and each member member banks of its district which are collectible at and nonmember clearing bank which sends checks to par in funds acceptable to the collecting Federal reserve any Federal reserve bank for deposit or collection shall bank. by such action be deemed (a) to authorize the Federal (3) No Federal reserve bank shall receive on deposit reserve banks to handle such checks subject to the or for collection any check drawn on any nonmember following terms and conditions, (6) to warrant its own bank which can not be collected at par in funds acceptauthority to give the Federal reserve banks such able to the collecting Federal reserve bank. authority, and (c) to agree to indemnify any Federal reserve bank for any loss resulting from the failure of i A check is generally defined as a draft or order upon a bank or banking house, purporting to be drawn upon a deposit of funds, for the pay- such sending bank to have such authority. ment at all events of a certain sum of money to the order of a certain person therein named, or to him or his order, or to bearer, and payable on 2 For rules for computation of reserves and penalties for deficiencies demand. in reserves, see Regulation D, Sees. Ill and IV. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

AUGUST, 1930 FEDERAL RESERVE BULLETIN 525 (1) A Federal reserve bank will act only as agent of whether or not the check itself can be returned. In the bank from which it received such checks and will such event, neither the owner or holder or any such assume no liability except for its own negligence and check, nor the bank which sent such check to the Fedits guaranty of prior indorsements. eral reserve bank for collection shall have any right of (2) A Federal reserve bank may present such checks recourse upon, interest in, or right of payment from, for payment or send such checks for collection direct any reserve balance, clearing account, deposit account, to the bank on which they are drawn or at which they or other such fund of the drawee bank or of any bank are payable, or in its discretion may forward them to to which such checks have been sent for collection, in another agent with authority to present them for the possession of the Federal reserve bank. No draft, payment or send them for collection direct to the bank authorization to charge, or other order, upon any reon which they are drawn or at which they are payable. serve balance, clearing account, deposit account, or (3) A Federal reserve bank may, in its discretion other such funds of a paying, remitting, or collecting and at its option, either directly or through or from an bank in the possession of a Federal reserve bank, issued agent, accept in payment of or in remittance for such for the purpose of settling items handled under the checks, cash, bank drafts, transfers of funds or bank terms of this regulation will be paid, acted upon, or credits, or other forms of payment or remittance, ac- honored after receipt by such Federal reserve bank of ceptable to the collecting Federal reserve bank. The notice of suspension or closing of such paying, remitting, Federal reserve bank shall not be liable for the failure or collecting bank. of the drawee bank or any agent to pay or remit for SECTION VI.—Other rules and regulations such checks, nor for any loss resulting from the acceptance from the drawee bank or any collecting agent, in Each Federal reserve bank shall also promulgate lieu of cash, of any other form of payment or remittance rules and regulations not inconsistent with the terms authorized herein, nor for the nonpayment of, or of the law or of this regulation, governing the details failure to realize upon, any bank draft or other medium of its check clearing and collection operations. Such of payment or remittance which may be accepted rules and regulations shall be set forth by the Federal from the drawee bank or any collecting agent. reserve banks in their letters of instruction to their (4) Checks received by a Federal reserve bank which member and nonmember clearing banks and shall be binding upon any member or nonmember clearing bank are payable in its own district will ordinarily be forwhich sends any check to such Federal reserve bank warded or presented direct to the banks on which they for collection or to any other Federal reserve bank for are drawn, and such banks will be required to remit or the account of such Federal reserve bank for collection. pay therefor at par in such one or more of the forms of payment or remittance authorized under paragraph (3) hereof as may be acceptable to the Federal reserve