Federal Reserve Bulletin, 1932-01

FEDERAL RESERVE BULLETIN JANUARY, 1932 ISSUED BY THE FEDERAL RESERVE BOARD AT WASHINGTON Recent Banking Developments Report of Young Plan Advisory Committee Conference of South American Central Banks UNITED STATES GOVERNMENT PRINTING OFFICE WASHINGTON : 1932 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

FEDERAL RESERVE BOARD Ex officio members: EUGENE MEYER, Governor. A. W. MELLON, . Vice Governor. Secretary of the Treasury, Chairman. CHARLES S. HAMLIN. J. W. POLE, ADOLPH C. MILLER. Comptroller of the Currency. GEORGE R. JAMES. WAYLAND W. MAGEE. FLOYD R. HARRISON, Assistant to the Governor. WALTER WYATT, General Counsel. CHESTER MORRILL, Secretary. E. A. GOLDENWEISER, Director, Division of Research E. M. MCCLELLAND, Assistant Secretary. and Statistics. J. C. NOELL, Assistant Secretary. CARL E. PARRY, Assistant Director, Division of Research W. M. IMLAY, Fiscal Agent. and Statistics. LEO H. PATJLGER, Chief, Division of Examinations. E. L. SMEAD, Chief, Division of Bank Operations. FEDERAL ADVISORY COUNCIL District No. 1 (BOSTON) HERBERT K. HALLETT. District No. 2 (NEW YORK) R. H. TREMAN. District No. 3 (PHILADELPHIA) HOWARD A. LOEB. District No. 4 (CLEVELAND) J, A. HOUSE. District No. 5 (RICHMOND) HOWARD BRUCE. District No. 6 (ATLANTA) JOHN K. OTTLEY. District No. 7 (CHICAGO) MELVIN A. TRAYLOR, Vice President. District No. 8 (ST. LOUIS) W. W. SMITH, President. District No. 9 (MINNEAPOLIS) THEODORE WOLD. District No. 10 (KANSAS CITY) W. S. MCLUCAS. District No. 11 (DALLAS) J. H. FROST. District No. 12 (SAN FRANCISCO) HENRY M. ROBINSON. WALTER LICHTENSTEIN, Secretary. n Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

OFFICERS OF FEDERAL RESERVE BANKS Federal R of e — serve Bank Chairman Governor Deputy governor Cashier Boston Frederic H. Curtiss Roy A. Young W. W. Paddock _. W. Willett. New York J. H. Case. . Geo. L. Harrison W. R. Burgess... C. H. Coe.i J. E. Crane Ray M. Gidney.i A. W. Gilbart J. W. Jones.i E. R. Kenzel W. B. Matteson.i Walters. Logan J. M. Rice.i L. R. Rounds Allan SprouD L. F. Sailer Philadelphia _ R. L. Austin Geo. W. Norris Wm. H. Hutt C. A. Mcllhenny. W. G. McCreedy.2 Cleveland _ George DeCamp E. R. Fancher M. J. Fleming H. F. Strater. Frank J Ziirlind.6n 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 W. S. Johns M. W. Bell. H. F. Conniff W. S. McLarin, jr.* Chicago Eugene M. Stevens... J. B. McDougal C. R. McKay W. C. Bachman.i John H. Blair D. A. Jones.i J. H. Dillard.... 0. J. Netterstrom.i E. A. Delaney.i St. Louis _. John S. Wood Wm. McC. Martin... 0. M. Attebery S. F. Gilmore.2 FA. NTT. HTTaolli.ll2 2 G. 0. Hollocher.2 Minneapolis John R. Mitchell W. B. Geery Harry Yaeger... H. I. Ziemer. Kansas City M. L. McClure Geo. H. Hamilton C. A. Worthington-— J. W. Helm. J. W. Helm Dallas... __. C. C.Walsh B. A. McKinney R. R. Gilbert Fred Harris. R. B. Coleman W. 0. Ford.i San Francisco Isaac B. Newton Jno. U. Calkins _. Wm. A. Day,. Wm. M. Hale. Ira Clerk 1 Assistant deputy governor. 2 Controller. MANAGING DIRECTORS OF BRANCHES OF FEDERAL RESERVE BANKS Federal Reserve Bank of— Managing director Federal Reserve Bank of— Managing director New York: Minneapolis: Buffalo branch... _ R. M. O'Hara. Helena branch... _ R. E. Towle. Cleveland: Kansas City: Cincinnati branch C. F. McCombs. Omaha branch L. H. Earhart. Pittsburgh branch J. C. Nevin. Denver branch J. E. Olson. Richmond: Oklahoma City branch. C. E. Daniel. Baltimore branch Hugh Leach. Dallas: Charlotte branch W. T. Clements. El Paso branch J. L. Hermann. Atlanta: Houston branch W. D. Gentry. New Orleans branch Marcus Walker. San Antonio branch M. Crump. Jacksonville branch Hugh Foster. 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 John T. Moore. 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 onlyofficial 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—Recent banking developments 1 Changes in foreign central bank discount rates 5 Shipments of American currency to and from Europe 7 Report of the Special Advisory Committee appointed by the Bank for International Settlements 21 Conference of South American central banks 43 Annual report of the Bank of Java 49 Earnings and expenses of member banks 76, 77 National summary of business conditions 10 Financial, industrial, and commercial statistics: Reserve bank credit, gold stock, money in circulation, etc 11-13 Member and nonmember bank credit— All banks in the United States 14,72,78-81 All member banks 14 Weekly reporting member banks in leading cities 15, 71 Discount rates and money rates 17, 70 Bankers' acceptances, commercial paper, brokers' loans 15 Security prices, security issues, and security loans 18 Production, employment, car loadings, and commodity prices 19, 82-84 Merchandise exports and imports 20 Department stores—Indexes of sales and stocks 20 Freight-car loadings, by classes 20 Financial statistics for foreign countries: Gold reserves of central banks and governments 52 Gold movements 53 Foreign exchange rates 1923-1931 54-57 Bank for International Settlements 57 Central banks 58-60 Government note issues and reserves 1 61 Commercial banks 61 Discount rates of central banks 62 Money rates 62 Price movements— Security prices 63 Wholesale prices 64 Retail food prices and cost of living 64 Law department: Deposits of public moneys by the United States which are exempt from reserve requirements 65 Detailed Federal reserve statistics, etc 67-75 Index .._ 87 IV Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

FEDERAL RESERVE BULLETIN VOL. 18 JANUARY, 1932 No. 1 REVIEW OF THE MONTH balances, in fact, declined by a larger proportionate amount than did deposits of member Changes in the volume of reserve bank credit banks, both because excess reserves of more in recent weeks have been influenced to a large than $100,000,000 held throughout the autumn extent by unseasonal factors, Kecen^changes j i i volume of this an( tie tota RESERVE BANK CREDIT banks credit outstanding has followed Mima* OF DOUAM AND PRINCIPAL FACTORS IN CHANGES a course different from that in other recent years. From the third week of 5500 October, when the outflow of gold following England's suspension of the gold standard came to an end, to the second week in December, there was a continuous decrease in reserve bank credit reflecting chiefly a reduction in member bank reserve balances and an inflow of gold, mostly from Japan. Between December 9 and December 23 reserve bank credit increased again, but by a considerably smaller amount than is usual at that season, the increase in money in circulation, which was larger than seasonal, being offset in considerable part by a continued decline in member bank reserve 1000 balances and by some further imports of gold. Finally, during the last week of the year, when there is usually some decline in reserve bank credit, there was this year an increase of $200,000,000 reflecting the net effect of a less 1927 1928 1929 1930 1931 1932 Weekly averages of daily figures than seasonal decrease of $100,000,000 in currency and an increase of $300,000,000 in mem- were subsequently reduced, and because the ber bank reserve balances due to anticipation decrease in deposits was larger in demand of year-end statements. deposits, against which a higher reserve is The course of reserve bank credit and of the required, than in time deposits, against which principal factors in changes in its volume is the required reserve is only 3 per cent. shown on a weekly average basis for the period Decreases in so-called net demand deposits 1927-1931 on the chart. are influenced to a considerable extent by the Disregarding the last week, which was not volume of deposits of country representative, member bank reserve balances Decrease in banks that are redeposited with on December 23 were at bankers . i , n i i Members' re- balances city correspondents, bucn de- $2,000,000,000, the lowest level serve balances posits represent in part a duplisince 1924. The decrease in cation of deposits, and since they are held in these balances began after July and for the financial centers, where reserve requirements following five months amounted to about are relatively high, they exert a considerable $400,000,000, reflecting chiefly a large decline influence on the member banks' requirements in member bank deposit liabilities. Reserve for reserves. A chart is introduced at this Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

FEDERAL RESEKVE BULLETIN JANUARY, 1932 point showing the volume of bankers' balances 15. At the end of the year total loans and held by reporting member banks in New York investments of these banks were about $2,400,- City and in other leading cities. During a 000,000 lower than a year earlier. This decrease period of relative inactivity and slack demand reflected a reduction of $2,000,000,000 in secufor credit, these bankers7 deposits usually rity loans, and of about $1,100,000,000 in "all accumulate in the financial centers, where they other" loans, largely commercial, while the earn interest and at the same time are available banks' investments were $700,000,000 larger to the depositing banks at any time. In than a year ago. The banks' holdings of inaccordance with the usual experience, these vestment securities increased rapidly during balances showed an increase in 1930 and the1930 and the first four months of 1931, offsetfirst part of 1931. Beginning with April of ting during that period the effect of the liquidation of bank loans on the total volume of BANKERS' BALANCES outstanding member bank credit. From May MILLIONS OF DOLLARS MILLIONS OF DOLLARS 4000 Monthly Averages of Weekly Figures )- 4000 to September of 1931 the banks' investments remained fairly constant, but during the last 3500 X 3500 three months of the year the banks sold a Total considerable amount of their investments; this 3000 3000 MEMBER BANKS IN LEADING CITIES 2500 2500 BILLIONS OF DOLLARS BILLIONS OF DOLLARS s*\ Other Leading Cities / 25 25 2000 2000 V*' 1500 1500 New York City 1000 1000 500 500 1927 1928 1929 1930 1931 this year, however, as the banks in the interior required their resources to meet the withdrawal of deposits, bankers' balances turned down sharply, particularly at banks in centers other than New York, and toward the end of 1931 they were at the lowest level in several years. As already stated, this decline in bankers' balances was an important factor in reducing the reserve requirements of member banks. Total loans and investments of reporting 1927 1928 1929 1930 1931 member banks, which had begun to decline in the latter part of 1930 and then decrease added to the decline in loans resulting credit in 1931 h&d increase(l somewhat in the in a more rapid decline of the total volume of first quarter of 1931, declined member bank credit. The chart shows the steadily thereafter until the middle of December, course of total loans and investments, security when they increased temporarily as the result Loans, all other loans, and investments of of subscriptions to issues of United States reporting member banks in leading cities for Government obligations offered on December the past five years. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

JANUARY, ] FEDERAL RESERVE BULLETIN The decrease of member bank credit during of $290,000,000 by Germany and $130,000,000 the past year was not accompanied by a by England, and gains of $600,000,000 by decline of reserve bank credit, France, $310,000,000 by Switzerland, $190,- Reserve bank which, on the contrary, in- 000,000 by Netherlands, and $170,000,000 by credit in 1931 creased and at the end of Belgium. The Italian gold reserves changed 1931 was close to the highest level in the past GOLD RESERVES OF SELECTED CENTRAL BANKS 10 years. The increase of $830,000,000 in [In millions of dollars] reserve bank credit over the year reflected Change from— chiefly a growth of $740,000,000 of money in circulation and a decrease of $135,000,000 in Country- Date (1931) reserves Month Year before before the stock of monetary gold, together with an increase in foreign bank deposits, offset to the England Dec. 30 588 —131 extent of about $150,000,000 by a net reduction France Dec 31 2,699 +40 +590 Germany _ Dec. 31 234 -293 over the year in member bank reserve balances. Italy Nov. 30. 296 +3 +17 Belgium _ Dec. 22 355 -1 +169 Of the increase in reserve bank credit over Netherlands Dec. 21 361 +9 +190 Switzerland __ Dec. 23 444 +19 +310 the year the larger part was in the form of discounts for member banks, which showed an little during the year. The table gives in increase in every Federal reserve district. A millions of dollars the gold reserves of selected chart showing discounts by Federal reserve dis- central banks in Europe on the latest date for tricts is shown at the end of this review. Bills which figures are available, with changes for bought in the open market were at nearly the latest month and for the year. the same level at the end of 1931 as a year At the Bank of England an increase of earlier, while the reserve banks' holdings of 67,000,000 pounds in bankers' balances for United States securities showed an increase of Foreign central ^e mon^ °f December reflects $75,000,000 for the year. banks—Bank of the building up of reserves by In January the demand for reserve bank England joint-stock banks in anticipacredit usually declines as currency withdrawn tion of year-end statements. Last year, when for the holiday trade flows back to the reserve the Bank of England statement was as of banks. This return flow, which begins after the December 31, bankers' balances were even Christmas holiday, amounted to $100,000,000 higher. during the last week of the year, but its ef- Notes in circulation also increased during fect on the volume of reserve bank credit was December in connection with Christmas trade, more than offset by a temporary increase in although the increase this year has been less member bank balances. After the turn of the than usual. The funds required during the year the reduction of these balances to their month for this increase in note circulation previous level and a further return of currency and in bankers' balances were in part transfrom circulation were reflected in a decline of ferred from Government deposits at the bank. member bank indebtedness to the reserve These were heavily drawn upon in connection banks and of the reserve banks7 holdings of with the service of the national debt. The acceptances. bulk of the funds, however, was supplied by Changes during recent weeks in the gold the bank's open-market purchases of securities, reserves of the principal European countries although at the year-end the market also in- Gold reserves have been relatively small. creased its borrowings by a substantial amount. in Europe There was a further small loss During the year as a whole the Bank of England of gold by Germany and moderate additions increased its holdings of securities by 44,000,000 were made to the gold reserves of France, Swit- pounds, an amount large enough to offset -the zerland, and Netherlands. Changes during the loss of gold during 1931, and in addition to year, however, have been large, including losses enable the market to retire a substantial part Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

4 FEDERAL RESERVE BULLETIN JANUARY, 1932 of its indebtness at the bank. The reduction teristic of previous years. Substantial use has also been made, however, of the deposits of the over the year in indebtedness at the bank, Caisse. however, reflects the repayment of the excep- The outstanding development of the year tional borrowings of December 31, 1930. Since have been the growth of gold reserves and England's suspension of the gold standard in "other deposits" at the Bank of France. Pre- September, discounts and advances have been sumably the growth during the year in these deposits has been largely in the balances of the more than double the volume of a year ago. commercial banks. The leading commercial The following table shows the principal items banks have built up their cash ratio—i. e., cash in the Bank of England statement for Decem- in vault and at Bank of France to deposits— ber 30, with changes for the month and for the from less than 10 per cent to about 25 per cent. year: The movement became pronounced early last summer in connection with the international BANK OF ENGLAND crisis and was sharply accentuated following [In thousands of pounds sterling; figures preliminary] England's departure from the gold standard Change from— and the difficulties experienced by an important : Dec. 30, financial institution in Paris. For the most ' 1931 Nov. 25, Dec. 31, part it appears to have represented drafts by 1931 1930 the French banks upon their foreign assets Gold : 120,700 ! -26, 900 Discounts and advances • 27,300 j +14,600 -21, 700 BANK OF FRANCE B Se a c n u k r e it r i s e ' s d eposits i ; 1 4 2 0 6 3 , , 4 9 0 0 0 0 ! j + +6 4 6 5 , , 1 6 0 0 0 0 +4 - 3 6 , , 1 6 0 0 0 0 [In millions of francs; figures preliminary] Other deposits.— j 48,100 | -17,100 +5,300 Notes in circulation j 364,200 I +9, 700 -4,700 Change from— Dec. 31, During December the Bank of France re- 1931 Nov. 27, Dec. 26, valued its sterling holdings. These had previ- I 1931 1930 Bank of France °™&.been Can4ed a* the lower Gold 68,900 +1,000 +15,300 gold import point—1. e., prac- D Fo o r m ei e g s n t ic e x d c i h s a c n o g u e nts and advances. 2 1 1 0 , , 5 1 0 0 0 0 -2 - , 4 8 0 0 0 0 - -4 1 , ,2 7 0 0 0 0 tically at par. It it estimated that in writing Government deposits 5,900 -1,300 -6,800 Other deposits 23,600 -500 +11, 900 them down to current exchange rates the bank Notes in circulation .__ 83,500 +1, 000 +7,100 showed a loss of about 2,350,000,000 francs; and this is reflected in the decline reported for for the purpose of showing an impregnable the month in the bank's foreign assets. To the cash position at home. It was accompanied extent of 250,000,000 francs the loss was by a heavy flow1- of gold to France. absorbed immediately by the bank. The re- Gold and foreign exchange reserves of the mainder, amounting to 2,100,000,000 francs, Reichsbank showed little change during Decemwas covered by bills of the independent amorti- ber. The funds necessary to zation office (Caisse d'amortissement) turned ReiSank provide for the year-end inover to the bank by the Government. The crease m note circulation and bills are noninterest bearing, and the bank will in deposits were obtained by borrowing at the contribute out of its profits to their amortization. The Government, however, will also REICHSBANK contribute from its budget an annual sum [In millions of reichsmarks;f iguresp reliminary] equivalent to 1 per cent of the amount of the biJls still outstanding. Change from— Government deposits continued to decline, Dec 31, and the transfers from this source—together 1931 Nov. 30, ! Dec. 31, 1931 i 1930 with some reduction of other deposits—were sufficient not only to meet the 3^ear-end demand Gold 980 -20 i -1,230 Foreign exchange reserve- 170 —300 for currency but also to pay off a moderate Discounts and advances.. 490 +280 +1,660 Deposits 750 + 250 +100 amount of discounts and advances as well. Notes in circulation 4,780 +140 During the year as a whole the reduction in Governemnt deposits has nearly offset the Reichsbank. The growth of circulation in the growth of notes in circulation. The major second half of December was distinctly less than part of the reduction has been in Treasury de- usual this year—a fact which may be associated posits proper and has accompanied the disap- with the salary and wage reductions ordered in pearance of the surplus tax revenues charac- the decree of December 8. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

JANUARY, 1932 FEDERAL RESERVE BULLETIN During the year as a whole the most notable Appointment of Class C Directors development has been the heavy borrowing of The Federal Reserve Board has appointed the market at the Reichsbank for the purpose the following as Class C directors of Federal of making payments abroad. The market has reserve banks for the 3-year term beginning borrowed 1,660,000,000 reichsmarks, and the January 1, 1932: Reichsbank has lost 1,530,000,000 reichsmarks of reserves, from a volume of reserves already Boston—Charles H. Merriman (reappointed). seriously diminished as a result of the transfer New York—J. H. Case (reappointed). of funds abroad following the September, 1930, Philadelphia—Harry L. Cannon (reappointed). Cleveland—L. B. Williams (reappointed). election. It is this development which has Richmond—Robert Lassiter (reappointed). necessitated the present measures of exchange Atlanta—W. H. Kettig (reappointed). and credit control in Germany. Chicago—F. C. Ball (reappointed). St. Louis—Paul Dillard (reappointed). Minneapolis—George W. McCormick (reappointed). Kansas City—H. M. Lang worthy. Appointment of Chief of Examinations Division Dallas—C. C. Walsh (reappointed). Effective January 16, 1932, Mr. Leo H. San Francisco—William Sproule (reappointed). Paulger was appointed chief of the division of examinations of the Federal Reserve Board. Appointment of Chairmen and Deputy Chairmen The Federal Reserve Board has designated Changes in Foreign Central Bank Discount Rates the following as Federal reserve agents and chairmen of the boards of directors of Federal The following changes in discount rates durreserve banks for terms of one year, beginning ing the month ended January 1, 1932, have January 1, 1932: been reported by central banks in foreign countries: Boston—Frederic H. Curtiss. New York—J. H. Case. National Bank of Czechoslovakia—December 22, Philadelphia—Richard L. Austin. 1931, from Q}4 to 6 per cent. Cleveland—George DeCamp. German Reichsbank—December 10, 1931, from 8 to Richmond—William W. Hoxton. 7 per cent. Atlanta—Oscar Newton. Chicago—Eugene M. Stevens. Election of Class A and Class B Directors St. Louis—John S. Wood. Minneapolis—John R. Mitchell. The member banks have elected the follow- Kansas City—M. L. McClure. ing as Class A and Class B directors of Federal Dallas—C. C. Walsh. reserve banks for the 3-year term beginning San Francisco—Isaac B. Newton. January 1, 1932: The Federal Reserve Board has appointed CLASS A the following as deputy chairmen of Federal Boston—Frederick S. Chamberlain (reelected). reserve banks for terms of one year, beginning New York—A. H. Wiggin. January 1, 1932: Philadelphia—John C. Cosgrove (reelected). Cleveland—Chess Lamberton (reelected). Boston—Allen Hollis. Richmond—James C. Braswell (reelected). New York—Owen D. Young. Atlanta—E. C. Melvin (reelected). Philadelphia—Alba B. Johnson. Chicago—Edward R. Estberg (reelected). Cleveland—L. B. Williams. St. Louis—John C. Martin (reelected). Richmond—Frederic A. Delano. Minneapolis—-Paul J. Leeman (reelected). Atlanta—W. H. Kettig. Kansas City—Frank W. Sponable (reelected). Chicago—James Simpson. Dallas—W." H. Patrick (reelected). St. Louis—John W. Boehne. San Francisco—C. K. Mclntosh (reelected). Minneapolis—Homer P. Clark. CLASS B Kansas City—H. M. Langworthy. Dallas—S. B. Perkins. Boston—Edward S. French. San Francisco—Walton N. Moore. New York—William H. Woodin (reelected). Philadelphia—C. F. C. Stout (reelected). Cleveland—R. P. Wright (reelected). Richmond—Edwin C. Graham (reelected). Appointment of Governor at Kansas City Atlanta—J. B. Hill (reelected). The board of directors of the Federal Reserve Chicago—S. T. Crapo (reelected). St. Louis—W. B. Plunkett (reelected). Bank of Kansas City at its meeting on Janu- Minneapolis—W. O. Washburn (reelected). ary 7, 1932, appointed Mr. George H. Hamilton Kansas City—J. M. Bernardin (reelected). governor of the bank to succeed Mr. W. J. Dallas—A. S. Cleveland (reelected). Bailey, retired. San Francisco—E. H. Cox (reelected). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

FEDERAL RESERVE BULLETIN JANUARY, 1932 FEDERAL RESERVE BANK DISCOUNTS - BY DISTRICTS MILLIONS OF DOLLARS Weekly report date figures ) MILLIONS OF DOLLARS 1927 1928 1929 1930 1931 1927 1928 1929 1930 1931 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

JANUARY, 1932 FEDERAL RESERVE BULLETIN SHIPMENTS OF AMERICAN CURRENCY TO AND FROM EUROPE During the postwar reconstruction years, chart shows, largely because of the fact that when American currency w^as in demand as a American money carried out of the country by part of the circulating medium in certain tourists is not a part of the banks7 shipments, European countries whose currencies had but generally returns to this country through depreciated in value, a number of large banks banking channels, after having been exchanged in New York City began reporting to the for foreign currency abroad and assembled by Federal Reserve Bank of New York the foreign banks. The gradual return of Ameriamounts of their foreign shipments and receipts can money from large stocks accumulated in of American paper money. A summary of foreign countries in the early postwar years these movements to and from European has also been a factor in the excess of receipts countries is given in the accompanying table over shipments, especially from the early part for the period May, 1923, when the reports of 1924 to the middle of 1930. were initiated, to the present time. These Notwithstanding the incompleteness of the figures will be published currently in the returns, important movements are promptly FEDERAL RESERVE BULLETIN. reflected in bank transactions. In the past Almost all of the shipments made by Ameri- year there have been two unusual movements can banks are included in these figures. Banks of American currency—first a large export, outside New York City have few transactions, then a sudden return flow of considerable proand those New York City banks which report portions. During the financial crises on the regularly include all those whose shipments Continent in the past summer, first in Austria are substantial. The number reporting has and then in Germany, large shipments of curvaried from 11 to 14; in addition, the foreign rency were sent abroad by American banks. shipments and receipts of currency by the There was another outward movement in Federal Reserve Bank of New York are September, following Great Britain's suspenincluded. sion of gold payments. The chart illustrates Bank shipments do not measure the entire the magnitude of these exports of American movement of our paper currency to and from money in contrast wath the small outflow in Europe, however, because a considerable but preceding years. From May to September indeterminable amount is carried abroad by exports amounted to $33,000,000. This out- American tourists, and some is sent in letters ward movement continued, in fact, until the from immigrants to their relatives in foreign middle of October, when there was a sudden countries. Moreover, there is no adequate reversal at the time when gold w^as being record of shipments of our currency to non- exported in large volume from the United European countries. There is a substantial States. At that time some Europeans who volume in circulation in Cuba, where American held American currency exchanged it for other money forms the circulating medium; and currencies; in Poland, for example, several considerable amounts move back and forth million dollars of American money were puracross the Canadian border. chased in a few days from the Polish public by The entire movement of currency to other the Polish banks. Sales of American paper countries, however, is usually relatively unim- money lasted a brief time, but a considerable portant in comparison with changes in demand volume of American money which had been in the United States. The largest amount accumulated in the meantime was shipped to received from Europe by American banks in the United States in subsequent weeks. After any one year—$59,000,000 in 1924—is not as the middle of November, however, the shiplarge as the increase in demand in this country ments became considerably smaller. The bulk over a national holiday, such as the Fourth of of this recently repatriated currency came from July. In certain months, however, European banks in Germany, France, England, Switzershipments have been important, and the grad- land, and Poland. ual return of American money from abroad in In 1923 American money was in use quite the years prior to 1931 accounts in part for the widely in central Europe because of the rapid gradual decline in the volume of currency out- depreciation of the German and Polish currenside the Federal reserve banks and the cies. At that time, in fact, many European Treasury. currencies were declining to some extent in terms Ordinarily receipts by American banks from of the dollar. In the period from May, 1923, to Europe have exceeded their shipments, as the February, 1924, there was a continuous export Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

8 FEDERAL RESERVE BULLETIN JANUARY, 1932 of American money, amounting to over European countries. As a consequence, during $35,000,000. In the spring of 1924 the outflow the last ten months of 1924 nearly $60,000,000 from this country stopped, and during the re- in American currency was sent to New York mainder of that year large sums were returned banks, and at the same time their shipments to from abroad as a resultof a number of favorable Europe practically ceased. financial developments which gradually re- Late in 1925 and in the early part of 1926 stored confidence in European currencies. In American currency was again in demand abroad November, 1923, German currency was stabil- for a brief period, at the time when Polish SHIPMENTS AND RECEIPTS OF AMERICAN CURRENCY TO AND FROM EUROPE. Millions of Dollars ( Banks in N.Y. City ) Millionso Dollars 10 1923 1924- 1925 1926 1927 1928 1929 1930 1931 ized through the creation of the Rentenbank currency was again declining in value and and the issue of rentenmarks, and in 1924 it was when the French franc showed increasing more firmly established by the adoption of the weakness on the exchanges. In the years 1927 Eeport of the First Committee of Experts to to 1930 receipts at New York were somewhat the Reparations Commission and by the subse- smaller than in 1924, but they continued quent acquisition of gold through the use of the to be considerably larger than shipments to proceeds of the Dawes loan. Improvement foreign countries, which dwindled to small in currency conditions occurred also in other proportions. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

JANUARY, 1932 FEDERAL RESERVE BULLETIN SHIPMENTS AND RECEIPTS OF AMERICAN CURRENCY TO AND FROM EUROPE BY SELECTED BANKS IN NEW YORK CITY [In thousands of dollars] Year and month t m S o r o h e E p i n p e u t - s - R E e f u r c o r e o m i p p e ts c N ( e — m e ip t ) e t s s n o h t r ( i s p + re - ) - Year and month t m S o r o h e E p i n p e u t - s - R E e f u r c o r e o m i p p e ts N c ( e — e m i t p ) e t s s n o h t r ( s i + r p e ) - - Year and month c N ( e — m i e p t ) e t s s n o h t r ( s i + r p e ) - - 1923 1926 1929 j January January 3,567 1,043 -2, 524 January 50 +4,128 February February._ 1,340 824 -516 February ; 20 +2,419 March March 1,429 1,816 +387 March : 6 +2, 687 April April 444 1,822 +1, 378 April 833 —24 May 2,696 481 -2, 215 May. 735 1,009 +274 May __.! 7 +579 June.. 899 1,692 +793 June _. 480 1,427 +947 June... i 470 +3, 026 July 2,966 1,122 -1,844 July 450 5,059 +4,609 July ! 49 +4, 356 August 1,607 1,146 -461 August 140 5,507 +5,367 August 428 +4, 423 September 7,535 535 -7, 000 September. 220 5,987 +5, 767 September : 814 +2, 231 October 2,950 577 -2, 373 October 285 4,064 +3, 779 October. _.! 1,626 +512 November j 3,075 1,462 -1,613 November. 310 2,917 +2,607 November '•• 63 + 1,104 December i 3,570 344 -3,226 December.. 600 2,478 + 1,878 December.. [ 134 + 1,416 Total(8mos.)j 25,298 7,3 -17,939 Total. 10,000 33, 953 +23, 953 Total i 4,500 31,357 i +26,857 1924 I 1927 1930 i January— _ 5,487 317 -5,170 January 250 3,489 ! +3, 239 January.. 5 3,843 ! +3,838 February | 5, "" 621 -5,018 February 4,725 +3, 957 February 251 6,143 1 +5, 892 March. 485 1,506 +1,021 March 1,122 i 4,844 +3, 722 March... 0 4,211 ' +4, 211 April 177 2,161 +1, 984 April... 576 1,911 + 1,335 April 154 3,378 ; +3,224 May 172 4,552 +4, 380 May 406 4,178 +3, 772 May ; 1 4,923 ! +4, 922 June___ 107 6,556 +6,449 June 996 4,134 +3,138 ; June. i 30 3,803 ; +3,773 July 61 8,261 +8, 200 July 730 5,335 +4, 605 ' July ; 30 4,981 j +4, 951 August 67 6,057 +5, 990 August 2,095 5,005 ! +2, 910 ! August ! 90 3,052 +2, 962 September. _ 72 I 6,636 +6, 564 September • 975 3,975 i +3, 000 September 4,245 1,573 -2, 672 October 62 I 7,098 +7, 036 October 310 2,772 I +2, 462 I October 6,112 244 -5, 868 November. _ 6,133 +6, 064 November 50 3,340 i +3, 290 j November 872 556 -316 December 9,155 +9,153 December ! 110 3,292 I +3,182 ! December 275 1,353 +1,078 Total _ 12,400 59,053 +46,653 Total ; 8,2 47,000 ! +38,612 j Total | 12,065 38,060 i +25,995 1925 1928 i ji 1931 j January 500 ! 5,681 +5,181 January 460 4,749 +4,289 i January 470 4,051 +3,581 February.. 514 i 7,573 +7, 059 February. _ 400 4,405 +4,005 ! February 130 960 +830 March 47 5,057 +5, 010 March 1,458 2,930 +1,472 ! March 1,380 863 -517 April 0 ! 3,097 +3,097 April 740 1,691 +951 !i April.-. _. 915 1,469 +554 May 10 3,444 +3,434 May__ 1,075 3,073 +1,998 II May. __ 2,570 2,103 -467 June 37 6,716 +6,679 June 300 4,559 +4,259 i! June.. ._._ 8,811 779 -8,032 July 520 6,390 +5,870 July 210 5,008 +4,798 ; July 10, 256 394 -9,862 August 206 [ 4,260 +4,054 August 415 5,624 +5,209 i August... 3,226 3,723 +497 September I 3,919 i 912 -3,007 September . 185. 2,511 +2,326 ; September 8,433 3,290 -5,143 October... J 902 1,049 +147 October 30 2,964 +2,934 ! October 3,088 11, 588 +8, 500 N De o c v e e m m b b er e r... ! i 2,7 2 7 3 0 5 1,7 9 4 1 4 5 + -1 1 , , 8 5 5 0 5 9 N D o ec v e e m m b b e e r r . . . 1 6 5 0 0 2 1 , , 1 7 0 5 5 8 + + 1 1 , , 9 6 5 9 5 8 ! • N D o ec v e e m m b b e e r r 1,52 C 3 O 7 3 i, , 7 n u 4 ^ o Q 9 y + + 6 2 , , 9 2 8 2 7 6 Total __ 9,660 +37,178 Total 5,483 41,377 +35,894 Total 40,854 40,008 j -846 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

10 FEDERAL RESERVE BULLETIN JANUARY, 1932 NATIONAL SUMMARY OF BUSINESS CONDITIONS [Compiled December 22 and released for publication December 24] Industrial activity and factory employment in October, the volume of freight-car loadings declined further from October to November, showing a seasonal decline, while sales at reflecting in part the usual seasonal tendencies. department stores increased by about the usual Continued gold imports and further reduction amount for that month. in member bank reserve requirements during Wholesale prices.—The general level of November and the first half of December were wholesale prices remained practically unreflected in a considerable decline in the out- changed from October to November, according standing volume of reserve bank credit. to the Bureau of Labor Statistics index; prices Production and employment.—In November of grains, petroleum, and silver advanced, while industrial production showed a somewhat larger those of livestock and dairy products showed decrease than is usual at this season, and the declines, partly of a seasonal character. Beboard's seasonally adjusted index declined from tween the middle of November and the middle 73 to 72 per cent of the 1923-1925 average. of December there were decreases in the prices Activity declined at woolen mills, lumber mills, of many leading commodities, including liveand coal mines, while daily average output at stock, meats, grains, sugar, silk, and silver; steel mills increased and volume of automobile during this period prices of copper and rubber production showed less than the usual seasonal showed a decline, followed by a recovery. decline from the low level of October. The Bank credit.—Volume of reserve bank credit November increase in steel production was fol- outstanding declined during November and the lowed by a considerable decline in the first first half of December and averaged $360,000,three weeks of December. Output of petro- 000 less in the week ending December 12 than leum increased further in November to a level at its October peak seven weeks earlier. The slightly lower than that prevailing last summer decrease was in large part in the banks' portbefore output was sharply curtailed. folio of acceptances, as discounts for member Volume of employment in most manufactur- banks and holdings of United States Governing industries declined by more than the sea- ment securities showed little change for the sonal amount between the middle of October period. The decline in total volume of reserve and the middle of November. Reductions bank credit outstanding during the period were particularly large in the wearing apparel, reflected a growth of $100,000,000 in the stock leather, and building-material industries, while of monetary gold, largely through imports from in the automobile and tire industries declines Japan, and a continued reduction in the reserve were smaller than usual at this season. balances of member banks, reflecting a further The value of building contracts awarded, liquidation of member bank credit. Demand as reported by the F. W. Dodge Corporation, for currency declined during the last three has declined further in recent months, and a weeks of November and showed considerably preliminary estimate of the board's seasonally less than the usual seasonal increase in the first adjusted index for the last quarter of 1931 is 49 half of December. After the middle of Decemper cent of the 1923-1925 average, compared ber, however, bank suspensions in New England with 59 for the third quarter, 65 for the second were followed by some increased withdrawals quarter, and 79 for the first quarter of the year; of currency, part of which has begun to return. part of this decline in dollar volume reflects Loans and investments of member banks in lower building costs. leading cities continued to decline, and on Production of principal crops in 1931 was December 9 were $370,000,000 smaller than about 10 per cent larger than in 1930, accord- four weeks earlier. The decrease was equally ing to the December crop report of the Depart- divided between the banks7 loans and their ment of Agriculture, while acreage harvested investments. Deposits of these banks, both was slightly smaller than a year ago. There demand and time, also showed a decrease, with were large increases in the crops of cotton, a consequent reduction in required reserves. corn, winter wheat, apples, and peaches, while Money rates in the open market showed the harvests of oats, barley, and rye were little change from the middle of November smaller than last year; as in 1930, the hay crop to the middle of December. Rates on prime was unusually small. commercial paper continued at 3% to 4 per cent Distribution.—Commodity distribution con- while rates on 90-day bankers' acceptances tinued at about the same rate in November as advanced from 27/ to 3 per cent on November 25. 8 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

11 JANUARY, 1932 FEDERAL RESERVE BULLETIN FEDERAL RESERVE BANK CREDIT RESERVE BANK CREDIT OUTSTANDING AND FACTORS IN CHANGES [Averages of daily figures. In millions of dollars. For explanation see BULLETIN for July, 1929, pp. 432-438. For back figures see Annual Report for 1930 (Tables 1, 2, and 3).] Reserve bank credit outstanding Factors of decrease Factors of increase Month or week B co il u ls n t d e i d s- bo B u il g l h s t i ! J T ™ u T r £ i i + fL ~A s j ' res O b e a r th n v k e er Total Mo s g t n o o e c ld t k aryT c j r u u e r ( s r a a t e e d s n d u - c ) r y y i M n l a c o ti i n r o c e n u y - M b r a e b e l s a a m e n n r b c k v e e e s r d m e N e p e m o o tc s n b . i - e ts r , p c U f e a u n n p n d e i d t x e a s - d l securities credit i 1930—September 189 197 597 1,016 4,503 1,785 4,492 2,397 26 389 October 196 185 602 1,020 4,520 1,787 4,501 2,407 27 392 November 221 184 599 1,033 4,553 1,793 4,528 2,433 30 388 December 338 257 644 1,273 4,583 1,793 4,823 2,415 27 384 1931—January 253 206 647 1,129 4,622 1,784 4,695 2,433 28 379 February 216 102 603 936 4,656 1,780 4,598 2,370 25 379 March 176 123 604 921 4,682 1,778 4,590 2,386 24 381 April _.. 155 173 600 952 4,711 1,770 4,647 2,376 27 383 May 163 144 599 926 4,767 1,783 4,679 2,387 28 382 June.- 188 121 610 945 4,865 I 1,759 4,750 2,404 35 380 July.__ 169 79 674 954 4,958 1,784 4,836 2,407 83 370 August _.. 222 135 712 1,107 4,975 1,764 4,947 2,345 187 367 September 280 259 736 1,313 4,948 1,768 5,133 2,333 199 364 October 613 692 733 2,088 4,447 1,768 5,478 2,256 208 361 November 695 560 727 2,035 4,363 1,766 5,518 2,118 171 357 December. ._ 774 340 777 1,950 4,450 1,782 5,611 2,069 144 358 Week ending (Saturday) Nov. 28 487 727 1,954 4,402 1,773 5,486 2,114 171 358 Dec. 5 743 , 435 718 1,945 4,423 1,772 5,527 2,091 165 357 Dec. 12 738 ! 385 721 1,897 4,438 1,777 5,529 2, 079 149 355 Dec. 19 718 j 319 853 1,949 4,455 1,804 5,599 2,108 143 358 Dec. 26 842 ' 281 796 1,991 4,467 1,786 5,727 2,013 145 359 End of month series (in millions of Wednesday series (in millions of dollars) dollars) 1930 1931 Nov. i Dec. Dec. Dec. Dec. 25 16 23 30 i Dec. Aug. Sept. Oct. Nov. Dec. ! 31 31 30 31 30 31 Bills discounted i 698! 911 1,024 Bills bought.... i 307i 257 327 Special Treasury certificates |_. 198'. Bills discounted 251 255 328 728 718 638 Other United States securities... 727, "717! 717 708: 758 Bills bought 364 215 469 681 452j 339 Other reserve bank credit ! 47! A"J\ AQ 63; 79 48 United States securities... 729 728 742 727 717! 817 Other reserve bank credit.. 29| 57 39 47 44 59 Total reserve bank credit 3 ; 1,941' 1,905; 1,880 1,974! 2,006 2,202 Monetary gold stock_ ! 4,409; 4,417 4,437 4,458 4,465 4,458 Total reserve bank credit 1,373' 1,255 1,578 2,183 1,9311 1,853 Treasury currency adjusted i 1,774: 1,780, 1,777 1,811; 1,7601,761 M Tr o e n as e u ta ry ry c g u o r l r d e n s c t y o c a k djusted 4 1 , , 5 79 9 8 3| ! 4 1 , , 9 7 9 2 5 9 4 1 , , 7 7 4 7 1 3 4 1 , , 2 7 9 6 2 7 4 1, , 7 4 G 1 9 4 | * » 4 1 , , 4 7 6 5 1 9 M M o em ne b y e r i n b c a i n r k c u r l e a s ti e o r n v e balances..! j i 2 5 , , 1 4 1 7 7 9 ! : j 2 5 , , 0 5 7 0 3 9 ; 2 5 , , 0 5 8 0 6 7 ! 5 2, , 1 5 6 7 8 8 : 2 5 , , 0 7 0 33 1 5 2, , 6 3 3 2 3 3 Money in circulation ... 4,89o! 5,052 5,246 5,540 5,53612 5,648 Unexpended capital funds, non- I I I; I Member bank reserve balances.. 2,471 2,373 2,3G4 2,167 2,051! 1,961 member deposits, etc i 527 520 501 465 Nonmember deposits, etc 28; 189 120 181 1701 110 497 496 Unexpended capital funds 375 365 362 354 357 354 »Includes "Other securities," foreign loans on gold, amounts due from foreign banks, and reserve bank float. 2 Figures preliminary. 3 Averages of daily figures for weeks ending on Wednesday, as follows (in millions of dollars): Nov. 18, 2,036; Nov. 25,1,961; Dec. 2,1,946; Dec. 9, 1,932; Dec. 16, 1,906; Dec. 23, 1,965; Dec. 30, 2,019. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

12 FEDERAL RESERVE BULLETIN JANUARY, 1932 ANALYSIS OF CHANGES IN MONETARY GOLD GOLD MOVEMENTS TO AND FROM UNITED STOCK STATES [In millions of dollars] [In thousands of dollars] Analysis of changes 1931 Gold stock Month at o e f nd I i n n c r s e to a c se k Net gold N le e a t s r e e - D p o ro m d e u s c ti - c From or to— (p D re e l c im em in b a e r r y) November N J o a v n e u m ar b y e - r month during import from-ear- tion, month mark * etc. 2 | Im- Ex- Im- Ex- Im- Exports ports ports ports ports ports 1930—December 4,593 22.1 32.7 -15.2 4.5 Total (12 mos.). 305.4 280.2 -4.4 32.0 Belgium 5,772 1 58 24 9,746 England . 4,588 425 92 2,765 218 1931— M A F J e p a a n b r r i u r c l a u h r a y ry— _ 4 4 4 4 , , , , 7 6 6 6 2 9 6 4 6 7 5 3 4 2 2 3 9 8 2 2 . . . . 4 7 0 0 4 3 2 1 5 9 4 6 . . . . 6 4 5 1 I | | - 1 7 2 3 1 . . . 5 . 0 5 9 ! 3 -13 3 3 3 . . . . 3 1 3 3 I N F G t r a e e a l t r y n h m c e e r a l n a y n . d - s 1 1 5 0 , , 0 8 1 7 6 6 9 7 9 5 8 4 3 1 9 1 1 4 4 5 3 1 7 9 , , 0 3 7 8 3 3 8 3 4 4 5 0 8 , , , 1 4 7 9 2 7 4 8 0 0 7 5 J M un ay e -_ 4 4 , , 9 7 5 9 6 8 1 7 5 2 8 . . 4 0 4 6 9 3 . . 6 8 ! ! 9 4 2 . . 0 3 i 3 1 1 8 .9 .8 P Sw or e t d u e g n al 150 5,463 2,08 3 8 0 July 4,949 -6.6 19.5 | -29.7 1 3.6 Switzerland 904 515 55 18, 553 August 4,995 45.7 57.5 ! -16.0 ! 4.2 Canada 4,087 7,416 8 76, 730 107 September. 4,741 -254. 3 20.6 i -279.1 i 4.2 Central America 90 50 1,000 50 N O o ct v o e b m er ber. 4 4 , , 4 2 1 9 4 2 -4 1 4 2 8 2 . . 4 0 -33 8 7 9 . . 7 4 I | -10 2 7 8 . . 6 3 ! ; -3 4 . . 1 2 M Ar ^ g ex e i n c t o ina 912 2 9 6 9 7 4 c 1 2 4 3 1 , , 2 9 6 7 3 5 3,052 December P 4,461 47.1 54.7 ! -22.9 ! 15.4 Colombia 2,035 13,074 Ecuador 1 911 Total (12 mos.)P. -132.1 143.1 ! -320.8 45.6 Peru 41 683 7,438 1,082 Urusuav 6,080 u c d o n o 2 1 n d m T s e G e u r h s o m i t e l s i d a p c f r t r i m i e p g o l r u a n e o r r a e d k s i , u . e n d d c e t t f i r h r o i o e n v m e a d o r e v t f a s e r . r o r m m n I a n o r p k n r a m e a n c t o e y n d F e i g e n t i d a g v e r e r y c n a o l l c m u r o e m o n se n s n r u t s v h , m e , r p e b h t p a i o r o n e w n k s e e s v o n l e e t f s r s , s g t h o g it l e o d l m — e d x a c c p e h y l s a i e s b c f e o e l d y f V D B C r e h u K i n i t t o n c e is h a n z h u g E e I l a n a a s d n t i d a I nd H ie o s ng 3,0 4 0 9 9 7 4 1 , ,6 8 3 1 4 9 3 5 4 5 0 1 3 4 4 3 , , , 8 8 6 9 4 9 8 3 0 9 1 3 63 predominantly affected by the fact that on the final day of the month Japan 68, 201 75,973 42 131,042 42 (a) gold bullion or foreign gold coin recently imported may not yet have Philippine Islands _ 299 3,290 reached a reserve bank of the Treasury, and (b) gold bulion recently All other countries L_ 4,420 200 1,747 3,018 8,682 3,790 withdrawn from stock for export may not yet have been actually exported. The figures are subject to certain unavoidable inaccuracies in Total 2 87,749 2 33,085 94,430 4,994 522,610 434,143 official reports of gold imports and exports. 3 $15,649,000 of gold bullion imported on Apr. 30 from France was not 1 Includes all movements of unreported origin or destination. purchased by the New York Assay Office until May 1. 2 At New York—imports, $13,414,000; exports, $33,085,000. Elsev Preliminary figures. where—imports, $74,335,000. RESERVE BANK CREDIT OUTSTANDING, IN KINDS OF MONEY IN CIRCULATION DETAIL [In thousands of dollars] [In millions of dollars] De 1 c 9 . 31 31, No 1 v 9 . 3 1 30, De 1 c 9 . 30 31, Kind of money 1 D 9 3 3 e 1 1 c , . P N 1 3 9 o 0 3 v , 1 . D 1 3 9 e 1 3 c , . 0 ! Reserve bank credit— total _ 1, 853,4021,930, 898 1,373,332 Gold coin I 410 383 368 Bills F d o i r s m co e u m nt b e e d r — b t a o n t k a s l _ 6 6 2 3 6 8 , , 7 2 7 9 9 3 7 7 1 0 8 6 , , 2 4 6 5 5 7 2 2 5 5 0 1 , , 5 3 9 9 0 8 G Fe o d ld e r c a e l r r ti e f s ic e a rv te e s notes 2, 8 6 7 03 7 2,4 9 6 2 3 8 1 1 , , 1 6 1 4 8 1 F F o o r r n in o t n e m rm e e m d b ia e t r e b c a r n e k d s it ( b s a ec n u k r s ed by 11,044 11,320 737 Treasury currency:J adjusted-service certificates) 470 488 71 S S t il a v n e d r a c rd e rt s i i f l i v c e a r t e d s ollars 3 3 8 3 7 4 3 0 7 4 Bills P P b a a y y o a a u U B b b g o n l l h e e u d t g e i i - r n h n t o t r d f e t o o o a s r u l a l e l t l i a r e g r i n s g a — h g c t r u t e o rr e t e a m l nc e i n e t s . . _ . 3 3 2 8 0 3 2 3 1 5 8 4 3 , , , , , 2 0 6 2 4 5 3 8 2 2 8 8 7 9 0 4 4 4 1 5 1 3 1 8 2 3 6 , , , , , 1 3 3 2 7 2 2 8 0 1 1 6 6 5 2 3 3 28 6 3 2 3 8 3 9 7 5 , , , , , 0 8 9 8 7 9 6 4 8 6 8 1 4 3 3 T S M N U F u e r a n i e d b n t i a i e t s o o e s i r r d d u n a i l r a c a y S l o r r e t i y b n n a s a o t e s e n r t i s e v l k v s e n e n o o b r o t f a e t 1 e n s 8 s k 9 0 notes 2 2 6 1 9 7 1 5 3 4 1 2 7 5 2 2 6 1 8 9 2 1 3 1 1 6 3 9 Unit B ed o u S g t h a t t e o s u s t e ri c g u h r t i ties—total . 8 7 1 7 6 1 , , 9 9 3 6 1 0 7 7 1 1 7 7 , , 0 0 3 3 1 1 7 68 2 6 9 , , 0 4 6 6 4 7 Total Treasury currency 1,758 1,762 Under resale agreement | 45,029 43,403 Total money in circulation.. 5, 618 5,536 Other reserve bank credit—total 59,462 43,890 28,623 I M F n e t t u d u e n e r r i e r m c a s i l e p d l a a i l a n w t d e a b r c a r r a n e n k d t s i b t on b d a s nk deben- 2 4 6 , , 5 4 1 6 0 8 0 5 3 2 4 5 , , 5 3 3 0 3 9 0 0 7 6,3 8 0 4 0 3 for i v J F F u o i l g r y u , e r 1 e x 9 s p 2 l p 9 a r , n e p a l t . i i m o 4 n 3 in 2 . a o r f y . the term "Treasury currency" see BULLETIN Due from foreign banks 8,662 8,724 704 Reserve bank float * 19,652 4,939 20, 776 1 Uncollected items in excess of deferred availability items. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

JANUARY, 1932 FEDERAL RESERVE BULLETIN 13 MEMBER BANK RESERVE BALANCES [Monthly averages of daily figures. In millions of dollars] Reserves held Excess reserves Month T m o b t e a a m l n — k b s e a r ll Ne C w i ty Y o i rk r O e c s i t t e h i r e e v s r e " C b o a u n n k t s ry T m o b t e a a m n l— k b s e a r ll Ne C w i t Y y* ork r O e c s i t t e h i r e e v s r e "C b o a u n n k t s ry' 1930—December. 2,415 956 590 73 1931—January... 2,433 955 587 105 31 February- 2,370 847 945 578 57 27 March 2,386 860 945 580 66 28 April 2,376 829 962 585 56 28 *May 2,387 848 961 578 67 28 June 2,404 882 949 573 129 30 July 2,407 887 950 570 125 31 August 2,345 843 943 559 101 31 September. 2,333 918 551 120 30 October. __ 2,250 872 536 129 37 November. 2,118 774 832 512 57 27 i Central reserve city banks only. MEMBER BANK DEPOSITS RESERVES OF MEMBER BANKS IN NEW YORK CITY AND OTHER BESERVE CITIES, [Deposits subject to reserve. Monthly averages of daily figures. In millions of dollars] BY WEEKS [Averages of daily figures. In millions of dollars] Novem- Octo- November, ber, ber, 1931 1931 1930 New York City i Other reserve cities _L Week ending (Fri- NET DEMAND AND TIME DEPOSITS day)— Held qu R i e r - ed Excess Held Total—all member banks 28, 218 29,138 33,014 New York City i 6,612 6,937 7,787 Other reserve cities 11,350 11,658 13, 218 Sept. 25 871 804 66.7 900 "Country" banks 10, 256 10, 544 12, 009 Oct. 2 892 832 60.3 898 NET DEMAND DEPOSITS Oct. 9 826 810 16.2 904 Oct. 16 833 784 49.3 882 Total—all member banks.. 16,358 16,859 18, 959 Oct. 23 877 785 92.0 8Sfl New York City i _ 5,653 5,872 6,216 Oct. 30 857 789 68.7 Other reserve cities _ 6, 273 6,421 7,370 "Country" banks 4,432 4,567 5,372 Nov. 6 786 778 8.3 Nov. 13 766 760 6.5 TIME DEPOSITS Nov. 20... _. 768 762 5.9 Nov. 27 780 759 20.9 Total—all member banks 11,860 12, 279 14, 056 New York City i... 959 1,065 1,571 Dec. 4 775 761 14.4 Other reserve cities 5,076 5,236 5,847 Dec 11 756 748 8.2 "Country" banks. _ 5,825 5,977 6.637 Dec. 18 . . > 790 759 31.0 1 Central reserve city banks only. 92948—32 3 OCOO 0C0O OCCC qu R i e r - ed Excess 866 33.7 851 46.9 846 58.3 834 48.2 827 29.8 816 20.6 813 17.0 816 18.0 840 816 23.6 828 808 19.9 818 805 12.7 825 802 22.6 818 797 21.4 i Central reserve city banks only Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