Effect of consolidation on Clayton Act permits. bank. In a ruling published on page 28 of the (5) Checks received by a Federal reserve bank FEDERAL RESERVE BULLETIN for January, payable in other districts will ordinarily be forwarded 1925, the Federal Reserve Board ruled with for collection to the Federal reserve bank of the district reference to consolidations of banks covered by in which such checks are payable; provided, however, Clayton Act permits as follows: that, where arrangements can be made satisfactory to The board holds that in any case where two or more the collecting bank or agent and to the Federal reserve banks consolidate under a statute, either Federal or bank of the district in which such checks are payable, State, which vests in the consolidated institution all the any such checks may be forwarded for collection direct rights, franchises, or interests of the consolidating banks, the consolidated institution would, as a matter to the bank on which they are drawn or at which they of law, have the right to the service of any director of are payable, or may be forwarded for collection to any of the consolidating banks; in other words, that a another agent with authority to present them for pay- director who is serving a bank by the permission of the ment direct to the bank on which they are drawn or at Federal Reserve Board may, after his bank consolidates with another, continue to serve the consolidated instiwhich they are payable. All such checks shall be tution if the statute under which the merger was handled subject to all the terms and conditions of this effected gives to this institution all the rights, franregulation. chises, and interests of the constituent banks. The (6) Bank drafts received by a Federal reserve bank board rules, therefore, that in such cases it will not require the director affected to make application to the in payment of or in remittance for checks handled board for a new permit, but the director will be perunder the terms of this regulation shall likewise be mitted, without any formality, to continue to serve handled for collection subject to all the terms and the consolidated institution together with the other conditions of this regulation. banks which he was serving before the consolidation took place. (7) The amount of any check for which payment in actually and finally collected funds is not received shall The board's ruling further provided, howbe charged back to the forwarding bank, regardless of ever, that in every such case the Federal reserve Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

526 FEDERAL RESERVE BULLETIN AUGUST, 1930 agent should consider and report to the board in the board's judgment it is not incompatible with recommendation whether or not the situa- with the public interest and may be revoked tion existing as a result of the consolidation of whenever the public interest requires its revocathe banks involved has so affected the question tion. In viewT of this amendment, a Federal of competition between the banks upon which reserve agent when reporting to the board the director was serving as to make advisable whether or not a permit should be revoked on the revocation of the permit formerly issued. account of a consolidation, should consider, in When this ruling was issued the question addition to the question whether competition whether the Federal Reserve Board should issue between the banks involved has been affected a permit covering interlocking bank directo- by the consolidation, whether in view of all the rates under the provisions of the Clayton Act circumstances involved, the public interest depended primarily on the question whether requires the revocation of a permit. In this the banks involved were in substantial compe- connection, particular consideration should be tition. Since this ruling was published, how- given to whether the consolidation wTill result ever, the Clayton Act has been amended so as in any restriction of credit or stifling of comto provide that such a permit may be issued if petition between the banks involved. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

AUGUST, 1930 FEDERAL RESERVE BULLETIN 527 DETAILED FEDERAL RESERVE STATISTICS, ETC. FEDERAL RESERVE BANKS—RESOURCES AND LIABILITIES IN DETAIL AND FEDERAL RESERVE NOTE STATEMENT [In thousands of dollars] 1930 1929 July 31 June 30 July 31 RESOURCES Gold with Federal reserve agents 1, 548, 714 1, 596, 214 1, 479, 499 Gold redemption fund with United States Treasurv.__ 36,814 36,677 73, 580 Gold held exclusively against Federal reserve notes 1, 585, 528 1, 632, 891 1, 553, 079 Gold settlement fund with Federal Reserve Board _ _ 596,215 603,134 666, 970 Gold and gold certificates held by bank 808, 691 776,147 704,014 Total gold reserves 2,990,434 3,012,172 2, 924, 063 Reserves other than gold 169,710 161,998 185, 356 Total reserves 3,160,144 3,174,170 3,109,419 Nonreserve cash _ _ __ 02, 939 57,122 66, 661 Bills discounted 1 199, 537 271, 828 1, 075,714 Bills bought: Outright2 _. ___ 128, 375 103,883 44, 987 Under resale agreement __ 1,735 23,955 29, 580 Total bills bought.. _ 130,110 127,838 74, 567 United States securities: Bought outright 576, 301 581, 404 126, 579 Under resale agreement _ __ 200 9,505 20,704 Total United States securities.. _ 576, 501 590,909 147, 283 Other reserve bank credit: Other securities 7,272 5,301 10,450 Due from foreign banks .. 706 706 726 Reserve bank float3. __ _ 20, 237 20,996 37, 847 Total reserve bank credit outstanding.._ _ _._ _ _ 934, 363 1,017, 578 1, 346, 587 Uncollected items not included in float.. _ _. ._ 504, 367 509, 453 611, 362 Federal reserve notes of other reserve banks _ 19, 471 19, 982 29, 563 Bank premises 59, 584 59, 552 58, 795 All other resources _ _. 13,918 11, 758 10, 285 Total resources ___ 4, 754, 786 4,849, 615 5, 232,672 LIABILITIES Federal reserve notes: Held by other Federal reserve banks _• 19,471 19,982 29, 563 Outside Federal reserve banks __ ._ 1, 322,347 1,403,790 1,749, 825 Total notes in circulation.. _ _ 1,341,818 1,423,772 1, 779,388 Deposits: Member bank—reserve account 2,395, 559 2,389,070 2, 355, 284 Government ._ _ ___ 23,367 26, 523 14,468 Foreign bank 6,956 5,879 5,796 Other deposits _ 21,505 33, 753 22,015 Total deposits _ __ 2,447,387 2,455, 225 2,397,563 Deferred availability items _ 504, 367 509,453 611,362 Capital paid in 169, 638 169, 723 161, 565 Surplus __ __ _ 276,936 276,936 254, 398 All other liabilities . _ .._ 14, 640 14, 506 28,396 Total liabilities.... _ _ 4, 754, 786 4, 849, 615 5, 232, 672 Contingent liability on bills purchased for foreign correspondents ._. 479,154 469,678 458,477 FEDERAL RESERVE NOTE STATEMENT Fe deral reserve notes: Issued to Federal reserve banks by Federal reserve agents 1, 703, 754 1, 746, 500 2,339,911 Held by Federal reserve banks 4 . _ __ __ .. 361, 936 322, 728 560,523 In actual circulation 1, 341,818 1,423, 772 1,779, 388 Collateral held by agents as security for note issued to banks: Gold _ _ 1, 548, 714 1, 596, 214 1,479,499 Eligible paper _ _ 312, 743 373,354 1,102, 295 Total collateral _ _ __ ___ _. 1,861,457 1,969, 568 2, 581,794 1 Includes bills discounted for intermediate credit banks as follows: Latest month, $124,000; month ago, $656,000; year ago, $5,439,000; and notes secured by adjusted service certificates discounted for nonmember banks as follows: Latest month. $31,000; month ago. $51,000; year ago, $122,000. * Includes bills payable in foreign currencies as follows: Latest month, $1,065,000; month ago, $1 064,000; year ago, $2,061,000. ' Uncollected items in excess of deferred availability items. * Excludes "F. R. notes of other F. R. Banks." which are consequently included in "actual circulation". Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

528 FEDERAL RESERVE BULLETIN AUGUST, 1930 RESOURCES AND LIABILITIES OF EACH FEDERAL RESERVE BANK ON JULY 31, 1930 [In thousands of dollars] Total Boston Y N o e r w k d P e h lp il h a i - a C l l a e n v d e- m Ri o c n h d - Atlanta Chicago L S ou t. is n M e l a i i p s n o - - K C an it s y as Dallas F o S r is a a c n n o - RESOURCES Gold with Federal reserve agents 1, 548, 714 164,917 238,594 140,000 195,550 63,000 103,200 199,000 65,045 45,345 75,000 24,300 214,763 Gold redemption fund with U. S. Treasury 36,814 983 14,803 2,448 2,030 1,339 2,269 1,478 1,771 891 1,564 985 6,253 Gold held exclusively against Federal reserve notes 1,585, 528 165,900 273,397 142,448 197, 580 64,339 105, 469 200,478 66,816 46,236 76, 564 25,285 221,016 Gold settlement fund with Federal Reserve Board 596,215 21,386 223,968 44,986 70,822 12,502 7,171 113,998 23,377 13,137 28, 537 8,652 27,679 Gold and gold certificates held by banks 808,691 31,608 486, 566 33,370 57,230 9,946 5,231 120,917 12,048 5,771 9,284 9,739 26,981 Total gold reserves 2, 990,434 218,894 983,931 220, 804 325, 632 86,787 117,871 435,393 102,241 65,144 114,385 43, 676 275,676 Reserves other than gold 169, 710 12,981 47,434 8,910 8,408 8,352 15,693 24,213 13,349 5,111 6,036 7,328 11,895 Total reserves 3,160,144 231,875 1,031,365 229,714 334,040 95,139 133,564 459,606 115, 590 70,255 120,421 51,004 287, 571 Nonreserve cash 62,939 5,822 12,935 3,593 4,081 4,465 4,921 9,769 4,734 1,924 1,755 3,686 5,254 Bills discounted: Secured by U. S. Government obligations 66, 637 4,272 17, 751 11,116 10, 640 2,859 888 7,989 2,986 462 2,117 1,786 3,771 Other bills discounted 132, 900 5,730 16,545 10,129 7,959 16,410 29, 367 8,464 10,257 3,861 7,312 10,962 5,904 Total bills discounted_.. 