14 FEDEBAL RESERVE BULLETIN JANUARY, 1932 ALL MEMBER BANKS—CLASSIFICATION OF LOANS AND INVESTMENTS [Amounts in millions of dollars] Total—all member banks New York City 1 Other reserve cities "Country" banks Sept. June Sept. Sept. June Sept. Sept. June 29, 30, 24, 29, 30, 24, 29, 30, 1931 1931 1930 1931 1931 1930 1931 1931 Loans and investments—total _. 33,073 33,923 35,472 8,253 8, 287 8, 557 13,016 13, 567 Loans to banks 599 457 466 250 150 ! 169 284 247 Loans to other customers—total 18, 713 19,257 21,010 3,850 3,839 ! 4,276 7,845 8,100 Secured by stocks and bonds 6,842 7,117 7,864 1,815 1,897 I 2,031 3,092 3,188 Secured by real estate 3,149 3,218 3,163 152 160 I 157 1,585 1,621 Otherwise secured and unsecured _ 8,722 8,922 9,982 1,881 1,782 ! 2,087 3,168 3,291 Open-market loans—total 1,563 2,103 3,262 1,121 1,497 ! 1,912 326 470 Acceptances of other banks—total. ] 338 502 267 234 | 340 i 176 102 158 Payable in United States 268 389 205 201 ! 296 ! 148 67 91 Payable abroad 70 113 62 33 I 44 ! 28 35 67 Commercial paper purchased ! 296 384 523 48 i 94 j 22 167 189 Loans to brokers in New York 2 I 928 1,217 2,472 839 | 1,063 1,714 56 124 Investments—total j 12,199 12,106 10, 734 3,032 I 2,801 2,198 4,561 4,750 3,947 4,606 4,589 United States Government securities—! 5, 564 5,343 4,095 1,830 ! 1,656 ' 1,091 2,301 2,408 1,785 : 1,433 1,219 Other domestic securities j 5, 973 6,121 5,938 1,018 j 1,006 ! 1,004 2,092 2,177 1,973 I 2,864 2,961 Foreign securities. ! 662 642 701 184 i 139 ! 103 169 188 ! 309 409 164 1 Central reserve city banks only. 2 Loans (secured by stocks and bonds) to brokers and dealers in securities in New York City. ALL BANKS IN THE UNITED STATES—TOTAL LOANS AND INVESTMENTS, DEPOSITS [In millions of dollars. Includes national banks, State commercial banks and trust companies, mutual and stock savings banks, and all private banks under State supervision. For back figures see May BULLETIN (p. 253) and Annual Report for 1930 (Tables 42-43)3 Total loans and investments Deposits (exclusive of All banks Member banks Nonmember banks interbank deposit?) Date Total Loans I m nv e e n s t t s - Total Loans I m nv e e n s t t s - Total Loans I m nv e e n s t t s - ba A n l k l s M ba b e n e m k r s - m b N e a m o n n k b - s er 1928—June 30 57, 265 39,464 17,801 35, 061 24, 303 10, 758 22, 204 15,161 7,043 53,398 32,133 21,265 Oct. 3 57,219 39, 671 17,549 34,929 24, 325 10,604 22, 291 15, 346 6,945 53, 720 32,138 21, 582 Dec. 31 58,266 40, 763 17,504 35, 684 25,155 10, 529 22, 582 15, 607 6, 975 56, 766 34, 826 21,940 1929—Mar. 27 58,019 40, 557 17,462 35, 393 24, 945 10, 448 22, 626 15, 612 7,013 54, 545 33,215 21, 330 June 29 58,474 41,512 I 16, 962 35,711 25, 658 10,052 22, 763 15,853 6,910 53, 852 32, 284 21,567 Oct. 4 58,835 42,201 ! 16, 634 35,914 26,165 9,749 22, 922 16, 036 6,885 55,180 33, 004 22,176 Dec. 31 58,417 41,898 I 16,519 35, 934 26,150 9.784 22, 483 15, 748 6,735 55, 289 33,805 21,424 1930— Mar. 27 57,386 40, 686 16. 700 35, 056 25,119 9,937 j 22, 331 15.568 6,763 53,185 32, 082 21,103 June 30 58,108 40,618 j17,490 35, 656 25,214 10, 442 22, 453 15, 404 7,048 54,954 33, 690 21,264 Sept. 24 57,590 39,715 j17, 875 35, 472 24, 738 10, 734 22,118 14, 977 7,141 52,784 31, 839 20, 945 Dec. 31 56,209 38,135 18, 074 34, 860 23,870 10,989 21, 349 14,264 7,085 53,039 32, 560 20, 479 1931—Mar. 25 55,924 36,813 19. Ill 34, 729 22, 840 11, 889 21,195 13, 974 7.222 51,427 31,153 20, 274 June 30- j 55,021 35,384 19, 637 33, 923 21, 816 12,106 21, 099 13, 568 7, 531 51,782 31, 566 20, 216 Sept. 29 53,361 33, 752 19, 609 33, 073 20, 874 12,199 20, 288 12, 877 7,410 49,152 !•29, 469 19, 682 NUMBER OF BANKS, BANKING OFFICES, BANKS OPERATING BRANCHES, ETC. [For additional detail—and certain statistics of banks in groups or chains—see BULLETIN for December, 1930, pp. 766-768 and 811-817] Single-office banks Banks operating branches Banking offices Member Member Nonraember Date (banks bra p n l c u h s es) Total ! National State m N em on b - er National State Banks Branches Banks Branches Banks Branches 1925—Dec. 31_. 28,257 30,899 27,472 7,916 1, 245 18,311 132 332 196 1,277 457 1,033 1926—Dec. 31 27, 377 30,158 26, 581 7,760 1,160 17,661 146 406 194 1,366 456 1,009 1927—Feb. 25 2 26, 973 29, 873 26,194 7,677 1,133 17,384 145 390 189 1,560 445 950 June 30 26, 781 29, 775 25, 989 7,638 1,123 17, 228 152 722 186 1,301 454 971 1928—June 30 25, 950 29,180 25,115 7,516 1,058 16, 541 169 941 186 1,220 480 1,069 1929—June 30 25,115 28, 555 24,297 7,366 987 15,944 164 993 190 1,298 464 1,149 Dec. 31 24, 630 28,177 23, 808 7,237 939 15, 632 166 1,027 180 1,299 476 1,221 1930—June 30 23,852 27,470 23,035 7,082 899 15,054 165 1,041 169 1,308 483 1,269 Dec. 31 _ 22, 769 26, 308 21, 993 i 6,872 859 14, 262 161 1,106 160 1,286 455 1,147 1931—June 30 21,903 25,480 21,107 6,636 827 13, 644 164 1,110 155 1,287 477 1,180 * All banks in the United States; includes national banks, State commercial banks and trust companies, mutual and stock savings banks and all private banks under State supervision. » Date of the McFadden Act; see BULLETIN for May, 1927. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

JANUARY, 1932 FEDEKAL KESERVE BULLETIN 15 REPORTING MEMBER BANKS BROKER'S LOANS [In millions of dollars. Monthly data are averages of weekly figures] REPORTED BY THE NEW YORK STOCK EXCHANGE Loans and investments [Net borrowings on demand and on time. In millions of dollars] Borrow- From New From private Month or date Lo o a n ns i F ng .R s . at Total an Y d o r t k ru s b t a c n o k m s - b fo a r n e k ig s n , b b r a o n k k e i r n s, g securi- banks End of month panies agencies, etc. ties 1930 1931 1930 1931 1930 1931 BY MONTHS Total: 1931—January. 22,660 7,495 8,399 January 3,985 1,720 3,368 1,557 616 163 February _. 22,659 7,315 8,242 February 4,168 1,840 3, 529 1,646 639 194 March.. 22,839 7,302 8,150 March 4,656 1,909 4,026 1, 692 631 I 217 April. 22,942 7,157 8,040 April 5,063 1,651 4,409 1,466 654 185 May.. 22,713 6,998 7,893 May 4,748 1,435 4,139 1, 293 0€9 ; 141 June- 22,439 6,770 7,853 June 3,728 1,391 3,201 1,221 527 170 July. 22,393 6, 631 7,964 July 3,689 1,344 3,227 1,171 462 ! 173 August . 22, 093 6,480 7,900 i August 3,599 1, 354 3,109 1,160 489 I 194 September.. 22,078 6,413 7,870 September. 3,481 1,044 3, 057 932 425 ! 112 October _ 21,425 5,971 7,679 i October 2, 556 796 2,299 688 257 | 108 November 21,023 5,859 7, 586 November... 2,162 730 1,928 582 234 148 December 20, 749 5,763 7,441 December.. 1,894 587 1,694 455 199 ! 132 New York City: 1931—January 7,906 3,111 , 2,472 2,323 1, 254 February 7,965 3,079 2,410 2,476 1, 353 Back figures—See Annual Report for 1930 (Table 57). March 7,975 3,176 2, 295 2,504 1,391 April 7,889 3,080 2,242 2,567 . 1,414 MADE BY REPORTING MEMBER BANKS IN N. Y. CITY May ._ 7,875 3,039 2,194 2,642 ! 1,460 June 7,694 2,846 2,204 2,644 | 1,523 ' [In millions of dollars. Monthly data are averages of weekly figures] July.._. 7,780 2,764 2,365 2,651 1,608 i August 7,633 2,640 2,370 2, 623 1,600 3 September 7,744 2,657 2,375 2,712 1,652 3 For ac- j October 7, 466 2, 369 2,272 2,825 1,750 i 74 For count of! For ac- November 7,258 2,277 2,243 2,738 1,705 16 Month or date Tot! own ac- out-of- ! count of Other le D ad ec in e g m b ci e t r ies: 7,165 2,237 2,218 2,710 1,732 ; 83 count * b t a o n w k n s 2 i \ others 1931—September.... 14,334 3, 756 5,495 5,083 2,502 ! 124 October 13,959 3, 602 5,407 4,950 2,421 ! 324 D N e o c v e e m m b b e e r r 1 13 3 , , 5 7 8 6 4 5 3 3 , , 5 5 2 8 6 2 5 5 , , 2 3 2 4 3 3 4 4 , , 8 8 3 4 5 0 2 2 , , 3 3 9 6 5 7 i 3 41 8 6 8 1931— F J e a b nu ru ar a yy r y. 1 1 , ,7 7 9 5 8 9 l 1 i , 1 18 3 6 2 2 32 9 9 0 2 3 8 3 3 7 March 1,858 1 1,335 264 259 BY WEEKS April 1,824 ! !»322 271 231 May 1,644 ' 1,279 191 174 Total: June 1,464 1 1,110 181 173 1931—Dec. 2 20,856 5,807 7,543 | 7, 506 4,033 424 July.. 1,434 1,062 204 168 Dec. 9 ! 20,664 5, 760 7,477 i 7,427 3, 997 428 August 1,342 951 226 165 Dec. 16 ! 20,963 5,740 7,472 i 7,751 4,336 392 September.. 1, 268 943 174 151 Dec. 23 '• 20,734 5, 733 7,386 i 7, 615 4,208 567 October 921 674 90 157 Dec. 30 i 20,532 5, 777 7,327 7, 428 4,060 685 November.. 802 588 124 ! 3 90 New York City: i December. . 655 554 88 | 13 1931—Dec. 2 7,181 2, 239 2,249 2,693 1, 676 14 Dec. 9 . 7,004 2,210 2,215 2,639 ; 1, 657 12 Dec. 2.. 720 I! 567 132 i 21 Dec. 16 i 7,258 2,, 2 0-8. . 2,2432 ,:807 ; 1,836 Dec. 9... 690 552 117 21 Dec. 23 ! 7,175 2,231 ! 2,189 2;,755 ! 1,778 98 Dec. 16. 662 ! 555 98 ! 9 Dec. 30 ! 7,147 2,295 I 2,197 2!,655 i 1,712 289 Dec. 23. 611 553 51 j 7 Other leading cities: I Dec. 30. 591 544 41 I 1931—Dec. 2 13,675 3, 568 5,294 4,813 ! 2, 357 410 Dec. 9 13,600 3, 550 5, 262 4,788 i 2, 340 416 Dec. 10 13,705 3, 533 5, 228 4,944 i 2,500 392 1 Weekly reporting member banks in N%w York City. Dec. 23 13,559 3, 502 5,197 4,860 j 2,430 469 2 Member and nonmember banks outside New York City (domestic Dec. 30. ; 13,385 3,482 5, 130 4,773 2,348 396 banks only) includes unknown amount for customers of these banks. I 3 New clearing-house rule relating to "Loans for account of others" became etlective Nov. 16; see p. 657 of BULLETIN for December, 1931. r Revised. Back figures—See Annual Report for 1930 (Table 56). ACCEPTANCES AND COMMERCIAL PAPER [In millions of dollars] Bankers' acceptances outstanding (dollar acceptances) Held by Fedenil reserve banks Held by group of accepting banks Commercial End of month Total F a o cc r o o u w n n t o F f o f r o r a ei c g c n o u c n o t r- Total Own bills Bills bought H o e t l h d e r b s y p s a t p a e n r d o in u g trespondents 1930 1931 ; 1930 1931 1930 1931 1930 1931 1930 1931 1930 1931 1930 1931 1930 1931 January _ 1, 693 1,520 ! 293.3 89 3 525. 9 447.4 220. 5 571.4 63.1 134.0 157.3 437.4 653.2 411.9 404 327 February 1,624 1,520 269. 2 85.0 503. 0 456.0 182.9 549.5 70.7 151.4 112.2 398. 2 668.8 429. 5 457 315 March 1,539 1,467 277.3 123.2 482.5 430.8 166. 7 472.2 71.9 130.9 94.7 341.3 612. 9 440.8 529 311 April. 1,414 1,422 208.5 161. 6 465. 5 408.9 157.5 410.2 54.7 125.0 102.8 285.3 582.2 441.3 553 307 Mav 1,382 1,413 184.0 124.4 462.8 380.2 165.6 464.2 b2.6 171.4 103.0 292.8 569.8 444.2 541 305 June 1, 305 1,368 126. 8 95.0 469. 7 340.8 205.1 553.5 63.7 196.2 141.4 357.4 503. 3 378.7 527 292 July 1, 350 1,228 i 129.0 39.0 479.2 243.0 278.6 668. 0 62.5 231.7 216.1 436.3 462.9 278.0 528 289 August 1,339 1,090 167. 0 70.1 470.7 228. 0 267. 3 606.5 95.1 168.0 172.2 438.5 434.4 185.4 526 271 September 1,367 996 207.7 419.7 431.6 100.1 316.7 409.9 130.9 161.6 185.8 248.3 410.8 66.3 513 248 October . . 1,508 1,040 i 141.3 647.3 433.1 99.3 384.2 230.4 172.4 112.3 211.8 118.1 549.7 63.0 485 210 November 1,571 1,002 143. 0 418.3 428.8 126.4 493.0 296.2 180.2 124.7 312.8 171.4 506. 6 162.0 448 174 December.. 1,556 327.9 439.3 371.5 89.6 281.8 417.4 358 Figures for acceptances outstanding (an(j held by accepting banks) from American Acceptance Council; for commercial paper as reported by about 20 dealers. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

16 FEDERAL RESERVE BULLETIN JANUARY, 1932 INTERBANK LOANS: MEMBER BANK LOANS BANK SUSPENSIONS TO BANKS [Banks closed to public on account of financial difficulties by order of [In millions of dollars] supervisory authorities or directors of the bank. Figures of suspensions include banks subsequently reopened] By reserve city banks * Total, By Number of banks Deposits (in thousands of dollars) by all other Date b m a b e n e m k r s - Total I C n Y i o N ty r e k a w I c n a g C o h 2 i-I r c n e i s t o i e e t r h s v e e 3 r b m a b e n e m k r s - Month 1928 1929 1930 1931 1928 1929 1930 1931 January 10,983 16,413 28, 903 78,130 1929—Mar. 27 548 509 251 62 196 39 February 18, 352 21, 746 32,800 35,123 June 29 _. 670 621 314 67 241 49 March. _ 16, 953 9,002 23, 769 35, 285 Oct. 4 640 595 302 68 225 45 April 64 8,190 7,790 33,388 42,417 Dec. 31 714 669 322 88 258 45 May _ 6,394 24, 090 19, 315 43, 963 1930— J M un a e r. 3 2 0 7 - 5 5 2 3 7 5 4 4 6 7 2 4 1 1 9 9 9 6 5 5 8 0 2 2 0 2 5 8 6 6 5 2 J J u u n ly e 1 5 3 , , 3 49 6 6 8 6 19 6 f , 1 2 6 1 1 9 3 7 2 0 , , 3 5 3 6 3 6 1 4 9 1 5 , , 3 9 3 5 4 1 Sept. 24 466 404 169 41 193 62 August 6,147 8,532 21,951 182, 248 Dec. 31 631 569 283 55 231 62 September 7,888 10, 050 23, 666 236, 511 1931— J M un a e r . 3 2 0 5 . 4 4 4 5 6 7 3 3 8 9 8 7 1 15 5 4 0 4 7 1 0 1 1 9 7 4 7 6 5 0 8 N O o ct v o e b m er ber 24 9 , , 0 7 1 8 1 4 2 1 2 3 , ,1 6 5 4 3 6 1 2 8 4 6 , , 5 3 9 0 9 6 '4 r 7 6 9 9 , , 8 4 3 0 1 2 Sept. 29 599 535 250 65 219 64 December 11, 076 15, 730367,119 319, 289 Year 491 1, 345 2, 290 138, 642234, 532864, 715 1,759,484 1 Member banks in 62 legally designated cities: 2 central reserve cities (New York and Chicago) and 60 other reserve cities; see table on p. 72. 2 Central reserve city banks. r Revised. 3 Other reserve city banks; see table on p. 72. Back figures.—See Annual Report for 1928 (Table 64). MEMBER BANK HOLDINGS OF ELIGIBLE ASSETS (GOVERNMENT SECURITIES AND ELIGIBLE PAPER) COMPARED WITH BORROWINGS AT FEDERAL RESERVE BANKS [In millions of dollars. Back figures not available] Holdings of Government securities * and eligible paper (including paper under rediscount) Member bank By reserve city banks * By other banks By all member banks borrow- Date ings at U.S. U.S. u. s. F re e s d e e rv ra e l m G e o n v t e r s n e - - E p li a g p i e b r le Total m G e o n v t e r s n e - - E p li a g p i e b r le Total m Go en ve t r s n e - - E p li a g p i e b r le Total banks curities 1 curities 1 curities l 1927—June 30.. 2,299 2,775 5,074 847 1,992 2,839 3,146 4,767 7,913 441 1928—June 30.. 2,714 2,680 5,394 862 1,967 2,829 3, 576 4,647 8,223 1,096 Oct. 3... 2,823 2,551 5,374 914 1,817 2,731 3,738 4,368 8,106 1,020 Dec. 31.. 2,730 2,349 5,079 932 1,811 2,744 3,662 4,160 7,822 1,041 1929—Mar. 27.. 2,832 2,582 5,414 974 1,761 2,735 3,807 4,343 8,150 981 June 29-. 2,577 2,688 5,265 929 1,773 2,702 3,506 4, 461 7,968 1,029 Oct. 4... 2,469 2,865 5,334 912 1,733 2,645 3,381 4,598 7,979 899 Dec. 31.. 2,403 2,713 5, 116 814 1,684 2, 498 3,217 4,397 7,614 646 1930— Mar. 27.. 2,619 2,542 5,161 818 1,662 2,480 I 3,438 4,204 7,642 206 June 30-. 2,640 2,285 4,925 772 1,620 2, 392 3,412 3,905 7,317 274 Sept. 24. 2,682 2,271 4,953 764 j 1,541 2,305 3,446 3.812 7,258 173 Dec. 31.. 2, 777 2,100 4, 877 708 ! 1,438 2,146 3,485 3,538 7,023 248 1931—Mar. 25. 3,584 2,045 5,629 776 1,373 2.149 4,360 3,418 7,778 165 June 30-. 3,871 1,870 5,741 836 1,328 2,164 4,707 3,198 7,905 147 Sept. 29. ' 3,942 1,787 r 5, 729 994 r 1, 209 r 2, 203 4,936 * 2,996 ' 7,932 323 1 Exclusive of approximately $650,000,000 of Government securities pledged against national bank note circulation. 2 Member banks in 62 legally designated cities: 2 central reserve cities (New York and Chicago) and 60 other reserve cities; see table on p. 72. r Revised. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

JANUARY, 1932 FEDERAL RESERVE BULLETIN 17 MEMBER BANK BORROWINGS AT FEDERAL OPEN-MARKET RATES RESERVE BANKS RATES IN NEW YORK CITY [Monthly averages of weekly figures. In millions of dollars] Prevailing rate on- Average rate Average yield Reporting member Member on— on— banks in leading cities banks Total 1 outside Call loans t U.S. Month New C it Y y ork O in th g e r c i l t e ie a s d- l c e i a ti d e i s n g i Month or week m P c e r o r i c m m ia - e l P b e r a i r n m s k ' e - l T o i a m ns e , T n u r o e r t y a e s s - Treas- 1930 1931 1930 1931 1930 1931 1930 1931 p 4 a p to e r 6 , a a c n c c e e p s t , - da 9 y 0 s * New ne R w e- al ce a r n ti d fl- bo u n ry ds' months vu cates, days 3 to 6 months January 462 245 39 5 208 77 215 163 February 371 209 21 2 152 55 198 152 1930 March 247 173 1 80 35 166 138 April 225 146 17 54 26 154 120 November, 2^-3 IK 2 -2H 2.00 2.00 1.40 3.32 May 226 149 11 48 28 167 121 December 2^-3 2 -2M 2.27 2.23 * 1.48 3.34 June _ _. 222 185 5 48 56 169 129 July 218 168 53 44 165 124 1931 August 196 214 4 3 39 72 153 139 January 2%-3 1%-2M 1.50 1.57 1.24 3.33 S O N e c o p t v o t e e b m m er b b e e r r _ _ 2 1 1 1 8 9 1 6 3 2 6 6 8 2 8 4 7 4 9 8 6 7 If 4 3 j 3 5 6 5 0 5 3 1 3 2 2 8 4 4 8 1 1 1 4 3 4 2 7 0 2 2 1 2 5 8 9 7 0 F M e a b r r c u h ary 2J4-2 2 H lA 2 1 ^-2 -2H 1 1 . .5 5 6 0 1 L . . 5 0 55 « 1 1 .0 .3 6 8 3 3 . . 4 3 0 9 December 308 815 26 83 115 416 167 316 April _ __ 1H 1.57 L 52 L49 3.38 May. .. 2 -IVA m~2 1.45 L45 .88 3.31 1 Includes (in small amounts) discounts by Federal reserve banks for June ._ 2 7A 1.50 L. 50 4.55 3.30 nonmembers: (1) Bills discounted for intermediate credit banks and July 2 m-m 1.50 L. 50 .41 3.32 (2) notes secured by adjusted-service certificates discounted for nonmember banks. August 2 1H-1H 1.50 L. 50 .42 3.34 September 2 Vs-VA 1M-2 1.50 1.50 4.45 3.42 FEDERAL RESERVE BANK RATES October 2 -4H 1H-3K 2^-4 2.10 2.10 1.70 3.71 DISCOUNT RATES November. 3M-4H 2Ji-3H 3 -4 2.50 2. 50 1.77 3.69 December 3M-4 3 3 -4 2.73 2.70 *2.41 3.92 [Rates on all classes and maturities of eligible paper] Week ending- No v. 28 3U-4 2K-3 3 -3M 2.50 2.50 1.85 3.73 ! Rate in Date estab- Previous Dec. 5 33/4-4 3 3 -3M 2.50 2.50 1.99 3.77 Federal reserve bank j ! elT Ja ec n t . o 1 n lished rate Dec. 12 3M-4 3 3 -3M 2. 50 2. 50 2.06 3.86 Dec. 19 3M-4 3 3 -3H 2.55 2.50 * 2. G7 3.94 Dec. 26 3%-4 3 3 -4 3.00 3.00 2.G8 3.96 Boston Oct. 17,1931 ; New York 3H Oct. 16,1931 I 1 Stock exchange call loans; new and renewal rates. Philadelphia- Oct. 22,1931 • 2 Stock exchange 90-day time loans. Cleveland Oct. 24,1931 j tio 3 n 3 d i a s t s e u s e — s— 19 3 47 ^, , 3 1 ^ 9 4 5 , 6 4 a p n e d r 1 c 9 e 5 n 4 t . ; yields calculated on basis of last redemp- Richmond Oct. 20,1931 | 4 Change of issues on which yield is computed. Atlanta Nov. 14,1931 | Back figures.—See Annual Report for 1930 (Tables 38 and 37). Chicago — Oct. 17,1931 i St. Louis Oct. 22,1931 ' RATES CHARGED CUSTOMERS BY BANKS IN Minneapolis.-_ Sept. 12,1930 | PRINCIPAL CITIES Kansas City..- Oct. 23,1931 | Dallas 4 Oct. 21,1931 i [Weighted averages of prevailing rates] San Francisco . 3H do i 8 other New York City northern and 27 southern and Back figures.—See Annual Report for 1930 (Table 33). Month eastern cities western cities 1929 1930 1931 1929 ! 1930 1931 1929 1930 1931 BUYING RATES ON ACCEPTANCES (Buying rates at the Federal Reserve Bank of New York] January 5.74 5.64 4.24 5.87 5.88 4.61 5.94 6.12 February 5.73 5. 35 4. 31 5.86 5.66 4.63 6.96 6.04 March 5.81 fi. 22 4.20 5.91 5.47 4.62 6.04 5.98 Maturity - R fle a e te t i o n n Da l t i e s h e e s d tab- Pre ra v t i e ous A M p a r y il 5 5 . . 8 8 5 8 4 4 . . 7 9 4 1 4 4. . 1 1 7 1 6 6 . . 0 0 0 9 5 5 . . 1 2 3 2 4 4 . . 5 5 7 5 6 6. . i 0 d 7 5 5. . 8 7 6 5 Jan. 1 June 5.93 4.59 4.13 6. 02 5.06 4.49 6. 16 5.89 July 5.88 4.48 4.05 6.08 4.81 4.48 6. 17 5.62 August 6.05 4.41 3.97 6. 11 4.79 4.47 6.22 5.57 September- 6.06 4.29 3.93 6. 24 4.74 4.48 6.27 5.54 1-15 days j 3 Nov. 20,1931 October 6.08 4.26 4. 27 6.25 4.75 4.62 6.29 5.53 16-30 days 3 i do November- 5.86 4. 17 4.67 6. 12 4.66 4.87 6.29 5.49 31-45 days _ • 3 | do m December... 5.74 4.16 4.64 5.94 4.68 4.91 6.20 5.42 46-60 days j 3Hj Oct. 16, 1931 NOTE.—Figures relate to rates charged by reporting banks to their 61-75 days j SW do 2H own customers as distinguished from open-market rates (which are 76-90 days | BH\ do _. given in preceding table). All averages are based on rates reported for 3 91-120 days ; ZH\ do 2M t o y n p s e e s c o u f r i c ti u e s s t . o m T e h r e l m oa e n t s h — od c o o m f c m o e m rc p ia u l t in lo g a n th s e , a a n v d e r d ag e e m s a t n a d k e a s n i d n t t o i m a e c c l o o u an n s t 121-180 days i 3H do. 2tf (a) the relative importance of each of these 3 types of loans and (6) the relative importance of each reporting bank, as measured by total loans. 3 In the two group averages the average rate for each city included is NOTE.—Rates on prime bankers' acceptances. Higher rates may be weighted according to the importance of that city in the group, as charged for other classes of bills. measured by the loans of all banks in the city. Back figures.—See Annual Report for 1930 (Table 34) Back figures.—See Annual Report for 1930 (Table 39). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

18 FEDERAL RESERVE BULLETIN JANUARY, 1932 SECURITY PRICES, SECURITY ISSUES, AND SECURITY LOANS SECURITY PRICES Mndex numbers of Standard Statistics Co. Monthly data are averages of weekly figures] Common stocks (1926«100) Selected groups of industrial issues Pre- Month or date Bonds1 ferred stocks* 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 Auto- B i u n i g ld- Chain Chem- C p o e p r - t E ri l c e a c l - Ma- Texcoin- Oil mobile equip- store ical and equip- JDteei tile ment brass ment ery Number of issues. 20 404 337 33 34 13 13 17 9 9 4 10 16 10 30 1930—November- 124.7 117 109 102 167 101 77 82 176 91 196 120 97 131 55 December. . 121.7 109 102 94 158 100 71 78 168 80 182 117 88 125 51 1931—January 123.8 112 103 100 163 106 74 78 162 82 176 120 89 124 53 February... 124.8 120 110 105 178 120 78 86 174 91 194 126 91 132 55 March 126.4 122 112 97 189 129 81 90 173 96 201 125 85 133 58 April 125.3 109 100 87 170 117 70 86 148 79 172 109 74 116 52 May 122.6 98 89 77 156 110 59 89 127 67 159 89 63 94 47 June - 119.7 95 87 74 153 101 58 89 128 62 157 83 63 85 45 July 121.1 98 90 75 158 105 60 89 131 86 161 88 67 88 46 August 120.7 96 89 66 154 103 58 92 127 61 155 84 70 81 45 September- 116.1 82 76 56 132 85 47 80 110 50 132 72 60 72 40 October 109.4 70 65 48 112 70 38 70 90 43 113 59 53 59 36 November.. 108.5 72 68 46 115 75 39 69 96 45 114 61 57 59 36 December.. 99.1 58 54 33 96 65 31 57 79 35 94 46 44 41 31 Nov. 25.. 105. 6 66 62 39 107 70 37 64 88 39 101 56 52 53 34 Dec. 2... 104.9 63 60 36 104 68 35 63 87 41 102 52 50 48 33 Dec. 9... 103.1 61 57 34 101 65 32 62 81 37 96 48 48 47 32 Dec. 16.. 96.8 55 51 31 91 63 27 54 74 32 90 43 42 37 31 Dec. 23.. SO. 2 95.7 55 51 32 91 63 29 53 77 35 89 44 40 36 30 Dec. 30.. 78.8 95.1 55 52 32 92 65 30 54 77 32 92 44 40 36 29 i Average price of 60 high-grade bonds adjusted for differences in coupon rate and maturity. 20 high-grade industrials; average price. CAPITAL ISSUES TOTAL REPORTED SECURITY LOANS [Exclusive of refunding issues. In millions of dollars] [In millions of dollars] Domestic issues » i Total, By Year and month i ! i d t f i o o c r m e a i e g n s n d - Total« G er o n v - - I i Bo C nd o s r p j orate F is o s r u e e i s g n J By member banks o l e e t r n h s d e i r ment \ (and j Stocks i notes) ; Call date Total* 1 1 1 1 9 9 9 9 2 2 2 2 4 2 3 5 ..-. j , 4 4 5 6, , , , 5 4 3 2 5 4 9 0 0 7 5 5 4 3 4 5 , , , , 0 1 6 5 1 2 3 8 9 9 1 8 i ' 1 1 1 1 , , , , 3 0 0 3 5 7 8 4 6 2 0 3 • i i : ; 2 2 1 1 , , , ,9 6 4 2 8 4 5 0 9 5 2 0 1,1 8 5 6 5 2 5 7 2 9 9 0 1, 9 7 4 0 6 2 6 7 9 1 4 6 ™ Ak Y N C e b T r o r e i s o o r t w k y - i - n w e k b T h l r e s o o e r e - s r - e' j ' ! « o . t { n T , e " rs k C Y N e b T i r r o e s t o o w y r - k » in 1926... _-J 6,282 5,157 : 1,312 I 2,667 1,087 1,125 1927 7,489 6,152 ! 1,423 I 3,182 1,460 1,337 -I- 1 1 1 9 9 9 2 2 3 9 8 0 ! ; 1 7 6 0 , , , 9 9 0 1 7 0 8 9 5 9 6 6, , , 0 3 7 1 3 2 3 4 3 , | 1 1 1 , , , 3 3 4 8 9 4 7 8 1 | 2 2 2 , , , 0 9 3 6 8 7 8 0 8 5 2 1 , , , 5 9 8 0 0 6 3 0 8 1, 9 6 2 0 7 5 5 1 1 1928— D O e c c t . . 3 31... . _ 1 ; 1 1 2 4 , , 4 O 2 5 9 2 1 8 0 , , 8 1 1 7 9 2 | I 2 26 7 9 4 | 1 2 , , 8 5 9 56 9 8 97 5 5 0 ! ! 5 6 , , 7 3 9 7 6 3 3 3 , , 6 8 1 8 0 0 1930—November... j 249 248 '• 86 117 18 1 1929—Mar. 27... J14, 643 9,693 274 1,8791,014 i 6,526 4,950 December j 384 365 | 186 93 71 19 June 29.... .115,144 10,094 335 2,025 921 ; 6,813 5,050 1931— F J e a b n r u u a a ry ry 4 2 2 1 0 1 3 2 3 0 4 2 ' ! ! 1 4 1 9 9 23 4 5 8 4 2 5 7 D O e ct c . . 4 31.-. . . ! 1 1 1 6 2 , , 9 9 5 5 4 5 , 1 1 1 0 0 , , 3 5 1 0 4 5 3 35 2 7 0 1 1 , , 8 6 8 6 5 0 9 8 3 0 9 3 ! i 7 7 , , 6 1 8 7 5 0 6 2, , 4 6 5 4 0 0 J J M A M u u p a a n ly r y r e i c l h • • * 5 8 9 2 3 7 3 6 2 5 4 7 1 8 2 • • • 7 9 2 3 5 9 5 2 3 3 4 9 6 3 5 ! ! ! | j • • • 5 4 6 1 2 2 9 8 7 6 9 5 6 2 ; 2 1 1 1 1 5 0 6 1 3 0 0 6 3 2 1 2 0 9 6 2 9 2 1930— J S D M u e e n p a c e t . r . . 3 3 2 2 1 0 4 7 . — . . . . . . . . _ . . . ' 1 [ i 1 1 1 1 2 1 2 0 , , 0 , , 7 8 0 3 5 5 6 1 4 4 4 1 i i l 1 O 1 0 9 0 , . . , 3 7 6 5 3 5 5 1 4 4 5 1 2 2 3 1 3 6 1 7 0 0 5 5 2 2 2 1 , , ,4 3 4 3 7 4 9 6 2 4 8 5 8 7 7 6 1 0 7 7 9 6 4 5 ! ; j ' 7 7 7 7 , , , , 0 2 2 0 2 6 4 9 4 6 2 0 2 1 1 , , , 2 6 1 4 1 1 9 3 0 0 0 0 S O A N e c u o p t g v o t u e e b s m m e t r b b e e r r. . . _ _ . * • * 7 * 1 2 2 4 0 0 5 5 1 0 I ! • * 4 1 • 7 2 6 4 0 0 1 5 1 0 ! ' ! I • • • 5 • 1 1 9 M 0 1 5 5 6 • i i ' 9 2 3 1 6 4 4 4 2 1 1 4 4 2 2 1931— J S M u e n p a e t r . . 3 2 2 0 9 5 . . . . . . . . . 9 8 8 , , , 7 9 36 5 4 1 2 3 i ' I 9 8 8 , , , 0 2 5 8 7 6 1 2 3 2 2 3 1 2 1 9 9 1 1 1 9 6 21 2 3 7 8 0 5 5 5 7 1 21 5 5 ! i6 6 6 , , , 6 3 8 2 0 4 1 2 8 4 2 3 8 8 8 0 0 0 1 Source: Commercial and Financial Chronicle. i For lenders other than member banks—i. e , nonmember banks, for- J Issues publicly offered; annual totals are as finally reported by De- eign banks, corporations, etc.—only security loans to brokers in Newpartment of Commerce; monthly figures are as compiled currently and York City are included in available reports. are subject to revision. 1 Includes issues of Federal land banks and Federal intermediate credit banks, not shown separately. • Includes Treasury issues (exclusive of refunding) as follows: March, $408,925,000; April, $425,404,000; June. $310,826,000; August $80,042,000; September, $483,872,000; October, $779,000; November, $52,027,000. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

JANUARY, 1932 FEDERAL RESERVE BULLETIN 19 PRODUCTION, EMPLOYMENT, CAR LOADINGS, AND COMMODITY PRICES [Index numbers; 1923-1925 average -=100. The terms adjusted and unadjusted refer to adjustment for seasonal variation! Industrial production* Building contracts awarded F ac- (value)** Factory em- tor V Freight-car ployment 2 pay loadings * Com- Y m ea o r n a th nd Total i Manufactures1 Minerals * Total Residential All other rolls 2 m i o ty dprices t Unad- Ad- Unad- Ad- Unad- Ad- Unad- Ad- Unad- Ad- Unad- Ad- Unad- Ad- Unad- Unad- Adjusted justed justed justed justed justed justed justed justed justed justed justed justed justed justed justed justed 1919 83 84 ,-, C3 44 79 107 98 84 139 1920 87 87 89 63 30 90 108 118 91 154 1921 67 70 56 44 65 82 79 98 1922 85 86 74 79 68 88 90 81 87 197 1923 . .- 102 101 105 84 81 86 104 103 100 01 1924 95 94 90 94 95 94 96 96 97 198 1925. 104 I! 105 99 122 124 120 100 101 103 104 1926 10S 108 10S 129 121 135 101 104 106 00 1927 "0G 106 107 120 117 139 99 102 103 95 1928-. _ 111 112 ior> 135 126 142 97 102 103 98 1929 119 ! 119 115 117 87 142 101 108 106 97 1930 90 96 09 92 50 125 88 87 99 86 1927 August 105 106 104 106 111 106 131 126 108 113 149 136 99 99 102 109 104 95 September 106 105 106 105 111 104 133 128 119 118 145 136 101 98 102 116 103 97 October- -. 105 103 104 102 112 105 126 128 120 119 131 135 99 98 103 114 101 97 November 101 100 100 100 105 101 122 129 120 121 124 130 97 97 98 101 98 97 December.. 96 101 I 95 100 97 103 111 131 111 125 111 136 95 97 99 88 98 97 1928 January—_ 105 105 ! 106 106 100 103 111 137 116 139 108 135 94 96 96 92 102 96 February. 111 108 | 113 109 99 103 121 138 128 142 115 135 96 96 101 94 102 96 March 112 108 1 114 109 98 103 138 137 143 136 134 137 97 96 103 97 103 96 April 110 109 j 113 110 94 105 155 137 152 130 157 142 96 96 100 96 101 97 May 110 109 111 110 104 105 159 137 149 130 168 143 96 QP\ 101 105 103 99 June 108 109 109 111 104 101 154 1 OQ 140 100 144 96 07 101 101 100 98 July 105 109 105 110 103 101 142 13° 127 126 155 137 96 07 Qft ins 109 98 August 110 111 j 110 112 111 105 137 131 116 119 154 141 98 97 103 109 103 199 September 116 114 116 115 115 107 138 134 118 118 154 147 100 98 104 119 105 00 October.._ 118 116 117 116 123 114 134 136 115 115 150 152 100 98 107 119 106 98 November 115 116 i 115 116 117 113 122 132 112 114 130 146 99 99 104 109 107 97 December. 109 116 1 110 117 106 112 107 127 93 106 117 145 98 100 104 94 106 97 1929 1 January.._ 117 117 117 117 114 118 98 120 81 97 111 139 97 100 101 95 108 97 February. 121 118 j 122 118 116 120 102 118 84 94 116 137 100 100 108 99 107 97 March 123 118 ' 126 120 101 107 121 121 106 101 133 137 101 101 111 98 105 98 April 124 122 i 198 124 103 115 139 123 117 100 158 142 102 109 111 1Q9 loft 97 May 126 124 128 126 116 1 ifi 143 1 91 113 Q7 ifiS 14.1 1 no 109 111 1 OQ 1 07 96 June . 125 127 197 129 116 112 144 126 102 QK 1 7ft 1 ^9 102 1 O1} 110 110 1Oft 96 Julv 120 125 120 126 118 114 136 124 94 93 170 149 102 103 1Ofi 1 1 -I 107 98 August 122 123 122 124 121 115 129 122 84 86 166 152 104 103 111 115 107 98 September 123 122 123 122 127 118 112 110 73 73 144 140 105 102 112 121 106 98 October-.. 121 118 119 118 127 118 104 107 67 67 135 139 103 101 111 118 104 96 November 108 108 107 108 114 110 94 103 66 67 116 132 99 99 103 102 102 94 December. 96 100 93 98 110 116 84 102 53 61 109 136 95 97 99 89 102 94 1930 January..- 103 104 103 103 108 112 78 95 46 56 104 128 93 96 94 89 100 93 February. 109 107 110 107 104 109 89 104 44 49 126 148 93 94 98 91 99 92 March 107 104 109 105 91 96 102 102 54 52 141 144 93 93 98 90 96 91 A M p a r y il . -_ 1 1 0 0 5 8 1 1 0 0 6 4 1 1 0 1 6 0 1 1 0 0 4 7 1 9 0 3 ° 1 1 0 0 4 3 1 1 1 2 3 5 1 1 0 0 5 1 6 fii 2 C C O O i 1 7 r\ f ( t \ 1 1 4 4 .Q 0 n Q o 1 09 07 QO 9 8 1 9 June 99 100 99 100 103 100 116 99 54 49 166 140 89 90 91 95 93 87 J A u u ly gust 9 9 1 0 9 9 4 1 8 8 9 8 9 9 4 0 1 1 0 0 0 1 9 9 7 6 1 8 0 5 7 81 4 4 0 8 4 4 7 9 1 1 15 ^ 1 1 0 3 6 ^ R 85 fi 8 07 4 82 96 89 8 8 4 4 September 92 91 91 90 100 94 82 81 52 52 108 105 86 83 83 99 87 84 October... 90 87 88 85 104 98 75 78 51 52 94 99 84 82 81 97 86 83 November 85 84 83 83 95 92 03 76 46 48 80 99 81 81 75 86 84 80 December. 78 82 76 80 89 94 59 73 37 43 77 98 79 80 74 74 84 78 1931 January, _. 82 82 81 81 86 90 58 71 37 44 75 93 76 78 68 74 82 77 February. 87 86 88 85 84 88 68 79 42 47 89 104 77 78 73 74 80 76 March S9 87 91 87 82 87 77 77 50 47 " 98 100 78 78 75 75 80 75 April 90 89 91 S9 83 92 82 73 52 44 107 96 78 78 74 77 80 73 May 89 89 90 89 84 86 78 65 47 40 104 85 77 78 72 79 79 71 June 83 84 83 84 85 85 74 63 41 37 101 84 75 76 68 77 77 70 July 80 83 79 or, 84 68 Ti1 oc or QA C-A. 7ft 70 August 78 79 77 79 82 79 63 59 32 33 87 81 74 74 64 76 72 t° September 77 76 77 76 82 77 59 59 32 32 81 80 75 73 62 78 69 69 October.._ 75 73 72 71 89 85 52 55 29 30 71 76 71 70 1 59 78 69 68 November »73 P72 *71 *>70 82 84 43 49 26 27 57 67 69 69 56 70 68 68 1 For oack figures see BULLETIN for September, 1931 (p. 508). For indexes of groups and separate industries see p. 82. 2 For indexes of groups and separate industries see p. 83. * Average per working-day. ** 3-month moving average, centered at second month; see BULLETIN for July, 1931, p. 358. T vV nolesale price index of Bureau of Labor Statistics: 1926=100. Index numbers for groups and subgroups of commodities are given on p. 84. p Preliminary. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

20 FEDERAL RESERVE BULLETIN JANUARY, 1932 MERCHANDISE EXPORTS AND IMPORTS [In millions of dollars] Merchandise exports Merchandise imports Excess of exports 1928 1929 1930 1931 1928 1929 1930 1931 1928 1929 1930 1931 Januarv _ 411 488 411 250 338 ! 369 311 183 73 119 100 66 February . __ _ 371 442 349 224 351 i 369 282 175 20 72 67 49 March 421 490 370 236 380 , 384 300 210 40 106 69 26 April . . .. 364 425 332 215 345 • 411 308 186 19 15 24 29 May 423 385 320 204 354 \ 400 285 180 69 *15 35 24 June 389 393 295 187 317 | 353 250 173 71 40 44 14 July. 379 403 267 181 318 353 221 174 61 50 46 6 August 379 381 298 165 347 ' 369 218 167 32 11 79 *2 September 422 437 312 180 320 351 226 170 102 86 86 10 October-.- . . 550 529 327 205 355 I 391 247 169 195 137 80 36 November. ._ 545 442 289 *193 327 338 204 M50 218 104 85 *43 Year to date _ .. 4,653 4,814 3, 568 p 2,240 3,752 : 4,090 2,852 P 1,937 900 725 716 *>3C2 December 476 427 275 339 J 310 209 136 117 67 * Excess of imports. DEPARTMENT STORES—SALES, STOCKS U923-1925 average=100. For back figures see BULLETIN for November, 1930, p. 686] Index of sales l Index o m f s o t n oc th k ) s (end of Month Adjusted Without Adjusted for seasonal seasonal ad-for seasonal variation justment variation 1930 1931 1930 1931 1930 January 107 97 88 99 February _ 108 98 89 80 98 March _. _ 107 97 93 92 97 April 107 106 110 101 97 Mav 105 97 105 97 96 June 103 95 98 90 96 Julv . 100 91 71 65 94 August 102 88 77 67 September.- _ 99 84 103 87 October 102 86 112 93 November 98 83 113 95 December 94 165 Year 102 ococ o p Preliminary. FREIGHT-CAR LOADINGS, BY CLASSES [Index numbers;1 1923-1925 average=100. Source of basic data: American Railway Association] 1931 July August Septem- OctoberNo b v e e r m- Without seasonal ad- Adjusted for seasonal variation justment Total 76 72 69 69 68 Coal 73 70 69 72 65 1931 1930 1931 C G o ra k i e n and grai - n pr . o . d . - 46 42 42 44 44 ucts.- _. ._ _ 100 78 68 74 76 Livestock 67 72 64 64 69 88 88 78 Forest products 38 36 35 33 33 86 93 81 Ore 51 52 49 36 23 84 100 87 Miscellaneous 79 73 68 69 72 8 8 3 3 1 9 0 8 1 8 8 7 5 Merchandise 2 88 86 85 83 83 8 8 2 1 9 8 3 7 8 7 0 5 • Without seasonal iid Justinent 79 87 76 81 95 84 Total . 78 76 78 78 70 80 101 88 Coal 64 68 74 83 72 92 87 104 98 Coke 41 38 42 45 46 91 85 Grain and grain products 120 95 83 ' 82 80 94 Livestock 56 64 76 86 80 Forest products 38 38 37 33 31 1 Based throughout on figures of daily average sales—with allowance M Or i e scellaneous 9 8 2 3 8 8 9 1 8 7 1 9 8 5 1 0 7 1 0 6 for changes from month to month in number of Saturdays and for six Merchandise 2 87 86 88 87 85 national holidays: New Year's Day, Memorial Day, Independence Day, s L o a n b a o l r v D ar a i y a , t io T n h a m nk a s k g e i s v i a n l g lo w D a a n y c , e a i n n d M Ch ar r c is h tm a a n s d . A A p d r j i u l s t f m or e n t t h e fo e r f f s e e c a t - s 1 Based throughout on daily average loadings. upon sales of changes in the date of Easter. 2 In less-than-carload lots. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

21 JANUARY, 1932 FEDEKAL RESERVE BULLETIN FOREIGN BANKING AND BUSINESS CONDITIONS REPORT OF THE SPECIAL ADVISORY COMMITTEE APPOINTED BY THE BANK FOR INTERNATIONAL SETTLEMENTS PREAMBLE sources, copies of which it is forwarding to the governments concerned and to the Bank for The German Government having, in accord- International Settlements for their information. ance with article 119 of the Young plan, applied The committee desires to express its gratitude in a letter annexed to this report to the Bank for the very full information thus afforded, and for International Settlements on November 19, its appreciation of the manner in which the 1931, for the convocation of the Special Advimaterial was compiled and presented. The sory Committee, and having declared that committee has utilized this material, much of "they had come to the conclusion in good faith which is similar in content to the statistics that Germany's exchange and economic life available for other countries, as part of the might be seriously endangered by the transfer basis for its work, although its conclusions have in part or in full of the postponable proportion of annuities/7 the board of the bank convened naturally been arrived at by reference to broader considerations. the committee in accordance with article 45 of its statutes. The committee also wishes to express its The seven ordinary members of the com- thanks to the Bank for International Settlemittee were nominated under article 127 of the ments for placing at its disposal the secretariat, Young plan, as follows: and its high appreciation of the admirable Prof. Alberto Beneduce, by the governor of manner in which the latter has executed difficult the Banca d'ltalia. and exacting tasks which it has been called Monsieur Emile Francqui, by the governor upon to perform. of the Banque Nationale de Belgique. Sir Walter T. Layton, C. EL, C. B. E., by the CHAPTER I governor of the Bank of England. 1. Present situation.—The circumstances in Dr. Carl Melchior, by the president of the which we have been called together are so w^ell Reichsbank. known that no lengthy recapitulation of events Mr. Daisuke Nohara, by the governor of the is necessary. The world depression, which Bank of Japan. started over two years ago, gradually gathered Prof. Charles Rist, by the governor of the force until it broke in the credit crisis of the Banque de France. summer. Dr. Walter W. Stewart, by the governor of the Federal Reserve Bank of New York. Every country has been shaken by that crisis, The ordinary members held a meeting on but its effects in Germany as well as in some other December 7, at the Bank for International countries of central and eastern Europe were Settlements, at which Signor Beneduce was devastating. Sweeping withdrawals of foreign unanimously chosen as chairman. The mem- credits led to the crippling of the German bankbers availed themselves, under article 129 of ing system, strained the reserve and credit the Young plan, of the privilege of coopting the position of the Reichsbank to the uttermost, so following four additional members: that, in order to protect the currency, it was Dr. R. G. Bindschedler. necessary to impose stringent measures of ex- Doctor H. Colijn. change control, which accentuated the already Doctor Diouritch. serious restrictions in the volume of economics Mr. Oscar Rydbeck. activity. The pressure upon the whole struc- The full committee met for the first time at ture of Germany culminated in the emergency the Bank for International Settlements on decree of December 8, 1931, which includes December 8, and held plenary sessions from measures without parallel in modern legislation. December 9 to December 23; and various sub- The following paragraphs sketch in brief outcommittees were set up, and their reports will line the situation which these developments be found as annexes to this report. have created in Germany to-day. The committee has been supplied with an 2. Foreign debt.—Germany was peculiarly extensive documentation from official German susceptible to the credit crisis by reason of the Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

22 FEDERAL RESERVE BULLETIN JANVARY, 1932 arge amount of her short-term foreign liabili- doubtful if economic conditions will permit it ties. In the first seven months of 1931, 2,900,- to continue at the same high level. Exports 000,000 reichsmarks ($690,780,000) of short- have been maintained partly because the need term credits were withdrawn, principally in for cash has put pressure on manufacturers to June and July. A census taken by the German sell off stocks, in many cases at a loss, while Government of the amount of foreign capital some exceptional sales have been made to in Germany as on July 28 shows that the total Great Britain in anticipation of tariffs. Imcommercial debt, and in particular the amount ports have been reduced because unemploylent on short term, was even larger than was ment, lower wages, and high taxation have indicated in the available figures which were reduced the consuming power of the country, submitted to the bankers' committee early in and therefore the demand for imports of con- August last. This census indicates that the sumable commodities. The general reduction total of advances repayable by Germany at of industrial activity has curtailed the demand short term outstanding at the end of July for imports of raw and semifinished material, amounted to nearly 12,000,000,000 reichsmarks and in any case the sharp reversal in the flow of ($2,858,400,000). But this figure of 12,000,- foreign credit handicaps purchases abroad. The 000,000'reichsmarks includes nearly 4,000,000,- surplus has, moreover, been increased by the 000 reichsmarks ($952,800,000) of nonbanking fact that up to now the world price level of the credits, which in all probability are not so likely type of goods imported into Germany, viz, raw to be withdrawn to the same extent as banking materials, foodstuffs, etc., has fallen much advances, and to a considerable extent are set more than that of the type of goods exported off by direct counterassets. The Standstill by Germany, viz, finished products. Agreement, under which the banking creditors But it is impossible to disregard the existence of Germany undertook not to call in their of powerful general factors adverse to the credits for six months as from September 1, continuance of this favorable development. 1931, applies to rather more than half of the Tariffs, exchange control measures in other 12,000,000,000 reichsmarks. countries, import restrictions and contingents, The Standstill Agreement, however, per- together with the enhanced competition Germitted the repayment of certain credits, and many is likely to meet through the depreciaunder these provisions sums estimated at tion of sterling and other currencies, all tend to 1,200,000,000 reichsmarks ($285,840,000) have hamper German exports; on the import side been withdrawn during the period ending it will be necessary for Germany to replenish November 30, 1931. her stocks of raw materials and to purchase 3. Trade balance.—Some set-off for the recent food from abroad. withdrawals has been found in the fact that In any case, the surplus represented by the they have coincided with a growing export above figures has not become immediately surplus which began at the end of 1929. The available to Germany in the form of foreign figures are as follows: exchange which can be utilized to repay debts. In view of the prevailing lack of confidence, [In millions] there has been an increasing tendency to call upon Germany to pay cash for her imports, Surplus of im- Imports Exports ports (—) or while she has had to give extended credits for exports (+) her exports. In particular, German exports to Russia, which are running at about 80,000,000 | R m e a i r c k h s s- Dollars R m e a ic r h k s s - ,D-UoOllljaarrsb , R m ei a c r h k s s - Dollars reichsmarks ($19,056,000) a month, on the average of the last four months, have been Monthly average: ! made on very long credit terms. On the other 1925-1929 I 1,051 250 959 228 -92 -22 hand, even exporters have been able, in spite of 1930. 866 206 1, 003 239 +137 +33 1931, January to the legal restrictions, to keep abroad part of June 1.. 634 151 794 189 +160 +38 the foreign exchange resulting from exports. July, 1931 562 134 827 197 +265 +63 August, 1931 454 108 803 191 +349 +83 4. Balance of payments.—Taking the year September, 1931 448 107 835 199 +387 +92 October, 1931 483 115 879 209 +396 +94 as a whole, the extent of the exodus of capital November, 1931 482 115 749 178 +267 +64 which Germany has to meet by means of her export surplus (disregarding the qualification The recent heav}r export surplus is in part the explained in the preceding paragraph), together result of certain abnormal factors, and it is with such other resources as have been avail- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

JANUARY, 1932 FEDERAL RESERVE BULLETIN 23 able to her, is indicated by the following rough ments, and for the imports necessary to Gerbalance sheet for the year 1931: many, the Reichsbank has been forced to take or recommend a series of measures of increasing [Tn millions] stringency, in order to limit to the greatest possible extent the other calls for foreign Reichsmarks Dollars exchange which might be made upon it. Nevertheless, the reserve has fallen still fur- Export surplus for year (estimated), including ther, until on December 15, 1931, it was no services and deliveries in kind : 3,000 ' 715 Utilization of foreign assets of German banks 1, 300 | 310 more than 1,161,000,000 reichsmarks ($276,- Re c d e i n s t c r o al u n b t a a n n k d s o a t n h d e r th cr e e d B it a s n , k in c fo lu r di I n n g te t r h n a a t t i f o ro n m al | 550,200), of which 630,000,000 reichsmarks Settlements ' 1, 200 ! 28fi ($150,066,000) represent the amounts due Drawn from gold, etc., reserve of Reichsbank 1, 700 j 405 under the rediscount credits referred to above. Total _ 7,200 ! 1, 715 The percentage cover for the note issue has Reparation payments up to June 30, 1931 : 800 I 191 thus fallen to 25.6 per cent, or if the 630,000,000 Interest and normal amortization on Germany's i ; foreign liabilities (estimated) j 1,500 ! 357 reichsmarks be excluded, to 11.7 per cent. Balance representing capital withdrawn | 4,900 I 1,107 The note circulation itself amounts to approxi- Total _ 7, 200 1,715 mately 4,600,000,000 reichsmarks ($1,095,720,- 000), which compares with a figure of 4,300,- An examination of the above table, which 000,000 reichsmarks ($1,024,260,000) a year can obviously be only an estimate, as will be ago. In view of the reduction of business seen from the report of the subcommittee, activity in the last year, as well as of certain shows how great a part of Germany's income measures taken to economize the use of curfrom the surplus of exports has been absorbed rency, the present note circulation is high; by the amounts required for the interest and this may be attributed to a decrease in the normal amortization of her foreign liabilities, velocity of circulation and to a certain tendand for reparation payments before the Hoover ency on the part of the public to hoard notes. plan. The withdrawal of capital, besides exer- An important change in the situation is cising considerable pressure on the balance of revealed by an examination of the volume of trade, as already described, forced Germany to bills now held by the Reichsbank and the private have recourse not only to the reserves held banks, respectively. Before the crisis the against their foreign liabilities by the German proportion of gold and foreign exchange to the private banks but also to increase such credits total note issue fluctuated around 60 per cent; as were commercially available by the redis- for example, on April 30, 1931, the Reichsbank count credits granted to the Reichsbank and the held gold and exchange reserves of 2,526,000,000 Golddiskontbank. This did not obviate heavy reichsmarks ($601,693,200), and domestic bills sales of gold, and the striking feature of this of 1,520,000,000 reichsmarks ($362,064,000), balance sheet is the drain which the withdrawal against a total note issue of 4,340,000,000 of capital has placed upon the reserve of the reichsmarks ($1,033,788,000), that is, 58 per Reichsbank, which has profoundly influenced cent of the note issue was covered by gold and the policy of the latter. foreign exchange. At the same date the credit 5. The Keichsbank.—The Reichsbank re- banks held nearly 2,900,000,000 reichsmarks serve, which stood at 2,685,000,000 reichsmarks ($690,780,000) of domestic bills, representing ($639,567,000) at the end of 1930, and even at an immediately liquid asset which the credit 2,576,000,000 reichsmarks ($613,603,200) at banks held as a reserve against their despoit the beginning of June, 1931, had fallen to liabilities. 1,610,000,000 reichsmarks ($383,502,000) on The heavy withdrawal of deposits from the July 31, 1931. Of this last amount, however, it credit banks during the crisis, whether by owed at short-term 630,000,000 reichsmarks external or internal creditors, induced the banks ($150,066,000) in respect of the rediscount to seek assistance from the Reichsbank by credits granted to it by the Bank for Inter- discounting such material as they had availnational Settlements and the central banks, able, and in addition creating (to some extent, and to the Golddiskontbank by an American with the assistance of the Acceptance and banking consortium. In order to insure that Guarantee Bank) further material for discountthe necessary foreign exchange should be avail- ing with the Reichsbank. The latter has thus able to meet the service of Germany's long-term to a considerable degree extended its own debt, for such repayment of short-term credits credit in substitution for the deposits and other as is permissible under the standstill arrange- credits which have been withdrawn from the Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