199, 537 10,002 34,296 21,245 18, 599 19,269 30,255 16,453 13,243 4,323 9,429 12,748 9,675 Bills bought 130,110 16, 932 30,101 697 13,068 6,312 7,696 20,021 5,802 6,161 5,516 4,144 13,660 U. S. Government securities: Bonds 49, 737 1,296 9,798 1,052 765 1,313 163 20,681 654 4,883 357 8,313 462 Treasury notes 277,018 17,246 106,805 21, 731 28,443 6,457 6,769 23, 851 14,614 10,035 12,256 9,584 19,227 Certificates and bills. 249, 746 25, 718 63,873 27,419 26,134 7,824 4,515 33,225 7,375 10,261 16,123 10,273 17,006 Total U. S. Government securities 576, 501 44,260 180,476 50,202 55,342 15,594 11,447 77,757 22,643 25,179 28, 736 28,170 36, 695 Other securities 7,272 1,000 5,250 1,000 22 Total bills and securities. 913,420 72,194 250,123 73,144 87,009 41,175 49, 398 114,231 41,688 35,685 43,681 45,062 60,030 Due from foreign banks _. 706 52 232 69 71 30 25 95 25 16 21 21 49 Uncollected items _ _ 524,604 56,541 144,677 45,876 54, 937 37,097 13,454 65,820 20,396 9,350 33,295 18,220 24,941 Federal reserve notes of other Federal reserve banks 19,471 227 4,535 348 1,205 1,718 1,290 2,261 884 1,316 1,776 466 3,445 Bank premises 59,584 3,580 15,664 2,614 7,059 3,214 2,658 8,295 3,811 2,018 3,972 1,876 4,823 All other resources 13,918 74 6,285 213 1,059 541 3,149 604 468 495 255 445 330 Total resources „ 4, 754, 786 370,365 1,465,816 355, 571 489,461 183,379 208,459 660,681 187, 596 121,059 205,176 120, 780 386,443 LIABILITIES Federal reserve notes in actual circulation 1,341,818 139,360 156,624 128,190 185, 631 62,443 114,965 180,179 69,302 50,623 68, 725 30, 747 155,029 Deposits: Member bank—reserve account 2,395, 559 140,096 1,005,673 139,102 200,601 62, 615 59,448 349,502 76,728 49,044 90,605 58,056 164,089 Government 23,367 948 2,874 2,010 1,750 3,195 1,385 3,811 1,816 767 1,536 788 2,487 Foreign bank 6,956 451 2,864 591 610 256 220 817 220 140 183 183 421 Other deposits 21,505 538 8,932 25 1,921 148 485 524 316 152 99 42 8,323 Total deposits 2,447,387 142,033 1,020,343 141,728 204,882 66,214 61, 538 354, 654 79,080 50,103 92,423 59,069 175,320 Deferred availability items 504,367 55,287 138,372 41, 597 52, 798 35, 620 13, 619 63,600 21,721 9,273 30,373 17,010 25,097 Capital paid in.. 169,638 11,863 65, 577 16,663 15 87fi 5,828 5,365 20,118 5,277 3,064 4,316 4,348 11,343 Surplus ._ 276,936 21,751 80,001 26,965 i 29,141 12,496 10,857 40,094 10,877 7,143 9,162 8,935 19, 514 All other liabilities 14,640 71 4,899 4281 1,133 778 2,115 2,036 1.339 853 177 671 140 1 Total liabilities _. 4, 754,786 370,365 1,465,816 355,571 489,461 183,379 208,459 660,681 187, 596 121,059 205,176 120, 780 386,443 Reserve ratio (per cent) 83.4 •82.4 87.6 85.1 85.5 73.9 75.7 85.9 77.9 69.7 74.7 56.8 87.1 FEDERAL RESERVE NOTE STATEMENT Federal reserve notes: Issued to Federal reserve banks by Federal reserve agents . . 1, 703, 754 172,969 245, 556 147,466 218,890 82,460 141,013 208,867 81,298 55, 263 79,251 38,922 231, 799 Held by Federal reserve banks *__ 361,936 33,609 88,932 19,276 33,259 20,017 26,048 28,688 11, 996 4,640 10, 526 8,175 76, 770 In actual circulation 1,341,818 139,360 156,624 128,190 185,631 62,443 114,965 180,179 69,302 50,623 68, 725 30, 747 155,029 Collateral held by agents as security for notes issued to banks: Gold 1,548, 714 164,917 258, 594 140,000 195,550 63,000 103,200 199,000 65,045 45 345 75 000 24,300 214,763 Eligible paper 312, 743 26,855 50,329 20,167 31, 550 25,345 37,873 36,304 18,967 io', 446 14,882 16,839 23,186 1 Excludes "Federal reserve notes of other reserve banks," which are consequently included in "actual circulation." Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