24 FEDERAL RESERVE BULLETIN JANUARY, 1932 credit banks, as well as from the savings banks. is one of the causes of the present decline in As a result, the domestic bill holding of the industrial activity. Reichsbank on December 15,1931, amounted to 7. The budget.—The decline of economic 4,213,000,000 reichsmarks ($1,003,536,000) (in- activity, the fall of profits resulting from the fall cluding 542,000,000 reichsmarks ($129,104,400) in prices, and the lower yield of the taxes on of bills set aside against credits granted to the wages due to increased unemployment and Reichsbank as referred to above), while that of lower wage rates, have seriously reduced the the credit banks on October 31, 1931 (the last yield of taxation. This fall (taken in conjuncavailable date), has fallen to 1,792,000,000 tion with the cost of maintaining the growing reichsmarks ($426,854,400). In these circum- army of the unemployed) has produced a critical stances we hesitate to express an opinion on situation in the public finances of Germany. the advisability of the recent reduction in the In the five years preceding the depression the Reichsbank rate. revenue and expenditure of the Reich, the Fed- 6. Production and employment.—In order as eral States and the communes showed a rapid far as possible to protect the external position— increase. Owing to the system of taxation under the reichsmark exchange and the export mar- which the latter received a proportion of the ket—Germany has pursued a deliberate policy taxation collected by the Reich, the situation of stringent and sharp reduction of the level of can best be shown by combining the budgets of wages and prices. The index figure of whole- all the authorities concerned. The figures are sale prices fell from 140 in November, 1928, to shown in the following table, which also gives 106 in November, 1931, and prices are further the total gross expenditure of all these authorto be reduced under the emergency decree of including expenditure covered by receipts December 8, 1931, while wages are reduced from State property—from loans and from other under that decree to approximately the level sources: prevailing at the beginning of 1927. [In millions] Taking 1928 as 100, the index of industrial production rose to 101 in 1929, fell to 86 in Reichs- Dollars marks 1930, and. for September, 1931 (the latest figure available), it had fallen to 66—in other Taxes * raised and retained by the Reich (i. e., words, one-third of the industrial life of excluding the tax transfers to the States): Germany has stopped. 1926-27 5,312 1.265 1927-28 6,357 1 514 This gradual atrophy of industrial and com- 1928-29 6,568 1. 564 1929-30 - 6,686 1.593 mercial activity has further increased unem- 1930-31 6,634 1.580 ployment, which was already high before the Taxes raised by States and Communes, including the tax transfers from the Reich: crisis. The figure of unemployed (excluding 1926-27 6, 363 1.510 1927-28 .._ 7,189 1.712 part-time workers) on December 1, 1931, had 1928-29 7,730 1. 841 reached a level of 5,000,000 out of approxi- 1929-30 7,593 1.809 1930-31 _ . . - 7,482 1.782 mately 21,000,000 employed persons. Expenditure of Eeich: 1926-27 6,561 1.563 The crisis has also seriously affected German 1927-28 7,154 1.704 agriculture, which in 1925 employed about 30 1928-29 8,375 1.995 1929-30 7,987 1.903 per cent of the working population of Germany. 1930-31 8 193 1 952 Expenditure of other authorities: Having contracted debts at high rates of interest 1926-27 10, 639 2.534 when prices were high, it now finds it difficult, 1927-28 11,647 2.774 1928-29 12,426 2.960 if not impossible, to earn sufficient to meet the 1929-30 12, 836 3.058 1930-31 12, 770 3.042 interest on these debts, and measures of protection and financial relief, amounting almost 1 Including the contribution of the railway company. to a moratorium, have been taken in order to prevent a general collapse. The expenditure of the Reich includes an Ever since the inflation period the demand item for reparations which rose from 1,300,000,for capital in Germany, in relation to the supply 000 reichsmarks ($309,660,000) in the year from domestic sources, has kept interest rates 1926-27 to 1,800,000,000 reichsmarks ($428,above those prevailing in other countries. 760,000) in the year 1930-31, that is, about \2){ During 1930, advances to manufacturers of per cent of the total tax revenue of the Reich, first-class standing seldom cost less than 8 per the States and the communes. cent; in recent months the cost has been about The revenue receipts for 1930-31 fell consid- 50 per cent higher—that is, rates have risen to erably short of the original estimates. The about 12 per cent. This burden naturally im- position in 1931-32, in which the revenue was poses a heavy strain on German industry, and expected to equal that actually received in the Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

25 JANUARY, 1932 FEDERAL RESERVE BULLETIN preceding year, has rapidly deteriorated. Fresh ($14.47), while welfare relief payable by the estimates made in September, 1931, showed an communes—varying according to the locality— estimated fall in the total receipts from taxes may be estimated probably in the neighborcollected by the Reich (including amounts sub- hood of 50 reichsmarks ($11.90) monthly. sequently transferred) of not less than 1,000,- It is, however, an advantage from the purely 000,000 reichsmarks ($238,200,000). It is furbudgetary point of view that the internal ther estimated that the yield of taxes collected debt and the annual charge which it involves by the Reich at the rates in force prior to the is comparatively very low as a result of the recent decree will show a further fall next year inflation prior to 1924, which wiped out the of 1,000,000,000 reichsmarks ($238,200,000) and greater part of the previously existing debt. amount to not more than 7,250,000,000 reichs- On the other hand, the German Government in marks ($1,726,950,000), as compared with rethe sketch estimate for 1932 has included a ceipts of 9,250,000,000 reichsmarks ($2,203,considerable sum for the amortization of its 350,000) in 1929-30. This fall of 2,000,000,000 short-term debt incurred to meet the deficit of reichsmarks ($476,400,000) is after taking previous years. This provision has been made credit for a series of measures imposing taxaby Germany in view of the fact that the shorttion during the preceding two years, amounting age of credit is such that the Government is to 1,500,000,000 reichsmarks ($357,300,000). practically unable at present to rely on bor- Had the rates of taxation not been increased, rowing in the money market in order to meet therefore, the revenue would have fallen off in its maturing short-term obligations. the last two years by some 3,500,000,000 reichsmarks ($833,700,000), or about 40 per cent. It In view of the measures taken in the four is estimated that the present decree will raise decrees relating to taxation and expenditure the revenue to approximately the same level as issued in the last two years, and in particular in the present year, that is, about 8,000,000,000 in that of December 8, 1931, the committee reichsmarks ($1,905,600,000). is of opinion that the burden of taxation has become so high that there is no margin for a Apart from the increase in taxation referred to further increase. above, attempts are being made to meet the falling off in revenue by sweeping reductions in 8. German railway.—The growing stagnation expenditure. So far as the Reich is concerned, in German business activity has naturally been expenditure on all objects other than service reflected in the gross receipts of the German of the debt, transfers to the Federal States, Railway Company, which fell in 1930 by 14.6 external war burdens and emergency unem- per cent compared with 1929. Although enployment relief, has been reduced from 1929 to ergetic measures of economy were taken to meet 1932 from 4,780,000,000 reichsmarks ($1,138,- this loss of income, the surplus of receipts over 596,000) to 3,720,000,000 reichsmarks ($886 operating expenses fell from 860,000,000 reichsr 104,000), that is, a reduction of 1,060,000,000 marks ($204,852,000) to 480,000,000 reichsreichsmarks ($252,492,000), or 22 per cent. marks ($114,336,000), that is, 180,000,000 Measures similar in character have been reichsmarks ($42,876,000) short of the amount taken by the Federal States and by the com- necessary to cover the reparation liability. A munes. The latter were empowered about a further fall has taken place in 1931, the receipts year ago to increase taxation and they were of which are 28 per cent below those of 1929, asked to reduce expenditure, and in any cases and it is estimated that the surplus of receipts where these powers have not been exercised over operating expenses will amount to only the competent higher authority may step in 178,000,000 reichsmarks ($42,399,600). In to see that the necessary measures are taken. these circumstances the railway in 1931 will Part of the economies effected have, however, not be able, even after drawing upon its been offset by the increased cost of unemploy- reserves, to cover out of earnings the liabilities ment relief, due to the growth of unemploy- incumbent upon it in respect of reparation and ment in the last two years. It has been possi- debt charges, though the cash position is met ble to effect considerable economies in this by the financial arrangements made between sphere by reducing the average monthly benefit the German Government, the railway, and the paid to the unemployed, which from a former Bank for International Settlements in connecaverage of 80.93 reichsmarks ($19.28) has fallen tion with the Hoover plan. It is impossible to 63.86 reichsmarks ($15.21) in 1931. Expend- to estimate what will be the operating results iture under the emergency relief system, of the year 1932. Nevertheless, the subcomwhich averaged 71 reichsmarks ($16.91) a mittee who were asked to report upon the month, has dropped to 60.75 reichsmarks position of the German Railway Company Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

26 FEDERAL RESERVE BULLETIN JANUARY, 1932 came to the conclusion that once Germany source of disturbance in international trading and the world at large had recovered their relations and given rise to the universal tendency balance and returned to something like the to hoard, which, if it were to continue, would economic conditions which we are accustomed bring to a standstill the whole system of credit. to regard as normal, the railway company Finally, to this monetary crisis is now being (fundamentally a sound undertaking) will be added a tariff crisis, each county seeking to able in future years, if managed on a commer- defend its diminished production against forcial basis, to yield a net operating surplus eign imports by a fresh increase in import comparable with that earned by other big duties and other forms of trade restrictions, foreign railway systems. which in turn result in the still further shrinkage of international trade. CHAPTER II We can not here attempt to examine all the CIRCUMSTANCES AND CONDITIONS WHICH HAVE underrying causes of this profound disturbance LED TO THE PRESENT SITUATION to the economic life of the world, but certain of The circumstances and conditions which have its aspects are intimately linked with the led to the situation we have been describing are problem with which we are directly concerned. partly international and partly peculiar to Among these factors, the banking committee Germany. which met in Basel in August called attenfc 1. Course of the crisis.—Like all other coun- tion to the fact that "in recent years the world tries, Germany has suffered from the conse- has been endeavoring to pursue two contradicquences of the extreme fall of prices, which is tory policies, in permitting the development of the characteristic trait of international eco- an international financial system which involves nomic life since the end of 1929. The fall of the annual payment of large sums by debtor about 30 per cent of wholesale prices in the to creditor countries, while at the same time world as a whole far exceeds in magnitude the putting obstacles in the way of the free movefall in prices that has taken place in any period ment of goods/7 and that the case of Germany of depression in the last 100 years. It is impos- provides a most forcible illustration of this sible to say if this fall is permanent or if it will dilemma. So long as the payments to be be followed, after the acute depression has made were offset by loans to the debtor country passed away, by a substantial rise. What is this dilemma did not arise, but as soon as such certain is that it has deeply affected all eco- capital movements ceased, as happened in the nomic activity, and that no effort to maintain autumn of 1929, it becomes evident that in the prices—iby whatever means it may have been long run, as the Dawes committee clearly attempted—has hitherto attained any success. pointed out, these payments can only be made The sharp reduction of purchasing power in the form of goods. The change from a of large masses of consumers has involved period of excessive expansion of foreign lendin the last two years the reduction or com- ing by certain creditor countries, followed by plete disappearance of industrial profits, seri- an abrupt cessation of such lending, constious unemployment, and an uninterrupted tutes one of the chief points of contrast beslump in stock exchange securities. It has tween the period 1924-1929 and 1930-31, threatened in consequence the status of a large and has been one of the principal features in number of banks; this banking crisis in its the credit situation of recent times. If barturn has provoked a general lack of confidence riers are imposed to the free movements and involved a withdrawal of foreign capital of goods, the world can not readily adapt from countries w^hich hitherto have had the use itself quickly to important changes in the of it, and in particular from central Europe. course of credit and trade. Attempts to It has only been possible to maintain the ex- maintain the international balance of payments change value of the currencies of some of these by means of larger and abnormal movements countries on a nominal basis by a system of of gold have weakened the monetary foundadecrees regulating the exchange market and tions of many countries. In fact, when the by the suspension of a part of their foreign withdrawal of large sums of capital took place, payments. the gold reserves of the countries concerned This situation has naturally aggravated the proved quite inadequate to stand the strain. "crise de confiance" in the lending countries This led in some countries to the strict control themselves. The abandonment of the gold of foreign payments and in others to the susstandard by certain of them has created a fresh pension of the gold standard. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

JANUARY, 1932 FEDERAL RESERVE BULLETIN 27 2. Capital and commercial debt of Germany.— due to increasing unemployment) have con- Germany's demand for capital to fill the gap tinuously increased and now represent 43 per left by the war, the aftermath and the inflation, cent of the total expenditure, and amount in was very great. As a matter of fact, the influx 1929-30 to 8,897,000,000 reichsmarks ($2,119,of foreign capital which began as soon as the 300,000). mark was stabilized and which was estimated While expenditure thus increased the debt by the bankers' committee to be about 18,000,- grew in a disquieting fashion. When stabiliz- 000,000 reichsmarks ($4,287,600,000), has been ing took place, inflation had reduced the public partly offset by the 10,300,000,000 reichs- debt to very small amount. On the other marks ($2,453,460,000) of reparation payments. hand, by 1931 this debt reached more than But in any case, between 1925 and 1930 24,000,000,000 reichsmarks ($5,716,800,000), Germany has invested a very large amount of of which 8,400,000,000 reichsmarks ($2,000,880,capital in both private and public enterprises. 000 were for public undertakings (water, gas, She has, for example, reconstructed her mer- electricity, transport, and roads), for the buildchant fleet, she has modernized and rationalized ing of houses and for various public works many of her industries, and her towns have (hospitals, sanatoria, etc.). In particular from carried through large programs for public pur- 1928 to 1931—in three years—the debts of the poses. The figures furnished to us by the States and communes increased from 7,500,- German delegation show for the period 1924- 000,000 reichsmarks ($1,786,500,000) to 12,700,- 1929 the investment of a sum amounting to 000,000 reichsmarks ($3,025,140,000). 32,845,000,000 reichsmarks ($7,824,000,000), of When the crisis came, with the inevitable which 22,428,000,000 reichsmarks ($5,342,000,- reduction of private incomes and budgetary 000) represent investments by public author- receipts which it naturally involved, the fact ities, for public utilities, housing (other than that expenditure had been so high meant that houses financed purely by private means), the deficit was correspondingly large. roads, canals, etc. This policy of growing expenditure, as also These sums have, of course, been forthcom- the system of financial relations which exists ing partly from Germany's own savings, which between the Reich, the States and the comreached very high figures in the course of munes, have often been the subject of critirecent years. But the foreign holding of so cism. The Reich levies taxation of which it large a proportion of her capital wealth makes retains part only, and of which a proportion her peculiarly vulnerable to financial disturb- fixed by law is automatically handed over to ance, particularly to the extent that this capital the States and communes, which only cover is withdrawable at short notice. Moreover, a their expenditure from their own resources to substantial part of these short-term credits the extent of 75 per cent. Such a system means has proved to be immobilized in long-term that the control of expenditure is divorced from investments. The withdrawal of these credits the responsibility of raising the revenue to meet must therefore threaten not only the exchange it, and although the system may have been but also the liquidity of the banks themselves. moderated by recent ordinances of the Reich, 3. Growth of the German budget.—Turning we think that reform in this matter would have to Germany's budgetary situation, the rapid beneficial results. development of Germany's economic activity In concluding this analysis of the circumin recent years has been paralleled by an stances and conditions which have given rise increase of government expenditure. The con- to the present budgetary position of Germany, tinued increase of expenditure from 1925 to the following observation should be made: 1930 has absorbed as fast as it came into being Notwithstanding the exceptional character the growing taxable capacity of Germany. In of the present crisis, there is no instance in spite of a rapid increase in normal receipts, economic history of a crisis, no matter how which increased between 1926-27 and 1929-30 great, which was not followed by periods of from 14,719,000,000 reichsmarks ($3,506,100,- stability or prosperity. Just as it would be 000) to 18,054,000,000 reichsmarks ($4,300,- wrong to forecast a country's economic future 500,000), the increase of expenses has been on the basis of a period of prosperity, so it equally rapid. Indeed, they have risen from would be unjustifiable to judge its chances for 17,200,000,000 reichsmarks ($4,097,000,000) to the future on the basis of a period of depression. 20,823,000,000 reichsmarks ($4,960,000,000), At the present time the budgets of all coun- # and have resulted in an increase of debt. tries and of almost all privately or publicly Among the expenditure items, outgoings for owned railways show a deficit. In every counbuildings, education and social charges (chiefly try efforts are being made to restore the equi- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

28 FEDERAL RESERVE BULLETIN JANUARY, 1932 librium of these budgets by cutting down ex- ants, reducing them by over 20 per cent, has penditure and by adjusting receipts to changed been made in the last 18 months, so that salaries conditions. To assume that in the present case will be now on a lower level than at the beginequilibrium will not be regained would be a ning of 1927. counsel of despair. Similar measures have been taken with regard What is true of the budgets and railways of to the budgets of the Federal States and the other countries is obviously equally true of communes. The latter have been authorized, Germany. In past years Germany has built and in certain cases compelled, to levy new and up an immense and powerful economic equip- additional taxation in the form of a poll tax, ment, capable of yielding a great return. The a local beer duty, and a tax on beverages. The restriction of markets and the fall of prices have reductions in salaries apply also to officials prevented her from utilizing this equipment to employed by these bodies. the full. The activity of her factories is now Contributions under the unemployment innecessarily reduced, but although it is impos- surance scheme have been raised to 6.5 per sible to fix a date for the recovery of stability, cent of wages, while considerable reductions which is still threatened to-day, it is none the in the scope and scale of the benefits paid by less certain that this stability will ultimately be the Insurance Institute have been made. restored with the help of the measures suggested A further main point in the program of the in chapter 4. Government was the reduction of prices and In the course of our investigations we were wages. Prices were generally reduced by 10 able to ascertain from the figures submitted to per cent. Rents are being reduced by a similar us that, as regards both the railways and the percentage. Even the rates of interest on budget, receipts are no less elastic in the case long-term obligations must be reduced by about of Germany than elsewhere. 25 per cent. In the sphere of wages, a general On the other hand, it would be rash, both in reduction to approximately the level prevailing the case of Germany and in the case of other at the beginning of 1927 has to take place. countries, to presume to indicate the precise The magnitude of the crisis forced the Govmoment at which this exceptional and unfor- ernment to emergency measures in the field of tunate period through which we are now passing credit policy. Such measures have been taken will come to an end. for supporting a series of banking institutions and for strengthening the position of the money CHAPTER III market. A system of general control of the banks has been set up, with a commissioner re- SPECIAL MEASURES TAKEN BY GERMANY TO sponsible to a board including representatives MEET THE CRISIS of the Reichsbank and of the competent Gov- In the course of its deliberations the com- ernment authorities. New regulations have mittee had the opportunity of receiving a been made for the carrying on of the business of synopsis of the special measures taken by the the savings banks and allied institutions, in German Government by form of emergency particular limiting the extent to which they decrees, as from July, 1930, in order to meet the may finance the municipalities in future. For increasing difficulties of the situation. the time being they are not allowed to grant The primary object of the German Govern- them new credits. The law governing public ment was to secure the stability of the currency companies has been revised and the provisions and in general the functioning of the German regarding the responsibility of directors sharpeconomy within the frame of the world econ- ened, while new regulations are made regarding omy. To this end they devoted all their the auditing of accounts. efforts in securing the balance of the budget, Transactions in foreign exchange have been not only in the Reich but also in the States centralized in the Reichsbank with a view to and communes. Direct taxation was aug- limiting the purposes for which foreign exchange mented by two increases in the income tax; may be acquired, and all purchases of foreign indirect, by the imposition of further heavy exchange require prior authorization. All perduties on beer and tobacco, while finally the sons becoming possessed of foreign exchange, turnover tax has lately been increased from whether by exports or otherwise, are compelled 0.85 to 2 per cent. Sweeping economies have to offer their holdings to the Reichsbank. It is been effected in the expenditure of the Reich; a no longer possible to remit abroad the proceeds series of cuts in the salaries of all public serv- of sales of securities on behalf of foreigners. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

JANUARY, 1932 FEDEKAL EESEEVE BULLETIN 29 Stringent provisions seek to limit the flight of only has the trade of the world shrunk in capital. All the above-mentioned prescrip- volume, but the very exceptional fall in gold tions are secured by heavy penalties (fines and prices that has occurred in the last two years prison). Repayment of foreign credits is reg- has itself added greatly to the real burden, not ulated by the Standstill Agreement, or, if not only of German annuities, but of all payments covered by this agreement, under decree. fixed in gold. Finally, in order to prevent widespread col- In the circumstances the German problem— lapse of agricultural credit, measures amount- which is largely responsible for the growing ing practically to a moratorium for agricul- financial paralysis of the world—calls for contural debts have been taken, chiefly for the certed action which the governments alone can eastern parts of Germany. Farmers suffering take. from special difficulties are allowed to appeal But the problem has assumed a worldfor protection against foreclosure or distraint wide range. We can recall no previous parallel on condition that they carry on their business in time of peace to the dislocation that is taking under the supervision of trustees, pending place and may well involve a profound change approval of a scheme for relieving them of in the economic relations of nations to one the immediate burden of their debts. Such another. Action is most urgently needed in schemes may provide for reduction of interest a much wdder field than that of Germany alone. rates and the diminution of the capital debt, The economic interdependence of the various in certain cases even without the consent of countries of the world to-day needs no further the creditors. proof; recent years have most strikingly illus- The question how far the measures de- trated it. scribed above will be successful can not be Since July last, for example, it has been evianswered at the present moment. But the dent that if the crisis by which Germany has committee considers that the steps taken to been overwhelmed were not remedied, it would defend and to maintain the stability of the spread to the rest of Europe, destroy the credit currency and the budget show, in their opinion, system so painstakingly built up, and create a resolute desire on the part of the German profound repercussions in other parts of the Government to meet the situation. world. The committee appointed by the Bank for CHAPTER IV. International Settlements, on the invitation of the London Conference, after describing this CONCLUSIONS situation in its report of August 18, 1931, It is evident from the facts outlined in the sounded a most emphatic note of warning, preceding chapters that Germany would be urging that if disasters were to be avoided justified in declaring—in accordance with her before the period of postponement of credits rights under the Young plan—that in spite of recommended by that conference expires on the steps she has taken to maintain the sta- February, 29, 1932, immediate steps must be bility of her currency, she will not be able in taken by the Governments. the year beginning in July next to transfer the But events did not wait. The year 1931 has conditional part of the annuity. not yet ended, and already the crisis has taken The committee, however, would not feel that formidable dimensions, shattering the exit had fully accomplished its task and justified changes of many countries one after the other the confidence placed in it if it did not draw and accumulating difficulties which, if not the attention of the governments to the unprec- dealt with, will only prove forerunners of edented gravity of the crisis, the magnitude of further catastrophies. Unemployment has inwhich undoubtedly exceeds the " relatively short creased; stock exchanges remain closed; ecodepression" envisaged in the Young plan—to nomic activity continues with difficulty at a very meet which the "measures of safeguard" con- low ebb in the face of restricted credit, rigid tained therein were designed. control of the exchanges, and paralyzing re- The Young plan, with its rising series of strictions on international trade. Slowly the annuities, contemplated a steady expansion in effects of shrinking economic activity are makworld trade, not merely in volume but in value, ing themselves felt in one country after another. in which the annuities payable by Germany ^fhis state of things is complicated by the would become a factor of diminishing impor- repercussion of economic affairs on the political tance. In fact, the opposite has been the case. situation and vice versa. The economic decline Since the Young plan came into effect, not which has taken place in the last two years, the Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

30 FEDERAL RESERVE BULLETIN JANUARY, 1932 increasing distress which it has brought in its Finally, although the German Government train, have produced a general political insta- is energetically defending the stability of its bility from which an anxious world is suffering currency, steps are necessary to secure that more and more. Similarly, political considera- these measures shall have a permanent effect. tions have often been allowed to influence the The European governments during recent treatment of economic problems by the govern- years have made great efforts toward reestabments, thus preventing the latter from viewing lishing the stability of currencies after the disthese problems in their true light and from asters of the war and postwar inflation. The dealing with them on their merits. destruction of this work would mean an When governments come to examine the extremely disquieting setback, which would be whole group of questions allied to the subject heavy with consequences. The maintenance of the present report, they will have to take of the stability of the German currency, as of the account of many matters relevant to these currency of any debtor nation, may be placed complex problems—which can only be solved in the greatest peril if the confidence of investors in conformity with economic realities. is lost. In this connection certain considerations seem We appeal to the governments on whom the to us of great importance. responsibility for action rests to permit of no The first is that transfers from one country delay in coming to decisions wThich will bring to another on a scale so large as to upset the an amelioration of this grave crisis which balance of payments can only accentuate the weighs so heavily on all alike. present chaos. This report has been written in the English, It should also be borne in mind that the French, German, and Italian languages. release of a debtor country from a burden of (Signed) ALBERTO BENEDUCE, Chairman. payments which it is unable to bear may Dr. RUDOLF G. BINDSCHEDLER merely have the effect of transferring that H. COLIJN burden to a creditor country which, in its G. DIOURITCH character as a debtor, it, in its turn, may be E. FRANCQUI unable to bear. WALTER T. LAYTON Again, the adjustment of all intergovern- C. MELCHIOR mental debts (reparations and other war debts) D. NOHARA to the existing troubled situation of the world CHARLES RIST —and this adjustment should take place with- O. RYDBECK out delay if new disasters are to be avoided— WALTER W. STEWART is the only lasting step capable of reestablish- BASEL, December 23, 1931. ing confidence, which is the very condition of economic stability and real peace. ANNEXES ANNEX I. MEMORANDUM Application by German Government The German Government hereby applies for To the PRESIDENT, THE BANK FOR the convocation by the Bank for International INTERNATIONAL SETTLEMENTS, BASEL. Settlements in Basel of the Special Advisory Mr. PRESIDENT: In the name of the German Committee for which provision is made in Government I have the honour to transmit to the New Plan of the Hague Agreement of the Bank for International Settlements in January 20, 1930. In regard to the cause and Basel a Memorandum, in which the German purpose of this application the German Gov- Government applies for the convocation of the vernment has the honour to make the following Special Advisory Committee for which pro- statement: vision is made in the New Plan. As early as the beginning of June of this year I have the honour to remain, Mr. President, the German Government became convinced Faithfully yours, that, in spite of the most severe retrenchment (Signed) H. DIETRICH, in Government expenditure and repeated in- Finance Minister of the Reich. creases in the burden of taxation, it would be BERLIN, W. 8., November 19, 1931. incapable of continuing the payment of the Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

JANUARY, 1932 FEDERAL RESERVE BULLETIN 31 annuities under the New Plan. The economic exceedingly critical. The characteristic facts and financial situation of Germany was at the of this situation are universally known. In time already most gravely threatened. The other countries also the pressure of the crisis German Government had accordingly decided has had a most serious effect. The world has to draw the necessary conclusions from this come to realise in an increasing measure the situation. interrelationship of the various financial prob- This decision was followed on June 21 by lems to which the situation has given rise, and the declaration of the President of the United the necessity for immediate action for their States of America, proposing the postpone- solution as a whole. In considering the most ment during one year of all payments on inter- suitable method of handling this problem the governmental debts, reparations and relief view has gained ground that the Special debts. The purpose of the far-sighted initia- Advisory Committee should now be convened. tive thus taken was, in the words of the declara- As under the terms of the New Plan the contion, to assist in the re-establishment of con- vocation of the Special Advisory Committee fidence, thus forwarding political peace and is dependent upon an application by the economic stability in the world; the debtor German Government, the German Governcountries were to be given time to recover their ment has determined to make this application, national prosperity. The hope that this pro- m order to do all in its power to pave the way posal would bring about a decisive turn in the for comprehensive and joint measures on the world crisis was not realised. In consequence part of the Governments. of subsequent events, the Hoover holiday year In accordance with the New Plan the was not in itself sufficient to overcome the application requires a declaration by the Gerdanger of collapse. Accordingly, the British man Government to the effect that "they have Government in July took the initiative of come to the conclusion in good faith that summoning the London Conference. The rec- Germany's exchange and economic life may be ommendations of the conference led to the seriously endangered by the transfer in part or prolongation of the rediscount credit accorded in full of the postponable portion of the anto the Reichsbank, the Basel Standstill Agree- nuities." In making this declaration, the ment and the Report of the Basel Committee German Government must expressly state that of Experts set up by the Bank for International such a declaration does not do justice to the Settlements. present situation. Since the New Plan was framed, the economic and financial situation in Important as all these measures were for the world, and particularly in Germany, has immediate relief, they were essentially merely been fundamentally altered by a crisis without preparatory in character. The London Conparallel. As the New Plan requires the comference itself in its closing declaration stated mittee to examine the situation from all points that the measures recommended were only of view, the Special Advisory Committee must intended as a first step which would form a investigate the problem in its entirety by basis for more permanent action to follow. taking into consideration all its factors, with Accordingly, the experts who collaborated in special reference to the circumstance that the the execution of the London recommendations question of Germany's private indebtedness constantly had in mind the provisional characmust duly form the subject of a new settlement ter of all these measures. The Standstill before the end of the month of February next,, Agreement states, for example, that the conby means of an agreement to be reached tracting parties have approved the settlement between foreign creditors and German debtors. therein provided "pending a more permanent Present conditions being such that the solution of the German short-term indebtednecessary measures require to be taken with ness problem." Similarly the Report of the the utmost dispatch, the German Government Basel Committee of Experts closes with an proposes that the Special Advisory Committee urgent appeal to the Governments concerned should meet immediately and that it should to "lose no time in taking the necessary meascomplete its work as quickly as possible, in ures for bringing about such conditions as will order that a Conference of those Governments allow financial operations to bring to Gerwhich are competent to take the decisions many—and thereby to the world—sorely then to be reached may thereupon at once be needed assistance." held. In the intervening months the economic and financial situation of Germany has become BERLIN, November 19, 1931. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

32 FEDERAL RESERVE BULLETIN JANUARY, 1932 ANNEX II tion has tabulated the following three items for the year 1932: Report of the Subcommittee on Statistics Regarding [In millions] Interest and Amortization of German Foreign Indebtedness Reichsmarks Dollars The German Delegation at the plenary session of the committee has presented estimates of (a) Annual interest payments provided in the interest on Germany's foreign indebtedness and indenture of the bond 398.4 94.9 of amortisation on funded debt. These esti- (b) Annual amortisation charges as and if provided in the indenture of the bond _.. 128.8 30.7 mates have evidently been computed with great (c) Total payments in each year for bonds maturing in that year not retired by means of care. The task assigned to this subcommittee regular amortization payments was to examine these computations and to pass In addition the service for interest and amortisa- 110 26.2 tion of the so-called Dawes and Young Loans judgment upon the degree of their accuracy, or is shown separately from the above-mentioned items for other public and private issues at least upon the extent to which they may be 181.2 43.2 considered as representative. These computations were made for each issue As a general statement it should be said that in accordance with the amount outstanding at all such statistics are to be accepted only with the end of December, 1930, w^b. allowances for due allowances for differences of opinion regard- amounts retired. The total interest and amoring classification, etc., for unavoidable dupli- tisation charges as thus computed for the year cation, for omissions, and for minor errors of 1932 amount to 818,000,000 reichsmarks ($194,compilation. 847,600). The committee was not in a position to check, This estimate is a maximum figure. The in detail, the basic figures from which these following factors would tend to reduce it: computations were derived. The figures in (a) Lower market prices of the bonds permit question are those presented by the German purchases for amortisation at a smaller outlay Delegation to the Advisory Committee showing than that computed. a total German foreign indebtedness of between (b) Depreciated currencies permit similar 28,500,000,000 and 30,000,000,000 reichsmarks reductions in reichsmark interest and amortisa- ($6,788,700,000 and $7,146,000,000) as at the tion charges on bonds expressed in such end of July, 1931. A large part of these statis- currencies. tics has been compiled as a result of an inquiry (c) Previous purchases by residents of Getmade by the Reichsbank. The results of this many of German foreign currency bonds reduce enumeration have been examined by the sub- the amounts to be paid outside Germany. committee with the idea of checking them so It is difficult to estimate the possible effect far as possible with comparable information in of these various factors, but the committee other countries. considers that the total figure is susceptible of In addition to the statistics compiled from a maximum reduction of approximately 150,the inquiry, some of the figures presented by 000,000 reichsmarks ($35,730,000). In this the German Delegation have been based upon way interest charges would amount to between estimates which it is not possible to check with 420,000,000 reichsmarks ($100,044,000) and any degree of precision. In the case of some 530,000,000 reichsmarks ($126,246,000), and of these estimates, however, the subcommittee amortisation to between 250,000,000 reichsmakes with all necessary reservations certain marks ($59,550,000) and 290,000,000 reichstentative suggestions. marks ($69,078,000). A. LONG-TERM DEBT 2. LONG-TERM DEBTS NOT ISSUED PUBLICLY This second category of long-term debts is The long-term debt has been divided into subdivided into two groups: four groups, which are treated separately. (a) Mortgages on real estate, amounting to 715,000,000 reichsmarks ($170,313,000.) 1. GERMAN FOREIGN CURRENCY BONDS ISSUED (b) Long-term advances and open-book ac- ABROAD counts of every kind, amounting to 1,748,000,- This group of obligations is probably capable 000 reichsmarks ($416,373,600). of more exact statistical determination than These figures were compiled from the Reichsany other, and without question the statistical bank inquiry and it is this category which basis for computation of interest and amortisa- showed the greatest difference between previous tion charges is more precise than in the other estimates and the new computation of German types of indebtedness. The German Delega- indebtedness. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

JANUARY, 1932 FEDERAL RESERVE BULLETIN 33 For the purpose of estimating the service of ing industrial depression, perhaps to as low a these obligations an average interest rate of 8 figure as 100,000,000 reichsmarks ($23,820,000). per cent per annum had been taken in the German estimate for the first group. The obliga- B. SHORT-TERM DEBT tions are subject to the terms of the recent The estimates for the service of the shortemergency decree and the rate of interest has term debts are perhaps the most difficult on been accordingly reduced to 6 per cent. The which to pass judgment. service as computed is thus lowered by 14,000,- The calculations of interest—709,000,000 to 000 reichsmarks ($3,334,800) and fixed at 825,000,000 reichsmarks ($168,883,800 to $196,- 43,000,000 reichsmarks ($10,242,600). 515,000)—presented to the Advisory Commit- For the second group a rate of 6}^ per cent tee were based upon the figures for German inwas assumed. This rate was not directly af- debtedness for the end of July. These figures fected by the emergency decree and it is too seem capable of reduction. Since July repayearly to know what the ultimate effect may be. ments have taken place (a sum of 1,200,000,000 The subcommittee has no means of checking reichsmarks ($285,840,000) has been given by these assumed rates of interest. They seem the German Delegation), and, moreover, there reasonable in view of the prevailing level of has been a depreciation in certain currencies in interest rates in Germany during the past few which a portion of the debt is expressed. Final years. The figure of 113,000,000 reichsmarks figures of the amounts repaid during the period ($26,916,600) given in the German estimates in question are not yet available, and the rates has accordingly been adopted by the subcom- of interest which will be chargeable in the fumittee. ture are, to a large extent, dependent upon the decisions of the present Standstill Committee. 3. GERMAN INTERNAL BONDS OWNED BY FOR- With the material at our disposal and leaving EIGNERS out of account the possible variations in the The magnitude of this amount—400,000,000 future rates of interest, the subcommittee conreichsmarks ($95,280,000)—was derived by a sider that a reduction in the total interest of process of approximation, based upon a pre- about 100,000,000 reichsmarks ($23,820,000) viously known figure and a logical inference to 600,000,000 reichsmarks ($142,920,000)— regarding the influence of subsequent events. 725,000,000 reichsmarks ($172,695,000) seems There is no way of determining the accuracy reasonable. of the guess. In any case the amount is small Summarising, therefore, the results of the and the interest burden negligible. As a result subcommittee's deliberations on this subject, of the recent decree the German estimate of and taking into full account all reservations preinterest burden may be reduced by 12,000,000 viously made, the gross service of German forreichsmarks ($2,858,400) and fixed at 24,000,- eign debt for the year 1932 could be tentatively 000 reichsmarks ($5,716,800). estimated as follows: 4. SHARES, PARTICIPATIONS, REAL ESTATE, ETC. [In millions] No adequate statistics are available regard- Reichsmarks Dollars ing foreign holdings of these types of assets. It has been estimated by the Reich Statistical A. Long-term debt: Office that real estate owned by foreigners may (1) Foreign currency bonds— (a) Amortisation *_ 250—290 60—69 be valued at approximately 2,000,000,000 (6) Interest _ 420—530 100—126 reichsmarks ($476,400,000). Shares, participa- 670—820 160—195 tions, etc., in German enterprise owned by (2) Long-term debts not issued publicly 156 37 foreigners have been estimated, on the basis of (3) German internal bonds 24 6 (4) Shares, participations, real estate, a partial inquiry, at between 2,500,000,000 &c 150 36 reichsmarks ($595,500,000) and 3,500,000,000 B. Short-term debt 600—700 143—167 reichsmarks ($833,700,000). Total 1,600—1,850 381-441 The yield on real estate has been computed by the Reich Statistical Office at 50,000,000 »Including an amount of 110,000,000 reichsmarks ($26,202,000) for pay ment in full of two loans maturing in 1932. reichsmarks ($11,910,000) per annum. The yield on shares, etc., previously esti- This report concerns only German payments mated by the Statistical Office for 1930 of and does not consider German receipts from 250,000,000 reichsmarks ($59,550,000) should interest, etc., on their investments abroad, be considerably reduced in view of the prevail- which will be the subject of a later report. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

34 FEDERAL RESERVE BULLETIN JANUARY, 1932 ANNEX III was in fact greater, this alone would provide an explanation for a portion of the present Report of the Subcommittee Regarding German Assets difference. Abroad (2) Assuming that the statistics of the balance of payments for 1924 to 1930 contain only errors insignificant in amount, but tending Whereas the first report of the subcommittee in the same direction, a further portion of the related to interest and amortisation payments difference could also be explained in this way. on the German debt, the present report deals Obviously, minor errors continuing over a period with the foreign investments of Germany and of years would amount in the aggregate to a the income which Germany derives from them. substantial total. For these purposes no direct statistics exist, Such statistics are always subject to error; and, owing to the absolute impossibility of for instance, the coefficients of adjustment determining exactly - the volume of German applied by the Statistische Keichsamt to Gerassets abroad, the subcommittee feels itself man foreign trade figures for the years 1924obliged to formulate the necessary reservations 1927 may not have been quite correct. in regard to the accuracy of the estimates (3) Further, the subsequent emigration of contained in the present report. Germans, who had already invested their The subcommittee, nevertheless, attempted, capital abroad during the years under considerin the first instance, to form a direct estimate ation, may create a difference between capital of the volume of these assets but encountered exports as deduced from the balance of payinsurmountable obstacles in the almost com- ments and the present total of foreign property. plete absence of data on which to work. It In so far as the difference of 6,000,000,000 was compelled to recognise that certain ele- reichsmarks ($1,429,200,000) can not be exments are entirely beyond the bounds of its plained by the above-mentioned items, the investigations, and that, generally speaking, conclusion seems, of course, that Germany's the figures on which its discussions were based foreign property must be greater than was allow of a wide margin of error. assumed in August, 1931. The subcommittee was not, however, in a position to estimate the II total amount which should be included under this head. The subcommittee, therefore, endeavoured IV to reach some result by taking as a starting point the increase of 6,000,000,000 reichsmarks The subcommittee has, nevertheless, at- ($1,429,200,000) in the volume of Germany's tempted to obtain at least an idea of the international indebtedness over the estimates magnitude of some part of Germany's foreign furnished in August, 1931, and have tried to property. determine to what extent a similar figure must (1) So far as Germany's long-term investappear in the volume of Germany's foreign ments are concerned, a total for this item of assets. 5,000,000,000 reichsmarks ($1,191,000,000) has Ill been tentatively suggested. This total, the result of calculations and inquiries by German The new figure of the German debt need not institutions, may be incomplete. No means necessarily imply a corresponding increase in exist, indeed, for assessing the full amount of German assets abroad. foreign bonds in the hands of German nationals. There are, indeed, certain conjectures that Such bonds and shares as are included in the offer a theoretical explanation of the present German total have been taken at their nominal difference between the balance of indebtedness value. For real estate, participations and so and the result of the various balances of pay- forth, the value of 1929 has been taken owing ments of the previous years. But it is evi- to the lack of later information. dently impossible to state in figures, even (2) The short-term claims of Germany are approximately, the practical consequences of even more difficult to assess. The lengthy these conjectures. terms which Germany has extended in respect (1) Previous estimates of Germany's net of her exports has resulted in the building up claim on foreign countries have been computed of considerable claims abroad. On the basis from a base figure of 2,900,000,000 reichsmarks of an average monthly exportation of 800,000,- ($690,780,000) as at the end of 1923. Assum- 000 reichsmarks ($190,560,000) and average # ing that in that year Germany's foreign debt credit terms of three months, these credits Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

JANUARY, 1932 FEDERAL RESERVE BULLETIN 35 might be estimated to amount to about mittee has accordingly included an item of 2,400,000,000 reichsmarks ($571,680,000). about 50,000,000 reichsmarks ($11,910,000). The subcommittee would, nevertheless, point (3) For the foreign claims of the Reichsbank out that, in view of the fact that the German and private banks 30,000,000 reichsmarks exporters have been led lately to increase the ($7,146,000) have been taken as a reasonable length of their credits, an average of three figure for interest. months might possibly be too low. For in- These items together give interest receipts stance, the Russian credits with State guarantee totaling 230,000,000-280,000,000 reichsmarks extend up to 12 to 18 months on the average. ($54,786,000-$66,696,000). (3) At the end of July foreign claims by the For the calculation of interest on other Ger- Reichsbank and German banks were computed man capital, so far as this is not included under at 1,300,000,000 reichsmarks ($309,660,000). the above headings, the subcommittee, as By November this total had fallen to 1,000,- already explained, has no computation of the 000,000 reichsmarks ($238,200,000). A deduc- capital involved on which to base its estimates. tion has, however, to be made from these totals Nor is information available as to the rate of because part of the foreign claims of German interest on this capital or to what extent that banks is already included in the estimate for interest finds its way to Germany. commodity credits. It has been stated that The conclusion was finally reached that this deduction should amount to 300,000,000 for 1932 German interest receipts on foreign reichsmarks ($71,460,000), thus reducing the investments might be put in round figures at figures to 1,000,000,000 reichsmarks ($238,- between 300,000,000 and 400,000,000 reichs- 200,000) and 700,000,000 reichsmarks ($166,- marks ($71,460,000 and $95,280,000). 740,000), respectively. Obviously, the subcommittee is not expected For the above three items, therefore, aggre- to express an opinion as to future economic gate nominal amounts of 8,400,000,000 reichs- conditions or to say what the rates of interest marks ($2,000,880,000) (July) and 8,100,- are likely to be in 1932. Conclusions which 000,000 reichsmarks ($1,929,420,000) (Novem- have been drawn take account of present condiber) are obtained; but the subcommittee is tions only, and should be accepted with reserve convinced that, due to the important capital in view of the prevailing economic instability. emigration which has taken place recently, these totals must be considerably increased. ANNEX IV In the absence of evidence of any kind, it is Report of the Subcommittee on the German Budget unable to give an estimate. It is, accordingly, not possible to provide an The subcommittee was appointed to consider, estimate for the total property owned by with the assistance of the German experts, the Germany abroad. situation of the German budget. The subcommittee, while devoting its attention pri- V marily to the present state of the budget, has The subcommittee was also asked to inquire not failed to consider the broad lines of the into the amount of interest which Germany development of the budget in the past, in order might expect to receive during the year 1932. to be in a position to understand the causes Clearly, this second problem is closely con- which have led to the present serious financial nected with the first and the subcommittee has difficulties of the German Reich. found it impossible to provide a satisfactory In particular, the subcommittee has consolution. sidered the development of the total expendi- (1) If an amount of 5,000,000,000 Reichs- ture, not only of the Reich, but also of the marks ($1,191,000,000) is taken for long-term Federal States and Municipalities, and has paid assets at an average rate of 3-4 per cent, the special attention to the expenditure of these yield from such investments would amount to bodies on housing, education, and social from 150,000,000 to 200,000,000 reichsmarks welfare. ($35,730,000 to $47,640,000). TOTAL EXPENDITURE OF PUBLIC AUTHORITIES (2) For commodity credits no specific income IN GERMANY from interest can be estimated; interest on capital of this kind being generally included in In dealing with the development of the total the price of the commodities and so in the expenditure of German public authorities, balance of trade. Russian credits, however, the subcommittee was unable to take its are an exception to this rule, and the subcom- inquiries up to the year 1931, since exact Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

36 FEDERAL RESERVE BULLETIN JANUARY, 1932 figures are not yet available for the expenditure [In millions] of the Communes in 1931. The subcommittee Reichsnoted that the total gross expenditure of marks Dollars German public bodies increased between the financial years 1926 and 1930 from approx- Increased expenditure on salaries since 1927 1,500 357 imately 17,200,00p,000 reichsmarks ($4,097,- Increased expenditure on uneinplo3onent___ 1,000 238 Increased expenditure on external war burdens 500 119 040,000) to approximately 20,963,000,000 reichs- Miscellaneous _ „ 700 167 marks ($4,993,386,600), an increase of 3,763,- 000,000 reichsmarks ($896,346,600). This in- The subcommittee wishes to draw attention crease was not spread equally over the inter- to the fact that of this increase of expenditure vening years, but was particularly sharp in of 3,700,000,000 reichsmarks, an amount of the year 1928. This was due to the increase of 1,600,000,000 reichsmarks ($381,120,000) is for salaries granted to public servants by the law account of the Reich and 2,100,000,000 reichsregarding salaries of 1927, which the German marks ($500,220,000) for account of the States experts estimated led to a total annual increase and Communes. of 1,500,000,000 reichsmarks ($357,300,000). In connection with the revenue side of the It was pointed out that, since 1925, there had Budget, the subcommittee observes that, during been a steady increase in the level of wages in the years 1926-1929, years of industrial and Germany from the low point at which they commercial prosperity, the fiscal revenues destood after the inflation. No corresponding veloped from 11,675,000,000 to 14,298,000,000 increase of salaries had taken place, and, there- reichsmarks ($2,780,985,000 to $3,405,783,600), fore, in 1927 the German Government felt showing a total increase of about 2,600,000,000 itself obliged to adjust salaries to wages, with reichsmarks ($619,320,000). the result that, generally speaking, the lower This development during the period of expanclasses of officials had their real income re- sion was followed by a drop since 1929-30, stored to approximately the 1913 level, while which would have been almost as rapid except the higher classes (with certain exceptions) for the fact that tax increases almost equalling remained well below that level. Now, however, previous reductions were on several occasions as a result of recent emergency decrees, the introduced. increase of salaries made in 1927 has been more than canceled, and salaries will now be THE RELATION BETWEEN REICH AND LOCAL pn a lower level than they were before the AUTHORITIES increase. The subcommittee, nevertheless, felt that The remaining principal causes of the in- some part at least of the increase in the total crease of 3,700,000,000 reichsmarks ($881,- expenditure of public authorities in Germany 340,000) are to be found under the heads of had arisen from the fact that the financial rela- "Education/' "Social Welfare," "External tions between the Reich, the Federal States War Burdens/' and "Trade and Commerce." and the Communes permitted the latter in par- The increase in expenditure on "Education" is ticular to embark upon additional activities principally—though not entirely—due to the which were paid for out of the share of taxes higher level of salaries; that in "Social Wel- levied by the Reich but transferred on a perfare" to expenditure of unemployment relief, centage basis to the States and Communes. while the increase in expenditure of "Trade As the yield of these taxes rose in times of and Commerce" represents the assistance prosperity, money flowed into the coffers of which the German Government has found itself the Communes, and part of their present diffiforced to give to agriculture, communications, culty is due to the fact that their receipts from and industry. These items must necessarily be these sources have now fallen off, while their enhanced by the development of the crisis, and expenditure can not be easily or quickly reduced will show a further increase in the current year. to correspond. The amount of taxes trans- No explanation is needed of the increase in ferred by the Reich in this way to other public external war burdens. authorities rose from 2,620,000,000 reichs- Thus, the following items account, roughly, marks ($624,084,000) in 1926 to a maximum of for the total increase of 3,700,000,000 reichs- 3,412,000,000 reichsmarks ($812,738,400) in marks : 1928, and subsequently declined to 3,050,- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

JANUARY, 1932 FEDEBAL RESERVE BULLETIN 37 000,000 reichsmarks ($726,510,000) in 1930 of its value while investments expressed in and to 2,321,000,000 reichsmarks ($552,862,- money had been largely rendered worthless. 200) in 1931. This has forced the Communes This tax was devoted partly to the general to radical measures of economy, but even these financial needs of the Federal States and the have not proved wholly sufficient, and some Communes, and partly to filling up the existing recourse to the funds of the Central Govern- housing shortage. Since different arrangement has been necessary during 1931. An ments were made in the various States for carimprovement has, however, been effected by rying out this scheme, no brief statement can the recent emergency decrees of the German be made of the allocation of the tax on house Government, under which the municipalities rents, but, roughly speaking, 50 per cent was have the power, and, in certain circumstances, devoted to housing purposes. the obligation, to levy additional taxes for The authorities responsible were in most themselves. These include a poll tax, a local cases the Communes, who have frequently beer tax, and a tax on beverages, the unpopu- acted through public utility companies, of larity of which acts as a powerful further which they themselves may be the owners. stimulant upon the municipal authorities to Generally, mortgages are only granted out of effect economies in their budgets. funds arising from the house-rents tax when cover for the total sum required to carry out the EDUCATION building is assured. That is to say, the funds provided by the owner of the building himself As regards expenditure on education, which and supplemented by a mortgage from a buildrose from 2,167,000,000 reichsmarks ($516,179,ing society are completed by a mortgage 400) (net) in 1926-27 to 2,733,000,000 reichsgranted from the proceeds of the house-rents marks ($651,000,600) (net) in 1930-31, the tax. Strict provisions are laid down as to the subcommittee took note of the fact that the type of house which may be built with such increase was principally due to the increase in funds, and as to the retention of a charge on the the level of salaries of school teachers, etc. It site until the mortgage is paid off. was, nevertheless, pointed out that expenditure per head on education was considerably above The document circulated by the German the level of certain countries in Western Europe, Delegation on "German housing during the post-war period" gives in considerable detail although practically equivalent to that in other the extent of building activity, the method of countries. financing and the amount of public funds in- The subcommittee was, however, informed volved in such financing. The subcommittee that expenditure on education in Germany will noted that the greater part of the money spent show a considerable decrease in the current on housing has been raised by taxation. A year as a result of the lowering of salaries and certain amount of the money spent on housing other measures taken by the German authorihas, however, been raised by loans, and the ties. document referred to showed that this amounts HOUSING to approximately 25 per cent of the amount As regards expenditure on housing, which spent by public authorities in the year 1928. rose from 861,000,000 reichsmarks ($205,090,- This proportion is stated to have been generally 200) (net) in 1926-27 to 918,000,000 reichs- applicable, so that it appears that the outmarks ($218,667,600) (net) in 1930-31, the standing liability of public bodies in respect of subcommittee received an explanation of the housing may, for the years 1926-27 to 1930-31, system by which funds for housing are provided be in the neighbourhood of 2.000,000,000 in Germany from public moneys. The princi- reichsmarks ($476,400,000). Out of the total pal source is the tax on house rents, which was of 306,000 houses erected in the calendar year created in 1924 after the inflation, during which 1930, 240,000 have been erected with some sort of assistance from public funds. house property had retained the greater part 92948—32 6 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

38 FEDERAL RESERVE BULLETIN JANUARY, 1932 DEVELOPMENT OF PUBLIC DEBT In this connection, the German member of the subcommittee supplied the following table I showing the development in the last three years On Mar. 31, 1931, the debt total was accordingly. J 24.1 5.7 of the total debt of all public authorities in Including the following items: Old debts and debts incurred or authorised the Reich: prior to Apr. 1,1924 _ I 6.0 1.4 Thus leaving a new debt of approximately * 18.0 4.3 [In millions] Including the following items: j Dawes and Young loans, claims in the j Debt Register in virtue of the final war Federal States, in- damage law and the decree on damage I Reieh cluding Hansa incurred in Poland, etc 3.4 .8 towns Supply of water, gas, and electricity and | Total at— transport undertakings | 2.8 .7 Construction of dwelling houses j 2.5 R m e a ic rk h s s- Dollars R m e a ic r h ks s- Dollars P C r o o n d s u tr c u ti c v t e io n u o n f e r m oa p d lo s y a m nd e n w t at r e e r l w ie a f, y s con- I > 2. 5 struction of hospitals, sanatoria, etc j 1.6 .4 I 31.3.1928 7,130. 7 1,698.5 1,693.2 403.3 31.3 1921* 8, 228. 5 1,960.0 2, 201. 4 524.4 31.3.1930 9,623. 6 2,293.8 2,590. 2 617.0 THE BUDGETS FOR 1931 AND 1932 31.3.1931 _ 11,342. 2 2,701. 7 2,802.5 667.6 Apart from discussing the points mentioned above, the subcommittee saw little advantage Communes and Total public adassociations of ministration in inquiring at any length into the details of communes the German budget prior to the year 1930. Total at— Not only are these details fully analysed in the R m e a ic rk h s s- Dollars R m e a ic rk h s s- Dollars reports of the Agent General for Reparation Payments which are familiar to the world, but 31.3.1928 . . 5, 774. 7 1,37o. 5 14, o&8. 6 3,477. 4 also the estimates appearing in the German 31.3.1929 • 7,729.3 1,841.1 18,159.2 4,325.5 budget are now framed, owing to the crisis and 31. 3.1930 9,098. 7 2,167.3 21,318.5 5,078.1 31.3.1S31 9,934. 2 2,366. 3 24,078. 9 5,735. 6 owing to the measures taken by the German Government, under quite different conditions. The increase in the public debt has been less The figures supplied by the German Delegation marked in each year since 1928. (Net increase show that the effect of the economic crisis in the three years: 3,600,000,000 reichsmarks quickly showed itself in the revenue receipts of ($857,520,000), 3,200,000,000 reichsmarks the German budget, and that falling off in ($762,240,000), and 2,800,000,000 reichsmarks revenue became progressively more pronounced ($666,960,000).) The credit requirements ac- until, at the present time, it has assumed catascumulated after the currency stabilisation were trophic proportions. This is well indicated by gradually satisfied and certain tasks with high the fact that the yield from the assessed income capital requirements devolving upon the pub- tax, which in 1929 amounted to 1,440,000,000 lic authorities (e. g., construction of dwelling reichsmarks ($343,008,000), will fall in the houses) were to some extent accomplished. current year to below 1,000,000,000 reichsmarks On the other hand, the ever-growing tension ($238,200,000), while for 1932 it can only be on the credit market since the end of 1929 pre- estimated at 700,000,000 reichsmarks ($166,vented an expansion of the debt. 740,000). This means a decline of over 50 per Of the total increase of 9,480,000,000 reichs- cent since 1929. Similarly the, Corporation Tax, marks ($2,258,136,000) in the years 1928 to which yielded 560,000,000 reichsmarks ($133,- 1931, more than 2,000,000,000 reichsmarks 392,000) in 1929, is estimated to produce only ($476,400,000) were in respect of claims in the 300,000,000 reichsmarks ($71,460,000) in 1931, debt register for war damages and Polish and only 120,000,000 reichsmarks ($28,584,000) indemnities and of Reparation loans of the in 1932, representing a decline of nearly 80 per Reich (two-thirds of Young Loan), which cent. Although the German Government has entailed a burden for interest and amortisa- resorted to a series of emergency measures tion but brought no new capital which could be to increase taxation, they have been entirely employed. unable to produce sufficient revenue to meet The subcommittee notes that out of the total normal expenditure, which has, therefore, had increase of debts in the amount of 9,480,000,000 to undergo sweeping reductions. So far as the reichsmarks '($2,258,136,000), 4,160,000,000 Reich is concerned, expenditure on all objects reichsmarks ($990,912,000) were contracted by other than service of the debt, transfers to the municipalities from the end of 1928 down the Federal States, external war burdens and to the end of March, 1931. emergency relief has been reduced from 1929 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

39 JANUARY, 1932 FEDERAL RESERVE BULLETIN to 1931 from 4,780,000,000 reichsmarks to The subcommittee then turned to an exam- 4,150,000,000 reichsmarks ($1,138,596,000 to ination of the estimates of revenue for the $988,530,000), i. e., a reduction of 13 per fiscal year 1932. cent. Measures similar in character have Under full reserve of the difficulty of giving been taken by the Federal States and by the exact estimates in present conditions, the Ger- Communes. The latter have been empowered man member of the subcommittee presented to make reductions, and in any cases where certain figures which proved that, against an this power has not been taken advantage of, increase of certain taxes (mainly the increased the competent higher authority steps in to see turnover tax), others showed a decrease in that the necessary measures are taken. Part yield which was about equal to the estimated of the economies effected have, however, been increases. offset by the increased cost of unemployment The subcommittee felt unable, with the relief due to the growth of unemployment in knowledge at their disposal, to criticise the the last two years. It has been possible to estimates prepared by the German taxation effect considerable economies in this sphere by experts. Nevertheless, they formed the opinion reducing the average monthly benefit paid to that the figures before them could not be conthe unemployed, which, from a former average sidered as showing the situation in an unduly of 80.93 reichsmarks ($19.28) has fallen to 63.86 pessimistic light. As far as some sources of revreichsmarks ($15.21) in 1931. Expenditure enue are concerned, there seems to be even seriunder the emergency relief system, which ous reason to fear that the estimated figure will averaged 71 reichsmarks ($16.91) a month, has not be reached. dropped to 60.75 reichsmarks ($14.47), while Turning to the estimates of expenditure, the welfare relief payable by the Communes— German member of the subcommittee explained varying according to the locality—may be that internal war charges would be reduced in estimated probably in the neighbourhood of 1932 because the recipients of war pensions 50 reichsmarks ($11.91). were fewer in numbers and because, under In the opinion of the subcommittee the recent decrees, the rates of payments had been above figures show very clearly the ruthless reduced. Expenditure on personnel was reeconomy which the falling off in revenue has duced as an effect of the new emergency decree. compelled the German Government to exercise Miscellaneous expenditure maintained the rein all classes of its expenditure. duction effected for the present year under The subcommittee thereafter turned to an recent emergency decrees, and it was doubtful examination of the sketch budgets for the whether this hope would be realized even years 1931 and 1932 which had been circulated though the fall in prices would give some asby the German Delegation and explained by sistance. Count Schwerin von Krosigk to the main As regards social charges, the German committee. The subcommittee analysed the member of the subcommittee referred to the figures contained in these sketch budgets in explanations he had already given to the main some detail. committee as to the danger of reducing the Taking, first, the sketch budget for 1932 amounts paid for unemployment and poor as it has been framed by the German Delega- relief, and showed that it was incumbent upon tion, and which, at the request of the experts, the Reich to provide those municipalities does not contain any item of expenditure which were particularly hard hit by the preswhich is or might be the consequence of pay- ent crisis with some assistance toward meetment of reparations, the subcommittee noted ing their obligations in this respect. He that the principal measure introduced by the doubted whether the figure shown in the sketch emergency decree of December 8th on the budget for 1932 would, in fact, be sufficient in revenue side was an increase in the turnover view of the continuance of the crisis. tax from 0.85 per cent to 2 per cent, i. e., an The subcommittee devoted special attention increase of over 130 percent. The yield of the to the item for the public debt. As had been tax had, however, been increased only by 100 explained in the main committee, the figure of per cent. The German Finance Ministry had 1,420,000,000 reichsmarks ($338,244,000) for thus allowed for a falling off in the theoreti- 1932 contains approximately 870,000,000 cally increased yield of 14 per cent. Since, reichmarks ($207,234,000), which will go in the however, the recent emergency decree also reduction of debt. Four hundred and twenty contemplates a general reduction in the price million reichsmarks ($100,044,000) of this replevel of 10 per cent, the theoretical reduction resents the legal sinking fund. A further in yield may not be much more than 5K per cent. 350,000,000 reichsmarks ($83,370,000) repre- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

40 FEDEEAL EESERVE BULLETIN JANUARY, 1932 sents the amount necessary to cover the deficit hope of recovery in the budget situation, and remaining from 1930, which had risen solely on that, even if a speedy reversal should take the ordinary budget, and in accordance, not place, it must be some time before the budget only with the Fundamental Budget Law of Ger- will benefit therefrom and return once more to many, but also in accordance with all principles a sound basis. of sound public finance, should be covered without delay. The remaining 100,000,000 reichs- ANNEX V marks ($23,820,000) is in respect of Treasury Report of the Subcomittee on the Reichsbahn bonds maturing in 1932. It was pointed out to the subcommittee that The subcommittee has examined the position the repayment of this amount of debt during a of the German Railway Company, as shown year of severe crisis represented a very heavy by the information furnished by the German burden on the German budget. Should these Delegation. During the years 1925 to 1930 figures be fulfilled, approximately one-half of the operating receipts and payments of the the floating debt would be repaid and one- Reichsbahn were as follows: eleventh of the total debt of the Reich. While this consideration was fully appreciated by the [In millions] German member of the subcommittee, he pointed out that the situation of Germany was 1925 1926 1927 that the budget had exhausted its last resource; should the estimates of taxation prove opti- R m e a ic r h k s ? - Dollars*^- Dollars R m e a ic r h k s s - Dollars mistic or should expenditure have to be incurred in excess of that shown, the German Govern- Receipts__. 4,o69 1,112 I 4,540 1,081 5,039 1,200 ment would have no recourse save to call upon Payments.. 3,974 947 I 3,680 877 4,158 990 the amounts included for the reduction of debt, Excess of receipts i. e., to incur a further deficit. over payments 165 | 860 205 880 210 Working coefficient 85.1 85.1 ! 81.0 81.0 82.5 82.5 Without expressing a definite opinion as to the figure included in the sketch budget for 1928 1929 1930 1932 for redemption of floating debt, which figure, amounting to 870,000,000 reichsmarks Reichs- Reichs- Reichs- ($207,234,000), as compared with the total marks Dollars marks Dollars marks Dollars debt of the Reich, seems very considerable, the subcommittee could not but feel, having regard Receipts... 5,159 1,229 5,353 1,275 4,570 1,089 Payments.. 4,294 1, 023 4,493 1,070 4,090 974 to the alarming increase of the total public Excess of receipts debt of Germany shown in the figures given over payments 864 206 860 205 480 114 above, that it is vital for the German Govern- Working coefficient- 83.2 83.2 83.9 83.9 89.5 89.5 ment to pursue the firmest possible policy of debt reduction in order that the burden of The above comparison shows that, after debt may not become insupportable, and they payments had been met, operating receipts in consider that the German Government would each of the years from 1925 to 1929 left a surnot be justified unless it included in the plus well in excess of the reparation tax of budget a substantial provision for this purpose. 660,000,000 reichsmarks ($157,212,000). The The subcommittee has not felt it its duty to average amount of the surplus was 833,000,000 offer an opinion as to the probability or other- reichsmarks ($198,420,600). During the period wise of the estimates laid before them with all in question receipts rose progressively from reserve on behalf of the German Delegation. 4,669,000,000 reichsmarks ($1,112,155,800) to They consider that the course of the German 5,353,000,000 reichsmarks ($1,275,084,600), budget during the last two years has shown representing an average increase of 171,000,000 how the progressive deterioration in the reichsmarks ($40,732,200), or 3.5 per cent per economic life of Germany has led in due course annum. to a falling off in revenue, which has in time During 1930 the world economic crisis found become catastrophic. The subcommittee has expression in a marked decline in traffic and in no opinion as to the probability or otherwise receipts, which fell 5.5 per cent in the case of of an early reversal of the present downward passenger traffic and 18 per cent in the case of movement in business activity, not only in goods traffic, the total drop being 783,000,000 Germany, but in the whole world. They reichsmarks ($186,510,600), or 14.6 per cent. wish to do no more than point out that, unless Operating payments were energetically curthis movement is reversed, there can be no tailed and were reduced by 403,000,000 reichs- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

JANUARY, 1932 FEDERAL RESERVE BULLETIN 41 marks ($95,994,600). The surplus of receipts ($16,674,000) for the year, or 35,000,000 reichsover payments nevertheless fell to 480,000,000 marks ($8,337,000) for the second half of 1931, reichsmarks ($114,336,000), being thus 180,- which sum is paid to the Reich as a contribu- 000,000 reichsmarks ($42,876,000) short of the tion to reparation payments. In 1931 the sum required to cover the reparation tax. company will debit its operating account in In 1931 the economic crisis has become still respect of reparation charges with a total more intense and receipts are expected to fall to of 330,000,000 -f 270,000,000 -f 35,000,000 = 635,- 3,860,000,000 reichsmarks ($919,452,000),^ be- 000,000 reichmarks ($78,606,000+ $64,314,000 ing a further diminution of 710,000,000 reichs- + $8,337,000 = $151,257,000). marks ($169,122,000), or 15.8 per cent. By On the other hand, the company benefits by comparison with 1929, therefore, the decline in the amount of the B. I. S. loans which strengthen receipts in 1931 will probably aggregate 1,500,- its cash position and will amount to 270,000,000 000,000 reichsmarks ($357,300,000), or 28 per reichsmarks ($64,314,000) in 1931 and a correcent. In view of this marked drop in traffic, sponding total for the first half of 1932. Allowthe Reichsbahn has naturally had to reduce ing for the company's contribution of 635,000,expenditure in every possible wTay. Its rep- 000 reichsmarks ($151,257,000) to reparation resentatives have explained that the economies payments in 1931, it would appear that the realized in 1931 are estimated at 18 per cent of surplus of operating receipts over operating the expenditure total. They relate both to the payments in the amount of 178,000,000 reichsprogramme of works and new orders and to the marks ($42,399,600) will leave a deficiency of expenditure on personnel. The staff has been 456,000,000 reichsmarks ($108,619,200). Alreduced by 30,000 in 1931 as compared with lowing further for the preference share divi- 1930. To-day it numbers 6 per cent less than dend, the service of new debts and the writing before the wTar and 42 per cent less than in 1919, off of the concession, the deficiency is brought when the personnel total was, it is true, unduly up to 567,000,000 reichsmarks ($135,059,400). inflated. In order to cover this deficit, it will be necessary In short, operating receipts in 1931 are esti- to draw upon the whole of the legal reserve mated at 3,860,000,000 reichsmarks ($919,- (450,000,000 reichsmarks ($107,190,000)) and 452,000) and payments at 3,682,000,000 reichs- upon the dividend reserve (76,000,000 reichsmarks ($877,052,400), leaving a surplus of marks ($18,103,200)), after which an uncovreceipts over payments in the amount of ered balance of 42,000,000 reichsmarks ($10,- 178,000,000 reichsmarks ($42,399,600). 004,400) will still remain. The reparation payments of the company For 1932 the company expects a further drop have been influenced as follows by the putting of 310,000,000 reichsmarks ($73,842,000) in reinto force of the Hoover Plan on July 1 last. ceipts, which are estimated at only 3,550,000,- The company paid the annual tax during 000 reichsmarks ($845,610,000). As the Govthe first half of the year, making 330,000,000 ernment of the Reich is at present endeavouring reichsmarks ($78,606,000). Since then, the to obtain a general lowering of prices, in con- Hoover Plan, while considerably easing the formity with the Emergency Decree of Decemcash position of the Reichsbahn, has not re- ber 8th last, the company desired to supiport leased it from its reparation charges. In appli- the initiative thus taken by deciding to reduce cation of the Plan, the Reich pays 51,000,000 goods tariffs by some 300,000,000 reichsmarks reichsmarks ($12,148,200) to the Bank for ($71,460,000) per annum, or 13 per cent. The International Settlements on the 15th of each reductions apply in part as from December 16, month. On the same date the bank pays a 1931. It must be observed that the measure in sum of approximately 45,000,000 reichsmarks question is a very daring venture, the object of ($10,719,000) to the Reichsbahn. In exchange, which is to help bring about a general economic the Reischbahn has to hand over certificates revival. A reduction of transport tariffs in this of indebtedness by which it undertakes to re- way is quite exceptional under present circumpay the loan in ten equal annuities, as from stances, when the railways of many countries July 1, 1933. The company does not retain are demanding the increases in rates which are tlie counter-value of the 45,000,000 reichs- required in order to balance their budgets. marks, but refunds them immediately, without On the other hand, the Reichsbahn anticicounterpart, to the Reich. pates that cuts in wages and in the price of For the recording of these transactions, the materials wTill entail a reduction in its expendicompany charges to its operating account the ture, which is put at 200,000,000 reichsmarks monthly instalment of 45,000,000 reichsmarks ($47,640,000) for the personnel alone. In the plus a payment of 70,000,000 reichsmarks aggregate, the company estimates its operating Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

42 FEDERAL RESERVE BULLETIN JANUARY, 1932 expenditure for 1932 at 3,298,000,000 reichs- marised above, the subcommittee has reached marks ($785,583,600). The surplus of receipts the following conclusions: over payments would then be 252,000,000 The results obtained by the Reichsbahn may reichsmarks ($60,026,400). Allowing during be classified under three heads, according to the first half year only for the reparation con- the periods to which they relate: the years tribution amounting, as explained above, to 1925 to 1929, the years 1930 and 1931, and the 305,000,000 reichsmarks ($72,651,000), there year 1932. The figures for 1925 to 1929 remains a deficiency of 53,000,000 reichsmarks show that during this period the annual ($12,624,600) without provision for any repara- average excess of operating receipts over tion payment in the second half of 1932. It payments amounted to 833,000,000 reichsmarks must also be noted that the 270,000,000 reichs- ($198,420,600), thus enabling the Reichsbahn marks ($64,314,000) are returned to the com- to meet the contribution of 660,000,000 reichspany by the B.I.S. in the form of a loan re- marks ($157,212,000) for which it is liable. payable in ten years. It might be argued that, from the stand- In order to reply to a question asked in com- point of the Reichsbahn, these years were not mittee, we give below a comparison of the entirely normal, since writings off and replaceworking coefficients obtained during the last ments were not carried beyond a certain limit, few years and in 1913 by the Reichsbahn and precisely with a view to enabling the Reichssome other railway administrations. These bahn to make its contribution. But it should coefficients represent, of course, the percentage be noted in this connection that earnings were f receipts which is devoted to operating pay- well in excess of the contribution, and further ments, the surplus being available as cover for that the working coefficient, thanks to which capital charges. the earnings were obtained, varied during the years in question between 81 and 85 per cent, WORKING COEFFICIENTS a figure comparable with that of the principal railway systems during the same period. 1913 1929 1930 In 1930, under the influence of the world economic crisis, receipts dropped by 14.6 per Germany _ 72.1 83.9 89.5 cent. The operating surplus fell to 480,000,000 Belgium 72.0 86.5 90.9 Italy 96.0 87.2 88.7 reichsmarks ($114,336,000). To meet its F G r r a e n a c t e Britain _ _ - 6 6 5 3 . . 0 5 7 7 8 8 . . 7 4 8 8 8 0 . . 3 8 reparation and other annual charges the company was obliged to draw upon the balance brought forward from the previous account. This table shows that the working coefficients In that year the working coefficient rose to of the Reichsbahn and of the other railways 89.5 per cent, and a similar increase is to be have varied from year to year under very noted in the coefficients of other countries. comparable conditions. In 1931 the economic crisis became still more acute. The decline of receipts in two years CAPITAL CHARGES amounts to 1,500,000,000 reichsmarks ($357,- According to the position as worked out for 300,000), or 28 per cent. To meet its charges the end of 1931, the total financial commit- the company is compelled to have recourse to ments, capital and loans, of the German Rail- its reserves. It must be pointed out that these way Company amount to 2,500,000,000 reichs- charges include the reparation payments, marks ($595,500,000) in round figures. Among which, in conformity with the Hoover Plan the principal items in this total are the prefer- and the London Protocol, are in fact returned ence shares issued for the present to an amount to the company in the form of loans repayable of 1,081,000,000 reichsmarks ($257,494,200) in ten years as from 1933. and the Young Loan at present totalling It appears that in 1932—after allowing for 288,500,000 reichsmarks ($68,720,700); there the decline of receipts and payments which is is further included the whole of the loan of likely to arise from the general crisis and the 540,000,000 reichsmarks ($128,628,000) granted measures recently enacted in Germany for the to the company by the B. I. S., to which refer- lowering of tariffs and expenditure—it will not ence has already been made. be possible to balance the company's budget. What will the position of the Reichsbahn be in 1932 and in subsequent years? The ques- CONCLUSIONS tion was not submitted to the committee, After examining the figures furnished by the w^hich would in any case have been unable to German Delegation, which have been sum- find the answer. Obviously, the financial Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

JANUARY, 1932 FEDERAL RESERVE BULLETIN 43 results will depend upon the development of parisons made by the experts, would appear to the economic crisis, its duration and intensity, us to suggest that, once Germany and the world and also upon the measures which the company at large have recovered their balance and reelects to adopt in respect of tariffs and expendi- turned to something like the economic conditure. In Germany, as in other countries, tions which we are accustomed to regard as experience has shown how sensitive the budgets normal, the Reichsbahn (fundamentally a of the railways are to changes in the gen- sound undertaking) will be able in future years eral economic situation, the marked recovery if managed on a commercial basis to yield a net in Germany in 1925 being a characteristic operating surplus comparable with that earned example. by other big foreign railway systems. Nevertheless, the figures cited above, together with the facts ascertained and the com- CONFERENCE OF SOUTH AMERICAN CENTRAL BANKS A conference of delegates 1 of the central B. TO CONSIDER THE SITUATION WHEREIN ADbanks of Bolivia, Chile, Colombia, Ecuador, VERSE CIRCUMSTANCES NECESSITATE THE SUSand Peru convened on December 2, 1931, at PENSION OF THE CONVERSION PRIVILEGE AND Lima, Peru, to consider the common problems TO SUGGEST HOW GREATER ILLS MAY BE of those institutions during the present period AVOIDED of economic depression. The Federal reserve Without prejudice to other steps conducive Bank of New York received and accepted an into reestablishing confidence and equilibrium, vitation to be represented at this conference and the committee recommends the following measnamed as its representatives Prof. E. W. Kemures, which are advisable not only for the case merer, of Princeton University, Allan Sproul, in question, but also for avoiding inconvertiassistant deputy governor of the Federal Reserve bility, the dangers of which are too well known Bank of New York, and Eric F. Lamb, of its forto be enumerated here. eign department. While these representatives took part in the discussions of the conference, 1. As the amount of the circulating medium they did not participate as voting members in its is a fundamental factor in the value of money, organization or in the adoption of resolutions it is of paramount importance— drafted by it. The conference adjourned on (a) That budgetary equilibrium be assured so that December 12. the Government may not find itself obliged to have recourse to the central bank, seeking credits which An official statement of the questions conbring about inflation of the note circulation. sidered by the conference and of the action (b) That the regulation of the circulating medium which it took with respect to these questions be left exclusively in the hands of the central bank, by follows: means of the discount and rediscount of paper which arises from agricultural, industrial, and commercial transactions in accordance with the terms specifically CONFERENCE OF SOUTH AMERICAN CENTRAL provided for in the organic laws of the central banks. BANKS, LIMA, PERU, DECEMBER 2 TO 12, It is also recommended that the central banks make 1931 use of open-market operations, when possible, as a I means of aiding in the regulation of the amount of money in circulation. A. TO CONSIDER THE CASE OF BOLIVIA, WHICH 2. As a lack of equilibrium in the interna- HAS LINKED ITS CURRENCY "DE FACTO" TO tional balance of payments, with the incidence THE POUND STERLING against a particular country over a long period, Since it is not advisable that the monetary inevitably causes heavy exports of gold, the unit of an American republic be linked absoconference recommends that a policy of defense lutely to that of another country, regardless of of the national economy be adopted to correct how great its economic and political importance such a situation. may be, and even though a situation such as that described, where exchange was linked to C. TO CONSIDER THE RESULTS OF THE CONTROL the pound sterling in order to prevent the dam- OF FOREIGN EXCHANGE IN THE VARIOUS aging or wiping out of the export trade, is com- COUNTRIES prehensible, the conference deems that such a Resolution approved by the delegations from state of affairs should hold only temporarily, it Colombia, Bolivia, and Chile*—The results of being essential to establish monetary stability through a return to the gold standard. exchange control which have been brought to the attention of the committee are not ample 1 A full list of the delegates to the conference is given on page 49. enough to permit the conference to draw a defi- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

44 FEDERAL RESERVE BULLETIN JANUARY, 1932 nite conclusion, there being both favorable and to the disadvantage of those who obey the law, unfavorable aspects to be found. In any case, and the arbitrary nature of any attempt aimed the most prudent course is deemed to be, not at rationing the supply of foreign exchange to employ exchange control except under grave when it is insufficient, are facts which tend to circumstances and as a temporary expedient, weaken the position of the most carefully according to the particular conditions in each erected exchange control organization. In country. formulating these views, the conference wishes Resolution approved by the delegations from it clearly established that it is not passing any Ecuador and Peru.—In taking up this matter, judgment whatever on such control measures the conference has tried to keep in mind, above. as may be in force at present in various counall, the fundamental factors determining ex- tries, and which without doubt, owe their change rates. Having these in mind, the con- origin to the temporarily severe character of the ference deems that any measure which does not crisis which it is attempted to correct and to tend to remove these fundamental causes is the influence of special circumstances. merely expressive of a vain effort to control external manifestation of such causes. AMPLIFICATION FORMULATED BY THE COLOM- Considering, therefore, that the definite BIAN DELEGATION FOR SUBJECT NO. 1C breakdown of a currency is the result of prime Regarding exchange control.—In the crisis forces of which the rate of exchange is only an which is disturbing the national economy of all index, the conference does not recommend the countries at the present time, the lack of equilibadoption of measures of artificial control berium in the balance of international payments cause they only affect the external aspect of the stands as one of the principal causes. In phenomenon which it is desired to dominate, Colombia, in order to reestablish equilibrium, without affecting the basic causes, the true emergency measures have been taken which origin of which is the real value of the currency may reduce imports and tend to increase exunit relative to other currencies. ports, thus defending gold reserves, upholding The conference deems, moreover, that such the prestige of the Bank of the Republic, and measures create a psychological atmosphere maintaining monetary stability in so far as adverse to the maintenance of stability, for possible. One of these emergency measures has which reason, the establishment of control been the establishment of exchange control, indicates that the currency is in imminent employed in some countries together with other danger. measures of a similar nature. Control of gold When the fundamental factors which bring exports was used in Colombia with very good about the crisis condition are overlooked, the success in 1920 and now it is being used in a problem can not be solved, because if the lack more extensive way for the purpose, among of positive equilibrium in the balance of payothers, of reducing imports and expenditures of ments is due to the high level of prices and Colombians abroad, and in order to retain gold costs of production in the country whose curwithin the country to the greatest extent posrency is in danger in relation to those of other sible during the period in which equilibrium in countries, exports which are affected by these the balance of payment is being reestablished. conditions and imports which increase as a Up to now results have been satisfactory but a result of them continue to aggravate the condirecommendation in general terms endorsing tion of disequilibrium. In this connection, the the application of exchange control could not conference recommends that the central banks be made without studying the particular conmake free use of the discount rate as an efficaditions in each country, as well as the objects cious means of controlling the money market, in view, which might justify it. thus influencing favorably the true causes affecting the internal value of the currency and II consequently its international value. The study of past experiences with exchange TO CONSIDER HOW THE LEGAL RESERVE AND control strengthens the views of the conference THE GOLD RESERVES OF THE CENTRAL BANKS in this matter. The manifest impossibility of CAN BE CONSTITUTED, AS WELL AS THE MONEY an effective control of all foreign drafts brings MARKETS IN WHICH THEY CAN BE PLACED in its train the development of an outside exchange market, supported by those who try to The legal reserve of the central banks could evade the regulations governing both sales and well include, in addition to the types of reserve purchases of exchange. The privileged situa- now mentioned in their organic laws, accredited tion in which the unscrupulous place themselves bankers' acceptances with not over ninety Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

45 JANUARY, 1932 FEDERAL RESERVE BULLETIN days to run, which are easily negotiable in IV markets of gold standard countries, this class STUDY OF THE REFORMS WHICH MIGHT BE of reserve not to exceed 40 per cent of the total ADVISABLE IN THE ORGANIC LAWS OF THE normal reserve of the bank. CENTRAL BANKS WITH RESPECT TO LOANS As to the financial centers in which the gold AND REDISCOUNTS reserves of the central banks must be placed, The credit function is so intimately linked preference should be given to those centers with the regulation of the circulating medium whose monetary systems are on the gold and, therefore, with monetary stability that it standard and which offer effective assurance must not be exercised without keeping in mind of payment at any time, in gold, of the deposits the disastrous consequences which may result which may be placed there. if the central banks do not keep their policy in line with basic principles. Ill Severe criticism of the policy of the central TO CONSIDER THE POSITION OF CENTRAL BANKS banks is frequently heard, holding the latter WHICH HAD RESERVES DEPOSITED IN LONDON responsible for aggravating the depression in IN POUNDS STERLING, AND THE SAFEGUARDS their respective countries through severe re- WHICH IT IS ADVISABLE TO ADOPT FOR THE striction of credit, and hence the public clamor FUTURE is for amplifying credit in accordance with demands, it being alleged that to augment the Since the maintenance of parity between note circulation would relieve the economic the circulating medium and the gold unit of situation. value is the chief function of a central bank's The conference is of the opinion that the gold reserves in a gold standard country, and policy thus far followed by the central banks since this function is performed principally by has been in conformity with the clear precepts adjusting the supply of the circulating medium of their organic laws and of the careful rules to the variable demands of trade, and through which govern banks of issue wherever they are the interconvertibility of the bank's notes and established. There are no grounds for the deposits with gold within the country or with criticism referred to above. It is necessary, gold exchange in foreign financial centers, a therefere, to state emphatically once more that central bank's legal reserves should at all times the central banks were not created as a substiconsist of gold coin, gold bars, or foreign credits tute for commercial banks and can not be convertible into gold on demand practically at regarded as a source of panaceas for economic gold parities. Demand obligations of central ills which are subject to a slow and painful banks which are payable in gold or its equivaprocess of recovery. Central banks complelent should be supported by assets quickly rement and assist the commercial banks which alizable in gold without appreciable discount. furnish credit to productive and commercial To the end that central banks may maintain enterprises for current needs. Central banks this position, the conference would recommend must not in any way supply capital on a perthat any central bank holding a part of its legal manent basis either to member banks or to the reserves in the form of deposits or other credits public, which may lack it for the conduct of in any country that suspends the gold standard, their business. However, in view of what has should at the earliest possible time after said been observed, the conference feels that the suspension, convert these reserves into gold or legal dispositions which govern the central its equivalent, taking the loss which may ensue banks at the present time should be broadened and reestablishing its reserves completely on a slightly, as follows: gold basis. 1. By extending the maximum period for current For the purpose of giving greater security to operations to 120 days. deposits which the central banks may place 2. By increasing the credit limits fixed for commerabroad to utilize as support for their curren- cial banks and for the public, stipulated in the organic laws of certain countries, by not taking into account in cies, the conference would recommend that such limits obligations secured by agricultural and steps be taken to obtain from the countries livestock products and raw materials, which have as where it is permitted the banks to make these sufficient guaranty the goods themselves and the sigdeposits assurance that they will be returned nature of the debtor. However, the total amount of these operations should be limited in accordance with at any time, without any restriction, and at the capital and surplus of each central bank as stiputhe same gold parity in which they were made. lated by their respective organic laws. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

46 FEDERAL RESERVE BULLETIN JANUARY, 1932 3. By granting to member banks, in especially urgent make use of credits, and keeping in mind also cases, the privilege of rediscounting promissory notes that recent experiences have indicated that and other documents secured by shares, bonds, or mortgage bonds which are easily negotiable, even when even in circumstances considered up to now as quoted below par, but only for an amount over and appropriate, such credits can not always above the normal limits fixedb y law, of not over 20 per achieve the purpose for which they are obcent of the capital and surplus of each member bank, it tained, the conference deems that it would not being understood that the total of this class of investments shall not exceed 20 per cent of the capital and be prudent on the part of the central banks to surplus of the central bank. In all cases it should be attempt to obtain credits unless sought with stipulated that this aid will only be given after an in- the assurance that they are to be employed in spection of the member bank soliciting assistance has liquidable short-term operations and that they been effected, which inspection reveals that the bank in question is solvent, and at the same time reveals the can be repaid in the currency of the lending patent necessity for this form of credit. country. 4. If it should be necessary, in any country, to am- However, it is recognized that there are times plify credit operations, the conference would recomof emergency in which, due to a sudden and mend that the system of bankers' acceptances be established, regulated by terms and conditions similar to temporary reduction in its reserves, a central those of the Federal Reserve System. At the same time, bank may find it necessary and desirable to it is deemed advisable that the central banks look to obtain credits abroad. These credits ordithe creation of a market for bankers' acceptances in narily could be obtained in the usual manner their respective countries. 5. By establishing more favorable interest rates for in the money market, but in some cases it is the discount or rediscount of trade and bankers' ac- believed that the purpose of reestablishing ceptances, for the purpose of encouraging the wider use confidence can be fulfilled better by means of a of these types of instruments in. preference to promiscredit obtained through a foreign central bank. sory notes. The conference is of the opinion, therefore, that 6. In cases where the central banks, by reason of their constitution, have to incorporate in their assets the possibility of entering into negotiations for long-term investments of slow realization, it is advisable obtaining such credits deserves the attention to separate the total of such accounts from their other of the central banks of these and other counassets and place it with any other organization or bank, the purpose and functions "of which are compatible with tries, and of the Bank for International Settlesuch investments. ments, for the purpose of furthering the cause 7. Considering that the investments of a central bank of central bank cooperation and international must be maintained at all times wholly in a state of monetary stability, which institutions of this liquidity and that, therefore, the provision of permaclass should foster. nent capital or long-term credits is entirely opposed to its purposes, the conference would recommend that new (VI omitted by vote of conference.) credits should not be extended to those commercial banks which, during an agreed-upon period of time, have VII continuously made use of the rediscount privilege at the central bank. For this purpose a minimum period should be established for determining whether the use TO CONSIDER THE DESIRABILITY OF MAINTAINof the (central banks') facilities has been continuous or ING AT ALL TIMES BUDGETARY EQUILIBRIUM not. Operations with the public should be handled IN ORDER THAT THE GOVERNMENT MAY NOT similarly by those central banks which are accustomed FIND IT NECESSARY TO SEEK CREDITS THROUGH to effect them. RECOURSE TO THE CENTRAL BANKS, A DE- However, in cases of urgent necessity it is recommended that requests for credit on the part of a member VELOPMENT WHICH USUALLY RESULTS IN bank which has not been out of debt during the previous INFLATION OF THE CIRCULATING MEDIUM calendar year be attended to in any event after the soliciting bank has agreed to submit to an inspection The quantity of the circulating medium by the central bank, for the purpose of establishing being the fundamental factor in the value of a beforehand its solvency and liquidity, the examination currency and keeping in mind that lack of equito show that the member bank's operations are conducted with its own resources and to establish the librium between fiscal receipts and expendiurgent need for assistance. tures produces deficits which could occasion demands for credit of various kinds at the V central bank, resulting in inflation of the circulating medium, the conference considers it TO STUDY THE ADVISABILITY OF CREATING its duty to recommend once more to the SOURCES OF INTERNATIONAL CREDIT FOR authorities of Government the necessity for CENTRAL BANKS maintaining at all times this equilibrium with- Considering that only in special circum- out which it is impossible to follow a sound stances is it appropriate for central banks to financial and monetary policy. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

JANUARY, 1932 FEDERAL RESERVE BULLETIN 47 VIII AND IX tions, without legal hindrances which disturb the development of credit and banking func- TO CONSIDER THE PROBLEM OF EXTERNAL tions. DEBTS FROM THE POINT OF VIEW OF THE 2. Obviously there must always be for the STABILITY OF INTERNATIONAL EXCHANGES common good perfect harmony between the fiscal policy and banking policy. There should Service on external debts is not only an be clearly established within this concept the expense affecting public finance but is also necessity for absolute independence of the cenan obligation which affects international tral banks from any intervention by partisan exchanges. politics and from any influence on the part of The situation brought about by the diminuthe government or of its officials beyond the tion of fiscal receipts as a consequence of the scope of their usual powers. present crisis and, on the other hand, the lack 3. As the functions of control and inspection of equilibrium in the balance of international with which the laws endow the superintendents payments produced by the decline in the value of banks are delicate in the extreme, given the of exports explains in large part the difficulty fact that in these laws lies the confidence of the of meeting the service on the external public public with respect to the solvency of the credit debt, in so far as those countries are concerned institutions, the legality and quality of their which can not pay these services without cominvestments, the amount and type of their promising the stability of their exchanges. reserves, the management of their business, The conference confines itself to placing the origin of their directors, etc., the conference these facts on record, at the same time expresswould recommend particularly that for the ing the hope that the reestablishment of efficient discharge of these functions, those normal conditions will permit the realization of intrusted with their performance should, in new and satisfactory settlements. all cases, insist on the strict application of the X AND XI law, free of any outside influence whatever which might cause them to swerve from their X. TO CONSIDER THE NEED FOR RECOMMENDING proper mission. TO THE GOVERNMENTAL AUTHORITIES THAT, XII BY MEANS OF SUITABLE LEGISLATION, GUAR- ANTIES MAY BE GIVEN TO THE BANKING CREATION OF INTERNATIONAL SOURCES OF COMMUNITY, SO AS TO PREVENT LOWERING CREDIT SPECIFICALLY FOR PRODUCTIVE PUR- THE PRESTIGE OF THE CREDIT FUNCTION; POSES AND IN PARTICULAR, THAT EFFECTIVE GUAR- The conference recognizes the need of these ANTIES BE PROVIDED FOR THE EXCLUSION countries for foreign credits for productive pur- OF ANY POLITICAL INTERFERENCE WITH poses, with maturities which fall between those CENTRAL BANK POLICY of short-term credits, granted by commercial banks, and those credits with longer maturities, XI. TO CONSIDER THE MOST EFFICIENT MANNER provided by world capital markets. OF PROVIDING GUARANTIES TO PRIVATE The conference deems also that the granting CAPITAL IN ORDER TO PREVENT ITS LEAVING of such intermediate credits for productive pur- THE COUNTRY poses, especially for the financing of exportable 1. Capital and credit, being fundamental products, should constitute a useful and confactors in the economic life of nations, should structive part of any plan for aiding these always be fully and amply guaranteed by gov- debtor countries in fulfillment of their interernments in order to encourage the fullest national financial obligations. development of economic activity. The con- Therefore, the conference would recommend ference deems it advisable, therefore, that cap- to the central banks that they cooperate in the ital should not be ^weighed down with taxes and study of new mechanisms for providing interthat at all times it should be guarded by vig- mediate credits, for productive purposes, with ilant and energetic legislation which assures an maturities of from one to three years; and in attitude of respect on the part of the govern- stimulating the centralization and mobilization ments toward their contractual obligations of the demand for such credits in the borrowing and the punctual fulfillment on the part of countries and the mobilization of the supply corporations and individuals of their obliga- of such credit in the lending countries. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

48 FEDERAL RESERVE BULLETIN JANUARY, 1932 XIII RESOLUTION ADOPTED BY THE CONFERENCE ON TO STUDY THE POLICY WHICH THE CENTRAL MOTION OF THE PERUVIAN DELEGATION BANKS SHOULD ADOPT WITH RESPECT TO THEIR Interpreting and amplifying the original idea DIVIDENDS IN TIMES OF CRISIS OR IN OTHER contained in the note in which the Central PERIODS IN WHICH PROFITS ARE MUCH RE- Bank of Bolivia proposed holding this con- DUCED OR NONEXISTENT ference, the Peruvian delegation has the honor to submit for consideration the motion that In view of the prime importance to a central relations of a permanent character be initiated bank of constantly maintaining itself in a and established among all the central banking strong position, in order to carry out effectively institutions of issue and rediscount in America, its functions and maintain the full confidence and to this end suggests: of the public, given that it is the source of the 1. That a communication containing an circulating medium and that it is the depository account of the work and conclusions of this of the gold reserves of the country, the conferconference be sent to all the central banking ence deems it advisable that a central bank institutions of issue and rediscount in America; should always observe a very cautious dividend 2. That by means of correspondence regardpolicy. Thus the central bank must not pay ing matters of common interest, as well as by dividends except when its profits permit it to means of the exchange of publications, such as do so, after all losses, administrative expenses, laws, decrees, etc., permanent and cordial relaand necessary transfers to reserves have been tions among all the central banking institumade. A central bank should not impair its tions of issue and rediscount in America, be capital or the necessary reserve accumulations intensified; in order to meet the payment of ordinary dividends or of contingent accumulated dividends, 3. That the other central banking instituthe payment of which may have been deferred. tions of issue and rediscount in America be Every central bank should always be adminis- invited, in the name of the central banks here tered first for the public interest, with the pay- represented, to another conference, which, ment of dividends a secondary consideration. without now fixing the date, will be held sometime during 1933, subject to the approval However, the conference recognises that it of the institutions which are to be invited; is desirable for central banks to maintain, in the place where the conference shall be held to so far as possible, a uniform dividend rate. be decided by agreement of all institutions in- To this end, it would be recommended that vited, and the secretaryship and the prepathey adopt the policy of segregating a prudent rations for the conference to be left in charge sum from profits in order to create a special of the central bank of the country where the reserve which shall be left to accumulate for present conference was held; use over short periods of time (say a year or 4. That a communication containing the reless) in order to maintain dividends during sults of the work and the conclusions of this times when profits are temporarily very low, conference be sent to the Bank for International thus justifying the payment of the usual divi- Settlements in Basel, Switzerland, for the purdend at such times. pose of bringing about a more intense and wider XIV collaboration among all central banking institutions of issue and rediscount. PERFECTING THE GOLD STANDARD RESOLUTION ADOPTED BY THE CONFERENCE ON Inasmuch as one of the greatest economic MOTION OF THE ECUADOREAN DELEGATION problems before the world to-day is the prob- AND THE CHILEAN DELEGATION lem of obtaining a monetary medium that is reasonably stable in value, and inasmuch as the The delegations which, due to the initiative best prospect for obtaining such a monetary of the Central Bank of Bolivia, have gathered medium appears at the present time to be in together in Lima at the conference of South the world-wide adoption of the gold standard— American central banks, are in duty bound to which is still considered as the most practicable express their profound appreciation to the despite its recognized deficiencies—this con- Central Reserve Bank of Peru for the courtesy ference looks with favor on all reasonable and hospitality extended to the delegations, efforts on the part of the central banks of the for the many facilities placed at their disposal, world and of the Bank for International and for its intelligent and enthusiastic coopera- Settlements to cooperate in the work of per- tion in the completion of a comprehensive and fecting the gold standard and of making it a cooperative labor by the South American cenmore stable standard or measure of value. tral banking institutions. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

49 JANUARY, 1932 FEDERAL RESERVE BULLETIN The conference deems it its duty, as well, to BANCO CENTRAL DE CHILE extend a vote of thanks to Professor Kem- Mr. GUILLERMO SUBERCASEATJX PEREZ, director of merer and to the other delegates of the Federal Banco Central de Chile. Reserve Bank of New York for their aid in the Mr. GUILLERMO SUBERCASEAUX RIVAS delegate, id. work carried out by this conference, recom- Mr. MIGUEL COVARRUBIAS, delegate, id. Mr. WALTER VAN DEUSEN, technical adviser to the mending to them at the same time that, because delegation. of the international scope of the conference's findings, they make public its decisions and the BANCO CENTRAL DEL ECUADOR spirit which dictated them. Mr. ENRIQUE CUEVA, president of Banco Central del Ecuador. List of Delegates at the Conference of Representatives Mr. ESTEBAN CARBO, manager of Guayaquil Branch. of Central Banks in Lima, December 2, 1932. BANCO CENTRAL DE RESERVA DEL PERU BANCO CENTRAL DE BOLIVIA Dr. MANUEL AUGUSTO OLACHEA, president of Banco Mr. ISMAEL MONTES, ex-President of Republic and Central de Reserva del Peru. now President of the Banco Central de Bolivia. Mr. PEDRO G. BELTRXN, vice president, id. Mr. CARLOS VICTOR ARAMAYO, director of Banco Cen- Dr. Luis ALAYZA y PAZ SOLDXN, director! tral de Bolivia. Mr. MANUEL IRIGOYEN, director, Mr. ALBERTO PALACIOS, general manager, id. Mr. CARLOS GUACHALLA, manager foreign depart- Mr. CARLOS E. B. LEDGARD, director. ment, id. Mr. AUGUSTO N. WIESE, director. BANCO DE LA REPUBLICA, COLOMBIA Representatives of Federal Reserve Bank of New York Attending the Conference Mr. POMPONIO GUZMAN, former Minister of Finance and of Public Relations. Prof. E. W. KEMMERER, of Princeton University. Mr. V. A. DENYER, manager of Barranquilla Branch of Mr. ALLAN SPROUL, assistant deputy governor. Bank of the Republic. Mr. ERIC F. LAMB, adviser in Latin American affairs. ANNUAL REPORT OF THE BANK OF JAVA The annual report of the president of thethe same until 1929 as a result of an increase Java Bank for the year ended March 31, 1931, in the quantities exported, while up to and was presented to the general meeting of share- including 1929 there was even a considerable holders on July 9, 1931. Sections of the report increase in the aggregate value of imports. are given herewith.1 This increase was due, on the one hand, to Developments in the Netherland East Indies temporary factors, such as large capital induring the first few months after the outbreak vestments both in European agriculture in Java of the crisis in October, 1929, have already been and also in the petroleum industry, and, on the dealt with in the previous report. The influence other hand, to factors of a more permanent naof the steady price decline resulting from the ture, such as the increase of native agricultural crisis became clearly evident in the closing production. It is partly owing to these factors months of 1929. Since that time the fall in the that the weakening of the position of the [)rices of export commodities has continued, the Netherland East Indies in international comowest level up to the present having been modity exchange had not in earlier years reached in October, 1930. Prices of imported exercised a check on imports. It must also be commodities also underwent a decline, but not remembered that costs of production per unit of to the same extent as export prices. For thethe European plantations have for a number Netherland East Indies, a country that exports of years been considerably reduced. Although agricultural products, the unequal decline in ex- these reductions were not sufficient to compenport and import prices has a special significance. sate for the decline in prices of agricultural Foreign trade.—Since 1925 the position of products (in 1930 a number of plantations the Netherland East Indies in respect to the operated at a loss) they were sufficient to justify international exchange of commodities has a less pessimistic attitude toward the price been growing less favorable. As shown in decline than might otherwise have been the the previous report, the aggregate value of case. It is true, however, that since 1929 the exports from the Netherland East Indies, in earnings of the people have declined considerspite of the declines in prices, remained about ably without a corresponding decline in the cost of living, and this has caused a considerable i Taken with some textual revision from the English translation published by the bank. In addition the report contains tables showing the contraction in the country's purchasing power, operations of the bank in detail, and sections dealing with the international situation, agriculture, personnel, etc. For the report for 1929-30 especially for imported commodities. see FEDERAL RESERVE BULLETIN for December. 1930. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

50 FEDEEAL RESERVE BULLETIN JANUARY, 1932 The decline in imports which took place quirements of a diminished volume of business during 1930 was accompanied by changes in and lower prices could take place without hinthe relative importance of various countries drance. The Java Bank's selling rate for teleas sources of imports into the Netherland graphic transfers to Holland stood unchanged at East Indies. Europe still holds a predominant 100% throughout the year. Rates for teleposition, especially when account is taken of graphic transfers to London fluctuated between the great volume of merchandise imported 12.06% and 12.15 florins for the pound sterling, from the Straits. For the past five years and to New York between 2.48% and 2.50 Europe has been responsible for about one- florins per dollar. half the imports into the Netherland East State finances.—The past five years show a Indies, although the aggregate value of imports change in State finances from a budget surplus from Europe declined from 484,830,000 florins to a budget deficit. ($194,902,000) in 1929 to 363,630,000 florins ($146,179,000) in 1930, a decline of about 25 [In thousands of florins and dollars] per cent. During the same period imports Revenues Expenditures Balance from North America declined from 92,600,000 florins ($37,225,000) to 12,500,000 florins 1926._ Fl. 537,996($216,274) Fl. 437,860(1176,020) +F1.100,136($40,255) ($5,025,000), a decrease of about 86.5 per cent. 1 19 9 2 2 8 7 . . _ _ 5 5 2 1 6 7 , , 7 9 3 7 0 6 ( ( $ $ 2 2 1 0 1 8 , , 7 2 4 2 5 6 ) ) 4 4 9 7 7 2 , , 2 7 1 26 3 ( ( $ $ 1 1 9 9 0 9 , , 0 8 3 8 6 0 ) ) + + 4 2 5 9 , , 2 5 5 1 0 7 ( ( $ $ 1 1 8 1 , , 1 8 9 6 1 6 ) ) As imports from Europe and America belong 1929._ 524,386($210,803) 514,993($207,027) + 9,393 ($3,776) 1930__ 438,706($176,360) 523,995($210,646) - 85,289($34,286) chiefly to the class of luxuries or of capital goods, they were most adversely affected by Even if economic conditions during the the economic recession. Imports from Asia, coming years should show a gradual improveon the other hand, were higher by 19,000,000 ment, a reduction of budgetary expenditure florins ($7,638,000) in 1930 than in 1929. will still be necessary. Increases in various This increase is represented chiefly by yarns items, such as pensions and the service of and piece goods, earthenware, kedeleh, and tea. indebtedness incurred to cover budget deficits, The aggregate value of exports from the will inevitably require a contraction of State Netherland East Indies during 1930 declined activity if the budget is to be balanced. The considerably more than that of imports, ultimate aim of financial policy in this country although the merchandise balance continued to should be to bring about budget equilibrium be favorable. The value of sugar exports de- through reduction of expenditure rather than clined from 306,930,000 florins ($123,386,000) through increased taxation. Borrowing from in 1929 to 243,900,000 florins ($98,048,000) in abroad to meet current requirements should 1930; that of rubber from 231,330,000 florins be resorted to only as a last expedient. ($92,995,000) to 170,860,000 florins ($68,- Reserves and demand liabilities.—On 686,000); whereas that of petroleum products March 31, 1931, the gold stock of the Java rose from 175,400,000 florins ($70,511,000) to Bank was made up as follows: 181,550,000 florins ($72,983,000). Of 14 com- Dutch gold coins Fl. 52, 328, 320 ($21, 035, 985) modities, representing about 87 per cent of the Foreign gold coins 51, 674, 892 ($20, 773, 307) total exports, only 5 (including petroleum) Gold bullion 14,693,940 ($5,906,964) showed increased exports in 1930 as compared Total 118, 697, 152 ($47, 716, 255) with 1929. Exchange position of the florin.—The reces- while silver amounted to 47,273,137 florins sion in exports of merchandise during the past ($19,003,801), making a total reserve of year did not affect the position of the Nether- 165,970,289 florins ($66,720,056). Demand land East Indies florin. Rates of exchange re- liabilities on the same date consisted of the mained very steady, since the economic situa- following: tion as well as the volume of imports became Bank notes in circuadjusted to the changed conditions, so that the lation FL 251, 475, 675 ($101, 093, 221) Current account balmerchandise balance was only slightly less favances 33,636,582 ($13,521,906) orable than that of the previous year. Neither Bank drafts in cirin the case of exports nor of imports was there culation 1,469,790 ($590,856) any artificial impediment to adjustment set up Total 286, 582, 047 ($115, 205, 983) by accumulation of stocks in the hope of better prices. As a result of this economic adjustment, The ratio of reserves to demand liabilities, which proceeded without the application of any accordingly, was 57.91 per cent, as compared artificial measures, the contraction of the circu- with 53.88 per cent on the corresponding date lating medium and its adjustment to the re- in 1930 and 53.12 per cent in 1929. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

JANUARY, 1932 FEDERAL RESERVE BULLETIN 51 Gold movements.—Imports of gold coin for chased by the Government Pawnshop Service private account during 1930 amounted to only amounted to 1,636,000 florins ($657,700), while 2,445,000 florins ($982,900), as compared with by the close of 1930 it had risen to 8,181,000 10,410,000 florins ($4,184,800) in 1929 and florins ($3,288,800). For some time the Gov- 20,463,000 florins ($8,226,100) in 1926. Ex- ernment Pawnshop Service has been melting ports of gold coin returned by the population this gold and selling it abroad in the form of during 1930 were inconsiderable, but large bars. quantities of gold coin and ornaments had to The bill amending the Java Bank act of be bought in by the Government Pawnshop 1922, mentioned in the previous report, was Service, as the pledges were not redeemed. In passed last year by both houses of Parliament, December, 1929, the value of pledges—chiefly and was promulgated by the Official Gazette in the form of gold coin and ornaments—pur- of the Netherland East Indies, 1931, No. 2. BALANCE SHEET OF THE BANK OF JAVA AS OF MARCH 31, 1931 Florins Dollars i Florins Dollars i Resources (in thou- (in thou- Liabilities (in thou- (in thousands) sands) sands) sands) Cash in hand: Notes in circulation 251,476 i 101,093 Gold coin 52,328 21,036 Deposits 33,606 ! 13,510 Silver coin 47,203 18,976 Drafts payable. 1,470 ! 591 Subsidiary coin. 140 Unclaimed dividends 30 i 12 Capital paid up 9,000 j 3,618 99,881 40,152 Reserve fund 13,500 ! 5,427 Foreign coin and bullion: Extra reserve 2,711; 1,090 Gold coin..- 51,675 20,773 Reserve for company tax _ fr» 286 ! 115 Gold bullion 14,694 5,907 Pension and provident fund 4,420 i 1,777 Silver coin __. Silver bullion 70 28 Net profits: Shareholders 1,260 507 Foreign bills 6 2 6 9 , , 4 8 3 4 9 9 2 1 6 1 , , 7 9 0 9 8 9 B G o o n v u e s r e n s ment. 1,4 2 4 8 1 1 5 1 7 1 9 3 Stock exchange loans in Holland. 500 201 Bills discounted: 2,982 1,199 Commercial bills 8,248 3,316 Government auction bills 892 359 Unpaid balance of profits due to shareholders for the year 1929-30 - 1 9,140 I 3,674 Sundry accounts 121 49 Loans and advances in current account, against: S M to e c rc k h s a a n n d d is b e ills of exchange.. 30,017 12,067 Hypothecated claims 4,217 1,695 Gold and silver 684 275 28 11 Advances to the Government Investments: Invested capital.— - Invested reserve funds Invested pension and provident fund. Buildings Furniture Sundry accounts.. Total resources.. Total liabilities. 319, 603 128,480 i Conversion at par: 1 florin=$0,402. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

52 FEDERAL RESERVE BULLETIN JANUARY, 1932 FINANCIAL STATISTICS FOR FOREIGN COUNTRIES GOLD RESERVES OF CENTRAL BANKS AND GOVERNMENTS [In millions of dollars. Figures for last report date of month *] Europe Month c T o o u t n a t l r i ( e 4 s 5 ) U S n ta i t t e e s d Canada c T o o u t n a t l r i ( e 2 s 6 ) i AAuussttrniaa Belgium Bulgaria s C lo z v ec a h k o ia - Denmark England France Germany 1930—July 10,705 4,160 94 5,009 1 24 167 10 42 46 741 1,775 624 August 10,787 4,148 100 5,122 , 24 168 10 42 46 754 1,852 624 September- 10,823 4,159 110 5,141 i 30 173 10 42 46 761 1,899 590 October 10,852 4,184 122 5,207 ; 30 180 10 44 46 776 1,992 519 November 10, 894 4,220 129 5,238 ' 30 180 10 46 46 762 2,037 519 December 10, 907 4,225 110 5,281 , 30 191 10 46 46 718 2,100 528 1931—January 10,953 4,285 92 5,313 ' 30 191 10 46 46 679 2,176 535 February 11,008 4,309 94 5, 350 30 197 11 46 46 685 2,192 544 March 11,071 4,343 96 5,388 : 30 200 11 46 46 699 2,200 553 April 11,107 4,373 99 5,395 30 201 11 46 46 712 2,180 564 May 11,217 4,445 102 5,428 i 30 201 11 46 46 735 2,181 569 June 11, 264 4,593 87 5,351 i 30 199 11 46 46 793 2,212 339 July 11,210 4,587 87 5,353 ! 30 214 11 45 46 643 2,290 325 August 11, 283 4,632 89 5,413 ! 30 221 11 45 46 649 2,296 325 September » 11,260 4, 364 83 J-5,686 i 27 346 11 45 44 656 2,326 310 October »11,100 3,905 86 J> 6,060 ' 27 357 11 46 44 660 2,534 273 November » 11, 207 i 4,031 82 p 6,106 ! 27 356 11 46 39 587 2,659 239 December 1 v 4,051 *>78 354 39 588 * 2,699 *234 Europe—Continued Month Greece Hungary Italy N l e a t n h d e s r- Norwayj Poland Ru n m ia a- Spain Sweden Sw la i n tz d er- u. R s . . s. Y sl u av g i o a - 6 t c r o o ie u th s n e - » r 1930-July 28 274 157 39 477 65 118 234 19 27 August 28 275 157 39 477 65 123 249 19 27 September. 28 278 157 39 478 65 123 249 19 27 October 28 278 171 39 478 65 128 249 19 27 November.. 28 279 171 39 474 65 130 249 19 27 December.. 28 279 171 39 471 65 138 249 19 1931—January 28 279 175 39 466 64 126 249 19 28 February. _ 26 279 179 39 466 64 124 249 19 28 March 22 279 179 39 467 64 124 259 19 28 April 20 279 181 39 467 64 124 259 19 29 May 20 280 181 39 468 64 124 262 19 29 June 20 282 200 39 468 64 162 262 27 29 July 20 283 236 39 439 64 225 267 27 28 August 18 283 260 439 62 229 280 27 28 September. 18 286 282 439 53 328 293 29 »28 October 18 293 336 434 57 422 309 31 November. 18 296 362 434 55 425 315 31 December.. 18 357 434 453 328 31 Latin America Far East Africa Month T c tr o ( o i 1 u e t 0 s n a ) l - Ar t g in en a - Brazil Co b l i o a m- Peru U gu r a u y - 5 t c r o o ie u th s n e - i r T c tr o o i ( u e 5 t s n a ) l - Au l s ia tra- India Japan Java 1930—July 634 436 63 18 755 128 440 August 616 434 17 748 128 433 September. 613 434 17 747 128 431 October 575 429 60 17 711 128 414 November- 550 417 17 701 128 409 December.. 534 412 17 704 128 412 1931—January 506 397 17 704 128 415 February—. 497 390 17 703 128 417 March 483 378 16 709 135 415 April 475 370 16 714 141 419 May 465 362 17 724 147 422 June 451 350 17 730 151 425 July 416 322 12 714 158 412 August 400 309 12 698 162 406 September- 369 281 13 706 162 408 October 360 270 12 644 162 342 November. p 12 *572 162 271 1 All figures are as of final day of month except those of 15 countries, for which last report days are shown on page 399 of the FEDERAL RESERVE BULLETIN for July, 1931. 3 Countries which, for the period shown in the table, have not had gold reserves in excess of $10,CC0,CC0. For Europe these countries are: Albania, Estonia, Finland, Latvia, Lithuania, and Portugal. For Latin America they are Bolivia, Chile, Ecuador, Guatemala, and Mexico. » Preliminary. NOTE.—For institutions represented, items included, and rates of conversion into dollars, see note to similar table on p. 399 of the FEDERAL RESERVE BULLETIN for July, 1931. The July BULLETIN also contains separate figures for the 45 countries by months for the period June, 1928-May 1931 (pp. 399-400); and by years for the period 1913-1930 (p. 394). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