529 AUGUST, 1930 FEDERAL RESERVE BULLETIN BANK DEBITS KINDS OF MONEY IN CIRCULATION [Debits to individual accounts. In millions of dollars] ' [End of month figures. In thousands of dollars] Apr. 30 May 31 June 30 July 31 p Number June, May, June, of centers 1930 1930 1929 Gold coin. _ 360,016 358,575 357,236 356,138 Gold certificates 885,820 954,465 994,841 1,001,949 New York City__ _ 1 37,690 37,423 43,263 Standard silver dollars 38,798 38, 610 38,629 38,108 Silver certificates 382,423 391, 773 386,915 381, 285 Outside New York City 140 24,647 24,416 26,428 Treasury notes of 1890 1,263 1,261 1,260 1,259 Subsidiary silver 281,181 281,167 281,231 279,781 Federal reserve district: Minor coin 117,108 117,193 117,436 117, 237 Boston 11 2,683 2,602 2,875 United States notes 277, 111 290,260 288,389 287,857 New York _ 7 38,706 38, 539 44,327 Federal reserve notes 1,483, 711 1,466, 561 1,402,066 1, 320, 250 Philadelphia 10 2,386 2,272 2,878 Federal reserve bank notes. 3,248 3,221 3,206 3,155 R C i l c e h v m ela o n n d d _ 1 7 3 2,8 7 7 4 2 2 2,7 7 3 7 9 1 2,9 7 0 5 7 4 National-bank notes 645,389 648, 382 650,779 639, 593 Atlanta 15 935 1,026 1,118 Total . 4,476,068 4,551,468 4,521, 988 4,426, 612 Chicago. _ 21 6,707 6,513 6,946 St. Louis 5 1,225 1,231 1,363 Minneapolis. _ 9 723 716 791 v Preliminary. Kansas City 15 1,326 1,320 1,425 Dallas 10 618 643 674 San Francisco— __ 18 3,415 3,468 3,634 FEDERAL RESERVE BANKS—MATURITY DIS- TRIBUTION OF BILLS AND SHORT-TERM Total . 141 62,338 61,839 69, 691 SECURITIES [In thousands of dollars] MEMBERSHI [ P N um IN be r P of A b R an - k C s O at L e L nd E o C f T Ju I n O e N ] SYSTEM1 Total W i d n a i t y 1 h s 5 - d 16 a 3 0 y to s 3 d 1 a 6 y 0 to s d 61 a 9 y 0 to s m 91 t o o d n a t 6 h ys s m O o v n er th 6 s Member banks Nonmember banks Bills discounted: July 2 260,413159,844191,,839 32,429 24,102 24,119 80 July 9 236,315137,809 201,,196 32,150 26,328 19,725 107 Federal t r re ic s t erve dis- On par list Not on par list J J u u l l y y 2 1 3 6 2 1 0 9 7 0 , , 0 57 3 0 01 9 1 9 1 ', , 9 6 9 4 6 8 2 1 0 7 1, , , 9 54 4 2 7 2 2 9 9 , ,0 5 3 2 3 1 2 2 8 6 , , 7 3 3 4 9 3 1 15 8 , , 0 5 6 1 7 0 1 13 1 6 8 1930 1929 July 30 197,101105,806 18,141 28, 11130,414 14, 558 71 Bills bought in 1930 1929 1930 1929 open market: July 2 157,485 92,947 31.,, 189 28, 692 3,912 745 July 9.. 148,945 90,897 31.,, 137 21,029 3,715 2,167 UnitedlStates. 8,315 8,707 11, 559 12, 318 3,629 3,812 July 16 168,667 861909 40,109 23,831 15,590 2,228 July23._ 150,523 73,456 30,306 28,720 15, 592 2,449 Boston 401 408 270 268 July 30 130,762 60,828 19,938 32,488 16,368 1,140 New York 923 939 400 401 Certificates and Philadelphia 756 776 467 483 bills: Cleveland 781 807 963 1,002 9 10 July2.__ 311,903 31,188 43,145 119,692] 64,1301 53,748 Richmond 486 537 561 601 502 552 July 9 310,338 29,757 43,080119,657! 74,070! 43,774 Atlanta _. 409 436 218 285 891 947 July 16 290,522 48,027 117,402| 76,265 48,828 Chicago 1,135 1,229 3,331 3,524 236 225 July 23 272,554 48,027 94, 576 72,114 57,837 St. Louis . _ 552 580 1,571 1,698 480 487 July 30 249,757 31,527 82, 265 71,083 64,882 Minneapolis 664 700 542 611 1,053 1,115 Municipal war- Kansas City 890 912 2,021 2,172 183 200 rants: Dallas .. 719 766 590 613 215 215 July 2... San Francisco 599 617 625 660 60 61 July 9 July 16 July 23 Incorporated banks other than mutual savings banks. July 30 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

530 FEDERAL RESERVE BULLETIN AUGUST, 1930 CHANGES IN MEMBERSHIP STATE BANK MEMBERSHIP NATIONAL BANK MEMBERSHIP—Continued The following list shows the changes affecting State bank membership- during the month ended July 21, 1930, on which date 1,146 State institutions were members of the system: No. 3—PHILADELPHIA 1930 June 30 National Bank of Kennett Square, Pa_ $125,000> Kennett Trust Co., nonmember 125, 000 Date Federal reserve district Consolidated under charter of National Bank of Kennett Square and title of National Bank & Trust Co 250,000* No. 2.—NEW YOKE: 30 National Security Bank & Trust Co., Philadel- 1930 phia, Pa 400,000 July 1 Fidelity Trust Co., New York, N. Y., title Absorbed by Kensington Trust Co., nonchanged to Marine Midland Trust Co. of New member. June 30 { I P Y ow or e k r . City Trust Co., Niagara Falls, N. Y., July 1 Fi t r o s t F N ir a s t t i o N n a a t l i o B n a a n l k B , a B n e k d f & or d T , ru P s a t . , C ti o t . le changed j absorbed the Niagara Falls Trust Co., Niagara 12 Central National Bank, Philadelphia, Pa 2,040, 00O j Falls, N. Y., nonmember „ r. $2, 000, 000 Penn National Bank 1,000, 000 28 | Pacific Trust Co., New York, N. Y., member.... 8, 000, 000 Consolidated under charter of Central Na- Merged with and under title of Manufac- tional Bank and title of Central-Penn Naturers Trust Co., member. _.. 27, 500, 000 tional Bank 3, 040,000' July 16 Hudson Trust Co., Union City, N. J 1, 000, 000 Voluntary withdrawal. No. 4—CLEVELAND No. 4—CLEVELAND May 5 First National Bank, Somerton, Ohio 25,000 Absorbed by Citizens Trust Co., Barnesville, July 2 Central Trust Co., Cincinnati, Ohio, member, Ohio, nonmember. absorbed the Brotherhood of Railway Clerks June 30 First National Bank, Centerburg, Ohio 25,000 National Bank, Cincinnati, Ohio 400,000 Absorbed by Centerburg Savings Bank, nonmember. No. 6—ATLANTA July 1 Merchants' National Banks, Meadville, Pa., title changed to Merchants National Bank & June 30 I Bank of Winter Park, Winter Park, Fla_ 60, 000 Trust Co. Closed. 