JANUABT, 1932 FEDERAL EESEKVE BULLETIN 53 GOLD MOVEMENTS [In thousands of dollars] United States Germany Great Britain Netherlands South India Africa Month Ex- Im- Ex- Im- Ex- ! Im- Exports Net ports ports Net ports ports I Net ports ports Net Net Net L I 1930—July | 21,889 41,529 -19,640 1,414 227 1,187 24,646 40,355! -15,709 48 16,587 -16,539 -22, 415 3,404 August I 19,714 39,332 -19,617 1,545 210 1,335 24,201 21.390 2,811 281 8 273 -18,708 13,461 September 13,680 11,133 2,547 1,967 25,358 -23,391 22,339 20,245 2,094 81 13 68 -17,149 3,568 October.. 35,635 9,266 26,369 3,162 96,677 -93, 514 45,416 34, 754 10,662 12,338 199 12,139 -20,259 967 November 40,159 5,008 35,151 1,458 273 1,185 41,199 43,164 -1,965 150 115 35 -18,762 1,323 December 32,778 36 32,742 9,524 274 9,250 43,124 78. 507 -35,383 42 39 3 -16,966 681 1931—January 34,426 54 34,372 12, 252 287 11, 965 35,304 78, 774 -43,470 301 52 249 -21,005 -286 February 16,156 14 16,142 12,335 237 12,098 31,335 28,892 2,443 59 167 -109 -18, 482 880 March 25,671 26 25, 645J 11,077 479 10,598 22,829 16,377 6,452 59 215 —155 -17, 557 •943 April —. j 49,543 27 49, 516! 11, 728 345 11,383 28,495 4,411 24,084 25 458 -433 -16,895 •600 May -._ 50,258 628 49, 630 6,665 294 6,371 20,742 1,620 19,122 32 551 -519 -21,391 696 June. ....I 63,887 40 63,847 11, 203216,745-205, 542 66,956 12, 656 54,300 24,939 563 24, 376 -16,915 -1,752 July _ '20,512 1,009 ' 19, 503 10,279 16, 522 -6, 243 48,444 179, 252-130,808 10,343 946 9,397 -22, 729 -803 August 57,539 39 57, 500 1,487 554 933 39, 862 64,012 —24,150 61,131 1,055 60, 076 -17,852 —270 September ' 49,269 28, 708 ' 20, 5611 1,344 18,291 -16,947 23, 327 34, 214 -10,887 20, 079 1,059 19, 020 -18,760 62 October.. 60,919 398, 604-337, 685 i 7,073 38,546 -31,473] 41,9701 25,654 16, 316 52,716 22,118 30, 598 -16,625 -31,250 November 94,430 4,994 89, 436i 697 42,665 -41,968| 58, 529!117, -58,840 41,219 V 36,551 -15,479 '—30,834 l r Revised. » Preliminary. •Corrected. MOVEMENTS TO AND FROM GREAT BRITAIN MOVEMENTS TO AND FROM BRITISH INDIii [In thousands of dollars] [In thousands of dollars] 1931 1930 1931 1930 From or to— November Jan v u e a m r b y e - r No- Calendar year From or to— October Janua b ry er -Octo- Calendar year ImportsExportsImportsExports | ImportsExports Imports ExportsImportsExportsImportsExports Belgium 86 36,824 5 9,095 Belgium 62 62 France -_ 23 80,363 2,965 315, 542 1,470 270,301 England 201 12,409 1,799 19, 213 8,848 167 Germany 52 54 49,121 14, 874 7 78,842 France 1,509 1,509 Netherlands 1,293 17,475 3,879 126,001 19 1,000 Netherlands 9,084 9,129 Spain and Canaries. 1 4,867 1,021 29,229 1,610 United States 9,922 10, 715 Switzerland 13,086 46,157 23,190 Aden and depend- United States 118 5,539 1,864 8,593 283 encies 56 412 650 South America 905 29,512 68 57 944 49 Arabia 104 843 •t 759 British India _ 31,306 47,533 1,652 1 8,178 British Oceania 28 2,199 8,053 Australia 1,448 33, 068 116, 417 2 Bahrein Islands 102 433 196 New Zealand 301 1,304 127 Ceylon 295 543 2,718 EgVDt 5 424 94 China 2 73 3 670 Rhodesia 954 5,483 5,197 Mesopotamia 335 1, 606 2,402 Transvaal 18,810 214,389 203, 513 Straits Settlements.. 67 6 136 6 2,828 14 West Africa 417 5,059 7 5,075 11 Egypt 6 G 1,177 All other countries.. 2,900 760 18, 746 12,070 2,436 5,669 Natal 575 1,438 26,513 All other countries... 25 56 25 56 39 Total 58, 529 117, 369 417, 792 563, 231 421,725 398,040 Total 1,798 33,048 9, 513^ 40, 692 57,854 182 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

54 FEDERAL RESERVE BULLETIN JANUARY, 1932 FOREIGN EXCHANGE RATES, YEARLY AVERAGES 1923-1931 [In cents per unit of foreign currency. For explanation see note on p. 57] Present monetary Par of Country unit 1 exchange 1923 1924 1925 1926 1927 1928 1929 1930 1931 Europe: Austria Schilling l 14.07 0. 0014 0. 0014 214. 0612 14. 0740 14. 0764 14. 0743 14. 0575 14. 0891 14. 0227 Belgium Belga1 13.90 5. 2190 4. 6438 4. 7580 3 3. 3721 13. 9157 13. 9281 13.9124 13. 9524 13.9285 Bulgaria Lev "• .72 .8837 .7281 .7317 .7210 .7235 .7207 .7216 .7209 .7163 Czechoslovakia Crown 4 o Qg 2. 9550 2. 9542 2. 9656 2. 9618 2. 9622 2. 9625 2.9609 2.9640 29. 6186 Denmark Krone 26.80 18. 3643 16. 7228 21.1310 26. 2257 26. 7251 26. 7426 26. 6802 26. 7650 25.0581 England Pound 486. 66 457. 4825 441. 7064 482. 8944 485. 8235 486.1024 486. 6223 485. 6879 486. 2126 453.4990 Finland Markka 1 2.52 2 6831 2. 5076 2. 5218 2. 5209 2. 5197 2. 5173 2. 5160 2. 5169 2. 3875 France Franc! 3.92 6. 0811 5. 2368 4. 7671 3. 2427 3.9240 3. 9210 3. 9161 3. 9249 3.9200 Germany Reichsmark 1 23. 82 .0020 5 22.9980 23. 8013 23. 7996 23. 7638 23.8614 23.8086 23. 8541 23. 6302 Greece Drachma 1 .. . 1.30 1. 7141 1. 7900 1. 5614 1. 2579 1.3173 1. 3044 1. 2934 1. 2959 1.2926 Hungary Pengo 1 17.49 .0164 .0017 .0014 17. 5612 17. 4741 17.4443 17. 4414 17. 4939 17. 4522 Italy Lira1 5.26 4. 6016 4. 3580 3. 9776 3. 8894 5.1560 5. 2571 5. 2334 5. 2374 5.2063 Netherlands Florin 40.20 39.1005 38. 2109 40.1601 40.0984 40.1065 40. 2238 40.1622 40. 2251 40.2298 Norway Krone 26.80 16. 6710 13. 9403 17. 8836 22. 3347 26. 0477 26. 6876 26.6827 26. 7598 25. 0546 Poland Zloty i 11.22 .0014 •19. 2280 17. 7432 11.1796 11. 2881 11. 2097 11.1940 11. 2051 11.1970 Portugal Escudol 4.42 4. 2527 3. 3850 5.0397 5.1254 5. 0290 4.4675 4.4714 4.4940 4.2435 Rumania Leu i .60 .4937 .4982 .4832 .4620 .6042 .6133 .5961 .5953 .5946 Spain Peseta . 19.30 14. 4529 13. 3375 14.3443 14. 8959 17. 0592 16. 5942 14.6833 11.6670 9. 5453 Sweden Krona 26.80 26. 5548 26. 5223 26. 8479 26. 7646 26. 8148 26. 8002 26. 7839 26. 8543 25. 2540 Switzerland--. __ Franc 19.30 18. 0600 18. 2228 19. 3268 19. 3130 19. 2618 19. 2596 19. 2792 19. 3820 19.4009 U S. S. R Chervonetz 514. 60 7 515.0000 7 515. 0000 7 515. 0000 7 515. 0000 7 515. 0000 7 515. 0000 Yugoslavia Dinar 19.30 1. 0722 1. 2818 1. 7054 1. 7647 1. 7598 1. 7598 1. 7591 1. 7681 1. 7680 North America: Canada _ _ Dollar 100.00 98. 0352 98. 7322 99. 9615 99. 9889 99. 9720 99. 9094 99. 2472 99. 8424 96. 3258 Cuba Peso 100. 00 99. 9508 99. 9783 99. 9359 99. 9310 99. 9675 99. 9634 99. 9647 99. 9515 99. 9295 Mexico Silver peso l 49.85 48. 5465 48. 5143 49. 3926 48. 3087 47. 2049 48.1067 48.1830 47.1331 8 35.4919 South America: Argentina do 96.48 78. 5727 78.1308 91. 3822 92.1497 96. 2950 96.4801 95.1274 83. 5050 66.7375 Bolivia Boliviano * 36.50 34. 0941 34.3913 35. 3911 36. 2776 36. 3771 36. 6246 Brazil Milreisi 11.96 16. 2285 10. 9403 12.1962 14. 4357 11. 8383 11. 9737 11. 8078 10. 7136 7. 0290 Chile Peso 1 12.17 12. 2423 10. 5448 11. 6031 12. 0766 12. 0652 12.1451 12. 0601 12. 0785 12. 0669 Colombia do 97 33 98 4547 97 6879 97. 6937 96 5512 96. 4930 96.2512 Ecuador Sucre 1 20.00 20.0571 18. 9724 19.9127 20.0000 20.0000 20.0000 Peru Sol i 28.00 374.0965 373. 7739 397. 0488 399. 9835 » 35. 6170 28.0671 Uruguay Peso _ __ 103.42 79. 0615 82. 2695 98.4009 101. 4740 101. 3361 102. 6567 98. 6294 85. 8650 55.3572 Venezuela Bolivar 19 30 19. 2565 18. 9835 19. 2525 19.2973 18. 9009 17.0374 Asia: China Mexican dollar 10 22.80 52. 0153 52. 3642 55. 5471 49. 9159 45. 0315 46. 4710 42.1541 30. 0861 22.4629 China Shanghai tael10 31.43 72. 0248 72.6814 75. 7738 68. 4214 62. 0994 64.3014 58.4153 41.8159 31.1243 China Yuan dollar"* 22.30 52. 6223 52. 6973 56. 9066 49. 9807 43. 9414 46.1378 41. 9007 29. 9166 22.4369 Hong Kong. Dollar io 22. 63 52.8985 52. 4691 56. 5199 53. 3290 49. 2085 50.0717 47.1669 33. 8530 24.3305 India Rupee l 36.50 31.1103 31. 7835 36. 2642 36. 3267 36. 3117 36.4663 36. 2020 36. 0672 33.6895 Japan Yen 49.85 48. 5845 41.1857 41. 0362 47.1163 47.4113 46.4096 46. 0997 49. 3898 48.8509 Java Florin 40 20 40 2862 40 2377 40 2208 40. 0568 40. 2328 40.2313 Straits Settlements Singapore dollar 56.78 53. 4984 51.2523 56.1546 56. 2705 56. 0476 56. 2838 56.0117 55. 9639 52.4451 Turkey Turkish pound 439. 65 52. 2549 51.3204 50. 9987 48.4105 47. 0608 Africa: Egypt Egyptian pound 494. 31 498. 0954 498. 3123 499. 0254 498. 0689 498. 6002 "• In the following cases the present monetary unit with present par value was quoted for only a part of the period 1923-1931, and the averages given for earlier years are for the unit which has been superseded: Country P u i r n n e i s t N e f n e i t r w s m t Y q o u n o o e r t t k e ar d - y Previou u s n m it onetary pr P e u a v n r i i o o t u f s Country P u i r n n e i s t N e f n e i t r w s m t Y q o u n o o e r t t k e a d r - y Previou u s n m it onetary pr P e u a v n r i i o t o u f s Austria Mar 13, 1926 Krone 20. 26 Greece. May 14, 1928 Drachma 19.30 Belgium Oct 25 1926 Franc 19.30 Hungary Jan 2 1926 Krone 20.26 Bolivia Aug. 20, 1928 Boliviano 38.93 India _. Apr. 1, 1927 Rupee _ 48.66 Brazil Dec. 18, 1926 Milreis... 32.44 Italy Dec. 21, 1927 Lira 19.30 Bulgaria Nov. 22, 1928 Lev 19.30 Mexico _ July 30, 1931 Gold peso 49.85 Chile Aug. 21, 1925 Peso 36.50 Peru May 18, 1931 Sol* _ 40.00 E Fi c n u l a a d n o d r J M an a . r . 2, 1 9 1 , 9 1 2 9 6 27 S M u a c r r k e ka 4 19 8 .3 .6 0 6 P P o o r la tu n g d al. J O u ct l y 1 1 3 , , 1 1 9 9 3 2 1 7 Z E l s o c t u y d o t 10 1 8 9 . . 30 50 France __ June 25, 1928 Franc . . 19.30 Rumania _.. Feb. 7, 1929 Leu 19.30 Germany Oct. 29, 1924 Mark 23.82 * The sol (par value 40.00 cents) superseded the libra (par value 486.66 cents) Mar. 27, 1930. t The zloty (par value 19.30 cents) superseded the Polish iiark (par value 23.82 cents) May 26, 1924. 2 Average for schilling Mar. 13 to Dec. 31, inclusive. Average for krone, Jan. 2 to Mar. 12 was 0.0014 cent. 3 Average for franc Jan. 2 to Oct. 25, inclusive. Average for belga, Oct. 26 to Dec. 31, was 13.9095 cents. 4 Established by new currency law, effective Nov. 27, 1929; for previous status of Czechoslovak crown see BULLETIN for November, 1929, p. 737. s Average for 1,000,000,000,000 marks Jan. 2 to Oct. 28, inclusive. Average for reichsmark, Oct. 29 to Dec. 31, was 23.8008 cents. 6 Average for zloty May 26 to Dec. 31, inclusive. Average for Polish mark, Jan. 2 to May 24, was 0.0113 cents per thousand. 7 Nominal. 8 Average for silver peso July 30 to Dec. 31, inclusive. Average for gold peso, Jan. 2 to July 29 was 47.6510 cents. 9 Average for sol, Mar. 27 to Dec. 31, inclusive. Averge for libra, Jan. 2 to Mar. 26, was 400.0000 cents. » Silver currency. Par of exchange represents gold value of unit in 1931 computed by multiplying silver content of unit by New York average price of silver for 1931, which was $0.29013. Corresponding parities for the years 1923 to 1930 are as follows: 1923 1924 1925 1926 1927 1928 1929 1930 Mexican dollar -I 51.25 52.72 54.53 49.04 44.53 45.95 41.88 30.22 Shanghai tael .1 71.21 73.25 75.76 68.14 61.87 63.84 58.18 41.67 Yuan dollar 50.70 52.15 53.93 48.51 44.05 45.45 41.42 29.56 Hong Kong dollar. 50.89 52.35 54.14 48.69 44.21 45.62 41.58 30.00 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

JANUARY, 1932 FEDERAL RESERVE BULLETIN 55 FOREIGN EXCHANGE RATES, 1930-31 MONTHLY AVERAGES [In cents per unit of foreign currency] Austria Belgium Bulgaria s C lo z v ec a h k o ia - Denmark England Finland France Germany Greece Hungary 1930 January. 14.0597 13.9377 .7213 2.9583 26.7517 486. 8823 2.5160 3. 9291 23.8821 1.2976 17.4912 February 14.0605 13.9271 .7212 2.9590 26. 7532 486.1785 2. 5162 3.9155 23. 8711 1. 2962 17.4769 March 14.0705 13.9373 .7216 2. 9622 26.7693 486. 3085 2.5166 3.9132 23.8573 1.2960 17.4738 April... 14. 0801 13.9565 .7221 2. 9621 26. 7745 486. 3104 2. 5171 3.9185 23.8684 L. 2967 17.4718 May 14. 0864 13.9541 .7219 2. 9634 26. 7556 485.9675 2. 5172 3.9222 23.8627 L. 2960 17. 4772 June._ . 14.0898 13.9529 .7208 2.9655 26. 7556 485.8667 2. 5172 3.9241 23.8498 1.2955 17.4820 July 14.1073 13.9754 .7218 2.9658 26. 7914 486. 5691 2. 5173 3.9343 23.8693 I. 2961 17.5117 August 14.1182 13.9838 .7219 2.9661 26.8150 487. 0709 2. 5175 3. 9337 23. 8893 L. 2969 17. 5294 September 14.1131 13.9476 .7224 2.9672 26. 7670 486.1101 2. 5173 3.9273 23. 8229 L. 2958 17. 5160 October 14.1046 13.9441 .7209 2. 9664 26. 7557 485. 8969 2. 5170 3.9235 23.8050 I. 2949 17. 5050 November 14. 0917 13. 9421 .7181 2. 9650 26. 7417 485. 6409 2. 5170 3. 9271 23. 8287 .2950 17.4949 December 14. 0840 13. 9648 .7171 2.9664 26. 7442 485. 6610 2.5166 3.9292 23.8404 L. 2944 17.4947 1931 January. 14. 0708 13.9422 .7169 2. 9617 26. 7246 485,4684 2. 5169 3.9207 23.7719 1.2942 17.4751 February _. __ 14. 0544 13.9410 .7178 2.9598 26. 7454 485.8389 2. 5178 3.9197 23. 7693 L. 2946 17.4600 March 14.0552 13.9294 . 7173 2. 9624 26. 7458 485.8293 2. 5177 3.9138 23. 8072 L. 2945 17.4411 April... 14. 0568 13.9039 .7174 2. 9619 26. 7503 485.9863 2. 5172 3.9104 23.8105 L. 2943 17.4368 May 14.0543 13.9J19 .7176 2. 9622 26.7738 486.4039 2. 5172 3.9114 23. 8036 .2949 17.4376 June.. _ 14. 0457 13. 9242 .7180 2. 9621 26. 7795 486.4863 2.5167 3.9158 23. 7327 .2951 17.4450 July 14. 0413 13.9453 .7183 2. 9605 26. 7340 485. 6052 2. 5156 3.9215 23.2782 L. 2939 17.4433 August 14.0406 13.9376 . 7154 2. 9624 26. 7292 485. 7725 2. 5148 3.9196 23. 6575 L. 2936 17.4515 September _ . 14. 0388 13.9091 .7160 2. 9621 25. 2636 453.1260 2. 5133 3.9257 23.4212 L. 2926 17.4496 October 13. 9158 13. 9852 .7127 2. 9619 22. 0209 388.9291 2. 3082 3.9383 23. 2395 L 2883 17.4640 November 13.9516 13.9070 .7138 2.9625 20. 6700 371.9934 1.9839 3.9201 23. 6777 1. 2879 17.4670 December 13.9460 13. 9039 . 7148 2. 9626 18. 5875 337.3707 1. 6938 3.9229 23. 6192 1. 2879 17.4580 Italy N l e a t n h d e s r- Norway Poland Portugal Rumania Spain Sweden Sw la i n tz d er- U.S.S.R.i Y sla u v g i o a - • 1930 J F a e n b u r a u r a v r y _ . . .. 5 5. . 2 2 3 3 3 4 1 6 4 4 0 0 . . 2 1 2 0 7 2 9 8 2 2 6 6 . . 7 7 3 2 4 1 7 2 1 1 1 1 . 1 1 9 9 7 3 3 5 4 4 . . 4 4 9 9 6 5 9 7 . . 5 5 9 9 6 5 2 0 1 1 3 2 . . 1 6 0 9 4 5 4 5 2 2 6 6 . . 8 8 4 2 6 6 0 2 1 1 9 9 . . 2 3 9 48 3 6 8 5 5 1 1 5 5 . . 0 0 0 0 0 0 0 0 1 1 . . 7 7 6 6 0 5 4 8 March 5.2375 40.1066 26. 7589 11. 2027 4.4930 .5953 12. 3131 26.8563 19. 3453 515.0000 1. 7637 April 5.2415 40 2013 26 7719 11 2037 4.4954 .5957 12.4828 26.8796 19.3790 515.0000 1. 7674 May . . __ .. 5. 2414 40. 2255 26. 7570 11.2020 4. 5013 .5953 12.2283 26. 8342 19. 3550 515.0000 1. 7669 June 5. 2380 40.1991 26. 7634 11.2010 4.4983 .5947 11. 7490 26.8480 19.3669 515.0000 1. 7661 July _ 5. 2383 40. 2375 26.7913 11. 2085 4.4947 .5955 11. 5243 26.8837 19.4279 515.0000 1.7704 August 5. 2384 40.2908 26. 8101 11.2065 4. 5046 .5958 10. 8762 26.8914 19.4449 515.0000 1. 7727 September . . 5.2371 40. 2880 26. 7604 11. 2063 4. 4925 .5959 10. 7255 26.8680 19. 4060 515. 0000 1. 7716 October 5.2360 40. 2982 26.7544 11.2119 4. 4872 .5949 10. 3448 26.8523 19.4193 515.0000 1. 7717 November ._ __ 5. 2347 40. 2393 26. 7427 11.2158 4. 4833 . 5944 11.2963 26.8284 19.3875 515.0000 1.7701 December 5.2378 40. 2690 26. 7434 11.2210 4.4839 .5945 10. 7460 26.8309 19. 3792 515.0000 1. 7697 1931 Januarv 5.2350 40 2316 26 7265 11 2114 4.4867 .5944 10. 3967 26. 7643 19. 3574 515.0000 1. 7679 February . . 5.2350 40.1378 26.7462 11.2025 4. 4854 .5948 10.1853 26. 7707 19.2934 515.0000 1. 7633 March 5.2383 40.0869 26. 7501 11.1931 4. 4823 . 5947 10. 7298 26.7775 19.2429 515.0000 1. 7587 April 5.2360 40 1391 26. 7530 11 1929 4. 4782 .5942 10.4736 26. 7758 19. 2559 515.0000 1. 7585 May 5. 2353 40.1847 26. 7761 11.1950 4.4918 .5943 10.0004 26.8070 19. 2845 515. 0000 1. 7603 June. 5. 2348 40. 2442 26. 7801 11.1996 4.4234 .5949 9.6749 26. 8045 19. 3956 515. 0000 1. 7685 July 5.2300 40. 2775 26. 7346 11.1991 4.4162 .5943 9. 3139 26. 7558 19. 4309 515.0000 1. 7665 August 5. 2304 40. 3182 26. 7328 11.1970 4. 4216 .5936 8. 7964 26. 7487 19.4862 515.0000 1. 7694 September - 5.1699 40. 2677 25. 3982 11.1978 4. 4232 .5936 8.9839 26.0857 19. 5096 515.0000 1. 7653 October 5.1645 40. 4256 22.0737 11.1955 3.9271 .5953 8.9631 23.1140 19.6009 515.0000 1. 7734 November 5.1548 40.1916 20. 5163 11.1903 3.6401 .5966 8.6137 20. 7378 19.4632 515.0000 1. 7856 December 5.1094 40. 2338 18. 4831 11.1902 3. 2302 .5959 8.3992 18. 7098 19. 4805 515.0000 1. 7796 i Chervonetz quotations nominal. NOTE.—For back figures (monthly basis), see BULLETIN for January, 1931, January, 1930, January, 1929, and January, 1928. All of the averages are based on daily quotations, most of which are furnished by the Federal Reserve Bank of New York, in accordance with tariff legislation passed in May, 1921; the others are taken from unofficial sources, as indicated in detail on p. 57. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

56 FEDERAL RESERVE BULLETIN JANUABY, 1932 FOREIGN EXCHANGE RATES, 1930-31—Continued MONTHLY AVERAGES—Continued Canada Cuba I Mexico Argentina Bolivia Brazil Chile Colombia j Ecuador Peru Uruguay I January 99.9247 47.4393 91. 3355 36.0000 11.0857 12. 0556 96.3900 20. 0000 400.0000 92.9796 February 99.2408 100. 0313 47. 4758 86. 5311 36.0000 11.1533 12. 0319 96. 3900 20.0000 400.0000 88.9679 March 99.7637 99.9596 47. 4921 85.6357 36.0385 11.5012 12. 0518 96.3900 20.0000 400.0000 89.0137 April I 99.9501 99. 9189 47. 5414 88. 6349 36. 5000 11. 7206 12. 0549 96.3900 20. 0000 3 40.0000 92.9001 May 99.8360 100. 0032 47. 5356 87. 2153 36. 5000 11. 8349 12. 0746 96.4962 20.0000 40. 0000 92.2102 June 99.9913 99.9403 47. 4135 84. 4773 36.1000 11. 3983 12. 0777 96.6328 20.0000 38. 2500 89.1731 July 100.0697 99.9092 47.1287 82. 0511 36. 0000 10.8752 12. 0908 96.5542 20. 0000 37.6923 85. 4430 August _,. 100.0943 99.9449 47. 3364 82.4855 36.3750 9.9571 12.1133 96.5246 20. 0000 35.9808 82.9367 September I 100.1206 99.9704 47. 3740 81. 7843 36. 7500 10. 0850 12.1365 96. 5300 20.0000 34.4100 82. 3747 October | 100.1033 99.9359 47.1678 78. 0538 36. 7500 (2) 12. 0834 96.5300 20.0000 31. 2596 79.2496 November I 100.1037 99. 9639 46.0995 78.1187 36. 7500 (2) 12. 0702 96. 5300 20. 0000 31.0435 79.9226 December 99.8963 99.9300 45.5461 75.5521 36. 7500 9. 6121 12.0955 96.5531 20.0000 30.2981 74.9937 1931 I January 99.7909 99.9364 46.3566 69.7038 36. 7500 9. 0721 12.0663 96.5700 | 20.0000 29.6731 68.1414 February _-. 99.9761 100.0196 46.1950 71.9416 36. 7500 8. 5601 12. 0673 96. 5700 20.0000 27.8750 69.0778 March 99.9789 100.0238 47.3546 78.0406 36.7500 7.8897 12.0632 96. 5700 20.0000 27.8365 73.3617 April 99.9517 99.9248 47.4843 76.4629 36.7500 7.2668 12.0628 96. 5700 20.0000 28.3461 67. 7199 May... 99.9449 99.9187 48.0200 70. 7121 36. 7500 6.6756 12.0673 96. 5700 20. 0000 27.9600 61.4301 June 99.7201 99.9157 49.0305 70. 2524 36.7500 7. 4991 12.0868 96.5700 20.0000 27.9308 58.5356 July.. 99.6607 99.9124 49.0109 69 8840 36. 7500 7.1937 12. 0798 96.5700 20. 0000 27. 9738 54.2652 August 99.6898 99.9703 i 30. 0269 64. 5722 36. 7500 6.3693 12. 0549 96.5700 20. 0000 27.94S1 46.0147 September 96.2476 99.9678 33. 4081 59.6948 36.7500 5.9099 12. 0430 96.5700 20.0000 27.9168 41.9254 October 89.1025 99.9944 36.5878 51.9966 36. 7500 5.6202 12.0690 96. 5700 20.0000 27. 3673 34.8968 November 88.9914 99.9913 39.1364 58. 8403 36.2283 6.1704 12. 0750 96. 5700 20. 0000 27. 9739 45.0027 December 82. 7064 99. 9470 39.0086 58. 5196 35. 7500 6. 2010 12. 0669 96. 5692 20. 0000 27. 9538 44.5487 Venezuela (M d C o e h l x l i i a n c r a a ) n (S C h ta a h e n i l n g ) a hai d ( C Y o h l u l i a n a r a n ) H K o o n n g g India Japan Java S S m t e e r t n a t i l t t e s s - Turkey Egypt January 19.2500 35. 6106 49.6186 35.5497 I 39.9497 36. 3102 49. 0905 40.1769 56.0259 47. 3035 499.2997 February. . 19. 2500 34. 3963 47.9616 34.2746 | 38. 2350 36. 2071 49.1295 40. 0791 56. 0006 46. 6955 498.5970 March 19. 2408 33. 8100 47.1132 33. 6009 j37. 2238 36.1138 49.3298 40.1365 55.8994 47.0823 498. 6789 April 19.1300 33.6670 46.9037 33.3822 ;37.1905 36.1163 49. 3661 40. 2350 55. 8744 47. 0542 498. 6854 May 19.1300 32. 0607 44. 6901 31.8181 | 35. 7697 36.0567 49.3809 40. 2385 55. 8892 46.9862 498.3372 June 18. 9748 26.5046 37. 0400 26.3800 !31.1427 35. 9971 49. 4070 40. 2292 55.9132 46.9356 498. 2290 July.. _ 19. 0000 26. 6238 36.9428 26.4839 ! 31.1799 36. 0598 49. 3597 40. 2565 55. 9408 47. 0019 498. 9320 August 18.8304 27.8666 38.5445 27.7580 32. 2054 36. 0417 49. 3853 40.3023 55.9482 47.1035 499.4600 September- 18. 5000 28. 7591 39. 6795 28. 5500 !32. 2015 35. 9899 49. 4077 40. 3068 56. 0320 47.1640 498. 5066 October 18. 5000 28. 2598 39. 0962 28. 0003 31.9163 36.0222 49.5896 40. 3188 56.1687 47.1369 498. 3123 November. 18. 5000 27.9918 38. 8392 27.8000 31.4542 35.9656 49.5987 40.2339 55.9461 47.1048 498.0464 December- 18. 5000 25. 7151 35. 6987 25. 6394 27.9966 35. 9305 49.6185 40. 2588 55.9322 47.1088 498. 0358 1931 January ! 18.5000 22.9351 31. 8404 22.9102 24. 2653 35.9344 49. 4426 40.2265 55.9309 47.0888 I497. 8443 February I 18.1364 20.8153 28.9578 20.8390 22.6673 35.9374 49.4054 40.1409 56. 0028 47.1255 498. 2255 March i 18.0000 22. 7936 31. 5986 22.7948 24. 5297 36.0805 49. 3656 40. 0904 56.0615 47.1404 498.2048 April j 16.9984 22. 5646 31. 0951 22. 4949 24. 3312 36.1028 49. 3601 40.1312 56. 0462 47.1323 498. 3359 May i 16.4332 22.0118 30. 2520 21. 8950 24. 0131 36.1423 49. 3813 40.1720 56. 0348 47.1764 498. 8149 June ! 17.1685 21. 4575 29. 5980 21. 4375 23. 8226 35.9986 49. 3740 40. 2331 56.0432 47. 2115 498. 8827 July ! 17. 3800 22. 4315 31. 0097 22. 4247 24. 7295 35.9865 49. 3550 40. 2558 56.0198 47.1254 497.9971 August ! 17. 2423 21. 4301 29. 7255 21. 3485 23.7830 35.9425 49. 3532 40. 3069 56.0044 47.1074 498.1291 September i 16.9952 22. 0696 30. 6604 21.9166 24.1853 33.9117 49. 3351 40. 3364 53. 5566 47.1988 464. 6467 October 16.6385 22. 8205 31. 8314 22. 7019 24. 6765 28. 6799 49. 2525 40.5026 j45.1250 47.4265 398.9979 November. 15.4130 24. 5833 34. 0732 24. 7246 26. 0124 27.9874 49.2968 40.2196 43.1386 December.. 15. 5000 23. 6010 32. 8054 23. 7323 24.8704 25.3612 43. 4644 40. 2192 39. 0313 I I 1 Beginning with August, quotations are for silver peso. » No quotations available Oct. 7-Dec. 1, inclusive. « Quotation for sol, which susperseded libra, on Mar. 27. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

JANUAKY, 1932 FEDERAL RESERVE BULLETIN 57 FOREIGN EXCHANGE RATES [Monthly averages of dally quotations; based on noon buying rates for cable transfers in New York. In cents per unit of foreign currency] 1931 1931 Par of Country Country Monetary unit ex- October I N0 hb v oe e rr m" De b c e e r m- ! change October No b v e e r m- De b c e e r m- EUROPE SOUTH AMERICA I Austria Schilling 14.07 13.9158 13. 9516 13.9460 !Argentina Peso ! 96.48 51.996C 58.8403 58.5196 Belgium Belga_ 13.90 13.9852 13. 9070 13.9039 iBolivia i B oliviano _ 36.50 36.7500 36. 2883 35. 7500 Bulgaria Lev .72 .7127 .7138 .7148 Brazil- _. Milreis 11.96 5. 6202 6.1704 6.2010 Czechoslovakia-. Crown 2.96 2. 9619 2.9625 2.9626 !Chile Peso | 12.17 12. 069C 12. 0750 12.0669 Denmark Krone 26.80 22. 0209 20. 6700 18.5875 IColombia .—do i 97.33 96. 5700 96. 5700 ! 96. 5692 England Pound 388. 9291 371. 9934 337.3707 'Ecuador * Sucre I 20.00 20. 0000 20. 0000 20.0000 Finland Markka 2.52 2. 3082 1. 9839 1.6938 'Peru i Sol. __j 28.00 27. 3673 27. 9739 27. 9538 France ._. Franc 3.92 3. 9383 3. 9201 3.9229 !Uruguay Peso... |103.42 34. 8968 45. 0027 44.5487 Germany Reichsmark.. 23.82 23. 2395 23. 6777 23.6192 jVenezuela i Bolivar _.j 19.30 16.6385|15. 4130 15. 5000 Greece— ... Drachma 1.30 1. 2883 1. 2879 1.2879 | Hungary Pengo 17.49 17.4640 17.4670 17.4580 i ASIA Italy -. Lira 5.26 5.1645 5.1548 5.1094 | Netherlands Florin 40.20 40.4256 40.1916 40.2338 iChina' Mexican dollar.. 23.91 22. 8205 5833 23. 6010 Norway Krone.. 26.80 22.0737 20.5163 18.4831 China'— Shanghai tael___ 32.96 31. 8314 0732 32.8054 Poland Zloty _ 11.22 11.1955 11.1903 11.1802 China»_ Yuan dollar 23.39 22. 7019 7246 23. 7323 Portugal Escudo 4.42 3. 9271 3. 6401 3. 2302 Hong Kong 3_._. Dollar. 23.74 24. 6765 0124 24.8704 Rumania Leu .60 .5953 . 5966 .5959 India Rupee 36.50 28. 6799 9874 25. 3612 Spain Peseta. 19.30 8. 9631 8. 6137 8.3992 Japan Yen — 49.85 49. 2525 2968 43.4644 Sweden Krona 26.80 23.1140 20. 7378 18.7098 Java* _-.. Florin 40.20 40. 5026 2196 40.2192 Switzerland Franc I 19.30 19. 6009 19. 4632 19.4805 Straits Settle- Singapore dol- 56.78 45.1250 1386 39. 0313 U.S. S. R.i Chervonetz. 1514.60 2 515.0000 2 515.0000 2515. 0000 ments. lar. Yugoslavia Dinar 1.76 1. 7734 1. 7856 1. 7796 Turkey Turkish pound..439.65 47.4265 NORTH AMERICA AFRICA Canada Dollar _Jl00.00 89.1025 88. 9914 | 82. 7064 Egypt.. Egyptian pound.494.31 Cuba - Peso J100.00 99. 9944 99.9913 ! 99.9470 Mexico... Silver peso 49.85 36. 5878 39.1364 39. 0086 I i Averages based on daily quotations of closing rates as published by New York Journal of Commerce. * Chervonetz quotations nominal. 1 Silver currency. The figure given for parity, represents gold value of unit in December, 1931, computed by multiplying silver content of unit by New York average price of silver for December, 1931, which was $0.29013 per fine ounce. BANK FOR INTERNATIONAL SETTLEMENTS [In thousands of dollars converted from Swiss francs at par: 1 Swiss franc=$0.1930] 1931 1930 ! 1931 Resources | Liabilities Nov. 30 Oct. 31 Nov. 30 j Nov. 30 Oct. 31 Cash on hand and on current account with Short-term deposits: banks 2,717 1,914 Central banks for own account- Demand funds at interest 29, 228 32, 605 13, 779 Demand 62,981 73,003 19, 242 Rediscountable bills and acceptances (at Timecost): Not exceeding 3 months. _. 35, 552 21,006 92,996 Commercial bills and bankers' accept- Between 3 and 6 months.. 3,002 ances 69, 026 57,304 46, 317 Treasury bills 27,942 27,694 32,958 Total _ 98,533 94,009 I 115,240 Total. 96, 968 84, 998 79, 275 Central banks for account of others- Demand 19,400 26, 608 37,293 Time funds at interest: Time- Not exceeding 3 months.. 48,027 49,121 202,806 Not exceeding 3 months 11,022 6,020 128, 351 Between 3 and 6 months.. 25, 941 Total 30,422 32, 628 165,644 Total -| 48, 027 49,121 228, 747 Other depositors— ,| Demand • 655 695 23 Sundry bills and investments: j! Long-term deposits: Maturing within 6 months 27,730 31,320 ! j Annuity trust account _ 29,677 29,677 29,818 Between 6 months and 1 year.. 6,529 6, 529 || German Government deposit 14, 839 14, 839 15, 440 Over 1 year 180 2,057 11 French Government guaranty fund.. _ 13, 249 13, 249 13, 255 Total 34,439 39,907 i 36, 869I] Total 57, 765 57, 765 58, 514 Other resources 2,332 2,471 2,616 | Capital paid in 20, 941 20, 941 19,795 ! Reserves: !] Legal reserve fund 108 108 I Dividend reserve fund 211 211 Ij General reserve fund. 422 422 j| Other liabilities 4,654 4,236 2,896 Total resources 213,710 211, 016 362,112 I Total liabilities.. 213, 710 211,016 362,112 i Composed of $36,767,000 short-term investments not exceeding 2 years and $101,000 of investments exceeding 2 years. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

58 FEDERAL RESEEVE BULLETIN JANUARY, 1932 CENTRAL BANKS [For explanation of these tables see BULLETIN for February, 1931, pp. 81-83] __ Resources of banking department Liabilities of banking department Gold (in Bank of England j | m d i e s e p s n u a t e r ) t - i C C o a in sh res — e N rv o e t s e s DD ad iiss v a cc a n oo n d uu c nn e tt s ss ob e t c ie u s ri . — - I i ci N r t c io o u n t l e a- Bankers' D P e u po b s li i c ts her l O ia ti t b e h i s e li r - Millions of pounds sterling: 1930—June 25 _._. 156.9 58.4 15.9 64.2 358.5 63.8 21.5 36.1 17.9 July 30 152.3 1.0 43.9 6.7 74.0 ! 368.4 61.0 9.1 37.4 18.1 Aug. 27 154.8 1.0 54.0 6.5 71.3 360.9 62.6 18.2 33.8 18.2 Sept. 24__ _. 156.3 1.1 60.5 5.7 62.6 355.8 64.2 13.3 34.2 18.3 Oct. 29 .... 159.5 1.2 63.9 4.2 60.0 355.6 55.7 21.0 j 35.0 17.7 Nov. 26 156.6 1.0 65.4 6.1 56.8 351.1 55.9 18.9 36.8 17.8 Dec. 31 147.6 .6 38.8 49.0 104.7 368.8 132.4 6.6 I 36.2 18.0 1931—Jan. 28 .... 139.5 .7 52.7 9.7 62.9 346.8 55.2 19.4 i 33.4 18.1 Feb. 25 140.8 .8 53.2 8.5 64.4 347.7 59.1 16.2 ! 33.3 18.2 Mar. 25 143.6 .9 54.8 11.4 52.1 348.8 57.7 9.5 | 33.7 18.3 Apr. 29 146.3 .9 56.5 7.2 56.7 349.8 48.9 17.7 37.0 17.7 May 27 151.0 1.1 56.2 6.8 59.8 354.9 54.8 17.4 33.8 17.8 June 24 162.9 1.1 70.1 9.6 57.5 352.8 61.6 25.2 33.5 17.9 July 29 132.0 1.3 32.7 9.7 79.2 359. 4 55.8 15.2 33.7 18.1 Aug. 26 133.3 1.3 58.0 9.3 78.2 350.3 53.6 26.3 48.7 18.2 Sept. 30 134.8 1.3 52.6 14.8 94.9 357.2 62.6 30.1 52.6 18.3 Oct. 28._ 135.7 1.3 54.6 10.5 84.6 356.0 63.5 17.3 52.6 17.7 Nov. 25 120.7 1.0 41.3 12.7 87.8 354.4 59.8 27.0 38.1 17.8 120.7 31.6 27.3 133. 0 364.2 126.4 7.7 40.3 18.0 Resources Liabilities Deposits Bank of France e F x o ch re a i n g g n e Do b m il e ls s tic j Se lo c a u n ri s ty s N ec e u g b r o l i e t t i i e a s - * a O s t s h e e ts r ci N r ti c o o u n t l e a- l O ia t t i b e h i s e li r - Other Millions of francs: 1930—June 27.. 44,052 25, 633 6,292 I 2,693 5,395 6,040 72, 594 4,938 10,420 2,152 July 25.. 45,283 26,083 6,228 j 2,682 5,395 6,075 72,110 9,132 8,363 2,142 Aug. 29.. 47,242 25,602 6,469 I 2,731 5,304 6,379 73, 677 10,109 7,734 2,207 Sept. 26.. 48, 431 25, 594 6,188 i 2,796 5,304 6,228 73,053 10, 509 8,780 2,200 Oct. 30.. 50,807 25,616 7,104 I 2,770 5,304 6,979 74, 787 13, 089 8,378 2,327 Nov. 28.. 51,967 25,897 8, 777 i 2,868 5,304 6,687 75,951 13,354 9,833 2,362 Dec. 26 _. 53, 578 26,179 8,429 | 2,901 5,304 76,436 12, 624 11, 698 2,241 1931—3 an. 30... 55,510 ! 26,323 9,463 I 2,866 5,199 78, 559 13,844 11, 659 2,198 Feb. 27.. 55,924 26,316 8,250 2,801 5,199 78,947 13,339 10,963 2,221 Mar. 27.. 56,116 26,307 7,084 2,858 5,082 7,026 77,864 11, 773 12, 577 2,260 Apr. 24.. 55,616 26,305 6,502 2,795 5,082 7,134 77,231 11,680 12, 062 2,462 May 29.. 55,634 26,160 6,190 2,806 5,082 7,316 78,185 9,940 12, 669 2,394 June 26. _ 56,426 i 26,209 5,576 2,779 5,082 6,807 76, 927 8,513 15,187 2,250 July 31.. 58,407 I 26, 242 4,564 2,860 5,065 8,958 79,862 9,303 14, 736 2,195 Aug. 28.. 58,563 27,611 5,820 2, 729 5,065 8,193 78, 635 9,470 17,649 2,227 Sept. 25.. 59,346 25,194 5,880 2,754 5,065 8,099 78,173 7,357 18, 542 2,266 Oct. 30.. 64,648 27,600 8,809 2,712 * 065 8,428 83,639 8,227 22,954 2,441 Nov» 27.. 67,844 24,273 7,766 2,731 5,065 8,647 82,543 7,170 24,171 2,442 Deci 31 P. 68,863 21,501 7,389 2,729 7,157 (3) 85,724 22,183 Resources Liabilities Reichsbank Gold i e n R x e c s f h e o a r r n v e g i e g e s n b c il h O ls e t c h ( k a e s r n ) d Se lo c a u n ri s ty Securities Other ci N r ti c o o u n t l e a- Deposits l O ia t b h i e li r - Millions of reichsmarks: 1930—June 30 _ 2,619 459 I 1,777 186 101 736 4,685 492 708 July 31 2,619 201 1,759 133 101 839 4,638 398 714 Aug. 30 2,619 1,730 212 103 809 4,707 416 719 Sept. 30 2,479 171 6 2,097 290 103 4,744 472 768 Oct. 31 - 2,180 198 24 2,301 318 102 4,675 383 751 Nov. 30 - 2,180 525 106 2,003 231 102 643 4,601 381 808 Dec. 31 2,216 469 206 2,366 256 102 638 4,778 652 822 1931—Jan. 31 2,244 199 86 1,942 174 103 4,383 267 831 Feb. 28.: 2,285 166 76 1,979 301 102 676 4,428 325 832 Mar. 31 2,323 188 142 1,951 274 103 4,456 387 ! 775 Apr. 30 2,368 157 45 1,816 287 103 4,340 355 ! 749 May 30 2,390 186 25 1,791 167 103 721 4,299 353 731 June 30- 1,421 300 74 2, 579 355 103 936 4,295 398 i 1,074 July 31 - 1,363 246 249 3,273 347 103 958 4,454 834 I 1,251 Aug. 31 1,366 356 38 3,101 208 103 972 4,384 509 I 1,251 Sept. 30 1,301 139 124 3,545 301 103 1,016 4, 609 613 1,306 Oct. 31 1,145 131 4,010 240 103 963 4,746 518 1,326 Nov. 30 1,005 170 56 3,901 254 103 980 4,641 506 ! 1,323 Dec* 31 P 172 98 4,144 245 161 1,065 4,776 755 ! 1,338 1 In addition the issue department holds Government and other securities and silver coin as cover for the fiduciary issue, which is fixed by law at £260,000,000. Since Aug. 1,1931, however, a temporary increase of £15,000,000 in the fiduciary issue (and securities held as cover) has been permitted. 1 Issued by the independent office for retirement of public debt (caisse autonome d'amortissement). • Figures not yet available. p Preliminary. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

59 JANUARY, 1932 FEDERAL RESERVE BULLETIN CENTRAL BANKS—Continued [Figures are for last report date of month] 1931 1930 1931 1930 'Novem- Oeto- Sep- Novem-1 i ISTovem- Octo- ' Sep- Novem- I ber ber tember ber 11 ber ber tember ber National Bank of Albania (thousands: Central Bank of China—Continued. of Albanian francs): ! Deposits—Continued Gold - ; 4,088 I 3,080 1, 956 Bank 11,024 j 29,865 8,243 Foreign exchange . 1. 26,156 I 25,216 26,104 Other _ ___. 5,072 i (5,485 3,149 Loans and discounts j. 4,568 4,429 3,223 Other liabilities ._.. 30,469 ! 32,085 36,869 Other assets _ ___ :. ^,244 7,943 7,317 Bank of the Republic of Colombia Note circulation !. 12, 223 12,619 13, 503 (thousands of pesos): Demand deposits, _• 15, 665 14,119 11,405 Gold at home _ 10,684 10, 997 8,108 18, 250 Other liabilities __ _.j. 14,168 13, 930 | 13,691 Gold abroad 4,634 4, 558 6,590 9,171 Commonwealth Bank of Australia ' Loans to member banks 18,771 19, 514 19, 396 11,396 (thousands of pounds sterling): j Note circulation 19,711 19,165 18,730 25, 540 Issue department— j Deposits 11,330 9,027 7,097 6,101 Gold coin and bullion i 10, 500 10,500 10,500 I 15,386 National Bank of Czechoslovakia Securities J 41,248 41,498 41,498 | 5,716 (millions of Czechoslovak crowns): Banking department- Gold 1,567 1,552 ' 1,520 1,546 Coin, bullion, and cash ; 1,035 943 I 1,390 Foreign balances and currency... 1,146 1,128 ' 1,177 2,344 Money at short call in Lon- i Loans and advances 1,656 1,765 ! 1,722 180 don i 8,486 7,198 6, 400 '4,774 Assets of banking office in liqui- Loans and discounts j 18, 901 22,884 26, 804 13, 500 dation 299 299 | 300 326 Securities I 17, 684 17,434 17, 261 21,683 Note circulation.._ __ 7,166 7,218 j 7,172 7,278 Deposits i 47,810 49,712 51,677 43,050 Deposits 194 238 i 309 382 Bank notes in circulation _.| 45, 778 46,395 47,344 39,480 Danish National Bank (millions of Austrian National Bank (millions of i kroner): schillings): Gold. _ _ 144 164 164 172 Gold 190 190 190 214 Foreign bills, etc 39 45 55 93 Foreign exchange of the reserve.. 116 112 115 200 Loans and discounts 155 151 115 76 Other foreign exchange 41 43 87 491 Note circulation..„ 340 334 354 Domestic bills 820 767 130 Deposits 49 36 30 Government debt 96 96 101 Bank of Danzig (thousands of Danzig Note circulation 1,130 1,134 1,111 1,042 gulden): Deposits 140 91 74 97 Gold _ 21,830 21,784 15, 706 118 National Bank of Belgium (millions Foreign exchange of the reserve.. 21,533 15,079 15, 593 16,337 of belgas): Other foreign exchange 6,403 11, 776 10, 474 15,099 Gold - 2,558 2,567 2,492 1,297 Loans and discounts 9,457 10, 231 11,446 18, 865 Foreign bills and balances in gold. 0 0 0 896 Note circulation 42, 747 43,827 42,133 37, 345 Domestic and foreign bills 936 957 859 748 Deposits _. 6,111 5,972 3,556 1,301 Loans to State 290 290 290 312 Central Bank of Ecuador (thousands Note circulation 3,550 3,602 3,457 3,157 of sucres): Deposits 334 313 260 139 Gold 5,653 5,666 5,622 Central Bank of Bolivia (thousands Foreign exchange 11,649 15,044 22,354 of bolivianos): Loans and discounts 14, 400 15,305 14,619 Gold - 2,871 2,864 2,759 Note circulation 20, 220 20, 473 23,717 Foreign exchange 23, 511 23,233 37,413 Deposits 9,684 12,777 13,847 Loans and discounts _ 22,414 22,045 22,497 National Bank of Egypt i (thousands Note circulation 26,183 26,298 32,479 of Egyptian pounds): Deposits _ 11,098 9,093 14, 578 Gold 4,225 4,224 4,043 Bank of Brazil (millions of milreis): Foreign exchange 1,217 1,099 2,508 Gold.. - _ 41 British Government securities. _. 15, 470 15,368 18,160 Currency 274 247 221 265 Loans and discounts 9,321 8,331 8,406 C orrespondents abroad 75 51 42 144 Egyptian Government securities. 14, 996 14,729 14, 382 Loans and discounts _ 1,618 1,611 1,660 1,318 Other assets 3,690 3,846 3, 685 Securities _ 145 146 152 123 Note circulation 19,543 19,264 21,900 Note circulation 170 170 170 170 Deposits- Deposits 1,583 1,536 1,481 1,237 Government _ _. 5,102 4,424 5,567 National Bank of Bulgaria (millions Other 16,142 15,890 15,091 of leva): Other liabilities 8,133 8,019 N G e o t l d foreign exchange.— 1,5 5 1 1 0 1,5 5 1 3 0 1. 5 7 0 7 9 I i 1, 4 4 0 4 4 8 Ba k n r k o on o i) f : Estonia (thousands of Total foreign exchange._ 478 455 420 : 1,135 Gold _ 6, 552 6, 549 6,547 6,541 Loans and discounts 881 813 861 ! 668 Net foreign exchange 13,970 | 15,927 17,253 16,730 Government obligations _. 3,031 3,030 3,051 : 3,195 Loans and discounts 23,166 j 23, 558 20,614 26,194 Note circulation 2,981 3,185 3,335 ' 3,562 Note circulation 37,124 j 38,094 34,362 33,452 Other sight liabilities _. 1,460 1,274 1,233 ! 1,459 Deposits— Central Bank of Chile (millions of Government 4,893 ! 5,673 5,117 9,782 pesos): Bankers.. __ 3,429 j 3,101 5,434 4,069 Gold at home 67 67 64 62 Other _ 2,071 ! 1,961 1,996 1,348 Foreign exchange 131 138 144 286 Bank of Finland (millions of Finnish Loans and discounts _. 208 199 179 marks): Note circulation 311 301 292 298 Gold 304 305 301 302 Ce o n f D t G S Y r i a e o i l u s l p v l a d e o h B n r s e a i l d t d n s o k l a l o a g f r a s i C ) n : h st i na w h i i ( c t h h o r u e s s a e n r d v s e 79 4 3 6 , , 1 4 6 0 8 0 I ' 4 1 8 5 , , 5 2 4 8 2 1 3 3 0 , ,4 3 5 6 7 4 5 4 B F D N D o a o o e c r l m m r t e a e e i n e a d g c c s n i n i e t t d r s i s c c b l u i i b l l a l a a i s b l b t l i i r s l o o i n t a i d e s _ and _ foreign _. 1 1 , , 3 2 1 2 2 0 0 1 0 3 1 5 7 3 7 1, 9 3 2 2 1 3 1 6 6 6 6 3 5 4 4 1,2 4 7 1 0 6 0 3 8 1 2 7 1 5 1, 8 2 2 7 2 1 1 1 6 2 2 5 2 0 3 Due from banks abroad 18,954! 8,485 3,374 Bank of Greece(millions of drachmas): Due from domestic banks 23, 241i 58,055 33,629 Gold 491 528 Loans and discounts 65,210 j 66,652 31,619 Net foreign exchange in reserve.. 1,281 1,510 1,865 2,665 Securities _ 13,646! 14,727 2,954 Total foreign exchange 1,480 1,713 2,503 3,343 Other assets _ 8,678 I 11,959 17,451 Loans and discounts 523 443 454 315 Note circulation _ 39, 442i 43,576 21, 982 Government obligations 3,128 3,148 3,168 3,389 Dep G o o si v t e s r - nment 93,290 '112,690 j 52,623 N O o th te e r c s ir ig c h u t l a l t i i a o b n i . lities 3, 8 9 9 8 1 7 4, 7 2 7 9 7 7 4,4 6 2 3 2 5 4 1 , , 7 8 6 4 1 1 1 Items for issue and banking departments consolidated. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