1 Pennsylvania National Bank, Pittsburgh, Pa—. 200, 00O No. 7.—CHICAGO Absorbed by Pennsylvania Savings Bank, which was succeeded by the Pennsylvania July 5 Royal Oak State Trust & Savings Bank, Royal Bank & Trust Co., nonmember. Oak, Mich ., 250, 000 16 First National Bank, Wilkinsburg, Pa 250, 0(K> Voluntary withdrawal. Central National Bank 100,000s 16 Rochester Savings Bank, Rochester, Mich 50,000 Consolidated under charter and title of First Voluntary withdrawal. National Bank. May 1 Bank of Michigan, Detroit, Mich., member 5, 000, 000 Peninsular State Bank, Detroit, Mich., member.. 2, 500,000 No. 5—RICHMOND Consolidated with and under the charter and June 26 National Bank of Elkton, Md 100,000 title of Peoples Wayne County Bank, Absorbed by Elkton Banking & Trust Co. Detroit, Mich., member 11, 000, 000 nonmember. June 30 Bank of Detroit, Detroit, Mich., member 4, 000,000 28 First National Bank, Batesburg, S. C 125,000' Consolidated with and under charter and title Absorbed by Peoples State Bank of South of Guardian Detroit Bank, Detroit, Mich., Carolina, Charleston, S. C, nonmember. member 5, 000, 000 July 1 Columbia National Bank, Columbia, S. C 500,000 Succeeded by Central Union Bank of South No. 8.—ST. LOUIS Carolina, nonmember. July 15 Natural Bridge Trust Co., St. Louis, Mo 200,000 15 Hom A e b N so a r t b io ed n al b y B a P n e k o , p L le e s x i S n t g a t t o e n, B S a . n k C of South 50,000 Succession to Natural Bridge Bank & Trust Carolina, Charleston, S. C, nonmember. Co., St. Louis, Mo., member 200,000 No. 6—ATLANTA No. 9.—MINNEAPOLIS June 21 First National Bank, Clermont, Fla 25,000 June 30 Montana Trust & Savings Bank, Helena, Mont... 150, 000 Succeeded by Citizens Bank, nonmember. Voluntary withdrawal. 28 Calcasieu National Bank of Southwest Louisiana, Lake Charles, La., title changed to Calcasieu No. 12.—SAN FRANCISCO National Bank. 30 First National Bank, Birmingham, Ala 1, 500,000 July 14 Commercial Bank, Spanish Fork, Utah, member, American-Traders National Bank _ 2, 750,000 absorbed the First National Bank, Spanish Consolidated under charter and title of First Fork, Utah 25,000 National Bank _.. ..- 500,000 No. 7—CHICAGO NATIONAL BANK MEMBERSHIP Apr. 19 Chariton and Lucas County National Bank, Chariton, Iowa 100,000 The following list shows reported changes (except Succeeded by National Bank & Trust Co. of suspensions and insolvencies) affecting national bank Chariton. membership, concerning which information became June 10 Firs A t N bs a o t r i b o e n d a l B by a nk U , n S io ig n o u S rn a e v y in , g I s o w B a ank, non- 75,000 available between June 24 and July 21: member. 21 First National Bank, Hamtramck, Mich 100,000 Absorbed by Hamtramck State Bank, which changed its title to Peoples Wayne County Date Federal reserve district Capital Bank, nonmember. 26 First National Bank, Pana, I1L. 75,000 Primary organization. No. 2—NEW YORK July 1 First National Bank, Westport, Ind 30,000 1930 Succeeded by Westport Union Trust Co., July 2 American National Bank & Trust Co., Mount nonmember. Vernon, N. Y $500,000 First National Bank, Elmhurst, 111 100,000 Succeeded by American Bank & Trust Co., Peoples Trust & Savings Bank, nonmember 100, 000 which is to merge with Mount Vernon Consolidated under charter and title of First Trust Co.. nonmember. National Bank 150,000 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

AUGUST, 1930 FEDERAL RESERVE BULLETIN 531 CHANGES IN MEMBERSHIP—Continued NATIONAL BANK MEMBERSHIP—Continued Date Federal reserve district Capital New charters issued $555, 000 Restored to solvency ^. 400, 000 Increase of capital approved l. 3, 502, 500 No. 8—ST. LOUIS 1930 Aggregate of new charters, banks restored to June 14 First National Bank, Itta Bena, Miss $200,000 solvency, and banks increasing capital 32 4, 457, 500 Absorbed by First Savings Bank & Trust Co., nonmember. Liquidations _ 5, 940,000 30 First National Bank, Hopkinsville, Ky 100,000 Reducing capital 800,000 Absorbed by City Bank & Trust Co., nonmember. Total liquidations and reductions of capital.. 43 6, 740, 000 30 Lincoln National Bank, Hodgenville, Ky 55,000 Succession to Farmers National Bank 110,000 Consolidation of national banks under act of Nov. July 1 Cairo National Bank, Cairo, 111 100,000 7, 1918 8, 440,000 Absorbed by Alexander County Bank, non- Consolidation of national banks and State banks member. under act of Feb. 25, 1927 850,000 15 National Bank of Commerce, St. Louis, Mo., title changed to Mercantile-Commerce Na- Total consolidations.. 