60 FEDERAL RESERVE BULLETIN JANUARY, 1932 CENTRAL BANKS—Continued [Figures are for last report date of month] 1931 1930 1931 1930 No- Sep- No- No- November October tember vember vember October temb'er vember Central Bank of Guatemala (thou- Bank of Poland (millions of zlotys)— sands of quetzales): Continued Gold coin 2,228 2,246 2,619 2,647 Foreign exchange of the reserve.. 84 78 I 116 301 Balances abroad __. 307 637 435 1,578 Other foreign exchange 126 132 | 134 125 Loans and discounts _ 5,998 5,907 5,810 6,342 Loans and discounts ___ 751 765 i 737 755 Other assets 1,560 1,660 1,295 971 Note circulation 1,211 1,254 1,225 1,332 Note circulation— 6,351 6,570 6,122 6,232 Current account of the treasury _. 37 12 I 24 83 Demand deposits 1,170 1,278 1,377 1,563 Other current accounts 172 153 ! 174 143 Other deposits 77 101 145 514 National Bank of Rumania (millions Other liabilities ._. 2,496 2,501 2,514 3,230 of lei): National Bank of Hungary (millions Gold at home 5,874 5,842 5,816 5,356 of peni Gold abroad 3,114 3,114 3,114 3,919 105 105 105 163 Foreign exchange of the reserve._ 1, 721 1,738 1,554 1,736 Foreign bills, etc 12 16 7 27 Other foreign exchange 34 20 14 99 Loans and discounts. 421 422 385 253 Loans and discounts 13, 962 13, 727 12,261 8,011 Advances to treasury 58 58 59 67 State debt 5, 237 5,337 5,485 4,699 Other assets _. 37 41 44 104 Note circulation. _ 23, 519 23,243 21,861 18,726 Note circulation.- 392 435 383 439 Demand deposits 5,966 6,027 6,160 6,713 D M e is p c o e s l i l t a s n eous liabili _ ties 1 6 4 3 8 1 6 1 1 4 1 6 1 5 9 1 3 1 2 6 So a u n t d h s A o f f r i S c o a u n th R e A s f e r r ic v a e n B p a o n u k n ( d t s h ) o : us- Bank T L P G O C u o o r o o th e b a t l f a d d e n l I l i r s i t c a t a n s d a t l d o e y n a h e t p d e n o p o ( d m o m d c s s i i i e b i r t i s l s t c a c l s u i l o o a l u n a n n t s c i t e o s o s n f a l b ir r e o ) a : d 1 2 5 4 5 1 , , , , , 3 1 6 9 3 2 0 6 2 1 0 5 9 1 6 0 0 4 1 2 5 5 4 1 , , , , , 3 5 2 5 4 4 5 5 0 4 5 7 0 1 1 1 0 0 1 5 4 2 4 1 , , , , 4 3 8 9 6 4 3 4 0 3 1 8 0 8 5 7 4 1 1 5 4 4 1 5 , , , , , 3 2 5 6 6 3 0 9 0 0 7 5 0 6 0 9 0 0 I I j j D N D G Fo o o o e r l m t p e d e G o i e g c s o s n i t i v r i t c c b e s u r - i b n l l l i a m s l t l . i s e o n n t . _ _ _ 7 8 3 1, , , , 0 7 7 6 6 0 5 2 7 0 7 5 9 2 i ! j 6 4 8 1, , , , 1 5 3 9 8 7 4 8 9 0 0 0 6 i i i 6 6 6 1, , , , 5 2 8 6 1 4 4 5 9 3 1 1 2 4 3 6 8 7 1 , , , , 2 4 1 7 9 6 4 6 6 0 3 5 2 5 2 Bank of Japan (millions of yen): Bank 4,115 4,300 4,809 4,530 Gold 558 818 820 Other 501 192 299 205 Advances and discounts __ 931 702 768 Bank of Spain (millions of pesetas): Government bonds 118 118 117 118 Gold... 2,247 2,247 2,277 2,458 Notes issued 1,087 1,093 989 1,191 Silver 526 530 559 706 Total deposits. _ 519 459 621 635 Balances abroad 282 286 255 110 Bank of Java (millions of florins): Loans and discounts 3,160 3,220 3,073 2,090 Gold 132 132 126 139 Note circulation __ 4,954 5,073 5,025 4,642 Foreign bills _._ 5 3 4 31 Deposits. 1,135 1,104 1,054 841 Loans and discounts 50 51 52 52 Bank of Sweden (millions of kronor): Note circulation _ 234 239 238 255 Gold 206 213 199 242 Deposits _ 28 27 30 41 Foreign bills, etc 31 28 36 401 Bank of Latvia (millions of lats): Loans and discounts 553 528 574 144 Gold. 32 32 24 24 Note circulation 576 579 594 588 Foreign exchange reserve 13 14 22 39 Deposits... 119 102 124 119 Bills 79 81 80 87 Swiss National Bank (millions of Loans 59 59 60 61 francs): Note circulation.- 41 42 44 50 Gold 2,201 i 2,188 ! 1,699 672 Government deposits _. 58 58 61 85 Foreign balances and bills 84 105 i 349 353 Other deposits _ 87 85 81 74 Loans and discounts 135 ! 92 124 67 Bank of Lithuania (millions of litas): Note circulation 1,477 I 1,498 1,462 968 Gold 48 40 Demand deposits 953 ! 716 199 Foreign currency 40 42 55 Loans and discounts 118 124 118 100 Bank of the Republic of Uruguay Note circulation _. 113 121 118 116 (thousands of pesos): Deposits 84 102 Gold .i 51,215 52,665 58,383 Netherlands Bank (millions of Loans and discounts J102,820 ! 104,778 109,920 florins): Other assets .1 35,953 35,540 32, 534 Gold.. 901 702 426 Note circulation .j 76,124 74,359 70,715 Foreign bills 66 100 219 249 Deposits— Loans and discounts 219 264 221 135 Demand i 35,278 I 39,642 42,387 Note circulation 1,051 1,037 1,035 813 Time 39,040 40,149 45,217 Deposits _... 199 220 187 42 Judicial and Administrative- 3,538 3,543 3,649 Bank of Norway (millions of kroner): Other liabilities J 36,008 35,290 38,868 Gold 158 172 145 146 State Bank of U. S. S. R. (note-issu- Foreign balances and bills _. 8 11 36 31 ing department; thousands of Domestic credits 236 230 218 200 chervontsi): Note circulation- 288 295 302 303 Gold _ _ 61, 257 60,025 ! 56,931 48,407 Foreign deposits 2 2 4 1 Other precious metals 2,224 2,226 ; 2,238 2,472 Total deposits.- __.. 81 58 Foreign exchange 4,768 4,808 5,259 4,472 Central Reserve Bank of Peru Note circulation 267,321 259,633 252,715 208,012 (thousands of soles) : National Bank of the Kingdom of Gold -._ 59, 347 «44, 745 62,573 Yugoslavia (millions of dinars): Foreign exchange 2,861 «20, 079 7,734 Gold. 1,758 1,757 ! 1,657 1,078 Bills __ 14, 317«15, 545 22,318 Foreign exchange 491 657 i 550 162 Note circulation-. 56, 641"57, 676 64,862 Loans and discounts _. 2,161 2, 088 ! 1,819 1,557 Deposits _ 3,219 « 7,143 3,963 Advances to State.. 2,100 2,325 i 2,294 2,997 Bank of Poland (millions of zlotys): Note circulation 5,239 5,302 i 5,197 5,404 Gold at home. _. 486 486 485 Other sight liabilities 552 871 i 342 Gold abroad 111 108 82 77 « Corrected. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

JANUARY, 1932 FEDERAL RESERVE BULLETIN 61 GOVERNMENT NOTE ISSUES AND RESERVES [Figures are for last report date of month] 1930 1931 1930 Nov. Oct. I Sept. Nov. Argentine Conversion Office (millions of Canadian Minister of Finance (millions gold pesos): of dollars): Gold _... Gold reserve against Dominion notes. - 112 Notes issued 1 _ Advances to banks under finance act__ Irish Currency Commission (thousands Dominion notesof pounds sterling): Issued 197 158 150 207 Legal tender note fund- Outside chartered bank holdings.. 29 30 28 29 British legal tender and bank Indian Government (millions of rupees): balances. - - Gold standard reserve— British securities Gold _ 399 399 401 29 Notes issued. Foreign exchange 135 134 132 505 Consolidated bank notes 2— Paper currency reserve- Issued Gold 45 43 42 Deemed such under sec. 60 (4) Silver coin and bullion 1,294 1,316 1,325 1,227 of currency act, 1^27 Other assets 285 239 120 99 Notes issued 1,624 1,598 1,487 1,648 ] 1 Includes a small quantity of subsidiary coin, amounting on Nov. 30, 1931, to 15,000,000 pesos. ^The figures of consolidated bank notes issued represent daily averages for the 4 weeks ended Nov. 14, Oct. 17, and Sept. 19, 1931, and Nov. 15, 1930. The figures for notes deemed to be consolidated bank notes are as of the close of business on these dates. COMMERCIAL BANKS - 1930 1931 Country Nov. Dec. Jan. Feb. Mar. Apr. May June July Aug. Sept. Oct. Nov. Argentina (millions of gold pesos): Bank of the Nation- Gold 1 1 1 1 2 1 1 1 1 1 1 1 Other cash 120 99 98 83 85 125 118 108 99 94 91 90 Loans and discounts 612 624 610 606 626 640 633 642 655 656 681 708 Deposits -- . . -. 730 729 713 706 695 712 690 706 680 662 663 661 Other banks in Buenos Aires- Gold — 9 9 9 Q 9 9 9 9 9 9 7 Other cash 189 206 202 209 173 172 180 202 194 199 190 186 Loans and discounts 906 918 913 910 912 910 885 871 857 843 852 847 Deposits 1,032 1,047 1,045 1,043 1,020 997 996 990 971 971 966 947 Canada (millions of Canadian dollars): Assets entirely in Canada- Cash in vaultl 203 174 158 151 148 157 156 150 147 147 157 159 201 Cash in central gold reserves... 37 33 22 25 27 26 29 28 26 28 24 27 25 Security loans 212 205 192 186 175 181 187 182 163 159 167 159 157 Other current loans 1,184 1,149 1,141 1,116 1,115 1,130 1,139 1,127 1,126 1,127 1,137 1,141 1,102 Security loans abroad 193 146 120 132 137 117 98 108 105 110 "90 91 113 Securities 551 604 593 654 649 651 669 695 694 701 678 696 * 719 Liabilities entirely in Canada- Notes in circulation 145 133 129 131 153 124 129 128 126 126 128 140 131 Individual demand deposits 605 642 557 543 579 596 580 601 561 568 594 581 617 Individual time deposits 1,439 1,426 1,429 1,436 1,445 1,453 1,456 1,450 1,451 1,461 1,456 1,462 1,396 England (millions of pounds sterling): Cash in vault and at bank 189 204 195 187 181 175 176 184 181 177 171 173 170 Money at call and short notice 137 142 143 115 112 115 129 131 128 112 106 113 108 A dvances and discounts 1,230 1,234 1,237 1,208 1,159 1,134 1,141 1,172 1,178 1,156 1,132 1,131 1,125 Investments 265 269 281 293 295 292 274 272 283 286 288 288 284 Deposits 1,801 1,839 1,836 1,782 1,726 1,698 1,700 1,744 1,750 1,708 1,675 1,688 1,670 France (millions of francs): Bills and national-defense bonds 20, 564 20, 502 21,081 21,098 21, 363 21, 869 22,930 22, 507 20,919 21,153 20, 242 Loans and advances 11,283 11,392 10,764 11,326 11,232 11,156 10,762 10,342 9,898 9,808 10, 076 Demand deposits 35, 767 35, 302 35,090 35, 456 36,106 36,971 37,861 37,938 36,642 36,991 36,137 Time deposits 1 605 1 397 1 521 1 656 1 669 1,623 1,601 1 564 1,539 1 545 1 429 Germany (millions of reichsmarks): Bilis and treasury notes _ _ . 2,453 2,573 2,497 2,532 2,529 2,548 1,914 1,280 1,500 1,509 1,406 1,431 Due from other banks _ 1,017 1,011 946 956 981 857 686 546 514 465 373 345 Miscellaneous loans 8,534 8,192 8,225 8,144 8,021 7,818 7,699 7,337 7,115 6,884 6,837 6,748 Deposits 11, 077 11,130 10, 729 10,778 10,683 10, 395 9,277 8,167 8,060 7,873 7,500 7,390 Acceptances 670 701 657 630 600 582 816 874 840 818 891 910 Japan (millions of yen): Cash on hand 272 281 275 277 274 332 361 274 134 217 197 126 146 Loans 2,206 2,225 2,220 2,217 2,176 2,184 2,156 2,166 2,169 2,140 2,146 2,171 2,208 Deposits . . _ 2,076 2,100 2,009 2,142 2,150 2,161 2,181 2,233 2,151 2,122 2,102 2,066 2,059 * Gold, Dominion notes, and subsidiary coin. « Corrected. NOTE.—Banks included are as follows: Canada—chartered banks; England—nine London clearing banks; France—four commercial banks; Germany—six Berlin banks; Japan—Tokyo banks. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

62 FEDERAL BESEBVE BULLETIN JANUARY, 1932 DISCOUNT RATES OF CENTRAL BANKS Date effective • ! i o B l f a a E n n d n k g - j F B ra a o n n f c k e G R b e e a r i m n ch k a s n -j ' i B It o a a f n ly k N B la e a n th n d e k s r-N S B a w t a a i n o l is k n s - Country j i | R J a a t n e . ; ; I s n i n e c ff e e - ct Country R Ja a n t . e ! ! ! I s n i n e c f e f — ect A A In p p e r r f . . f e 3 2 c 4 t Apr. 1,1930. i : | . . A B A B o e u lb l l s g i a t v i r n u i i a i a m a 2 8 7 3 4 i N A A Ju u u o l g g y v . . . 1 2 1 1 3 6 , , , , 1 1 1 1 9 9 9 9 3 3 3 3 0 1 1 0 J J L L a a i a v p t t h a a v u n ia ania 4 6 6 . H 57 ! I A M N O p o c a t r v r . . . . 1 4 1 1 1 , , , , 1 1 1 1 9 9 9 9 3 3 3 5 1 0 0 0 Mayl I Bulgaria QW Sept. 29,1931 May 2 1. Chile.. 6H Oct. 6,1931 Norway 6 Oct. 19,1931 May 19 ;. Colombia 7 | Sept. 18,1930 Peru Sept. 1,1980 May 20 j. Czechoslo- Poland 7H Oct. 3,1930 June 21 :. vakia 6 ! Dec. 22,1931 Portugal Aug. 10,1931 July 10 i. J J J O a a a c n n n t . . . . 2 3 2 9 , 2 4 1931 L , | . . E E D D s c a e t u n n o a z m n i d g i a o a _ r r k 1 5 6 6 0 k N S S M e e o a p p v r t t . . . . 2 2 1 4 1 6 3 , , , , 1 1 1 1 9 9 9 9 3 3 3 3 1 1 1 1 S S R p o u a u m i t n h a n A ia frica. J N A u o p ly r v . . 1 8 1 3 , , , 1 1 1 9 9 9 8 3 3 1 1 1 May 14 Finland ! 8 Oct. 24,1931 Sweden Oct. 19,1931 May 16 Greece | 11 Oct. 29,1931 U. S. S. R... Mar. 22,1927 June 13 7 Hungary 8 Sept. 11,1931 Yugoslavia- 7H j July 20,1931 July 16 10 India.. ! 8 Sept. 22,1931 July 23 July 30 Aug. 1 15 Changes since Dec. 1,1931: Czechoslovakia—Dec. 22, down from Aug. 12 10 to 6 per cent; Germany—Dec. 10, down from 8 to 7 per cent. Sept. 2 8 Sept. 21 Sept. 28 Sept. 29 Oct. 10 2*4. Dec. 10 In effect Jan 1, 1932. 7 3 MONEY RATES IN FOREIGN COUNTRIES England (London) Germany (Berlin) Netherlands (Amster- | Switzerdam) i land Month 3 B a a a m c n n c c o k e e n p e s t , t r h - s s ' T m b re i o l a l n s s t , u h 3 r s y Da m y- o t n o e - y day o a B n l l a o d n w e k p a e o n r s c s i e ' ts d P is r r c i a v o te a u t n e t M 1 o m ne o y n t f h o r I j Da m y o -t n o e - y day d P is r r c i a v o te a u t n e t M 1 o m ne o y n t f h or d P i r s r i c a v o t a e u t n e t 1930— November 2.18 2.15 2.01 4.79 6.51 5.48 .31 1.29 1.16 December 2.30 2.34 1.60 4.82 7.24 6.54 .39 1.86 1.18 1931—January 2.25 2.24 1.74 4.75 6.64 4.93 .38 1.55 1.17 February 2.56 2.37 2.29 4.88 6.31 5.49 L.12 1.05 1.00 March 2,60 2.56 ! 2.20 4.76 6.17 5.00 L. 09 1.04 .99 April 2.58 2.57 ! 2.17 4.65 5.87 6.67 .60 1.61 1.08 May 2.24 2.21 ! 1.87 4.65 5.83 5.38 .39 1.55 1.12 June 2.09 2.10 I 1.64 6.05 7.05 6.74 .05 1.07 1.12 July 2.58 2.44 2.05 17.00 18.98 18.89 .53 1.40 1.55 August.- 4.28 4.21 \ 3.59 »8.92 »9.18 8 9.15 .30 1.22 1.98 • September 4.74 4. 67 i 4.04 7.99 9.18 9.15 1.30 1.21 1.80 October.. 5.68 5.46 ; 4.36 8.00 9.84 9.21 2.76 3.07 1. 90 November 5.75 5.55 I 4.96 8.00 9.31 8.69 1.59 1.72 1.77 I I (B B r e u lg s i s u e m ls ) ! ( F P r a an ri c s e ) (M Ita il l a y n) Austria (Vienna) Hungary S ( h S w o t e o lm d c e k ) n - Japan (Tokyo) Month d P is r c iv o a u t n e t d P is ri c v o a u t n e t d P is ri c v o a u t n e t i \ d P is r c iv o a u t n e t M f o o n rl e y | co P m ri m m e e r - j 'l Ti Z t ™ 2 d rate rate rate j rate month i cial paper ; Iuoney months u m j overnight 1930—November 2.05 2.00 5.43 %- 7W H5 3^-6H! 5.48-5.66 i 3.65 December 2.34 2.03 5.50 ] <n- 7H' 4J4-5 5.48-5.66 ! 3.65 1931—January 2.38 1.89 5. 50 i <%- 7%\ 4H-5H 5.48-5.66 i 3.10 February • 2.31 1.77 5.50 -4 5^-6 4J4-5 5.48 2.92 March ; 2.25 1.57 5.50 ! -4Me 5H-6 41/4-5 5,29-5.48 ; 2.74 April ...J 2,25 1.47 5.48 j -4 5H-6 VA- 7 4 -5 5.29-5.48 ; 2.92 May j 2.20 1.28 5.25 ! 4 5H-6 5V4- 7 4H-5 6.29-5.48 2.19 June 2.13 1.06 5.25 i »5J4-6 5H- 8 H 5.29-5.48 2.19 July i 2.15 1.20 5.25 j 7M10 4. 93-5. 48 2.74 August i 2.41 1.50 5.25 1 4. 93-5. 48 3.65 September I 2.44 1.50 5.47 | 4. 93-5. 48 2.56 October ] 2.44 1.80 7.50 o 6 -7 4. 93-5. 06 5.48 November | 2.44 1 Average for first 11 days of July, no quotations being available for remainder of month. * Average for final 22 days of August, no quotations being available for remainder of month. 8 Average for first week of June, no quotations being available for remainder of month. 4 No quotations available. 8 Range for first 13 days of July, no quotations being available for remainder of month. NOTE.—For sources used, methods of quotation, and back figures, see BULLETIN for November, 1926 (pp. 794-795), April, 1027 (p. 289), July, 1929 (p. 503), November, 1929 (p. 736), and May, 1930 (p. 318) Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

JANUARY, 1932 FEDERAL RESERVE BULLETIN 63 PRICE MOVEMENTS IN PRINCIPAL COUNTRIES SECURITY PRICES [Index numbers except as otherwise specified] Bonds Common stocks (1926 average** 100) Year and month ( U a S p v r n t e a i i c r t t e a e e g ) s d e ( 1 D E 92 e n 1 c g e l - m a 1 n 0 b d 0 e ) r ( a 1 g 9 F e 1 r 3 a = n 1 a c 0 v e 0 e ) r- G (a e p v r r e m ic ra e a ) g n e y U S n ta i t t e e s d England France Germany Number of issues 60 87 35 »177 404 278 300 32fi 1926 97.0 110.0 57.4 100.0 300.0 100.0 100.0 1927 98.9 110.7 71.7 118.3 107.0 123.2 145.0 1928 98.7 112.3 82.8 86.9 149.9 115.9 178.5 136.1 1929 95.7 110. 2 85.1 83.0 190.3 119.5 217.2 122.8 1930 >.. . 98.3 111.8 95.8 85.0 149.8 102.6 187.6 100.2 1926—November 97.6 109.3 60.2 103.1 102.1 102.6 130.6 December 97.8 109.3 62.8 105.4 102.0 99.6 130.3 1927—January 97.9 111.3 66.0 105.6 104.1 109.4 149.3 February 98.1 110.5 65.4 107.9 105.1 112.4 158.3 March 98.4 110.3 71.0 109.1 104.4 120.2 153. 7 \pril 99.0 110.6 73.9 111.1 105.5 129.2 162.8 May 99.1 110.6 72.7 114.2 106.4 125.8 156.1 June _-- 98.4 110.1 72.1 115.4 106.3 120.6 • 142.4 July 98.4 110.3 72.2 117.2 106.7 124.9 147.0 August 98.8 110.6 72.6 122.0 107.4 123.6 144.5 September 99.3 110.7 73.1 127.7 108.3 125.3 139.4 99.6 111.9 72 3 126.7 109.7 126.2 134.9 November 99.7 110.6 72.7 129.6 109.6 124.5 122.2 December 100.0 111.2 76.8 133.1 110.4 135.2 129.3 1928—January 100.3 112.4 80.4 89.4 134.4 111.1 148.1 135.8 February. » . _ 100.3 112.3 80.2 88.6 132.3 111.0 143.3 132.4 March 100,5 112.4 80.3 87.8 137.9 114.0 157.9 130.6 April 100.3 113.7 81.3 87.5 145.9 116.2 177.8 136.1 May 99.7 112.4 81.8 87.2 152.1 118.6 179.8 140.2 June 98.5 112.4 84.3 86.8 145.3 114.7 180.7 141.2 July . _ 97.9 112.1 83.7 86.5 144.2 114.0 170.4 137.2 August 97.2 112.1 84.9 86.2 148.3 115.9 189.3 136.9 September 97.5 111.7 84.9 85.9 156.6 117.7 193.6 137.2 October 97.5 112.3 84.4 85.6 159.1 119.2 193.1 135,2 November 97.8 112.1 83.8 85.4 171.1 119.8 200.4 135.0 December . . . 97.2 112.1 84.1 85.4 171.4 119.8 207.3 136.4 1929—January 97.0 113.4 83.6 85.6 185.2 122.8 233.0 135.4 February 96.3 111.7 81.8 85.3 186.5 121.7 235.2 130.0 March . . . _ 95.8 111.1 81.7 84.8 189.1 121.0 229.6 129.4 April 95.8 111.9 83.0 84.2 186.6 119.8 222.3 129.5 May _ _. - 95.7 110.4 84.2 82.7 187.8 118.3 219.7 124.2 June 95,3 109.8 84.8 82.7 190.7 118.6 210.7 127.2 July . 95.2 109.3 84.6 82.8 207.3 121.7 213.3 124.5 August 95.0 109.0 84.8 82.5 218.1 123.5 215.0 123.1 September . . 94.8 108.9 86.9 82.1 225.2 124.3 222.3 121.5 October ._ 95.1 109.3 86.6 81.3 201.7 120.8 209.9 114.4 November 95.7 108.5 87.7 81.0 151.1 110.4 197.9 109.9 December , _ - .» 96.5 108.5 91.6 80.7 153.8 110.5 198.7 105.7 1930—January 96.6 109.6 97.5 81.2 156.3 110.2 212.9 110.1 February 96.4 110.1 96.3 82.2 165.5 109.9 205.6 110.6 March - . -- 97.8 112.7 95.8 82.6 172.4 109.2 205.2 109.2 April 97.9 112.7 95.5 84.7 181.0 111.1 208. 8 112.1 M.ay 97.9 111.4 95.3 86 7 170.5 108.0 198.3 111.7 June « _ _ _ - -- 98.2 110.0 95.8 87.1 152.8 101.8 187.6 106.8 July 98.7 112.3 95.7 88.0 149.3 103.1 188.8 100.8 August 99.6 111.9 96 6 87.5 147.6 98.4 182.0 94.8 September _ » „ 100.0 112.0 96.4 86.9 148.8 101.1 182.4 93.9 October 99.9 113.1 95.4 84.7 127.6 95.4 169.5 87.9 November 99.1 112.8 94.7 84.5 116.7 94.1 162.2 84.7 December - .. _ 97.8 112.5 94.1 83.9 109.4 89.0 149.8 80.0 1931—January 99.6 112.8 95.7 84.0 112.3 89.6 156.7 75.0 February 99.4 109.7 97.1 84.3 119.8 89.3 160.1 78.5 March . 100.0 111.6 97.9 85.9 121.6 89.4 155. 4 83. t April 99.6 111.3 99.0 87.4 109.2 85.1 148.5 84.8 May 99. 7 110. 8 98.4 86.4 98.0 76.8 138.2 76.1 June 99.4 111.1 98.8 83.9 95.1 77.8 141.2 69. e July 99 4 111 2 98 9 98.2 79.2 132.6 August 98 5 107.2 99. 5 95.5 73.8 130.5 SeDtcmbcr 95 6 103 6 97 7 81.7 67.2 115.5 October 89 4 104 2 94 8 69.7 75.6 109. 9 November _ 89.0 104. 8 94.4 71.7 74.7 104.3 i Approximate number; series originally included 208 issues, from which those bearing 10 per cent interest have been eliminated in recent revision. In 1928 the number of such issues was 31. Stock price series for England, France, and Germany have been converted from original bases to a 192G base; for original figures—except for revised series on German bonds—see BULLETIN for February, 1^31 (p. 91) and March, 1931 (p. 158). SOURCES: United States—Standard Statistics Co., New York; description (and back figures) in Standard Statistics Bulletin, General Section, Base Book Issue for 1930-31 (pp. 63, 66, and 104). England—Bankers Magazine, London; description in issues for February, 1922 (p. 227) and February, 1923 (p. 2ol); back figures in current issues. France—Statistique G6nerale, Paris; description (and back figures) in Bulletin de la Statistique GSnerale, for July, 1927 (pp. 390-397). Germany—Statisches Reichsamt, Berlin; description in Wirtschaft und Statlstik; Bonds-February, 1928 (p. 144) and April, 1931 (p. 338); stocks (with back figures)-January, 1929 (p. 62). 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64 FEDERAL RESERVE BULLETIN JANUARY, 1932 PRICE MOVEMENTS IN PRINCIPAL COUNTRIES—Continued WHOLESALE PRICES—ALL COMMODITIES U ( n 1 i 9 t 2 ed 6 = S 1 t 0 a 0 t ) es (1 C 92 a 6 n = a • d 1 a 00) (1 E 9 n 1 g 3 l = a 1 n 0 d 0) (1 F 9 r 1 a 3 n = c 1 e 00) ( G 19 e 1 r 3 m = a 1 n 0 y 0) (19 I 1 t 3 a * l 1 y 00) 19 J ( 0 O a 0 c p - t a 1 . n 0 , 0) N ( e 1 t 9 h 1 e 3 r * l 1 a 0 n 0 d ) s Month 1930 1931 1930 1931 1930 1931 1930 1931 1930 1931 1930 1931 1930 1931 1930 1931 January... 131 107 576 541 132 115 417 342 201 158 131 105 February.. 128 106 567 538 129 114 408 338 200 158 126 104 March 125 106 553 539 126 114 400 339 196 158 122 103 April 124 106 548 540 127 114 396 337 193 158 122 102 May 122 104 546 620 126 113 389 332 189 154 118 102 June.. 121 103 540 518 125 112 382 327 181 151 118 100 July 119 102 558 500 125 112 375 324 177 153 115 97 August 118 100 560 488 125 110 379 322 176 152 114 94 September. 116 99 556 473 123 109 374 319 172 150 112 91 October. _. 113 104 552 457 120 107 364 322 165 147 111 November. 112 106 551 447 120 107 361 320 162 147 110 December. 109 541 118 350 161 107 WHOLESALE PRICES—GROUPS OF COMMODITIES [Groups are those comprised In indexes shown in preceding table] United States (1926=100) England (1913*100) France (1913*100) Germany (1913-100) Month and year Industrial pr F o a d r u m cts Foods co O m it t i m h e e s o r d- Foods I p n r d o u d s u tr c i t a s l p an r F o d a d r f u m o c o t d s I p n r d o u d s u tr c i t a s l p A r t g o u r d r i u c a u l c l t - s P s r i o on v s i- r f a i s n w e is m h a i e n - d d I p n fi r d n o u i d s s h u t e r c d i t a s l products 1930—October 83 89 82 121 109 562 543 109 108 114 147 November. __ 79 86 80 121 107 570 535 112 108 113 145 December 75 82 79 116 105 570 516 110 105 110 143 1931—January 74 80 78 113 104 580 507 107 102 108 142 February 70 77 77 112 103 675 505 106 100 106 140 March 71 77 76 111 103 581 603 107 99 106 139 April _ 70 76 74 113 102 592 495 108 97 105 138 May 67 73 73 113 100 566 480 109 96 103 137 June 65 72 72 113 98 571 472 107 95 103 137 July 65 73 72 110 98 541 465 105 97 103 136 August 64 74 72 108 95 528 452 103 96 102 136 September ... 61 73 72 108 95 508 443 101 94 100 135 October 59 73 71 113 100 489 429 99 95 99 133 November... 59 71 72 115 102 482 416 99 94 99 132 RETAIL FOOD PRICES COST (OF LIVING 1 United England France Germany j United England France Germany States (July, (July, (1913- States (July, Jan.-June, (1913- (1913=100) 1914=100) 1914=100) 14=100) i (1913=100) 1914=100) 1914-100) 14=100) * Month Month 1930 1931 1930 1931 1930 1931 1930 1931 1930 1931 1930 1931 1930 1931 1930 1931 January 155 133 157 138 124 132 150 134 i January .__ 166 153 152 140 February . 153 127 154 136 121 132 148 131 • February 164 152 150 139 March 150 126 150 134 120 131 145 130 I March.. . 161 150 115 120 149 138 April. . 151 124 143 129 119 130 143 129 i April 157 147 147 137 May 150 121 140 129 120 129 142 130 1 May - - 155 147 147 137 June 148 118 138 127 120 128 143 131 ' June 167 150 154 145 116 120 148 138 July 144 119 141 130 122 125 146 130 July 155 147 149 137 August 144 120 144 128 127 121 145 126 ' August 157 145 149 135 September 146 119 144 128 129 119 142 125 i September .-_ 157 145 120 115 147 134 October 144 119 143 128 129 116 140 123 i October 156 145 145 133 November. _ _ _ _ 141 117 144 130 131 113 138 122 i November 157 146 144 132 December 137 141 132 135 i December 161 155 121 142 1 Average of October, 1913, January, April, and July, 1914=100. SOURCES: Wholesale prices.—For original sources, see BULLETIN for March, 1931 (p. 159). Retail food prices and cost of living.—United States— Bureau of Labor Statistics, Department of Labor; Engtand—Ministry of Labour; Germany—Statistisches Reichsamt; France—for retail food prices, Statistique G6n6rale, and for cost of living, Commission d'e"tudes relatives au cout de la vie a Paris. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

JANUARY, 1932 FEDERAL RESERVE BULLETIN 65 LAW DEPARTMENT fied as a deposit which is exempt from the reserve requirements of the Federal reserve act. Deposits of public moneys by the United States which Funds held by the United States merely as cusare exempt from reserve requirements todian, or in trust, for the benefit of others are, Under the provisions of the Liberty bond of course, not public moneys of the United acts, approved April 24, 1917, September 24, States and so are not exempt from reserve 1917, and April 4, 1918, * "deposits of public requirements. moneys by the United States in designated In construing the phrase "deposits of public depositaries " are exempt from the requirements moneys by the United States in designated of the Federal reserve act as to maintenance depositaries/7 the Federal Reserve Board has of reserves by member banks. From time to ruled that the classes of deposits enumerated time questions have arisen as to whether varibelow do not come within the meaning of this ous classes of deposits in member banks may provision and are, therefore, not exempt from property be regarded as coming within this the reserve requirements prescribed by the provision of law so as to be exempt from Federal reserve act. These rulings have been reserve requirements. made in the light of views expressed by the In considering such questions, it is to be noted Treasury Department in the course of conthat a deposit which is made by, or for the sultations with it. account of, a Government department, bureau, (1) Deposits of funds of the Philippine or official and is secured by a deposit of United Islands made by the government of the Philip- States bonds is not necessarily for that reason pine Islands or by the Bureau of Insular to be classified as a " deposit of public moneys Affairs of the War Department of the United by the United States in designated deposita- States; ries.77 In order to come within the meaning of (2) Deposits of funds of Porto Rico made by this provision of law, it is necessary that the the government of Porto Rico or by the Bureau deposit (1) be made by, or for the account of, of Insular Affairs of the War Department of the United States or some department, bureau, the United States; or official thereof; (2) consist of public moneys (3) Deposits of Indian funds under the conof the United States; and (3) be received by trol of the Department of the Interior; the depositary bank under authority of a desig- (4) Deposits of States, counties, and municnation of such bank by the Secretary of the Treasury as a "general depositary/7 "limited ipalities; depositary,77 or "special depositary" within the (5) Deposits of the United States Shipping Board and deposits of the Emergency Fleet meaning of those terms as defined by the Secre- Corporation; tary of the Treasury. Unless a deposit meets (6) Deposits of bankruptcy funds under the all of these requirements, it may not be classijurisdiction of United States courts, represent- 1 Sec. 8 of the Third Liberty bond act, approved Apr. 4,1918, provides: ing funds of bankrupts7 estates; "That the Secretary of the Treasury, in his discretion, is hereby au- (7) Deposits of moneys paid into United thorized to deposit* in such incorporated banks and trust companies States courts by private parties pending the as he may designate, the proceeds, or any part thereof, arising from the sale of the bonds and certificates of indebtedness and war-savings cer- outcome of litigation; tificates authorized by this Act, and arising from the payment of income (8) Deposits of the Division of Insolvent and excess profits taxes, and such deposits shall bear such rate or rates of interest, and shall be secured in such manner, and shall be made National Banks of the Comptroller of the Curupon and subject to such terms and conditions as the Secretary of the rency, representing funds collected by receivers Treasury may from time to time prescribe: Provided, That the provisions of section fifty-one hundred and ninety-one of the Revised Statutes, of suspended national banks; as amended by the Federal Reserve Act, and the amendments thereof, (9) Deposits of the Inland Waterways Corwith reference to the reserves required to be kept by national banking associations and other member banks of the Federal Reserve System, poration, a Government-owned corporation, shall not apply to deposits of public moneys by the United States in desigcreated for the purpose of carrying on the nated depositaries, * * *" Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

66 FEDERAL RESERVE BULLETIN JANUARY, 1932 operations of the Government-owned inland, vision of the Federal reserve act, are included canal, and coastwise waterways system; within the term "time deposits," which are (10) Deposits to the credit of the Alien Prop- subject to a 3 per cent reserve. erty Custodian, comprising an administrative On the other hand, the Federal Reserve fund for the payment of salaries and other Board has held, after consultation with the expenses of the office of the custodian; Treasury Department, that deposits made by (11) Deposits of the Panama Canal Zone United States postmasters of Government funds, made by the Secretary of War, representing other than postal savings deposits, collected money-order funds of the Canal Zone post by them or which have come into their posoffice. session by virtue of their official positions, In addition, deposits of postal savings funds should be deemed to constitute " deposits of may not be classified as coming within the public moneys by the United States" and, exemption of " deposits of public moneys by when made in designated depositaries, such the United States in designated depositaries," deposits are exempt from the reserve requirebecause postal savings deposits, by express pro- ments specified in the Federal reserve act. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

JANUARY, 1932 FEDERAL RESERVE BULLETIN 67 DETAILED FEDERAL RESERVE STATISTICS, ETC. FEDERAL RESERVE BANKS—RESOURCES AND LIABILITIES, ALSO F. R. NOTE STATEMENT [In thousands of dollars] Dec.3 1,1931 Nov 30,1931 Dec.31,1930 RESOURCES Gold with Federal reserve agents 2,130,122 1,734, 676 1, 730,430 Gold redemption fund with "United States Treasury 55,616 70,0S2 35,211 Gold held exclusively against Federal reserve notes.. 2,185,738 1804, 758 1, 765,650 Gold settlement fund with Federal Reserve Board 314,090 360, 547 417,440 Gold and gold certificates held by banks ___ 489,064 747,166 758,129 Total gold reserves 2, 988, 892 2,918,471 2,941,219 Reserves other than gold 168, 770 161,855 140,298 Total reserves.. 3,157, 062 3,080,326 3,081,517 Nonreserve cash 72, 612 62,889 79,P32 Bills discounted: For member banks __ _ _ 626,779 706, 457 250, 550 For intermediate credit banks.__ _. 11, 044 11,320 737 For nonmember banks (secured by adjusted-service certificates). 470 488 71 Total bills discounted.._ __ 638, 293 718,265 251, 3S8 Bills bought: Outright i 257, 049 445,507 324,746 Under resale agreement 81, 038 6, 205 39,098 Total bills bought. 338, 687 451, 712 363, 844 United States securities: Bought outright 771,931 717,031 686,004 Under resale agreement. 45, 029 43,403 Total United States securities- 816, 960 717,031 729,467 Other reserve bank credit: Federal intermediate credit bank debentures.. 26,185 25, 330 6,300 Federal land bank bonds _. 500 500 Municipal warrants 4, 463 4,397 843 Due from foreign banks ___ 8, 662 8,724 704 Reserve bank float2 19,652 4,939 20,776 Total reserve bank credit outstanding.. 1,853, 402 1,930,898 1,373, 332 Federal reserve notes of other reserve banks.. 20,055 15,182 21,993 Uncollected items not included in float 478, 229 3S0,861 564,007 Bank premises _ 57, 668 59,475 57,843 All other resources 32,697 41,055 22,024 Total resources.. 5, 672, 325 5,580, 686 5, 200, 648 Federal reserve notes: Held by other Federal reserve banks. 20,055 15,182 21,993 Outside Federal reserve banks 2,604,416 I 2,464,518 1,641,545 Total notes in circulation 2, 624, 471 2,479,700 ; 1,663,538 Deposits: i Member bank—reserve account. 1,961,410 2,050,596 ; • 2, 470,583 Government 53,637 31,765 i 18,819 Foreign bank 79,099 142,665 ! 5, 761 Other deposits __ 30, 728 27,437 | 21,970 Total deposits 2,124,874 2,252,463 i 2, 517,133 Deferred availability items.. 478, 229 390,861 : 564,007 Capital paid in.. 160, 568 103,593 ! 169,640 Surplus 259, 421 274,636 ' 274,636 All other liabilities 24, 762 19,433 ] 11,694 Total liabilities _ 5, 672, 325 5,580,686 | 5, 200, 648 Contingent liability on bills purchased for foreign correspondents 250, 621 126,389 ! 439,288 FEDERAL RESERVE NOTE STATEMENT Federal reserve notes: Issued to Federal reserve banks by Federal reserve agents 2, 926, 038 2,773,021 ! 2,093, 625 Held by Federal reserve banks * 301, 567 293,321 ! 430, 037 In actual circulation _.. 2,624, 471 2,479,700 ' 1,663, 538 Collateral held by agents as security for notes issued to banks: Gold 2,130,122 1,734,676 1, 730, 439 Eligible paper _ 915,125 1,107,313 507, 788 Total collateral.. 3, 045,247 2,841,989 2,238,227 1 Includes bills payable in foreign currencies as follows: Latest month, $33,429,000; month ago, $33,386,000, year ago, $35,983,000. 2 Uncollected items in excess of deferred availability items. 1 Excludes "Federal reserve notes of other Federal reserve banks" which are consequently included in actual circulation. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

68 FEDERAL RESERVE BULLETIN JANUARY, 1932 EACH FEDERAL RESERVE BANK—RESOURCES AND LIABILITIES, ALSO FEDERAL RESERVE NOTE STATEMENT, DECEMBER 31, 1931 [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 - AtlantaChicago L S ou t. is M ap in o n li e s - K C an it s y a s ! j Dallas F c S r is a a c n n o - RESOURCES Gold with Federal reserve agents 2,130,122 147,627 450,337 180,000 252,470 78,870 91,800 483, 620 64,885 58,470 66,6S0 40,700 j 214,663 Gold redemption fund with U. S. Treasury 55,616 4,744 11, 543 7,190 7,480 2,018 2,725 9,627 2,382 704 3,126 i j 809 I 3,268 Gold held exclusively I against Federal reserve notes 2,185,738 152,371 ! 461,880 187,190 259,950 80,888 94,525 493,247 67,267 ! 59,174 41,509 I 217,931 Gold settlement fund with I Federal Reserve Board 314,090 40,282 | 81,380 14,282 42,229 7,813 7,416 50,484 9,600 j 9,367 15, 738 8,881 I 26,618 Gold and gold certificates held by banks 489,064 20,791 | 300,478 26, 232 22,810 5,059 7,620 52,862 12,086 j 5,735 12,227 3,639 ; 18,925 Total gold reserves. 2,988, 892 213,444 843, 738 227,704 324,989 i94. 360 109, 561 596,593 j 88,953 j 74,276 97,771 i 54,029 I 263,474 Reserves other than gold. 168,770 17,355 37, 739 15,237 j 13,087 j7; 095 6,061 29,277 I 12,863 ! 5,632 7,665 '• 7,946 | 8,813 Total reserves. 3,157,662 230,799 881,477 242,941 ^338,076 101,455 115, 622 625,870 1101,816 79,908 105.436 61,975 i 272,287 Nonreserve cash 72, 612 7,803 19,235 3,656 ! 4,859 3,743 4,368 10,859 3,773 ' 1,731 j 2,653 3,532 : 6,395 Bills discounted: Secured by U. S. Government obligations 320,876 23,493 112,477 48,295 48,496 6, 824 3,799 ! 50,272 ] 10,190 [ 1,074 4,568 i 543 ; 10,845 Other bills discounted 317,417 19,712 j 37,474 68,117 44,113 26,553 31,103 ; 24,224 | 6,606 6,497 23,158 ! 9, 873 ' 19,897 Total bills discounted.. _ 638, 293 43,205 i 149,951 116,412 : 92,609 33, 377 34,902 i 74,496 j 16,886 7,571 27,726 10,416 , 30,742 Bills bought 338, 687 33,431 | 163,393 4,065 ! 5,561 10, 099 13,235 ! 42,052 | 12,823 7,329 11,666 . 3,019 I 32,014 17. S. Government securities: i ~r Bonds._. 360, 368 27,940 114,688 33, 749 i 31, 349 7,810 6,521 '• 53,354 | 11,393 15,832 7,685 ! 17,995 | 32,052 Treasury notes 33,040 1,958 18,306 1,761 i 2,320 562 380 i 2,901 I 783 589 548 ! 536 I 2,396 Certificates and bills 423, 552 31,104 I 176,362 33,142 : 39,582 10, 709 7,037 ! 49,276 14.923 11,247 10,475 i 11,333 I 28,362 Total U. S. Government securities _ 816,960 ! 61,002 l 309,356 68,652 I 73,251 I 19,081 13,938 1105,531 27,099 27,668 18, 70S ! 29,864 62,810 Other securities 31,148 2,130 ! 14,315 5,610 700 850 ! 3,490 j 880 903 400 i 1,870 Total bills and securities.!l, 825,088 |139,768 | 637,015 194,739 171,421 63, 257 62,925 !225, 569 j 57, 688 43,471 58,500 i 43,299 I 127,436 D Fe u d e e f r r a o l m r e f s o e re rv ig e n n b o a t n es k s of other; \ 8,662 685 , 3,173 904 i 875 346 312 ! 1,232 j 21 14 251 2G0 i 589 banks j 20,055 234 j 6,084 624 I 1,489 ! 1,885 1, 230 ; 3,105 I 1,270 810 1,482 ; 397 ! 1,445 Uncollectcd items 497,881 58,575 ! 164.867 43,558 ' 41,319 37, 228 11,839 I 53,531 18,088 8,444 21,391 1 13,404 ! 25,637 Bank premises _ 57,668 3,336 i 14,816 2,626 I 7,807 3, 605 2,489 i 7.827 3,461 1,834 3,649 : 1,785 ! 4,433 All other resources i 32,697 2,048 I 11,242 1,397 i 3,158 2,832 3,111 i 1,297 1,995 1,373 1.054 ! 2,302 j 888 Total resources j5,672,325 443,253 jl, 737, 909 490,445 1569,004 214,351 201.896 ,929,290 1188,112 137,585 |194,416 126,954 | 439,110 LIABILITIES Federal reserve notes in actual circulation '2,624,471 I194,460 ! 574,186 269,372 |320,335 109,347 120,626 519,471 16, 941 19,130 82,711 i 46,813 j 231,079 Deposits: Member bank—reserve account _ 1,961,410 149,287 795, 015 123, 939 147, 646 47, 256 46, 368 283,976 59,456 45,827 I 75,229 ! 48,811 138, 600 Government _ 53,637 2,538 25,740 3,551 3, 526 1,642 2,047 3,291 3,128 1,961 i 1,510 i 1,509 3,194 Foreign bank.._ _ 79,099 5,764 27, 527 7,609 7, 763 3, 074 2, 767 10, 376 2,690 1,768 ! 2,229 j 2,306 5,226 Other deposits 30,728 240 13, 786 391 6,167 598 j 172 691 566 356 ! 60 i 246 7,455 Total deposits 2,124,874 157,829 862, 068 135, 490 165,102 52, 570 51,354 j 298, 334 65,840 49,912 I 79,028 I 52,872 154, 475 Deferred availability items 478, 229 57,993 158,126 41,826 39,425 34, 532 12,001 51,885 19,305 7, 791 ' 19, 674 1 13, 22322, 448 apital paid in _ _._ 160,568 11,749 61,639 16, 600 14,630 5,478 5,158 18,011 4,693 2,951 j 4,185 '• 4,13511,339 Surplus 259,421 20,039 75, 077 26,486 27, 640 11,483 10,449 i 38,411 10,025 6,356 i 8,124 ! 7,624 17, 707 All other liabilities 24, 762 1,183 6,813 671 1,872 941 2,308 3,178 1,308 1,445 ! 694 I 2,287 2,062 Total liabilities 5, 672, 325 443,253 1,737,909 490,445 569,004 214,351 1201,896 j929, 290 188,112 137,585 194,416 1126,954 439,110 Reserve ratio (per cent). 66.5 65.5 61.4 60.0 69.6 62.7 ! 67.2 76.5 66.6 67.1 ! 65. 2 I 62. 2 70.6 FEDERAL RESERVE NOTE STATE- MENT Federal reserve notes: Issued to F. R. bank by F. R. agent 2,926,038 <220,491 636,132 295, 067 346, 950 117,879 138,563 587,100 91, 301 71, 288 93, 900 52, 654 274, 713 Held by F. R. bank _ 301,567 ! 26,031 61, 946 25,695 26,615 8, 532 17, 937 67, 629 4,360 2,158 11,189 5, 841 43, 634 In actual circulation 2,624,471 194,460 574,186 269, 372 320, 335 109,347 |l20,626 519,471 86, 941 69,130 I 82,711 46,813 231,079 Collateral held by agent as security for notes issued to banks: Gold 2,130,122 147,627 450,337 180,000 252,470 78,870 91,800 483, 620 64,885 58,470 66, 6S0 40, 700 214,663 Eligible paper 915,125 74,101 279,682 116,949 94, 770 41, 014 46,823 111, 564 27,287 13,341 37,267 12, 234 60, 093 I Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

69 JANUARY, 1932 FEDERAL RESERVE BULLETIN FEDERAL RESERVE BANKS—RESERVES, DEPOSITS, NOTE CIRCULATION, AND RESERVE PERCENTAGES [Averages of daily figures. Amounts in thousands of dollars] Total cash reserves Total deposits Federal reserve notes in cir- Reserve percentages culation * Federal reserve bank 1931 1930 1931 1930 1931 1930 1931 1930 Decem- Novem- Decem- Decem- Novem- Decem- Decem- Novem- I Decem- Decem- Novem-JDecember ber ber ber ber ber ber ber ber ber ber ber Boston 187,446 167,494 215,525 139,968 149,463 146,405 175,457 148,293 133,474 59.4 56.3 77.0 New York 1,010, 2891,033,957 1,077,864 953,477 980,075 1,053,848 544,106 496,742 341,708 67.5 70.0 77.2 Philadelphia.. 260, 668 270, 785 230, 803 138, 976 145, 218 143,011 275, 787 273,966 137,979 62.8 64.6 82.1 Cleveland 326, 745 304,063 298,309 170, 248 175,543 191,468 320, 610 312,781 195,927 68.6 62.3 77.0 Richmond 90, 890 86,528 109,376 60,813 64,408 63,326 102,043 100,062 97, 219 55.8 52.6 68.1 Atlanta 95,888 83,622 143,088 54,710 56,815 59,901 121,652 120, 708 129,087 54.4 47.1 75.7 Chicago 593,416 575,027 385, 942 303, 648 312, 647 347,418 511,934 492,958 141,136 72.8 71.4 79.0 St. Louis 94,266 83,550 117,949 69, 514 72,412 71,976 86,929 85, 958 84, 571 60.3 52.8 75.3 Minneapolis.. 75,497 65, 293 71,229 49, 505 51, 236 51, 672 68,214 64,256 51,448 64.1 56.5 69.1 Kansas City— 98,127 77, 972 103, 834 78, 634 80,172 86, 556 82, 798 80,381 69,097 60.8 48.6 66.7 Dallas 56,319 53,908 55, 654 54, 233 56, 546 58, 935 48,597 50,922 32,697 54.8 50.2 60.7 San Francisco 241,962 213, 459 278, 895 167, 590 178,339 192, 956 225,710 226,373 172,707 61.5 52.7 76.3 Total. -. 3,131,513 J3, 015, 658 J3, 088,4628,241,316 2,322, 8742,467,472 2,563,837 2,453,400 1,587,050 65.2 63.1 76.2 i Includes "Federal reserve notes of other Federal reserve banks" as follows: Latest month, $16,746,000; month ago, $17,370,000;r year ago $16,870,000. r Revised. ALL MEMBER BANKS—DEPOSITS, RESERVES, ETC., BY DISTRICTS [Averages of daily figures for 3 months ending November 30, 1931. In millions of dollars] Deposits subject to reserve (net demand and Indebtedness at Federal time deposits; see fol- reserve banks lowing page) Federal reserve district Boston 2,261 2,210 2,160 142.7 154.3 135.8 New York.. \ 10,146 j ,853 9, 459 1, 015. 8 996.1 915.7 Philadelphia- 2,351 2,206 2,137 139.8 131.5 128.2 Cleveland .._. 2,997 2,690 2,565 178.6 159.9 150.3 Richmond 1,048 965 59.2 57.9 55.6 Atlanta ._ 853 I 823 795 53.6 51.4 49.4 Chicago I 4,181 3,934 3,822 327.9 306.0 289.0 St. Louis.... 1,032 998 965 65.9 64.7 64. 25.8 Minneapolis 819 798 789 47.6 46.4 45. 6.4 Kansas City... 1,085 1,049 1,012 79 6 76. 74.1 32.1 Dallas ._ 725 690 688 52.4 53.4 50.2 22.9 San Francisco 3,003 2,894 2. S61 169. 7 157.2 159. 5 86.4 Total __| 30,500; 29,138 28,218 2,332.7 2,255.6 2,118.1 120.3 57.0 279. 6 i 60S. 1 DISCOUNTS—DISTRICT DATA, BY WEEKS DISCOUNTS—DISTRICT DATA, BY MONTHS [In thousands of dollars] [Averages of daily figures. In millions of dollars] 1931 1930 1931 Federal reserve bank Federal reserve bank Decem- Novem- Decem- Dec. 2 Dec. 9 \ Dec. 16 Dec. 23 Dec. 30 ber ber ber Boston 32,995 29,312 43,495 67,415 56, 733 Boston 47.5 26.0 17.3 New York.... 121,804 137,258 117,731 236,396 431,827 New York 167.7 120.5 90.3 Philadelphia 102,916 104,703 117,628 137,825 115,575 Philadelphia _ 117.5 108.3 27.5 Cleveland . 9,441 106,529 111, 897 127,581 114,862 Cleveland 110.6 98.9 37.9 Richmond 39,748 36,266 35,977 46,812 41, 447 Richmond 39.5 40.5 33.1 Atlanta 54,081 53,660 47,486 45, 275 Atlanta 51.6 51.0 30.4 Chicago 85,913 89,499 77,960 98,676 95, 309 Chicago - 86.6 69.9 26.4 St. Louis 26,534 26,863 26,879 29,048 21, 742 St. Louis 26.8 25.9 14.2 Minneapolis—. 8,239 8,092 7,859 7,882 7,554 Minneapolis- 8.0 7.4 3.9 Kansas City.._ 29,932 28,331 30,469 29,698 29,286 Kansas City- 30.3 33.8 16.0 Dallas 21,072 20,951 18,004 15,822 11, 407 Dallas. 17.6 23.0 6.9 San Francisco. 90,875 83, 297 56, 349 66,553 52, 866 San Francisco 70.9 33.7 Total. 717,567 725,182 ! 697,908911,194 1,023,883 Total... 774.5 695.1 337.6 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

70 FEDERAL RESERYE BULLETIN JANUAKY, 1932 NET DEMAND AND TIME DEPOSITS OF ALL MEMBER BANKS, BY DISTRICTS [Averages of daily figures. In millions of dollars] Total (all member banks) Larger centers (places over 15,000) Smaller centers (places under 15,000) Federal reserve district Net demand Time Net demand Time Net demand Time Novem- Novem- Novem- Novem- Novem- Novem-; ber October ber October! ber October ber IOctober ber October ber October Boston 1,201 1,228 959 982 1,101 1,125 803 824 100 103 156 158 New York 6,780 7,033 2,680 2,821 6,526 6,767 2,127 2,258 253 266 553 56a Philadelphia.. 1,065 1,081 1,071 1,125 896 906 645 688 169 175 427 437 Cleveland 1,175 1,239 1,390 1,451 1,023 1,070 1,107 1,152 152 169 283 i 300 Richmond 467 480 498 513 371 381 317 328 96 99 181 . 185 Atlanta 419 436 376 387 347 368 297 310 72 69 79 ! 77 Chicago 2,089 2,143 1,733 1,791 1,905 1,952 1,437 | 1,486 184 191 297 i 305 St. Louis 520 535 445 462 420 429 334 ! 345 100 107 111 : 117 Minneapolis. ._ 369 371 420 427 240 241 199 I 201 129 130 221 : 226 Kansas City... 652 679 361 370 445 470 228 | 233 206 210 132 ! 137 Dallas 484 487 204 203 328 331 170 ! 168 156 157 34 i 34 San Francisco. 1,138 1,146 1,723 1,748 1,005 1,011 1, 594 ! 1,618 133 135 129 131 Total 16,358 16,859 11,860 12,279 | 14,608 15,048 9,258 i 9,609 1,751 1,811 2,602 ; 2,670 RATES CHARGED CUSTOMERS BY BANKS IN PRINCIPAL CITIES Prime commercial paper Loans secured by prime stock- Loans secured by warehouse Interbank loans exchange collateral receipts Federal reserve bank or branch 1931 1930 1931 1930 1931 1930 1931 1930 city Decem- Novem- ! Decem- i Eecem Novem- : Decem- Decem- j Novem- Decem- j Decem- Novem- December ber I ber ber ber i ber ber i ber ber j ber ber ber Boston New York Buffalo.. Philadelphia Cleveland Cincinnati Pittsburgh Richmond Baltimore Charlotte Atlanta Birmingham Jacksonville Nashville New Orleans Chicago Detroit St. Louis Little Rock Louisville.. i Minneapolis Helena Kansas City _.J Denver ! Oklahoma City Omaha j Dallas.. El Paso i Houston... _._i San Antonio ; San Francisco Los Angeles i Portland.- j Salt Lake City j Seattle , Spokane.. • NOTE.—Rates at which the bulk of the loans of each class were made by representative banks during the week ending 15th of month. Rates from about 200 banks with loans exceeding $8,000,000,000; reporting banks are usually the largest banks in their respective cities. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

JANUARY, 1932 FEDEKAL EESERVE BULLETIN 71 WEEKLY REPORTING MEMBER BANKS IN LEADING CITIES PRINCIPAL RESOURCES AND LIABILITIES, BY WEEKS [In millions of dollars] Federal Reserve District City 1931 Kan- St. Minne- sas Chi- Louis apolis City cago Loans and investments: Dec. 2 20,856 1,381 8,312 1,224 2,037 619 548 2,879 614 353 600 427 1,862 7,181 1,657 Dec. 9 20,664 1,363 8,196 1,217 2,030 I 615 543 2,854 613 353 423 1,859 7,064 1,632 Dec. 16 20,963 1,355 8,397 1,240 2,057 I 624 561 2,843 615 350 446 1,877 7,258 1,625 Dec. 23 20,734 1,337 8,305 1,220 2,046 | 623 548 2,813 607 360 591 430 1,854 7,175 1,597 Dec. 30 20,532 1,291 1,205 2,017 j 603 543 2,796 593 358 594 420 1,844 7,147 1,584 Loans: Dec. 2.. - 13,350 5,215 744 1,302 ; 382 371 2,060 394 227 334 290 1,123 4,488 1,158 Dec. 9 13,237 5,153 739 1,301 I 378 367 2,032 392 227 332 290 1,118 4,425 1,132 Dec. 16 13, 212 5,180 732 1,297 | 380 366 2,011 391 224 331 285 1,116 4,451 1,112 Dec. 23 13,119 894 I 5,144 726 1,295 | 378 365 1,984 388 228 326 280 1,111 4,420 1,084 Dec. 30 - 13,104 862 i 5,212 728 1,283 ' 361 1,972 376 225 326 275 1,115 4,492 1,076 On securities- Dec. 2 5,807 335 2,561 144 115 1,000 155 61 92 82 295 2,239 686 Dec. 9 .._. 5,760 341 | 2,532 376 585 144 112 990 153 63 93 81 290 2,210 675 Dec. 16 -.. ' 5, 740 2,534 375 584 144 115 975 '155 59 92 79 290 2,208 661 Dec. 23 5,733 353 2,554 371 578 144 114 951 147 60 90 81 290 2,231 637 Dec. 30— 5,777 342 ! 2,615 376 578 140 112 947 145 60 81 292 2,295 633 All other- Dec. 2 7,543 573 j 2,654 363 716 256 1,060 239 166 242 828 2,249 472 Dec. 9 7,477 567 ! 2,621 363 716 234 255 1,042 239 164 239 209 828 2,215 457 Dec. 16 !' 7,472 561 i 2,646 357 713 236 251 1,036 '236 165 239 206 826 2,243 451 Dec. 23 .1 7,386 541 ! 2,590 355 717 234 251 1,033 241 168 236 199 821 2,189 447 Dec. 30 ! 7,327 520 | 2,597 352 705 229 249 1,025 231 165 237 194 823 2,197 | 443 Investments: I Dec. 2 i 7,506 473 i 3,097 480 j 735 237 177 819 220 126 266 137 739 2,693 I 499 Dec. 9 I 7,427 455 J 3,043 478 729 237 176 822 221 126 266 133 741 2,639 I 500 Dec. 16 ' 7,751 456 i 3,217 508 760 244 195 832 224 126 267 161 761 2,807 ! 513 Dec. 23 : 7,615 443 | 3,161 494 751 245 183 829 219 132 265 150 743 2, 755 i 513 Dee. 30 I 7, 428 429 j 3,056 477 734 234 182 824 217 133 268 145 729 2,655 508 United States Government j securities— Dec. 2__ _ i 4,033 232 1,829 188 387 115 458 90 53 132 74 1,676 285 Dec. 9.... - i 3,997 213 1,810 187 385 115 85 461 91 53 132 73 392 1,657 286 Dec. 16 ! 4,336 213 1,993 219 418 121 104 472 94 54 134 100 414 1,836 | 300 Dec. 23 ; 4,208 210 1,932 205 406 120 93 471 92 54 135 89 401 1,778 ! 301 Dec. 30 i 4,060 197 1,862 190 386 113 91 465 95 55 136 84 1,712 j 293 All other— j Dec*2 _ 3,473 I 241 1,268 292 348 122 361 130 73 134 63 350 1,017 ! 214 Dec, 9 ! 3,430 ! 242 1,233 291 344 122 91 ! 361 130 73 134 60 349 982 I 214 Dec* 16... ' 3,415 i 243 1,224 342 123 91 | 360 130 72 133 61 347 971 | 213 Dec* 23.- -_-j 3,407 j 233 1,229 345 125 90 j 358 127 78 130 61 342 977 i 212 Dec. 30 3,368 232 1,194 287 348 121 91 359 122 78 132 61 343 943 i 215 Reserves with Federal reserve j bank: Dec»2- ____•• 1,567 87 j 765 77 114 37 32 224 40 24 46 91 I 710 157 Dec* 9 __! 1,691 87 773 77 113 35 32 233 45 24 45 96 i 722 164 Dec. 16 - 1,667 83 849 77 111 36 31 246 42 23 50 ... . 178 D D e e c c . . 2 3 3 0 _ _ : : 1 1 , , 5 8 2 3 6 3 1 8 1 4 2 7 9 5 9 5 4 7 7 2 3 1 1 1 1 2 5 3 35 5 j 3 3 1 7 | 2 22 1 9 2 4 4 3 8 2 2 2 5 4 4 4 6 8 9 7 2 | I 7 9 0 4 5 1 i 14 15 6 4 Cash in vault: Pec. 2 ' 236 16 61 15 31 15 7 5 13 18 ! 47 14 Dec»9 .! 248 17 67 17 34 15 ! 7 5 14 18 i 51 15 Dec* 16 i 259 24 67 16 35 15 ; 7 44 7 5 13 18 i 52 21 Net D D d e e e c c m . * a 2 3 n 3 0 d . d .- e posits: - — • , 2 2 9 7 2 1 2 2 6 3 8 7 5 5 1 1 7 6 3 3 7 5 1 1 6 6 I 9 9 j ! 4 4 5 2 Qo 8 0 5 1 1 4 4 2 2 1 0 i I 6 5 8 8 2 1 1 9 Dec» 2 !12,199 798 5,829 693 894 312 ' 257 i 1,576 335 199 392 255 659 i 5,335 1,089 Dec, 9 I 12,105 773 | 5,771 689 886 311 i 258 I 1,567 348 199 388 255 660 | 5,290 1,082 Dec, 16 I 12,168 764 5,866 687 895 302 , 255 | 1,567 342 192 393 251 654 | 5,376 1,084 Dec* 23.... ! 11,771 749 5,650 654 879 297 ; 250 i 1,502 335 190 382 248 635 | 5,162 1,019 Dec. 30 :<11,877 743 5,715 600 '885 293 ! 252 I 1,527 336 191 390 245 640 | 5,217 1,034 Time deposits: i Dec. 2._ i 6,142 468 1,358 892 233 209 1,069 218 143 190 135 878 436 Dec*9.__ 6,073 468 1,310 283 891 232 209 1,063 210 145 189 135 938 831 431 Dec, 16 . 6,004 464 1,287 273 880 232 207 1,056 208 145 187 135 810 427 Dec* 23 _-_. i 5,947 447 1,260 274 877 229 206 1,040 208 156 186 134 789 420 Dec. 30 i' 5,898 430 1,249 277 '864 227 206 1,032 206 156 185 133 933 j 779 417 Government deposits: i Dec* 2.. ! 57 3 20 10 1 4 2 4! 18 Dec. 9 i 5 1 1 1 ! l Dec* 16 ! ••553 10 279 37 24 '22 Ml 8 2 56 I 264 26 Dec. 23 '352 176 24 15 '18 25 5 1 35 i 166 16 Dec. 30 ' 352 176 24 15 18 25 5 1 35 I 166 16 Due from banks: Dec*2 105 81 53 54 192 40 51 116 115 Dec* 9 -.- _. 928 85 79 50 48 186 39 51 99 114 116 Dec* 16 1,012 109 73 58 51 207 41 54 104 121 125 Dec* 23 939 92 66 48 51 201 42 51 97 113 130 Dec. 30 993 112 71 54 51 207 40 50 102 115 133 ' Revised* Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

72 FEDERAL RESERVE BULLETIN JANUARY, 1932 WEEKLY REPORTING MEMBER BANKS IN LEADING CITIES—Continued PRINCIPAL RESOURCES AND LIABILITIES BY WEEKS—Continued [In millions of dollars] Federal Reserve District City 1931 Total B t o o s n - Y N o e r w k P p d h h e i i l l - a a- C la le n v d e- m Ri o c n h d - la A n t t - a C ca h g i- o L S ou t. is M ap in o n li e s - K C s a i a t n s y - 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 Due to banks: Dec. 2 2,513 127 945 167 186 92 74 361 85 69 149 80 178 880 249 Dec 9 2,387 113 880 154 183 85 74 346 84 68 148 77 175 819 238 Dec. 16 2,540 110 985 155 186 85 72 390 83 69 152 79 174 923 283 Dec 23 2,385 105 921 138 178 76 75 354 81 66 147 74 170 864 248 Dec 30 2,472 124 963 141 180 76 76 373 80 69 138 76 176 900 265 Borrowings from Federal reserve banks: Dec* 2 424 10 54 56 71 20 37 56 11 17 11 81 14 10 Dec 9 428 9 68 56 79 17 32 57 11 16 10 73 12 9 Dec. 16 392 15 47 65 86 17 31 48 11 17 47 8 Dec 23 _ 567 30 149 79 102 27 25 64 13 16 6 56 98 21 Dec. 30 - - 685 22 334 61 91 21 25 64 7 16 3 41 289 9 MEMBERSHIP IN PAR-COLLECTION SYSTEM BANK LOANS AND INVESTMENTS, PERCENT- [Number of banks at end of November] AGE DISTRIBUTION Member banks Nonmember banks [Figures for September 29,1931—latest date for which comprehensive data are available] Federal reserve dis- On par list Not on par list trict 1931 1930 1931 1930 1931 1930 Total loans and investments United States.~ 7,358 8,159 9,431 11,129 3,261 3,532 j Number Boston 383 397 252 263 ! of banks Amount Percent- N Ph e i w la d Y e o lp rk hia 8 7 5 1 9 8 9 7 1 5 7 4 3 3 6 7 2 0 4 4 5 0 5 2 j :o ( f m d i o ll l i l o a n rs s ) tr a i g b e u d ti i o s- n Cleveland 664 770 808 939 6 9 Richmond- 416 481 447 542 403 480 Atlanta 352 404 152 196 798 881 All banks in the United States 1 \ 21,301 j 53,361 100 Chicago 922 1,099 2,667 3,243 250 239 St Louis 474 528 1,278 1,443 418 445 Member banks—total.. I 7,599 ! 33,073 62 Minneapolis 583 653 395 507 888 1,014 Kansas City 830 874 1,662 1,942 215 189 Reserve city banks (62 cities).. 420 j 21,269 40 Dallas -. 622 698 475 578 225 215 Central reserve city banks- San Francisco 535 584 563 619 58 60 New York City 42 ! 8,253 15 Chicago 12 ! 1,644 3 Figures cover all incorporated banks (other than mutual saving Ot N h e e w r re Y s o e r r k v e C c i i t t y y banks- i 32 banks). Chicago I 25 I 83 MATURITY DISTRIBUTION OF BILLS, ETC. Ot ( h 1 e 0 r c F it e i d e e s r ) a .. l . reserve bank cities I i 101 : 5,626 [In thousands of dollars] Federal reserve branch cities (25 j cities) _ j 139 i 4,392 8 Other reserve cities (25 cities) 92 ! 1,238 2 35 si "Country" banks2. 7,179 , 11,805 22 s% -3 Nonmember banks 1 13,702 ! 20,288 38 > 9 1 Includes national banks, State commercial banks and trust com- Bills discounted: panies, mutual and stock savings banks, and all private banks under D D e e c c . . 9 2 7 7 1 2 7 5 , , 5 1 6 8 7 2 5 5 4 6 4 1 , , 4 4 6 7 5 7 4 52 9 , , 9 0 2 0 6 2 5 65 8 , ,2 6 8 2 4 13 3 5 5, , 6 4 4 2 1 6 1 1 8 8 , , 1 4 7 9 6 0 1 1 , , 6 5 7 6 8 3 St 1 a t I e n c s l u u p d e e r s v i c s e io rt n a . in outlying banks in reserve cities. Dec. 16 697,908 540, 32546,201 49,605 43, 55216,467 1,758 Dec. 23 911,194 750,539 41. 29154,161 46,046 17,285 1,872 BANKERS' ACCEPTANCES OUTSTANDING, Dec. 30 1,023,833 851,308 39,895 61,106 51,407 18,156 2,011 Bills bought in BY CLASSES open market: Dec. 2 423,407 171,720 139,182 100,635 11.331 539 [Dollar acceptancesj In millions of dollars* Source: American Dec. 9 3"8"9 ,219 186,126 126, 242 56,20419,969 678 Acceptance Council] Dec. 16 307,077 159; 86187,580 29,226 29,704 706 Dec. 23 257,351 146,004 56,051 30,306 24,268 722 Dec. 30 326,975 192,124 64,096 50,940 19, 056 759 Nov. 30, Oct. 31,Nov. 30, Certificates and 1931 1931 1930 bills: Dec. 2 380, 58753,224 13,152 22,950 65,515 Dec. 9 379, 55752,443 13,152 23, 950 112; 704 11,719,3 65,515 Based on imports _ 159 173 243 Dec. 16 567,398 210i 652 2,000 51,175:135, 77343,500jl24,298 Based on exports 255 261 422 Dec. 23 411,509 13,152 2,000 68,2871117,662 80,500129,908 Domestic 19 24 34 Dec. 30 427,759 28,500 20,950 77,816 86,139 86,553'127,801 Warehouse credits 239 214 274 Municipal war- Dollar exchange ._ 35 56 rants: Based on goods stored in or shipped between Dec. 2 4,302 3,075 258 foreign countries 298 330 544 Dec. 9 4,292 515 3,380 299 D D e e c c . . 2 1 3 6 4 4 , ,2 0 5 7 9 2 3 3, , 8 6 1 5 1 8 2 1 4 8 4 1 1 1 5 0 1 9 Total outstanding 1,002 1,040 1,571 Dec. 30 4,445 4,042 221 84 Back figures.—See Annual Report for 1930 (Table 61). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

JANTJAEY, 1932 FEDERAL RESERVE BULLETIN 73 BANK SUSPENSIONS, BY DISTRICTS as of the latest available call date preceding suspension] [Figures for latest month are preliminary] Banks suspended Banks reopened Number Deposits (in thousands of dollars) Number Deposi o ts f d (i o n ll a th rs o ) usands 1 Members Members ba A n l k l s Na- State m N b e e o m r n s - - All banks National State m N b e e o m r n s - - ba A n l k l s M be e r m s1 - m N b e e o m r n s - - ba A n ll ks M be e r m s * - m N b e e o m r n s - tional January-December, 1931: Boston _.. 33 6 1 26 125,956 44,451 3,760 77, 745 2 ! 2 5,206 5,206 New York 80 34 10 36 160,664 46,447 56,837 57, 380 3 2 1 24,423 21,740 2,683 Philadelphia- . - 101 23 7 71 157, 971 18, 284 10, 754 128, 933 1 1 239 239 Cleveland 182 47 16 119 407, 325 121, 517 94,600 191, 208 4 4 1,715 1,715 Richmond 203 46 7 150 122,479 42, 247 5,784 74,448 56 4 52 23, 592 6,044 17, 548 Atlanta _ _ 135 25 5 105 54,020 22,660 1,817 29, 543 13 2 11 11,338 5,481 5,857 Chicago - - 630 71 32 527 444, 774 90,826 100,956 252,992 36 1 35 26,815 7,502 19, 313 St Louis 264 ; 35 10 219 71,419 22,438 4,675 44, 306 99 12 87 45, 593 10,114 35,479 Minneapolis . . 271 i 46 1 224 60,2<*8 i 12,413 496 47, 339 25 3 22 7,460 1,542 5,918 Kansas City 222 21 201 52,004 | 9,343 42,661 \lj . 17 4,432 Dallas 93 33 9 51 53, 276 23,817 12, 745 16, 714 1 5 Q 7,006 1,535 5,471 San Francisco 76 23 10 43 49,348 18,963 10, 338 20,047 1 117 117 Total 2,290 ; 4ioi 108 1,772 1,759,484 473,406 302,762 983, 316 271 31 240 157,936 54, 314 103,622 December, 1931: i Boston 26 1 6 I l 19 109, 403 ] 44,451 3,760 61,192 t New York 28 1 11i 2 15 40, 266 10,946 5,582 23, 738 Philadelphia 8 ; i i 1 ! 6 8,866 269 2,151 6,446 C R l i e c v h e m la o n n d d 3 1 8 7 1 ii ; ! 1 2 2 1 5 2i I 2 3 2 1 , , 9 2 5 2 6 4 ! 16 2 , , 1 8 4 7 5 9 8 1 3 0 2 7 1 14 9 , , 9 2 7 47 0 4 4 1 4,3 4 0 1 0 9 4,3 4 0 1 0 9 Atlanta 13 12 7,724 101 7,623 1 2,194 2,194 C S M t h . i i n c L n a o e g u a o p is o lis . . 9 5 1 3 4 9 i j! l 3 8 • 2 4 ! 8 4 1 1 6 6 5 1 4 2 4 , , , 3 4 8 6 9 5 9 2 5 1 4 1 , , 7 3 7 4 9 0 7 4 9 1 1 1 , , 5 1 2 3 3 4 29 8 3 , , , 5 6 9 8 8 4 5 3 1 5 3 5 ; 1 5 2 4 4 1 , , 2 5 9 6 9 7 5 6 5 2 53 7 7 3 4 1 , ,2 2 4 9 9 3 2 6 8 Kansas City 30 26 • 6,447 1,539 j 4,908 5 1,159 1,159 Dallas -. . 6 41 ; 1: 4 1,166 568 32 ! 566 2 2 3,336 3,336 San Francisco 21 ; 8 4 9 j 19,521 6,306 7,832 5,383 1 ! X 117 117 Total 353 \ 64: 18i 2711 319,289 100, 054 32, 953 186,282 27 24 18,361 927 17,434 1 i 1 Represents national banks only, except as follows: January-December, 1 State member in New York district with deposits of $18,801,000; 1 State member in Richmond district with deposits of $2,152,000; 3 State members in St. Louis district with deposits of $6,313,000; and 1 State member in Minneapolis district with deposits of $496,000. Back figures.—For district figures back to 1921 see BULLETIN for February, 1931; also Annual Reports for 1930 (Table 117), 1929 (Table 111) 1928 (Table 115), 1927 (Table 111), and 1926 (Table 98). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

74 FEDERAL RESERVE BULLETIN JANUARY, 1932 BANK SUSPENSIONS, BY STATES, DURING DECEMBER, 1931 [Banks closed to public on account of financial difficulties by order of supervisory authorities or directors of the bank. Figures of suspensions during month include any banks which may have subsequently reopened. Figures of banks reopened during month include reopenings both of banks closed during month and of banks closed in prior periods. Deposits are as of date of suspension where available, otherwise as of latest available call date preceding suspension] [Figures are preliminary] Banks suspended Banks reopened Number Deposits (in thousands of dollars) Number Deposits (in thousands of dollars) State Members Members ba A n ll ks ti N on a a - l State m N b e e o m r n s - - ba A n l k l s National State m N em o b n e - rsba A n l k l s M be e r m s i - m N b e e o m r n s - - ba A n l k l s ^ D Ie er m s - i m N b e e o m r n s - i New England: Maine 1 1 1,511 1,511 i New Hampshire 2 1 1 1,177 402 775 Vermont - - - Massachusetts 15 5 1 9 87,603 44,049 3,760 39, 794 Rhode Island 8 g 19,112 19,112 i MidCdl oen Anetlcatn ictiuct: i New York . 19 7 1 11 17,692 5,516 702 11,474 i New Jersev 10 4 2 4 24, 725 5,430 7,031 12, 264 Pennsvlvania 8 2 6 7 244 798 6,446 ^ast North Central: * Ohio 14 2 1 11 21,627 1,649 107 19,871 1 1 419 I 1 419 Indiana • 12 1 11 3,857 558 3.299 3 3 2 364 i 1 2 364 I M lli i n ch o i i g s an 4 1 8 9 7 2 4 4 1 1 3 2 1 5 9 , , 7 27 4 9 8 , 5 6 , , 1 3 0 7 2 8 11,134 1 8 4 , , 2 1 3 7 6 7 2 1 1 ; 2 1,9 5 3 3 2 7 i i 537 • 1,932 Wisconsin - - 2 1 1 1,967 1 1,687 280 West North Central: Minnesota 11 1 10 3, 273 515 2, 758 1 1 727 ' 727 Iowa 26 3 S3 8,083 2,416 5, 667 Missouri 17 17 3,019 3,019 1 325 325 North Dakota 4 1 3 602 83 510 1 1 273 273 South Dakota 2 1 1 215 111 104 3 3 565 Nebraska 13 2 11 3 771 1,026 2,745 4 i 4 1 121 1 121 Kansas 7 7 724 724 South Atlantic: Delaware M aryland 2 2 3 336 \ 3 33ft District of Columbia Virginia 3 ^ 2 5,624 4,708 916 West Virginia 3 2 1 940 832 108 2 :: 2 964 1 964 North Carolina 26 9 17 23 235 11,113 12,122 1 South Carolina 6 1 5 1,425 324 1,101 Georgia - - 4 4 1,542 1,542 ~ Florida 1 1 284 284 East South Central: Kentucky _. __ _ _ _ 3 1 2 850 701 149 Tennessee 3 1 2 660 101 559 1 1 113 113 Alabama 1 1 573 573 i MississipDi 8 8 3 310 3 310 i West South Central: Arkansas __ 17 2 15 3,838 1,523 2,315 i Louisiana 2 2 3,023 3,023 1 2 194 9 1Q4 Oklahoma 3 3 457 457 1 1 38 38 Texas 6 1 1 4 1,166 568 32 566 2 22 3,336 3,336 Mountain: i Montana 2 2 302 302 Idaho __ __ 2 1 1 1,499 1, 336 163 1 -. 117 117 Wyoming 1 1 139 139 Colorado __ 5 2 3 1,171 1 513 658 New Mexico 1 Arizona _. i Utah 4 1 2 1 1,004 I 225 639 140 Nevada Pacific- Washington 6 2 4 4,555 2,397 2,158 Oregon 3 1 1 1 7,807 I 596 7,030 181 |i i California 6 3 3 4,656 | 1,752 2,904 j Total 353 64 18 271 319, 289 i 100,054 32,953 186, 282 27 3 24 18, 361 927 17 /(5i 1 * 1 Represents National banks only. 8 At the time of suspension one of these banks was a State member bank. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

75 JANUARY, 1932 FEDERAL RESERVE BULLETIN BANK SUSPENSIONS, BY STATES, JANUARY 1 TO DECEMBER 31, 1931 (Banks closed to public on account of financial difficulties by order of supervisory authorities or directors of the bank. Figures of suspensions during period include any banks which may have subsequently reopened. Figures of banks reopened during period include reopenings both of banks closed during period and of banks closed in prior periods. Deposits are as of date of suspension where available, otherwise as of latest available call date preceding suspension] [Figures for latest month are preliminary] Banks suspended Banks reopened Deposits (in thousands Number Deposits (in thousands of dollars) Number of dollars) State Members Members ba A n l k l s Na- State m N b e e o m r n s - - ba A n l k l s National State m N b e e o m r n s - - ba A n l k l s ba A n l k l s M be e r m s - i m N b e e o m r n s - tional New England: Maine 2 2 2,254 2,254 New Hampshire 2 1 1 1,177 402 775 Vermont Massachusetts 19 5 l - 13 102, 586 44,049 3,760 54, 777 1 1 2,426 2,426 Rhode Island . Connecticut 10 10 I§, 939 19,939 2 2 5,463 5,463 Middle Atlantic: New York 55 24 8 23 97,995 23, 872 45 901 28,222 1 1 18,801 18, 801 New Jersey 38 16 4 18 73,745 27,609 13, 684 32,452 2 2 __ . 3,178 3,178 Pennsylvania 137 42 6 89 274, 560 103,946 12 565 158,049 East North Central: Ohio 115 19 15 81 265,473 26,865 90, 041 148,567 3 3 1,081 1,081 Indiana 96 8 2 86 64, 238 10,955 10,823 42,460 20 20 10, 777 10, 777 Illinois . . 237 37 5 195 187,803 56, 572 16,984 114, 247 17 2 15 10, 540 5,737 4,803 Michigan 112 14 23 75 107, 500 17, 013 43, 237 47, 250 3 3 2, 636 2,636 Wisconsin 49 7 42 25, 221 6, 586 18, 635 10 1 9 4,723 773 3,950 West North Central: Minnesota 101 13 1 87 26, 659 4,882 496 21, 281 1 6 2,468 496 1,972 Iowa 209 22 3 184 89, 925 8, 917 30, 051 50, 957 2 1 1 7,710 7, 502 208 Missouri ._ _. 122 12 1 109 24,000 5,815 1,157 17, 028 9 1 8 1,954 166 1,788 North Dakota 66 13 53 8, 743 1,838 6, 905 2 1 1 445 273 172 South Dakota 73 13 60 13, 630 3,504 10,126 12 12 3, 527 3, 527 Nebraska 109 8 101 31, 874 5,922 25, 952 10 i 10 3,221 3,221 "Kansas 38 4 34 6, 662 1, 599 5,063 South Atlantic: Delaware ^Maryland 20 3 17 26, 543 3,784 22, 759 3 3 3,573 3,573 Dist of Columbia Virginia 37 6 1 30 17, 562 8,247 1,515 7,800 13 13 4, 525 4,525 West Virginia 56 18 4 34 38,151 14,010 3, 708 20, 373 7 1 6 5,922 2,152 3,770 North Carolina 61 14 47 33,104 14, C03 18, 501 33 3 . 30 10, 024 3,892 6,132 South Carolina 34 5 2 27 10, 556 1,603 501 8, 452 1 . i 1 182 182 Georgia 35 4 4 27 9, 391 1, 680 1,461 6,250 1 1 110 110 Florida 14 3 11 9,717 4,036 5, 681 1 - - - ! 1 816 816 East South Central: ETentucky 27 4 23 18, 330 8, 763 9, 567 10 10 16,057 16,057 Tennessee 31 4 1 26 5, 953 2,154 113 3, 686 4 4 419 419 36 8 1 07 7 046 2 093 356 4 597 Mississippi 08 8 1 49 28, 952 14, 294 400 14, 258 39 5 , 34 18, 510 8,268 10, 242 West South Central: Arkansas 58 8 6 44 13.425 3.239 2,866 7,320 36 6 30 8,926 1,424 7,502 Louisiana 7 7 f 4, 712 4,712 2 2 2,942 2,942 Oklahoma 24 2 22 4,057 223 3,834 5 5 531 531 Texas 86 30 9 47 49, 649 22, 564 12, 745 14,340 12 4 2S 5,506 783 4,723 Mountain: M^ontana 11 3 8 1,252 436 816 1 1 74 74 Idaho 10 4 2 4 2,847 1,731 843 273 1 1 117 117 Wyomin01 3 1,071 1,071 Colorado 21 7 14 3,494 1,214 2,280 New Alexico 1 1 752 i 752 1 1 ! 752 752 Arizona 5 1 4 2,968 402 2,566 Utah 9 1 2 6 8, 652 225 639 7,788 Nevada 2 2 172 172 Pacific: W^ashinsrton 22 6 2 14 11, 547 5,145 391 6,011 Oregon 14 4 3 7 11 058 1 582 8 255 1 221 j California. 18 8 1 9 14, 539 10, 280 210 4,049 Total 2,290 410 108 1,772 1, 759, 484 473,406 302, 762 983, 316 271 ! 31 • 240 157, 936 54, 314 103, 622 1 Represents national banks only, except as follows: 1 State member in New York with deposits of $18,801,000, 1 in Illinois with deposits of $5,200,000, 1 in Minnesota with deposits of $496,000, 1 in West Virginia with deDosits of $2,152,000, 1 in Mississippi with deposits of $911,000, and 1 in Arkansas with deposits of $202,000. 2 At the time of suspension 3 of these banks were State member banks. Back figures—See Bulletin for February, 1931, also Annual Reports for 1930 (Table 118), 1929 (Table 112), 1928 (Table 116), 1927 (Table 112), 1926 (Table 100), and 1925 (Tables 97 and 98). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

76 FEDERAL RESEEVE BULLETIN JANUARY, 1932 EARNINGS AND EXPENSES OF MEMBER BANKS NATIONAL BANKS,i BY FEDERAL RESERVE DISTRICTS, FIRST SIX MONTHS OF 1931 NOTE.—The following statistics of earnings and expenses of national banks were compiled by the Comptroller of the Currency from reports submitted by national banks [In thousands of dollars] Federal Reserve District Total Boston i Y N o e r w k d P e h lp il h a i - a C la le n v d e- m Ri o c n h d - At t l a an- Ghicag0 Lo S u t. is Min- K C s a a it n s y - Dallas c F S i r s a a c n n o - Gross earnings: Interest received— On loans 2.-. 359,757 29,483 79,125 30,725 28,951 18,141 16, 425 40, 702 12,034 13,229 i 20,417 18, 555 51,970 On investments 3 158,993 12,875 j 44,357 16,723 16,393 5,242 4,485 15,365 4,956 7, 528 8, 701 3,865 18,503 On balances with other banks ... 13,470 1,036 831 814 1,145 744 770 1,437 609 906 1, 1, 530 1,949 Domestic exchange and collection charges 7,019 233 | 1,887 211 228 284 853 238 504 376 717 Foreign exchange department. 7,424 210 i 5,643 344 101 12 107 434 26 15 32 496 Commissions received 328 13 2 5 3 70 19 153 37 26 Trust department 12,609 1,130 5,601 565 563 361 276 841 189 86 452 184 2,361 Profits on securities sold 28, 025 2,205 10,939 2,280 2,782 877 721 1,657 576 943 853 746 3,446 Other earnings 42,817 3,830 10,819 1,765 2,939 1,814 2,412 5,214 1,255 1,506 2,822 2,122 6,319 Total earnings.. 630, 442 51,002 159,215 53, 429 53,107 27,475 25,898 66, 573 19, 902 25,155 ! 35,489 27,410 85,787 Expenses: I Salaries and wages 133, 328 10,281 | 31,9i6 9,373 9,441 6,069 14, 453 4,633 i 5,752 | 9,037 6,737 19,963 Interest paid— On borrowed money - 4,030 182 553 503 389 367 451 325 229 86 ! 273 341 On deposits- Time 139,319 12,839 26,793 13,839 13,713 7,581 4,976 13, 711 4,520 6,818 5,791 4,113 24, 625 Demand 46,864 4,906 13, 229 4,090 4,756 1,342 1,724 5,019 1,398 1,417 2,875 2,144 3,964 Bank 21,192 1,158 4,849 1,251 2,823 727 847 1,923 726 897 1,826 1,261 2,904 Taxes. 26,872 1,433 4,242 2,460 2,310 1,327 1,028 5,212 1,213 1,952 1,499 1,819 2,377 Other expenses 77,947 5,763 19,845 5,291 3,111 3,604 9,486 2,434 3,305 5,166 3,689 10,887 Total expenses 449,552 36,562 101,457 36,812 20,093 18,699 50,129 20,227 26,467 20,094 65, 061 Net earnings 180,890 14,440 57, 758 16,617 14, 309 7,3 7,199 9,022 ! 7,316 20,726 Recoveries on charged-off assets: Loans and discounts 8,579 610 2,113 213 532 935 785 678 Bonds, securities, etc — 4,419 1,838 1,002 269 172 31 212 131 299 All other - 5,123 1,941 91 136 450 282 316 Total net earnings and recoveries - — 199,011 17, 211 62,814 17,190 15,679 7,815 j 7,735 I 18,249 5,341 5,825 10,619 | 8,514 22, 019 Losses charged off: On loans and discounts 101,565 5,953 46,855 4,659 5,970 5,648 i 3,534 8,853 2,298 ! 2,658 4,648 | 4,518 5,971 On bonds, securities, etc 71, 579 8,131 25,731 8,402 9,211 3,518 | 1,073 4,634 2,228 j 1,481 2,254 592 4,324 On a n b d a n fi k x i t n u g re s house, furniture, 6,981 362 2,142 329 570 178 i *?! 895 127 212 389 i ! 208 1,321 On foreign exchange — 84 12 51 12 2 All other losses -. 11,212 709 602 460 1,706 ; 955 539 472 515 ! 454 1,441 361 j Total losses charged off 191,421 15,167 77, 777 13,992 16,223 11,050 j 5, 223 j 15, 3395,192 4,823 7,806 ! 5,772 13, 057 Net addition to profits.. 7,590 2,044 * 14,963 3,198 •544 i 3,235 2,512 2,910 149 1,002 2,813 I 2, 742 8,962 Dividends declared 100,240 8,338 35,492 9,309 6,263 3,702 3,132 9,199 3,252 2,991 3,652 ! 2,760 12,150 Capital stock paid in 5_ 1,684,238 155, 405474,439 125, 012 122,233 79,200! 77,395177,805 58,169 59,105 81, 5381190, 240 SSuurrpnlluuss ffuunndd a5 1,491,,814 121,021 519,499 208, 089 133, 791 60, 033i 52,297!l21, 375 33,766 i 33,709 41,088 43,129j 124,017 Capital and surplus 5 3,176, 052:276,426 333,101 (256,024 139,233 129,692 '299,180 91,935 92,814 124,785 ! 124,667 ; 314, 257 Number of banks5 6,800 354 746 662 I 631 419 i 327 i 412 | 575 832 580 i 453 1 Member banks only, i. e., exclusive of national banks in Alaska and Hawaii. * Net loss. 2 Includes discount. * As of June 30,1931 3 Includes dividends. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

JANUARY, 1932 FEDERAL RESERVE BULLETIN 77 EARNINGS AND EXPENSES OF MEMBER BANKS—Continued STATE BANK MEMBERS, BY FEDERAL RESERVE DISTRICTS, FIRST SIX MONTHS OF 1931 [In thousands of dollars] Federal Reserve District Total .Boston! I Y N o e r w k P p d h h e i i l l a - a- C la le n v d e- m Ri o c n h d - I At t l a an- Ch g i o ca- L S ou t. is n M o ea l i i n p s - - K C an it s y as Dallas ! F S r a an n - Gross earnings: Interest received— On loans 1 213,782 i 10,636 So,966 14,184 32,447 5.237 4,117 37,873 8,285 814 1,429 1,682 :11,112 On investments 2 87,894 4.768 37,154 8,379 11,840 1,382 ; 922 14,189 ! 3, 596 440 800 230 On balances with other 4,194 banks 4, 655 1,236 454 612 262 i 111 658 ; 300 52 180 90 ' Domestic exchange and col- i 512 lection charges 1, 651 277 65 149 117 j 537 ; 216 j 30 ! 14 I 20 Fo m re e i n g t n exchange depar _ t- -. 3,811 52 ; 2.50-1 m| 52 I 69 i 738 > I 14 ! 1 1 2 6 1 o T C r o u m st m d is e s p io a n rt s m r e ec n e t ived 2 1 5 0 , , 1 8 3 2 5 2 2, 3 14 0 5 9 | ! 1 S 0, . 0 S 6 7 9 7 3.6 1 2 1 0 7 i 3 2 , 7 1 1 8 Ij 5 3 1 0 3 5 0 ! ! 3 5 0 4 1 i , 4,0 4 1 1 5 8 ; 3 6 6 6 5 2 | i 2 9 2 ! I 159 5 1 2 7 6 1 4 9 8 0 Profits on securities sold 14,734 !. 988 1 6,254 | 1,197 j 1,287 158 ! 218 ! 2.932 j 551 ' 65 ! 288 118 678 Other earnings 18,625 i: 790 5,074 ! 1, 132 i 3, 980 I 432 i 661 3,2S9 : 874 i 65 i 556 237 1,529 Total earnings.. 381,109 19. 910 157,461 \ 29,175 j 53, 906 j 8,0756,530 | 64,649 , 14,863 > 1,497 j 3,4472,446 : 19,150 Expenses: i Salaries and wages 81, 687 3.716 : 34, 767 6,073 j 10,507 1,885 1,365 : 13,644 3,270 ; 352 873 ! 735 Interest paid— i On borrowed money i _ _ _ 2, 900 41 | 1,065 359 253 87 170 i 351 439 | 9 20 | 48 58 On deposits- Time 71,115 5.052 20, 398 4,467 14,695 1,688 1,099 13,487 3,062 | 435 313 218 6,201 Demand 35, 248 2. 264 14, 237 3,441 4,903 599 614 ! 6,357 996 : 71 493 117 1,156 Bank 10, 508 225 4,572 824 1,608 407 249 1,335 316 35 244 98 595 Taxes 17, 718 988 6,660 1,148 3,639 316 611 3,081 646 j 93 85 104 447 Other expenses 45. 678 2,198 19,198 3,489 5,414 1.166 1,105 , 6,953 2,225 I 186 472 2,603 Total expenses 264,854 14,484 i 100,897 19,801 41,019 6,148 5,113 i 45,208 ! 10,9541,181 2,697 1,795 I 15,557 Net earnings 116, 255 5,426 56,564 9,374 12,887 1,927 1,417 ! 19,441 ! 3,909 316 750 651 3, 593 Recoveries on charged-ofY assets: Loans and discounts 3,269 130 1,478 38 300 97 145 i 620 j 197 ; 27 21 129 : 87 Bonds, securities, etc 1, 146 62 ! 639 21 212 24 2 ; 61 ; 93 j 5 20 All other 1,889 51 98 171 33 ; 245 l 111 ! 13 ~~55~ 118 ; Total net earnings and recoveries. I 122, 559 5, 669 59.567 I 9,53113,570 | 2,087 j 1,597 j 20,367 | 4,310 j 363 826 903 I 3,769 Losses charged off: ! O n loans and discounts ! 26, 816 12, 809 1, 546 2,059 ! 462 3,072 j 3,704 j 1,323 190 i 504 743 On bonds, securities, etc :• 18,458 468 9,294 ! 1,6562,791 ! 188 j 1,901 i 1,089 : 658 31 i i 9 370 On banking house, furniture, j and fixtures j 7,046 157 5,474 ! 135 362 j 24: 433 124 12 267 All other losses • 2, 964 175 560 160 443 ! 270 ; 452 j 164 178 ! 57 445 Total losses charged off | 55,284 1,072 28,137 3,497 5,655 i 742 5,267 5,678 i 2,269 ! 245 315 ! 582 ! 1,825 Net addition to profits \ 67,275 4. 597 31,430 I 6, 034 7, 915 ! 1, 345 4 3, 670 I 14, 689 i 2,041118 511 I 321 1, 944 Dividends declared j 73,545 2,969 38,652 i 6,082 7,110 i 1,1871,104 12,033 ! 2,199 175 490 ! 1,278 Capital stock paid in 3 ; 936,118 i 39,905 I 426.148 58, 611105,543 I 26,365 18,630 159, 586 I 42,0953,045 8, 530 8.265 ! 39,395 Surplus fund 3 1,249,699 i 49,088 j 661,467 147,456 153,054 | 16,281 12,980 1153,149 23,693 1,688 3,218 2,800 ! 24,825 Capital and surplus 3 ;2,185,817 I 88,993 |1,087,615 J206.067258,597 42,646 31,610 1312,735 ! 65,7884,733 11,748 i 11,065 i 64,220 Number of banks.. 981 33 i 156 82 88 39 44 199 40 106 1 Includes discount. 3 As of June 30, 1931. 2 Includes dividends. < Net loss. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

78 FEDERAL RESERVE BULLETIN JANUARY, 1932 ALL BANKS IN THE UNITED STATES ALL BANKS IN THE UNITED STATES—PRINCIPAL RESOURCES AND LIABILITIES ON CALL DATES [In millions of dollars; figures for nonmember banks are for dates indicated or nearest thereto for which figures are available] Loans and investments Deposits, exclusive of Rediscounts and interbank deposits bills payable Total Loans Investments Federal reserve district 1930 1931 1930 1931 1930 1931 1930 1931 1930 1931 Sept. June Sept. Sept. June Sept. Sept. June Sept. Sept. June Sept. Sept. June Sept. 24 29 24 30 29 24 30 29 24 30 29 24 30 29 ALL BANKS* i Boston. 6,871 6,767 6,754 4,408 4,130 4,065 2,463 2,638 2,690 6,340 6,332 6,269 4a N M D R S S A C P K C a t h h i l e a a t . i c e n l i i l w n n a h v c l L l s n a a n a F m e o a s d e g Y t l r s u a a o a e o a o n i p n l n C s r p d o d c k h i l i t i s i s y a c . . . o _ . . . . . . 1 4 4 4 2 7 1 1 1 1 1 9 . , , , , , , , , , , 7 0 4 9 3 4 5 8 6 3 2 9 2 4 7 0 7 0 9 2 9 8 6 0 7 5 5 7 9 3 1 7 0 1 4 4 6 4 2 1 1 1 1 1 9 , , , , , , , , , , , 6 1 3 5 3 7 2 5 0 3 3 1 9 7 6 1 3 2 5 3 1 2 9 4 5 3 8 9 4 8 2 0 3 1 4 4 2 6 4 8 1 1 1 1 , , . , , , , , , , 9 1 1 3 6 2 2 0 5 3 9 0 6 7 3 7 2 2 3 4 7 5 0 3 3 7 5 0 8 9 6 2 3 1 3 3 3 5 2 1 1 1 1 , , , , , , , , , 1 0 8 8 2 7 4 6 7 1 7 5 2 3 6 2 4 5 0 6 2 0 5 2 0 3 3 0 3 6 8 8 0 1 4 2 2 2 1 1 1 2 , , , , , , , , 1 0 8 4 7 6 4 4 9 7 7 4 0 9 9 7 1 1 4 3 9 1 5 9 1 6 9 9 8 2 8 8 8 11 2 2 4 2 1 1 , ; , , , , , 1 3 6 7 4 9 7 8 9 6 3 1 2 6 1 0 1 5 7 4 5 1 4 5 6 6 0 6 6 6 8 8 3 5 1 1 1 1 , , , , , 9 3 6 6 7 6 5 3 5 5 2 5 5 7 5 8 4 7 8 3 8 6 9 5 0 6 1 4 7 5 5 5 5 6 2 1 1 1 , , , , , 6 4 8 0 8 4 5 5 7 5 2 5 7 6 0 8 7 6 0 6 3 9 4 5 0 0 1 4 6 0 5 3 3 7 1 1 1 1 , , , , , 5 4 8 8 0 4 5 5 7 5 2 4 5 7 2 9 6 6 1 9 3 5 9 7 1 4 7 3 1 2 4 8 6 1 4 3 4 7 2 1 1 1 1 1 7 , , , , , , , , , , , 8 0 8 4 4 2 2 4 7 0 2 2 8 1 7 0 0 2 1 5 3 1 9 5 8 5 1 1 3 3 4 3 2 1 4 3 4 6 2 1 7 1 1 1 1 , , , , , , , , , , , 6 0 3 3 6 1 1 4 1 7 8 6 0 0 3 8 8 3 1 4 4 2 9 7 4 5 3 2 8 4 6 9 2 1 3 6 3 3 1 1 1 1 1 7 , , , , , , , , , , 0 9 9 2 2 8 5 5 5 9 0 1 2 2 9 4 2 7 8 2 5 2 6 1 8 3 3 9 0 3 0 2 8 1 1 4 5 9 0 1 5 5 7 2 2 1 0 9 0 6 4 9 0 1 7 6 2 Total.. 57, 590 55,021 53,361 39, 715 35,384 ] 33,752 17,875 19,637 19, 609 52,784 51, 782 49,152 563 ! 452 695 MEMBER BANKS Boston _-. 2,583 2,456 2,432 1,808 1,588 1, 543 775 2,328 2,260 2,203 17 ! 25 New York 12, 093 11, 661 11,515 8, 595 7,537 7,165 3,498 4,124 4,350 10,358 10, 637 9,694 69 I 96 Philadelphia- 2,737 2,788 2,740 1,814 1,674 1,619 922 1,114 1,121 2,280 2,402 2,286 27 ! 72 Cleveland 3,530 3,370 3,203 2,300 2,113 2,012 1,230 1,257 1,191 3,159 3,042 2,884 23 I 67 Richmond 1,206 1,141 1,137 882 785 772 324 356 365 1,104 1,079 1,027 26 ! 36 Atlanta 1,053 957 960 768 646 635 284 312 325 962 916 863 34 j 34 Chicago 4,967 4,486 4,238 3,642 3,025 2,869 1,324 1,461 1,369 4,594 4,265 50 I 27 M St. i n L n o e u a i p s olis. _. 1,2 8 8 7 9 2 1, 8 1 4 37 0 1,1 8 0 2 9 1 8 5 9 1 9 5 4 7 7 0 9 2 6 45 8 6 3 3 3 8 5 9 8 4 3 3 6 5 1 4 3 2 6 6 5 1,1 8 5 7 1 6 1, 8 0 4 5 6 7 1, 8 0 0 0 0 0 I i 259 !I 1 5 9 Kansas City... 1,160 1,102 1,064 741 653 614 419 449 450 1,192 1,101 1,044 : 9 15 Dallas 868 803 776 649 560 532 219 243 244 850 789 738 i is; 17 San Francisco» 3,116 3,182 3,077 2,124 2,053 1,973 992 1,128 1,104 2,984 3,172 2,941 ! 10! 52 -I- Total. 35,472 33,923 33,073 24, 738 21,816 20,874 j 10,734 12,106 12,199 31,839 I 31,566 29,469 ! 316 I 217 466 NONMEMBER BANKS I Boston 4,287 4,311 4,322 2,599 2,542 ! 2,522 I 1,688 1,770 1,801 4,011 4,073 4,066 18 New York 7,188 7,662 7,438 4,905 4,906 4,691 I 2,283 2,757 2,748 6,675 7,185 7,334 18 Philadelphia- 1,672 1,551 1,396 939 805 694 733 746 703 1,474 1,347 1,234 33 Cleveland 1,364 1,180 1,046 924 783 688 440 397 358 1,253 1,096 23 Richmond 1,185 1,083 1,026 824 705 653 361 377 372 1,108 1,034 23 Atlanta __ 453 381 368 360 293 281 93 88 87 439 387 361 15 Chicago 2,660 2,133 1,998 2,026 1,593 1,496 635 540 502 2,607 2,181 2,027 44 St. Louis 686 581 566 541 442 431 146 139 135 666 612 570 21 Minneapolis... 575 522 482 348 319 292 227 204 190 600 537 493 7 Kansas City... 559 473 456 434 356 344 125 117 112 638 535 505 12 Dallas 228 209 194 181 158 144 47 51 50 235 218 190 San Francisco - 1,261 1,012 995 642 363 346 353 1,239 1,009 980 Total.. 22,118 21, 099 20,288 14, 977 13,568 12,877 j 7,141 7,531 7,410 20, 945 20, 216 19,682 j 247 235 230 1 Includes all national and State banks (including stock and mutual savings banks) and all private banks under State supervision. Back figures.—See BULLETIN for July, 1930, and January and July, 1931; also Tables 42, 43, and 87-90, Annual Report of the Federal Reserve Board for 1930. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

JANUARY, 1932 FEDERAL RESERVE BULLETIN 79 ALL BANKS IN THE UNITED STATES i—PRINCIPAL RESOURCES AND LIABILITIES ON SEPTEMBER 29 AND JUNE 30, 1931, BY STATES [Amounts in thousands of dollars] Loans and investments Deposits, exclusive of interbank Rediscounts and Number of redeposits bills payable porting banks State Total Loans Investments Sep- Sep- Sep- Sep- September June tember June tember June tember June tember June temper! New England: N M e a w in e Hampshire. 4 2 2 9 9 7 , , 9 7 6 1 4 9 4 2 2 9 8 7 , ,20 28 4 2' 2 1 2 4 6 3 , ,8 03 6 0 7 ; i 2 1 2 4 9, 5 ,4 0 9 9 3 7 2 1 0 53 3 , , 8 9 5 3 2 4 ; 1 1 9 5 9 1 , , 1 7 8 1 5 1 4 2 0 7 5 1 , ,1 4 7 1 9 3 403,,285| 5 1, ,4 9 8 3 2 7 4 2, , 7 4 8 0 7 8 1 1 1 1 8 9 1 11 2 9 2 Vermont 226, 344 230,081 i 141,008: 145,524 85, 336 i 84, 557 217,687 268,457 3,363 3,777 100 100 Massachusetts 4, 219, 3714,229,246 1 2,676,730 2,714,033 ,542,641!1, 515, 2133, 911, 569 222,757 23,233 9,219 444 444 Rhode Island 545, 394 271,764 276,991 273, 630! 265, 638 512, 818 3, 960, 560 2,050 350 35 35 Connecticut 1, 340.995 I, 346^ 907, 762,695: 779, 216 578, 300 567, 691 1, 234, 111 512, 748 8,735| 6,44' 231 231 Middle Atlantic: 1,251,802 New York. 16, 808, 546 17,128, 040,10,609,101 11,140,155 >, 199, 4455|, 987, 885 15i,, 000, 722 1i5,, 685,052 2 76,104 2 45,498 1,043 1,079 New Jersey.. 2, 225, 984 2,279,870 1 1,339, 701i 1,397,954 886, 283 j 881,916 2,112, 770 2, 220,907 46,921 35, 944 531 545 Pennsylvania. 5,350,175 5, 663, 201; j 2, 873, 0441 3,073,384 5,477,13 lj2, 589,817 4,488, 329 4, 800,077 133,135! 74,672 1,397 1,452 East North Central: Ohio 2, 256,6112,436, 854!j 1,614,828; 1,763,168 641, 7831 673,686! 2,159,959 2,355,467 46,422| 34,014 872! 921 Indiana.. 654, 569 669,024 !i 454,193. 468,822 200,376! 200,202! 657, 937 687,570 10,861! 9,628 803! 812 Illinois 2,992, 6573, 207,105 1,981,449; 2,121,479 L, 011,208i1,085, 626 i 2,796,622 2,998,275 30,839 29,966 1,4151 1,463 Michigan _.. 1, 624, 5271,744,089! 1,136,0601 1,216,860 488,4671 527, 229! 1,602,081 1,745,070 21,522; 15,459 628! 672 Wisconsin 834, 807 871,267, 550,606: 572,332 284,201! 298,935! 798,218 861,227! 9, 285, 7,137 899| 915 {Vest North Central: Minnesota. 824, 971 849,973! 471,058 490,018 353,913, 359,955! 806,811 856,120| 4,529; 4,842 913] 937 Iowa 682,832 566,782, 578,333 99, 516j 104,499! 686, 093 703,2901 7, 903 6,593 1,095 1,107 Missouri 1,070,181 1,102,418H 653,975, 683, 974 416, 2061 418,444' 1,040,231 1,100, 699! 12,006 11,705 1,064 1,101 North Dakota... 82,198 88,565:: 54,8841 60, 993 27,314| 27,572 j 84,540 91,233 1, 059 •• 1,549 272| 302 South Dakota... 97, 969 109,128:, 61,928; 71, 985 36,041i 37,143i 97,825 112,390 2,0311 2,476 283! 320 Nebraska 287, 555 303,456 •• 202,987; 209,816 84,568; 93, 640 293, 550 308, 5601 6, 290: 4,902 726 727 Kansas 319,103 326,251;: 213, 359i 225, 506 105, 7441 100, 745 316, 989 340, 008 6, 8021 5,491 954 975 South Atlantic- Delaware. _ 167, 019 165,816! 99,439 102, 422 67, 580' 63, 3941 143, 873 144,192 8701 I,1 47 48 D M i a s r tr y i l c a t n o d f . Colu - mbia... 2 79 5 2 7 , ,3 5 3 0 1 6 2 8 4 42 9 , , 6 4 6 8 3 3 '• 4 15 1 8 6 , ,4 5 1 6 7 1' , ! 4 1 5 5 6 8 , , 0 2 9 9 2 3 , ] 3 9 7 8 6 , ,0 7 8 7 9 0 ! ' 38 9 6 1 , ,1 5 9 7 0 l ; j 2 7 6 0 0 7 , ,4 1 3 9 4 4 2 8 5 0 9 1 , , 7 9 2 0 0 5 17 2 , ,34 97 9 7 i | 5,849 2 3 01 9 21 3 9 9 Virginia 481,652 489,085: 378, 524 390, 252 103,128! 98,833i 426, 543 438,481! 11,337j 260 423 430 West Virginia... 289, 494 301, 708: 220, 976 230.654 68, 518' 71,054! 262,649 283, 290j 11,426; 10,953 251 262 North Carolina.. 281, 094 277,775:; 217,693 217,923 63,4011 59,852 260, 298 259, 630 12,707| 8,724 324 324 South Carolina- 133, 210 137, 376 ''. 87, 984 93,964 45,226 43,412! 131,556 139,0451 4, 6621 11,668 136! 141 Georgia 299, 75' 291,430: 212,444 215, 528 87,313 75, 902! 281, 037 283,1301 7, 566; 2,933 342 344 Florida 182, 44' 189,660, 71, 400 75, 540 111,047! 114,120! 182,821 202, 016 2,248j 7,464 193 East South Central: 1 1,738 Kentucky 412, 748 420,958" 317,574! 323, 019 95,174! 97,939 355, 942 366,7611 7,989, 7,503 513 515 Tennessee 345, 481 347,952: 280,910, 280,687 64, 571' 67, 265 327,180 343, 5421 14,758 7,914 430 . 433 Alabama.. 218,392 226,598 158,9701 170,146 59,422 56,452 191,180 204,374, 10, 234! 9,135 265 286 Mississippi 145, 520 147,4771 102, 833, 104,974 42,687! 42,503 133,863 148, 5641 12,353! 6,452 245 247 West South Central: Arkansas 127,019 135, 370! 94, 065! 99, 947 32, 954 35,423,! 117, 904 137,127 7, 668! 4,177 312 321 Louisiana _. 375, 558 376,803, 275, 949! 277, 311 99, 609 99,492! 338, 260 373,923 17,845! 5,740 206 206 Oklahoma 309, 876 327, 843 188,591! 202,281 121, 285 125, 562! 311,075 338,123 6,325' 5,231 539 550 Texas 849, 567 885,029, 593,611! 631,058 255,956 253,971' 817,705 879, 581 18,342 14,353 1,146 1,176 Mountain: I Montana. 115, 854 119,763! 60, 530: 65,071 55,324 54,692 119, 574 126,442; 1,577 1,459 162 166 Idaho 63, 257 67, 5601 36, 985 j 39,921! 26, 272 27, 639 J 69, 364 76,364 941 829 129 131 Wyoming 50, 364 52,096; 35,085| 15, 279i 15,2381 50,440; 53, 946 2,141 1,168 81 82 Colorado 239, 960 241, 2691 127, 290 131,427 112, 670] 109,842i 255,847 260,4351 2,978 2,074 249 250 New Mexico 32, 907 35, 247 i 19, 651 21, 691 13, 256 13,556! 33, 526 37,189 1,695 830 50 52 Arizona 59,485 62, 801 31,831 34, 015 27,654 28,786 64,275 70,754 932 290 35 37 Utah 137, 933 150,698 97, 652 106, 854 40, 281 43,8441 108,852 121,705 1,995 l,57o! 93 96 Nevada 34, 232 33, 943 25, 209 25, 674 9,023 8,269] 35,111 36,678 L 32 33 Pacific: Washington 422,663 439,938 248, 707 257, 548 173, 956 182, 390 409,505 432, 992 4, 664 2,346 317 Oregon 226, 547 229,430' 104,225 111, 739 122, 322 117,691 231, 463 241,485 1,938 2,601 208 215 California 3,153, 158 3, 238, 910! 2, 082, 366 2,158, 089 1,070, 792 1,080,821 3,028, 732 \, 235,064 49,352 10,578 404 411 Total _ 53, 360, 969 55,021,1031 33,751, 521 35, 384, 111 19,609, 448 19, 636, 992 49,151, 657151,782,012 695, 378 451,804 21,301 21,903 1 Includes all National and State banks and all private banks under State supervision. Figures for State institutions are taken from page 81 and represent in some cases the condition of banks as of dates other than Sept. 29 and June 30, 1931. 2 Excess over figures shown on pages 80 and 81 is due chiefly to technical differences between reports to the board and reports to State banking authorities. Back figures.—SeeT ables 91-93, Annual Report of Federal Reserve Board, 1930. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