9, 290, 000 tional Bank. 17 Clayton National Bank, Clayton, Mo 100,000 Aggregate increased capital for period j 4,457, 500 Succession to Clayton National Bank.. 60,000 Reduction of capital owing to liquidations, etc I 6,740,000 No. 9—MINNEAPOLIS Net decrease. | 2,282,500 June 18 First National Bank, Hatton, N. Dak 25,000 Absorbed by Farmers & Merchants National i Includes 2 increases in capital aggregating $800,000 incident to "xR>camnKlr. consolidations under act of Nov. 7, 1918; also 4 increases aggregating 26 First National Bank, Max, N. Dak... 25,000 $375,000 under act of Feb. 25, 1927. Absorbed by First State Bank, nonmember. July 9 Security National Bank & Trust Co., Red Wing, Fiduciary Powers Granted to National Banks Minn., title changed to Red Wing National Bank & Trust Co. During the month ended July 21, 1930, the Federal No. 10—KANSAS CITY Reserve Board approved applications of the national June 25 Oklahoma First National Bank, Skiatook, Okla. 25,000 banks listed below for permission to exercise one or Succeeded by Exchange Bank, nonmember. more of the fiduciary powers named in section 11 (k) 30 First National Bank, Columbus, Nebr 100,000 of the Federal reserve act as amended, as follows: (1) Absorbed by Central National Bank. Trustee; (2) executor; (3) administrator; (4) registrar July 1 National Bank of Ness City, Kans., title changed to First National Bank. of stocks and bonds; (5) guardian of estates; (6) assign- 9 Farmers National Bank, Oklahoma City, Okla., ee; (7) receiver; (8) committee of estates of lunatics; title changed to City National Bank & Trust (9) in any other fiduciary capacity in which State Co. 10 Liberty National Bank, Kansas City, Mo 750,000 banks, trust companies, or other corporations which Absorbed by Fidelity National Bank & come into competition with national banks are per- 15 Fou S r u t c h l c e r N s u s a s i t t o i \ n o y n O to a . l P B ro a d n u k c , e T rs u N lsa a , t i O on k a la l Bank 2 2 5 5 0 0 , , 0 0 0 0 0 0 m na i t t i t o e n d a t l o b a a n c k t u is n d lo e c r a t t h ed e . laws of the State in which the No. 11—DALLAS June 28 Hom A e b N so a r t b io ed n a b l y B F a i n rs k t , N S a ta ti n o t n o a n l , T B e a x n k. _ 25,000 Location t D N ri i o c s . - t Name of bank g P r o a w nt e e r d s No. 12—SAN FRANCISCO Apr. 21 First National Bank, Emmett, Idaho 30, 000 Prospect Park, N. J_. 2 Prospect Park National 1 to 9 Absorbed by First Security Bank, nonmem- Bank. June 30 Whitti D er e r N . ational Bank, Whittier, Calif 150,000 R Be o d c f k o a r w d, a y P , a N. J 2 3 F F i i r r s s t t N N a a t t i i o o n n a a l l B B a a n n k k 1 It t o o 9 9 Home Savings Bank, nonmember 150,000 Lynchburg, Va 5 First National Bank 1 to 9 Consolidated under charter of Whittier Na- Morris, 111 7 Grundy County National 1 to 9 tional Bank and title of Whittier National Bank. Trust & Savings Bank 300,000 Chicago, 111 7 Terminal National Bank I[to9 July 1 American National Bank, Glendale, Calif 200,000 Greenwood, Ind _ 7 First National Bank I.to9 Absorbed by First National Bank. Beloit, Wis 7 Second National Bank lfco9 5 First National Bank, Huntington Beach, Calif... 50,000 Succeeded by First State Bank, nonmember. Authorized to Accept Drafts and Bills of Exchange up to 100 Per Cent of Capital and Surplus The Comptroller of the Currency presents the following summary of increases and reductions in the number The following member institutions have been and capital of national banks during the period from authorized by the Federal Reserve Board to accept June 21, to July 25, 1930, inclusive: drafts and bills of exchange up to 100 per cent of their capital and surplus: First National Bank, Laurel, Miss.; Mercantile-Commerce Bank & Trust Co., St. Louis, Mo.; Union Planters National Bank & Trust Co., Memphis, Tenn. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