80 FEDERAL RESERVE BULLETIN JANUARY, 1932 NATIONAL BANKS —PRINCIPAL RESOURCES AND LIABILITIES ON SEPTEMBER 29, AND JUNE 30, 1931, BY STATES [Amounts in thousands of dollars] Loans and investments De si p v o e s i o ts f , i nte e r x b c a l n u k - R b ed il i l s s c p o a u y n a ts b l a e nd N po u r m tin b g e r b o a f n k re s deposits State Total Loans Investments Sep b t e e r m- June . Se b p e te r m- June i i Sep b t e e r m- June Sep b t e e r m - ; ; June Septera- June ber June New England: I j Maine 129,205 131,189 68,523 71,1081 60,682 60,081 122,019! 122,206 1. 709 New Hampshire 72,265' 71,750 i 41,25l| 42,877 31,014 28,873 62.290! 59, 568i 1.297 Vermont _ 63,950 64,651 ' 35,087; 36,528 28,863 28,123 56,4451 56,476 792 Massachusetts.... 1,291,283: 1,301,914 8oO,901j 870,993) 440, 382 430,921 1,168,794, 1,207,508 14, 731 Rhode Island 53,389 54, OS.) 30,948, 32,802i 22,441 21, 287 4411,331188 4422,001199 1,075 Connecticut | 251,961 254,016 171,687 177,453' 80,274 76,563 225,189' 234, 551 3,985 Middle Atlantic: I New York ! 4,822,871 4,972,923 2,955. 533- 3,184, 591 1,867, 3381, 788,3324,015,677 4,407,3741 43,807 526! 541 New Jersey ! 816,075 835,808 475,032, 499,963 341,043 335,935 787,437; 820,714 20,011 2891 294 Pennsylvania I 2.521,924' 2,629,981 1,387,860 1,455,273 1,134,064 1,174,7082,089,173! 2,215,9191 63,252 8031 East North Ontral: Ohio 660,758 635,465 434,115, 423, 772 226,643 211,693 004,950: 605,819 13,885 Indiana : 304.146 318,601 190, 387i 205, 016 113,759 113,585 2(J2,271.! 321,904 3,736 Illinois 955)298! 1,120,205 600, 485! 723,840 354,813 396,365 918.323, 1,068,679 9, 327 Michigan 452,931 485,108 j 299,153! 318,670 153, 778 166,438 449,127; 495,817 4, 595 Wisconsin,. 403,889! 422,739 262, 5531 269,219 141,336 153,520 376,150 401,350 1,755 West North Central: j M innesota 407,537 504,066 290,062| 300,191 207,475 203,875 472,953: 503,232 1,00; Iowa 217,649- 234,183 130,984i 142,535 86,665 91,648 211,166 228,363 2,018 Missouri j 404,695! 409,811 237, 325 i 242, 505 167,370 167,306 352,287; 354,920 4,114 North Dakota.. 58,954 61,759 35,020! 37,816 23,934 23,943 60,103 62,528 453 South Dakota.. 55,337 59,906 30,066| 34,187 25,271 25,719 54,284! 59, 565 1,156 Nebraska 172,594: 188,495 ! 112,717 119,546 59.877 68,949 167,149! 182,159 3,937 Kansas 168,456 169,886 I 96,947! 103, 235 71, 509 66,651 163, 702 177, 783 2,249 South Atlantic: Delaware _ 20,963 20,742 I 11,029 11,346 9,931 9,396 17, 339^ 17,228 317! M aryland.. _ 187,464 191,553 ! 98,344 102, 301 89,120 89, 252 162, 343. 170,929 1,041, District of Columbia... 139,378 132,626 I 81,364 81, 302 58.012 51, 324 143,646: 141, 485 200| Virginia 280,868 280,400 212,372 218,202 68,496 62,198 256,1481 261,112 4,939 West Virginia 143,332 146, 506 104, 584 107,127 38, 748 39,379 127,098J 134,719 3,966 N orth Carolina 88,5091 85,190 66,189 66,419 22,320 18,771 75, 594! 74,926 5.8251 South Carolina._ 56,701 57, 516 j 39, 271 40, 728 17,430 16, 788 54,098i 55,801 1,151 Georgia 100,773 196, 703 ! 125. 5691 133, 522 71,204 63,181 193,370 197,308 2,285! Florida 129,207 134,876 44,90?j 47,337 84, 305 87,539 128,142! 141,156 655 East South Central: Kentucky 180,182 188, 392 j 128,882; 134,327 51,300 54,065 158,4551 169,274 3,347 Tennessee 215,319 217,7S0!i 168,546! 168, 323 46,773 49,467 187,993' 204, 355 3,1131 Alabama 161,154 162, 786 I 110,449! 114,593 50, 705 48,193 137,176 145,352 4, 298 M ississipr i 51. 424 51,078 I 34, 384: 35,353 17,040 15,725 47,897| 51,329 1,165i 28 West South Central: ; Arkansas 52,979 54,994 31,67o| 32,546 21,304 22,148 47,318! 53, 724 2,064 56 Louisiana : 07,649 99,348 71, 3271 71,331 26,322 28,017 79,934; 90,750 4,028 Oklahoma ' 257,795 269,821 156,141 165,800 101,654 104,021 257,637i 277,203 4,135 260 Texas ' 670,265; 685, 763 459,055! 477,907 211,210 207,766 641,859j 672,703 13,102 537 Mountain: | Montana 65.3991 66,985 30,585 33, 459 34,814 33,526 68,458; 71,076 56 Idaho ! 29,030! 30,291 17,657 18,797 11,373 11,494 30,449| 32,956 Wyoming : 30,1861 30,322 19,331 19,674 10,865 10,648 30,050 31,024 Colorado 190,801! 192,110 94,474 98,611 96,327 93,499 204,422! 209,010 New Mexico : 23,769| 25,614 13,595 15,163 10,174 10,451 24,591: 27,74.8 Arizona,. 20,954j 22,510 10,270 10,690 10, 684 11,820 22,482: 24,468 Utah i 39,940i 43,132 23,294 24,920 16, 646 18,212 34,394 i 37,143 Nevada 17,073 16,336 10,484 10, 370 6,589 5,986 15,446: 15,832 10 Pacific: I Washington ! 247.859 256,991 132, 598 135,999 115,261 120,992 232,3271 246,112 100 Oregon 170, 467' 171,456 70,013 75, 450 100,454 96,006 171,816! 179,200 90 California __ ; 1,981,3541 2,066,064 1,362,536 1,418,464 618,818 647,600 1,884,871! 2,055,870 Total :20,121.969120,824,530 12,465,55613,162,271 7,656,413 7,662,259 18,126,160-19,418,337 324,198 153, 493 6,653; 6,800 I 1 Member banks only, i. e., exclusive of National banks in Alaska and Hawaii. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

81 JANUARY, 1932 FEDERAL RESERVE BULLETIN STATE BANKSx—PRINCIPAL RESOURCES AND LIABILITIES ON SEPTEMBER 29 AND JUNE 30, 1931, BY STATES [Amounts in thousands of dollars] Loans and investments Deposits, exclusive Rediscounts Number of Total Loans Investments p of o s i i n ts terbank de- and b a i b l l l e s pay- reporting banks Sop,™- ! s tri >™ Se b p e te r m- June Se b pt e e r m- i June ber New England: Maine 300,759 297,093 j 157,507 157,989 143,252 139,104 283,3941 280,' 3,773 3,043 74 75 New Hampshire _ _. 225,454 225,454! 102,616 102,616 122,838 122, 838 208, 889! 208,889 640 640 65 65 Vermont 162,394 165,430! 105,921! 108,996 56,473 56, 434 161, 242 i 166,281 2,571 2,800 55 55 Massachusetts 2,928,088 2,927,332;' 1,825,829! 1,843,040 1,102,259 1, 084,2922, 742, 7751 2,753,052 8, 502; 6,437 295 295 Rhode Island 492,005 488,540!i 240,816| 244,189 251,189 244, 351 471, 500 470, 729 975. 25} 25 Connecticut 1,089,034 1, 092,8911! 591,008! 601,763 491,128 1,008,922 1,017,251 4, 750 3,785 170: 170 Middle Atlantic: New York 11,985,675,12,155,117!7,653,568 7,955,564 4,332,107 4,199, 553J10, 985,045 11, 277, 67820, 297 15, 357 517: 538 New Jersey j 1,409,909 l,443,972|i 864,669 897, 991 545, 240 545,9811 1,325,333 1, 400,193 26,910 22,292 242i 251 Pennsylvania ; 2,828,251 3,033,220j|1,485,184; 1,618,111 1,343,067 1,415,109; 2,399,156 2, 584,158 69,883 53,967 594 644 East North Central: Ohio.. ; 1,595,8531 1, 801, 389j'1,180,713 1,339,396 415,140 461,9931 1,555,009! 1,749,6482 32, 537 2 28, 896 593I 031 Indiana ' 350,423! 350,423! 263, 806 263,806 86,617 86, 6171 365,666! 365,666 7,125 7,125 6251 625 Illinois 2,037,359! 2,086,900 1, 380, 964 1, 397, 639 656, 395 689,2611 1,878,299 1,929,596 21,512! 22,240 1,005! 1,045 Michigan ; 1,171, 5961 1,258,981 i 836,907 898,190 334,689 360,791 1,152,954! 1,249,253 16,927, 11,462 515! 553 Wisconsin ' 430, 918! 448, 528: 288,053 303,113 142,865 145,415 422,068J 459,877 7,530j 5,805 754! 767 West North Central: ! Minnesota 327,434; 345,907 180,996 189,827 146,438 156,080 333,858 352,888 3, 522 Iowa 448, 649 448,649i 435, 798 435,798 12,851 12,851 3474,927j 3 474,927 i 5,885: 5,885 893 893 Missouri 665,486 692,607 416,650 441,469 248,836 251,138 3 687,944 js 745,779j 7, 892: 6,915 948 983 North Dakota 23, 244: 26,806, 19, 864 23,177 3,380 3,629 24,437; 28, 7051 606 720 181 204 South Dakota 42,632 49, 222 31,862 37,798 10,770 11,424 43,541! 52,825 875; 1,163 199 228 Nebraska 114,961 114,961: 90, 270 90, 270 24, 691 24, 691 126,40l! 126,401 2,353 • 2,353 562 562 Kansas., 1 150,647: 156, 365; 116,412 122, 271 34, 235 34,094 3 153,2871 3162, 225 i 4, 553| 3,838 721 738 South Atlantic: j Delaware j 146,056 145,074: 88, 410 91,076 57.646 53,9981 126, 534| 126,964; 5621 779 31 32 Maryland | 605, 042 651,110 318. 073 353, 791 286,969 297, 319i 545,09l! 630,976! 15, 4C6! 4,808 130 146 District of Columbia...! 117,955 116,857! 77,197 76, 991 40, 758 39, 8661 116,548! 118,235! 599 60 27 27 Virginia ... 200,784 208,685: 166,152 172,050 34,632 36, 635 170,395 i 177,369' 5,769 6,014 273 277 Wrest V irginia _ 146,162 155, 202 i 116,392 123, 527 29,770 31, 675 135,5511 148,571! 5,779: 4,758 149 158 North Carolina ' 192,585 192, 585 151,504 151,504 41,081 41,081 184, 704 184,704i 5,843i 5,843 269 269 South Carolina ; 76, 509 79,860 48,713 53, 236 27,796 26, 624 77,458 83, 244! 3, 644 1,782 106 110 Georgia 102,984 94, 727! 86, 875 82, 006 16,109 12,721 87. 667 85,822! 5,186: 5,179 275 275 Florida ; 53, 240 54,784j 26,498 28, 203 26, 742 26, 581 54, 679; 60, 860; 1,286' 1,083 142 142 East South Central: Kentucky 232,566: 232, 566 188, 692 188,692 43, 874 43,8741 197,487! 197,487j 4,156 4,156 392 392 Tennessee I 130,162 130,162, 112,364 112, 364 17,798 17, 798i 3 139,187 i 3 139,1871 4,801! 4,801 340 340 Alabama | 57,238 63,812! 48, 521 55,553 8,717 8, 2591 3 54,004: 3 59,0221 4,182| 4,837 177 194 Mississippi ; 94, 096 96,399, 68, 449 69,621 25.647 26, 778 j 85,966! 97,235] 9, 8381 5,287 217 219 West South Central: j Arkansas j 74,040, 80, 376 62, 390 67,401 11,650 12,975! 70, 586 83, 403 5,604, 3,357 258i 265 Louisiana ! 277,909 277,455j 204, 622 205,980 73, 287 71,475 j 258,326 283,1731 13,817! 4,214 177i 177 Oklahoma __. j 52,081 i 58,0221 32,450 36,481 19,631 21,541! 53,438i 60,920! 2,1901, 2,146 282 290 Texas ! 179,302 199, 266! 134,556 153,061 44,746 46, 205 175, 846j 206,878; 5, 240 4,570 618 639 Mountain: j Montana ! 50,455 52, 778 i 29,945 31,612 20, 510i 21,166! 51,116 55, 366 879 106 108 Idaho | 34,227 37, 269: 19,328 21,124 14,899! 16,1451 3 38,915 3 43,4081 290 211 91 92 Wyoming I 20,168 21, 774i 15,754 17,184 4,414! 4, 590! 20, 390 22,922 j 1,062 844 56 57 Colorado ! 49,159, 49,159; 32, 816 32, 816 16,343| 16, 343| 51,425 51, 4251 800 800 137 137 N A U r e t i a w z h o n M a exico... _..! ! | 3 9 8 7 Qy , , , 1I 9 5 ^O 3 9 fO 1 3 tI 1 4 0 0 9 7 , , , 5 2 6 6 9 3 6 1 3 , ; i 2 7 1 6 4 , , , 0 3 5 5 5 6 6 8 1 8 23 6 1 , , , 9 5 3 3 2 2 4 8 5 2 1 3 6 3 , , , 0 6 9 8 3 7 2 5 0 1 ! ! 2 1 3 5 6 , , , 1 6 9 0 3 6 5 2 6 »4 7 8 4 i, , , 7 9 4 3 5 r" 8 5 3 8 46 9 4 , , , 5 4 2 6 4 8 2 1 6 I i ! 1 < ,7 6 5 8 7 9 1 4 4 1 4 . 2 4 3 7 6 1 8 2 4 J i 1 7 2 2 6 5 3 | 7 2 2 9 6 5 Nevada ' 17,159, 17,607: 14,725 15, 304 2,434| 2,303 19, 665 20,846- -I 221 23 Pacific: • Washington j 174,804 182,947! 116,109 121, 549 58, 6951 61,398 177,178 186,880; 2,138, 1,775 206 217 Oregon 56,080 57,974! 34,212 21,868; 21,685! 59,647 62,285: 924 1,3" 122| 125 California | 1,171,804, 1,172, 846 i 719, 830 739,625! 451,974; 433, 221 i 1,143, 861 1.179,194 6,458 6, C 219 222 Total 33, 239, 000 34,196, 573JJ21,285, 965:22, 221, 84011, 953, 035.11, 974, 73331, 025, 497J32, 363, 675; 359,180, 286,911 14,648! 15,103 1 Includes all State banks (including stock and mutual savings banks) and all private banks under .State supervision. Figures relate to dates nearest thereto for which figures are available. 2 Includes bonds borrowed. 3 Includes due to banks. 4 Includes miscellaneous liabilities. NOTE.—All figures in the September columns are as of Sept. 29, except as follows: Maine, Sept- 26; New Hampshire, June 30; Massachusetts, savings banks, Oct. 31; Rhode Island, savings banks, June 30; Connecticut, savings banks, June 30; New York, State banks, Sept. 30, savings banks, June 30; Indiana, June 30; Iowa, June 30; Missouri, Sept. 18; Nebraska, June 30; Kansas, Oct. 10; Maryland, State banks, Nov. 14, savings banks, June 30; North Carolina, June 30; Kentucky, June 30; Tennessee, May 12; Alabama, Nov. 16; Louisiana, Sept. 28; Colorado, June 27; Utah, Sept. 30. All figures in the June columns are as of June 30, except as follows: Missouri, Apr. 24; Kansns. June 27; Tennessee, May 12; Colorado, June 27; Utah, June 24. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

82 FEDERAL RESERVE BULLETIN JANUARY, 1932 INDUSTRIAL PRODUCTION, BY INDUSTRIES [Index numbers of the Federal Reserve Board. Adjusted for seasonal variation. 1923-1925 average=100] 1930 1931 Industry Oct. Nov. Dec. Jan. Feb. Mar. Apr. May June July Aug. Sept. Oct. Nov MANUFACTURES IRON AND STEEL 74 65 64 73 78 72 64 59 51 46 46 Pig iron 71 63 56 57 61 64 64 56 51 44 41 37 Steel ingots 74 65 59 64 74 79 72 64 60 52 47 47 TEXTILES 91 93 87 86 93 97 98 97 102 100 100 89 Cotton consumption 81 83 77 82 84 89 93 92 96 95 93 84 Wool - - 69 63 57 62 75 76 90 89 100 97 85 71 64 Consumption _ 75 66 61 68 81 81 103 105 105 122 115 97 80 73 Machinery activity1 68 64 61 64 77 75 71 79 83 90 92 84 65 60 Carpet, rug loom activity1 52 52 39 40 54 60 60 63 55 52 51 54 52 41 Silk - 150 162 157 134 146 149 119 123 122 120 120 140 144 140 Deliveries 170 182 178 143 158 165 122 136 136 132 131 153 159 157 Loom activity » 109 123 116 117 121 117 114 96 96 95 99 114 115 105 FOOD PRODUCTS 94 94 89 93 92 87 96 91 83 88 89 93 91 90 Slaughtering, meat packing 93 87 86 91 94 88 97 92 83 82 86 93 96 91 Hogs 94 94 84 95 96 83 93 88 75 74 78 97 101 99 Cattle 85 71 82 80 85 91 97 94 88 88 92 80 80 72 Calves 97 83 101 98 99 99 104 94 96 88 93 102 90 91 Sheep 158 147 142 136 136 138 159 156 154 147 161 ! 153 165 170 Flour 90 93 91 92 91 93 96 85 95 94 i 85 83 91 Sugar meltings 105 123 93 102 87 74 77 83 98 88 ! 104 86 83 PAPER AND PRINTING 107 103 98 106 110 110 110 113 109 j 109 105 i 104 Wood pulp and paper 100 95 91 99 103 101 102 105 100! 101 95 i 93 Newsprint 81 77 79 <>80 77 81 80 79 79 81 72 '; 77 75 79 Book paper 97 94 100 118 117 114 114 118 111 I 112 107 | 100 96 Wrapping paper 91 89 86 79 84 90 94 92 94 90 ! 81 79 Fine paper 99 93 80 94 100 92 91 88 86 83 ! 83 79 Paper board 123 115 101 116 122 121 124 130 118 121 110 : 112 107 Wood pulp, mechanical 72 74 77 72 78 75 77 79 81 86 82 i 92 78 Wood pulp, chemical 104 97 95 91 97 90 92 93 91 91 90 ! 89 83 Paper boxes. 141 133 123 122 144 146 155 166 172 154 178 ; 173 150 130 Newsprint consumption.—. "I 122 119 115 124 124 129 125 127 123 123 121 120 117 LUMBER: 118 ! Lumber cut 54 47 50 49 45 50 49 50 49 44 38 35 30 TRANSPORTATION EQUIPMENT: 40 ; A Lo u c to o m m o o b ti i v l e e s s 4 2 9 8 2 7 5 4 8 1 5 8 6 1 3 1 68 7 6 7 7 7 1 7 3 7 1 8 4 6 1 5 0 6 8 0 i! 4 4 0 26 5 36 Shipbuilding 343 196 144 246 115 61 99 112 116 121 88 90 LEA T TH an ER n U S i o p n A l p e g N e l D r e a l P t e R h a O e t D r h 1 U e C r- TS 8 9 9 6 8 8 8 6 1 5 8 8 8 1 3 9 8 7 7 1 8 6 i 8 8 7 7 0 9 9 8 7 2 0 2 1 9 8 0 2 5 2 1 9 0 1 7 1 9 7 0 4 9 0 1 1 7 0 0 9 1 0 1 1 1 1 0 0 4 4 1 : i ! 8 9 9 4 7 6 8 8 8 2 6 3 7 7 8 7 9 1 Boots an G C C d a a o l s t a f h t t l o a e a e n n s d d k k i i p d A . 1 8 9 6 3 5 3 1 2 j i ! 1 6 7 7 2 2 8 1 6 1 7 6 6 1 9 0 6 4 1 5 6 0 3 2 3 I i 1 9 5 6 1 2 7 7 3 1 1 6 6 0 1 8 9 0 8 1 1 8 7 0 2 4 9 9 3 1 1 8 9 1 1 3 2 6 7 1 1 8 9 0 2 5 3 5 6 1 1 9 8 4 0 9 4 6 2 1 1 9 8 9 4 0 4 7 1 1 6 ; ! 1 8 7 4 9 5 9 1 7 1 6 8 1 7 8 4 3 9 1 5 7 7 0 3 6 6 5 CEMENT AND GLASS: Cement 97 86 84 82 90 c 95 « 89 i • 73 64 Glass, plate 101 91 65 90 111 119 117 112 91 72 ! 53 43 NONFERROUS METALS* 95 ! 86 85 77 ! '79 76 73 73 65 65 I v 62 Copper (smelter) 90 | 86 82 70 ! 77 76 70 72 70 65 65 ! Tin (deliveries)» 127 119 118 126 105 96 109 104 92 89 77 FUELS, MANUFACTURES: Petroleum refining 160 151 149 144 149 152 161 163 161 162 165 161 161 156 Gasoline1 203 188 186 177 , 188 191 205 211 207 208 213 210 209 202 Kerosene — 74 69 67 70 ! 69 76 71 71 76 80 78 66 71 73 Fuel oil * 108 109 108 106 ; 107 112 113 109 111 107 110 108 104 102 Lubricating oil i 106 104 105 102 i 94 96 100 95 90 98 96 92 95 93 Coke (by-product)— 109 101 97 97 ' 99 100 102 100 91 84 80 77 76 73 RUBBER TIRES AND TUBES 77 73 88 : 94 98 107 123 126 112 90 79 74 71 T In i n re e s r , t p u n b e e u s m . atic 8 5 0 8 6 7 1 5 9 6 1 8 j 9 7 6 1 1 7 0 4 2 1 8 1 1 1 1 9 2 5 7 1 9 3 6 0 1 8 1 8 6 9 7 2 3 8 5 2 7 5 7 4 7 7 5 4 2 TOBACCO PRODUCTS 129 119 128 121 132 331 134 137 133 122 118 118 112 114 Cigars 88 86 68 74 i 78 83 89 88 87 77 81 73 77 75 Cigarettes __. 164 147 173 157 174 169 171 177 171 156 148 151 137 142 MINERALS COAL: Bituminous-_ 87 85 77 73 76 77 75 74 74 70 70 71 67 Anthracite 105 93 93 89 72 84 71 66 57 61 65 91 Petroleum crude 115 114 111 110 110 112 121 122 122 122 107 102 116 122 Iron ore shipments 74 51 27 46 | 55 59 51 42 11 Copper (mined) 83 76 72 76 ! 68 59 59 60 Zinc 90 65 65 54 49 49 49 45 Lead 91 80 79 75 58 65 61 Silver 70 65 61 63 51 46 40 40 1 Without seasonal adjustment. 1 Includes also lead and zinc; see " Minerals." f Revised. * Preliminary. c Coriected. NOTE.—The combined index of industrial production is computed from figures for 57 statistical series (49 of manufactures and 8 of minerals) most of which are shown in this table. Adjustments have been made in the different industries for the varying number of working days in each month and for customary seasonal variations, and the individual products and industries have been weighted in accordance with their relative importance. The sources of data and methods of construction were described in the BULLETIN for February and March, 1927. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

JANUARY, 1932 FEDERAL RESERVE BULLETIN 83 FACTORY EMPLOYMENT AND PAY ROLLS [Index numbers of the Federal Reserve Board; adjusted to Census of Manufactures through 1927. 1923-1925 average=100] Factory employment Factory pay rolls Without seasonal adjustment Adjusted for seasonal variation Without seasonal adjustment Industry 1931 1930 1931 1930 1931 1930 Nov. Oct. Nov. Nov. Oct. Nov. Nov. Oct. Nov. TOTAL—ALL MANUFACTURING INDUSTRIES 68.7 71.4 81.0 69.3 70.3 81.1 56.2 59.4 75.1 IRON AND STEEL AND PRODUCTS. _ 65.0 66.3 79.8 65.3 66.2 80.2 41.2 43.9 68.9 Steel works and rolling mills 65.8 66.9 80.9 66.6 67.3 81.9 39.4 41.7 69.1 Hardware _ - _ 62.4 63.0 73.5 62.4 63.3 73.5 43.5 45.1 62.9 Structural iron work 73.1 75.2 97.1 72.9 73.4 95.9 54.1 57.5 89.1 Heating apparatus _ _ _ 60.4 63.8 72.7 58.7 60.3 70.6 42.1 48.6 61.8 Steam fittings 56.9 59.0 69.6 57.2 57.8 70.0 39.3 43.9 61.6 Stoves _ » -. 63.7 68.3 75.6 60.1 62.6 71.2 44.7 53.0 62.0 Cast-iron pipe 56.6 58.2 68.7 57.6 ! 58.0 69.8 41.4 42.0 63.3 MACHINERY ._ _ _ 63.8 65.2 84.7 64.6 65.6 85.7 48.3 50.2 75.1 Foundry and machine-shop products ._ 58.4 59.4 77.4 59.6 59.9 78.9 40.4 ! 42.7 65.3 Machine tools 62.4 67.7 101.0 62.5 67.9 101.1 45.9 i 50.4 79.9 Agricultural implements 44.9 42.1 93.6 46.3 44.1 96.6 34.6 | 32.8 79.9 Electrical machinery _ 77.8 80.2 97.4 77.8 80.2 97.4 68.6 69.8 96.9 TEXTILES AND PRODUCTS 74.3 77.4 80.1 73.6 76.0 79.4 59.3 66.0 73.4 A. Fabrics 74.9 75.6 79.1 73.7 74.9 77.9 60.1 62.9 73.0 Cotton goods _ __ _ _ 73.4 74.1 75.4 72.2 73.5 74.1 54.5 58.4 64.9 Woolen and worsted manufactures 60.1 61.7 64.3 58.1 60.6 62.1 46.4 48.3 53.3 Woolen and worsted goods. _ _ 60.1 61.2 63.9 57.8 59.7 61.5 47.1 49.0 53.7 Carpets and rugs 60.3 64.4 66.3 59.5 65.0 65.4 43.0 45.5 51.9 Hosiery and knit goods... 90.3 88.9 92.0 89.1 88.3 90.7 81.2 81.5 98.8 Silk manufactures 72.7 75.1 85.8 72.9 74.7 85.9 62.2 67.9 83.2 Dyeing and finishing textiles __ _ _. 93.3 93.8 104.9 92.6 ! 93.6 104.1 84.3 84.9 105.5 B. Wearing apparel 72.8 82.2 82.4 73.4 78.7 83.0 57.8 72.2 74.4 Clothing, men's . _ __ 54.1 59.8 55.0 55.6 59.1 56.4 37.4 47.7 44.1 Shirts and collars 82.1 86.8 88.2 79.5 85.1 85.3 59. S 67.8 77.8 Clothing, women's . 101.9 117.0 125.4 103.7 109.9 127.6 87.5 107.5 118.0 Millinery 57.9 71.2 68.4 55.9 64.7 66.1 45.4 63.2 58.3 FOOD AND PRODUCTS 88.0 89.2 93.6 85.9 85.5 91.4 83.0 85.9 96.5 Baking 92.6 94.8 99.6 91.6 91.9 98.5 88.0 90.4 101.1 Slaughtering and meat packing 85.7 84.4 90.5 84.9 84.8 89.6 82.3 84.3 98.3 Confectionery 93.7 96.4 96.0 81.4 79.9 83.4 83.9 88.5 92.9 Icecream _. 71.9 78.7 79.9 79.7 80.4 88.5 73.3 79.6 87.2 Flour 78.8 79.3 84.1 77 2 76.3 82.4 76.4 77.0 85.7 Sugar refining cane .. 79.9 77.5 85.5 80.7 74.9 86.4 67.8 68.8 79.4 PAPER AND PRINTING 91.0 91.4 98.4 89.7 91.0 97.0 90.6 91.4 105.0 Printing, book and job. __ _ _ 92.1 91.6 103.0 91.6 92.4 102.4 89.9 89.0 108.2 Printing, newspapers and periodicals 101.7 101.9 105.9 100.4 101.7 104.6 109. 7 110.3 117.3 Paper and pulp . _ _ 81.4 82.7 88.2 81.4 82.7 88.2 69.3 71.2 87.1 Paper boxes 86.5 87.3 93.7 81.0 82.9 87.8 81.7 86.3 96.8 LUMBER AND PRODUCTS 48.4 50.1 61.6 47.4 48.4 60.4 34.4 38.2 54.7 T/iimbfir, sawmills 41.4 43.1 55.6 41.1 42.4 55.2 28.9 32.1 50.4 Lumber, millwork _. 49.0 49.3 59.2 49.8 49.3 60.2 34.9 36.8 51.7 Furniture 68.1 70.4 80.3 63.8 64.6 75.2 46.3 52.4 66.4 TRANSPORTATION EQUIPMENT . . 50.6 51.5 64.9 53.4 51.7 68.6 45.2 45.3 60.8 Car building and repairing 47.4 49.0 59.4 j 47.6 48.8 59.6 43.9 44.7 58.9 Automobiles _ _ _ 49.9 50.5 67.9 1 56.1 50.5 76.4 42.3 41.4 57.4 Shipbuilding 87.3 84.1 97.5 ! 90.8 89.7 101.5 81.4 83.5 106.5 LEATHER AND MANUFACTURES 69.6 79.2 76.9 ! 70.1 76.4 77.4 47.0 56.4 55.0 Boots and shoes .. . .___ 69.6 80.8 76.7 70. 3 77.3 77.4 43.1 53.7 49.2 Leather 69.6 72.4 77.8 ! 69.1 72.4 77.3 61.1 66.6 75.8 CEMENT, CLAY, AND GLASS PRODUCTS 56.3 59.0 70.4 55.9 57.6 70.0 40.9 43.9 60.9 Clay products . . ... 52.8 54.4 68.9 52.8 53.5 69.0 34.2 35.9 56.1 Brick, tile, and terra cotta 44.3 46.2 62.6 : 44.4 45.1 62.8 26.6 28.6 49.8 Pottery 75.8 77.0 86.1 i 75.7 76.5 85.9 54.1 55.1 72.6 Glass -- _ _ 64.2 68.1 73.4 63.2 66.2 72.3 52.8 57.0 1 68.3 Cement 54.4 58.8 70.7 53.7 56.5 69.7 43.7 48.5 i 64.8 NONFERROUS METAL PRODUCTS 60.8 60.8 70.9 61.4 61.7 71.8 48.8 49.9 67.3 Stamped and enameled ware ... _ . 41.4 39.7 48.6 42.2 40.6 49.3 33.0 34.3 45.4 Brass, bronze, and copper 67.3 68.1 78.5 68.1 68.9 79.4 53.3 54.4 73. 6 CHEMICALS AND PRODUCTS 83.5 85.7 98.6 I 83.1 85.4 983 76.4 80.8 96.1 Chemicals and drugs 89.7 92.1 100.7 ! 88.0 91.2 98.8 78.8 84.4 93.4 Petroleum refining 81.4 83.0 99.8 82.2 83.2 100.8 77.9 80.8 103.2 Fertilizers . 51.4 53.9 80.9 54.4 55.8 85.6 42.9 46.3 77.9 RUBBER PRODUCTS 70.7 70.2 72.6 73.3 70.3 75.2 50.1 53.7 58.7 Automobile tires and tubes 69.4 ! 69.9 70.8 74.2 71.0 75.7 48.0 51.9 56.8 Rubber boots and shoes 74 2 71 2 77 7 70.3 68.1 73.7 58.7 60.9 ! 66.4 TOBACCO MANUFACTURES 79.3 79.9 87.1 74.8 75.8 82.0 64.5 64.6 I 76.8 Cigars and cigarettes 80.4 81.3 89.2 75.4 76.7 83.6 64.9 64.5 78.0 Chewing and smoking tobacco, snuff 70.5 68.4 70.6 ! 70.1 69.0 70.2 62.0 64.9 | 67.4 MUSICAL INSTRUMENTS 52.6 50.9 111.7 i 47.8 47.3 100.9 46.4 46.9 92.8 Pianos and organs 24.9 25.3 39.3 | 23.4 24.4 37.0 19.6 21.4 38.5 NOTE.—For description of these indexes see BULLETIN for November, 1929 (pp. 706-716), and November, 1930 (pp. 662-677). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

84 FEDERAL RESERVE BULLETIN JANUARY, 193 WHOLESALE PRICES, BY GROUPS OF COMMODITIES [Index of Bureau of Labor Statistics; 1926=100] Other commodities Foods Metals Building , Chemi- House- Miscel- Total m li a g t h e t r i i n a g ls ja p n r d o d m u e c t t a s l materials! drugs i f n u g r n g i o s o h d - s laneous 1926 (base) 100.0 !| 100.0 100.0 100.0 ' 100.0 100.0 100.0 100.0 100.0 1927 95.4 ' 99.4 96.5 93.7 ; 98.2 93.3 96.6 98.2 89.9 1928 97.7 ii 105.9 101.0 93.2 1 99.8 93.7 95.5 97.4 83.0 1929 96.5 i| 104.9 99.7 92.6 ! 104.4 97.1 94.4 96.9 80. 5 1930 86.3 !' 88. 3 90.1 85.1 ; 95.3 90.3 88.7 95.7 73.4 1930—October 82.6 82.6 88.6 81.5 90.4 85.8 86.0 95.3 November.. 80.4 79.3 85.7 8o.i : 90.2 85.6 85.2 95.2 67.8 December.. 78.4 75.2 81.8 79.0 90.0 84.4 84.8 91.3 fi6. 9 1931-January... 77.0 73.5 j 80.1 i 77.8 : 88.6 89.3 82.9 83.6 91.1 64.7 February.. 75.5 !• 70.1 . 77.1 , 77.1 86.6 88.9 81.8 82.2 90.8 63.9 March 74.5 |. 70.6 ! 76.7 i 75.6 87.4 89.0 81.9 81.9 90.8 64.7 April 73.3 70.1 i 75.6 74.2 87.3 88.7 80.9 80.1 90.8 63.9 May - 71.3 ! 67. 1 ! 72.9 ; 73.2 87.3 87.8 78.4 79.1 89.2 62.8 June 70.0 : 65.4 i 72.4 71.9 87.8 87.4 77.5 77.9 88.6 61.8 July 70.0 ii 64.9 ; 73.1 i 71.8 89.2 87.5 75.8 77.3 88.0 61 0 August 70. 2 ! 63.5 ! 73.7 i 72.3 88.5 87.1 75.4 75.5 87.5 58.5 September- 69.1 i 60.5 I 72.9 ! 72.0 84.8 87.2 74.9 74.8 84.7 58.4 October. __ 68.4 I 58. 8 ! 72. f> ! 71.4 82.2 86. 5 74.3 74.1 83.2 r.9 0 November. 68.3 i: 5S. 7 70.9 ; 71.8 81.3 80 2 74.0 74.7 83.1 59.7 1930 1931 Subgroups Sept. | Oct. Nov. Dec. Jan. Feb. j Mar. j Apr. j May June ! July Aug. Sept. I Oct. Nov. FARM PRODUCTS: Grains 77.0 ; 72.1 64.0 64.0 62.4 60.4 59.3 59.5 ! 59.6 56.0 ! 49.0 44.8 44. 2 44. 3 51.3 Livestock and poultry - 88. 0 • 82.4 77.7 76.3 75.2 69.6 70.7 70.3 ''• 64.1 61.9 ! 63.0 67.0 61.0 57.6 55.7 Other farm products 86.4 ; 86.3 85.4 78.1 76.0 73.7 74.2 73.4 I 71.5 70.8 I 71.3 67.3 65.4 ; 64.2 63.1 FOODS: ! Butter, cheese, and milk 99.6 ! 98.7 95.8 89.4 85.2 83.3 83.7 80.9 78.4 79.1 80.9 82.5 84.8 ; 86.4 80.9 Meats _ 99. 2 96. 7 91.4 89.2 88.4 83.6 82.0 79.9 74.4 71.3 73.4 76.0 73.6 71.1 67.7 Other foods 79.3 ! 79.8 78.4 74.5 73.4 70.8 70.8 70.9 69.7 | 70.1 69.7 68.8 67. 6 67. 7 68.5 HIDES AND LEATHER PRODUCTS: Hides and skins - 94. 2 i 83. 6 75.1 69.4 64.4 57.7 62.1 62.0 62.6 | 65.5 72.7 69.1 58.6 ! 50.0 I 49.0 Leather 98. 2 ! 96. 7 93. 3 91.5 90.8 89.0 88.4 88.4 88.1 I 87.8 89.8 90.3 83. 4 ! 80. 7 I 78.8 Boots and shoes 100.5 : 100.3 i 100.3 97.7 95.1 95.0 94.9 94.8 94.8 I 94.7 93.5 93.5 93.5 ! 93.1 92.5 Other leather products 105. 0 ; 104. 2 | 104. 2 104.2 102.4 102.0 102.0 101.6 101.3 ! 101.3 101.3 101.3 101.0 ! 101.0 101.0 TEXTILE PRODUCTS: I Cotton goods _. 82.8 ' 81.6 | 81.9 79.7 77.3 76.9 76.5 75.7 i 73.9 72.6 72.4 67.7 ; 64.7 Silk and rayon 55. 4 52. 1 | 50. 7 51.7 50.1 48.8 47.0 45.2 44.0 43.8 45.0 44.8 44.8 ; 43.9 43.9 Woolen and worsted goods._. 84.6 i 83.6 83.2 82.3 82.1 81.7 79.7 77.3 76.4 75.9 75.3 75.3 73.5 i 72.4 71.9 Other textile products 61.3 i 59.0 57.9 57.8 57.5 59.0 57.4 55.6 i 55.9 53.1 52.1 50.9 50.8 I 47.3 47.4 FUEL AND LIGHTING MATERIALS: I Anthracite coal 89.1 ! 89.6 89.6 89.6 88.9 88.9 88.2 87.6 88.8 90.8 92.2 94.3 : 94.2 94.2 Bituminous coal 89. 2 i 89. 2 89.1 89.1 88.1 87.8 85.8 84.4 83.9 83.2 83.5 83.7 83.9 | 83.6 83.7 Coke - 83.9 ! 83.9 i 83.9 83.8 83.8 83.8 83.7 83.7 83.7 i 81.5 81.5 81.5 81.5 i 81.5 81.4 Gas 101.3 i 99.7 | 97.0 95.4 95.8 95.8 94.6 96.1 99.0 ! 101.9 103.5 103.2 103.4 | 100.8 Petroleum products 62.0 59.4 ! 53.3 51.1 50.4 50.2 41.8 37.4 j 35.9 ' 30.7 30.3 37.5 38.9 | 39.2 42.5 METALS AND METAL PRODUCTS: Iron and steel 89.5 ! 88.6 88.3 88.0 88.1 88.4 88.1 87.5 I 87.2 : 86.9 87.1 86.6 86.6 i 86.2 | 86.0 Nonferrous metals..„. 71.2 i 67.8 68.4 69.7 67.4 66.1 67.1 65.1 i 60.6 ; 58.9 59.4 58.0 56.8 ! 53.7 53.5 Agricultural implements 94.9 i 94.9 94.9 94.9 94.7 94.7 94.7 94.7 ! 94.7 i 94.6 94.5 94.5 94.5 ! 92.3 92.1 Automobiles | 101.6 100. 2 99.8 99.5 98.7 98.0 98.0 98.6 i 98.6 i 98.6 98.9 98.9 99.7 I 99.7 99.4 Other metal products i 98.4 98.4 ; 98.0 95.2 95.0 95.0 95.0 95.0 | 94.4 94.4 92.5 92.1 90. 5 I 90.5 90.5 BUILDING MATERIALS: ! i I Lumber.. j 80.8 i 80.2 | 80.1 78.1 76.0 73.2 74.2 73. 3 | 68.4 ' 67.8 66.3 66.0 65.5 | 64.5 64.2 Brick I 82.3 : 82.5 81.8 81.6 81.7 81.6 81.5 81.0 i 80.8 i 80.8 80.5 80.4 79.8 ! 79.9 | 79.5 Cement ! 91.7 I 91.7 91.1 90.6 90.5 87.9 84.1 81.0 i 79.7 ; 77.7 75.8 75.8 75.8 i 75.1 I 74.6 Structural steel 81.7 ! 81.7 81.7 81.7 83.0 84.3 84.3 84.3 | 84.3 : 84.3 84.3 81.7 81.7 81.7 81.7 Paint materials 78.1 | 75 9 74.4 72.4 70.2 70.9 73.0 72.5 j 70.5 ; 70.1 69.5 66.8 64.9 63.8 64.6 Other building materials I 98. 0 ! 97.3 97.8 97.1 95.5 95.6 95.4 94.2 ! 93.2 I 91.7 88.7 89.3 89.0 | 88.6 88.1 CHEMICALS AND DRUGS: • Chemicals .-.| 90.9 89.6 89.2 89.1 87.0 85.0 84.8 83.3 81.9 ! 80.2 ' 80.1 78.5 77.8 j 77.7 ! 78.8 Drugs.. .-! 66.8 66.8 66.3 65.5 65.1 65.0 64.6 63.0 62.8 ; 62.1 i 61.6 61.4 61.1 i 61.1 60.7 Fertilizer materials -! 83.1 83.6 82.1 81.4 81.4 81.1 80.8 80.6 80.5 j 79.8 ; 78.7 74.4 74.2 ; 70.2 70.1 Mixed fertilizers j 92.6 92.9 91.1 90.6 90.4 89.1 88.3 83.5 82.8 .. 82.4 \ 80.2 78.7 77.6 ! 77.2 | 77.7 HOUSE-FURNISHING GOODS: ! Furniture ! 96.5 96.5 96.5 95.5 95.5 95.5 95.5 95.5; 93. 5 j 92.8 , 92.4 91.9 87.3 84.7 i 84.5 Furnishings i 94.4 94.2 94.0 87.6 87.3 86.7 86.7 ; 86.7 ! 85.5 | 85.0 j 84.3 83.7 82.4 82.0 i 81.8 MISCELLANEOUS: i I Cattle feed I 93.6 89.6 83.0 78.2 75.0 71.6 82.1 81.2 | 67.9 ! 61.1 : 55.8 50.8 44.4 || 59.8 Paper and pulp. 83.5 83.5 83.5 83.6 83.6 83.1 82.3 81.4 ; 81.3 | 80.3 i 80.1 30.1 80.3 80.4 ' 80.8 17.1 16.9 18.6 18.6 17.1 16.1 16.0 13.3 i 13.7 : 13.3 j 13.2 11.2 10.6 10.2 I 9.6 Automobile tires 52.0 52.0 51.3 51.3 45.7 45.7 45.7 45.7 i 45.7 I 45.7 I 45.7 45.7 45.7 45.7 ! 45.7 Other miscellaneous.. 93.8 91.5 88. 9 86.9 86.1 85.1 86.3 85.9 ; 84.9 84.0 75.5 76.9 77.9 j 77.7 Back figures.—For indexes of groups, see FEDERAL RESERVE BULLETIN for March 1931 (p. 137); of subgroups, see FIDKEAL RESERVE BULLETIN for April, 1931 (p. 197) and bulletins of the Bureau of Labor Statistics Nos. 473, 493. and 521. 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JANUARY, 1932 FEDERAL RESERVE BULLETIN 85 BUILDING CONTRACTS AWARDED, BY TYPES OF BUILDING [Value of contracts in millions of dollars. Figures are for 37 States east of the Rocky Mountains, as reported by F. W. Dodge Corporation] j Public works and | W/,I1/mf!™i I All other January February March April May. June July August September | 331. _ October I 336.7 ! November I 253.6 > Year to date |4, 273. 7 J2,956.0 j BUILDING CONTRACTS AWARDED, BY BUILDING PERMITS ISSUED, BY DISTRICTS DISTRICTS [Value of permits in thousands of dollars] [Value of contracts in thousands of dollars. Figures for 37 States east of the Rocky Mountains, as reported by the F. W. Dodge Corporation] 1931 1930 Number Federal reserve district of cities 1931 1930 | October | No™ Federal reserve district No b v e e r m- October No b v e e r m- Boston ! 14 2,120 2,926 4,627 New York 22 21,923 32,133 48, 784 Philadelphia i 14 2,201 3,684 i 8,916 N Bo ew st o Y n ork 4 1 4 6 , , 8 3 9 4 7 6 1 2 0 4 1 . , 1 3 2 4 6 5 2 7 0 0 , , 9 8 9 3 3 5 R C i l c ev h e m la o n n d d i 1 1 5 2 2 3, , 6 5 6 9 1 2 4 5 , , 0 4 1 0 9 5 ! ! 6 5, , 2 9 4 9 2 2 A C S C P R t h h l t i . e l c i i a l v c L h a n a e m o d g t l u a a e o o i n l n s p d d hia ' 22 1 1 5 5 1 6 1 9 4 , , , , , , , 1 8 9 6 1 6 4 9 9 5 2 9 4 7 0 1 6 0 9 4 9 2 2 1 1 1 7 3 3 1 8 3 , , , , , , 5 3 0 6 1 9 3 4 0 6 5 6 2 6 6 8 9 1 3 3 1 1 1 1 7 9 5 5 2 5 , , , , , , 4 4 5 0 8 6 8 3 6 4 5 5 8 0 7 3 1 1 A S M K D C t h t a a . i l l n n i a L l c n s a n a o a s e t g s u a a o i p s C . o i l t i y s : ! ; ; 1 ! 1 1 1 4 9 5 9 5 9 2 2 4 1 1 , , , , , 1 2 6 8 8 8 8 6 5 3 8 5 8 5 2 9 3 7 3 3 4 1 1 1 , , , , , , 3 1 1 7 7 4 0 0 6 9 6 8 6 8 3 4 3 8 i i ; : | 1 3 3 1 1 0 1 , , , , , , 3 4 6 6 7 0 1 7 6 0 7 0 6 3 4 0 4 4 Minneapolis 7,161 5,754 5,694 San Francisco : 20 6,241 8,545 i ' 12,971 Kansas City --- --- 4,411 4,822 11,004 Dallas. 4,591 8,376 9,017 Total I 168 52,422 72,334 r 109,362 Total (11 districts) 115511,,119966 242, 094 253, 574 r Revised. BANK DEBITS COMMERCIAL FAILURES, BY DISTRICTS [Amounts in thousands of dollars; figures reported by R. G. Dun Co.] [Debits to individual accounts. In millions of dollars] dumber Liabilities 1930 1931 1930 1931 1930 Federal reserve district v N b e e o m r - - O b c e t r o- v N b e e o m r - - v N b e o e m - r - O b c e t r o- v N b e e o m r - - N O e u w ts i Y de o r N k e C w i t Y y ork City Federal reserve district: Boston - 201 187 m 3, 262 4,406 2.769 Boston 2,326 New York 487 403 411 13, 283 16,496 17,196 New York. 23,192 Philadephia 130 165 93 5,199 8,924 4,068 Philadelphia 1,821 Cleveland -- 191 255 169 6,425 10, 554 4,057 Cleveland- 2,171 Richmond 139 92 121 2,571 1,365 1,718 Richmond 699 Atlanta 117 131 110 2,353 2,891 3,208 Atlanta 872 Chicago 317 353 304 16, 380 14,670 5,582 Chicago. 4,884 St. Louis 117 126 92 3,357 2,498 3,870 St. Louis. 913 K M a i n nn sa e s a p C o i l t i y s 1 6 4 6 6 1 10 2 8 5 1 4 6 8 0 1,6 6 1 8 9 1 1 1 , , 0 4 5 9 5 3 5,4 3 9 98 5 M Ka in n n sa e s a p C o i l t i y s. 1.1 6 7 7 9 3 Dallas 103 130 91 1,726 1,930 2,497 Dallas 564 San Francisco 181 287 250 3,801 4,377 4,401 San Francisco 2,882 Total 2,195 2,362 2.031 60, 660 70, 660 55, 261 Total Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

86 FEDERAL RESERVE BULLETIN JANUARY, 1932 DECEMBER CROP REPORT, BY FEDERAL RESERVE DISTRICTS [Based on estimates, by States, for December 1, as made by the Department of Agriculture] [In thousands of units] Corn Total wheat Winter wheat Spring wheat Federal reserve district Produc- Estimate, Produc- Estimate, Produc- Estimate, Produc- Estimate, tion, Dec. 1, tion, Dec. 1, tion, Dec. 1, tion, Dec. 1, 1930 1931 1930 1931 1930 1931 1930 1931 Bushels Bushels Bushels Bushels Bushels Bushels Bushels Bushels Boston. 7,708 7,929 64 65 64 65 New York.... 19,952 25,837 4,921 6,197 4,751 6,012 170 185 Philadelphia.. 25, 760 55, 305 20, 021 18, 764 19,851 18, 577 170 187 Cleveland 104,861 206, 456 33,780 56, 086 33,526 55, 832 254 254 Richmond 90, 428 146, 866 25, 079 30,194 25, 079 30,194 Atlanta _. 115,237 165, 412 2,271 4,612 2,271 4,612 Chicago 741,908 880, 844 62, 416 77, 431 57, 859 73,744 4,557 3,687 St. Louis 191, 530 382,010 44, 323 66,474 43, 898 66,148 425 326 Minneapolis- 254,113 173, 273 212, 644 11,815 8,943 200,829 73,146 Kansas City.. 416,925 395, 516 307, 627 400, 897 297, 759 396,872 9,868 4,025 Dallas.. 83, 621 109, 442 32, 544 59, 272 32, 401 59,107 143 165 San Francisco. 8,142 7,973 112,470 90,190 72, 630 67, 424 39,840 22, 766 Total— 2, 060,185 !, 556,863 858,160 892, 271 601,840 787, 465 256, 320 104, 806 Oats Tame hay Tobacco White potatoes Cotton Federal reserve district Produc- | Estimate, Produc- Estimate, Produc- Estimate, Produc- Estimate, Produc- Estimate, tion, j Dec. 1, tion, Dec. 1, tion, Dec. 1, tion, Dec, I, tion, Dec. 1, 1930 i 1931 1930 1931 1930 1931 1930 1931 1930 1931 Bushels Bushels Tons Tons Pounds ! Pounds Bushels Bushels Bales Bales Boston 7,322 6,359 3,106 3,346 43,813 I 39,186 53,199 58, 475 New York 36,130 j 25,819 4,789 5,563 1,179 i 1,463 27,185 32, 651 Philadelphia ._ 20,451 i 17, 687 2,142 2,304 18, 081 25, 212 Cleveland 75,762 j 75, 247 3,104 4,742 189,743 • 259, 366 15,161 19, 864 Richmond 17, 674 23, 671 1,707 2,928 817,651 ! 676, 406 28,419 32, 482 1,818 1,833 Atlanta 8,091 ! 14, 558 1,500 2,182 213,119 166, 710 10, 062 14, 893 3,713 3,593 Chicago _. 539,401 i 469,985 13, 072 12,011 52,956 | 48, 544 37, 016 51, 022 St. Louis 50,930 i 63, 234 3,988 5,467 306,896 • 407, 708 11,141 12, 545 i 2, 289 2 3,668 Minneapolis... 308,887 ! 183, 049 8,485 7,039 6,048 i 5,017 40, 457 49,934 Kansas City... 151,236 ! 147, 711 8,650 7,209 3,805 ! 39, 734 27, 387 1,283 Dallas 35, 580 i 63, 027 817 991 5,625 5,993 4,849 6,253 San Francisco. 26,300 i 21, 795 12,103 10, 451 47,130 45, 790 403 288 Total 1, 277, 764 | 1,112,142 64, 233 I 1, 635, 210 , 1, 610, 098 333, 210 376, 248 13,932 16,918 1 Includes 7,000 bales grown in miscellaneous territory. 2 Includes 9,000 bales grown in miscellaneous territory. NOTE.—Figures for 1930 are as revised in December, 1931. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

INDEX Acceptances: Page Page Buying rates of Federal reserve banks... 17 Freight-car loadings 19,20 Held by Federal reserve banks _. 11,12,15,67,68 Gold: Held by group of accepting banks... _. 15 Analysis of changes in stock of ___ 12 Held by member banks __ 14 Open-market rates on _._ 17 Circulation _ ^ 12 In foreign countries _ 62 Earmarked _ _. 12 Outstanding _ 15,72 Imports and exports— Adjusted-service certificates, discount of bills secured by 12,67 Foreign countries. _ 53 All banks in the United States: United States.. _ 12,53 Condition of, on call dates 14,78-81 Production 12 (See also Deposits; Loans and investments, etc.) Reserves- Annual report of the Bank of Java 49-51 Central banks in foreign countries 52 Bailey, W. J., retired as governor of Kansas City bank 6 (See also Review of month.) Balance sheets: Federal reserve banks. _ _ _ _ 67,68 Bank of Java 51 Stock, monetary, of United States _ __ 11,12 Bank for International Settlements 57 Government note issues and reserves, foreign countries 61 Foreign central banks _ _._ _. 58-60 Hamilton, George H., appointed governor of Kansas City bank.. 5 Bank debits 85 Imports and exports: Bank suspensions 16,73-75 Gold- Bankers' balances 71 Foreign countries _ _. 53 (See also Review of month.) United States _. 12,53 Bills bought. (See Acceptances.) Merchandise ___ 20 Bills discounted, holdings of, by Federal reserve banks.. 11,12,67,68,69 Interbank loans: Borrowings of member banks at reserve banks 11, Rates on ___ 70 12,15,16,17, 67, 68, 69,72 Volume of. _ 16 Branches of banks in the United States ._ 14 Interest rates. (See Money rates.) Brokers' borrowings 18 Brokers' loans _ 15 Law department- _ __ 65 Building statistics 19,85 Loans and investments: Business conditions, national summary of 10 All banks in the United States..._ _. 14,78-81 Business failures... _ _ 85 Percentage distribution _ 72 Call loans, open-market rates on 17 All member banks __ 14,78 Capital issues, domestic and foreign 18 Classification on call dates 14 Charts: Central banks in foreign countries 58-60 Federal reserve bank credit and factors in changes 1 Commercial banks in foreign countries 61 Bankers' balances 2 Nonmember banks 14, 72,78 Loans and investments of member banks 2 Reporting member banks 15,71 Federal reserve bank discounts, by districts 6 Maturity distribution of bills, etc 72 Shipments and receipts of American currency to and from Member bank borrowings at reserve banks.. 11,12,15,16,17,67,68,69, 72 Europe 8 Member bank reserve balances 11,13,67,68 Classification of loans and investments of member banks 14 (See also Review of month.) Commercial failures 85 Membership in par-collection system. 72 Commercial paper: Merchandise imports and exports 20 Outstanding _ _ _ _ 15 Monetary gold stock of the United States 11,12 Purchased by member banks 14 Money in circulation 11,12 Rates on _ _ _ _. 17,70 Money rates: Conference of South American central banks 43-49 Charged customers by banks _. 17,70 Cost of living 64 Foreign countries 62 Crop report 86 In New York City — 17 Currency: Municipal warrants: Shipments to and from Europe 7-9 Maturity distribution 72 Treasury 11,12 Purchased by Federal reserve banks 12,67 Debits to individual account 85 National banks, condition of, on call dates. _ 80 Department-store sales and stocks 20 Nonmember banks: Deposits: Bills discounted for, secured by adjusted-service certificates.. 12,67 All banks in the United States.. 14,78-81 Branches operated 14 All member banks 13,69,70 Deposits — 11,14 Central banks in foreign countries 58-60 Loans and investments 14,72,78 Commercial banks in foreign countries 61 Par list, number of banks on 72 Federal reserve banks 67,68,69 Par value of foreign currency 54,57 Nonmember banks 14 Pay rolls in factories, index of 19,83 Public moneys exempt from reserve requirements; ruling 65 Paulger, L. H., appointed chief of division of examinations 5 Reporting member banks.._ 71 Prices: Suspended banks 73-75 Commodity (wholesale), index of— Directors of Federal reserve banks, election of 5 Foreign countries 64 Discount rates: United States 19,64,84 Central banks in foreign countries 62 Food, index of.__ 64 Changes in 5,62 Securities, index of 18,63 Federal reserve banks _ __ 17 Silver 54,57 Due to Federal reserve banks from foreign banks 12,67,68 Production of manufactures and minerals, index of 19, 82 Earnings and expenses of member banks 76,77 Reparations, report of special advisory committee on 21-43 Eligible assets held by member banks 16 Reserve ratios of Federal reserve banks 68,69 Employment in factories, index of 19,83 Reserves: Factors of increase or decrease in reserve bank credit. 11,12,13 Central banks in foreign countries 52,58-61 Failures: Federal reserve banks 67,68,69 Bank. _... _ 16,73-75 Member banks 11,13,69,71 Commercial 85 New York City banks - 13 Federal intermediate credit banks, bills discounted for 12,67 Public moneys exempt from reserve requirements 65 Federal land bank bonds purchased by reserve banks 12,67 Review of the month—Recent banking developments 1-5 Federal reserve bank credit and factors in changes.. 11,12,13 (See also Review of month.) Security prices, index of: Federal reserve notes 12,67,68,69 Foreign countries - 63 Float, reserve bank _ 11,12,67 United States... - 18,63 Foreign banks, due from, to Federal reserve banks. 12,67,68 Silver, price of 54,57 Foreign central bank statistics 58-60 South American central banks, conference of 43-49 Foreign commercial bank statistics 61 State banks, condition of, on call dates 81 Foreign exchange rates: Treasury currency H> 12 Monthly averages 55-57 Unexpended capital funds of reserve banks 11 Yearly averages, 1923-1931 54 United States securities: Foreign securities: Held by Federal reserve banks _— - 11,12,67,68 Held by member banks... 14 Held by member banks - - --- 14,16 Issued 18 Yield on 17 Prices of 63 Wholesale prices. (See Prices.) 87 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

FEDERAL RESERVE DISTRICTS • > 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