EARNINGS AND EXPENSES OF FEDERAL RESERVE BANKS DURING SIX MONTHS ENDING JUNE 30, 1930 CO to Total Boston New York Ph p il h a i d a el- Cleveland m R o ic n h d - Atlanta Chicago St. Louis ne M ap in ol - is K C an it s y as Dallas Fra S n a c n isco Earnings: Discounted bills $6, 729,131 $401,301 ;i, 292,634 $837,843 $866,664 $465,378 $563,907 $891,677 $356,769 $91,775 $230,885 $321,400 Purchased bills 4,241,488 257,084 1,376,557 139;727 361,436 189,276 305,570 422,734 206,679 162,786 119,353 163,660 536,626 United States securities 8,913,204 583,552 3,457,837 790,471 689,263 193,005 153,288 1,280,986 381,956 348,670 142,166 435,327 456,683 Deficient reserve penalties 126,840 5,825 16,401 7,195 18,528 13,401 11,033 20,217 10,351 3,367 7,398 9,324 3,800 Miscellaneous 1,133,206 65,409 363,061 51,027 112,053 22,150 54,586 232,855 12,032 26,054 146,365 14,367 33,247 Total earnings 21,143,869 1,313,171 6,506,490 1,826,263 2,047, 944 883,210 1,088,384 2,848,469 967,787 632,652 824,180 853,563 I 1,351,756 Current expenses: Salaries- Bank officers _- 1, 335,924 56,875 269,117 68,833 111,150 93,672 120,325 161,477 82,737 59,999 96, 500 87,406 127,833 . Clerical staff 5,922,458 462,716 1,612,582 452,059 509,431 303,796 211,303 831,452 272,392 171,291 323,675 264,036 507,725 Special officers and watchmen 457, 582 18,089 84,916 25,433 57,900 32,034 22,688 24,377 17,114 36, 670 23, 581 48,072 Allother 944, 595 47,004 244,128 43,059 134,463 50,355 18,508 136, 613 41,344 29,771 87,132 40,591 71,627 Governors' conferences 396 396 Federal reserve agents' conferences 763 136 543 Federal Advisory Council 7,750 300 480 530 563 453 536 740 800 797 800 701 1,050 Directors' meetings 77,919 4,197 7,215 3,647 3,584 4,009 11,629 6,095 7,054 3,163 13,459 5,337 8,530 Traveling expenses * 99,194 3,369 14,639 7,432 9,589 7,282 9,905 9,445 8,313 4,938 4,966 10,137 9,179 Assessments for Federal Eeserve Board expenses 29,676 131,099 38, 655 39,848 16, 526 14,476 53,495 14,369 11,969 11,915 27,526 Legal fees 45,754 1,867 2,526 2,069 2,768 593 2,052 6,901 847 9,144 5,225 5,631 6,131 Insurance (other than on currency and security shipments) _ 223,397 14,842 40,837 17,419 16,768 13,264 13,390 23,935 14,205 14,323 19,653 13,302 21,459 Insurance on currency and security shipments 298,060 37,916 61,424 41,283 31, 747 16,331 17,232 35,622 6,587 7,222 9,602 13,692 19,402 Taxes on banking house 746,292 60,900 204,037 20,059 69,497 32.697 32,708 147,154 33,660 38,520 47,122 19,416 40,522 Light, heat, and power 177,672 11,596 37,955 10,927 17,902 7,686 7,457 18,562 9,978 9,005 24,658 9,284 12,662 Repairs and alterations, banking house 82,200 2,415 12,979 4,027 6,792 906 1,714 9,395 2,960 3,138 19,370 5,195 13,309 Rent 155,153 207 604 49,020 6,845 2,641 \ 535 750 86,551 Office and other supplies 206,377 7,981 57,382 20,051 17,132 8,344 10,986 25,487 8,641 11,787 7,950 21,708 Printing and stationery 211,300 18,014 40,600 14,407 18,648 12,128 14,832 33,179 9,832 9,500 10,844 9,874 19,442 Telephone 105,173 9,910 30,677 13,889 7,167 3,895 3,826 10,318 6,350 2,582 4,355 4,606 7,598 Telegraph 244,475 2,923 27,343 6,455 16,678 16,325 35,361 20,401 20,580 8,772 28,939 25,915 34,783 Postage 865,867 95,270 148,951 84,642 77,309 55,927 45,602 119,013 38,335 30,878 65,623 43,295 61,022 Expressage 239,323 22,311 52,012 31,625 18,667 18.698 18,217 30,338 8,233 5,533 9,626 12,716 11,347 Miscellaneous expenses 368,837 21,764 98,558 30,453 22,565 16,934 18,833 44,305 18,195 18,367 23,186 22,459 38,218 Total, exlusive of cost of currency 13,215,123 930,142 3,179,457 937,558 1,239,188 718,700 634,221 1,790,635 638,408 457,625 855,161 637,789 1,196,239 Federal reserve currency: Original cost, including shipping charges— 1,291,115 138,242 217,154 91,274 84,234 31,655 400,624 46,681 50,806 39,257 90,243 Cost of redemption, including shipping charges - 9,611 6,934 6,643 6,262 3,600 4,552 11,214 3,242 3,121 2,300 8,994 Total, current expenses 14, 574,936 1,077,995 3,403,545 1,035,475 1,329, 684 791, 696 670,428 2,202,473 688,331 909,088 679,346 1,295,476 Current net earnings 6,568,933 235,176 3,102,945 790,788 718, 260 91,514 417,956 645,996 279,456 141,253 -84,908 174,217 56,280 Dividends paid 5,164,977 350,399 2,036,373 499,318 475,716 179,197 162,537 606,806 158,845 92,623 129, 708 131,903 341,552 Reimbursable expenditures of fiscal agency department: Salaries, employees _ 61,942 3,441 7,120 4,878 7,927 2,557 2,640 3,363 5,153 »7,292 8,842 4,360 4,369 Allother 17,748 806 2,799 1,010 690 1,195 4,140 1,012 1,694 1,120 635 1,717 Total — 79, 690 4,247 9,919 8,617 3,752 3,570 7,503 6,165 9,962 4,995 1 Other than those connected with governors' and agents' conferences and meetings of directors and of advisory council. 2 Includes $2,500 officers' salaries. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

FEDERAL RESERVE DISTRICTS OKLA. (piahomaCity i..., DALLAS® KBiH J11 TEXAS — BOUNDARIES OF FEDERAL RESERVE DISTRICTS — BOUNDARIES OF FEDERAL RESERVE BRANCH.TERRITORIES FEDERAL RESERVE BANK CITIES • FEDERAL RESERVE BRANCH CITIES O FEDERAL RESERVE BANK AGENCY Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis